Document:

Filed by Avantafile.com - Mobile Infrastructure Corporation - Exhibit 10.1

 

 

third AMENDED AND RESTATED

 

AGREEMENT

 

OF LIMITED PARTNERSHIP

 

OF

 

MOBILE INFRA OPERATING PARTNERSHIP, L.P.

 

a Maryland limited
partnership

 

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

 

Dated as of March 18,
2022

Page 1 of 128

Table of Contents

	Article 1       DEFINED   TERMS
	8

	Article 2         ORGANIZATIONAL MATTERS
	32

	Section 2 1             Formation
	32

	Section 2 2             Name
	32

	Section 2 3             Principal Office and Resident   Agent; Principal Executive Office
	32

	Section 2 4             Power of Attorney
	33

	Section 2 5             Term
	34

	Section 2 6             Partnership Interests Are   Securities
	34

	Article 3       PURPOSE
	34

	Section 3 1             Purpose and Business
	34

	Section 3 2             Powers
	34

	Section 3 3             Partnership Only for Purposes   Specified
	35

	Section 3 4             Representations and Warranties   by the Partners
	35

	Article 4       CAPITAL   CONTRIBUTIONS
	38

	Section 4 1             Capital Contributions of the   Partners
	38

	Section 4 2             Issuances of Additional   Partnership Interests
	38

	Section 4 3             Additional Funds and Capital   Contributions
	40

	Section 4 4             Stock Option Plans and Equity   Plans; Warrants
	41

	Section 4 5             Dividend Reinvestment Plan,   Cash Option Purchase Plan, Stock Incentive Plan or Other Plan
	44

	Section 4 6             No Interest; No Return
	44

	Section 4 7             Conversion or Redemption of   Capital Shares
	44

	Section 4 8             Other Contribution Provisions
	45

	Article 5         DISTRIBUTIONS
	45

	Section 5 1             Requirement and   Characterization of Distributions
	45

	Section 5 2             Distributions in Kind
	46

	Section 5 3             Tax Distributions
	46

	Section 5 4             Amounts Withheld
	47

	Section 5 5             Distributions Upon Liquidation
	47

	Section 5 6             Distributions to Reflect   Additional Partnership Units
	48

	Section 5 7             Restricted Distributions
	48

	Article 6       ALLOCATIONS
	48

	Section 6 1             Timing and Amount of   Allocations of Net Income and Net Loss
	48

Page 2 of 128

	Section 6 2             Allocations of Net Income and   Net Loss
	48

	Section 6 3             Additional Allocation   Provisions
	52

	Section 6 4             Tax Allocations
	54

	Article 7       MANAGEMENT   AND OPERATIONS OF BUSINESS
	55

	Section 7 1             Management
	55

	Section 7 2             Certificate of Limited   Partnership
	59

	Section 7 3             Restrictions on General   Partner’s Authority
	60

	Section 7 4             Reimbursement of the General   Partner
	62

	Section 7 5             Outside Activities of the   General Partner
	63

	Section 7 6             Transactions with Affiliates
	64

	Section 7 7             Indemnification
	64

	Section 7 8             Liability of the General   Partner
	67

	Section 7 9             Other Matters Concerning the   General Partner
	69

	Section 7 10         Title to Partnership Assets
	70

	Section 7 11         Reliance by Third Parties
	70

	Article 8       RIGHTS AND   OBLIGATIONS OF LIMITED PARTNERS
	71

	Section 8 1             Limitation of Liability
	71

	Section 8 2             Management of Business
	71

	Section 8 3           Outside Activities of Limited Partners
	71

	Section 8 4             Return of Capital
	71

	Section 8 5             Rights of Limited Partners   Relating to the Partnership
	72

	Section 8 6             Partnership Right to Call   Limited Partner Interests
	72

	Section 8 7             Rights as Objecting Partner
	73

	Article 9       BOOKS, RECORDS,   ACCOUNTING AND REPORTS
	73

	Section 9 1             Records and Accounting
	73

	Section 9 2             Partnership Year
	73

	Section 9 3             Reports
	73

	Article 10     TAX MATTERS
	74

	Section 10 1         Preparation of Tax Returns
	74

	Section 10 2         Tax Elections
	74

	Section 10 3         Tax Matters Partner; Partner Representative
	74

	Section 10 4         Withholding
	76

	Section 10 5         Organizational Expenses
	76

	Article 11     PARTNER TRANSFERS AND   WITHDRAWALS
	76

Page 3 of 128

	Section 11 1         Transfer
	76

	Section 11 2         Transfer of General Partner’s Partnership   Interest
	77

	Section 11 3         Limited Partners’ Rights to Transfer
	79

	Section 11 4         Admission of Substituted Limited Partners
	82

	Section 11 5         Assignees
	83

	Section 11 6         General Provisions
	83

	Article 12     ADMISSION OF PARTNERS
	85

	Section 12 1         Admission of Successor General Partner
	85

	Section 12 2         Admission of Additional Limited Partners
	85

	Section 12 3         Amendment of Agreement and Certificate of   Limited Partnership
	86

	Section 12 4         Limit on Number of Partners
	86

	Section 12 5         Admission
	87

	Article 13     DISSOLUTION,   LIQUIDATION AND TERMINATION
	87

	Section 13 1         Dissolution
	87

	Section 13 2         Winding Up
	87

	Section 13 3         Deemed Contribution and Distribution
	89

	Section 13 4         Rights of Holders
	89

	Section 13 5         Notice of Dissolution
	89

	Section 13 6         Cancellation of Certificate of Limited   Partnership
	90

	Section 13 7         Reasonable Time for Winding-Up
	90

	Article 14     ROCEDURES FOR ACTIONS   AND CONSENTS OF PARTNERS; AMENDMENTS; MEETINGS
	90

	Section 14 1         Procedures for Actions and Consents of   Partners
	90

	Section 14 2         Amendments
	90

	Section 14 3         Meetings of the Partners
	91

	Article 15     GENERAL PROVISIONS
	92

	Section 15 1         Redemption Rights of Qualifying Parties
	92

	Section 15 2         Addresses and Notice
	96

	Section 15 3         Titles and Captions
	96

	Section 15 4         Pronouns and Plurals
	96

	Section 15 5         Further Action
	96

	Section 15 6         Binding Effect
	97

	Section 15 7         Waiver
	97

	Section 15 8         Counterparts
	97

	Section 15 9         Applicable Law; Consent to Jurisdiction;   Waiver of Jury Trial
	97

Page 4 of 128

	Section 15 10       Entire Agreement
	98

	Section 15 11       Invalidity of Provisions
	98

	Section 15 12       Limitation to Preserve REIT Status
	98

	Section 15 13       No Partition
	99

	Section 15 14       No Third-Party Rights Created Hereby
	99

	Section 15 15       No Rights as Stockholders
	100

	Article 16     SERIES A CONVERTIBLE   REDEEMABLE PREFERRED UNITS
	100

	Section 16 1         Designation
	100

	Section 16 2         Distributions
	100

	Section 16 3         Liquidation Preference
	102

	Section 16 4         Rank
	102

	Section 16 5         Voting Rights
	103

	Section 16 6         Transfer Restrictions
	103

	Section 16 7         Conversion Rights
	103

	Section 16 8         No Sinking Fund
	103

	Article 17     SERIES 1 CONVERTIBLE   REDEEMABLE PREFERRED UNITS
	103

	Section 17 1         Designation
	103

	Section 17 2         Distributions
	103

	Section 17 3         Liquidation Preference
	105

	Section 17 4         Rank
	106

	Section 17 5         Voting Rights
	106

	Section 17 6         Transfer Restrictions
	106

	Section 17 7         Conversion Rights
	106

	Section 17 8         No Sinking Fund
	107

	Article 18     LTIP UNITS
	107

	Section 18 1         Designation
	107

	Section 18 2         Vesting
	107

	Section 18 3         Adjustments
	107

	Section 18 4         Distributions
	108

	Section 18 5         Allocations
	109

	Section 18 6         Transfers
	109

	Section 18 7         Redemption
	109

	Section 18 8         Legend
	109

	Section 18 9         Conversion to Common Units
	110

Page 5 of 128

	Section 18 10       Voting
	112

	Section 18 11       Section 83 Safe Harbor
	112

	Article 19     PERFORMANCE UNITS
	113

	Section 19 1         Designation
	113

	Section 19 2         Vesting
	113

	Section 19 3         Adjustments
	114

	Section 19 4         Distributions
	114

	Section 19 5         Allocations
	115

	Section 19 6         Transfers
	116

	Section 19 7         Redemption
	116

	Section 19 8         Legend
	116

	Section 19 9         Conversion to Common Units
	116

	Section 19 10       Voting
	119

	Article 20     CLASS A UNITS
	119

	Section 20 1         Designation
	119

	Section 20 2         Adjustments
	119

	Section 20 3         Distributions
	119

	Section 20 4         Liquidation Preference
	119

	Section 20 5         Voting Rights
	120

	Section 20 6         Transfers and Redemptions
	120

	Section 20 7         Characterization and Allocations
	120

	Section 20 8         Legend
	121

	Section 20 9         Exercise for Common Units
	121

Page 6 of 128

tHIRD AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP
OF MOBILE INFRA OPERATING PARTNERSHIP, L.P.

 

THIS THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP OF MOBILE INFRA OPERATING PARTNERSHIP, L.P., dated as of March 18,
2022, is made and entered into by and among, Mobile Infrastructure Corporation,
a Maryland corporation, as the General Partner and the Persons from time to
time party hereto, as limited partners.

 

WHEREAS, the Partnership (as defined herein) initially
was formed pursuant to and in accordance with the Delaware Revised Uniform
Limited Partnership Act by the filing of a Certificate of Limited Partnership
with the Secretary of State of the State of Delaware on June 8, 2015 (the “Formation
Date”), with the General Partner as the initial general partner.

 

WHEREAS, the initial general partner and the initial
limited partner of the Partnership entered into a limited partnership agreement
of the Partnership effective as of September 22, 2015 (the “Original
Partnership Agreement”);

 

WHEREAS, the Partnership was converted from a Delaware
limited partnership to a Maryland limited partnership by the filing of a
Certificate of Limited Partnership of the Partnership and Articles of
Conversion with the SDAT (as defined herein) on August 26, 2021;

 

WHEREAS, in connection with the foregoing, the General
Partner and the Partnership amended and restated the Original Partnership
Agreement, effective as of August 26, 2021 (the “Amended Partnership
Agreement”);

 

WHEREAS, the General Partner and the Partnership amended
and restated the Amended Partnership Agreement, effective as of November 2,
2021 (the “Second Amended Partnership Agreement”);

 

WHEREAS, effective as of March 17, 2022, MVP REIT II
Holdings, LLC, a Delaware limited liability company, a wholly owned subsidiary
of the General Partner and a Limited Partner (“MVP REIT II Holdings”),
merged with and into the General Partner, with the General Partner continuing
as the surviving entity (the “Merger”), and in connection
therewith the General Partner succeeded to the Common Units, Series 1 Preferred
Units and Series A Preferred Units owned by MVP REIT II Holdings immediately
prior to the effective time of the Merger;

 

WHEREAS, subsequent to the effective date of the Merger,
the General Partner filed an Amendment to the Certificate of Limited
Partnership of the Partnership to change the name of the Partnership from “MVP
REIT II Operating Partnership L.P.” to “Mobile Infra Operating Partnership, L.P.”
effective as of March 18, 2022; and

 

WHEREAS, the General Partner and the Partnership desire
to amend and restate the Second Amended Partnership Agreement to make the
modifications hereinafter set forth as permitted by Section 14.2 of the Second
Amended Partnership Agreement.

Page 7 of 128

NOW, THEREFORE, BE IT RESOLVED, that, in consideration
of the mutual covenants and agreements contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

Article
1

DEFINED TERMS

 

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

 

“Act” means the Maryland Revised Uniform
Limited Partnership Act, Title 10 of the Corporations and Associations Article
of the Annotated Code of Maryland, as it may be amended from time to time, and
any successor to such statute.

 

“Actions” has the meaning set forth in
Section 7.7 hereof.

 

“Additional Funds” has the meaning set
forth in Section 4.3.A hereof.

 

“Additional Limited Partner” means a
Person who is admitted to the Partnership as a limited partner pursuant to the
Act and Section 4.2 and Section 12.2 hereof and who is shown as such on the
books and records of the Partnership.

 

“Adjusted Capital Account” means, with
respect to any Partner, the balance in such Partner’s Capital Account as of the
end of the relevant Partnership Year or other applicable period, after giving
effect to the following adjustments:

 

(i)               
increase such Capital Account by any amounts
that such Partner is obligated to restore pursuant to this Agreement upon
liquidation of such Partner’s Partnership Interest or that such Person is
deemed to be obligated to restore pursuant to Regulations Section
1.704-1(b)(2)(ii)(c) or the penultimate sentence of each of Regulations
Sections 1.704-2(g) (1) and 1.704-2(i)(5); and

 

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

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

“Adjusted Capital Account Deficit” means,
with respect to any Partner, the deficit balance, if any, in such Partner’s
Adjusted Capital Account as of the end of the relevant Partnership Year or
other applicable period.

 

“Adjusted Net Income” means for each
Partnership Year or other applicable period, an amount equal to the
Partnership’s Net Income or Net Loss for such year or other period (other than
any Net Income or Net Loss or items thereof allocated with respect to such year
or other period prior to the allocation of Adjusted Net Income), computed
without regard to the items set forth below; provided, that if the Adjusted Net
Income for such year or other period is a negative number (i.e., a net loss),
then the Adjusted Net Income for that year or other period shall be treated as
if it were zero:

Page 8 of 128

(i)               
Depreciation; and

 

(ii)             
Net gain or loss realized in connection with the
actual or hypothetical sale of any or all of the assets of the Partnership,
including but not limited to net gain or loss treated as realized in connection
with an adjustment to the Gross Asset Value of the Partnership’s assets as set
forth in the definition of “Gross Asset Value.”

 

“Adjustment Event” has the meaning set
forth in Section 18.3 hereof.

 

“Adjustment Factor” means 1.0; provided,
however, that in the event that:

 (i)               
the General Partner (a) declares or pays a
dividend on its outstanding REIT Shares wholly or partly in REIT Shares or
makes a distribution to all holders of its outstanding REIT Shares wholly or
partly in REIT Shares, (b) splits or subdivides its outstanding REIT Shares or
(c) effects a reverse stock split or otherwise combines its outstanding REIT
Shares into a smaller number of REIT Shares, the Adjustment Factor shall be
adjusted by multiplying the Adjustment Factor previously in effect by a
fraction, (1) the numerator of which shall be the number of REIT Shares issued
and outstanding on the record date for such dividend, distribution, split,
subdivision, reverse split or combination (assuming for such purposes that such
dividend, distribution, split, subdivision, reverse split or combination has
occurred as of such time) and (2) the denominator of which shall be the actual
number of REIT Shares (determined without the above assumption) issued and
outstanding on the record date for such dividend, distribution, split,
subdivision, reverse split or combination;

(ii)             
the General Partner distributes any rights,
options or warrants to all holders of its REIT Shares to subscribe for or to
purchase or to otherwise acquire REIT Shares, or other securities or rights
convertible into, exchangeable for or exercisable for REIT Shares (other than
REIT Shares issuable pursuant to a Qualified DRIP / COPP), at a price per share
less than the Value of a REIT Share on the record date for such distribution
(each a “Distributed Right”), then, as of the distribution date
of such Distributed Rights or, if later, the time such Distributed Rights
become exercisable, the Adjustment Factor shall be adjusted by multiplying the
Adjustment Factor previously in effect by a fraction (a) the numerator of which
shall be the number of REIT Shares issued and outstanding on the record date
(or, if later, the date such Distributed Rights become exercisable) plus the
maximum number of REIT Shares purchasable under such Distributed Rights and (b)
the denominator of which shall be the number of REIT Shares issued and
outstanding on the record date (or, if later, the date such Distributed Rights
become exercisable) plus a fraction (1) the numerator of which is the maximum
number of REIT Shares purchasable under such Distributed Rights times the
minimum purchase price per REIT Share under such Distributed Rights and (2) the
denominator of which is the Value of a REIT Share as of the record date (or, if
later, the date such Distributed Rights become exercisable); provided,
however, that, if any such Distributed Rights expire or become no
longer exercisable, then the Adjustment Factor shall be adjusted, effective
retroactive to the date of distribution of the Distributed Rights (or, if
applicable, the later time that the Distributed Rights became exercisable), to
reflect a reduced maximum number of REIT Shares or any change in the minimum
purchase price for the purposes of the above fraction; and

Page 9 of 128

(iii)           
the General Partner shall, by dividend or
otherwise, distribute to all holders of its REIT Shares evidences of its
indebtedness or assets (including securities, but excluding any dividend or
distribution referred to in subsection (i) or (ii) above), which evidences of
indebtedness or assets relate to assets not received by the General Partner
pursuant to a pro rata distribution by the Partnership, then the Adjustment
Factor shall be adjusted to equal the amount determined by multiplying the
Adjustment Factor in effect immediately prior to the close of business as of
the applicable record date by a fraction (a) the numerator of which shall be
such Value of a REIT Share as of the record date and (b) the denominator of
which shall be the Value of a REIT Share as of the record date less the then
fair market value (as determined by the General Partner, whose determination
shall be conclusive) of the portion of the evidences of indebtedness or assets
so distributed applicable to one REIT Share.

 

Notwithstanding the foregoing, no adjustments to the
Adjustment Factor will be made for any class or series of Limited Partnership
Interests to the extent that the Partnership makes or effects any correlative
distribution or payment to all of the Partners holding Partnership Interests of
such class or series, or effects any correlative split or reverse split in
respect of the Partnership Interests of such class or series. Any adjustments
to the Adjustment Factor shall become effective immediately after such event,
retroactive to the record date, if any, for such event. For illustrative
purposes, examples of adjustments to the Adjustment Factor are set forth on Exhibit
A attached hereto.

 

“Affiliate” means, with respect to any
Person, any Person directly or indirectly controlling or controlled by or under
common control with such Person. For the purposes of this definition, “control”
when used with respect to any Person means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise, and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

 

“Agreement” means this Third Amended and
Restated Limited Partnership Agreement of Mobile Infra Operating Partnership,
L.P., as now or hereafter amended, restated, modified, supplemented or
replaced.

 

“Amended Partnership Agreement” has the
meaning set forth in the Recitals hereof.

 

“Applicable Percentage” means the
proportion of a Tendering Party’s Tendered Common Units that will be acquired
by the General Partner for REIT Shares in accordance with Section 15.1 to the
Tendering Party’s Tendered Common Units.

 

“Appraisal’ means, with respect to any
assets, the written opinion of an independent third party experienced in the
valuation of similar assets, selected by the General Partner in good faith.
Such opinion may be in the form of an opinion by such independent third party
that the value for such property or asset as set by the General Partner is
fair, from a financial point of view, to the Partnership.

Page 10 of 128

“Approval Right Termination Date” means
the first date on which the Specified Limited Partners and any of their
Affiliates (whether or not such Affiliates are or become Limited Partners pursuant
to this Agreement) own less than 9.8% of the aggregate number of REIT Shares
and Common Units acquired by the initial Specified Limited Partner and its
Affiliates on August 26, 2021, pursuant to that certain Equity Purchase and
Contribution Agreement, dated as of January 8, 2021, by and among the General
Partner, the Partnership, the initial Specified Limited Partner, and certain
other persons.

 

“Assignee” means a Person to whom a
Partnership Interest has been Transferred in a manner permitted under this
Agreement, but who has not become a Substituted Limited Partner, and who has
the rights set forth in Section 11.5 hereof.

 

“Assumed Tax Rate” has the meaning set forth
in Section 5.3 hereof.

 

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

 

(i)               
the sum, without duplication, of:

 

(1)             
the Partnership’s Net Income or Net Loss (as the
case may be) for such period,

 

(2)             
Depreciation and all other noncash charges to
the extent deducted in determining Net Income or Net Loss for such period,

 

(3)             
the amount of any reduction in reserves of the
Partnership referred to in clause (ii)(6) below (including, without limitation,
reductions resulting because the General Partner determines such amounts are no
longer necessary),

 

(4)             
the excess, if any, of the net cash proceeds
from the sale, exchange, disposition, financing or refinancing of Partnership
property for such period over the gain (or loss, as the case may be) recognized
from such sale, exchange, disposition, financing or refinancing during such period
(excluding Terminating Capital Transactions), and

 

(5)             
all other cash received (including amounts
previously accrued as Net Income and amounts of deferred income) or any net
amounts borrowed by the Partnership for such period that was not included in
determining Net Income or Net Loss for such period.

 (ii)             
less the sum, without duplication, of:

 

(1)             
all principal debt payments made during such
period by the Partnership,

(2)             
capital expenditures made by the Partnership
during such period,

Page 11 of 128

(3)             
investments in any entity (including loans made
thereto) to the extent that such investments are not otherwise described in
clause (ii)(1) or clause (ii)(2) above,

 

(4)             
all other expenditures and payments not deducted
in determining Net Income or Net Loss for such period (including amounts paid
in respect of expenses previously accrued),

 

(5)             
any amount included in determining Net Income or
Net Loss for such period that was not received by the Partnership during such
period,

 

(6)             
the amount of any increase in reserves
(including, without limitation, working capital reserves) established during
such period that the General Partner determines are necessary or appropriate in
its sole and absolute discretion,

 

(7)             
any amount distributed or paid in redemption of
any Limited Partner Interest or Partnership Units, including, without
limitation, any Cash Amount paid, and

(8)             
the amount of any working capital accounts and
other cash or similar balances that the General Partner determines to be
necessary or appropriate in its sole and absolute discretion. 

Notwithstanding the foregoing, Available Cash shall not
include (a) any cash received or reductions in reserves, or take into account
any disbursements made, or reserves established, after dissolution and the
commencement of the liquidation and winding up of the Partnership or (b) any
Capital Contributions, whenever received or any payments, expenditures or
investments made with such Capital Contributions.

 

“Bipartisan Budget Act” means the
Bipartisan Budget Act of 2015 (P.L. 114-74).

 

“Board of Directors” means the Board of Directors
of the General Partner.

 

“Business Day” means any day except a
Saturday, Sunday or other day on which commercial banks in The City of New
York, New York or Las Vegas, Nevada are authorized by law to close except that,
for purposes of Article 17 and Article 18, the term “Business Day” means any
day, other than a Saturday or a Sunday, which is not a day on which banking
institutions in New York, New York are authorized or required by law,
regulation or executive order to close.

 

“Capital Account” means, with respect to
any Partner, the capital account maintained by the General Partner for such
Partner on the Partnership’s books and records in accordance with the following
provisions:

(i)               
To each Partner’s Capital Account, there shall
be added such Partner’s Capital Contributions, such Partner’s distributive
share of Net Income and any items in the nature of income or gain that are
specially allocated pursuant to Section 6.2.G, 6.2.H, 6.2.I and 6.2.J or
Section 6.3 hereof, and the amount of any Partnership liabilities assumed by
such Partner or that are secured by any property distributed to such Partner.

Page 12 of 128

(ii)             
From each Partner’s Capital Account, there shall
be subtracted the amount of cash and the Gross Asset Value of any Partnership
property distributed to such Partner pursuant to any provision of this
Agreement, such Partner’s distributive share of Net Losses and any items in the
nature of expenses or losses that are specially allocated pursuant Section
6.2.G, 6.2.11, 6.2.I and 6.2.J or Section 6.3 hereof, and the amount of any
liabilities of such Partner assumed by the Partnership or that are secured by
any property contributed by such Partner to the Partnership (except to the
extent already reflected in the amount of such Partner’s Capital Contribution).

 

(iii)           
In the event any interest in the Partnership is
Transferred in accordance with the terms of this Agreement (which Transfer does
not result in the termination of the Partnership for U.S. federal income tax
purposes), the transferee shall succeed to the Capital Account of the
transferor to the extent that it relates to the Transferred interest.

 

(iv)           
In determining the amount of any liability for
purposes of subsections (i) and (ii) hereof, there shall be taken into account
Code Section 752(c) and any other applicable provisions of the Code and
Regulations.

(v)             
The provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Regulations
promulgated under Section 704 of the Code, and shall be interpreted and applied
in a manner consistent with such Regulations. If the General Partner shall
determine that it is necessary or appropriate to modify the manner in which the
Capital Accounts are maintained in order to comply with such Regulations, the
General Partner may make such modification, provided that such modification is
not likely to have any material effect on the amounts distributable to any
Partner pursuant to Article 13 hereof upon the dissolution of the Partnership.
The General Partner may, in its sole discretion, (a) make any adjustments that
are necessary or appropriate to maintain equality between the Capital Accounts
of the Partners and the amount of Partnership capital reflected on the
Partnership’s balance sheet, as computed for book purposes, in accordance with
Regulations Section 1.704-1(b)(2)(iv)(q) and (b) make any modifications that
are necessary or appropriate in the event that unanticipated events might
otherwise cause this Agreement not to comply with Regulations Section
1.704-1(b) or Section 1.704-2.

 

“Capital Account Limitation” means (x) the
Economic Capital Account Balance of such Limited Partner, to the extent
attributable to his or her ownership of LTIP Units or Performance Units, as
applicable, divided by (y) the Common Unit Economic Balance, in each case as
determined as of the effective date of conversion.

 

“Capital Contribution” means, with respect
to any Partner, the amount of money and the initial Gross Asset Value of any
Contributed Property that such Partner contributes or is deemed to contribute
to the Partnership pursuant to Article 4 hereof.

Page 13 of 128

“Capital Share” means a share of any class
or series of stock of the General Partner now or hereafter authorized other
than a REIT Share.

 

“Cash Amount” means an amount of cash
equal to the product of (i) the Value of a REIT Share and (ii) the REIT Shares
Amount determined as of the applicable Valuation Date.

 

“Certificate” means the Certificate of
Limited Partnership of the Partnership filed with the SDAT, as amended from
time to time in accordance with the terms hereof and the Act.

 

“Charity” means an entity described in
Section 501(c)(3) of the Code or any trust all the beneficiaries of which are
such entities.

 

“Charter” means the charter of the General
Partner, within the meaning of Section 1-101(f) of the Maryland General
Corporation Law.

 

“Class A Unit” has the meaning set forth
in Section 20.1 hereof.

 

“Class A Unit Agreement” means the written
agreement between the Partnership and a recipient of Class A Units evidencing
the terms and conditions of such Class A Units.

 

“Closing Price” has the meaning set forth
in the definition of “Value.”

 

“COD Income” has the meaning set forth in
Section 6.2.I hereof.

 

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

 

“Common Equivalent Unit” means a Common Unit,
an LTIP Unit, a Performance Unit or any other unit or fractional, undivided
share of the Partnership Interests that the General Partner has authorized
pursuant to Section 4.1, Section 4.2 or Section 4.3 hereof that is neither a
Preferred Unit nor any other Partnership Unit that is specified in a
Partnership Unit Designation as being other than a Common Equivalent Unit; provided,
however, that the General Partner Interest and the Limited
Partner Interests shall have the differences in rights and privileges as
specified in this Agreement.

 

“Common Limited Partner” means any Limited
Partner that is a Holder of Common Units, including any Substituted Common
Limited Partner, in its capacity as such.

 

“Common Unit” means a fractional,
undivided share of the Partnership Interests of all Partners issued pursuant to
Sections 4.1 and 4.2 hereof, but does not include any Preferred Unit, LTIP
Unit, Performance Unit, Class A Unit or any other Partnership Unit specified in
a Partnership Unit Designation as being other than a Common Unit; provided,
however, that the General Partner Interest and the Limited
Partner Interests shall have the differences in rights and privileges as
specified in this Agreement.

Page 14 of 128

“Common Unit Economic Balance” means (i)
the Capital Account balance of the General Partner, plus the amount of the
General Partner’s share of any Partner Minimum Gain or Partnership Minimum
Gain, in either case to the extent attributable to the General Partner’s
ownership of Common Units and computed on a hypothetical basis after taking
into account all allocations through the date on which any allocation is made
under Section 6.2.F hereof, divided by (ii) the number of the General Partner’s
Common Units.

 

“Common Unit Notice of Redemption” means
the Common Unit Notice of Redemption substantially in the form of Exhibit B
attached to this Agreement.

 

“Compensatory Units” has the meaning set
forth in Section 4.2.B.

 

“Consent” means the consent to, approval
of, or vote in favor of a proposed action by a Partner given in accordance with
Article 14 hereof. The terms “Consented” and “Consenting”
have correlative meanings.

 

“Consent of the Common Limited Partners”
means the Consent of a Majority in Interest of the Common Limited Partners,
which Consent shall be obtained prior to the taking of any action for which it
is required by this Agreement and, except as otherwise provided in this
Agreement, may be given or withheld by each Common Limited Partner in its sole
and absolute discretion.

 

“Consent of the General Partner” means the
Consent of the sole General Partner, which Consent, except as otherwise
specifically required by this Agreement, may be obtained prior to or after the
taking of any action for which it is required by this Agreement and may be
given or withheld by the General Partner in its sole and absolute discretion.

 

“Consent of the Limited Partners” means
the Consent of a Majority in Interest of the Limited Partners, which Consent
shall be obtained prior to the taking of any action for which it is required by
this Agreement and, except as otherwise provided in this Agreement, may be
given or withheld by each Limited Partner in its sole and absolute discretion.

 

“Consent of the Partners” means the
Consent of the General Partner and the Consent of a Majority in Interest of the
Partners, which Consent shall be obtained prior to the taking of any action for
which it is required by this Agreement and, except as otherwise provided in
this Agreement, may be given or withheld by the General Partner or the Limited
Partners in their sole and absolute discretion; provided, however
that if any such action affects only certain classes or series of Partnership
Interests, “Consent of the Partners” means the Consent of the General Partner
and the Consent of a Majority in Interest of Partners of the affected classes
or series of Partnership Interests.

 

“Constituent Person” has the meaning set
forth in Section 18.9.F hereof.

 

“Contributed Property” means each Property
or other asset, in such form as may be permitted by the Act, but excluding
cash, contributed or deemed contributed to the Partnership (or deemed
contributed by the Partnership to a “new” partnership pursuant to Code Section
708).

Page 15 of 128

“Controlled Entity” means, as to any
Partner, (a) any corporation more than fifty percent (50%) of the outstanding
voting stock of which is owned by such Partner or such Partner’s Family Members
or Affiliates, (b) any trust, whether or not revocable, of which such Partner
or such Partner’s Family Members or Affiliates are the sole beneficiaries, (c)
any partnership of which such Partner or its Affiliates are the managing
partners and in which such Partner, such Partner’s Family Members or Affiliates
hold partnership interests representing at least twenty-five percent (25%) of
such partnership’s capital and profits and (d) any limited liability company of
which such Partner or its Affiliates are the managers and in which such
Partner, such Partner’s Family Members or Affiliates hold membership interests
representing at least twenty-five percent (25%) of such limited liability
company’s capital and profits.

 

“Conversion Date” has the meaning set
forth in Section 18.9.B hereof.

 

“Conversion Notice” has the meaning set
forth in Section 18.9.B hereof.

 

“Conversion Right” has the meaning set
forth in Section 18.9.A hereof.

 

“Cut-Off Date” means the fifth (5th)
Business Day after the General Partner’s receipt of a Common Unit Notice of
Redemption.

 

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

 

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

 

“Designated Individual” has the meaning
set forth in Section 10.3.A hereof.

 

“Disregarded Entity” means, with respect
to any Person, (i) any “qualified REIT subsidiary” (within the meaning of Code
Section 856(i)(2)) of such Person, (ii) any entity treated as a disregarded
entity for federal income tax purposes with respect to such Person, or (iii)
any grantor trust if the sole owner of the assets of such trust for federal
income tax purposes is such Person.

Page 16 of 128

“Distributed Right” has the meaning set
forth in the definition of “Adjustment Factor.”

 

“Economic Capital Account Balance” means,
with respect to a Holder of LTIP Units or a Holder of Performance Units, as
applicable, its Capital Account balance, plus the amount of its share of any
Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent
attributable to its ownership of LTIP Units or Performance Units, as
applicable.

 

“Eligible Unit” means, as of the time any
Liquidating Gain is available to be allocated to an LTIP Unit or a Performance
Unit, an LTIP Unit or Performance Unit to the extent, since the date of
issuance of such LTIP Unit or Performance Unit, such Liquidating Gain when
aggregated with other Liquidating Gains realized since the date of issuance of
such LTIP Unit or Performance Unit exceeds Liquidating Losses realized since
the date of issuance of such LTIP Unit or Performance Unit, as applicable.

 

“Equity Plan” means the Plans and any
other option, stock, unit, appreciation right, phantom equity or other
incentive equity or equity-based compensation plan or program, including any
Stock Option Plan, in each case, now or hereafter adopted by the Partnership or
the General Partner, including the Plans.

 

“ERISA” means the Employee Retirement
Income Security Act of 1974, as amended.

 

“Estimated Tax Periods” means the periods
from January 1 to March 31, from April 1 to May 31, from June 1 to August 31,
and from September 1 to December 31, which may be adjusted by the General
Partner to the extent necessary to take into account changes in estimated tax
payment due dates for U.S. federal income taxes under applicable law.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the SEC
promulgated thereunder and any successor statute thereto.

 

“Family Members” means, as to a Person
that is an individual, such Person’s spouse, ancestors, descendants (whether by
blood or by adoption or step-descendants by marriage), brothers and sisters,
nieces and nephews and inter vivos or testamentary trusts (whether revocable or
irrevocable) of which only such Person and his or her spouse, ancestors,
descendants (whether by blood or by adoption or step-descendants by marriage),
brothers and sisters and nieces and nephews are beneficiaries.

 

“Flow-Through Entity” has the meaning set
forth in Section 3.4.0 hereof.

 

“Flow-Through Partners” has the meaning
set forth in Section 3.4.0 hereof.

 

“Forced Conversion” has the meaning set
forth in Section 18.9.0 hereof.

 

“Forced Conversion Notice” has the meaning
set forth in Section 18.9.0 hereof.

 

“Formation Date” has the meaning set forth
in the Recitals hereof.

Page 17 of 128

“Funding Debt” means any Debt incurred by
or on behalf of the General Partner for the purpose of providing funds to the
Partnership.

 

“General Partner” means Mobile
Infrastructure Corporation and its successors and assigns, in each case, that
is admitted from time to time to the Partnership as a general partner pursuant
to the Act and this Agreement, in such Person’s capacity as a general partner
of the Partnership.

 

“General Partner Affiliate” means any
Affiliates of the General Partner, each of which shall be designated as a
“General Partner Affiliate” and shown as such in the books and records of the
Partnership.

 

“General Partner Interest” means the
entire Partnership Interest held by a General Partner hereof, which Partnership
Interest may be expressed as a number of Common Units, Preferred Units or any
other Partnership Units.

 

“General Partner Loan” has the meaning set
forth in Section 4.3.D hereof.

 

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

 

(i)               
The initial Gross Asset Value of any asset
contributed by a Partner to the Partnership shall be the gross fair market
value of such asset on the date of contribution, as determined by the General
Partner and agreed to by the contributing Person.

 

(ii)             
The Gross Asset Values of all Partnership assets
immediately prior to the occurrence of any event described in clauses (1)
through (5) below shall be adjusted to equal their respective gross fair market
values, as determined by the General Partner using such reasonable method of
valuation as it may adopt, as of the following times:

(1)             
the acquisition of an additional interest in the
Partnership (other than in connection with the execution of this Agreement but
including, without limitation, acquisitions pursuant to Section 4.2 hereof or
contributions or deemed contributions by the General Partner pursuant to
Section 4.2 hereof) by a new or existing Partner in exchange for more than a de
minimis Capital Contribution, if the General Partner reasonably determines
that such adjustment is necessary or appropriate to reflect the relative
interests of the Partners in the Partnership;

 

(2)             
the distribution by the Partnership to a Partner
of more than a de minimis amount of Partnership property as
consideration for an interest in the Partnership, if the General Partner
reasonably determines that such adjustment is necessary or appropriate to
reflect the relative interests of the Partners in the Partnership;

(3)             
the liquidation of the Partnership within the
meaning of Regulations Section 1.704-1(b)(2)(ii) (g);

Page 18 of 128

(4)             
the grant of an interest in the Partnership
(other than a de minimis interest) as consideration for the provision of
services to or for the benefit of the Partnership by an existing Partner acting
in a partner capacity, or by a new Partner acting in a partner capacity or in
anticipation of becoming a Partner of the Partnership (including the grant of
an LTIP Unit or a Performance Unit), if the General Partner reasonably
determines that such adjustment is necessary or appropriate to reflect the
relative interests of the Partners in the Partnership; and

 

(5)             
at such other times as the General Partner shall
reasonably determine necessary or advisable in order to comply with Regulations
Sections 1.704-1(b) and 1.704-2.

(iii)           
The Gross Asset Value of any Partnership asset
distributed to a Partner shall be the gross fair market value of such asset on
the date of distribution, as determined by the General Partner.

 

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

 

(v)             
If the Gross Asset Value of a Partnership asset
has been determined or adjusted pursuant to subsection (i), subsection (ii) or
subsection (iv) above, such Gross Asset Value shall thereafter be adjusted by
the Depreciation taken into account with respect to such asset for purposes of
computing Net Income and Net Losses.

 

(vi)           
If any Unvested LTIP Units are forfeited, as
described in Section 18.2.B, or any Unvested Performance Units are forfeited,
as described in Section 19.2.B, then in each case, upon such forfeiture, the
Gross Asset Value of the Partnership’s assets shall be reduced by the amount of
any reduction of such Partner’s Capital Account attributable to the forfeiture
of such LTIP Units or Performance Units, as applicable.

(vii)         
The Gross Asset Values of Partnership assets
shall be adjusted at the times and in the manner provided in Regulations
Section 1.704-1(b)(2)(iv)(s). 

“Hart-Scott-Rodino Ace’ means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

 

“Holder” means either (a) a Partner or (b)
an Assignee owning a Partnership Interest.

 

“Incapacity” or “Incapacitated”
means: (i) as to any Partner who is an individual, death, total physical
disability or entry by a court of competent jurisdiction adjudicating such
Partner incompetent to manage his or her person or his or her estate; (ii) as
to any Partner that is a 

Page 19 of 128

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

 

“Indemnitee” means (i) any Person subject
to a claim or demand, or made a party or threatened to be made a party to a
proceeding, by reason of its status as (a) the General Partner or (b) a
director of the General Partner or an officer or employee of the Partnership or
the General Partner and (ii) such other Persons (including Affiliates of the
General Partner or the Partnership) as the General Partner may designate from
time to time (whether before or after the event giving rise to potential
liability), in its sole and absolute discretion.

 

“Initial Holding Period” means as to any
Qualifying Party or any of their successors-in-interest, a period ending on the
day before the first six-month anniversary of such Qualifying Party’s first
becoming a Holder of Limited Partnership Interests; provided however,
that the General Partner may, in its sole and absolute discretion, by written
agreement with a Qualifying Party, shorten or lengthen the Initial Holding
Period applicable to such Qualifying Party and its successors-in-interest to a
period of shorter or longer than six (6) months. For sake of clarity, (i) as
applied to a Common Unit that is issued upon conversion of an LTIP Unit or a
Performance Unit, pursuant to Section 18.9 or Section 19.9, respectively (and
subject to the proviso in the immediately preceding sentence, if applicable),
the Initial Holding Period of such Common Unit shall end on the day before the
first six-month anniversary of the date that the underlying LTIP Unit or
Performance Unit was first issued and, (ii) as applied to a Common Unit that is
issued upon the exercise of a Class A Unit pursuant to Section 20.9 (and
subject to the proviso in the first sentence of this paragraph, if applicable),
the Initial Holding Period of such Common Unit shall end on the day before the
first six-month anniversary of the date that such Common Unit was issued.

Page 20 of 128

“IRS” means the United States Internal
Revenue Service.

 

“Limited Partner” means any Person that is
admitted from time to time to the Partnership as a limited partner pursuant to
the Act and this Agreement and has not ceased to be a limited partner,
including any Substituted Limited Partner or Additional Limited Partner, in
such Person’s capacity as a limited partner of the Partnership.

 

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

 

“Liquidating Event” has the meaning set
forth in Section 13.1 hereof

 

“Liquidating Gains” means any net gain
realized in connection with the actual or hypothetical sale of all or
substantially all of the assets of the Partnership (including upon the
occurrence of any Liquidating Event or Terminating Capital Transaction),
including but not limited to net gain realized in connection with an adjustment
to the Gross Asset Value of Partnership assets under the definition of Gross
Asset Value in Article 1 of this Agreement.

 

“Liquidating Losses” means any net loss
realized in connection with the actual or hypothetical sale of all or
substantially all of the assets of the Partnership (including upon the
occurrence of any Liquidating Event or Terminating Capital Transaction),
including but not limited to net loss realized in connection with an adjustment
to the Gross Asset Value of Partnership assets under the definition of Gross
Asset Value in Article 1 of this Agreement.

 

“Liquidator” has the meaning set forth in
Section 13.2.A hereof.

 

“LTIP Unit Agreement” means any written
agreement(s) between the Partnership and any recipient of LTIP Units evidencing
the terms and conditions of any LTIP Units, including any vesting, forfeiture
and other terms and conditions as may apply to such LTIP Units, consistent with
the terms hereof and of the Plans (or other applicable Equity Plan governing
such LTIP Units).

 

“LTIP Unit Distribution Payment Date” has
the meaning set forth in Section 18.4.0 hereof.

 

“LTIP Units” means the Partnership Units
designated as such having the rights, powers, privileges, restrictions,
qualifications and limitations set forth herein, in the Plans and under the
applicable LTIP Unit Agreement. LTIP Units can be issued in one or more
classes, or one or more series of any such classes bearing such relationship to
one another as to allocations, distributions, and other rights as the General
Partner shall determine in its sole and absolute discretion subject to Maryland
law and this Agreement.

 

“Majority in Interest of the Common Limited
Partners” means Common Limited Partners (other than any Common Limited
Partner fifty percent (50%) or more of whose equity is owned, directly or
indirectly, by the General Partner) holding in the aggregate Percentage
Interests that are greater than fifty percent (50%) of the aggregate Percentage
Interests of all such Common Limited Partners entitled to Consent to or withhold
Consent from a proposed action.

Page 21 of 128

“Majority in Interest of the Limited Partners”
means Limited Partners (other than any Limited Partner fifty percent (50%) or
more of whose equity is owned, directly or indirectly, by the General Partner)
holding in the aggregate Percentage Interests that are greater than fifty
percent (50%) of the aggregate Percentage Interests of all such Limited
Partners entitled to Consent to or withhold Consent from a proposed action.

 

“Majority in Interest of the Partners”
means Partners holding in the aggregate Percentage Interests that are greater
than fifty percent (50%) of the aggregate Percentage Interests of all Partners
entitled to Consent to or withhold Consent from a proposed action.

 

“Market Price” has the meaning set forth
in the definition of “Value.”

 

“Maryland Courts” has the meaning set
forth in Section 15.9.B hereof.

 

“Net Income” or “Net Loss”
means, for each Partnership Year or other applicable period, an amount equal to
the Partnership’s taxable income or loss for such year or other period,
determined in accordance with Code Section 703(a) (for this purpose, all items
of income, gain, loss or deduction required to be stated separately pursuant to
Code Section 703(a)(1) shall be included in taxable income or loss), with the
following adjustments:

 

(i)               
Any income of the Partnership that is exempt
from federal income tax and not otherwise taken into account in computing Net
Income (or Net Loss) pursuant to this definition of “Net Income” or “Net Loss”
shall be added to (or subtracted from, as the case may be) such taxable income
(or loss);

 

(ii)             
Any expenditure of the Partnership described in
Code Section 705(a)(2)(B) or treated as a Code Section 705(a)(2)(B) expenditure
pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken
into account in computing Net Income (or Net Loss) pursuant to this definition
of “Net Income” or “Net Loss,” shall be subtracted from (or added to, as the
case may be) such taxable income (or loss);

 

(iii)           
In the event the Gross Asset Value of any
Partnership asset is adjusted pursuant to subsection (ii) or subsection (iii)
of the definition of “Gross Asset Value,” the amount of such adjustment shall
be taken into account as gain or loss from the disposition of such asset for
purposes of computing Net Income or Net Loss;

 

(iv)           
Gain or loss resulting from any disposition of
property with respect to which gain or loss is recognized for federal income
tax purposes shall be computed by reference to the Gross Asset Value of the
property disposed of, notwithstanding that the adjusted tax basis of such
property differs from its Gross Asset Value;

 

(v)             
In lieu of the depreciation, amortization and
other cost recovery deductions that would otherwise be taken into account in
computing such taxable income or loss, there shall be taken into account
Depreciation for such Partnership Year or other applicable period;

Page 22 of 128

(vi)           
To the extent that an adjustment to the adjusted
tax basis of any Partnership asset pursuant to Code Section 734(b) or Code
Section 743(b) is required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)
to be taken into account in determining Capital Accounts as a result of a
distribution other than in liquidation of a Partner’s interest in the
Partnership, the amount of such adjustment shall be treated as an item of gain
(if the adjustment increases the basis of the asset) or loss (if the adjustment
decreases the basis of the asset) from the disposition of the asset and shall
be taken into account for purposes of computing Net Income or Net Loss;

 

(vii)         
Notwithstanding any other provision of this
definition of “Net Income” or “Net Loss,” any item that is specially allocated
pursuant to Article 6 hereof shall not be taken into account in computing Net
Income or Net Loss. The amounts of the items of Partnership income, gain, loss
or deduction available to be specially allocated pursuant to Section 6.2.G,
6.2.H, 6.2.I and 6.2.J or Section 6.3 hereof shall be determined by applying
rules analogous to those set forth in this definition of “Net Income” or “Net
Loss;” and

 

(viii)       
To the extent any Adjusted Net Income has been
allocated for a Partnership Year or other applicable period, the terms Net
Income and Net Loss for that year or other period shall thereafter refer to the
remaining items of Net Income or Net Loss, as applicable.

