Document:

exv10w6

EXHIBIT 10.6

TAX PROTECTION AGREEMENT

     THIS TAX PROTECTION AGREEMENT (“Agreement”), dated as of ___________ __, 2011, by and between
Schottenstein Realty LP, a Delaware limited partnership (the “OP”), Schottenstein Realty Trust,
Inc., a Maryland corporation (the “REIT”) and the parties set forth on Schedule 1 hereto,

W I T N E S S E T H:

     WHEREAS, the REIT, the OP and certain contributing members, including the Protected Partners,
have entered into that certain Second Amended and Restated Contribution Agreement, dated as of
March  , 2011 (the “Contribution Agreement”) and various assignment and assumption and other
agreements, pursuant to which limited liability company, limited partnership interests or general
partnership interests (each, a “Contributed Interest”) in entities that own direct or indirect
interests in the properties listed on Schedule 1 hereto (each, a “Property”) will be contributed to
the OP (the “Contribution”) in exchange for, among other things, units of limited partnership
interest in the OP (“OP Units”);

     WHEREAS, it is intended that, for federal income tax purposes, the Contribution will be
treated as a tax-free contribution by the Protected Partners to the OP of the Contributed Interests
in exchange for OP Units, under Section 721 of the Code, as defined below (including, where
applicable, pursuant to the “assets over” form of transaction set forth in Treasury Regulation
Section 1.708-1(c)(3)(i)); and

     WHEREAS, as provided in Section 8.07(a) of the Amended and Restated Agreement of Limited
Partnership of the OP (the “Partnership Agreement”) and in consideration for the agreement of the
Protected Partners to consummate the Contribution, the OP, the REIT and the Protected Partners are
entering into the agreements set forth below.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows:

     1. Definitions. All capitalized terms used and not otherwise defined in this
Agreement shall have the meaning set forth in the Partnership Agreement. As used herein, the
following terms have the following meanings:

     “Accounting Firm” shall have the meaning set forth in Section 3(b).

     “Arbitrable Dispute” shall mean a disagreement with respect to the amount of damages to
which a Protected Partner of Indirect Owner thereof is entitled under Section 3(a) or
Section 6(a). For the avoidance of doubt, a disagreement as to whether or not the OP has
breached any covenant or obligation under Sections 2, 4 or 5 or whether a transaction or
event gives rise to an indemnification obligation under Sections 3 or 6 shall not constitute
an Arbitrable Dispute.

 

 

     “Built-in Gain” shall mean, with respect to any Protected Partner (or as allocable to
any Indirect Owner) at any time, gain allocable to such Protected Partner pursuant to
Section 704(c) of the Code with respect to a Protected Property (to the extent not offset by
any special inside basis of such Protected Partner (or Indirect Owner) under Section 743(b)
of the Code with respect to such Protected Property). The Built-in Gain of each Protected
Partner as of the Closing Date with respect to each Protected Property shall be as reflected
on Schedule 1. [The Built-In Gain of each Indirect Owner as of the Closing Date with
respect to each Protected Property shall be as reflected on Schedule 2.] The amount of
Built-in Gain of any Protected Partner (or Indirect Owner) shall be adjusted from time to
time pursuant to the Code and the Treasury Regulations and shall be reduced by any Built-in
Gain recognized under the Code during the Tax Protection Period, including any gain
recognized during the Tax Protection Period by (x) a Protected Partner upon a transfer of
some or all of its Protected Units or (y) an Indirect Owner upon a transfer of some or all
of such Indirect Owner’s equity interest in a Protected Partner, that is attributable to
Built-in Gain.

     “Closing” and “Closing Date” shall have the meanings ascribed to them in the
Contribution Agreement.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “DRO” means a written obligation by a Protected Partner to restore all or any portion
of a deficit that may exist in its capital account upon a liquidation of the OP pursuant to
Section 13.02(d) of the Partnership Agreement.

     “Guarantee Opportunity” shall have the meaning set forth in Section 5(b).

     “Guaranteed Amount” means, with respect to a Guaranteed Debt, the aggregate amount of
such Guaranteed Debt that is guaranteed at any time by Protected Partners or Indirect
Owners.

     “Guaranteed Debt” means any debt that is guaranteed in whole or in part by a Protected
Partner or Indirect Owner at any time on or after the Closing Date pursuant to Section 5
hereof.

     “Indirect Owner” means, in the case of a Protected Partner that is an entity that is
classified as a partnership, S corporation, grantor trust or disregarded entity or for
federal income tax purposes, any person owning an equity interest in such Protected Partner,
and, in the case of any Indirect Owner that itself is an entity that is classified as a
partnership, S corporation, grantor trust or disregarded entity for federal income tax
purposes, any person owning an equity interest in such entity.

     “LP Recourse Amount” shall have the meaning set forth in the Partnership Agreement.

     “Merger” means a merger, consolidation, unit exchange, entity conversion,
recapitalization, leveraged buy-out, so-called going private transaction or other capital

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transaction involving the OP or any entity in which the OP owns a direct or indirect
interest, whether or not the OP or such other entity is the surviving entity in such
transaction, provided, however, that such term shall not include any transfer occurring
pursuant to the Contribution Agreement.

     “Minimum Liability Amount” shall mean, for each Protected Partner, the amount set forth
on Schedule 3 hereto next to such Protected Partner’s name, as amended from time to time,
provided, however, that (1) upon any sale, exchange, transfer or disposition by a Protected
Partner of some or all of its Protected Units in a transaction in which the transferee’s
adjusted basis in the transferred property is determined for federal income tax purposes
wholly by reference to the transferor’s adjusted basis in such transferred property, the
Minimum Liability Amount of the transferor Protected Partner shall be allocated to the
transferee (and the Minimum Liability Amount of the transferor shall be correspondingly
reduced) in an amount that bears the same ratio to the Minimum Liability Amount of the
transferor immediately before such transfer as the number of Protected Units transferred
bears to the number of Protected Units held by the transferor immediately before such
transfer or in such other manner as the transferor Protected Partner may request, and (2)
upon any other sale, exchange, transfer or disposition by either (a) a Protected Partner of
some or all of its Protected Units or (b) an Indirect Owner (not including an Indirect Owner
that holds its indirect interest through an S corporation) of some or all of its direct or
indirect equity interest in a Protected Partner, such Protected Partner’s Minimum Liability
Amount shall be reduced to the extent of (X) in situation (2)(a), any gain recognized by the
Protected Partner (or, in the case of a transfer resulting from the death of a Protected
Partner, the difference between the adjusted tax basis, for federal income tax purposes, of
the transferee with respect to such units and the adjusted tax basis, for federal income tax
purposes, of the transferor with respect to such units), and (Y) in situation (2)(b), any
gain recognized by the Indirect Owner (or, in the case of a transfer resulting from the
death of an Indirect Owner, the difference between the adjusted tax basis, for federal
income tax purposes, of the transferee with respect to the transferred property and the
adjusted tax basis, for federal income tax purposes, of the transferor with respect to such
property).

     “Nonrecourse Built-in Gain” means gain recognized under Section 731(a)(1) of the Code
as a result of a deemed distribution under Section 752(b) of the Code or gain under Section
465(e) of the Code.

     “OP Units” shall have the meaning set forth in the Recitals.

     “Partnership Agreement” shall have the meaning set forth in the Recitals.

     “Permitted Transfer” shall have the meaning set forth in Section 2(b).

     “Proceeding” shall have the meaning set forth in Section 11(a).

     “Property” shall have the meaning set forth in the Recitals.

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     “Protected Partners” shall mean (i) the initial Protected Partners listed on Schedule 1
hereto, (ii) any person who holds Protected Units and who acquired such Protected Units from
a Protected Partner in a transaction in which such transferee’s adjusted basis, as
determined for federal income tax purposes, is determined, in whole or in part, by reference
to the adjusted basis of the Protected Partner in such Protected Units, and (iii) any
Indirect Owner of a Protected Partner who receives Protected Units from such Protected
Partner as “substituted basis property” as defined in Section 7701(a)(42) of the Code with
respect to his, her or its interest in such Protected Partner .

     “Protected Properties” shall mean each of the Properties listed on Exhibit A hereto or
any portion thereof, any property acquired by the OP or any entity in which the OP holds a
direct or indirect interest in exchange for any such Protected Property in a transaction
described in Section 2(b) hereof, and any other property received by the OP, or any entity
in which the OP holds a direct or indirect interest as “substituted basis property” as
defined in Section 7701(a)(42) of the Code with respect to any such Protected Property.
Where the context so requires, it shall include any Contributed Interest that represents an
indirect interest in any Protected Property.

     “Protected Property Disposition” shall have the meaning set forth in Section 2(a).

     “Protected Units” shall mean (1) solely those OP Units issued in the Contribution and
acquired by a Protected Partner either at original issuance or from a Protected Partner in a
transaction in which the transferee’s adjusted basis, as determined for federal income tax
purposes, is determined, in whole or in part, by reference to the adjusted basis of the
transferor Protected Partner in such Protected Units, (2) any OP Units thereafter issued by
the OP to a Protected Partner in exchange for Protected Units held by such Protected Partner
in a transaction in which the Protected Partner’s adjusted basis, as determined for federal
income tax purposes, in the newly issued OP Units is determined, in whole or in part, by
reference to such Protected Partner’s adjusted basis, as determined for federal income tax
purposes, in the Protected Units exchanged, and (3) OP Units received by an Indirect Owner
of a Protected Partner in a distribution to such Indirect Owner in a transaction in which
all or any portion of the gain or loss is not recognized by the Protected Partner.
Notwithstanding the foregoing, a Protected Unit shall cease to constitute a Protected Unit
upon (X) the death of the Protected Partner holding such Protected Unit if, as a result of
the death of the Protected Partner, the transferee of such unit receives an adjusted basis
in such unit for federal income tax purposes that is equal to the fair market value of such
unit on the date of the Protected Partner’s death or (Y) any sale, exchange, transfer or
other disposition of such Protected Unit (except as provided in clauses (2) and (3) above
and other than any sale or exchange transaction in which the transferee’s adjusted basis, as
determined for federal income tax purposes, is determined, in whole or in part, by reference
to the adjusted basis, as determined for federal income tax purposes, of the transferor).
In addition, upon the death of any Indirect Owner in a Protected Partner (not including an
Indirect Owner that holds its indirect interest through an S corporation and only if, as a
result of the death of the Indirect Owner, the transferee of the Indirect Owner’s direct or
indirect equity interest in the Protected Partner receives an adjusted basis in such equity
interest for federal income

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tax purposes that is equal to the fair market value of such equity interest on the date
of the Indirect Owner’s death), or upon the sale, exchange, transfer or other disposition by
an Indirect Owner (not including an Indirect Owner that holds its indirect interest through
an S corporation) of some or all of such Indirect Owner’s equity interest in a Protected
Partner (other than any sale, exchange, transfer or other disposition in which the
transferee’s adjusted basis, as determined for federal income tax purposes, is determined,
in whole or in part, by reference to the adjusted basis, as determined for federal income
tax purposes, of the transferor Indirect Owner), the Protected Units treated as held by such
Protected Partner shall be reduced such that the amount of Protected Units held by such
Protected Partner shall equal the amount of Protected Units that would have been held by the
Indirect Owners in the aggregate, following such event, had the Indirect Owners directly
received Protected Units in the Contribution and the Indirect Owner had either directly
transferred a portion of such Protected Units or died holding such Protected Units (taking
into account all prior transactions involving the death of an Indirect Owner in such
Protected Partner or the sale, exchange, transfer or other disposition of an Indirect
Owner’s equity interest in such Protected Partner (other than a sale, exchange, transfer or
other disposition in which the transferee’s adjusted basis, as determined for federal income
tax purposes, is determined in whole or in part by reference to the adjusted basis, as
determined for federal income tax purposes, of the transferor Indirect Owner)).

     “Qualified Nonrecourse Debt” shall have the meaning set forth in Section 5(a).

     “Qualifying Debt” shall mean indebtedness of the OP, directly or indirectly, provided
that (1) such indebtedness is treated as a “nonrecourse liability” of the OP for purposes of
Section 752 of the Code and the Treasury Regulations thereunder and is secured by property
owned directly or indirectly by the OP, (2) such indebtedness is the most senior
indebtedness secured by the subject property, (3) the subject property securing such
indebtedness has a fair market value at the time that a Guarantee Opportunity of nonrecourse
debt is offered at least equal to 150% of the aggregate amount of all indebtedness secured
by such property or assets, and (4) such indebtedness is not guaranteed by any person other
than a Protected Partner or Indirect Owner.

     “Qualified Guarantee” shall mean a guarantee that (i) is substantially in the form of
Schedule 4, (ii) is a “bottom dollar guarantee” in that the lender for the Guaranteed Debt
is required to pursue all other collateral and security for the Guaranteed Debt (other than
any bottom-dollar guarantees permitted pursuant to the last sentence of this definition)
prior to seeking to collect on such a guarantee, and the lender shall have recourse against
the guarantee only if, and solely to the extent that, the total amount recovered by the
lender with respect to the Guaranteed Debt after the lender has exhausted its remedies as
set forth above is less than the aggregate of the Guaranteed Amounts with respect to such
Guaranteed Debt (plus the aggregate amounts of any other guarantees that are in effect with
respect to such Guaranteed Debt at the time the guarantees are entered into), and the
maximum aggregate liability of each Partner Guarantor for all Guaranteed Debt shall be
limited to the amount actually guaranteed by such Partner Guarantor, (iii) Guaranteed
Amounts with respect to the debt will not exceed

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[ ]% of the amount of the Guaranteed Debt outstanding at the time the guarantee is
executed, (iv) as to each Protected Partner that is offered to execute the guarantee, there
is no other person that would be considered to “bear the economic risk of loss,” within the
meaning of Treasury Regulation Section 1.752-2, or would be considered to be “at risk” for
purposes of Section 465(b) with respect to that portion of such debt for which such
Protected Partner is being offered to make the guarantee; (iv) is delivered to the lender,
(v) the receipt of which is acknowledged and accepted by the lender, and (vi) is enforceable
under the laws of the state governing the loan and in which the property securing the
guaranteed loan is located. If there are guarantees already in place at the time a
Guarantee Opportunity is presented to the Protected Partners that are pari passu with or at
a lower level of risk than the guarantees being offered, then the amount of such existing
guarantees shall be added to the Guaranteed Amount for purposes of calculating the [     ]%
limitation set forth in clause (iii) above.

     “Recourse Debt” shall mean [the Revolving Credit Facility, any replacement or
substitution thereof and] any [other] indebtedness of the OP, (i) which [in all such events]
is recourse, without limitation, to all the assets of the OP, (ii) for which the REIT, as
general partner of the OP, has personal liability, (iii) which is not subject or subordinate
in any manner to any unsecured indebtedness of the OP and (iv) which is made by a
third-party institutional lender with financial covenants that are standard for such a loan.

     [“Revolving Credit Facility” shall mean that certain [Credit Agreement] dated as of
__________ __, 2011 among the OP and _____________.]           .

     “OP Units” shall mean any series of common or preferred Units of the OP.

     “Tax Claim” shall have meaning set forth in Section 11(a).

     “Tax Protection Period” shall mean the period beginning on the Closing Date and ending
on, and including, the earlier of (i) the date that completes seven (7) years after the
Closing Date and (ii) the date on which the number of Protected Units is equal to less than
twenty percent (20%) of the number of Protected Units as of the Closing Date.

     2. Restrictions on Dispositions of Protected Properties.

          (a) Subject to Section 2(b), the OP agrees, for the benefit of each Protected Partner and the
Indirect Owners of such Protected Partner, that during the Tax Protection Period neither the OP,
nor any entity in which the OP holds a direct or indirect interest, will consummate a sale,
transfer, exchange or other disposition of any Protected Property (a “Protected Property
Disposition”) or any indirect interest therein in a transaction, including a Merger, that results
in the recognition by any Protected Partner, for federal income tax purposes, of all or any portion
of its Built-in Gain, including recognition thereof pursuant to Sections 704(c)(1)(B) or 737 of the
Code (and including a Merger as a result of which a Protected Partner is required to exchange,
tender or transfer Protected Units in a transaction that is partly or wholly taxable for federal
income tax purposes). A disposition shall include a transaction that is deemed to be a disposition
for federal income tax purposes and shall include any transfer, whether,

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voluntary or involuntary, in a foreclosure proceeding, pursuant to a deed in lieu of
foreclosure or in a bankruptcy proceeding.

          (b) Section 2(a) shall not apply to (i) any transaction which would not result in the
recognition and allocation of any Built-in Gain to any Protected Partner or its Indirect Owners
with respect to Protected Units, such as a transaction which qualifies as a tax-free like-kind
exchange under Code Section 1031 or a tax-free contribution under Code Section 721 or Code Section
351 or a tax-free merger or consolidation of the OP with or into another entity that qualifies for
taxation as a partnership for federal income tax purposes, or (ii) the condemnation or other taking
of all or any portion of any Protected Property by a governmental entity or authority in eminent
domain proceedings or otherwise or a casualty with respect thereto (each, a “Permitted Transfer”).
In the case of a Permitted Transfer described in clause (ii) of this Section 2(b), the OP shall use
good faith commercially reasonable efforts to structure such disposition as either a tax-free
like-kind exchange under Code Section 1031 or other tax-free contribution or tax-free reinvestment
of proceeds under Code Section 1033.

          (c) If at the time of a Permitted Transfer of a Protected Property the property is secured,
directly or indirectly, by Guaranteed Debt, then (i) in the OP’s sole discretion, either such debt
shall be repaid in full or the OP shall obtain from the lenders with respect to such debt a full
and complete release of liability for each such Protected Partner or Indirect Owner from its
guarantee and (ii) if the Tax Protection Period shall not have expired, the OP shall comply with
the requirements of Section 5(e) (treating such repayment or release as a repayment of Guaranteed
Debt).

     3. Indemnity by the OP for Breach of Obligations Set Forth in Section 2.

          (a) In the event that the OP engages in a Protected Property Disposition in breach of its
obligation set forth in Section 2(a), each Protected Partner or Indirect Owner who recognizes all
or any portion of its Built-in Gain with respect to Protected Units as a result of such Protected
Property Disposition shall receive from the OP as damages an amount equal to the aggregate federal,
state and local income taxes incurred by such Protected Partner or Indirect Owner as a result of
its recognition of such Built-in Gain plus an additional amount so that, after the payment by such
Protected Partner or Indirect Owner of all taxes on amounts received pursuant to this Section 3(a),
such Protected Partner or Indirect Owner retains from such damage payments hereunder an amount
equal to its total tax liability incurred as a result of the Protected Property Disposition and its
recognition of such Built-in Gain. In the event of a breach of Section 2(a) hereof resulting in
the recognition by any Protected Partner or an Indirect Owner thereof of all or any portion of its
Built-in Gain, the OP shall promptly notify such Protected Partner in writing of such Protected
Property Disposition and of the approximate sales price or other amount realized for income tax
purposes in connection therewith. Within ten (10) days of receipt of such notice, each Protected
Partner shall provide the OP with information regarding the identity of any Indirect Owners
thereof. In addition, the OP shall prepare a computation of the indemnity payment, if any, owing
to such Protected Partner or Indirect Owner under this Section 3(a), which computation shall be
delivered to such Protected Partner within ten (10) days after the date of such breach. Except as
provided in the penultimate sentence of Section 3(b), the OP shall make any required indemnity
payment owing to a Protected Partner or Indirect Owner

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pursuant to this Section 3(a) no later than ten (10) days after delivery of the computation
of the indemnity payment to the Protected Partner or Indirect Owner. For purposes of the preceding
sentence, (i) all income arising from a transaction or event that is treated as ordinary income
under the applicable provisions of the Code, including all payments under this Section 3(a), shall
be treated as subject to federal, state and local income tax at the effective tax rate imposed on
ordinary income of individuals residing in the city and state of residence of such Protected
Partner or Indirect Owner, determined using the maximum federal rate of tax on ordinary income and
the maximum state and local rates of tax on ordinary income then in effect in such city and state,
(ii) all other income arising from the transaction or event shall be treated as subject to federal,
state and local income tax at the effective tax rate imposed on long-term capital gains of
individuals residing in the city and state of residence of such Protected Partner or Indirect
Owner, determined using the maximum federal, state and local rates on long-term capital gains then
in effect (including for this purpose with respect to any Code Section 1245 or 1250 recapture or
any unrecaptured section 1250 gain, the maximum rate imposed on such income), (iii) any amounts
giving rise to a payment pursuant to this Section 3(a) shall be determined assuming that the
transaction or event giving rise to the OP’s obligation to make a payment was the only transaction
or event reported on the Protected Partner’s or Indirect Owner’s tax return (i.e., without giving
effect to any loss carryovers or other deductions attributable to such Protected Partner or
Indirect Owner), and (iv) any amounts payable with respect to state and local income taxes shall be
assumed to be fully deductible (subject to applicable limitation or phase-out) for federal income
tax purposes. In the case of a corporate Protected Partner, the preceding sentence shall be
applied using the highest marginal rate of tax applicable to corporations for federal income tax
purposes and state and local corporate income or franchise tax purposes. Notwithstanding anything
to the contrary set forth herein, separate tax indemnity payments shall be made to each Protected
Partner or Indirect Owner, as the case may be.

