Document:

Purchase Agreement

    Up
      to 10,000,000 Shares

     

    FIRST
      INDUSTRIAL REALTY TRUST, INC.

    

     

    Series
      I Depositary Shares

     

    PURCHASE
      AGREEMENT

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    November
      8, 2005

    Wachovia
      Investment Holdings, LLC

    301
      South
      College Street, DC-7

    One
      Wachovia Center

    Charlotte,
      North Carolina 28288

    

    Ladies
      and Gentlemen:

    

    First
      Industrial Realty Trust, Inc., a Maryland corporation (the “Company”),
      proposes to issue and sell to Wachovia Investment Holdings, LLC, a Delaware
      limited liability company (the “Initial
      Purchaser”),
      up to
      10,000,000 Series I Depositary Shares, liquidation preference $25.00 per share
      (the “Shares”
      or the
“Series
      I Depositary Shares”).
      Subject to the terms and conditions, representations and warranties set forth
      in
      this Purchase Agreement (this “Agreement”),
      Wachovia Investment Holdings, LLC has agreed to act as the Initial Purchaser
      in
      connection with the potential offering and sale of the Shares (as defined in
      Section
      1(a)).

     

    As
      provided in Section
      7
      of this
      Agreement, if the Company has not issued an irrevocable notice of redemption
      of
      the Shares by April 10, 2006, the Company shall be obligated to deliver to
      the
      Initial Purchaser by May 8, 2006, copies of an Offering Memorandum (the
“Offering
      Memorandum”)
      describing the Company and the terms of an offering of the Shares. The Offering
      Memorandum shall be for the use of the Initial Purchaser in connection with
      its
      solicitation of offers to purchase the Shares, including purchases made pursuant
      to Rule 144A (“Rule
      144A”)
      under
      the Securities Act of 1933, as amended (the “Securities
      Act,”
      which
      term, as used in this Agreement, includes the rules and regulations of the
      Securities and Exchange Commission (the “Commission”)
      promulgated thereunder). As used in this Agreement, the term “Offering
      Memorandum” shall mean, with respect to any date or time referred to in this
      Agreement, any such Offering Memorandum, as amended or supplemented through
      such
      date and the Incorporated Documents (as defined in Section
      2(B)(f))
      in the
      then-most-recent form delivered by the Company to the Initial Purchaser in
      connection with its solicitation of offers to purchase the Shares. Further,
      any
      reference to the Offering Memorandum shall be deemed to refer to and include
      any
      Additional Issuer Information (defined in Section
      7(A)(a))
      furnished by the Company prior to the completion of the Initial Purchaser’s
      placement of the Shares to the Subsequent Purchasers (as defined
      below).

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    As
      provided in Section
      7(A)
      of this
      Agreement, the Company might become obligated to file with the Commission not
      later than July 6, 2006, and have declared effective not later than August
      7,
      2006, a registration statement (the “Resale
      Shelf Registration Statement”)
      registering the resale of the Shares under the Securities Act by the holders,
      and the holders of the Shares might become entitled to the benefits of a related
      registration rights agreement (the “Registration
      Rights Agreement”)
      to be
      negotiated between the Company and the Initial Purchaser.

     

    All
      references in this Agreement to financial statements and schedules and other
      information which is “contained,”“included” or “stated” in the Offering
      Memorandum (or other references of like import) shall be deemed also to refer
      to
      and include all such financial statements and schedules and other information
      which are incorporated by reference in the Offering Memorandum; and all
      references in this Agreement to amendments or supplements to the Offering
      Memorandum shall be deemed to mean and include the filing of any document under
      the Securities Exchange Act of 1934, as amended (the “Exchange
      Act,”
      which
      term, as used in this Agreement, includes the rules and regulations of the
      Commission promulgated thereunder), which is incorporated by reference in the
      Offering Memorandum.

     

    The
      Shares are being offered and sold to the Initial Purchaser without being
      registered with the Commission under the Securities Act, in reliance upon the
      Section 4(2) private placement exemption therefrom. The Company understands
      that, at any time on or after April 10, 2006, the Initial Purchaser might,
      but
      is under no obligation to, make an offering of the Shares on the terms and
      in
      the manner set forth in this Agreement and agrees that from and after such
      date
      the Initial Purchaser may resell, subject to the conditions set forth in this
      Agreement, all or a portion of the Shares to purchasers as described in this
      Agreement (the “Subsequent
      Purchasers”).
      In
      that case, the Shares may be offered and sold to the Subsequent Purchasers
      without being registered with the Commission under the Securities Act in
      reliance upon exemptions therefrom, including sales to “qualified institutional
      buyers” under Rule 144A, or in transactions not subject thereto.

     

    The
      Company hereby confirms its agreement with the Initial Purchaser as
      follows:

     

    Section
      1. Purchase,
      Sale and Delivery of the Shares.

     

    (a) Purchase
      and Sale.
      On the
      basis of the representations, warranties and agreements contained in this
      Agreement, and upon the terms but subject to the conditions set forth in this
      Agreement, the Initial Purchaser shall purchase from the Company, and the
      Company shall sell to the Initial Purchaser, 6,000,000 Series I Depositary
      Shares (the “Initial
      Shares”)
      each
      representing 1/10,000 of a share of Series I Flexible Cumulative Redeemable
      Preferred Stock of the Company (the “Series
      I Preferred Stock”)
      pursuant to a Deposit Agreement in form and substance satisfactory to the
      Initial Purchaser (the “Deposit
      Agreement”)
      on the
      Initial Closing Date (as defined in Section
      1(c)(i))
      of
      this Agreement, for the consideration specified in Section
      1(b)
      and the
      Company shall have the option , but not the obligation, and the Initial
      Purchaser shall purchase (if such option is exercised) up to an additional
      4,000,000 Series I Depositary Shares (the “Optional
      Shares”)
      each
      representing 1/10,000 of a share of Series I Preferred Stock pursuant to the
      Deposit Agreement on the Subsequent Closing Date (as defined in Section
      1(c)(ii))
      of
      the Agreement, for the consideration specified in Section
      1(b).
      The
      Company shall provide the Initial Purchaser with written notice of its intent
      to
      exercise its option to sell the Optional Shares no later than two days prior
      to
      the Subsequent Closing Date, and such notice shall include the number of Series
      I Depositary Shares to be sold as Optional Shares. The Company’s option to sell
      the Optional Shares pursuant to this Section 1(a) shall expire on November
      18,
      2005. On or before the Initial Closing (as defined in Section
      1(b)),
      the
      Company shall file with the State Department of Assessments and Taxation of
      Maryland Articles Supplementary in the form attached hereto as Exhibit
      A
      (except
      for any changes proposed by the Company as are approved by the Initial Purchaser
      in its sole and absolute discretion) (the “Articles
      Supplementary”).

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (b) Payment
      of Purchase Price and Delivery of Shares.
      The
      purchase and sale of the Initial Shares contemplated by this Agreement shall
      take place as set forth in Section 1(b)(i),
      and, if
      the Company exercises its option to sell the Optional Shares, then the purchase
      and sale of the Optional Shares contemplated by this Agreement shall take place
      as set forth in Section 1(b)(ii).

     

    (i) At
      the
      closing (the “Initial
      Closing”)
      on the
      Initial Closing Date (as defined below), in addition to the other deliveries
      required by this Agreement, (x) the Initial Purchaser shall pay to the Company,
      by wire transfer of immediately available funds, $150,000,000.00 (the
“Initial
      Purchase Price”),
      and
      (ii) the Company shall deposit with EquiServe Trust Company, N.A., as depositary
      (the “Depositary”),
      a
      certificate representing 600 shares of Series I Preferred Stock and shall
      deliver to the Initial Purchaser Series I Depositary Receipts (the “Initial
      Depositary Receipts”)
      evidencing 6,000,000 Shares, registered in the name of Wachovia Investment
      Holdings, LLC or such other name(s) as the Initial Purchaser shall have
      specified no less than two business days prior to the Initial
      Closing.

     

    (ii) If
      the
      Company exercises its option to sell the Optional Shares, at the closing (the
      “Subsequent
      Closing”)
      on the
      Subsequent Closing Date (as defined below), in addition to the other deliveries
      required by this Agreement, (x) the Initial Purchaser shall pay to the Company,
      by wire transfer of immediately available funds, an amount equal to the product
      of (x) $25.00 times (y) the number of Optional Shares to be sold by the Company
      (the “Subsequent
      Purchase Price”),
      and
      (ii) the Company shall deposit with the Depositary, a certificate representing
      up to 400 shares of Series I Preferred Stock and shall deliver to the Initial
      Purchaser Series I Depositary Receipts (the “Subsequent
      Depositary Receipts”)
      evidencing the Optional Shares, registered in the name of Wachovia Investment
      Holdings, LLC or such other name(s) as the Initial Purchaser shall have
      specified no less than two business days prior to the Subsequent
      Closing.

     

    Each
      of
      the Initial Closing and the Subsequent Closing shall be referred to herein
      as a
“Closing.”
      The
      Initial Purchase Price and the Subsequent Purchase Price shall be referred
      to
      collectively herein as the “Purchase
      Price.”
      The
      Initial Depositary Receipts and the Subsequent Depositary Receipts shall be
      referred to collectively herein as the “Depositary
      Receipts.”

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (c) Closing
      Date.

     

    (i) The
      Initial Closing shall take place at the offices of Cahill Gordon & Reindel
llp,
      New
      York, New York, on November 8, 2005 at 10:00 a.m. New York time (the
“Initial
      Closing Date”).

     

    (ii) The
      Subsequent Closing shall take place at the offices of Cahill Gordon &
      Reindel llp,
      New
      York, New York, on November 18, 2005 at 10:00 a.m. New York time (the
      “Subsequent
      Closing Date”).
      

     

    The
      Initial Closing Date and the Subsequent Closing Date shall be referred to
      collectively herein as the “Closing
      Date.”

     

    (d) Fee.

     

    (i) At
      the
      Initial Closing, the Company shall pay the Initial Purchaser by wire transfer
      of
      immediately available funds a fee equal to $4,725,000.00, which fee shall be
      paid other than from the proceeds of the sale of the Shares.

     

    (ii) If
      the
      Company exercises its option to sell the Optional Shares, at the Subsequent
      Closing, the Company shall pay the Initial Purchaser by wire transfer of
      immediately available funds a fee equal to 3.15% of the Subsequent Purchase
      Price, which fee shall be paid other than from the proceeds of the sale of
      the
      Shares.

     

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (e) Restriction
      on Transfer of Shares.

     

    (i) Basic
      Restriction.
      Until
      May 8, 2006, the Initial Purchaser shall not transfer any of the Shares without
      the prior written approval of the Company, which approval may be withheld in
      the
      Company’s sole and absolute discretion. Thereafter, the Initial Purchaser may
      transfer any or all of the Shares without any approval from the Company, subject
      to the requirements of Rule 144A and any other applicable securities
      laws.

     

    (ii) REIT-Related
      Transfer Restrictions.
      The
      Initial Purchaser acknowledges that Article IX of the Company’s Articles of
      Incorporation (the “Articles”)
      prohibits certain transfers of Shares in order to preserve the Company’s status
      as a real estate investment trust (“REIT”)
      under
      the Internal Revenue Code of 1986, as amended (the “Code”),
      and
      that the Company intends to disclose such transfer restrictions in the Offering
      Memorandum.

     

    Section
      2. Representations
      and Warranties.

     

    (A) Representations
      and Warranties of the Initial Purchaser. The Initial Purchaser represents and
      warrants to and agrees with the Company as of the date hereof and as of each
      Closing Date as follows:

     

    (a) Organization
      of the Initial Purchaser.
      The
      Initial Purchaser has been incorporated and is validly existing as a limited
      liability company in good standing under the laws of Delaware.

     

    (b) Authorization
      of Transaction.
      The
      Initial Purchaser has, and at each Closing Date will have, full corporate power
      to execute and deliver this Agreement and to perform its obligations hereunder.
      This Agreement constitutes the valid and legally binding obligation of the
      Initial Purchaser, enforceable in accordance with its terms and conditions,
      subject to (i) the effect of bankruptcy, insolvency, fraudulent conveyance,
      reorganization, moratorium or other similar laws now or hereafter in effect
      relating to or affecting the rights and remedies of creditors and (ii) the
      effect of general principles of equity, whether enforcement is considered in
      a
      proceeding in equity or at law, and the discretion of the court before which
      any
      proceeding therefor may be brought. The Initial Purchaser need not give any
      notice to, make any filing with, or obtain any authorization, consent, or
      approval of any government or governmental agency in order to consummate the
      transactions contemplated by this Agreement, except for such as have been
      obtained and except for such as would not materially impede the transactions
      contemplated by this Agreement.

     

    (c) Noncontravention.
      Neither
      the execution and the delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, will violate any constitution, statute,
      regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
      restriction of any government, governmental agency, or court to which the
      Initial Purchaser is subject or any provision of its organizational documents,
      except for such violations as would not materially impede the transactions
      contemplated by this Agreement.

     

    (d) Disclosure
      of Information.
      The
      Initial Purchaser represents that it and its representatives have (i) had an
      opportunity to ask questions and receive answers from the Company regarding
      the
      terms and conditions of the sale of the Shares and the business, properties,
      prospects and financial condition of the Company and (ii) received copies of
      the
      SEC Filings (as defined in Section
      2(B)(d)).

     

    (e) Investment
      Experience.
      The
      Initial Purchaser has substantial experience as a purchaser of shares of
      companies similar to the Company and acknowledges that it is able to fend for
      itself, can bear the economic risk of its investment and could afford a complete
      loss of such investment, and has such knowledge and experience in financial
      or
      business matters that it is capable of evaluating the merits and risks of the
      investment in the Shares. The Initial Purchaser acknowledges that in purchasing
      the Shares it must be prepared to continue to bear the economic risk of such
      investment for an indefinite period of time because (i) the Shares have not
      been
      registered under the Securities Act and cannot be sold unless they are
      subsequently registered under the Securities Act and applicable state securities
      laws, or unless exemptions from such registrations are available, and (ii)
      the
      Shares are subject to the restrictions on transfer set forth in Section
      1(e)
      above
      and in Article IX of the Articles.

     

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (f) Initial
      Purchaser as Qualified Institutional Buyer.
      The
      Initial Purchaser represents and warrants to the Company that it is a “qualified
      institutional buyer” within the meaning of Rule 144A under the Securities Act (a
“Qualified
      Institutional Buyer”)
      and an
“accredited investor” within the meaning of Rule 501(a) under the Securities Act
      (an “Accredited
      Investor”).

     

    (g) Restricted
      Shares.
      The
      Initial Purchaser understands that the Shares are characterized as “restricted
      shares” under the federal securities laws inasmuch as they are being acquired
      from the Company in a transaction not involving a public offering and that
      under
      such laws and applicable regulations such shares may be resold without
      registration under the Securities Act only in certain limited
      circumstances.

     

    (h) Legends.
      It is
      understood that the certificates evidencing the Shares shall initially bear
      substantially the following legend (in addition to any legend otherwise required
      under applicable federal or state securities laws or by Section 9.10 of the
      Articles):

     

    “THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
      LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
      HYPOTHECATED UNLESS AND UNTIL REGISTERED IN THE ABSENCE OF SUCH REGISTRATION
      OR
      UNLESS SUCH TRANSACTION IS EXEMPT FROM OR NOT SUBJECT TO SUCH REGISTRATION
      REQUIREMENTS.

     

    THE
      HOLDER OF THIS SECURITY, BY ITS ACQUISITION HEREOF, AGREES THAT IT WILL NOT,
      PRIOR TO THE DATE THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE
      HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY
      WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY), RESELL
      OR
      OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY EXCEPT (a) TO THE COMPANY;
      (b)
      TO A PERSON THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER,
      AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (A “QIB”), IN COMPLIANCE WITH
      RULE 144A, (c) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED
      BY RULE
      144 UNDER THE SECURITIES ACT (IF AVAILABLE AND ON THE UNDERSTANDING THAT THE
      COMPANY MAY REQUIRE AN OPINION OF COUNSEL BEFORE REGISTERING ANY SUCH TRANSFER
      ON ITS SHARE TRANSFER RECORDS), (d) PURSUANT TO A SECURITIES ACT REGISTRATION
      STATEMENT THAT HAS BEEN DECLARED EFFECTIVE AND THAT CONTINUES TO BE EFFECTIVE
      AT
      THE TIME OF SUCH TRANSFER, OR (e) PURSUANT TO ANOTHER AVAILABLE EXEMPTION,
      IF
      ANY, FROM SUCH REGISTRATION REQUIREMENTS OR IN A TRANSACTION NOT SUBJECT TO
      SUCH
      REGISTRATION REQUIREMENTS; AND AGREES THAT IT SHALL DELIVER TO EACH PERSON
      TO
      WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
      THE
      EFFECT OF THIS LEGEND.”

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (B) Representations
      and Warranties of the Company. The Company represents and warrants to and agrees
      with the Initial Purchaser as of the date hereof and as of each Closing Date
      (it
      being understood that such representations, warranties and agreements at each
      Closing Date shall be deemed to relate to the SEC Filings as amended or
      supplemented to such time) as follows:

     

    (a) No
      Registration Required.
      Subject
      to compliance by the Initial Purchaser with the representations and warranties
      set forth in Section
      2(A)(e)
      and
(f)
      and
Section
      8
      of this
      Agreement and with the procedures set forth in Section
      8
      of this
      Agreement, it is not necessary in connection with the offer, sale and delivery
      of the Shares to the Initial Purchaser and to each Subsequent Purchaser in
      the
      manner contemplated by this Agreement to register the Shares under the
      Securities Act.

     

    (b) No
      Integration of Offerings or General Solicitation.
      The
      Company has not, directly or indirectly, solicited any offer to buy or offered
      to sell, and will not, directly or indirectly, solicit any offer to buy or
      offer
      to sell, in the United States or to any United States citizen or resident,
      any
      security which is or would be integrated with the sale of the Shares in a manner
      that would require the Shares to be registered under the Securities Act. None
      of
      the Company, its affiliates (as such term is defined in Rule 501(b) under the
      Securities Act (each, an “Affiliate”),
      or
      any person acting on its or any of their behalf (other than the Initial
      Purchaser, as to whom the Company makes no representation or warranty) has
      engaged or will engage, in connection with the offering of the Shares, in any
      form of general solicitation or general advertising within the meaning of
      Rule 502(c) under the Securities Act with respect to the Shares, other
      than
      maintaining the effectiveness of the Company’s current shelf registration
      statements.

     

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (c) Eligibility
      for Resale.
      The
      Shares are eligible for resale pursuant to Rule 144A and are not of the same
      class as shares listed on a national securities exchange registered under
      Section 6 of the Exchange Act or quoted in a United States automated interdealer
      quotation system or shares of an open-end investment company, unit investment
      trust or face-amount certificate company that is or is required to be registered
      under Section 8 of the Investment Company Act of 1940 (the “Investment
      Company Act,”
      which
      term, as used in this Agreement, includes the rules and regulations of the
      Commission promulgated thereunder).

     

    (d) SEC
      Filings.
      The
      Annual Report of the Company on Form 10-K for the year ended December 31, 2004
      filed by the Company with the Commission (including the portions of the
      Company’s proxy statement incorporated by reference therein) as supplemented by
      each Quarterly Report of the Company on Form 10-Q, each Current Report of the
      Company on Form 8-K filed by the Company with the Commission since January
      1,
      2005, but not including any Current Reports on Form 8-K furnished to the
      Commission pursuant to Item 7.01 or Item 2.02 (or any comparable provisions
      adopted by the Commission) of Form 8-K (collectively, the “SEC
      Filings”),
      do
      not include an untrue statement of any material fact or omit to state a material
      fact necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading.

     

    (e) The
      Offering Memorandum.
      If
      delivered by the Company to the Initial Purchaser, the Offering Memorandum
      shall
      not, on the date of its delivery or thereafter through the completion of the
      Initial Purchaser’s placement of the Shares, include an untrue statement of a
      material fact or omit to state a material fact necessary in order to make the
      statements therein, in the light of the circumstances under which they were
      made, not misleading; provided,
      however,
      that
      this representation, warranty and agreement shall not apply to any statements
      in, or omissions from, the Offering Memorandum made in reliance upon and in
      conformity with information furnished in writing to the Company by the Initial
      Purchaser expressly for inclusion in the Offering Memorandum or any amendment
      or
      supplement thereto. The Company has not distributed and will not distribute,
      prior to the earlier of the Redemption Date (as defined in the Articles
      Supplementary) and the completion of the Initial Purchaser’s placement of the
      Shares, any offering material in connection with the offering and sale of the
      Shares other than the Offering Memorandum.

     

    (f) Incorporated
      Documents.
      If
      delivered by the Company to the Initial Purchaser, the Offering Memorandum
      shall
      incorporate by reference those filings by the Company pursuant to the Exchange
      Act that would be permitted to be incorporated by reference in a Registration
      Statement on Form S-3 filed by the Company pursuant to the Securities
      Act.
      Any documents that are incorporated or deemed to be incorporated by reference
      in
      the Offering Memorandum at the time they were or hereafter are filed with the
      Commission (collectively, the “Incorporated
      Documents”)
      complied and will comply in all material respects with the requirements of
      the
      Exchange Act and, when read together with the other information in the Offering
      Memorandum, do not and will not include an untrue statement of a material fact
      or omit to state a material fact required to be stated therein or necessary
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading. The foregoing representation and warranties in this
      Section
      2(B)(f)
      shall
      not apply to any statements or omissions made in reliance on and in conformity
      with information relating to the Initial Purchaser furnished in writing to
      the
      Company by the Initial Purchaser expressly for inclusion in the Offering
      Memorandum or any amendment or supplement thereto;

     

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (g) Organization,
      Power and Authority of Company and Operating Partnership.
      The
      Company has been duly organized and is validly existing as a real estate
      investment trust under and by virtue of the laws of the State of Maryland,
      and
      is in good standing with the State Department of Assessments and Taxation of
      Maryland. First Industrial, L.P., a Delaware limited partnership whose sole
      general partner is the Company (the “Operating
      Partnership”),
      has
      been duly organized and is validly existing as a limited partnership in good
      standing under and by virtue of the Delaware Revised Uniform Limited Partnership
      Act. The Company is the sole general partner of the Operating Partnership.
      Each
      of the Company and the Operating Partnership have, and at each Closing Date
      will
      have, full corporate and partnership power and authority, as the case may be,
      to
      conduct all the activities conducted by it, to own, lease or operate all the
      properties and other assets owned, leased or operated by it and to conduct
      its
      business in which it engages or proposes to engage and the transactions
      contemplated hereby. The Company is, and at each Closing Date will be, duly
      qualified or registered to do business and in good standing as a foreign
      corporation in all jurisdictions in which the nature of the activities conducted
      by it or the character of the properties and assets owned, leased or operated
      by
      it makes such qualification or registration necessary, except where failure
      to
      obtain such qualifications or registration will not have a material adverse
      effect on (i) the condition, financial or otherwise, or the earnings, assets
      or
      business affairs or prospects of the Operating Partnership, Company and the
      Subsidiaries, taken as a whole, or on the 846 in-service properties owned,
      directly or indirectly, by the Company as of September 30, 2005 (individually,
      a
“Property”
      and
      collectively, the “Properties”)
      taken
      as a whole, (ii) the issuance, validity or enforceability of the Series I
      Preferred Stock or the Shares or (iii) the consummation of any of the
      transactions contemplated by this Agreement (each a “Material
      Adverse Effect”),
      which
      jurisdictions of foreign qualification or registration are identified in
      Schedule 2(B)(g) hereto. The Operating Partnership is, and at each Closing
      Date
      will be, duly qualified or registered to do business and in good standing as
      a
      foreign limited partnership in all jurisdictions in which the nature of the
      activities conducted by it or the character of the assets owned, leased or
      operated by it makes such qualification or registration necessary, except where
      failure to obtain such qualification or registration will not have a Material
      Adverse Effect, which jurisdictions of foreign qualification or registration
      are
      identified in Schedule 2(B)(g) hereto. Complete and correct copies of the
      articles of incorporation and of the by-laws of the Company and the certificate
      of limited partnership and agreement of limited partnership of the Operating
      Partnership and all amendments thereto have been delivered to the Initial
      Purchaser or its counsel.

     

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (h) Organization,
      Power and Authority and Capitalization of Subsidiaries.
      Each of
      First Industrial Financing Partnership, L.P. (the “Financing
      Partnership”),
      First
      Industrial Securities, L.P. (“Securities,
      L.P.”),
      First Industrial Mortgage Partnership, L.P. (the “Mortgage
      Partnership”),
      First
      Industrial Pennsylvania, L.P. (“FIP”),
      First
      Industrial Harrisburg, L.P. (“FIH”)
      and
      First Industrial Indianapolis, L.P. (“FII”)
      (the
      Financing Partnership, Securities, L.P., the Mortgage Partnership, FIP, FIH
      and
      FII are referred to collectively herein as the “Partnership
      Subsidiaries”)
      has
      been duly organized and is validly existing as a limited partnership in good
      standing under and by virtue of the laws of its jurisdiction of organization.
      Each of First Industrial Securities Corporation (“FISC”),
      First
      Industrial Indianapolis Corporation (“FIIC”),
      First
      Industrial Finance Corporation (“FIFC”),
      First
      Industrial Mortgage Corporation (“FIMC”),
      First
      Industrial Development Services, Inc. (“FIDSI”)
      and
      First Industrial Pennsylvania Corporation (“FIPC”),
      (FISC, FIIC, FIFC, FIMC, FIDSI and FIPC are referred to collectively herein
      as
      the “Corporate
      Subsidiaries”),
      FR
      First Cal, LLC, (“FR
      First Cal”),
      FR
      Bucks Property Holding, L.P. (“FR
      Bucks”),
      FR
      Lehigh Property Holding, L.P. (“FR
      Lehigh”),
      FR
      Aberdeen, LLC (“FR
      Aberdeen”),
      FR
      Lackawanna Property Holding, LP (“FR
      Lackawanna”),
      FR
      Park Plaza, LLC, (“FR
      Park”),
      First
      Industrial Acquisitions, Inc. (“FIAI”),
      First
      Industrial Harrisburg Corporation (“FIHC”),
      and
      FI Development Services Corporation (“FIDSC”)
      (FR
      First Cal, FR Bucks, FR Lehigh, FR Aberdeen, FR Lackawanna, FR Park, FIAI,
      FIHC,
      and FIDSC are referred to collectively herein as the “Additional
      Subsidiaries,”
      and
      the Partnership Subsidiaries, the Corporate Subsidiaries and the Additional
      Subsidiaries are referred to herein collectively as the “Subsidiaries”
      or
      individually as a “Subsidiary”),
      has
      been duly organized and is validly existing as a corporation in good standing
      under and by virtue of the laws of its jurisdiction of incorporation. Other
      than
      the Corporate Subsidiaries, the Partnership Subsidiaries and the Additional
      Subsidiaries, no entities in which the Company owns any equity securities
      constitute, individually or in the aggregate, a “significant subsidiary” under
      Rule 1-02 of Regulation S-X (substituting “net income” for “income from
      continuing operations”) promulgated under the Exchange Act. FIFC is a
      wholly-owned subsidiary of the Company and is the sole general partner of the
      Financing Partnership. FIM is a wholly-owned subsidiary of the Company and
      is
      the sole general partner of the Mortgage Partnership. FISC is a wholly-owned
      subsidiary of the Company and is the sole general partner of Securities, L.P.
      The Operating Partnership and FISC are the only limited partners of Securities,
      L.P. FIPC is a wholly-owned subsidiary of the Company and is the sole general
      partner of FIP. FIIC is a wholly-owned subsidiary of the Company and is the
      sole
      general partner of FII. FIHC is a wholly-owned subsidiary of the Company and
      is
      the sole general partner of FIH. FIDSI is a wholly-owned subsidiary of the
      Operating Partnership. The Operating Partnership is the sole limited partner
      of
      each Partnership Subsidiary (except for Securities, L.P.). Each of the
      Subsidiaries has, and at each Closing Date will 

     

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    have,
      full corporate, partnership or limited liability company power and authority,
      as
      the case may be, to conduct all the activities conducted by it, to own, lease
      or
      operate all the properties and other assets owned, leased or operated by it
      and
      to conduct its business in which it engages or proposes to engage and the
      transactions contemplated hereby. Each of the Corporate Subsidiaries is, and
      at
      each Closing Date will be, duly qualified or registered to do business and
      in
      good standing as a foreign corporation in all jurisdictions in which the nature
      of the activities conducted by it or the character of the properties and assets
      owned, leased or operated by it makes such qualification or registration
      necessary, except where failure to obtain such qualifications or registration
      will not have a Material Adverse Effect, which jurisdictions of foreign
      qualification or registration are identified in Schedule 2(B)(h) hereto. Each
      of
      the Partnership Subsidiaries is, and at each Closing Date will be, duly
      qualified or registered to do business and in good standing as a foreign limited
      partnership in all jurisdictions in which the nature of the activities conducted
      by it or the character of the assets owned, leased or operated by it makes
      such
      qualification or registration necessary, except where failure to obtain such
      qualification or registration will not have a Material Adverse Effect, which
      jurisdictions of foreign qualification or registration are identified in
      Schedule 2(B)(h) hereto. Complete and correct copies of the charter documents,
      partnership agreements and other organizational documents of the Subsidiaries
      and all amendments thereto as have been requested by the Initial Purchaser
      or
      its counsel have been delivered to the Initial Purchaser or its
      counsel.

     

    (i) Partnership
      Agreements.
      As of
      each Closing Date, the partnership agreement of the Operating Partnership will
      have been duly authorized, executed and delivered by the Company, as general
      partner and a limited partner, and the partnership agreement of each Partnership
      Subsidiary will have been duly authorized, validly executed and delivered by
      each partner thereto and (assuming in the case of the Operating Partnership
      the
      due authorization, execution and delivery of the partnership agreement by each
      limited partner other than the Company) each such partnership agreement will
      be
      a valid, legally binding and enforceable in accordance with its terms
      immediately following each Closing Date subject to (i) the effect of bankruptcy,
      insolvency, fraudulent conveyance, reorganization, moratorium or other similar
      laws now or hereafter in effect relating to or affecting the rights and remedies
      of creditors and (ii) the effect of general principles of equity, whether
      enforcement is considered in a proceeding in equity or at law, and the
      discretion of the court before which any proceeding therefor may be brought.
      All
      of the issued and outstanding shares of capital stock of the Company and each
      Corporate Subsidiary and all of the outstanding units of general, limited and/or
      preferred partner interests of the Operating Partnership and each Partnership
      Subsidiary will have been duly authorized and are validly issued, fully paid
      and
      non-assessable, and (except as described in the SEC Filings) will be owned
      directly or indirectly (except in the case of the Company) by the Company or
      the
      Operating Partnership, as the case may be, free and clear of all security
      interests, liens and encumbrances (except for pledges in connection with the
      loan agreements of the Company, the Operating Partnership and the
      Subsidiaries).

     

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    (j) Capitalization
      Matters.
      The
      Company’s authorized capitalization consists of 10,000,000 shares of preferred
      stock, par value $.01 per share, 100,000,000 shares of Common Stock, par value
      $.01 per share (the “Common
      Stock”),
      and
      65,000,000 shares of excess stock, par value $.01 per share. All of the
      Company’s issued and outstanding shares of Common Stock and preferred stock have
      been duly authorized and are validly issued, fully paid and non-assessable
      and
      will have been offered and sold in compliance, in all material respects, with
      all applicable laws (including, without limitation, federal or state securities
      laws). The shares of Series I Preferred Stock have been duly authorized for
      issuance and sale pursuant to this Agreement and, when the shares of Series
      I
      Preferred Stock have been deposited by the Company with the Depositary in
      accordance with the Deposit Agreement and the Depositary Receipts have been
      issued and delivered by the Depositary and paid for by the Initial Purchaser
      pursuant to this Agreement, such shares of Series I Preferred Stock shall be
      validly issued, fully paid and nonassessable and the Shares represented by
      the
      Depositary Receipts shall be entitled to the benefits of the Deposit Agreement
      and the Depositary Receipts shall constitute valid and binding agreements of
      the
      Depositary and the Company, enforceable in accordance with their terms (except
      to the extent that enforcement thereof may be limited by (i) the effect of
      bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
      other similar laws now or hereafter in effect relating to or affecting the
      rights and remedies of creditors and (ii) the effect of general principles
      of
      equity, whether enforcement is considered in a proceeding in equity or at law,
      and the discretion of the court before which any proceeding therefor may be
      brought) and will have been offered and sold in compliance, in all material
      respects, with all applicable laws (including, without limitation, federal
      or
      state securities laws). Upon payment of the Purchase Price and delivery of
      Depositary Receipts representing the Shares in accordance herewith, the Initial
      Purchaser will receive good, valid and marketable title to the Shares, free
      and
      clear of all security interests, mortgages, pledges, liens, encumbrances, claims
      and equities. The form of Depositary Receipts will be in due and proper form
      and
      will comply, in all material respects, with all applicable legal requirements.
      No shares of Common Stock or preferred stock of the Company are reserved for
      any
      purpose other than shares to be issued pursuant to this Agreement and except
      as
      disclosed in this Agreement or the SEC Filings.

     

    (k) Financial
      Statements.
      The
      financial statements, supporting schedules and related notes included, or
      incorporated by reference, in the SEC Filings comply in all material respects
      with the requirements of the Securities Act and the Exchange Act, as applicable,
      and present fairly the consolidated financial condition of the entity or
      entities or group presented or included therein, as of the respective dates
      thereof, and its consolidated results of operations and cash flows for the
      respective periods covered thereby, are all in conformity with generally
      accepted accounting principles applied on a consistent basis throughout the
      entire period involved, except as otherwise stated therein and except, in the
      case of interim periods, for the notes thereto and normal year-end adjustments.
      The pro forma and/or as adjusted financial information included or incorporated
      by reference in the SEC Filings has been prepared in accordance with the
      applicable requirements of the Securities Act and the American Institute of
      Certified Public Accountants guidelines with respect to pro forma and as
      adjusted financial information, and includes all adjustments necessary to
      present fairly the pro forma and/or as adjusted financial condition of the
      entity or entities or group presented or included therein at the respective
      dates indicated and the results of operations and cash flows for the respective
      periods specified. PricewaterhouseCoopers LLP (the “Accountants”)
      who
      have reported on such financial statements, schedules and related notes, are
      independent registered public accountants with respect to the Company, the
      Operating Partnership and the Partnership Subsidiaries as required by the
      Securities Act.

     

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (l) No
      Change in Capitalization.
      Subsequent to the respective dates as of which information is given in the
      SEC
      Filings and prior to each Closing Date, (i) there has not been and will not
      have
      been at each Closing Date, any change in the capitalization, long term or short
      term debt or in the capital stock or equity of each of the Company, the
      Operating Partnership or any of the Subsidiaries which would be material to
      the
      Company, the Operating Partnership and the Subsidiaries considered as one
      enterprise (anything which would be material to the Operating Partnership,
      the
      Company and the Subsidiaries, considered as one enterprise, being hereinafter
      referred to as “Material”), (ii) except as set forth in the SEC Filings, as
      contemplated by this Agreement and the transactions referred to herein and
      as
      relating to or resulting from the issuance of the Company’s Series I Flexible
      Cumulative Redeemable Preferred Stock, neither the Operating Partnership, the
      Company nor any of the Subsidiaries has incurred nor will any of them incur
      any
      liabilities or obligations, direct or contingent, which would be Material,
      nor
      has any of them entered into nor will any of them enter into any transactions,
      which would be Material, (iii) there has not been any Material Adverse Effect,
      (iv) except for regular quarterly distributions on the Company’s shares of
      Common Stock, and the dividends on the shares of the Company’s (a) Depositary
      Shares each representing 1/100 of a share of 8 5/8% Series C Cumulative
      Preferred Stock (the “Series
      C Preferred Stock”),
      (b)
      Depositary Shares each representing 1/100 of a share of the Company’s 6.236%
      Series F Flexible Cumulative Preferred Stock (the “Series
      F Preferred Stock”)
      and
      (c) Depositary Shares each representing 1/100 of a share of the Company’s 7.236%
      Series G Flexible Cumulative Preferred Stock (the “Series
      G Preferred Stock”),
      the
      Company has not paid or declared and will not pay or declare any dividends
      or
      other distributions of any kind on any class of its capital stock, and (v)
      except for distributions in connection with regular quarterly distributions
      on
      partnership units, the Operating Partnership has not paid any distributions
      of
      any kind on its partnership units.

     

    (m) Ratings.
      At the
      date of this Agreement, the Company’s senior unsecured notes are rated Baa2 by
      Moody’s Investors Service, Inc. (“Moody’s”),
      BBB
      by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.
      (“S&P”),
      and
      BBB by Fitch Ratings Ltd. (“Fitch” and, together with Moody’s and S&P, the
“Rating
      Agencies”)
      and
      the Company’s Preferred Shares are rated Baa3 by Moody’s, BBB- by S&P and
      BBB- by Fitch.

     

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (n) Investment
      Company.
      None of
      the Company, the Operating Partnership or any of the Subsidiaries is, or as
      of
      each Closing Date will be, required to be registered under the Investment
      Company Act.

     

    (o) No
      Material Actions or Proceedings.
      To the
      knowledge of the Company and the Operating Partnership, after due inquiry,
      except as set forth in the SEC Filings, there are no actions, suits,
      proceedings, investigations or inquiries, pending or, after due inquiry,
      threatened against or affecting the Operating Partnership, the Company or any
      of
      the Subsidiaries or any of their respective officers or directors in their
      capacity as such or of which any of their respective properties or assets or
      any
      Property is the subject or bound, before or by any Federal or state court,
      commission, regulatory body, administrative agency or other governmental body,
      domestic or foreign, wherein an unfavorable ruling, decision or finding would
      reasonably be expected to have a Material Adverse Effect.

     

    (p) Compliance
      With Law.
      The
      Company, the Operating Partnership and each of the Subsidiaries (i) have, and
      at
      each Closing Date will have, (A) all governmental licenses, permits, consents,
      orders, approvals and other authorizations necessary to carry on its business
      as
      contemplated in the SEC Filings and are in material compliance with such, and
      (B) complied in all material respects with all laws, regulations and orders
      applicable to it or its business and (ii) are not, and at each Closing Date
      will
      not be, in breach of or default in the performance or observance of any
      obligation, agreement, covenant or condition contained in any indenture,
      mortgage, deed of trust, voting trust agreement, loan agreement, bond,
      debenture, note agreement, lease, contract, joint venture or partnership
      agreement or other agreement or instrument (collectively, a “Contract or Other
      Agreement”) or under any applicable law, rule, order, administrative regulation
      or administrative or court decree to which it is a party or by which any of
      its
      other assets or properties or by which the Properties are bound or affected,
      except where such default, breach or failure will not, either singly or in
      the
      aggregate, have a Material Adverse Effect. To the knowledge of the Operating
      Partnership, the Company and each of the Subsidiaries, after due inquiry, no
      other party under any material Contract or Other Agreement to which it is a
      party is in default thereunder, except where such default will not have a
      Material Adverse Effect. None of the Operating Partnership, the Company or
      any
      of the Subsidiaries is, nor at each Closing Date will any of them be, in
      violation of any provision of its articles of incorporation, by-laws,
      certificate of limited partnership, partnership agreement or other
      organizational document, as the case may be.

     

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    (q) No
      Further Consents Required.
      No
      Material consent, approval, authorization or order of, or any filing or
      declaration with, any court or governmental agency or body or any other entity
      is required in connection with the offering, issuance or sale of the Series
      I
      Preferred Stock and the Shares hereunder except such as may be required under
      state securities, Blue Sky or real estate syndication laws or the by-laws,
      the
      corporate financing rule or the conflict of interests rule of the NASD in
      connection with the purchase and distribution by the Initial Purchaser of the
      Shares or such as have been received prior to the date of this Agreement and
      except for the filing of this Agreement, the Deposit Agreement, the Articles
      Supplementary, the form of certificate representing the Series I Preferred
      Stock
      and the form of the Depositary Receipts with the Commission as exhibits to
      a
      Form 8-K, which the Company agrees to make in a timely manner.

     

    (r) Full
      Corporate and Partnership Authority.
      The
      Company and the Operating Partnership have full corporate or partnership power,
      as the case may be, to enter into each of this Agreement and the Deposit
      Agreement and to execute, deliver and file the Articles Supplementary to the
      extent each is a party thereto. This Agreement has been duly and validly
      authorized, executed and delivered by the Company and the Operating Partnership,
      constitutes a valid and binding agreement of the Company and the Operating
      Partnership, and, assuming due authorization, execution and delivery by the
      Initial Purchaser, is enforceable against the Company and the Operating
      Partnership in accordance with the terms hereof, subject to (i) the effect
      of
      bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
      other similar laws now or hereafter in effect relating to or affecting the
      rights and remedies of creditors and (ii) the effect of general principles
      of
      equity, whether enforcement is considered in a proceeding in equity or at law,
      and the discretion of the court before which any proceeding therefor may be
      brought. The execution, delivery and performance of this Agreement, the Articles
      Supplementary and the Deposit Agreement and the consummation of the transactions
      contemplated hereby, and compliance by each of the Company, the Operating
      Partnership and the Subsidiaries with its obligations hereunder and thereunder,
      to the extent each is a party thereto, will not result in the creation or
      imposition of any lien, charge or encumbrance upon any of the assets or
      properties of the Operating Partnership, the Company or any of the Subsidiaries
      pursuant to the terms or provisions of, or result in a breach or violation
      of
      any of the terms or provisions of, or constitute a default under, or give any
      other party a right to terminate any of its obligations under, or result in
      the
      acceleration of any obligation under, the certificate of incorporation, by-laws,
      certificate of limited partnership, partnership agreement or other
      organizational documents of the Operating Partnership, the Company or any of
      the
      Subsidiaries, any Contract or Other Agreement to which the Company, the
      Operating Partnership or any of the Subsidiaries is a party or by which the
      Company, the Operating Partnership or any of the Subsidiaries or any of their
      assets or properties are bound or affected, or violate or conflict with any
      judgment, ruling, decree, order, statute, rule or regulation of any court or
      other governmental agency (foreign or domestic) or body applicable to the
      business or properties of the Operating Partnership, the Company or any of
      the
      Subsidiaries or to the Properties, in each case except for liens, charges,
      encumbrances, breaches, violations, defaults, rights to terminate or accelerate
      obligations, or conflicts, the imposition or occurrence of which would not
      have
      a Material Adverse Effect.

     

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    (s) Title
      to Properties.
      As of
      each Closing Date, each of the Company, the Operating Partnership and the
      Subsidiaries will have good and marketable title to all properties and assets
      described in the SEC Filings as owned by it, free and clear of all liens,
      encumbrances, claims, security interests and defects, except such as are
      described in the SEC Filings, or such as secure the loan facilities of the
      Operating Partnership, the Company and the Subsidiaries, or would not result
      in
      a Material Adverse Effect.

     

    (t) Insurance.
      The
      Operating Partnership, the Company and the Partnership Subsidiaries have
      property, title, casualty and liability insurance in favor of the Operating
      Partnership, the Company or the Partnership Subsidiaries with respect to each
      of
      the Properties, in an amount and on such terms as is reasonable and customary
      for businesses of the type conducted by the Operating Partnership, the Company
      and the Partnership Subsidiaries except in such instances where the tenant
      is
      carrying such insurance or the tenant is self-insuring risks;

     

    (u) Authorization
      of the Deposit Agreement.
      The
      Deposit Agreement has been duly authorized by the Company and, at each Closing
      Date, will have been duly executed and delivered by the Company, and, assuming
      due authorization, execution, and delivery of the Deposit Agreement by the
      other
      respective parties thereto, the Deposit Agreement will, at each Closing Date,
      constitute a valid and binding obligation of the Company, enforceable against
      the Company in accordance with its terms (except to the extent that enforcement
      thereof may be limited by (i) the effect of bankruptcy, insolvency, fraudulent
      conveyance, reorganization, moratorium or other similar laws now or hereafter
      in
      effect relating to or affecting the rights and remedies of creditors and (ii)
      the effect of general principles of equity, whether enforcement is considered
      in
      a proceeding in equity or at law, and the discretion of the court before which
      any proceeding therefor may be brought).

     

    (v) Compliance
      With Environmental Laws.
      Except
      as disclosed in the SEC Filings, and, except for activities, conditions,
      circumstances or matters that would not have a Material Adverse Effect: (i)
      to
      the knowledge of the Company and the Subsidiaries, after due inquiry, the
      operations of the Operating Partnership, the Company and the Subsidiaries are
      in
      compliance with all Environmental Laws (as defined below) and all requirements
      of applicable permits, licenses, approvals and other authorizations issued
      pursuant to Environmental Laws; (ii) to the knowledge of the Operating
      Partnership, the Company and the Subsidiaries, after due inquiry, none of the
      Operating Partnership, the Company or the Subsidiaries has caused or suffered
      to
      occur any Release (as defined below) of any Hazardous Substance (as defined
      below) into the Environment (as defined below) on, in, under or from any
      Property, and no condition exists on, in, under or adjacent to any Property
      that
      could reasonably be 

     

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    expected
      to result in the incurrence of liabilities under, or any violations of, any
      Environmental Law or give rise to the imposition of any Lien (as defined below),
      under any Environmental Law; (iii) none of the Operating Partnership, the
      Company or the Subsidiaries has received any written notice of a claim under
      or
      pursuant to any Environmental Law or under common law pertaining to Hazardous
      Substances on, in, under or originating from any Property; (iv) none of the
      Operating Partnership, the Company or the Subsidiaries has actual knowledge
      of,
      or received any written notice from any Governmental Authority (as defined
      below) claiming, any violation of any Environmental Law or a determination
      to
      undertake and/or request the investigation, remediation, clean-up or removal
      of
      any Hazardous Substance released into the Environment on, in, under or from
      any
      Property; and (v) no Property is included or, to the knowledge of the Operating
      Partnership, the Company or the Subsidiaries, after due inquiry, proposed for
      inclusion on the National Priorities List issued pursuant to CERCLA (as defined
      below) by the United States Environmental Protection Agency (the “EPA”), or
      included on the Comprehensive Environmental Response, Compensation, and
      Liability Information System database maintained by the EPA, and none of the
      Operating Partnership, the Company or the Subsidiaries has actual knowledge
      that
      any Property has otherwise been identified in a published writing by the EPA
      as
      a potential CERCLA removal, remedial or response site or, to the knowledge
      of
      the Company and its Subsidiaries, is included on any similar list of potentially
      contaminated sites pursuant to any other Environmental Law.

     

    As
      used
      herein, “Hazardous Substance” shall include any hazardous substance, hazardous
      waste, toxic substance, pollutant or hazardous material, including, without
      limitation, oil, petroleum or any petroleum-derived substance or waste, asbestos
      or asbestos-containing materials, PCB’s, pesticides, explosives, radioactive
      materials, dioxins, urea formaldehyde insulation or any constituent of any
      such
      substance, pollutant or waste which is subject to regulation under any
      Environmental Law (including, without limitation, materials listed in the United
      States Department of Transportation Optional Hazardous Material Table, 49 C.F.R.
      § 172.101, or in the EPA’s List of Hazardous Substances and Reportable
      Quantities, 40 C.F.R. Part 302); “Environment” shall mean any surface water,
      drinking water, ground water, land surface, subsurface strata, river sediment,
      buildings, structures, and ambient, workplace and indoor and outdoor air;
“Environmental Law” shall mean the Comprehensive Environmental Response,
      Compensation and Liability Act of 1980, as amended (42 U.S.C. § 9601 et
      seq.) (“CERCLA”), the Resource Conservation and Recovery Act of 1976, as amended
      (42 U.S.C. § 6901, et seq.), the Clean Air Act, as amended (42 U.S.C.
§ 7401, et seq.), the Clean Water Act, as amended (33 U.S.C. §  1251,
      et seq.), the Toxic Substances Control Act, as amended (15 U.S.C. § 2601,
      et seq.), the Occupational Safety and Health Act of 1970, as amended (29 U.S.C.
      § 651, et seq.), the Hazardous Materials Transportation Act, as amended
      (49
      U.S.C. § 1801, et seq.), and all other federal, state and local laws,
      ordinances, regulations, rules and orders relating to the protection of the
      environment or of human health from environmental effects; “Governmental
      Authority” shall mean any federal, state or local governmental office, agency or
      authority having the duty or authority to promulgate, implement or enforce
      any
      Environmental Law; “Lien” shall mean, with respect to any Property, any
      mortgage, deed of trust, pledge, security interest, lien, encumbrance, penalty,
      fine, charge, assessment, judgment or other liability in, on or affecting such
      Property; and “Release” shall mean any spilling, leaking, pumping, pouring,
      emitting, emptying, discharging, injecting, escaping, leaching, dumping,
      emanating or disposing of any Hazardous Substance into the Environment,
      including, without limitation, the abandonment or discard of barrels,
      containers, tanks (including, without limitation, underground storage tanks)
      or
      other receptacles containing or previously containing and containing a residue
      of any Hazardous Substance.

     

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    None
      of
      the environmental consultants which prepared environmental and asbestos
      inspection reports with respect to any of the Properties was employed for such
      purpose on a contingent basis or has any substantial interest in the Operating
      Partnership, the Company or any of the Subsidiaries, and none of them nor any
      of
      their directors, officers or employees is connected with the Operating
      Partnership, the Company or any of the Subsidiaries as a promoter, selling
      agent, voting trustee, director, officer or employee.

     

    (w) REIT
      Status.
      The
      Company, the Operating Partnership and the Subsidiaries are organized and
      operate in a manner so that the Company qualifies as a REIT under Sections
      856
      through 860 of the Code, and the Company has elected to be taxed as a REIT
      under
      the Code commencing with the taxable year ended December 31, 1994. The Company,
      the Operating Partnership and the Subsidiaries intend to continue to be
      organized and operate so that the Company shall qualify as a REIT for the
      foreseeable future, unless the Company’s board of directors determines that it
      is no longer in the best interests of the Company to be so
      qualified.