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

 

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

 

“Nonrecourse Liability” has the meaning
set forth in Regulations Sections 1.704-2(b)(3) and 1.752-1(a)(2).

 

“Optionee” means a Person to whom a stock
option is granted under any Stock Option Plan.

 

“Original Partnership Agreement” has the
meaning set forth in the Recitals hereof.

 

“Ownership Limit” means, with respect to
any Person, the applicable restriction or restrictions on the ownership and
transfer of stock of the General Partner imposed under the Charter, as such
restrictions may be modified for any Excepted Holder (as such term is defined
in the Charter) pursuant to an Excepted Holder Limit (as such term is defined
in the Charter).

Page 23 of 128

“Parity Preferred Unit” means any class or
series of Partnership Interests of the Partnership now or hereafter issued and
outstanding, which, by its terms ranks on a parity with the Series A Preferred
Units or Series 1 Preferred Units, as applicable, with respect to distributions
or rights upon voluntary or involuntary liquidation, dissolution or winding up
of the Partnership, or both, as the context may require.

 

“Partner” means the General Partner or a
Limited Partner, and “Partners” means the General Partner and the Limited
Partners.

 

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

 

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

 

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

 

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

 

“Partnership Employee” means an employee
or other service provider of the Partnership or an employee of a Subsidiary of
the Partnership, if any, acting in such capacity.

 

“Partnership Equivalent Units” shall have
the meaning set forth in Section 4.7.A hereof.

 

“Partnership Interest” means an ownership
interest in the Partnership held by either a Limited Partner or a General
Partner and includes any and all benefits to which the holder of such a
Partnership Interest may be entitled as provided in this Agreement, together
with all obligations of such Person to comply with the terms and provisions of
this Agreement. There may be one or more classes or series of Partnership
Interests. A Partnership Interest may be expressed as a number of Common Units,
Preferred Units or other Partnership Units. The Partnership Interests
represented by the Common Units, the Series A Preferred Units and the Series 1
Preferred Units and each such type of Unit is a separate class of Partnership
Interest for purposes of this Agreement.

 

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

 

“Partnership Record Date” means the record
date established by the General Partner for the purpose of determining the
Partners entitled to notice of or to vote at any meeting of Partners or to consent
to any matter, or to receive any distribution or the allotment of any other
rights, or in order to make a determination of Partners for any other proper
purpose, which, in the case of a distribution of Available Cash pursuant to
Section 5.1 hereof, shall generally be the same as the record date established
by the General Partner for a distribution to its stockholders of some or all of
its portion of such distribution or, as applicable, any Series A Distribution
Record Date or Series 1 Distribution Record Date.

Page 24 of 128

“Partnership Representative” shall have
the meaning set forth in Section 10.3.A hereof.

 

“Partnership Unit” means a Common Unit, a
Preferred Unit, an LTIP Unit, a Performance Unit or any other unit or
fractional, undivided share of the Partnership Interests that the General
Partner has authorized pursuant to Section 4.1, Section 4.2 or Section 4.3
hereof. For avoidance of doubt, a Class A Unit does not, itself, constitute a
Partnership Unit.

 

“Partnership Unit Designation” shall have
the meaning set forth in Section 4.2.A hereof.

 

“Partnership Vote” has the meaning set
forth on Section 11.2.E hereof

 

“Partnership Year” has the meaning set
forth in Section 9.2 hereof

 

“Percentage Interest” means, with respect
to each Partner, the fraction, expressed as a percentage, the numerator of
which is the aggregate number of Partnership Units of all classes and series
held by such Partner and the denominator of which is the total number of
Partnership Units of all classes and series held by all Partners; provided,
however, that, to the extent applicable in context, the term
“Percentage Interest” means, with respect to a Partner, the fraction, expressed
as a percentage, the numerator of which is the aggregate number of Partnership
Units of a specified class or series (or specified group of classes and/or
series) held by such Partner and the denominator of which is the total number
of Partnership Units of such specified class or series (or specified group of
classes and/or series) held by all Partners.

 

“Performance Unit Agreement” means any
written agreement(s) between the Partnership and any recipient of Performance
Units evidencing the terms and conditions of any Performance Units, including
any vesting, forfeiture and other terms and conditions as may apply to such
Performance Units, consistent with the terms hereof and of the Plans (or other
applicable Equity Plan governing such Performance Units).

 

“Performance Unit Distribution Payment Date”
has the meaning set forth in Section 19.4.0 hereof. “Performance Unit Sharing
Percentage” means ten percent (10%).

 

“Performance Units” means the Partnership
Units designated as such having the rights, powers, privileges, restrictions,
qualifications and limitations set forth herein, in the Plans and under the
applicable Performance Unit Agreement. Performance Units can be issued in one
or more classes, or one or more series of any such classes bearing such
relationship to one another as to allocations, distributions, and other rights
as the General Partner shall determine in its sole and absolute discretion
subject to Maryland law and this Agreement. For the avoidance of doubt,
Performance Units do not include Class A Units.

 

“Permitted Transfer” has the meaning set forth
in Section 11.3.A hereof.

Page 25 of 128

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

 

“Plans” means Mobile Infrastructure
Corporation Long-Term Incentive Plan and Mobile Infrastructure Corporation
Independent Directors Compensation Plan.

 

“Pledge” has the meaning set forth in
Section 11.3.A hereof.

 

“Preferred Share” means a share of stock
of the General Partner of any class or series now or hereafter authorized or
reclassified that has dividend rights, or rights upon liquidation, winding up
and dissolution, that are superior or prior to the REIT Shares.

 

“Preferred Unit” means a fractional,
undivided share of the Partnership Interests that the General Partner has authorized
pursuant to Section 4.1 or Section 4.2 or Section 4.3 hereof that has
distribution rights, or rights upon liquidation, winding up and dissolution,
that are superior or prior to the Common Units. Preferred Units shall include,
but not be limited to, Series A Preferred Units and Series 1 Preferred Units.
For the avoidance of doubt, Preferred Units do not include Class A Units.

 

“Properties” means any assets and property
of the Partnership such as, but not limited to, interests in real property and
personal property, including, without limitation, fee interests, interests in
ground leases, easements and rights of way, interests in limited liability
companies, joint ventures or partnerships, interests in mortgages, and Debt
instruments as the Partnership may hold from time to time and “Property” means
any one such asset or property.

 

“Proposed Section 83 Safe Harbor Regulation”
has the meaning set forth in Section 18.11 hereof.

 

“Qualified DRIP / COPP” means a dividend
reinvestment plan or a cash option purchase plan of the General Partner that
permits participants to acquire REIT Shares using the proceeds of dividends
paid by the General Partner or cash of the participant, respectively; provided,
however, that if such shares are offered at a discount, such
discount must (i) be designed to pass along to the stockholders of the General
Partner the savings enjoyed by the General Partner in connection with the
avoidance of stock issuance costs, and (ii) not exceed 5% of the value of a
REIT Share as computed under the terms of such plan.

 

“Qualified Transferee” means an
“accredited investor” as defined in Rule 501 promulgated under the Securities
Act.

 

“Qualifying Party” means (a) a Limited
Partner, (b) an Assignee of a Limited Partner, or (c) a Person, including a
lending institution as the pledgee of a Pledge, who is the transferee of a
Limited Partner Interest in a Permitted Transfer; provided, however
that a Qualifying Party shall not include the General Partner.

 

“Redemption” has the meaning set forth in
Section 15.1.A hereof.

 

“Redemption Right” has the meaning set
forth in Section 15.1.A hereto.

Page 26 of 128

“Register” has the meaning set forth in
Section 4.1 hereof.

 

“Registered REIT Share” means any REIT
Share issued by the General Partner pursuant to an effective registration
statement under the Securities Act.

 

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

 

“Regulatory Allocations” has the meaning
set forth in Section 6.3.A(8) hereof.

 

“REIT” means a real estate investment
trust qualifying under Code Section 856.

 

“REIT Partner” means (a) the General
Partner or any Affiliate of the General Partner to the extent such Person has
in place an election to qualify as a REIT and, (b) any Disregarded Entity with
respect to any such Person.

 

“REIT Payment” has the meaning set forth in
Section 15.12 hereof.

 

“REIT Requirements” has the meaning set
forth in Section 5.1 hereof.

 

“REIT Series 1 Preferred Share” means a
share of the Series 1 Cumulative Redeemable Preferred Stock, $0.0001 par value
per share, of the General Partner.

 

“REIT Series A Preferred Share” means a
share of the Series A Cumulative Redeemable Preferred Stock, $0.0001 par value
per share, of the General Partner.

 

“REIT Share” means a share of common stock
of the General Partner, $0.0001 par value per share (but shall not include any
series or class of the General Partner’s common stock classified after the date
of this Agreement).

 

“REIT Shares Amount” means a number of
REIT Shares equal to the product of (a) the number of Tendered Common Units and
(b) the Adjustment Factor; provided, however, that,
in the event that the General Partner issues to all holders of REIT Shares as
of a certain record date rights, options, warrants or convertible or
exchangeable securities entitling the General Partner’s stockholders to
subscribe for or purchase REIT Shares, or any other securities or property
(collectively, the “Rights”), with the record date for such
Rights issuance falling within the period starting on the date of the Common
Unit Notice of Redemption and ending on the day immediately preceding the
Specified Redemption Date, which Rights will not be distributed before the
relevant Specified Redemption Date, then the REIT Shares Amount shall also
include such Rights that a holder of that number of REIT Shares would be
entitled to receive, expressed, where relevant hereunder, in a number of REIT
Shares determined by the General Partner in good faith.

 

“Related Party” means, with respect to any
Person, any other Person to whom ownership of shares of the General Partner’s
stock by the first such Person would be attributed under Code Section 544 (as
modified by Code Section 856(h)(1)(B)) or Code Section 318(a) (as modified by
Code Section 856(d)(5)).

Page 27 of 128

“Restricted Taxable Year” shall mean any
Partnership Year during which the General Partner determines the Partnership
may not satisfy the private placement safe harbor of Regulations Section
1.7704-1(h). Unless the General Partner otherwise notifies the Partners prior
to the commencement of a Partnership Year, each Partnership Year of the Company
shall be a Restricted Taxable Year.

 

“Rights” has the meaning set forth in the
definition of “REIT Shares Amount.”

 

“Safe Harbors” has the meaning set forth
in Section 11.3.0 hereof.

 

“SDAT” means the State Department of
Assessments and Taxation of the State of Maryland.

 

“SEC” means the Securities and Exchange
Commission.

 

“Section 83 Safe Harbor” has the meaning
set forth in Section 18.11 hereof.

 

“Securities Act” means the Securities Act
of 1933, as amended, and the rules and regulations of the SEC promulgated
thereunder.

 

“Senior Preferred Unit” shall mean the
Series A Preferred Units, the Series 1 Preferred Units and any class or series
of Partnership Interests of the Partnership now or hereafter authorized, issued
or outstanding expressly designated by the Partnership to rank on parity with
the Series A Preferred Units and the Series 1 Preferred Units with respect to
distributions and rights upon voluntary or involuntary liquidation, winding up
or dissolution of the Partnership, as the context may require.

 

“Series 1 Distribution Record Date” with
respect to any distribution payable on Series 1 Preferred Units, means the
close of business on the record date fixed for the determination of holders of
record of REIT Series 1 Preferred Shares entitled to receive a distribution on
such REIT Series 1 Preferred Shares.

 

“Series 1 Preferred Shares Terms” means
the terms of the REIT Series 1 Preferred Shares, as set forth in the Articles
Supplementary of the General Partner for the REIT Series 1 Preferred Shares,
accepted for record by the SDAT on March 29, 2017, as such terms may be amended
or restated or incorporated into the Charter from time to time.

 

“Series 1 Preferred Unit Distribution Payment Date”
shall have the meaning set forth in Section 17.2.A hereof.

 

“Series 1 Preferred Unit Initial Accrual Date”
shall have the meaning set forth in Section 17.2.A hereof.

 

“Series 1 Preferred Units” means the
Partnership’s Series 1 Cumulative Redeemable Preferred Units, with the rights,
priorities and preferences set forth herein.

 

“Series 1 Priority Return” shall mean,
with respect to any Series 1 Preferred Unit, an amount equal to 5.50% per annum
on the stated value of $1,000.00 of the Series 1 Preferred Unit (equivalent to
the fixed annual amount of $55.00 per Series 1 Preferred Unit), commencing on
the Series 1 Preferred Unit Initial Accrual Date, subject to adjustment as
specified in Section 17.2.E. For any distribution period greater than or less
than a full distribution period, the amount of the Series 1 Priority Return
shall be prorated and computed on the basis of a 360-day year consisting of
twelve 30-day months.

Page 28 of 128

“Series A Distribution Record Date” with
respect to any distribution payable on Series A Preferred Units, means the
close of business on the record date fixed for the determination of holders of
record of REIT Series A Preferred Shares entitled to receive a distribution on
such REIT Series A Preferred Shares.

 

“Series A Preferred Shares Terms” means
the terms of the REIT Series A Preferred Shares, as set forth in the Articles
Supplementary of the General Partner for the REIT Series A Preferred Shares,
accepted for record by the SDAT on October 27, 2016, as such terms may be
amended or restated or incorporated into the Charter from time to time.

 

“Series A Preferred Unit Distribution Payment Date”
shall have the meaning set forth in Section 16.2.A hereof.

 

“Series A Preferred Unit Initial Accrual Date”
shall have the meaning set forth in Section 16.2.A hereof.

 

“Series A Preferred Units” means the
Partnership’s Series A Cumulative Redeemable Preferred Units, with the rights,
priorities and preferences set forth herein.

 

“Series A Priority Return” shall mean,
with respect to any Series A Preferred Unit, an amount equal to 5.75% per annum
on the stated value of $1,000.00 of the Series A Preferred Unit (equivalent to
the fixed annual amount of $57.50 per Series A Preferred Unit), commencing on
the Series A Preferred Unit Initial Accrual Date, subject to adjustment as
specified in Section 16.2.E. For any distribution period greater than or less
than a full distribution period, the amount of the Series A Priority Return
shall be prorated and computed on the basis of a 360-day year consisting of
twelve 30-day months.

 

“Specified Limited Partner” means Bombe,
Ltd. and any of its Affiliates who are or become a Limited Partner pursuant to
this Agreement.

 

“Special Redemption” has the meaning set
forth in Section 15.1.A hereof.

 

“Specified Redemption Date” means (i) in
the case of a year that is not a Restricted Taxable Year, the tenth (10th)
Business Day after the receipt by the General Partner of a Common Unit Notice
of Redemption or (ii) in the case of a Restricted Taxable Year, the sixty-first
(61) calendar day after the receipt by the General Partner of a Common Unit
Notice of Redemption; provided, however, that no
Specified Redemption Date shall occur during the Initial Holding Period (except
pursuant to a Special Redemption).

 

“Stock Option Plans” means any stock
option plan now or hereafter adopted by the Partnership or the General Partner.

Page 29 of 128

“Stockholder Meeting” means a meeting of
the holders of REIT Shares convened for the purposes of conducting a
Stockholder Vote as contemplated in Section 11.2.E hereof.

 

“Stockholder Vote” has the meaning set
forth on Section 11.2.E hereof.

 

“Stockholder Vote Transaction” has the
meaning set forth on Section 11.2.E hereof.

 

“Subsidiary” means, with respect to any
Person, any corporation or other entity of which a majority of (i) the voting
power of the voting equity securities or (ii) the outstanding equity interests
is owned, directly or indirectly, by such Person; provided, however,
that, with respect to the Partnership, “Subsidiary” means solely a partnership
or limited liability company (taxed, for federal income tax purposes, as a
partnership or as a Disregarded Entity and not as an association or publicly
traded partnership taxable as a corporation) of which the Partnership is a
member or any “taxable REIT subsidiary” of the General Partner in which the
Partnership owns shares of stock, unless the ownership of shares of stock of a
corporation or other entity (other than a “taxable REIT subsidiary”) will not
jeopardize the General Partner’s status as a REIT or any General Partner
Affiliate’s status as a “qualified REIT subsidiary” (within the meaning of Code
Section 856(i)(2)), in which event the term “Subsidiary” shall include such
corporation or other entity.

 

“Substituted Limited Partner” means a
Person who is admitted as a Limited Partner to the Partnership pursuant to the
Act and (i) Section 11.4 hereof or (ii) pursuant to any Partnership Unit
Designation.

 

“Surviving Partnership” has the meaning
set forth in Section 11.2.B(2) hereof.

 

“Tax Distributions” has the meaning set
forth in Section 5.3 hereof.

 

“Tax Distribution Amount” has the meaning
set forth in Section 5.3 hereof.

 

“Tax Distribution Per Common Equivalent Unit”
means, with respect to any Partner that owns one or more Common Equivalent
Units, such Partner’s Tax Distribution Amount divided by the total number of
Common Equivalent Units owned by such Partner.

 

“Tax Items” has the meaning set forth in
Section 6.4.A hereof.

 

“Tendered Common Units” has the meaning
set forth in Section 15.1.A hereof.

 

“Tendering Party” has the meaning set
forth in Section 15.1.A hereof.

 

“Terminating Capital Transaction” means
any sale or other disposition of all or substantially all of the assets of the
Partnership or a related series of transactions that, taken together, result in
the sale or other disposition of all or substantially all of the assets of the
Partnership, in any case, not in the ordinary course of the Partnership’s
business.

 

“Termination Transaction” has the meaning
set forth in Section 11.2.B hereof. “Transaction” has the meaning set forth in
Section 18.9.F hereof.

Page 30 of 128

“Transfer” means any sale, assignment,
bequest, conveyance, devise, gift (outright or in trust), Pledge, encumbrance,
hypothecation, mortgage, exchange, transfer or other disposition or act of
alienation, whether voluntary, involuntary or by operation of law; provided,
however, that when the term is used in Article 11 hereof, except
as otherwise expressly provided, “Transfer” does not include (a) any Redemption
or acquisition of Tendered Common Units by the General Partner, pursuant to
Section 15.1, (b) any conversion of LTIP Units into Common Units pursuant to
Section 18.9 hereof, (c) any conversion of Performance Units into Common Units
pursuant to Section 19.9 hereof, (d) any exercise of Class A Units for Common Units
pursuant to Section 20.9 hereof, or (e) any redemption of Partnership Units
pursuant to any Partnership Unit Designation. The terms “Transferred” and
“Transferring” have correlative meanings.

 

“Units Junior to the Series 1 Preferred Units”
means any Partnership Unit representing any class or series of Partnership
Interest ranking, as to distributions and rights upon voluntary or involuntary
liquidation, dissolution or winding up of the Partnership, junior to Series 1
Preferred Units.

 

“Units Junior to the Series A Preferred Units”
means any Partnership Unit representing any class or series of Partnership
Interest ranking, as to distributions and rights upon voluntary or involuntary
liquidation, dissolution or winding up of the Partnership, junior to Series A
Preferred Units.

 

“Unvested LTIP Units” has the
meaning set forth in Section 18.2.A hereof.

 

“Unvested Performance Units” has
the meaning set forth in Section 19.2.A hereof.

 

“Valuation Date” means (a) in the
case of a Partnership Tax Year that is not a Restricted Taxable Year, the date
of receipt by the General Partner of (i) a Common Unit Notice of Redemption
pursuant to Section 15.1 herein, or (ii) such other date as specified herein; provided,
in each case, that if such date is not a Business Day, then the Valuation Date
shall be the immediately preceding Business Day, and (ii) in the case of a
Partnership Tax Year that is a Restricted Taxable Year, the Specified
Redemption Date.

 

“Value” means, on any Valuation Date with
respect to a REIT Share, the average of the daily Market Prices for ten (10)
consecutive trading days immediately preceding the Valuation Date (except that
the Market Price for the trading day immediately preceding the date of exercise
of a stock option under any Stock Option Plans shall be substituted for such
average of daily market prices for purposes of Section 4.4 hereof). The term
“Market Price” on any date means, with respect to any class or series of
outstanding REIT Shares, the Closing Price for such REIT Shares on such date.
The “Closing Price” on any date means the last sale price for such REIT Shares,
regular way, or, in case no such sale takes place on such day, the average of
the closing bid and asked prices, regular way, for such REIT Shares, in either
case as reported on the principal consolidated transaction reporting system
with respect to securities listed on the principal national securities exchange
on which such REIT Shares are listed or admitted to trading or, if such REIT
Shares are not listed or admitted to trading on any national securities
exchange, the last quoted price, or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by the
National Association of Securities Dealers, Inc. Automated Quotation System or,
if such system is no longer in use, the principal other automated quotation
system that may then be in use or, if such REIT Shares are not quoted by any
such organization, the average of the closing bid and asked prices as furnished
by a professional market maker making a market in such REIT Shares selected by
the Board of Directors or, in the event that no trading price is available for
such REIT Shares, the fair market value of the REIT Shares, as determined in
good faith by the Board of Directors.

Page 31 of 128

In the event that the REIT Shares Amount includes Rights
that a holder of REIT Shares would be entitled to receive, then the Value of
such Rights shall be determined by the General Partner acting in good faith on
the basis of such quotations and other information as it considers, in its
reasonable judgment, appropriate.

 

“Vested LTIP Units” has the meaning
set forth in Section 18.2.A hereof.

 

“Vested Performance Units” has the
meaning set forth in Section 19.2.A hereof.

 

“Vesting Date” has the meaning set
forth in Section 4.4.C(2) hereof.

 

Article
2

ORGANIZATIONAL MATTERS

 

Section 2.1          
Formation.  The Partnership is a limited partnership
heretofore formed and continued pursuant to the provisions of the Act and upon
the terms and subject to the conditions set forth in this Agreement. Except as
expressly provided herein to the contrary, the rights and obligations of the
Partners and the administration and termination of the Partnership shall be
governed by the Act. The Partnership Interest of each Partner shall be personal
property for all purposes.

 

Section 2.2          
Name.  The
name of the Partnership is “Mobile Infra Operating Partnership, L.P.” The
Partnership’s business may be conducted under any other name or names deemed
advisable by the General Partner, including the name of the General Partner or
any Affiliate thereof. The words “Limited Partnership,” “L.P.,” “Ltd.” or
similar words or letters shall be included in the Partnership’s name where
necessary for the purposes of complying with the laws of any jurisdiction that
so requires. The General Partner in its sole and absolute discretion may change
the name of the Partnership at any time and from time to time and shall notify
the Partners of such change in the next regular communication to the Partners.

 

Section 2.3          
Principal Office and Resident Agent; Principal
Executive Office.  The address of the
principal office of the Partnership in the State of Maryland is located at do
CSC-Lawyers Incorporating Service Company, 7 St. Paul Street, Suite 820,
Baltimore, Maryland 21202, or such other place within the State of Maryland as
the General Partner may from time to time designate, and the resident agent of
the Partnership in the State of Maryland is CSC-Lawyers Incorporating Service
Company, 7 St. Paul Street, Suite 820, Baltimore, Maryland 21202, or such other
resident of the State of Maryland as the General Partner may from time to time
designate. The principal executive office of the Partnership is located at 250
East Fifth Street, Suite 2110, Cincinnati, Ohio 45202 or such other place as
the General Partner may from time to time designate by notice to the Limited
Partners. The Partnership may maintain offices at such other place or places
within or outside the State of Maryland as the General Partner may from time to
time designate.

Page 32 of 128

Section 2.4          
Power of Attorney. 

 

A.                 
Each Limited Partner and Assignee hereby
irrevocably constitutes and appoints the General Partner, any Liquidator, and
authorized officers and attorneys-in-fact of each, and each of those acting
singly, in each case with full power of substitution, as its true and lawful
agent and attorney-in-fact, with full power and authority in its name, place
and stead to:

 

(1)             
execute, swear to, seal, acknowledge, deliver,
file and record in the appropriate public offices: (a) all certificates,
documents and other instruments (including, without limitation, this Agreement
and the Certificate and all amendments, supplements or restatements thereof)
that the General Partner or the Liquidator deems appropriate or necessary to
form, qualify or continue the existence or qualification of the Partnership as
a limited partnership (or a partnership in which the limited partners have
limited liability to the extent provided by applicable law) in the State of
Maryland and in all other jurisdictions in which the Partnership may conduct
business or own property; (b) all instruments that the General Partner or any
Liquidator deems appropriate or necessary to reflect any amendment, change,
modification or restatement of this Agreement in accordance with its terms; (c)
all conveyances and other instruments or documents that the General Partner or
the Liquidator deems appropriate or necessary to reflect the dissolution and
liquidation of the Partnership pursuant to the terms of this Agreement,
including, without limitation, a certificate of cancellation; (d) all
conveyances and other instruments or documents that the General Partner or the
Liquidator deems appropriate or necessary to reflect the distribution or
exchange of assets of the Partnership pursuant to the terms of this Agreement;
(e) all instruments relating to the admission, acceptance, withdrawal, removal
or substitution of any Partner pursuant to the terms of this Agreement or the
Capital Contribution of any Partner; and (f) all certificates, documents and
other instruments relating to the determination, in accordance with the terms
hereof, of the rights, preferences and privileges relating to Partnership
Interests; and

 

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

 

Nothing contained herein shall be construed as
authorizing the General Partner or any Liquidator to amend this Agreement
except in accordance with Section 14.2 hereof or as may be otherwise expressly
provided for in this Agreement.

 

B.                 
The foregoing power of attorney is hereby
declared to be irrevocable and a special power coupled with an interest, in
recognition of the fact that each of the Limited Partners and Assignees will be
relying upon the power of the General Partner or the Liquidator to act as
contemplated by this Agreement in any filing or other action by it on behalf of
the Partnership, and it shall survive and not be affected by the subsequent
Incapacity of any Limited Partner or 

Page 33 of 128

Assignee and the Transfer of all or any
portion of such Person’s Partnership Interest and shall extend to such Person’s
heirs, successors, assigns and personal representatives. Each such Limited
Partner and Assignee hereby agrees to be bound by any representation made by
the General Partner or the Liquidator, acting in good faith pursuant to such
power of attorney; and each such Limited Partner and Assignee hereby waives any
and all defenses that may be available to contest, negate or disaffirm the
action of the General Partner or the Liquidator, taken in good faith under such
power of attorney. Each Limited Partner and Assignee shall execute and deliver
to the General Partner or the Liquidator, within fifteen (15) days after
receipt of the General Partner’s or the Liquidator’s request therefor, such
further designation, powers of attorney and other instruments as the General
Partner or the Liquidator (as the case may be) deems necessary to effectuate
this Agreement and the purposes of the Partnership. Notwithstanding anything
else set forth in this Section 2.4.B, no Limited Partner shall incur any
personal liability for any action of the General Partner or the Liquidator
taken under such power of attorney.

Section 2.5          
Term.  The
term of the Partnership commenced on the Formation Date, and shall continue
indefinitely unless the Partnership is dissolved sooner pursuant to the
provisions of Article 13 hereof or as otherwise provided by law.

 Section 2.6          
Partnership Interests Are Securities.  All Partnership Interests shall be securities
within the meaning of, and governed by, (i) Article 8 of the Maryland Uniform
Commercial Code and (ii) Article 8 of the Uniform Commercial Code of any other
applicable jurisdiction.

 

Article
3

PURPOSE

 

Section 3.1          
Purpose and Business. 

 

A.                 
The purpose and nature of the Partnership is to
conduct any business, enterprise or activity permitted by or under the Act,
including, without limitation, (i) to conduct the business of ownership,
construction, reconstruction, development, redevelopment, alteration,
improvement, maintenance, operation, sale, leasing, transfer, encumbrance,
conveyance and exchange of the Properties, (ii) to acquire and invest in any
securities and/or loans relating to the Properties, (iii) to enter into any
partnership, joint venture, business trust arrangement, limited liability
company or other similar arrangement to engage in any business permitted by or
under the Act, or to own interests in any entity engaged in any business
permitted by or under the Act, (iv) to conduct the business of providing
property and asset management and brokerage services, whether directly or
through one or more partnerships, joint ventures, Subsidiaries, business
trusts, limited liability companies or similar arrangements, and (v) to do
anything necessary or incidental to the foregoing.

 

Section 3.2          
Powers. 

 

A.                 
The Partnership shall be empowered to do any and
all acts and things necessary, appropriate, proper, advisable, incidental to or
convenient for the furtherance and accomplishment of the purposes and business
described herein and for the protection and benefit of the Partnership
including, without limitation, full power and authority, directly or through
its ownership interest in other entities, to enter into, perform and carry out
contracts of any kind, to borrow and lend money and to issue evidence of
indebtedness, whether or not secured by mortgage, deed of trust, pledge or
other lien, acquire, own, manage, improve and develop real property and lease,
sell, transfer and dispose of real property.

Page 34 of 128

B.                 
Notwithstanding any other provision in this
Agreement, the Partnership shall not take, or to refrain from taking, any
action that, in the judgment of the General Partner, in its sole and absolute
discretion, (i) could adversely affect the ability of the General Partner to
continue to or once again qualify as a REIT (it being understood that such
requirement shall not apply for the taxable year ending December 31, 2020 and
for any subsequent taxable year unless and until General Partner is
realistically able to re-qualify as a REIT), (ii) could subject the General
Partner to any taxes under Code Section 857 or Code Section 4981 or any other
related or successor provision under the Code, or (iii) could violate any law
or regulation of any governmental body or agency having jurisdiction over the
General Partner, its securities or the Partnership, unless, in any such case,
such action (or inaction) under clause (i), clause (ii), or clause (iii) above
shall have been specifically consented to by the General Partner which consent
may be given or withheld in its sole and absolute discretion.

 

Section 3.3          
Partnership Only for Purposes Specified.  The Partnership shall be a limited partnership
formed pursuant to the Act, and this Agreement shall not be deemed to create a
company, venture or partnership between or among the Partners or any other
Persons with respect to any activities whatsoever other than the activities
within the purposes of the Partnership as specified in Section 3.1 hereof;
however, to the extent applicable, the Partnership is a “partnership at will”
(and is not a partnership formed for a definite term or particular undertaking)
within the meaning of the Act. Except as otherwise provided in this Agreement,
no Partner shall have any authority to act for, bind, commit or assume any
obligation or responsibility on behalf of the Partnership, its properties or
any other Partner. No Partner, in its capacity as a Partner under this
Agreement, shall be responsible or liable for any indebtedness or obligation of
another Partner, nor shall the Partnership be responsible or liable for any
indebtedness or obligation of any Partner, incurred either before or after the
execution and delivery of this Agreement by such Partner, except as to those
responsibilities, liabilities, indebtedness or obligations incurred pursuant to
and as limited by the terms of this Agreement and the Act.

 

Section 3.4          
Representations and Warranties by the Partners. 

 

A.                 
Each Partner that is an individual (including,
without limitation, each Additional Limited Partner or Substituted Limited
Partner as a condition to becoming an Additional Limited Partner or a
Substituted Limited Partner) represents and warrants to, and covenants with,
each other Partner that (i) the consummation of the transactions contemplated
by this Agreement to be performed by such Partner will not result in a breach
or violation of, or a default under, any material agreement by which such
Partner or any of such Partner’s property is bound, or any statute, regulation,
order or other law to which such Partner is subject, (ii) if five percent (5%)
or more (by value) of the Partnership’s interests are or will be owned by such
Partner within the meaning of Code Section 7704(d)(3), such Partner does not,
and for so long as it is a Partner will not, own, directly or indirectly, (a)
stock of any corporation that is a tenant of (I) the General Partner or any
Disregarded Entity with respect to the General Partner, (II) the Partnership or
(III) any partnership, venture or limited liability company of which the
General Partner, any Disregarded Entity with respect to the General Partner, or
the Partnership is a direct or indirect member or (b) an interest in the assets
or net profits of any non-corporate tenant of (I) the General 

Page 35 of 128

Partner or any
Disregarded Entity with respect to the General Partner, (II) the Partnership or
(III) any partnership, venture, or limited liability company of which the
General Partner, any Disregarded Entity with respect to the General Partner, or
the Partnership is a direct or indirect member, (iii) such Partner has the
legal capacity to enter into this Agreement and perform such Partner’s
obligations hereunder, and (iv) this Agreement is binding upon, and enforceable
against, such Partner in accordance with its terms. Notwithstanding the
foregoing, a Partner that is an individual shall not be subject to the ownership
restrictions set forth in clause (ii) of the immediately preceding sentence to
the extent such Partner obtains the written Consent of the General Partner
prior to violating any such restrictions, which consent the General Partner may
give or withhold in its sole and absolute discretion. Each Partner that is an
individual shall also represent and warrant to the Partnership that such
Partner is neither a “foreign person” within the meaning of Code Section
1445(f) nor a foreign partner within the meaning of Code Section 1446(e).

 B.                 
Each Partner that is not an individual
(including, without limitation, each Additional Limited Partner or Substituted
Limited Partner as a condition to becoming an Additional Limited Partner or a
Substituted Limited Partner) represents and warrants to, and covenants with,
each other Partner that (i) all transactions contemplated by this Agreement to
be performed by it have been duly authorized by all necessary action,
including, without limitation, that of its general partner(s), committee(s),
trustee(s), beneficiaries, directors and/or stockholder(s) (as the case may be)
as required, (ii) the consummation of such transactions shall not result in a
breach or violation of, or a default under, its partnership or operating
agreement, trust agreement, charter or bylaws (as the case may be), any
material agreement by which such Partner or any of such Partner’s properties or
any of its partners, members, beneficiaries, trustees or stockholders (as the
case may be) is or are bound, or any statute, regulation, order or other law to
which such Partner or any of its partners, members, trustees, beneficiaries or
stockholders (as the case may be) is or are subject, (iii) if five percent (5%)
or more (by value) of the Partnership’s interests are or will be owned by such
Partner within the meaning of Code Section 7704(d)(3), such Partner does not,
and for so long as it is a Partner will not, own, directly or indirectly, (a)
stock of any corporation that is a tenant of (I) the General Partner or any Disregarded
Entity with respect to the General Partner, (II) the Partnership or (III) any
partnership, venture or limited liability company of which the General Partner,
any Disregarded Entity with respect to the General Partner, or the Partnership
is a direct or indirect member or (b) an interest in the assets or net profits
of any non-corporate tenant of (I) the General Partner, or any Disregarded
Entity with respect to the General Partner, (II) the Partnership or (III) any
partnership, venture or limited liability company for which the General
Partner, any Disregarded Entity with respect to the General Partner, or the
Partnership is a direct or indirect member, and (iv) this Agreement is binding
upon, and enforceable against, such Partner in accordance with its terms.
Notwithstanding the foregoing, a Partner that is not an individual shall not be
subject to the ownership restrictions set forth in clause (iii) of the
immediately preceding sentence to the extent such Partner obtains the written
Consent of the General Partner prior to violating any such restrictions, which
consent the General Partner may give or withhold in its sole and absolute
discretion. Each Partner that is not an individual shall also represent and
warrant to the Partnership that such Partner is neither a “foreign person”
within the meaning of Code Section 1445(f) nor a foreign partner within the
meaning of Code Section 1446(e).

Page 36 of 128

C.                 
Each Partner (including, without limitation,
each Additional Limited Partner or Substituted Limited Partner as a condition
to becoming an Additional Limited Partner or Substituted Limited Partner)
represents, warrants and agrees that (i) it has acquired and continues to hold
its interest in the Partnership for its own account for investment purposes
only and not for the purpose of, or with a view toward, the resale or
distribution of all or any part thereof in violation of applicable laws, and
not with a view toward selling or otherwise distributing such interest or any
part thereof at any particular time or under any predetermined circumstances in
violation of applicable laws, (ii) it is a sophisticated investor, able and
accustomed to handling sophisticated financial matters for itself, particularly
real estate investments, and that it has a sufficiently high net worth that it
does not anticipate a need for the funds that it has invested in the
Partnership in what it understands to be a highly speculative and illiquid
investment, and (iii) without the consent of the General Partner, which consent
may be given or withheld in the General Partner’s sole discretion, it shall not
take any action that would cause (a) the Partnership at any time to have more
than 100 partners, including for these purposes as partners those Persons (“Flow-Through
Partners”) indirectly owning an interest in the Partnership through an
entity treated as a partnership, Disregarded Entity or S corporation (each such
entity, a “Flow-Through Entity”), but only if substantially all
of the value of such Person’s interest in the Flow-Through Entity is attributable
to the Flow-Through Entity’s interest (direct or indirect) in the Partnership;
or (b) the Partnership Interest initially issued by the Partnership to such
Partner or its predecessors to be held by more than three (3) partners,
including as partners any Flow-Through Partners.

 

D.                
The representations and warranties contained in
Sections 3.4.A, 3.4.B and 3.4.0 hereof shall survive the execution and delivery
of this Agreement by each Partner (and, in the case of an Additional Limited
Partner or a Substituted Limited Partner, the admission of such Additional
Limited Partner or Substituted Limited Partner as a Limited Partner in the
Partnership) and the dissolution, liquidation and termination of the
Partnership.

 

E.                 
Each Partner (including, without limitation, each
Additional Limited Partner or Substituted Limited Partner as a condition to
becoming an Additional Limited Partner or Substituted Limited Partner) hereby
acknowledges that no representations as to potential profit, cash flows, funds
from operations or yield, if any, in respect of the Partnership or the General
Partner have been made by any Partner or any employee or representative or
Affiliate of any Partner, and that projections and any other information,
including, without limitation, financial and descriptive information and
documentation, that may have been in any manner submitted to such Partner shall
not constitute any representation or warranty of any kind or nature, express or
implied.

 

F.                 
Notwithstanding the foregoing, the General
Partner may, in its sole and absolute discretion, permit the modification of
any of the representations and warranties contained in Sections 3.4.A, 3.4.B
and 3.4.0 above as applicable to any Partner (including, without limitation any
Additional Limited Partner or Substituted Limited Partner or any transferee of
either), provided that such representations and warranties, as modified, shall
be set forth in either (i) a Partnership Unit Designation applicable to the
Partnership Units held by such Partner or (ii) a separate writing addressed to
the Partnership and the General Partner.

Page 37 of 128

Article
4

CAPITAL CONTRIBUTIONS

 

Section 4.1          
Capital Contributions of the Partners.  The Partners have heretofore made Capital
Contributions to the Partnership. Except as provided by law or in Section 4.2,
4.3, or 10.4 hereof, the Partners shall have no obligation or, except with the
prior Consent of the General Partner, right to make any additional Capital
Contributions or loans to the Partnership. The General Partner shall cause to
be maintained in the principal business office of the Partnership, or such
other place as may be determined by the General Partner, the books and records
of the Partnership, which shall include, among other things, a register
containing the name, address, and number, class and series of Partnership Units
of each Partner, and such other information as the General Partner may deem
necessary or desirable (the “Register”). The Register shall not
be part of this Agreement. The General Partner shall from time to time update
the Register as necessary to accurately reflect the information therein,
including as a result of any sales, exchanges or other Transfers, or any
redemptions, issuances or similar events involving Partnership Units. Any
reference in this Agreement to the Register shall be deemed a reference to the
Register as in effect from time to time. Subject to the terms of this
Agreement, the General Partner may take any action authorized hereunder in
respect of the Register without any need to obtain the consent or approval of
any other Partner. No action of any Limited Partner shall be required to amend
or update the Register. Except as required by law, no Limited Partner shall be
entitled to receive a copy of the information set forth in the Register
relating to any Partner other than itself.

 

Section 4.2          
Issuances of Additional Partnership Interests.  Subject to the rights of any Holder of any
Partnership Interest set forth in a Partnership Unit Designation:

 

A.                 
General. The General Partner is hereby
authorized to cause the Partnership to issue additional Partnership Interests,
in the form of Partnership Units, for any Partnership purpose, at any time or
from time to time, to the Partners (including the General Partner) or to other
Persons, and to admit such Persons as Additional Limited Partners, for such consideration
and on such terms and conditions as shall be established by the General Partner
in its sole and absolute discretion, all without the approval of any Limited
Partner or any other Person. Without limiting the foregoing, the General
Partner is expressly authorized to cause the Partnership to issue Partnership
Units: (i) upon the conversion, redemption or exchange of any Debt, Partnership
Units, or other securities issued by the Partnership; (ii) for less than fair
market value, (iii) for no consideration, (iv) in connection with any merger of
any other Person into the Partnership or (v) upon contribution of property or
assets to the Partnership. Any additional Partnership Interests may be issued
in one or more classes, or one or more series of any of such classes, with such
designations, preferences, conversion or other rights, voting powers or rights,
restrictions, limitations as to distributions, qualifications or terms or
conditions of redemption (including, without limitation, terms that may be senior
or otherwise entitled to preference over existing Partnership Units) as shall
be determined by the General Partner, in its sole and absolute discretion
without the approval of any Limited Partner or any other Person, and set forth
in a written document thereafter attached to and made an exhibit to this
Agreement, which exhibit 

Page 38 of 128

shall be an amendment to this Agreement and shall be
incorporated herein by this reference (each, a “Partnership Unit
Designation”), without the approval of any Limited Partner or any other
Person. Without limiting the generality of the foregoing, the General Partner
shall have authority to specify: (a) the allocations of items of Partnership
income, gain, loss, deduction and credit to each such class or series of
Partnership Interests; (b) the right of each such class or series of
Partnership Interests to share (on a pari passu, junior or preferred
basis) in Partnership distributions; (c) the rights of each such class or
series of Partnership Interests upon dissolution and liquidation of the
Partnership; (d) the voting rights, if any, of each such class or series of
Partnership Interests; and (e) the conversion, redemption or exchange rights
applicable to each such class or series of Partnership Interests. Except as
expressly set forth in any Partnership Unit Designation or as may otherwise be
required under the Act, a Partnership Interest of any class or series other
than a Common Unit shall not entitle the holder thereof to vote on, or consent
to, any matter. Upon the issuance of any additional Partnership Interest, the
General Partner shall update the Register and the books and records of the
Partnership as appropriate to reflect such issuance.

B.                 
Issuances of Compensatory Units. Without
limiting the generality of the foregoing, the General Partner is hereby
authorized to create one or more classes or series of additional Partnership
Interests, in the form of Partnership Units (each such class or series of
Partnership Interests is referred to as “Compensatory Units”),
including, without limitation, LTIP Units and Performance Units, for issuance
at any time or from time to time to directors, officers or employees of the
General Partner or any Affiliate of the foregoing, and to admit such Persons as
Additional Limited Partners or General Partners, for such consideration and on
such terms and conditions as shall be established by the General Partner, all
without approval of any Limited Partner or any other Person. The General
Partner shall determine, in its sole and absolute discretion without the
approval of any Limited Partner or any other Person, and set forth in a
Partnership Unit Designation, the designations, preferences, conversion or
other rights, voting powers or rights, restrictions, limitations as to
dividends or distributions, qualifications or terms or conditions of redemption
of any class or series of Compensatory Units (including, without limitation,
the extent to which the value or number of each such class or series of
Compensatory Units is subject to adjustment based on the financial performance
of the General Partner). Upon the issuance of any class or series of
Compensatory Units, the General Partner shall amend the Partnership Agreement,
including the Register and the books and records of the Partnership as
appropriate to reflect such issuance.

 

C.                 
Issuances to the General Partner. No
additional Partnership Units shall be issued to the General Partner unless (i)
the additional Partnership Units are issued to all Partners holding Common
Units in proportion to their respective Percentage Interests in Common Units,
(ii) (a) the additional Partnership Units are (x) Common Units issued in
connection with an issuance of REIT Shares, or (y) Partnership Equivalent Units
(other than Common Units) issued in connection with an issuance of Preferred
Shares, New Securities or other interests in the General Partner (other than
REIT Shares), and (b) the General Partner contributes to the Partnership the
cash proceeds or other consideration received in connection with the issuance
of such REIT Shares, Preferred Shares, New Securities or other interests in the
General Partner, (iii) the additional Partnership Units are issued upon the
conversion, redemption or exchange of Debt, Partnership Units or other
securities issued by the Partnership, or (iv) the additional Partnership Units
are issued pursuant to Section 4.3.B, Section 4.3.E, Section 4.4 or Section
4.5.

Page 39 of 128

D.                
No Preemptive Rights. Except as expressly
specified in this Agreement or any Partnership Unit Designation, no Person,
including, without limitation, any Partner or Assignee, shall have any
preemptive, preferential, participation or similar right or rights to subscribe
for or acquire any Partnership Interest.