          (b) Notwithstanding any provision of this Agreement to the contrary, the sole and exclusive
rights and remedies of any Protected Partner or Indirect Owner for a breach or violation of the
covenants set forth in Section 2(a) shall be a claim for damages against the OP, computed as set
forth in Section 3(a), and no Protected Partner or Indirect Owner shall be entitled to pursue a
claim for specific performance of the covenant set forth in Section 2(a) or bring a claim against
any person that acquires a Protected Property from the OP in violation of Section 2(a). If the OP
has breached or violated the covenant set forth in Section 2(a) (or a Protected Partner or Indirect
Owner asserts that the OP has breached or violated such covenant), the OP and the Protected Partner
or Indirect Owner shall negotiate in good faith to resolve any disagreements regarding any such
breach or violation and the amount of damages, if any, payable to such Protected Partner or
Indirect Owner under Section 3(a). If any such disagreement cannot be resolved by the OP and such
Protected Partner or Indirect Owner within thirty (30) days after such breach, then to the extent
that such disagreement involves an Arbitrable Dispute, the OP and the Protected Partner or Indirect
Owner shall jointly retain a nationally recognized independent public accounting firm (the
“Accounting Firm”) to act as an arbitrator to resolve as expeditiously as possible such
disagreement. All determinations made by the Accounting Firm with respect to the resolution of any
Arbitrable Dispute shall be final, conclusive and binding on the OP and the Protected Partner and
Indirect Owner. The fees and expenses of the Accounting Firm incurred in connection with any such
determination shall be shared equally by the OP and the Protected Partner or Indirect Owner. In
the event that the OP

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and a Protected Partner or Indirect Owner, each having acted in good faith and with its or his
best efforts to select an Accounting Firm, are unable to retain an Accounting Firm within sixty
(60) days after expiration of the thirty (30) day period mentioned above, then following the
expiration of such sixty (60) day period, any disagreement may be settled in any court of competent
jurisdiction. To the extent that a disagreement between the OP and a Protected Partner or Indirect
Owner thereof described under this Section 3(b) involves issues other than an Arbitrable Dispute
and such disagreement cannot be resolved by the OP and such Protected Partner or Indirect Owner
within the thirty (30) day period mentioned above, such disagreement may be settled in any court of
competent jurisdiction. In the event of any disagreement as to the amount of liability of the OP
to make an indemnity payment hereunder, the OP shall pay such amount for which it believes it is
liable within five (5) days before the due date of the quarterly estimated tax payment for
individuals which next follows the breach of Section 2(a) giving rise to liability hereunder. In
the event of a determination, through arbitration, a judicial proceeding or otherwise, that the
amount paid by the OP pursuant to the preceding sentence exceeded its liability, the recipient of
the indemnity payment shall repay such excess to the OP within five (5) days after such
determination.

     4. Section 704(c) Method; Non-Recourse Liability Allocation Method. The OP shall use,
and shall cause any other entity in which the OP has a direct or indirect interest to use, the
“traditional method” under Regulations Section 1.704-3(b) for purposes of making allocations under
Section 704(c) of the Code with respect to each Protected Property to take into account the
book-tax disparities as of the effective time of the Contribution with respect to such Protected
Property and with respect to any revaluation of such Protected Property pursuant to Regulations
Sections 1.704-1(b)(2)(iv)(f), 1.704-1(b)(2)(iv)(g) and 1.704-3(a)(6) with no “curative
allocations,” “remedial allocations” or adjustments to other items to offset the effect of the
“ceiling rule.” The OP will first allocate to each Protected Partner an amount of “excess
nonrecourse liabilities,” as defined in Regulations Section 1.752-3(a)(3), up to the amount of
Built-in Gain that is allocable to such Protected Partner with respect to each property acquired by
the OP pursuant to the Contribution to the extent that each such property is subject to nonrecourse
liabilities and such Protected Partner’s Built-in Gain with respect to each such property exceeds
his gain with respect thereto described in Regulations Section 1.752-3(a)(2).

     5. Obligation of the OP to Maintain Certain Debt.

          (a) Subject to paragraphs (c) through (f) of this Section 5, the OP agrees to maintain at all
times through the Tax Protection Period, directly or indirectly and on a continuous basis, an
amount of “qualified nonrecourse indebtedness” (within the meaning of Code Section 465(b)(6)(B))
(“Qualified Nonrecourse Debt”) so as to cause the amount of OP liabilities allocated to each
Protected Partner for purposes of Section 752 of the Code to be not less than such Protected
Partner’s Minimum Liability Amount and to cause the amount of OP liabilities with respect to which
each Protected Partner will be considered to be “at risk” for purposes of Section 465 of the Code
to be not less than such Protected Partner’s Minimum Liability Amount.

          (b) (i) Notwithstanding anything to the contrary in this Agreement, but subject to Section
5(b)(ii) and (iii) below, the OP may satisfy up to [ ]% of its obligations under Sections 5(a) by
instead making available to each Protected Partner, in the manner described in

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Section 5(b)(ii) below, the opportunity (a “Guarantee Opportunity”) to either (A) enter into a
DRO or (B) make a Qualified Guarantee (or, at the option of such Protected Partner, allow its
Indirect Owners to make Qualified Guarantees) of Qualifying Debt in such amount or amounts so as to
cause the amount of OP liabilities allocated to such Protected Partner for purposes of Section 752
of the Code to be not less than such Protected Partner’s Minimum Liability Amount and to cause the
amount of OP liabilities with respect to which such Protected Partner will be considered to be “at
risk” for purposes of Section 465 of the Code to be not less than such Protected Partner’s Minimum
Liability Amount.

               (ii) In order to make a Guarantee Opportunity available to a Protected Partner, the OP shall
send by first class certified mail to the last known address of such Protected Partner (as
reflected in the records of the OP) a letter explaining that it is making a Guarantee Opportunity
available pursuant to this Section 5(b) and the circumstances giving rise to the Guarantee
Opportunity. The letter shall contain a brief summary of the terms of the indebtedness to be
guaranteed (or, in the case of a DRO, the terms of the OP recourse debt), a brief description of
the collateral for the indebtedness and a statement of the amount to be guaranteed (or, in the case
of a DRO, the amount of DRO being made available). Included with the letter shall be a guarantee
agreement (or consent to DRO form) to be executed, together with the address to which the executed
guarantee agreement (or consent to DRO form) must be sent and the date by which it must be
received, which shall be not less than thirty (30) days after such letter is sent. To the extent
that a Guarantee Opportunity is made available to a Protected Partner in accordance with this
Agreement and such Protected Partner and its Indirect Owners (in the case of a Guarantee
Opportunity described in Section 5(b)(iii)) do not avail themselves of the Guarantee Opportunity by
the time indicated such letter, such Protected Partner’s Minimum Liability Amount shall thereupon
be reduced.

               (iii) If in response to an offer to Protected Partners of the opportunity to make a Qualified
Guarantee, a Protected Partner requests of the OP in writing that such offer should be made
available to its Indirect Owners (the Protected Partners acknowledge that only holders of OP Units
can enter into a DRO), and (y) together with such request such Protected Partner provides the OP
with the identities and addresses of the Indirect Owners to whom such offer shall be made and such
Indirect Owners’ allocable portions of the opportunity offered to such Protected Partner, then the
OP shall offer such opportunity to such Indirect Owners in the amounts requested by such Protected
Partner. If the offer by the OP to the Indirect Owners is made within two (2) days after the date
on which the Protected Partner sends its request to the OP, then the date by which acceptance of
the opportunity shall be due from the Indirect Owners shall be the same as the date that was due
from the Protected Partner. To the extent that the offer is made to the Indirect Owners more than
two (2) after the Protected Partner sends its request to the OP, the date by which acceptance of
the offer by the Indirect Owners shall be due shall be equally extended.

          (c) The OP makes no representation or warranty to any Protected Partner or Indirect Owner that
receiving an allocation of Qualified Nonrecourse Debt pursuant to Section 5(a) hereof or providing
a guarantee or entering into a DRO pursuant to Section 5(b) hereof shall be respected for federal
income tax purposes as providing such Protected Partner or Indirect Owner with an allocation of
recourse liabilities for purposes of Code Section 752 or as causing

10

 

such Protected Partner or Indirect Owner to be “at risk” with respect to liabilities for purposes
of Code Section 465; provided, however, that the OP shall not take any tax position contrary to
such position except as may be permitted under paragraph (d) below.

          (d) Absent a determination to the contrary by the Internal Revenue Service or a court and
subject to paragraph (e) below, all tax returns prepared by the OP that allocate liabilities of the
OP for purposes of Section 752 and the Treasury Regulations thereunder shall treat each Protected
Partner as being allocated for federal income tax purposes an amount of recourse debt (in addition
to any nonrecourse debt otherwise allocable to such Protected Partner in accordance with the
Partnership Agreement and Treasury Regulation Section 1.752-3 and any other recourse liabilities
allocable to such Partner Guarantor by reason of guarantees or other arrangements entered into
other than pursuant to this Agreement) pursuant to Treasury Regulation Section 1.752-2 equal to the
sum of the amounts of all guarantees entered into by such Partner and DROs undertaken by such
Protected Partner pursuant to this Agreement, and the OP and the REIT shall not take any contrary
or inconsistent position in any federal, state or local income tax returns (including, without
limitation, information returns, such as Schedule K-1s, provided to partners in the OP and returns
of entities in which the OP owns a direct or indirect interest) or in any administrative or
judicial proceeding. Notwithstanding the foregoing, the OP shall not be required to make
allocations of Guaranteed Debt or other recourse debt of the OP to the Protected Partners as set
forth in this Agreement if and to the extent there has been a judicial determination in a
proceeding to which the OP was a party and as to which the Protected Partners have been allowed to
participate as and to the extent contemplated in Section 11 to the effect that such allocations are
not correct. In no event shall this Section 5(d) be construed to relieve the OP from any liability
arising from a failure by the OP to comply with one or more of the provisions of this Section 5.

          (e) The OP shall not, at any time during the Tax Protection Period, repay or refinance all or
any portion of any Guaranteed Debt or otherwise take any action that would result in a decrease in
the amount of OP liabilities allocated to a Protected Partner or Indirect Owner as a result of its
guarantee thereof pursuant to Section 5, unless the OP, not less than thirty (30) days prior to
such repayment, refinancing or other action, provides the applicable Protected Partner with a
Guarantee Opportunity in an amount sufficient to replace the decrease in allocation of liabilities
pursuant to Section 752 of the Code that would otherwise result.

          (f) In the event that a Protected Partner has elected to enter into a DRO, the OP will
maintain outstanding at all times indebtedness of the OP that is Recourse Debt in an amount equal
to or greater than the sum of the LP Recourse Amounts of all partners of the OP, unless the OP, not
less than thirty (30) days prior to any repayment or other action that would violate the foregoing
requirement, provides such Protected Partner with a Guarantee Opportunity in an amount sufficient
to replace the decrease in allocation of liabilities pursuant to Section 752 of the Code that would
otherwise result.

          (g) The OP covenants that (A) it will comply with the requirements set forth in Section 2(c)
upon any disposition of any collateral for a Guaranteed Debt, whether during or following the Tax
Protection Period, (B) it will not at any time, whether during or following the Tax Protection
Period, pledge the collateral for a Guaranteed Debt to secure any other

11

 

indebtedness (unless such other indebtedness is, by its terms, subordinate in all respects to
the Guaranteed Debt for which such collateral is security) or otherwise voluntarily dispose of or
reduce the amount of such collateral unless either (i) after giving effect thereto the debt would
continue to be Qualified Debt and the Guarantee would continue to be a Qualified Guarantee, or (ii)
the OP (x) obtains from the lender with respect to the original Guaranteed Debt a full and complete
release of release of liability for each Protected Partner or Indirect Owner from its guarantee of
such indebtedness unless such Protected Partner or Indirect Owner expressly requests that it not be
released, and (y) if the Tax Protection Period has not expired, offers to each such Protected
Partner or Indirect Owner, not less than thirty (30) days prior to such pledge or disposition, a
Guarantee Opportunity in an amount equal to the amount of its guarantee being so released, and (C)
it will not offer or make available to any person or entity other than a Protected Partner or
Indirect Owner the opportunity to guarantee any Guaranteed Debt .

     6. Indemnity by the OP for Breach of Obligations set forth in Sections 4 and 5.

          (a) In the event that the OP breaches its obligations set forth in Section 4 or 5, each
Protected Partner or Indirect Owner who recognizes additional income as a result of a breach with
respect to Section 4 or Nonrecourse Built-in Gain as a result of a breach with respect to Section 5
shall receive from the OP as damages an amount equal to the aggregate federal, state and local
income taxes incurred by such Protected Partner or Indirect Owner as a result of such additional
income or Nonrecourse Built-in Gain recognized by such Protected Partner or Indirect Owner by
reason of such breach, plus an additional amount so that, after the payment by such Protected
Partner or Indirect Owner of all taxes on amounts received pursuant to this Section 6(a), such
Protected Partner or Indirect Owner retains from such damage payments hereunder an amount equal to
its total tax liability incurred as a result of such breach. The principles and tax rates set
forth in Section 3(a) shall apply for purposes of determining the timing and amount of payment to
be made to a Protected Partner or Indirect Owner pursuant to this Section 6(a). The OP shall be
considered to have satisfied its obligations under Section 5, and therefore shall have no liability
under this Section 6(a) for breach of such Section 5, to the extent that it offers a Protected
Partner a Guarantee Opportunity in accordance with Section 5(b) and such Protected Partner and,
where applicable, its Indirect Owners, fail to timely accept such Guarantee Opportunity.
Notwithstanding anything to the contrary set forth herein, the failure of one or more Protected
Partners or Indirect Owners to accept a Guarantee Opportunity shall not affect the OP’s obligation
to the remaining Protected Partners and Indirect Owners.

          (b) Notwithstanding any provision of this Agreement to the contrary, the sole and exclusive
rights and remedies of any Protected Partner or Indirect Owner for a breach or violation of the
covenants set forth in Sections 4 and 5 shall be a claim for damages against the OP, computed as
set forth in Section 6(a), and no Protected Partner or Indirect Owner shall be entitled to pursue a
claim for specific performance of the covenants set forth in Sections 4 and 5. If the OP has
breached or violated the covenants set forth in Sections 4 or 5 (or a Protected Partner or Indirect
Owner asserts that the OP has breached or violated such covenants), the OP and the Protected
Partner or Indirect Owner agree to negotiate in good faith to resolve any disagreements regarding
any such breach or violation and the amount of damages, if any, payable to such Protected Partner
or Indirect Owner under Section 6(a). If any such disagreement cannot be resolved by the OP and
such Protected Partner or Indirect Owner within

12

 

thirty (30) days after such breach, then to the extent that such disagreement involves an
Arbitrable Dispute, the OP and the Protected Partner shall jointly retain an Accounting Firm to act
as an arbitrator to resolve as expeditiously as possible such disagreement. All determinations
made by the Accounting Firm with respect to resolution of any Arbitrable Dispute shall be final,
conclusive and binding on the OP and the Protected Partner or Indirect Owner. The fees and
expenses of any Accounting Firm incurred in connection with any such determination shall be shared
equally by the OP and the Protected Partner or Indirect Owner. In the event that the OP and a
Protected Partner or Indirect Owner, each having acted in good faith and with its or his best
efforts to select an Accounting Firm, are unable to retain an Accounting Firm within sixty (60)
days after the thirty (30) day period mentioned above, following the expiration of such sixty (60)
day period, any disagreement may be settled in any court of competent jurisdiction. To the extent
that a disagreement between the OP and a Protected Partner or Indirect Owner described under this
Section 6(b) involves issues other than an Arbitrable Dispute and such disagreement cannot be
resolved by the OP and such Protected Partner or Indirect Owner within the thirty (30) day period
mentioned above, such disagreement may be settled in any court of competent jurisdiction.

          (c) The Protected Partners acknowledge that the OP may rely on information provided to the OP
and its accountants for purposes of determining the amount of debt allocated to the Protected
Partners under Section 752 of the Code and the Treasury Regulations thereunder, including
information relating to the adjusted tax basis of the Properties. The OP shall not have any
liability hereunder to the extent that any Protected Partner or any Indirect Owner thereof
recognizes Nonrecourse Built-in Gain or otherwise suffers any damages as a result of the inaccuracy
of any such information, and the Protected Partners on behalf of themselves and their Indirect
Owners hereby unconditionally and irrevocably release the OP from and against any such liability in
such event.

     7. Requests for Information. The OP agrees to provide the Protected Partners with such
information (“Debt Allocation Information”) as is reasonably available to the OP regarding
allocations of the OP’s indebtedness under Section 752 of the Code and the Treasury Regulations
thereunder, as such Protected Partners may reasonably request. All such information acquired by
the Protected Partners or any Indirect Owners thereof or their representatives shall not be
disclosed to any individual or entity other than (x) those representatives of the Protected
Partners and such Indirect Owners who need to know such information for the purpose of assisting
them in evaluating their rights under this Agreement, (y) as required by applicable law or (z) if
necessary, upon the advice of counsel, in order to comply with any judicial order, civil or
criminal subpoena or any discovery demand in pending litigation, whether or not the Protected
Partner, the Indirect Owner or any of its respective representatives is a party thereto.

     8. Third Party Beneficiaries. The OP acknowledges, agrees and confirms that every
Protected Partner and Indirect Owner thereof is an intended third party beneficiary of the
provisions of this Agreement during the period that such person remains a Protected Partner or
Indirect Owner thereof. Notwithstanding the foregoing, Indirect Owners shall communicate with the
OP only through their respective Protected Partners.

13

 

     9. Preparation of Schedules. The Protected Partners shall prepare and complete
Schedules 1, 2 and 3 in good faith and on an estimated basis on or before the Closing Date and
shall finalize such Schedules on or before December 31, 2011.

