Document:

Exhibit
10.2

 [Translation
for information purposes only] 

 

 

 CONCESSION AGREEMENT
FOR THE OPERATION OF AIRPORTS IN
 ARGENTINA, DATED AS OF FEBRUARY 9, 1998, BY AND BETWEEN
 AEROPUERTOS ARGENTINA S.A. AND
THE ARGENTINE GOVERNMENT 

 

     

     

    

  

OFFICE OF THE HEAD OF THE CABINET

 

AEROPUERTOS ARGENTINA 2000 S.A.

 

CONCESSION CONTRACT

 

		1.	PARTIES

 

The
following are classified as parties:

 

		1.1	Concession
                                         Grantor

 

The
Argentine national government, here represented by the Head of the Cabinet of Ministers, Jorge Rodríguez,
by virtue of the powers delegated by article 4 of Executive Order No. 375/97, establishing domicile at Balcarce 50, first floor,
in Buenos Aires, Capital of Argentina.

 

		1.2	Concession
                                         Holder

 

Aeropueitos
Argentina 2000 S.A., a corporation in the process of formation, here represented by the Chairman of its Board of Directors, Eduardo
Eurnekian (voter registration booklet No. LE 4086268), and the Vice-Chairman, Ángelo Nicoletti (Italian passport No 813271 L),
with corporate headquarters and domicile established at Suipacha 268, 12th floor, in Buenos Aires, in accordance with public instrument
No. 57 of January 28, 1998 and No 64 of January 29, 1998, recorded before Julian Novaro Hueyo, Notary Public.

 

		1.3	Awardee

 

The
artificial person or consortium of artificial persons to which a contract is awarded as a result of the bidding process, consisting
of Società per Azioni Esercizi Aeroportuari (SEA), Ogden
Corporation, Corporación América Sudamericana S.A., Società
Italiana per le Imprese Miste all’Estero (SIMEST) S.p.A., and Riva Sociedad Anónima, Sociedad Inmobiliaria, Comercial,
Financiera y Agropecuaria, all here represented by their attorney in fact and legal representative Maximo Luis Bomchil (voter
registration booklet No. LE 8326959), who signs beneath the present instrument on behalf and as representative of and by virtue
of powers of attorney from the aforementioned firms.

 

		2.	BACKGROUND

 

The
present contract is signed as part of the bidding process for the granting of a concession for the operation, management and functioning
of Airport Group A, in accordance with the provisions of Decree Law No, 12507/56, as ratified by Law No. 14467; Law No. 13041,
as amended by Law No. 21515; Law No. 17285; and Law No. 17520, as amended by Law No. 23696; and by the provisions of Executive Orders
Nos. 375/97, 500/97 and 842/97, and Administrative Decision No. 60 of January 23, 1998.

 

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		3.	DEFINITIONS

 

For
all purposes under the present Contract, the terms indicated below, whether shown in singular or plural, have the following meanings:

 

		3.1	Awardees

 

The
Bidder designated as such by decision of the Competent Authority, as a result of the National and International Public Bidding
Competition called by virtue of Executive Order No. 375/97.

 

		3.2	Airport

 

An
airport authorized by the competent authority as a port of arrival or departure; a certain area of land or water suitable for
the arrival, departure and ground maneuvers of aircraft, open for public use on a permanent basis, on which there exist structures,
aviation facilities and services such as to permit regular service for purposes of aviation activities, parking of aviation equipment
and receiving or dispatching of passengers, freight and mail, in accordance with the provisions of the Aviation Code (Law No.
17285) and provisions amending or regulating the same.

 

		3.3	International Airport

 

Airport
used for operation of aircraft coming from or bound for a foreign country, where customs, immigration, border health and related
services are provided.

 

		3.4	Competent Authority

 

The
National Airport System Regulatory Body (ORSNA).

 

		3.5	Concession Grantor

 

The
Argentine National Government.

 

		3.6	Concession

 

The
Authorization granted by the National Executive Branch to the Concession Holder to see to the operation, management and functioning
of Airport Group A, under the terms of the Bidding Conditions and their accompanying Exhibits.

 

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		3.7	Concession
                                         Holder

 

The
corporation created by the Awardee which has signed the present Contract with the Head of the Cabinet of Ministers, subject to
approval of the same by the National Executive Branch.

 

		3.8	Contract

 

The
present Concession Contract.