 

Section 4.3          
Additional Funds and Capital Contributions. 

 

A.                 
General. The General Partner may, at any
time and from time to time, determine that the Partnership requires additional
funds (“Additional Funds”) for the acquisition or development of
additional Properties, for the redemption of Partnership Units or for such
other purposes as the General Partner may determine, in its sole and absolute
discretion. Additional Funds may be obtained by the Partnership, at the
election of the General Partner, in any manner provided in, and in accordance
with, the terms of this Section 4.3 without the approval of any Limited Partner
or any other Person.

 

B.                 
Additional Capital Contributions. The
General Partner, on behalf of the Partnership, may obtain any Additional Funds
by accepting Capital Contributions from any Partners or other Persons. In
connection with any such Capital Contribution (of cash or property), the
General Partner is hereby authorized to cause the Partnership from time to time
to issue additional Partnership Units (as set forth in Section 4.2 above) in
consideration therefor and the Percentage Interests of the General Partner and
the Limited Partners shall be adjusted to reflect the issuance of such
additional Partnership Units.

 

C.                 
Loans by Third Parties. The General Partner, on
behalf of the Partnership, may obtain any Additional Funds by causing the
Partnership to incur Debt to any Person (other than the General Partner (but,
for this purpose, disregarding any Debt that may be deemed incurred to the
General Partner by virtue of clause (iii) of the definition of Debt)) upon such
terms as the General Partner determines appropriate, including making such Debt
convertible, redeemable or exchangeable for Partnership Units or REIT Shares; provided,
however, that the Partnership shall not incur any such Debt if
any Partner would be personally liable for the repayment of such Debt (unless
such Partner otherwise agrees).

 

D.                
General Partner Loans. The General
Partner, on behalf of the Partnership, may obtain any Additional Funds by
causing the Partnership to incur Debt to the General Partner (a “General
Partner Loan”) if (i) such Debt is, to the extent permitted by law, on
substantially the same terms and conditions (including interest rate, repayment
schedule, and conversion, redemption, repurchase and exchange rights) as
Funding Debt incurred by the General Partner, the net proceeds of which are
loaned to the Partnership to provide such Additional Funds, or (ii) such Debt
is on terms and conditions no less favorable to the Partnership than would be
available to the Partnership from any third party; provided, however,
that the Partnership shall not incur any such Debt if (a) any Partner (or any
Affiliate, partner, member, stockholder, principal, director, officer, adviser,
beneficiary or trustee of any Partner) would be personally liable for the
repayment of such Debt (unless such Partner or other affected Person otherwise
agrees in writing) or (b) a breach or violation of, or default under, the terms
of such Debt would be deemed to occur by virtue of the Transfer of any
Partnership Units or Partnership Interest held by any Person other than the
General Partner.

Page 40 of 128

E.                 
Issuance of Securities by the General Partner.
The General Partner shall not issue any additional REIT Shares, Capital Shares
or New Securities unless the General Partner contributes the cash proceeds or
other consideration received from the issuance of such additional REIT Shares,
Capital Shares or New Securities (as the case may be) and from the exercise of
the rights contained in any such additional Capital Shares or New Securities to
the Partnership in exchange for (x) in the case of an issuance of REIT Shares,
Common Units, or (y) in the case of an issuance of Capital Shares or New
Securities, Partnership Equivalent Units; provided, however,
that notwithstanding the foregoing, the General Partner may issue REIT Shares,
Capital Shares or New Securities (a) pursuant to Section 4.4 or Section 15.1.B
hereof, (b) pursuant to a dividend or distribution (including any stock split)
of REIT Shares, Capital Shares or New Securities to all of the holders of REIT
Shares, Capital Shares or New Securities (as the case may be), (c) upon a
conversion, redemption or exchange of Capital Shares, (d) upon a conversion,
redemption, exchange or exercise of New Securities, or (e) in connection with
an acquisition of Partnership Units or a property or other asset to be owned,
directly or indirectly, by the General Partner. In the event of any issuance of
additional REIT Shares, Capital Shares or New Securities by the General
Partner, and the contribution to the Partnership, by the General Partner, of
the cash proceeds or other consideration received from such issuance (or
property acquired with such proceeds), if any, if the cash proceeds actually
received by the General Partner are less than the gross proceeds of such
issuance as a result of any underwriter’s discount or other expenses paid or
incurred in connection with such issuance, then the General Partner shall be
deemed to have made a Capital Contribution to the Partnership in the amount
equal to the sum of the cash proceeds of such issuance plus the amount of such
underwriter’s discount and other expenses paid by the General Partner (which
discount and expense shall be treated as an expense for the benefit of the
Partnership for purposes of Section 7.4). In the event that the General Partner
issues any additional REIT Shares, Capital Shares or New Securities and
contributes the cash proceeds or other consideration received from the issuance
thereof to the Partnership, the Partnership is expressly authorized to issue a
number of Common Units or Partnership Equivalent Units to the General Partner
equal to the number of REIT Shares, Capital Shares or New Securities so issued,
divided by the Adjustment Factor then in effect, in accordance with this
Section 4.3.E without any further act, approval or vote of any Partner or any
other Persons. 

 

Section 4.4          
Stock Option Plans and Equity Plans; Warrants 

 

A.                 
Options Granted to Persons other than
Partnership Employees. If at any time or from time to time, in connection with
any Stock Option Plan, a stock option granted for stock in the General Partner
to a Person other than a Partnership Employee is duly exercised:

 

(1)             
The General Partner, shall, as soon as
practicable after such exercise, make a Capital Contribution to the Partnership
in an amount equal to the exercise price paid to the General Partner by such
exercising party in connection with the exercise of such stock option.

 

(2)             
Notwithstanding the amount of the Capital
Contribution actually made pursuant to Section 4.4.A(1) hereof, the General
Partner shall be deemed to have contributed to the Partnership as a Capital
Contribution, in lieu of the Capital Contribution actually made and in
consideration of an additional Limited Partner Interest (expressed in and as
additional Common Units), an amount equal to the Value of a REIT Share as of
the date of exercise multiplied by the number of REIT Shares then being issued
in connection with the exercise of such stock option.

Page 41 of 128

(3)             
An equitable Percentage Interest adjustment
shall be made in which the General Partner shall be treated as having made a
cash contribution equal to the amount described in Section 4.4.A(2) hereof.

 

B.                 
Options Granted to Partnership Employees.
If at any time or from time to time, in connection with any Stock Option Plan,
a stock option granted for stock in the General Partner to a Partnership
Employee is duly exercised:

 

(1)             
The General Partner shall sell to the Optionee,
and the Optionee shall purchase from the General Partner, for a cash price per
share equal to the Value of a REIT Share at the time of the exercise, the
number of REIT Shares equal to (a) the exercise price payable by the Optionee
in connection with the exercise of such stock option divided by (b) the Value
of a REIT Share at the time of such exercise.

 

(2)             
The General Partner shall sell to the
Partnership (or if the Optionee is an employee or other service provider of a
Partnership Subsidiary, the General Partner shall sell to such Partnership
Subsidiary), and the Partnership (or such subsidiary, as applicable) shall
purchase from the General Partner, a number of REIT Shares equal to (a) the
number of REIT Shares as to which such stock option is being exercised less (b)
the number of REIT Shares sold pursuant to Section 4.4.B(1) hereof. The
purchase price per REIT Share for such sale of REIT Shares to the Partnership
(or such subsidiary) shall be the Value of a REIT Share as of the date of
exercise of such stock option.

 

(3)             
The Partnership shall transfer to the Optionee
(or if the Optionee is an employee or other service provider of a Partnership
Subsidiary, the Partnership Subsidiary shall transfer to the Optionee) at no
additional cost, as additional compensation, the number of REIT Shares
described in Section 4.4.B(2) hereof.

 

(4)             
The General Partner shall, as soon as
practicable after such exercise, make a Capital Contribution to the Partnership
of an amount equal to all proceeds received (from whatever source, but
excluding any payment in respect of payroll taxes or other withholdings) by the
General Partner in connection with the exercise of such stock option. An
equitable Percentage Interest adjustment shall be made as a result of such
contribution.

 

C.                 
Restricted Stock Granted to Persons other
than Partnership Employees. If at any time or from time to time, in
connection with any Equity Plan (other than a Stock Option Plan), any REIT
Shares are issued to a Person other than a Partnership Employee in
consideration for services performed for the General Partner:

 

(1)             
The General Partner shall issue such number of
REIT Shares as are to be issued to such Person in accordance with the Equity
Plan; and

Page 42 of 128

(2)             
On the date (such date, the “Vesting Date”)
that the Value of such shares is includible in taxable income of such Person,
the following events will be deemed to have occurred: (a) the General Partner
shall be deemed to have contributed the Value of such REIT Shares to the
Partnership as a Capital Contribution, and (b) the Partnership shall issue to
the General Partner on the Vesting Date a number of Common Units equal to the
number of newly issued REIT Shares divided by the Adjustment Factor then in
effect.

 

D.                
Restricted Stock Granted to Partnership
Employees. If at any time or from time to time, in connection with any
Equity Plan (other than a Stock Option Plan), any REIT Shares are issued to a
Partnership Employee (including any REIT Shares that are subject to forfeiture
in the event such Partnership Employee terminates his employment by the
Partnership or the Partnership Subsidiaries) in consideration for services
performed for the Partnership or the Partnership Subsidiaries:

 

(1)             
The General Partner shall issue such number of
REIT Shares as are to be issued to the Partnership Employee in accordance with
the Equity Plan;

 

(2)             
On the Vesting Date, the following events will
be deemed to have occurred: (a) the General Partner shall be deemed to have
sold such shares to the Partnership (or if the Partnership Employee is an
employee or other service provider of a Partnership Subsidiary, to such
Partnership Subsidiary) for a purchase price equal to the Value of such shares,
(b) the Partnership (or such Partnership Subsidiary) shall be deemed to have
delivered the shares to the Partnership Employee, (c) the General Partner shall
be deemed to have contributed the purchase price to the Partnership as a
Capital Contribution, and (d) in the case where the Partnership Employee is an
employee of a Partnership Subsidiary, the Partnership shall be deemed to have
contributed such amount to the capital of the Partnership Subsidiary; and

 

(3)             
The Partnership shall issue to the General
Partner on the Vesting Date a number of Common Units equal to the number of
newly issued REIT Shares divided by the Adjustment Factor then in effect in
consideration for the Capital Contribution described in Section 4.4.D(2)(c)
above.

 

E.                 
Future Stock Incentive Plans. Nothing in
this Agreement shall be construed or applied to preclude or restrain the
General Partner from adopting, modifying or terminating stock incentive plans
for the benefit of employees, directors or other business associates of the
General Partner, the Partnership or any of their Affiliates or from issuing
REIT Shares, Capital Shares or New Securities pursuant to any such plans. The
General Partner may implement such plans and any actions taken under such plans
(such as the grant or exercise of options to acquire REIT Shares, or the
issuance of restricted REIT Shares), whether taken with respect to or by an
employee or other service provider of the General Partner, the Partnership or
its Subsidiaries, in a manner determined by the General Partner, which may be
set forth in plan implementation guidelines that the General Partner may
establish or amend from time to time. The Partners acknowledge and agree that,
in the event that any such plan is adopted, modified or terminated by the
General Partner, or for any other reason as determined by the General Partner,
amendments to this Agreement may become necessary or advisable, any approval or
Consent to 

Page 43 of 128

any such amendments requested by the General Partner shall be deemed
granted by the Limited Partners. The Partnership is expressly authorized to
issue Partnership Units (i) in accordance with the terms of any such stock
incentive plans, or (ii) in an amount equal to the number of REIT Shares,
Capital Shares or New Securities issued pursuant to any such stock incentive
plans, without any further act, approval or vote of any Partner or any other
Persons.

F.                 
Warrants. If at any time or from time to
time a warrant granted for stock in the General Partner is duly exercised:

 

(1)             
The General Partner, shall, as soon as
practicable after such exercise, make a Capital Contribution to the Partnership
in an amount equal to the exercise price paid to the General Partner by such
exercising party in connection with the exercise of such warrant.

 

(2)             
Notwithstanding the amount of the Capital
Contribution actually made pursuant to Section 4.4.F(1) hereof, the General
Partner shall be deemed to have contributed to the Partnership as a Capital
Contribution, in lieu of the Capital Contribution actually made and in
consideration of an additional Limited Partner Interest (expressed in and as
additional Common Units), an amount equal to the Value of a REIT Share as of
the date of exercise multiplied by the number of REIT Shares then being issued
in connection with the exercise of such warrant.

 

(3)             
An equitable Percentage Interest adjustment
shall be made in which the General Partner shall be treated as having made a
cash contribution equal to the amount described in Section 4.4.F(2) hereof.

 

Section 4.5          
Dividend Reinvestment Plan, Cash Option Purchase
Plan, Stock Incentive Plan or Other Plan.  Except as may otherwise be provided in this
Article 4, all amounts received or deemed received by the General Partner in
respect of any dividend reinvestment plan, cash option purchase plan, stock
incentive or other stock or subscription plan or agreement, either (a) shall be
utilized by the General Partner to effect open market purchases of REIT Shares,
or (b) if the General Partner elects instead to issue new REIT Shares with
respect to such amounts, shall be contributed by the General Partner to the
Partnership in exchange for additional Common Units. Upon such contribution,
the Partnership will issue to the General Partner a number of Common Units
equal to the quotient of (i) the number of new REIT Shares so issued divided by
(ii) Adjustment Factor then in effect.

 

Section 4.6          
No Interest; No Return.  No Partner shall be entitled to interest on
its Capital Contribution or on such Partner’s Capital Account. Except as
provided herein or by law, no Partner shall have any right to demand or receive
the return of its Capital Contribution from the Partnership.

 

Section 4.7          
Conversion or Redemption of Capital Shares. 

 

A.                 
Conversion of Capital Shares. If, at any
time, any of the Capital Shares are converted into REIT Shares, in whole or in
part, then a number of Partnership Units with preferences, conversion and other
rights, restrictions (other than restrictions on transfer), rights 

Page 44 of 128

and
limitations as to dividends and other distributions and qualifications that are
substantially the same as the preferences, conversion and other rights,
restrictions (other than restrictions on transfer), rights and limitations as
to distributions and qualifications as those of such Capital Shares (“Partnership
Equivalent Units”) (for the avoidance of doubt, Partnership Equivalent
Units need not have voting rights, redemption rights or restrictions on
transfer that are substantially similar to the corresponding Capital Shares)
equal to the number of Capital Shares so converted shall automatically be
converted into a number of Common Units equal to the quotient of (i) the number
of REIT Shares issued upon such conversion divided by (ii) the Adjustment
Factor then in effect, and the Percentage Interests of the General Partner and
the Limited Partners shall be adjusted to reflect such conversion.

 

B.                 
Redemption or Repurchase of Capital Shares or
REIT Shares. Except as otherwise provided in Section 7.4.C, if, at any
time, any Capital Shares are redeemed or otherwise repurchased (whether by
exercise of a put or call, automatically or by means of another arrangement) by
the General Partner, the Partnership shall, immediately prior to such
redemption or repurchase of Capital Shares, redeem an equal number of
Partnership Equivalent Units held by the General Partner upon the same terms
and for the same price per Partnership Equivalent Unit as such Capital Shares
are redeemed or repurchased. If, at any time, any REIT Shares are redeemed or
otherwise repurchased by the General Partner, the Partnership shall,
immediately prior to such redemption or repurchase of REIT Shares, redeem or
repurchase a number of Common Units held by the General Partner equal to the
quotient of (i) the REIT Shares so redeemed or repurchased, divided by (ii) the
Adjustment Factor then in effect, such redemption or repurchase to be upon the
same terms and for the same price per Common Unit (after giving effect to
application of the Adjustment Factor) as such REIT Shares are redeemed or
repurchased. Notwithstanding the foregoing, the provisions of this Section
4.7.B shall not apply in the event that such repurchase of REIT Shares is
paired with a stock split or stock dividend such that after giving effect to
such repurchase and subsequent stock split or stock dividend there shall be
outstanding an equal number of REIT Shares as were outstanding prior to such
repurchase and subsequent stock split or stock dividend.

 

Section 4.8          
Other Contribution Provisions.  In the event that any Partner is admitted to
the Partnership and is given a Capital Account in exchange for services
rendered to the Partnership, such transaction shall be treated by the
Partnership and the affected Partner as if the Partnership had compensated such
partner in cash and such Partner had contributed the cash that the Partner
would have received to the capital of the Partnership. In addition, with the
Consent of the General Partner, one or more Partners may enter into
contribution agreements with the Partnership which have the effect of providing
a guarantee of certain obligations of the Partnership (and/or a wholly owned
Subsidiary of the Partnership).

 

Article
5

DISTRIBUTIONS

 

Section 5.1          
Requirement and Characterization of
Distributions.  Subject to the terms of
Sections 16.2 and 17.2 and/or the rights of any Holder of any Partnership Interest
set forth in a Partnership Unit Designation, the General Partner may cause the
Partnership to distribute such amounts, at such times, as the General Partner
may, in its sole and absolute discretion, determine, to the Holders as of any
Partnership Record Date:

Page 45 of 128

A.                 
First, with respect to any Partnership
Units that are entitled to any preference in distribution, in accordance with
the rights of such class(es) of Partnership Units (and, within such class(es),
among the Holders pro rata in proportion to their respective Percentage
Interests in each class of Partnership Units held on such Partnership Record
Date); and

 

B.                 
Second, with respect to any Partnership
Units that are not entitled to any preference in distribution, in accordance
with the rights of such class of Partnership Units, as applicable (and, within
such class, among the Holders pro rata in proportion to their respective
Percentage Interests in such class of Partnership Units held on such
Partnership Record Date).

 

Distributions payable with respect to any Partnership
Units that were not outstanding during the entire quarterly period in respect
of which any distribution is made, other than any Partnership Units issued to
the General Partner in connection with the issuance of REIT Shares or Capital Shares
by the General Partner, shall be prorated based on the portion of the period
that such Partnership Units were outstanding. The General Partner shall make
such reasonable efforts, as determined by it in its sole and absolute
discretion and consistent with the General Partner’s qualification as a REIT,
to cause the Partnership to distribute sufficient amounts to enable the General
Partner, for so long as the General Partner has determined to qualify as a
REIT, to pay stockholder dividends that will (a) satisfy the requirements for
qualifying as a REIT under the Code and Regulations (the “REIT
Requirements”) (it being understood that the requirement of this
Section 5.1.B(a) shall not apply for the taxable year ending December 31, 2020
and for any subsequent taxable year unless and until General Partner is
realistically able to re-qualify as a REIT) and (b) except to the extent
otherwise determined by the General Partner, eliminate any federal income or
excise tax liability of the General Partner. Notwithstanding anything in the
foregoing to the contrary, (i) a Holder of LTIP Units will only be entitled to
distributions with respect to an LTIP Unit as set forth in Article 18 hereof
and (ii) a Holder of Performance Units will be entitled to distributions with respect
to a Performance Unit as set forth in Article 19 hereof, and, in each case, in
making distributions pursuant to this Section 5.1, the General Partner of the
Partnership shall take into account the provisions of Section 18.4 hereof and
19.4 hereof, as applicable.

 

Section 5.2          
Distributions in Kind.  Except as expressly provided herein, no right
is given to any Holder to demand and receive property other than cash as
provided in this Agreement. The General Partner may determine, in its sole and
absolute discretion, to make a distribution in kind of Partnership assets to
the Holders, and such assets shall be distributed in such a fashion as to
ensure that the fair market value is distributed and allocated in accordance
with Articles 5, 6 and 13 hereof; provided, however,
that the General Partner shall not make a distribution in kind to any Holder
unless the Holder has been given 90 days prior written notice of such
distribution.

 

Section 5.3          
Tax Distributions.  The General Partner shall cause the
Partnership to make distributions to each Partner holding Common Equivalent
Units (“Tax Distributions”), pro rata in proportion to the
Partners’ respective ownership of Common Equivalent Units, in an amount such
that the Partner with the highest Tax Distribution Per Common Equivalent Unit receives
an amount equal to such Partner’s Tax Distribution Amount, on a quarterly basis
at least five (5) days prior to the date on which any estimated tax payments
are due, in order to permit each Partner to timely pay its estimated tax
obligations for each such Estimated Tax Period (or 

Page 46 of 128

portion thereof). The “Tax
Distribution Amount” for a Partner for an Estimated Tax Period (or
portion thereof) shall be equal to the sum (a) the product of (i) the highest
marginal combined federal, state, and local income tax rate applicable to an
individual or corporation resident in New York, New York, or San Francisco,
California, whichever is higher, (after giving effect to income tax deductions
(if allowable) for state and local income taxes and excluding, for this purpose,
any reduction in rate attributable to Section 199A of the Code) for such
Estimated Tax Period (or portion thereof) (the “Assumed Tax Rate”),
and (ii) the aggregate amount of taxable income or gain of the Partnership that
is allocated or is estimated to be allocated to such Partner for U.S. federal
income tax purposes (including, for the avoidance of doubt, any income
allocation to a Partner with respect to Preferred Units held by such Partner)
for such Estimated Tax Period (or portion thereof) and all prior Estimated Tax
Periods (to the extent no Tax Distribution has previously been made with
respect to any amounts of taxable income or gain including to the extent such
amounts of taxable income or gain were not taken into account in calculating
the Tax Distribution Amount for which a Tax Distribution was previously made
(e.g. if upon filing the Partnership’s final tax return for the applicable
taxable year taxable income or gain of the Partnership is higher than
estimated)) reduced, but not below zero, by any tax deduction, loss, or credit
previously allocated to such Partner and not previously taken into account for
purposes of the calculation of the amount of any Tax Distribution Amount, plus
(b) solely with respect to the General Partner, to the extent the amounts
described in clause (a) are not sufficient to permit the General Partner to
timely pay the income and other tax liabilities for which it remains
responsible under Section 7.4.B (final sentence), any incremental amount
required to permit the General Partner to timely pay such actual tax
liabilities (with all Tax Distribution Amounts updated to reflect the final
Partnership tax returns and General Partner tax returns for each applicable
taxable year). The General Partner may adjust the Assumed Tax Rate as it
reasonably determines is necessary to take into account the effect of any
changes in applicable tax law. Tax Distribution Amounts pursuant to this
Section 5.3 shall be computed without regard to the effect of any special basis
adjustments or resulting adjustments to taxable income made pursuant to
Sections 734(b), 743(b), and 754 of the Code. Notwithstanding the foregoing, final
Tax Distributions in respect of the applicable quarterly period (or portion
thereof) shall be made immediately prior to and in connection with any
distributions made pursuant to Section 5.5 below. The Assumed Tax Rate shall be
the same for all Partners, regardless of the actual combined income tax rate of
the Partner or its direct or indirect owners. The General Partner shall make,
in its reasonable discretion, equitable adjustments (downward (but not below
zero) or upward) to the Partners’ Tax Distributions (but in any event pro rata
in proportion to the Partners’ respective number of Common Equivalent Units) to
take into account increases or decreases in the number of Partnership Units
held by each Partner during the relevant period. All Tax Distributions shall be
treated for all purposes under this Agreement as advances against, and shall
offset and reduce dollar-for-dollar, current or subsequent distributions under
Section 5.1 in respect of Common Equivalent Units.

 

Section 5.4          
Amounts Withheld.  All amounts withheld pursuant to the Code or
any provisions of any state, local or non-United States tax law and Section
10.4 hereof with respect to any allocation, payment or distribution to any
Holder shall be treated as amounts paid or distributed to such Holder pursuant
to Section 5.1 hereof for all purposes under this Agreement.

 

Section 5.5          
Distributions Upon Liquidation.  Notwithstanding the other provisions of this
Article 5, net proceeds from a Terminating Capital Transaction, and any other
amounts distributed after the occurrence of a Liquidating Event, shall be
distributed to the Holders in accordance with Section 13.2 hereof.

Page 47 of 128

Section 5.6          
Distributions to Reflect Additional Partnership
Units.  In the event that the Partnership
issues additional Partnership Units pursuant to the provisions of Article 4
hereof, subject to the rights of any Holder of any Partnership Interest set
forth in a Partnership Unit Designation, the General Partner is hereby
authorized to make such revisions to this Article 5 and to Articles 6, 11 and
12 hereof as it determines are necessary or desirable to reflect the issuance
of such additional Partnership Units, including, without limitation, making
preferential distributions to Holders of certain classes of Partnership Units.

 

Section 5.7          
Restricted Distributions.  Notwithstanding any provision to the contrary
contained in this Agreement, neither the Partnership nor the General Partner,
on behalf of the Partnership, shall make a distribution to any Holder if such
distribution would violate the Act or other applicable law.

 

Article
6

ALLOCATIONS

 

Section 6.1          
Timing and Amount of Allocations of Net Income
and Net Loss.  Net Income and Net Loss of
the Partnership shall be determined and allocated with respect to each
Partnership Year as of the end of each such year, provided, that the General
Partner may in its discretion allocate Net Income and Net Loss for a shorter
period as of the end of such period (and, for purposes of this Article 6,
references to the term “Partnership Year” may include such shorter periods).
Except to the extent otherwise provided in this Article 6, and subject to
Section 11.6.0 hereof, an allocation to a Holder of a share of Net Income or
Net Loss shall be treated as an allocation of the same share of each item of
income, gain, loss or deduction that is taken into account in computing Net
Income or Net Loss.

 

Section 6.2          
Allocations of Net Income and Net Loss. 

 

A.                 
In General. Except as otherwise provided
in this Article 6 and Section 11.6.C, Net Income and Net Loss allocable with
respect to a class of Partnership Interests shall be allocated to each of the
Holders holding such class of Partnership Interests in accordance with their
respective Percentage Interest of such class.

 

B.                 
Net Income. Except as provided in
Sections 6.2.E, 6.2.F, 6.2.G, 6.2.I and 6.3, Net Income (or in the case of
clause (4) below, Adjusted Net Income) for any Partnership Year shall be
allocated in the following manner and order of priority:

 

(1)             
First, 100% to the General Partner in an
amount equal to the remainder, if any, of the cumulative Net Losses allocated
to the General Partner pursuant to clause (4) in Section 6.2.0 for all prior
Partnership Years minus the cumulative Net Income allocated to the
General Partner pursuant to this clause (1) for all prior Partnership Years;

 

(2)             
Second, 100% to each Holder in an amount
equal to the remainder, if any, of the cumulative Net Losses allocated to each
such Holder pursuant to clause (3) in Section 6.2.0 for all prior Partnership
Years minus the cumulative Net Income allocated to such Holder pursuant
to this clause (2) for all prior Partnership Years;

Page 48 of 128

(3)             
Third, 100% to the Holders of Senior
Preferred Units in an amount equal to (A) with respect to each Holder of Series
A Preferred Units, the remainder, if any, of the cumulative Net Losses
allocated to such Holder pursuant to clause (2)(A) in Section 6.2.0 for all
prior Partnership Years minus the cumulative Net Income allocated to
such Holder pursuant to this clause (3)(A) for all prior Partnership Years and
(B) with respect to each Holder of Series 1 Preferred Units, the remainder, if
any, of the cumulative Net Losses allocated to such Holder pursuant to clause
(2)(B) in Section 6.2.0 for all prior Partnership Years minus the cumulative
Net Income allocated to such Holder pursuant to this clause (3)(B) for all
prior Partnership Years;

 

(4)             
Fourth, any remaining Adjusted Net Income
(or Net Income to the extent there is insufficient Adjusted Net Income) to the
Holders of Senior Preferred Units in an amount equal to (A) with respect to
Holders of Series A Preferred Units the excess of the cumulative Series A
Priority Return to the last day of the current Partnership Year or to the date
of redemption, to the extent Series A Preferred Units are redeemed during such
year, over the cumulative Adjusted Net Income (or Net Income) allocated to the
Holders of such units pursuant to this clause (4)(A) for all prior Partnership
Years and (B) with respect to Holders of Series 1 Preferred Units the excess of
the cumulative Series 1 Priority Return to the last day of the current
Partnership Year or to the date of redemption, to the extent Series 1 Preferred
Units are redeemed during such year, over the cumulative Adjusted Net Income
(or Net Income) allocated to the Holders of such units pursuant to this clause
(4)(B) for all prior Partnership Years; and

 

(5)             
Fifth, 100% to the Holders of Common
Units in accordance with their respective Percentage Interests in the Common
Units.

 

To the extent the allocations of Net Income set forth
above in any paragraph of this Section 6.2.B are not sufficient to entirely satisfy
the allocation set forth in such paragraph, such allocation shall be made in
proportion to the total amount that would have been allocated pursuant to such
paragraph without regard to such shortfall.

 

C.                 
Net Loss. Except as provided in Sections
6.2.E, 6.2.F, 6.2.G, 6.2.I and 6.3, Net Losses for any Partnership Year shall
be allocated in the following manner and order of priority:

 

(1)             
First, 100% to the Holders of Common
Units in accordance with their respective Percentage Interests in the Common
Units (to the extent consistent with this clause (1)) until the Adjusted
Capital Account (ignoring for this purpose any amounts a Holder is obligated to
contribute to the capital of the Partnership or is deemed obligated to restore
pursuant to Regulations Section 1.704-1(b)(2)(ii)(c)(2) and ignoring the
portion of any such Holder’s Capital Account attributable to Series A Preferred
Units or Series 1 Preferred Units) of all such Holders is zero;

 

(2)             
Second, 100% to the Holders of Senior
Preferred Units (A) with respect to each Holder of Series A Preferred Units,
pro rata to each such Holder’s Adjusted Capital Account (ignoring for this
purpose any amounts a Holder is obligated to contribute to the capital of the
Partnership or is deemed obligated to restore pursuant to Regulations Section
1.704-1(b)(2)(ii)(c)(2)), until the Adjusted Capital Account (as so modified)
of each such Holder is zero and (B) with respect to each Holder of Series 1
Preferred Units, pro rata to each such Holder’s Adjusted Capital Account
(ignoring for this purpose any amounts a Holder is obligated to contribute to
the capital of the Partnership or is deemed obligated to restore pursuant to
Regulations Section 1.704-1(b)(2)(ii)(c)(2)), until the Adjusted Capital
Account (as so modified) of each such Holder is zero;

Page 49 of 128

(3)             
Third, 100% to the Holders (other than
the General Partner) to the extent of, and in proportion to, the positive
balance (if any) in their Adjusted Capital Accounts; and

 

(4)             
Fourth, 100% to the General Partner.

 

D.                
Allocations to Reflect Issuance of Additional
Partnership Interests. In the event that the Partnership issues additional
Partnership Interests to the General Partner or any Additional Limited Partner
pursuant to Section 4.2 or 4.3, the General Partner shall make such revisions
to this Section 6.2 or to Section 12.2.0 or 13.2.A as it determines are
necessary to reflect the terms of the issuance of such additional Partnership Interests,
including making preferential allocations to certain classes of Partnership
Interests, subject to Article 16 and Article 17 below and the terms of any
Partnership Unit Designation with respect to Partnership Interests then
outstanding.

 

E.                 
Special Allocations Regarding Preferred Units.
Subject to Sections 6.2.G and 6.3, if any Preferred Units are redeemed pursuant
to Section 4.7.B hereof (treating a full liquidation of the General Partner’s
General Partner Interest for purposes of this Section 6.2.E as including a
redemption of any then outstanding Preferred Units pursuant to Section 4.7.B
hereof), for the Partnership Year that includes such redemption (and, if
necessary, for subsequent Partnership Years) (a) gross income and gain (in such
relative proportions as the General Partner in its discretion shall determine)
shall be allocated to the holder(s) of such Preferred Units to the extent that
the redemption amounts paid or payable with respect to the Preferred Units so
redeemed (or treated as redeemed) exceed the aggregate Capital Account balances
allocable to the Preferred Units so redeemed (or treated as redeemed) and (b)
deductions and losses (in such relative proportions as the General Partner in
its discretion shall determine) shall be allocated to the holder(s) of such
Preferred Units to the extent that the aggregate Capital Account balances
allocable to the Preferred Units so redeemed (or treated as redeemed) exceeds
the redemption amount paid or payable with respect to the Preferred Units so redeemed
(or treated as redeemed).

 

F.                 
Special Allocations with Respect to Eligible
Units. Subject to Section 6.2.E, in the event that Liquidating Gains are
allocated under this Section 6.2.F, Net Income allocable under Section 6.2.B
and any Net Losses allocable under Section 6.2.0 shall be recomputed without
regard to the Liquidating Gains so allocated. After giving effect to the
special allocations set forth in Section 6.3.A hereof, and notwithstanding the
provisions of Sections 6.2.B and 6.2.0 above, any Liquidating Gains shall first
be allocated to the Holders of Eligible Units until the Economic Capital
Account Balances of such Holders, to the extent attributable to their ownership
of Eligible Units, are equal to (i) the Common Unit Economic Balance, multiplied
by (ii) the number of their Eligible Units. Any such allocations shall be made
among the Holders of Eligible Units in proportion to the amounts required to be
allocated to each under this Section 6.2.F. The parties agree that the intent
of this Section 6.2.F is to make the Capital Account balances of the Holders of
LTIP Units and Performance Units with respect to their LTIP Units or
Performance Units, as applicable, economically equivalent to the Capital
Account balance of the General Partner with respect to its Common Units (on a
per unit basis), but only to the extent that, at the time any Liquidating Gain
is to be allocated, the Partnership has recognized cumulative net gains with
respect to its assets since the issuance of the LTIP Unit or Performance Unit,
as applicable.

Page 50 of 128

G.                 
Special Allocations Upon Liquidation.
Notwithstanding any provision in this Article 6 to the contrary but subject to
Section 6.3, in the event that the Partnership disposes of all or substantially
all of its assets in a transaction that will lead to a liquidation of the
Partnership pursuant to Article 13 hereof, then: (i) any Liquidating Gains
shall first be allocated in accordance with Section 6.2.F; and (ii) any Net
Income or Net Loss realized in connection with such transaction and thereafter
(recomputed without regard to the Liquidating Gains allocated pursuant to
clause (i) above) shall be specially allocated for such Partnership Year (and
to the extent permitted by Section 761(c) of the Code, for the immediately
preceding Partnership Year) among the Holders as required so as to cause
liquidating distributions pursuant to Section 13.2.A hereof to be made in the
same amounts and proportions as would have resulted had such distributions
instead been made pursuant to Article 5 hereof. If there is an adjustment to
the Gross Asset Value of the assets of the Partnership pursuant to subsection
(ii) of the definition of Gross Asset Value, allocations of Net Income or Net
Loss arising from such adjustment shall be allocated in the same manner as
described in the prior sentence.

 

H.                
Offsetting Allocations. Notwithstanding
the provisions of Sections 6.1, 6.2.B and 6.2.C, but subject to Sections 6.3
and 6.4, in the event Net Income or items thereof are being allocated to a
Partner to offset prior Net Loss or items thereof which have been allocated to
such Partner, the General Partner shall attempt to allocate such offsetting Net
Income or items thereof which are of the same or similar character (including
without limitation Section 704(b) book items versus tax items) to the original
allocations with respect to such Partner.

 

I.                   
CODI Allocations. Notwithstanding
anything to the contrary contained herein, if any indebtedness of the
Partnership encumbering the Properties contributed to the Partnership in connection
with the General Partner’s initial offering is settled or paid off at a
discount, any resulting COD Income of the Partnership shall be specially
allocated proportionately (as determined by the General Partner) to those
Holders that were partners in entities that contributed, or were deemed to
contribute, the applicable Property to the Partnership in connection with such
initial offering to the extent the number of Partnership Units received by such
Holders in exchange for their interests in such entities was determined, in
part, by taking into account the anticipated discounted settlement or pay-off
of such indebtedness. For purposes of the foregoing, “COD Income”
shall mean income recognized by the Partnership pursuant to Code Section
61(a)(12).

 

J.                   
Notwithstanding Section 6.2.F or 6.3.A(i), the
allocations under such sections shall be made only if and to the extent such
allocations will not alter the amounts otherwise allocable with respect to the
Series A Preferred Units or the Series 1 Preferred Units, as applicable, under
Sections 6.2 and 6.3, as determined by the General Partner.

Page 51 of 128

Section 6.3          
Additional Allocation Provisions.  Notwithstanding the foregoing provisions of
this Article 6:

 

A.                 
Regulatory Allocations.

 

(1)             
Minimum Gain Chargeback. Except as
otherwise provided in Regulations Section 1.704-2(f), notwithstanding the
provisions of Section 6.2 hereof, or any other provision of this Article 6, if
there is a net decrease in Partnership Minimum Gain during any Partnership
Year, each Holder shall be specially allocated items of Partnership income and
gain for such year (and, if necessary, subsequent years) in an amount equal to
such Holder’s share of the net decrease in Partnership Minimum Gain, as
determined under Regulations Section 1.704-2(g). Allocations pursuant to the
previous sentence shall be made in proportion to the respective amounts
required to be allocated to each Holder pursuant thereto. The items to be
allocated shall be determined in accordance with Regulations Sections
1.704-2(f)(6) and 1.704-2(j)(2). This Section 6.3.A(i) is intended to qualify
as a “minimum gain chargeback” within the meaning of Regulations Section
1.7042(f) and shall be interpreted consistently therewith.

 

(2)             
Partner Minimum Gain Chargeback. Except
as otherwise provided in Regulations Section 1.704-2(i)(4) or in Section
6.3.A(1) hereof, if there is a net decrease in Partner Minimum Gain
attributable to a Partner Nonrecourse Debt during any Partnership Year, each
Holder who has a share of the Partner Minimum Gain attributable to such Partner
Nonrecourse Debt, determined in accordance with Regulations Section
1.704-2(i)(5), shall be specially allocated items of Partnership income and
gain for such year (and, if necessary, subsequent years) in an amount equal to
such Holder’s share of the net decrease in Partner Minimum Gain attributable to
such Partner Nonrecourse Debt, determined in accordance with Regulations
Section 1.704-2(i)(4). Allocations pursuant to the previous sentence shall be
made in proportion to the respective amounts required to be allocated to each
Holder pursuant thereto. The items to be so allocated shall be determined in
accordance with Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This
Section 6.3.A(2) is intended to qualify as a “chargeback of partner nonrecourse
debt minimum gain” within the meaning of Regulations Section 1.704-2(i) and
shall be interpreted consistently therewith.

 

(3)             
Nonrecourse Deductions and Partner
Nonrecourse Deductions. Any Nonrecourse Deductions for any Partnership Year
shall be specially allocated to the Holders in accordance with their respective
Percentage Interests. Any Partner Nonrecourse Deductions for any Partnership
Year shall be specially allocated to the Holder(s) who bears the economic risk
of loss with respect to the Partner Nonrecourse Debt to which such Partner
Nonrecourse Deductions are attributable, in accordance with Regulations Section
1.704-2(i).

 

(4)             
Qualified Income Offset. If any Holder
unexpectedly receives an adjustment, allocation or distribution described in
Regulations Section 1.704-

Page 52 of 128

1(b)(2)(ii)(d)(4), (5) or (6), items of Partnership
income and gain shall be specially allocated, in accordance with Regulations
Section 1.704-1(b)(2)(ii)(d), to such Holder in an amount and manner sufficient
to eliminate, to the extent required by such Regulations, the Adjusted Capital
Account Deficit of such Holder as quickly as possible; provided, that an
allocation pursuant to this Section 6.3.A(4) shall be made if and only to the
extent that such Holder would have an Adjusted Capital Account Deficit after
all other allocations provided in this Article 6 have been tentatively made as
if this Section 6.3.A(4) were not in the Agreement. It is intended that this
Section 6.3.A(4) qualify and be construed as a “qualified income offset” within
the meaning of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be
interpreted consistently therewith.

(5)             
Gross Income Allocation. In the event
that any Holder has a deficit Capital Account at the end of any Partnership
Year that is in excess of the sum of (1) the amount (if any) that such Holder
is obligated to restore to the Partnership upon complete liquidation of such
Holder’s Partnership Interest (including, the Holder’s interest in outstanding
Preferred Units and other Partnership Units) and (2) the amount that such
Holder is deemed to be obligated to restore pursuant to Regulations Section
1.704-1(b)(2)(ii)(c) or the penultimate sentences of Regulations Sections
1.704-2(g)(1) and 1.704-2(i) (5), each such Holder shall be specially allocated
items of Partnership income and gain in the amount of such excess to eliminate
such deficit as quickly as possible; provided, that an allocation
pursuant to this Section 6.3.A(5) shall be made if and only to the extent that
such Holder would have a deficit Capital Account in excess of such sum after
all other allocations provided in this Article 6 have been tentatively made as
if this Section 6.3.A(5) and Section 6.3.A(4) hereof were not in the Agreement.

 

(6)             
Limitation on Allocation of Net Loss. To
the extent that any allocation of Net Loss would cause or increase an Adjusted
Capital Account Deficit as to any Holder, such allocation of Net Loss shall be
reallocated (x) first, among the other Holders of Common Units in accordance
with their respective Percentage Interests with respect to Common Units and (y)
thereafter, among the Holders of other classes of Partnership Units as
determined by the General Partner, subject to the limitations of this Section
6.3.A(6).

 

(7)             
Section 754 Adjustment. To the extent
that an adjustment to the adjusted tax basis of any Partnership asset pursuant
to Code Section 734(b) or Code Section 743(b) is required, pursuant to
Regulations Section 1.704-1(b)(2)(iv) (m)(2) or Regulations Section
1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts
as the result of a distribution to a Holder in complete liquidation of its
interest in the Partnership, the amount of such adjustment to the Capital
Accounts shall be treated as an item of gain (if the adjustment increases the
basis of the asset) or loss (if the adjustment decreases such basis), and such
gain or loss shall be specially allocated to the Holders in accordance with
their respective Percentage Interests in the event that Regulations Section
1.704-1(b)(2)(iv)(m)(2) applies, or to the Holder(s) to whom such distribution
was made in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.

Page 53 of 128

(8)             
Curative Allocations. The allocations set
forth in Sections 6.3.A(1), (2), (3), (4), (5), (6) and (7) hereof (the “Regulatory
Allocations”) are intended to comply with certain regulatory
requirements, including the requirements of Regulations Sections 1.704-1(b) and
1.704-2. Notwithstanding the provisions of Sections 6.1 and 6.2 hereof, the
Regulatory Allocations shall be taken into account in allocating other items of
income, gain, loss and deduction among the Holders so that to the extent
possible without violating the requirements giving rise to the Regulatory
Allocations, the net amount of such allocations of other items and the
Regulatory Allocations to each Holder shall be equal to the net amount that
would have been allocated to each such Holder if the Regulatory Allocations had
not occurred.

 

(9)             
Forfeiture Allocations. Upon a forfeiture
of any Unvested LTIP Units or Unvested Performance Units by any Partner, gross
items of income, gain, loss or deduction shall be allocated to such Partner if
and to the extent required by final Regulations promulgated after the Effective
Date to ensure that allocations made with respect to all unvested Partnership
Interests are recognized under Code Section 704(b).

 

(10)        
LTIP Units and Performance Units. For
purposes of the allocations set forth in this Section 6.3.A, each issued and
outstanding LTIP Unit or Vested Performance Unit will be treated as one
outstanding Common Unit and each Unvested Performance Unit will be treated as
the product of one outstanding Common Unit multiplied by the Performance Unit
Sharing Percentage.

 

(11)        
Allocation of Excess Nonrecourse Liabilities.
For purposes of determining a Holder’s proportional share of the “excess
nonrecourse liabilities” of the Partnership within the meaning of Regulations
Section 1.752-3(a)(3), each Holder’s respective interest in Partnership profits
shall be equal to such Holder’s Percentage Interest with respect to Common
Units, except as otherwise determined by the General Partner.

 

Section 6.4          
Tax Allocations. 

 

A.                 
In General. Except as otherwise provided
in this Section 6.4, for income tax purposes under the Code and the
Regulations, each Partnership item of income, gain, loss and deduction
(collectively, “Tax Items”) shall be allocated among the Holders
in the same manner as its correlative item of “book” income, gain, loss or
deduction is allocated pursuant to Sections 6.2 and 6.3 hereof.

 

B.                 
Section 704(c) Allocations.
Notwithstanding Section 6.4.A hereof, Tax Items with respect to Property that
is contributed to the Partnership with a Gross Asset Value that varies from its
basis in the hands of the contributing Partner immediately preceding the date
of contribution shall be allocated among the Holders for income tax purposes
pursuant to Regulations promulgated under Code Section 704(c) so as to take
into account such variation. The Partnership shall account for such variation
under any method approved under Code Section 704(c) and the applicable
Regulations as chosen by the General Partner. In the event that the Gross Asset
Value of any Partnership asset is adjusted pursuant to subsection (ii) of the
definition of “Gross Asset Value” (provided in Article 1 hereof), subsequent
allocations of Tax Items with respect to such asset shall take account of the
variation, if any, between the adjusted 

Page 54 of 128

basis of such asset and its Gross Asset
Value in the same manner as under Code Section 704(c) and the applicable
Regulations and using the method chosen by the General Partner. Allocations
pursuant to this Section 6.4.B are solely for purposes of federal, state and
local income taxes and shall not affect, or in any way be taken into account in
computing, any Partner’s Capital Account or share of Net Income, Net Loss, or
any other items or distributions pursuant to any provision of this Agreement.