     10. Tax Proceedings.

          (a) If any claim, demand, assessment (including a notice of proposed assessment) or other
assertion is made with respect to taxes against the Protected Partners or the Partnership the
calculation of which involves a matter covered in this Agreement or the tax treatment of the
Contribution (a “Tax Claim”), or if the REIT or the Partnership receives any notice from any
jurisdiction with respect to any current or future audit, examination, investigation or other
proceeding (a “Proceeding”) involving the Protected Partners or the Partnership or that otherwise
could involve a matter covered in this Agreement and could directly or indirectly affect the
Protected Partners (adversely or otherwise), then the REIT or the Partnership, as applicable, shall
promptly notify the Protected Partners of such Tax Claim or Proceeding, but in no event later than
twenty (20) business days after receipt of such notice.

          (b) The REIT, as the general partner of the OP, shall have the right to control the defense,
settlement or compromise of any Proceeding or Tax Claim; provided, however, that the OP shall keep
the Protected Partners duly informed of the progress thereof to the extent that such Proceeding or
Tax Claim could directly or indirectly affect (adversely or otherwise) the Protected Partners, and
provided further that that the Protected Partners shall have the right to review and comment on any
and all submissions made to the Internal Revenue Service, a court, or other governmental body with
respect to such Tax Claim or Proceeding and that the OP shall consider such comments in good faith.

     11. General Provisions.

     (a) Notices. All notices, requests, claims, demands and other communications under
this Agreement shall be in writing and shall be deemed given if delivered personally, sent by
overnight courier (providing proof of delivery) or sent by telecopy (providing confirmation of
transmission) to the parties at the following addresses or telecopy numbers (or at such other
address or telecopy number for a party as shall be specified by like notice):

	 	 	 	 	 	 	 

	(i)	 	if to the OP, to:	 	 
	 
	 	 	 	 	 	 
	 	 	c/o Schottenstein Realty Trust, Inc.
	 	 	4300 East Fifth Avenue, Columbus OH 43219
	 

	 	Attn:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Fax No.:
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 	 	 
	 	 	Greenberg Traurig, LLP
	 	 	77 West Wacker Drive
	 	 	Suite 3100
	 	 	Chicago, IL 60601
	 	 	Attn: Corey Light, Esq.
	 	 	Fax No.: (312) 456-8435
	 
	 	 	 	 	 	 
	(ii)	 	if to a Protected Partner, to the address on file with the OP.
	 
	 	 	 	 	 	 
	 	 	[with a copy to: __________________]

14

 

     (b) Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the Protected Partners. This Agreement shall be binding upon the REIT, the OP and
any entity that is a direct or indirect successor, whether by Merger, spin-off or otherwise, to all
or substantially all of the assets of either the REIT or the OP (or any prior successor thereto as
set forth in the preceding portion of this sentence), provided that none of the foregoing shall
result in the release of liability of the REIT and the OP hereunder. The REIT and the OP covenant
with and for the benefit of the Protected Partners not to undertake (directly or indirectly) any
transfer of all or substantially all of the assets of either entity (whether by Merger, spin-off or
otherwise) unless the transferee has in writing acknowledged and agreed to be bound by this
Agreement, provided further that the foregoing shall not be deemed to permit any transaction
otherwise prohibited by this Agreement.

     (c) Amendment. This Agreement may not be amended, directly or indirectly (including by
reason of a merger between the Partnership and another entity) except by a written instrument
signed by the REIT, as general partner of the Partnership, and each of the Protected Partners.

     (d) Counterparts. This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other party.

     (e) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF DELAWARE, REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER
APPLICABLE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

15

 

EXHIBIT 10.6

     IN WITNESS WHEREOF, the OP, the REIT and the Protected Partners have duly executed this
Agreement as of the date first written above.

	 	 	 	 	 	 	 

	 	 	SCHOTTENSTEIN REALTY LP
	 
	 	 	 	 	 	 
	 	 	By:	 	Schottenstein Realty Trust, Inc., general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SCHOTTENSTEIN REALTY TRUST, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	[PROTECTED PARTNERS]
	 
	 	 	 	 	 	 
	 	 	 
	 	 	 

 

 

EXHIBIT 10.6

Schedule 1

(Estimated Amounts)

	 	 	 	 	 	 	 

	Protected Partner
	 	Section 704(c) Value
	 	Adjusted Tax Basis
	 	Built-In Gain
	 	 	 	 	 	 	 
	[Names]
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 

[INSERT SCHEDULE FOR EACH PROPERTY]

 

 

EXHIBIT 10.6

[Schedule 2]

(Estimated Amount)

The Built-In Gain for [Property X] is allocated among the Indirect Owners as follows:

	 	 	 

	Indirect Owner
	 	Allocable Built-In Gain
	 	 	 
	[Names]
	 	 
	 
	 	 

 

 

Schedule 3

Minimum Liability Amount

	 	 	 

	Protected Partner
	 	Minimum Liability Amount
	 
	 	 

2

 

EXHIBIT 10.6

Schedule 4

Form of Guarantee Agreement For Secured Nonrecourse Indebtedness

GUARANTEE OF COLLECTIBILITY AGREEMENT

     THIS GUARANTEE AGREEMENT (“Guarantee”), is dated as of _________, between each of the
undersigned Persons identified on Schedule 1 attached hereto (the “Guarantors”), and [LENDER] (the
“Guaranteed Party”).

     WHEREAS, [BORROWER] (“Maker”), is indebted to the Guaranteed Party in the sum of [LOAN AMOUNT]
(the “Loan”), as evidenced by a certain promissory note (the “Note”), which is secured by a first
mortgage lien (the “Mortgage”) on certain property of the Maker (the “Properties” and individually,
a “Property”). [Add description of Qualifying Debt.] The Note, the Mortgage and all other
instruments, whether now existing or hereafter arising, evidencing or securing the Loan or any
extension or modification thereof, as each such document has been or may hereafter be amended or
modified, are collectively referred to herein as the “Loan Documents.”

     WHEREAS, the Guarantors hold limited partnership interests (“OP Units”), directly or
indirectly, in Schottenstein Realty LP, a Delaware limited partnership.

     WHEREAS, the Guarantors desire to guarantee collection of a portion of the principal amount of
the Note not in excess of [Guaranteed Amount] (the “Guaranteed Amount”).

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and intending to be legally bound hereby, Guarantors agree as follows:

     1. Guarantee and Limitation on Liability.

     A. The Guarantors, pursuant to this Guarantee, hereby unconditionally guarantee to the
Guaranteed Party, subject to the terms of this Paragraph 1 below, full payment of all of the
Maker’s obligations for the repayment of the principal amount outstanding under the Note as
of the date hereof (the “Guaranteed Obligations”).

     B. Notwithstanding anything to the contrary contained in this Guarantee: (i) each
Guarantor’s liability under this Guarantee shall be limited to the lesser of (x) the actual
principal amount outstanding under the Note and (y) the amount(s) set forth next to such
Guarantor’s name on Schedule 2 attached hereto, as the same may be amended from time to
time; (ii) the amounts payable by each Guarantor in respect of the Guaranteed Obligations
shall be in the same proportion as the amount listed next to such Guarantor’s name on
Schedule 2 bears to the Guaranteed Amount; and (iii) no demand shall be made under this
Guarantee (1) unless and until an event of default under the Loan Documents has occurred and
is continuing and the Guaranteed Party has accelerated the Loan and (A) either foreclosed on
the Mortgage and exercised the powers of sale thereunder or accepted a deed to the
Properties in lieu of foreclosure of its indebtedness and (B)

 

 

proceeded against and exhausted all remedies, whether at law or in equity, available to
the Guaranteed Party against the Maker, any collateral securing the Loan (including but not
limited to the assets of the Maker other than the Properties against which the Guaranteed
Party has recourse pursuant to the Loan Documents); and (2) except as and to the extent that
the Guaranteed Amount is in excess of the Maker Proceeds (as hereinafter defined).

     C. For the purposes of this Guarantee, the term “Maker Proceeds” shall mean the
aggregate of the Foreclosure Proceeds (as hereinafter defined) plus all other amounts
collected from the Maker or realized from the sale of assets of the Maker other than the
Properties by the Guaranteed Party in repayment of the Note.

     D. For the purposes of this Guarantee, the term “Foreclosure Proceeds” shall have the
applicable meaning set forth below with respect to a Property:

     1. If at least one bona fide third party unrelated to the Guaranteed Party (and
including, without limitation, any of the Guarantors) bids for such Property at a
sale thereof, conducted upon foreclosure of the related Mortgage or exercise of the
power of sale thereunder, Foreclosure Proceeds shall mean the highest amount bid for
such Property by the party that acquires title thereto (directly or through a
nominee) at or pursuant to such sale. For the purposes of determining such highest
bid, amounts bid for the Property by the Guaranteed Party shall be taken into
account notwithstanding the fact that such bids may constitute credit bids which
offset against the amount due to the Guaranteed Party under the Note.

     2. If there is no such unrelated third party at such sale of the Property so
that the only bidder at such sale is the Guaranteed Party or its designee, the
Foreclosure Proceeds shall be deemed to be the fair market value (the “Fair Market
Value”) of the Property as of the date of the foreclosure sale, as such Fair Market
Value shall be mutually agreed upon by the Guaranteed Party and the Guarantors or
determined pursuant to Paragraph 1.E.

     3. If the Guaranteed Party receives and accepts a deed to the Property in lieu
of foreclosure in partial satisfaction of Maker’s obligations under the Note, the
Foreclosure Proceeds shall be deemed to be the Fair Market Value of such Property as
of the date of delivery of the deed-in-lieu of foreclosure, as such Fair Market
Value shall be mutually agreed upon by the Guaranteed Party and the Guarantors or
determined pursuant to Paragraph 1.E.

     E. Fair Market Value of a Property shall be the price at which a willing seller not
compelled to sell would sell such Property, and a willing buyer not compelled to buy would
purchase the Property, free and clear of all mortgages but subject to all leases and
reciprocal easements and operating agreements. If the Guaranteed Party and Guarantors are
unable to agree upon the Fair Market Value of a Property in accordance with subparagraphs
1.D.2 or 3 above, as applicable, within twenty (20) days after the date of the foreclosure
sale or the delivery of the deed-in-lieu of foreclosure, as applicable,

2

 

relating to a Property, either party may have the Fair Market Value of a Property
determined by appraisal by appointing an appraiser having the qualifications set forth below
to determine the same and by notifying the other party of such appointment within twenty
(20) days after the expiration of such twenty (20) day period. If the other party shall
fail to notify the first party, within twenty (20) days after its receipt of notice of the
appointment by the first party, of the appointment by the other party of an appraiser having
the qualifications set forth below, the appraiser appointed by the first party shall alone
make the determination of such Fair Market Value. Appraisers appointed by the parties shall
be members of the Appraisal Institute (MAI) and shall have at least ten years’ experience in
the valuation of properties similar to the Property being valued in the greater metropolitan
area in which such Property is located. If each party shall appoint an appraiser having the
aforesaid qualifications and such two appraisers cannot, within thirty (30) days after the
appointment of the second appraiser, agree upon the determination hereinabove required, then
they shall select a third appraiser which third appraiser shall have the aforesaid
qualifications, and if they fail so to do within forty (40) days after the appointment of
the second appraiser they shall notify the parties hereto, and either party shall thereafter
have the right, on notice to the other, to apply for the appointment of a third appraiser to
the chapter of the American Arbitration Association or its successor organization located in
the metropolitan area in which the Property is located or to which the Property is proximate
or if no such chapter is located in such metropolitan area, in the metropolitan area closest
to the Property in which such a chapter is located. Each appraiser shall render its
decision as to the Fair Market Value of the Property in question within thirty (30) days
after the appointment of the third appraiser and shall furnish a copy thereof to the
Guaranteed Party and Guarantors. The Fair Market Value of the Property shall then be
calculated as the average of (i) the Fair Market Value determined by the third appraiser and
(ii) whichever of the Fair Market Values determined by the first two appraisers is closer to
the Fair Market Value determined by the third appraiser; provided, however, that if the Fair
Market Value determined by the third appraiser is higher or lower than both Fair Market
Values determined by the first two appraisers, such Fair Market Value determined by the
third appraiser shall be disregarded and the Fair Market Value of the Property shall then be
calculated as the average of the Fair Market Value determined by the first two appraisers.
The Fair Market Value of a Property as so determined shall be binding and conclusive upon
the Guaranteed Party and Guarantors. Each party shall bear the cost of its own appraiser and
the cost of appointing, and the expenses of, the third appraiser shall be shared equally by
the Guaranteed Party and Guarantors.

     2. Waivers: Other Agreements.

     The Guaranteed Party is hereby authorized, without notice to or demand upon Guarantors, which
notice or demand is expressly waived hereby, and without discharging or otherwise affecting the
enforceability of the obligations of the Guarantors hereunder (which shall remain absolute and
unconditional notwithstanding any such action or omission to act), from time to time to:

     (i) waive or otherwise consent to noncompliance with any provision of the Note or
Mortgage, or any part thereof, or any other instrument or agreement in respect of

3

 

the Guaranteed Obligations now or hereafter executed by Maker or any other person and
delivered to the Guaranteed Party;

     (ii) accept partial payments on the Guaranteed Obligations by Maker;

     (iii) receive, take and hold additional security or collateral for the payment of the
Guaranteed Obligations or for the payment of this Guarantee, or for the payment of any other
guarantees of the Guaranteed Obligations, and exchange, enforce, waive, substitute,
liquidate, terminate, abandon, fail to perfect, subordinate, transfer, or otherwise alter or
release any such additional security or collateral;

     (iv) apply any and all such security or collateral and direct the order or manner of
sale thereof as the Guaranteed Party may determine in its sole discretion;

     (v) settle, release, compromise, collect or otherwise liquidate the Guaranteed
Obligations or accept, substitute, release, exchange or otherwise alter, affect or impair
any Mortgage or any other security or collateral for the Guaranteed Obligations or any other
guarantee therefore, in any manner;

     (vi) add, release or substitute any one or more other guarantors, makers or endorsers
of the Guaranteed Obligations and otherwise deal with Maker or any other guarantor as the
Guaranteed Party may elect in its sole discretion; and

     (vii) apply any and all payments or recoveries from Maker, Guarantors or from any other
guarantor of the Guaranteed Obligations, to such of the Guaranteed Obligations as the
Guaranteed Party in its sole discretion may determine, whether such Guaranteed Obligations
are secured or unsecured or guaranteed or not guaranteed by others.

     3. No Right of Subrogation. Until payment in full of the Guaranteed Obligations, the
Guarantors shall have no right of subrogation or indemnification whatsoever, whether by contract,
at law, in equity or otherwise, with respect to the Guaranteed Obligations and hereby waive any and
all rights of subrogation and indemnification prior to such payment in full and any right to assert
or enforce any remedy with respect thereto which the Guarantors or any of them now or hereafter may
have against the Maker, any partner (whether general or limited) or member of the Maker and any
other person or entity.

     4. Release of Guarantee; Substitution. In the event that (a) Guarantor disposes of
all of his, her or its OP Units [or otherwise desires to be released from this Guarantee], at a
time when there is not a default with respect to any payment due under the Note and the ratio of
the outstanding balance of the Guaranteed Obligations to the appraised value of the Properties is
not greater than 80% (the “Ratio Test”) or (b) a Guarantor dies, then, upon request by such
Guarantor (or his or her estate), such Guarantor (or estate) shall be released from all liability
hereunder (and his, her or its Guaranteed Obligation shall be reduced to zero). Notwithstanding
the foregoing, the occurrence of an event described in clause (a) or (b) above shall not release a
Guarantor (or its estate) from any payment obligation it incurred prior to the occurrence of such
event. Guarantor (or its estate) may, at its option, elect to substitute another person who is
related to the Guarantor (or its estate) (within the meaning of Treasury Regulation section 1.752-

4

 

4(b)) to serve as Guarantor hereunder, provided that such person has a net worth at the time
of such substitution of not less than the net worth of the existing Guarantor hereunder at the time
of such substitution and there is no default under the Loan Documents with respect to any payment
due at the time of such substitution. In the event of such substitution, the existing Guarantor
hereunder shall be released from all liability upon delivery to Lender of a guarantee in the form
of this Guarantee executed by such substituted person.

     5. Miscellaneous.

     A. This Guarantee is irrevocable as to any and all of the Guaranteed Obligations until
the earliest date (the “Termination Date”) that, as a result of a repayment, compromise or
adjustment of a principal amount of the Note, the total principal amount outstanding under
the Note is reduced by an amount equal to or greater than the Guaranteed Amount, or if the
Maker incurs indebtedness senior to, or pari passu with the Note, provided that the
obligations of the Guarantors hereunder shall continue after the Termination Date to the
extent of any claims that are attributable fully and solely to an event or action that
occurred before the Termination Date.

     B. This Guarantee is binding on the Guarantors and their successors and assigns, and
inures to the benefit of the Guaranteed Party.

     C. No delay on the part of the Guaranteed Party in the exercise of any right or remedy
shall operate as a waiver thereof, and no single or partial exercise or waiver by the
Guaranteed Party of any right or remedy shall preclude any further exercise thereof, nor
shall any modification or waiver of any of the provisions of this Guarantee be binding upon
the Guaranteed Party, except as expressly set forth in a writing duly signed or delivered by
the Guaranteed Party or on the Guaranteed Party’s behalf by an authorized officer or agent
of the Guaranteed Party. The Guaranteed Party’s failure at any time or times hereafter to
require strict performance by Maker, Guarantors or any other person of any of the
provisions, warranties, terms and conditions contained in any security agreement,
agreements, guarantee, instrument or document now or at any time or times hereafter executed
by Maker or Guarantors or delivered to the Guaranteed Party shall not waive, affect or
diminish any right of the Guaranteed Party at any time or times hereafter to demand strict
performance thereof and such right shall not be deemed to have been waived by any act or
knowledge of the Guaranteed Party, its agents, officers, or employees, unless such waiver is
contained in an instrument in writing signed by an officer or agent of the Guaranteed Party
and directed to Maker or Guarantors, or either of them (as the case may be) specifying such
waiver. No waiver by the Guaranteed Party of any default shall operate as a waiver of any
other default or the same default on a future occasion, and no action by the Guaranteed
Party permitted hereunder shall in any way affect or impair the Guaranteed Party’s rights or
the obligations of Guarantors under this Guarantee.

     D. This Guarantee shall be interpreted and the rights and liabilities of the parties
hereto determined in accordance with the laws (other than the conflicts of law provisions)
of the State of [state law governing other loan documents]. The rights and obligations
contained in this Guarantee are intended to cause the Guarantors or a person

5

 

`

related to the Guarantors (within the meaning of Treasury Regulation section
1.752-4(b)) who is a partner in Schottenstein Realty LP to bear or to be treated as bearing
the economic risk of loss (within the meaning of Treasury Regulation section 1.752-2) with
respect to the Loan to the extent of the amount of the aggregate Guaranteed Obligations and
shall be interpreted consistently therewith.

     E. This Guarantee contains all the terms and conditions of the agreement between the
Guaranteed Party and Guarantors. The terms and provisions of this Guarantee may not be
waived, altered, modified or amended except in writing duly executed by the party to be
charged thereby.