 

		3.9	Effective
                                         Date

 

Date
of publication in the Official Bulletin of the Executive Order issued by the National Executive Branch approving the Concession
Contract.

 

		3.10	Argentine
                                         Air Force (FAA)

 

Through
the Air Regions Command, this is the body responsible for exercising control over safety/security matters, the providing of air
traffic and/or air traffic control and/or flight protection services, regulation of aviation, the providing of communications,
meteorological, rescue and lifesaving/salvage services and, in general, the technical aspects of the National Airport System.

 

		3.11	Exclusivity

 

This
means that neither the Concession Grantor nor any other national, provincial or municipal authority shall have the right to grant
a concession for or to provide directly the service of operation, management and functioning of Airport Group A on the terms specified
hereunder, effective as from the Effective Date.

 

		3.12	Technical
                                         Expert

 

The
shareholder in the Concession Holder which has furnished documentation of the qualifications required under subsection 6.3(a)
of the Bidding Conditions.

 

		3.13	Airport
                                         Group A

 

Subset
of the National Airport System, consisting of the airports identified in Exhibit 5 accompanying the present Contract, which are
included in the concession granted hereunder.

 

		3.14	IATA

 

International
Air Transport Association.

 

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		3.15	ICAO

 

International
Civil Aviation Organization.

 

		3.16	Air Carrier

 

An
Argentine or foreign public- or private-law natural or artificial person lawfully using an air craft on its own behalf,
even if not for profit, in accordance with the provisions of Chapter VIII of Title IV of the Aviation Code.

 

		3.17	ORSNA

 

The
National Airport System Regulatory Body created by virtue of article 14 of Executive Order No. 375/97.

 

		3.18	Master
                                         Plan

 

Document
whose preparation shall be the responsibility of the party designated as Concession Holder, the same being submitted for approval
by ORSNA. Such document shall indicate, for a period of 30 years, the projected development of each airport, the demand for aviation
and nonaviation services, and the levels of satisfaction of such demand in accordance with international standards. The Master
Plan shall incorporate the corresponding Investment Plan as one of its sections.

 

		3.19	Concession
                                         Period

 

The
term of the Contract, in accordance with the provisions of article 5 hereof. The Concession Period includes both the 30-year period
running from the Effective Date, being the original term of the concession, referred to under section 5.1 below as the “Initial
Period,” and any extension of the same that may have been granted; accordingly, “Concession Period” must be understood
in such broader sense in every case in which the bidding documentation does not use the expression “original term”
or “initial period,” or otherwise specify its duration.

 

		3.20	Bidding
                                         Conditions

 

The
Bidding Conditions of the National and International Public Bidding Competition giving rise to the present Concession Contract.

 

		3.21	National
                                         Airport System (SNA)

 

The
set of airports listed in detail in Exhibit III of Executive Order No. 375/97.

 

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		3.22	Taking
                                         of Possession

 

Time
as from which the Concession Holder is responsible for the operation, management and functioning of Airport Group A, in accordance
with the Bidding Conditions and their accompanying Exhibits.

 

		3.23	Order of Priority

 

For
purposes of the interpretation and application of the bidding competition documents, the order of priority established by Executive
Order No. 2037/91, amending Executive Order No. 1143/91, shall be followed.

 

Likewise,
the following Exhibits shall be regarded as an integral part of the present Contract:

 

		1.	Rate System

		2.	Initial Rate Schedule

		3.	Investment Plan

		4.	Airport Standards
                                         / Quality of Service

		5.	Listing of airports
                                         included in the bidding competition for the concession

 

		3.24	Users

 

All
persons making use of airport facilities and services.

 

		3.25	Total Transportation
                                         Units

 

Unit
of measurement of air traffic, derived from converting the number of passengers into weight unit equivalencies, at the rate of
one terminal passenger equivalent to 100 kg of freight and/or mail.

 

		3.26	Calculation of Time
                                         Limits

 

Except
as otherwise expressed in the Bidding Conditions or the other bidding documentation, references in the present Contract to time
limits counted in days shall be understood to be counted in calendar days.

 

If
a due date falls on other than a business day, the performance due shall be deemed adequately discharged if the obligation is
performed on the first business day following the due date.

 

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		4.	PURPOSE

 

		4.1	Exclusivity and Responsibility

 

As
a consequence of the award made in the present National and International Public Bidding Competition, the Concession Grantor grants
and the Concession Holder accepts the present concession for the operation, management and functioning of Airport Group A, on
an exclusive basis, in accordance with the terms of the present Concession Contract and the provisions of section 3.5 of the
Bidding Conditions and the regulations interpreting and supplementing the same.