 

Article
7

MANAGEMENT AND OPERATIONS OF BUSINESS

 

Section 7.1          
Management. 

 

A.                 
Except as otherwise expressly provided in this
Agreement, including any Partnership Unit Designation, all management powers
over the business and affairs of the Partnership are and shall be exclusively
vested in the General Partner, and no Limited Partner shall have any right to
participate in or exercise control or management power over the business and
affairs of the Partnership. The General Partner may not be removed by the
Partners, with or without cause, except with the Consent of the General
Partner.

 

In addition to the powers now or hereafter granted a
general partner of a limited partnership under applicable law or that are
granted to the General Partner under any other provision of this Agreement, the
General Partner, subject to the other provisions hereof including, without
limitation, Section 3.2, Section 7.3, and the rights of any Holder of any Partnership
Interest set forth in a Partnership Unit Designation, shall have full and
exclusive power and authority, without the consent or approval of any Limited
Partner, to do or authorize all things deemed necessary or desirable by it to
conduct the business and affairs of the Partnership, to exercise or direct the
exercise of all of the powers of the Partnership and a general partner under
the Act and this Agreement and to effectuate the purposes of the Partnership,
including, without limitation:

 

(1)             
the making of any expenditures, the lending or
borrowing of money or selling of assets (including, without limitation, making
prepayments on loans and borrowing money to permit the Partnership to make
distributions to the Holders in such amounts as will permit the General Partner
(so long as the General Partner qualifies as a REIT) to prevent the imposition
of any federal income tax on the General Partner (including, for this purpose,
any excise tax pursuant to Code Section 4981) and to make distributions to its
stockholders and payments to any taxing authority sufficient to permit the
General Partner to maintain REIT status or otherwise to satisfy the REIT
Requirements), the assumption or guarantee of, or other contracting for,
indebtedness and other liabilities, the issuance of evidences of indebtedness
(including the securing of same by deed to secure debt, mortgage, deed of trust
or other lien or encumbrance on the Partnership’s assets) and the incurring of
any obligations to conduct the activities of the Partnership;

 

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

Page 55 of 128

(3)             
the taking of any and all acts to ensure that
the Partnership will not be classified as a “publicly traded partnership”
taxable as a corporation under Code Section 7704;

 

(4)             
subject to Section 11.2 hereof, the acquisition,
sale, transfer, exchange or other disposition of any, all or substantially all
of the assets (including the goodwill) of the Partnership (including, but not
limited to, the exercise or grant of any conversion, option, privilege or
subscription right or any other right available in connection with any assets
at any time held by the Partnership) or the merger, consolidation,
reorganization or other combination of the Partnership with or into another
entity;

 

(5)             
the mortgage, pledge, encumbrance or
hypothecation of any assets of the Partnership, the assignment of any assets of
the Partnership in trust for creditors or on the promise of the assignee to pay
the debts of the Partnership, the use of the assets of the Partnership
(including, without limitation, cash on hand) for any purpose consistent with
the terms of this Agreement and on any terms that the General Partner sees fit,
including, without limitation, the financing of the operations and activities
of the General Partner, the Partnership or any of the Partnership’s
Subsidiaries, the lending of funds to other Persons (including, without
limitation, the General Partner and/or the Partnership’s Subsidiaries) and the
repayment of obligations of the Partnership, its Subsidiaries and any other
Person in which the Partnership has an equity investment, and the making of
capital contributions to and equity investments in the Partnership’s
Subsidiaries;

 

(6)             
the management, operation, leasing, landscaping,
repair, alteration, demolition, replacement or improvement of any Property;

 

(7)             
the negotiation, execution and performance of
any contracts, including leases (including ground leases), easements,
management agreements, rights of way and other property-related agreements,
conveyances or other instruments to conduct the Partnership’s operations or
implement the General Partner’s powers under this Agreement, including contracting
with contractors, developers, consultants, governmental authorities,
accountants, legal counsel, other professional advisors and other agents and
the payment of their expenses and compensation, as applicable, out of the
Partnership’s assets;

 

(8)             
the distribution of Partnership cash or other
Partnership assets in accordance with this Agreement, the holding, management,
investment and reinvestment of cash and other assets of the Partnership, and
the collection and receipt of revenues, rents and income of the Partnership;

 

(9)             
the selection and dismissal of employees of the
Partnership (if any) (including, without limitation, employees having titles or
offices such as “president,” “vice president,” “secretary” and “treasurer”),
and agents, outside attorneys, accountants, consultants and contractors of the
Partnership and the determination of their compensation and other terms of
employment or hiring;

Page 56 of 128

(10)        
the maintenance of such insurance (including,
without limitation, directors and officers insurance) for the benefit of the
Partnership and the Partners (including, without limitation, the General
Partner);

 

(11)        
the formation of, or acquisition of an interest
in, and the contribution of property to, any further limited or general
partnerships, limited liability companies, joint ventures or other
relationships that it deems desirable (including, without limitation, the
acquisition of interests in, and the contributions of property to, any
Subsidiary and any other Person in which the General Partner has an equity
investment from time to time);

 

(12)        
the control of any matters affecting the rights
and obligations of the Partnership, including the settlement, compromise,
submission to arbitration or any other form of dispute resolution, or
abandonment, of any claim, cause of action, liability, debt or damages, due or
owing to or from the Partnership, the commencement or defense of suits, legal
proceedings, administrative proceedings, arbitrations or other forms of dispute
resolution, and the representation of the Partnership in all suits or legal
proceedings, administrative proceedings, arbitrations or other forms of dispute
resolution, the incurring of legal expense, and the indemnification of any
Person against liabilities and contingencies to the extent permitted by law;

 

(13)        
the undertaking of any action in connection with
the Partnership’s direct or indirect investment in any Subsidiary or any other
Person (including, without limitation, the contribution or loan of funds by the
Partnership to such Persons);

 

(14)        
the determination of the fair market value of
any Partnership property distributed in kind using such reasonable method of
valuation as the General Partner may adopt; provided, however,
that such methods are otherwise consistent with the requirements of this
Agreement;

 

(15)        
the enforcement of any rights against any
Partner pursuant to representations, warranties, covenants and indemnities
relating to such Partner’s contribution of property or assets to the
Partnership;

 

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

 

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

 

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

Page 57 of 128

(19)        
the making, execution and delivery of any and
all deeds, leases, notes, deeds to secure debt, mortgages, deeds of trust,
security agreements, conveyances, contracts, guarantees, warranties,
indemnities, waivers, releases, confessions of judgment or any other legal
instruments or agreements in writing;

 

(20)        
the issuance of additional Partnership Units in
connection with Capital Contributions by Additional Limited Partners and
additional Capital Contributions by Partners pursuant to Article 4 hereof;

 

(21)        
an election to dissolve the Partnership pursuant
to Section 13.1.B hereof;

 

(22)        
the distribution of cash to acquire Common Units
held by a Common Limited Partner in connection with a Redemption under Section
15.1 hereof;

 

(23)        
an election to acquire Tendered Common Units in
exchange for REIT Shares; 51

 

(24)        
the redemption of Series A Preferred Units or
Series 1 Preferred Units;

 

(25)        
the maintenance of the Register from time to
time to reflect accurately at all times the Capital Contributions and
Percentage Interests of the Partners as the same are adjusted from time to time
to reflect redemptions, Capital Contributions, the issuance of Partnership
Units, the admission of any Additional Limited Partner or any Substituted
Limited Partner or otherwise, which shall not be deemed an amendment to this
Agreement, as long as the matter or event being reflected in the Register
otherwise is authorized by this Agreement; and

 

(26)        
the registration of any class of securities of
the Partnership under the Securities Act or the Exchange Act, and the listing
of any debt securities of the Partnership on any exchange.

 

B.                 
Each of the Limited Partners agrees that, except
as provided in Section 7.3 hereof and subject to the rights of any Holder of
any Partnership Interest set forth in a Partnership Unit Designation, the
General Partner is authorized to execute and deliver any affidavit, agreement,
certificate, consent, instrument, notice, power of attorney, waiver or other
writing or document in the name and on behalf of the Partnership and to
otherwise exercise any power of the General Partner under this Agreement and
the Act on behalf of the Partnership without any further act, approval or vote
of the Partners or any other Persons, notwithstanding any other provision of
the Act or any applicable law, rule or regulation and, in the absence of any
specific corporate action on the part of the General Partner to the contrary,
the taking of any action or the execution of any such document or writing by an
officer of the General Partner, in the name and on behalf of the General
Partner, in its capacity as the general partner of the Partnership, shall
conclusively evidence (1) the approval thereof by the General Partner, in its
capacity as the general partner of the Partnership, (2) the General Partner’s
determination that such action, document or writing is necessary, advisable,
appropriate, desirable or prudent to conduct the business and affairs of the
Partnership, exercise the powers of the Partnership under this Agreement and
the Act or effectuate the purposes of the Partnership, or any other
determination by the General Partner required by this Agreement in connection
with the taking of such action or execution of such document or writing, and
(3) the authority of such officer with respect thereto.

Page 58 of 128

C.                 
At all times from and after the date hereof, the
General Partner may cause the Partnership to obtain and maintain (i) casualty,
liability and other insurance on the Properties and (ii) liability insurance
for the Indemnitees hereunder.

 

D.                
At all times from and after the date hereof, the
General Partner may cause the Partnership to establish and maintain working
capital and other reserves in such amounts as the General Partner, in its sole
and absolute discretion, determines from time to time.

 

E.                 
The determination as to any of the following
matters, made by or at the direction of the General Partner consistent with
this Agreement and the Act, shall be final and conclusive and shall be binding
upon the Partnership and every Limited Partner: the amount of assets at any
time available for distribution or the redemption of Common Units; the amount
and timing of any distribution; any determination to redeem Tendered Common
Units; the amount, purpose, time of creation, increase or decrease, alteration
or cancellation of any reserves or charges and the propriety thereof (whether
or not any obligation or liability for which such reserves or charges shall
have been created shall have been paid or discharged); the amount of any
Partner’s Capital Account, Adjusted Capital Account or Adjusted Capital Account
Deficit; the amount of Net Income, Net Loss or Depreciation for any period; any
special allocations of Net Income or Net Loss pursuant to Sections 6.2.D,
6.2.E, 6.2.F, 6.2.G, 6.2.H, 6.2.I, 6.2.J, 6.3, 6.4, 18.5 or 19.5; the Gross
Asset Value of any Partnership asset; the Value of any REIT Share; the timing
and amount of any adjustment to the Adjustment Factor; any adjustment to the
number of outstanding LTIP Units pursuant to Section 18.3, Performance Units
pursuant to Section 19.3 or Class A Units pursuant to Section 20.2; the timing,
number and redemption or repurchase price of the redemption or repurchase of
any Partnership Units pursuant to Section 4.7.B; any interpretation of the
terms, preferences, conversion or other rights, voting powers or rights,
restrictions, limitations as to dividends or distributions, qualifications or
terms or conditions of redemption of any class or series of Partnership
Interest or Class A Units; the fair value, or any sale, bid or asked price to
be applied in determining the fair value, of any asset owned or held by the
Partnership or of any Partnership Interest or Class A Unit; the number of
authorized or outstanding Units of any class or series; any matter relating to
the acquisition, holding and disposition of any assets by the Partnership; or
any other matter relating to the business and affairs of the Partnership or required
or permitted by applicable law, this Agreement or otherwise to be determined by
the General Partner.

 

F.                 
In exercising its authority under this Agreement
and subject to Section 7.8.B, the General Partner may, but shall be under no
obligation to, take into account the tax consequences to any Partner of any
action taken (or not taken) by it. The General Partner and the Partnership
shall not have liability to a Limited Partner under any circumstances as a
result of any tax liability incurred by such Limited Partner as a result of an
action (or inaction) by the General Partner pursuant to its authority under
this Agreement.

 

Section 7.2          
Certificate of Limited Partnership.  The General Partner may file amendments to and
restatements of the Certificate and do all the things to maintain the
Partnership as a limited partnership (or a partnership in which the limited
partners have limited 

Page 59 of 128

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

 

Section 7.3          
Restrictions on General Partner’s Authority. 

 

A.                 
Proscriptions. The General Partner may
not take any action in contravention of this Agreement, including, without
limitation:

 

(1)             
take any action that would make it impossible to
carry on the ordinary business of the Partnership, except as otherwise provided
in this Agreement;

 

(2)             
perform any act that would subject a Limited
Partner to liability as a general partner in any jurisdiction or any other
liability except as provided herein or under the Act; or

 

(3)             
enter into any contract, mortgage, loan or other
agreement that expressly prohibits or restricts, or that has the effect of
prohibiting or restricting, (a) the General Partner or the Partnership from
performing its specific obligations under Section 15.1 hereof in full, or (b) a
Common Limited Partner from exercising its rights under Section 15.1 hereof to
effect a Redemption in full, except, in the case of either clause (a) or (b),
(x) with the written Consent of each Limited Partner affected by the
prohibition or restriction or (y) in connection with or as a result of a
Termination Transaction that, in accordance with Section 11.2.B(1) and/or (2),
does not require the Consent of the Limited Partners.

 

B.                 
Actions Requiring Consent of the Partners.
Except as provided in Section 7.3.0 hereof, the General Partner shall not,
without the prior Consent of the Partners, amend, modify or terminate this
Agreement.

 

C.                 
Amendments without Consent.
Notwithstanding Sections 7.3.B and 14.2 hereof but subject to the terms of any
Partnership Unit Designation with respect to Partnership Interests then
outstanding, the General Partner shall have the power, without the Consent of
the Partners or the consent or approval of any Limited Partner or any other
Person, to amend this Agreement as may be required to facilitate or implement any
of the following purposes:

 

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

Page 60 of 128

(2)             
to reflect the admission, substitution or
withdrawal of Partners, the Transfer of any Partnership Interest or the
termination of the Partnership in accordance with this Agreement, or the
adjustment of outstanding LTIP Units as contemplated by Section 18.3,
Performance Units as contemplated by Section 19.3, or Class A Units as
contemplated by Section 20.2, and to update the Register in connection with
such admission, substitution, withdrawal, Transfer or adjustment;

 

(3)             
to reflect a change that is of an
inconsequential nature or does not adversely affect the Limited Partners in any
material respect, or to cure any ambiguity, correct or supplement any provision
in this Agreement not inconsistent with law or with other provisions, or make
other changes with respect to matters arising under this Agreement that will
not be inconsistent with law or with the provisions of this Agreement;

 

(4)             
(to set forth or amend the designations,
preferences, conversion and other rights, voting powers, restrictions,
limitations as to distributions, qualifications and terms and conditions of
redemption of the Holders of any additional Partnership Interests issued
pursuant to Article 4;

 

(5)             
to reflect any change to the designation or
terms of the Series A Preferred Units as set forth in Article 16 or otherwise
in this Agreement;

 

(6)             
to reflect any change to the designation or
terms of the Series 1 Preferred Units as set forth in Article 17 or otherwise
in this Agreement;

 

(7)             
to satisfy any requirements, conditions or
guidelines contained in any order, directive, opinion, ruling or regulation of
a federal or state agency or contained in federal or state law;

 

(8)             
 (a) to
reflect such changes as are reasonably necessary for the General Partner to
maintain its status as a REIT or to satisfy the REIT Requirements or (b) to
reflect the Transfer of all or any part of a Partnership Interest among the
General Partner and any Disregarded Entity with respect to the General Partner;

 

(9)             
to modify either or both of the manner in which
items of Net Income or Net Loss are allocated pursuant to Article VI or the
manner in which Capital Accounts are adjusted, computed, or maintained (but in
each case only to the extent otherwise provided in this Agreement);

 

(10)        
the issuance of additional Partnership Interests
in accordance with Section 4.2;

 

(11)        
as contemplated by the last sentence of Section
4.3;

 

(12)        
to reflect any other modification to this
Agreement as is reasonably necessary for the business or operations of the
Partnership or the General Partner and which does not violate Section 7.3.D;

Page 61 of 128

(13)        
to effect or facilitate a Termination
Transaction that, in accordance with Section 11.2.B(1) and/or (2), does not
require the Consent of the Limited Partners and, if the Partnership is the
Surviving Partnership in any Termination Transaction, to modify Section 15.1 or
any related definitions to provide that the holders of interests in such
Surviving Partnership have rights that are consistent with Section 11.2B(2);

 

(14)        
to reflect any change to the designation or
terms of the Series A Preferred Units as set forth in Article 16 or otherwise
in this Agreement; and

 

(15)        
to reflect any change to the designation or
terms of the Series 1 Preferred Units as set forth in Article 17 or otherwise
in this Agreement.

 

D.                
Actions Requiring Consent of Affected
Partners. Notwithstanding Sections 7.3.B, 7.3.0 (other than as set forth
below in this Section 7.3.D) and 14.2 hereof, this Agreement shall not be
amended, and no action may be taken by the General Partner, without the Consent
of each Partner adversely affected thereby, if such amendment or action would:
(i) convert a Limited Partner Interest in the Partnership into a General
Partner Interest (except as a result of the General Partner acquiring such
Partnership Interest); (ii) adversely modify in any material respect the
limited liability of a Limited Partner; (iii) alter the rights of any Partner
to receive the distributions to which such Partner is entitled, pursuant to
Article 5 or Section 13.2.A hereof, or alter the allocations specified in
Article 6 hereof (except, in any case, as permitted pursuant to Sections 4.2,
5.5, 7.3.0 and Article 6 hereof); (iv) alter or modify the redemption rights,
conversion rights, Cash Amount or REIT Shares Amount as set forth in Section
15.1 hereof (except, in any case, as permitted pursuant to clause (13) of
Section 7.3.0 hereof); or (v) amend this Section 7.3.D, or, in each case for
all provisions referenced in this Section 7.3.D, amend or modify any related definitions
or Exhibits (except as permitted pursuant to clause (13) of Section 7.3.0
hereof). Further, no amendment may alter the restrictions on the General
Partner’s authority set forth elsewhere in this Agreement without the consent
specified therein. Any such amendment or action consented to by any Partner
shall be effective as to that Partner, notwithstanding the absence of such
consent by any other Partner.

 

Section 7.4          
Reimbursement of the General Partner. 

 

A.                 
The General Partner shall not be compensated for
its services as General Partner of the Partnership except as provided in this
Agreement (including the provisions of Articles 5 and 6 hereof regarding
distributions, payments and allocations to which the General Partner may be
entitled in its capacity as the General Partner).

 

B.                 
Subject to Sections 7.4.0 and 15.12 hereof, the
Partnership shall be liable for, and shall reimburse the General Partner on a
monthly basis, or such other basis as the General Partner may determine in its
sole and absolute discretion, for all sums expended in connection with the
Partnership’s business, including, without limitation, (i) expenses relating to
the ownership of interests in and management and operation of, or for the
benefit of, the Partnership, (ii) compensation of officers and employees,
including, without limitation, payments under future compensation plans, of the
General Partner or the Partnership that may provide for stock units, or phantom
stock, pursuant to which employees of the General Partner or the Partnership
will receive payments based upon dividends on or the value of REIT Shares,
(iii) director or 

Page 62 of 128

manager fees and expenses of the General Partner or its
Affiliates, and (iv) all costs and expenses of the General Partner being a
public company, including costs of filings with the SEC, reports and other
deliveries to its stockholders; provided, however,
that the amount of any reimbursement shall be reduced by any interest earned by
the General Partner with respect to bank accounts or other instruments or
accounts held by it on behalf of the Partnership as permitted pursuant to
Section 7.3 hereof. Such reimbursements shall be in addition to any
reimbursement of the General Partner as a result of indemnification pursuant to
Section 7.7 hereof. For this avoidance of doubt, this Section 7.4.B does not
apply to the General Partner’s income tax liabilities (including income-based
franchise tax liabilities), and does not apply to the amount of franchise tax
liabilities (if measured by net worth, taxable capital or similar bases under
applicable state or local law) to the extent the same would not have been owed
by the General Partner but for its lack of REIT qualification and taxation in a
particular taxable year, it being understood that in each such case any such
tax liabilities remain the obligation of the General Partner itself.

 

C.                 
To the extent practicable, Partnership expenses
shall be billed directly to and paid by the Partnership and, subject to Section
15.12 hereof, if and to the extent any reimbursements to the General Partner or
any of its Affiliates by the Partnership pursuant to this Section 7.4
constitute gross income to such Person (as opposed to the repayment of advances
made by such Person on behalf of the Partnership), such amounts shall be
treated as “guaranteed payments” within the meaning of Code Section 707(c) and
shall not be treated as distributions for purposes of computing the Partners’
Capital Accounts.

 

Section 7.5          
Outside Activities of the General Partner.  The General Partner shall not, directly or
indirectly, enter into or conduct any business, other than in connection with,
(a) the ownership, acquisition and disposition of Partnership Interests, (b)
the management of the business and affairs of the Partnership, (c) the
operation of the General Partner as a reporting company with a class (or
classes) of securities registered under the Exchange Act, (d) its operations as
a REIT, (e) the offering, sale, syndication, private placement or public
offering of stock, bonds, securities or other interests, (f) financing or
refinancing of any type related to the Partnership or its assets or activities,
and (g) such activities as are incidental thereto; provided, however,
that, except as otherwise provided herein, any funds raised by the General
Partner pursuant to the preceding clauses (e) and (f) shall be made available
to the Partnership, whether as Capital Contributions, loans or otherwise, as
appropriate; and, provided, further, that the
General Partner may, in its sole and absolute discretion, from time to time
hold or acquire assets in its own name or otherwise other than through the
Partnership so long as the General Partner takes commercially reasonable
measures to ensure that the economic benefits and burdens of such Property are
otherwise vested in the Partnership, whether through assignment, mortgage loan
or otherwise or, if it is not commercially reasonable to vest such economic interests
in the Partnership, the Partners shall negotiate in good faith to amend this
Agreement, including, without limitation, the definition of “Adjustment
Factor,” to reflect such activities and the direct ownership of assets by the
General Partner. Nothing contained herein shall be deemed to prohibit the
General Partner from executing guarantees of Partnership debt. The General
Partner and all Disregarded Entities with respect to the General Partner, taken
as a group, shall not own any assets or take title to assets (other than
temporarily in connection with an acquisition prior to contributing such assets
to the Partnership) other than (i) interests in Disregarded Entities with
respect to the General Partner, (ii) Partnership Interests as the General Partner,
(iii) a minority

Page 63 of 128

interest in any Subsidiary of the Partnership that the General
Partner holds to maintain such Subsidiary’s status as a partnership for federal
income tax purposes or otherwise, and (iv) such cash and cash equivalents, bank
accounts or similar instruments or accounts as such group deems reasonably
necessary, taking into account Section 7.1.D hereof and the requirements
necessary for the General Partner to qualify as a REIT and for the General
Partner to carry out its responsibilities contemplated under this Agreement and
the Charter. Any Limited Partner Interests acquired by the General Partner,
whether pursuant to the exercise by a Limited Partner of its right to
Redemption, or otherwise, shall be automatically converted into a General Partner
Interest comprised of an identical number of Partnership Units with the same
terms as the class or series so acquired. Any Affiliates of the General Partner
may acquire Limited Partner Interests and shall, except as expressly provided
in this Agreement, be entitled to exercise all rights of a Limited Partner
relating to such Limited Partner Interests.

 

Section 7.6          
Transactions with Affiliates. 

 

A.                 
The Partnership may lend or contribute funds to,
and borrow funds from, Persons in which the Partnership has an equity investment,
and such Persons may borrow funds from, and lend or contribute funds to, the
Partnership, on terms and conditions established in the sole and absolute
discretion of the General Partner. The foregoing authority shall not create any
right or benefit in favor of any Person.

 

B.                 
Except as provided in Section 7.5 hereof, the
Partnership may transfer assets to joint ventures, limited liability companies,
partnerships, corporations, business trusts or other business entities in which
it is or thereby becomes a participant upon such terms and subject to such
conditions consistent with this Agreement and applicable law.

 

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

 

D.                
The General Partner in its sole and absolute
discretion and without the approval of the Partners or any of them or any other
Persons, may propose and adopt (on behalf of the Partnership) employee benefit
plans (including without limitation plans that contemplate the issuance of LTIP
Units or Performance Units) funded by the Partnership for the benefit of
employees of the General Partner, the Partnership, Subsidiaries of the
Partnership or any Affiliate of any of them in respect of services performed,
directly or indirectly, for the benefit of the General Partner, the Partnership
or any of the Partnership’s Subsidiaries.

 

Section 7.7          
Indemnification. 

 

A.                 
To the fullest extent permitted by applicable
law, the Partnership shall indemnify each Indemnitee from and against any and
all losses, claims, damages, liabilities, joint or several, expenses
(including, without limitation, reasonable attorney’s fees and other reasonable
legal fees and expenses), judgments, fines, settlements and other amounts
arising from any and all claims, demands, actions, suits or proceedings, civil,
criminal, administrative or investigative, that relate to the operations of the
Partnership (“Actions”) as set forth in this Agreement in which 

Page 64 of 128

such Indemnitee may be involved, or is threatened to be involved, as a party or
otherwise; provided, however, that the Partnership
shall not indemnify an Indemnitee (i) if the act or omission of the Indemnitee
was material to the matter giving rise to the Action and either was committed
in bad faith or was the result of active and deliberate dishonesty; (ii) in the
case of any criminal proceeding, if the Indemnitee had reasonable cause to
believe that the act or omission was unlawful; or (iii) for any transaction for
which such Indemnitee actually received an improper personal benefit in money,
property or services or otherwise, in violation or breach of any provision of
this Agreement; and provided, further, that no
payments pursuant to this Agreement shall be made by the Partnership to
indemnify or advance funds to any Indemnitee (x) with respect to any Action
initiated or brought voluntarily by such Indemnitee (and not by way of defense)
unless (I) approved or authorized by the General Partner or (II) incurred to
establish or enforce such Indemnitee’s right to indemnification under this
Agreement, and (y) in connection with one or more Actions or claims brought by
the Partnership or involving such Indemnitee if such Indemnitee is found liable
to the Partnership on any portion of any claim in any such Action.

 

Without limitation, the foregoing indemnity shall extend
to any liability of any Indemnitee, pursuant to a loan guaranty or otherwise,
for any indebtedness of the Partnership or any Subsidiary of the Partnership
(including, without limitation, any indebtedness which the Partnership or any
Subsidiary of the Partnership has assumed or taken subject to), and the General
Partner is hereby authorized and empowered, on behalf of the Partnership, to
enter into one or more indemnity agreements consistent with the provisions of
this Section 7.7 in favor of any Indemnitee having or potentially having
liability for any such indebtedness. It is the intention of this Section 7.7.A
that the Partnership shall indemnify each Indemnitee to the fullest extent
permitted by law and this Agreement. The termination of any proceeding by
judgment, order or settlement does not create a presumption that the Indemnitee
did not meet the requisite standard of conduct set forth in this Section 7.7.A.
The termination of any proceeding by conviction of an Indemnitee or upon a plea
of nolo contendere or its equivalent by an Indemnitee, or an entry of an order
of probation against an Indemnitee prior to judgment, does not create a
presumption that such Indemnitee acted in a manner contrary to that specified
in this Section 7.7.A with respect to the subject matter of such proceeding.
Any indemnification pursuant to this Section 7.7 shall be made only out of the
assets of the Partnership, and neither the General Partner nor any other Holder
shall have any obligation to contribute to the capital of the Partnership or
otherwise provide funds to enable the Partnership to fund its obligations under
this Section 7.7.

 

B.                 
To the fullest extent permitted by law, expenses
incurred by an Indemnitee who is a party to a proceeding or otherwise subject
to or the focus of or is involved in any Action shall be paid or reimbursed by
the Partnership as incurred by the Indemnitee in advance of the final
disposition of the Action upon receipt by the Partnership of (i) a written
affirmation by the Indemnitee of the Indemnitee’s good faith belief that the
standard of conduct necessary for indemnification by the Partnership as
authorized in Section 7.7.A has been met, and (ii) a written undertaking by or
on behalf of the Indemnitee to repay the amount if it shall ultimately be
determined that the standard of conduct has not been met.

 

C.                 
The indemnification provided by this Section 7.7
shall be in addition to any other rights to which an Indemnitee or any other
Person may be entitled under any agreement, pursuant to any vote of the
Partners, as a matter of law or otherwise, and shall continue as to an
Indemnitee who has ceased to serve in such capacity and shall inure to the
benefit of the heirs, successors, assigns and administrators of the Indemnitee
unless otherwise provided in a written agreement with such Indemnitee or in the
writing pursuant to which such Indemnitee is indemnified.

Page 65 of 128

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

 

E.                 
Any liabilities which an Indemnitee incurs as a
result of acting on behalf of the Partnership or the General Partner (whether
as a fiduciary or otherwise) in connection with the operation, administration
or maintenance of an employee benefit plan or any related trust or funding
mechanism (whether such liabilities are in the form of excise taxes assessed by
the IRS, penalties assessed by the U.S. Department of Labor, restitutions to
such a plan or trust or other funding mechanism or to a participant or
beneficiary of such plan, trust or other funding mechanism, or otherwise) shall
be treated as liabilities or judgments or fines under this Section 7.7, unless
such liabilities arise as a result of (i) an act or omission of such Indemnitee
that was material to the matter giving rise to the Action and either was
committed in bad faith or was the result of active and deliberate dishonesty;
(ii) in the case of any criminal proceeding, an act or omission that such
Indemnitee had reasonable cause to believe was unlawful, or (iii) any
transaction in which such Indemnitee actually received an improper personal
benefit in money, property or services or otherwise, in violation or breach of
any provision of this Agreement or applicable law.

 

F.                 
Notwithstanding anything to the contrary in this
Agreement, in no event may an Indemnitee subject any of the Holders to personal
liability by reason of the indemnification provisions set forth in this
Agreement, and any such indemnification shall be satisfied solely out of the
assets of the Partnership.

 

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

 

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

Page 66 of 128

I.                   
It is the intent of the parties that any amounts
paid by the Partnership to the General Partner pursuant to this Section 7.7
shall be treated as “guaranteed payments” within the meaning of Code Section
707(c) and shall not be treated as distributions for purposes of computing the
Partners’ Capital Accounts.

 

J.                   
The Partnership shall indemnify each Limited
Partner and its Affiliates, their respective directors, officers, stockholders
and any other individual acting on its or their behalf, from and against any
costs (including costs of defense) incurred by it as a result of any litigation
or other proceeding in which any Limited Partner is named as a defendant or any
claim threatened or asserted against any Limited Partner, in either case which
relates to the operations of the Partnership or any obligation assumed by the
Partnership, unless such costs are the result of intentional harm or gross
negligence on the part of, or a breach of this Agreement by, such Limited Partner;
provided, however, that no Partner shall have any
personal liability with respect to the foregoing indemnification, any such
indemnification to be satisfied solely out of the assets of the Partnership.

 

K.                 
Any obligation or liability whatsoever of the
General Partner which may arise at any time under this Agreement or any other
instrument, transaction, or undertaking contemplated hereby shall be satisfied,
if at all, out of the assets of the General Partner or the Partnership only. No
such obligation or liability shall be personally binding upon, nor shall resort
for the enforcement thereof be had to, any of the General Partner’s directors,
stockholders, officers, employees, or agents, regardless of whether such
obligation or liability is in the nature of contract, tort or otherwise.

 

Section 7.8          
Liability of the General Partner. 

 

A.                 
Notwithstanding anything to the contrary set
forth in this Agreement, neither the General Partner nor any of its directors
or officers shall be liable or accountable in damages or otherwise to the
Partnership, any Partners, or any Assignees for losses sustained, liabilities
incurred or benefits not derived as a result of errors in judgment or mistakes
of fact or law or of any act or omission if the General Partner or such
director or officer acted in good faith.

 

B.                 
The Limited Partners agree that: (i) the General
Partner is acting for the benefit of the Partnership, the Limited Partners and
the General Partner’s stockholders collectively; (ii) the General Partner is
under no obligation not to give priority to the separate interests of the
General Partner or the stockholders of the General Partner, and any action or
failure to act on the part of the General Partner or its directors that gives
priority to the separate interests of the General Partner or its stockholders
that does not result in a violation of the contract rights of the Limited
Partners under this Agreement does not violate the duty of loyalty owed by the
General Partner to the Partnership and/or its partners; and (iii) the General
Partner shall not be liable to the Partnership or to any Partner for monetary
damages for losses sustained, liabilities incurred or benefits not derived by
the Partnership or any Limited Partner in connection with such decisions,
except for liability for the General Partner’s intentional harm or gross
negligence.

 

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

Page 67 of 128

D.                
Any amendment, modification or repeal of this
Section 7.8 or any provision hereof shall be prospective only and shall not in
any way affect the limitations on the General Partner’s and its officers’ and
directors’ liability to the Partnership and the Limited Partners under this Section
7.8 as in effect immediately prior to such amendment, modification or repeal
with respect to claims arising from or relating to matters occurring, in whole
or in part, prior to such amendment, modification or repeal, regardless of when
such claims may arise or be asserted.

 

E.                 
Notwithstanding anything herein to the contrary,
except for liability for fraud, willful misconduct or gross negligence, or
pursuant to any express indemnities given to the Partnership by any Partner
pursuant to any other written instrument, no Partner shall have any personal
liability whatsoever, to the Partnership or to the other Partners, or for the
debts or liabilities of the Partnership or the Partnership’s obligations
hereunder, and the full recourse of the other Partner(s) shall be limited to
the interest of that Partner in the Partnership. Without limitation of the
foregoing, and except for liability for fraud, willful misconduct or gross
negligence, or pursuant to any such express indemnity, no property or assets of
any Partner, other than its interest in the Partnership, shall be subject to
levy, execution or other enforcement procedures for the satisfaction of any
judgment (or other judicial process) in favor of any other Partner(s) and
arising out of, or in connection with, this Agreement. This Agreement is
executed by the officers of the General Partner solely as officers of the same
and not in their own individual capacities.

 

F.                 
To the extent that, under applicable law, the
General Partner has duties (including fiduciary duties) and liabilities
relating thereto to the Partnership or the Limited Partners, the General
Partner shall not be liable to the Partnership or to any other Partner for its
good faith reliance on the provisions of this Agreement. The provisions of this
Agreement, to the extent that they restrict or modify the duties and
liabilities of the General Partner under the Act or otherwise existing under
applicable law, are agreed by the Partners to replace such other duties and
liabilities of such General Partner.

 

G.                 
Whenever in this Agreement the General Partner
is permitted or required to make a decision in (i) its “sole and absolute
discretion,” “sole discretion” or “discretion” or under a grant of similar
authority or latitude, the General Partner shall be entitled to consider only
such interests and factors as it desires, including its own interests, and
shall have no duty or obligation to give any consideration to any interest or
factors affecting the Partnership or the Partners or any of them, or (ii) in
its “good faith” or under another expressed standard, the General Partner shall
act under such express standard and shall not be subject to any other or
different standards imposed by this Agreement or any other agreement
contemplated herein or by relevant provisions of law or in equity or otherwise.
If any question should arise with respect to the operation of the Partnership,
which is not otherwise specifically provided for in this Agreement or the Act,
or with respect to the interpretation of this Agreement, the General Partner is
hereby authorized to make a final determination with respect to any such
question and to interpret this Agreement in such a manner as it shall deem, in
its sole discretion, to be fair and equitable, and its determination and
interpretations so made shall be final and binding on all parties. The General
Partner’s “sole and absolute discretion,” “sole discretion” and “discretion”
under this Agreement shall be exercised consistently with the duty of care and
the obligation of good faith and fair dealing under the Act (as modified by the
Agreement).

Page 68 of 128

H.                
To the maximum extent permitted under the Act,
the only duties that the General Partner owes to the Partnership, any Partner
or any other Person (including any creditor of any Partner or assignee of any
Partnership Interest), fiduciary or otherwise, are to perform its contractual
obligations as expressly set forth in this Agreement consistently with the
implied contractual covenant of good faith and fair dealing, and to act with
the fiduciary duties of care and loyalty which have been, in accordance with
the Act, modified as set forth in this Section 7.8. The General Partner, in its
capacity as such, shall have no other duty, fiduciary or otherwise, to the
Partnership, any Partner or any other Person (including any creditor of any
Partner or any assignee of Partnership Interest). The provisions of this
Agreement other than this Section 7.8 shall create contractual obligations of
the General Partner only, and no such provision shall be interpreted to expand
or modify the fiduciary duties of the General Partner under the Act. The
provisions of this Section 7.8, to the extent that they restrict or modify the
duties and liabilities of the General Partner under the Act or otherwise
existing at law or in equity, are agreed by the Partners to replace such other
duties and liabilities of such General Partner. The General Partner is entitled
to a presumption that any act or failure to act on the part of the General
Partner, and any decision or determination made by the General Partner, is
presumed to satisfy the duties of the General Partner under the Act, modified
as set forth in this Section 7.8, and no act or failure to act on the part of
the General Partner, or decision or determination made by the General Partner
(whether with respect to a change of control of the Partnership or otherwise)
shall be subject to any duty, standard of conduct, burden of proof or scrutiny,
whether at law or in equity, other than as set forth in this Section 7.8.

 

Section 7.9          
Other Matters Concerning the General Partner. 

 

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

 

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

 

C.                 
The General Partner shall have the right, in
respect of any of its powers or obligations hereunder, to act through any of
its duly authorized officers or agents and a duly appointed attorney or
attorneys-in-fact (including, without limitation, officers and directors of the
General Partner). Each such attorney shall, to the extent provided by the
General Partner in the power of attorney, have full power and authority to do
and perform all and every act and duty that is permitted or required to be done
by the General Partner hereunder.

Page 69 of 128

D.                
Notwithstanding any other provision of this
Agreement or any non-mandatory provision of the Act, any action of the General
Partner on behalf of the Partnership or any decision of the General Partner to
refrain from acting on behalf of the Partnership, undertaken in the good faith
belief that such action or omission is necessary or advisable in order (i) to
protect the ability of the General Partner to qualify or re-qualify as a REIT,
(ii) for the General Partner otherwise to satisfy the REIT Requirements, (iii)
for the General Partner to avoid incurring any taxes under Code Section 857 or
Code Section 4981, or (iv) for any General Partner Affiliate to qualify as a
“qualified REIT subsidiary” (within the meaning of Code Section 856(i)(2)) or
“taxable REIT subsidiary”(within the meaning of Code Section 856(1)), is
expressly authorized under this Agreement and is deemed approved by all of the
Limited Partners and does not violate the duty of loyalty or any other duty or
obligation, fiduciary or otherwise, of the General Partner to the Partnership
or any other Partner.

 

Section 7.10      Title
to Partnership Assets.  Title to
Partnership assets, whether real, personal or mixed and whether tangible or
intangible, shall be deemed to be owned by the Partnership as an entity, and no
Partner, individually or collectively with other Partners or Persons, shall
have any ownership interest in such Partnership assets or any portion thereof.
Title to any or all of the Partnership assets may be held in the name of the
Partnership, the General Partner or one or more nominees, as the General
Partner may determine, including Affiliates of the General Partner. The General
Partner hereby declares and warrants that any Partnership assets for which
legal title is held in the name of the General Partner or any nominee or
Affiliate of the General Partner shall be held by the General Partner or such
nominee or Affiliate for the use and benefit of the Partnership in accordance
with the provisions of this Agreement. All Partnership assets shall be recorded
as the property of the Partnership in its books and records, irrespective of the
name in which legal title to such Partnership assets is held.

 

Section 7.11      Reliance
by Third Parties.  Notwithstanding
anything to the contrary in this Agreement, any Person dealing with the
Partnership shall be entitled to assume that the General Partner has full power
and authority, without the consent or approval of any other Partner, or Person,
to encumber, sell or otherwise use in any manner any and all assets of the
Partnership and to enter into any contracts on behalf of the Partnership, and
take any and all actions on behalf of the Partnership, and such Person shall be
entitled to deal with the General Partner as if it were the Partnership’s sole
party in interest, both legally and beneficially. Each Limited Partner hereby
waives any and all defenses or other remedies that may be available against
such Person to contest, negate or disaffirm any action of the General Partner
in connection with any such dealing. In no event shall any Person dealing with
the General Partner or its representatives be obligated to ascertain that the
terms of this Agreement have been complied with or to inquire into the
necessity or expediency of any act or action of the General Partner or its
representatives. Each and every certificate, document or other instrument
executed on behalf of the Partnership by the General Partner or its
representatives shall be conclusive evidence in favor of any and every Person
relying thereon or claiming thereunder that (i) at the time of the execution
and delivery of such certificate, document or instrument, this Agreement was in
full force and effect, (ii) the Person executing and delivering such
certificate, document or instrument was duly authorized and empowered to do so
for and on behalf of the Partnership and (iii) such certificate, document or instrument
was duly executed and delivered in accordance with the terms and provisions of
this Agreement and is binding upon the Partnership.

Page 70 of 128

Article
8

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

 

Section 8.1          
Limitation of Liability.  No Limited Partner shall have any liability
under this Agreement except as expressly provided in this Agreement (including,
without limitation, Section 10.4 hereof) or under the Act.

 

Section 8.2          
Management of Business.  No Limited Partner or Assignee (other than the
General Partner, any of its Affiliates or any officer, director, member,
employee, partner, agent or trustee of the General Partner, the Partnership or
any of their Affiliates, in their capacity as such) shall take part in, or have
any liability in respect of, the operations, management or control (within the
meaning of the Act) of the Partnership’s business, transact any business in the
Partnership’s name or have the power to sign documents for or otherwise bind
the Partnership. The transaction of any such business by the General Partner,
any of its Affiliates or any officer, director, member, employee, partner,
agent, representative, or trustee of the General Partner, the Partnership or
any of their Affiliates, in their capacity as such, shall not affect, impair or
eliminate the limitations on the liability of the Limited Partners or Assignees
under this Agreement.

 

Section 8.3          
Outside Activities of Limited Partners.  Subject to any agreements entered into
pursuant to Section 7.6 hereof and any other agreements entered into by a
Limited Partner or any of its Affiliates with the General Partner, the
Partnership or a Subsidiary (including, without limitation, any employment
agreement), any Limited Partner and any Assignee, officer, director, employee,
agent, trustee, Affiliate, member or stockholder of any Limited Partner shall
be entitled to and may have business interests and engage in business
activities in addition to those relating to the Partnership, including business
interests and activities that are in direct or indirect competition with the
Partnership or that are enhanced by the activities of the Partnership. Neither
the Partnership nor any Partner shall have any rights by virtue of this
Agreement in any business ventures of any Limited Partner or Assignee. Subject
to such agreements, none of the Limited Partners nor any other Person shall
have any rights by virtue of this Agreement or the partnership relationship
established hereby in any business ventures of any other Person (other than the
General Partner), and such Person shall have no obligation pursuant to this
Agreement, subject to Section 7.6 hereof and any other agreements entered into
by a Limited Partner or its Affiliates with the General Partner, the
Partnership or a Subsidiary, to offer any interest in any such business
ventures to the Partnership, any Limited Partner, or any such other Person,
even if such opportunity is of a character that, if presented to the
Partnership, any Limited Partner or such other Person, could be taken by such
Person. In deciding whether to take any actions in such capacity, the Limited
Partners and their respective Affiliates shall be under no obligation to
consider the separate interests of the Partnership or its subsidiaries and to
the maximum extent permitted by applicable law shall have no fiduciary duties
or similar obligations to the Partnership or any other Partners, or to any
subsidiary of the Partnership, and shall not be liable for monetary damages for
losses sustained, liabilities incurred or benefits not derived by the other
Partners in connection with such acts except for liability for fraud, willful
misconduct or gross negligence.

 

Section 8.4          
Return of Capital.  Except pursuant to the rights of Redemption
set forth in Section 15.1 hereof, no Limited Partner shall be entitled to the
withdrawal or return of its Capital 

Page 71 of 128

Contribution, except to the extent of
distributions made pursuant to this Agreement or upon termination of the
Partnership as provided herein. Except to the extent provided in Articles 5 and
6 hereof or otherwise expressly provided in this Agreement, no Limited Partner
or Assignee shall have priority over any other Limited Partner or Assignee
either as to the return of Capital Contributions or as to profits, losses or
distributions.

 

Section 8.5          
Rights of Limited Partners Relating to the
Partnership. 

 

A.                 
In addition to other rights provided by this
Agreement or by the Act, and except as limited by Section 8.5.0 hereof, the
General Partner shall deliver to each Limited Partner a copy of any information
mailed or delivered electronically to all of the common stockholders of the General
Partner as soon as practicable after such mailing.

 

B.                 
The Partnership shall notify any Limited Partner
that is a Qualifying Party, on request, of the then current Adjustment Factor
and any change made to the Adjustment Factor shall be set forth in the
quarterly report required by Section 9.3.B hereof immediately following the
date such change becomes effective.