     F. Any notice shall be directed to the parties at the following addresses:

	 	 	 

	 

	 	If to Guarantors:
	 
	 	 
	 

	 	If to the Guaranteed Party:

6exv10w8

EXHIBIT 10.8

 

FORM OF

SECOND AMENDED AND RESTATED

CONTRIBUTION AGREEMENT

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I CONTRIBUTION
	 	 	3	 
	Section 1.01. Contribution and Subscription
	 	 	3	 
	Section 1.02. Consideration
	 	 	4	 
	Section 1.03. Further Action
	 	 	4	 
	Section 1.04. Transaction Costs
	 	 	4	 
	Section 1.05. Pre-Closing Distributions
	 	 	5	 
	Section 1.06. Adjusted Consideration
	 	 	5	 
	Section 1.07. Allocation of Total Consideration
	 	 	5	 
	Section 1.08. Tax Treatment of Consolidation Transactions
	 	 	5	 
	 
	 	 	 	 
	ARTICLE II CLOSING
	 	 	6	 
	Section 2.01. Conditions Precedent
	 	 	6	 
	Section 2.02. Time and Place
	 	 	8	 
	Section 2.03. Delivery of OP Units
	 	 	8	 
	Section 2.04. Closing Deliveries
	 	 	8	 
	Section 2.05. Closing Costs
	 	 	9	 
	Section 2.06. Term of the Agreement
	 	 	9	 
	Section 2.07. Effect of Termination
	 	 	9	 
	Section 2.08. Tax Withholding
	 	 	9	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS, WARRANTIES AND INDEMNITIES OF THE COMPANY AND THE OP
	 	 	10	 
	Section 3.01. Organization; Authority
	 	 	10	 
	Section 3.02. Due Authorization
	 	 	10	 
	Section 3.03. Consents and Approvals
	 	 	11	 
	Section 3.04. No Violation
	 	 	11	 
	Section 3.05. Validity of OP Units
	 	 	11	 
	Section 3.06. Litigation
	 	 	11	 
	Section 3.07. Limited Activities
	 	 	11	 
	Section 3.08. REIT Status
	 	 	11	 
	Section 3.09. Tax Status of the OP
	 	 	11	 
	Section 3.10. Continuing Efforts
	 	 	12	 
	Section 3.11. No Brokers or Finders
	 	 	12	 
	Section 3.12. No Other Representations or Warranties
	 	 	12	 
	Section 3.13. Indemnification
	 	 	12	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTING MEMBERS
	 	 	14	 
	Section 4.01. Organization; Authority
	 	 	14	 
	Section 4.02. Due Authorization and Enforceability
	 	 	14	 
	Section 4.03. Ownership of Interest
	 	 	15	 
	Section 4.04. Consents and Approvals
	 	 	15	 
	Section 4.05. No Violation
	 	 	15	 

i

 

	 	 	 	 	 
	 	 	Page
	Section 4.06. Non-Foreign Person
	 	 	15	 
	Section 4.07. Absence of Undisclosed Liabilities
	 	 	16	 
	Section 4.08. Solvency
	 	 	16	 
	Section 4.09. Litigation
	 	 	16	 
	Section 4.10. Investment
	 	 	16	 
	Section 4.11. Continuing Efforts
	 	 	19	 
	Section 4.12. No Brokers or Finders
	 	 	19	 
	Section 4.13. No Claims
	 	 	19	 
	Section 4.14. FINRA Affiliations
	 	 	19	 
	Section 4.15. Title; Compliance with Laws
	 	 	20	 
	Section 4.16. Taxes
	 	 	20	 
	Section 4.17. Insurance
	 	 	22	 
	Section 4.18. Environmental Matters
	 	 	22	 
	Section 4.19. Employment Matters
	 	 	22	 
	Section 4.20. No Other Representations or Warranties
	 	 	22	 
	Section 4.21. Indemnification
	 	 	23	 
	 
	 	 	 	 
	ARTICLE V COVENANTS AND OTHER AGREEMENTS
	 	 	25	 
	Section 5.01. Covenants of the Contributing Members; Waiver
	 	 	25	 
	Section 5.02. Commercially Reasonable Efforts by the Company, the OP and the
Contributing Members
	 	 	27	 
	Section 5.03. Tax Matters
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VI GENERAL PROVISIONS
	 	 	28	 
	Section 6.01. Notices
	 	 	28	 
	Section 6.02. Definitions
	 	 	29	 
	Section 6.03. Counterparts
	 	 	31	 
	Section 6.04. Entire Agreement; Third Party Beneficiaries
	 	 	31	 
	Section 6.05. Governing Law
	 	 	31	 
	Section 6.06. Assignment
	 	 	31	 
	Section 6.07. Jurisdiction
	 	 	31	 
	Section 6.08. No Arbitration
	 	 	31	 
	Section 6.09. Final Agreements
	 	 	31	 
	Section 6.10. Severability
	 	 	32	 
	Section 6.11. Rules of Construction
	 	 	32	 
	Section 6.12. Equitable Remedies
	 	 	32	 
	Section 6.13. Further Assurances
	 	 	33	 
	Section 6.14. Time of the Essence
	 	 	33	 
	Section 6.15. Descriptive Headings
	 	 	33	 
	Section 6.16. No Personal Liability Conferred
	 	 	33	 
	Section 6.17. Amendments
	 	 	33	 
	Section 6.18. Amendment and Restatement of Original Agreement
	 	 	33	 

ii

 

SECOND AMENDED AND RESTATED CONTRIBUTION AGREEMENT

     This Second Amended and Restated Contribution Agreement is made and entered into as of March
__, 2011 (this “Agreement”), by and among Schottenstein Realty Trust, Inc., a Maryland corporation
and formerly known as 1492 Realty Trust, Inc. (the “Company”), which intends to qualify as a real
estate investment trust (a “REIT”) for federal income tax purposes, Schottenstein Realty, LP, a
Delaware limited partnership and formerly known as 1492 Realty, LP (the “OP”), and the contributing
members set forth on the signature page hereto (each, a “Contributing Member” and, collectively,
the “Contributing Members”).

RECITALS

     WHEREAS, the Company, the OP and the Contributing Members previously entered into that certain
Contribution Agreement, dated as of August 26, 2010, as amended and restated by the Amended and
Restated Contribution Agreement, dated as of September 27, 2010 (the “Original Agreement”);

     WHEREAS, the Company, the OP and the Contributing Members desire to enter into this Agreement
in order to amend and restated the Original Agreement in its entirety upon the terms and conditions
set forth in this Agreement;

     WHEREAS, the Contributing Members are holders of limited liability company, general or limited
partnership interests in one or more of the limited liability companies or partnerships (the
“Existing Entities”) which own or lease pursuant to a ground lease, directly or indirectly, the
real properties set forth opposite each applicable Existing Entity on Exhibit A hereto (each, a
“Property” and collectively, the “Properties”);

     WHEREAS, the limited liability company, general partner or limited partner interests in the
Existing Entities held by the Contributing Members are referred to herein collectively as the
“Contributing Member Interests;”

     WHEREAS, in conjunction with the formation transactions and the initial public offering of
stock in the Company (the “IPO”), the Company desires to consolidate the ownership of the
Contributing Member Interests into the OP in a consolidation transaction to be completed prior to
or concurrently with the completion of the IPO, as a result of which the Contributing Members will
have exchanged, through a series of assignment and assumption agreements, their Contributing Member
Interests for units of limited partnership interests (the “OP Units”) to be issued by the OP to the
Contributing Members (or, in certain limited cases, cash) (the “Consolidation Transactions”);

     WHEREAS, various assignment and assumption agreements (including this Agreement) (the
“Assignment and Assumption Agreements”) pursuant to which all of the Contributing Member Interests
in the Existing Entities held by the Contributing Members are to be acquired, directly or
indirectly, by the Company or the OP as part of the Consolidation Transactions, will be executed to
effectuate the Consolidation Transactions;

 

 

     WHEREAS, Exhibit A sets forth, among other things, (i) the identity of each Contributing
Member, (ii) the names of the Existing Entities in which the Contributing Member holds interests,
(iii) a description of the Contributing Member Interests and (iv) the number of OP Units due to
such Contributing Member upon contribution of the Contributing Member Interests;

     WHEREAS, the Contributing Members understand that only Accredited Investors (as such term is
defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended) are
eligible to receive OP Units in the Consolidation Transactions (the “Offered OP Units”) and if such
Contributing Member is not an Accredited Investor, such Contributing Member will receive only cash
as consideration for his, her or its Contributing Member Interests in an amount equal to the
product of (i) the number of OP Units due to such Contributing Member and (ii) the IPO Price (as
hereinafter defined) (the “Non-Accredited Investor Payment”);

     WHEREAS, it is intended for federal income tax purposes that the Consolidation Transactions be
treated as a contribution of the equity interests in the Existing Entities to the OP in exchange
for OP Units under Section 721 of the Code (as hereinafter defined) including, where applicable,
pursuant to the “assets over” form of transaction set forth in Treasury Regulations Section
1.708-1(c)(3)(i);

     WHEREAS, the Contributing Members understand and acknowledge that, as of the date of this
Agreement, neither the Company nor the OP knows the value of the OP Units that will be available
for exchange for the Contributing Member Interests and the Contributing Members acknowledge and
understand that the value of the OP Units to be issued to the Contributing Members will depend on
the Company’s value in the pricing of the Company’s IPO;

     WHEREAS, by executing this Agreement, the Contributing Members (A) consent to the
Consolidation Transactions and to the applicable Assignment and Assumption Agreements with respect
to the Existing Entities in which such Contributing Member is a general partner, limited partner,
member or stockholder, (B) waive any right they may have to elect to receive any cash or other
consideration, respectively, under the organizational documents for any of the Existing Entities,
and (C) irrevocably agree, upon satisfaction of the conditions in Sections 2.01 of this Agreement,
to receive in exchange for such Contributing Member Interests (i) the Offered OP Units if the
Contributing Member is an Accredited Investor or, (ii) if the Contributing Member is not an
Accredited Investor, to accept the Non-Accredited Investor Payment or (iii) if, in certain limited
circumstances set forth in Section 1.01(c), the Company or the OP determine to pay cash, to accept
the Cash in Lieu Payment (as hereinafter defined); and

     WHEREAS, except as otherwise set forth in this Agreement, all necessary approvals have been
obtained by the parties to this Agreement to consummate the transactions contemplated herein.

     NOW, THEREFORE, in consideration of the foregoing and the representations, warranties,
covenants and other terms contained in this Agreement, the parties hereto, intending to be legally
bound hereby, agree as follows:

2

 

ARTICLE I

CONTRIBUTION

     Section 1.01. Contribution and Subscription.

          (a) Contributing Members. By executing the signature page to this Agreement, subject to the
terms and conditions hereof, (i) each Contributing Member, if an Accredited Investor, hereby
agrees, in exchange for such Contributing Member’s Contributing Member Interests, to subscribe for
and receive, and the OP agrees to issue, the Contributing Member’s portion of the Offered OP Units
to such Contributing Member on the closing date of the IPO (the “Closing Date”) as set forth in
Section 1.02, and (ii) each Contributing Member (A) consents to the Consolidation Transactions and
to the applicable Assignment and Assumption Agreements with respect to the Existing Entities in
which such Contributing Member holds a Contributing Member Interest, (B) waives any right such
Contributing Member may have to elect to receive any cash or other consideration, respectively,
under the organizational documents for any of the Existing Entities, and (C) irrevocably agrees,
upon satisfaction of the conditions in Sections 2.01 of this Agreement, to receive in exchange for
such Contributing Member Interests (1) the Offered OP Units or, (2) if the Contributing Member is
not an Accredited Investor, to accept the Non-Accredited Investor Payment, or (3) if, in certain
limited circumstances set forth in Section 1.01(c), the Company or the OP determine to pay cash, to
accept the Cash in Lieu Payment (as hereinafter defined).

          (b) Reallocation of Interests. Exhibit A sets forth, among other things, (i) the identity of
each Contributing Member, (ii) the names of the Existing Entities in which the Contributing Member
holds interests, and (iii) a description of the Contributing Member Interests. The Company
reserves the right, by written notice to a Contributing Member, to require such Contributing Member
and the Existing Entities, to reallocate one or more Contributing Member Interests slated for
acquisition under the Assignment and Assumption Agreements, such that the Existing Entity in which
such Contributing Member Interests are held will be instead acquired by the Company, the OP or any
subsidiary thereof. The Company shall exercise such right only if in its reasonable judgment such
reallocation is necessary to protect the status of the Company as a REIT for federal income tax
purposes or the tax deferred nature of the transactions contemplated by this Agreement. The parties
agree that any such reallocation of an Interest shall not change the total number of Offered OP
Units to be received by the Contributing Members under this Agreement and the Assignment and
Assumption Agreements.

          (c) Circumstances for Payment of Cash Consideration. Notwithstanding anything to the contrary
contained in this Agreement, if necessary to permit compliance with securities laws or to protect
the status of the Company as a REIT for federal income tax purposes, to comply with a court order
or upon mutual agreement with a Contributing Member, the Company or the OP may determine to pay
cash in lieu of OP Units in exchange for a Contributing Member Interest. Upon such determination,
such Contributing Member will receive only cash as consideration for his, her or its Contributing
Member Interests in an amount equal to the product of (i) the number of OP Units that would have
been due to such Contributing Member if such Contributing Member were receiving OP Units and no
Cash Payment, and (ii)

3

 

the IPO Price (as hereinafter defined) (the “Cash in Lieu Payment” and, together with the
Non-Accredited Investor Payment, the “Cash Payments”).

     Section 1.02. Consideration.

          (a) Under and subject to the terms and conditions of the respective Transaction Documents,
each Contributing Member is hereby irrevocably bound to accept and entitled to receive upon
consummation of the Consolidation Transactions: (i) the number of OP Units set forth opposite such
Contributing Members name on Exhibit A or, (ii) in the case of a Contributing Member that is not an
Accredited Investor, the Non-Accredited Investor Payment, or (iii) in the case of a determination
by the Company or the OP to pay cash to a Contributing Member as provided in Section 1.01(c), the
Cash in Lieu Payment (in aggregate, the “Consideration”). No fractional OP Units shall be issued
pursuant to this Agreement. If aggregating all OP Units that a Contributing Member would otherwise
be entitled to receive as a result of any of the Consolidation Transactions would require the
issuance of a fractional OP Unit, in lieu of such fractional OP Unit, the Contributing Member shall
be entitled to receive an amount in cash determined by multiplying the fraction of an OP Unit to
which such Contributing Member would otherwise have been entitled, by the IPO Price. No interest
will be paid or will accrue on any cash paid or payable in lieu of any fractional OP Unit.

          (b) Receipt of Consideration is expressly conditioned upon receipt of the Transaction
Documents duly executed and fully completed.

          (c) The Company and the OP, in their sole and absolute discretion, may determine to
proportionately increase the number of OP Units each Contributing Member may receive. Such
determination must be made prior to the commencement of the marketing of the IPO, through a
preliminary prospectus.

     Section 1.03. Further Action. If, at any time after the Closing Date, the Company shall
determine or be advised that any deeds, bills of sale, assignments, assurances or other actions or
things are necessary or desirable to vest, perfect or confirm of record or otherwise in the
Company, the OP or any subsidiary thereof the right, title or interest in or to the Contributing
Member Interests exchanged by a Contributing Member, each Contributing Member shall execute and
deliver all such deeds, bills of sale, assignments and assurances and take and do all such other
actions and things as may be necessary or desirable to vest, perfect or confirm any and all right,
title and interest in the Contributing Member Interests or otherwise to carry out this Agreement;
provided, that such Contributing Member shall not be obligated to take any action or execute any
document if the additional actions or documents impose additional liabilities, obligations,
covenants, responsibilities, representations or warranties on such Contributing Member that are not
contemplated by this Agreement.

     Section 1.04. Transaction Costs. If the Closing occurs, the Company and the OP shall be solely
responsible for all transaction costs and expenses of the Company, the OP and the Existing Entities
in connection with the Consolidation Transactions and the IPO, which include, but are not limited
to, the underwriting discounts and commissions, and transfer Taxes, if any. If the Closing does
not occur, Section 2.07 shall govern.

4

 

     Section 1.05. Pre-Closing Distributions. On or prior to the Closing Date, each Existing Entity
may assign and transfer all of its right, title and interest in and to its cash and other current
assets in excess of its liabilities (excluding amounts on deposit with lenders for escrow accounts,
prepaid rent, prepaid management fees or other prepaid income streams, prepaid expense
reimbursements, accrued employee benefits, future lease obligations, security deposits and amounts
otherwise reserved) to the Contributing Members (and/or any other Person (as hereinafter defined)
designated by a Contributing Member) in the ordinary course of business consistent with past
practice and in accordance with the provisions of the applicable organizational document of each
such applicable Existing Entity (such assets being referred to as the “Excluded Assets”); provided,
however, that other than the distributions by the Existing Entities contemplated by the
Consolidation Transactions, the Existing Entities have not since December 31, 2010 taken, and shall
not take, any action not in the ordinary course of business consistent with past practice to
increase current assets or reduce current liabilities, including by increasing long-term
liabilities, decreasing long-term assets, changing reserves or otherwise. The OP agrees and
acknowledges that none of the Excluded Assets, nor any right, title or interest of the Existing
Entities or the Contributing Members therein, shall be deemed to constitute a part of any Existing
Entity’s assets and liabilities, and that such assets and liabilities will not be owned or retained
by any Existing Entity at the Closing Date. The OP agrees and acknowledges that the Existing
Entities may transfer or distribute the Excluded Assets at any time and from time to time prior to
the Closing Date in the ordinary course of business consistent with past practice, and no such
transfer or distribution shall be deemed to violate or breach any provision under this Agreement or
any other documents contemplated hereby.

     Section 1.06. Adjusted Consideration. The OP reserves the right not to acquire any
Contributing Member Interest, directly or indirectly, if in good faith the OP determines that the
ownership of such Contributing Member Interest would be inappropriate for the OP. Each
Contributing Member hereby agrees that, in such event, such Contributing Member’s Total
Consideration (as hereinafter defined) may be reduced by the amount and type of Consideration
allocated to such Contributing Member Interest without any further action or consent by such
Contributing Member.

     Section 1.07. Allocation of Total Consideration. The Consideration paid to each Contributing
Member shall be allocated for Tax purposes among the Contributing Members in the same relative
proportion as the Consideration is allocated among the Contributing Members. The Company, the OP
and such Contributing Member agree to (i) be bound by the allocation, (ii) act in accordance with
the allocation in the preparation of financial statements and filing of all Tax Returns and in the
course of any Tax audit, Tax review or Tax litigation relating thereto and (iii) take no position
and cause their affiliates to take no position inconsistent with the allocation for income Tax
purposes.

     Section 1.08. Tax Treatment of Consolidation Transactions. The contributions, transfers,
conveyances, assignments and deliveries pursuant to the Consolidation Transactions in which the
Consideration is OP Units shall be treated as contributions of property to the OP in exchange for
OP Units under Section 721(a) of the Code.

5

 

ARTICLE II

CLOSING

     Section 2.01. Conditions Precedent.

          (a) Condition to Each Party’s Obligations. The respective obligation of each party to effect
the actions contemplated by this Agreement and to consummate the other transactions contemplated
hereby to occur on the Closing Date is subject to the satisfaction or waiver by all parties hereto
of the following conditions:

               (i) Registration Statement. The initial registration statement of the Company for the IPO (the
“Registration Statement”) shall have become effective under the Securities Act of 1933, as amended
and the rules and regulations promulgated thereunder (the “Securities Act”) and shall not be the
subject of any stop order or proceedings by the Securities and Exchange Commission (“SEC”) seeking
a stop order. This condition may not be waived by any party.

               (ii) IPO Proceeds. The Company shall have received the gross proceeds from the IPO. This
condition may not be waived by any party.

               (iii) No Injunction. No Governmental Authority (as hereinafter defined) shall have enacted,
issued, promulgated, enforced or entered any statute, rule, regulation, executive order, decree,
judgment, injunction or other order (whether temporary, preliminary or permanent), in any case
which is in effect and that has not been discharged and which prevents or prohibits consummation of
any of the transactions contemplated in this Agreement (which condition may not be waived by any
party) nor shall any of the same brought by a Governmental Authority of competent jurisdiction that
has not been discharged be pending that seeks the foregoing.