     

    (x) Material
      Document Filings.
      There is
      no material document or contract of a character required to be described or
      referred to in the SEC Filings or to be filed as an exhibit to the SEC Filings
      which is not described or filed as required therein, except for the filing
      of
      this Agreement, the Deposit Agreement, the Articles Supplementary, the form
      of
      certificate representing the Series I Preferred Stock and the form of the
      Depositary Receipts with the Commission, which the Company agrees to make in
      a
      timely manner, and the descriptions thereof or references thereto are accurate
      in all material respects.

     

    (y) No
      Labor Disputes.
      None of
      the Operating Partnership, the Company or any of the Subsidiaries is involved
      in
      any labor dispute nor, to the knowledge of the Operating Partnership, the
      Company or the Subsidiaries, after due inquiry, is any such dispute threatened
      which would be Material.

     

    (z) Intellectual
      Property.
      The
      Operating Partnership, the Company and the Subsidiaries own, or are licensed
      or
      otherwise have the full exclusive right to use, all material trademarks and
      trade names which are used in or necessary for the conduct of their respective
      businesses as described in the SEC Filings. To the knowledge of the Company
      and
      the Operating Partnership, no claims have been asserted by any person to the
      use
      of any such trademarks or trade names or challenging or questioning the validity
      or effectiveness of any such trademark or trade name. The use, in connection
      with the business and operations of the Operating Partnership, the Company
      and
      the Subsidiaries, of such trademarks and trade names does not, to the Company’s
      or the Operating Partnership’s knowledge, infringe on the rights of any
      person.

     

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    (aa) Tax
      Returns.
      Each of
      the Operating Partnership, the Company and the Subsidiaries has filed all
      federal, state, local and foreign income tax returns which were required to
      be
      filed (except in any case in which the failure to so file would not result
      in a
      Material Adverse Effect) and has paid all taxes required to be paid and any
      other assessment, fine or penalty levied against it, to the extent that any
      of
      the foregoing would otherwise be delinquent, except, in all cases, for any
      such
      tax, assessment, fine or penalty that is being contested in good faith and
      except in any case in which the failure to so pay would not result in a Material
      Adverse Effect.

     

    (bb) Partnership
      Tax Treatment. The
      Operating Partnership and each of the Partnership Subsidiaries is properly
      treated as a partnership for U.S. federal income tax purposes and not as a
      “publicly traded partnership.”

     

    (cc) Disclosure
      of Relationships.
      No
      relationship, direct or indirect, exists between or among the Company, the
      Operating Partnership or the Subsidiaries on the one hand, and the directors,
      officers, stockholders, customers or suppliers of the Company, the Operating
      Partnership or the Subsidiaries on the other hand, which is required by the
      Securities Act to be described in the SEC Filings which is not so
      described.

     

    (dd) Company’s
      Internal Accounting System.
      The
      Company maintains a system of internal accounting controls sufficient to provide
      reasonable assurances that: (i) transactions are executed in accordance with
      management’s general or specific authorization; (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      generally accepted accounting principles and to maintain accountability for
      assets; (iii) access to assets and financial and corporate books and records
      is
      permitted only in accordance with management’s general or specific
      authorization; and (iv) the recorded accountability for assets is compared
      with
      existing assets at reasonable intervals and appropriate action is taken with
      respect to any differences.

     

    (ee) Limits
      on Dividends.
      No
      Subsidiary of the Company is currently prohibited, directly or indirectly,
      from
      paying any dividends to the Company, from making any other distribution on
      such
      Subsidiary’s capital stock, from repaying to the Company any loans or advances
      to such Subsidiary from the Company or from transferring any of such
      Subsidiary’s property or assets to the Company or any other Subsidiary of the
      Company, except to the extent disclosed in the SEC Filings or as would not
      be
      Material, individually or in the aggregate.

     

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    (ff) No
      Limits on Redemption of Shares.
      The
      redemption by the Company of the Shares in accordance with the Articles would
      not constitute a breach or violation of, or a default under, or conflict with,
      or give any other party a right to terminate any of its obligations under,
      or
      result in the acceleration of any obligation under, or result in the creation
      or
      imposition of any lien, charge or encumbrance upon the Properties or any of
      the
      other assets of the Company or any of its Subsidiaries pursuant to the terms
      or
      provisions of the Articles or Bylaws of the Company, the articles or certificate
      of incorporation or bylaws or partnership agreement or operating agreement
      of
      any of the Subsidiaries or any material contract, lease or other instrument
      to
      which the Company or any of the Subsidiaries is a party or by which any of
      their
      property may be bound or any judgment, ruling, decree, order, law, statute,
      rule
      or regulation of any court or other governmental agency or body applicable
      to
      the Properties or the business or properties of the Company or any of the
      Subsidiaries, provided
      that the
      Company makes no representation as to whether any redemption would be restricted
      under any financial covenants of the Operating Partnership’s $500 million
      unsecured credit facility, outstanding mortgage loans or senior unsecured debt
      instruments (as described in or filed with the SEC Filings) or any other
      material credit agreement to which the Company, the Operating Partnership or
      any
      of the Subsidiaries is a party and, provided,
      further,
      that
      the Company does not currently expect that such financial covenants would limit
      its ability to redeem the Shares within the 180-day period following the date
      of
      this Agreement.

     

    (gg) Certificates
      and Documents.
      Any
      certificate or other document signed by any officer or authorized representative
      of the Operating Partnership, the Company or any Subsidiary, and delivered
      to
      the Initial Purchaser or to counsel for the Initial Purchaser in connection
      with
      the sale of the Shares shall be deemed a representation and warranty by such
      entity, as the case may be, to the Initial Purchaser as to the matters covered
      thereby.

     

    (hh) No
      Brokers.
      There
      are no contracts, agreements or understandings between the Company or any of
      its
      Subsidiaries and any person that would give rise to a valid claim against the
      Company or the Initial Purchaser for a brokerage commission, finder’s fee or
      other like payment in connection with the offering, issuance and sale of the
      Shares, other than the fee payable to the Initial Purchaser pursuant to this
      Agreement.

     

    Section
      3. Additional
      Covenants of the Company. The Company further covenants and agrees with the
      Initial Purchaser as follows:

     

    (a) Future
      Reports to the Initial Purchaser.
      For so
      long as the Shares are outstanding and are held by the Initial Purchaser, the
      Company shall furnish to Wachovia Investment Holdings, LLC at the address set
      forth below as soon as available, copies of any report or communication of
      the
      Company mailed generally to holders of its capital stock or debt instruments,
      except for any such reports or communications available through the Commission’s
      EDGAR system.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    (b) No
      Integration.
      The
      Company agrees that it shall not make any offer or sale of securities if, as
      a
      result of the doctrine of “integration” referred to in Rule 502 under the
      Securities Act, such offer or sale would render unavailable (for the purpose
      of
      (i) the sale of the Shares by the Company to the Initial Purchaser or (ii)
      the
      resale of the Shares by the Initial Purchaser to Subsequent Purchasers) the
      exemption from the registration requirements of the Securities Act provided
      by
      Section 4(2) thereof, including the provisions of Regulation D under the
      Securities Act, or by Rule 144A thereunder or otherwise.

     

    (c) Due
      Diligence.
      In
      connection with the original placement of the Shares, from the date hereof
      to
      each Closing Date, the Company agrees that the Initial Purchaser and counsel
      for
      the Initial Purchaser shall have the right to make reasonable inquiries into
      the
      business of the Company, and the Company also agrees to provide answers to
      such
      inquiries (to the extent that such information is available or can be acquired
      and made available without extraordinary effort or expense and to the extent
      the
      provision thereof is not prohibited by applicable law).

     

    (d) Investment
      Company Act.
      The
      Company agrees to take such steps as shall be necessary to ensure that neither
      the Company nor any Subsidiary shall become an “investment company” within the
      meaning of such term under the Investment Company Act of 1940 and the rules
      and
      regulations of the Commission thereunder.

     

    (e) Payment
      of Company Expenses.
      The
      Company agrees to pay all costs, fees and expenses incurred in connection with
      the performance of its obligations under this Agreement and in connection with
      the transactions contemplated by this Agreement and by the Offering Memorandum,
      including, without limitation, (i) all expenses incident to the issuance and
      delivery of the Shares (including all printing and engraving costs), (ii) all
      fees and expenses of the registrar and transfer agent of the Shares, (iii)
      all
      necessary issue, transfer and other stamp taxes in connection with the issuance
      and sale of the Shares to the Initial Purchaser, (iv) all fees and expenses
      of
      the Company’s counsel, independent public or certified public accountants and
      other advisors, (v) all costs and expenses incurred in connection with the
      preparation, printing, filing, shipping and distribution of the Offering
      Memorandum (including financial statements), and all amendments and supplements
      thereto, (vi) all filing fees, attorneys’ fees and expenses reasonably incurred
      by the Company or the Initial Purchaser in connection with qualifying or
      registering (or obtaining exemptions from the qualification or registration
      of)
      all or any part of the Shares for offer and sale or placement, as the case
      may
      be, under the Blue Sky laws and, if requested by the Initial Purchaser,
      preparing and printing a “Blue Sky Survey” or memorandum, and any supplements
      thereto, provided
      that in
      the case of the Initial Purchaser, such filing fees, attorneys’ fees and
      expenses shall not exceed $10,000, and (vii) the fees payable in connection
      with
      the inclusion of the Shares in The PORTAL Market. Except as provided in this
      Section
      3(e),
      Section
      6
      and
Section
      9
      of this
      Agreement, the Initial Purchaser shall pay its own expenses.

     

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    (f) Registration
      Rights Agreement.
      Unless
      the Shares have been redeemed, no later than May 8, 2006, the Company shall
      authorize the execution, delivery and performance of the Registration Rights
      Agreement (including provisions for Registration Default liquidated damages
      similar to those set forth in Section
      7(A)(e)
      of this
      Agreement).

     

    (g) No
      Limits on Redemption of Shares.
      The
      Company will not, and will cause its Subsidiaries not to, amend the Articles
      or
      Bylaws of the Company, the articles or certificate of incorporation or bylaws
      or
      partnership agreement or operating agreement of any of the Subsidiaries or
      amend
      or enter into any contract, lease or other instrument or suffer to exist any
      judgment, ruling, decree, or order of any court or other governmental agency
      or
      body applicable to the Company or any of its Subsidiaries that would prohibit
      or
      restrict in any material manner the ability of the Company to redeem the
      Shares.

     

    The
      Initial Purchaser may, in its sole discretion, but shall not be required to,
      waive in writing the performance by the Company of any one or more of the
      foregoing covenants or extend the time for their performance.

     

    Section
      4. Appointment
      of Wachovia Investment Holdings, LLC, as Initial Dividend Rate Calculation
      Agent. The initial Dividend Rate Calculation Agent under the Articles
      Supplementary for the Company is appointed as follows:

     

    (a) Appointment
      of Calculation Agent.
      Upon
      the terms and subject to the conditions set forth in this Section
      4,
      effective from and after each Closing, the Company hereby appoints Wachovia
      Investment Holdings, LLC as its Dividend Rate Calculation Agent under the
      Articles Supplementary (in such capacity, the “Calculation
      Agent”),
      and
      Wachovia Investment Holdings, LLC hereby accepts such appointment.

     

    (b) Duties
      of Calculation Agent.
      In
      acting under this Section
      4,
      the
      Calculation Agent shall be obligated to perform only such duties as are set
      forth specifically herein and in the Articles Supplementary as duties of the
      Dividend Rate Calculation Agent. In acting under this Agreement, the Calculation
      Agent (in its capacity as such) assumes no obligation towards, or any
      relationship of agency or trust for or with, the holders of the
      Shares.

     

    (c) Expenses.
      The
      Company shall reimburse the Calculation Agent for all reasonable expenses,
      disbursements and advances incurred or made by the Calculation Agent in
      connection with the services rendered by it as Calculation Agent under this
      Agreement (including reasonable legal fees and expenses) upon receiving an
      accounting therefor from the Calculation Agent; provided,
      however,
      until
      May 8, 2006, the Calculation Agent shall pay its expenses incurred in its role
      as Calculation Agent.

     

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    (d) Rights
      and Liabilities of Calculation Agent.
      The
      Calculation Agent shall incur no liability for, or in respect of, any action
      taken, omitted to be taken or suffered by it in reliance upon any certificate,
      affidavit, instruction, notice, request, direction, order, statement or other
      paper, document or communication reasonably believed by it to be genuine and
      correct. Any certificate, affidavit, instruction, notice, request, direction,
      order, statement or other paper, document or communication from the Company
      made
      or given by it and sent, delivered or directed to the Calculation Agent under,
      pursuant to or as permitted by any provision of this Agreement shall be
      sufficient for purposes of this Agreement if such communication is in writing
      and signed by any officer of the Company. The Calculation Agent may consult
      with
      counsel satisfactory to it and, as to legal matters, the opinion of such counsel
      shall constitute full and complete authorization and protection of the
      Calculation Agent with respect to any action taken, omitted to be taken or
      suffered by it hereunder in good faith and in accordance with and in reliance
      upon the opinion of such counsel.

     

    (e) Right
      of Calculation Agent to Own Shares.
      The
      Calculation Agent may act as Calculation Agent and it and its officers,
      employees and shareholders may become owners of, or acquire any interest in,
      Series I Preferred Stock and the Shares, with the same rights as if the
      Calculation Agent were not the Calculation Agent, and may engage in, or have
      an
      interest in, any financial or other transaction with the Company or any of
      its
      affiliates as if the Calculation Agent were not the Calculation Agent
      hereunder.

     

    (f) Termination,
      Resignation or Removal of Calculation Agent.
      Wachovia Investment Holdings, LLC may at any time terminate its agreement to
      act
      as Calculation Agent by giving no less than 90 days’ written notice to the
      Company (which notice shall specify the date or event upon which such
      termination is to become effective) unless the Company consents in writing
      to a
      shorter time. The Company may terminate its appointment of Wachovia Investment
      Holdings, LLC as Calculation Agent at any time by giving written notice to
      Wachovia Investment Holdings, LLC and specifying the date on which the
      termination shall become effective; provided,
      however,
      that no
      termination by the Calculation Agent or by the Company shall become effective
      prior to the date of the appointment of a successor Calculation Agent by the
      Company as provided in Section
      4(g)
      hereof
      and the acceptance of such appointment by such successor Calculation Agent.
      If
      an instrument of acceptance by a successor Calculation Agent shall not have
      been
      delivered to the resigning or terminated Calculation Agent within 30 days after
      the giving of such notice of resignation and the Company shall not have informed
      the Calculation Agent that it does not intend to appoint a successor Calculation
      Agent, the resigning Calculation Agent may petition any court of competent
      jurisdiction for the appointment of a successor Calculation Agent. Upon
      termination by either party pursuant to the provisions of this Section
      4(f),
      the
      Calculation Agent with respect to which this Agreement has been terminated
      shall
      be entitled to the reimbursement of all reasonable expenses, disbursements
      and
      advances incurred or made by it after November 25, 2004 in connection with
      the
      services rendered by it hereunder, as provided by Section
      4(c)
      hereof.

     

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    (g) Appointment
      of Successor Calculation Agent.
      Any
      successor Calculation Agent appointed by the Company shall execute and deliver
      to the Calculation Agent and to the Company an instrument accepting such
      appointment, and thereupon such successor Calculation Agent shall, without
      any
      further act or instrument, become vested with all the rights, immunities, duties
      and obligations of the Calculation Agent, with like effect as if originally
      named as Calculation Agent hereunder, and the Calculation Agent shall thereupon
      be obligated to transfer and deliver, and such successor Calculation Agent
      shall
      be entitled to receive and accept copies of any available records maintained
      by
      the Calculation Agent in connection with the performance of its obligations
      hereunder.

     

    (h) Indemnification.
      The
      Company shall indemnify and hold harmless the Calculation Agent and its officers
      and employees from and against all actions claims, damages, liabilities, losses
      and expenses (including reasonable legal fees and expenses) relating to or
      arising out of actions or omissions in its capacity as Calculation Agent, except
      actions, claims, damages, liabilities, losses and expenses caused by the gross
      negligence or willful misconduct of the Calculation Agent or its officers or
      employees. The indemnification provided by this Section
      4(g)
      shall
      survive the redemption or exchange of the Shares and the termination of this
      Agreement.
      The
      Company will not be liable for any settlement of any action or claim effected
      without its written consent.

     

    (i) Merger,
      Consolidation or Sale of Business by Calculation Agent.
      Any
      corporation into which the Calculation Agent may be merged, converted or
      consolidated, or any corporation resulting from any merger, conversion or
      consolidation to which the Calculation Agent may be a party, or any corporation
      to which the Calculation Agent may sell or otherwise transfer all or
      substantially all of its corporate trust business shall, to the extent permitted
      by applicable law, become the Calculation Agent under this Agreement without
      the
      execution of any document or any further act by the parties hereto.

     

    (j) Consequential
      Damages.
      In no
      event shall the Calculation Agent be liable for special, indirect or
      consequential loss or damage of any kind whatsoever (including but not limited
      to lost profits), even if the Calculation Agent has been advised of the
      likelihood of such loss or damage and regardless of the form of
      action.

     

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    Section
      5. Conditions
      to Each Closing

     

    (A) Conditions
      to the Obligations of the Initial Purchaser. The obligations of the Initial
      Purchaser to purchase and pay for the Shares as provided in this Agreement
      on
      each Closing Date shall be subject to the accuracy of the representations and
      warranties on the part of the Company as of the date of this Agreement and
      as of
      each Closing Date, as though then made, and to the timely performance by the
      Company of its covenants and other obligations under this Agreement to be
      performed at or prior to such date, and to each of the following additional
      conditions:

     

    (a) Opinions
      of Company Counsel.
      On each
      Closing Date, the Initial Purchaser shall have received the opinions of Cahill
      Gordon & Reindel llp,
      securities and tax counsel for the Company; McGuire Woods LLP, Maryland counsel
      for the Company; and Barack Ferrazzano Kirschbaum Perlman & Nagelberg,
      Illinois counsel for the Company, each dated the Closing Date, in form and
      substance satisfactory to the Initial Purchaser.

     

    (b) Company
      Certificate.
      On each
      Closing Date the Initial Purchaser shall have received from the Company a
      certificate, dated the date of its delivery, signed by two officers of the
      Company holding the offices of (x) Chief Executive Officer and (y) Chief
      Financial Officer, or superior officers, in form and substance satisfactory
      to
      the Initial Purchaser, to the effect that:

     

    (i) Either
      no
      request for information regarding the Shares or this private placement on the
      part of the staff of the Commission or any state “Blue Sky” authorities has been
      received, or if any such request has been received, it has been complied with
      to
      the satisfaction of the staff of the Commission or such
      authorities;

     

    (ii) Each
      signer of such certificate has carefully examined the SEC Filings and, as of
      the
      date of such certificate, the SEC Filings do not contain any untrue statement
      of
      a material fact or omit to state any material fact required to be stated therein
      or necessary to make the statements therein, in the light of the circumstances
      in which they were made, not misleading. All documents required to be filed
      under the Exchange Act since January 1, 2004 have been filed as
      required;

     

    (iii) Each
      of
      the representations and warranties of the Company contained in this Agreement
      was, when originally made, and is, at the time such certificate is delivered,
      true and correct;

     

    (iv) Each
      of
      the covenants required to be performed by the Company herein on or prior to
      the
      delivery of such certificate has been duly, timely and fully performed in all
      material respects, and each condition herein required to be complied with by
      the
      Company on or prior to the date of such certificate has been duly, timely and
      fully complied with;

     

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

     

    (v) Except
      as
      set forth in the SEC Filings, as contemplated by this Agreement and the
      transactions referred to herein and as relating to or resulting from the
      issuance of the Company’s Series I Flexible Cumulative Redeemable Preferred
      Stock for the period from and after the date of this Agreement through the
      date
      of such certificate, (A) the Company and its Subsidiaries, taken as a whole,
      have not incurred any liabilities or obligations, direct or contingent, or
      entered into any transactions (other than, in each case, in the ordinary course
      of business consistent with past practice), that are material to the Company
      and
      its Subsidiaries, taken as a whole, (B) there has not been any material
      change in the shares of beneficial interest, short-term debt or long-term debt
      of the Company and (C) there has not been any material adverse change,
      or
      any development involving a prospective material adverse change, in the
      financial condition, business, prospects, net worth or results of operations
      of
      the Company and its Subsidiaries, taken as a whole.

     

    (c) Other
      Documents.
      At each
      Closing, counsel to the Initial Purchaser shall have been furnished with such
      other documents as such counsel may reasonably require in order to evidence
      the
      accuracy and completeness of any of the representations and warranties, or
      the
      fulfillment of any of the conditions, contained in this Agreement; and all
      proceedings taken by the Company in connection with the issuance and sale of
      the
      Shares as contemplated in this Agreement shall be satisfactory in form and
      substance to the Initial Purchaser and to counsel to the Initial
      Purchaser.

     

    (d) No
      Unmet Commission Requests.
      Any
      request for additional information on the part of the staff of the Commission
      or
      any state securities authorities regarding the Shares or this private placement
      shall have been complied with to the satisfaction of the staff of the Commission
      or such authorities.

     

    (e) No
      Material Adverse Change.
      Except
      as set forth in the SEC Filings, as contemplated by this Agreement and the
      transactions referred to herein and as relating to or resulting from the
      issuance of the Company’s Series I Flexible Cumulative Redeemable Preferred
      Stock since the date of this Agreement, (i) the Company and its Subsidiaries,
      taken as a whole, shall not have incurred any liabilities or obligations, direct
      or contingent, or entered into any transactions (other than, in each case,
      in
      the ordinary course of business consistent with past practice), that are
      material to the Company and its Subsidiaries taken as a whole, and (ii) there
      shall not have occurred any material change in the shares of beneficial
      interest, short-term debt or long-term debt of the Company, (iii) there shall
      not have occurred any material adverse change, or any development involving
      a
      prospective material adverse change, in the financial condition, business,
      prospects, net worth or results of operations of the Company and its
      Subsidiaries, taken as a whole, and (iv) neither the Company nor any of its
      Subsidiaries shall have sustained any material loss or interference with its
      business or properties from fire, explosion, flood or other casualty not covered
      by insurance if, in the reasonable judgment of the Initial Purchaser, any such
      loss or interference causes a Material Adverse Effect.

     

     

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

     

    (f) No
      Material Litigation Commenced.
      Since
      the respective dates as of which information is given in the SEC Filings, there
      shall have been no litigation or other proceeding instituted against the Company
      or any of its Subsidiaries or any of their respective officers, directors or
      trustees in their capacities as such, before or by any Federal, state or local
      court, commission, regulatory body, administrative agency or other governmental
      body, domestic or foreign, in which litigation or proceeding an unfavorable
      ruling, decision or finding would be reasonably expected to result in a Material
      Adverse Effect.

     

    (g) Subsequent
      Closing Condition.
      On or
      prior to the Subsequent Closing Date, the Initial Purchaser shall have received
      from the Company a waiver in form and substance reasonably satisfactory to
      the
      Initial Purchaser and the Company, effectively waiving the
      ownership limit (as defined in the Articles) as it applies to the Initial
      Purchaser (the “Ownership
      Limit Waiver”).

     

    All
      such
      opinions, certificates, letters and other documents will be in compliance with
      the provisions hereof only if they are reasonably satisfactory in form and
      substance to the Initial Purchaser and its counsel. If any condition specified
      in this Section
      5(A)
      shall
      not have been fulfilled when and as required to be fulfilled, this Agreement
      may
      be terminated by the Initial Purchaser by notice to the Company at any time,
      and
      any such termination shall be without liability of any party to any other party,
      except that the indemnity and contribution agreements set forth in Section
      4(h)
      and
Section
      9
      hereof,
      the provisions concerning payment of expenses under Section
      3(e),
      and
Section
      6
      and the
      provisions relating to governing law shall remain in effect.

     

    (B) Conditions
      to the Obligations of the Company.

     

    (a) The
      obligations of the Company to sell the Shares as provided in this Agreement
      on
      each Closing Date shall be subject to the accuracy of the representations and
      warranties on the part of the Initial Purchaser as of the date of this Agreement
      and as of such Closing Date, as though then made, and to the timely performance
      by the Initial Purchaser of its covenants and other obligations under this
      Agreement to be performed at or prior to such date, and to the condition that
      there shall not be any injunction, judgment, order, decree, ruling or charge
      in
      effect preventing, or any litigation seeking to prevent or interfere with,
      the
      consummation of any of the transactions contemplated by this
      Agreement.

     

    (b) If
      any
      condition specified in this Section
      5(B)
      shall
      not have been fulfilled when and as required to be fulfilled, this Agreement
      may
      be terminated by the Company by notice to the Initial Purchaser at any time
      and
      any such termination shall be without liability of any party to any other party,
      except that the indemnity and contribution agreements set forth in Section
      4(h)
      and
Section
      9
      hereof,
      the provisions concerning payment of expenses under Section
      3(e)
      and
Section
      6
      and the
      provisions relating to governing law shall remain in effect.

     

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

     

    (c) Subsequent
      Closing Conditions.
      

     

    (i) On
      or
      prior to the Subsequent Closing Date, the Company shall have received from
      the
      Initial Purchaser a letter of representation in form and substance satisfactory
      to the Company and the Initial Purchaser, making certain representations in
      connection with the Ownership Limit Waiver. 

     

    (ii) On
      or
      prior to the Subsequent Closing Date, the Company shall have received corporate
      authority granting the Ownership Limit Waiver.

     

    Section
      6. Reimbursement
      of Initial Purchaser’s Expenses. If this Agreement is terminated by the Initial
      Purchaser pursuant to Section
      5(A),
      or if
      the sale to the Initial Purchaser of the Shares on any Closing Date is not
      consummated because of any refusal, inability or failure on the part of the
      Company to perform any agreement herein or to comply with any provision of
      this
      Agreement, the Company agrees to reimburse the Initial Purchaser upon demand
      for
      all reasonable out-of-pocket expenses that shall have been incurred by the
      Initial Purchaser in connection with the proposed purchase and the offering
      and
      sale of the Shares to have been delivered at such Closing Date, including,
      but
      not limited to, fees and disbursements of advisors, travel expenses, postage,
      facsimile and telephone charges.

     

    Section
      7. Contingent
      Obligations of the Company if the Company Fails to Issue a Redemption Notice
      for
      the Shares by April 10, 2006. If by 5:00 p.m. New York time on April 10, 2006
      the Company has not delivered to the Initial Purchaser an irrevocable notice
      of
      redemption of all of the Shares with a Redemption Date on or before May 8,
      2006,
      then the Company shall be obligated as set forth below in this Section
      7;
      provided,
      however,
      that
      each and every such obligation shall terminate upon the redemption of all the
      Series I Depositary Shares by the Company; provided
      further,
      however,
      that
      such termination shall not relieve the Company from any liability for damages
      suffered by the Initial Purchaser as a result of any breach of such obligations
      by the Company prior to such termination. Time shall be of the essence with
      respect to the Company’s compliance with the deadlines set forth in this
Section
      7. 

     

    (A) Creating
      a Marketable Security.

     

    (a) Additional
      Issuer Information.
      In
      order to render the Shares eligible for resale pursuant to Rule 144A under
      the
      Securities Act for the benefit of holders and beneficial owners from time to
      time of the Shares, the Company shall furnish at its expense upon request,
      while
      any of the Shares remain outstanding, to any holder of Shares or prospective
      purchasers of Shares the information specified in Rule 144A(d)(4) (such
      information, whether made available to holders or prospective purchasers or
      furnished to the Commission, is herein referred to as “Additional
      Issuer Information”),
      unless the Company is then subject to Section 13 or 15(d) of the Exchange Act
      or
      exempt from reporting pursuant to Rule 12g3-2(b) of the Exchange
      Act.

     

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

     

    (b) Offering
      Memorandum.
      The
      Company shall prepare an Offering Memorandum of the sort customary in Rule
      144A
      offerings (including all disclosures required by Rule 144A) for use by the
      Initial Purchaser in connection with resale of the Shares to Subsequent
      Purchasers, which shall be in final form no later than May 8, 2006. The Offering
      Memorandum shall also disclose the REIT-related transfer limitations referred
      to
      in Section
      1(e)
      of this
      Agreement and other restrictions on transfer contained in the Articles. The
      Company agrees to furnish to the Initial Purchaser, without charge, as many
      copies of the Offering Memorandum and any amendments and supplements thereto
      as
      the Initial Purchaser shall reasonably request from time to time for use in
      connection with resales of the Shares.

     

    (c) Resale
      Shelf Registration Statement.
      If the
      Shares have not been redeemed, the Company shall, no later than July 6, 2006,
      file with the Commission the Resale Shelf Registration Statement, including
      a
      prospectus for use by the holders of the Shares, as selling shareholders of
      their Shares, and shall use its best efforts to have the Resale Shelf
      Registration Statement and a companion Form 8-A registration statement, if
      any,
      for the Shares declared effective no later August 4, 2006 and thereafter to
      keep
      such registrations continuously effective with respect to the Shares other
      than
      (i) Shares that have been exchanged or disposed of pursuant to the Resale
      Shelf Registration Statement, (ii)  Shares that are eligible to be sold
      pursuant to Rule 144(k) (or any similar provision then in force, but not Rule
      144A) under the Securities Act and (iii)  Shares that have ceased to
      be
      outstanding. To the extent they are eligible, the Company shall use its
      reasonable best efforts to list the Shares on the New York Stock Exchange
      (“NYSE”)
      commencing upon the effective date of such Form 8-A.

     

    (d) Registration
      Rights Agreement.
      The
      Company shall in good faith negotiate with the Initial Purchaser and no later
      than May 8, 2006 shall sign the Registration Rights Agreement for the benefit
      of
      the holders of the Shares from time to time. The Registration Rights Agreement
      may provide additional terms regarding the Resale Shelf Registration Statement.
      The Registration Rights Agreement shall require the Company, upon the request
      of
      20% in interest of the holders of the Shares, to file a demand registration
      statement (the “Demand
      Registration Statement”
      and,
      together with the Resale Registration Statement, the “Registration
      Statements”)
      in
      connection with an underwritten offering of the Shares, provided
      that the
      Company shall not be required to file more than one such demand registration.
      In
      such underwritten offering, the Company shall cause its officers, attorneys
      and
      auditors to supply customary certificates, opinions and comfort letters at
      the
      closing. The Registration Rights Agreement shall include typical indemnification
      and contribution agreements by the Company for the benefit of the selling
      shareholders under both Registration Statements.

     

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    (e) Liquidated
      Damages.
      If the
      Shares have not been redeemed and (i) the Resale Shelf Registration Statement
      has not been filed with the Commission by July 6, 2006, (ii) by August 7, 2006
      such Resale Shelf Registration Statement has not been declared effective by
      the
      Commission, or (iii) after the Resale Shelf Registration Statement has been
      declared effective, it ceases to be effective or otherwise becomes unusable
      by
      the holders of Shares who are selling shareholders thereunder for any reason,
      and the aggregate number of calendar days in any consecutive twelve (12) month
      period for which the Resale Shelf Registration Statement shall not be usable
      exceeds 30 days in the aggregate (each such event referred to in clauses (i)
      through (iii), inclusive, a “Registration
      Default”),
      a
      cash payment which the Company acknowledges shall constitute liquidated damages
      for any such Registration Default, (a “Default
      Payment”)
      shall
      be payable quarterly in arrears on each Dividend Payment Date (as defined in
      the
      Articles Supplementary) to all record holders of the Shares other than
      (i) shares that have been exchanged or disposed of pursuant to the Resale
      Shelf Registration Statement, (ii)  Shares that are eligible to be sold
      pursuant to Rule 144(k) (or any similar provision then in force, but not Rule
      144A) under the Securities Act and (iii)  Shares that have ceased to
      be
      outstanding (in addition to any regular distribution accruing or payable on
      such
      Shares) and will accrue beginning on (and including) the date on which any
      such
      Registration Default shall occur and ending on (but excluding) the date on
      which
      all Registration Defaults have been cured. Default Payments shall accrue at
      a
      rate of $0.25 (equivalent to 1.00% of the $25.00 liquidation preference) per
      annum per Share. The Company shall cause the Default Payments to be paid on
      the
      regular Dividend Payment Date, whether or not the Company shall have declared
      a
      dividend or other distribution on the Shares for such quarter.

     

    The
      parties to this Agreement agree that the record holders of the Shares may suffer
      damages in the event that a Registration Default has occurred and is continuing,
      and that it would not be possible to ascertain the amount of such damages.
      The
      parties to this Agreement further agree that the Default Payments shall be
      liquidated damages provided for in this Section
      7(A)(e)
      of this
      Agreement and constitute a reasonable estimate of the damages that may be
      incurred by the holders by reason of a Registration Default.

     

    (f) DTC
      Eligibility.
      No
      later than May 8, 2006, the Company shall cause the Shares to be eligible for
      clearance and settlement through the facilities of The Depository Trust Company,
      including, if necessary and to the extent appropriate for a security intended
      to
      be traded under Rule 144A and to the extent allowed by applicable law, removal
      of the legends referred to in Section
      2(A)(h).

     

    (g) PORTAL
      Market Inclusion.
      Upon
      the request of the Initial Purchaser, the Company shall use its best efforts
      to
      cause the Shares to be eligible for trading in the Private Offering, Resales
      and
      Trading through Automated Linkages Market of the National Association of
      Securities Dealers, Inc. (the “PORTAL
      Market”).

     

    (h) Ratings.
      The
      Company shall use its commercially reasonable efforts to cause the Rating
      Agencies to issue ratings with respect to the Shares not later than May 8,
      2006,
      or as soon thereafter as practicable.

     

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

     

    (i) Initial
      Purchaser’s Review of Final Offering Memorandum and Proposed Amendments and
      Supplements.
      Prior
      to the delivery of any proposed Offering Memorandum or any proposed amendment
      or
      supplement thereto by the Company to the Initial Purchaser, the Company shall
      furnish to the Initial Purchaser for review a copy of such proposed Offering
      Memorandum or proposed amendment or supplement thereto, as the case may be,
      prior to printing such Offering Memorandum or any such amendment or supplement
      thereto, and the Company shall not print the Offering Memorandum or issue any
      proposed amendment or supplement containing any provision to which the Initial
      Purchaser or its counsel reasonably objects (with reasonable prior notice in
      writing to the Company).

     

    (j) Amendments
      and Supplements to the Offering Memorandum, Registration Statements and Other
      Securities Law Matters.

     

    (i) If,
      prior
      to the completion of the placement of the Shares by the Initial Purchaser with
      the Subsequent Purchasers, any event shall have occurred or condition exists
      as
      a result of which the Offering Memorandum or either Registration Statement,
      in
      each case as then amended or supplemented, would include an untrue statement
      of
      a material fact or omit to state any material fact necessary in order to make
      the statements therein, in the light of the circumstances under which they
      were
      made when such document is delivered, not misleading, or if in the reasonable
      opinion of counsel for the Initial Purchaser it is otherwise necessary to amend
      or supplement the Offering Memorandum or either Registration Statement to comply
      with applicable law, the Company agrees promptly to prepare (subject to this
      Section
      7(A)),
      file
      with the Commission (with respect to any Registration Statement amendment or
      any
      documents incorporated by reference) and furnish at its own expense to the
      Initial Purchaser, such number of copies of amendments or supplements to the
      Offering Memorandum or a Registration Statement, as the case may be, as are
      reasonably requested by the Initial Purchaser containing such information as
      is
      necessary so that the statements therein as so amended or supplemented will
      not,
      in the light of the circumstances when such document is delivered to a
      purchaser, be misleading or so that such document, as amended or supplemented,
      will comply with applicable law.

     

    (ii) Following
      the effectiveness of either Registration Statement and for so long as the Shares
      are outstanding if, in the judgment of the Initial Purchaser, the Initial
      Purchaser or any of its Affiliates is required to deliver a prospectus in
      connection with sales of, or market-making activities with respect to, the
      Shares, the Company agrees (A) periodically to amend the applicable Registration
      Statement so that the information contained therein complies with the
      requirements of Section 10(a) of the Securities Act, (B) to amend the applicable
      registration statement or supplement the related prospectus or the documents
      incorporated therein when necessary to reflect any material changes in the
      information provided therein so that the registration statement and the
      prospectus will not contain any untrue statement of a material fact or omit
      to
      state any material fact necessary in order to make the statements therein,
      in
      the light of the circumstances existing as of the date the prospectus is so
      delivered, not misleading and (C) to provide the Initial Purchaser with copies
      of each amendment or supplement filed and such other documents as the Initial
      Purchaser may reasonably request.

     

     

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

     

    (iii) The
      Company hereby expressly acknowledges that the indemnification and contribution
      provisions of Section
      9
      of this
      Agreement are specifically applicable and relate to each offering memorandum,
      registration statement, prospectus, amendment or supplement referred to in
      this
Section
      7(A).
      

     

    (k) Blue
      Sky Compliance.
      The
      Company (i) shall cooperate with the Initial Purchaser and counsel for the
      Initial Purchaser to qualify or register the Shares for sale under (or obtain
      exemptions from the application of) the Blue Sky or state or other securities
      laws of those jurisdictions (both domestic and foreign) as may be designated
      by
      the Initial Purchaser or its counsel, (ii) shall comply with such laws and
      (iii)
      shall continue such qualifications, registrations and exemptions in effect
      so
      long as required for the Initial Purchaser’s placement of the Shares to the
      Subsequent Purchasers; provided,
      however,
      that
      the Company shall not be required to qualify as a foreign corporation or to
      take
      any action that would subject it to general service of process in any such
      jurisdiction where it is not presently qualified or where it would be subject
      to
      taxation as a foreign corporation; and provided,
      further,
      that
      the Company may require that offers and sales in one or more jurisdictions
      must
      be made through brokers licensed in that jurisdiction. The Company will advise
      the Initial Purchaser promptly of its knowledge of the suspension of the
      qualification or registration of (or any such exemption relating to) the Shares
      for offering, sale or trading in any jurisdiction or any initiation or threat
      of
      any proceeding for any such purpose, and, in the event of the issuance of any
      order suspending such qualification, registration or exemption, the Company
      shall use its best efforts to obtain the withdrawal thereof at the earliest
      possible moment.

     

    (l) Exchange
      Act Filings.
      Prior
      to the completion of the placement of the Shares by the Initial Purchaser with
      the Subsequent Purchasers, the Company shall file, on a timely basis, with
      the
      Commission and the NYSE all reports and documents required to be filed under
      Section 13 or 15(d) of the Exchange Act.

     

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

     

    (B) Offering
      Commencement Date/Customary Rule 144A Deliveries. If the Company fails to redeem
      all the Shares on or before May 8, 2006, then the Company shall deliver, and
      shall cause its attorneys, accountants and officers, as applicable, to deliver
      the following documents to the Initial Purchaser at the offices of Hunton &
      Williams LLP, Richmond, Virginia no later than 5:00 p.m. New York time on May
      8,
      2006, (the “Offering Commencement Date”).

     

    (a) Opinions
      of Counsel.
      On the
      Offering Commencement Date, the Initial Purchaser shall receive the corporate
      and federal income tax opinion of Cahill Gordon & Reindel llp,
      securities and tax counsel for the Company, the corporate opinion of McGuire
      Woods LLP, Maryland counsel for the Company, and the corporate opinion of Barack
      Ferrazzano Kirschbaum Perlman & Nagelberg, Illinois counsel for the Company,
      each dated the date of its delivery, in substantially the forms set forth in
      Exhibit
      B-1,
      Exhibit
      B-2,
      and
Exhibit
      B-3,
      respectively.

     

    (b) Accountant’s
      Comfort Letter.
      On the
      Offering Commencement Date, the Initial Purchaser shall receive from the
      Accountants (who shall be independent public accountants within the meaning
      of
      Regulation S-X under the Securities Act and the Exchange Act) a letter dated
      as
      of such date addressed to the Initial Purchaser, containing statements and
      information of the type ordinarily included in an accountants’“comfort letter”
      to underwriters of public offerings, delivered according to Statement of
      Auditing Standards No. 72 (or any successor bulletin), with respect to the
      audited, unaudited and pro forma, if any, financial statements and certain
      financial information contained, or incorporated by reference, in the Offering
      Memorandum in form and substance reasonably satisfactory to the Initial
      Purchaser.

     

    (c) Officers’
      Certificate.
      On the
      Offering Commencement Date, the Initial Purchaser shall receive from the Company
      a certificate, dated the date of its delivery, signed by each of the President
      and the Chief Financial Officer of the Company, in form and substance
      satisfactory to the Initial Purchaser, to the effect that:

     

    (i) Any
      request for information regarding the Shares or the Rule 144A offering on the
      part of the staff of the Commission or any such authorities has been complied
      with to the satisfaction of the staff of the Commission or such
      authorities;

     

    (ii) Each
      signer of such certificate has carefully examined the Offering Memorandum (which
      term includes the Incorporated Documents) and (A) as of the date of such
      certificate, such documents, taken together, do not include an untrue statement
      of any material fact or omit to state a material fact necessary in order to
      make
      the statements therein, in the light of the circumstances under which they
      were
      made, not misleading and (B) no event has occurred as a result of which it
      would
      be necessary to amend or supplement the Offering Memorandum in order to make
      the
      statements therein not untrue or misleading in any material respect. All
      documents required to be filed under the Exchange Act since January 1, 2005
      have
      been filed as required;

     

     

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

     

    (iii) Each
      of
      the representations and warranties of the Company contained in this Agreement
      was, when originally made, and is, at the time such certificate is delivered,
      true and correct in all material respects;

     

    (iv) Each
      of
      the covenants required to be performed by the Company herein on or prior to
      the
      delivery of such certificate has been duly, timely and fully performed in all
      material respects, and each condition herein required to be complied with by
      the
      Company on or prior to the date of such certificate has been duly, timely and
      fully complied with;

     

    (v) Except
      as
      set forth in the SEC Filings, as contemplated by this Agreement and the
      transactions referred to herein and as relating to or resulting from the
      issuance of the Company’s Series I Flexible Cumulative Redeemable Preferred
      Stock for the period from and after the date of this Agreement through the
      date
      of such certificate, (A) the Company and its Subsidiaries, taken as a whole,
      have not incurred any liabilities or obligations, direct or contingent, or
      entered into any transactions (other than, in each case, in the ordinary course
      of business consistent with past practice), that are material to the Company
      and
      its Subsidiaries, taken as a whole, (B) there has not occurred any material
      change in the shares of beneficial interest, short-term debt or long-term debt
      of the Company and (C) there has not occurred any material adverse change,
      or any development involving a prospective material adverse change, in the
      financial condition, business, prospects, net worth or results of operations
      of
      the Company and its Subsidiaries, taken as a whole.

     

    (vi) Other
      Documents.
      On the
      Offering Commencement Date, counsel to the Initial Purchaser shall be furnished
      with such other documents as such counsel may reasonably require in order to
      evidence the accuracy and completeness of any of the representations and
      warranties, or the fulfillment of any of the conditions, contained in this
      Agreement.

     

    All
      such
      opinions, certificates, letters and other documents will be in compliance with
      the provisions hereof only if they are reasonably satisfactory in form and
      substance to the Initial Purchaser and its counsel. The Initial Purchaser may,
      in its sole discretion, but shall not be required to, waive in writing the
      performance by the Company of any one or more of the foregoing covenants or
      extend the time for their performance.

     

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

     

    Section
      8. Offer,
      Sale and Resale Procedures. The Initial Purchaser and the Company hereby
      establish and agree to observe the following procedures in connection with
      the
      offer and sale of the Shares:

     

    (a) Offers
      and Sales only to Qualified Institutional Buyers or Institutional Accredited
      Investors.
      Offers
      and sales of the Shares will be made only by the Initial Purchaser or Affiliates
      thereof qualified or registered to do so in the jurisdictions in which such
      offers or sales are made. Each such offer or sale shall be made
      only:

     

    (i) to
      persons whom the offeror or seller, or any person acting on behalf of them,
      reasonably believes to be qualified institutional buyers (as defined in Rule
      144A under the Securities Act); or

     

    (ii) to
      a
      limited number of other institutional accredited investors (as such term is
      defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities
      Act) that the offeror or seller reasonably believes to be and, with respect
      to
      sales and deliveries, that are Accredited Investors (“Institutional
      Accredited Investors”).

     

    (b) No
      General Solicitation.
      The
      Shares will be offered by approaching prospective Subsequent Purchasers on
      an
      individual basis. No general solicitation or general advertising (within the
      meaning of Rule 502(c) under the Securities Act) will be used in connection
      with
      the offering of the Shares.

     

    (c) Purchases
      by Non-Bank Fiduciaries.
      In the
      case of a non-bank Subsequent Purchaser of Shares acting as a fiduciary for
      one
      or more third parties, in connection with an offer and sale to such purchaser
      pursuant to Section
      8(a)
      above,
      each third party shall, in the reasonable judgment of the Initial Purchaser,
      be
      a Qualified Institutional Buyer.

     

    (d) Rule
      144A Reliance and Restrictions on Transfer.
      The
      Offering Memorandum shall make prospective offerees aware of the reliance by
      the
      offeror and/or seller on the exemption provided by Rule 144A and shall provide
      that investors that acquire any Shares shall be deemed to have agreed that
      such
      Shares may only be resold or otherwise transferred if such Shares are registered
      for sale under the Securities Act, or pursuant to an available exemption from
      the registration requirements of the Securities Act (including Rule 144A),
      or in
      a transaction not otherwise subject to the Securities Act.

     

    (e) No
      Liability of Initial Purchaser Following the Sale of the Shares.
      Following the sale of the Shares by the Initial Purchaser to Subsequent
      Purchasers pursuant to the terms of this Agreement, the Initial Purchaser shall
      not be liable or responsible to the Company for any losses, damages or
      liabilities suffered or incurred by the Company including any losses, damages
      or
      liabilities under the Securities Act, arising from or relating to any subsequent
      resale or transfer of any Shares other than by the Initial
      Purchaser.

     

     

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

     

    Section
      9. Indemnification
      and Contribution.

     

    The
      Company and the Operating Partnership, jointly and severally, agree to indemnify
      and hold harmless the Initial Purchaser, its officers and directors, and each
      person, if any, who controls the Initial Purchaser within the meaning or either
      Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
      against any and all losses, claims, damages and liabilities (including without
      limitation the legal fees and other expenses incurred in connection with any
      suit, action or proceeding or any claim asserted) caused by any untrue statement
      or alleged untrue statement of a material fact contained in any Offering
      Memorandum (as amended or supplemented if the Company or the Operating
      Partnership shall have furnished any amendments or supplements thereto), or
      caused by any omission or alleged omission to state therein a material fact
      required to be stated therein or necessary to make the statements therein,
      in
      light of the circumstances under which they were made, not misleading except
      insofar as such losses, claims, damages or liabilities are caused by any untrue
      statement or omission or alleged untrue statement or omission made in reliance
      upon and in conformity with information relating to the Initial Purchaser
      furnished to the Company or the Operating Partnership in writing by the Initial
      Purchaser expressly for use therein. The foregoing indemnity agreement shall
      be
      in addition to any liability which the Company and the Operating Partnership
      may
      otherwise have.

     

    The
      Initial Purchaser agrees to indemnify and hold harmless the Company and the
      Operating Partnership, and the Company’s and the Operating Partnership’s
      officers and directors and each person who controls the Company or the Operating
      Partnership within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act, to the same extent as the foregoing indemnity from
      the
      Company and the Operating Partnership to the Initial Purchaser, but only with
      reference to information relating to the Initial Purchaser furnished to the
      Company and the Operating Partnership in writing by the Initial Purchaser
      expressly for use in the Offering Memorandum or any amendment or supplement
      thereto. Notwithstanding the preceding, in no case shall the Initial Purchaser
      be liable or responsible for any amount in excess of the fee specified in
Section
      1(d)
      received
      by such Initial Purchaser in connection with the purchase of the Shares pursuant
      to this Agreement.

     

    If
      any
      suit, action, proceeding (including any governmental or regulatory
      investigation), claim or demand shall be brought or asserted against any person
      in respect of which indemnity may be sought pursuant to either of the two
      preceding paragraphs, such person (the “Indemnifying
      Person”)
      shall
      promptly notify the person against whom such indemnity may be sought (the
“Indemnified
      Person”)
      in
      writing, and the Indemnifying Person, upon request of the Indemnified Person,
      shall retain counsel reasonably satisfactory to the Indemnified Person to
      represent the Indemnified Person and any others the Indemnifying Person may
      designate in such proceeding and shall pay the fees and expenses of such counsel
      related to such proceeding. In any such proceeding, any Indemnified Person
      shall
      have the right to retain its own counsel, but the fees and expenses of such
      counsel shall be at the expense of such Indemnified Person unless (i) the
      Indemnifying Person and the Indemnified Person shall have mutually agreed to
      the
      contrary, (ii) the Indemnifying Person has failed within a reasonable time
      to
      retain counsel reasonably satisfactory to the Indemnified Person or (iii) the
      named parties in any such 

     

     

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

     

    proceeding
      (including any impleaded parties) include both the Indemnifying Person and
      the
      Indemnified Person and representation of both parties by the same counsel would
      be inappropriate due to actual or potential differing interests between them.
      It
      is understood that the Indemnifying Person shall not, in connection with any
      proceeding or related proceeding in the same jurisdiction, be liable for the
      fees and expenses of more than one separate firm (in addition to any local
      counsel) for all Indemnified Persons, and that all such fees and expenses shall
      be reimbursed as they are incurred. Any such separate firm for the Initial
      Purchaser and such control persons of Initial Purchaser shall be designated
      in
      writing by Wachovia Capital Markets, LLC and any such separate firm for the
      Company, the Operating Partnership, their directors, their officers and such
      control persons of the Company and the Operating Partnership or authorized
      representatives shall be designated in writing by the Company or the Operating
      Partnership. The Indemnifying Person shall not be liable for any settlement
      of
      any proceeding effected without its written consent, but if settled with such
      consent or if there be a final judgment for the plaintiff, the Indemnifying
      Person agrees to indemnify any Indemnified Person from and against any loss
      or
      liability by reason of such settlement or judgment. Notwithstanding the
      foregoing sentence, if at any time an Indemnified Person shall have requested
      an
      Indemnifying Person to reimburse the Indemnified Person for fees and expenses
      of
      counsel as contemplated by the third sentence of this paragraph, the
      Indemnifying Person agrees that it shall be liable for any settlement of any
      proceeding effected without its written consent if (i) such settlement is
      entered into more than 30 days after receipt by such Indemnifying Person of
      the
      aforesaid request and (ii) such Indemnifying Person shall not have
      reimbursed the Indemnified Person in accordance with such request prior to
      the
      date of such settlement. If it is ultimately determined that an Indemnified
      Person was not entitled to indemnification hereunder, such Indemnified Person
      shall be responsible for repaying or reimbursing the Indemnifying Person for
      any
      amounts so paid or incurred by such Indemnifying Person pursuant to this
      paragraph. No Indemnifying Person shall, without the prior written consent
      of
      the Indemnified Person, effect any settlement of any pending or threatened
      proceeding in respect of which any Indemnified Person is or could have been
      a
      party and indemnity could have been sought hereunder by such Indemnified Person,
      unless such settlement (i) includes an unconditional release of such Indemnified
      Person from all liability on claims that are the subject matter of such
      proceeding and (ii) does not include a statement as to, or an admission of,
      fault, culpability or a failure to act by or on behalf of an Indemnified Person.
      In no event shall any Indemnifying Person have any liability or responsibility
      in respect of the settlement or compromise of, or consent to the entry of any
      judgment with respect to any pending or threatened action or claim effected
      without its prior written consent.