 

C.                 
Notwithstanding any other provision of this
Section 8.5, the General Partner may keep confidential from the Limited
Partners (or any of them), for such period of time as the General Partner
determines in its sole and absolute discretion to be reasonable, any
information that (i) the General Partner believes to be in the nature of trade
secrets or other information the disclosure of which the General Partner in
good faith believes is not in the best interests of the Partnership or the
General Partner or (ii) the Partnership or the General Partner is required by
law or by agreement to keep confidential.

 

D.                
Upon written request by any Limited Partner, the
General Partner shall cause the ownership of Partnership Units by such Limited
Partner to be evidenced by a certificate for units in such form as the General
Partner may determine with respect to any class of Partnership Units issued
from time to time under this Agreement. Any officer of the General Partner may
direct a new certificate or certificates to be issued in place of any
certificate or certificates theretofore issued by the Partnership alleged to
have been lost, destroyed, stolen or mutilated, upon the making of an affidavit
of that fact by the person claiming the certificate to be lost, destroyed,
stolen or mutilated. Unless otherwise determined by an officer of the General
Partner, the owner of such lost, destroyed, stolen or mutilated certificate or
certificates, or his or her legal representative, shall be required, as a
condition precedent to the issuance of a new certificate or certificates, to
give the Partnership a bond in such sums as the General Partner may direct as
indemnity against any claim that may be made against the Partnership.

 

Section 8.6          
Partnership Right to Call Limited Partner
Interests.  Notwithstanding any other
provision of this Agreement, on and after the date on which the aggregate
Percentage Interests of the Limited Partners are less than one percent (1%),
the Partnership shall have the right, but not the obligation, from time to time
and at any time to redeem any and all outstanding Limited Partner Interests by
treating any Limited Partner as a Tendering Party who has delivered a Common
Unit Notice of Redemption for the amount of Common Units to be specified by the
General Partner, in its sole and absolute discretion, by notice to such Limited
Partner that the Partnership has elected to exercise its rights under this
Section 8.6. Such notice given by the

Page 72 of 128

General Partner to a Limited Partner
pursuant to this Section 8.6 shall be treated as if it were a Common Unit
Notice of Redemption delivered to the General Partner by such Limited Partner.
For purposes of this Section 8.6, (a) any Limited Partner (whether or not
otherwise a Qualifying Party) may, in the General Partner’s sole and absolute
discretion, be treated as a Qualifying Party that is a Tendering Party, as
applicable, and (b) the provisions of Sections 15.1.F(2) and 15.1.F(3) hereof
shall not apply, but the remainder of Section 15.1 hereof shall apply, mutatis
mutandis.

 

Section 8.7          
Rights as Objecting Partner.  No Limited Partner and no Holder of a
Partnership Interest shall be entitled to exercise any of the rights of an
objecting stockholder provided for under Title 3, Subtitle 2 of the Maryland
General Corporation Law or any successor statute in connection with a merger of
the Partnership.

 

Article
9

BOOKS, RECORDS, ACCOUNTING AND REPORTS

 

Section 9.1          
Records and Accounting. 

 

A.                 
The General Partner shall keep or cause to be
kept at the principal place of business of the Partnership any records and
documents required to be maintained by the Act and any other books and records
deemed by the General Partner to be appropriate with respect to the
Partnership’s business, including, without limitation, all books and records
necessary to provide to the Limited Partners any information, lists and copies
of documents required to be provided pursuant to Section 8.5.A, Section 9.3 or
Article 13 hereof. Any records maintained by or on behalf of the Partnership in
the regular course of its business may be kept on any information storage
device, provided, that the records so maintained are convertible into clearly
legible written form within a reasonable period of time.

B.                 
The books of the Partnership shall be
maintained, for financial and tax reporting purposes, on an accrual basis in
accordance with generally accepted accounting principles, or on such other
basis as the General Partner determines to be necessary or appropriate. To the
extent permitted by sound accounting practices and principles, the Partnership
and the General Partner may operate with integrated or consolidated accounting
records, operations and principles.

 

Section 9.2          
Partnership Year.  For purposes of this Agreement, “Partnership
Year” means the fiscal year of the Partnership, which shall be the same
as the tax year of the Partnership. The tax year shall be the calendar year
unless otherwise required by the Code.

 

Section 9.3          
Reports. 

 

A.                 
As soon as practicable, but in no event later
than one hundred five (105) days after the close of each Partnership Year, the
General Partner shall cause to be mailed to each Limited Partner of record as
of the close of the Partnership Year, financial statements of the Partnership,
or of the General Partner if such statements are prepared solely on a
consolidated basis with the General Partner, for such Partnership Year,
presented in accordance with generally accepted accounting principles, such
statements to be audited by a nationally recognized firm of independent public
accountants selected by the General Partner.

Page 73 of 128

B.                 
As soon as practicable, but in no event later
than sixty (60) days after the close of each calendar quarter (except the last
calendar quarter of each year), the General Partner shall cause to be mailed to
each Limited Partner of record as of the last day of the calendar quarter, a
report containing unaudited financial statements of the Partnership for such
calendar quarter, or of the General Partner if such statements are prepared
solely on a consolidated basis with the General Partner, and such other
information as may be required by applicable law or regulation or as the
General Partner determines to be appropriate.

 

C.                 
The General Partner shall have satisfied its
obligations under Section 9.3.A and Section 9.3.B by posting or making
available the reports required by this Section 9.3 on the website maintained
from time to time by the Partnership or the General Partner, provided,
that such reports are able to be printed or downloaded from such website.

 

Article
10

TAX MATTERS

 

Section 10.1      Preparation
of Tax Returns.  The General Partner
shall arrange for the preparation and timely filing of all returns with respect
to Partnership income, gains, deductions, losses and other items required of
the Partnership for federal and state income tax purposes and shall use all
reasonable efforts to furnish, within ninety (90) days of the close of each
taxable year, the tax information reasonably required by Limited Partners for
federal and state income tax and any other tax reporting purposes. The Limited
Partners shall promptly provide the General Partner with such information
relating to the Contributed Properties as is readily available to the Limited
Partners, including tax basis and other relevant information, as may be
reasonably requested by the General Partner from time to time.

 

Section 10.2      Tax
Elections.  Except as otherwise provided
herein, the General Partner shall, in its sole and absolute discretion,
determine whether to make any available election pursuant to the Code,
including, but not limited to, the election under Code Section 754, and any
available tax elections under state or local tax law. The General Partner shall
have the right to seek to revoke any such election (including, without
limitation, any election under Code Section 754 or any applicable state or
local tax law) upon the General Partner’s determination in its sole and
absolute discretion that such revocation is in the best interests of the
Partners. In the event of a transfer of all or any part of the Partnership
Interest of any Partner, the Partnership, at the option of the General Partner,
may elect pursuant to Section 754 of the Code to adjust the tax basis of the
Properties. Notwithstanding anything contained in Article 5 of this Agreement
but subject to subsection (iv) of the definition of Gross Asset Value, any
adjustments made pursuant to Section 754 shall affect only the successor in
interest to the transferring Partner and in no event shall be taken into
account in establishing, maintaining or computing Capital Accounts for the
other Partners for any purpose under this Agreement. Each Partner will furnish
the Partnership with all information necessary to give effect to such election.

 

Section 10.3      Tax
Matters Partner; Partner Representative. 

 

A.                 
For each taxable year of the Partnership
beginning on or after January 1, 2018, the General Partner shall designate itself
or another Person to be the partnership representative of the Partnership (the
“Partnership Representative”) within the meaning of Section 6223
of the Code

Page 74 of 128

in accordance with Regulations Section 301.6223-1 and any other
applicable Internal Revenue Service guidance. If the Person designated by the
General Partner to serve as the Partnership Representative is not an
individual, the General Partner shall also appoint an individual (the “Designated
Individual’) through whom the Partnership Representative acts in
accordance with Regulations Section 301.6223-1 and any other applicable
Internal Revenue Service guidance. The General Partner shall also designate a
new Partnership Representative if the Partnership Representative resigns or is
deemed ineligible or appoint a new Designated Individual if the Designated
Individual resigns or is deemed ineligible. The General Partner is authorized
to revoke and replace from time to time the Partnership Representative or the
Designated Individual in accordance with Regulations Section 301.6223-1 and any
other applicable Internal Revenue Service guidance. The General Partner shall
make all designations and appointments under similar or analogous state, local
or non-U.S. laws. The Partnership Representative shall have the right and
obligation to take all actions authorized and required, respectively, by the
Code and Regulations (and, as applicable, analogous state, local and non-U.S.
laws) for the Partnership Representative. The taking of any action and the
incurring of any expense by the Partnership Representative in connection with
any applicable proceeding, except to the extent required by law, is a matter in
the sole and absolute discretion of the Partnership Representative, and the
provisions relating to indemnification of the Indemnitees set forth in Section
7.7 hereof shall be fully applicable to the Partnership Representative and the
Designated Individual, if any, acting as such.

 

B.                 
Each Partner agrees that such Partner shall not
treat any Partnership-related item inconsistently on such Partner’s federal,
state, local or non-U.S. tax return with the treatment of the item on the
Partnership’s return. Any deficiency for taxes imposed on any Partner with
respect to such Partner’s interest in the Partnership (including penalties,
additions to tax or interest imposed with respect to such taxes and any tax
deficiency imposed pursuant to Section 6226 of the Code) will be paid by such
Partner. If the Partnership is required to pay (and actually pays) an imputed
underpayment (including penalties, additions to tax or interest imposed with
respect to such taxes, pursuant to Section 6225 of the Code) with respect to a
reviewed year, or bears the economic burden of imputed underpayments made by
entities in which it is a partner, such amounts paid will be recoverable from
the reviewed-year Partners. To the extent that the Partnership or the
Partnership Representative, as applicable, does not make an election under
Sections 6221(b) (if available) or 6226 of the Code, the Partnership shall use
commercially reasonable efforts to (i) make any modifications available under
Section 6225(c) of the Code, and (ii) if requested by a Partner, provide to
such Partner information allowing such Partner to file an amended federal
income tax return, as described in Section 6225(c)(2) of the Code, to the
extent such amended return and payment of any related federal income taxes
would reduce any taxes payable by Partnership; similar principles shall apply
under state, local and non-U.S. laws. Each Limited Partner shall, including any
time after such Limited Partner withdraws from or otherwise ceases to be a
Limited Partner, take all actions requested by the General Partner, including
timely provision of requested information and consents in connection with
implementing any elections or decisions made by the Partnership or the
Partnership Representative (or Person acting in a similar capacity under
similar or analogous state, local or non-U.S. laws) related to any tax audit or
examination of the Partnership (including to implement any modifications to any
imputed underpayment or similar amount under Section 6225(c) of the Code, any
elections under Sections 6221 or 6226 of the Code and any administrative
adjustment request under Section 6227 of the Code).

Page 75 of 128

C.                 
Notwithstanding anything to the contrary in this
Agreement, any information, representations, certificates, forms, or
documentation provided pursuant to this Section 10.3 may be disclosed to any
applicable taxing authority. Each Partner agrees to be bound by the provisions
of this Section 10.3 at all times, including any time after such Partner ceases
to be a Partner solely with respect to matters directly related to such
Partner’s interest in the Partnership, and the provisions of Section 7.8 shall
survive the winding up, liquidation and dissolution of the Partnership. For the
avoidance of doubt, all references to Code Sections in Sections 10.3.0 and
10.3.D are to such Code Sections as amended by the Bipartisan Budget Act (and
any applicable subsequent amendments thereto).

 

Section 10.4      Withholding.
 Each Limited Partner hereby authorizes
the Partnership to withhold from or pay on behalf of or with respect to such
Limited Partner any amount of federal, state, local or foreign taxes that the
General Partner determines the Partnership is required to withhold or pay with
respect to any amount distributable or allocable to such Limited Partner
pursuant to this Agreement, including, without limitation, any taxes required
to be withheld or paid by the Partnership pursuant to Code Section 1441, Code
Section 1442, Code Section 1445 or Code Section 1446. Any amount withheld with
respect to a Limited Partner pursuant to this Section 10.4 shall be treated as
paid or distributed, as applicable, to such Limited Partner for all purposes
under this Agreement. Any amount paid on behalf of or with respect to a Limited
Partner, in excess of any such withheld amount, shall constitute a loan by the
Partnership to such Limited Partner, which loan shall be repaid by such Limited
Partner within thirty (30) days after the affected Limited Partner receives
written notice from the General Partner that such payment must be made; provided,
that the Limited Partner shall not be required to repay such deemed loan if
either (i) the Partnership withholds such payment from a distribution that
would otherwise be made to the Limited Partner or (ii) the General Partner
determines, in its sole and absolute discretion, that such payment may be satisfied
out of the Available Cash of the Partnership that would, but for such payment,
be distributed to the Limited Partner. Any amounts payable by a Limited Partner
hereunder shall bear interest at the base rate on corporate loans at large
United States money center commercial banks, as published from time to time in
the Wall Street Journal (but not higher than the maximum lawful rate) from the
date such amount is due (i.e., thirty (30) days after the Limited Partner
receives written notice of such amount) until such amount is paid in full.

 

Section 10.5      Organizational
Expenses.  The General Partner may cause
the Partnership to elect to deduct expenses, if any, incurred by it in
organizing the Partnership ratably over a 180-month period as provided in
Section 709 of the Code.

 

Article
11

PARTNER TRANSFERS AND WITHDRAWALS

 

Section 11.1      Transfer. 

 

A.                 
No part of the interest of a Partner shall be
subject to the claims of any creditor, to any spouse for alimony or support, or
to legal process, and may not be voluntarily or involuntarily alienated or
encumbered except as may be specifically provided for in this Agreement.

Page 76 of 128

B.                 
No Partnership Interest shall be Transferred, in
whole or in part, except in accordance with the terms and conditions set forth
in this Article 11. Any Transfer or purported Transfer of a Partnership
Interest not made in accordance with this Article 11 shall be null and void ab
initio.

 

C.                 
No Transfer of any Partnership Interest may be
made to a lender to the Partnership or any Person who is related (within the
meaning of Section 1.752-4(b) of the Regulations) to any lender to the
Partnership whose loan constitutes a Nonrecourse Liability, without the Consent
of the General Partner; provided, however, that as
a condition to such Consent, the lender may be required to enter into an
arrangement with the Partnership and the General Partner to redeem or exchange
for the REIT Shares Amount any Partnership Units in which a security interest
is held by such lender simultaneously with the time at which such lender would
be deemed to be a partner in the Partnership for purposes of allocating
liabilities to such lender under Section 752 of the Code (provided, that for
purpose of calculating the REIT Shares Amount in this Section 11.1.C, “Tendered
Common Units” shall mean all such Partnership Units in which a security
interest is held by such lender).

 

Section 11.2      Transfer
of General Partner’s Partnership Interest. 

 

A.                 
Except as provided in this Section 11.2 and
subject to the rights of any Holder of any Partnership Interest set forth in a
Partnership Unit Designation, the General Partner shall not Transfer all or any
portion of its Partnership Interests (whether by sale, disposition, statutory
merger or consolidation, liquidation or otherwise) without the Consent of the
Common Limited Partners. It is a condition to any Transfer of a Partnership
Interest of a General Partner otherwise permitted hereunder (including any
Transfer permitted pursuant to Section 11.2.B or 11.2.C) that: (i) coincident
with such Transfer, the transferee is admitted as a General Partner pursuant to
Section 12.1 hereof; (ii) the transferee assumes, by operation of law or
express agreement, all of the obligations of the transferor General Partner
under this Agreement with respect to such Transferred Partnership Interest; and
(iii) the transferee has executed such instruments as may be necessary to
effectuate such admission and to confirm the agreement of such transferee to be
bound by all the terms and provisions of this Agreement with respect to the
Partnership Interest so acquired and the admission of such transferee as a
General Partner.

 

B.                 
Certain Transactions of the General Partner.
Subject to the rights of any Holder of any Partnership Interest set forth in a
Partnership Unit Designation, the General Partner may not, without the Consent
of the Limited Partners, transfer all of its Partnership Interests in
connection with (a) a merger, consolidation or other combination of its or the
Partnership’s assets with another entity, (b) a sale of all or substantially
all of its or the Partnership’s assets not in the ordinary course of the
Partnership’s business or (c) a reclassification, recapitalization or change
any of outstanding shares of the General Partner’s stock or other outstanding
equity interests other than in connection with a stock split, reverse stock
split, stock dividend change in par value, increase in authorized shares,
designation or issuance of new classes of equity securities or any event that
does not require the approval of the General Partner’s stockholders (each, a “Termination
Transaction”) unless:

 

(1)             
in connection with such Termination Transaction,
all of the Common Limited Partners will receive, or will have the right to
elect to receive (and shall be 

Page 77 of 128

provided the opportunity to make such an
election if the holders of REIT Shares generally are also provided such an
opportunity), for each Partnership Unit an amount of cash, securities and/or
other property equal to the product of the Adjustment Factor and the greatest
amount of cash, securities or other property paid to a holder of one REIT Share
in consideration of one REIT Share pursuant to the terms of such Termination
Transaction; provided, that if, in connection with such Termination
Transaction, a purchase, tender or exchange offer shall have been made to and
accepted by the holders of the outstanding REIT Shares, each holder of
Partnership Units shall receive, or shall have the right to elect to receive,
the greatest amount of cash, securities or other property which such holder of
Partnership Units would have received had it exercised its right to redemption
pursuant to Article 15 hereof and received REIT Shares in exchange for its
Partnership Units immediately prior to the expiration of such purchase, tender
or exchange offer and had thereupon accepted such purchase, tender or exchange
offer and then such Termination Transaction shall have been consummated; or

 

(2)             
all of the following conditions are met: (w)
substantially all of the assets directly or indirectly owned by the surviving
entity are owned directly or indirectly by the Partnership or another limited
partnership or limited liability company which is the survivor of a merger,
consolidation or combination of assets with the Partnership (in each case, the
“Surviving Partnership”); (x) the Common Limited Partners that held
Common Units immediately prior to such Termination Transaction own a percentage
interest of the Surviving Partnership based on the relative fair market value
of the net assets of the Partnership and the other net assets of the Surviving
Partnership immediately prior to the consummation of such transaction; (y) the
rights, preferences and privileges of Common Limited Partners in the Surviving
Partnership are at least as favorable as those in effect immediately prior to
the consummation of such transaction and as those applicable to any other
limited partners or non-managing members of the Surviving Partnership (other
than the holders of any preferred units therein); and (z) the rights of the
Common Limited Partners include at least one of the following: (a) the right to
redeem their interests in the Surviving Partnership for the consideration
available to such persons pursuant to Section 11.2.B(1) or (b) the right to
redeem their interests in the Surviving Partnership for cash on terms
substantially equivalent to those in effect with respect to their Common Units
immediately prior to the consummation of such transaction, or, if the ultimate
controlling person of the Surviving Partnership has publicly traded common
equity securities, such common equity securities, with an exchange ratio based
on the determination of relative fair market value of such securities and the
REIT Shares.

 

C.                 
Notwithstanding the other provisions of this
Article 11 (other than Section 11.6.D hereof), the General Partner may Transfer
all of its Partnership Interests at any time to any Person that is, at the time
of such Transfer an Affiliate of the General Partner, including any “qualified
REIT subsidiary” (within the meaning of Code Section 856(i)(2)), without the
Consent of any Limited Partners. The provisions of Section 11.2.B, 11.3, 11.4.A
and 11.5 hereof shall not apply to any Transfer permitted by this Section
11.2.C.

 

D.                
The General Partner may not voluntarily withdraw
as a general partner of the Partnership without the Consent of the Limited
Partners, except in connection with a Transfer of the General Partner’s entire
Partnership Interest permitted in this Article 11 or in connection with a
Termination Transaction and, in each case, upon the admission of the transferee
as a successor General Partner of the Partnership pursuant to the Act and this
Agreement.

Page 78 of 128

E.                 
Prior to the Approval Right Termination Date,
the General Partner may not consummate (x) a Termination Transaction, (y) a
merger, consolidation or other combination of the assets of the Partnership
with another entity or (z) a sale of all or substantially all of the assets of
the Partnership, in each case which transaction (a “Stockholder Vote
Transaction”) is submitted for the approval of the holders of REIT
Shares of the General Partner (a “Stockholder Vote”) unless: (i)
the General Partner first provides the Common Limited Partners with advance
notice at least equal in time to the advance notice given to holders of REIT
Shares in connection with such Stockholder Vote, (ii) in connection with such
advance notice, the General Partner provides the Common Limited Partners with
written materials describing the proposed Stockholder Vote Transaction (which
may consist of the proxy statement or registration statement used in connection
with the Stockholder Vote) and (iii) the Stockholder Vote Transaction is
approved by the holders of the Common Units (the “Partnership Vote”)
at the same level of approval as required for the Stockholder Vote (for
example, (x) if the approval of holders of outstanding REIT Shares entitled to
cast a majority of the votes entitled to be cast on the matter is required to
approve the Stockholder Vote Transaction in the Stockholder Vote, then the
approval of holders of outstanding Common Units (including votes deemed to be
cast by the General Partner) entitled to cast a majority of votes entitled to
be cast on the matter will be required to approve the Stockholder Vote
Transaction in the Partnership Vote or (y) if the approval of a majority of the
votes cast by holders of outstanding REIT Shares present at a meeting of such
holders at which a quorum is present is required to approve the Stockholder
Vote Transaction in the Stockholder Vote, then the approval of a majority of
the votes cast (including votes deemed to be cast by the General Partner) by
holders of outstanding Common Units present at a meeting of such holders at
which a quorum is present will be required to approve the Stockholder Vote
Transaction in the Partnership Vote). For purposes of the Partnership Vote, (i)
each Partner holding Common Units (other than the General Partner or any of its
Subsidiaries) shall be entitled to cast a number of votes equal to the total
number of Common Units held by such Partner as of the record date for the
Stockholder Meeting, and (ii) the General Partner and its Subsidiaries shall
not be entitled to vote thereon and shall instead be deemed to have cast a
number of votes equal to the sum of (x) the total number of Common Units held
by the General Partner as of the Record Date for the Stockholder Meeting
divided by the Adjustment Factor then in effect plus (y) the total number of
shares of unvested restricted REIT Shares with respect to which the General
Partner does not hold back-to-back Common Units as of the Record Date for the
Stockholder Meeting, in proportion to the manner in which all outstanding REIT
Shares were voted in the Stockholder Vote (for example, “For,” “Against,”
“Abstain” and “Not Present”). Any such Partnership Vote will be taken in
accordance with Section 14.3 below (including Section 14.3.B thereof permitting
actions to be taken by written consent without a meeting), mutatis mutandis to
give effect to the foregoing provisions of this Section 11.2.E, except that,
solely for purposes of determining whether a quorum is present at any meeting
of the Partners at which a Partnership Vote will occur, the General Partner
shall be considered to be entitled to cast at such meeting all votes that the
General Partner will be deemed to have cast in such Partnership Vote as
provided in this Section 11.2.E.

 

Section 11.3      Limited
Partners’ Rights to Transfer. 

Page 79 of 128

A.                 
General. Prior to the end of the Initial
Holding Period, no Limited Partner shall Transfer all or any portion of its
Partnership Interest to any transferee without the Consent of the General
Partner; provided, however, that any Limited
Partner may, at any time, without the consent or approval of the General
Partner, (i) Transfer all or part of its Partnership Interest to any Family
Member (including a Transfer by a Family Member that is an inter vivos or
testamentary trust (whether revocable or irrevocable) to a Family Member that
is a beneficiary of such trust), any Charity, any Controlled Entity or any
Affiliate, or (ii) pledge (a “Pledge”) all or any portion of its
Partnership Interest to a lending institution that is not an Affiliate of such
Limited Partner as collateral or security for a bona fide loan or other
extension of credit, and, except as provided in Section 11.1.C, Transfer such
pledged Partnership Interest to such lending institution in connection with the
exercise of remedies under such loan or extension of credit (any Transfer or
Pledge permitted by this proviso is hereinafter referred to as a “Permitted
Transfer”). After such Initial Holding Period, each Limited Partner,
and each transferee of Partnership Units or Assignee pursuant to a Permitted
Transfer, shall have the right to Transfer all or any portion of its
Partnership Interest to any Person without the Consent of the General Partner,
subject to the provisions of Sections 11.1.0 and 11.4 hereof and to
satisfaction of each of the following conditions (in addition to the right of
such Limited Partner or permitted transferee thereof to continue to make
Permitted Transfers without the need to satisfy clauses (1) through (4) below):

 

(1)             
General Partner Right of First Refusal.
The transferor Limited Partner (or the Partner’s estate in the event of the
Partner’s death) shall give written notice of the proposed Transfer to the
General Partner, which notice shall state (i) the identity and address of the
proposed transferee and (ii) the amount and type of consideration proposed to
be received for the Transferred Partnership Units. The General Partner shall
have ten (10) Business Days upon which to give the transferor Limited Partner
notice of its election to acquire the Partnership Units on the terms set forth
in such notice. If it so elects, it shall purchase the Partnership Units on
such terms within ten (10) Business Days after giving notice of such election; provided,
however, that such closing may be deferred to the extent necessary
to effect compliance with the Hart-Scott-Rodino Antitrust Act, if applicable,
and any other applicable requirements of law. If it does not so elect, the
transferor Limited Partner may Transfer such Partnership Units to a third
party, on terms no more favorable to the transferee than the proposed terms,
subject to the other conditions of this Section 11.3.

 

(2)             
Qualified Transferee. Any Transfer of a
Partnership Interest shall be made only to a single Qualified Transferee provided,
however, that, for such purposes, all Qualified Transferees that are
Affiliates, or that comprise investment accounts or funds managed by a single
Qualified Transferee and its Affiliates, shall be considered together to be a
single Qualified Transferee; and provided, further, that each Transfer meeting
the minimum Transfer restriction of Section 11.3.A(4) hereof may be to a
separate Qualified Transferee.

 

(3)             
Opinion of Counsel. The transferor
Limited Partner shall deliver or cause to be delivered to the General Partner
an opinion of counsel reasonably satisfactory to it to the effect that the
proposed Transfer may be effected without registration under the Securities Act
and will not otherwise violate the registration provisions of the Securities 

Page 80 of 128

Act and the regulations promulgated thereunder or violate any state securities
laws or regulations applicable to the Partnership or the Partnership Interests
Transferred; provided, however, that the General
Partner may, in its sole discretion, waive this condition upon the request of
the transferor Limited Partner. If, in the opinion of such counsel, such
Transfer would require the filing of a registration statement under the
Securities Act or would otherwise violate any federal or state securities laws
or regulations applicable to the Partnership or the Partnership Units, the
General Partner may prohibit any Transfer otherwise permitted under this
Section 11.3 by a Limited Partner of Partnership Interests.

 

(4)             
Minimum Transfer Restriction. Any Transferring
Partner must Transfer not less than the lesser of (i) five hundred (500)
Partnership Units or (ii) all of the remaining Partnership Units owned by such
Transferring Partner, without, in each case, the Consent of the General
Partner; provided, however that, for purposes of
determining compliance with the foregoing restriction, all Partnership Units
owned by Affiliates of a Limited Partner shall be considered to be owned by
such Limited Partner.

 

(5)             
Exception for Permitted Transfers. The
conditions of Sections 11.3.A(1) through 11.3.A(4) hereof shall not apply in
the case of a Permitted Transfer.

 

It is a condition to any Transfer otherwise permitted
hereunder (whether or not such Transfer is a Permitted Transfer or effected
during or after the Initial Holding Period) that the transferee assumes by
operation of law or express agreement all of the obligations of the transferor
Limited Partner under this Agreement with respect to such Transferred
Partnership Interest, and no such Transfer (other than pursuant to a statutory
merger or consolidation wherein all obligations and liabilities of the
transferor Partner are assumed by a successor entity by operation of law) shall
relieve the transferor Partner of its obligations under this Agreement without
the Consent of the General Partner. Notwithstanding the foregoing, any
transferee of any Transferred Partnership Interest shall be subject to any and
all restrictions on ownership or transfer of stock of the General Partner
contained in the Charter that may limit or restrict such transferee’s ability
to exercise its redemption rights, including, without limitation, the Ownership
Limit. Any transferee, whether or not admitted as a Substituted Limited
Partner, shall take subject to the obligations of the transferor hereunder.
Unless admitted as a Substituted Limited Partner, no transferee, whether by a
voluntary Transfer, by operation of law or otherwise, shall have any rights
hereunder, other than the rights of an Assignee as provided in Section 11.5
hereof.

 

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

 

C.                 
Adverse Tax Consequences. Notwithstanding
anything to the contrary in this Agreement, the General Partner shall have the
authority (but shall not be required) to take any steps it determines are
necessary or appropriate in its sole and absolute discretion to prevent the 

Page 81 of 128

Partnership from being taxable as a corporation for federal income tax
purposes. In furtherance of the foregoing, except with the Consent of the
General Partner, no Transfer by a Limited Partner of its Partnership Interests
(including any redemption, any conversion of LTIP Units or Performance Units
into Common Units, any exercise of Class A Units for Common Units, any other
acquisition of Partnership Units by the General Partner or any acquisition of
Partnership Units by the Partnership) may be made to or by any Person if such
Transfer could (i) result in the Partnership being treated as an association
taxable as a corporation, (ii) result in a termination of the Partnership under
Code Section 708, (iii) be treated as effectuated through an “established
securities market” or a “secondary market (or the substantial equivalent
thereof)” within the meaning of Code Section 7704 and the Regulations
promulgated thereunder, (iv) result in the Partnership being unable to qualify
for one or more of the “safe harbors” set forth in Regulations Section 1.7704-1
(or such other guidance subsequently published by the IRS setting forth safe
harbors under which interests will not be treated as “readily tradable on a
secondary market (or the substantial equivalent thereof)” within the meaning of
Section 7704 of the Code) (the “Safe Harbors”) or could cause the
Partnership to be treated as a “publicly traded partnership” or to be taxed as
a corporation pursuant Section 7704 of the Code or successor provisions of the
Code (as determined by the General Partner) or (v) based on the advice of
counsel to the Partnership or the General Partner, adversely affect the ability
of the General Partner to qualify or re-qualify as a REIT or subject the
General Partner to any additional taxes under Code Section 857 or Code Section
4981.

 

D.                
Restrictions Not Applicable to Redemptions or
Conversions. The provisions of this Section 11.3 (other than Section
11.3.C) shall not apply to the redemption of Common Units pursuant to Section
15.1 or the redemption or conversion of any other Partnership Units pursuant to
the terms of any Partnership Unit Designation.

 

Section 11.4      Admission
of Substituted Limited Partners. 

 

A.                 
No Limited Partner shall have the right to
substitute a transferee (including any transferees pursuant to Transfers
permitted by Section 11.3 hereof) as a Limited Partner in its place. A
transferee of the Partnership Interest of a Limited Partner may be admitted as
a Substituted Limited Partner only with the Consent of the General Partner. The
failure or refusal by the General Partner to permit a transferee of any such
interests to become a Substituted Limited Partner shall not give rise to any
cause of action against the Partnership or the General Partner. Subject to the
foregoing, an Assignee shall not be admitted as a Substituted Limited Partner
until and unless it furnishes to the General Partner (i) evidence of
acceptance, in form and substance satisfactory to the General Partner, of all the
terms, conditions and applicable obligations of this Agreement, (ii) a
counterpart signature page to this Agreement executed by such Assignee and
(iii) such other documents and instruments as the General Partner may require
in its sole discretion, to effect such Assignee’s admission as a Substituted
Limited Partner.

 

B.                 
Concurrently with, and as evidence of, the
admission of a Substituted Limited Partner, the General Partner shall update
the Register and the books and records of the Partnership to reflect the name,
address and number and class and/or series of Partnership Units of such
Substituted Limited Partner and to eliminate or adjust, if necessary, the name,
address and number of Partnership Units of the predecessor of such Substituted
Limited Partner.

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

 

Section 11.5      Assignees.
 If the General Partner does not Consent
to the admission of any permitted transferee under Section 11.3 hereof as a
Substituted Limited Partner, as described in Section 11.4 hereof, or in the
event that any Partnership Interest is deemed to have been Transferred
notwithstanding the restrictions set forth in this Article 11, such transferee
shall be considered an Assignee for purposes of this Agreement. An Assignee
shall be entitled to all the rights of an assignee of a limited partnership
interest under the Act, including the right to receive distributions from the
Partnership and the share of Net Income, Net Losses and other items of income,
gain, loss, deduction and credit of the Partnership attributable to the
Partnership Interest assigned to such transferee and the rights to Transfer the
Partnership Interest provided in this Article 11, but shall not be deemed to be
a holder of Partnership Interest for any other purpose under this Agreement
(other than as expressly provided in Section 15.1 hereof), and shall not be
entitled to effect a Consent or vote with respect to such Partnership Interest
on any matter presented to the Partners for approval (such right to Consent or
vote, to the extent provided in this Agreement or under the Act, fully
remaining with the transferor Limited Partner). In the event that any such
transferee desires to make a further Transfer of any such Partnership Interest,
such transferee shall be subject to all the provisions of this Article 11 to
the same extent and in the same manner as any Limited Partner desiring to make
a Transfer of a Limited Partner Interest.

 

Section 11.6      General
Provisions. 

 

A.                 
No Limited Partner may withdraw from the
Partnership other than as a result of (i) a permitted Transfer of all of such
Limited Partner’s Partnership Interest in accordance with this Article 11, with
respect to which the transferee becomes a Substituted Limited Partner, (ii)
pursuant to a redemption (or acquisition by the General Partner) of all of its
Partnership Interest pursuant to a redemption under Section 15.1 hereof and/or
pursuant to any Partnership Unit Designation or (iii) an acquisition by the
General Partner of all of such Limited Partner’s Partnership Interest, whether
or not pursuant to Section 15.1.B hereof.

 

B.                 
Any Limited Partner who shall Transfer all of
its Partnership Units in a Transfer (i) permitted pursuant to this Article 11
where such transferee was admitted as a Substituted Limited Partner, (ii)
pursuant to the exercise of its rights to effect a redemption of all of its
Partnership Units pursuant to Sections 15.1 hereof and/or pursuant to any
Partnership Unit Designation or (iii) to the General Partner, whether or not
pursuant to Section 15.1.B hereof, shall cease to be a Limited Partner.

 

C.                 
If any Partnership Unit is Transferred in
compliance with the provisions of this Article 11, or is redeemed by the
Partnership, or acquired by the General Partner pursuant to Section 15.1
hereof, on any day other than the first day of a Partnership Year, then Net
Income, Net Losses, each item thereof and all other items of income, gain,
loss, deduction and credit attributable to such Partnership Unit for such
Partnership Year shall be allocated to the transferor Partner or the Tendering
Party (as the case may be) and, in the case of a Transfer other than a redemption,
to the transferee Partner, by taking into account their varying interests
during the 

Page 83 of 128

Partnership Year in accordance with Code Section 706(d), using the
“interim closing of the books” method or another permissible method selected by
the General Partner. Solely for purposes of making such allocations, unless the
General Partner decides to use another method permitted under the Code, each of
such items for the calendar month in which a Transfer occurs shall be allocated
to the transferee Partner and none of such items for the calendar month in
which a Transfer or a redemption occurs shall be allocated to the transferor
Partner or the Tendering Party (as the case may be), if such Transfer occurs on
or before the fifteenth (15th) day of the month, otherwise such items shall be
allocated to the transferor. All distributions of Available Cash attributable
to such Partnership Unit with respect to which the Partnership Record Date is
before the date of such Transfer, assignment or redemption shall be made to the
transferor Partner or the Tendering Party (as the case may be) and, in the case
of a Transfer other than a redemption, all distributions of Available Cash
thereafter attributable to such Partnership Unit shall be made to the
transferee Partner.

 

D.                
Notwithstanding anything to the contrary in this
Agreement and in addition to any other restrictions on Transfer herein
contained, in no event may any Transfer of a Partnership Interest by any
Partner (including any redemption, any conversion or exercise, as applicable,
of LTIP Units, Performance Units or Class A Units into Common Units, any
acquisition of Partnership Units by the General Partner or any other
acquisition of Partnership Units by the Partnership) be made: (i) to any person
or entity who lacks the legal right, power or capacity to own a Partnership
Interest; (ii) in violation of applicable law; (iii) except with the Consent of
the General Partner, of any component portion of a Partnership Interest, such
as the Capital Account, or rights to distributions, separate and apart from all
other components of a Partnership Interest; (iv) in the event that such
Transfer could cause either the General Partner or any General Partner
Affiliate to cease to comply with the REIT Requirements or to cease to qualify
as a “qualified REIT subsidiary” (within the meaning of Code Section
856(i)(2)); (v) except with the Consent of the General Partner, if such
Transfer could, based on the advice of counsel to the Partnership or the
General Partner, cause a termination of the Partnership for federal or state
income tax purposes (except as a result of the redemption (or acquisition by
the General Partner) of all Partnership Units held by all Limited Partners);
(vi) if such Transfer could, based on the advice of legal counsel to the
Partnership, cause the Partnership to be classified as other than a partnership
for federal income tax purposes (except as a result of the redemption (or
acquisition by the General Partner) of all Partnership Units held by all
Limited Partners); (vii) if such Transfer would cause the Partnership to
become, with respect to any employee benefit plan subject to Title I of ERISA,
a “party-in-interest” (as defined in ERISA Section 3(14)) or a “disqualified
person” (as defined in Code Section 4975(c)); (viii) if such Transfer could,
based on the advice of counsel to the Partnership or the General Partner, cause
any portion of the assets of the Partnership to constitute assets of any
employee benefit plan pursuant to Department of Labor Regulations Section 2510.3-101;
(ix) if such Transfer requires the registration of such Partnership Interest
pursuant to any applicable federal or state securities laws; (x) except with
the Consent of the General Partner, if such Transfer (1) could be treated as
effectuated through an “established securities market” or a “secondary market
(or the substantial equivalent thereof)” within the meaning of Section 7704 of
the Code and the Regulations promulgated thereunder, (2) could cause the
Partnership to become a “publicly traded partnership,” as such term is defined
in Sections 469(k)(2) or 7704(b) of the Code, (3) could be in violation of
Section 3.4.C(iii), or (4) could cause the Partnership to fail one or more of
the Safe Harbors; (xi) if such Transfer causes the Partnership (as opposed to
the General Partner) to become a reporting company under the 

Page 84 of 128

Exchange Act; or
(xii) if such Transfer subjects the Partnership to regulation under the
Investment Company Act of 1940, the Investment Advisors Act of 1940 or ERISA,
each as amended. The General Partner shall, in its sole discretion, be
permitted to take all action necessary to prevent the Partnership from being
classified as a “publicly traded partnership” under Code Section 7704.

 

E.                 
Transfers pursuant to this Article 11 may only
be made on the first day of a fiscal quarter of the Partnership, unless the
General Partner otherwise Consents.

 

Article
12

ADMISSION OF PARTNERS

 

Section 12.1      Admission
of Successor General Partner.  A
successor to all of the General Partner’s General Partner Interest pursuant to
Section 11.2 hereof who is proposed to be admitted as a successor General
Partner shall be admitted to the Partnership as the General Partner, effective
immediately upon such Transfer. Any such successor shall carry on the business
of the Partnership without dissolution. In each case, the admission shall be
subject to the successor General Partner executing and delivering to the
Partnership an acceptance of all of the terms and conditions of this Agreement
and such other documents or instruments as may be required to effect the
admission. Upon any such Transfer, the transferee shall become the successor
General Partner for all purposes herein, and shall be vested with the powers
and rights of the transferor General Partner, and shall be liable for all
obligations and responsible for all duties of the General Partner. Upon any
such Transfer and the admission of any such transferee as a successor General
Partner, the transferor shall be relieved of its obligations under this
Agreement and shall cease to be a general partner of the Partnership without
the separate Consent of the Common Limited Partners or the consent or approval
of any other Partners. Concurrently with, and as evidence of, the admission of
such a successor General Partner, the General Partner shall update the Register
and the books and records of the Partnership to reflect the name, address and
number and class and/or series of Partnership Units of such successor General
Partner. In the event that the General Partner withdraws from the Partnership,
or transfers its entire Partnership Interest, in violation of this Agreement,
or otherwise dissolves or terminates or ceases to be the general partner of the
Partnership, a Majority in Interest of the Partners may elect to continue the
Partnership by selecting a successor general partner in accordance with Section
13.1.A hereof.

 

Section 12.2      Admission
of Additional Limited Partners. 

 

A.                 
A Person (other than an existing Partner) who
makes a Capital Contribution to the Partnership in exchange for Partnership
Units and in accordance with this Agreement, or is issued LTIP Units or
Performance Units in exchange for no consideration in accordance with Section
4.2.B hereof, shall be admitted to the Partnership as an Additional Limited
Partner only upon furnishing to the General Partner (i) evidence of acceptance,
in form and substance satisfactory to the General Partner, of all of the terms
and conditions of this Agreement, including, without limitation, the power of
attorney granted in Section 2.4 hereof, (ii) a counterpart signature page to
this Agreement executed by such Person and (iii) such other documents or
instruments as may be required in the sole and absolute discretion of the
General Partner in order to effect such Person’s admission as an Additional
Limited Partner.

Page 85 of 128

Concurrently with, and as evidence of, the admission of an
Additional Limited Partner, the General Partner shall update the Register and
the books and records of the Partnership to reflect the name, address and
number and classes and/or series of Partnership Units of such Additional
Limited Partner. For avoidance of doubt, a holder of Class A Units to the
extent not already a Limited Partner shall only be admitted to the Partnership
as an Additional Limited Partner in connection with the issuance of Common
Units upon exercise of such Class A Units for Common Units following compliance
with the preceding sentences of this Section 12.2.A.

 

B.                 
Notwithstanding anything to the contrary in this
Section 12.2, no Person shall be admitted as an Additional Limited Partner
without the Consent of the General Partner. The admission of any Person as an
Additional Limited Partner shall become effective on the date upon which the
name of such Person is recorded on the books and records of the Partnership,
following the Consent of the General Partner to such admission and the
satisfaction of all the conditions set forth in Section 12.2.A.

 

C.                 
If any Additional Limited Partner is admitted to
the Partnership on any day other than the first day of a Partnership Year, then
Net Income, Net Losses, each item thereof and all other items of income, gain,
loss, deduction and credit allocable among Holders for such Partnership Year
shall be allocated among such Additional Limited Partner and all other Holders
by taking into account their varying interests during the Partnership Year in
accordance with Code Section 706(d), using the “interim closing of the books”
method or another permissible method selected by the General Partner. Solely
for purposes of making such allocations, each of such items for the calendar
month in which an admission of any Additional Limited Partner occurs shall be
allocated among all the Holders including such Additional Limited Partner, in
accordance with the principles described in Section 11.6.0 hereof. All
distributions of Available Cash with respect to which the Partnership Record
Date is before the date of such admission shall be made solely to Partners and
Assignees other than the Additional Limited Partner, and all distributions of
Available Cash thereafter shall be made to all the Partners and Assignees
including such Additional Limited Partner.

 

D.                
Any Additional Limited Partner admitted to the
Partnership that is an Affiliate of the General Partner shall be deemed to be a
“General Partner Affiliate” hereunder and shall be reflected as such on the
Register and the books and records of the Partnership.

 

Section 12.3      Amendment
of Agreement and Certificate of Limited Partnership.  For the admission to the Partnership of any
Partner, the General Partner shall take all steps necessary and appropriate
under the Act to update the Register, amend the records of the Partnership and,
if necessary, to prepare as soon as practical an amendment of this Agreement
and, if required by law, shall prepare and file an amendment to the Certificate
and may for this purpose exercise the power of attorney granted pursuant to
Section 2.4 hereof.

 

Section 12.4      Limit
on Number of Partners.  Unless otherwise
permitted by the General Partner in its sole and absolute discretion, no Person
shall be admitted to the Partnership as an Additional Limited Partner if the
effect of such admission would be to cause the Partnership to have a number of
Partners that would cause the Partnership to become a reporting company under
the Exchange Act.

Page 86 of 128

Section 12.5      Admission.
 A Person shall be admitted to the Partnership
as a limited partner of the Partnership or a general partner of the Partnership
only upon strict compliance, and not upon substantial compliance, with the
requirements set forth in this Agreement for admission to the Partnership as a
Limited Partner or a General Partner.

 

Article
13

DISSOLUTION, LIQUIDATION AND TERMINATION

 

Section 13.1      Dissolution.
 The Partnership shall not be dissolved
by the admission of Substituted Limited Partners or Additional Limited
Partners, or by the admission of a successor General Partner in accordance with
the terms of this Agreement. Upon the withdrawal of the General Partner, any
successor General Partner shall continue the business and affairs of the
Partnership without dissolution. However, the Partnership shall dissolve, and
its affairs shall be wound up, upon the first to occur of any of the following
(each a “Liquidating Event”):

 

A.                 
an event of withdrawal as defined in Section
10-402(2) — (9) of the Act (including, without limitation, bankruptcy), or the
withdrawal in violation of this Agreement, of the last remaining General
Partner unless, within ninety (90) days after the withdrawal, a Majority in
Interest of the Partners remaining agree in writing, in their sole and absolute
discretion, to continue the Partnership and to the appointment, effective as of
the date of such withdrawal, of a successor General Partner;

 

B.                 
an election to dissolve the Partnership made by
the General Partner with Consent of the Common Limited Partners;

 

C.                 
entry of a decree of judicial dissolution of the
Partnership pursuant to the provisions of the Act; or

 

D.                
the redemption or other acquisition by the
Partnership or the General Partner of all Partnership Units other than
Partnership Units held by the General Partner.