               (iv) Consolidation Transactions. The Consolidation Transactions (other than with respect to
Contributing Member Interests which are excluded pursuant to Section 1.06, in each case such
Contributing Member Interests will not be contributed pursuant to this Agreement) shall have been
consummated not later than the Closing Date. This condition may not be waived by any party.

          (b) Conditions to Obligations of the Company and the OP. The obligations of the OP and the
Company to effect the actions contemplated by this Agreement are further subject to satisfaction of
the following conditions (any of which may be waived by the OP or the Company in whole or in part
in their sole and absolute discretion):

               (i) Representations and Warranties. Except as would not have a Material Adverse Effect (as
hereinafter defined), the representations and warranties of each Contributing Member contained in
this Agreement shall be true and correct as of the date of this Agreement and at the Closing Date
as if made again at that time (except to the extent that any representation or warranty speaks as
of an earlier date, in which case it must be true and correct only as of that earlier date).

6

 

               (ii) Performance by the Contributing Members. Each Contributing Member shall have performed
all obligations to be performed by it on or prior to the Closing Date including, without
limitation, the execution and delivery to the OP of the documents required to be delivered by each
Contributing Member pursuant to Section 2.04, and shall have not materially breached any covenants
required by this Agreement to be performed or complied with by it on or prior to the Closing Date.

               (iii) Consents and Approvals. All necessary consents and approvals of Governmental Authorities
or third parties (including lenders) for each Contributing Member to consummate the transactions
contemplated hereby shall have been obtained, except for those consents and approvals, the absence
of which would not have a Material Adverse Effect on the ability of such Contributing Member to
consummate the transactions contemplated by this Agreement.

               (iv) No Material Adverse Change. There shall have not occurred between the date hereof and the
Closing Date any change in any of the assets, business, financial condition, results of operation
or prospects of the Existing Entities that would have a Material Adverse Effect.

               (v) Bankruptcy. There shall not have been a bankruptcy or similar insolvency proceeding with
respect to an Existing Entity; provided that the Company and the OP shall have the right to elect
to proceed with the Consolidation Transaction with respect to all Existing Entities that are not
the subject of such proceeding.

               (vi) Approval. The Board of Directors of the Company shall have approved the IPO Price in its
sole discretion.

          (c) Conditions to Obligations of the Contributing Members. The obligation of each Contributing
Member to effect the actions contemplated by this Agreement are further subject to satisfaction of
the following conditions:

               (i) Representations and Warranties. Except as would not have a Material Adverse Effect, the
representations and warranties of the Company and the OP contained in this Agreement shall be true
and correct on the date hereof and at the Closing Date as if made again at that time (except to the
extent that any representation or warranty speaks as of an earlier date, in which case it must be
true and correct only as of that earlier date).

               (ii) Performance by the Company and the OP. Each of the Company and the OP shall have
performed in all material respects all agreements and covenants required by this Agreement to be
performed or complied with by it on or prior to the Closing Date.

               (iii) Registration Rights Agreement. The Company and the OP shall have entered into a
customary registration rights agreement with each Person holding OP Units after consummation of the
IPO and after distributions have been made by the Contributing Members to their direct or indirect
equityholders (the “Registration Rights Agreement”). This condition may not be waived by any
party.

7

 

     Section 2.02. Time and Place. Unless this Agreement shall have been terminated pursuant to
Section 2.06 hereof, and subject to satisfaction or waiver of the conditions in Section 2.01
hereof, the closing of the Consolidation Transactions contemplated by Section 1.01 and the other
transactions contemplated hereby shall occur on the Closing Date. The closing shall take place at
the offices of the Company, 4300 East Fifth Avenue, Columbus, Ohio 43219, or such other place as
determined by the Company in its sole and absolute discretion. The Consolidation Transactions
described in Section 1.01 hereof and all closing deliveries shall be deemed concurrent for all
purposes.

     Section 2.03. Delivery of OP Units. The issuance of the OP Units shall be evidenced by an
amendment to the Agreement of Limited Partnership of the OP (the “the OP Agreement”). On the
Closing Date (or as soon as reasonably practicable thereafter), the OP shall deliver or cause to be
delivered to each Contributing Member that receives OP Units as consideration for the Consolidation
Transactions an executed copy of such amendment.

     Section 2.04. Closing Deliveries. On the Closing Date, the parties shall make, execute,
acknowledge and deliver, or cause to be made, executed, acknowledged and delivered the legal
documents and other items necessary to carry out the intention of this Agreement, which shall
include, without limitation, the following:

          (a) a Registration Rights Agreement substantially in the form attached hereto as Exhibit B,

          (b) a Tax Protection Agreement substantially in the form attached hereto as Exhibit C,

          (c) a Lock-Up Agreement for a period of up to one year in the form requested by the
underwriters of the IPO and customary for initial public offerings,

          (d) Assignment and Assumption Agreements substantially in the form attached hereto as Exhibit
D,

          (e) for each Contributing Member receiving OP Units, the OP Agreement (including any
amendments thereto approved by the partners in accordance with the terms of such agreement)

          (f) all title insurance policies, leases, lease files, letters of credit, contracts, stock
certificates, original promissory notes held by an Existing Entity and other indicia of ownership
with respect to each Existing Entity that are in the Contributing Member’s possession or that can
be obtained through reasonable efforts in the Contributing Member’s capacity as indirect owner of
any Existing Entity shall be delivered or made available to the Company;

          (g) a certificate from each Contributing Member affirming that the representations and
warranties made by the Contributing Member pursuant to this Agreement remain true and correct in
all material respects as of the Closing Date;

          (h) if requested by the Company, certified copies of all organizational documents for the
Contributing Member, together with certified copies of all appropriate limited

8

 

liability company or limited partnership actions authorizing the execution, delivery and
performance by the Contributing Member of this Agreement, any related documents and the Transaction
Documents;

          (i) evidence reasonably satisfactory to the Company that the lender of any borrowed money
secured by a mortgage or deed of trust disclosed in the Title Reports, other than those lenders
whose loans are being repaid before or immediately after the Closing, has consented to the
transaction as required by any loan document, deed of trust, mortgage or other evidence of
indebtedness related to any Property; and

          (j) any other documents related to the consummation of the Consolidation Transactions, any
reallocation of Contributing Member Interests as described in Section 1.01(b) above or any of the
other transactions contemplated by this Agreement as may be deemed by the Company in its sole and
absolute discretion to be necessary or desirable to effectuate the Consolidation Transactions, the
IPO, and the other transactions described herein.

Such agreements and instruments together with this Agreement are collectively referred to in this
Agreement as the “Transaction Documents.”

     Section 2.05. Closing Costs. The Company and the OP shall pay any documentary transfer Taxes,
escrow charges, title charges and recording Taxes or fees incurred in connection with the
transactions contemplated hereby.

     Section 2.06. Term of the Agreement. This Agreement shall terminate automatically if the
Contribution Transactions shall not have been consummated on or prior to June 30, 2011 (such date
is hereinafter referred to as the “Outside Date”).

     Section 2.07. Effect of Termination. In the event of the termination of this Agreement for any
reason, all obligations on the part of the OP, the Company and the Contributing Members under this
Agreement shall terminate, except that the obligations set forth in this Section 2.07 shall
survive; it being understood and agreed, however, that if this Agreement is terminated because one
or more of the conditions to a non-breaching party’s obligations under this Agreement is not
satisfied by the Outside Date as a result of the other party’s material breach of a covenant,
representation, warranty or other obligation under this Agreement or any other Transaction
Documents, the non-breaching party’s right to pursue all legal remedies with respect to such breach
will survive such termination unimpaired. If this Agreement shall terminate for any reason prior
to completion of the Consolidation Transactions, the Existing Entities shall bear all transaction
costs and expenses related thereto proportionately.

     Section 2.08. Tax Withholding. The OP shall be entitled to deduct and withhold, from the
Consideration payable pursuant to this Agreement to any Contributing Member, such amounts as the OP
is required to deduct and withhold with respect to the making of such payment under the Code or any
provision of federal, state, local or foreign Tax law. To the extent that amounts are so withheld
by the OP, such withheld amounts shall be treated for all purposes of this Agreement as having been
paid to the Contributing Member in respect of which such deduction and withholding was made by the
OP.

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ARTICLE III

REPRESENTATIONS, WARRANTIES AND

INDEMNITIES OF THE COMPANY AND THE OP

     The Company and the OP hereby represent and warrant to and covenant with each Contributing
Member as follows:

     Section 3.01. Organization; Authority.

          (a) The Company is a corporation duly organized, validly existing and in good standing under
the Laws of the State of Maryland. The Company has all requisite power and authority to enter this
Agreement and the other Transaction Documents and to carry out the transactions contemplated hereby
and thereby, and to own, lease or operate its property and to carry on its business as presently
conducted and, to the extent required under applicable Law, is qualified to do business and is in
good standing in each jurisdiction in which the nature of its business or the character of its
property make such qualification necessary, other than in such jurisdictions where the failure to
be so qualified would not have a Material Adverse Effect.

          (b) Each Subsidiary of the Company (each a “Company Subsidiary”) has been duly organized or
formed and is validly existing under the laws of its jurisdiction of organization or formation, as
applicable, has all power and authority to own, lease or operate its property and to carry on its
business as presently conducted and, to the extent required under applicable Law, is qualified to
do business and is in good standing in each jurisdiction in which the nature of its business or the
character of its property make such qualification necessary, except where the failure to be so
qualified would not have a Material Adverse Effect.

          (c) The OP is a limited partnership duly organized, validly existing and in good standing
under the Laws of the State of Delaware. The OP has all requisite power and authority to enter this
Agreement and the other Transaction Documents and to carry out the transactions contemplated hereby
and thereby, and to own, lease or operate its property and to carry on its business as presently
conducted and, to the extent required under applicable Law, is qualified to do business and is in
good standing in each jurisdiction in which the nature of its business or the character of its
property make such qualification necessary, other than in such jurisdictions where the failure to
be so qualified would not have a Material Adverse Effect.

     Section 3.02. Due Authorization. The execution, delivery and performance of this Agreement and
the other Transaction Documents by the Company and the OP have been duly and validly authorized by
all necessary action of the Company and the OP. This Agreement, the other Transaction Documents and
each agreement, document and instrument executed and delivered by or on behalf of the Company or
the OP pursuant to this Agreement or the other Transaction Documents constitutes, or when executed
and delivered will constitute, the legal, valid and binding obligation of the Company or the OP, as
the case may be, each enforceable against the Company or the OP, as the case may be, in accordance
with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar Laws
relating to creditors’ rights and general principles of equity.

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     Section 3.03. Consents and Approvals. Except in connection with the IPO and the consummation
of the Consolidation Transactions, no consent, waiver, approval or authorization of, or filing
with, any Person or Governmental Authority or under any applicable Laws is required to be obtained
by the Company or the OP in connection with the execution, delivery and performance of this
Agreement and the transactions contemplated hereby except for those consents, waivers, approvals,
authorizations or filings, the failure of which to obtain or to file would not have a Material
Adverse Effect.

     Section 3.04. No Violation. None of the execution, delivery or performance of this Agreement,
the other Transaction Documents, any agreement contemplated hereby between the parties to this
Agreement and the transactions contemplated hereby between the parties to this Agreement does or
will, with or without the giving of notice, lapse of time, or both, violate, conflict with, result
in a breach of, or constitute a default under (a) the organizational documents of the Company or
the OP, (b) any term or provision of any judgment, order, writ, injunction. or decree binding on
the Company or the OP, or (c) any other agreement to which the Company or the OP is a party
thereto, except, in the case of clause (b) and (c) any such breaches or defaults that would not
have a Material Adverse Effect.

     Section 3.05. Validity of OP Units. The OP Units to be issued to each Contributing Member, as
applicable, pursuant to this Agreement will have been duly authorized by the OP and, when issued
against the consideration therefor, will be validly issued by the OP and free and clear of all
Liens created by the Company or the OP (other than Liens created by the the OP Agreement or the
Articles of Amendment and Restatement of the Company (the “Charter”)).

     Section 3.06. Litigation. There is no action, suit or proceeding pending or, to the Company’s
or the OP’s knowledge, threatened against the Company or the OP or any Company Subsidiaries which,
if adversely determined, would have a Material Adverse Effect or which challenges or impairs the
ability of the Company or the OP to execute or deliver, or perform its obligations under, this
Agreement and the documents executed by it pursuant to this Agreement or to consummate the
transactions contemplated hereby or thereby.

     Section 3.07. Limited Activities. Except for activities in connection with the IPO or the
Consolidation Transactions, none of the Company, the Company Subsidiaries and the OP has engaged in
any material business or incurred any material obligations.

     Section 3.08. REIT Status. The Company will seek to qualify for federal income tax purposes as
a REIT under the Code beginning with the Company’s taxable year ending December 31, 2011, and the
Company is organized and operates in a manner that will enable it to qualify as a REIT under the
Code.

     Section 3.09. Tax Status of the OP The OP has at all times during its existence been properly
treated as a partnership and not as an association or publicly traded partnership taxable as a
corporation for federal income Tax purposes, and, except as otherwise set forth in the provision at
the end of this sentence, each Subsidiary of the OP has at all times during its existence been
properly treated as either a “disregarded entity” or a partnership and not as a publicly traded
partnership taxable as a corporation for federal income Tax purposes or as an association taxable
as a corporation; provided, however, that notwithstanding the foregoing, each

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subsidiary listed on Exhibit E is taxable as a corporation and the Company intends to make a
“taxable REIT subsidiary” election with respect to each such entity effective as of the Closing.

     Section 3.10. Continuing Efforts. Subject to the terms and conditions herein provided, the
Company and the OP covenant and agree to use their reasonable commercial efforts to take, or cause
to be taken, all actions and do, or cause to be done, all things necessary, proper and/or
appropriate to consummate and make effective the transactions contemplated by this Agreement.

     Section 3.11. No Brokers or Finders. The Company and the OP have not entered into any
agreement and are not otherwise liable or responsible to pay any brokers’ or finders’ fees or
expenses to any Person or similar agent or firm with respect to this Agreement or the purchase and
issuance of any Offered OP Units contemplated hereby.

     Section 3.12. No Other Representations or Warranties. Other than the representations and
warranties expressly set forth in this Article III, the Company and the OP shall not be deemed to
have made any other representation or warranty in connection with this Agreement or the
transactions contemplated hereby.

     Section 3.13. Indemnification.

          (a) From and after the Closing Date, the Company and the OP shall indemnify and hold harmless
each Contributing Member and his, her or its Affiliates (each of which is a “Contributing Member
Indemnified Party”) from and against any and all charges, complaints, claims, actions, causes of
action, losses, damages, liabilities and expenses of any nature whatsoever, including without
limitation, amounts paid in settlement, reasonable attorneys’ fees, costs of investigation, costs
of investigative judicial or administrative proceedings or appeals therefrom and costs of
attachment or similar bonds and costs of collection (collectively, “Losses”) arising out of,
relating to or in connection with (i) any breach of a representation, warranty or covenant of the
Company or the OP contained in this Agreement or in any schedule, exhibit, certificate or affidavit
or any other document delivered by the Company or the OP pursuant to this Agreement, and (ii) any
Existing Entity’s operation of its business or the ownership or operation of its assets after the
Closing Date; provided, however, that the Company and the OP shall not have any obligation under
this Section to indemnify any Contributing Member Indemnified Party against any Losses arising out
of, relating to or in connection with (1) any diminution in value of the shares of Common Stock or
OP Units, (2) any Contributing Member’s breach of a representation, warranty or covenant contained
in this Agreement, in any Contributing Members’ or Existing Entities’ organizational documents or
in any schedule, exhibit, certificate or affidavit or any other document delivered by the
Contributing Members pursuant to this Agreement (as if each such representation, warranty and
covenant were in full force and effect and without regard to any qualification therein as to
“material,” “materiality,” “Material Adverse Effect” or words of similar import or effect), (3) any
Contributing Member’s gross negligence, willful misconduct or fraud, or (4) any Existing Entity’s
operation of its business or the ownership or operation of its assets on or before the Closing
Date.

          (b) At the time when any Contributing Member Indemnified Party learns of any potential claim
under this Section 3.11 (a “Claim”) against the Company or the OP, it shall promptly give written
notice (a “Claim Notice”) to the Company or the OP; provided, that

12

 

failure to do so shall not prevent recovery under this Agreement, except to the extent that
the Company or the OP shall have been materially prejudiced by such failure. Each Claim Notice
shall describe in reasonable detail the facts known to such Contributing Member Indemnified Party
giving rise to such Claim, and the amount or good faith estimate of the amount of Losses arising
therefrom. Unless prohibited by Law, such Contributing Member Indemnified Party shall deliver to
the Company or the OP, promptly after such Contributing Member Indemnified Party’s receipt thereof,
copies of all notices and documents (including court papers) received by such Contributing Member
Indemnified Party relating to a Third Party Claim (as hereinafter defined). Any Contributing Member
Indemnified Party may at its option demand indemnity under this Section 3.11 as soon as a Claim has
been threatened by a third party, regardless of whether an actual Loss has been suffered, so long
as such Contributing Member Indemnified Party shall in good faith determine that such claim is not
frivolous and that such Contributing Member Indemnified Party may be liable for, or otherwise
incur, a Loss as a result thereof, with payments under this Section 3.11(b) being required to be
made upon receipt by the Company and the OP of proof of the Contributing Member Indemnified Party’s
obligation to pay such Loss and an undertaking by such Contributing Member Indemnified Party to
repay any such amount to the Company or the OP if, when, and to the extent it is determined that
such Contributing Member Indemnified Party was not entitled to such indemnity payments under this
Section 3.11(b).

          (c) The Company and the OP shall be entitled, at their own expense, to assume and control the
defense of any Claims based on claims asserted by third parties (“Third Party Claims”), through
counsel chosen by the Company or the OP and reasonably acceptable to such Contributing Member
Indemnified Party (or any Person authorized by such Contributing Member Indemnified Party to act on
its behalf), if it gives written notice of its intention to do so to such Contributing Member
Indemnified Party within thirty (30) days after the receipt of the applicable Claim Notice;
provided, however, that such Contributing Member Indemnified Party may at all times participate in
such defense at its expense. Without limiting the foregoing, if the Company or the OP exercises the
right to undertake any such defense against a Third Party Claim, such Contributing Member
Indemnified Party shall cooperate with the Company or the OP in such defense and make available to
the Company or the OP (unless prohibited by Law), at the Company or the OP’s expense, all
witnesses, pertinent records, materials and information in such Contributing Member Indemnified
Party’s possession or under such Contributing Member Indemnified Party’s control relating thereto
as is reasonably required by the Company or the OP. No compromise or settlement of such Third Party
Claim may be effected by either such Contributing Member Indemnified Party, on the one hand, or the
Company or the OP, on the other hand, without the other’s consent (which shall not be unreasonably
withheld or delayed) unless (i) there is no finding or admission of any violation of Law and no
effect on any other claims that may be made against such other party and (ii) each Contributing
Member Indemnified Party that is party to such claim is released from all liability with respect to
such claim.