     

    If
      the
      indemnification provided for in the first and second paragraphs of this
Section
      9
      is
      unavailable or insufficient to hold harmless an Indemnified Person in respect
      of
      any losses, claims, damages or liabilities referred to therein, then each
      Indemnifying Person under such paragraph, in lieu of indemnifying such
      Indemnified Person thereunder, shall contribute to the amount paid or payable
      by
      such Indemnified Person as a result of such losses, claims, damages or
      liabilities (a) in such proportion as is appropriate to reflect the relative
      benefits received by the Company and the Operating Partnership on the one hand
      and the Initial Purchaser on the other hand from the offering of the Shares
      or
      (b) if the allocation provided by clause (a) above is not permitted by
      applicable law, in such proportion as is appropriate to reflect not only the
      relative benefits referred to in clause (a) above but also the relative fault
      of
      the Company and the Operating Partnership on the one hand and the Initial
      Purchaser on the other in connection with 

     

     

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

     

    the
      statements or omissions that resulted in such losses, claims, damages or
      liabilities, as well as any other relevant equitable considerations. The
      relative benefits received by the Company and the Operating Partnership on
      the
      one hand and the Initial Purchaser on the other shall be deemed to be in the
      same respective proportions as the net proceeds from the offering of such Shares
      (before deducting expenses other than fees payable pursuant to Section
      1(d)
      herein)
      received by the Company and the Operating Partnership and the total underwriting
      discounts and the commissions received by the Initial Purchaser bear to the
      aggregate public offering price of the Shares. The relative fault of the Company
      and the Operating Partnership on the one hand and the Initial Purchaser on
      the
      other shall be determined by reference to, among other things, whether the
      untrue or alleged untrue statement of a material fact or the omission or alleged
      omission to state a material fact relates to information supplied by the Company
      and the Operating Partnership on the one hand or by the Initial Purchaser on
      the
      other and the parties’ relative intent, knowledge, access to information and
      opportunity to correct or prevent such statement or omission.

     

    
      The
        Company, the Operating Partnership and the Initial Purchaser agree that it
        would
        not be just and equitable if contribution pursuant to this Section
        9
        were
        determined by pro rata allocation or by any other method of allocation that
        does
        not take account of the equitable considerations referred to in the immediately
        preceding paragraph. The amount paid or payable by an Indemnified Person
        as a
        result of the losses, claims, damages and liabilities referred to in the
        immediately preceding paragraph shall be deemed to include, subject to the
        limitations set forth above, any legal or other expenses incurred by such
        Indemnified Person in connection with investigating or defending any such
        action
        or claim. Notwithstanding the provisions of this Section
        9,
        in no
        event shall the Initial Purchaser be required to contribute any amount in
        excess
        of the fee, specified in Section
        1(d),
        received by the Initial Purchaser in connection with the purchase of the
        Shares
        pursuant to this Agreement. No person guilty of fraudulent misrepresentation
        (within the meaning of Section 11(f) of the Securities Act) shall be entitled
        to
        contribution from any person who was not guilty of such fraudulent
        misrepresentation.

       

    

    
      The
        remedies provided for in this Section
        9
        are not
        exclusive and shall not limit any rights or remedies which may otherwise
        be
        available to any indemnified party at law or in equity.

    

     

    The
      indemnity and contribution agreements contained in this Section
      9
      and the
      representations, warranties and covenants of the Company, the Operating
      Partnership and the Initial Purchaser set forth in this Agreement shall remain
      operative and in full force and effect regardless of (a) any termination of
      this
      Agreement, (b) any investigation made by or on behalf of the Initial Purchaser
      or any person controlling the Initial Purchaser or by or on behalf of the
      Company, its officers or directors or any other person controlling the Company
      or the Operating Partnership and (c) acceptance of and payment for any of the
      Shares.

     

     

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

     

    Section
      10. Representations
      and Agreements to Survive Delivery. The agreements set forth in Section
      6,
      Section
      7,
      Section
      8
      and
Section
      9
      shall
      remain operative and in full force and effect, regardless of any investigation
      made by or on behalf of the Initial Purchasers or any controlling person of
      the
      Initial Purchaser, or by or on behalf of the Company or of any of its
      Subsidiaries, and shall survive delivery of and payment for the
      Shares.

     

    Section
      11. Notices.
      All notices or communications hereunder shall be in writing and shall be mailed,
      delivered or telecopied and confirmed (including confirmation by email if so
      indicated):

     

    (a) if
      to the
      Company, to:

     

    First
      Industrial Realty Trust, Inc.

    311
      South
      Wacker Drive

    Suite
      4000

    Chicago,
      Illinois 60606

    Attention:
      John H. Clayton, Esq.

    Telecopy:
      (313) 922-6320

    E-mail:
      jclayton@firstindustrial.com

    

    with
      a
      copy to:

    

    Cahill
      Gordon & Reindel llp

    80
      Pine
      Street

    New
      York,
      New York 10005

    Attention:
      Gerald Tanenbaum, Esq.

    Telecopy:
      (212) 269-5420

    E-mail:
      gtanenbaum@cahill.com

    

    (b) and
      if to
      the Initial Purchaser to:

     

    Wachovia
      Investment Holdings, LLC

    301
      South
      College Street, DC-7

    One
      Wachovia Center

    Charlotte,
      North Carolina 28288

    Attention:
      Ms. Teresa Hee

    Telecopy:
      (704) 383-9165

    E-Mail:
      teresa.hee@wachovia.com

    

    with
      a
      copy to:

    

    Hunton
      & Williams LLP

    Riverfront
      Plaza, East Tower

    951
      East
      Byrd Street

    Richmond,
      Virginia 23219-4074

    Attention:
      Randall S. Parks, Esq.

    Telecopy:
      (804) 788-8218

    E-Mail:
      rparks@hunton.com

     

     

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

    
 

    Any
      party
      to this Agreement may change such address for notices by sending to the other
      parties to this Agreement written notice of a new address for such
      purpose.

     

    Section
      12. Parties.
      This Agreement shall inure to the benefit of and be binding upon the Initial
      Purchaser, the Company and the Operating Partnership and their respective
      successors. Nothing expressed or mentioned in this Agreement is intended, or
      shall be construed, to give any person, firm or corporation, other than the
      parties hereto and their respective successors and the controlling persons
      and
      officers, trustees and directors referred to in Section
      4(h)
      and
Section
      9
      hereof
      and their heirs and legal representatives, any legal or equitable right, remedy
      or claim under or in respect of this Agreement or any provision herein
      contained. This Agreement and all conditions and provisions hereof are intended
      to be for the sole and exclusive benefit of the parties hereto and respective
      successors and said controlling persons and officers, trustees and directors
      and
      their heirs and legal representatives, and for the benefit of no other person,
      firm or corporation. No purchaser of Shares shall be deemed to be a successor
      by
      reason merely of such purchase.

     

    Section
      13. Governing
      Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
      THE
      LAWS OF THE STATE OF NEW YORK.

     

    Section
      14. Counterparts.
      This Agreement may be executed in one or more counterparts, signature pages
      may
      be detached from such separately executed counterparts and reattached to other
      counterparts and, in each such case, the executed counterparts hereof shall
      constitute a single instrument. Signature pages may be delivered by
      telecopy.

     

    Section
      15. Enforceability.
      In case any provision of this Agreement shall be invalid, illegal or
      unenforceable, the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    Section
      16. Waiver
      of
      Rights to Trial by Jury. The Company and the Initial Purchaser each hereby
      irrevocably waive any right they may have to a trial by jury in respect of
      any
      claim based upon or arising out of this Agreement or the transactions
      contemplated hereby.

     

    Section
      17. Amendments
      and Modifications. This Agreement may not be amended or otherwise modified
      or
      any provision hereof waived except by an instrument in writing signed by the
      Initial Purchaser, the Company and the Operating Partnership.

     

    [SIGNATURE
      PAGE FOLLOWS.]

     

    
      
        
        

      

      
        -40-

        
          

        

      

      
        
        

      

    

    

     

    If
      the
      foregoing correctly sets forth the understanding between the Company, the
      Initial Purchaser and the Operating Partnership, please so indicate in the
      space
      provided below for that purpose, whereupon this letter shall constitute a
      binding agreement between the Initial Purchaser, the Company and the Operating
      Partnership.

     

    FIRST
      INDUSTRIAL REALTY TRUST, INC.

    

    

    By: /s/Michael
      J. Havala    

    Name:
      Michael J. Havala

    Title:
      CFO

     

    

    FIRST
      INDUSTRIAL L.P.

    

    

    By: First
      Industrial Realty Trust, Inc.,

    as
      its
      sole general partner

    

    

    By: /s/Michael
      J. Havala___________________

    Name:
      Michael J. Havala

    Title:
      CFO

    

    ACCEPTED
      as of the date first written above:

    

    WACHOVIA
      INVESTMENT HOLDINGS, LLC

    

    

    By: /s/
      Cathy A. Casey_____________________

    Name: Cathy
      A.
      Casey

    Title: Director

    

    

    

    
      
        
        

      

      
        -41-

        
          

        

      

      
        
        

      

    

    

    Schedule
      2(B)(g)

    

    Jurisdictions
      of Foreign Qualification of the Company and the Operating
      Partnership

    

    
      	
              ENTITY:

               

            	
              JURISDICTION

               

            
	
              First
                Industrial Realty Trust, Inc.,

              a
                Maryland corporation

               

            	
              California

              Florida

              Georgia

              Illinois

              Indiana

              Michigan

              Minnesota

              New
                Jersey

              New
                York

              North
                Carolina

              Ohio

              Oregon

              Utah

               

            
	
              First
                Industrial, L.P., a Delaware

              limited
                partnership

               

            	
              Arizona

              California

              Colorado

              Connecticut

              Florida

              Georgia

              Illinois

              Indiana

              Iowa

              Kansas

              Kentucky

              Louisiana

              Maryland

              Michigan

              Minnesota

              Missouri

              New
                Jersey

              New
                York

              North
                Carolina

              Ohio

              Oregon

              Pennsylvania

              Tennessee

              Texas

              Utah

              Virginia

              Wisconsin

               

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      2(B)(h)

    

    Jurisdictions
      of Foreign Qualification of the Subsidiaries

    

    
      	
              ENTITY

               

            	
              JURISDICTION

               

            
	
              First
                Industrial Financing Partnership, L.P.

              a
                Delaware limited partnership

               

            	
              Georgia

              Illinois

              Iowa

              Kansas

              Maryland

              Michigan
                

              Minnesota

              Missouri

              New
                Hampshire

              New
                Jersey

              Pennsylvania

              Tennessee

              Texas

              Wisconsin

               

            
	
              First
                Industrial Acquisitions, Inc., a Maryland corporation

               

            	
              Arizona

              California

              Georgia

              Illinois

              Indiana

              Michigan

              Minnesota

              Missouri

              Ohio

              Pennsylvania

              Tennessee

              Wisconsin

            
	
              First
                Industrial Pennsylvania Corporation,

              a
                Maryland corporation

               

            	
              Pennsylvania

               

            
	
              First
                Industrial Pennsylvania, L.P., a Delaware limited partnership

               

            	
              Colorado

              Indiana

              Pennsylvania

               

            
	
              First
                Industrial Harrisburg Corporation, a Maryland corporation

               

            	
              California

              New
                Jersey

              Pennsylvania

               

            

    

    
      
        -2-

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              First
                Industrial Harrisburg, L.P., a Delaware limited partnership

               

            	
              Pennsylvania

               

            
	
              First
                Industrial Securities Corporation, a Maryland corporation

               

            	
              Illinois

              Michigan

               

            
	
              First
                Industrial Securities, L.P., a Delaware limited partnership

               

            	
              Illinois

              Michigan

              Minnesota

              Pennsylvania

               

            
	
              First
                Industrial Mortgage Corporation, a Maryland corporation

               

            	
              Illinois

              Michigan

            
	
              First
                Industrial Mortgage Partnership, L.P., a Delaware limited
                partnership

               

            	
              Georgia

              Illinois

              Michigan

              Minnesota

              Missouri

              Tennessee

               

            
	
              First
                Industrial Indianapolis Corporation, a Maryland corporation

               

            	
              Indiana

               

            
	
              First
                Industrial Indianapolis, L.P., a Delaware limited partnership

               

            	
              Indiana

               

            
	
              FI
                Development Services Corporation, a Maryland corporation

               

            	
              Florida

              Illinois

              Wisconsin

            
	
              First
                Industrial Finance Corporation, a Maryland corporation

               

            	
              Georgia

              Illinois

              Michigan

              Wisconsin

               

            
	
              First
                Industrial Development Services, Inc., a Maryland corporation

               

            	
              Arizona

              Arkansas

              California

              Colorado

              Florida

              Georgia

              Illinois

              Indiana

              Iowa

              Louisiana

              Michigan

              Minnesota

              Missouri

              Nevada

              New
                Jersey

              New
                York

              North
                Carolina

              Ohio

              Pennsylvania

              Tennessee

              Texas

              Utah

              Virginia

              Washington

              Wisconsin

            

    

    

    

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

     

    Form
      of Articles Supplementary

     

     

    Series I
      Flexible Cumulative Redeemable Preferred Stock

    (Liquidation
      Preference $250,000.00 per Share)

     

    ARTICLES
      SUPPLEMENTARY

     

    FIRST
      INDUSTRIAL REALTY TRUST, INC.

     

    ____________________________

     

    Articles
      Supplementary of Board of Directors Classifying

    and
      Designating a Series of Preferred Stock as

    Series I
      Flexible Cumulative Redeemable Preferred Stock

    and
      Fixing Distribution and

    Other
      Preferences and Rights of Such Series

     

    ____________________________

     

    Dated
      as
      of November 7, 2005

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FIRST
      INDUSTRIAL REALTY TRUST, INC.

     

    __________

     

    Articles
      Supplementary of Board of Directors Classifying

    and
      Designating a Series of Preferred Stock as

     

    Series I
      Flexible Cumulative Redeemable Preferred Stock

    and
      Fixing Distribution and

    Other
      Preferences and Rights of Such Series

     

    __________

     

    First
      Industrial Realty Trust, Inc., a Maryland corporation, having its principal
      office in the State of Maryland in the City of Baltimore (the “Company”),
      hereby certifies to the State Department of Assessments and Taxation of Maryland
      that:

     

    Pursuant
      to authority conferred upon the Board of Directors by the Charter and Bylaws
      of
      the Company, the Board of Directors on December 3, 1996, December 4,
      1997, December 3, 1998, May 12, 2004 and July 28, 2004 adopted
      resolutions appointing certain members of the Board of Directors to a committee
      (the “Special
      Committee”)
      with
      power to cause the Company to issue, among other things, certain series of
      Preferred Stock and to determine the number of shares which shall constitute
      such series and the terms of such series. The Special Committee, pursuant to
      a
      unanimous written consent dated November 4, 2005, (i) authorized the
      creation and issuance of 1,000 shares of Series I Flexible Cumulative
      Redeemable Preferred Stock, which stock was previously authorized but not
      issued, and (ii) determined the preferences, conversion and other rights,
      voting powers, restrictions, limitations as to dividends, qualifications, and
      terms and conditions of redemption of the shares of such series and the Dividend
      Rate on such series. Such preferences, conversion and other rights, voting
      powers, restrictions, limitations as to dividends, qualifications, and terms
      and
      conditions of redemption, number of shares and Dividend Rate, as determined
      by
      such duly authorized committee, as applicable, are as follows:

     

    Section
      1. Number
      of Shares and Designation.
      This
      class of Preferred Stock shall be designated Series I Flexible Cumulative
      Redeemable Preferred Stock (the “Series I
      Preferred Shares”)
      and
      the number of shares which shall constitute such series shall be 1,000 shares,
      par value $0.01 per share, which number may be decreased (but not below the
      number thereof then outstanding) from time to time by the Board of
      Directors.

     

    Section
      2. Definitions.
      For
      purposes of these Articles Supplementary, the following terms shall have the
      meanings indicated:

     

    “Applicable
      Redemption Premium”
      shall
      mean, with respect to any Redemption Date:

     

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    (a) if
      the
      Redemption Date is on or before March 8, 2006, 97.15%;

     

    (b) if
      the
      Redemption Date is on or after March 9, 2006, and on or before May 7, 2006,
      97.85%;

     

    (c) if
      the
      Redemption Date is on or after May 8, 2006, and on or before November 7, 2006;
      98.85%; and

     

    (d) if
      the
      Redemption Date is on or after November 8, 2006, 100.00%.

     

    “Applicable
      Spread”
      shall
      mean, (i) in the event of a Downgrade, 2.25% for such period as the
      Downgrade continues, (ii) in the event of a Double Downgrade, 3.25%
      for
      such period as the Double Downgrade continues and (iii) otherwise,
      1.25%.

     

    “Bloomberg”
      means
      Bloomberg Financial Markets Commodities News.

     

    “Board
      of Directors”
      shall
      mean the Board of Directors of the Company or any committee duly and validly
      authorized by such Board of Directors to perform any of its responsibilities
      with respect to the applicable matter.

     

    “Business
      Day”
      shall
      mean any day (other than a Saturday, Sunday or legal holiday) on which banking
      institutions in The City of New York are open for business and, when used in
      the
      definition of One-Month LIBOR, which is also a day on which dealings in deposits
      in U.S. dollars are transacted in the London interbank market.

     

    “Change
      of Control Event”
      shall
      mean the occurrence of any one of the following events:

     

    (a)
      any
      "person", as such term is used in Sections 13(d) and 14(d) of the Securities
      Exchange Act of 1934, as amended (the “Act”) (other than the Company, any of its
      subsidiaries, any trustee, fiduciary or other person or entity holding
      securities under any employee benefit plan of the Company or any of its
      subsidiaries, or any underwriter or other person if the Board of Directors
      has
      determined that such underwriter or other person will make a timely distribution
      or resale of such securities to or among other holders), together with all
      "affiliates" and "associates" (as such terms are defined in Rule 12b-2 under
      the
      Act) of such person, shall become the "beneficial owner" (as such term is
      defined in Rule 13d-3 under the Act), directly or indirectly, of securities
      of
      the Company representing 40% or more of either (A) the combined voting power
      of
      the Company's then outstanding securities having the right to vote in an
      election of the Company's Board of Directors or (B) the then outstanding shares
      of Common Stock of the Company (in either such case other than as a result
      of
      acquisition of securities directly from the Company); or

    

    (b)
      persons who, as of the first Issue Date, constitute the Company's Board of
      Directors (the "Incumbent Directors") cease for any reason, including without
      limitation, as a result of a tender offer, proxy contest, merger or similar
      transaction, to constitute at least a majority of the Board of Directors,
      provided that any person becoming a director of the Company subsequent to the
      first Issue Date whose election or nomination for election was approved by
      a
      vote of at least a majority of the Incumbent Directors shall, for purposes
      hereof, be considered an Incumbent Director; or

     

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

    
 

    (c)
      the
      stockholders of the Company shall approve (A) any consolidation or merger of
      the
      Company where the stockholders of the Company, immediately prior to the
      consolidation or merger, would not, immediately after the consolidation or
      merger, beneficially own (as such term is defined in Rule 13d-3 under the Act),
      directly or indirectly, shares representing in the aggregate 50% or more of
      the
      voting stock of the corporation issuing cash or securities in the consolidation
      or merger (or of its ultimate parent corporation, if any), (B) any sale, lease,
      exchange or other transfer (in one transaction or a series of transactions
      contemplated or arranged by any party as a single plan) of all or substantially
      all of the assets of the Company or (C) any plan or proposal for the liquidation
      or dissolution of the Company.

    

    “Common
      Stock”
      shall
      mean the Common Stock, par value $0.01 per share, of the Company.

     

    “Dividend
      Default”
      shall
      have the meaning set forth in Section 7(1) hereof.

     

    “Dividend
      Payment Date”
      shall
      have the meaning set forth in Section 3(1) hereof.

     

    “Dividend
      Period”
      shall
      have the meaning set forth in Section 3(1) hereof. 

     

    “Dividend
      Rate”
      shall
      mean, with respect to any specified day in any Dividend Period, a floating
      rate,
      expressed as a percentage of the Liquidation Preference per annum, determined
      by
      the Dividend Rate Calculation Agent at the request of the Company and provided
      to the Company, as follows:

     

    (a) from
      November 8, 2005 through and including March 8, 2006, a rate equal to the sum
      of
      (i) the applicable One-Month LIBOR for such day, plus
      (ii) the Applicable Spread; and

     

    (b) from
      March 9, 2006 through and including May 8, 2006, a rate equal to the sum of
      (i) the applicable One-Month LIBOR for such day, plus
      (ii) the Applicable Spread plus
      (iii)
      0.5%; and

     

    (c) from
      May
      9, 2006 through and including November 8, 2006, a rate equal to the sum of
      (i) the applicable One-Month LIBOR for such day, plus
      (ii) the Applicable Spread plus
      (iii)
      1.25%; and

     

    (d) from
      and
      after November 9, 2006, a rate equal to the sum of (i) the applicable
      One-Month LIBOR for such day, plus
      (ii) the product of (y) the Applicable Spread minus
      0.75%,
multiplied
      by
      (z) the
      number of whole calendar months elapsed between the applicable Issue Date and
      the first day of the calendar month in which such specified day
      occurs;

     

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    provided,
      however,
      that,
      unless a Change of Control Event has occurred, the Dividend Rate shall not,
      in
      any case, exceed 20.0%. Anything to the contrary herein notwithstanding, upon
      the occurrence of a Change of Control Event, the Dividend Rate shall be equal
      to
      22.0%.

     

    “Dividend
      Rate Calculation Agent”
      shall
      mean such financial institution (and any legal successor thereto) from time
      to
      time as shall be selected by the Company, provided
      such
      selection is approved by the vote or written consent of the holders of at least
      two-thirds of the outstanding shares of the Series I Preferred Shares,
      and
      shall initially mean Wachovia Investment Holdings, LLC.

     

    “Double
      Downgrade”
      shall
      mean if, at any time, any two of Moody’s, S&P or Fitch rates (i) the
      long-term senior unsecured debt of the Company, or (ii) the Series C
      Preferred Shares, Series F Preferred Shares or Series G Preferred Shares, below
      Baa3, BBB- or BBB-, respectively.

     

    “Downgrade”
      shall
      mean if, at any time, any of Moody’s, S&P or Fitch rates (i) the long-term
      senior unsecured debt of the Company, or (ii) the Series C Preferred
      Shares, Series F Preferred Shares or Series G Preferred Shares, below Baa3,
      BBB-
      or BBB-, respectively.

     

    “Excess
      Stock”
      shall
      have the meaning set forth in Article IX of the Charter.

     

    “Fitch”
      shall
      mean Fitch Ratings Ltd.

     

    “Issue
      Date”
      shall
      mean, with respect to any Series I Preferred Shares, the date on which such
      Series I Preferred Shares are issued.

     

    “Junior
      Shares”
      shall
      mean all classes or series of Common Stock and all equity securities issued
      by
      the Company ranking junior to the Series I Preferred Shares as to the
      payment of dividends or as to the distribution of assets upon liquidation,
      dissolution or winding up of the Company, as applicable.

     

    “Liquidation
      Preference”
      shall
      have the meaning set forth in Section 4(1) hereof.

     

    “Moody’s”
      shall
      mean Moody’s Investors Service, Inc. 

     

    “One-Month
      LIBOR”
      means,
      with respect to any Dividend Period or any day included in such Dividend Period,
      the rate per annum appearing as the London Interbank Offered Rate for deposits
      in U.S. dollars having a term of one month, as published on the Business Day
      that is two Business Days preceding the first day of the applicable Dividend
      Period on the interest rate page most nearly corresponding to Telerate Page
      3750
      (or such other page as may replace such page for the purpose of displaying
      comparable rates) at approximately 11:00 a.m. London time on the relevant date.
      If such rate does not appear on the Bloomberg interest rate page most nearly
      corresponding to Telerate Page 3750 (or such other page as may replace such
      page
      for the purpose of displaying comparable rates) on the relevant date, the
      One-Month LIBOR Rate will be the arithmetic mean of the rates quoted by three
      major banks in New York City selected by the Dividend Rate Calculation Agent,
      at
      approximately 11:00 a.m., New York City time, on the relevant date for loans
      in
      U.S. Dollars to leading European banks for a period of one month. The
      Company shall promptly (or shall cause its Dividend Rate Calculation Agent
      promptly to) notify any holder of the Series I Preferred Shares of the
      Dividend Rate for any Dividend Period upon request.

     

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

    “Parity
      Shares”
      shall
      mean the Series C Preferred Shares, Series F Preferred Shares,
      Series G Preferred Shares and any other series of preferred stock issued
      by
      the Company ranking on a parity with the Series I Preferred Shares as
      to
      the payment of dividends or as to distribution of assets upon liquidation,
      dissolution or winding up of the Company, as applicable, whether or not the
      dividend rates, dividend payment dates or redemption or liquidation prices
      per
      share thereof are different from those of the Series I Preferred
      Shares.

     

    “Redemption
      Date”
      shall
      have the meaning set forth in Section 5(2) hereof.

     

    “Redemption
      Price”
      shall
      have the meaning set forth in Section 5(1) hereof. 

     

    “Series C
      Preferred Shares”
      shall
      mean the 8 5/8% Series C Cumulative Preferred Stock of the
      Company.

     

    “Series F
      Preferred Shares”
      shall
      mean the Series F Flexible Cumulative Redeemable Preferred Stock of
      the
      Company.

     

    “Series G
      Preferred Shares”
      shall
      mean the Series G Flexible Cumulative Redeemable Preferred Stock of
      the
      Company.

     

    “Series I
      Preferred Shares”
      shall
      have the meaning set forth in Section 1 hereof.

     

    “S&P”
      shall
      mean Standard & Poor’s, a division of The McGraw-Hill Companies,
      Inc.

     

    “Telerate
      Page 3750”
      means
      the display designated on page 3750 on MoneyLine Telerate (or such other page
      as
      may replace the 3750 page on the service or such other service as may be
      nominated by the British Bankers’ Association for the purpose of displaying
      London interbank offered rates for U.S. Dollars deposits).

     

    Section
      3. Dividend
      Rights.
      (1)
      Dividends shall be payable in cash on the Series I Preferred Shares
      when,
      as and if declared by the Board of Directors, out of assets legally available
      therefor: (i) for the period (the “Initial
      Dividend Period”)
      from
      the applicable Issue Date to but excluding January 1, 2006, and (ii) for
      each monthly dividend period thereafter (the Initial Dividend Period and each
      monthly dividend period being hereinafter individually referred to as a
“Dividend
      Period”
      and
      collectively referred to as “Dividend
      Periods”),
      which
      monthly Dividend Periods shall commence on the first day of each calendar month
      and shall end on and include the last day of the calendar month. Dividends
      payable on each Dividend Payment Date (as defined below) with respect to each
      share of Series I Preferred Stock shall be equal to the sum of the daily
      amounts for each day actually elapsed during a Dividend Period, which daily
      amounts shall be computed by dividing (x) the product of (A) the
      Dividend Rate in effect for each such day during such Dividend Period
multiplied
      by
      (B) the Liquidation Preference, by (y) 360. Dividends on each
      Series I Preferred Share shall be cumulative from the applicable Issue
      Date
      and shall accrue whether or not such dividends shall be declared, whether or
      not
      there shall be assets of the Company legally available for the payment of such
      dividends, whether or 

     

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

     

    not
      the
      terms and provisions of any agreement of the Company, including any agreement
      relating to its indebtedness, prohibits such declaration or payment or provides
      that such authorization or payment would constitute a breach thereof or a
      default thereunder, and whether or not such declaration or payment shall be
      restricted or prohibited by law. Such dividends shall be payable in arrears,
      without interest thereon, when, as and if declared by the Board of Directors,
      on
      the last day of each Dividend Period, commencing on December 31, 2005 (each,
      a
“Dividend
      Payment Date”);
      provided,
      however,
      that if
      any such day shall not be a Business Day, then the Dividend Payment Date shall
      be the next succeeding day which is a Business Day. Each such dividend shall
      be
      paid to the holders of record of Series I Preferred Shares as they appear
      on the stock register of the Company on such record date, not more than 45
      days
      nor less than 15 days preceding the applicable Dividend Payment Date, as shall
      be fixed by the Board of Directors. Dividends on account of arrears for any
      past
      Dividend Periods may be declared and paid at any time, without reference to
      any
      regular Dividend Payment Date, to holders of record on such date, not more
      than
      45 days nor less than 15 days preceding the applicable Dividend Payment Date,
      as
      may be fixed by the Board of Directors. After an amount equal to full cumulative
      dividends on the Series I Preferred Shares, including for the then current
      Dividend Period, has been paid to holders of record of Series I Preferred
      Shares entitled to receive dividends as set forth above by the Company, or
      such
      dividends have been declared and funds therefor set aside for payment, the
      holders of Series I Preferred Shares will not be entitled to any further
      dividends with respect to that Dividend Period. Any dividend payment made on
      the
      Series I Preferred Shares shall first be credited against the earliest
      accrued but unpaid dividends due with respect to such shares.

     

    (2) When
      dividends are not paid in full upon the Series I Preferred Shares and
      any
      Parity Shares, all dividends declared upon the Series I Preferred Shares
      and any such Parity Shares shall be declared pro
      rata so
      that
      the amount of dividends declared per share on the Series I Preferred
      Shares
      and any such Parity Shares shall in all cases bear to each other that same
      ratio
      that the accumulated dividends per share on the Series I Preferred Shares
      and any such Parity Shares bear to each other. Except as provided in the
      preceding sentence, unless an amount equal to full cumulative dividends on
      the
      Series I Preferred Shares has been paid to holders of record of
      Series I Preferred Shares entitled to receive dividends as set forth
      above
      by the Company for all past Dividend Periods, no dividends (other than in Junior
      Shares) shall be declared or paid or set aside for payment nor shall any other
      distribution be made upon any Junior Shares or Parity Shares. Unless an amount
      equal to full cumulative dividends on the Series I Preferred Shares
      has
      been paid to holders of record of Series I Preferred Shares entitled
      to
      receive dividends as set forth above by the Company for all past Dividend
      Periods, no Junior Shares or Parity Shares shall be redeemed, purchased, or
      otherwise acquired for any consideration (or any moneys be paid to or made
      available for a sinking fund for the redemption of any shares of any such stock)
      by the Company or any subsidiary of the Company, except by conversion into
      or
      exchange for Junior Shares.

     

    Section
      4. Liquidation.
      (1) In
      the event of any voluntary or involuntary liquidation, dissolution, or winding
      up of the Company, the holders of Series I Preferred Shares are entitled
      to
      receive out of the assets of the Company available for distribution to
      stockholders, before any distribution of assets is made to holders of Junior
      Shares upon liquidation, liquidating distributions in the amount of the stated
      value of $250,000.00 per share (the “Liquidation
      Preference”),
      plus
      all
      accumulated and unpaid dividends (whether or not earned or declared) for the
      then current and all past Dividend Periods. If, upon any voluntary or
      involuntary liquidation, 

     

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

     

    dissolution,
      or winding up of the Company, the amounts payable with respect to the
      Series I Preferred Shares and any Parity Shares are not paid in full,
      the
      holders of Series I Preferred Shares and of such other shares will share
      ratably in any such distribution of assets of the Company in proportion to
      the
      full respective preferential amounts to which they are entitled. After payment
      of the full amount of the liquidating distribution to which they are entitled,
      the holders of Series I Preferred Shares will not be entitled to any
      further participation in any distribution of assets by the Company.

     

    (2) Written
      notice of any such liquidation, dissolution or winding up of the Company,
      stating the payment date or dates when, and the place or places where, the
      amounts distributable in such circumstances shall be payable, shall be given
      by
      first class mail, postage prepaid, not less than 30 nor more than 60 days prior
      to the payment date stated therein, to each record holder of the Series I
      Preferred Shares at the respective addresses of such holders as the same shall
      appear on the stock transfer records of the Company.

     

    (3) For
      purposes of liquidation rights, a consolidation or merger of the Company with
      or
      into any other corporation or other entity or a sale of all or substantially
      all
      of the assets of the Company shall be deemed not to be a liquidation,
      dissolution or winding up of the Company. 

     

    Section
      5. Redemption.
      (1)  The Series I Preferred Shares are redeemable, out
      of assets
      legally available therefore, at the option of Company, by resolution of the
      Board of Directors, in whole or in part, at any time, at a cash redemption
      price
      equal to the sum of (x) the Liquidation Preference multiplied
      by
      the
      Applicable Redemption Premium plus
      (y)
      an
      amount equal to all accrued and unpaid dividends (whether or not earned or
      declared), if any, to the Redemption Date (the “Redemption
      Price”);
      provided,
      however,
      that
      any partial redemption will be for not less than 1,000,000 Series I Preferred
      Shares. 

     

    (2) Notice
      of
      redemption shall be mailed by the Company by first class mail, postage prepaid,
      to each record holder of the Series I Preferred Shares, not less than
      five
      nor more than 60 days prior to the redemption date (the “Redemption
      Date”),
      to
      the respective addresses of such holders as the same shall appear on the stock
      transfer records of the Company (except that if the sole record holder of the
      Series I Preferred Shares is Wachovia Investment Holdings, LLC, such
      notice
      may be given by telecopy to Wachovia Securities Debt Capital Markets at
      704-383-9165 (to the attention of Ms. Teresa Hee) with a copy to Hunton &
      Williams, LLP at
      804-788-8218 (to the attention of Randall S. Parks, Esq.)). Each notice shall
      state: (i) the Redemption Date; (ii) the Redemption Price; (iii) the
      place or places where certificates for such shares are to be surrendered for
      payment of the Redemption Price; and (iv) that dividends on the shares
      to
      be redeemed will cease to accumulate on such Redemption Date.

     

    (3) In
      order
      to facilitate the redemption of Series I Preferred Shares, the Board
      of
      Directors may fix a record date for the determination of the shares to be
      redeemed, such record date to be not less than five nor more than 60 days prior
      to the date fixed for such redemption.

     

     

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

     

    (4) Notice
      having been given as provided above, from and after the date fixed for the
      redemption of Series I Preferred Shares by the Company (unless the Company
      shall fail to make available the money necessary to effect such redemption),
      the
      holders of shares to be redeemed shall cease to be stockholders with respect
      to
      such shares and shall have no interest in or claim against the Company by virtue
      thereof and shall have no voting or other rights with respect to such shares,
      except the right to receive the moneys payable upon such redemption from the
      Company, less any required tax withholding amount, without interest thereon,
      upon surrender (and endorsement or assignment of transfer, if required by the
      Company and so stated in the notice) of their certificates, and the shares
      represented thereby shall no longer be deemed to be outstanding. The Company
      may, at its option, at any time after a notice of redemption has been given,
      deposit the Redemption Price for the Series I Preferred Shares designated
      for redemption and not yet redeemed, with the transfer agent or agents for
      the
      Series I Preferred Shares, as a trust fund for the benefit of the holders
      of the Series I Preferred Shares designated for redemption, together
      with
      irrevocable instructions and authority to such transfer agent or agents that
      such funds be delivered upon redemption of such shares and to pay, on and after
      the date fixed for redemption or prior thereto, the Redemption Price of the
      shares to their respective holders upon the surrender of their share
      certificates. From and after the making of such deposit, the holders of the
      shares designated for redemption shall cease to be stockholders with respect
      to
      such shares and shall have no interest in or claims against the Company by
      virtue thereof and shall have no voting or other rights with respect to such
      shares, except the right to receive from such trust fund the moneys payable
      upon
      such redemption, less any required tax withholding amount, without interest
      thereon, upon surrender (and endorsement, if required by the Company) of their
      certificates, and the shares represented thereby shall no longer be deemed
      to be
      outstanding. Any balance of such moneys remaining unclaimed at the end of the
      five-year period commencing on the date fixed for redemption shall, subject
      to
      the requirements of applicable law, be repaid to the Company upon its request
      expressed in a resolution of its Board of Directors.

     

    (5) Any
      Series I Preferred Shares that shall at any time have been redeemed
      shall,
      after such redemption, have the status of authorized but unissued preferred
      stock, without designation as to series until such shares are once more
      designated as part of a particular series by the Board of
      Directors.

     

    (6) The
      Series I Preferred Shares are subject to the provisions of Article IX
      of the Charter, including, without limitation, the provisions for the redemption
      of Excess Stock (as defined in such Article IX). Notwithstanding the
      provisions of Article IX of the Charter, Series I Preferred Shares
      which have been exchanged pursuant to such Article for Excess Stock may be
      redeemed, in whole or in part, and, if in part, pro
      rata
      from the
      holders of record of such shares in proportion to the number of such shares
      held
      by such holders (with adjustments to avoid redemption of fractional shares)
      or
      by lot in a manner determined by the Board of Directors, at any time when
      outstanding Series I Preferred Shares are being redeemed.

     

    Section
      6. Ranking.
      The
      Series I Preferred Shares shall, with respect to dividend rights and
      rights
      upon liquidation, dissolution or winding up of the Company, rank (a) senior
      to Junior Shares; (b) on a parity with all Parity Shares; and
      (c) junior to all equity securities issued by the Company, the terms
      of
      which specifically provide that such equity securities rank senior to the
      Series I Preferred Shares as to the payment of dividends or as to
      distribution of assets upon liquidation, dissolution or winding up of the
      Company.

     

     

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

    

     

    Section
      7. Voting
      Rights.
      The
      Series I Preferred Shares shall not have any voting powers either general
      or special, except as required by law and except that:

     

    (1) If
      and
      whenever full cumulative dividends on the Series I Preferred Shares,
      or any
      Parity Shares, for eighteen monthly dividend payment periods, whether or not
      consecutive, are in arrears and unpaid, (such failure to pay by the Company,
      a
“Dividend
      Default”),
      the
      holders of all outstanding Series I Preferred Shares and any Parity
      Shares,
      voting as a single class without regard to series, will be entitled to elect
      two
      Directors until all dividends in arrears and unpaid on the Series I
      Preferred Shares and any Parity Shares have been paid or declared and funds
      therefor set apart for payment. At any time when such right to elect Directors
      separately as a class shall have so vested, the Company may, and upon the
      written request of the holders of record of Series I Preferred Shares
      and
      Parity Shares of the Company representing not less than 20% of the aggregate
      liquidation preference of such shares then outstanding shall, call a special
      meeting of stockholders for the election of such Directors. In the case of
      such
      a written request, such special meeting shall be held within 90 days after
      the
      delivery of such request and, in either case, at the place and upon the notice
      provided by law and in the Bylaws of the Company; provided
      that the
      Company shall not be required to call such a special meeting if such request
      is
      received less than 120 days before the date fixed for the next ensuing Annual
      Meeting of Stockholders of the Company and the holders of all outstanding
      Series I Preferred Shares and Parity Shares are afforded the opportunity
      to
      elect such Directors (or fill any vacancy) at such Annual Meeting of
      Stockholders. Directors elected as aforesaid shall serve until the next Annual
      Meeting of Stockholders of the Company or until their respective successors
      shall be elected and qualified, or, if sooner, until an amount equal to all
      dividends in arrears and unpaid have been paid or declared and funds therefor
      set apart for payment. If, prior to the end of the term of any Director elected
      as aforesaid, a vacancy in the office of such Director shall occur during the
      continuance of a Dividend Default by reason of death, resignation, or
      disability, such vacancy shall be filled for the unexpired term by the
      appointment of a new Director for the unexpired term of such former Director,
      such appointment to be made by the remaining Director or Directors elected
      as
      aforesaid.

     

    (2) The
      affirmative vote or consent of the holders of at least two-thirds of the
      outstanding Series I Preferred Shares and any Parity Shares, voting
      as a
      single class without regard to series, will be required to issue, authorize
      or
      increase the authorized amount of any class or series of shares ranking prior
      to
      the Series I Preferred Shares or any Parity Shares as to dividends or
      upon
      liquidation or to issue or authorize any obligation or security convertible
      into
      or evidencing a right to purchase any such security. Subject to the preceding
      sentence, the affirmative vote or consent of the holders of at least two-thirds
      of the outstanding Series I Preferred Shares, voting separately as a
      class,
      will be required to amend or repeal any provision of, or add any provision
      to,
      the Charter if such action would materially and adversely alter or change the
      powers, preferences, privileges or rights of the Series I Preferred
      Shares.

     

     

    
      
        
        

      

      
        A-9

        
          

        

      

      
        
        

      

    

     

    (3) Nothing
      herein shall be taken to require a class vote or consent in connection with
      the
      authorization, designation, increase or issuance of shares of any class or
      series (including additional preferred stock of any series) that rank junior
      to
      or on a parity with the Series I Preferred Shares as to dividends and
      liquidation rights or in connection with the authorization, designation,
      increase or issuance of any bonds, mortgages, debentures or other debt
      obligations of the Company.

     

    (4) For
      purposes of the foregoing provisions of this Section 7, each Series I
      Preferred Share shall have one vote per share, except that when any other series
      of preferred shares shall have the right to vote with the Series I
      Preferred Shares as a single class on any matter, then the Series I
      Preferred Shares and such other series shall have with respect to such matters
      one vote per $25 of liquidation preference, and fractional votes shall be
      ignored.

     

    Section
      8. Conversion.
      The
      Series I Preferred Shares are not convertible into shares of any other
      class or series of the capital stock of the Company.

     

    Section
      9. Information
      Rights.
      During
      any period in which the Company is not subject to Section 13 or 15(d) of the
      Act
      and any of the Series I Preferred Shares are outstanding, the Company will
      (i)
      transmit by mail to all holders of the Series I Preferred Shares, as their
      names
      and addresses appear in the record books of the Company and without cost to
      such
      holders, copies of the annual reports and quarterly reports (“Reports”) that the
      Company would have been required to file with the SEC pursuant to Section 13
      or
      15(d) of the Act if the Company were subject to such Sections (other than any
      exhibits that would have been required), and (ii) promptly upon written request,
      supply copies of such Reports to any prospective holder of Series I Preferred
      Shares. The Company will mail the Reports to each holder of Series I Preferred
      Share(s) within fifteen (15) days after the respective dates by which it would
      have been required to file such Reports with the SEC if it were subject to
      Section 13 or 15(d) of the Act.

     

    Section
      10. Severability
      of Provisions.
      If any
      preference, right, voting power, restriction, limitation as to dividends or
      other distributions, qualification or term or condition of redemption of the
      Series I Preferred Shares set forth herein is invalid, unlawful or
      incapable of being enforced by reason of any rule of law or public policy,
      all
      other preferences, rights, voting powers, restrictions, limitations as to
      dividends or other distributions, qualifications or terms or conditions of
      redemption of the Series I Preferred Shares set forth herein which can
      be
      given effect without the invalid, unlawful or unenforceable provision thereof
      shall, nevertheless, remain in full force and effect, and no preferences,
      rights, voting powers, restrictions, limitations as to dividends or other
      distributions, qualifications or terms or conditions of redemption of the
      Series I Preferred Shares herein set forth shall be deemed dependent
      upon
      any other provision thereof unless so expressed therein.

     

    Section
      11. Effective
      Time.
      These
      Articles Supplementary will become effective at 12:01 a.m. on November 8, 2005.
      

     

    
      
        
        

      

      
        A-10

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused these Articles Supplementary to be
      signed in its name and on its behalf and attested to by the undersigned on
      this
      7th day of November, 2005 and the undersigned acknowledges under the penalties
      of perjury that these Articles Supplementary are the corporate act of said
      Company and that to the best of his knowledge, information and belief, the
      matters and facts set forth herein are true in all material
      respects.

     

    FIRST
      INDUSTRIAL REALTY TRUST, INC.

     

    By:  

    Name: 

    Title: 

     

    Attest:

     

    By:  

    Name:

    Title:

    

    

     

    
      
        
        

      

      
        A-11

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-1

     

    Form
      of Opinions of Cahill Gordon & Reindel llp

     

    

     

    [Date]

     

    Wachovia
      Investment Holdings, LLC

    301
      South
      College Street, DC-7

    One
      Wachovia Center

    Charlotte,
      North Carolina 28288

    

    Re: First
      Industrial Realty Trust, Inc.

    

    Ladies
      and Gentlemen:

    

    This
      opinion is being furnished to you pursuant to Section 7(B)(a) of the
      Purchase Agreement dated November 8, 2005 (the “Purchase
      Agreement”)
      by and
      among Wachovia Investment Holdings, LLC (the “Initial
      Purchaser”)
      and
      First Industrial Realty Trust, Inc. (the “Company”)
      and
      First Industrial, L.P. (the “Operating
      Partnership”)
      relating to the issuance and sale to the Initial Purchaser of 10,000,000
      Depositary Shares (the “Depositary
      Shares”),
      each
      representing 1/10,000 of a share of Series I Flexible Cumulative Redeemable
      Preferred Stock, par value $0.01 per share (the “Series
      I Preferred Shares”)
      of the
      Company to be issued pursuant to a deposit agreement (the “Deposit
      Agreement”),
      by
      and among the Company and EquiServe Inc. and EquiServe Trust Company, N.A.,
      as
      Depositary. All capitalized terms used herein and not defined herein shall
      have
      the meanings ascribed to such terms in the Purchase Agreement.

     

    We
      have
      examined originals, photocopies or conformed copies of all such records of
      the
      Company, the Operating Partnership and the Company’s other subsidiaries and all
      such agreements, certificates of public officials, certificates of officers
      and
      representatives of the Company, the Operating Partnership and the Company’s
      other subsidiaries and such other documents as we have deemed relevant and
      necessary as a basis for the opinions hereinafter expressed. In such
      examinations, we have assumed the genuineness of all signatures on original
      documents and the conformity to the originals of all documents submitted to
      us
      as conformed copies or photocopies.

     

    Whenever
      our opinion is indicated to be “to our knowledge”, it should be understood that
      during the course of our representation of the Company and the Operating
      Partnership we have not undertaken any independent investigation to determine
      the existence or absence of facts. The words “to our knowledge” and similar
      language used in certain of the opinions expressed below are limited to the
      knowledge of the lawyers within our firm who have had primary responsibility
      for
      our work on the transactions contemplated by the Purchase Agreement. In
      addition, in connection with our opinions expressed below, we advise you that
      we
      are not involved in the day-to-day conduct of the business of the Company,
      the
      Operating Partnership or the Company’s other Subsidiaries and, accordingly,
      there may be facts and/or contracts of which we are not aware, and contracts
      which we have not reviewed, which, if received and reviewed, might cause us
      to
      alter the statements made in our opinion.

     

     

    
      
        
        

      

      
        B-1-1

        
          

        

      

      
        
        

      

    

     

    We
      advise
      you that in our opinion (relying to the extent indicated below on the opinions
      of other counsel):

     

    (i) Each
      of
      the Company and the Corporate Subsidiaries has been duly formed and is validly
      existing as a corporation in good standing under the laws of its state of
      organization. The Company is duly qualified or registered as a foreign
      corporation to transact business and is in good standing in each jurisdiction
      identified in Schedule
      I
      hereto.

     

    (ii) Each
      of
      the Operating Partnership and the Partnership Subsidiaries has been duly formed
      and is validly existing as a limited partnership in good standing under the
      laws
      of its state of organization. The Operating Partnership and each of the
      Partnership Subsidiaries has all requisite partnership power and authority
      to
      own, lease and operate its properties and other assets and to conduct the
      business in which it is engaged and proposes to engage, in each case as
      described in the SEC Filings, and the Operating Partnership has the partnership
      power to enter into and perform its obligations under the Purchase Agreement.
      The Operating Partnership and each of the Partnership Subsidiaries is duly
      qualified or registered as a foreign partnership and is in good standing in
      each
      jurisdiction identified in Schedule
      I
      hereto,
      in each case except where the failure to obtain such qualification or
      registration would not have a Material Adverse Effect.

     

    (iii) To
      our
      knowledge, no shares of preferred stock of the Company are reserved for any
      purpose. To our knowledge, there are no outstanding securities convertible
      into
      or exchangeable for any preferred stock of the Company and no outstanding
      options, rights (preemptive or otherwise) or warrants to purchase or to
      subscribe for shares of preferred stock of the Company. To our knowledge, all
      of
      the outstanding partnership interests of the Operating Partnership and each
      of
      the Partnership Subsidiaries have been duly authorized, validly issued and
      fully
      paid and, except for units not owned by the Company, are owned directly or
      indirectly by the Company or the Operating Partnership.

     

    (iv) To
      our
      knowledge, none of the Company, the Operating Partnership or the Subsidiaries
      is
      in violation of or default under its charter, by-laws, certificate of limited
      partnership or partnership agreement, as the case may be, and to our knowledge
      none of such entities is in default in the performance or observance of any
      obligation, agreement, covenant or condition contained in any document (as
      in
      effect on the date hereof) listed as an exhibit to each of the Company’s and the
      Operating Partnership’s Annual Report on Form 10-K for [the most recently
      completed year] [and all other periodic or current reports filed with the
      Commission subsequent to the date of such Annual Report and prior to the date
      hereof], in each case as amended, if applicable, to which such entity is a
      party
      or by or to which such entity may be bound, or to which any of the Property
      or
      assets of such entity or any Property is subject or by which they are bound
      (it
      being understood that (i) we express no opinion with respect to matters relating
      to any contract, indenture, mortgage, loan agreement, note, lease, joint venture
      or partnership agreement or other instrument or agreement relating to the
      acquisition, transfer, operation, maintenance, management or financing of any
      property or assets of such entity or any other Property and (ii) we are assuming
      compliance with the financial covenants contained in any such document), except
      in each case for violations or defaults which in the aggregate are not
      reasonably expected to have a Material Adverse Effect.