 

Section 13.2      Winding
Up. 

 

A.                 
Upon the occurrence of a Liquidating Event, the
Partnership shall continue solely for the purposes of winding up its affairs in
an orderly manner, liquidating its assets and satisfying the claims of its
creditors and the Holders. After the occurrence of a Liquidating Event, no
Holder shall take any action that is inconsistent with, or not necessary to or
appropriate for, the winding up of the Partnership’s business and affairs. The
General Partner (or, in the event that there is no remaining General Partner or
the General Partner has dissolved, become bankrupt within the meaning of the
Act or ceased to operate, any Person elected by a Majority in Interest of the
Partners (the General Partner or such other Person being referred to herein as
the “Liquidator”)) shall be responsible for overseeing the winding
up and dissolution of the Partnership and shall take full account of the
Partnership’s liabilities and property, and the Partnership property shall be
liquidated as promptly as is consistent with obtaining the fair value thereof,
and the proceeds therefrom (which may, to the extent determined by the General
Partner, include shares of stock in the General Partner) shall be applied and
distributed in the following order:

Page 87 of 128

(1)             
First, to the satisfaction of all of the
Partnership’s debts and liabilities to creditors other than the Holders (whether
by payment or the making of reasonable provision for payment thereof);

 

(2)             
Second, to the satisfaction of all of the
Partnership’s debts and liabilities to the General Partner (whether by payment
or the making of reasonable provision for payment thereof), including, but not
limited to, amounts due as reimbursements under Section 7.4 hereof;

 

(3)             
Third, to the satisfaction of all of the
Partnership’s debts and liabilities to the other Holders (whether by payment or
the making of reasonable provision for payment thereof); and

 

(4)             
Fourth, to the Partners in accordance with their
positive Capital Account balances, determined after taking into account all
Capital Account adjustments for all prior periods and the Partnership taxable
year during which the liquidation occurs (other than those made as a result of
the liquidating distribution set forth in this Section 13.2.A(4)).

 

The General Partner shall not receive any additional
compensation for any services performed pursuant to this Article 13, other than
reimbursement of its expenses as set forth in Section 7.4.

 

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

 

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

Page 88 of 128

D.                
In the sole and absolute discretion of the
General Partner or the Liquidator, a pro rata portion of the distributions that
would otherwise be made to the Holders pursuant to this Article 13 may be:

 

(1)             
distributed to a trust established for the
benefit of the General Partner and the Holders for the purpose of liquidating
Partnership assets, collecting amounts owed to the Partnership, and paying any
contingent or unforeseen liabilities or obligations of the Partnership or of
the General Partner arising out of or in connection with the Partnership and/or
Partnership activities. The assets of any such trust shall be distributed to
the Holders, from time to time, in the reasonable discretion of the General
Partner, in the same proportions and amounts as would otherwise have been
distributed to the Holders pursuant to this Agreement; or

 

(2)             
withheld or escrowed to provide a reasonable
reserve for Partnership liabilities (contingent or otherwise) and to reflect
the unrealized portion of any installment obligations owed to the Partnership,
provided that such withheld or escrowed amounts shall be distributed to the
Holders in the manner and order of priority set forth in Section 13.2.A hereof
as soon as practicable.

 

E.                 
The provisions of Section 7.8 hereof shall apply
to any Liquidator appointed pursuant to this Article 13 as though the
Liquidator were the General Partner of the Partnership.

 

Section 13.3      Deemed
Contribution and Distribution.  Notwithstanding
any other provision of this Article 13, in the event that the Partnership is
liquidated within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g), but
no Liquidating Event has occurred, the Partnership’s Property shall not be
liquidated, the Partnership’s liabilities shall not be paid or discharged and
the Partnership’s affairs shall not be wound up. Instead, for federal income
tax purposes the Partnership shall be deemed to have contributed all of its
assets and liabilities to a new partnership in exchange for an interest in the
new partnership; and immediately thereafter, distributed Partnership Units to
the Partners in the new partnership in accordance with their respective Capital
Accounts in liquidation of the Partnership, and the new partnership is deemed
to continue the business of the Partnership. Nothing in this Section 13.3 shall
be deemed to have constituted a Transfer to an Assignee as a Substituted
Limited Partner without compliance with the provisions of Section 11.4 or
Section 13.3 hereof.

 

Section 13.4      Rights
of Holders.  Except as otherwise provided
in this Agreement and subject to the rights of any Holder of any Partnership
Interest set forth in a Partnership Unit Designation, (a) each Holder shall
look solely to the assets of the Partnership for the return of its Capital
Contribution, (b) no Holder shall have the right or power to demand or receive
property other than cash from the Partnership and (c) no Holder shall have
priority over any other Holder as to the return of its Capital Contributions,
distributions or allocations.

 

Section 13.5      Notice
of Dissolution.  In the event that a
Liquidating Event occurs or an event occurs that would, but for an election or
objection by one or more Partners pursuant to Section 13.1 hereof, result in a
dissolution of the Partnership, the General Partner or Liquidator shall, within
thirty (30) days thereafter, provide written notice thereof to each Holder and,
in the General Partner’s or Liquidator’s sole and absolute discretion or as
required by the Act, to all other parties with whom the Partnership regularly
conducts business (as determined in the sole and absolute discretion of the
General Partner or Liquidator), and the General Partner or Liquidator may, or,
if required by the Act, shall, publish notice thereof in a newspaper of general
circulation in each place in which the Partnership regularly conducts business
(as determined in the sole and absolute discretion of the General Partner or
Liquidator).

Page 89 of 128

Section 13.6      Cancellation
of Certificate of Limited Partnership.  Upon
the completion of the liquidation of the Partnership cash and property as
provided in Section 13.2 hereof, the Partnership shall be terminated, a
certificate of cancellation shall be filed with the SDAT, all qualifications of
the Partnership as a foreign limited partnership or association in
jurisdictions other than the State of Maryland shall be cancelled, and such
other actions as may be necessary to terminate the Partnership shall be taken.

 

Section 13.7      Reasonable
Time for Winding-Up.  A reasonable time
shall be allowed for the orderly winding-up of the business and affairs of the
Partnership and the liquidation of its assets pursuant to Section 13.2 hereof,
in order to minimize any losses otherwise attendant upon such winding-up, and
the provisions of this Agreement shall remain in effect between and among the
Partners during the period of liquidation; provided, however, reasonable
efforts shall be made to complete such winding-up within twenty-four (24)
months after the adoption of a plan of liquidation of the General Partner, as
provided in Section 562(b)(1)(B) of the Code, if necessary, in the sole and
absolute discretion of the General Partner.

 

Article
14

PROCEDURES FOR ACTIONS AND CONSENTS

OF PARTNERS; AMENDMENTS; MEETINGS

 

Section 14.1      Procedures
for Actions and Consents of Partners.  The
actions requiring Consent of any Partner pursuant to this Agreement, including
Section 7.3 hereof, or otherwise pursuant to applicable law, are subject to the
procedures set forth in this Article 14.

 

Section 14.2      Amendments.
 Amendments to this Agreement may be
proposed by the General Partner or by Limited Partners holding twenty-five
percent (25%) or more of the Partnership Interests held by Limited Partners
and, except as set forth in Section 7.3.0 and subject to Sections 7.3.D, 18.10
and 19.10 and the rights of any Holder of any Partnership Interest set forth in
a Partnership Unit Designation, shall be approved by the Consent of the
Partners. Following such proposal, the General Partner shall submit to the
Partners entitled to vote thereon any proposed amendment that, pursuant to the
terms of this Agreement, requires the consent, approval or vote of such
Partners. The General Partner shall seek the consent, approval or vote of the
Partners entitled to vote thereon on any such proposed amendment in accordance
with Section 14.3 hereof. Upon obtaining any such Consent, or any other Consent
required by this Agreement, and without further action or execution by any
other Person, including any Limited Partner, (i) any amendment to this
Agreement may be implemented and reflected in a writing executed solely by the
General Partner, and (ii) the Limited Partners shall be deemed a party to and
bound by such amendment of this Agreement. For the avoidance of doubt,
notwithstanding anything to the contrary in this Agreement, this Agreement may
not be amended without the Consent of the General Partner.

Page 90 of 128

Section 14.3      Meetings
of the Partners. 

 

A.                 
Meetings of the Partners may be called only by
the General Partner to transact any business that the General Partner
determines. The call shall state the nature of the business to be transacted.
Notice of any such meeting shall be given to all Partners entitled to act at
the meeting not less than seven (7) days nor more than sixty (60) days prior to
the date of such meeting. Partners may vote in person or by proxy at such
meeting. Unless approval by a different number or proportion of the Partners is
required by this Agreement, the affirmative vote of Partners holding a majority
of the Percentage Interests held by the Partners entitled to act on any
proposal shall be sufficient to approve such proposal at a meeting of the
Partners. Whenever the vote, consent or approval of Partners is permitted or
required under this Agreement, such vote, consent or approval may be given at a
meeting of Partners or in accordance with the procedure prescribed in Section
14.3.B hereof.

 

B.                 
Any action requiring the Consent of any Partner
or group of Partners pursuant to this Agreement or that is required or permitted
to be taken at a meeting of the Partners may be taken without a meeting if a
consent in writing or by electronic transmission setting forth the action so
taken or consented to is given by Partners whose affirmative vote would be
sufficient to approve such action or provide such Consent at a meeting of the
Partners. Such consent may be in one instrument or in several instruments, and
shall have the same force and effect as the affirmative vote of such Partners
at a meeting of the Partners. Such consent shall be filed with the General
Partner. An action so taken shall be deemed to have been taken at a meeting
held on the effective date so certified. For purposes of obtaining a Consent in
writing or by electronic transmission, the General Partner may require a
response within a reasonable specified time, but not less than fifteen (15)
days, and failure to respond in such time period shall constitute a Consent
that is consistent with the General Partner’s recommendation with respect to
the proposal; provided, however, that an action shall
become effective at such time as requisite Consents are received even if prior
to such specified time.

 

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

 

D.                
The General Partner may set, in advance, a
record date for the purpose of determining the Partners (i) entitled to Consent
to any action, (ii) entitled to receive notice of or vote at any meeting of the
Partners or (iii) in order to make a determination of Partners for any other
proper purpose. Such date, in any case, shall not be prior to the close of
business on the day the record date is fixed and shall be not more than ninety
(90) days and, in the case of a meeting of the Partners, not less than five (5)
days, before the date on which the meeting is to be held or Consent is to be
given. If no record date is fixed, the record date for the determination of
Partners entitled to notice of or to vote at a meeting of the Partners shall be
at the close of business on the day on which the notice of the meeting is sent,
and the record date for any other determination of Partners shall be the
effective date of such Partner action, distribution or other event. When a
determination of the Partners entitled to vote at any meeting of the Partners
has been made as provided in this section, such determination shall apply to
any adjournment thereof.

Page 91 of 128

E.                 
Each meeting of Partners shall be conducted by
the General Partner or such other Person as the General Partner may appoint
pursuant to such rules for the conduct of the meeting as the General Partner or
such other Person deems appropriate in its sole and absolute discretion.
Without limitation, meetings of Partners may be conducted in the same manner as
meetings of the General Partner’s stockholders and may be held at the same time
as, and as part of, the meetings of the General Partner’s stockholders.

 

Article
15

GENERAL PROVISIONS

 

Section 15.1      Redemption
Rights of Qualifying Parties.

 

A.                 
After the expiration of the applicable Initial
Holding Period, a Qualifying Party shall have the right (subject to the terms
and conditions set forth herein) (the “Redemption Right”) to
require the Partnership to redeem all or a portion of the Common Units held by
a Tendering Party (Common Units that have in fact been tendered for redemption
being hereafter referred to as “Tendered Common Units”) in
exchange (a “Redemption”) for the Cash Amount payable on the
Specified Redemption Date. The Partnership may, in the General Partner’s sole
and absolute discretion, redeem Tendered Common Units at the request of the
Qualifying Party prior to the end of the applicable Initial Holding Period
(subject to the terms and conditions set forth herein (including the expiration
of the applicable Specified Redemption Date)) (a “Special Redemption”);
provided, however, that the General Partner first
receives a legal opinion to the same effect as the legal opinion described in
Section 15.1.G(4) of this Agreement. Any Redemption shall be exercised pursuant
to a Common Unit Notice of Redemption delivered to the General Partner by the
Qualifying Party when exercising the Redemption right (the “Tendering
Party”). The Partnership’s obligation to effect a Redemption, however,
shall not arise or be binding against the Partnership until the earlier of (i)
the date the General Partner notifies the Tendering Party that it declines to
acquire some or all of the Tendered Common Units under Section 15.1.B hereof
following receipt of a Common Unit Notice of Redemption and (ii) the Business
Day following the Cut-Off Date. In the event of a Redemption, the Cash Amount
shall be delivered as a certified or bank check payable to the Tendering Party
or, in the General Partner’s sole and absolute discretion, in immediately
available funds, in each case, on or before the Specified Redemption Date.

 

B.                 
Notwithstanding the provisions of Section 15.1.A
hereof, on or before the close of business on the Cut-Off Date, the General
Partner may, in its sole and absolute discretion but subject to the Ownership
Limit (which shall only be applicable so long as the General Partner continues
to qualify as or realistically aspires to re-qualify as a REIT), elect to
acquire some or all of the Tendered Common Units from the Tendering Party in
exchange for REIT Shares. If the General Partner elects to acquire some or all
of the Tendered Common Units pursuant to this Section 15.1.B, the General
Partner shall give written notice thereof to the Tendering Party on or before
the close of business on the Cut-Off Date. If the General Partner elects to
acquire any of 

Page 92 of 128

the Tendered Common Units for REIT Shares, the General Partner
shall issue and deliver such REIT Shares to the Tendering Party pursuant to the
terms of this Section 15.1.B, in which case (1) the General Partner shall
assume directly the obligation with respect thereto and shall satisfy the
Tendering Party’s exercise of its Redemption Right with respect to such
Tendered Common Units and (2) such transaction shall be treated, for federal
income tax purposes, as a transfer by the Tendering Party of such Tendered
Common Units to the General Partner in exchange for the REIT Shares Amount. If
the General Partner so elects, on the Specified Redemption Date, the Tendering
Party shall sell such number of the Tendered Common Units to the General
Partner in exchange for a number of REIT Shares equal to the product of the REIT
Shares Amount and the Applicable Percentage. The Tendering Party shall submit
(i) such information, certification or affidavit as the General Partner may
reasonably require in connection with the application of the Ownership Limit to
any such acquisition and (ii) such written representations, investment letters,
legal opinions and other instruments as reasonably necessary, in the General
Partner’s view, to effect compliance with the Securities Act. In the event of a
purchase of the Tendered Common Units by the General Partner pursuant to this
Section 15.1.B, the Tendering Party shall no longer have the right to cause the
Partnership to effect a Redemption of such Tendered Common Units and, upon
notice to the Tendering Party by the General Partner, given on or before the
close of business on the Cut-Off Date, that the General Partner has elected to
acquire some or all of the Tendered Common Units pursuant to this Section
15.1.B, the obligation of the Partnership to effect a Redemption of the
Tendered Common Units as to which the General Partner’s notice relates shall
not accrue or arise. A number of REIT Shares equal to the product of the REIT
Shares Amount and the Applicable Percentage shall be delivered by the General
Partner as duly authorized, validly issued, fully paid and non-assessable REIT
Shares and, if applicable, Rights, free of any pledge, lien, encumbrance or
restriction, other than the Ownership Limit and, to the extent applicable, the
Securities Act and relevant state securities or “blue sky” laws. Neither any
Tendering Party whose Tendered Common Units are acquired by the General Partner
pursuant to this Section 15.1.B, any Partner, any Assignee nor any other
interested Person shall have any right to require or cause the General Partner
to register, qualify or list any REIT Shares owned or held by such Person,
whether or not such REIT Shares are issued pursuant to this Section 15.1.B,
with the SEC, with any state securities commissioner, department or agency,
under the Securities Act or the Exchange Act or with any stock exchange; provided,
however, that this limitation shall not be in derogation of any
registration or similar rights granted pursuant to any other written agreement
between the General Partner and any such Person. Notwithstanding any delay in
such delivery, the Tendering Party shall be deemed the owner of such REIT
Shares and such Rights for all purposes, including, without limitation, rights
to vote or consent, receive dividends, and exercise all rights, as of the
Specified Redemption Date. REIT Shares issued upon an acquisition of the
Tendered Common Units by the General Partner pursuant to this Section 15.1.B
may contain such legends regarding restrictions under the Securities Act and
applicable state securities laws as the General Partner in good faith
determines to be necessary or advisable in order to ensure compliance with such
laws.

 

C.                 
Notwithstanding the provisions of Section 15.1.A
and 15.1.B hereof and so long as the General Partner continues to qualify as a
REIT, the Tendering Parties shall have no rights under this Agreement that
would otherwise be prohibited by the Ownership Limit. To the extent that any
attempted Redemption or acquisition of the Tendered Common Units by the General
Partner pursuant to Section 15.1.B hereof would be in violation of this Section
15.1.C, it shall be null and void ab initio, and the Tendering Party shall not
acquire any rights or economic interests in REIT Shares otherwise issuable by
the General Partner under Section 15.1.B hereof or cash otherwise payable under
Section 15.1.A hereof.

Page 93 of 128

D.                
If the General Partner does not elect to acquire
the Tendered Common Units pursuant to Section 15.1.B hereof: 87

 

(1)             
The Partnership may elect to raise funds for the
payment of the Cash Amount either (a) by requiring that the General Partner
contribute to the Partnership funds from the proceeds of a registered public
offering by the General Partner of REIT Shares sufficient to purchase the
Tendered Common Units or (b) from any other sources (including, but not limited
to, the sale of any Property and the incurrence of additional Debt) available
to the Partnership. Any proceeds from a public offering that are in excess of
the Cash Amount shall be for the sole benefit of the General Partner. The
General Partner shall make a Capital Contribution of any such amounts to the
Partnership for an additional General Partner Interest. Any such contribution
shall entitle the General Partner to an equitable Percentage Interest
adjustment.

 

(2)             
If the Cash Amount is not paid on or before the
Specified Redemption Date, interest shall accrue with respect to the Cash
Amount from the day after the Specified Redemption Date to and including the
date on which the Cash Amount is paid at a rate equal to the base rate on
corporate loans at large United States money center commercial banks, as
published from time to time in the Wall Street Journal (but not higher than the
maximum lawful rate).

 

E.                 
Notwithstanding the provisions of Section 15.1.B
hereof, the General Partner shall not, under any circumstances, elect to
acquire any Tendered Common Units in exchange for REIT Shares if such exchange
would be prohibited under the Charter.

 

F.                 
Notwithstanding anything herein to the contrary
(but subject to Section 15.1.0 hereof), with respect to any Redemption (or any
tender of Common Units for Redemption if the Tendered Common Units are acquired
by the General Partner pursuant to Section 15.1.B hereof) pursuant to this
Section 15.1:

 

(1)             
All Common Units acquired by the General Partner
pursuant to Section 15.1.B hereof shall automatically, and without further
action required, be converted into and deemed to be a General Partner Interest
comprised of the same number of Common Units.

 

(2)             
Subject to the Ownership Limit, no Tendering
Party may effect a Redemption for less than one thousand (1,000) Common Units
or, if such Tendering Party holds (as a Common Limited Partner or,
economically, as an Assignee) less than one thousand (1,000) Common Units, all
of the Common Units held by such Tendering Party, without, in each case, the Consent
of the General Partner.

 

(3)             
If (i) a Tendering Party surrenders its Tendered
Common Units during the period after the Partnership Record Date with respect
to a distribution and before the record date established by the General Partner
for a distribution to its stockholders of 

Page 94 of 128

some or all of its portion of such
Partnership distribution, and (ii) the General Partner elects to acquire any of
such Tendered Common Units in exchange for REIT Shares pursuant to Section
15.1.B, such Tendering Party shall pay to the General Partner on the Specified
Redemption Date an amount in cash equal to the portion of the Partnership
distribution in respect of the Tendered Common Units exchanged for REIT Shares,
insofar as such distribution relates to the same period for which such
Tendering Party would receive a distribution in respect of such REIT Shares.

(4)             
The consummation of such Redemption (or an
acquisition of Tendered Common Units by the General Partner pursuant to Section
15.1.B hereof, as the case may be) shall be subject to the expiration or
termination of the applicable waiting period, if any, under the
Hart-Scott-Rodino Act.

 

(5)             
The Tendering Party shall continue to own
(subject, in the case of an Assignee, to the provisions of Section 11.5 hereof)
all Common Units subject to any Redemption, and be treated as a Common Limited
Partner or an Assignee, as applicable, with respect to such Common Units for
all purposes of this Agreement, until such Common Units are either paid for by
the Partnership pursuant to Section 15.1.A hereof or transferred to the General
Partner and paid for, by the issuance of the REIT Shares, pursuant to Section
15.1.B hereof on the Specified Redemption Date. Until a Specified Redemption
Date and an acquisition of the Tendered Common Units by the General Partner
pursuant to Section 15.1.B hereof, the Tendering Party shall have no rights as
a stockholder of the General Partner with respect to the REIT Shares issuable
in connection with such acquisition.

 

G.                 
In connection with an exercise of the Redemption
Right pursuant to this Section 15.1, except as otherwise agreed by the General
Partner, in its sole and absolute discretion, the Tendering Party shall submit
the following to the General Partner, in addition to the Common Unit Notice of
Redemption:

 

(1)             
A written affidavit, dated the same date as the
Common Unit Notice of Redemption, (a) disclosing the actual and constructive
ownership, as determined for purposes of Code Sections 856(a)(6) and 856(h), of
REIT Shares by (i) such Tendering Party and (ii) to the best of their knowledge
any Related Party and (b) representing that, after giving effect to the
Redemption or an acquisition of the Tendered Common Units by the General
Partner pursuant to Section 15.1.B hereof, neither the Tendering Party nor to
the best of their knowledge any Related Party will own REIT Shares in violation
of the Ownership Limit;

 

(2)             
A written representation that neither the
Tendering Party nor to the best of their knowledge any Related Party has any
intention to acquire any additional REIT Shares prior to the closing of the
Redemption or an acquisition of the Tendered Common Units by the General
Partner pursuant to Section 15.1.B hereof on the Specified Redemption Date; and

 

(3)             
An undertaking to certify, at and as a condition
to the closing of (i) the Redemption or (ii) the acquisition of the Tendered
Common Units by the General Partner pursuant to Section 15.1.B hereof on the
Specified Redemption Date, that either (a) the actual and constructive
ownership of REIT Shares by the Tendering Party and to the best of their
knowledge any Related Party remain unchanged from that disclosed in the
affidavit required by Section 15.1.G(1) or (b) after giving effect to the
Redemption or an acquisition of the Tendered Common Units by the General
Partner pursuant to Section 15.1.B hereof, neither the Tendering Party nor to
the best of their knowledge any Related Party shall own REIT Shares in
violation of the Ownership Limit.

Page 95 of 128

(4)             
In connection with any Special Redemption, the
General Partner shall have the right to receive an opinion of counsel
reasonably satisfactory to it to the effect that the proposed Special
Redemption will not cause the Partnership or the General Partner to violate any
federal or state securities laws or regulations applicable to the Special
Redemption, the issuance and sale of the Tendered Common Units to the Tendering
Party or the issuance and sale of REIT Shares to the Tendering Party pursuant
to Section 15.1.B of this Agreement.

 

H.                
LTIP Unit, Performance Unit and Class A Unit
Exception and Redemption of Common Units Issued Upon Conversion of LTIP Units
or Performance Units or Exercise of Class A Units. Holders of LTIP Units and
Performance Units and holders of Class A Units shall not be entitled to the
right of Redemption provided for in Section 15.1 of this Agreement, unless and
until such LTIP Units, Performance Units or Class A Units, as applicable, have
been converted into or exercised for, as applicable, Common Units (or any other
class or series of Common Units entitled to such right of Redemption) in
accordance with their terms.

 

Section 15.2      Addresses
and Notice.  Any notice, demand, request
or report required or permitted to be given or made to a Partner or Assignee
under this Agreement shall be in writing and shall be deemed given or made when
delivered in person or when sent by first class United States mail or by other
means of written or electronic communication (including by telecopy, facsimile,
electronic mail or commercial courier service) to the Partner or Assignee at
the address set forth in the Register or such other address of which the
Partner shall notify the General Partner in accordance with this Section 15.2.

 

Section 15.3      Titles
and Captions.  All article or section
titles or captions in this Agreement are for convenience only. They shall not
be deemed part of this Agreement and in no way define, limit, extend or
describe the scope or intent of any provisions hereof. Except as specifically
provided otherwise, references to “Articles” or “Sections” are to Articles and
Sections of this Agreement.

 

Section 15.4      Pronouns
and Plurals.  Whenever the context may
require, any pronouns used in this Agreement shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns, pronouns
and verbs shall include the plural and vice versa.

 

Section 15.5      Further
Action.  The parties shall execute and
deliver all documents, provide all information and take or refrain from taking
action as may be necessary or appropriate to achieve the purposes of this
Agreement.

Page 96 of 128

Section 15.6      Binding
Effect.  This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their heirs, executors,
administrators, successors, legal representatives and permitted assigns.

 

Section 15.7      Waiver. 

 

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

 

B.                 
The restrictions, conditions and other
limitations on the rights and benefits of the Limited Partners contained in
this Agreement, and the duties, covenants and other requirements of performance
or notice by the Limited Partners, are for the benefit of the Partnership and,
except for an obligation to pay money to the Partnership, may be waived or
relinquished by the General Partner, in its sole and absolute discretion, on
behalf of the Partnership in one or more instances from time to time and at any
time; provided, however, that any such waiver or
relinquishment may not be made if it would have the effect of (i) creating
liability for any other Limited Partner, (ii) causing the Partnership to cease
to qualify as a limited partnership, (iii) reducing the amount of cash
otherwise distributable to the Limited Partners (other than any such reduction
that affects all of the Limited Partners holding the same class or series of
Partnership Units on a uniform or pro rata basis, if approved by a Majority in
Interest of the Partners holding such class or series of Partnership Units),
(iv) resulting in the classification of the Partnership as an association or
publicly traded partnership taxable as a corporation or (v) violating the
Securities Act, the Exchange Act or any state “blue sky” or other securities
laws; and provided, further, that any waiver
relating to compliance with the Ownership Limit or other restrictions in the
Charter shall be made and shall be effective only as provided in the Charter.

 

Section 15.8      Counterparts.
 This Agreement may be executed in
counterparts, all of which together shall constitute one agreement binding on
all the parties hereto, notwithstanding that all such parties are not
signatories to the original or the same counterpart. Each party shall become
bound by this Agreement immediately upon affixing its signature hereto.

 

Section 15.9      Applicable
Law; Consent to Jurisdiction; Waiver of Jury Trial. 

 

A.                 
This Agreement shall be construed and enforced
in accordance with and governed by the laws of the State of Maryland, without
regard to the principles of conflicts of law. In the event of a conflict
between any provision of this Agreement and any non-mandatory provision of the
Act, the provisions of this Agreement shall control and take precedence.

 

B.                 
Each Partner hereby (i) submits to the
non-exclusive jurisdiction of any state or federal court sitting in the State
of Maryland (collectively, the “Maryland Courts”), 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, (ii) irrevocably waives, and agrees 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 any of the Maryland Courts, that
its property is exempt or immune from attachment or execution, that the action
is brought in an

Page 97 of 128

inconvenient forum, or that the venue of the action is
improper, (iii) agrees that notice or the service of process in any action,
suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby shall be properly served or delivered if
delivered to such Partner at such Partner’s last known address as set forth in
the Partnership’s books and records, and (iv) irrevocably waives any and all
right to trial by jury in any legal proceeding arising out of or related to
this Agreement or the transactions contemplated hereby.

 

Section 15.10  Entire
Agreement.  This Agreement contains all
of the understandings and agreements between and among the Partners with
respect to the subject matter of this Agreement and the rights, interests and
obligations of the Partners with respect to the Partnership. Notwithstanding
the immediately preceding sentence, the Partners hereby acknowledge and agree
that the General Partner, without the approval of any Limited Partner, may
enter into side letters or similar written agreements with Limited Partners
that are not Affiliates of the General Partner, executed contemporaneously with
the admission of such Limited Partner to the Partnership, affecting the terms
hereof, as negotiated with such Limited Partner and which the General Partner
in its sole discretion deems necessary, desirable or appropriate. The parties
hereto agree that any terms, conditions or provisions contained in such side
letters or similar written agreements with a Limited Partner shall govern with
respect to such Limited Partner notwithstanding the provisions of this
Agreement.

 

Section 15.11  Invalidity
of Provisions.  If any provision of this
Agreement is or becomes invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not be affected thereby.

 

Section 15.12  Limitation
to Preserve REIT Status.  Notwithstanding
anything else in this Agreement, to the extent that the amount to be paid,
credited, distributed or reimbursed by the Partnership to any REIT Partner or
its officers, directors, employees or agents, whether as a reimbursement, fee,
expense or indemnity (a “REIT Payment”), would constitute gross
income to the REIT Partner for purposes of Code Section 856(c)(2) or Code
Section 856(c)(3), then, notwithstanding any other provision of this Agreement,
the amount of such REIT Payments, as selected by the General Partner in its
discretion from among items of potential distribution, reimbursement, fees,
expenses and indemnities, shall be reduced for any Partnership Year so that the
REIT Payments, as so reduced, for or with respect to such REIT Partner shall
not exceed the lesser of:

 

A.                 
an amount equal to the excess, if any, of (a)
four and nine-tenths percent (4.9%) of the REIT Partner’s total gross income
(but excluding the amount of any REIT Payments and any amounts excluded from
gross income pursuant to Section 856(c) of the Code) for the Partnership Year
that is described in subsections (A) through (I) of Code Section 856(c)(2) over
(b) the amount of gross income (within the meaning of Code Section 856(c)(2))
derived by the REIT Partner from sources other than those described in
subsections (A) through (I) of Code Section 856(c)(2) (but not including the
amount of any REIT Payments and any amounts excluded from gross income pursuant
to Section 856(c) of the Code); or

 

B.                 
an amount equal to the excess, if any, of (a)
twenty-four percent (24%) of the REIT Partner’s total gross income (but
excluding the amount of any REIT Payments and any amounts excluded from gross
income pursuant to Section 856(c) of the Code) for the Partnership

Page 98 of 128

Year that is
described in subsections (A) through (I) of Code Section 856(c)(3) over (b) the
amount of gross income (within the meaning of Code Section 856(c)(3)) derived
by the REIT Partner from sources other than those described in subsections (A)
through (I) of Code Section 856(c)(3) (but not including the amount of any REIT
Payments and any amounts excluded from gross income pursuant to Section 856(c)
of the Code); provided, however, that REIT Payments
in excess of the amounts set forth in clauses (i) and (ii) above may be made if
the General Partner, as a condition precedent, obtains an opinion of tax counsel
that the receipt of such excess amounts should not adversely affect the REIT
Partner’s ability to qualify as a REIT. To the extent that REIT Payments may
not be made in a Partnership Year as a consequence of the limitations set forth
in this Section 15.12, such REIT Payments shall carry over and shall be treated
as arising in the following Partnership Year if such carry over does not
adversely affect the REIT Partner’s ability to qualify as a REIT, provided,
however, that any such REIT Payment shall not be carried over
more than three Partnership Years, and any such remaining payments shall no
longer be due and payable. The purpose of the limitations contained in this
Section 15.12 is to prevent any REIT Partner from failing to qualify as a REIT
under the Code by reason of such REIT Partner’s share of items, including
distributions, reimbursements, fees, expenses or indemnities, receivable
directly or indirectly from the Partnership, and this Section 15.12 shall be
interpreted and applied to effectuate such purpose. Notwithstanding the
foregoing, this Section 15.12 shall not apply for the taxable year ending
December 31, 2020 and for any subsequent taxable year unless and until General
Partner is realistically able to re-qualify as a REIT.

 

Section 15.13  No
Partition.  No Partner nor any
successor-in-interest to a Partner shall have the right while this Agreement
remains in effect to have any property of the Partnership partitioned, or to
file a complaint or institute any proceeding at law or in equity to have such
property of the Partnership partitioned, and each Partner, on behalf of itself
and its successors and assigns hereby waives any such right. It is the
intention of the Partners that the rights of the parties hereto and their
successors-in-interest to Partnership property, as among themselves, shall be
governed by the terms of this Agreement, and that the rights of the Partners
and their respective successors-in-interest shall be subject to the limitations
and restrictions as set forth in this Agreement.

 

Section 15.14  No
Third-Party Rights Created Hereby.  The
provisions of this Agreement are solely for the purpose of defining the
interests of the Holders, inter se; and no other person, firm or entity
(i.e., a party who is not a signatory hereto or a permitted successor to such signatory
hereto including, without limitation, a creditor of the Partnership or any
Partner or other third party having dealings with the Partnership) shall have
any right, power, title or interest by way of subrogation or otherwise, in and
to the rights, powers, title and provisions of this Agreement. No creditor or
other third party having dealings with the Partnership (other than as expressly
provided herein with respect to Indemnitees) shall have the right to enforce
the right or obligation of any Partner to make Capital Contributions or loans
to the Partnership or to pursue any other right or remedy hereunder or at law
or in equity. None of the rights or obligations of the Partners herein set
forth to make Capital Contributions or loans to the Partnership shall be deemed
an asset of the Partnership for any purpose by any creditor or other third
party, nor may any such rights or obligations be sold, transferred or assigned
by the Partnership or pledged or encumbered by the Partnership to secure any
debt or other obligation of the Partnership or any of the Partners.

Page 99 of 128

Section 15.15  No
Rights as Stockholders.  Nothing
contained in this Agreement shall be construed as conferring upon the Holders
of Partnership Units any rights whatsoever as stockholders of the General
Partner, including without limitation any right to receive dividends or other
distributions made to stockholders of the General Partner or to vote or to
consent or receive notice as stockholders in respect of any meeting of
stockholders for the election of directors of the General Partner or any other
matter.

 

Article
16

SERIES A CONVERTIBLE REDEEMABLE PREFERRED UNITS

 

Section 16.1      Designation. 

 

A series of Partnership Units in the Partnership
designated as the “Series A Cumulative Redeemable Preferred Units” (the “Series
A Preferred Units”) is hereby established. The number of Series A
Preferred Units shall be 2,862.

 

Section 16.2      Distributions. 

 

A.                 
Payment of Distributions. The General
Partner, as holder of the Series A Preferred Units, will be entitled to
receive, when, as and if authorized by the General Partner, out of Available
Cash, cumulative cash distributions per Series A Preferred Unit in an amount
equal to the Series A Priority Return accrued thereon, at the applicable rate,
in accordance with this Section 16.2. Such distributions shall accrue and be
cumulative from and including April 1, 2020 (the “Series A Preferred Unit
Initial Accrual Date”) and will be payable at the then applicable rate
(each a “Series A Preferred Unit Distribution Payment Date”) (i)
for the period from the Series A Preferred Unit Initial Accrual Date to June
30, 2021, on or about July 12, 2021, (ii) except as provided in clause (iii),
for each monthly distribution period thereafter, monthly in equal amounts in
arrears on or about the 12th calendar day of each calendar month, commencing on
or about August 12, 2021, and (iii) to the extent that any Series A Preferred
Unit is redeemed pursuant to Section 4.7.B after a Series A Distribution Record
Date with respect to any distribution and before the payment date (determined
in accordance with clause (i) or (ii)) of such distribution, in the event of a
redemption of any Series A Preferred Unit, on the redemption date of such Unit;
provided however, if any Series A Preferred Unit Distribution Payment Date is
not a Business Day, then the distribution which would otherwise be payable on
such date shall be paid on the next succeeding Business Day with the same force
and effect as if paid on such Series A Preferred Unit Distribution Payment
Date, and no interest or other sum shall accrue on the amount so payable from
such Series A Preferred Unit Distribution Payment Date to such next succeeding
Business Day. Distributions will be payable on Series A Preferred Units
outstanding at the close of business on the applicable Series A Distribution
Record Date. Each distribution is payable to holders of record of outstanding
Series A Preferred Units as of the applicable Series A Distribution Record Date
or date of redemption of such Series A Preferred Unit, as applicable.
Notwithstanding any provision to the contrary contained herein, the
distribution payable on each Series A Preferred Unit outstanding on any Series
A Distribution Record Date shall be equal to the distribution paid with respect
to each other Series A Preferred Unit that is outstanding on such date.

Page 100 of 128

B.                 
Distributions Cumulative. Distributions
on the Series A Preferred Units will be cumulative from and including the
Series A Preferred Unit Initial Accrual Date, or, with respect to the special
distribution right referred to in Section 16.2.E below, from, and including,
the first date on which the dividend rate payable on the REIT Series A
Preferred Shares is increased in accordance with the Series A Preferred Shares
Terms. Distributions will accumulate from the Series A Preferred Unit Initial
Accrual Date or the most recent Series A Preferred Unit Distribution Payment
Date to which accrued distributions have been paid, whether or not the terms
and provisions set forth in Section 16.2.D hereof at any time prohibit the
current payment of distributions, whether or not the Partnership has Available
Cash or earnings and whether or not such distributions are authorized.

 

C.                 
Restrictions on Distributions. No
distributions on the Series A Preferred Units shall be authorized, declared,
paid or set apart for payment at such time as the terms and provisions of any
agreement of the General Partner, including any agreement relating to its
indebtedness, prohibits the authorization, declaration, payment or setting
apart for payment of dividends on the REIT Series A Preferred Shares or
provides that such authorization, declaration, payment or setting apart for
payment would constitute a breach thereof, or a default thereunder, or if such
declaration or payment shall be restricted or prohibited by law.

 

D.                 
Priority as to Distributions.

 

(1)             
When dividends are not paid in full upon the
Series A Preferred Units or any other class or series of Parity Preferred
Units, or a sum sufficient for such payment is not set apart, all distributions
declared upon the Series A Preferred Units and any Parity Preferred Units shall
be declared ratably in proportion to the respective amounts of distributions
accumulated, accrued and unpaid on the Series A Preferred Units and
accumulated, accrued and unpaid on such Parity Preferred Units (which shall not
include any accumulation in respect of unpaid distributions for prior
distribution periods if such Parity Preferred Units do not have a cumulative
distributions).

 

(2)             
Except as set forth in Section 16.2.D(1), unless
full cumulative distributions equal to the full amount of all accumulated,
accrued and unpaid distributions on the Series A Preferred Units have been, or
are concurrently therewith, declared and paid, or declared and set apart for
payment, for all past distribution periods, no distributions (other than
distributions paid in Units Junior to the Series A Preferred Units or options,
warrants or rights to subscribe for or purchase Units Junior to the Series A
Preferred Units) shall be declared and paid or declared and set apart for
payment by the General Partner and no other distribution of cash or other
property may be declared and made, directly or indirectly, by the General
Partner with respect to any Units Junior to the Series A Preferred Units or
Parity Preferred Units, nor shall any Units Junior to the Series A Preferred
Units or Parity Preferred Units be redeemed, purchased or otherwise acquired
(other than a redemption, purchase or other acquisition of Common Units made in
connection with a redemption, purchase or other acquisition by the General
Partner of REIT Shares in connection with an equity incentive or benefit plan
of the General Partner) for any consideration (or any monies be paid to or made
available for a sinking fund for the redemption of any shares of any such
stock), directly or indirectly, by the General Partner (except by conversion
into or exchange for Units Junior to the Series A Preferred Units, or options,
warrants or rights to subscribe for or purchase any Units Junior to the Series
A Preferred Units), nor shall any other cash or other property be paid or
distributed to or for the benefit of holders of any Units Junior to the Series
A Preferred Units or Parity Preferred Units.

Page 101 of 128

E.                 
Special Distribution Rate; Distribution
Stopper. If, at any time, and for such period of time as, the dividend rate
payable on the REIT Series A Preferred Shares is increased in accordance with
the Series A Preferred Shares Terms, the Series A Priority Return shall be
increased to 7.50% per annum on the stated value of $1,000.00 per Series A
Preferred Unit (equivalent to the fixed annual amount of $75.00 per Series A
Preferred Unit). If, at any time, and for such period of time as, the current
payment of dividends on the REIT Series A Preferred Shares is suspended and
such suspended amounts are accumulating, in accordance with the Series A
Preferred Shares Terms, then a commensurate suspension of distributions and
accumulation shall occur on the Series A Preferred Units.

 

F.                 
No Further Rights. Notwithstanding
anything in this Section 16.2, after full cumulative distributions on the
outstanding Series A Preferred Units have been paid with respect to a
distribution period, the General Partner, as holder of the Series A Preferred
Units, will not be entitled to any further distributions with respect to that
distribution period. Any distribution payment made on the Series A Preferred
Units shall first be credited against the earliest accrued but unpaid
distribution due with respect to such Series A Preferred Units which remains
payable.

 

Section 16.3      Liquidation
Preference. 

 

A.                 
Distributions. Upon any liquidation,
dissolution or winding up of the affairs of the Partnership, voluntary or
involuntary, distributions on the Series A Preferred Units shall be made in
accordance with Article 13 hereof.

 

B.                 
No Further Rights. After payment of the
full amount of the liquidating distributions to which they are entitled, the
General Partner, as holder of the Series A Preferred Units, will have no right
or claim to any of the remaining assets of the Partnership.

 

C.                 
Consolidation, Merger or Certain Other
Transactions. The consolidation or merger of the Partnership with one or
more entities or a sale or transfer of all or substantially all of the
Partnership’s assets shall not be deemed to be a liquidation, dissolution or
winding up, voluntary or involuntary, of the Partnership.

 

Section 16.4      Rank. 

 

The Series A Preferred Units shall, with respect to
distribution rights and rights upon voluntary or involuntary liquidation,
dissolution or winding up of the Partnership, rank (i) senior to the Common
Units and to all other Partnership Units, now or hereafter issued and
outstanding, the terms of which provide that such Partnership Units rank, as to
distribution rights and upon liquidation, dissolution or winding up, junior to
the Series A Preferred Units; (ii) on a parity with the Series 1 Preferred
units and all other Parity Preferred Units; and (iii) junior to any class or
series of Partnership Units the terms of which specifically provide that such
Partnership Units shall rank senior to the Series A Preferred Units.

Page 102 of 128

Section 16.5      Voting
Rights. 

 

The General Partner shall not have any voting or consent
rights in respect of its partnership interest represented by the Series A
Preferred Units.

 

Section 16.6      Transfer
Restrictions. 

 

The Series A Preferred Units shall not be transferable
except upon the redemption thereof in accordance with Section 4.7.B or to a
successor General Partner in accordance with Section 11.2.

 

Section 16.7      Conversion
Rights. 

 

The Series A Preferred Units shall not be convertible
into any other class or series of Partnership Interest or any other property of
the Partnership other than in the event that the Series A Preferred Shares are
converted into REIT Shares in accordance with the Series A Preferred Shares
Terms, in which case, on the Conversion Date (as defined in the Series A
Preferred Shares Terms), each Series A Preferred Unit shall automatically
convert into a number of Common Units equal to the number of REIT Shares issued
upon conversion of each Series A Preferred Share so converted. If the General
Partner relies upon Article FIRST Section 9 of the Series A Preferred Shares
Terms to avoid the issuance of any fractional REIT Shares in connection with a
conversion of Series A Preferred Shares into REIT Shares, the General Partner
may take any consistent action with respect to the corresponding conversion of
Series A Preferred Units to Common Units.

 

Section 16.8      No
Sinking Fund. 

 

No sinking fund shall be established for the retirement
or redemption of Series A Preferred Units.

 

Article
17

SERIES 1 CONVERTIBLE REDEEMABLE PREFERRED UNITS

 

Section 17.1      Designation. 

 

A series of Partnership Units in the Partnership
designated as the “Series 1 Cumulative Redeemable Preferred Units” (the “Series
1 Preferred Units”) is hereby established. The number of Series 1
Preferred Units shall be 39,811.

 

Section 17.2      Distributions. 