          (d) All representations, warranties and covenants of the Company and the OP contained in this
Agreement shall survive after the effective time of the transactions contemplated in Transaction
Documents until the first anniversary of the Closing Date; provided, that the representations and
warranties set forth in Sections 3.01 (Organization; Authority), 3.02 (Due Authorization) and 3.05
(Validity of OP Units) and the covenants to be performed after the Closing shall survive until
twelve (12) months after the expiration of any lockup with respect to

13

 

the OP Units (the “Expiration Date”). If written notice of a claim in accordance with the
provisions of this Section 3.11 has been given prior to the Expiration Date, then the relevant
representation, warranty and covenant shall survive, but only with respect to such specific claim,
until such claim has been finally resolved. Any claim for indemnification not so asserted in
writing by the Expiration Date may not thereafter be asserted and shall forever be waived. In
furtherance of the foregoing, each Contributing Member hereby waives, as of the Closing Date, to
the fullest extent permitted under applicable Law, any and all rights, claims and causes of action
(other than claims of, or causes of action arising from, fraud) it may have against the other
parties hereto arising under or based upon any federal, state, local or foreign Law, other than the
right to seek indemnity pursuant to this Section 3.11. The foregoing sentence shall not limit a
Contributing Member’s right to specific performance or injunctive relief in connection with the
breach by the Company or the OP of its covenants in this Agreement.

          (e) To the fullest extent permitted by law, all indemnity payments made hereunder shall be
treated as adjustments to the Consideration paid hereunder for federal income tax purposes.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

OF THE CONTRIBUTING MEMBERS

     Each Contributing Member, severally, hereby represents, warrants to the Company and the OP and
agrees with the Company and the OP that as of the date hereof and as of the Closing Date:

     Section 4.01. Organization; Authority. As of the Closing Date, each Contributing Member and
Existing Entity shall have been duly organized, validly existing and in good standing under the
Laws of its jurisdiction of organization. Each Contributing Member has all requisite power and
authority to own, lease or operate its property and to carry on its business as presently conducted
and, to the extent required under applicable Law, is qualified to do business and is in good
standing in each jurisdiction in which the nature of its business or character of its property make
such qualification necessary, other than in such jurisdictions where the failure to be so qualified
would not have a Material Adverse Effect. Such Contributing Member has all requisite power and
authority to enter this Agreement and the other Transaction Documents and to carry out the
transactions contemplated hereby and thereby.

     Section 4.02. Due Authorization and Enforceability. If such Contributing Member is a Person
other than an individual, the execution, delivery and performance of this Agreement and the other
Transaction Documents by such Contributing Member has been duly and validly authorized by all
necessary action required of such Contributing Member. This Agreement, the other Transaction
Documents and each agreement, document and instrument executed and delivered by or on behalf of
such Contributing Member pursuant to this Agreement or the other Transaction Documents constitutes,
or when executed and delivered will constitute, the legal, valid and binding obligation of such
Contributing Member, each enforceable against such Contributing Member in accordance with its
terms, subject to applicable bankruptcy, insolvency, moratorium or other similar Laws relating to
creditors’ rights and general principles of equity.

14

 

     Section 4.03. Ownership of Interest. Such Contributing Member is the sole record owner of the
Contributing Member Interests owned by it as set forth on Exhibit A and has good and valid title to
such Contributing Member Interests and has the power and authority to transfer, sell, assign and
convey to the OP such Contributing Member Interests, free and clear of any Liens. Upon delivery of
the Consideration for such Contributing Member Interests as provided herein, the OP will acquire
good and valid title thereto, free and clear of any Liens. Exhibit A sets forth the entire
outstanding equity and distribution, profits or similar interest in the Existing Entities. The
Existing Entities have no Subsidiaries. The Contributing Member Interests represent all of the
issued and outstanding interests in the Existing Entities owned by the Contributing Members.
Except as provided for or contemplated by this Agreement or the other applicable Transaction
Documents, there are no rights, subscriptions, warrants, options, conversion rights, preemptive
rights, agreements, instruments or understandings of any kind outstanding (i) relating to the
Contributing Member Interests owned by such Contributing Member or (ii) to purchase, transfer or to
otherwise acquire, or to in any way encumber, any of the interests which comprise such Contributing
Member Interests or any securities or obligations of any kind convertible into any of the interests
which comprise such Contributing Member Interests, or other equity interests or profit
participation of any kind in the Existing Entities. All of the issued and outstanding Contributing
Member Interests have been duly authorized and are validly issued, fully paid and not issued in
violation of any preemptive rights.

     Section 4.04. Consents and Approvals. Except as shall have been satisfied on or prior to the
Closing Date, no consent, waiver, approval, authorization, order, license, certificate or permit
of, or filing or registration with, any Person or Governmental Authority or under any applicable
Laws is required to be obtained by such Contributing Member or the Existing Entities in connection
with the execution, delivery and performance of this Agreement and the transactions contemplated
hereby, except for those consents, waivers, approvals, authorizations or filings, the failure of
which to obtain or to file would not have a Material Adverse Effect.

     Section 4.05. No Violation. None of the execution, delivery or performance of this Agreement,
the other Transaction Documents, any agreement contemplated hereby or thereby between the parties
to this Agreement and the transactions contemplated hereby or thereby between the parties to this
Agreement does or will, with or without the giving of notice, lapse of time, or both, violate,
conflict with, result in a breach of, or constitute a default under or give to others any right of
termination, acceleration, cancellation or other right under, (A) the organizational documents, if
any, of such Contributing Member, (B) any agreement, document or instrument to which such
Contributing Member or Existing Entity is a party or by which such Contributing Member, Existing
Entity or Contributing Member Interests is bound or (C) any term or provision of any judgment,
order, writ, injunction, or decree binding on such Contributing Member or Existing Entity (or their
assets or properties), except, in the case of clause (B) and (C) any such breaches or defaults that
would not have a Material Adverse Effect.

     Section 4.06. Non-Foreign Person. Each Contributing Member is a United States person (as
defined in Section 7701(a)(30) of the Code) and is not a foreign person pursuant to Section
1445(b)(2) of the Code and is, therefore, not subject to the provisions of the Code relating to the
withholding of sales or exchange proceeds to foreign persons.

15

 

     Section 4.07. Absence of Undisclosed Liabilities. Except as disclosed in the Registration
Statement, no Existing Entity has incurred any indebtedness related to any of the Properties owned
by such Existing Entity except in each instance for trade payables which are no more than sixty
(60) days past due and other customary and ordinary expenses in the ordinary course of business.
The representations and warranties of the Contributing Members and all disclosure schedules and
certificates delivered by or on behalf of the Contributing Members pursuant to this Agreement fully
and fairly state in all material respects the matters with which they purport to deal and do not
misstate a material fact or omit to state a material fact necessary to make the statements therein
not misleading. As of its effective date and as of the Closing Date, the Registration Statement
will not include any untrue statement of a material fact regarding the Existing Entities and the
Properties or omit to state any material fact required to be stated therein or necessary to make
the statements therein with respect to the Existing Entities and the Properties not misleading.

     Section 4.08. Solvency. Such Contributing Member has been and will be solvent at all times
prior to and for the ninety (90) day period following the transfer of its Contributing Member
Interests to the OP or the Company, as applicable.

     Section 4.09. Litigation. There is no action, suit or proceeding pending or, to such
Contributing Member’s knowledge, threatened against such Contributing Member, the Existing Entities
or any of their Properties or other assets affecting all or any portion of the Contributing Member
Interests or any of their Properties or their other assets or such Contributing Member’s ability to
consummate the transactions contemplated hereby which, if adversely determined, would reasonably be
expected to adversely affect the Contributing Member’s ability to so consummate the transactions
contemplated hereby. There are no outstanding orders, writs, injunctions or decrees of any
Governmental Authority against or affecting such Contributing Member, Existing Entity or any
Property, or all or any portion of the Contributing Member Interests, which in any such case would
impair the Contributing Member’s ability to enter into and perform all of its obligations under
this Agreement or have a Material Adverse Effect.

     Section 4.10. Investment. Such Contributing Member acknowledges that the offering and issuance
of the OP Units to be acquired pursuant to this Agreement are intended to be exempt from
registration under the Securities Act and that the Company’s and the OP’s reliance on such
exemptions is predicated in part on the accuracy and completeness of the representations and
warranties of the Contributing Members contained herein. In furtherance thereof, such Contributing
Member represents and warrants to the Company and the OP as follows:

          (a) Each Contributing Member is an “accredited investor” (as such term is defined in Rule
501(a) of Regulation D promulgated under the Securities Act) (each, an “Accredited Investor”).
Such Contributing Member will, upon request, execute and/or deliver any additional documents deemed
by the Company to be necessary or desirable to confirm such Contributing Member’s Accredited
Investor status.

          (b) Such Contributing Member is acquiring the OP Units solely for his, her or its own account
for the purpose of investment and not as a nominee or agent for any other Person and not with a
view to, or for offer or sale in connection with, any distribution of any thereof in violation of
the securities Laws.

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          (c) Such Contributing Member is knowledgeable, sophisticated and experienced in business and
financial matters and such Contributing Member fully understands the limitations on transfer
imposed by the federal securities Laws. Such Contributing Member has received and carefully
reviewed this Agreement as well as all information and documents about or pertaining to the Company
and the OP and the business and prospects of the Company and the OP and the issuance of the OP
Units, as such Contributing Member deems necessary or desirable, and has been given the opportunity
to obtain, and has obtained, any additional information or documents and to ask questions and
receive answers about such information and documents, the Company and the OP and the business and
prospects of the Company and the OP which such Contributing Member deems necessary or desirable to
evaluate the merits and risks related to its investment in the OP Units and such Contributing
Member understands and has taken cognizance of all risk factor related to the purchase of the OP
Units. Such Contributing Member is relying upon its own independent analysis and assessment
(including with respect to Taxes), and the advice of such Contributing Member’s advisors (including
legal and Tax advisors), and not upon that of the Company or the OP or any of the Company’s or the
OP’s Affiliates, for purposes of evaluating, entering into, and consummating the transactions
contemplated hereby.

          (d) Such Contributing Member acknowledges that the OP Units have not been registered under the
Securities Act and, therefore, may not be sold unless registered under the Securities Act or an
exemption from registration is available.

          (e) Such Contributing Member represents and warrants that such Contributing Member has such
knowledge and experience in financial and business matters such that such Contributing Member is
capable of evaluating the merits and risks of making a subscription for the Offered OP Units, and
that such Contributing Member has evaluated the risks of investing in the Offered OP Units and has
determined that they are a suitable investment for such Contributing Member. Such Contributing
Member represents and warrants that such Contributing Member understands that an investment in the
Offered OP Units is a speculative investment that involves very significant risks and Tax
uncertainties and that such Contributing Member is prepared to bear the economic, Tax and other
risks of an investment in the Offered OP Units for an indefinite period of time, and is able to
withstand a total loss of such Contributing Member’s investment in the Offered OP Units.

          (f) Each Contributing Member acknowledges that it has been advised that (i) the OP Units will
not redeemable or exchangeable for shares of Common Stock for one year after the Closing Date,
(ii) the OP Units issued pursuant to this Agreement, and any Common Stock issued in exchange for,
or in respect of a redemption of, the OP Units, are “restricted securities” under applicable
federal securities laws and may be disposed of only pursuant to an effective registration statement
or an exemption from registration under applicable federal securities laws and such Contributing
Member understands that the OP has no obligation or intention to register any OP Units or
underlying Common Stock, except to the extent set forth in the Registration Rights Agreement;
accordingly, such Contributing Member may have to bear indefinitely the economic risks of an
investment in such OP Units, (iii) a restrictive legend in the form hereafter set forth shall be
placed on each certificate (each an “OP Unit Certificate”) representing the OP Units (and any
certificates representing Common Stock for which OP Units may, in certain circumstances, be
exchanged or redeemed), and (iv) a notation shall be made in

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the appropriate records of the OP indicating that the OP Units (and any Common Stock for which
OP Units may, in certain circumstances, be exchanged or redeemed) and are subject to restrictions
on transfer.

          (g) Each OP Unit Certificate, if any, issued pursuant to this Agreement (and any certificates
representing Common Stock for which OP Units may, in certain circumstances, be exchanged or
redeemed), unless registered in accordance with applicable U.S. securities laws, shall bear the
following legend:

          THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION, UNLESS, EXCEPT IN LIMITED
CIRCUMSTANCES, THE TRANSFEROR DELIVERS TO THE COMPANY AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY, TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER OR OTHER DISPOSITION MAY BE EFFECTED
WITHOUT REGISTRATION UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS.

          (h) In addition to the foregoing legend, each certificate (if any) representing any Common
Stock for which OP Units may, in certain circumstances, be exchanged or redeemed shall also bear a
legend which generally provides the following:

          (i) THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON BENEFICIAL AND
CONSTRUCTIVE OWNERSHIP AND TRANSFER FOR THE PURPOSE, AMONG OTHERS, OF THE COMPANY’S MAINTENANCE OF
ITS STATUS AS A REAL ESTATE INVESTMENT TRUST UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE “CODE”). SUBJECT TO CERTAIN FURTHER RESTRICTIONS AND EXCEPT AS EXPRESSLY PROVIDED IN THE
COMPANY’S CHARTER, (I) NO PERSON MAY BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF THE COMPANY’S
COMMON STOCK IN EXCESS OF 9.8% (IN VALUE OR NUMBER OF SHARES) OF THE OUTSTANDING SHARES OF COMMON
STOCK OF THE COMPANY UNLESS SUCH PERSON IS AN EXCEPTED HOLDER (IN WHICH CASE THE EXCEPTED HOLDER
LIMIT SHALL BE APPLICABLE); (II) NO PERSON MAY BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF CAPITAL
STOCK OF THE COMPANY IN EXCESS OF 9.8% OF THE VALUE OF THE TOTAL OUTSTANDING SHARES OF CAPITAL
STOCK OF THE COMPANY, UNLESS SUCH PERSON IS AN EXCEPTED HOLDER (IN WHICH CASE THE EXCEPTED HOLDER
LIMIT SHALL BE APPLICABLE); (III) NO PERSON MAY BENEFICIALLY OR CONSTRUCTIVELY OWN CAPITAL STOCK
THAT WOULD RESULT IN THE COMPANY BEING “CLOSELY HELD” UNDER SECTION 856(H) OF THE CODE OR OTHERWISE
CAUSE THE COMPANY TO FAIL TO QUALIFY AS A REIT; AND (IV) NO PERSON MAY TRANSFER SHARES OF CAPITAL
STOCK IF SUCH TRANSFER WOULD RESULT IN THE CAPITAL STOCK OF THE COMPANY BEING OWNED BY FEWER THAN
100 PERSONS. ANY PERSON WHO BENEFICIALLY OR CONSTRUCTIVELY OWNS OR ATTEMPTS TO BENEFICIALLY OR
CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK WHICH CAUSES OR WILL CAUSE A PERSON TO BENEFICIALLY

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OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK IN EXCESS OR IN VIOLATION OF THE ABOVE
LIMITATIONS MUST IMMEDIATELY NOTIFY THE COMPANY. IF ANY OF THE RESTRICTIONS ON TRANSFER OR
OWNERSHIP SET FORTH IN (I) THROUGH (III) ABOVE ARE VIOLATED, THE SHARES OF CAPITAL STOCK
REPRESENTED HEREBY WILL BE AUTOMATICALLY TRANSFERRED TO A TRUSTEE OF A TRUST FOR THE BENEFIT OF ONE
OR MORE CHARITABLE BENEFICIARIES. IN ADDITION, THE COMPANY MAY TAKE OTHER ACTIONS, INCLUDING
REDEEMING SHARES UPON THE TERMS AND CONDITIONS SPECIFIED BY THE BOARD OF DIRECTORS IN ITS SOLE AND
ABSOLUTE DISCRETION IF THE BOARD OF DIRECTORS DETERMINES THAT OWNERSHIP OR A TRANSFER OR OTHER
EVENT MAY VIOLATE THE RESTRICTIONS DESCRIBED ABOVE. FURTHERMORE, UPON THE OCCURRENCE OF CERTAIN
EVENTS, ATTEMPTED TRANSFERS IN VIOLATION OF THE RESTRICTIONS DESCRIBED ABOVE MAY BE VOID AB INITIO.
ALL CAPITALIZED TERMS IN THIS LEGEND HAVE THE MEANINGS DEFINED IN THE CHARTER OF THE COMPANY, AS
THE SAME MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH, INCLUDING THE RESTRICTIONS ON TRANSFER
AND OWNERSHIP, WILL BE FURNISHED TO EACH HOLDER OF CAPITAL STOCK OF THE COMPANY ON REQUEST AND
WITHOUT CHARGE. REQUESTS FOR SUCH A COPY MAY BE DIRECTED TO THE SECRETARY OF THE COMPANY AT ITS
PRINCIPAL OFFICE.

     Section 4.11. Continuing Efforts. Subject to the terms and conditions herein provided, such
Contributing Member covenants and agrees to use its reasonable commercial efforts to take, or cause
to be taken, all actions and do, or cause to be done, all things necessary, proper and/or
appropriate to consummate and make effective the transactions contemplated by this Agreement,
including, without limitation, obtaining all consents, waivers, approvals and authorizations of all
Persons and Governmental Authorities required to effect the transactions contemplated by this
Agreement, including the Consolidation Transactions.

     Section 4.12. No Brokers or Finders. Neither the Contributing Member nor, to its knowledge,
any of its officers, directors managers, trustees or employees, to the extent applicable, has
entered into any agreement and is not otherwise liable or responsible to pay any brokers’ or
finders’ fees or expenses to any Person, agent or firm with respect to this Agreement or the
purchase and issuance of any Offered OP Units contemplated hereby, except for any such Person,
agent or firm, the fees and expenses for which such Contributing Member shall be solely responsible
for and pay.

     Section 4.13. No Claims. Each Contributing Member represents and warrants that it does not
have any claims against any Existing Entity or any of their respective members, managers, managing
members, officers, directors or agents for breach of fiduciary obligations, breach of the terms of
applicable organizational documents, or fraud, self-dealing or any other similar cause of action.

     Section 4.14. FINRA Affiliations. Neither such Contributing Member nor any affiliate of such
Contributing Member is a member, affiliate of a member or person associated with a member of FINRA.
Neither such Contributing Member nor any of its affiliates owns any stock or other securities of a
FINRA member not purchased in the open market or have made any

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outstanding subordinated loans to a FINRA member. A company or natural person is presumed to
control a member of FINRA and is therefore presumed to constitute an affiliate of such member if
the company or person is the beneficial owner of 10% or more of the outstanding securities of a
member which is a corporation. Additionally, a natural person is presumed to control a member of
FINRA and is therefore presumed to constitute an affiliate of such a member if such person has the
power to direct or cause the direction of the management or policies of such member.

     Section 4.15. Title; Compliance with Laws. Each Existing Entity owns (1) fee title to the Property
or Properties set forth opposite such Existing Entity and identified as owned on Exhibit A hereto
and (2) the leasehold estate in the Property or Properties set forth opposite such Existing Entity
and identified as leased on Exhibit A hereto, in each case free and clear of all Liens (A) other
than as set forth in the Title Reports and (B) except for such Liens which otherwise would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Except
as set forth in the Registration Statement, the Existing Entities have conducted their businesses,
and the Properties have been maintained, in compliance with all applicable laws, ordinances, rules,
regulations, codes, orders and statutes (including, without limitation, those currently relating to
fire and safety, conservation, parking, Americans with Disabilities Act, zoning and building laws)
whether federal, state or local, foreign, statutory or common, except where the failure to so
comply would not reasonably be expected to have a Material Adverse Effect.