     

     

    
      
        
        

      

      
        B-1-2

        
          

        

      

      
        
        

      

    

     

    (v) The
      Deposit Agreement and the Registration Rights Agreement were duly and validly
      authorized, executed and delivered by the Company.

     

    (vi) The
      execution and delivery of the Deposit Agreement, the Registration Rights
      Agreement, the issuance and sale of the Depositary Shares and the performance
      by
      the Company and the Operating Partnership of their respective obligations under
      the Depositary Shares, Deposit Agreement and Registration Rights Agreement,
      to
      the extent they are a party thereto, did not and do not conflict with or
      constitute a breach or violation of or default under: (1) any document (as
      in
      effect on the date hereof) listed as an exhibit to each of the Company’s and the
      Operating Partnership’s Annual Report on Form 10-K for [the most recently
      completed year] [and all other periodic or current reports filed with the
      Commission subsequent to the date of such Annual Report and prior to the date
      hereof], in each case as amended, if applicable, to which any such entity is
      a
      party or by or to which it or any of them or any of their respective properties
      or other assets may be bound or subject and of which we are aware (it being
      understood that (i) we express no opinion with respect to matters relating
      to
      any contract, indenture, mortgage, loan agreement, note, lease, joint venture
      or
      partnership agreement or other instrument or agreement relating to the
      acquisition, transfer, operation, maintenance, management or financing of any
      property or assets of such entity or any other Property and (ii) we are assuming
      compliance with the financial covenants contained in any such document); (2)
      the
      certificate of limited partnership or partnership agreement, as the case may
      be,
      of the Operating Partnership, Securities, L.P. and the Financing Partnership
      or
      the articles of incorporation or bylaws, as the case may be, of the Company,
      FIFC or FISC; or (3) any applicable law, rule or administrative regulation,
      except in each case for conflicts, breaches, violations or defaults that in
      the
      aggregate are not reasonably expected to have a Material Adverse
      Effect.

     

    (vii) To
      our
      knowledge, no material authorization, approval, consent or order of any court
      or
      governmental authority or agency or any other entity is required in connection
      with the resale of the Depositary Shares under the Purchase Agreement, except
      such as may be required under the Securities Act, the by-laws, any corporate
      financing rule or conflict of interest rule of the NASD or state securities,
      “blue sky” or real estate syndication laws, or such as have been received prior
      to the date hereof.

     

     

    
      
        
        

      

      
        B-1-3

        
          

        

      

      
        
        

      

    

     

    (viii) The
      partnership agreement of each of the Operating Partnership, Securities, L.P.
      and
      the Financing Partnership has been duly authorized, validly executed and
      delivered by each of the Company and the Subsidiaries, to the extent they are
      parties thereto, and is valid, legally binding and enforceable in accordance
      with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
      reorganization, moratorium and similar laws of general applicability relating
      to
      or affecting creditors’ rights and of general principles of equity (regardless
      of whether such enforceability is considered in a proceeding in equity or at
      law).

     

    (ix) Assuming
      the accuracy of the Company’s representations and warranties in Section 2(B) of
      the Purchase Agreement and the Initial Purchaser’s representations and
      warranties in Section 2(A) of the Purchase Agreement and compliance
      with
      the procedures in Section 8 of the Purchase Agreement, no registration under
      the
      Securities Act of the Depositary Shares is required for the issuance and sale
      of
      the Depositary Shares to the Purchaser in the manner contemplated by the
      Purchase Agreement or in connection with the initial resale of the Depositary
      Shares by the Purchaser in accordance with the Purchase Agreement, assuming
      that
      the Purchaser and the Company comply with the procedures contemplated by the
      Purchase Agreement.

     

    (x) The
      Depositary Receipts, assuming they have been duly executed and delivered by
      the
      Depositary against the deposit of the Series I Preferred Shares in accordance
      with the provisions of the Deposit Agreement, will be validly issued and will
      entitle the holders thereof to rights specified therein and in the Deposit
      Agreement, subject to bankruptcy, insolvency, fraudulent transfer,
      reorganization, moratorium and similar laws of general applicability relating
      to
      or affecting creditors’ rights and to general principles of equity (regardless
      of whether such enforceability is considered in a proceeding in equity or at
      law).

     

    (xi) None
      of
      the Company or the Subsidiaries is required to be registered as an investment
      company under the Investment Company Act of 1940, as amended.

     

    In
      giving
      our opinion, we are relying (A) as to all matters of fact, upon
      representations, statements or certificates of public officials and officers,
      directors, partners, employees and representatives of, and accountants for,
      each
      of the Company, the Operating Partnership and the Subsidiaries, (B) as
      to
      all matters of Maryland law, on the opinion of McGuireWoods LLP, Baltimore,
      Maryland, (C) as to all matters of Illinois law, on the opinion of Barack
      Ferrazzano Kirschbaum Perlman & Nagelberg, Chicago, Illinois and (D) as
      to the good standing and qualification of the Company, the Operating
      Partnership, FIFC, FISC and the Financing Partnership to do business in any
      state or jurisdiction, upon certificates of appropriate government officials
      or
      opinions of counsel in such jurisdictions.

     

    We
      express no opinion (i) as to the enforceability of forum selection clauses
      in
      the federal courts or (ii) with respect to the requirements of, or
      compliance with, any state securities, blue sky or real estate syndication
      laws.

     

    We
      are
      attorneys admitted to practice in the State of New York. We express no opinion
      concerning any laws other than the General Corporation Law of the State of
      Delaware, the Delaware Revised Uniform Limited Partnership Act, the laws of
      the
      State of New York and the federal law of the United States.

     

     

    
      
        
        

      

      
        B-1-4

        
          

        

      

      
        
        

      

    

     

    Neither
      this opinion nor any part hereof may be delivered to, or used or relied upon
      by,
      any person other than you without our prior written consent.

     

    

     

     

    Very
      truly yours,

    

    

    

    

    
      
        
        

      

      
        B-1-5

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

    

    
      	
              ENTITY:

            	 	
              FOREIGN

              QUALIFICATION:

            
	
              First
                Industrial Realty Trust, Inc.

            	 	
              Georgia

              Indiana

              Michigan

              Minnesota

              New
                Jersey

              New
                York

            
	
              First
                Industrial, L.P.

            	 	
              Georgia

              Illinois

              Indiana

              Minnesota

              New
                Jersey

              New
                York

            
	
              First
                Industrial Financing Partnership, L.P.

            	 	
              Georgia

              Illinois

              Michigan

              Minnesota

            

    

    

    

    
      
        
        

      

      
        B-1-6

        
          

        

      

      
        
        

      

    

    [Date]

     

    Wachovia
      Investment Holdings, LLC

    301
      South
      College Street, DC-7

    One
      Wachovia Center

    Charlotte,
      North Carolina 28288

    

    Re: First
      Industrial Realty Trust, Inc.

    

    Ladies
      and Gentlemen:

     

    We
      have
      acted as tax counsel to First Industrial Realty Trust, Inc. (the “Company”) and
      First Industrial, L.P. in connection with the Purchase Agreement dated
      November 8, 2005 (the “Purchase Agreement”) by and among Wachovia
      Investment Holdings, LLC, the Company and First Industrial, L.P. We have been
      asked to provide our opinion as to certain federal income tax matters arising
      under the Internal Revenue Code of 1986, as amended (the “Code”), relating to
      the Company’s qualification for taxation as a real estate investment trust (a
“REIT”) under the Code. All capitalized terms used herein and not defined herein
      shall have the meanings ascribed to such terms in our corporate opinion letter
      as of even date herewith.

     

    The
      opinion set forth in this letter is based on relevant provisions of the Code,
      Treasury Regulations thereunder and interpretations of the foregoing as
      expressed in court decisions and administrative determinations as of the date
      hereof. These provisions and interpretations are subject to changes (possibly
      on
      a retroactive basis) that might result in modifications of our
      opinion.

     

    For
      purposes of rendering the opinion set forth in this letter, we have reviewed
      the
      Purchase Agreement and such other documents, law and facts as we have deemed
      necessary. In our review, we have assumed the genuineness of all signatures;
      the
      proper execution of all documents; the authenticity of all documents submitted
      to us as originals; the conformity to originals of all documents submitted
      to us
      as copies; and the authenticity of the originals of any copies.

     

    The
      opinion set forth in this letter is premised on certain written factual
      representations made by the Company in a certificate dated as of the date hereof
      (the “Certificate”) and is also premised on an assumption that if the Company
      ultimately were found not to have satisfied the gross income requirements of
      the
      REIT provisions as a result of certain development agreements entered into
      by
      the Company, such failure was due to reasonable cause and not due to willful
      neglect. For purposes of our opinion, we have not made an independent
      investigation of the representations contained in the Certificate, and
      consequently we have relied on the representations therein that the information
      contained in the Certificate or otherwise furnished to us accurately describes
      all material facts relevant to our opinion. Although we have not independently
      investigated the representations made to us in the Certificate, nothing has
      come
      to our attention that would lead us to question the accuracy of any such
      representations.

     

     

    
      
        
        

      

      
        B-1-7

        
          

        

      

      
        
        

      

    

     

    Based
      upon and subject to the foregoing we are of the opinion that, commencing with
      the Company’s taxable year ended December 31, 1994, the Company has been
      organized and operated in conformity with the requirements for qualification
      and
      taxation as a REIT under the Code, and the Company’s current and proposed method
      of operation (as represented by the Company to us in the Certificate) will
      enable it to continue to meet the requirements for qualification and taxation
      as
      a REIT under the Code.

     

    We
      express no opinion other than the opinion expressly set forth above (the
“Opinion”). The Opinion is not binding on the Internal Revenue Service (the
“IRS”) and the IRS may disagree with the Opinion. Although we believe that the
      Opinion would be sustained if challenged, there can be no assurance that this
      will be the case. 

     

    The
      Opinion is based upon the law as it currently exists. Consequently, future
      changes in the law may cause the federal income tax treatment of the matters
      referred to herein to be materially and adversely different from that described
      above (possibly on a retroactive basis). In addition, any variation in the
      facts
      from those set forth in the Purchase Agreement or the representations contained
      in the Certificate or otherwise provided to us may affect the conclusions stated
      in the Opinion. We assume no obligation to modify or supplement the Opinion
      if,
      after the date hereof, there is any change in law or we become aware of any
      facts that might change the Opinion. Moreover, the Company’s qualification and
      taxation as a REIT depend upon the Company’s ability to meet, through actual
      operating results, distribution levels, diversity of stock ownership and various
      other qualification tests imposed under the Code, none of which will be reviewed
      by us. Accordingly, no assurance can be given that the actual results of the
      Company’s operations for any taxable year will satisfy the requirements for the
      Company to maintain its qualification as a REIT.

     

    This
      Opinion was not intended or written to be used, and cannot be used, for
      the
      purpose of avoiding penalties that may be imposed on you by the IRS. This
      opinion was written to support the Company’s marketing of the Series I
      Depositary Shares. You should seek advice based on your particular circumstances
      from an independent tax advisor.

     

    The
      Opinion is being furnished solely for your use in connection with your purchase
      of the Series I Depositary Shares and, without our prior written consent, may
      not be used or relied upon by you for any other purpose. The Opinion may not
      be
      used or relied upon by any person other than you without our prior written
      consent.

     

     

    Very
      truly yours,

    

    

    

    

    

    
      
        
        

      

      
        B-1-8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-2

     

    Form
      of Opinion of McGuire Woods LLP

     

    

     

    [Date]

     

    Wachovia
      Investment Holdings, LLC

    301
      South
      College Street, DC-7

    One
      Wachovia Center

    Charlotte,
      North Carolina 28288

    

    Re: First
      Industrial Realty Trust, Inc.

    

    Ladies
      and Gentlemen:

    

    This
      opinion is furnished to you pursuant to Section 7(B)(a) of that certain Purchase
      Agreement dated November 8, 2005 (the “Purchase Agreement”) by and among
      Wachovia Investment Holdings, LLC, a Delaware limited liability company (the
      “Initial Purchaser”), First Industrial Realty Trust, Inc., a Maryland
      corporation (the “Company”), and First Industrial, L.P., a Delaware limited
      partnership (the “Operating Partnership”), relating to the issuance and sale to
      the Initial Purchaser of ten million (10,000,000) Series I Depositary Shares
      (the “Depositary Shares”), each representing 1/10,000th of a share of the
      Company’s Series I Flexible Cumulative Redeemable Preferred Stock,
      liquidation preference $250,000 per share (the “Preferred Shares”). Depositary
      receipts evidencing the Depositary Shares (the “Depositary Receipts”) are to be
      issued pursuant to a Deposit Agreement dated November 8, 2005 with respect
      to
      the Preferred Shares (the “Deposit Agreement”) between the Company and Equiserve
      Trust Company, N.A., as Depositary (the “Depositary”).

     

    We
      have
      acted as special Maryland counsel for the Company in connection with the
      offering of the Preferred Shares. We have examined originals or copies of the
      following:

     

    (a) The
      charter of the Company, and the charters of certain of the Company’s
      subsidiaries, First Industrial Securities Corporation, a Maryland corporation
      (“FISC”), First Industrial Indianapolis Corporation, a Maryland corporation
      (“FIIC”), First Industrial Finance Corporation, a Maryland corporation (“FIFC”),
      First Industrial Mortgage Corporation, a Maryland corporation (“FIMC”),
      First Industrial Development Services, Inc., a Maryland corporation (“FIDSI”)
      and First Industrial Pennsylvania Corporation, a Maryland corporation (“FIPC”
      and, together with FISC, FIIC, FIFC, FIMC and FIDSI, collectively the “Corporate
      Subsidiaries”);

     

    (b) The
      Bylaws of the Company and the Corporate Subsidiaries, each as amended to
      date;

     

     

    
      
        
        

      

      
        B-2-1

        
          

        

      

      
        
        

      

    

     

    (c) Such
      records of corporate proceedings of the Company and the Corporate Subsidiaries
      as we deemed material;

     

    (d) Certificates
      of Status of recent date issued by the Maryland State Department of Assessments
      and Taxation (the “SDAT”) with respect to the Company and the Corporate
      Subsidiaries;

     

    (e) The
      Purchase Agreement;

     

    (f) The
      Deposit Agreement;

     

    (g) The
      Registration Rights Agreement;

     

    (h) Certificates
      of officers of the Company and the Corporate Subsidiaries, and the
      representations and warranties contained in the Purchase Agreement;
      and

     

    (i) Such
      other contracts, certificates, records and copies of executed originals, final
      forms and draft forms of documents as we deemed necessary for the purpose of
      this opinion.

     

    In
      rendering our opinion in numbered paragraph (1) below with respect to the good
      standing of the Company and each of the Corporate Subsidiaries, we are relying
      solely on a Certificate of Status issued by the SDAT with respect to the good
      standing of each such entity.

     

    In
      rendering the following opinions, our examination of the law has been limited
      to
      the laws of the State of Maryland, and we express no opinion herein with respect
      to the law of any jurisdiction other than the laws of the State of Maryland.
      We
      have assumed (i) the genuineness of all signatures, (ii) the capacity, power
      and
      authority of all parties to execute and deliver all applicable documents, (iii)
      the truth and accuracy as to factual matters of all representations and
      warranties contained in the Purchase Agreement and other documents and
      certificates delivered by the various parties in connection with the offering
      of
      the Preferred Shares and Depositary Shares and the other transactions
      contemplated in connection therewith, (iv) the authenticity of all documents
      submitted to us as originals, (v) the conformity to originals of all documents
      submitted to us as certified or attested copies or photocopies, (vi) the
      authenticity of the originals of such certified or attested copies and
      photocopies, (vii) the receipt of consideration in return for the issuance
      and
      sale of the Preferred Shares and Depositary Shares as provided in resolutions
      of
      the Board of Directors of the Company authorizing the issuance of the Preferred
      Shares and Depositary Shares, and (viii) the receipt of consideration in return
      for the issuance and sale of all outstanding shares of capital stock of the
      Corporate Subsidiaries as provided in resolutions of the Boards of Directors
      of
      the Corporate Subsidiaries authorizing the issuance of such capital
      stock.

     

    As
      used
      herein, the terms “to our knowledge” and “known to us”, etc., shall mean to the
      actual and conscious knowledge of the attorneys at our firm who have actively
      worked on the offering of the Preferred Shares and Depositary Shares without
      further investigation for purposes of this opinion.

     

    Based
      upon and subject to the foregoing and the other qualifications and limitations
      herein contained, we are of the opinion that:

     

     

    
      
        
        

      

      
        B-2-2

        
          

        

      

      
        
        

      

    

     

    (1) The
      Company and each of the Corporate Subsidiaries has been duly incorporated and
      is
      validly existing as a corporation in good standing under the laws of the State
      of Maryland.

     

    (2) The
      Company and each of the Corporate Subsidiaries has the corporate power and
      authority to own, lease and operate its properties and other assets and to
      conduct the business in which it is engaged or proposes to engage, and the
      Company has the corporate power and authority to enter into and perform its
      obligations under the Purchase Agreement, the Deposit Agreement and the
      Registration Rights Agreement.

     

    (3) The
      Company’s authorized capitalization consists of ten million (10,000,000) shares
      of preferred stock, par value $.01 per share, one hundred million (100,000,000)
      shares of common stock, par value $.01 per share, and sixty-five million
      (65,000,000) shares of excess stock, par value $.01 per share. Other than the
      Preferred Shares, all of the issued and outstanding shares of capital stock
      of
      the Company (the “Outstanding Shares”) have been duly authorized and, assuming
      (i) the Outstanding Shares have been issued in accordance with previously issued
      written opinions of this law firm relating thereto and all applicable
      resolutions, and (ii) receipt of adequate consideration in exchange therefor,
      all of the Outstanding Shares are validly issued, fully paid and nonassessable.
      All one hundred (100) shares of the common stock of FISC subscribed for by
      the
      Company have been duly authorized and, assuming receipt of the consideration
      as
      provided in that certain Written Consent to Action of the Board of Directors
      Without a Meeting dated August 14, 1995 (and the Offering Terms attached thereto
      as Exhibit C),
      are
      validly issued, fully paid and nonassessable. All one million five hundred
      thousand (1,500,000) shares of the 9-1/2% Series A Cumulative Preferred Stock,
      $.01 par value per share, of FISC subscribed for by the Company have been duly
      authorized and, assuming receipt of the consideration as provided in those
      certain Minutes of Special Meeting of the Board of Directors held on November
      13, 1995 (and the Offering Terms attached thereto as Exhibit C),
      are
      validly issued, fully paid and nonassessable. All one thousand (1,000) shares
      of
      the common stock of FIIC subscribed for by the Company have been duly authorized
      and, assuming receipt of the consideration as provided in that certain Written
      Consent to Action of the Board of Directors Without a Meeting dated
      March 13, 1996 (and the Offering Terms attached thereto as Exhibit C),
      are
      validly issued, fully paid and nonassessable. All one hundred (100) shares
      of
      the common stock of FIFC subscribed for by the Company have been duly authorized
      and, assuming receipt of the consideration as provided in that certain Written
      Consent to Action of the Board of the Directors Without a Meeting dated
      June 10, 1994 (and the Offering Terms attached thereto as Exhibit C),
      are
      validly issued, fully paid and nonassessable. All one thousand (1,000) shares
      of
      the common stock of FIMC subscribed for by the Company have been duly authorized
      and, assuming receipt of the consideration as provided in that certain Written
      Consent to Action of the Board of the Directors Without a Meeting dated December
      14, 1995 (and the Offering Terms attached thereto as Exhibit C),
      are
      validly issued, fully paid and nonassessable. All one hundred (100) shares
      of
      the common stock of FIPC subscribed for by the Company have been duly authorized
      and, assuming receipt of the consideration as provided in that certain Written
      Consent to Action of the Board of Directors Without a Meeting dated
      December 22, 1994 (and the Offering Terms attached thereto as Exhibit C),
      are
      validly issued, fully paid and nonassessable. All five hundred (500) shares
      of
      the voting common stock of FIDSI and all nine hundred forty-four thousand nine
      hundred thirty-eight (944,938) shares of non-voting common stock of FIDSI
      subscribed for by the Operating Partnership have been duly authorized and,
      assuming receipt of the consideration as provided in that certain Written
      Consent of the Board of Directors For Action In Lieu of an Organizational
      Meeting dated as of May 22, 1997 (and the Subscription Agreement of same date
      between the Company and FIDSI), are validly issued, fully paid and
      nonassessable.

     

     

    
      
        
        

      

      
        B-2-3

        
          

        

      

      
        
        

      

    

     

    (4) Each
      of
      the Preferred Shares has been duly authorized and assuming receipt of the
      consideration as contemplated by the authorizing resolutions is validly issued,
      fully paid and nonassessable.

     

    (5) The
      terms
      of the Preferred Shares conform in all material respects to all statements
      and
      descriptions related thereto contained in the Articles Supplementary. The form
      of certificate representing the Preferred Shares and, to the extent Maryland
      law
      applies, the Depositary Receipts, are in due and proper form under, and comply
      in all material respects with, all applicable Maryland legal
      requirements.

     

    (6) The
      execution and delivery of each of the Purchase Agreement, the Articles
      Supplementary, the Deposit Agreement and the Registration Rights Agreement
      and
      the performance by the Company of its obligations thereunder and, with respect
      to the Purchase Agreement, the performance by the Company of the obligations
      thereunder in its capacity as general partner of the Operating Partnership,
      have
      been duly and validly authorized by the Company on behalf of itself and, with
      respect to the Purchase Agreement, the Operating Partnership.

     

    (7) The
      execution and delivery of the Purchase Agreement, the Articles Supplementary,
      the Deposit Agreement and the Registration Rights Agreement, the performance
      of
      the obligations and the consummation of the transactions set forth therein
      by
      the Company will not require, to our knowledge, any consent, approval,
      authorization or other order of any Maryland court, regulatory body,
      administrative agency or other Maryland governmental body (except as such may
      be
      required under the Securities Act of 1933 or other federal or state securities
      laws) and did not and do not conflict with or constitute a breach or a violation
      of or default under: (1) the charter or bylaws, as the case may be, of the
      Company; or (2) except with respect to Maryland securities or blue sky laws,
      any
      applicable Maryland law, rule or administrative regulation or any Maryland
      order
      or administrative or court decree known to us, except in each case for
      conflicts, breaches, violations or defaults that in the aggregate would not
      have
      a material adverse effect on the issuance and sale of the Depositary Shares
      or
      the performance by the Company of the obligations set forth in the Purchase
      Agreement, the Deposit Agreement and the Registration Rights
      Agreement.

     

    (8) The
      Company was authorized, as general partner of the Operating Partnership, to
      amend and restate the Operating Partnership’s Eighth Amended and Restated
      Limited Partnership Agreement, as amended to the date hereof (the “Operating
      Partnership Agreement”) by and among the Company and those limited partners
      identified in the Operating Partnership Agreement.

     

    (9) FISC
      was
      duly authorized by written consent of its board of directors dated
      October 19, 1995 to enter into that certain Limited Partnership Agreement
      of First Industrial Securities, L.P.

     

     

    
      
        
        

      

      
        B-2-4

        
          

        

      

      
        
        

      

    

     

    (10) FIIC
      was
      authorized by written consent of its board of directors dated October 18, 1996
      to enter into that certain Limited Partnership Agreement of First Industrial
      Indianapolis, L.P.

     

    (11) FIFC
      was
      duly authorized by written consent of its sole director dated June 22, 1994
      to
      enter into that certain Limited Partnership Agreement by and between FIFC and
      the Operating Partnership.

     

    (12) FIMC
      was
      duly authorized by written consent of its board of directors dated December
      27,
      1995 to enter into that certain Limited Partnership Agreement by and between
      FIMC and the Operating Partnership.

     

    (13) FIPC
      was
      authorized by written consent of its board of directors dated January 26,
      1996 to enter into that certain Limited Partnership Agreement of First
      Industrial Pennsylvania, L.P. (the “Pennsylvania Partnership Agreement”) and by
      written consent of its board of directors dated November 17, 1995 to
      enter
      into that certain First Amendment to the Pennsylvania Partnership
      Agreement.

     

    These
      opinions are based upon currently existing Maryland statutes, rules and
      regulations and on Maryland judicial decisions and are rendered as of the date
      hereof, and we disclaim any obligation to advise you of any change in any of
      the
      foregoing sources of law or subsequent developments in law or changes in facts
      or circumstances which might affect any matters or opinions set forth
      herein.

     

    The
      opinions set forth herein are rendered solely for your use in connection with
      the issuance of the Preferred Shares and may not be relied upon by you for
      any
      other purpose, or furnished to, quoted to, or relied upon by, in whole or in
      part, any other person, firm or corporation for any purpose, without our prior
      written consent. Notwithstanding the preceding sentence, Cahill Gordon &
      Reindel LLP may rely on the opinions set forth herein in providing its opinions
      rendered in connection with the issuance of the Preferred Shares.

    

    

    

     

    Very
      truly yours,

    
      
        
        

      

      
        B-2-5

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B-3

     

    Form
      of Opinion of Barack Ferrazzano Kirschbaum Perlman & Nagelberg
      LLP

    

    

    [Date]

    

    

    Wachovia
      Investment Holdings, LLC

    301
      South
      College Street, DC-7

    One
      Wachovia Center

    Charlotte,
      North Carolina 28288

    

    Re: First
      Industrial Realty Trust, Inc.

    

    Ladies
      and Gentlemen:

    

    This
      opinion is being furnished to you pursuant to Section 5(A)
      of the
      Purchase Agreement dated November
      8, 2005
      (the
“Purchase Agreement”) by and among Wachovia Capital Investments, Inc. (the
“Initial Purchaser”), First Industrial, L.P. (the “Operating Partnership”) and
      First Industrial Realty Trust, Inc. (the “Company”), relating to the issuance by
      the Company, and sale to the Initial Purchaser, of 10,000,000
      Series I Depositary Shares (the “Series I
      Shares”), each representing 1/10,000th
      of a
      share of Series I
      Flexible
      Cumulative Redeemable Preferred Stock of the Company, with a liquidation
      preference equivalent to $25.00
      per
      Series I
      Share.
      The
      Series
I
      Shares
      are to
      be issued under a certain Deposit
      Agreement pertaining to the Series I
      Shares
      between the Company,
      EquiServe, Inc.
      and
      EquiServe Trust Company, N.A., as Depositary, pursuant to the Purchase
      Agreement.

     

    We
      have
      acted as special real estate counsel to the Operating Partnership, First
      Industrial Mortgage Partnership, L.P.,
      a
      Delaware limited partnership (“FIMP”), First Industrial Pennsylvania, L.P., a
      Delaware limited partnership (“FIP”), First Industrial Financing Partnership,
      L.P., a Delaware limited partnership (“FIFP”), First Industrial Securities,
      L.P., a Delaware limited partnership (“FISP”), First Industrial Harrisburg,
      L.P., a Delaware limited partnership (“FIHP”), and First Industrial
      Indianapolis, L.P., a Delaware limited partnership (“FIIP”), in their
      acquisitions of various real properties. We have also acted as special real
      estate counsel to the Company, the Operating Partnership, FIMP, FIP, FIFP,
      FISP,
      FIHP and FIIP in connection with that certain Fourth
      Amended
      and Restated Unsecured Revolving Credit Facility, dated as of August
      23, 2005,
      among
      the Operating Partnership, as Borrower, the Company, as Guarantor and General
      Partner, JPMorgan
      Chase Bank, N.A
      as
      Administrative Agent, JPMorgan
      Securities
      Inc. as
      Lead Arranger and Sole Book Runner,
      Wachovia
      Bank, National Association
      as
      Syndication Agent, Commerzbank
      AG, PNC
      Bank,
      National Association and Wells Fargo
      Bank,
      N.A. as Documentation Agents,
      AmSouth
      Bank, The Bank of New York, The Bank of Nova Scotia, Bank of Montreal and
      SunTrust Bank as Co-Agents, and various financial institutions party thereto
      as
      lenders
      (such
      indebtedness is hereinafter referred to as the “Credit Documents”). Furthermore,
      we act as special real estate counsel to both FR Acquisitions, Inc., a Maryland
      corporation and a wholly-owned subsidiary of the
      Company
      (“FRA”), and the Operating Partnership, in the preparation, negotiation and
      execution of various pending agreements of purchase and sale into which FRA
      has
      entered for the purchase of certain real properties (collectively, the “Pending
      Contracts”).

     

     

    
      
        
        

      

      
        B-3-1

        
          

        

      

      
        
        

      

    

     

    The
      opinions to be expressed herein are subject to the following specific
      qualifications and limitations: Our opinion excludes any matters related to
      the
      laws of any state other than the State of Illinois, specifically including,
      but
      not limited to, Delaware, Maryland and New York. We are rendering no opinion
      on
      any matters of federal securities law, or the securities laws of any state,
      including Illinois; nor are we rendering any opinion on any matters of state,
      federal or local taxation. Additionally, we have not served as corporate or
      partnership counsel for any of the entities named in the second paragraph of
      this opinion, nor do we serve as corporate counsel for any of the corporate
      general partners of any of the partnership entities named in the second
      paragraph of this opinion.

     

    Based
      on
      the foregoing, and subject to qualifications and limitations set forth above
      and
      elsewhere in this opinion, we are of the opinion that:

     

    (i) To
      our
      knowledge, none of the Company, FRA, the Operating Partnership, FIMP, FIP,
      FIFP,
      FISP, FIHP and FIIP, nor any of the Maryland corporations that are each the
      sole
      general partner of one of FIMP, FIP, FIFP, FISP, FIHP and FIIP, respectively
      (collectively, the “Corporate GPs”) is in violation of, or in default in
      connection with the performance or observance of any obligation, agreement,
      covenant or condition contained in, any or all of (a) the Credit Documents
      and
      (b) the Pending Contracts, except in each case for violations or defaults that,
      in the aggregate, are not reasonably expected to have a Material Adverse Effect
      (as defined in the Purchase Agreement).

     

    (ii) The
      execution and delivery of the Purchase Agreement, and the performance of the
      obligations and the consummation of the transactions set forth therein by the
      Company and the Operating Partnership, did not and do not conflict with, or
      constitute a breach or violation of, or a default under (a) any or all of the
      Credit Documents and the Pending Contracts; (b) any applicable law, rule or
      administrative regulation of the federal government (or agency thereof) of
      the
      United States of America; or (c) any order or administrative or court decree
      issued to, or against, or concerning, any or all of the Company, FRA, the
      Operating Partnership, FIMP, FIP, FIFP, FISP, FIHP, FIIP and the Corporate
      GPs
      and about which, in the cases of clauses (b) and (c) above in this paragraph
      (ii), we are aware (it being understood, however, that the opinions in clauses
      (b) and (c) above are made without any independent investigation); except in
      each case for conflicts, breaches, violations or defaults that, in the
      aggregate, would not have a Material Adverse Effect.

     

    (iii) To
      our
      knowledge, there are no legal or governmental proceedings pending or threatened
      that do, or are likely to, have a Material Adverse Effect.

     

     

    
      
        
        

      

      
        B-3-2

        
          

        

      

      
        
        

      

    

     

    (iv) The
      information concerning
      mortgage loans payable set
      forth
      in the Company’s Annual Report on Form 10-K for the year ended December 31,
2004
      under
      Item 7 “Management’s Discussion and Analysis of Financial Condition and Results
      of Operations-Liquidity
      and Capital Resources,”
      to the
      extent that such information constitutes statements of law, descriptions of
      statutes, summaries of principal financing terms of Credit Documents or legal
      conclusions, has been reviewed by us, and is correct in all material respects,
      and presents fairly the information disclosed therein.

     

    Our
      opinions set forth herein are based upon the current status of Illinois law.
      Whenever our opinion is indicated to be “to our knowledge” or “to the best of
      our knowledge,” it should be understood that, during the course of our
      representation (as special real estate counsel) of the Company, the Operating
      Partnership, FRA, FIMP, FIP, FIFP, FISP, FIHP, FIIP and the Corporate GPs,
      we
      have not undertaken any independent investigation to determine the existence
      or
      absence of facts. The words “to our knowledge,” and similar language used in
      certain of the opinions expressed above, are limited to the knowledge of those
      lawyers within our firm who have had primary responsibility for our firm’s work
      on the transactions that are the subject of the Credit Documents and the Pending
      Contracts. In addition, in connection with our opinion expressed in paragraph
      (i) above, we wish to advise you that we are not involved in the day-to-day
      conduct of the business of any or all of the Company, the Partnership
      Subsidiaries and the Corporate Subsidiaries (as those latter two terms are
      defined in the Purchase Agreement) and, accordingly, there may be either or
      both
      facts and contracts of which we are not aware, but which might cause us to
      alter
      the statements made in such paragraph. We are making no undertaking to hereafter
      advise you of any changes in factual or legal matters that might contradict
      the
      opinions set forth herein.

     

    The
      foregoing opinions are limited to the matters expressly stated herein, and
      are
      made solely for the benefit of the Initial Purchaser and the firms of Cahill
      Gordon & Reindel and Hunton & Williams LLP, which latter firms may rely
      on this opinion for purposes of the issuance of their opinions to the Initial
      Purchaser pursuant to the Purchase Agreement. No other party shall be entitled
      to rely on this opinion, and it may not be disclosed, circulated, disseminated
      or quoted from, without the prior written consent of this firm.

     

    

     

    Very
      truly yours,

    

     

    BARACK
      FERRAZZANO KIRSCHBAUM

    PERLMAN
      & NAGELBERG LLP

    

    

    By:_____________________________     

    

    

    

    
      
        
        

      

      
        B-3-3Ninth Amended and Restated Partnership Agreement

     

    FIRST
      INDUSTRIAL, L.P.

    NINTH
      AMENDED AND RESTATED

     

    LIMITED
      PARTNERSHIP AGREEMENT

     

     

     

     

     

    
      	
              THESE
                SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
                AND
                MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES
                ACT OF 1933, AS AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS
                PURSUANT
                TO A REGISTRATION OR EXEMPTION
                THEREFROM.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

                                                                        Page

    

    
      	
              ARTICLE
                I - INTERPRETIVE PROVISIONS

            	 
	
              Section
                1.1 Certain
                Definitions

            	
              1

            
	
              Section
                1.2 Rules
                of Construction

            	
              12

            
	
              ARTICLE
                II - CONTINUATION

            	 
	
              Section
                2.1 Continuation

            	
              12

            
	
              Section
                2.2 Name

            	
              12

            
	
              Section
                2.3 Place
                of Business; Registered Agent

            	
              12

            
	
              ARTICLE
                III - BUSINESS PURPOSE

            	 
	
              Section
                3.1 Business

            	
              13

            
	
              Section
                3.2 Authorized
                Activities

            	
              13

            
	
              ARTICLE
                IV - CAPITAL CONTRIBUTIONS

            	 
	
              Section
                4.1 Capital
                Contributions

            	
              13

            
	
              Section
                4.2 Additional
                Partnership Interests

            	
              14

            
	
              Section
                4.3 No
                Third Party Beneficiaries

            	
              14

            
	
              Section
                4.4 Capital
                Accounts

            	
              14

            
	
              Section
                4.5 Return
                of Capital Account; Interest

            	
              16

            
	
              Section
                4.6 Preemptive
                Rights

            	
              16

            
	
              Section
                4.7 REIT
                Share Purchases

            	
              16

            
	
              ARTICLE
                V - ALLOCATIONS AND DISTRIBUTIONS

            	 
	
              Section
                5.1 Limited
                Liability

            	
              16

            
	
              Section
                5.2 Profits,
                Losses and Distributive Shares

            	
              16

            
	
              Section
                5.3 Distributions

            	
              22

            
	
              Section
                5.4 Distribution
                upon Redemption

            	
              23

            
	
              Section
                5.5 Distributions
                upon Liquidation

            	
              23

            
	
              Section
                5.6 Amounts
                Withheld

            	
              23

            
	
              ARTICLE
                VI - PARTNERSHIP MANAGEMENT

            	 
	
              Section
                6.1 Management
                and Control of Partnership Business

            	
              23

            
	
              Section
                6.2 No
                Management by Limited Partners; Limitation of
                Liability

            	
              23

            
	
              Section
                6.3 Limitations
                on Partners

            	
              24

            
	
              Section
                6.4 Business
                with Affiliates

            	
              24

            
	
              Section
                6.5 Compensation;
                Reimbursement of Expenses

            	
              25

            
	
              Section
                6.6 Liability
                for Acts and Omissions

            	
              25

            
	
              Section
                6.7 Indemnification

            	
              25

            
	
              ARTICLE
                VII - ADMINISTRATIVE, FINANCIAL AND TAX MATTERS

            	 
	
              Section
                7.1 Books
                and Records

            	
              26

            
	
              Section
                7.2 Annual
                Audit and Accounting

            	
              26

            
	
              Section
                7.3 Partnership
                Funds

            	
              26

            
	
              Section
                7.4 Reports
                and Notices

            	
              26

            
	
              Section
                7.5 Tax
                Matters

            	
              27

            
	
              Section
                7.6 Withholding

            	
              27

            
	
              ARTICLE
                VIII - TRANSFER OF PARTNERSHIP INTERESTS; ADMISSIONS OF
                PARTNERS

            	 
	
              Section
                8.1 Transfer
                by General Partner

            	
              28

            
	
              Section
                8.2 Obligations
                of a Prior General Partner

            	
              28

            
	
              Section
                8.3 Successor
                General Partner

            	
              28

            
	
              Section
                8.4 Restrictions
                on Transfer and Withdrawal by Limited Partner

            	
              28

            
	
              Section
                8.5 Substituted
                Limited Partner

            	
              29

            
	
              Section
                8.6 Timing
                and Effect of Transfers

            	
              30

            
	
              Section
                8.7 Additional
                Limited Partners

            	
              30

            
	
              Section
                8.8 Amendment
                of Agreement and Certificate 

            	
              30

            
	
              ARTICLE
                IX - REDEMPTION

            	 
	
              Section
                9.1 Right
                of Redemption

            	
              30

            
	
              Section
                9.2 Timing
                of Redemption

            	
              31

            
	
              Section
                9.3 Redemption
                Price

            	
              31

            
	
              Section
                9.4 Assumption
                of Redemption Obligation

            	
              32

            
	
              Section
                9.5 Further
                Assurances; Certain Representations

            	
              32

            
	
              Section
                9.6 Effect
                of Redemption

            	
              32

            
	
              Section
                9.7 Registration
                Rights

            	
              32

            
	
              Section
                9.8 Redemption
                upon REIT Share Repurchases by the General
                Partner

            	
              32

            
	
              ARTICLE
                X - DISSOLUTION AND LIQUIDATION

            	 
	
              Section
                10.1 Term
                and Dissolution

            	
              33

            
	
              Section
                10.2 Liquidation
                of Partnership Assets

            	
              33

            
	
              Section
                10.3 Effect
                of Treasury Regulations

            	
              34

            
	
              Section
                10.4 Time
                for Winding-Up

            	
              35

            
	
              ARTICLE
                XI - AMENDMENTS AND MEETINGS

            	 
	
              Section
                11.1 Amendment
                Procedure

            	
              35

            
	
              Section
                11.2 Meetings
                and Voting

            	
              36

            
	
              Section
                11.3 Voting
                of LB Units

            	
              36

            
	
              ARTICLE
                XII - MISCELLANEOUS PROVISIONS

            	 
	
              Section
                12.1 Title
                to Property

            	
              36

            
	
              Section
                12.2 Other
                Activities of Limited Partners

            	
              36

            
	
              Section
                12.3 Power
                of Attorney

            	
              37

            
	
              Section
                12.4 Notices

            	
              38

            
	
              Section
                12.5 Further
                Assurances

            	
              38

            
	
              Section
                12.6 Titles
                and Captions

            	
              38

            
	
              Section
                12.7 Applicable
                Law

            	
              38

            
	
              Section
                12.8 Binding
                Agreement

            	
              38

            
	
              Section
                12.9 Waiver
                of Partition

            	
              38

            
	
              Section
                12.10 Counterparts
                and Effectiveness

            	
              38

            
	
              Section
                12.11 Survival
                of Representations

            	
              38

            
	
              Section
                12.12 Entire
                Agreement

            	
              38

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      1A - First
      Highland Partners

    Exhibit
      1B - Schedule
      of Partners

    Exhibit
      1C - LB
      Partners

    Exhibit
      1D - Contributor
      Partners

    Exhibit
      2 - Form
      of
      Redemption Notice

    Exhibit
      3 - Form
      of
      Registration Rights Agreement

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FIRST
      INDUSTRIAL, L.P.

     

    NINTH
      AMENDED AND RESTATED

     

    LIMITED
      PARTNERSHIP AGREEMENT

     

    The
      undersigned, being the sole general partner of First Industrial, L.P. (the
      “Partnership”), a limited partnership formed under the Delaware Revised Uniform
      Limited Partnership Act, does hereby amend and restate the Eighth Amended and
      Restated Partnership Agreement (as described below) this 8th day of November,
      2005 as follows:

     

    R
      E C I T A L S:

     

    A. The
      Partnership was formed pursuant to a Certificate of Limited Partnership filed
      on
      November 23, 1993 with the Secretary of State of the State of Delaware
      under the name “ProVest, L.P.” and a Limited Partnership Agreement dated
      November 23, 1993 (the “Original Partnership Agreement”).

     

    B. The
      Original Partnership Agreement was amended and restated as of January 28, 1994
      (such amended and restated partnership agreement, the “Prior Partnership
      Agreement”).

     

    C. A
      Second
      Amended and Restated Limited Partnership Agreement was executed as of June
      30,
      1994, a Third Amended and Restated Partnership Agreement was executed as of
      May
      14, 1997, a Fourth Amended and Restated Partnership Agreement was executed
      as of
      June 6, 1997, a Fifth Amended and Restated Partnership Agreement was executed
      as
      of February 4, 1998, a Sixth Amended and Restated Partnership Agreement was
      executed as of March 18, 1998, a Seventh Amended and Restated Partnership
      Agreement was executed as of May 26, 2004 and an Eighth Amended and
      Restated Partnership Agreement was executed as of June 2, 2004 (the
“Eighth
      Partnership Agreement”).

     

    D. The
      General Partner desires to amend and restate the Eighth Partnership Agreement
      to
      (i) reflect the interests granted to the Class I Limited Partner (as
      hereinafter defined) and (ii) set forth the understandings and agreements,
      including certain rights and obligations, among the Partners (as hereinafter
      defined) with respect to the Partnership.

     

    
      
        

      

    ARTICLE
      I -
      INTERPRETIVE PROVISIONS

    
       

      
        

      

    

    Section
      1.1 Certain
      Definitions.
      The
      following terms have the definitions hereinafter indicated whenever used in
      this
      Agreement with initial capital letters:

     

    Act:
      The
      Delaware Revised Uniform Limited Partnership Act, Sections 17-101 to 17-1109
      of
      the Delaware Code Annotated, Title 6, as amended from time to time.

     

    Additional
      Limited Partner:
      A Person
      admitted to the Partnership as a Limited Partner in accordance with Section
      8.7
      hereof and who is shown as such on the books and records of the
      Partnership.

     

    Adjusted
      Capital Account:
      With
      respect to any Partner, such Partner’s Capital Account maintained in accordance
      with Section 4.4 hereof, as of the end of the relevant Fiscal Year of the
      Partnership, after giving effect to the following adjustments:

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    (A) Credit
      to
      such Capital Account such Partner’s share of Partnership Minimum Gain determined
      in accordance with Treasury Regulations Section 1.704-2(g)(1) and such Partner’s
      share of Partner Minimum Gain determined in accordance with Treasury Regulations
      Section 1.704-2(i)(5).

     

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

     

    The
      foregoing definition of “Adjusted Capital Account” is intended to comply with
      the provisions of Treasury Regulations Sections 1.704-1(b)(2)(ii) and 1.704-2
      and shall be interpreted consistently therewith.

     

    Adjusted
      Capital Account Deficit:
      With
      respect to any Partner, the deficit balance, if any, in that Partner’s Adjusted
      Capital Account as of the end of the relevant Fiscal Year of the
      Partnership.

     

    Affiliate:
      With
      respect to any referenced Person, (i) a member of such Person’s immediate
      family; (ii) any Person who directly or indirectly owns, controls or holds
      the
      power to vote ten percent (10%) or more of the outstanding voting securities
      of
      the Person in question; (iii) any Person ten percent (10%) or more of whose
      outstanding securities are directly or indirectly owned, controlled, or held
      with power to vote by the Person in question; (iv) any Person directly or
      indirectly controlling, controlled by, or under direct or indirect common
      control with the Person in question; (v) if the Person in question is a
      corporation, any executive officer or director of such Person or of any
      corporation directly or indirectly controlling such Person; and (vi) if the
      Person in question is a partnership, any general partner of the partnership
      or
      any limited partner owning or controlling ten percent (10%) or more of either
      the capital or profits interest in such partnership. As used herein, “control”
      shall mean the possession, directly or indirectly, of the power to direct or
      cause the direction of the management and policies of a Person, whether through
      the ownership of voting securities, by contract, or otherwise.

     

    Aggregate
      Protected Amount:
      With
      respect to the Contributor Partners, as a group, the aggregate balances of
      the
      Protected Amounts, if any, of the Contributor Partners, as determined on the
      date in question.

     

    Agreed
      Value: In
      the
      case of any (i) Contributed Property acquired pursuant to a Contribution
      Agreement, the value of such Contributed Property as set forth in such
      Contribution Agreement or, if no such value is set forth for such Contributed
      Property, the portion of the consideration provided for under such Contribution
      Agreement allocable to such Contributed Property, as determined by the General
      Partner in its reasonable discretion, (ii) Contributed Property acquired other
      than pursuant to a Contribution Agreement, the fair market value of such
      property at the time of contribution, as determined by the General Partner
      using
      such method of valuation as it may adopt in its reasonable discretion and (iii)
      property distributed to a Partner by the Partnership, the Partnership’s Book
      Value of such property at the time such property is distributed without taking
      into account, in the case of each of (i), (ii) and (iii), the amount of any
      related indebtedness assumed by the Partnership (or the Partner in the case
      of
      clause (iii)) or to which the Contributed Property (or distributed property
      in
      the case of clause (iii)) is taken subject.

     

    Agreement:
      This
      Ninth Amended and Restated Limited Partnership Agreement and all Exhibits
      attached hereto, as the same may be amended or restated and in effect from
      time
      to time.

     

    Assignee:
      Any
      Person to whom one or more Partnership Units have been Transferred as permitted
      under this Agreement but who has not become a Substituted Limited Partner in
      accordance with the provisions hereof.

     

    Bankruptcy:
      Either
      (i) a referenced Person’s making an assignment for the benefit of creditors,
      (ii) the filing by a referenced Person of a voluntary petition in bankruptcy,
      (iii) a referenced Person’s being adjudged insolvent or having entered against
      him an order for relief in any bankruptcy or insolvency proceeding, (iv) the
      filing by a referenced Person of an answer seeking any reorganization,
      composition, readjustment, liquidation, dissolution, or similar relief under
      any
      law or regulation, (v) the filing by a referenced Person of an answer or other
      pleading admitting or failing to contest the material allegations of a petition
      filed against him in any proceeding of 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    reorganization,
      composition, readjustment, liquidation, dissolution, or for similar relief
      under
      any statute, law or regulation or (vi) a referenced Person’s seeking, consenting
      to, or acquiescing in the appointment of a trustee, receiver or liquidator
      for
      all or substantially all of his property (or court appointment of such trustee,
      receiver or liquidator).

     

    Book-Tax
      Disparity:
      With
      respect to any item of Contributed Property, or property the Book Value of
      which
      has been adjusted in accordance with Section 4.4(D), as of the date of
      determination, the difference between the Book Value of such property and the
      adjusted basis of such property for federal income tax purposes.

     

    Book
      Value:
      With
      respect to any Contributed Property, the Agreed Value of such property reduced
      (but not below zero) by all Depreciation with respect to such property properly
      charged to the Partners’ Capital Accounts, and with respect to any other asset,
      the asset’s adjusted basis for federal income tax purposes; provided,
      however,
      (a) the
      Book Value of all Partnership Assets shall be adjusted in the event of a
      revaluation of Partnership Assets in accordance with Section 4.4(D) hereof,
      (b)
      the Book Value of any Partnership Asset distributed to any Partner shall be
      the
      fair market value of such asset on the date of distribution as determined by
      the
      General Partner and (c) such Book Value shall be adjusted by the Depreciation
      taken into account with respect to such asset for purposes of computing Profits
      and Losses.

     

    Capital
      Account:
      The
      account maintained by the Partnership for each Partner described in Section
      4.4
      hereof.

     

    Capital
      Contribution:
      The
      total amount of cash or cash equivalents and the Agreed Value (reduced to take
      into account the amount of any related indebtedness assumed by the Partnership,
      or to which the Contributed Property is subject) of Contributed Property which
      a
      Partner contributes or is deemed to contribute to the Partnership pursuant
      to
      the terms of this Agreement.

     

    Cash
      Payment:
      The
      payment to a Redeeming Party of a cash amount determined by multiplying (i)
      the
      number of Partnership Units tendered for redemption by such Redeeming Party
      pursuant to a validly proffered Redemption Notice by (ii) the Unit Value on
      the
      date the Redemption Notice is received by the General Partner.

     

    Certificate:
      The
      Partnership’s Certificate of Limited Partnership filed in the office of the
      Secretary of State of the State of Delaware, as amended from time to
      time.