 

A.                 
Payment of Distributions. The General
Partner, as holder of the Series 1 Preferred Units, will be entitled to
receive, when, as and if authorized by the General Partner, out of Available
Cash, cumulative cash distributions per Series 1 Preferred Unit in an amount
equal to the Series 1 Priority Return accrued thereon, at the applicable rate,
in accordance with this Section 17.2. Such distributions shall accrue and be
cumulative from and including April 1, 2020 (the “Series 1 Preferred Unit
Initial Accrual Date”) and will be payable at the then applicable rate
(each a “Series 1 Preferred Unit Distribution Payment Date”) (i)
for the period from the 

Page 103 of 128

Series 1 Preferred Unit Initial Accrual Date to June
30, 2021, on or about July 12, 2021, (ii) except as provided in clause (iii),
for each monthly distribution period thereafter, monthly in equal amounts in
arrears on or about the 12th calendar day of each calendar month, commencing on
or about August 12, 2021, and (iii) to the extent that any Series 1 Preferred Unit
is redeemed pursuant to Section 4.7.B after a Series 1 Distribution Record Date
with respect to any distribution and before the payment date (determined in
accordance with clause (i) or (ii)) of such distribution, in the event of a
redemption of any Series 1 Preferred Unit, on the redemption date of such Unit;
provided however, if any Series 1 Preferred Unit Distribution Payment Date is
not a Business Day, then the distribution which would otherwise be payable on
such date shall be paid on the next succeeding Business Day with the same force
and effect as if paid on such Series 1 Preferred Unit Distribution Payment
Date, and no interest or other sum shall accrue on the amount so payable from
such Series 1 Preferred Unit Distribution Payment Date to such next succeeding
Business Day. Distributions will be payable on Series 1 Preferred Units
outstanding at the close of business on the applicable Series 1 Distribution
Record Date. Each distribution is payable to holders of record of outstanding
Series 1 Preferred Units as of the applicable Series 1 Distribution Record Date
or date of redemption of such Series 1 Preferred Unit, as applicable.
Notwithstanding any provision to the contrary contained herein, the
distribution payable on each Series 1 Preferred Unit outstanding on any Series
1 Distribution Record Date shall be equal to the distribution paid with respect
to each other Series 1 Preferred Unit that is outstanding on such date.

 

B.                 
Distributions Cumulative. Distributions
on the Series 1 Preferred Units will be cumulative from and including the
Series 1 Preferred Unit Initial Accrual Date, or, with respect to the special
distribution right referred to in Section 17.2.E below, from, and including,
the first date on which the dividend rate payable on the REIT Series 1
Preferred Shares is increased in accordance with the Series 1 Preferred Shares
Terms. Distributions will accumulate from the Series 1 Preferred Unit Initial
Accrual Date or the most recent Series 1 Preferred Unit Distribution Payment
Date to which accrued distributions have been paid, whether or not the terms
and provisions set forth in Section 17.2.D hereof at any time prohibit the
current payment of distributions, whether or not the Partnership has Available
Cash or earnings and whether or not such distributions are authorized.

 

C.                 
Restrictions on Distributions. No
distributions on the Series 1 Preferred Units shall be authorized, declared,
paid or set apart for payment at such time as the terms and provisions of any
agreement of the General Partner, including any agreement relating to its
indebtedness, prohibits the authorization, declaration, payment or setting
apart for payment of dividends on the REIT Series 1 Preferred Shares or
provides that such authorization, declaration, payment or setting apart for
payment would constitute a breach thereof, or a default thereunder, or if such
declaration or payment shall be restricted or prohibited by law.

 

D.                 
Priority as to Distributions.

 

(1)             
When dividends are not paid in full upon the
Series 1 Preferred Units or any other class or series of Parity Preferred
Units, or a sum sufficient for such payment is not set apart, all distributions
declared upon the Series 1 Preferred Units and any Parity Preferred Units shall
be declared ratably in proportion to the respective amounts of distributions
accumulated, accrued and unpaid on the Series 1 Preferred Units and 

Page 104 of 128

accumulated, accrued and unpaid on such Parity Preferred Units (which shall not
include any accumulation in respect of unpaid distributions for prior
distribution periods if such Parity Preferred Units do not have a cumulative
distributions).

 

(2)             
Except as set forth in Section 17.2.D(1), unless
full cumulative distributions equal to the full amount of all accumulated,
accrued and unpaid distributions on the Series 1 Preferred Units have been, or
are concurrently therewith, declared and paid, or declared and set apart for
payment, for all past distribution periods, no distributions (other than
distributions paid in Units Junior to the Series 1 Preferred Units or options,
warrants or rights to subscribe for or purchase Units Junior to the Series 1
Preferred Units) shall be declared and paid or declared and set apart for
payment by the General Partner and no other distribution of cash or other
property may be declared and made, directly or indirectly, by the General
Partner with respect to any Units Junior to the Series 1 Preferred Units or
Parity Preferred Units, nor shall any Units Junior to the Series 1 Preferred
Units or Parity Preferred Units be redeemed, purchased or otherwise acquired
(other than a redemption, purchase or other acquisition of Common Units made in
connection with a redemption, purchase or other acquisition by the General
Partner of REIT Shares in connection with an equity incentive or benefit plan of
the General Partner) for any consideration (or any monies be paid to or made
available for a sinking fund for the redemption of any shares of any such
stock), directly or indirectly, by the General Partner (except by conversion
into or exchange for Units Junior to the Series 1 Preferred Units, or options,
warrants or rights to subscribe for or purchase any Units Junior to the Series
1 Preferred Units), nor shall any other cash or other property be paid or
distributed to or for the benefit of holders of any Units Junior to the Series
1 Preferred Units or Parity Preferred Units.

 

E.                 
Special Distribution Rate; Distribution
Stopper. If, at any time, and for such period of time as, the dividend rate
payable on the REIT Series 1 Preferred Shares is increased in accordance with
the Series 1 Preferred Shares Terms, the Series 1 Priority Return shall be
increased to 7.00% per annum on the stated value of $1,000.00 per Series 1
Preferred Unit (equivalent to the fixed annual amount of $70.00 per Series 1
Preferred Unit). If, at any time, and for such period of time as, the current
payment of dividends on the REIT Series 1 Preferred Shares is suspended and
such suspended amounts are accumulating, in accordance with the Series 1
Preferred Shares Terms, then a commensurate suspension of distributions and
accumulation shall occur on the Series 1 Preferred Units.

 

F.                 
No Further Rights. Notwithstanding
anything in this Section 17.2, after full cumulative distributions on the
outstanding Series 1 Preferred Units have been paid with respect to a
distribution period, the General Partner, as holder of the Series 1 Preferred
Units, will not be entitled to any further distributions with respect to that
distribution period. Any distribution payment made on the Series 1 Preferred
Units shall first be credited against the earliest accrued but unpaid
distribution due with respect to such Series 1 Preferred Units which remains
payable.

 

Section 17.3      Liquidation
Preference. 

Page 105 of 128

A.                 
Distributions. Upon any liquidation,
dissolution or winding up of the affairs of the Partnership, voluntary or
involuntary, distributions on the Series 1 Preferred Units shall be made in
accordance with Article 13 hereof.

 

B.                 
No Further Rights. After payment of the
full amount of the liquidating distributions to which they are entitled, the
General Partner, as holder of the Series 1 Preferred Units, will have no right
or claim to any of the remaining assets of the Partnership.

 

C.                 
Consolidation, Merger or Certain Other
Transactions. The consolidation or merger of the Partnership with one or
more entities or a sale or transfer of all or substantially all of the
Partnership’s assets shall not be deemed to be a liquidation, dissolution or
winding up, voluntary or involuntary, of the Partnership.

 

Section 17.4      Rank. 

 

The Series 1 Preferred Units shall, with respect to distribution
rights and rights upon voluntary or involuntary liquidation, dissolution or
winding up of the Partnership, rank (i) senior to the Common Units and to all
other Partnership Units, now or hereafter issued and outstanding, the terms of
which provide that such Partnership Units rank, as to distribution rights and
upon liquidation, dissolution or winding up, junior to the Series 1 Preferred
Units; (ii) on a parity with the Series A Preferred Units and all other Parity
Preferred Units; and (iii) junior to any class or series of Partnership Units
the terms of which specifically provide that such Partnership Units shall rank
senior to the Series 1 Preferred Units.

 

Section 17.5      Voting
Rights. 

 

The General Partner shall not have any voting or consent
rights in respect of its partnership interest represented by the Series 1
Preferred Units.

 

Section 17.6      Transfer
Restrictions. 

 

The Series 1 Preferred Units shall not be transferable
except upon the redemption thereof in accordance with Section 4.7.B or to a
successor General Partner in accordance with Section 11.2.

 

Section 17.7      Conversion
Rights 

 

The Series 1 Preferred Units shall not be convertible
into any other class or series of Partnership Interest or any other property of
the Partnership other than in the event that the Series 1 Preferred Shares are
converted into REIT Shares in accordance with the Series 1 Preferred Shares
Terms, in which case, on the Conversion Date (as defined in the Series 1
Preferred Shares Terms), each Series 1 Preferred Unit shall automatically
convert into a number of Common Units equal to the number of REIT Shares issued
upon conversion of each Series 1 Preferred Share so converted. If the General
Partner relies upon Article FIRST Section 9 of the Series 1 Preferred Shares
Terms to avoid the issuance of any fractional REIT Shares in connection with a
conversion of Series 1 Preferred Shares into REIT Shares, the General Partner
may take any consistent action with respect to the corresponding conversion of
Series 1 Preferred Units to Common Units.

Page 106 of 128

Section 17.8      No
Sinking Fund. 

 

No sinking fund shall be established for the retirement
or redemption of Series 1 Preferred Units.

 

Article
18

LTIP UNITS

 

Section 18.1      Designation. 

 

A class of Partnership Units in the Partnership
designated as the “LTIP Units” is hereby established. The number of LTIP Units
that may be issued is not limited by this Agreement.

 

Section 18.2      Vesting. 

 

A.                 
Vesting, Generally. LTIP Units may, in
the sole discretion of the General Partner, be issued subject to vesting,
forfeiture and additional restrictions on Transfer pursuant to the terms of the
applicable LTIP Unit Agreement. The terms of any LTIP Unit Agreement may be
modified by the General Partner from time to time in its sole discretion,
subject to any restrictions on amendment imposed by the relevant LTIP Unit
Agreement or by the Plans or any other applicable Equity Plan. LTIP Units that
were fully vested and nonforfeitable when issued or that have vested and are no
longer subject to forfeiture under the terms of an LTIP Unit Agreement are
referred to as “Vested LTIP Units”; all other LTIP Units are
referred to as “Unvested LTIP Units.”

 

B.                 
Forfeiture. Upon the forfeiture of any
LTIP Units in accordance with the applicable LTIP Unit Agreement (including any
forfeiture effected through repurchase), the LTIP Units so forfeited (or
repurchased) shall immediately, and without any further action, be treated as
cancelled and no longer outstanding for any purpose. Unless otherwise specified
in the applicable LTIP Unit Agreement, no consideration or other payment shall
be due with respect to any LTIP Units that have been forfeited, other than any
distributions declared with respect to a Partnership Record Date and with
respect to such units prior to the effective date of the forfeiture. Except as
otherwise provided in this Agreement (including without limitation Section
6.3.A(9)), the Plans (or other applicable Equity Plan) and the applicable LTIP
Unit Agreement, in connection with any forfeiture (or repurchase) of such
units, the balance of the portion of the Capital Account of the Holder of LTIP
Units that is attributable to all of his or her LTIP Units shall be reduced by
the amount, if any, by which it exceeds the target balance contemplated by
Section 6.2.F, calculated with respect to such Holder’s remaining LTIP Units,
if any.

 

Section 18.3      Adjustments.
 The Partnership shall maintain at all
times a one-to-one correspondence between LTIP Units and Common Units for
conversion, distribution and other purposes, including without limitation
complying with the following procedures; provided, that the foregoing is not
intended to alter any of (a) the special allocations pursuant to Section 6.2.F
hereof, (b) differences between distributions to be made with respect to LTIP
Units and Common Units pursuant to Section 13.2 and Section 18.4.B hereof in
the event that the Capital Accounts attributable to the LTIP Units are less
than those attributable to Common Units due to insufficient special allocation
pursuant to Section 6.2.F or (c) any related provisions. If an 

Page 107 of 128

Adjustment Event
occurs, then the General Partner shall take any action reasonably necessary,
including any amendment to this Agreement or any LTIP Unit Agreement and/or any
update to the Register, adjusting the number of outstanding LTIP Units or
subdividing or combining outstanding LTIP Units, in any case, to maintain a
one-for-one conversion and economic equivalence ratio between Common Units and
LTIP Units. The following shall be “Adjustment Events”: (i) the
Partnership makes a distribution on all outstanding Common Units in Partnership
Units, (ii) the Partnership subdivides the outstanding Common Units into a
greater number of units or combines the outstanding Common Units into a smaller
number of units, (iii) the Partnership issues any Partnership Units in exchange
for its outstanding Common Units by way of a reclassification or
recapitalization of its Common Units or (iv) any other non-recurring event or
transaction that would, as determined by the General Partner in its sole
discretion, have the similar effect of unjustly diluting or expanding the
rights conferred by outstanding LTIP Units or Performance Units. If more than
one Adjustment Event occurs, any adjustment to the LTIP Units need be made only
once using a single formula that takes into account each and every Adjustment
Event as if all Adjustment Events occurred simultaneously. For the avoidance of
doubt, the following shall not be Adjustment Events: (x) the issuance of
Partnership Units in a financing, reorganization, acquisition or other similar
business transaction, (y) the issuance of Partnership Units pursuant to any
employee benefit or compensation plan or distribution reinvestment plan, or (z)
the issuance of any Partnership Units to the General Partner in respect of a
Capital Contribution to the Partnership of proceeds from the sale of securities
by the General Partner. If the Partnership takes an action affecting the Common
Units other than actions specifically described above as “Adjustment Events”
and in the opinion of the General Partner such action would require an action
to maintain the one-to-one correspondence described above, the General Partner
shall have the right to take such action, to the extent permitted by law, in
such manner and at such time as the General Partner, in its sole discretion,
may determine to be reasonably appropriate under the circumstances to preserve
the one-to-one correspondence described above. If an amendment is made to this
Agreement adjusting the number of outstanding LTIP Units as herein provided,
the Partnership shall promptly file in the books and records of the Partnership
an officer’s certificate setting forth a brief statement of the facts requiring
such adjustment, which certificate shall be conclusive evidence of the
correctness of such adjustment absent manifest error. Promptly after filing of
such certificate, the Partnership shall mail a notice to each Holder of LTIP
Units setting forth the adjustment to his or her LTIP Units and the effective
date of such adjustment.

 

Section 18.4      Distributions. 

 

A.                 
Operating Distributions. Except as
otherwise provided in this Agreement, in any LTIP Unit Agreement or by the
General Partner with respect to any particular class or series of LTIP Units,
Holders of LTIP Units shall be entitled to receive, if, when and as authorized
by the General Partner out of funds or other property legally available for the
payment of distributions, regular, special, extraordinary or other
distributions (other than distributions upon the occurrence of a Liquidating
Event or proceeds from a Terminating Capital Transaction) which may be made
from time to time, in an amount per unit equal to the amount of any such
distributions that would have been payable to such holders if the LTIP Units
had been Common Units (if applicable, assuming such LTIP Units were held for
the entire period to which such distributions relate).

Page 108 of 128

B.                 
Liquidating Distributions. Holders of
LTIP Units shall also be entitled to receive, if, when and as authorized by the
General Partner out of funds or other property legally available for the
payment of distributions, distributions upon the occurrence of a Liquidating
Event or representing proceeds from a Terminating Capital Transaction in an
amount per LTIP Unit equal to the amount of any such distributions payable on
one Common Unit, whether made prior to, on or after the LTIP Unit Distribution
Payment Date, provided that the amount of such distributions shall not exceed
the positive balances of the Capital Accounts of the holders of such LTIP Units
to the extent attributable to the ownership of such LTIP Units.

 

C.                 
Distributions Generally. Distributions on the
LTIP Units, if authorized, shall be payable on such dates and in such manner as
may be authorized by the General Partner (any such date, an “LTIP Unit
Distribution Payment Date”). Absent a contrary determination by the
General Partner, the LTIP Unit Distribution Payment Date shall be the same as
the corresponding date relating to the corresponding distribution on the Common
Units. The record date for determining which Holders of LTIP Units are entitled
to receive a distribution shall be the Partnership Record Date.

 

Section 18.5      Allocations.
 Holders of LTIP Units shall be allocated
Net Income and Net Loss in amounts per LTIP Unit equal to the amounts allocated
per Common Unit. The allocations provided by the preceding sentence shall be
subject to Sections 6.2.B and 6.2.0 and in addition to any special allocations
required by Section 6.2.F. The General Partner is authorized in its discretion
to delay or accelerate the participation of the LTIP Units in allocations of
Net Income and Net Loss under this Section 18.5, or to adjust the allocations
made under this Section 18.5, so that the ratio of (i) the total amount of Net
Income or Net Loss allocated with respect to each LTIP Unit in the taxable year
in which that LTIP Unit’s LTIP Unit Distribution Payment Date falls (excluding
special allocations under Section 6.2.F), to (ii) the total amount distributed
to that LTIP Unit with respect to such period, is more nearly equal to the
ratio of (i) the Net Income and Net Loss allocated with respect to the General
Partner’s Common Units in such taxable year to (ii) the amounts distributed to
the General Partner with respect to such Common Units and such taxable year.

 

Section 18.6      Transfers.
 Subject to the terms and limitations
contained in an applicable LTIP Unit Agreement and the Plans (or any other
applicable Equity Plan), and except as expressly provided in this Agreement
with respect to LTIP Units, a Holder of LTIP Units shall be entitled to
transfer his or her LTIP Units to the same extent, and subject to the same
restrictions, as Holders of Common Units are entitled to transfer their Common
Units pursuant to Article 11.

 

Section 18.7      Redemption.
 The Redemption Right provided to
Qualifying Parties under Section 15.1 shall not apply with respect to LTIP
Units unless and until they are converted to Common Units as provided in
Section 18.9 below.

 

Section 18.8      Legend.
 Any certificate evidencing an LTIP Unit
shall bear an appropriate legend, as determined by the General Partner,
indicating that additional terms, conditions and restrictions on transfer,
including without limitation under any LTIP Unit Agreement and the Plans (or
any other applicable Equity Plan), apply to the LTIP Unit.

Page 109 of 128

Section 18.9      Conversion
to Common Units. 

 

A.                 
A Qualifying Party holding LTIP Units shall have
the right (the “Conversion Right”), at his or her option, at any
time to convert all or a portion of his or her Vested LTIP Units into Common
Units, taking into account all adjustments (if any) made pursuant to Section
18.3; provided, however, that a Qualifying Party may not
exercise the Conversion Right for less than one thousand (1,000) Vested LTIP
Units or, if such Qualifying Party holds less than one thousand (1,000) Vested
LTIP Units, all of the Vested LTIP Units held by such Qualifying Party, to the
extent not subject to the limitation on conversion under Section 18.9.B below.
Qualifying Parties shall not have the right to convert Unvested LTIP Units into
Common Units until they become Vested LTIP Units; provided, however,
that in anticipation of any event that will cause his or her Unvested LTIP
Units to become Vested LTIP Units (and subject to the timing requirements set
forth in Section 18.9.B below), such Qualifying Party may give the Partnership
a Conversion Notice conditioned upon and effective as of the time of vesting
and such Conversion Notice, unless subsequently revoked by the Qualifying Party
in writing prior to such vesting event, shall be accepted by the Partnership
subject to such condition. In all cases, the conversion of any LTIP Units into
Common Units shall be subject to the conditions and procedures set forth in
this Section 18.9.

 

B.                 
A Qualifying Party may convert his or her Vested
LTIP Units into an equal number of fully paid and non-assessable Common Units,
giving effect to all adjustments (if any) made pursuant to Section 18.3.
Notwithstanding the foregoing, in no event may a Qualifying Party convert a
number of Vested LTIP Units that exceeds the Capital Account Limitation. In
order to exercise his or her Conversion Right, a Qualifying Party shall deliver
a notice (a “Conversion Notice”) in the form attached as Exhibit
C to the Partnership (with a copy to the General Partner) not less than 3
nor more than 10 days prior to a date (the “Conversion Date”)
specified in such Conversion Notice; provided, however,
that if the General Partner has not given to the Qualifying Party notice of a
proposed or upcoming Transaction (as defined below) at least thirty (30) days
prior to the effective date of such Transaction, then the Qualifying Party
shall have the right to deliver a Conversion Notice until the earlier of (x)
the tenth (10th) day after such notice from the General Partner of a
Transaction or (y) the third (3rd) Business Day immediately preceding the
effective date of such Transaction. A Conversion Notice shall be provided in
the manner provided in Section 15.2. Each Qualifying Party seeking to convert
Vested LTIP Units covenants and agrees with the Partnership that all Vested
LTIP Units to be converted pursuant to this Section 18.9 shall be free and
clear of all liens. Notwithstanding anything herein to the contrary, if the
Initial Holding Period with respect to the Common Units into which the Vested
LTIP Units are convertible has elapsed, a Qualifying Party may deliver a Notice
of Redemption pursuant to Section 15.1.A relating to such Common Units in
advance of the Conversion Date; provided, however, that
the redemption of such Common Units by the Partnership shall in no event take
place until on or after the Conversion Date. For clarity, it is noted that the
objective of this paragraph is to put a Qualifying Party in a position where,
if he or she so wishes, the Common Units into which his or her Vested LTIP
Units will be converted can be redeemed by the Partnership pursuant to Section
15.1.A simultaneously with such conversion, with the further consequence that,
if the General Partner elects to assume the Partnership’s redemption obligation
with respect to such Partnership Units under Section 15.1.B by delivering to
such Qualifying Party REIT Shares rather than cash, then such Qualifying Party
can have such REIT Shares issued to him or her simultaneously with the
conversion of his or her Vested LTIP Units into Common Units. The General
Partner shall cooperate with a Qualifying Party to coordinate the timing of the
different events described in the foregoing sentence.

Page 110 of 128

C.                 
The Partnership, at any time at the election of
the General Partner, may cause any number of Vested LTIP Units to be converted
(a “Forced Conversion”) into an equal number of Common Units,
giving effect to all adjustments (if any) made pursuant to Section 18.3; provided,
however, that the Partnership may not cause a Forced Conversion
of any LTIP Units that would not at the time be eligible for conversion at the
option of such Qualifying Party pursuant to Section 18.9.B. In order to exercise
its right of Forced Conversion, the Partnership shall deliver a notice (a “Forced
Conversion Notice”) in the form attached hereto as Exhibit D to
the applicable Holder of LTIP Units not less than 10 nor more than 60 days
prior to the Conversion Date specified in such Forced Conversion Notice. A
Forced Conversion Notice shall be provided in the manner provided in Section
15.2.

 

D.                
A conversion of Vested LTIP Units for which the
Holder thereof has given a Conversion Notice or the Partnership has given a Forced
Conversion Notice shall occur automatically after the close of business on the
applicable Conversion Date without any action on the part of such Holder of
LTIP Units, other than the surrender of any certificate or certificates
evidencing such Vested LTIP Units, as of which time such Holder of LTIP Units
shall be credited on the books and records of the Partnership as of the opening
of business on the next day with the number of Common Units into which such
LTIP Units were converted. After the conversion of LTIP Units as aforesaid, the
Partnership shall deliver to such Holder of LTIP Units, upon his or her written
request, a certificate of the General Partner certifying the number of Common
Units and remaining LTIP Units, if any, held by such person immediately after
such conversion. The Assignee of any Limited Partner pursuant to Article 11
hereof may exercise the rights of such Limited Partner pursuant to this Section
18.9 and such Limited Partner shall be bound by the exercise of such rights by
the Assignee.

 

E.                 
For purposes of making future allocations under
Section 6.2.F and applying the Capital Account Limitation, the portion of the
Economic Capital Account Balance of the applicable Holder of LTIP Units that is
treated as attributable to his or her LTIP Units shall be reduced, as of the
date of conversion, by the product of the number of LTIP Units converted and
the Common Unit Economic Balance.

 

F.                 
If the Partnership or the General Partner shall
be a party to any transaction (including without limitation a merger,
consolidation, unit exchange, self-tender offer for all or substantially all
Common Units or other business combination or reorganization, or sale of all or
substantially all of the Partnership’s assets, but excluding any transaction
which constitutes an Adjustment Event) in each case as a result of which Common
Units shall be exchanged for or converted into the right, or the Holders shall
otherwise be entitled, to receive cash, securities or other property or any
combination thereof (each of the foregoing being referred to herein as a “Transaction”),
then the General Partner shall, immediately prior to the Transaction, exercise
its right to cause a Forced Conversion with respect to the maximum number of
LTIP Units then eligible for conversion, taking into account any allocations
that occur in connection with the Transaction or that would occur in connection
with the Transaction if the assets of the Partnership were sold at the
Transaction price or, if applicable, at a value determined by the General
Partner in good faith using the value attributed to the Common Units in the
context of 

Page 111 of 128

the Transaction (in which case the Conversion Date shall be the
effective date of the Transaction and the conversion shall occur immediately
prior to the effectiveness of the Transaction). In anticipation of such Forced
Conversion and the consummation of the Transaction, the Partnership shall use
commercially reasonable efforts to cause each Holder of LTIP Units to be
afforded the right to receive in connection with such Transaction in
consideration for the Common Units into which his or her LTIP Units will be
converted the same kind and amount of cash, securities and other property (or
any combination thereof) receivable upon the consummation of such Transaction
by a Holder of the same number of Common Units, assuming such Holder is not a
Person with which the Partnership consolidated or into which the Partnership
merged or which merged into the Partnership or to which such sale or transfer
was made, as the case may be (a “Constituent Person”), or an
affiliate of a Constituent Person. In the event that Holders of Common Units
have the opportunity to elect the form or type of consideration to be received
upon consummation of the Transaction, prior to such Transaction the General
Partner shall give prompt written notice to each Holder of LTIP Units of such
opportunity, and shall use commercially reasonable efforts to afford the Holder
of LTIP Units the right to elect, by written notice to the General Partner, the
form or type of consideration to be received upon conversion of each LTIP Unit
held by such Holder into Common Units in connection with such Transaction. If a
Holder of LTIP Units fails to make such an election, such Holder (and any of
its transferees) shall receive upon conversion of each LTIP Unit held by him or
her (or by any of his or her transferees) the same kind and amount of
consideration that a Holder of Common Units would receive if such Holder of
Common Units failed to make such an election. Subject to the rights of the
Partnership and the General Partner under any LTIP Unit Agreement and the
relevant terms of the Plan or any other applicable Equity Plan, the Partnership
shall use commercially reasonable effort to cause the terms of any Transaction
to be consistent with the provisions of this Section 18.9.F and to enter into
an agreement with the successor or purchasing entity, as the case may be, for
the benefit of any Holder of LTIP Units whose LTIP Units will not be converted
into Common Units in connection with the Transaction that will (i) contain
provisions enabling the Qualifying Parties that remain outstanding after such
Transaction to convert their LTIP Units into securities as comparable as
reasonably possible under the circumstances to the Common Units and (ii)
preserve as far as reasonably possible under the circumstances the
distribution, special allocation, conversion, and other rights set forth in the
Agreement for the benefit of the Holder of LTIP Units.

 

Section 18.10  Voting.
 Limited Partners holding LTIP Units
shall have the same voting rights as Limited Partners holding Common Units,
with the LTIP Units and Performance Units voting together as a single class
with the Common Units and having one vote per LTIP Unit and Holders of LTIP
Units shall not be entitled to approve, vote on or consent to any other matter.
The foregoing voting provision will not apply if, at or prior to the time when
the action with respect to which such vote would otherwise be required will be
effected, all outstanding LTIP Units shall have been converted or provision is
made for such conversion to occur as of or prior to such time into Common
Units.

 

Section 18.11  Section
83 Safe Harbor.  Each Partner authorizes
the General Partner to elect to apply the safe harbor (the “Section 83
Safe Harbor”) set forth in proposed Regulations Section 1.83-3(1) and
proposed IRS Revenue Procedure published in Notice 2005-43 (together, the “Proposed
Section 83 Safe Harbor Regulation”) (under which the fair market value
of a Partnership Interest that is Transferred in connection with the
performance of services is treated 

Page 112 of 128

as being equal to the liquidation value of
the interest), or in similar Regulations or guidance, if such Proposed Section
83 Safe Harbor Regulation or similar Regulations are promulgated as final or
temporary Regulations. If the General Partner determines that the Partnership
should make such election, the General Partner is hereby authorized to amend
this Agreement without the consent of any other Partner to provide that (i) the
Partnership is authorized and directed to elect the Section 83 Safe Harbor,
(ii) the Partnership and each of its Partners (including any Person to whom a
Partnership Interest, including an LTIP Unit or Performance Unit, is
Transferred in connection with the performance of services) will comply with
all requirements of the Section 83 Safe Harbor with respect to all Partnership
Interests Transferred in connection with the performance of services while such
election remains in effect and (iii) the Partnership and each of its Partners
will take all actions necessary, including providing the Partnership with any
required information, to permit the Partnership to comply with the requirements
set forth or referred to in the applicable Regulations for such election to be
effective until such time (if any) as the General Partner determines, in its
sole discretion, that the Partnership should terminate such election. The
General Partner is further authorized to amend this Agreement to modify Article
6 to the extent the General Partner determines in its discretion that such
modification is necessary or desirable as a result of the issuance of any
applicable law, Regulations, notice or ruling relating to the tax treatment of
the transfer of a Partnership Interests in connection with the performance of
services. Notwithstanding anything to the contrary in this Agreement, each
Partner expressly confirms that it will be legally bound by any such amendment.

 

Article
19

PERFORMANCE UNITS

 

Section 19.1      Designation. 

 

A class of Partnership Units in the Partnership
designated as the “Performance Units” is hereby established. The number of
Performance Units that may be issued is not limited by this Agreement.

 

Section 19.2      Vesting. 

 

A.                 
Vesting, Generally. Performance Units
may, in the sole discretion of the General Partner, be issued subject to vesting,
forfeiture and additional restrictions on Transfer pursuant to the terms of the
applicable Performance Unit Agreement. The terms of any Performance Unit
Agreement may be modified by the General Partner from time to time in its sole
discretion, subject to any restrictions on amendment imposed by the relevant
Performance Unit Agreement or by the Plan or any other applicable Equity Plan.
Performance Units that were fully vested and nonforfeitable when issued or that
have vested and are no longer subject to forfeiture under the terms of a
Performance Unit Agreement are referred to as “Vested Performance Units”;
all other Performance Units are referred to as “Unvested Performance
Units.”

 

B.                 
Forfeiture. Upon the forfeiture of any
Performance Units in accordance with the applicable Performance Unit Agreement
(including any forfeiture effected through repurchase), the Performance Units
so forfeited (or repurchased) shall immediately, and without any further
action, be treated as cancelled and no longer outstanding for any purpose.
Unless otherwise specified in the applicable Performance Unit Agreement, no
consideration or other payment shall

Page 113 of 128

be due with respect to any Performance
Units that have been forfeited, other than any distributions declared with
respect to a Partnership Record Date and with respect to such units prior to
the effective date of the forfeiture. Except as otherwise provided in this
Agreement (including without limitation Section 6.3.A(9)), the Plans (or other
applicable Equity Plan) and the applicable Performance Unit Agreement, in
connection with any forfeiture (or repurchase) of such units, the balance of
the portion of the Capital Account of the Holder of Performance Units that is
attributable to all of his or her Performance Units shall be reduced by the
amount, if any, by which it exceeds the target balance contemplated by Section
6.2.F, calculated with respect to such Holder’s remaining Performance Units, if
any.

 

Section 19.3      Adjustments.
 The Partnership shall maintain at all
times a one-to-one correspondence between Performance Units and Common Units
for conversion, distribution and other purposes, including without limitation
complying with the following procedures; provided, that the foregoing is not
intended to alter any of (a) the special allocations pursuant to Section 6.2.F
hereof, (b) differences between distributions to be made with respect to
Performance Units and Common Units pursuant to Section 13.2, Section 19.4.A and
Section 19.4.B hereof in the event that the Capital Accounts attributable to
the Performance Units are less than those attributable to Common Units due to
insufficient special allocation pursuant to Section 6.2.F or (c) any related
provisions. If an Adjustment Event (as defined in Section 18.3, taking into
account events that are not considered Adjustment Events thereunder) occurs,
then the General Partner shall take any action reasonably necessary, including
any amendment to this Agreement or any Performance Unit Agreement and/or any
update to the Register, adjusting the number of outstanding Performance Units
or subdividing or combining outstanding Performance Units, in any case, to
maintain a one-for-one conversion and economic equivalence ratio between Common
Units and Performance Units. If more than one Adjustment Event occurs, any
adjustment to the Performance Units need be made only once using a single
formula that takes into account each and every Adjustment Event as if all
Adjustment Events occurred simultaneously. If the Partnership takes an action
affecting the Common Units other than actions specifically described in Section
18.3 as Adjustment Events and in the opinion of the General Partner such action
would require an action to maintain the one-to-one correspondence described
above, the General Partner shall have the right to take such action, to the
extent permitted by law, in such manner and at such time as the General
Partner, in its sole discretion, may determine to be reasonably appropriate
under the circumstances to preserve the one-to-one correspondence described
above. If an amendment is made to this Agreement adjusting the number of
outstanding Performance Units as herein provided, the Partnership shall
promptly file in the books and records of the Partnership an officer’s
certificate setting forth a brief statement of the facts requiring such
adjustment, which certificate shall be conclusive evidence of the correctness
of such adjustment absent manifest error. Promptly after filing of such
certificate, the Partnership shall mail a notice to each Holder of Performance
Units setting forth the adjustment to his or her Performance Units and the
effective date of such adjustment.

 

Section 19.4      Distributions. 

 

A.                 
Operating Distributions. Except as
otherwise provided in this Agreement, in any Performance Unit Agreement or by
the General Partner with respect to any particular class or series of
Performance Units, Holders of Performance Units shall be entitled to receive,
if, when and as authorized by the General Partner out of funds or other
property legally available for the 

Page 114 of 128

payment of distributions, regular, special,
extraordinary or other distributions (other than distributions upon the
occurrence of a Liquidating Event or proceeds from a Terminating Capital
Transaction) which may be made from time to time, in an amount per Performance
Unit equal to (i) in the case of Unvested Performance Units, the product of the
distribution made to holders of Common Units per Common Unit multiplied by the
Performance Unit Sharing Percentage, and (ii) in the case of a Vested
Performance Units, the distribution made to holders of Common Units per Common
Unit, in each case, if applicable, assuming such Performance Units were held
for the entire period to which such distributions relate.

 

B.                 
Liquidating Distributions. Holders of
Performance Units shall also be entitled to receive, if, when and as authorized
by the General Partner out of funds or other property legally available for the
payment of distributions, distributions upon the occurrence of a Liquidating
Event or representing proceeds from a Terminating Capital Transaction in an
amount per Performance Unit equal to the amount of any such distributions
payable on one Common Unit, whether made prior to, on or after the Performance
Unit Distribution Payment Date, provided that the amount of such distributions
shall not exceed the positive balances of the Capital Accounts of the holders
of such Performance Units to the extent attributable to the ownership of such
Performance Units.

 

C.                 
Distributions Generally. Distributions on
the Performance Units, if authorized, shall be payable on such dates and in
such manner as may be authorized by the General Partner (any such date, a “Performance
Unit Distribution Payment Date”). Absent a contrary determination by
the General Partner, the Performance Unit Distribution Payment Date shall be
the same as the corresponding date relating to the corresponding distribution
on the Common Units, and the record date for determining which Holders of
Performance Units are entitled to receive distributions shall be the Partnership
Record Date.

 

Section 19.5      Allocations. 

 

A.                 
Holders of Vested Performance Units shall be
allocated Net Income and Net Loss in amounts per Performance Unit equal to the
amounts allocated per Common Unit. The allocations provided by the preceding
sentence shall be subject to Sections 6.2.B and 6.2.0 and in addition to any
special allocations required by Section 6.2.F.

 

B.                 
The holder of such Unvested Performance Units
shall be allocated Net Income and Net Loss in amounts per Unvested Performance
Unit equal to the amounts allocated per Vested Performance Unit; provided,
however, that for purposes of allocations of Net Income and Net Loss
pursuant to Sections 6.2.B, 6.2.0 and 6.3, the term Percentage Interest when
used with respect to an Unvested Performance Unit shall be treated as a
fraction of one outstanding Common Unit equal to one Common Unit multiplied by
the Performance Unit Sharing Percentage.

 

C.                 
The General Partner is authorized in its
discretion to delay or accelerate the participation of the Performance Units in
allocations of Net Income and Net Loss under this Section 19.5, or to adjust
the allocations made under this Section 19.5, so that the ratio of (i) the
total amount of Net Income or Net Loss allocated with respect to each
Performance Unit in the taxable year in which that Performance Unit’s
Performance Unit Distribution Payment Date falls 

Page 115 of 128

(excluding special allocations
under Section 6.2.F), to (ii) the total amount distributed to that Performance
Unit with respect to such period, is more nearly equal to the ratio of (i) the
Net Income and Net Loss allocated with respect to the General Partner’s Common
Units in such taxable year to (ii) the amounts distributed to the General
Partner with respect to such Common Units and such taxable year.

 

Section 19.6      Transfers.
 Subject to the terms and limitations
contained in an applicable Performance Unit Agreement and the Plans (or any
other applicable Equity Plan), and except as expressly provided in this
Agreement with respect to Performance Units, a Holder of Performance Units
shall be entitled to transfer his or her Performance Units to the same extent,
and subject to the same restrictions, as Holders of Common Units are entitled
to transfer their Common Units pursuant to Article 11.

 

Section 19.7      Redemption.
 The Redemption Right provided to
Qualifying Parties under Section 15.1 shall not apply with respect to
Performance Units unless and until they are converted to Common Units as
provided in Section 19.9 below.

 

Section 19.8      Legend.
 Any certificate evidencing a Performance
Unit shall bear an appropriate legend, as determined by the General Partner,
indicating that additional terms, conditions and restrictions on transfer,
including without limitation under any Performance Unit Agreement and the Plans
(or any other applicable Equity Plan), apply to the Performance Unit.

 

Section 19.9      Conversion
to Common Units. 

 

A.                 
A Qualifying Party holding Performance Units
shall have the Conversion Right, at his or her option, at any time to convert
all or a portion of his or her Vested Performance Units into Common Units,
taking into account all adjustments (if any) made pursuant to Section 19.3; provided,
however, that a Qualifying Party may not exercise the Conversion
Right for less than one thousand (1,000) Vested Performance Units or, if such
Qualifying Party holds less than one thousand (1,000) Vested Performance Units,
all of the Vested Performance Units held by such Qualifying Party, to the
extent not subject to the limitation on conversion under Section 19.9.B below.
Qualifying Parties shall not have the right to convert Unvested Performance
Units into Common Units until they become Vested Performance Units; provided,
however, that in anticipation of any event that will cause his or
her Unvested Performance Units to become Vested Performance Units (and subject
to the timing requirements set forth in Section 19.9.B below), such Qualifying
Party may give the Partnership a Conversion Notice conditioned upon and
effective as of the time of vesting and such Conversion Notice, unless
subsequently revoked by the Qualifying Party in writing prior to such vesting
event, shall be accepted by the Partnership subject to such condition. In all
cases, the conversion of any Performance Units into Common Units shall be
subject to the conditions and procedures set forth in this Section 19.9.

 

B.                 
A Qualifying Party may convert his or her Vested
Performance Units into an equal number of fully paid and non-assessable Common
Units, giving effect to all adjustments (if any) made pursuant to Section 19.3.
Notwithstanding the foregoing, in no event may a Qualifying Party convert a
number of Vested Performance Units that exceeds the Capital Account Limitation.
In order to exercise his or her Conversion Right, a Qualifying Party shall
deliver a Conversion Notice in the form attached as Exhibit C to the
Partnership (with a copy to 

Page 116 of 128

the General Partner) not less than 3 nor more than
10 days prior to the Conversion Date specified in such Conversion Notice; provided,
however, that if the General Partner has not given to the
Qualifying Party notice of a proposed or upcoming Transaction (as defined in
Section 18.9) at least thirty (30) days prior to the effective date of such
Transaction, then the Qualifying Party shall have the right to deliver a
Conversion Notice until the earlier of (x) the tenth (10th) day after such
notice from the General Partner of a Transaction or (y) the third (3rd)
Business Day immediately preceding the effective date of such Transaction. A
Conversion Notice shall be provided in the manner provided in Section 15.2.
Each Qualifying Party seeking to convert Vested Performance Units covenants and
agrees with the Partnership that all Vested Performance Units to be converted
pursuant to this Section 19.9 shall be free and clear of all liens.
Notwithstanding anything herein to the contrary, if the Initial Holding Period
with respect to the Common Units into which the Vested Performance Units are
convertible has elapsed, a Qualifying Party may deliver a Notice of Redemption
pursuant to Section 15.1.A relating to such Common Units in advance of the
Conversion Date; provided, however, that the
redemption of such Common Units by the Partnership shall in no event take place
until on or after the Conversion Date. For clarity, it is noted that the
objective of this paragraph is to put a Qualifying Party in a position where,
if he or she so wishes, the Common Units into which his or her Vested
Performance Units will be converted can be redeemed by the Partnership pursuant
to Section 15.1.A simultaneously with such conversion, with the further
consequence that, if the General Partner elects to assume the Partnership’s
redemption obligation with respect to such Common Units under Section 15.1.B by
delivering to such Qualifying Party REIT Shares rather than cash, then such
Qualifying Party can have such REIT Shares issued to him or her simultaneously
with the conversion of his or her Vested Performance Units into Common Units.
The General Partner shall cooperate with a Qualifying Party to coordinate the
timing of the different events described in the foregoing sentence.

 

C.                 
The Partnership, at any time at the election of
the General Partner, may cause any number of Vested Performance Units to be
subject to a Forced Conversion into an equal number of Common Units, giving
effect to all adjustments (if any) made pursuant to Section 19.3; provided,
however, that the Partnership may not cause a Forced Conversion of
any Performance Units that would not at the time be eligible for conversion at
the option of such Qualifying Party pursuant to Section 19.9.B. In order to
exercise its right of Forced Conversion, the Partnership shall deliver a Forced
Conversion Notice in the form attached hereto as Exhibit D to the
applicable Holder of Performance Units not less than 10 nor more than 60 days
prior to the Conversion Date specified in such Forced Conversion Notice. A
Forced Conversion Notice shall be provided in the manner provided in Section
15.2.

 

D.                
A conversion of Vested Performance Units for
which the Holder thereof has given a Conversion Notice or the Partnership has
given a Forced Conversion Notice shall occur automatically after the close of
business on the applicable Conversion Date without any action on the part of
such Holder of Performance Units, other than the surrender of any certificate
or certificates evidencing such Vested Performance Units, as of which time such
Holder of Performance Units shall be credited on the books and records of the
Partnership as of the opening of business on the next day with the number of
Common Units into which such Performance Units were converted. After the
conversion of Performance Units as aforesaid, the Partnership shall deliver to
such Holder of Performance Units, upon his or her written request, a
certificate of the General Partner certifying the number of Common Units and
remaining 

Page 117 of 128

Performance Units, if any, held by such person immediately after such
conversion. The Assignee of any Limited Partner pursuant to Article 11 hereof
may exercise the rights of such Limited Partner pursuant to this Section 19.9
and such Limited Partner shall be bound by the exercise of such rights by the
Assignee.

 

E.                 
For purposes of making future allocations under
Section 6.2.F and applying the Capital Account Limitation, the portion of the
Economic Capital Account Balance of the applicable Holder of Performance Units
that is treated as attributable to his or her Performance Units shall be
reduced, as of the date of conversion, by the product of the number of
Performance Units converted and the Common Unit Economic Balance.

 

F.                 
If the Partnership or the General Partner shall
be a party to any Transaction, then the General Partner shall, immediately
prior to the Transaction, exercise its right to cause a Forced Conversion with
respect to the maximum number of Performance Units then eligible for
conversion, taking into account any allocations that occur in connection with
the Transaction or that would occur in connection with the Transaction if the
assets of the Partnership were sold at the Transaction price or, if applicable,
at a value determined by the General Partner in good faith using the value
attributed to the Common Units in the context of the Transaction (in which case
the Conversion Date shall be the effective date of the Transaction and the
conversion shall occur immediately prior to the effectiveness of the
Transaction). In anticipation of such Forced Conversion and the consummation of
the Transaction, the Partnership shall use commercially reasonable efforts to
cause each Holder of Performance Units to be afforded the right to receive in
connection with such Transaction in consideration for the Common Units into
which his or her Performance Units will be converted the same kind and amount
of cash, securities and other property (or any combination thereof) receivable
upon the consummation of such Transaction by a Holder of the same number of
Common Units, assuming such Holder is not a Constituent Person, or an affiliate
of a Constituent Person. In the event that Holders of Common Units have the
opportunity to elect the form or type of consideration to be received upon
consummation of the Transaction, prior to such Transaction the General Partner
shall give prompt written notice to each Holder of Performance Units of such
opportunity, and shall use commercially reasonable efforts to afford the Holder
of Performance Units the right to elect, by written notice to the General
Partner, the form or type of consideration to be received upon conversion of
each Performance Unit held by such Holder into Common Units in connection with
such Transaction. If a Holder of Performance Units fails to make such an
election, such Holder (and any of its transferees) shall receive upon
conversion of each Performance Unit held by him or her (or by any of his or her
transferees) the same kind and amount of consideration that a Holder of Common
Units would receive if such Holder of Common Units failed to make such an
election. Subject to the rights of the Partnership and the General Partner
under any Performance Unit Agreement and the relevant terms of the Plan or any
other applicable Equity Plan, the Partnership shall use commercially reasonable
effort to cause the terms of any Transaction to be consistent with the
provisions of this Section 19.9.F and to enter into an agreement with the
successor or purchasing entity, as the case may be, for the benefit of any
Holder of Performance Units whose Performance Units will not be converted into
Common Units in connection with the Transaction that will (i) contain
provisions enabling the Qualifying Parties that remain outstanding after such
Transaction to convert their Performance Units into securities as comparable as
reasonably possible under the circumstances to the Common Units and (ii)
preserve as far as reasonably possible under the circumstances the
distribution, special allocation, conversion, and other rights set forth in the
Agreement for the benefit of the Holder of Performance Units.