     Section 4.16. Taxes. Each Contributing Member makes the following representations with
respect to each Existing Entity:

          (a) (i) All Tax Returns required to be filed by, on behalf of, or with respect to, the
Existing Entities have been duly and timely filed with the appropriate taxing authorities in all
jurisdictions in which such Tax Returns are required to be filed (after giving effect to any valid
extensions of time in which to make such filings) other than in such jurisdictions where the
failure to so file would not have a Material Adverse Effect, and all such Tax Returns were true,
complete and correct in all material respects; (B) all material Taxes due and payable by, on behalf
of, or with respect to the Existing Entities, either directly or otherwise, have been fully and
timely paid, except (1) to the extent adequately reserved for in accordance with generally accepted
accounting principles consistently applied on the balance sheet of such Existing Entity (or other
applicable entity), and adequate reserves or accruals for Taxes have been provided in the balance
sheet of such Existing Entity (or other applicable entity) with respect to any period through the
date hereof for which Tax Returns have not yet been filed or for which Taxes are not yet due and
owing and (2) with respect to real estate Taxes and assessments for the Properties that are paid
directly by the tenants under the Leases and pursuant to such Leases, as to which the Contributing
Member has no knowledge of any tenant’s material failure to pay such Taxes and Contributing Member
covenants to use commercially reasonable efforts to enforce the provisions of such Leases with
respect to the payment of such Taxes; (C) no agreement, waiver or other document or arrangement
extending or having the effect of extending the period for assessment or collection of Taxes
(including, but not limited to, any applicable statute of limitations) has been executed or filed
with any taxing authority by or on behalf of the Existing Entities other than such agreement,
waiver or other document or arrangement which would not have a Material Adverse Effect, and (D)
each Existing Entity is, and at all times during its

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existence has been, a limited liability company or limited partnership that is taxable as a
partnership or treated as “disregarded entity” for federal income Tax purposes (rather than being
taxable as an association or a publicly-traded partnership taxable as a corporation ).

          (b) Each Existing Entity has complied in all material respects with all applicable laws, rules
and regulations relating to the payment and withholding of Taxes and has duly and timely withheld
from employees’ salaries, wages and other compensation and has paid over to the appropriate taxing
authorities all amounts required to be so withheld and paid over for all periods under all
applicable laws.

          (c) Each Existing Entity has made available to the Company, its agents and underwriters
complete copies of (i) any audit report, revenue agent report or other written assertions issued
within the last three years relating to any material Taxes due from or with respect to such
Existing Entity with respect to its income, assets or operations, (ii) all Tax Returns filed by or
on behalf of the Existing Entities for all periods for which the applicable statute of limitations
has yet to lapse and (iii) all Tax rulings, requests for rulings, or closing agreements
specifically relating to the Existing Entities.

          (d) No claim has been made by a taxing authority in a jurisdiction where an Existing Entity
does not file an income or franchise Tax Return that such Existing Entity is or may be subject to
taxation by, or required to file an income or franchise Tax Return in, that jurisdiction.

          (e) (i) There are no deficiencies asserted or assessments made as a result of any examinations
by any taxing authority of the Tax Returns of or covering or including any Existing Entity, or such
deficiencies or assessments have been fully paid, and there are no other audits or investigations
by any taxing authority in progress, nor has such Existing Entity received any notice from any
taxing authority that it intends to conduct such an audit or investigation; (ii) no requests for a
ruling or a determination letter are pending with any taxing authority by, or with respect to, such
Existing Entity; and (iii) no issue has been raised in writing by any taxing authority in any
current or prior examination which, by application of the same or similar principles, could
reasonably be expected to result in a proposed deficiency against or with respect to such Existing
Entity for any subsequent taxable period that could be material.

          (f) Neither any Existing Entity nor any other Person on behalf of such Existing Entity has
executed or entered into a closing agreement pursuant to Section 7121 of the Code or any
predecessor provision thereof or any similar provision of state, local or foreign law with respect
to such Existing Entity. No material amount will be required to be included as an item of income
in, or excluded as an item of deduction from, taxable income for any taxable period (or portion
thereof) ending after the Closing Date with respect to any Existing Entity as a result of any: (i)
change in method of accounting for a taxable period ending on or prior to the Closing Date; (ii)
“closing agreement” as described in Code Section 7121 (or any corresponding or similar provision of
applicable state, local or foreign Law) executed on or prior to the Closing Date; (iii) election
with respect to income from the discharge of indebtedness under Code Section 108(i); (iv) prepaid
amount received on or prior to the Closing Date; (v) sale reported on the installment method that
occurred prior to the Closing Date; or (vi) any similar election, action or agreement that would
have the effect of deferring any liability for Taxes with respect to any

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Existing Entity from any period ending on or before the Closing Date to any period ending
after the Closing Date.

          (g) There are no Liens as a result of any unpaid Taxes (other than statutory liens for Taxes
not yet delinquent) upon any of the assets of any Existing Entity other than Liens that would not
have a Material Adverse Effect..

          (h) No Existing Entity has engaged in a “reportable transaction” within the meaning of
Treasury Regulations Section 1.6011-4.

     Section 4.17. Insurance. Each Existing Entity has in place customary liability, casualty and
other insurance coverage with respect to each Property, except to the extent the failure to have in
place such insurance coverage would not, individually or in the aggregate, have a Material Adverse
Effect. .

     Section 4.18. Environmental Matters. Except for matters which otherwise would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, to the
Contributing Member’s actual knowledge: (a) the Existing Entities have not failed to comply with
any Environmental Laws, and (b) the Existing Entities have not received any written notice from any
Governmental Authority (as defined herein) alleging that any Property is not in compliance with
applicable Environmental Laws (which non-compliance, if any, has not been or is not being
remedied).

     Section 4.19. Employment Matters.

          (a) Employees. Except for Schottenstein Property Group LLC, none of the other Existing
Entities have any employees.

          (b) Employee Benefits. Except for a 401(k) plan for employees of Schottenstein Property Group
LLC, for which matching contributions are made by Schottenstein Property Group LLC, no Existing
Entity has any (a) labor agreement to which it is a party, or by which it is bound, including,
without limitation, “employee pension benefit plans” as defined in Section 3(2) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”); (b) employment, profit sharing,
deferred compensation, bonus, pension, retainer, consulting, retirement, welfare or incentive plan,
fund, program or contract to which it is a party, or by which it is bound; (c) written or other
formal personnel policies; or (d) plan or agreement under which “fringe benefits” (including, but
not limited to, vacation plans or programs, sick leave plans or programs, and related benefits) are
afforded to its employees.

          (c) ERISA Plan Assets. No Contributing Member is an “employee benefit plan” subject to Part 4
of Subtitle B of Title I of ERISA, a “plan” to which Section 4975 of the Code applies (including an
individual retirement account), or an entity whose underlying assets include plan assets by reason
of a plan’s investment in such entity.

     Section 4.20. No Other Representations or Warranties. Other than the representations and
warranties expressly set forth in this Article IV, the Contributing Members

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shall not be deemed to have made any other representation or warranty in connection with this
Agreement or the transactions contemplated hereby.

     Section 4.21. Indemnification.

          (a) From and after the Closing Date, the Contributing Members, jointly and severally shall
indemnify and hold harmless the Company, the OP and their respective Affiliates (each of which is a
“Company Indemnified Party”) from and against any and all Losses arising out of, relating to or in
connection with (i) any breach of a representation, warranty or covenant of such Contributing
Member contained in this Agreement or in any schedule, exhibit, certificate or affidavit or any
other document delivered by such Contributing Member pursuant to this Agreement, and (ii) any
Existing Entity’s operation of its business or the ownership or operation of its assets on or
before the Closing Date; provided, however, that such Contributing Member shall not have any
obligation under this clause (ii) of this Section to indemnify any Company Indemnified Party
against any Losses arising out of, relating to or in connection with (1) the Company’s or the OP’s
breach of a representation, warranty or covenant contained in this Agreement or in any schedule,
exhibit, certificate or affidavit or any other document delivered by the Company or the OP pursuant
to this Agreement (as if each such representation, warranty and covenant were in full force and
effect and without regard to any qualification therein as to “material,” “materiality,” “Material
Adverse Effect” or words of similar import or effect), (2) the Company’s or the OP’s gross
negligence, willful misconduct or fraud, or (3) any Existing Entity’s operation of its business or
the ownership and operation of its assets after the Closing Date, solely to the extent no
Contributing Member or any Affiliate of a Contributing Member was involved in the operation of such
Existing Entity’s business or the ownership or operation of its assets.

          (b) At the time when any Company Indemnified Party learns of any potential claim under this
Section 4.21 (a “Company Claim”) against a Contributing Member, it shall promptly give written
notice (a “Company Claim Notice”) to such Contributing Member; provided, that failure to do so
shall not prevent recovery under this Agreement, except to the extent that such Contributing Member
shall have been materially prejudiced by such failure. Each Company Claim Notice shall describe in
reasonable detail the facts known to such Company Indemnified Party giving rise to such Company
Claim, and the amount or good faith estimate of the amount of Losses arising therefrom. Unless
prohibited by Law, such Company Indemnified Party shall deliver to such Contributing Member,
promptly after such Company Indemnified Party’s receipt thereof, copies of all notices and
documents (including court papers) received by such Company Indemnified Party relating to a Third
Party Claim (as hereinafter defined). Any Company Indemnified Party may at its option demand
indemnity under this Section 4.21 as soon as a Company Claim has been threatened by a third party,
regardless of whether an actual Loss has been suffered, so long as such Company Indemnified Party
shall in good faith determine that such claim is not frivolous and that such Company Indemnified
Party may be liable for, or otherwise incur, a Loss as a result thereof, with payments under this
Section 4.21(b) being required to be made upon receipt by a Contributing Member of proof of the
Company Indemnified Party’s obligation to pay such Loss and an undertaking by such Company
Indemnified Party to repay any such amount to such Contributing Member if, when, and to the extent
it is determined that such Company Indemnified Party was not entitled to such indemnity payments
under this Section 4.21.

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          (c) Each Contributing Member shall be entitled, at its own expense, to assume and control the
defense of any Company Claims based on Third Party Claims, through counsel chosen by such
Contributing Member and reasonably acceptable to such Company Indemnified Party (or any Person
authorized by such Company Indemnified Party to act on its behalf), if it gives written notice of
its intention to do so to such Company Indemnified Party within thirty (30) days after the receipt
of the applicable Company Claim Notice; provided, however, that such Company Indemnified Party may
at all times participate in such defense at its expense. Without limiting the foregoing, if a
Contributing Member exercises the right to undertake any such defense against a Third Party Claim,
such Company Indemnified Party shall cooperate with such Contributing Member in such defense and
make available to such Contributing Member (unless prohibited by Law), at such Contributing
Member’s expense, all witnesses, pertinent records, materials and information in such Company
Indemnified Party’s possession or under such Company Indemnified Party’s control relating thereto
as is reasonably required by such Contributing Member. No compromise or settlement of such Third
Party Claim may be effected by such Company Indemnified Party, on the one hand, or such
Contributing Member, on the other hand, without the other’s consent (which shall not be
unreasonably withheld or delayed) unless (i) there is no finding or admission of any violation of
Law and no effect on any other Claims that may be made against such other party and (ii) each
Company Indemnified Party that is party to such claim is released from all liability with respect
to such claim.

          (d) All representations, warranties and covenants of the Contributing Members contained in
this Agreement shall survive after the effective time of the transactions contemplated in the
applicable Transaction Documents until the first anniversary of the Closing Date (the “Expiration
Date”); provided, that the representations, warranties and covenants set forth in Sections 4.01
(Organization; Authority), 4.02 (Due Authorization and Enforceability), 4.3 (Ownership of Interest)
and 4.10 (Investment) shall survive indefinitely.

          (e) If written notice of a Company Claim in accordance with the provisions of this Section
4.21 has been given prior to the Expiration Date, then the relevant representation, warranty and
covenant shall survive, but only with respect to such specific claim, until such claim has been
finally resolved. Any claim for indemnification not so asserted in writing by the Expiration Date
may not thereafter be asserted and shall forever be waived. In furtherance of the foregoing, the
Company and the OP hereby waive, as of the Closing Date, to the fullest extent permitted under
applicable Law, any and all rights, claims and causes of action (other than claims of, or causes of
action arising from, fraud) it may have against the other parties hereto arising under or based
upon any federal, state, local or foreign Law, other than the right to seek indemnity pursuant to
this Section 4.21. The foregoing sentence shall not limit the Company’s or the OP’s right to
specific performance or injunctive relief in connection with the breach by a Contributing Member of
its covenants in this Agreement.

          (f) To the fullest extent permitted by law, all indemnity payments made hereunder shall be
treated as adjustments to the Consideration paid hereunder for federal income Tax purposes.

          (g) On the Closing Date, each Contributing Member shall execute a pledge agreement
substantially in the form attached hereto as Exhibit F hereto pursuant to which such Contributing
Member’s indemnity obligations contained in this Section 4.21 shall be secured by

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a pledge of 10% of such Contributing Member’s OP Units (valuing each OP Unit at the IPO
Price), and shall deposit 10% of such Contributor’s Cash Payments, if any, into an escrow governed
by an escrow agreement substantially in the form attached hereto as Exhibit G, pursuant to which
such Contributing Member’s indemnity obligations contained in this Section 4.21 shall be secured by
such escrowed funds. Such pledge and escrow will be in full satisfaction of any indemnification
obligations of such Contributing Member contained in this Section 4.21, other than any
indemnification obligations with respect to a breach of any of the representations, warranties or
covenants set forth in the proviso of Section 4.21(d) hereof. Any claim by a Company Indemnified
Party shall be made pro rata against the OP Units and Cash Payments (or to the extent any claim is
made against one or more but not all Contributing Members, then against the aggregate OP Units and
Cash Payments constituting the Total Consideration of such Contributing Members). Each pledge
agreement shall provide for the pledge to be released twelve (12) months after the Closing Date,
except to the extent of indemnification claims made prior to such date and any escrow of cash shall
provide for the escrow to be released twelve (12) months after the Closing Date, except to the
extent of indemnification claims made prior to such date.

          (h) If Losses in respect of any Company Claim are attributable to any one or more Contributing
Members or the Existing Entities owned by such Contributing Members or the properties owned by the
Existing Entities owned by such Contributing Members, as the case may be, then only such
Contributing Members shall be responsible for making payments to Company Indemnified Parties
entitled to receive such payments in accordance with this Section 4.21. Any Contributing Member
that makes payments to Company Indemnified Parties in an amount exceeding its proportionate share
of such Losses, shall be reimbursed by the Contributing Members in respect of which such Losses are
attributable.

ARTICLE V

COVENANTS AND OTHER AGREEMENTS

     Section 5.01. Covenants of the Contributing Members; Waiver. From the date hereof through the
Closing Date, except as otherwise provided for or as contemplated by this Agreement, each
Contributing Member shall, to the extent within its control, conduct each Existing Entity’s
business in the ordinary course of business consistent with past practice. From the date hereof
through the Closing Date, except as otherwise provided for or as contemplated by this Agreement,
each Contributing Member shall not, without the prior written consent of the Company and the OP
(which consent may be given or withheld by each of them for any reason or for no reason whatsoever
in its sole and absolute discretion):

          (a) sell, transfer or otherwise dispose of (or enter into an agreement to sell, transfer or
dispose of) all or any portion of such Contributing Member’s Contributing Member Interests or the
Properties;

          (b) mortgage, pledge, hypothecate, encumber (or permit to become encumbered) all or any
portion of such Contributing Member’s Contributing Member Interests or the Properties;

25

 

          (c) amend, modify or terminate any Lease to the extent such amendment, modification or
termination would reasonably be expected to have a Material Adverse Effect;

          (d) cause or permit the Existing Entities to violate any applicable Laws to the extent such
violation would reasonably be expected to have a Material Adverse Effect;

          (e) make any distribution to its beneficiaries or equity interest holders, except as
contemplated in Section 1.05;

          (f) authorize or consent to, or cause any Existing Entity to take, any of the actions
prohibited by this Agreement;

          (g) amend the organizational documents of any Existing Entity;

          (h) take or allow any action (or fail to take any action) that would result in any of the
Existing Entities being treated as an association or publicly-traded partnership taxable as a
corporation for federal income tax purposes;

          (i) adopt a plan of liquidation, dissolution, merger, consolidation, restructuring,
recapitalization or reorganization with respect to any Existing Entity, as applicable;

          (j) exercise rights, if any, under applicable organizational documents, to initiate any
buy-sell procedures or to commence any process to market and sell the property held (directly or
indirectly) by any Existing Entity; or

          (k) cause or take any action that would render any of the representations and warranties of
the Contributing Members in this Agreement untrue in any material respect.

As of the Closing, each Contributing Member waives and relinquishes all rights and benefits
otherwise afforded to such Contributing Member (i) under the applicable Existing Entity’s
organizational documents in connection with the IPO, including without limitation any rights of
appraisal, rights of first offer or first refusal, buy/sell agreements, put, option or similar
parallel exit or dissenter rights, and any right to consent to or approve the sale or contribution
by any partner or member, as applicable of its Contributing Member Interests to the OP, and any and
all notice provisions relating thereto; and (ii) to raise claims against any Existing Entity or any
of its respective present or former officers, directors, managing members or general partners in
their capacity as an officer, director, managing member or general partner of such Existing Entity,
for (A) breach of fiduciary duties or similar obligations (including duties of disclosure) to any
present or former shareholders, members or partners of any Existing Entity, (B) fraud, or
self-dealing or any other similar cause of action related to the Existing Entity or the real
property owned directly or indirectly by any Existing Entity. Each Contributing Member acknowledges
that the agreements contained herein and the transactions contemplated hereby and any actions taken
in anticipation of the transactions contemplated hereby may conflict with, and may not have been
contemplated by, the organizational documents of the applicable Existing Entity, or by other
agreements among one or more holders of Contributing Member Interests. With respect to each
applicable Existing Entity and each property in which the Contributing Member Interests represent a
direct or indirect interest, each Contributing Member expressly gives all consents and waivers they
are entitled to give that are necessary or desirable to facilitate the Consolidation

26

 

Transactions (including any consents necessary to authorize the proper parties in interest to give
consents in connection therewith). In addition, if the transactions contemplated hereby occur, this
Agreement shall be deemed to be an amendment to the organizational documents of the applicable
Existing Entity to the extent the terms herein conflict with the terms thereof, including without
limitation, terms with respect to allocations, distributions and the like. If the transactions
contemplated by this Agreement do not occur, nothing in this Agreement shall be deemed to be or
construed as an amendment or modification of, or commitment of any kind to amend or modify, the
organizational documents of any Existing Entity, which shall, in such case, remain in full force
and effect without modification.

     Section 5.02. Commercially Reasonable Efforts by the Company, the OP and the Contributing
Members. Each of the Company, the OP and each Contributing Member shall use commercially
reasonable efforts and cooperate with each other in (i) promptly determining whether any filings
are required to be made or consents, approvals, waivers, permits or authorizations are required to
be obtained (under any applicable Law or regulation or from any Governmental Authority or third
party) in connection with the transactions contemplated by this Agreement, and (ii) promptly making
any such filings, in furnishing information required in connection therewith and in timely seeking
to obtain any such consents, approvals, waivers, permits or authorizations.

     Section 5.03. Tax Matters.

          (a) In accordance with Section 704(c) of the Code and to the extent permitted pursuant to the
Treasury Regulations thereunder, the OP shall adopt and use only the so-called “traditional method”
described in Treasury Regulations Section 1.704-3(b) with respect to the Contributing Member
Interests, and therefore shall not make any curative or remedial allocations.

          (b) From the date hereof and subsequent to the Closing Date, each Contributing Member agrees
to provide the Company and the OP with such Tax information relating to the Existing Entities that
is in Contributing Member’s possession or control and that is reasonably requested by the Company
or the OP and not otherwise in the Company’s or the OP’s possession or control and to cooperate
with the Company and the OP with respect to the filing of their Tax Returns.