 

To
this end, the Concession Grantor, prior to the calling of the bidding competition, issued instructions to the pertinent dependencies
of the national government to the effect that no new concessions were to be granted and/or existing concessions extended at the
airports included in Airport Group A. Where necessary in order to ensure the continuity of services, the authorities were to resort
to the mechanism of temporary permits for the providing of such services, Consequently, the granting of such temporary permits
does not involve conferring any right upon the recipients of the same. The Concession Grantor guarantees the Concession Holder
that the aforementioned permits shall not serve to enable the holders to contest the rights of the Concession Holder, the latter
likewise being guaranteed the full use and enjoyment of the Concession on terms similar to those which would have existed if such
permits had not been granted.

 

The
Concession Grantor shall not authorize any alteration of airport infrastructure in the areas of influence of the National Airport
System member airports in accordance with article 12 and article 17, section 34 of Executive Order No. 375/97, except pursuant
to the terms of the Contract.

 

The
concession is granted on a basis of Exclusivity, and the Concession Grantor shall under no circumstances have the right to lay
aside this exclusivity clause and thereby affect the economic and financial equation of the Contract.

 

Under
no circumstances shall the Concession Grantor be held responsible for the operation, management and functioning as to which a
concession is granted under the present contract, or for maintenance and expansion of Airport Group A.

 

		4.2	Scope

 

The
Concession granted means that the Concession Holder shall assume exclusively the obligation of meeting any increase in demand
within Airport Group A, subject to the quality specifications of ICAO/IATA, as specified under Exhibit 4 accompanying the present
Contract, as well the obligation of making the investments provided for under Exhibit 3 accompanying the present Contract.

 

Any
airport infrastructure work not duly approved by ORSNA shall be required to be demolished, in such manner as to leave the airport
surface clean and vacant, unless an agreement is reached with the Concession Grantor whereby the latter accepts the same, with
no right on the Concession Holder’s part to any charge or compensation.

 

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For
all work, including demolition, authorization must be requested from ORSNA and the work must proceed in accordance with such instructions
as the latter may issue, within the scope of the Concession Holder’s obligations deriving from the present Contract. Such
demolition may come about on the initiative of the Concession Holder, the Argentine Air Force or ORSNA, but in all cases approval
must be obtained in advance from ORSNA in order to carry out the work.

 

The
Concession granted is at the Concession Holder’s sole risk. Likewise, the Concession Grantor assumes no responsibility of
any kind for the Investment Plan for which the Concession Holder is responsible.

 

		4.3	Additions
                                         and Decommissioning

 

Subject
to the Concession Holder’s approval, ORSNA shall have the right to withdraw from Airport Group A any airports that may
have fallen into disuse as a result of changes in market conditions. In due time, ORSNA shall establish methods of analysis such
as to permit defining under what circumstances an airport shall be deemed to have fallen into disuse.

 

In
such cases, ORSNA shall take into account the impact of airport service on the region concerned.

 

Likewise,
Airport Group A shall include any airports that may come to be incorporated into the same by decision of ORSNA, subject to the
Concession Holder’s approval.

 

		4.4	Replacement
                                         of an Airport

 

During
the Concession Period, the Concession Holder shall be permitted to propose for approval by ORSNA the replacement of one or more
airports by constructing new airports. In such cases, the airports to be replaced must be returned and turned over to the Concession
Grantor simultaneously with the placing in service of the new airport(s). The Concession Holder shall be required to demonstrate
to ORSNA the resulting benefit to Users, in terms of price and quality of service.

 

In
all cases in which airports are replaced, authorization must be obtained in advance from ORSNA or the authority having competent
jurisdiction under applicable legislation. The basic criteria that will be taken into account by ORSNA for purpose of such authorizations
are as appears from the Bidding Conditions, without prejudice to attention to such national airport policy considerations as may
be established by the national government, as well as the rights acquired by the Concession Holder by virtue of the Concession
Contract and applicable provisions of law. ORSNA may consider alternative solutions proposed by the Concession Holder, or proposed
by ORSNA with the Concession Holder’s approval; in all cases, however, final approval shall require an express decision
on the part of the latter body.