     

    Class
      C Deemed Original Issue Date:
      (i) In
      the case of any Class C Unit which is part of the first issuance of such units
      or part of a subsequent issuance of such units prior to October 1, 1997, the
      date of such first issuance and (ii) in the case of any such unit which is
      part
      of a subsequent issuance of such units on or after October 1, 1997, the later
      of
      (x) October 1, 1997 and (y) the last Class C Distribution Period Commencement
      Date which precedes the date of issuance of such unit and which succeeds the
      last Class C Distribution Period for which full cumulative Class C Priority
      Return Amounts have been paid; provided,
      however,
      that,
      in the case of any such unit which is part of a subsequent issuance on or after
      October 1, 1997, the date of issuance of which falls between (a) the record
      date
      for dividends payable on the Series C Preferred Shares on the first succeeding
      dividend payment date on such stock and (b) such dividend payment date, the
      “Class C Deemed Original Issue Date” means the date of the Class C Distribution
      Period Commencement Date that immediately follows the date of issuance of such
      unit.

     

    Class
      C Distribution Period:
      The
      Class C Initial Distribution Period and each quarterly distribution period
      thereafter, commencing on January 1, April 1, July 1 and October 1 of each
      year
      and ending on and including the day preceding the next Class C Distribution
      Period Commencement Date.

     

    Class
      C Distribution Period Commencement Date:
      January
      1, April 1, July 1 and October 1 of each year commencing October 1,
      1997.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    Class
      C Initial Distribution Period:
      The
      period from the Class C Deemed Original Issue Date for a Class C Unit to, but
      excluding, October 1, 1997.

     

    Class
      C Limited Partner:
      First
      Industrial Realty Trust, Inc., a Maryland corporation, in its capacity as a
      limited partner in the Partnership holding Class C Units.

     

    Class
      C Priority Return Amount:
      With
      respect to each Class C Unit, (i) for the Class C Initial Distribution Period,
      the pro rata portion of the amount referred to in clause (ii) of this
      definition, computed in accordance with the last sentence of Section 5.3(A)
      hereof, and (ii) for each Class C Distribution Period thereafter, an amount
      equal to 2.15625% of that portion of the Capital Contribution of the Class
      C
      Limited Partner allocable to each such unit. Class C Priority Return Amounts
      on
      each Class C Unit that are not distributed as provided in Section 5.3(A) shall
      be cumulative from the Class C Deemed Original Issue Date of such
      unit.

     

    Class
      C Redemption:
      As
      defined in Section 9.1(C) hereof.

     

    Class
      C Redemption Price:
      As
      defined in Section 9.1(C) hereof.

     

    Class
      C Unit:
      The
      Partnership Interest held by the Class C Limited Partner, each full Class C
      Unit
      representing a $2,500 Capital Contribution.

     

    Class
      F Distribution Date:
      Each
      dividend payment date for the Series F Preferred Shares.

     

    Class
      F Limited Partner:
      First
      Industrial Realty Trust, Inc., a Maryland corporation, in its capacity as a
      limited partner in the Partnership holding Class F Units.

     

    Class
      F Priority Return Amount:
      With
      respect to each Class F Unit, that portion of the Capital Contribution of the
      Class F Limited Partner, allocable to each such unit, multiplied by the Dividend
      Rate in effect for the Series F Preferred Shares, in each case during the period
      with respect to which the Class F Priority Return Amount is to be
      determined.

     

    Class
      F Redemption:
      As
      defined in Section 9.1(D) hereof.

     

    Class
      F Redemption Price:
      As
      defined in Section 9.1(D) hereof.

     

    Class
      F Unit: The
      Partnership Interest held by the Class F Limited Partner, each full Class F
      Unit
      representing a $100,000 Capital Contribution.

     

    Class
      G Distribution Date:
      Each
      dividend payment date for the Series G Preferred Shares.

     

    Class
      G Limited Partner:
      First
      Industrial Realty Trust, Inc., a Maryland corporation, in its capacity as a
      limited partner in the Partnership holding Class G Units.

     

    Class
      G Priority Return Amount:
      With
      respect to each Class G Unit, that portion of the Capital Contribution of the
      Class G Limited Partner, allocable to each such unit, multiplied by the Dividend
      Rate in effect for the Series G Preferred Shares, in each case during the period
      with respect to which the Class G Priority Return Amount is to be
      determined.

     

    Class
      G Redemption:
      As
      defined in Section 9.1(E) hereof.

     

    Class
      G Redemption Price:
      As
      defined in Section 9.1(E) hereof.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    Class
      G Unit: The
      Partnership Interest held by the Class G Limited Partner, each full Class G
      Unit
      representing a $100,000 Capital Contribution.

     

    Class
      I Distribution Date:
      Each
      dividend payment date for the Series I Preferred Shares.

     

    Class
      I Limited Partner:
      First
      Industrial Realty Trust, Inc., a Maryland corporation, in its capacity as a
      limited partner in the Partnership holding Class I Units.

     

    Class
      I Priority Return Amount:
      With
      respect to each Class I Unit, that portion of the Capital Contribution of the
      Class I Limited Partner, allocable to each such unit, multiplied by the Dividend
      Rate in effect for the Series I Preferred Shares, in each case during the period
      with respect to which the Class I Priority Return Amount is to be
      determined.

     

    Class
      I Redemption:
      As
      defined in Section 9.1(F) hereof.

     

    Class
      I Redemption Price:
      As
      defined in Section 9.1(F) hereof.

     

    Class
      I Unit: The
      Partnership Interest held by the Class I Limited Partner, each full Class I
      Unit
      representing a $250,000 Capital Contribution.

     

    Code:
      The
      Internal Revenue Code of 1986, as amended from time to time.

     

    Consent:
      Either
      the written consent of a Person or the affirmative vote of such Person at a
      meeting duly called and held pursuant to this Agreement, as the case may be,
      to
      do the act or thing for which the consent is required or solicited, or the
      act
      of granting such consent, as the context may require.

     

    Contributed
      Property:
      Each
      property or other asset (excluding cash and cash equivalents) contributed or
      deemed contributed to the Partnership.

     

    Contribution
      Agreements:
      Those
      certain agreements among one or more of the Initial Limited Partners (or Persons
      in which such Initial Limited Partners have direct or indirect interests) and
      the Partnership pursuant to which, inter
      alia,
      the
      Initial Limited Partners (or such Persons), directly or indirectly, are
      contributing property to the Partnership on the Effective Date in exchange
      for
      Partnership Units.

     

    Contributor
      Partner(s):
      That or
      those Limited Partner(s) listed as Contributor Partner(s) on Exhibit
      1D
      attached
      hereto and made a part hereof, as such Exhibit may be amended from time to
      time
      by the General Partner, whether by express amendment to this Partnership
      Agreement or by execution of a written instrument by and between any additional
      Contributor Partner(s) being affected thereby and the General Partner, acting
      on
      behalf of the Partnership and without the prior consent of the Limited Partners
      (whether or not Contributor Partners other than the Contributor Partner(s)
      being
      affected thereby). For purposes hereof, any successor, assignee, or transferee
      of the Interest of a Contributor Partner (other than the Partnership in
      connection with a redemption pursuant to Article IX hereof) shall be considered
      a Contributor Partner for purposes hereof.

     

    Conversion
      Factor:
      The
      factor applied for converting Partnership Units to REIT Shares, which shall
      initially be 1.0; provided,
      however,
      in the
      event that the REIT (i) declares or pays a dividend on its outstanding REIT
      Shares in REIT Shares or makes a distribution to all holders of its outstanding
      REIT Shares in REIT Shares, (ii) subdivides its outstanding REIT Shares or
      (iii)
      combines its outstanding REIT Shares into a smaller number of REIT Shares,
      the
      Conversion Factor shall be adjusted by multiplying the Conversion Factor by
      a
      fraction, the numerator of which shall be the number of REIT Shares issued
      and
      outstanding on the record date (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 REIT Shares (determined
      without the above assumption) issued and outstanding 

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    on
      the
      record date for such dividend, distribution, subdivision or combination;
provided,
      further,
      in the
      event that the Partnership (a) declares or pays a distribution on the
      outstanding Partnership Units in Partnership Units or makes a distribution
      to
      all Partners in Partnership Units, (b) subdivides the outstanding Partnership
      Units or (c) combines the outstanding Partnership Units into a smaller number
      of
      Partnership Units, the Conversion Factor shall be adjusted by multiplying the
      Conversion Factor by a fraction, the numerator of which shall be the actual
      number of Partnership Units issued and outstanding on the record date
      (determined without giving effect to such dividend, distribution, subdivision
      or
      combination), and the denominator of which shall be the actual number of
      Partnership Units (determined after giving effect to such dividend,
      distribution, subdivision or combination) issued and outstanding on such record
      date. Any adjustment to the Conversion Factor shall become effective immediately
      after the effective date of such event retroactive to the record date, if any,
      for such event.

     

    Depreciation:
      For each
      Fiscal Year or other period, an amount equal to the depreciation, amortization
      or other cost recovery deduction allowable with respect to an asset for such
      year or other period, except that if the Book 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 adjusted as necessary so as to be an amount
      which bears the same ratio to such beginning Book Value as the federal income
      tax depreciation, amortization, or other cost recovery deduction for such year
      or other period bears to the beginning adjusted tax basis; provided,
      however,
      that if
      the federal income tax depreciation, amortization or other cost recovery
      deduction for such year or other period is zero, Depreciation for such year
      or
      other period shall be determined with reference to such beginning Book Value
      using any reasonable method approved by the General Partner.

     

    Distributable
      Cash:
      With
      respect to any period, and without duplication:

     

    (i)all
      cash
      receipts of the Partnership during such period from all sources;

     

    (ii)less
      all cash
      disbursements of the Partnership during such period, including, without
      limitation, disbursements for operating expenses, taxes, debt service
      (including, without limitation, the payment of principal, premium and interest),
      redemption of Partnership Interests and capital expenditures;

     

    (iii)less
      amounts
      added to reserves in the sole discretion of the General Partner, plus
      amounts
      withdrawn from reserves in the reasonable discretion of the General
      Partner.

     

    Effective
      Date:
      June 30,
      1994.

     

    ERISA:
      The
      Employee Retirement Income Security Act of 1976, as amended from time to
      time.

     

    First
      Highland Limited Partners:
      Those
      Limited Partners identified on Exhibit
      1A
      hereto.

     

    First
      Highland Properties:
      Those
      certain properties acquired by the Partnership pursuant to that certain
      Contribution Agreement, dated as of March 19, 1996.

     

    First
      Highland Units:
      The
      Partnership Units issued to the First Highland Limited Partners in connection
      with the acquisition of the First Highland Properties by the
      Partnership.

     

    Fiscal
      Year:
      The
      calendar year or in the event of a termination of the Partnership pursuant
      to
      Code Section 708, an appropriate portion of such year.

     

    General
      Partner:
      First
      Industrial Realty Trust, Inc., a Maryland corporation, and its respective
      successor(s) who or which become Successor General Partner(s) in accordance
      with
      the terms of this Agreement.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    General
      Partner Interest:
      A
      Partnership Interest held by the General Partner including both its General
      Partner and Limited Partner Interests. A General Partner Interest may be
      expressed as a number of Partnership Units.

     

    Involuntary
      Withdrawal:
      As to
      any (i) individual shall mean such individual’s death, incapacity or
      adjudication of incompetence, (ii) corporation shall mean its dissolution or
      revocation of its charter (unless such revocation is promptly corrected upon
      notice thereof), (iii) partnership shall mean the dissolution and commencement
      of winding up of its affairs, (iv) trust shall mean the termination of the
      trust
      (but not the substitution of trustees), (v) estate shall mean the distribution
      by the fiduciary of the estate’s complete interest in the Partnership and (vi)
      any Partner shall mean the Bankruptcy of such Partner.

     

    IRS:
      The
      Internal Revenue Service, which administers the internal revenue laws of the
      United States.

     

    LB
      Closing Date:
      January
      31, 1997.

     

    LB
      Partners:
      The
      persons identified on Exhibit
      1C
      hereto,
      following their admission to the Partnership as Additional Limited
      Partners.

     

    LB
      Units:
      The
      Partnership Units issued to the LB Partners in connection with the acquisition
      by the Partnership of certain properties on the LB Closing Date.

     

    Limited
      Partner:
      Those
      Persons listed as such on Exhibit
      1B
      attached
      hereto and made a part hereof, as such Exhibit may be amended from time to
      time,
      including any Person who becomes a Substituted Limited Partner or an Additional
      Limited Partner in accordance with the terms of this Agreement; provided such
      term shall not include the Class C Limited Partner, the Class F Limited Partner,
      the Class G Limited Partner or the Class I Limited Partner.

     

    Limited
      Partner Interest:
      A
      Partnership Interest held by a Limited Partner that is a limited partner
      interest. A Limited Partner Interest may be expressed as a number of Partnership
      Units.

     

    Nonrecourse
      Liability:
      A
      liability as defined in Treasury Regulations Section 1.704-2(b)(3).

     

    Notice:
      A
      writing containing the information required by this Agreement to be communicated
      to a Person and delivered to such Person in accordance with Section 12.4;
provided,
      however,
      that
      any written communication containing such information actually received by
      such
      Person shall constitute Notice for all purposes of this Agreement.

     

    Partner
      Minimum Gain:
      The gain
      (regardless of character) which would be realized by the Partnership if property
      of the Partnership subject to a partner nonrecourse debt (as such term is
      defined in Treasury Regulations Section 1.704-2(b)(4)) were disposed of in
      full
      satisfaction of such debt on the relevant date. The adjusted basis of property
      subject to more than one partner nonrecourse debt shall be allocated in a manner
      consistent with the allocation of basis for purposes of determining Partnership
      Minimum Gain hereunder. Partner Minimum Gain shall be computed hereunder using
      the Book Value, rather than the adjusted tax basis, of the Partnership property
      in accordance with Treasury Regulations Section 1.704-2(d)(3).

     

    Partner
      Nonrecourse Deductions:
      With
      respect to any partner nonrecourse debt (as such term is defined in Treasury
      Regulations Section 1.704-2(b)(4)), the increase in Partner Minimum Gain during
      the tax year plus any increase in Partner Minimum Gain for a prior tax year
      which has not previously generated a Partner Nonrecourse Deduction hereunder.
      The determination of which Partnership items constitute Partner Nonrecourse
      Deductions shall be made in a manner consistent with the manner in which
      Partnership Nonrecourse Deductions are determined hereunder.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    Partners:
      The
      General Partner, the Class C Limited Partner, the Class F Limited Partner,
      the
      Class G Limited Partner, the Class I Limited Partner and the Limited Partners
      as
      a group. The term “Partner” shall mean a General Partner, the Class C Limited
      Partner, the Class F Limited Partner, the Class G Limited Partner, the Class
      I
      Limited Partner or a Limited Partner. Such terms shall be deemed to include
      such
      other Persons who become Partners pursuant to the terms of this
      Agreement.

     

    Partnership:
      The
      Delaware limited partnership referred to herein as First Industrial, L.P.,
      as
      such partnership may from time to time be constituted.

     

    Partnership
      Assets:
      At any
      particular time, any assets or property (tangible or intangible, choate or
      inchoate, fixed or contingent) owned by the Partnership.

     

    Partnership
      Interest or Interest:
      As to
      any Partner, such Partner’s ownership interest in the Partnership and including
      such Partner’s right to distributions under this Agreement and any other rights
      or benefits which such Partner has in the Partnership, together with any and
      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:
      The
      aggregate gain (regardless of character) which would be realized by the
      Partnership if all of the property of the Partnership subject to nonrecourse
      debt (other than partner nonrecourse debt as such term is defined in Treasury
      Regulations Section 1.704-2(b)(4)) were disposed of in full satisfaction of
      such
      debt and for no other consideration on the relevant date. In the case of any
      Nonrecourse Liability of the Partnership which is not secured by a mortgage
      with
      respect to any specific property of the Partnership, any and all property of
      the
      Partnership to which the holder of said liability has recourse shall be treated
      as subject to such Nonrecourse Liability for purposes of the preceding sentence.
      Partnership Minimum Gain shall be computed separately for each Nonrecourse
      Liability of the Partnership. For this purpose, the adjusted basis of property
      subject to two or more liabilities of equal priority shall be allocated among
      such liabilities in proportion to the outstanding balance of such liabilities,
      and the adjusted basis of property subject to two or more liabilities of unequal
      priority shall be allocated to the liability of inferior priority only to the
      extent of the excess, if any, of the adjusted basis of such property over the
      outstanding balance of the liability of superior priority. Partnership Minimum
      Gain shall be computed hereunder using the Book Value, rather than the adjusted
      tax basis, of the Partnership property in accordance with Treasury Regulations
      Section 1.704-2(d)(3).

     

    Partnership
      Nonrecourse Deductions:
      The
      amount of Partnership deductions equal to the increase, if any, in the amount
      of
      the aggregate Partnership Minimum Gain during the tax year (plus any increase
      in
      Partnership Minimum Gain for a prior tax year which has not previously generated
      a Partnership Nonrecourse Deduction) reduced (but not below zero) by the
      aggregate distributions made during the tax year of the proceeds of a
      Nonrecourse Liability of the Partnership which are attributable to an increase
      in Partnership Minimum Gain within the meaning of Treasury Regulations Section
      1.704-2(d). The Partnership Nonrecourse Deductions for a Partnership tax year
      shall consist first of depreciation or cost recovery deductions with respect
      to
      each property of the Partnership giving rise to such increase in Partnership
      Minimum Gain on a pro rata basis to the extent of each such increase, with
      any
      excess made up pro rata of all items of deduction.

     

    Partnership
      Unit:
      A
      fractional, undivided share of the Partnership Interests of all Partners (other
      than the Class C Limited Partner, the Class F Limited Partner, the Class G
      Limited Partner and the Class I Limited Partner) issued pursuant to Section
      4.1
      hereof.

     

    Percentage
      Interest:
      As to
      any Partner, the percentage in the Partnership, as determined by dividing the
      Partnership Units then owned by such Partner by the total number of Partnership
      Units then outstanding, as the same may be automatically adjusted from time
      to
      time to reflect the issuance and redemption of Partnership Units in accordance
      with this Agreement, without requiring the amendment of Exhibit
      1B
      to
      reflect any such issuance or redemption.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    Person:
      Any
      individual, partnership, corporation, trust or other entity.

     

    Profits
      and Losses:
      For each
      Fiscal Year or other period, an amount equal to the Partnership’s taxable income
      or loss (as the case may be) for such year or period, determined in accordance
      with Code Section 703(a) (for this purpose, all items of income, gain, loss
      or
      deduction required to be stated separately pursuant to Code Section 703(a)(1)
      shall be included in taxable income or loss), with the following
      adjustments:

     

    a. Any
      income of the Partnership that is exempt from federal income tax and not
      otherwise taken into account in computing Profits or Losses pursuant to this
      definition shall be added to such taxable income or loss;

     

    b. Any
      expenditures of the Partnership described in Code Section 705(a)(2)(B) or
      treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury
      Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account
      in computing Profits or Losses pursuant to this definition, shall be subtracted
      from such taxable income or loss;

     

    c. Gain
      or
      loss resulting from any disposition of Partnership property with respect to
      which gain or loss is recognized for federal income tax purposes shall be
      computed by reference to the Book Value of the property disposed of
      notwithstanding that the adjusted tax basis of such property differs from such
      Book Value;

     

    d. 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 or other period, computed in
      accordance with the definition of “Depreciation” herein; and

     

    e. In
      the
      event that any item of income, gain, loss or deduction that has been included
      in
      the initial computation of Profit or Loss is subject to the special allocation
      rules of Sections 5.2(C), 5.2(D) and 5.2(I) through 5.2(L), Profit or Loss
      shall
      be recomputed without regard to such item.

     

    Protected
      Amount:
      With
      respect to any Contributor Partner, the amount set forth or otherwise described
      opposite the name of such Contributor Partner on Exhibit
      1D
      attached
      hereto and made a part hereof, as such Exhibit may be modified from time to
      time
      by an amendment to the Partnership Agreement or by execution of a written
      instrument by and between the Contributor Partner being affected thereby and
      the
      General Partner, acting on behalf of the Partnership and without the prior
      written consent of the Limited Partners (whether or not Contributor Partners
      other than the Contributor Partner being affected thereby); provided,
      however,
      that no
      Contributor Partner shall be considered to have a Protected Amount from and
      following the first date upon which such Partner is no longer a Partner of
      the
      Partnership.

     

    Record
      Date:
      The
      record date established by the General Partner for distributions pursuant to
      Section 5.3 hereof, which record date shall be the same as the record date
      established by the General Partner for a distribution to its stockholders of
      some or all of its portion of such distribution.

     

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

     

    Redeeming
      Party:
      A
      Limited Partner or Assignee (other than the General Partner) who tenders
      Partnership Units for redemption pursuant to a Redemption Notice.

     

    Redemption
      Date:
      The date
      for redemption of Partnership Units as set forth in Section 9.2.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    Redemption
      Effective Date:
      The
      first date on which a Redeeming Party may elect to redeem Partnership Units,
      which date shall be the later of (i) the first anniversary of the date such
      Partnership Units are issued and (ii) the effective date of any registration
      statement filed by the Partnership with respect to the REIT Shares to be issued
      upon redemption of Partnership Units by a Redeeming Party.

     

    Redemption
      Notice:
      A Notice
      to the General Partner by a Redeeming Party, substantially in the form attached
      as Exhibit 2,
      pursuant to which the Redeeming Party requests the redemption of Partnership
      Units in accordance with Article IX.

     

    Redemption
      Obligation:
      The
      obligation of the Partnership to redeem the Partnership Units as set forth
      in
      Section 9.1(A).

     

    Redemption
      Period:
      The
      45-day period immediately following the filing with the SEC by the General
      Partner of an annual report of the General Partner on Form 10-K or a quarterly
      report of the General Partner on Form 10-Q or such other period or periods
      as
      the General Partner may otherwise determine.

     

    Redemption
      Restriction:
      A
      restriction on the ability of the Partnership to redeem the Partnership Units
      as
      set forth in Section 9.1(A).

     

    Registration
      Rights Agreement:
      A
      Registration Rights Agreement, substantially in the form of Exhibit
      3
      hereto,
      pursuant to which First Industrial will agree to register under the Securities
      Act of 1933, as amended, REIT Shares issued in connection with Share Payments
      made under Article IX hereof.

     

    REIT:
      A real
      estate investment trust, as defined in Code Section 856.

     

    REIT
      Charter:
      The
      Articles of Incorporation of First Industrial filed with the Department of
      Assessments and Taxation of the State of Maryland on August 10, 1993, as the
      same may be amended or restated and in effect from time to time.

     

    REIT
      Share:
      A share
      of common stock representing an ownership interest in the General
      Partner.

     

    REIT
      Share Rights:
      Rights
      to acquire additional REIT Shares issued to all holders of REIT Shares, whether
      in the form of rights, options, warrants or convertible or exchangeable
      securities, to the extent the same have been issued without additional
      consideration after the initial acquisition of such REIT Shares.

     

    SEC:
      The
      Securities and Exchange Commission.

     

    Series
      C Preferred Shares:
      8 5/8%
      Series C Cumulative Preferred Stock of First Industrial Realty Trust,
      Inc.

     

    Series
      F Preferred Shares:
      Series F
      Flexible Cumulative Redeemable Preferred Stock of First Industrial Realty Trust,
      Inc.

     

    Series
      G Preferred Shares:
      Series G
      Flexible Cumulative Redeemable Preferred Stock of First Industrial Realty Trust,
      Inc.

     

    Series
      I Preferred Shares:
      Series I
      Flexible Cumulative Redeemable Preferred Stock of First Industrial Realty Trust,
      Inc.

     

    Share
      Payment:
      The
      payment to a Redeeming Party of a number of REIT Shares determined by
      multiplying (i) the number of Partnership Units tendered for redemption by
      such
      Redeeming Party pursuant to a 

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    validly
      proffered Redemption Notice by (ii) the Conversion Factor. In the event the
      General Partner grants any REIT Share Rights prior to such payment, any Share
      Payment shall include for the Redeeming Party his ratable share of such REIT
      Share Rights other than REIT Share Rights which have expired.

     

    Subsidiary:
      With
      respect to any Person, any corporation 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:
      That
      Person or those Persons admitted to the Partnership as substitute Limited
      Partner(s), in accordance with the provisions of this Agreement. A Substituted
      Limited Partner, upon his admission as such, shall succeed to the rights,
      privileges and liabilities of his predecessor in interest as a Limited
      Partner.

     

    Successor
      General Partner:
      Any
      Person who is admitted to the Partnership as substitute General Partner pursuant
      to this Agreement. A Successor General Partner, upon its admission as such,
      shall succeed to the rights, privileges and liabilities of its predecessor
      in
      interest as General Partner, in accordance with the provisions of the
      Act.

     

    Tax
      Matters Partner:
      The
      General Partner or such other Partner who becomes Tax Matters Partner pursuant
      to the terms of this Agreement.

     

    Terminating
      Capital Transaction:
      The sale
      or other disposition of all or substantially all of the Partnership Assets
      or a
      related series of transactions that, taken together, result in the sale or
      other
      disposition of all or substantially all of the Partnership Assets.

     

    Threshold
      Percentage:
      A
      percentage equal to 85% on the LB Closing Date and thereafter adjusted upwards
      (but not downwards) immediately prior to each solicitation of any vote of,
      or
      the seeking of any consent, approval or waiver from, the Limited Partners
      generally, to the sum of (i) 85% and (ii) the number of percentage points equal
      to the positive difference, if any, between (a) the aggregate Percentage
      Interest represented by the LB Units immediately following the LB Closing Date
      and (b) the aggregate Percentage Interest represented by the LP Units
      immediately prior to any such solicitation. For example, if on the LB Closing
      Date the LB Units represent a 10% aggregate Percentage Interest, and if
      immediately prior to a solicitation the Threshold Percentage is 85% and the
      aggregate Percentage Interest represented by the LB Units is 8%, the Threshold
      Percentage would be increased to 87% (85% + (10% - 8%)).

     

    Transfer:
      With
      respect to any Partnership Unit shall mean a transaction in which a Partner
      assigns his Partnership Interest to another Person and includes any sale,
      assignment, gift, pledge, mortgage, exchange, hypothecation, encumbrance or
      other disposition by law or otherwise; provided,
      however,
      the
      redemption of any Partnership Interest pursuant to Article IX hereof shall
      not
      constitute a “Transfer” for purposes hereof.

     

    Transfer
      Restriction Date:
      June 23,
      1995.

     

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

     

    Unit
      Value:
      With
      respect to any Partnership Unit, the average of the daily market price for
      a
      REIT Share for the ten (10) consecutive trading days immediately preceding
      the
      date of receipt of a Redemption Notice by the General Partner multiplied by
      the
      Conversion Factor. If the REIT Shares are traded on a securities exchange or
      the
      NASDAQ-National Market System, the market price for each such trading day shall
      be the reported last sale price on such day or, if no sales take place on such
      day, the average of the closing bid and asked prices on such day. If the REIT
      Shares are not traded on a securities exchange or the NASDAQ-National Market
      System, the market price for 

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    each
      such
      trading day shall be determined by the General Partner using any reasonable
      method of valuation. If a Share Payment would include any REIT Share Rights,
      the
      value of such REIT Share Rights shall be determined by the General Partner
      using
      any reasonable method of valuation, taking into account the Unit Value
      determined hereunder and the factors used to make such determination and the
      value of such REIT Share Rights shall be included in the Unit
      Value.

     

    Voting
      Termination Date:
      The
      first date after the LB Closing Date on which either (i) the General Partner
      holds 90% or more of all Partnership Units or (ii) the aggregate number of
      Partnership Units held by the General Partner and the LB Partners is less than
      the product of the Threshold Percentage and the total number of Partnership
      Units then outstanding.

     

    Section
      1.2 Rules
      of Construction.
      The
      following rules of construction shall apply to this Agreement:

     

    (A) All
      section headings in this Agreement are for convenience of reference only and
      are
      not intended to qualify the meaning of any section.

     

    (B) All
      personal pronouns used in this Agreement, whether used in the masculine,
      feminine or neuter gender, shall include all other genders, the singular shall
      include the plural, and vice versa, as the context may require.

     

    (C) Each
      provision of this Agreement shall be considered severable from the rest, and
      if
      any provision of this Agreement or its application to any Person or
      circumstances shall be held invalid and contrary to any existing or future
      law
      or unenforceable to any extent, the remainder of this Agreement and the
      application of any other provision to any Person or circumstances shall not
      be
      affected thereby and shall be interpreted and enforced to the greatest extent
      permitted by law so as to give effect to the original intent of the parties
      hereto.

     

    (D) Unless
      otherwise specifically and expressly limited in the context, any reference
      herein to a decision, determination, act, action, exercise of a right, power
      or
      privilege, or other procedure by the General Partner shall mean and refer to
      the
      decision, determination, act, action, exercise or other procedure by the General
      Partner in its sole and absolute discretion.

     

    
      
        

      

    ARTICLE
      II -
      CONTINUATION

    

    
      
        

      

    Section
      2.1 Continuation.
      The
      Partners hereby continue the Partnership as a limited partnership under the
      Act.
      The General Partner shall take all action required by law to perfect and
      maintain the Partnership as a limited partnership under the Act and under the
      laws of all other jurisdictions in which the Partnership may elect to conduct
      business, including but not limited to the filing of amendments to the
      Certificate with the Delaware Secretary of State, and qualification of the
      Partnership as a foreign limited partnership in the jurisdictions in which
      such
      qualification shall be required, as determined by the General Partner. The
      General Partner shall also promptly register the Partnership under applicable
      assumed or fictitious name statutes or similar laws.

     

    Section
      2.2 Name.
      The
      name of the Partnership is First Industrial, L.P. The General Partner may adopt
      such assumed or fictitious names as it deems appropriate in connection with
      the
      qualifications and registrations referred to in Section 2.1.

     

    Section
      2.3 Place
      of Business; Registered Agent.
      The
      principal office of the Partnership is located at 311 S. Wacker Drive, Suite
      4000, Chicago, Illinois 60606, which office may be changed to such other place
      as the 

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    General
      Partner may from time to time designate. The Partnership may establish offices
      for the Partnership within or without the State of Delaware as may be determined
      by the General Partner. The initial registered agent for the Partnership in
      the
      State of Delaware is The Corporation Trust Company, whose address is c/o
      Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware
      19801.

     

    
      
        

      

    ARTICLE
      III -
      BUSINESS PURPOSE

    

    
      
        

      

    Section
      3.1 Business.
      The
      business of the Partnership shall be (i) conducting any business that may be
      lawfully conducted by a limited partnership pursuant to the Act including,
      without limitation, acquiring, owning, managing, developing, leasing, marketing,
      operating and, if and when appropriate, selling, industrial properties, (ii)
      entering into any partnership, joint venture or other relationship to engage
      in
      any of the foregoing or the ownership of interests in any entity engaged in
      any
      of the foregoing, (iii) making loans, guarantees, indemnities or other financial
      accommodations and borrowing money and pledging its assets to secure the
      repayment thereof, (iv) to do any of the foregoing with respect to any Affiliate
      or Subsidiary and (v) doing anything necessary or incidental to the foregoing;
      provided,
      however,
      that
      business of the Partnership shall be limited so as to permit the General Partner
      to elect and maintain its status as a REIT (unless the General Partner
      determines no longer to qualify as a REIT).

     

    Section
      3.2 Authorized
      Activities.
      In
      carrying out the purposes of the Partnership, but subject to all other
      provisions of this Agreement, the Partnership is authorized to engage in any
      kind of lawful activity, and perform and carry out contracts of any kind,
      necessary or advisable in connection with the accomplishment of the purposes
      and
      business of the Partnership described herein and for the protection and benefit
      of the Partnership; provided that the General Partner shall not be obligated
      to
      cause the Partnership to take, or refraining from taking, any action which,
      in
      the judgment of the General Partner, (i) could adversely affect the
      ability
      of the General Partner to qualify and continue to qualify as a REIT,
      (ii) could subject the General Partner to additional taxes under Code
      Section 857 or 4981 or (iii) could violate any law or regulation of
      any
      governmental body or agency having jurisdiction over the General Partner or
      its
      securities.

     

    
      
        

      

    ARTICLE
      IV -
      CAPITAL CONTRIBUTIONS

    

    
      
        

      

    Section
      4.1 Capital
      Contributions.

     

    (A) Upon
      the
      contribution to the Partnership of property in accordance with a Contribution
      Agreement, Partnership Units shall be issued in accordance with, and as
      contemplated by, such Contribution Agreement, and the Persons receiving such
      Partnership Units shall become Partners and shall be deemed to have made a
      Capital Contribution as set forth on Exhibit 1.
      Exhibit 1
      also
      sets forth the initial number of Partnership Units owned by each Partner and
      the
      Percentage Interest of each Partner, which Percentage Interest shall be adjusted
      from time to time by the General Partner to reflect the issuance of additional
      Partnership Units, the redemption of Partnership Units, additional Capital
      Contributions and similar events having an effect on a Partner’s Percentage
      Interest. Except as set forth in Section 4.2 (regarding issuance of additional
      Partnership Units) or Section 7.6 (regarding withholding obligations), no
      Partner shall be required under any circumstances to contribute to the capital
      of the Partnership any amount beyond that sum required pursuant to this Article
      IV.

     

    (B) Anything
      in the foregoing Section 4.1(A) or elsewhere in this Agreement notwithstanding,
      the Partnership Units held by the General Partner shall, at all times, be deemed
      to be General Partner units and shall constitute the General Partner
      Interest.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    

     

    Section
      4.2 Additional
      Partnership Interests.

     

    (A) The
      Partnership may issue additional limited partnership interests in the form
      of
      Partnership Units for any Partnership purpose at any time or from time to time,
      to any Partner or other Person (other than the General Partner, except in
      accordance with Section 4.2(B) below).

     

    (B) The
      Partnership also may from time to time issue to the General Partner additional
      Partnership Units or other Partnership Interests in such classes and having
      such
      designations, preferences and relative rights (including preferences and rights
      senior to the existing Limited Partner Interests) as shall be determined by
      the
      General Partner in accordance with the Act and governing law. Except as provided
      in Article IX, any such issuance of Partnership Units or Partnership Interests
      to the General Partner shall be conditioned upon (i) the undertaking by the
      General Partner of a related issuance of its capital stock (with such shares
      having designations, rights and preferences such that the economic rights of
      the
      holders of such capital stock are substantially similar to the rights of the
      additional Partnership Interests issued to the General Partner) and the General
      Partner making a Capital Contribution (a) in an amount equal to the net proceeds
      raised in the issuance of such capital stock, in the event such capital stock
      is
      sold for cash or cash equivalents or (b) the property received in consideration
      for such capital stock, in the event such capital stock is issued in
      consideration for other property or (ii) the issuance by the General Partner
      of
      capital stock under any stock option or bonus plan and the General Partner
      making a Capital Contribution in an amount equal to the exercise price of the
      option exercised pursuant to such stock option or other bonus plan.

     

    (C) Except
      as
      contemplated by Article IX (regarding redemptions) or Section 4.2(B), the
      General Partner shall not issue any (i) additional REIT Shares, (ii) rights,
      options or warrants containing the right to subscribe for or purchase REIT
      Shares or (iii) securities convertible or exchangeable into REIT Shares
      (collectively, “Additional REIT Securities”) other than to all holders of REIT
      Shares, pro rata, unless (x) the Partnership issues to the General Partner
      (i)
      Partnership Interests, (ii) rights, options or warrants containing the right
      to
      subscribe for or purchase Partnership Interests or (iii) securities convertible
      or exchangeable into Partnership Interests such that the General Partner
      receives an economic interest in the Partnership substantially similar to the
      economic interest in the General Partner represented by the Additional REIT
      Securities and (y) the General Partner contributes to the Partnership the net
      proceeds from, or the property received in consideration for, the issuance
      of
      the Additional REIT Securities and the exercise of any rights contained in
      any
      Additional REIT Securities.

     

    Section
      4.3 No
      Third Party Beneficiaries.  The
      foregoing provisions of this Article IV are not intended to be for the
      benefit of any creditor of the Partnership or other Person to whom any debts,
      liabilities or obligations are owed by (or who otherwise has any claim against)
      the Partnership or any of the Partners and no such creditor or other Person
      shall obtain any right under any such foregoing provision against the
      Partnership or any of the Partners by reason of any debt, liability or
      obligation (or otherwise).

     

    Section
      4.4 Capital
      Accounts.

     

    
    

    (A) The
      Partnership shall establish and maintain a separate Capital Account for each
      Partner in accordance with Code Section 704 and Treasury Regulations Section
      1.704-1(b)(2)(iv). The Capital Account of each Partner shall be credited
      with:

     

    (1) the
      amount of all Capital Contributions made to the Partnership by such Partner
      in
      accordance with this Agreement; plus

     

    (2) all
      income and gain of the Partnership computed in accordance with this Section
      4.4
      and allocated to such Partner pursuant to Article V (including for purposes
      of
      this Section 4.4(A), income and gain exempt from tax);

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    and
      shall
      be debited with the sum of:

     

    (1) all
      losses or deductions of the Partnership computed in accordance with this Section
      4.4 and allocated to such Partner pursuant to Article V,

     

    (2) such
      Partner’s distributive share of expenditures of the Partnership described in
      Code Section 705(a)(2)(B), and

     

    (3) all
      cash
      and the Agreed Value (reduced to take into account the amount of any related
      indebtedness assumed by the Partner, or to which the distributed property is
      subject) of any property actually distributed or deemed distributed by the
      Partnership to such Partner pursuant to the terms of this
      Agreement.

     

    Any
      reference in any section or subsection of this Agreement to the Capital Account
      of a Partner shall be deemed to refer to such Capital Account as the same may
      be
      credited or debited from time to time as set forth above.

     

    (B) For
      purposes of computing the amount of any item of income, gain, deduction or
      loss
      to be reflected in the Partners’ Capital Accounts, the determination,
      recognition and classification of each such item shall be the same as its
      determination, recognition and classification for federal income tax purposes,
      determined in accordance with Code Section 703(a) and accounting for those
      adjustments set forth in the definition of Profits and Losses, with the
      following additional adjustments:

     

    (1) the
      computation of all items of income, gain, loss and deduction shall be made
      without regard to any Code Section 754 election that may be made by the
      Partnership, except to the extent required in accordance with the provisions
      of
      Treasury Regulations Section 1.704-1(b)(2)(iv)(m); and

     

    (2) in
      the
      event the Book Value of any Partnership Asset is adjusted pursuant to Section
      4.4(D) below, the amount of such adjustment shall be treated as gain or loss
      from the disposition of such asset.

     

    (C) Any
      transferee of a Partnership Interest shall succeed to a pro
      rata
      portion
      of the transferor’s Capital Account transferred.

     

    (D) Consistent
      with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv)(f),
      (i) immediately prior to the acquisition of an additional Partnership
      Interest by any new or existing Partner in connection with the contribution
      of
      money or other property (other than a de
      minimis
      amount)
      to the Partnership, (ii) immediately prior to the distribution by the
      Partnership to a Partner of Partnership property (other than a de
      minimis
      amount)
      as consideration for a Partnership Interest, (iii) immediately prior to the
      liquidation of the Partnership as defined in Treasury Regulations Section
      1.704-1(b)(2)(ii)(g) and (iv) immediately prior to any other event for which
      the
      Treasury Regulation Section 1.704-1(b)(2)(iv)(f) permits an adjustment to book
      value, the Book Value of all Partnership Assets shall be revalued upward or
      downward to reflect the fair market value of each such Partnership Asset as
      determined by the General Partner using such reasonable method of valuation
      as
      it may adopt.

     

    (E) The
      foregoing provisions of this Section 4.4 are intended to comply with Treasury
      Regulations Section 1.704-1(b) and shall be interpreted and applied in a manner
      consistent with such Treasury Regulations. In the event the General Partner
      shall determine that it is prudent to modify the manner in which the Partners’
      Capital Accounts are computed hereunder in order to comply with such Treasury
      Regulations, the General Partner may make such modification if such modification
      is not likely to have a material effect on the amount distributable to any
      Partner under the terms of this Agreement and the General Partner notifies
      the
      other Partners in writing of such modification prior to making such
      modification.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    

     

    Section
      4.5 Return
      of Capital Account; Interest. 
      Except as otherwise specifically provided in this Agreement, (i) no Partner
      shall have any right to withdraw or reduce its Capital Contributions or Capital
      Account, or to demand and receive property other than cash from the Partnership
      in return for its Capital Contributions or Capital Account; (ii) no Partner
      shall have any priority over any other Partners as to the return of its Capital
      Contributions or Capital Account; (iii) any return of Capital Contributions
      or
      Capital Accounts to the Partners shall be solely from the Partnership Assets,
      and no Partner shall be personally liable for any such return; and (iv) no
      interest shall be paid by the Partnership on Capital Contributions or on
      balances in Partners’ Capital Accounts.

     

    Section
      4.6 Preemptive
      Rights.
      No
      Person shall have any preemptive or similar rights with respect to the issuance
      or sale of additional Partnership Units.

     

    Section
      4.7 REIT
      Share Purchases.
      If the
      General Partner acquires additional REIT Shares pursuant to Article IX of the
      REIT Charter, the Partnership shall purchase from the General Partner that
      number of Partnership Units determined by applying the Conversion Multiple
      to
      the number of REIT Shares purchased by the General Partner at the same price
      and
      on the same terms as those upon which the General Partner purchased such REIT
      Shares.

     

    
      
        

      

    ARTICLE
      V -
      ALLOCATIONS AND DISTRIBUTIONS

    

    
      
        

      

    Section
      5.1 Limited
      Liability.
      For
      bookkeeping purposes, the Profits of the Partnership shall be shared, and the
      Losses of the Partnership shall be borne, by the Partners as provided in Section
      5.2 below; provided,
      however,
      that
      except as expressly provided in this Agreement, neither any Limited Partner
      (in
      its capacity as a Limited Partner), the Class C Limited Partner (in its capacity
      as Class C Limited Partner), the Class F Limited Partner (in its capacity as
      Class F Limited Partner), the Class G Limited Partner (in its capacity as Class
      G Limited Partner) nor the Class I Limited Partner (in its capacity as Class
      I
      Limited Partner) shall be personally liable for losses, costs, expenses,
      liabilities or obligations of the Partnership in excess of its Capital
      Contribution required under Article IV hereof.

     

    Section
      5.2 Profits,
      Losses and Distributive Shares.

     

    (A) Profits.
      After
      giving effect to the special allocations, if any, provided in Section 5.2(C),
      (D), (I), (J), (K) and (L), Profits in each Fiscal Year shall be allocated
      in
      the following order:

     

    (1) First,
      to
      the General Partner until the cumulative Profits allocated to the General
      Partner under this Section 5.2(A)(1), whether in the current or in any prior
      Fiscal Year equal the cumulative Losses allocated to such Partner under Section
      5.2(B)(6), whether in the current or in any prior Fiscal Year;

     

    (2) Second,
      to the Class C Limited Partner, Class F Limited Partner, Class G Limited Partner
      and Class I Limited Partner, in proportion to the cumulative Losses allocated
      to
      each such Partner under Section 5.2(B)(5), whether in the current or in any
      prior Fiscal Year until the cumulative Profits allocated to each such Partner
      under this Section 5.2(A)(2) equal the cumulative Losses allocated to each
      such
      Partner under Section 5.2(B)(5), whether in the current or in any prior Fiscal
      Year;

     

    (3) Third,
      to
      each Partner in proportion to the cumulative Losses allocated to such Partner
      under Section 5.2(B)(4), whether in the current or in any prior Fiscal Year,
      until the cumulative Profits allocated to such Partner under this Section
      5.2(A)(3) equal the cumulative Losses allocated to such Partner under Section
      5.2(B)(4), whether in the current or in any prior Fiscal Year;

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    (4) Fourth,
      to the General Partner until the cumulative Profits allocated to the General
      Partner under this Section 5.2(A)(4), whether in the current or in any prior
      Fiscal Year equal the cumulative Losses allocated to such Partner under Section
      5.2(B)(3), whether in the current or in any prior Fiscal Year;

     

    (5) Fifth,
      to
      each Partner in proportion to the cumulative Losses allocated to such Partner
      under Section 5.2(B)(2), whether in the current or in any prior Fiscal Year,
      until the cumulative Profits allocated to such Partner under this Section
      5.2(A)(5) equal the cumulative Losses allocated to such Partner under Section
      5.2(B)(2), whether in the current or in any prior Fiscal Year;

     

    (6) Sixth,
      to
      each Partner in proportion to the cumulative Losses allocated to such Partner
      under Section 5.2(B)(1), whether in the current or in any prior Fiscal Year,
      until the cumulative Profits allocated to such Partner under this Section
      5.2(A)(6) equal the cumulative Losses allocated to such Partner under Section
      5.2(B)(1), whether in the current or in any prior Fiscal Year; and

     

    (7) Then,
      the
      balance, if any, to the Partners in proportion to their respective Percentage
      Interests.

     

    (B) Losses.
      After
      giving effect to the special allocations, if any, provided in Section 5.2(C),
      (D), (I), (J), (K) and (L), Losses in each Fiscal Year shall be allocated in
      the
      following order of priority:

     

    (1) First,
      to
      the Partners (other than the Class C Limited Partner, the Class F Limited
      Partner, the Class G Limited Partner and the Class I Limited Partner), in
      proportion to their respective Percentage Interests, but not in excess of the
      positive Adjusted Capital Account balance of any Partner prior to the allocation
      provided for in this Section 5.2(B)(1);

     

    (2) Second,
      to the Partners (other than the Class C Limited Partner, the Class F Limited
      Partner, the Class G Limited Partner and the Class I Limited Partner) with
      positive Adjusted Capital Account balances prior to the allocation provided
      for
      in this Section 5.2(B)(2), in proportion to the amount of such balances until
      all such balances are reduced to zero;

     

    (3) Third,
      to
      the General Partner until (i) the excess of (a) the cumulative Losses allocated
      under this Section 5.2(B)(3), whether in the current or in any prior Fiscal
      Year, over (b) the cumulative Profits allocated under Section 5.2(A)(4), whether
      in the current or in any prior Fiscal Year, equals (ii) the excess of (a) the
      amount of Recourse Liabilities over (b) the Aggregate Protected
      Amount;

     

    (4) Fourth,
      to and among the Contributor Partners, in accordance with their respective
      Protected Amounts, until the excess of (a) the cumulative Losses allocated
      under
      this Section 5.2(B)(4), whether in the current or in any prior Fiscal Year,
      over
      (b) the
      cumulative Profits allocated under 5.2(A)(3), whether in the current or in
      any
      prior Fiscal Year, equals the Aggregate Protected Amount (as of the close of
      the
      Fiscal Year to which such allocation relates);

     

    (5) Fifth,
      to
      the Class C Limited Partner, the Class F Limited Partner, the Class G Limited
      Partner and the Class I Limited Partner, in accordance with their respective
      Adjusted Capital Accounts, until their Adjusted Capital Accounts are reduced
      to
      zero; and

     

    (6) Thereafter,
      to the General Partner;

     

    provided,
      however,
      (i)
      that, from and following the first Fiscal Year upon which a Contributor Partner
      is no longer a Partner of the Partnership, the provisions of this Section 5.2(B)
      shall be null, void and without further force and effect with respect to such
      Contributor Partner; (ii) that this Section 5.2(B) shall control,
      notwithstanding any reallocation or adjustment of taxable income, loss or other
      items by the Internal Revenue Service or any other taxing 

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    authority;
      provided,
      however,
      that
      neither the Partnership nor the General Partner (nor any of their respective
      affiliates) is required to indemnify any Contributor Partner (or its affiliates)
      for the loss of any tax benefit resulting from any reallocation or adjustment
      of
      taxable income, loss or other items by the Internal Revenue Service or other
      taxing authority; and (iii) that, during such period as there are Contributor
      Partners in the Partnership, the provisions of Section 5.2(B)(4) shall not
      be
      amended in a manner which adversely affects the Contributor Partners (without
      the consent of each Contributor Partner so affected).

     

    (C) Special
      Allocations.
      Except
      as otherwise provided in this Agreement, the following special allocations
      will
      be made in the following order and priority:

     

    (1) Partnership
      Minimum Gain Chargeback.
      Notwithstanding any other provision of this Article V, if there is a net
      decrease in Partnership Minimum Gain during any tax year or other period for
      which allocations are made, each Partner will be specially allocated items
      of
      Partnership income and gain for that tax year or other period (and, if
      necessary, subsequent periods) in an amount equal to such Partner’s share of the
      net decrease in Partnership Minimum Gain during such tax year or other period
      determined in accordance with Treasury Regulations Section 1.704-2(g).
      Allocations pursuant to the preceding 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
      Treasury Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This Section
      5.2(C)(1) is intended to comply with the minimum gain chargeback requirements
      set forth in Treasury Regulations Section 1.704-2(f) and shall be interpreted
      consistently therewith, including the exceptions to the minimum gain chargeback
      requirement set forth in Treasury Regulations Section 1.704-2(f) and (3). If
      the
      General Partner concludes, after consultation with tax counsel, that the
      Partnership meets the requirements for a waiver of the minimum gain chargeback
      requirement as set forth in Treasury Regulations Section 1.704-2(f)(4), the
      General Partner may take steps reasonably necessary or appropriate in order
      to
      obtain such waiver.

     

    (2) Partner
      Nonrecourse Debt Minimum Gain Chargeback.
      Notwithstanding any other provision of this Section (other than Section
      5.2(C)(1) which shall be applied before this Section 5.2(C)(2)), if there is
      a
      net decrease in Partner Minimum Gain during any tax year or other period for
      which allocations are made, each Partner with a share of Partner Minimum Gain
      determined in accordance with Treasury Regulations Section 1.704-2(i)(5) shall
      be specially allocated items of Partnership income and gain for that period
      (and, if necessary, subsequent periods) in an amount equal to such Partner’s
      share of the net decrease in Partner Minimum Gain determined in accordance
      with
      Treasury Regulations Section 1.704-2(i)(4). The items to be so allocated shall
      be determined in accordance with Treasury Regulations Sections 1.704-2(i)(4)
      and
      1.704-2(j)(2)(ii). This Section 5.2(C)(2) is intended to comply with the minimum
      gain chargeback requirements of Treasury Regulations Section and shall be
      interpreted consistently therewith, including the exceptions set forth in
      Treasury Regulations Section 1.704-2(f)(2) and (3) to the extent such exceptions
      apply to Treasury Regulations Sections 1.704-2(i)(4). If the General Partner
      concludes, after consultation with tax counsel, that the Partnership meets
      the
      requirements for a waiver of the Partner Minimum Gain chargeback requirement
      set
      forth in Treasury Regulation 1.704-2(f), but only to the extent such exception
      applies to Treasury Regulations Section 1.704-2(i)(4), the General Partner
      may
      take steps necessary or appropriate to obtain such waiver.