          (c) The OP shall use its best efforts to allocate sufficient non-recourse liabilities (within
the meaning of Treasury Regulations Section 1.752-3) to the Contributing Members so as to avoid
recognition of income pursuant to Section 731(a) of the Code in connection with the Consolidation
Transactions, and shall, to the extent necessary to avoid such recognition of income, permit the
Contributing Members to enter into one or more “bottom dollar” or similar guarantees of nonrecourse
liabilities or indemnification agreements or deficit restoration obligations with respect to
recourse liabilities of the OP.

          (d) The parties hereto intend and agree, that for federal income tax purposes, the
Consolidation Transactions in which the Consideration is OP Units shall be treated as a transfer of
the equity interests in the Existing Entities to the OP in exchange for OP Units under Section 721
of the Code including, where applicable, pursuant to the “assets over” form of

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transaction set forth in Treasury Regulation Section 1.708-1(c)(3)(i). Consistent with the
foregoing, to the extent any Contributing Member transfers all or any portion of a Contributing
Member Interest in an Existing Entity to the OP in exchange for cash, or to the extent any portion
of a Contributing Member’s transfer of a Contributing Member Interest would otherwise be treated as
a “disguised sale” pursuant to Section 707 of the Code or the Treasury Regulations
promulgated thereunder (such Contributing Member referred to as a “Selling Party,” and the portion
of the Contributing Member Interests sold by such Contributing Member referred to as a “Sold
Interest”), such transfer shall be treated as a sale by the Selling Party and a purchase of the
Sold Interest by the OP directly from the Selling Party in accordance with the provisions of
Treasury Regulation Section 1.708-1(c)(4) and all applicable documents and agreements entered into
in connection with the Consolidation Transactions shall comply with the requirements set forth in
Treasury Regulation Sections 1.708-1(c)(3)(i) and 1.708-1(c)(4). To the extent that a Contributing
Member constitutes a Selling Party, such Contributing Member expressly agrees and consents to treat
the transfer of the Sold Interests as a sale of an interest in the Existing Entity for all federal
income tax purposes. The OP and Contributing Member agree that the transaction shall be treated
for federal income Tax purposes as if the Selling Party first sold the Sold Interest in the
Existing Entity to the OP, the Existing Entity then transferred its assets and liabilities (except
to the extent attributable to the Sold Interests) to the OP in exchange for OP Units, and then the
Existing Entity liquidated, distributing the OP Units to its partners or members (other than the
Selling Parties with respect to the Sold Interests) and distributing the balance of its assets and
liabilities to the OP in redemption of the Sold Interests acquired by the OP. Any cash paid to a
Contributing Member pursuant to this Agreement, shall be paid only after the receipt of a consent
from such Contributing Member that, for federal income tax purposes, such payment of cash shall be
treated as a sale of the Sold Interests by the Contributing Member that is a Selling Party and a
purchase of such Sold Interests by the OP for the cash so paid.

ARTICLE VI

GENERAL PROVISIONS

     Section 6.01. Notices. All notices and other communications under this Agreement shall be in
writing and shall be deemed given when (a) delivered personally, (b) one (1) Business Day after
being sent by a nationally recognized overnight courier or (c) transmitted by facsimile if
confirmed within 24 hours thereafter by a signed original sent in the manner provided in clause (a)
or (b) to the parties at the following addresses (or at such other address for a party as shall be
specified by notice from such party):

if to the Company or the OP to:

4300 East Fifth Avenue

Columbus, OH 43219

Tel: (614) 449-4251

Fax: (614) 449- 4360

Attention: Mr. Ben Kraner

28

 

with
a copy to:

Tod Friedman, Esq.

Senior Vice President and General Counsel

c/o the Company

4300 East Fifth Avenue

Columbus, OH 43219

Tel: (614) 449-4329

and

Greenberg, Traurig, LLP

77 West Wacker Drive

Suite 3100

Chicago Illinois 60601-1732

Attention: Corey Light, Esq.

Facsimile: (312) 456-8435

if to a Contributing Member:

To the address indicated for such Contributing Member on the
signature page to this Agreement.

     Section 6.02. Definitions. For purposes of this Agreement, the following terms shall have the
following meanings.

          (a) “Affiliate” means, with respect to any Person, a Person that, directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is under common control with the
specified Person. For the purposes of this definition, “control” (including, with correlative
meanings, the terms “controlled by” and “under common control with”) as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise.

          (b) “Business Day” means any day that is not a Saturday, Sunday or legal holiday in the State
of Maryland.

          (c) “Code” means the Internal Revenue Code of 1986, as amended, together with the rules and
regulations promulgated or issued thereunder.

          (d) “Common Stock” means common stock of the Company.

          (e) “Governmental Authority” means any government or agency, bureau, board, commission, court,
department, official, political subdivision, tribunal or other instrumentality of any government,
whether federal, state or local, domestic or foreign.

29

 

          (f) “IPO Price” means the public offering price per share of the Common Stock in the IPO.

          (g) “Laws” means applicable laws, statutes, rules, regulations, codes, orders, ordinances,
judgments, injunctions, decrees and policies of any Governmental Authority.

          (h) “Liens” with respect to the Contributing Member Interests, means all pledges, claims,
liens, charges, restrictions, controls, easements, rights of way, exceptions, reservations, leases,
licenses, grants, covenants and conditions, encumbrances and security interests of any kind or
nature whatsoever.

          (i) “Material Adverse Effect” means a material adverse effect on (1) the Company, the OP, the
Company Subsidiaries, the Existing Entities and the Properties (after giving effect to the
Consolidation Transactions), taken as a whole or (2) the ability of the Contributing Members to
execute and deliver this Agreement and perform its obligations hereunder and consummate the
Consolidation Transactions.

          (j) “Original Agreement” has the meaning set forth in the Recitals of this Agreement.

          (k) “Person” means an individual, corporation, partnership, limited liability company, joint
venture, association, trust, unincorporated organization or other entity.

          (l) “Prospectus” means the Company’s final prospectus as filed with the SEC.

          (m) “Subsidiary” of any Person means any corporation, partnership, limited liability company,
joint venture, trust or other legal entity of which such Person owns (either directly or through or
together with another Subsidiary of such Person) either (i) a general partner, managing member or
other similar interest, or (ii) (A) 10% or more of the voting power of the voting capital stock or
other equity interests, or (B) 10% or more of the outstanding voting capital stock or other voting
equity interests of such corporation, partnership, limited liability company, joint venture or
other legal entity.

          (n) “Taxes” shall mean any (i) federal, state or local or foreign income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental, customs duties, capital stock, franchise, profits, withholding, social security (or
similar), unemployment, disability, real property, personal property, escheat, sales, use,
transfer, registration, value added, alternative or add-on minimum, estimated or other tax,
assessment or governmental charge of any kind whatever imposed by any taxing authority, including
any interest, penalty or addition thereto, whether disputed or not, and (ii) liability for the
payment of any amount of the type described in clause (i) above as a result of any express or
implied obligation to indemnify or otherwise assume or succeed to the liability of any other
Person.

          (o) “Tax Return” shall mean any return, declaration, report, estimate, information return and
statement (including any attachment or schedule thereto) required to be filed in respect of any
Taxes.

30

 

          (p) “Title Reports” means the title insurance policies issued in the name of the Existing
Entities with respect to the Properties.

          (q) “Total Consideration” means the total value of the Offered OP Units and, if applicable,
any Cash Payments.

     Section 6.03. Counterparts. This Agreement may be executed in counterparts, all of which shall
be considered one and the same agreement and shall become effective when one or more counterparts
have been signed by each party and delivered to each other party.

     Section 6.04. Entire Agreement; Third Party Beneficiaries. This Agreement, including, without
limitation, the recitals, exhibits and schedules hereto, constitute the entire agreement and
supersede each prior agreement and understanding, whether written or oral, among the parties
regarding the subject matter of this Agreement. This Agreement is not intended to confer any rights
or remedies on any Person other than the parties hereto.

     Section 6.05. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the Laws of the State of New York, regardless of any Laws that might otherwise govern under
applicable principles of conflicts of laws thereof.

     Section 6.06. Assignment. This Agreement shall be binding upon, and shall be enforceable by
and inure to the benefit of, the parties hereto and their respective heirs, legal representatives,
successors and permitted assigns; provided, however, that this Agreement may not be assigned
(except by operation of law) by any party without the prior written consent of the other parties,
and any attempted assignment without such consent shall be null and void and of no force and
effect, except that the Company or the OP may assign its rights and obligations hereunder to an
Affiliate of either of them.

     Section 6.07. Jurisdiction. The parties hereto hereby (a) submit to the exclusive jurisdiction
of any state or federal court sitting in New York, New York with respect to any dispute arising out
of this Agreement or any transaction contemplated hereby to the extent such courts would have
subject matter jurisdiction with respect to such dispute, and (b) irrevocably waive, and agree not
to assert by way of motion, defense, or otherwise, in any such action, any claim that it is not
subject personally to the jurisdiction of the above-named courts, that its property is exempt or
immune from attachment or execution, that the action is brought in an inconvenient forum, or that
the venue of the action is improper.

     Section 6.08. No Arbitration(a) . No dispute, controversy or claim arising out of or relating
to this Agreement or the enforcement, breach, termination or validity thereof shall be submitted to
arbitration or similar dispute resolution method.

     Section 6.09. Final Agreements. EACH OF THE CONTRIBUTING MEMBERS AGREES AND CONFIRMS THAT THE
TERMS OF THE OP UNITS ARE NOT FINAL AND MAY BE MODIFIED DEPENDING ON THE PREVAILING MARKET
CONDITIONS AT THE TIME OF THE IPO. BY EXECUTING THIS AGREEMENT SUCH CONTRIBUTING MEMBER HEREBY
AUTHORIZES THE OP AND THE COMPANY TO, AND UNDERSTANDS AND AGREES THAT THE OP AND THE COMPANY MAY,
MAKE CHANGES (INCLUDING CHANGES THAT MAY BE

31

 

DEEMED MATERIAL) TO THE CHARTER, THE COMPANY’S BYLAWS, THE REGISTRATION RIGHTS AGREEMENT, THE
TAX PROTECTION AGREEMENT, THE LOCK-UP AGREEMENT, THE OP AGREEMENT, AND SUCH CONTRIBUTING MEMBER
AGREES TO RECEIVE THE OFFERED OP UNITS OR CASH, AS THE CASE MAY BE, WITH SUCH FINAL TERMS AND
CONDITIONS AS THE COMPANY AND THE OP DETERMINE.

     Section 6.10. Severability. Each provision of this Agreement will be interpreted so as to be
effective and valid under applicable Law, but if any provision is held invalid, illegal or
unenforceable under applicable Law in any jurisdiction, then the remainder of this Agreement and
the applicable of such provision to other persons, entities or circumstances will be interpreted so
as reasonably to affect the intent of the parties hereto. The parties further agree to replace
such void or unenforceable provision in this Agreement with a valid and enforceable provision that
will achieve, to the extent possible, the economic, business and other purposes of the void or
unenforceable provision and to execute any amendment, consent or agreement deemed necessary or
desirable by the parties to effect such replacement.

     Section 6.11. Rules of Construction.

          (a) The parties hereto agree that they have had the opportunity to be represented by counsel
during the negotiation, preparation and execution of this Agreement and, therefore, waive the
application of any Law, regulation, holding or rule of construction providing that ambiguities in
an agreement or other document will be construed against the party drafting such agreement or
document.

          (b) The words “hereof,” “herein” and “herewith” and words of similar import shall, unless
otherwise stated, be construed to refer to this Agreement as a whole and not to any particular
provision of this Agreement, and article, section, paragraph, exhibit and schedule references are
to the articles, sections, paragraphs, exhibits and schedules of this Agreement unless otherwise
specified. Whenever the words “include,” “includes” or “including” are used in this Agreement, they
shall be deemed to be followed by the words “without limitation.” All terms defined in this
Agreement shall have the defined meanings contained herein when used in any certificate or other
document made or delivered pursuant hereto unless otherwise defined therein. The definitions
contained in this Agreement are applicable to the singular as well as the plural forms of such
terms and to the masculine as well as to the feminine and neuter genders of such terms. Unless
explicitly stated otherwise herein, any agreement, instrument or statute defined or referred to
herein or in any agreement or instrument that is referred to herein means such agreement,
instrument or statute as from time to time, amended, qualified or supplemented, including (in the
case of agreements and instruments) by waiver or consent and (in the case of statutes) by
succession of comparable successor statutes and all attachments thereto and instruments
incorporated therein. References to a Person are also to its permitted successors and assigns.

     Section 6.12. Equitable Remedies. The parties agree that irreparable damage would occur to the
Company and the OP if any of the provisions of this Agreement were not performed in accordance with
their specific terms or were otherwise breached by a Contributing Member. It is accordingly agreed
that the Company and the OP shall be entitled to an injunction or

32

 

injunctions to prevent breaches of this Agreement by a Contributing Member and to enforce
specifically the terms and provisions hereof in any federal or state court located in New York, New
York, this being in addition to any other remedy to which the Company and the OP is entitled under
this Agreement or otherwise at law or in equity.

     Section 6.13. Further Assurances. Each Contributing Member shall act in good faith in all
respects including, without limitation, using its best efforts to consummate the transaction
contemplated by this Agreement. Each Contributing Member shall not withdraw or seek to withdraw
from, terminate or in any way interfere with the transactions contemplated by this Agreement. Each
Contributing Member shall, from time to time, execute and deliver to the Company all such other and
further instruments and documents and take or cause to be taken all such other and further action
as the Company or the OP may reasonably request in order to effect the transactions contemplated by
this Agreement. Notwithstanding the foregoing, the Company or the OP may request from a
Contributing Member such additional information as it may deem necessary to evaluate the
eligibility of such Contributing Member to acquire Offered OP Units, and may request from time to
time such information as it may deem necessary to determine the eligibility of such Contributing
Member to hold Offered OP Units or to enable the OP or the Company to determine such Contributing
Member’s compliance with applicable regulatory requirements or Tax status, and such Contributing
Member shall provide such information as may reasonably be requested as soon as is reasonably
practicable thereafter.

     Section 6.14. Time of the Essence. Time is of the essence with respect to all obligations
under this Agreement.

     Section 6.15. Descriptive Headings. The descriptive headings herein are inserted for
convenience only and are not intended to be part of or to affect the meaning or interpretation of
this Agreement.

     Section 6.16. No Personal Liability Conferred. This Agreement shall not create or permit any
personal liability or obligation on the part of any officer, director, partner, employee or
stockholder of the OP or the Company.

     Section 6.17. Amendments. This Agreement may be amended by appropriate instrument, without the
consent of any Contributing Member, at any time prior to the Closing Date; provided, that no such
amendment, modification or supplement shall be made that alters in any adverse respect Section 4.21
(Indemnification).

     Section 6.18. Amendment and Restatement of Original Agreement. This Agreement amends and
restates the Original Agreement in its entirety and supersedes the Original Agreement in all
respects.

[SIGNATURE PAGES FOLLOW]

33

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their
respective duly authorized officers or representatives, all as of the date first written above.

	 	 	 	 	 	 	 	 	 

	CONTRIBUTING MEMBER	 	Address:  
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	c/o Schottenstein Realty Trust, Inc.
	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	4300 East Fifth Avenue
	 

	 	Title:
	 	 	 	 	 	Columbus, OH 43219
	 
	 	 	 	 	 	 	 	 
	Signature (on behalf of himself, herself or	 	 
	itself individually and the entities listed on	 	 
	Exhibit A)	 	 
	 
	 	 	 	 	 	 	 	 
	SCHOTTENSTEIN REALTY TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name:	 	Benton E. Kraner	 	 
	 	 	Title:	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	SCHOTTENSTEIN REALTY LP	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	Schottenstein Realty Trust, Inc., its general	 	 
	 	 	partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Benton E. Kraner	 	 
	 

	 	 	 	Title:
	 	President	 	 

34

 

Exhibit A

CONTRIBUTING MEMBER INTERESTS IN EXISTING ENTITIES

[To be provided]

35

 

Exhibit B

Form of Registration Rights Agreement

36

 

Exhibit C

Form of Tax Protection Agreement

37

 

Exhibit D

Form of Assignment and Assumption Agreements

ASSIGNMENT OF [MEMBERSHIP AND/OR LIMITED PARTNER] INTERESTS

([Grantor])

     This Assignment of [Membership and/or Limited Partner] Interests (“Assignment”) is made
effective as of the _____ day of ____________, 2011, by [___________________], a(n) ______________
(“Assignor”) in favor of SCHOTTENSTEIN REALTY, L.P., a Delaware limited partnership (“Assignee”).

WITNESSETH:

     WHEREAS, Assignor is the holder of outstanding [membership interests and/or limited partner
interests] in certain entities identified on Schedule A attached hereto and made a part hereof
(collectively, the “Transferred Interests”); and

     WHEREAS, Assignor desires to assign, convey and transfer the Transferred Interests to Assignee
and Assignee desires to accept such assignment, conveyance and transfer of the Transferred
Interests.

     NOW THEREFORE, for Ten Dollars ($10.00) and other good and valuable consideration, the
receipt, adequacy and sufficiency of which is hereby acknowledged, the parties intending to be
legally bound hereby do agree as follows:

     1. The recitals set forth in the preamble of this Assignment, above, are true and correct and
incorporated herein by this reference.

     2. Assignor hereby assigns, conveys and transfers unto Assignee the Transferred Interest.
Assignee hereby accepts such assignment, conveyance and transfer of the Transferred Interest.

     3. [Include only if unaffiliated third party Assignor: Assignor represents and warrants (i)
that Assignor has full right and authority to transfer the Transferred Interests and (ii) that the
Transferred Interests are free and clear of all liens, claims and encumbrances. This Assignment
shall be binding on Assignor and Assignee and their respective successors and assigns.]

     4. As consideration for the Transferred Interests, Assignor shall receive [cash in the amount
set forth on Schedule A/units of limited partnership interests in Assignee as set forth on Schedule
A].

[The remainder of this page is intentionally left blank.]

38

 

     IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as of the date first
written above.

	 	 	 	 	 	 	 	 	 

	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	                                                            ,
a(n)                    	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 

	STATE OF                                         

	 	 	)	 
	 
	 	 	 	 
	 
	 	 	) 	 SS.
	COUNTY OF                                         

	 	 	)	 

     On ____________, 2011, before me, ______________________, a notary public in and for said
County and State, personally appeared _____________________, personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s),
or the entity upon behalf of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

Signature:                                          SPACE FOR NOTARY SEAL OR STAMP

39

 

	 	 	 	 	 	 	 	 	 

	 	 	ASSIGNEE:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SCHOTTENSTEIN REALTY, L.P.,	 	 
	 	 	a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 

	STATE OF                                         

	 	 	)	 
	 
	 	 	 	 
	 
	 	 	)	 SS.
	COUNTY OF                                         

	 	 	)	 

     On ____________, 2011, before me, ______________________, a notary public in and for said
County and State, personally appeared _____________________, personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s),
or the entity upon behalf of which the person(s) acted, executed the instrument.

     WITNESS my hand and official seal.

Signature:                                                              SPACE FOR NOTARY SEAL OR STAMP

40

 

SCHEDULE A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TRANSFERRED INTEREST	 	 	 	 
	PROPERTY	 	 	[LIMITED LIABILITY COMPANY AND/OR	 	 	%	 	 	CONSIDERATION	 
	#	 	NAME	 	 	LIMITED PARTNERSHIP]	 	 	INTEREST	 	 	[CASH/UNITS]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

41

 

Exhibit E

Subsidiaries Taxable as a Corporation for Purposes of Section 3.09

With respect to which the Company intends to make a “taxable REIT subsidiary” Effective

as of the Closing.

42

 

Exhibit F

Form of Pledge Agreement

(for purpose of Section 4.21(g))

43

 

Exhibit G

Form of Escrow Agreement

(for purposes of Section 4.2(g))

44

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