 

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Likewise,
in all cases involving replacement of airports, it shall be the responsibility of the Concession Holder to arrange for all approvals
and/or authorizations relating to locations and sites for the new airports, by ORSNA and the appropriate authorities. Any delay
in obtaining the pertinent authorizations shall not be regarded as constituting grounds for postponements in the construction
schedule for the new airports, unless the Concession Holder demonstrates to the satisfaction of ORSNA that the cause of such delay
is not imputable either to the Concession Holder itself or to any interposed third party for which the Concession Holder is responsible.

 

Infrastructure
and equipment quality standards must tend to improve upon those currently offered by the airports to be replaced, and in no case
shall be inferior thereto.

 

		5.	CONCESSION
                                         PERIOD

 

		5.1	Initial
                                         Period

 

The
Concession Grantor grants the concession for the operation, management and functioning of Airport Group A for a term of 30 years,
running from the Effective Date.

 

		5.2	Additional
                                         Term

 

The
Concession Grantor shall have the right to extend the Concession for an additional term of up to ten years, reserving the right
to maintain, modify or eliminate exclusivity, and subject to fulfillment of the following conditions:

 

		(a)	The Concession Holder
                                         must request an extension from the Concession Grantor at least 18 months prior to expiration
                                         of the Concession Period, specifying the additional term requested.

 

		(b)	The National Executive
                                         Branch must grant the extension requested, pursuant to a recommendation from ORSNA, indicating
                                         the term for which the same is granted.

 

		5.3	Extension

 

Without
prejudice to the provisions of the foregoing paragraphs, ORSNA shall have the power to require the Concession Holder to continue
the Concession Contract for a term not to exceed 12 months, counting from the expiration of the Concession Period. In order to
do so, ORSNA shall be required to give valid notice of such demand to the Concession Holder at least six months in advance of
expiration of the Concession Period.

 

If
the Concession is extended, the Concession Grantor shall consider the effect of such extension on the economic and financial equation
of the Concession, taking into account for this purpose the fact that the recovery of investments should have taken place during
the original term of the Concession.

 

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		6.	RULES GOVERNING
                                         PROPERTY

 

The
Concession Holder shall be required to assume the costs incurred by it as a result of transfers of property and Taking of Possession.

 

		6.1	Transmittal

 

The
Concession Grantor tenders or assigns – as appropriate – the property to the Concession Holder on the following terms:

 

		6.2	Chattel
                                         Property

 

The
National Government transfers to the Concession Holder all of the chattel property included in the inventory to be drawn up as
a consequence of each Taking of Possession, in accordance with the terms of the bidding documentation.

 

At
the end of the Concession, the Concession Holder shall assign free of charge to the Concession Grantor all of the chattel property
being used by the former in providing the services, so as to make possible the continued providing of service by government bodies
and dependencies or a future concession holder, on the same terms and with no change in the level of quality thereof, Property
as defined in this case shall not include any goods that may be held for sale or exchange.

 

		6.3	Real
                                         Property

 

		6.3.1	Transfer
                                         of Use

 

The
award involves the granting to the Concession Holder of custody of the real property located within the perimeter of each airport,
as identified on the record to be drawn up at the time of the pertinent Taking of Possession.

 

The
granting of custody of property as alluded to under the preceding paragraph includes, in addition to use, the safekeeping and
upkeep of the property, without prejudice to such wear accused to the same merely by the passing of time and proper use of the
same, provided, however, that nothing herein shall operate to vitiate any maintenance or other obligations assumed by the Concession
Holder in accordance with the present Contract and the rest of the bidding documentation. Notwithstanding the foregoing, ORSNA
shall be required to respect the provisions of the Concession Contract and the rest of the bidding documentation, its authorization
being required for any activities not expressly provided for therein, as well those which, being provided for, are subject to
the requirement that such authorization be obtained.

 

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		6.3.2	Assignment
                                         of Use

 

The
Concession Holder shall have the right to assign, for consideration or otherwise, the use of part of the real property made
available for the Concession Holder’s use under the present Contract. In this regard, the Concession Holder shall have
the right to enter into rental, commodatum [gratuitous bailment] or other similar contracts concerning the real property
received. All assignments made by the Concession Holder must be reported in advance by the latter to ORSNA, which shall have
the power to contest the same when the consideration for the assignment is lacking or unrealistically low, and the assignment
is not warranted from the standpoint of the management, operation or functioning of the airports.