     

    (3) Qualified
      Income Offset.
      A
      Partner who unexpectedly receives any adjustment, allocation or distribution
      described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6)
      will be specially allocated items of Partnership income and gain in an amount
      and manner sufficient to eliminate, to the extent required by Treasury
      Regulations 1.704-1(b)(2)(ii)(d), the Adjusted Capital Account Deficit of the
      Partner as quickly as possible, provided that an allocation pursuant to this
      Section 5.2(C)(3) shall be made if and only to the extent that such Partner
      would have an Adjusted Capital Account Deficit after all other allocations
      provided for in this Article V have been tentatively made as if this Section
      5.2(C)(3) were not contained in this Agreement.

     

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    (4) Partnership
      Nonrecourse Deductions.
      Partnership Nonrecourse Deductions for any taxable year or other period for
      which allocations are made will be allocated among the Partners in proportion
      to
      their respective Percentage Interests.

     

    (5) Partner
      Nonrecourse Deductions.
      Notwithstanding anything to the contrary in this Agreement, any Partner
      Nonrecourse Deductions for any taxable year or other period for which
      allocations are made will be allocated to the Partner who bears the economic
      risk of loss with respect to the liability to which the Partner Nonrecourse
      Deductions are attributable in accordance with Treasury Regulations Section
      1.704-2(i).

     

    (6) Code
      Section 754 Adjustments.
      To the
      extent an adjustment to the adjusted tax basis of any Partnership asset under
      Code Section 734(b) or 743(b) is required to be taken into account in
      determining Capital Accounts under Treasury Regulations Section
      1.704-1(b)(2)(iv)(m)(2) or (4), the amount of the adjustment to the Capital
      Accounts will be treated as an item of gain (if the adjustment increases the
      basis of the asset) or loss (if the adjustment decreases the basis of the
      asset), and the gain or loss will be specially allocated to the Partners in
      a
      manner consistent with the manner in which their Capital Accounts are required
      to be adjusted under Treasury Regulations Section
      1.704-1(b)(2)(iv)(m).

     

    (7) Depreciation
      Recapture.
      In the
      event there is any recapture of Depreciation or investment tax credit, the
      allocation thereof shall be made among the Partners in the same proportion
      as
      the deduction for such Depreciation or investment tax credit was
      allocated.

     

    (8) Interest
      in Partnership.
      Notwithstanding any other provision of this Agreement, no allocation of Profit
      or Loss (or item of Profit or Loss) will be made to a Partner if the allocation
      would not have “economic effect” under Treasury Regulations Section
      1.704-1(b)(2)(ii)(a) or otherwise would not be in accordance with the Partner’s
      interest in the Partnership within the meaning of Treasury Regulations Section
      1.704-1(b)(3).

     

    (D) Curative
      Allocations.
      The
      allocations set forth in Section 5.2(C)(1) through (8) (the “Regulatory
      Allocations”) are intended to comply with certain requirements of Treasury
      Regulations Sections 1.704-1(b) and 1.704-2. The Regulatory Allocations may
      not
      be consistent with the manner in which the Partners intend to divide Partnership
      distributions. Accordingly, the General Partner is authorized to further
      allocate Profits, Losses, and other items among the Partners in a reasonable
      manner so as to prevent the Regulatory Allocations from distorting the manner
      in
      which Partnership distributions would be divided among the Partners under
      Section 5.3, but for application of the Regulatory Allocations. In general,
      the
      reallocation will be accomplished by specially allocating other Profits, Losses
      and items of income, gain, loss and deduction, to the extent they exist, among
      the Partners so that the net amount of the Regulatory Allocations and the
      special allocations to each Partner is zero. The General Partner may accomplish
      this result in any reasonable manner that is consistent with Code Section 704
      and the related Treasury Regulations.

     

    (E) Tax
      Allocations.

     

    (1) Except
      as
      otherwise provided in Section 5.2(E)(2), each item of income, gain, loss and
      deduction shall be allocated for federal income tax purposes in the same manner
      as each correlative item of income, gain, loss or deduction, is allocated for
      book purposes pursuant to the provisions of Section 5.1 hereof.

     

    (2) Notwithstanding
      anything to the contrary in this Article V, in an attempt to eliminate any
      Book-Tax Disparity with respect to a Contributed Property, items of income,
      gain, loss or deduction with respect to each such property shall be allocated
      for federal income tax purposes among the Partners as follows:

     

    (a) Depreciation,
      Amortization and Other Cost Recovery Items.
      In the
      case of each Contributed Property with a Book-Tax Disparity, any item of
      depreciation, amortization or other 

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    cost
      recovery allowance attributable to such property shall be allocated as follows:
      (x) first, to Partners (the “Non-Contributing Partners”) other than the Partners
      who contributed such property to the Partnership (or are deemed to have
      contributed the property pursuant to Section 4.1(A)) (the “Contributing
      Partners”) in an amount up to the book allocation of such items made to the
      Non-Contributing Partners pursuant to Section 5.1 hereof, pro
      rata
      in
      proportion to the respective amount of book items so allocated to the
      Non-Contributing Partners pursuant to Section 5.1 hereof; and (y) any remaining
      depreciation, amortization or other cost recovery allowance to the Contributing
      Partners in proportion to their Percentage Interests. In no event shall the
      total depreciation, amortization or other cost recovery allowance allocated
      hereunder exceed the amount of the Partnership’s depreciation, amortization or
      other cost recovery allowance with respect to such property.

     

    (b) Gain
      or Loss on Disposition.
      In the
      event the Partnership sells or otherwise disposes of a Contributed Property
      with
      a Book-Tax Disparity, any gain or loss recognized by the Partnership in
      connection with such sale or other disposition shall be allocated among the
      Partners as follows: (x) first, any gain or loss shall be allocated to the
      Contributing Partners in proportion to their Percentage Interests to the extent
      required to eliminate any Book-Tax Disparity with respect to such property;
      and
      (y) any remaining gain or loss shall be allocated among the Partners in the
      same
      manner that the correlative items of book gain or loss are allocated among
      the
      Partners pursuant to Section 5.1 hereof.

     

    (3) In
      the
      event the Book Value of a Partnership Asset (including a Contributed Property)
      is adjusted pursuant to Section 4.4(D) hereof, all items of income, gain, loss
      or deduction in respect of such property shall be allocated for federal income
      tax purposes among the Partners in the same manner as provided in Section
      5.2(E)(2) hereof to take into account any variation between the fair market
      value of the property, as determined by the General Partner using such
      reasonable method of valuation as it may adopt, and the Book Value of such
      property, both determined as of the date of such adjustment.

     

    (4) The
      General Partner shall have the authority to elect alternative methods to
      eliminate the Book-Tax Disparity with respect to one or more Contributed
      Properties, as permitted by Treasury Regulations Sections 1.704-3 and 1.704-3T,
      and such election shall be binding on all of the Partners.

     

    (5) The
      Partners hereby intend that the allocation of tax items pursuant to this Section
      5.2(E) comply with the requirements of Code Section 704(c) and Treasury
      Regulations Sections 1.704-3 and 1.704-3T.

     

    (6) The
      allocation of items of income, gain, loss or deduction pursuant to this Section
      5.2(E) are solely for federal, state and local income tax purposes, and the
      Capital Account balances of the Partners shall be adjusted solely for
      allocations of “book” items in respect of Partnership Assets pursuant to Section
      5.1 hereof.

     

    (F) Other
      Allocation Rules.
      The
      following rules will apply to the calculation and allocation of Profits, Losses
      and other items:

     

    (1) Except
      as
      otherwise provided in this Agreement, all Profits, Losses and other items
      allocated to the Partners will be allocated among them in proportion to their
      Percentage Interests.

     

    (2) For
      purposes of determining the Profits, Losses or any other item allocable to
      any
      period, Profits, Losses and other items will be determined on a daily, monthly
      or other basis, as determined by the General Partner using any permissible
      method under Code Section 706 and the related Treasury Regulations.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    (3) Except
      as
      otherwise provided in this Agreement, all items of Partnership income, gain,
      loss and deduction, and other allocations not provided for in this Agreement
      will be divided among the Partners in the same proportions as they share Profits
      and Losses, provided that any credits shall be allocated in accordance with
      Treasury Regulations Section 1.704-1(b)(4)(ii).

     

    (4) For
      purposes of Treasury Regulations Section 1.752-3(a), the Partners hereby agree
      that any Nonrecourse Liabilities of the Partnership in excess of the sum of
      (i)
      the Partnership Minimum Gain and (ii) the aggregate amount of taxable gain
      that
      would be allocated to the Partners under Section 704(c) (or in the same manner
      as Section 704(c) in connection with a revaluation of Partnership property)
      if
      the Partnership disposed of (in a taxable transaction) all Partnership property
      subject to one or more Nonrecourse Liabilities of the Partnership in full
      satisfaction of such Liabilities and for no other consideration, shall be
      allocated among the Partners in accordance with their respective Partnership
      Interests; provided that the General Partner shall have discretion in any Fiscal
      Year to allocate such excess Nonrecourse Liabilities among the Partners (a)
      in a
      manner reasonably consistent with allocations (that have substantial economic
      effect) of some other significant item of Partnership income or gain or (b)
      in
      accordance with the manner in which it is reasonably expected that the
      deductions attributable to the excess Nonrecourse Liabilities will be
      allocated.

     

    (G) Partner
      Acknowledgment.
      The
      Partners agree to be bound by the provisions of this Section 5.2 in reporting
      their shares of Partnership income, gain, loss, deduction and credit for income
      tax purposes.

     

    (H) Regulatory
      Compliance.
      The
      foregoing provisions of this Section 5.2 relating to the allocation of Profits,
      Losses and other items for federal income tax purposes are intended to comply
      with Treasury Regulations Sections 1.704-1(b), 1.704-2, 1.704-3 and 1.704-3T
      and
      shall be interpreted and applied in a manner consistent with such Treasury
      Regulations.

     

    (I) Class
      C Priority Allocation.
      The
      holders of the Class C Units shall be allocated gross income such that, from
      the
      inception of the partnership through the end of the Fiscal Year to which the
      allocation relates, including the year of liquidation of the Partnership in
      accordance with Article X, the sum of all priority allocations pursuant to
      this
      Section 5.2(I) equals (or approaches as nearly as possible) the sum of all
      Class
      C Priority Return Amounts accrued through the end of the fiscal year to which
      the allocation relates.

     

    (J) Class
      F Priority Allocation.
      The
      holders of Class F Units shall be allocated gross income such that, from the
      inception of the partnership through the end of the fiscal year to which the
      allocation relates, including the year of liquidation of the Partnership in
      accordance with Article X, the sum of all priority allocations pursuant to
      this
      Section 5.2(J) equals (or approaches as nearly as possible) the sum of all
      Class
      F Priority Return Amounts accrued through the end of the fiscal year to which
      the allocation relates.

     

    (K) Class
      G Priority Allocation.
      The
      holders of Class G Units shall be allocated gross income such that, from the
      inception of the partnership through the end of the fiscal year to which the
      allocation relates, including the year of liquidation of the Partnership in
      accordance with Article X, the sum of all priority allocations pursuant to
      this
      Section 5.2(K) equals (or approaches as nearly as possible) the sum of all
      Class
      G Priority Return Amounts accrued through the end of the fiscal year to which
      the allocation relates.

     

    (L) Class
      I Priority Allocation.
      The
      holders of Class I Units shall be allocated gross income such that, from the
      inception of the partnership through the end of the fiscal year to which the
      allocation relates, including the year of liquidation of the Partnership in
      accordance with Article X, the sum of all priority allocations pursuant to
      this
      Section 5.2(L) equals (or approaches as nearly as possible) the sum of all
      Class
      I Priority Return Amounts accrued through the end of the fiscal year to which
      the allocation relates.

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    

     

    Section
      5.3 Distributions..

     

    (A) The
      General Partner shall cause the Partnership to distribute to the holder of
      each
      Class C Unit an amount in cash equal to the cumulative undistributed Class
      C
      Priority Return Amount with respect to each such unit (provided that the amount
      distributable pursuant to this Section 5.3(A) shall not be in excess of the
      Distributable Cash) on March 31, June 30, September 30 and December 31 of each
      year, commencing on September 30, 1997 (or in the case of a Class C Unit with
      a
      Class C Deemed Original Issue Date after September 30, 1997, on the first such
      distribution date following the applicable Class C Deemed Original Issue Date);
      provided that, if any such distribution date shall be a Saturday, Sunday or
      day
      on which banking institutions in the State of New York are authorized or
      obligated by law to close, or a day which is declared a national or New York
      State holiday (any of the foregoing, a “Non-business Day”), then such
      distribution shall be made on the next succeeding day which is not a
      Non-business Day. Class C Priority Return Amounts that are distributable with
      respect to a period greater or less than a full Class C Distribution Period
      shall be computed on the basis of a 360-day year consisting of 12 30-day
      months.

     

    (B) The
      General Partner shall cause the Partnership to distribute to the holder of
      each
      Class F Unit an amount in cash equal to the cumulative undistributed Class
      F
      Priority Return Amount with respect to each such unit (provided that the amount
      distributable pursuant to this section 5.3(B) shall not be in excess of the
      Distributable Cash) on each Class F Distribution Date. 

     

    (C) The
      General Partner shall cause the Partnership to distribute to the holder of
      each
      Class G Unit an amount in cash equal to the cumulative undistributed Class
      G
      Priority Return Amount with respect to each such unit (provided that the amount
      distributable pursuant to this section 5.3(C) shall not be in excess of the
      Distributable Cash) on each Class G Distribution Date. 

     

    (D) The
      General Partner shall cause the Partnership to distribute to the holder of
      each
      Class I Unit an amount in cash equal to the cumulative undistributed Class
      I
      Priority Return Amount with respect to each such unit (provided that the amount
      distributable pursuant to this section 5.3(D) shall not be in excess of the
      Distributable Cash) on each Class I Distribution Date. 

     

    (E) After
      giving effect to Sections 5.3(A), (B), (C) and (D), if applicable, the General
      Partner shall have the authority to cause the Partnership to make distributions
      from time to time as it determines, including without limitation, distributions
      which are sufficient to enable the General Partner to (i) maintain its status
      as
      a REIT, (ii) avoid the imposition of any tax under Code Section 857 and (iii)
      avoid the imposition of any excise tax under Code Section 4981. Except as
      otherwise expressly set forth in this Section 5.3(E), all Distributions pursuant
      to this Section 5.3 shall be made on a pari
      passu
      basis.

     

    (F) Distributions
      pursuant to Section 5.3(E) shall be made pro
      rata
      among
      the Partners of record on the Record Date established by the General Partner
      for
      the distribution, in accordance with their respective Percentage Interests,
      without regard to the length of time the record holder has been such except
      that
      the first distribution paid on Units issued after June 1, 1996 shall be pro
      rated to reflect the actual portion of the period for which the distribution
      is
      being paid during which such Units were outstanding, or shall be in such other
      amount or computed on such other basis as may be agreed by the General Partner
      and the holders of such Units, provided that such other amount or the amount
      so
      computed, as applicable, may not exceed the aforementioned pro rated
      amount.

     

    (G) The
      General Partner shall use its reasonable efforts to make distributions to the
      Partners so as to preclude any distribution or portion thereof from being
      treated as part of a sale of property to the Partnership by a Partner under
      Section 707 of the Code or the Treasury 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 Partner
      being so treated.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    

     

    Section
      5.4 Distribution
      upon Redemption.
      Notwithstanding any other provision hereof, proceeds of (i) a Class
      C
      Redemption shall be distributed to the Class C Limited Partner in accordance
      with Section 9.1(C), (ii)  a Class F Redemption shall be distributed
      to the Class F Limited Partner in accordance with Section 9.1(D), (iii) a Class
      G Redemption shall be distributed to the Class G Limited Partner in accordance
      with Section 9.1(E) and (iv) a Class I Redemption shall be distributed to the
      Class I Limited Partner in accordance with Section 9.1(F).

     

    Section
      5.5 Distributions
      upon Liquidation.
      Notwithstanding any other provision hereof, proceeds of a Terminating Capital
      Transaction shall be distributed to the Partners in accordance with Section
      10.2.

     

    Section
      5.6 Amounts
      Withheld.
      All
      amounts withheld pursuant to the Code or any provision of state or local tax
      law
      and Section 7.6 of this Agreement with respect to any allocation, payment or
      distribution to the General Partner, the Class C Limited Partner, the Class
      F
      Limited Partner, the Class G Limited Partner, the Class I Limited Partner,
      the
      Limited Partners or Assignees shall be treated as amounts distributed to such
      General Partner, the Class C Limited Partner, the Class F Limited Partner,
      the
      Class G Limited Partner, the Class I Limited Partner, the Limited Partners
      or
      Assignees, as applicable, pursuant to Section 5.3 of this
      Agreement.

     

    
      
        

      

    ARTICLE
      VI -
      PARTNERSHIP MANAGEMENT

    
      
        

      

    

    Section
      6.1 Management
      and Control of Partnership Business..

     

    (A) Except
      as
      otherwise expressly provided or limited by the provisions of this Agreement,
      the
      General Partner shall have full, exclusive and complete discretion to manage
      the
      business and affairs of the Partnership, to make all decisions affecting the
      business and affairs of the Partnership and to take all such action as it deems
      necessary or appropriate to accomplish the purposes of the Partnership as set
      forth herein. Except as set forth in this Agreement, the Limited Partners shall
      not have any authority, right, or power to bind the Partnership, or to manage,
      or to participate in the management of the business and affairs of the
      Partnership in any manner whatsoever. Such management shall in every respect
      be
      the full and complete responsibility of the General Partner alone as herein
      provided.

     

    (B) In
      carrying out the purposes of the Partnership, the General Partner shall be
      authorized to take all actions it deems necessary and appropriate to carry
      on
      the business of the Partnership. The Limited Partners, the Class C Limited
      Partner, the Class F Limited Partner, the Class G Limited Partner and the Class
      I Limited Partner, by execution hereof, agree that the General Partner is
      authorized to execute, deliver and perform any agreement and/or transaction
      on
      behalf of the Partnership.

     

    (C) The
      General Partner and its Affiliates may acquire Limited Partner Interests from
      Limited Partners who agree so to transfer Limited Partner Interests or from
      the
      Partnership in accordance with Section 4.2(A). Any Limited Partner Interest
      acquired by the General Partner shall be converted into a General Partner
      Interest. Upon acquisition of any Limited Partner Interest, any Affiliate of
      the
      General Partner shall have all the rights of a Limited Partner.

     

    Section
      6.2 No
      Management by Limited Partners; Limitation of Liability..

     

    (A) Neither
      the Limited Partners, in their capacity as Limited Partners, the Class C Limited
      Partner, in its capacity as Class C Limited Partner, the Class F Limited
      Partner, in its capacity as Class F Limited Partner, the Class G Limited
      Partner, in its capacity as Class G Limited Partner, nor the Class I Limited
      Partner, in its capacity as Class I Limited Partner, shall take part in the
      day-to-day management, operation or control of the business and affairs of
      the
      Partnership or have any right, power, or authority to act for or on behalf
      of or
      to bind the Partnership or transact any business in the name of the Partnership.
      Neither the 

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    Limited
      Partners, the Class C Limited Partner, in its capacity as Class C Limited
      Partner, the Class F Limited Partner, in its capacity as Class F Limited
      Partner, the Class G Limited Partner, in its capacity as Class G Limited
      Partner, nor the Class I Limited Partner, in its capacity as Class I Limited
      Partner, shall have any rights other than those specifically provided herein
      or
      granted by law where consistent with a valid provision hereof. Any approvals
      rendered or withheld by the Limited Partners, the Class C Limited Partner,
      the
      Class F Limited Partner, the Class G Limited Partner or the Class I Limited
      Partner pursuant to this Agreement shall be deemed as consultation with or
      advice to the General Partner in connection with the business of the Partnership
      and, in accordance with the Act, shall not be deemed as participation by the
      Limited Partners, the Class C Limited Partner, the Class F Limited Partner,
      the
      Class G Limited Partner or the Class I Limited Partner in the business of the
      Partnership and are not intended to create any inference that the Limited
      Partners, the Class C Limited Partner, the Class F Limited Partner, the Class
      G
      Limited Partner or the Class I Limited Partner should be classified as general
      partners under the Act.

     

    (B) Neither
      the Limited Partner, the Class C Limited Partner, the Class F Limited Partner,
      the Class G Limited Partner nor the Class I Limited Partner, shall have any
      liability under this Agreement except with respect to withholding under Section
      7.6, in connection with a violation of any provision of this Agreement by such
      Limited Partner, the Class C Limited Partner, the Class F Limited Partner,
      the
      Class G Limited Partner or the Class I Limited Partner or as provided in the
      Act.

     

    (C) The
      General Partner shall not take any action which would subject a Limited Partner
      (in its capacity as Limited Partner), the Class C Limited Partner (in its
      capacity as Class C Limited Partner), the Class F Limited Partner (in its
      capacity as Class F Limited Partner), the Class G Limited Partner (in its
      capacity as Class G Limited Partner) or the Class I Limited Partner (in its
      capacity as Class I Limited Partner) to liability as a general
      partner.

     

    Section
      6.3 Limitations
      on Partners..

     

    (A) No
      Partner or Affiliate of a Partner shall have any authority to perform (i) any
      act in violation of any applicable law or regulation thereunder, (ii) any act
      prohibited by Section 6.2(C), or (iii) any act which is required to be Consented
      to or ratified pursuant to this Agreement without such Consent or
      ratification.

     

    (B) No
      action
      shall be taken by a Partner if it would cause the Partnership to be treated
      as
      an association taxable as a corporation for federal income tax purposes or,
      without the consent of the General Partner, as a publicly-traded partnership
      within the meaning of Section 7704 of the Code. A determination of whether
      such
      action will have the above described effect shall be based upon a declaratory
      judgment or similar relief obtained from a court of competent jurisdiction,
      a
      favorable ruling from the IRS or the receipt of an opinion of
      counsel.

     

    Section
      6.4 Business
      with Affiliates..

     

    (A) The
      General Partner, in its discretion, may cause the Partnership to transact
      business with any Partner or its Affiliates for goods or services reasonably
      required in the conduct of the Partnership’s business; provided that any such
      transaction shall be effected only on terms competitive with those that may
      be
      obtained in the marketplace from unaffiliated Persons. The foregoing proviso
      shall not apply to transactions between the Partnership and its Subsidiaries.
      In
      addition, neither the General Partner nor any Affiliate of the General Partner
      may sell, transfer or otherwise convey any property to, or purchase any property
      from, the Partnership, except (i) on terms competitive with those that may
      be
      obtained in the marketplace from unaffiliated Persons or (ii) where the General
      Partner determines, in its sole judgment, that such sale, transfer or conveyance
      confers benefits on the General Partner or the Partnership in respect of matters
      of tax or corporate 

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    or
      financial structure; provided,
      in the
      case of this clause (ii), such sale, transfer, or conveyance is not being
      effected for the purpose of materially disadvantaging the Limited
      Partners.

     

    (B) In
      furtherance of Section 6.4(A), the Partnership may lend or contribute to its
      Subsidiaries on terms and conditions established by the General
      Partner.

     

    Section
      6.5 Compensation;
      Reimbursement of Expenses.
      In
      consideration for the General Partner’s services to the Partnership in its
      capacity as General Partner, the Partnership shall pay on behalf of or reimburse
      to the General Partner (i) all expenses of the General Partner incurred in
      connection with the management of the business and affairs of the Partnership,
      including all employee compensation of employees of the General Partner and
      indemnity or other payments made pursuant to agreements entered into in
      furtherance of the Partnership’s business, (ii) all amounts payable by the
      General Partner under the Registration Rights Agreement and (iii) all general
      and administrative expenses incurred by the General Partner. Except as otherwise
      set forth in this Agreement, the General Partner shall be fully and entirely
      reimbursed by the Partnership for any and all direct and indirect costs and
      expenses incurred in connection with the organization and continuation of the
      Partnership pursuant to this Agreement. In addition, the General Partner shall
      be reimbursed for all expenses incurred by the General Partner in connection
      with (i) the initial public offering of REIT Shares by the General Partner
      and
      (ii) any other issuance of additional Partnership Interests or REIT
      Shares.

     

    Section
      6.6 Liability
      for Acts and Omissions..

     

    (A) The
      General Partner shall not be liable, responsible or accountable in damages
      or
      otherwise to the Partnership or any of the other Partners for any act or
      omission performed or omitted in good faith on behalf of the Partnership and
      in
      a manner reasonably believed to be (i) within the scope of the authority granted
      by this Agreement and (ii) in the best interests of the Partnership or the
      stockholders of the General Partner. In exercising its authority hereunder,
      the
      General Partner may, but shall not be under any obligation to, take into account
      the tax consequences to any Partner of any action it undertakes on behalf of
      the
      Partnership. Neither the General Partner nor the Partnership shall have any
      liability as a result of any income tax liability incurred by a Partner as
      a
      result of any action or inaction of the General Partner hereunder and, by their
      execution of this Agreement, the Limited Partners acknowledge the
      foregoing.

     

    (B) Unless
      otherwise prohibited hereunder, the General Partner shall be entitled to
      exercise any of the powers granted to it and perform any of the duties required
      of it under this Agreement directly or through any agent. The General Partner
      shall not be responsible for any misconduct or negligence on the part of any
      agent; provided that the General Partner selected or appointed such agent in
      good faith.

     

    The
      General Partner acknowledges that it owes fiduciary duties both to its
      stockholders and to the Limited Partners and it shall use its reasonable efforts
      to discharge such duties to each; provided,
      however,
      that in
      the event of a conflict between the interests of the stockholders of the General
      Partner and the interests of the Limited Partners, the Limited Partners agree
      that the General Partner shall discharge its fiduciary duties to the Limited
      Partners by acting in the best interests of the General Partner’s stockholders.
      Nothing contained in the preceding sentence shall be construed as entitling
      the
      General Partner to realize any profit or gain from any transaction between
      the
      General Partner and the Partnership (except in connection with a distribution
      in
      accordance with this Agreement), including from the lending of money by the
      General Partner to the Partnership or the contribution of property by the
      General Partner to the Partnership, it being understood that in any such
      transaction the General Partner shall be entitled to cost recovery
      only.

     

    Section
      6.7 Indemnification..

     

    (A) The
      Partnership shall indemnify the General Partner and each director, officer
      and
      stockholder of the General Partner and each Person (including any Affiliate)
      designated as an agent by the 

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

    General
      Partner in its reasonable discretion (each, an “Indemnified Party”) to the
      fullest extent permitted under the Act (including any procedures set forth
      therein regarding advancement of expenses to such Indemnified Party) from and
      against any and all losses, claims, damages, liabilities, expenses (including
      reasonable attorneys’ fees), judgments, fines, settlements and any other amounts
      arising out of or in connection with any claims, demands, actions, suits or
      proceedings (civil, criminal or administrative) relating to or resulting
      (directly or indirectly) from the operations of the Partnership, in which such
      Indemnified Party becomes involved, or reasonably believes it may become
      involved, as a result of the capacity referred to above.

     

    (B) The
      Partnership shall have the authority to purchase and maintain such insurance
      policies on behalf of the Indemnified Parties as the General Partner shall
      determine, which policies may cover those liabilities the General Partner
      reasonably believes may be incurred by an Indemnified Party in connection with
      the operation of the business of the Partnership. The right to procure such
      insurance on behalf of the Indemnified Parties shall in no way mitigate or
      otherwise affect the right of any such Indemnified Party to indemnification
      pursuant to Section 6.7(A) hereof.

     

    (C) The
      provisions of this Section 6.7 are for the benefit of the Indemnified Parties,
      their heirs, successors, assigns and administrators and shall not be deemed
      to
      create any rights in or benefit to any other Person.

     

    
      
        

      

    ARTICLE
      VII -
      ADMINISTRATIVE, FINANCIAL AND TAX MATTERS

    

    
      
        

      

    Section
      7.1 Books
      and Records.
      The
      General Partner shall maintain at the office of the Partnership full and
      accurate books of the Partnership showing all receipts and expenditures, assets
      and liabilities, profits and losses, names and current addresses of Partners,
      and all other records necessary for recording the Partnership’s business and
      affairs. Each Limited Partner shall have, upon written demand and at such
      Limited Partner’s expense, the right to receive true and complete information
      regarding Partnership matters to the extent required (and subject to the
      limitations) under Delaware law.

     

    Section
      7.2 Annual
      Audit and Accounting.
      The
      books and records of the Partnership shall be kept for financial and tax
      reporting purposes on the accrual basis of accounting in accordance with
      generally accepted accounting principles (“GAAP”). The accounts of the
      Partnership shall be audited annually by a nationally recognized accounting
      firm
      of independent public accountants selected by the General Partner (the
“Independent Accountants”).

     

    Section
      7.3 Partnership
      Funds.
      The
      General Partner shall have responsibility for the safekeeping and use of all
      funds and assets of the Partnership, whether or not in its direct or indirect
      possession or control. All funds of the Partnership not otherwise invested
      shall
      be deposited in one or more accounts maintained in such banking institutions
      as
      the General Partner shall determine, and withdrawals shall be made only in
      the
      regular course of Partnership business on such signatures as the General Partner
      may from time to time determine.

     

    Section
      7.4 Reports
      and Notices.
      The
      General Partner shall provide all Partners with the following reports no later
      than the dates indicated or as soon thereafter as circumstances
      permit:

     

    (A) By
      March
      31 of each year, IRS Form 1065 and Schedule K-1, or similar forms as may be
      required by the IRS, stating each Partner’s allocable share of income, gain,
      loss, deduction or credit for the prior Fiscal Year;

     

    (B) Within
      ninety (90) days after the end of each of the first three (3) fiscal quarters,
      as of the last day of the fiscal quarter, a report containing unaudited
      financial statements of the Partnership, or of 

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

    the
      General Partner if such statements are prepared on a consolidated basis with
      the
      General Partner, and such other information as may be legally required or
      determined to be appropriate by the General Partner; and

     

    (C) Within
      one hundred twenty (120) days after the end of each Fiscal Year, as of the
      close
      of the Fiscal Year, an annual report containing audited financial statements
      of
      the Partnership, or of the General Partner if such statements are prepared
      on a
      consolidated basis with the General Partner, presented in accordance with GAAP
      and certified by the Independent Accountants.

     

    Section
      7.5 Tax
      Matters..

     

    (A) The
      General Partner shall be the Tax Matters Partner of the Partnership for federal
      income tax matters pursuant to Code Section 6231(a)(7)(A). The Tax Matters
      Partner is authorized and required to represent the Partnership (at the expense
      of the Partnership) in connection with all examinations of the affairs of the
      Partnership by any federal, state, or local tax authorities, including any
      resulting administrative and judicial proceedings, and to expend funds of the
      Partnership for professional services and costs associated therewith. The Tax
      Matters Partner shall deliver to the Limited Partners within ten (10) business
      days of the receipt thereof a copy of any notice or other communication with
      respect to the Partnership received from the IRS (or other governmental tax
      authority), or any court, in each case with respect to any administrative or
      judicial proceeding involving the Partnership. The Partners agree to cooperate
      with each other in connection with the conduct of all proceedings pursuant
      to
      this Section 7.5(A).

     

    (B) The
      Tax
      Matters Partner shall receive no compensation for its services in such capacity.
      If the Tax Matters Partner incurs any costs related to any tax audit,
      declaration of any tax deficiency or any administrative proceeding or litigation
      involving any Partnership tax matter, such amount shall be an expense of the
      Partnership and the Tax Matters Partner shall be entitled to full reimbursement
      therefor.

     

    (C) The
      General Partner shall cause to be prepared all federal, state and local income
      tax returns required of the Partnership at the Partnership’s
      expense.

     

    (D) Except
      as
      set forth herein, the General Partner shall determine whether to make (and,
      if
      necessary, revoke) any tax election available to the Partnership under the
      Code
      or any state tax law; provided,
      however,
      upon
      the request of any Partner, the General Partner shall make the election under
      Code Section 754 and the Treasury Regulations promulgated thereunder. The
      Partnership shall elect to deduct expenses, if any, incurred by it in organizing
      the Partnership in accordance with the provisions of Code Section
      709.

     

    Section
      7.6 Withholding.
      Each
      Partner hereby authorizes the Partnership to withhold from or pay to any taxing
      authority on behalf of such Partner any tax that the General Partner determines
      the Partnership is required to withhold or pay with respect to any amount
      distributable or allocable to such Partner. Any amount paid to any taxing
      authority which does not constitute a reduction in the amount otherwise
      distributable to such Partner shall be treated as a loan from the Partnership
      to
      such Partner, which loan shall bear interest at the “prime rate” as published
      from time to time in The
      Wall Street Journal
      plus two
      (2) percentage points, and shall be repaid within ten (10) business days after
      request for repayment from the General Partner. The obligation to repay any
      such
      loan shall be secured by such Partner’s Partnership Interest and each Partner
      hereby grants the Partnership a security interest in his Partnership Interest
      for the purposes set forth in this Section 7.6, this Section 7.6 being intended
      to serve as a security agreement for purposes of the Uniform Commercial Code
      with the General Partner having in respect hereof all of the remedies of a
      secured party under the Uniform Commercial Code. Each Partner agrees to take
      such reasonable actions as the General Partner may request to perfect and
      continue the perfection of the security interest granted hereby. In the event
      any Partner fails to repay any deemed loan pursuant to this Section 7.6 the
      Partnership shall be entitled to avail itself of any rights and remedies it
      may
      have. Furthermore, upon the expiration of ten (10) business days after demand
      for payment, the General Partner shall have the right, but not the obligation,
      to make the

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    payment
      to the Partnership on behalf of the defaulting Partner and thereupon be
      subrogated to the rights of the Partnership with respect to such defaulting
      Partner. 

     

    
      
        

      

    ARTICLE
      VIII -
      TRANSFER OF PARTNERSHIP INTERESTS; ADMISSIONS OF PARTNERS

     

    
      
        

      

    

    

    Section
      8.1 Transfer
      by General Partner.
      The
      General Partner may not voluntarily withdraw or Transfer all or any portion
      of
      its General Partner Interest. Notwithstanding the foregoing, the General Partner
      may pledge its General Partner Interest in furtherance of the Partnership’s
      business (including without limitation, in connection with a loan agreement
      under which the Partnership is a borrower) without the consent of any
      Partner.

     

    Section
      8.2 Obligations
      of a Prior General Partner.
      Upon an
      Involuntary Withdrawal of the General Partner and the subsequent Transfer of
      the
      General Partner’s Interest, such General Partner shall (i) remain liable for all
      obligations and liabilities (other than Partnership liabilities payable solely
      from Partnership Assets) incurred by it as General Partner before the effective
      date of such event and (ii) pay all costs associated with the admission of
      its
      Successor General Partner. However, such General Partner shall be free of and
      held harmless by the Partnership against any obligation or liability incurred
      on
      account of the activities of the Partnership from and after the effective date
      of such event, except as provided in this Agreement.

     

    Section
      8.3 Successor
      General Partner.
      A
      successor to all of a General Partner’s General Partner Interest who is proposed
      to be admitted to the Partnership as a Successor General Partner shall be
      admitted as the General Partner, effective upon the Transfer. Any such
      transferee shall carry on the business of the Partnership without dissolution.
      In addition, the following conditions must be satisfied:

     

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

     

    (B) An
      amendment to this Agreement evidencing the admission of such Person as a General
      Partner shall have been executed by all General Partners and an amendment to
      the
      Certificate shall have been filed for recordation as required by the
      Act.

     

    (C) Any
      consent required under Section 10.1(A) hereof shall have been
      obtained.

     

    Section
      8.4 Restrictions
      on Transfer and Withdrawal by Limited Partner..

     

    (A) Subject
      to the provisions of Section 8.4(D), no Limited Partner may Transfer all or
      any
      portion of his Partnership Interest without first obtaining the Consent of
      the
      General Partner, which Consent may be granted or withheld in the sole and
      absolute discretion of the General Partner. Any such purported transfer
      undertaken without such Consent shall be considered to be null and void
ab
      initio
      and
      shall not be given effect. Each Limited Partner acknowledges that the General
      Partner has agreed not to grant any such consent prior to the Transfer
      Restriction Date.

     

    (B) No
      Limited Partner may withdraw from the Partnership other than as a result of
      a
      permitted Transfer (i.e.,
      a
      Transfer consented to as contemplated by clause (A) above or clause (D) below
      or
      a Transfer pursuant to clause (C) below) of all of his Partnership Units
      pursuant to this Article VIII or pursuant to a redemption or exchange of all
      of
      his Partnership Units pursuant to Article IX. Upon the permitted Transfer or
      redemption of all of a Limited Partner’s Partnership Units, such Limited Partner
      shall cease to be a Limited Partner.

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    (C) Upon
      the
      Involuntary Withdrawal of any Limited Partner (which shall under no circumstance
      cause the dissolution of the Partnership), the executor, administrator, trustee,
      guardian, receiver or conservator of such Limited Partner’s estate shall become
      a Substituted Limited Partner upon compliance with the provisions of Section
      8.5(A)(1)-(3).

     

    (D) Subject
      to Section 8.4(E), a Limited Partner may Transfer, with the Consent of the
      General Partner, all or a portion of his Partnership Units to (a) a parent
      or
      parents, spouse, natural or adopted descendant or descendants, spouse of such
      a
      descendant, or brother or sister, or a trust created by such Limited Partner
      for
      the benefit of such Limited Partner and/or any such person(s), of which trust
      such Limited Partner or any such person(s) is a trustee, (b) a corporation
      controlled by a Person or Persons named in (a) above, or (c) if the Limited
      Partner is an entity, its beneficial owners, and the General Partner shall
      grant
      its Consent to any Transfer pursuant to this Section 8.4(D) unless such
      Transfer, in the reasonable judgment of the General Partner, would cause (or
      have the potential to cause) the General Partner to fail to qualify for taxation
      as a REIT, in which case the General Partner shall have the absolute right
      to
      refuse to permit such Transfer, and any purported Transfer in violation of
      this
      Section 8.4(D) shall be null and void ab
      initio.

     

    (E) No
      Transfer of Limited Partnership Units shall be made if such Transfer would
      (i) in the opinion of Partnership counsel, cause the Partnership to
      be
      terminated for federal income tax purposes or to be treated as an association
      taxable as a corporation (rather than a partnership) for federal income tax
      purposes; (ii) be effected through an “established securities market” or a
“secondary market (or the substantial equivalent thereof)” within the meaning of
      Code Section 7704 and the Treasury Regulations thereunder, (iii) in the opinion
      of Partnership counsel, violate the provisions of applicable securities laws;
      (iv) violate the terms of (or result in a default or acceleration under) any
      law, rule, regulation, agreement or commitment binding on the Partnership;
      (v)
      cause the Partnership to become, with respect to any employee benefit plan
      subject to Title I of ERISA, a “party-in-interest” (as defined in Section 3(14)
      of ERISA) or a “disqualified person” (as defined in Section 4975(e) of the
      Code); (vi) in the opinion of counsel to the Partnership, cause any portion
      of
      the underlying assets of the Partnership to constitute assets of any employee
      benefit plan pursuant to Department of Labor Regulations Section 2510.3-101;
      or
      (vii) result in a deemed distribution to any Partner attributable to a failure
      to meet the requirements of Treasury Regulations Section 1.752-2(d)(1), unless
      such Partner consents thereto.

     

    (F) Prior
      to
      the consummation of any Transfer under this Section 8.4, the transferor and/or
      the transferee shall deliver to the General Partner such opinions, certificates
      and other documents as the General Partner shall request in connection with
      such
      Transfer.

     

    Section
      8.5 Substituted
      Limited Partner..

     

    (A) No
      transferee shall become a Substituted Limited Partner in place of his assignor
      unless and until the following conditions have been satisfied:

     

    (1) The
      assignor and transferee file a Notice or other evidence of Transfer and such
      other information reasonably required by the General Partner, including, without
      limitation, names, addresses and telephone numbers of the assignor and
      transferee;

     

    (2) The
      transferee executes, adopts and acknowledges this Agreement, or a counterpart
      hereto, and such other documents as may be reasonably requested by the General
      Partner, including without limitation, all documents necessary to comply with
      applicable tax and/or securities rules and regulations;

     

    (3) The
      assignor or transferee pays all costs and fees incurred or charged by the
      Partnership to effect the Transfer and substitution; and

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

    (4) The
      assignor or transferee obtains the written Consent of the General Partner,
      which
      may be given or withheld in its sole and absolute discretion.

     

    (B) If
      a
      transferee of a Limited Partner does not become a Substituted Limited Partner
      pursuant to Section 8.5(A), such transferee shall be an Assignee and shall
      not
      have any rights to require any information on account of the Partnership’s
      business, to inspect the Partnership’s books or to vote or otherwise take part
      in the affairs of the Partnership (such Partnership Units being deemed to have
      been voted in the same proportion as all other Partnership Units held by Limited
      Partners have been voted). Such Assignee shall be entitled, however, to all
      the
      rights of an assignee of a limited partnership interest under the Act. Any
      Assignee wishing to Transfer the Partnership Units acquired shall be subject
      to
      the restrictions set forth in this Article VIII.

     

    Section
      8.6 Timing
      and Effect of Transfers.
      Unless
      the General Partner agrees otherwise, Transfers under this Article VIII may
      only
      be made as of the first day of a fiscal quarter of the Partnership. Upon any
      Transfer of a Partnership Interest in accordance with this Article VIII or
      redemption of a Partnership Interest in accordance with Article IX, the
      Partnership shall allocate all items of Profit and Loss between the assignor
      Partner and the transferee Partner in accordance with Section 5.2(F)(2) hereof.
      The assignor Partner shall have the right to receive all distributions as to
      which the Record Date precedes the date of Transfer and the transferee Partner
      shall have the right to receive all distributions thereafter.

     

    Section
      8.7 Additional
      Limited Partners.
      Other
      than in accordance with the transactions specified in the Contribution
      Agreements, after the initial execution of this Agreement and the admission
      to
      the Partnership of the Initial Limited Partners, any Person making a Capital
      Contribution to the Partnership in accordance herewith shall be admitted as
      an
      Additional Limited Partner of the Partnership only (i) with the Consent of
      the
      General Partner and (ii) upon execution, adoption and acknowledgment of this
      Agreement, or a counterpart hereto, and such other documents as may be
      reasonably requested by the General Partner, including without limitation,
      the
      power of attorney required under Section 12.3. Upon satisfaction of the
      foregoing requirements, such Person shall be admitted as an Additional Limited
      Partner effective on the date upon which the name of such Person is recorded
      on
      the books of the Partnership.

     

    Section
      8.8 Amendment
      of Agreement and Certificate.
      Upon
      any admission of a Person as a Partner to the Partnership, the General Partner
      shall make any necessary amendment to this Agreement to reflect such admission
      and, if required by the Act, to cause to be filed an amendment to the
      Certificate.

     

    
      
        

      

    ARTICLE
      IX -
      REDEMPTION

    

    
      
        

      

    Section
      9.1 Right
      of Redemption.

     

    (A) Subject
      to any restriction on the General Partner, which restriction may arise as a
      result of the REIT Charter, the laws governing the General Partner or otherwise
      (a “Redemption Restriction”), beginning on the Redemption Effective Date, during
      each Redemption Period each Redeeming Party shall have the right to require
      the
      Partnership to redeem all or a portion of the Partnership Units held by such
      Redeeming Party by providing the General Partner with a Redemption Notice.
      A
      Limited Partner may invoke its rights under this Article IX with respect to
      100
      Partnership Units or an integral multiple thereof or all of the Partnership
      Units held by such Limited Partner. Upon the General Partner’s receipt of a
      Redemption Notice from a Redeeming Party, the Partnership shall be obligated
      (subject to the existence of any Redemption Restriction) to redeem the
      Partnership Units from such Redeeming Party (the “Redemption
      Obligation”).

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

    (B) Upon
      receipt of a Redemption Notice from a Redeeming Party, the General Partner
      shall
      either (i) cause the Partnership to redeem the Partnership Units tendered in
      the
      Redemption Notice, (ii) assume the Redemption Obligation, as set forth in
      Section 9.4 hereof, or (iii) provide written Notice to the Redeeming Party
      of
      each applicable Redemption Restriction.

     

    (C) On
      and
      after June 6, 2007 at any time or from time to time, the Partnership may redeem
      all or such other number of Class C Units (any such redemption, a “Class C
      Redemption”) at a cash redemption price per Class C Unit equal to that portion
      of the Capital Contribution of the Class C Limited Partner allocable to each
      such unit, plus all accumulated and unpaid Class C Priority Return Amounts
      to
      the date of Class C Redemption (such price, the “Class C Redemption Price”).
      Upon any Class C Redemption, an amount equal to the product of the Class C
      Redemption Price and the number of Class C Units redeemed by the Partnership
      shall be distributed by the Partnership to the Class C Limited
      Partner.

     

    (D) The
      Partnership may redeem all or such other number of Class F Units (any such
      redemption, a “Class F Redemption”) on any applicable date of redemption of any
      Class F Preferred Shares, at a cash redemption price per Class F Unit equal
      to
      that portion of the Capital Contribution of the Class F Limited Partner
      allocable to each such unit, plus all accumulated and unpaid Class F Priority
      Return Amounts to the date of Class F Redemption (such price, the “Class F
      Redemption Price”). Upon any Class F Redemption, an amount equal to the product
      of the Class F Redemption Price and the number of Class F Units redeemed by
      the
      Partnership shall be distributed by the Partnership to the Class F Limited
      Partner.

     

    (E) The
      Partnership may redeem all or such other number of Class G Units (any such
      redemption, a “Class G Redemption”) on any applicable date of redemption of any
      Class G Preferred Shares, at a cash redemption price per Class G Unit equal
      to
      that portion of the Capital Contribution of the Class G Limited Partner
      allocable to each such unit, plus all accumulated and unpaid Class G Priority
      Return Amounts to the date of Class G Redemption (such price, the “Class G
      Redemption Price”). Upon any Class G Redemption, an amount equal to the product
      of the Class G Redemption Price and the number of Class G Units redeemed by
      the
      Partnership shall be distributed by the Partnership to the Class G Limited
      Partner.

     

    (F) The
      Partnership may redeem all or such other number of Class I Units (any such
      redemption, a “Class I Redemption”) on any applicable date of redemption of any
      Class I Preferred Shares, at a cash redemption price per Class I Unit equal
      to
      that portion of the Capital Contribution of the Class I Limited Partner
      allocable to each such unit multiplied by the redemption premium then applicable
      to the Class I Preferred Shares, plus all accumulated and unpaid Class I
      Priority Return Amounts to the date of Class I Redemption (such price, the
      “Class I Redemption Price”). Upon any Class I Redemption, an amount equal to the
      product of the Class I Redemption Price and the number of Class I Units redeemed
      by the Partnership shall be distributed by the Partnership to the Class I
      Limited Partner.

     

    Section
      9.2 Timing
      of Redemption.
      The
      Redemption Obligation (or the obligation to provide Notice of an applicable
      Redemption Restriction, if one exists) shall mature on the date which is seven
      (7) business days after the receipt by the General Partner of a Redemption
      Notice from the Redeeming Party (the “Redemption Date”).

     

    Section
      9.3 Redemption
      Price.
      On or
      before the Redemption Date, the Partnership (or the General Partner if it elects
      pursuant to Section 9.4 hereof) shall deliver to the Redeeming Party, in the
      sole and absolute discretion of the General Partner either (i) a Share Payment
      or (ii) a Cash Payment. In order to enable the Partnership to effect a
      redemption by making a Share Payment pursuant to this Section 9.3, the General
      Partner in its sole and absolute discretion may issue to the Partnership the
      number of REIT Shares required to make such Share Payment in exchange for the
      issuance to the General Partner of Partnership Units equal in number to the
      quotient of the number of REIT Shares issued and Conversion Factor.

     

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

    Section
      9.4 Assumption
      of Redemption Obligation.
      Upon
      receipt of a Redemption Notice, the General Partner, in its sole and absolute
      discretion, shall have the right to assume the Redemption Obligation of the
      Partnership. In such case, the General Partner shall be substituted for the
      Partnership for all purposes of this Article IX and, upon acquisition of the
      Partnership Units tendered by the Redeeming Party pursuant to the Redemption
      Notice shall be treated for all purposes of this Agreement as the owner of
      such
      Partnership Units. Such exchange transaction shall be treated for federal income
      tax purposes by the Partnership, the General Partner and the Redeeming Party
      as
      a sale by the Redeeming Party as seller to the General Partner as
      purchaser.

     

    Section
      9.5 Further
      Assurances; Certain Representations.
      Each
      party to this Agreement agrees to execute any documents deemed reasonably
      necessary by the General Partner to evidence the issuance of any Share Payment
      to a Redeeming Party. Notwithstanding anything herein to the contrary, each
      holder of First Highland Units agrees that, if the General Partner shall elect
      to satisfy a Redemption Obligation with respect to First Highland Units by
      making a Share Payment, such Redemption Obligation shall mature on the date
      which is seven (7) business days after receipt by the Partnership and the
      General Partner of documents similar to the “Investor Materials” submitted in
      connection with the sale of the First Highland Properties to the Partnership
      and
      any other similar documents reasonably required by, and in form reasonably
      satisfactory to, the Partnership. Each Limited Partner, by executing this
      Agreement, shall be deemed to have represented to the General Partner and the
      Partnership that (i) its acquisition of its Partnership Interest on the date
      hereof is made as a principal for its own account, for investment purposes
      only
      and not with a view to the resale or distribution of such Partnership Interest
      and (ii) if it shall receive REIT Shares pursuant to this Article IX other
      than
      pursuant to an effective registration statement under the Securities Act of
      1933, as amended, that its acquisition of such REIT Shares is made as a
      principal for its own account, for investment purposes only and not with a
      view
      to the resale or distribution of such REIT Shares and agrees that such REIT
      Shares may bear a legend to the effect that such REIT Shares have not been
      so
      registered and may not be sold other than pursuant to such a registration
      statement or an exemption from the registration requirements of such
      Act.