Page 118 of 128

Section 19.10  Voting.
 Limited Partners holding Performance
Units shall have the same voting rights as Limited Partners holding Common
Units, with the Performance Units and LTIP Units voting together as a single
class with the Common Units and having one vote per Performance Unit and
Holders of Performance Units shall not be entitled to approve, vote on or
consent to any other matter. The foregoing voting provision will not apply if,
at or prior to the time when the action with respect to which such vote would
otherwise be required will be effected, all outstanding Performance Units shall
have been converted or provision is made for such conversion to occur as of or
prior to such time into Common Units.

 

Article
20

CLASS A UNITS

 

Section 20.1      Designation. 

 

A class of securities of the Partnership designated as
the “Class A Units” is hereby established. The number of Class A
Units that may be issued is not limited by this Agreement. For avoidance of
doubt, a Class A Unit shall only represent the right to acquire such number of
Common Units upon the exercise of such Class A Unit as is provided for under
the terms of the applicable Class A Unit Agreement entered between the
Partnership and holder of such Class A Unit, and a Class A Unit shall not
constitute a “Common Equivalent Unit” or a “Common Unit”.

 

Section 20.2      Adjustments.
 The number of Common Units purchasable
upon exercise of a Class A Unit and the exercise price at which such Common
Units may be purchased shall be adjusted solely as set forth in the applicable
Class A Unit Agreement.

 

Section 20.3      Distributions.
 Except as otherwise provided in the
applicable Class A Unit Agreement with respect to such Class A Units, holders
of Class A Units shall not be entitled to receive payment of regular, special,
extraordinary or other distributions (including, for avoidance of doubt,
distributions upon the occurrence of a Liquidating Event or proceeds from a
Terminating Capital Transaction) unless and until such Class A Units are
exercised for Common Units in accordance with the terms of the applicable Class
A Unit Agreement. After the issuance of Common Units upon the exercise of such
Class A Units, the Holder of such Common Units shall be entitled to
distributions in accordance with the terms of the Common Units.

 

Section 20.4      Liquidation
Preference. 

 

A.                 
Distributions. Except as otherwise
provided in the applicable Class A Unit Agreement with respect to such Class A
Units, upon any liquidation, dissolution or winding up of the affairs of the
Partnership, voluntary or involuntary, no distributions shall be made on the
Class A Units pursuant to Article 13 hereof or otherwise unless and until such
Class A Units have been exercised for Common Units in accordance with the terms
of the applicable Class A Unit Agreement. After the issuance of Common Units
upon the exercise of such Class A Units, the Holder of such Common Units shall
be entitled to distributions in accordance with the terms of the Common Units.
Notice of any liquidation, dissolution or winding up of the affairs of the
Partnership, voluntary or involuntary, shall be required only to the extent
provided in the applicable Class A Unit Agreement.

Page 119 of 128

B.                 
No Further Rights. Other than payment of
the full amount of any liquidating distributions to which a former holder of
Class A Units may be entitled under the applicable Class A Unit Agreement or in
respect of Common Units received upon exercise of such former holder’s Class A
Units, no holder or former holder of Class A units shall have any right or
claim to any of the remaining assets of the Partnership.

 

C.                 
Consolidation, Merger or Certain Other
Transactions. The consolidation or merger of the Partnership with one or
more entities or a sale or transfer of all or substantially all of the
Partnership’s assets shall not be deemed to be a liquidation, dissolution or
winding up, voluntary or involuntary, of the Partnership.

 

Section 20.5      Voting
Rights.  A holder of Class A Units shall
not have any voting or consent rights in respect of its Class A Units unless
and until such Class A Units have been exercised for Common Units in accordance
with the terms of the applicable Class A Unit Agreement. After the issuance of
Common Units upon the exercise of such Class A Units, a Holder of such Common
Units will be entitled to voting rights in accordance with the terms of the
Common Units.

 

Section 20.6      Transfers
and Redemptions.  Except as expressly
provided in the applicable Class A Unit Agreement, a holder of Class A Units
shall not be entitled to transfer his or her Class A Units. Notwithstanding the
foregoing sentence, a holder of Class A Units shall not be entitled to transfer
(directly or indirectly), and shall not transfer (directly or indirectly), its
Class A Units if doing so would constitute a “measurement event” under
Regulations Sections 1.761-3(c)(1)(iii)(A) and 1.761-3(c)(2)(i). The Redemption
Right provided to Qualifying Parties under Section 15.1 shall not apply with
respect to Class A Units unless and until such Class A Units have been
exercised for Common Units in accordance with the terms of the applicable Class
A Unit Agreement.

 

Section 20.7      Characterization
and Allocations. 

 

A.                 
Characterization. It is the intent of the
parties that each Class A Unit shall constitute a “noncompensatory option”
within the meaning of Regulations Section 1.761-3(b)(2), and one which is not
treated as a “partnership interest” for federal tax purposes on the date of any
“measurement event” (all within the meaning of Regulations Section 1.761-3),
unless and until such Class A Unit has been exercised for a Common Unit in
accordance with the terms of the applicable Class A Unit Agreement.

 

B.                 
Allocations. Net Income, Net Loss and
other allocations (such as those governed by Article 6 hereof) shall be
allocated to holders of Class A Units in accordance with the principles of
Regulations Section 1.704-1(b)(2)(iv)(s) as applied by the General Partner in
good faith, and the remainder of the provisions in this Agreement (including
without limitation Article 6 hereof) shall be applied by giving due regard to
the allocations in this Section 20.7.B.

Page 120 of 128

Section 20.8      Legend.
 Any certificate evidencing a Class A
Unit shall bear an appropriate legend, as determined by the General Partner,
indicating that additional terms, conditions and restrictions on Transfer,
including without limitation under any Class A Unit Agreement, apply to the
Class A Unit.

 

Section 20.9      Exercise
for Common Units.  A holder of Class A
Units shall have the right to exercise its Class A Units for Common Units
solely in such manner, at such price and on such other terms as are set forth
in the applicable Class A Unit Agreement.

 

[REMAINDER OF PAGE
LEFT BLANK INTENTIONALLY]

Page 121 of 128

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

 

	 	GENERAL PARTNER:

	 	 
	 	Mobile Infrastructure Corporation,

	 	a Maryland corporation

 

	 	By:	__________________________________________

	 	 	Name: Stephanie Hogue

	 	 	Its: President

 

	 	LIMITED PARTNERS:

	 	 
	 	COLOR UP, LLC, 

	 	a Delaware limited liability company

 

	 	By:	__________________________________________

	 	 	Name: Manuel
Chavez III 

	 	 	Its: Chief Executive Officer

 

	 	HSCP Strategic III, L.P., 

	 	a Delaware limited partnership

 

	 	By:	__________________________________________

	 	 	Name: Jeffrey B. Osher 

	 	 	Its:
Managing Member

 

 

[Signature Page to Third Amended and Restated Agreement
of Limited Partnership of Mobile Infra Operating Partnership, L.P.]

Page 122 of 128

EXHIBIT A

 

EXAMPLES
REGARDING ADJUSTMENT FACTOR

 

For purposes of the following
examples, it is assumed that (a) the Adjustment Factor in effect on ______ is
1.0 and (b) on________ (the “Partnership Record Date” for purposes of these examples),
prior to the events described in the examples, there are 100 REIT Shares issued
and outstanding.

 

Example 1

 

On the Partnership Record Date,
the General Partner declares a dividend on its outstanding REIT Shares in REIT
Shares. The amount of the dividend is one REIT Share paid in respect of each
REIT Share owned. Pursuant to Paragraph (i) of the definition of “Adjustment
Factor,” the Adjustment Factor shall be adjusted on the Partnership Record
Date, effective immediately after the stock dividend is declared, as follows:

 

1.0 * 200/100 = 2.0

 

Accordingly, the Adjustment Factor after the stock
dividend is declared is 2.0.

 

Example 2

 

On the Partnership Record Date,
the General Partner distributes options to purchase REIT Shares to all holders
of its REIT Shares. The amount of the distribution is one option to acquire one
REIT Share in respect of each REIT Share owned. The strike price is $4.00 a
share. The Value of a REIT Share on the Partnership Record Date is $5.00 per
share. Pursuant to Paragraph (ii) of the definition of “Adjustment Factor,” the
Adjustment Factor shall be adjusted on the Partnership Record Date, effective
immediately after the options are distributed, as follows:

 

1.0 * (100 + 100)/(100 + 100 *
$4.00/$5.00) = 1.1111

 

Accordingly, the Adjustment
Factor after the options are distributed is 1.1111. If the options expire or
become no longer exercisable, then the retroactive adjustment specified in
Paragraph (ii) of the definition of “Adjustment Factor” shall apply.

 

Example 3

 

On the Partnership Record Date,
the General Partner distributes assets to all holders of its REIT Shares. The
amount of the distribution is one asset with a fair market value (as determined
by the General Partner) of $1.00 in respect of each REIT Share owned. It is
also assumed that the assets do not relate to assets received by the General
Partner pursuant to a pro rata distribution by the Partnership. The Value of a
REIT Share on the Partnership Record Date is $5.00 a share. Pursuant to
Paragraph (iii) of the definition of “Adjustment Factor,” the Adjustment Factor
shall be adjusted on the Partnership Record Date, effective immediately after
the assets are distributed, as follows:

 

1.0 * $5.00/($5.00 - $1.00) =
1.25

Accordingly, the Adjustment Factor after the assets are
distributed is 1.25.

EXHIBIT B

 

COMMON UNIT
NOTICE OF REDEMPTION

 

To:       Mobile Infrastructure Corporation

 

________________________

 

________________________

 

________________________

 

The
undersigned Common Limited Partner or Assignee hereby irrevocably tenders for
redemption Common Units in Mobile Infra Operating Partnership, L.P. in
accordance with the terms of the Third Amended and Restated Agreement of
Limited Partnership of Mobile Infra Operating Partnership, L.P.  dated as of           ,
2022 as amended (the “Agreement”), and the Redemption Right referred to
therein. The undersigned Common Limited Partner or Assignee:

 

(a)             
undertakes (i) to surrender such Common Units
and any certificate therefor at the closing of the Redemption and (ii) to
furnish to the General Partner, prior to the Specified Redemption Date, the
documentation, instruments and information required under Section 15.1.A and
15.1.G of the Agreement;

 

(b)             
directs that the certified check representing
the Cash Amount, or the REIT Shares Amount, as applicable, deliverable upon the
closing of such Redemption be delivered to the address specified below;

(c)              
represents, warrants, certifies and agrees
that: 

 

(i)               
the undersigned Common Limited Partner or
Assignee is a Qualifying Party,

 

(ii)             
the undersigned Common Limited Partner or
Assignee has, and at the closing of the Redemption will have, good, marketable
and unencumbered title to such Common Units, free and clear of the rights or
interests of any other person or entity,

 

(iii)           
the undersigned Common Limited Partner or
Assignee has, and at the closing of the Redemption will have, the full right,
power and authority to tender and surrender such Common Units as provided
herein, and

 

(iv)           
the undersigned Common Limited Partner or
Assignee has obtained the consent or approval of all persons and entities, if
any, having the right to consent to or approve such tender and surrender; and

(d)             
acknowledges that he will continue to own such
Common Units until and unless either (1) such Common Units are acquired by the
General Partner pursuant to Section 15.1.B of the Agreement or (2) such
redemption transaction closes.

 

All
capitalized terms used herein and not otherwise defined shall have the same
meaning ascribed to them respectively in the Agreement.

 

Dated:   __________                                      Name
of Common Limited Partner or Assignee:

 

___________________________________________

 

___________________________________________

(Signature of Common Limited
Partner or Assignee)

 

___________________________________________

(Street Address)

 

___________________________________________

(City)               (State)             (Zip
Code)

 

Signature Guaranteed by:

 

Issue Check Payable to:                                 __________________________________________

 

Please
insert social security                           __________________________________________

or identifying number:                        

__________________________________________

EXHIBIT C

 

NOTICE OF ELECTION BY PARTNER TO CONVERT 

LTIP/PERFORMANCE
UNITS INTO COMMON UNITS

 

The undersigned Holder of
LTIP/Performance Units hereby irrevocably (i) elects to convert the number of
LTIP/Performance Units in Mobile Infra Operating Partnership, L.P. (the
“Partnership”) set forth below into Common Units in accordance with the terms
of the Third Amended and Restated Agreement of Limited Partnership of the
Partnership, as amended; and (ii) directs that any cash in lieu of Common Units
that may be deliverable upon such conversion to be deliverable upon such
conversion be delivered to the address specified below. The undersigned hereby
represents, warrants, and certifies that the undersigned (a) has title to such
LTIP/Performance Units, free and clear of the rights or interests of any other
person or entity other than the Partnership; (b) has the full right, power, and
authority to cause the conversion of such LTIP/Performance Units as provided
herein; and (c) has obtained the consent or approval of all persons or
entities, if any, having the right to consent or approve such conversion.

 

Name of
LTIP/Performance Unit Holder:      __________________________________________

                                                                        Please Print Name as
Registered with Partnership

 

Number of LTIP/Performance Units to be Converted:

 

Date of this Notice:                _________________________________________

 

                                                _________________________________________ 

                                                (Signature
of LTIP/Performance Unit Holder)

 

                                                _________________________________________ 

                                                (Street Address)

 

                                                _________________________________________ 

                                                (City)
(State) (Zip Code)

                                                                        Signature
Medallion Guaranteed by:

 

Issue Check Payable to:                                  ________________________________

 

Please insert social security                             ________________________________ 

or identifying number:                                   

                                                                         ________________________________

EXHIBIT D

 

NOTICE OF
ELECTION BY PARTNERSHIP TO FORCE CONVERSION OF LTIP/PERFORMANCE UNITS INTO COMMON
UNITS

 

Mobile Infra Operating Partnership,
L.P. (the “Partnership”) hereby irrevocably (i) elects to cause the number of
LTIP/Performance Units held by the LTIP/Performance Unit Holder set forth below
to be converted into Common Units in accordance with the terms of the Third
Amended and Restated Agreement of Limited Partnership of the Partnership, as
amended.

 

Name of
LTIP/Performance Unit Holder:      __________________________________________

                                                                        Please Print Name as
Registered with Partnership

 

Number of
LTIP/Performance Units to be Converted: __________________________________

Date of this Notice:                                                       __________________________________Filed by Avantafile.com - Mobile Infrastructure Corporation - Exhibit 10.14

THIRD AMENDMENT TO

 

LOAN AGREEMENT AND LOAN DOCUMENTS 

 

            THIS
THIRD AMENDMENT TO LOAN AGREEMENT AND LOAN DOCUMENTS (this “Third
Amendment”) is made and entered into as of this 8th day of December, 2021, by and among (A) (i) MVP HAWAII MARKS
GARAGE, LLC, a Delaware limited
liability company (“MVP Hawaii”), (ii) MVP
INDIANAPOLIS CITY PARK GARAGE, LLC,
a Delaware limited liability company (“MVP City Park”), (iii) MVP INDIANAPOLIS WASHINGTON STREET LOT, LLC, a Delaware limited liability company (“MVP Washington Street”), (iv) MVP NEW ORLEANS RAMPART, LLC,
a Delaware limited liability company (“MVP New Orleans”), (v) MVP RAIDER PARK GARAGE, LLC,
a Delaware limited liability company (“MVP Raider Park”), and (vi) MVP MILWAUKEE WELLS LLC, a
Nevada limited-liability company (“MVP Milwaukee”; each of MVP Hawaii, MVP City Park, MVP Washington Street, MVP New
Orleans, MVP Raider Park and MVP Milwaukee are, together with their respective
permitted successors and assigns, a “Borrower” and collectively, “Borrowers”), (B) MOBILE
INFRASTRUCTURE CORPORATION, a
Maryland corporation, formerly known as The Parking REIT, Inc., a Maryland
corporation (“Guarantor”), and (C) LOANCORE 2021-CRE4 ISSUER LTD., a
Cayman Islands exempted company (together
with its  successors and assigns, “Lender”),
successor-in-interest to LoanCore Capital Credit REIT LLC, a Delaware limited
liability company (“Original Lender”).

 

RECITALS:

 

            WHEREAS,
Borrowers, on the one hand, and Original Lender, on the other hand, entered
into that certain Loan Agreement dated as of November 30, 2018 (the “Original
Loan Agreement”), pursuant to which Original Lender agreed to
make a secured loan to Borrowers in the original principal amount of Thirty-Nine
Million Five Hundred Thousand and No/100 Dollars ($39,500,000.00) (the “Loan”).

 

WHEREAS, all of Original Lender’s right, title and interest
in the Loan was assigned to Lender, and Lender is the holder of the Loan as of
the date hereof.

 

WHEREAS, in addition to the obligations of Borrowers in
connection with the Loan, the Loan has been guaranteed in part by Guarantor,
pursuant to that certain Guaranty of Recourse Obligations dated as of November
30, 2018, made by Guarantor in favor of Lender (the “Recourse Guaranty”).

 

WHEREAS, Borrowers, Guarantor and LCC
Warehouse V LLC, a Delaware limited liability company (“Warehouse V”),
predecessor-in-interest to Lender, executed that certain First Amendment to
Loan Agreement and Loan Documents dated as of July 9, 2020 (the “First
Amendment”), which First Amendment provided for, inter alia, (i) a deferral
of a portion of Borrowers’ required monthly interest payments to Lender, (ii) a
waiver of Borrowers’ required monthly contributions into the Capital Expense
Reserve Subaccount for certain Payment Dates, (iii) the creation of a
shortfall reserve and the reallocation of
funds in certain Subaccounts to be utilized in such reserve, (iv) the
commencement of a Cash Management Period as of the date of such First Amendment,
and (v) additional recourse liability to Guarantor under the Recourse
Guaranty in the event that Borrowers failed to timely repay certain amounts due
and payable to Lender pursuant to the terms and conditions of the First
Amendment.

WHEREAS, Borrowers, Guarantor and Warehouse V further
amended the Loan Agreement, the Recourse Guaranty and the other Loan Documents
pursuant to that certain Second Amendment to Loan Agreement and Loan Documents
dated as of December 8, 2020 (the
“Second Amendment”; the Original Loan Agreement as amended by the
First Amendment and the Second Amendment is referred to herein as the “Existing
Loan Agreement”), which Second Amendment provided for, inter
alia, (i) an extension of the Term until December 9, 2021, (ii)
an additional twelve (12)-month extension of the Term until
December 9, 2022, subject to the express terms and conditions of the
Second Amendment, (iii) Lender’s approval of prospective extensions of
certain agreements at the Properties, (iv) a continuing waiver of
Borrowers’ required monthly contributions into the Capital Expense Reserve
Subaccount for each Payment Date occurring during the First Extension Period
(as defined in the Second Amendment) and (v) Guarantor’s delivery of that
certain Partial Payment Guaranty dated as of December 8, 2020 (the “Partial
Payment Guaranty”) made by Guarantor for the benefit of Lender, as
successor-in-interest to Original Lender and Warehouse V, pursuant to which
Guarantor guaranteed the due and punctual payment in full (and not merely the
collectability) of all sums and charges which may at any time be due and
payable under the Loan Document up to an aggregate amount not to exceed
$5,000,000.00;.

 

WHEREAS, at Borrowers’ request, Borrowers, Guarantor and Lender have
agreed to further amend the Loan Agreement, the Partial Payment Guaranty and
the other Loan Documents pursuant to this Third Amendment to provide for, inter
alia, (i) an extension of the Term until December 9, 2022,
subject to the express terms and conditions of this Third Amendment, (ii) an increase
in the “Guaranteed Amount” (as such term is defined in the Partial Payment
Guaranty) from $5,000,000.00 to $9,000,000.00, (iii) Lender’s agreement to
transfer $125,690.00 from the Cash Collateral Subaccount to the Capital Expense
Reserve Subaccount to satisfy Borrowers’ obligation to pay to Lender the First
Extension Deferred CapEx Amount (as such term is defined in the Second
Amendment) and the CapEx Shortfall Amount (as such term is defined in the First
Amendment) and (iv) Borrowers’ agreement to replace the Clearing Account
and Cash Management Account in accordance with the terms and conditions of the
Existing Loan Agreement. 

 

            NOW,
THEREFORE, in consideration of the mutual covenants and conditions
contained herein, the receipt and sufficiency of which are hereby acknowledged,
Borrowers, Guarantor and Lender hereby agree as follows:

 

AGREEMENT:

 

1.                 
Incorporation of
Recitals.  The Recitals set forth above are
hereby incorporated herein and made a part hereof.

2

2.                 
Definitions.  The
following defined term is hereby added to Section 1.1 of the Original
Loan Agreement:

 

“Third
Amendment” shall mean that certain Third Amendment to Loan Agreement
and Loan Documents dated as of December 8, 2021, by and among Borrowers,
Guarantor and Lender.

 

3.                 
Second
Extension Period.  Notwithstanding anything in the Existing Loan
Agreement to the contrary:

 

(a)               
Deletion of Minimum Debt Yield.  With respect to the Second Extension Period,
Lender hereby agrees that Section 2.8(e) of the Existing Loan Agreement
shall be deleted in its entirety; accordingly, there shall be no required
minimum Debt Yield as a condition precedent to the effectiveness of the Second
Extension Period.

 

(b)              
Waiver of Extension of Interest Rate Protection
Agreement.  Solely with respect to
the Second Extension Period, Lender hereby agrees that, notwithstanding  Section 2.8(c) of the Existing Loan
Agreement to the contrary, Lender shall not require Borrowers to deliver either
(i) an extension of the existing Interest Rate Protection Agreement or (ii) a
new Interest Rate Protection Agreement, as a condition precedent to the
effectiveness of the Second Extension Period, provided, however,
at Lender’s election by written notice to Borrowers, at any time during the
Term, Borrowers shall deliver to Lender, within ten (10) Business Days
following Lender’s request therefor, a replacement Interest Rate Protection
Agreement from an Acceptable Counterparty in respect of a notional amount of
the then outstanding Principal and otherwise on the same terms as set forth in Section 2.6.1
of the Existing Loan Agreement (including the delivery of such documents as set
forth therein) and has the effect of capping LIBOR at no more than three and
one-half percent (3.50%) per annum.

 

(c)               
Repayment of First Extension Deferred CapEx Amount
and CapEx Shortfall Amount.  For the
avoidance of doubt, as a condition precedent to the effectiveness of the Second
Extension Period, in accordance with Sections 2.8(i) and 2.8(j)
of the Existing Loan Agreement, Borrowers shall pay to Lender no later than the
commencement of the Second Extension Period, the full First Extension Deferred
CapEx Amount and the full CapEx Shortfall Amount, which payments shall be
deemed satisfied upon Lender’s transfer of funds from the Cash Collateral
Subaccount to the Capital Expense Reserve Subaccount pursuant to Section 4
of this Third Amendment.

 

(d)              
Payment of Extension Fee.  For the avoidance of doubt, as a condition
precedent to the effectiveness of the Second Extension Period, in accordance
with Section 2.8(l) of the Existing Loan Agreement, Borrowers shall pay
to Lender no later than the commencement of the Second Extension Period, an
extension fee in an amount equal to one-fourth of one percent (0.25%) (i.e.,
$92,500.00).

 

4.                 
Capital Expense
Reserves - Repayment of Deferred Amounts.  In accordance with Sections
4(b) and 4(c) of the Second Amendment, Borrowers are required to pay
to Lender the full amount of the First Extension Deferred CapEx Amount (which
is equal to $75,690.00 as of the date hereof) and the full amount of the CapEx
Shortfall Amount

3

(which is equal to $50,000.00 as of the date hereof) on or
before the First Extended Maturity Date, which repayment is a condition
precedent to the effectiveness of the Second Extension Period.  Notwithstanding
anything in the Existing Loan Agreement to the contrary, at Borrowers’ express
request, on the date hereof, Lender hereby agrees to transfer $125,690.00
currently held by Lender in the Cash Collateral Subaccount to the Capital
Expense Reserve Subaccount, which transfer of funds will be deemed to satisfy
Borrowers’ obligation to pay to Lender the First Extension Deferred CapEx
Amount and the CapEx Shortfall Amount. 
Following Lender’s transfer of such funds from the Cash Collateral
Subaccount to the Capital Expense Reserve Subaccount, Borrowers shall be
entitled to utilize such funds pursuant to the express terms and conditions of Section
3.5 of the Existing Loan Agreement.

5.                 
Partial
Payment Guaranty - Increase in Guaranteed Amount.  Notwithstanding
anything to the contrary set forth in the Partial Payment Guaranty, as of the
date hereof, the “Guaranteed Amount” (as defined in Section
1(b) of the Partial Payment Guaranty) shall be increased from $5,000,000.00
to an amount equal to Nine Million and No/100 Dollars ($9,000,000.00).  Accordingly, as of the date hereof, and
thereafter throughout the remainder of the Term, Guarantor’s liability under
the Partial Payment Guaranty with respect to the Guaranteed Obligations (as
such term is defined in the Partial Payment Guaranty) shall not exceed Nine
Million and No/100 Dollars ($9,000,000.00).

 

6.                 
Replacement
of Clearing Account and Cash Management Account.  Borrowers
hereby acknowledge that, by written notice to Borrowers dated November 23,
2021, Wells Fargo Bank, N.A. exercised its rights under each of the Clearing
Account Agreement and the Cash Management Agreement to terminate such agreement
and close each of the existing Clearing Account and the existing Cash
Management Account, effective January 15, 2022 (the “Account Closing
Date”).  Accordingly, Borrowers
hereby covenant and agree to utilize best efforts to (i) complete the
opening and activation of a replacement Clearing Account at a replacement
Clearing Bank (which replacement Clearing Bank shall be Key Bank, National
Association, a national banking association) pursuant to a replacement Clearing
Account Agreement and (ii) complete the opening and activation of a
replacement Cash Management Account at a replacement Cash Management Bank (which
replacement Cash Management Bank shall be Signature Bank, a New York state
chartered bank) pursuant to a replacement Cash Management Agreement on or prior
to the Account Closing Date.  Borrowers
hereby agree that Borrowers’ failure or refusal to complete the opening and
activation of a replacement Clearing Account and a replacement Cash Management
Account on or prior to the Account Closing Date shall, at Lender’s written
election after written notice delivered to Borrower and five (5) days to cure,
be deemed an Event of Default under the Loan Agreement, with the result that
Lender shall have the right (at its sole option) to exercise any and all rights
and remedies available to it.

 

7.                 
Cash
Management Period.  For the avoidance of doubt, the Cash
Management Period in place as of the date hereof shall remain in place until
the date on which Lender delivers written notice to Borrowers that such Cash
Management Period has ended, which, in accordance with the definition of Cash
Management Period in Section 1.1 of the Original Loan Agreement, shall
require, inter alia, Lender’s determination that
the Debt Yield equals or exceeds seven and three-fourths percent (7.75%) for
the two (2) most recent Calculation Dates.

4

8.                 
Shortfall
Reserve Replenishment.  Notwithstanding anything in the Original Loan
Agreement to the contrary, in the event that, as of any Calculation Date during
the Term, the undisbursed balance of the Shortfall Reserve Subaccount is less
than the Shortfall Reserve Target Balance (i.e., $225,000.00) and
Borrowers are accordingly obligated to replenish the Shortfall Reserve
Subaccount pursuant to Section 5 of the Second Amendment, during the
continuance of a Cash Management Period, provided no Event of Default has
occurred and is continuing, at Borrowers’ written request, Lender shall, to the
extent available, transfer funds from the Cash Collateral Subaccount to the
Shortfall Reserve Subaccount in an amount as necessary such that the
undisbursed balance of the Shortfall Reserve Subaccount will thereafter equal
the Shortfall Reserve Target Balance, and, following such transfer of funds,
Borrower’s replenishment obligation shall be deemed satisfied.  In the event that, as of such Calculation
Date, the undisbursed balance of the Cash Collateral Subaccount is not
sufficient to fully replenish the Shortfall Reserve Subaccount pursuant to Section
5 of the Second Amendment, Borrowers shall pay any additionally required funds
to Lender for deposit into the Shortfall Reserve Subaccount within fifteen (15)
days following the subject Calculation Date.

 

9.                 
Representations,
Warranties and Covenants.

 

(a)               
Each Borrower and Guarantor, as the case may be, hereby
remakes as of the date hereof, all of the representations and warranties set
forth in Article 4 of the Original Loan Agreement, Section 3 of
the Recourse Guaranty and Section 3 of the Partial Payment Guaranty,
respectively, as modified hereby, and the other Loan Documents, as modified
hereby, which representations and warranties shall be given as of the date
hereof and shall survive the execution and delivery of this Third Amendment,
but only to the extent such representations and warranties are not matters
which by their nature can no longer be true and correct as a result of the
passage of time and do not constitute a Default or an Event of Default.

 

(b)              
Borrowers hereby represent and warrant that, to the
best of each Borrower’s knowledge, no Default, Event of Default, breach or
failure of condition has occurred, or would exist with notice or the lapse of
time or both, under any of the Loan Documents, as modified by this Third Amendment.  Each Borrower hereby further represents that
all representations and warranties herein and in the other Loan Documents made
by Borrowers are true and correct in all material respects.

 

(c)               
Each Borrower understands and acknowledges that, except
as expressly provided in this Third Amendment, Lender has not waived any right
of Lender or obligation of Borrowers or Guarantor under the Loan Documents and
Lender has not agreed to any modification of any provision of any Loan Document
or to any extension of the Loan.

 

(d)              
No Borrower has created, incurred, assumed, permitted
or suffered to exist any Lien on all or any portion of any Property or any
direct or indirect legal or beneficial ownership interest in any Borrower,
except Liens in favor of Lender and Permitted Encumbrances.

5

(e)               
As of the date hereof, each Borrower and Guarantor
hereby fully releases Lender and Servicer from any liability of any kind
arising out of or in connection with the Loan or the Loan Documents existing or
hereafter accruing with respect to matters prior to the date hereof, whether
known or unknown; provided that the foregoing release shall not apply to any
liability under this Third Amendment or any liability due to the fraud, gross
negligence or willful misconduct of Lender or Servicer.

 

(f)               
Each Borrower is a duly organized limited liability
company, in good standing under the laws of the state of its formation.  Each Borrower has full legal power and
authority to execute and deliver this Third Amendment; the officer of each Borrower
executing this Third Amendment has been duly authorized to execute and deliver
this Third Amendment; this Third Amendment constitutes valid and binding
obligations of Borrowers in accordance with its terms; and neither the
execution and delivery of this Third Amendment, nor the performance and
observation of its terms, constitute a violation or conflict with the
organizational documents or requirements of any Borrower, or any law or
regulation applicable to any Borrower, or will result in a breach or
contravention of any provision, or constitute a default under any agreement,
instrument, certificate of formation, operating agreement, other document, law
or regulation binding or enforceable upon any Borrower.

 

(g)              
Guarantor is a corporation duly organized, validly
existing and in good standing under the laws of the State of Maryland.  Guarantor has full legal power and authority
to execute and deliver this Third Amendment; the officer of Guarantor executing
this Third Amendment has been duly authorized to execute and deliver this Third
Amendment; this Third Amendment constitutes valid and binding obligations of
Guarantor in accordance with its terms; and neither the execution and delivery
of this Third Amendment, nor the performance and observation of its terms,
constitute a violation or conflict with the organizational documents or
requirements of Guarantor, or any law or regulation applicable to Guarantor, or
will result in a breach or contravention of any provision, or constitute a
default under any agreement, instrument, certificate of formation, operating
agreement, other document, law or regulation binding or enforceable upon
Guarantor.

 

(h)              
Effective as of November 12, 2021, by the filing of
that certain Articles of Amendment to the charter of Guarantor, Guarantor’s
exact legal name was changed to and, as of the date hereof, is, Mobile
Infrastructure Corporation, a Maryland corporation.

 

(i)                
Each Borrower and Guarantor hereby represents and
warrants to Lender that, as of the date hereof, (i) none of any Borrower,
Guarantor or any direct or indirect owner of any Borrower or Guarantor has any
claims or counterclaims against Lender with respect to the Loan or any
collateral for the Loan or otherwise relating to the Loan or the subject matter
of any of the Loan Documents, (ii) neither any Borrower or Guarantor have any
offsets or defenses with respect to any of its respects obligations or
liabilities under the Loan Documents or otherwise to the enforcement by Lender
of its rights and remedies as provided in the Loan Documents and (iii) to the
extent any Borrower or Guarantor has any such claims, counterclaims, offset or
defense, each Borrower and Guarantor hereby affirmatively WAIVES and RENOUNCES
such claims, counterclaims, offset or defense as of the date hereof.

6

(j)                
Each Borrower and Guarantor shall cooperate with
Lender, at their own expense, with respect to the matters addressed in this Third
Amendment.  Upon Lender’s request,
Borrowers and/or Guarantor shall duly execute and deliver, or cause to be duly
executed and delivered, to Lender such further instruments, agreements, and
documents, and do or cause to be done such further acts as may be necessary or
proper in the reasonable opinion of Lender to carry out more effectively the
provisions of this Third Amendment or the Loan Documents.

 

(k)              
As of the date hereof, the outstanding Principal amount
of the Loan is Thirty-Nine Million Five Hundred Thousand and No/100 Dollars ($37,000,000.00).

 

10.             
Defined Terms.  All capitalized terms used herein and not
otherwise defined shall have the defined meanings set forth in the Original
Loan Agreement.  References to “the
Agreement” or “this Agreement” in the Original Loan
Agreement, the First Amendment or the Second Amendment or to the “Loan
Agreement” in any other Loan Document shall mean and refer to the
Existing Loan Agreement, as amended by this Third Amendment.  To the extent incorporated in any other Loan
Document expressly pursuant to this Third Amendment, any capitalized term
defined in this Third Amendment and not otherwise defined in such other Loan
Document shall have the defined meaning set forth in this Third Amendment.

 

11.             
No Other Changes; Ratification of Loan
Agreement.  This Third Amendment
shall only modify or amend the Existing Loan Agreement to the extent provided
herein, and all other conditions, covenants and agreements in the Existing Loan
Agreement shall remain in full force and effect.  If there is a conflict between the provisions
contained in this Third Amendment and the provisions of the Existing Loan
Agreement, this Third Amendment shall control. 
Whether or not specifically amended by this Third Amendment, all of the
terms and provisions of the Existing Loan Agreement are hereby amended to the
extent necessary to give effect to the purpose and intent of this Third Amendment.

 

12.             
Complete Agreement; Amendment; Waiver; Counterparts.  This Third Amendment constitutes the complete
agreement between the parties with respect to the subject matter hereof; it
supersedes all previous understandings, if any, between the parties except as
otherwise provided herein; no oral or implied understandings, representations
or warranties shall vary its terms; and neither it nor any of its provisions
may be amended or waived other than by a written instrument executed and
delivered by the parties.  This Third Amendment
or any such amendment or waiver may be executed in several counterparts, each
of which shall be considered a duplicate original and the same instrument.  Execution and delivery of this Third Amendment
by portable document format (“PDF”)
copy bearing the PDF signature of any party hereto shall constitute a valid and
binding execution and delivery of this Third Amendment by such party. 
Such PDF copies shall constitute enforceable original documents.

7

13.             
Interpretation.  No provision of this Third Amendment
shall be construed against or interpreted to the disadvantage of any party to
this Third Amendment by any court or other governmental or judicial authority
by reason of such party’s having or being deemed to have structured or dictated
such provision.

 

14.             
Consent Not A Waiver of Any Other Rights.  This Third Amendment and the agreements
evidenced hereby do not waive any rights under applicable laws and regulations
and under the Loan Documents.  This Third
Amendment is not a waiver of any other requirement of the Loan and Loan
Documents and applies only to the express terms and conditions herein.  The granting of such consent and the
execution of this Third Amendment in no way obligates the Lender or any
subsequent holder of the Loan, to grant any future consents or waivers nor does
it establish in any way a pattern or practice of dealing that any Borrower or
Guarantor may rely upon in seeking any other consent or waiver.

 

15.             
No
Novation.  The execution and delivery of this Third
Amendment and any other documents required herein will not be interpreted or
construed as, and in fact does not constitute, a novation, payment, or
satisfaction of all or any portion of the Loan or any other obligations
pursuant to the Loan Documents.

 

16.             
Time of Essence.  Time is of the essence with respect to each
term, condition and covenant of this Third Amendment.

 

17.             
Governing
Law.  The
validity, interpretation, enforcement, and effect of this Third Amendment shall
be governed by, and construed in accordance with, the laws governing the Loan
Documents.

 

18.             
Severability; Captions.  The invalidity or unenforceability of any
provision in this Third Amendment in any particular respect shall not affect
the validity and enforceability of any other provision of this Third Amendment
or of the same provision in any other respect. 
The captions at the beginning of this Third Amendment are for the
convenience of the reader and shall be ignored in construing this Third Amendment.

 

19.             
Effectiveness.  This Third
Amendment shall only be effective upon
(i) the execution and delivery of this Third Amendment by each Borrower, Lender and Guarantor,
(ii) Borrowers’ payment to Lender of $92,500.00, which represents the extension
fee due and payable to Lender with respect to the Second Extension Period
pursuant Section 2.8(l) of the Existing Loan Agreement, (iii) Borrowers’
payment to Lender, concurrently with the execution of this Third Amendment, of
all out-of-pocket costs and expenses incurred by Lender in connection with this
Third Amendment, including, without limitation, reasonable attorneys’ fees and
expenses, and (iv) no Event of
Default shall exist under the Loan Documents and Borrowers shall otherwise be
in compliance with the terms and conditions of the Loan Documents.

 

20.             
Reaffirmation of Guarantor. 
Guarantor acknowledges the amendments and modifications of the Existing Loan
Agreement pursuant to this Third Amendment

8

(including, without limitation, the
amendment to the Partial Payment Guaranty pursuant to Section 5 hereof)
and hereby ratifies and reaffirms all of the terms, covenants and conditions of
the Recourse Guaranty and the Partial Payment Guaranty, and agrees that, except
as expressly provided herein, (x) the Recourse Guaranty remains unmodified and
in full force and effect and enforceable in accordance with its terms, (y) the
Partial Payment Guaranty remains unmodified and in full force and effect and
enforceable in accordance with its terms and (z) and as of the date hereof, the
Guaranteed Amount under the Partial Payment Guaranty is equal to Nine Million
and No/100 Dollars ($9,000,000.00).  Guarantor specifically, but not by way of
limitation, hereby further reaffirms that its obligations under the Recourse
Guaranty and the Partial Payment Guaranty are separate and distinct from
Borrowers’ obligations under the Loan Documents.

[Remainder of Page Intentionally Left Blank; Signature Pages
Follow]

9

            IN WITNESS WHEREOF, Borrowers, Guarantor
and Lender have caused this Third Amendment to be duly executed by their duly
authorized representatives, all as of the day and year first above written.

 

BORROWERS:

 

MVP HAWAII MARKS GARAGE, LLC,

 

a Delaware limited
liability company

 

	By:
	     MVP REIT II Operating Partnership, LP,

	 	a Maryland limited partnership,

	 	its sole member and manager

 

	 	By:
	     Mobile Infrastructure Corporation,

	 	a
Maryland corporation,

	 	formerly known as The Parking REIT, Inc.,

	 	its General Partner

 

	 	By:
	                                                                        

	 	Name:
	       Manuel Chavez III

	 	Title:
	         Chief Executive Officer

 

 

MVP NEW ORLEANS RAMPART, LLC,

a Delaware limited
liability company

 

	By:
	     MVP REIT II Operating Partnership, LP,

	 	a Maryland limited partnership,

	 	its sole member and manager

 

	 	By:
	     Mobile Infrastructure Corporation, 

	 	a
Maryland corporation, 

	 	formerly known as The Parking REIT, Inc.,

	 	its General Partner

 

 

	 	By:
	                                                                        

	 	Name:
	       Manuel Chavez III

	 	Title:
	         Chief Executive Officer

 

[Additional
Signature Pages Follow]

[Third Amendment to Loan
Agreement and Loan Documents – Borrowers Signature Page]

BORROWERS:

 

MVP RAIDER PARK GARAGE, LLC, 

a Delaware limited
liability company

 

	By:
	     MVP REIT II Operating Partnership, LP,

	 	a Maryland limited partnership,

	 	its sole member and manager

 

	 	By:
	     Mobile Infrastructure Corporation,

	 	a
Maryland corporation,

	 	formerly known as The Parking REIT, Inc.,

	 	its General Partner

 

	 	By:
	                                                                        

	 	Name:
	       Manuel Chavez III

	 	Title:
	         Chief Executive Officer

 

MVP INDIANAPOLIS CITY PARK
GARAGE, LLC,

a Delaware limited
liability company

 

	By:
	     MVP Real Estate Holdings, LLC,

	 	a Nevada limited liability company,

	 	its sole member and manager

            

	 	By:
	     MVP Merger Sub, LLC,

	 	a Delaware limited
liability company,

	 	its sole member and
manager

 

	 	By:
	     MVP REIT II Operating Partnership, LP,`

	 	a Maryland limited partnership,

	 	its sole member and manager

 

	 	By:
	     Mobile Infrastructure Corporation,

	 	a
Maryland corporation,

	 	formerly known as The Parking
REIT, Inc.,

	 	its General Partner

 

	 	By:
	                                                                        

	 	Name:
	       Manuel Chavez III

	 	Title:
	         Chief Executive Officer

 

[Additional Signature
Pages Follow]

[Third Amendment to Loan
Agreement and Loan Documents – Borrowers Signature Page]

BORROWERS:

 

MVP INDIANAPOLIS WASHINGTON
STREET LOT, LLC, 

a Delaware limited liability company

 

	By:
	     MVP Real Estate Holdings, LLC,

	 	a
Nevada limited liability company, 

	 	its
sole member and manager

 

	 	By:
	     MVP Merger Sub, LLC, 

	 	a
Delaware limited liability company, 

	 	its
sole member and manager

 

	 	By:
	     MVP REIT II Operating Partnership, LP,

	 	a Maryland limited partnership,

	 	its sole member and manager

 

	 	By:
	     Mobile Infrastructure Corporation, 

	 	a Maryland corporation, 

	 	formerly known as The Parking REIT, Inc., 

	 	its
General Partner

 

	 	By:
	                                                                        

	 	Name:
	       Manuel Chavez III

	 	Title:
	         Chief Executive Officer

 

 

[Additional
Signature Pages Follow]

[Third Amendment to Loan
Agreement and Loan Documents – Borrowers Signature Page]

BORROWERS:

 

MVP MILWAUKEE WELLS LLC, 

a Delaware limited
liability company

 

	By:
	     MVP Real Estate Holdings, LLC,

	 	a Nevada limited liability company, 

	 	its sole member and manager

 

	 	By:
	     MVP Merger Sub, LLC, 

	 	a Delaware limited
liability company, 

	 	its sole member and
manager

 

	 	By:
	     MVP REIT II Operating Partnership, LP,

	 	a Maryland limited partnership,

	 	its sole member and manager

 

	 	By:
	     Mobile Infrastructure Corporation, 

	 	a
Maryland corporation, 

	 	formerly known as The Parking
REIT, Inc., 

	 	its
General Partner

 

	 	By:
	                                                                        

	 	Name:
	       Manuel Chavez III

	 	Title:
	         Chief Executive Officer

 

[Additional Signature Pages Follow]

[Third Amendment to Loan
Agreement and Loan Documents – Borrowers Signature Page]

GUARANTOR’S
CONSENT

 

The undersigned Guarantor hereby consents to the
terms and provisions of the foregoing Third Amendment to Loan Agreement and Loan Documents and the transactions
contemplated thereby, hereby reaffirms its obligations under each of the
Recourse Guaranty and the Partial Payment Guaranty, and reaffirms its waiver of
each and every one of the defenses to such obligations as set forth in each of
the Recourse Guaranty and the Partial Payment Guaranty.

	 	GUARANTOR:
 
MOBILE INFRASTRUCTURE CORPORATION, 
a Maryland corporation 
formerly known as The Parking REIT, Inc.
 
 
By:                                                                   
        Name:        Manuel Chavez III 
        Title:          Chief Executive Officer

[Additional
Signature Page Follows]

[Third Amendment to Loan
Agreement and Loan Documents – Guarantor Signature Page]

	 	LENDER:

LOANCORE 2021‐CRE4 ISSUER LTD.,
a Cayman Islands exempted company
 
By:      Situs Holdings, LLC, solely in its capacity 
            as Special Servicer
 
 
By:                                                                   
       Name: 
       Title: 

[Third Amendment to Loan
Agreement and Loan Documents – Lender Signature Page]

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