     

    Section
      9.6 Effect
      of Redemption.
      Upon
      the satisfaction of the Redemption Obligation by the Partnership or the General
      Partner, as the case may be, the Redeeming Party shall have no further right
      to
      receive any Partnership distributions in respect of the Partnership Units so
      redeemed and shall be deemed to have represented to the Partnership and the
      General Partner that the Partnership Units tendered for redemption are not
      subject to any liens, claims or encumbrances. Upon a Class C Redemption by
      the
      Partnership, the Class C Limited Partner shall have no further right to receive
      any Partnership distributions or allocations in respect of the Class C Units
      so
      redeemed. Upon a Class F Redemption by the Partnership, the Class F Limited
      Partner shall have no further right to receive any Partnership distributions
      in
      respect of the Class F Units so redeemed. Upon a Class G Redemption by the
      Partnership, the Class G Limited Partner shall have no further right to receive
      any Partnership distributions in respect of the Class G Units so redeemed.
      Upon
      a Class I Redemption by the Partnership, the Class I Limited Partner shall
      have
      no further right to receive any Partnership distributions in respect of the
      Class I Units so redeemed.

     

    Section
      9.7 Registration
      Rights.
      In the
      event a Limited Partner receives REIT Shares in connection with a redemption
      of
      Partnership Units originally issued to Initial Limited Partners on June 30,
      1994
      pursuant to this Article IX, such Limited Partner shall be entitled to have
      such
      REIT Shares registered under the Securities Act of 1933, as amended, as provided
      in the Registration Rights Agreement.

     

    Section
      9.8 Redemption
      upon REIT Share Repurchases by the General Partner.
      If the
      General Partner acquires outstanding REIT Shares then the Partnership shall
      redeem from the General Partner the General Partner’s interest in the
      Partnership representing such acquired REIT Shares and pay to the General
      Partner, in cash, an amount equal to the consideration, if any, paid by or
      for
      the account of the General Partner for the acquired REIT Shares. The Partnership
      shall make such cash payment, if any, to the General Partner within three (3)
      business days after the General Partner notifies the Partnership that the
      General Partner is committed to acquiring REIT Shares and requests payment
      under
      this Section 9.8. Any REIT Shares acquired by the General Partner that are
      thereafter 

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

    disposed
      of by the General Partner (which term shall not include cancellation) shall
      for
      the purposes of Sections 4.2(B) and (C), be deemed issued at the time of such
      disposition.

     

    
      
        

      

    ARTICLE
      X -
      DISSOLUTION AND LIQUIDATION

    

    
      
        

      

    Section
      10.1 Term
      and Dissolution.
      The
      Partnership commenced as of November 23, 1993, and shall continue until December
      31, 2092, at which time the Partnership shall dissolve or until dissolution
      occurs prior to that date for any one of the following reasons:

     

    (A) An
      Involuntary Withdrawal or a voluntary withdrawal, even though in violation
      of
      this Agreement, of the General Partner unless, within ninety (90) days after
      such event of withdrawal all the remaining Partners agree in writing to the
      continuation of the Partnership and to the appointment of a Successor General
      Partner;

     

    (B) Entry
      of
      a decree of judicial dissolution of the Partnership under the Act;
      or

     

    (C) The
      sale,
      exchange or other disposition of all or substantially all of the Partnership
      Assets.

     

    Section
      10.2 Liquidation
      of Partnership Assets..

     

    (A) Subject
      to Section 10.2(E), in the event of dissolution pursuant to Section 10.1, the
      Partnership shall continue solely for purposes of winding up the affairs of,
      achieving a final termination of, and satisfaction of the creditors of, the
      Partnership. The General Partner (or, if there is no General Partner remaining,
      any Person elected by a majority in interest of the Limited Partners (the
“Liquidator”)) shall be responsible for oversight of the winding up and
      dissolution of the Partnership. The Liquidator shall obtain a full accounting
      of
      the assets and liabilities of the Partnership and such Partnership Assets shall
      be liquidated (including, at the discretion of the Liquidator, in exchange,
      in
      whole or in part, for REIT Shares) as promptly as the Liquidator is able to
      do
      so without any undue loss in value, with the proceeds therefrom applied and
      distributed in the following order:

     

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

     

    (2) Second,
      to the discharge of Partnership debts and liabilities to the
      Partners;

     

    (3) Third,
      after giving effect to all contributions, distributions, and allocations for
      all
      periods, to (i) the Class C Limited Partner in an amount equal to any unpaid
      Class C Priority Return Amounts, (ii) the Class F Limited Partner in an amount
      equal to any unpaid Class F Priority Return Amounts, (iii) the Class
      G
      Limited Partner in an amount equal to any unpaid Class G Priority Return Amounts
      and (iv) the Class I Limited Partner in an amount equal to any unpaid Class
      I
      Return Amounts; provided,
      that if
      the proceeds are inadequate to pay all of the unpaid Class C Priority Return
      Amounts, the unpaid Class F Priority Return Amounts, the unpaid Class G Priority
      Return Amounts and the unpaid Class I Priority Return Amounts, such proceeds
      shall be distributed to the Class C Limited Partner, the Class F Limited
      Partner, the Class G Limited Partner and the Class I Limited Partner
pro
      rata
      based on
      the unpaid Class C Priority Return Amounts, the unpaid Class F Priority Return
      Amounts, the unpaid Class G Priority Return Amounts and the unpaid Class I
      Priority Return Amounts;

     

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

     

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

     

     

     (B) In
      accordance with Section 10.2(A), the Liquidator shall proceed without any
      unnecessary delay to sell and otherwise liquidate the Partnership Assets;
provided,
      however,
      that if
      the Liquidator shall determine that an immediate sale of part or all of the
      Partnership Assets would cause undue loss to the Partners, the Liquidator may
      defer the liquidation except (i) to the extent provided by the Act or (ii)
      as
      may be necessary to satisfy the debts and liabilities of the Partnership to
      Persons other than the Partners.

     

    (C) If,
      in
      the sole and absolute discretion of the Liquidator, there are Partnership Assets
      that the Liquidator will not be able to liquidate, or if the liquidation of
      such
      assets would result in undue loss to the Partners, the Liquidator may distribute
      such Partnership Assets to the Partners in-kind, in lieu of cash, as
      tenants-in-common in accordance with the provisions of Section 10.2(A). The
      foregoing notwithstanding, such in-kind distributions shall only be made if
      in
      the Liquidator’s good faith judgment that is in the best interest of the
      Partners.

     

    (D) Upon
      the
      complete liquidation and distribution of the Partnership Assets, the Partners
      shall cease to be Partners of the Partnership, and the Liquidator shall execute,
      acknowledge and cause to be filed all certificates and notices required by
      law
      to terminate the Partnership. Upon the dissolution of the Partnership pursuant
      to Section 10.1, the Liquidator shall cause to be prepared, and shall furnish
      to
      each Partner, a statement setting forth the assets and liabilities of the
      Partnership. Promptly following the complete liquidation and distribution of
      the
      Partnership Assets, the Liquidator shall furnish to each Partner a statement
      showing the manner in which the Partnership Assets were liquidated and
      distributed.

     

    (E) Notwithstanding
      the foregoing provisions of this Section 10.2, in the event that the Partnership
      shall dissolve as a result of the expiration of the term provided for herein
      or
      as a result of the occurrence of an event of the type described in Section
      10.1(B) or (C), then each Limited Partner shall be deemed to have delivered
      a
      Redemption Notice on the date of such dissolution. In connection with each
      such
      Redemption Notice, the General Partner shall have the option of either (i)
      complying with the redemption procedures contained in Article IX or (ii) at
      the
      request of any Limited Partner, delivering to such Limited Partner, Partnership
      property approximately equal in value to the value of such Limited Partner’s
      Partnership Units upon the assumption by such Limited Partner of such Limited
      Partner’s proportionate share of the Partnership’s liabilities and payment by
      such Limited Partner (or the Partnership) of any excess (or deficiency) of
      the
      value of the property so delivered over the value of such Limited Partner’s
      Partnership Units. In lieu of requiring such Limited Partner to assume its
      proportionate share of Partnership liabilities, the General Partner may deliver
      to such Limited Partner unencumbered Partnership property approximately equal
      in
      value to the net value of such Limited Partner’s Partnership Units.

     

    Section
      10.3 Effect
      of Treasury Regulations..

     

    (A) In
      the
      event the Partnership is “liquidated” within the meaning of Treasury Regulations
      Section 1.704-1(b)(2)(ii)(g), distributions made to Partners pursuant to Section
      10.2 shall be made within the time period provided in Treasury Regulations
      Section 1.704-1(b)(2)(ii)(b)(2). If any Contributor Partner has a deficit
      balance in its Capital Account (after giving effect to all contributions
      (without regard to this Section 10.3(A)), distributions and allocations), each
      such Contributor Partner shall contribute to the capital of the Partnership
      an
      amount equal to its respective deficit balance, such obligation to be satisfied
      within ninety (90) days following the liquidation and dissolution of the
      Partnership in accordance with the provisions of this Article X hereof.
      Conversely, if any Partner other than a Contributor Partner has a deficit
      balance in its Capital Account (after giving effect to all contributions
      (without regard to this Section 10.3(A)), distributions and allocations), such
      Partner shall have no obligation to make any contribution to the capital of
      the
      Partnership. Any deficit restoration obligation pursuant to the provisions
      hereof shall be for the benefit of creditors of the Partnership or any other
      Person to whom any debts, liabilities, or obligations are owed by (or who
      otherwise has any claim against) the Partnership or the general partner, in
      its
      capacity as General Partner of the Partnership. For purposes of computing each
      Contributor Partner’s deficit balance in its Capital Account and its

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

    corresponding
      obligations to contribute additional capital to the Partnership, only items
      of
      income, gain and loss actually recognized shall be reflected.

     

    (B) In
      the
      event the Partnership is “liquidated” within the meaning of Treasury Regulations
      Section 1.704-1(b)(2)(ii)(g) but there has been no dissolution of the
      Partnership under Section 10.1 hereof, then the Partnership Assets shall not
      be
      liquidated, the Partnership’s liabilities shall not be paid or discharged and
      the Partnership’s affairs shall not be wound up. In the event of such a
      liquidation there shall be deemed to have been a distribution of Partnership
      Assets in kind to the Partners in accordance with Section 10.2 followed by
      a
      recontribution of such Partnership Assets by the Partners in the same
      proportions.

     

    Section
      10.4 Time
      for Winding-Up.
      Anything in this Article X notwithstanding, a reasonable time shall be allowed
      for the orderly winding-up of the business and affairs of the Partnership and
      the liquidation of the Partnership Assets in order to minimize any potential
      for
      losses as a result of such process. During the period of winding-up, this
      Agreement shall remain in full force and effect and shall govern the rights
      and
      relationships of the Partners inter
      se.

     

    
      
        

      

    ARTICLE
      XI -
      AMENDMENTS AND MEETINGS

    
      
        

      

    

    Section
      11.1 Amendment
      Procedure.

     

    (A) Amendments
      to this Agreement may be proposed by the General Partner. An amendment proposed
      at any time when the General Partner holds less than 90% of all Partnership
      Units will be adopted and effective only if it receives the Consent of the
      holders of a majority of the Partnership Units not then held by the General
      Partner and an amendment proposed at any time when the General Partner holds
      90%
      or more of all Partnership Units may be made by the General Partner without
      the
      Consent of any Limited Partner; provided,
      however,
      no
      amendment shall be adopted if it would (i) convert a Limited Partner’s Interest
      in the Partnership into a general partner interest, (ii) increase the liability
      of a Limited Partner under this Agreement, (iii) except as otherwise permitted
      in this Agreement, alter the Partner’s rights to distributions set forth in
      Article V, or the allocations set forth in Article V, (iv) alter or modify
      any
      aspect of the Partners’ rights with respect to redemption of Partnership Units,
      (v) cause the early termination of the Partnership (other than pursuant to
      the
      terms hereof) or (vi) amend this Section 11.1(A), in each case without the
      Consent of each Partner adversely affected thereby. In connection with any
      proposed amendment of this Agreement requiring Consent, the General Partner
      shall either call a meeting to solicit the vote of the Partners or seek the
      written vote of the Partners to such amendment. In the case of a request for
      a
      written vote, the General Partner shall be authorized to impose such reasonable
      time limitations for response, but in no event less than ten (10) days, with
      the
      failure to respond being deemed a vote consistent with the vote of the General
      Partner.

     

    (B) Notwithstanding
      the foregoing, amendments may be made to this Agreement by the General Partner,
      without the Consent of any Limited Partner, to (i) add to the representations,
      duties or obligations of the General Partner or surrender any right or power
      granted to the General Partner herein; (ii) cure any ambiguity, correct or
      supplement any provision herein which may be inconsistent with any other
      provision herein or make any other provisions with respect to matters or
      questions arising hereunder which will not be inconsistent with any other
      provision hereof; (iii) reflect the admission, substitution, termination or
      withdrawal of Partners in accordance with this Agreement; or (iv) satisfy any
      requirements, conditions or guidelines contained in any order, directive,
      opinion, ruling or regulation of a federal or state agency or contained in
      federal or state law. The General Partner shall reasonably promptly notify
      the
      Limited Partners whenever it exercises its authority pursuant to this Section
      11.1(B).

     

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

    (C) Within
      ten (10) days of the making of any proposal to amend this Agreement, the General
      Partner shall give all Partners Notice of such proposal (along with the text
      of
      the proposed amendment and a statement of its purposes).

     

    Section
      11.2 Meetings
      and Voting..

     

    (A) Meetings
      of Partners may be called by the General Partner. The General Partner shall
      give
      all Partners Notice of the purpose of such proposed meeting not less than seven
      (7) days nor more than thirty (30) days prior to the date of the meeting.
      Meetings shall be held at a reasonable time and place selected by the General
      Partner. Whenever the vote or Consent of Partners is permitted or required
      hereunder, such vote or Consent shall be requested by the General Partner and
      may be given by the Partners in the same manner as set forth for a vote with
      respect to an amendment to this Agreement in Section 11.1(A).

     

    (B) 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 to be
      taken is signed by the Partners owning Percentage Interests required to vote
      in
      favor of such action, which consent may be evidenced in one or more instruments.
      Consents need not be solicited from any other Partner if the written consent
      of
      a sufficient number of Partners has been obtained to take the action for which
      such solicitation was required.

     

    (C) Each
      Limited Partner may authorize any Person or Persons, including without
      limitation the General Partner, to act for him by proxy on all matters on which
      a Limited Partner may participate. Every proxy (i) must be signed by the Limited
      Partner or his attorney-in-fact, (ii) shall expire eleven (11) months from
      the
      date thereof unless the proxy provides otherwise and (iii) shall be revocable
      at
      the discretion of the Limited Partner granting such proxy.

     

    Section
      11.3 Voting
      of LB Units.
      On any
      matter on which the Limited Partners shall be entitled to vote, consent or
      grant
      an approval or waiver, following the admissions of the LB Partners to the
      Partnership as Additional Limited Partners and through the Voting Termination
      Date, each holder of the LB Units shall be deemed (i) in connection with any
      matter submitted to a vote, to have cast all votes attributable to such holder’s
      LB Units in the same manner as the votes attributable to the Units held by
      the
      General Partner are cast on such matter, and (ii) in connection with any
      consent, approval or waiver, to have taken the same action as the General
      Partner shall have taken with respect to its Units in connection therewith.
      If
      the General Partner shall not have the right to vote, consent or grant an
      approval or waiver on a matter, each holder of LB Units shall vote or act as
      directed by the General Partner.

     

    
      
        

      

    ARTICLE
      XII -
      MISCELLANEOUS PROVISIONS

     

    
      
        

      

    

    

    Section
      12.1 Title
      to Property.
      All
      property owned by the Partnership, whether real or personal, tangible or
      intangible, shall be deemed to be owned by the Partnership as an entity, and
      no
      Partner, individually, shall have any ownership of such property. The
      Partnership may hold any of its assets in its own name or, in the name of its
      nominee, which nominee may be one or more individuals, corporations,
      partnerships, trusts or other entities.

     

    Section
      12.2 Other
      Activities of Limited Partners.
      Except
      as expressly provided otherwise in this Agreement or in any other agreement
      entered into by a Limited Partner or any Affiliate of a Limited Partner and
      the
      Partnership, the General Partner or any Subsidiary of the Partnership or the
      General Partner, any Limited Partner or any Affiliate of any Limited Partner
      may
      engage in, or possess an interest in, other business ventures of every nature
      and description, independently or with others, including, without limitation,
      real estate business ventures, whether or not such other enterprises shall
      be in
      competition with any activities of the Partnership, the General Partner or
      any

     

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

    Subsidiary
      of the Partnership or the General Partner; and neither the Partnership, the
      General Partner, any such Subsidiary nor the other Partners shall have any
      right
      by virtue of this Agreement in and to such independent ventures or to the income
      or profits derived therefrom.

     

    Section
      12.3 Power
      of Attorney..

     

    (A) Each
      Partner hereby irrevocably appoints and empowers the General Partner (which
      term
      shall include the Liquidator, in the event of a liquidation, for purposes of
      this Section 12.3) and each of their authorized officers and attorneys-in-fact
      with full power of substitution as his true and lawful agent and
      attorney-in-fact, with full power and authority in his name, place and stead
      to:

     

    (1) make,
      execute, acknowledge, publish and file in the appropriate public offices (a)
      any
      duly approved amendments to the Certificate pursuant to the Act and to the
      laws
      of any state in which such documents are required to be filed; (b) any
      certificates, instruments or documents as may be required by, or may be
      appropriate under, the laws of any state or other jurisdiction in which the
      Partnership is doing or intends to do business; (c) any other instrument which
      may be required to be filed by the Partnership under the laws of any state
      or by
      any governmental agency, or which the General Partner deems advisable to file;
      (d) any documents which may be required to effect the continuation of the
      Partnership, the admission, withdrawal or substitution of any Partner pursuant
      to Article VIII, dissolution and termination of the Partnership pursuant to
      Article X, or the surrender of any rights or the assumption of any additional
      responsibilities by the General Partner; (e) any document which may be required
      to effect an amendment to this Agreement to correct any mistake, omission or
      inconsistency, or to cure any ambiguity herein, to the extent such amendment
      is
      permitted by Section 11.1(B); and (f) all instruments (including this Agreement
      and amendments and restatements hereof) relating to the determination of the
      rights, preferences and privileges of any class or series of Partnership Units
      issued pursuant to Section 4.2(B) of this Agreement; and

     

    (2) sign,
      execute, swear to and acknowledge all voting ballots, consents, approvals,
      waivers, certificates and other instruments appropriate or necessary, in the
      sole discretion of the General Partner, 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 and appropriate or necessary, in the sole discretion of the General
      Partner, to effectuate the terms or intent of this Agreement.

     

    (B) Nothing
      herein contained shall be construed as authorizing the General Partner to amend
      this Agreement except in accordance with Article XI or as may be otherwise
      expressly provided for in this Agreement.

     

    (C) The
      foregoing grant of authority (i) is a special power of attorney, coupled with
      an
      interest, and it shall survive the Involuntary Withdrawal of any Partner and
      shall extend to such Partner’s heirs, successors, assigns and personal
      representatives; (ii) may be exercised by the General Partner for each and
      every
      Partner acting as attorney-in-fact for each and every Partner; and (iii) shall
      survive the Transfer by a Limited Partner of all or any portion of its Interest
      and shall be fully binding upon such transferee; except that the power of
      attorney shall survive such assignment with respect to the assignor Limited
      Partner for the sole purpose of enabling the General Partner to execute,
      acknowledge and file any instrument necessary to effect the admission of the
      transferee as a Substitute Limited Partner. Each Partner hereby agrees to be
      bound by any representations made by the General Partner, acting in good faith
      pursuant to such power of attorney. Each Partner shall execute and deliver
      to
      the General Partner, within fifteen (15) days after receipt of the General
      Partner’s request therefor, such further designations, powers of attorney and
      other instruments as the General Partner deems necessary to effectuate this
      Agreement and the purposes of the Partnership.

     

    (D) Each
      LB
      Partner hereby irrevocably appoints and empowers the General Partner and the
      Liquidator, in the event of a liquidation, and each of their authorized officers
      and attorneys-in-fact with full power of substitution, as the true and lawful
      agent and attorney-in-fact of such LB Partner with full power and 

     

     

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

     

    authority
      in the name, place and stead of such LB Partner to take such actions (including
      waivers under the Partnership Agreement) or refrain from taking such action
      as
      the General Partner reasonably believes are necessary or desirable to achieve
      the purposes of Section 11.3 of the Partnership Agreement.

     

    Section
      12.4 Notices.
      All
      notices and other communications provided for or permitted hereunder shall
      be
      made in writing by hand delivery, registered first-class mail, telex,
      telecopier, or any courier guaranteeing overnight delivery, (i) if to a Limited
      Partner, at the most current address given by such Limited Partner to the
      General Partner by means of a notice given in accordance with the provisions
      of
      this Section 12.4, which address initially is the address contained in the
      records of the General Partner, or (ii) if to the General Partner, 311 S. Wacker
      Drive, Suite 4000, Chicago, Illinois 60606, Attn: President.

     

    All
      such
      notices and communications shall be deemed to have been duly given: at the
      time
      delivered by hand, if hand delivered; five (5) business days after being
      deposited in the mail, postage prepaid, if mailed; when answered back, if
      telexed; or when receipt is acknowledged, if telecopied.

     

    Section
      12.5 Further
      Assurances.
      The
      parties agree to execute and deliver all such documents, provide all such
      information and take or refrain from taking any action as may be necessary
      or
      desirable to achieve the purposes of this Agreement and the
      Partnership.

     

    Section
      12.6 Titles
      and Captions.
      All
      article or section titles or captions in this Agreement are solely for
      convenience and shall not be deemed to be part of this Agreement or otherwise
      define, limit or extend the scope or intent of any provision
      hereof.

     

    Section
      12.7 Applicable
      Law.
      This
      Agreement, and the application or interpretation thereof, shall be governed
      exclusively by its terms and by the law of the State of Delaware, without regard
      to its principles of conflicts of laws.

     

    Section
      12.8 Binding
      Agreement.
      This
      Agreement shall be binding upon the parties hereto, their heirs, executors,
      personal representatives, successors and assigns.

     

    Section
      12.9 Waiver
      of Partition.
      Each of
      the parties hereto irrevocably waives during the term of the Partnership any
      right that it may have to maintain any action for partition with respect to
      any
      property of the Partnership.

     

    Section
      12.10 Counterparts
      and Effectiveness.
      This
      Agreement may be executed in several counterparts, which shall be treated as
      originals for all purposes, and all so executed shall constitute one agreement,
      binding on all of the parties hereto, notwithstanding that all the parties
      are
      not signatory to the original or the same counterpart. Any such counterpart
      shall be admissible into evidence as an original hereof against each Person
      who
      executed it. The execution of this Agreement and delivery thereof by facsimile
      shall be sufficient for all purposes, and shall be binding upon any party who
      so
      executes.

     

    Section
      12.11 Survival
      of Representations.
      All
      representations and warranties herein shall survive the dissolution and final
      liquidation of the Partnership.

     

    Section
      12.12 Entire
      Agreement.
      This
      Agreement (and all Exhibits hereto) contains the entire understanding among
      the
      parties hereto and supersedes all prior written or oral agreements among them
      respecting the within subject matter, unless otherwise provided herein. There
      are no representations, agreements, arrangements or understandings, oral or
      written, among the Partners hereto relating to the subject matter of this
      Agreement which are not fully expressed herein and in said
      Exhibits.

     

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      this
      Agreement has been duly executed and delivered by the parties hereto as of
      the
      day and year first above written.

     

    
      	
              General
                Partner:

            	
               
FIRST
                INDUSTRIAL REALTY
                TRUST INC.,

                as
                sole General
                Partner of the Partnership

               

            
	 	
               
                By: /s/
                Michael W. Brennan 

            
	 	 
	
              Class
                I Limited Partner

            	
               
                FIRST INDUSTRIAL REALTY TRUST, INC.,

               
                as Class I Limited Partner

               

            
	 	
               
                By: /s/
                Michael W. Brennan 

               

            

    

    

    

    
      
        
        

      

      
        -39-

        
          

        

      

      
        
        

      

    

    Exhibit
      1A

     

    
      	
              First
                Highland Partners

               

            	
              Number
                of Units

               

            
	
              Highland
                Associates Limited Partnership

               

            	
              69,039

               

            
	
              Peter
                Murphy

               

            	
              56,184

               

            
	
              North
                Star Associates Limited Partnership

               

            	
              19,333

               

            
	
              Peter
                O’Connor

               

            	
              56,844

               

            
	
              Partridge
                Road Associates Limited Partnership

               

            	
              2,751

               

            
	
              Shadeland
                Associates Limited Partnership

               

            	
              42,976

               

            
	
              Ellen
                Margaret Smith

               

            	
              1,000

               

            
	
              Joseph
                Edward Smith

               

            	
              1,000

               

            
	
              Kevin
                Smith

               

            	
              10,571

               

            
	
              Olivia
                Jane Smith

               

            	
              1,000

               

            
	
              Jonathan
                Stott

               

            	
              80,026

               

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      1B

     

    Schedule
      of Partners

     

    
      	
              General
                Partner

               

            	
              Number
                of Units

               

            
	
              First
                Industrial Realty Trust, Inc.

               

            	
              30,892,739

               

            

    

    

    
      	
              Limited
                Partners

            	
              Number
                of Units

               

            
	
              Kerry
                Acker

               

            	
              154

               

            
	
              Sanders
                H. Acker

               

            	
              307

               

            
	
              Sterling
                Alsip Trust DTD 8-1-89 Donald W. Schaumberger Trustee

               

            	
              794

               

            
	
              Charles
                T. Andrews

               

            	
              754

               

            
	
              Daniel
                R. Andrew TR of the Daniel R.

               

              Andrew
                Trust UA 12-29-92

               

            	
               

               

              137,489

               

            
	
              The
                Arel Company

               

            	
              307

               

            
	
              William
                J. Atkins

               

            	
              5,691

               

            
	
              E.
                Donald Bafford

               

            	
              3,374

               

            
	
              William
                Baloh

               

            	
              8,731

               

            
	
              Thomas
                K. Barad & Jill E. Barad CO-TTEES of the

              Thomas
                K. Barad & Jill E. Barad Trust DTD 10-18-89

               

            	
              
2,283

               

            
	
              Enid
                Barden TTEE of the Enid Barden

              Trust
                DTD 6-28-95

               

            	
               

              56,082

               

            
	
              Enid
                Barden TTEE of the Enid Barden

              Trust
                of 6-28-96

               

            	
               

              23,088

               

            
	
              Emil
                Billich

               

            	
              77

               

            
	
              Don
                N. Blurton & Patricia H. Blurton Trustees UA DTD 4-11-96 Blurton 1996
                Revocable Family Trust

               

            	
               

              598

               

            
	
              Harriett
                Bonn TTEE UA DTD 3-5-97 FBO The Harriett Bonn

              Revocable
                Living Trust

               

            	
               

              24,804

               

            
	
              Michael
                W. Brennan

               

            	
              3,806

               

            
	
              Helen
                Brown

               

            	
              307

               

            
	
              Henry
                D. Bullock & Terri D. Bullock &

              Shawn
                Stevenson TR of the Bullock

              Childrens
                Education Trust UA 12-20-94,

              FBO
                Benjamin Dure Bullock

               

            	
               

               

              4,620

               

            
	
              Henry
                D. Bullock & Terri D. Bullock &

              Shawn
                Stevenson TR of the Bullock

              Childrens
                Education Trust UA 12-20-94,

              FBO
                Christine Laurel Bullock

               

            	
              
 

               

              4,620

               

            
	
              Edward
                Burger

               

            	
              9,261

               

            
	
              Barbara
                Lee O’Brien Burke

               

            	
              666

               

            
	
              Ernestine
                Burstyn

               

            	
              5,007

               

            
	
              Calamer,
                Inc.

               

            	
              1,233

               

            
	
              Perry
                C. Caplan

               

            	
              1,388

               

            
	
              Carew
                Corporation

               

            	
              13,650

               

            
	
              Magdalena
                G. Castleman

               

            	
              307

               

            
	
              Charles
                F. Downs & Mary Jane Downs TTEE

              Charles
                F. Downs Living Trust UA

              DTD
                12-06-04

               

            	
               

               

              754

               

            
	
              Cliffwood
                Development Company

               

            	
              64,823

               

            
	
              Collins
                Family Trust DTD 5-6-69 James Collins Trustee

               

            	
              100,000

               

            
	
              Kelly
                Collins

               

            	
              11,116

               

            
	
              Michael
                Collins

               

            	
              17,369

               

            
	
              Charles
                S. Cook and Shelby H. Cook TEN ENT

               

            	
              634

               

            
	
              Cotswold
                Properties

               

            	
              34,939

               

            
	
              Caroline
                Atkins Coutret

               

            	
              5,845

               

            
	
              David
                Cleborn Crow

               

            	
              5,159

               

            
	
              Gretchen
                Smith Crow

               

            	
              2,602

               

            
	
              Michael
                G. Damone TR of the Michael G.

              Damone
                Trust UA 11-4-69

               

            	
               

              144,296

               

            
	
              Robert
                L. Denton

               

            	
              6,286

               

            
	
              Henry
                E. Dietz Trust UA 1-16-81

               

            	
              36,476

               

            
	
              Mark
                X. DiSanto

               

            	
              14,844

               

            
	
              John
                M. DiSanto

               

            	
              14,844

               

            
	
              Steven
                Dizio & Helen Dizio JT TEN

               

            	
              12,358

               

            
	
              Nancy
                L. Doane

               

            	
              2,429

               

            
	
              W.
                Allen Doane 

               

            	
              1,987

               

            
	
              Timothy
                Donohue

               

            	
              100

               

            
	
              Darwin
                B. Dosch

               

            	
              1,388

               

            
	
              Draizin
                Family Partnership, L.P.

               

            	
              357,896

               

            
	
              Joseph
                S. Dresner

               

            	
              149,531

               

            
	
              Milton
                H. Dresner TR of the Milton H. Dresner Revocable Trust UA
                10-22-76

               

            	
              149,531

               

            
	
              James
                O’Neil Duffy, Jr.

               

            	
              513

               

            
	
              Martin
                Eglow

               

            	
              330

               

            
	
              Rand
                H. Falbaum

               

            	
              17,022

               

            
	
              Patricia
                O’Brien Ferrell

               

            	
              666

               

            
	
              Rowena
                Finke

               

            	
              154

               

            
	
              First
                & Broadway Limited Partnership

               

            	
              18,203

               

            
	
              Fourbur
                Family Co., L.P.

               

            	
              588,273

               

            
	
              Ester
                Fried

               

            	
              3,177

               

            
	
              Jack
                Friedman TR of the Jack Friedman Revocable

              Living
                Trust UA 3-23-78

               

            	
               

              26,005

               

            
	
              Nancy
                Gabel

               

            	
              14

               

            
	
              J.
                Peter Gaffney

               

            	
              727

               

            
	
              Gerlach
                Family Trust DTD 6-28-85 Stanley & Linda Gerlach

              Trustees

               

            	
               

              874

               

            
	
              Martin
                Goodstein

               

            	
              922

               

            
	
              Dennis
                G. Goodwin and Jeannie L. Goodwin TEN ENT

               

            	
              6,166

               

            
	
              Jeffrey
                L. Greenberg

               

            	
              330

               

            
	
              Stanley
                Greenberg & Florence Greenberg JT TEN

               

            	
              307

               

            
	
              Thelma
                C. Gretzinger Trust

               

            	
              450

               

            
	
              Stanley
                Gruber

               

            	
              30,032

               

            
	
              Melissa
                C. Gudim

               

            	
              24,028

               

            
	
              H.L.
                Investors LLC

               

            	
              4,000

               

            
	
              H.P.
                Family Group LLC

               

            	
              103,734

               

            
	
              H/Airport
                Gp Inc.

               

            	
              1,433

               

            
	
              Clay
                Hamlin & Lynn Hamlin JT TEN

               

            	
              15,159

               

            
	
              Turner
                Harshaw

               

            	
              1,132

               

            
	
              Edwin
                Hession & Cathleen Hession JT TEN

               

            	
              11,116

               

            
	
              Highland
                Associates Limited Partnership

               

            	
              69,039

               

            
	
              Andrew
                Holder

               

            	
              97

               

            
	
              Ruth
                Holder

               

            	
              2,612

               

            
	
              Robert
                W. Holman, Jr.

               

            	
              150,213

               

            
	
              Holman/Shidler
                Investment Corporation

               

            	
              22,079

               

            
	
              Robert
                S. Hood Living Trust DTD 1-9-90 & amended 12-16-96 Robert S. Hood
                Trustee

               

            	
              3,591

               

            
	
              Howard
                Trust DTD 4-30-79 Howard F. Sklar Trustee

               

            	
              653

               

            
	
              Steven
                B. Hoyt

               

            	
              150,000

               

            
	
              Jerry
                Hymowitz

               

            	
              307

               

            
	
              Karen
                L. Hymowitz

               

            	
              154

               

            
	
              IBS
                Delaware Partners LP

               

            	
              2,708

               

            
	
              Seymour
                Israel

               

            	
              15,016

               

            
	
              Frederick
                K. Ito Trustee UA DTD 9-9-98 FBO The Frederick K. Ito Trust

               

            	
              1,940

               

            
	
              Frederick
                K. Ito and June Y. Ito Trustees UA DTD 9-9-98 FBO The June Y. Ito
                Trust

               

            	
              1,940

               

            
	
              JP
                Trusts LLC

               

            	
              35,957

               

            
	
              Michael
                W. Jenkins

               

            	
              460

               

            
	
              Jernie
                Holdings Corp.

               

            	
              180,499

               

            
	
              Joan
                R. Krieger TTEE of the Joan R. Krieger Revocable Trust

              DTD
                10-21-97

               

            	
              
15,184

               

            
	
              John
                E. DE B. Blockey TR of the

              John
                E. DE B. Blockey Trust

               

            	
               

              8,653

               

            
	
              Jane
                Terrell Johnson

               

            	
              3,538

               

            
	
              Jeffrey
                E. Johnson

               

            	
              809

               

            
	
              Johnson
                Living Trust DTD 2-18-83 H. Stanton & Carol A. Johnson
                Trustees

               

            	
              1,078

               

            
	
              Thomas
                Johnson, Jr. and Sandra L. Johnson TEN ENT

               

            	
              2,142

               

            
	
              Martha
                O’Brien Jones

               

            	
              665

               

            
	
              Charles
                Mark Jordan

               

            	
              57

               

            
	
              Mary
                Terrell Joseph

               

            	
              837

               

            
	
              Nourhan
                Kailian

               

            	
              2,183

               

            
	
              H.L.
                Kaltenbacher, P.P. Kaltenbacher & J.K. Carr TTEES

              of
                the Joseph C. Kaltenbacher Credit Shelter TR

               

            	
               

              1,440

               

            
	
              Sarah
                Katz

               

            	
              307

               

            
	
              Carol
                F. Kaufman

               

            	
              166

               

            
	
              KEP
                LLC

               

            	
              98,626

               

            
	
              Peter
                Kepic

               

            	
              9,261

               

            
	
              Jack
                Kindler

               

            	
              1,440

               

            
	
              Kirshner
                Family Trust #1 DTD 4-8-76 Berton & Barbara Kirshner
                Trustees

               

            	
              29,558

               

            
	
              Kirshner
                Trust #4 FBO Todd Kirshner DTD 12-30-76 Berton Kirshner
                Trustee

               

            	
              20,258

               

            
	
              Arthur
                Kligman

               

            	
              307

               

            
	
              William
                L. Kreiger, Jr.

               

            	
              3,374

               

            
	
              Babette
                Kulka

               

            	
              330

               

            
	
              Jack
                H. Kulka

               

            	
              330

               

            
	
              LP
                Family Group LLC

               

            	
              102,249

               

            
	
              Paul
                T. Lambert

               

            	
              39,816

               

            
	
              Chester
                A. Latcham & Co.

               

            	
              1,793

               

            
	
              Constance
                Lazarus

               

            	
              417,961

               

            
	
              Jerome
                Lazarus

               

            	
              18,653

               

            
	
              Susan
                Lebow

               

            	
              740

               

            
	
              Arron
                Leifer

               

            	
              4,801

               

            
	
              Duane
                Lund

               

            	
              617

               

            
	
              Barbara
                Lusen

               

            	
              307

               

            
	
              William
                J. Mallen Trust DTD 4-29-94 William J. Mallen Trustee

               

            	
              8,016

               

            
	
              Stephen
                Mann

               

            	
              17

               

            
	
              Manor
                LLC

               

            	
              80,556

               

            
	
              R.
                Craig Martin

               

            	
              754

               

            
	
              Mary
                Jane Downs & Charles F. Downs TTEES

              Mary
                Jane Downs Living Trust UA DTD 12-06-04

               

            	
               

              754

               

            
	
              J.
                Stanley Mattison

               

            	
              79

               

            
	
              Henry
                E. Mawicke

               

            	
              636

               

            
	
              Richard
                McClintock

               

            	
              623

               

            
	
              McElroy
                Management Inc.

               

            	
              5,478

               

            
	
              Eileen
                Millar

               

            	
              3,072

               

            
	
              Linda
                Miller

               

            	
              2,000

               

            
	
              Lila
                Atkins Mulkey

               

            	
              7,327

               

            
	
              Peter
                Murphy

               

            	
              56,184

               

            
	
              Anthony
                Muscatello

               

            	
              81,654

               

            
	
              Ignatius
                Musti

               

            	
              1,508

               

            
	
              New
                Land Associates Limited Partnership

               

            	
              1,664

               

            
	
              Kris
                Nielsen

               

            	
              178

               

            
	
              North
                Star Associates Limited Partnership

               

            	
              19,333

               

            
	
              George
                F. Obrecht

               

            	
              5,289

               

            
	
              Paul
                F. Obrecht

               

            	
              4,455

               

            
	
              Richard
                F. Obrecht

               

            	
              5,289

               

            
	
              Thomas
                F. Obrecht

               

            	
              5,289

               

            
	
              Catherine
                A. O’Brien

               

            	
              832

               

            
	
              Lee
                O’Brien TTEE of the Martha J. Harbison

              Testamentary
                Trust FBO Christopher C. O’Brien

               

            	
               

              666

               

            
	
              Martha
                E. O’Brien

               

            	
              832

               

            
	
              Patricia
                A. O’Brien

               

            	
              6,387

               

            
	
              Peter
                O’Connor

               

            	
              56,844

               

            
	
              Steve
                Ohren

               

            	
              33,366

               

            
	
              P&D
                Partners LP

               

            	
              1,440

               

            
	
              Partridge
                Road Associates

               

            	
              2,751

               

            
	
              Sybil
                T. Patten

               

            	
              1,816

               

            
	
              PeeGee
                L.P.

               

            	
              4,817

               

            
	
              Lawrence
                Peters

               

            	
              960

               

            
	
              Jeffrey
                Pion

               

            	
              2,879

               

            
	
              Pipkin
                Family Trust DTD 10-6-89 Chester & Janice Pipkin Trustees

               

            	
              3,140

               

            
	
              Peter
                M. Polow

               

            	
              557

               

            
	
              Keith
                J. Pomeroy TTEE of Keith J. Pomeroy

              Revocable
                TR Agreement DTD 12-13-76 as

              Amended
                & Restated 6-28-95

               

            	
               

               

              104,954

               

            
	
              Princeton
                South at Lawrenceville LLC

               

            	
              4,692

               

            
	
              Princeton
                South at Lawrenceville One

               

            	
              4,265

               

            
	
              Swift
                Terminal Properties

               

            	
              183,158

               

            
	
              Abraham
                Punia

               

            	
              307

               

            
	
              RBZ
                LLC

               

            	
              155

               

            
	
              R.E.A.
                Associates

               

            	
              8,908

               

            
	
              RJB
                Ford City Limited Partnership

               

            	
              158,438

               

            
	
              RJB
                II Limited Partnership

               

            	
              40,788

               

            
	
              Marilyn
                Rangel IRA DTD 2-5-86 Custodian Smith Barney Shearson

               

            	
              969

               

            
	
              Richard
                Rapp

               

            	
              23

               

            
	
              Jack
                F. Ream

               

            	
              1,071

               

            
	
              Seymour
                D. Reich

               

            	
              154

               

            
	
              James
                C. Reynolds

               

            	
              40,284

               

            
	
              Andre
                G. Richard

               

            	
              1,508

               

            
	
              Rebecca
                S. Roberts

               

            	
              8,308

               

            
	
              Leslie
                A. Rubin Ltd.

               

            	
              4,048

               

            
	
              James
                Sage

               

            	
              2,156

               

            
	
              James
                R. Sage

               

            	
              3,364

               

            
	
              Kathleen
                Sage

               

            	
              50

               

            
	
              Wilton
                Wade Sample

               

            	
              5,449

               

            
	
              Debbie
                B. Schneeman

               

            	
              740

               

            
	
              Norma
                A. Schulze

               

            	
              307

               

            
	
              Sciport
                Discovery Center

               

            	
              30

               

            
	
              Sealy
                & Company, Inc.

               

            	
              37,119

               

            
	
              Sealy
                Florida, Inc.

               

            	
              675

               

            
	
              Sealy
                Professional Drive, L.L.C.

               

            	
              2,906

               

            
	
              Sealy
                Real Estate Services, Inc.

               

            	
              148,478

               

            
	
              Sealy
                Unitholder, L.L.C.

               

            	
              31,552

               

            
	
              Mark
                P. Sealy

               

            	
              8,451

               

            
	
              Scott
                P. Sealy

               

            	
              40,902

               

            
	
              Shadeland
                Associates Limited Partnership

               

            	
              42,976

               

            
	
              Frances
                Shankman Insurance Trust,

              Frances
                Shankman Trustee

               

            	
               

              16,540

               

            
	
              Sam
                Shamie, Trustee of the Sam Shamie

              Trust
                Agreement DTD 3-16-78, as Restated 11-16-93

               

            	
               

              375,000

               

            
	
              Garrett
                E. Sheehan

               

            	
              513

               

            
	
              Jay
                H. Shidler

               

            	
              68,020

               

            
	
              Jay
                H. Shidler and Wallette A. Shidler TEN ENT

               

            	
              1,223

               

            
	
              Shidler
                Equities LP

               

            	
              254,541

               

            
	
              D.W.
                Sivers Co.

               

            	
              12,265

               

            
	
              Dennis
                W. Sivers

               

            	
              27,636

               

            
	
              Sivers
                Family Real Property, Limited Liability Company

               

            	
              12,062

               

            
	
              Sivers
                Investment Partnership

               

            	
              283,500

               

            
	
              Wendel
                C. Sivers Marital Trust UW DTD 2-20-81 Dennis W. Sivers & G. Burke
                Mims CO-TTEES

               

            	
              14,020

               

            
	
              Estate
                of Albert Sklar, Miriam M. Sklar Executrix

               

            	
              3,912

               

            
	
              Michael
                B. Slade

               

            	
              2,829

               

            
	
              Ellen
                Margaret Smith

               

            	
              1,000

               

            
	
              Joseph
                Edward Smith

               

            	
              1,000

               

            
	
              Kevin
                Smith

               

            	
              10,571

               

            
	
              Olivia
                Jane Smith

               

            	
              1,000

               

            
	
              Arnold
                R. Sollar TTEE for the

              Dorothy
                Sollar Residuary TR

               

            	
               

              307

               

            
	
              Spencer
                and Company

               

            	
              154

               

            
	
              SPM
                Industrial LLC

               

            	
              5,262

               

            
	
              SRS
                Partnership

               

            	
              2,142

               

            
	
              Robert
                Stein TTEE UA DTD 5-21-96 FBO Robert Stein

               

            	
              63,630

               

            
	
              S.
                Larry Stein TTEE under Revocable Trust Agreement DTD

              9-22-99
                S. Larry Stein Grantor

               

            	
               

              63,630

               

            
	
              Sterling
                Family Trust DTD 3-27-80 Donald & Valerie A. Sterling
                Trustees

               

            	
              3,559

               

            
	
              Jonathan
                Stott

               

            	
              80,026

               

            
	
              Victor
                Strauss

               

            	
              77

               

            
	
              Catherine
                O’Brien Sturgis

               

            	
              666

               

            
	
              Mitchell
                Sussman

               

            	
              410

               

            
	
              Donald
                C. Thompson TTEE UA DTD 12-31-98 FBO Donald C. Thompson Revocable
                Family
                Trust

               

            	
              39,243

               

            
	
              Michael
                T. Tomasz UA DTD 2-5-90 Trustee of the Michael T. Tomasz
                Trust

               

            	
              36,033

               

            
	
              Barry
                L. Tracey

               

            	
              2,142

               

            
	
              William
                S. Tyrrell

               

            	
              2,906

               

            
	
              Burton
                S. Ury

               

            	
              9,072

               

            
	
              L.
                Gary Waller & Nancy R. Waller JT TEN

               

            	
              37,587

               

            
	
              James
                J. Warfield

               

            	
              330

               

            
	
              Phyllis
                M. Warsaw Living Trust

               

            	
              16,540

               

            
	
              Wilson
                Management Company LLC

               

            	
              35,787

               

            
	
              Elmer
                H. Wingate, Jr.

               

            	
              1,688

               

            
	
              Ralph
                G. Woodley TTEE under Revocable Trust Agreement

               

            	
              16,319

               

            
	
              World’s
                Fair Limited Partnership

               

            	
              1,664

               

            
	
              WSW
                1988 Exchange Fund LP c/o WSW Capital Inc. Credit Suisse Asset Mgt.
                LLC

               

            	
              32,000

               

            
	
              Sam
                L. Yaker TTEE of the Sam L. Yaker Revocable Trust Agreement DTD
                2-14-84

               

            	
              37,870

               

            
	
              Johannson
                Yap

               

            	
              1,680

               

            
	
              Richard
                H. Zimmerman Trustee of the Richard H. Zimmerman

              Living
                Trust DTD 10-15-90 as amended

               

            	
               

              28,988

               

            
	
              Gerald
                & Sharon Zuckerman JT TEN

               

            	
              615

               

            

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      1C

     

    LB
      Partners

     

    Jernie
      Holdings Corp., a New York corporation

     

    Fourbur
      Co., L.L.C., a New York limited liability company

     

    Fourbur
      Family Co., L.P., a New York limited partnership

     

    Jerome
      Lazarus

     

    Constance
      Lazarus

     

    Susan
      Burman

     

    Judith
      Draizin

     

    Jan
      Burman

     

    Judith
      Draizin as custodian

    under
      the
      NYUGMA until 

    age
      21
      for Danielle Draizin

     

    Judith
      Draizin as custodian

    under
      the
      NYUGMA until 

    age
      21
      for Heather Draizin

     

    Judith
      Draizin as custodian

    under
      the
      NYUGMA until 

    age
      21
      for Jason Draizin

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      1D

     

    
      	
              Contributor
                Partner

               

            	
              Protected
                Amount

               

            
	
              Kerry
                Acker

               

            	
              *See
                Below

            
	
              Sanders
                H. Acker

               

            	
              *See
                Below

            
	
              Charles
                T. Andrews

               

            	
              *See
                Below

            
	
              Daniel
                R. Andrew, TR of the Daniel R.

               

              Andrew
                Trust UA 12-29-92

               

            	
              *See
                Below

            
	
              The
                Arel Company

               

            	
              *See
                Below

            
	
              Arnold
                Y. Aronoff

               

            	
              *See
                Below

            
	
              Daniel
                J. Aronoff

               

            	
              *See
                Below

            
	
              Lynn
                E. Aronoff

               

            	
              *See
                Below

            
	
              E.
                Donald Bafford

               

            	
              *See
                Below

            
	
              William
                Baloh

               

            	
              *See
                Below

            
	
              Enid
                Barden TTEE of the Enid Barden

               

              Trust
                DTD 6-28-95

               

            	
              *See
                Below

            
	
              Enid
                Barden TTE of the Enid Barden

              Trust
                of 6-28-96

               

            	
              *See
                Below

            
	
              Emil
                Billich

               

            	
              *See
                Below

            
	
              Don
                N. Blurton & Patricia H. Blurton Trustees UA DTD 4-11-96 Blurton
                Revocable Family Trust

            	
              *See
                Below

            
	
              Michael
                W. Brennan

               

            	
              *See
                Below

            
	
              Helen
                Brown

               

            	
              *See
                Below

            
	
              Henry
                D. Bullock & Terri D. Bullock &

              Shawn
                Stevenson TR of the Bullock

              Childrens
                Education Trust UA 12-20-94,

              FBO
                Benjamin Dure Bullock

               

            	
              *See
                Below

            
	
              Henry
                D. Bullock & Terri D. Bullock &

              Shawn
                Stevenson TR of the Bullock

              Childrens
                Education Trust UA 12-20-94,

              FBO
                Christine Laurel Bullock

               

            	
              *See
                Below

            
	
              Ernestine
                Burstyn

               

            	
              *See
                Below

            
	
              Calamer,
                Inc.

               

            	
              *See
                Below

            
	
              Perry
                C. Caplan

               

            	
              *See
                Below

            
	
              Carew
                Corporation

               

            	
              *See
                Below

            
	
              Magdalena
                G. Castleman

               

            	
              *See
                Below 

            
	
              Cliffwood
                Development Company

               

            	
              *See
                Below 

            
	
              Michael
                G. Damone TR of the Michael G.

              Damone
                Trust UA 11-4-69

               

            	
              *See
                Below 

            
	
              John
                E. De B Blockey TR of the John E. De B Blockey Trust

            	
              *See
                Below 

            
	
              Robert
                L. Denton

               

            	
              *See
                Below 

            
	
              Henry
                E. Dietz Trust UA 1-16-81

               

            	
              *See
                Below 

            
	
              Darwin
                B. Dosch

               

            	
              *See
                Below 

            
	
              Charles
                F. Downs

               

            	
              *See
                Below 

            
	
              Greg
                & Christina Downs JT TEN

               

            	
              *See
                Below 

            
	
              Gregory
                Downs

               

            	
              *See
                Below 

            
	
              Draizin
                Family Partnership, L.P.

               

            	
              *See
                Below 

            
	
              Joseph
                S. Dresner

               

            	
              *See
                Below 

            
	
              Milton
                H. Dresner TR of the Milton H. Dresner Revocable Trust UA 10-22-76
                

            	
              *See
                Below 

            
	
              Martin
                Eglow

               

            	
              *See
                Below 

            
	
              Rand
                H. Falbaum

               

            	
              *See
                Below 

            
	
              Rowena
                Finke

              
              

            	
              *See
                Below 

            
	
              First
                & Broadway Limited Partnership

              
              

            	
              *See
                Below 

            
	
              Fourbur
                Family Co., L.P.

               

            	
              *See
                Below 

               

            
	
              Ester
                Fried

               

            	
              *See
                Below 

            
	
              Jack
                Friedman TR of the Jack Friedman Revocable Living Trust UA
                3-23-78

               

            	
              *See
                Below 

            
	
              Robert
                L. Friedman

               

            	
              *See
                Below 

            
	
              Nancy
                Gabel

               

            	
              *See
                Below 

            
	
              Gerlach
                Family Trust DTD 6-28-85 Stanley & Linda Gerlach Trustees

               

            	
              *See
                Below 

            
	
              Martin
                Goodstein

               

            	
              *See
                Below 

            
	
              Dennis
                G. Goodwin and Jeannie L. Goodwin TEN ENT

               

            	
              *See
                Below 

            
	
              Jeffrey
                L. Greenberg

               

            	
              *See
                Below 

            
	
              Stanley
                Greenberg & Florence Greenberg JT TEN

               

            	
              *See
                Below 

            
	
              Thelma
                C. Gretzinger Trust

               

            	
              *See
                Below 

            
	
              Stanley
                Gruber

               

            	
              *See
                Below 

            
	
              H.P.
                Family Group LLC

               

            	
              *See
                Below 

            
	
              Vivian
                M. Hack TTEE UA DTD 12-26-97 Hack Living Trust

               

            	
              *See
                Below 

            
	
              Clay
                Hamlin & Lynn Hamlin JT TEN

               

            	
              *See
                Below 

            
	
              Andrew
                Holder

               

            	
              *See
                Below 

            
	
              Ruth
                Holder

               

            	
              *See
                Below 

            
	
              Robert
                W. Holman, Jr.

               

            	
              *See
                Below 

            
	
              Holman/Shidler
                Investment Corporation

               

            	
              *See
                Below 

            
	
              Robert
                S. Hood Living Trust DTD 1-9-90 & amended 12-16-96 Robert S. Hood
                Trustee

               

            	
              *See
                Below 

            
	
              Steven
                B. Hoyt

               

            	
              *See
                Below 

            
	
              Jerry
                Hymowitz

               

            	
              *See
                Below 

            
	
              Karen
                L. Hymowitz

               

            	
              *See
                Below 

            
	
              Seymour
                Israel

               

            	
              *See
                Below 

            
	
              Frederick
                K. Ito Trustee UA DTD 9-9-98 FBO The Frederick K. Ito Trust

               

            	
              *See
                Below 

            
	
              Frederick
                K. Ito and June Y. Ito Trustees UA DTD 9-9-98 FBO The June Y. Ito
                Trust

               

            	
              *See
                Below 

            
	
              JP
                Trusts LLC

               

            	
              *See
                Below 

            
	
              Jacob
                Family Trust UA DTD 10-1-92 Thomas V. Clagett Trustee

               

            	
              *See
                Below 

            
	
              Michael
                W. Jenkins

               

            	
              *See
                Below 

            
	
              Jernie
                Holdings Corp.

               

            	
              *See
                Below

            
	
              Charles
                Mark Jordan

               

            	
              *See
                Below 

            
	
              Nourhan
                Kailian

               

            	
              *See
                Below 

            
	
              H.L.
                Kaltenbacher, P.P. Kaltenbacher & J.K. Carr TTEES

              of
                the Joseph C. Kaltenbacher Credit Shelter TR

               

            	
              *See
                Below 

            
	
              Sarah
                Katz

               

            	
              *See
                Below 

            
	
              Carol
                F. Kaufman

               

            	
              *See
                Below 

            
	
              KEP
                LLC

               

            	
              *See
                Below 

            
	
              Jack
                Kindler

               

            	
              *See
                Below 

            
	
              Kirshner
                Family Trust #1 DTD 4-8-76 Berton & Barbara Kirshner
                Trustees

               

            	
              *See
                Below 

            
	
              Kirshner
                Trust #4 FBO Todd Kirshner DTD 12-30-76 Berton Kirshner
                Trustee

               

            	
              *See
                Below 

            
	
              Arthur
                Kligman

               

            	
              *See
                Below 

            
	
              Joan
                R. Krieger TTEE of the Joan R. Krieger Revocable Trust DTD
                1021-97

               

            	
              *See
                Below 

            
	
              William
                L. Kreiger, Jr.

               

            	
              *See
                Below 

            
	
              LP
                Family Group LLC

               

            	
              *See
                Below 

            
	
              Paul
                T. Lambert

               

            	
              *See
                Below 

            
	
              Constance
                Lazarus

               

            	
              *See
                Below

            
	
              Jerome
                Lazarus

               

            	
              *See
                Below

            
	
              Susan
                Lebow

               

            	
              *See
                Below 

            
	
              Arron
                Leifer

               

            	
              *See
                Below 

            
	
              Barbara
                Lusen

               

            	
              *See
                Below 

            
	
              William
                J. Mallen Trust DTD 4-29-94,

               

              William
                J. Mallen Trustee

               

            	
              *See
                Below 

            
	
              Stephen
                Mann

               

            	
              *See
                Below 

            
	
              R.
                Craig Martin

               

            	
              *See
                Below 

            
	
              J.
                Stanley Mattison

               

            	
              *See
                Below 

            
	
              Henry
                E. Mawicke

               

            	
              *See
                Below 

            
	
              Eileen
                Millar

               

            	
              *See
                Below 

            
	
              Linda
                Miller

               

            	
              *See
                Below 

            
	
              Peter
                Murphy

               

            	
              *See
                Below 

            
	
              Anthony
                Muscatello

               

            	
              *See
                Below 

            
	
              New
                Land Associates Limited Partnership

               

            	
              *See
                Below 

            
	
              Kris
                Nielsen

               

            	
              *See
                Below 

            
	
              North
                Star Associates Limited Partnership

               

            	
              *See
                Below 

            
	
              George
                F. Obrecht

               

            	
              *See
                Below 

            
	
              Paul
                F. Obrecht

               

            	
              *See
                Below 

            
	
              Richard
                F. Obrecht

               

            	
              *See
                Below 

            
	
              Thomas
                F. Obrecht

               

            	
              *See
                Below 

            
	
              Peter
                O’Connor

               

            	
              *See
                Below 

            
	
              P&D
                Partners LP

               

            	
              *See
                Below 

            
	
              Partridge
                Road Associates

               

            	
              *See
                Below 

            
	
              Sybil
                T. Patten

               

            	
              *See
                Below 

            
	
              PeeGee
                L.P.

               

            	
              *See
                Below 

            
	
              Lawrence
                Peters

               

            	
              *See
                Below 

            
	
              Jeffrey
                Pion

               

            	
              *See
                Below 

            
	
              Peter
                M. Polow

               

            	
              *See
                Below 

            
	
              Keith
                J. Pomeroy TTEE of Keith J. Pomeroy

              Revocable
                TR Agreement DTD 12-13-76 as

              Amended
                & Restated 6-28-95

               

            	
              *See
                Below 

            
	
              Princeton
                South at Lawrenceville LLC

               

            	
              *See
                Below 

            
	
              Princeton
                South at Lawrenceville One

               

            	
              *See
                Below 

            
	
              Abraham
                Punia

               

            	
              *See
                Below 

            
	
              RBZ
                LLC

               

            	
              *See
                Below 

            
	
              R.E.A.
                Associates

               

            	
              *See
                Below 

            
	
              Richard
                Rapp

               

            	
              *See
                Below 

            
	
              Jack
                F. Ream

               

            	
              *See
                Below 

            
	
              Seymour
                D. Reich

               

            	
              *See
                Below 

            
	
              James
                C. Reynolds

               

            	
              *See
                Below 

            
	
              Rebecca
                S. Roberts

               

            	
              *See
                Below 

            
	
              Leslie
                A. Rubin Ltd.

               

            	
              *See
                Below 

            
	
              SRS
                Partnership

               

            	
              *See
                Below 

            
	
              Kathleen
                Sage

               

            	
              *See
                Below 

            
	
              Debbie
                B. Schneeman

               

            	
              *See
                Below 

            
	
              Norma
                A. Schulze

               

            	
              *See
                Below 

            
	
              Shadeland
                Associates Limited Partnership

               

            	
              *See
                Below 

            
	
              Frances
                Shankman Insurance Trust,

               

              Frances
                Shankman Trustee

               

            	
              *See
                Below 

            
	
              Sam
                Shamie, Trustee of the Sam Shamie

              Trust
                Agreement DTD 3-16-78, as

              Restated
                11-16-93

               

            	
              *See
                Below 

            
	
              Jay
                H. Shidler

               

            	
              *See
                Below 

            
	
              Jay
                H. Shidler and Wallette A. Shidler TEN ENT

               

            	
              *See
                Below 

            
	
              Shidler
                Equities LP

               

            	
              *See
                Below 

            
	
              D.W.
                Sivers Co.

               

            	
              *See
                Below 

            
	
              Dennis
                W. Sivers

               

            	
              *See
                Below 

            
	
              Sivers
                Family Real Property, Limited Liability Company

               

            	
              *See
                Below 

            
	
              Sivers
                Investment Partnership

               

            	
              *See
                Below 

            
	
              Wendel
                C. Sivers Marital Trust UW DTD 2-20-81 Dennis W. Sivers & G. Burke
                Mims CO-TTEES

               

            	
              *See
                Below 

            
	
              Kevin
                Smith

               

            	
              *See
                Below 

            
	
              Spencer
                and Company

               

            	
              *See
                Below 

            
	
              Robert
                Stein TTEE UA DTD 5-21-96 FBO Robert Stein

               

            	
              *See
                Below 

            
	
              S.
                Larry Stein TTEE under Revocable Trust Agreement DTD 9-22-99 S. Larry
                Stein Grantor

               

            	
              *See
                Below 

            
	
              Sterling
                Family Trust DTD 3-27-80 Donald & Valerie A. Sterling
                Trustees

               

            	
              *See
                Below 

            
	
              Jonathan
                Stott

               

            	
              *See
                Below 

            
	
              Victor
                Strauss

               

            	
              *See
                Below 

            
	
              Mitchell
                Sussman

               

            	
              *See
                Below 

            
	
              Donald
                C. Thompson TTEE UA DTD 12-31-98 FBO Donald C. Thompson Revocable
                Family
                Trust

               

            	
              *See
                Below 

            
	
              Michael
                T. Tomasz UA DTD 2-5-90 Trustee of the Michael T. Tomasz
                Trust

               

            	
              *See
                Below 

            
	
              Barry
                L. Tracey

               

            	
              *See
                Below 

            
	
              William
                S. Tyrrell

               

            	
              *See
                Below 

            
	
              Burton
                S. Ury

               

            	
              *See
                Below 

            
	
              James
                J. Warfield

               

            	
              *See
                Below 

            
	
              Phyllis
                M. Warsaw Living Trust

               

            	
              *See
                Below 

            
	
              Wilson
                Management Co. LLC

               

            	
              *See
                Below 

            
	
              Elmer
                H. Wingate, Jr.

               

            	
              *See
                Below 

            
	
              Ralph
                G. Woodley TTEE under Revocable Trust Agreement

               

            	
              *See
                Below 

            
	
              World’s
                Fair Limited Partnership

               

            	
              *See
                Below 

            
	
              Sam
                L. Yaker TTEE of the Sam L. Yaker Revocable Trust Agreement DTD
                2-14-84

               

            	
              *See
                Below 

            
	
              Richard
                H. Zimmerman Trustee of the Richard H. Zimmerman Living Trust DTD
                10-15-90
                as amended

               

            	
              *See
                Below 

            
	
              Gerald
                & Sharon Zuckerman JT TEN

               

            	
              *See
                Below 

            
	
              New
                Land Associates LP

               

            	
              2,195,750

            
	
              World’s
                Fair Partners, LP

               

            	
              211,208

            
	
              Princeton
                South at Lawrenceville

               

            	
              5,267,344

            
	
              Stanley
                Gruber

               

            	
              1,388,338

            
	
              Stephen
                Mann

               

            	
              120,174

            
	
              Seymour
                Israel

               

            	
              120,169

            
	
              James
                O’Neil Duffy, Jr.

               

            	
              4,107

            
	
              Garrett
                E. Sheehan

               

            	
              4,107

            
	
              Andrew
                Holder

               

            	
              10,000

            
	
              Arron
                Leifer

               

            	
              300,000

            
	
              Arthur
                Kligman

               

            	
              80,000

            
	
              Barbara
                Lusen

               

            	
              80,000

            
	
              Carol
                F. Kaufman

               

            	
              50,000

            
	
              Debbie
                B. Schneeman

               

            	
              30,000

            
	
              Emil
                Billich

               

            	
              25,000

            
	
              Ernestine
                Burstyn

               

            	
              160,000

            
	
              H.L.
                Kaltenbacher, P.P. Kaltenbacher & J.K. Carr TTEES of the Joseph C.
                Kaltenbacher Credit Shelter TR

               

            	
              100,000

            
	
              HP
                Family Group, LLC

               

            	
              16,110,000

            
	
              Jack
                Kindler

               

            	
              100,000

            
	
              Jerry
                Hymowitz

               

            	
              80,000

            
	
              JP
                Trusts LLC

               

            	
              4,729,000

            
	
              Karen
                L. Hymowitz

               

            	
              45,000

            
	
              Kerry
                Acker

               

            	
              45,000

            
	
              Lawrence
                Peters

               

            	
              75,000

            
	
              LP
                Family Group LLC

               

            	
              16,015,000

            
	
              Magdalena
                G. Castleman

               

            	
              80,000

            
	
              Martin
                Goodstein

               

            	
              250,000

            
	
              Mitchell
                Sussman

               

            	
              110,000

            
	
              Nancy
                Gabel

               

            	
              5,000

            
	
              Norma
                A. Schulze

               

            	
              80,000

            
	
              P&D
                Partners LP

               

            	
              100,000

            
	
              PeeGee
                L.P.

               

            	
              25,000

            
	
              Peter
                M. Polow

               

            	
              75,000

            
	
              R.E.A.
                Associates

               

            	
              4,192,000

            
	
              Richard
                Rapp

               

            	
              10,000

            
	
              Sanders
                H. Acker

               

            	
              80,000

            
	
              Sarah
                Katz

               

            	
              80,000

            
	
              Seymour
                D. Reich

               

            	
              45,000

            
	
              Spencer
                and Company

               

            	
              45,000

            
	
              Susan
                Lebow

               

            	
              30,000

            
	
              The
                Arel Company

               

            	
              80,000

            
	
              Victor
                Strauss

               

            	
              25,000

            
	
              WSW
                1998 Exchange Fund L.P.

               

            	
              315,000

            
	
              Rowena
                Finke

               

            	
              45,000

            
	
              Ruth
                Holder

               

            	
              230,000

            
	
              Stanley
                Greenberg & Florence Greenberg JT TEN

               

            	
              80,000

            
	
              Alvin
                R. Brown & Helen Brown

               

            	
              80,000

            
	
              Abraham
                Punia

               

            	
              80,000

            
	
              Francis
                Shankman Insurance Trust, Francis Shankman Trustee

               

            	
              200,000

            
	
              Jerome
                Lazarus

               

            	
              17,000,000

            
	
              Constance
                Lazarus

               

            	
              3,600,000

            
	
              Jernie
                Holdings Corp.

               

            	
              100,000

            
	
              Fourbur
                Family Co., L.P.

               

            	
              5,985,000

            
	
              Robert
                L. Friedman

               

            	
              249,000

            
	
              Phyllis
                M. Warsaw Living Trust

               

            	
              212,000

            

    

    

    

    * An
      amount
      equal to (a) the taxable gain, if any, that would be realized by such Additional
      Limited Partner if such Additional Limited Partner were to dispose of its
      Interest for no consideration other than the release or deemed release of
      liabilities of the partnership assumed by or otherwise allocable to such
      Additional Limited Partner under Code Section 752, as such hypothetical gain
      is
      determined from time to time, less (b) such Additional Limited Partner’s
      share of “qualified nonrecourse financing” as defined in Code Section 465(b)(6)
      and the Treasury Regulations thereunder, as such share is determined in
      accordance with Treasury Regulations Section 1.752-3(a).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FIRST
      INDUSTRIAL, L.P.

     

    EXHIBIT
      2

     

    TO

     

    NINTH
      AMENDED AND RESTATED

     

    LIMITED
      PARTNERSHIP AGREEMENT

     

    Form
      of Redemption Notice

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      2

     

    Redemption
      Notice

     

    The
      undersigned hereby irrevocably (i) elects to exercise its redemption
      rights
      contained in Section 9.1(A) of the Ninth Amended and Restated Limited
      Partnership Agreement of First Industrial, L.P. (the “Partnership Agreement”)
      with respect to an aggregate of _____ Partnership Units (as defined in the
      Partnership Agreement), (ii) surrenders such Partnership Units and all
      right, title and interest therein and (iii) directs that the REIT shares
      (as defined in the Partnership Agreement), or applicable cash amount if so
      determined by the General Partner (as defined in the Partnership Agreement)
      in
      accordance with the Partnership Agreement, deliverable upon redemption of such
      Partnership Units be delivered to the address specified below.

     

    Dated:
      ______________________

     

    Name
      of
      Limited Partner: ______________________

     

    Social
      Security or

     

    Federal
      Employer ID Number: ______________________

     

     

    
      	 	 
	 	  (Signature
              of Limited Partner)
	 	 
	 	 
	 	
               
(Street
                Address)

            
	 	 
	 	 
	 	  (City) 
(State)(Zip
              Code)
	 	 
	 	 
	 	 
	 	 Signature
              Guaranteed by:
	 	 
	 	 
	 	 

    

     

     

     

     

     

     

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FIRST
      INDUSTRIAL, L.P.

     

    
    

    EXHIBIT
      3

    TO

     

    NINTH
      AMENDED AND RESTATED

     

    LIMITED
      PARTNERSHIP AGREEMENT

     

    Form
      of Registration Rights Agreement

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      3

     

    
      
        

      

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    Dated
      as of June __, 1994

     

    of

     

    First
      Industrial Realty Trust, Inc.

     

    for
      the benefit of

     

    HOLDERS
      OF LIMITED PARTNERSHIP UNITS

     

    of

     

    First
      Industrial, L.P.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Registration
      Rights Agreement

     

    THIS
      REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
      June   , 1994, by First Industrial Realty Trust, Inc.
      (the
“Company”) for the benefit of the persons who own limited partnership units
      (“Units”) of First Industrial, L.P. (the “Partnership”) on the date hereof and
      their successors, assigns and transferees (herein referred to collectively
      as
      the “Holders” and individually as a “Holder”).

     

    WHEREAS,
      on the date hereof each Holder is or will become the owner of Units in the
      Partnership in connection with the contribution (the “Contributions”) of certain
      real properties and other assets to the Partnership;

     

    WHEREAS,
      on the date hereof the company is consummating an initial public offering of
      its
      common stock and is becoming the sole general partner of the
      Partnership;

     

    WHEREAS,
      in connection with the foregoing, the Company has agreed, subject to the terms,
      conditions and limitations set forth in the limited partnership agreement of
      the
      Partnership (the “Partnership Agreement”), to provide the Holders with certain
      registration rights.

     

    NOW,
      THEREFORE, the Company for the benefit of the Holders agrees as
      follows:

     

    Section
      1. Definitions.

     

    As
      used
      in this Agreement, the following capitalized defined terms shall have the
      following meanings:

     

    Exchange
      Act:
      The
      Securities Exchange Act of 1934, as amended form time to time.

     

    Holders
      or Holders:
      As set
      forth in the preamble.

     

    Majority
      Holders:
      At any
      time, Holders of Registrable Securities and Units then redeemable for
      Registrable Securities, who if all Units were so redeemed, would then hold
      a
      majority of the Registrable Securities.

     

    NASD:
      The
      National Association of Securities Dealers, Inc.

     

    Person:
      Any
      individual, partnership, corporation, trust or other entity.

     

    Prospectus:
      A
      prospectus included in the Shelf Registration statement, including any
      preliminary prospectus, and any such prospectus as amended or supplemented
      by
      any prospectus supplement with respect to the terms of the offering of any
      portion of the Registrable Securities covered by the Shelf Registration
      Statement, and by all other amendments and supplements to such prospectus,
      including post-effective amendments, and in each case including all material
      incorporated by reference therein.

     

    Registrable
      Securities:
      The
      Shares, excluding (i) Shares for which the Shelf Registration Statement
      shall have become effective under the Securities Act and which have been
      disposed of under the Shelf Registration Statement (ii) Shares sold
      or
      otherwise distributed pursuant to Rule 144 under the Securities Act
      and
      (iii) Shares as to which registration under the Securities Act is not
      required to permit the sale thereof to the public.

     

    Registration
      Expenses:
      Any and
      all expenses incident to performance of or compliance with this Agreement,
      including, without limitation: (i) all SEC, stock exchange or NASD
      registration and filing fees, (ii) all fees and expenses incurred in
      connection with compliance with state securities or blue sky laws (including
      reasonable fees and disbursements of counsel in connection with blue sky
      qualification of any of the Registrable Securities and the preparation of a
      Blue
      Sky Memorandum) and compliance with the rules of the NASD, (iii) all
      

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    expenses
      of any Persons in preparing or assisting in preparing, word processing, printing
      and distributing the Shelf Registration Statement, any Prospectus, certificates
      and other documents relating to the performance of and compliance with this
      Agreement, (iv) all fees and expenses incurred in connection with the
      listing, if any, of any of the Registrable Securities on any securities exchange
      or exchanges pursuant to Section 3(1) hereof, and (v) the fees
      and
      disbursements of counsel for the Company and of the independent public
      accountants of the Company, including the expenses of any special audits or
      “cold comfort” letters, if any, required by or incident to such performance and
      compliance. Registration Expenses shall specifically exclude underwriting
      discounts and commissions, brokerage or dealer fees, the fees and disbursements
      of counsel, accountants or other representatives of a selling Holder, and
      transfer taxes, if any, relating to the sale or disposition of Registrable
      Securities by a selling Holder, all of which shall be borne by such Holder
      in
      all cases.

     

    Registration
      Notice:
      As set
      forth in Section 3(b) hereof.

     

    Sale
      Period:
      The
      45-day period immediately following the filing with the SEC by the Company
      of an
      annual report of the Company on Form 1-K or a quarterly report of the
      Company on Form 10-Q or such other period as the Company may
      determine.

     

    SEC:
      The
      Securities and Exchange Commission.

     

    Securities
      Act:
      The
      Securities Act of 1933, as amended from time to time.

     

    Shares:
      The
      shares of common stock, $.01 par value, of the Company issued to Holders of
      Unites upon redemption or exchange of their Units.

     

    Shelf
      Registration:
      A
      registration required to be effected pursuant to Section 2
      hereof.

     

    Shelf
      Registration Statement:
      A
“shelf” registration statement of the Company and any other entity required to
      be a registrant with respect to such shelf registration statement pursuant
      to
      the requirements of the Securities Act which covers all of the Registrable
      Securities on an appropriate form under Rule 415 under the Securities
      Act,
      or any similar rule that may be adopted by the SEC, and all amendments and
      supplements to such registration statement, including post-effective amendments,
      in each case including the Prospectus contained therein, all exhibits thereto
      and all materials incorporated by reference therein.

     

    Units:
      Limited
      partnership interests in the Partnership issued to the holders in connection
      with the Contributions.

     

    Section
      2. Shelf Registration Under the Securities Act.

     

    (a) Filing
      of Shelf Registration Statement.
      Within
      13 months following the date hereof, the Company shall cause to be filed a
      Shelf
      Registration Statement providing for the sale by the Holders of all of the
      Registrable Securities ion accordance with the terms hereof and will use its
      reasonable best efforts to cause such Shelf Registration Statement to be
      declared effective by the SEC as soon as reasonably practicable. The Company
      agrees to use it reasonable best efforts to keep the Shelf Registration
      Statement continuously effective under the Securities Act until such time as
      the
      aggregate number of Units and Registrable Securities outstanding is less than
      5%
      of the aggregate number of Units outstanding on the date hereof (after giving
      effect to the Contributions) and, subject to Section 3(b) and
      Section 3(i), further agrees to supplement or amend the Shelf Registration
      Statement, if and as required by the rules, regulations or instructions
      applicable to the registration form used by the Company for such Shelf
      Registration Statement or by the Securities Act or by any other rules and
      regulations thereunder for Shelf Registration. Each Holder who sells Shares
      as
      part of the Shelf Registration shall be deemed to have agreed to all of the
      terms and conditions of this Agreement and to have agreed to perform any and
      all
      obligations of a Holder hereunder.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (b) Expenses.
      The
      Company shall pay all Registration Expenses in connection with the registration
      pursuant to Section 2(a). Each Holder shall pay all underwriting discounts
      and
      commissions, brokerage or dealer fees, the fees and disbursements of counsel,
      accountants or other representatives of such Holder and transfer taxes, if
      any,
      relating to the sale or disposition of such Holder’s Registrable Securities
      pursuant to the Shelf Registration Statement or Rule 144 under the Securities
      Act.

     

    (c) Inclusion
      in Shelf Registration Statement.
      Not
      later than 30 days prior to filing the Shelf Registration Statement with the
      SEC, the Company shall notify each Holder of its intention to make such filing
      and request advice from each Holder as to whether such Holder desires to have
      Registrable Securities held by it or which it is entitled to receive not later
      than the last day of the first Sale Period occurring in whole or in part after
      the date of such notice included in the Shelf Registration Statement at such
      time. Any Holder who does not provide the information reasonably requested
      by
      the Company in connection with the Shelf Registration Statement as promptly
      as
      practicable after receipt of such notice, but in no event later than 20 days
      thereafter, shall not be entitled to have its Registrable Securities included
      in
      the Shelf Registration Statement at the time it becomes effective, but shall
      have the right thereafter to deliver to the Company a Sale Notice as
      contemplated by Section 3(b).

     

    Section
      3. Registration Procedures.

     

    In
      connection with the obligations of the Company with respect to the Shelf
      Registration Statement pursuant to Section 2 hereof, the Company
      shall:

     

    (a) prepare
      and file with the SEC, within the time period set forth in Section 2(a) hereof,
      a Shelf Registration Statement, which Shelf Registration Statement
      (i) shall be available for the sale of the Registrable Securities in
      accordance with the intended method or methods of distribution by the selling
      Holders thereof and (ii) shall comply as to form in all material respects
      with the requirements of the applicable form and include all financial
      statements required by the SEC to be filed therewith.

     

    (b) subject
      to the last three sentences of this Section 3(b) and to Section 3(i) hereof,
      (i) prepare and file with the SEC such amendments and post-effective
      amendments to the Shelf Registration Statement as may be necessary to keep
      the
      Shelf Registration Statement effective for the applicable period;
      (ii) cause each Prospectus to be supplemented by any required prospectus
      supplement, and as so supplemented to be filed pursuant to Rule 424 or any
      similar rule that may be adopted under the Securities Act; (iii) respond
      promptly to any comments received from the SEC with respect to the Shelf
      Registration Statement, or any amendment, post-effective amendment or supplement
      relating thereto; and (iv) comply with the provisions of the Securities
      Act
      with respect to the disposition of all securities covered by the Shelf
      Registration Statement during the applicable period in accordance with the
      intended method or methods of distribution by the selling Holders thereof.
      Notwithstanding anything to the contrary contained herein, the Company shall
      not
      be required to take any of the actions described in clauses (i), (ii) or (iii)
      above with respect to each particular Holder of Registrable Securities unless
      and until the Company has received either a written notice (a “Registration
      Notice”) from a Holder that such Holder intends to make offers or sales under
      the Shelf Registration Statement as specified in such Registration Notice or
      a
      written response from such Holder of the type contemplated by Section 2(c);
      provided,
      however,
      that
      the Company shall have 7 business days to prepare and file any such amendment
      or
      supplement after receipt of a Registration Notice. Once a Holder has delivered
      such a written response or a Registration Notice to the Company, such Holder
      shall promptly provide to the Company such information as the Company reasonably
      requests in order to identify such Holder and the method of distribution in
      a
      post-effective amendment to the Shelf Registration Statement or a supplement
      to
      a Prospectus. Offers or sales under the Shelf Registration Statement may be
      made
      only during a Sale Period. Such Holder also shall notify the Company in writing
      upon completion of such offer or sale or at such time as such Holder no longer
      intends to make offers or sales under the Shelf Registration
      Statement.

     

    (c) furnish
      to each Holder of Registrable Securities that has delivered a Registration
      Notice to the Company, without charge, as many copies of each applicable
      Prospectus, including each preliminary Prospectus, 

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    and
      any
      amendment or supplement thereto and such other documents as such Holder may
      reasonably request, in order to facilitate the public sale or other disposition
      of the Registrable Securities; the Company consents to the use of such
      Prospectus, including each preliminary Prospectus, by each such Holder of
      Registrable Securities in connection with the offering and sale of the
      Registrable Securities covered by such Prospectus or the preliminary
      Prospectus.

     

    (d) use
      its
      reasonable best efforts to register or qualify the Registrable Securities by
      the
      time the Shelf Registration Statement is declared effective by the SEC under
      all
      applicable state securities or “blue sky” laws of such jurisdictions as any
      Holder of Registrable Securities covered by the Shelf Registration Statement
      shall reasonably request in writing, keep each such registration or
      qualification effective during the period the Shelf Registration Statement
      is
      required to be kept effective or during the period offers or sales are being
      made by a Holder that has delivered a Registration Notice to the Company,
      whichever is shorter, and do any and all other acts and things which may be
      reasonably necessary or advisable to enable such Holder to consummate the
      disposition in each such jurisdiction of such Registrable Securities owned
      by
      such Holder; provided,
      however,
      that
      the Company shall not be required (i) to qualify generally to do business
      in any jurisdiction or to register as a broker or dealer in such jurisdiction
      where it would not be required so to qualify or register but for this Section
      3(d), (ii) to subject itself to taxation in any such jurisdiction or
      (iii) to submit to the general service of process in any such
      jurisdiction.

     

    (e) notify
      each Holder when the Shelf Registration Statement has become effective and
      notify each Holder of Registrable Securities that has delivered a Registration
      Notice to the Company promptly and, if requested by such Holder, confirm such
      advice in writing (i) 3hen any post-effective amendments and supplements
      to
      the Shelf Registration Statement become effective, (ii) of the issuance
      by
      the SEC or any state securities authority of any stop order suspending the
      effectiveness of the Shelf Registration Statement or the initiation of any
      proceedings for that purpose, (iii) if the Company receives any
      notification with respect to the suspension of the qualification of the
      Registrable Securities for sale in any jurisdiction or the initiation of any
      proceeding for such purpose and (iv) of the happening of any event during
      the period the Shelf Registration Statement is effective as a result of which
      the Shelf Registration Statement or a related Prospectus contains any untrue
      statement of a material fact or omits to state any material fact required to
      be
      stated therein or necessary to make the statements therein (in the case of
      the
      Prospectus, in light of the circumstances under which they were made) not
      misleading.

     

    (f) make
      every reasonable effort to obtain the withdrawal of any order suspending the
      effectiveness of the Shelf Registration Statement at the earliest possible
      moment.

     

    (g) furnish
      to each Holder of Registrable Securities that has delivered a Registration
      Notice to the Company, without charge, at least one conformed copy of the Shelf
      Registration Statement and any post-effective amendment thereto (without
      documents incorporated therein by reference or exhibits thereto, unless
      requested).

     

    (h) cooperate
      with the selling Holders of Registrable Securities to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be sold and not bearing any Securities Act legend; and enable certificates
      for
      such Registrable Securities to be issued for such numbers of shares and
      registered in such names as the selling Holders may reasonably request at least
      two (2) business days prior to any sale of Registrable Securities.

     

    (i) subject
      to the last three sentences of Section 3(b) hereof, upon the occurrence of
      any
      event contemplated by Section 3(e)(iv) hereof, use its reasonable best efforts
      promptly to prepare and file a supplement or prepare, file and obtain
      effectiveness of a post-effective amendment to the Shelf Registration Statement
      or a related Prospectus or any document incorporated therein by reference or
      file any other required document so that, as thereafter delivered to the
      purchasers of the Registrable Securities, such Prospectus will not contain
      any
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein or necessary to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (j) make
      available for inspection by representatives of the Holders of the Registrable
      Securities and any counsel or accountant retained by such Holders, all financial
      and other records, pertinent corporate documents and properties of the Company,
      and cause the respective officers, directors and employees of the Company to
      supply all information reasonably requested by any such representative, counsel
      or accountant in connection with the Shelf Registration Statement; provided,
      however,
      that
      such records, documents or information which the Company determines in good
      faith to be confidential, and notifies such representatives, counsel or
      accountants in writing that such records, documents or information are
      confidential, shall not be disclosed by the representatives, counsel or
      accountants unless (i) the disclosure of such records, documents or
      information is necessary to avoid or correct a material misstatement or omission
      in the Shelf Registration Statement, (ii) the release of such records,
      documents or information is ordered pursuant to a subpoena or other order from
      a
      court of competent jurisdiction or (iii) such records, documents or
      information have been generally made available to the public otherwise than
      in
      violation of this Agreement.

     

    (k) a
      reasonable time prior to the filing of any Prospectus, any amendment to the
      Shelf Registration Statement or amendment or supplement to a Prospectus, provide
      copies of such document (not including any documents incorporated by reference
      therein unless requested) to the Holders of Registrable Securities that have
      provided a Registration Notice to the Company.

     

    (l) use
      its
      reasonable best efforts to cause all Registrable Securities to be listed on
      any
      securities exchange on which similar securities issued by the Company are then
      listed.

     

    (m) obtain
      a
      CUSIP number for all Registrable Securities, not later than the effective date
      of the Shelf Registration Statement.

     

    (n) otherwise
      use its reasonable efforts to comply with all applicable rules and regulations
      of the SEC and make available to its security holders, as soon as reasonably
      practicable, an earnings statement covering at least 12 months which shall
      satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
      thereunder.

     

    (o) use
      its
      reasonable best efforts to cause the Registrable Securities covered by the
      Shelf
      Registration Statement to be registered with or approved by such other
      governmental agencies or authorities as may be necessary by virtue of the
      business and operations of the Company to enable Holders that have delivered
      Registration Notices to the Company to consummate the disposition of such
      Registrable Securities.

     

    The
      Company may require each Holder of Registrable Securities to furnish to the
      Company in writing such information regarding the proposed distribution by
      such
      Holder of such Registrable Securities as the Company may from time to time
      reasonably request in writing.

     

    In
      connection with and as a condition to the Company’s obligations with respect to
      the Shelf Registration Statement pursuant to Section 2 hereof and this Section
      3, each Holder agrees that (i) it will not offer or sell its Registrable
      Securities under the Shelf Registration Statement until (A) it has either
      (1) provided a Registration Notice pursuant to Section 3(b) hereof or
      (2)
      had Registrable Securities included in the Shelf Registration Statement at
      the
      time it became effective pursuant to Section 2(c) hereof and (B) it has received
      copies of the supplemented or amended Prospectus contemplated by Section 3(b)
      hereof and receives notice that any post-effective amendment has become
      effective; (ii) upon receipt of nay notice from the Company of the
      happening of any event of the kind described in Section 3(b)(iv) hereof, such
      Holder will forthwith discontinue disposition of Registrable Securities pursuant
      to the Shelf Registration Statement until such Holder receives copies of the
      supplemented or amended Prospectus contemplated by Section 3(i) hereof and
      receives notice that any post-effective amendment has become effective, and,
      if
      so directed by the Company, such Holder will deliver to the Company (at the
      expense of the Company) all copies in its possession, other than permanent
      file
      copies then in such Holder’s possession, of the Prospectus covering such
      registrable Securities current at the time of receipt of such notice; and (iii)
      all offers and sales under the Shelf Registration Statement shall be completed
      within forty-five (45) days after the first date on 

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    which
      offers or sales can be made pursuant to clause (i) above, and upon expiration
      of
      such forty-five (45) day period the Holder will not offer or sell its
      Registrable Securities under the Shelf Registration Statement until it has
      again
      complied with the provisions of clauses (i)(A)(1) and (B) above, except that
      if
      the applicable Registration Notice was delivered to the Company at a time which
      was not part of a Sale Period, such forty-five (45) day period shall be the
      next
      succeeding Sale Period.

     

    Section
      4. Restrictions on Public Sale by Holders of Registrable
      Securities.

     

    Each
      Holder agrees with the Company that:

     

    (a) If
      the
      Company determines in its good faith judgment, after consultation with counsel,
      that the filing of the Shelf Registration Statement under Section 2 hereof
      or
      the use of any Prospectus would require the disclosure of important information
      which the Company has a bona fide business purpose for preserving as
      confidential or the disclosure of which would impede the Company’s ability to
      consummate a significant transaction, upon written notice of such determination
      by the Company, the rights of the Holders to offer, sell or distribute any
      Registrable Securities pursuant to the Shelf Registration Statement or to
      require the Company to take action with respect to the registration or sale
      of
      any Registrable Securities pursuant to the Shelf Registration Statement
      (including any action contemplated by Section 3 hereof) will be suspended until
      the date upon which the Company notifies the Holders in writing that suspension
      of such rights for the grounds set forth in this Section 4(a) is no longer
      necessary.

     

    (b) In
      the
      case of the registration of any underwritten equity offering proposed by the
      Company (other than any registration by the Company on Form S-8, or a successor
      or substantially similar form, of (i) an employee stock option, stock
      purchase or compensation plan or of securities issued or issuable pursuant
      to
      any such plan or (ii) a dividend reinvestment plan), each Holder agrees,
      if
      requested in writing by the managing underwriter or underwriters administering
      such offering, not to effect any offer, sale or distribution of Registrable
      Securities ) or any option or right to acquire Registrable Securities) during
      the period commencing on the 10th day prior to the expected effective date
      (which date shall be stated in such notice) of the registration statement
      covering such underwritten primary equity offering and ending on the date
      specified by such managing underwriter in such written request to such Holder,
      which date shall not be later than six months after such expected date of
      effectiveness;

     

    (c) In
      the
      event that any Holder uses a Prospectus in connection with the offering and
      sale
      of Registrable Securities covered by such Prospectus, such Holder will use
      only
      the latest version of such Prospectus provided to it by the
      Company.

     

    Section
      5. Indemnification Contribution.

     

    (a) Indemnification
      by the Company.
      The
      Company agrees to indemnify and hold harmless each Holder and its officers
      and
      directors and each person, if any, who controls any Holder within the meaning
      of
      Section 15 of the Securities Act as follows:

     

    (i) against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      arising out of any untrue statement or alleged untrue statement of a material
      fact contained in the Shelf Registration Statement (or any amendment thereto)
      or
      any Prospectus, including all documents incorporated therein by reference,
      or
      the omission or alleged omission therefrom of a material fact necessary in
      order
      to make the statements therein, in light of the circumstances under which they
      were made, not misleading;

     

    (ii) against
      any and all loss, liability, claim, damage and expense whatsoever, as incurred,
      to the extent of the aggregate amount paid in settlement of any litigation,
      or
      investigation or proceeding by any governmental agency or body, commenced or
      threatened, or of any claim whatsoever based upon any such 

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    untrue
      statement or omission, or any such alleged untrue statement or omission, if
      such
      settlement is effected with the written consent of the Company; and

     

    (iii) against
      any and all expense whatsoever, as incurred (including reasonable fees and
      disbursements of counsel), reasonably incurred in investigating, preparing
      or
      defending against any litigation, or investigation or proceeding by any
      governmental agency or body, commenced or threatened, in each case whether
      or
      not a party, or any claim whatsoever based upon any such untrue statement or
      omission, or any such alleged untrue statement or omission, to the extent that
      any such expense is not paid under clause (i) or (ii) above;

     

    provided,
      however,
      that
      the indemnity provided pursuant to this Section 5(a) does not apply to any
      Holder with respect to any loss, liability, claim, damage or expense to the
      extent arising out of any untrue statement or omission or alleged untrue
      statement or omission made in reliance upon and in conformity with written
      information furnished to the Company by such Holder expressly for use in the
      Shelf Registration Statement (or any amendment thereto) or any
      Prospectus.

     

    (b) Indemnification
      by Holders.
      Each
      Holder severally agrees to indemnify and hold harmless the Company and the
      other
      selling Holders, and each of their respective directors and officers (including
      each director and officer of the Company who signed the Shelf Registration
      Statement), and each person, if any, who controls the Company or any other
      selling Holder within the meaning of Section 15 of the Securities Act, to the
      same extent as the indemnity contained in Section 5(a) hereof (except that
      any
      settlement described in Section 5(a)(2) shall be effected with the written
      consent of such Holder), but only insofar as such loss, liability, claim, damage
      or expense arises out of or is based upon any untrue statement or omission,
      or
      alleged untrue statement or omission, made in the Shelf Registration Statement
      (or any amendment thereto) or any Prospectus in reliance upon and in conformity
      with written information furnished to the Company by such selling Holder
      expressly for use in the Shelf Registration Statement (or any amendment thereto)
      or such Prospectus. In no event shall the liability of any Holder under this
      Section 5(b) be greater in amount than the dollar amount of the proceeds
      received by such Holder upon the sale of the Registrable Securities giving
      rise
      to such indemnification obligation.

     

    (c) Each
      indemnified party shall give reasonably prompt notice to each indemnifying
      party
      of any action or proceeding commenced against it in respect of which indemnity
      may be sought hereunder, but failure so to notify an indemnifying party
      (i) shall not relieve it from any liability which it may have under
      the
      indemnity agreement provided in Section 5(a) or (b) unless and to the extent
      it
      did not otherwise learn of such action and the lack of notice by the indemnified
      party results in the forfeiture by the indemnifying party of substantial rights
      and defenses and (ii) shall not, in any event, relieve the indemnifying
      party from any obligations to any indemnified party other than the
      indemnification obligation provided under Section 5(a) or (b). If the
      indemnifying party so elects within a reasonable time after receipt of such
      notice, the indemnifying party may assume the defense of such action or
      proceeding at such indemnifying party’s own expense with counsel chosen by the
      indemnifying party; provided,
      however,
      that,
      if such indemnified party or parties reasonably determine that a conflict of
      interest exists where it is advisable for such indemnified part or parties
      to be
      represented by separate counsel or that, upon advice of counsel, there may
      be
      legal defenses available to them which are different from or in addition to
      those available to the indemnifying party, then the indemnifying party shall
      not
      be entitled to assume such defense and the indemnified party or parties in
      the
      aggregate shall be entitled to one separate counsel at the indemnifying party’s
      expense. If an indemnifying party is not so entitled to assume the defense
      of
      such action or does not assume such defense, after having received the notice
      referred to in the first sentence of this Section 5(c), the indemnifying party
      or parties will pay the reasonable fees and expenses of counsel for the
      indemnified party or parties. In such event however, no indemnifying party
      will
      be liable for any settlement effected without the written consent of such
      indemnifying party. If an indemnifying party is entitled to assume, and assumes,
      the defense of such action or proceeding in accordance with this paragraph,
      such
      indemnifying party shall not be liable for any fees and expenses of counsel
      for
      the indemnified parties incurred thereafter in connection with such action
      or
      proceeding.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (d) In
      order
      to provide for just and equitable contribution in circumstances in which the
      indemnity agreement provided for in this Section 5 is for any reason held to
      be
      unenforceable although applicable in accordance with its terms, the Company
      and
      the selling Holders shall contribute to the aggregate losses, liabilities,
      claims, damages and expenses of the nature contemplated by such indemnity
      agreement incurred by the Company and the selling Holders, in such proportion
      as
      is appropriate to reflect the relative fault of and benefits to the Company
      on
      the one hand the selling Holders on the other (in such proportions that the
      selling Holders are severally, not jointly, reasonable for the balance), in
      connection with the statements or omissions which resulted in such losses,
      liabilities, claims, damages or expenses, as well as any other relevant
      equitable considerations. The relative benefits to the indemnifying party and
      indemnified parties shall be determined by reference to, among other things,
      the
      total proceeds received by the indemnifying party and indemnified parties in
      connection with the offering to which such losses, liabilities, claims, damages,
      or expenses relate. The relative fault of the indemnifying party and indemnified
      parties shall be determined by reference to, among other things, whether the
      action in question, including any untrue or alleged untrue statement of a
      material fact or omission or alleged omission to state a material fact, has
      been
      made by, or relates to information supplied by, such indemnifying party or
      the
      indemnified parties, and the parties’ relative intent, knowledge, access to
      information and opportunity to correct or prevent such action.

     

    The
      Company and the Holders agree that it would not be just or equitable if
      contribution pursuant to this Section 5(d) were determined by pro rata
      allocation or by any other method of allocation which does not take account
      of
      the equitable considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no selling Holder shall
      be
      required to contribute any amount in excess of the amount by which the total
      price at which the Registrable Securities of such selling Holder were offered
      to
      the public exceeds the amount of any damages which such selling Holder is
      otherwise required to pay by reason of such untrue statement or
      omission.

     

    Notwithstanding
      the foregoing, no Person guilty of fraudulent misrepresentation (within the
      meaning of Section 11(f) of the Securities Act) shall be entitled to
      contribution from any Person w ho was not guilty of such fraudulent
      misrepresentation. For purposes of this Section 5(d), each Person, if any,
      who
      controls a Holder within the meaning of Section 15 of the Securities Act and
      directors and officers of a Holder shall have the same rights to contribution
      as
      such Holder, and each director of the Company, each officer of the Company
      w ho
      signed the Shelf Registration Statement and each Person, if any, who controls
      the Company within the meaning of Section 15 of the Securities Act shall have
      the same rights to contribution as the Company.

     

    Section
      6. Rule 144 Sales.

     

    (a) The
      Company covenants that it will file the reports requires to be filed by the
      Company under the Securities Act and the Exchange Act, so as to enable any
      H
      older to sell Registrable Securities pursuant to Rule 144 under the Securities
      Act.

     

    (b) In
      connection with any sale, transfer or other disposition by any Holder of any
      Registrable Securities pursuant to Rule 144 under the Securities Act, the
      Company shall cooperate with such Holder to facilitate the timely preparation
      and delivery of certificates representing Registrable Securities to be sold
      and
      not bearing any Securities Act legend, and enable certificates for such
      Registrable Securities to be for such number of shares and registered in such
      names as the selling Holders may reasonably request at least two business days
      prior to any sale of Registrable Securities.

     

    Section
      7. Miscellaneous.

     

    (a) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given without consent of the Company and
      Holders constituting Majority Holders; provided,
      however,
      that no
      amendment, modification or supplement or waiver or consent to the departure
      with

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    respect
      to the provisions of Sections 2, 3, 4, 5, 6 or 7(a) hereof or the definition
      of
      Registrable Securities or which would impair the rights of any Holder under
      such
      provisions, shall be effective as against any Holder of Registrable Securities
      or Units redeemable for Registrable Securities unless consented to in writing
      by
      such Holder of Registrable Securities or Units. Notice of any amendment,
      modification or supplement to this Agreement adopted in accordance with this
      Section 7(a) shall be provided by Company to each Holder of Registrable
      Securities or Units redeemable for Registrable Securities at least thirty (30)
      days prior to the effective date of such amendment, modification or
      supplement.

     

    (b) Notices.
      All
      notices and other communications provided for or permitted hereunder shall
      be
      made in writing by hand delivery, registered first-class mail, telex, telecopier
      or any courier guaranteeing overnight delivery, (i) if to a Holder,
      at the
      most current address given by such Holder to the Company by means of a notice
      given in accordance with the provisions of this Section 7(b), which address
      initially is, with respect to each H older, the address set forth in the
      Partnership Agreement, or (ii) to the Company, at 150 N. Wacker Drive,
      Suite 150, Chicago, Illinois 60606, Attention: President.

     

    All
      such
      notices and communications shall be deemed to have been duly given: at the
      time
      delivered by hand, if personally delivered; five (5) business days after being
      deposited in the mail, postage prepaid, if mailed; when answered back, if
      telexed; when receipt is acknowledged, if telecopied; or at the time delivered
      if delivered by an air courier guaranteeing overnight delivery.

     

    (c) Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors,
      assigns and transferees of each of the Company and the Holders, including
      without limitation and without the need for an express assignment, subsequent
      Holders. If any successor, assignee or transferee of any Holder shall acquire
      Registrable Securities, in any manner, whether by operation of law or otherwise,
      such Registrable Securities shall be held subject to all of the terms of this
      Agreement, and by taking and holding such Registrable Securities such Person
      shall be entitled to receive the benefits hereof and shall be conclusively
      deemed to have agreed to be bound by all of the terms and provisions
      hereof.

     

    (d) Headings.
      The
      headings in this Agreement are for the convenience of reference only and shall
      not limited or otherwise affect the meaning hereof.

     

    (e) GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF MARYLAND WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW PROVISIONS
      THEREOF.

     

    (f) Specific
      Performance.
      The
      Company and the Holders acknowledge that there would be no adequate remedy
      at
      law if any party fails to perform any of its obligations hereunder, and
      accordingly agree that the Company and each Holder, in addition to any other
      remedy to which it may be entitled at law or in equity, shall be entitled to
      compel specific performance of the obligations of another under this Agreement
      in accordance with the terms and conditions of this Agreement in any court
      of
      the United States or any State thereof having jurisdictions.

     

    (g) Entire
      Agreement.
      This
      Agreement is intended by the Company as a final expression of its agreement
      and
      is intended to be a complete and exclusive statement of the agreement and
      understanding of the Company in respect of the subject matter contained herein.
      This Agreement supersedes all prior agreements and understandings of the Company
      with respect to such subject matter.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

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

     

     

    FIRST
      INDUSTRIAL REALTY TRUST, INC.

     

    By: _________________________________

    Name:
      _______________________________

    Title:
      ________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]