 

		6.3.3	Obligations

 

The
Concession Holder shall be required to use the real property mainly for providing airport service on the terms authorized by ORSNA
as to the activities involved. Use of the property must be such as fully to meet airport service needs. The property may also be
used at the same time for other activities relating to airport activity, subject to the proviso that the designated purpose of
the present Concession Contract shall not be affected as a result.

 

As
to real property received from the Concession Grantor by commodatum, the Concession Holder must pay all taxes, official charges
and utility service charges payable by the Concession Holder in its capacity as such, and accruing after the Taking of Possession,
without prejudice to its fulfillment of all of the other obligations inherent in commodatum.

 

The
obligation mentioned in the preceding paragraph does not include real property tax, payment of any such tax due being the responsibility
of the property owner.

 

		6.3.4	Destruction
                                         of Property

 

In
the event that for any reason, any property is destroyed in whole or in part, regardless of whether such destruction is caused
by the Concession Holder itself, its employees or contractors, or third parties, the resulting damages shall be borne and repaired
entirely by the Concession Holder, with the exception of those cases in which the latter can validly assert the defense of an
act of God or force majeure, and in no case shall the latter
have the right to demand of the Concession Grantor or ORSNA that the same be replaced or repaired, or to assert against either
a claim for indemnity or compensation of any kind for the damages caused. Without prejudice to the foregoing, the Concession Holder
shall be required to take out insurance covering risks to the extent established in the aforementioned [sic] point 17.

 

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The
limitation stated above shall not bar the bringing of actions for compensation of damages or actions of any other kind which the
Concession Holder may deem appropriate against the parties that caused or are responsible for the aforementioned damages, whether
public or private, governmental or nongovernmental.

 

The
Concession Holder shall not be required to replace or repair any property that proves unnecessary to the proper fulfillment of
the obligations assumed by the Concession Holder, or proves to be superfluous, obsolete or redundant.

 

In
none of the aforementioned cases, with the aforementioned exception of acts of God or force
majeure, shall Concession Holder be excused from replacing or repairing the property destroyed in whole or in part,
without prejudice to any actions for compensation of damages or actions of any other kind which the Concession Holder may deem
it appropriate to bring against the parties which caused or are responsible for these damages.

 

Inasmuch
as the Awardee formulated its bid based on its own evaluation and research, likewise receiving the property “as is,”
all of the foregoing with no right to any claim of any kind, any assertion on its part of a warranty against hidden defects shall
be under stood to be precluded.

 

		6.3.5	Legal
                                         Impossibility of Continuing Use of Property

 

When
any circumstances now in existence or coming to exist in the future makes legally impossible the continued use of any given property
by the Concession Holder, the latter shall be required to return such property to the Concession Grantor.

 

In
such event, the Concession Grantor shall not be liable for any damages that may be caused to the Concession Holder.

 

When
loss of the use of property substantially affects the economic and financial equation of the Concession, the Concession Grantor
shall be required to replace the property concerned with other similar property, or, alternatively, to adjust the economic and
financial equation of the Contract to allow for the new circumstances, to the extent of the proven effect of the same.

 

The
circumstances giving rise to the legal impossibility of continued use of the property by the Concession Holder must be beyond
the Concession Grantor’s control, or must be the result of acts grounded on considerations of public interest or force
majeure.

 

If
assets appointed to airport activity under the terms indicated in the Contract are determined during the Taking of Possession
to be missing or destroyed, and such assets are not essential, their absence or destruction shall not operate to bar the obligation
to take possession or to give rise to a claim of any kind. Assets are to be regarded as nonessential if the absence or insufficiency
thereof does not impede the continued operation of the airport on the same terms as up to the moment of the Taking of Possession
of the same, or, in the case of those whose absence or insufficiency does represent an impediment, if the providing, creation
or improvement of the same is the responsibility of the Concession Holder.

 

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All property found within Airport
Group A at the time of termination of the Concession Contract, whatever the reason for its presence, shall be presumed as of that
time (except if proven otherwise by the Concession Holder) to be the property of the Concession Grantor, and shall be required
to be transferred to the latter without charge, in accordance with the terms indicated under the Concession Contract.

 

While the Concession Holder cannot
transfer a better right than it received from the Concession Grantor, the Concession Holder shall be responsible for taking precautions
to see that the provisions of the present subsection are respected and enforced under any contracts it may enter into with third
parties.

 

		6.3.6	Relations
                                         with the Argentine Air Force

 

The
Concession Holder shall grant free of charge to the Argentine Air Force, at each airport, the spaces necessary for purposes of
the carrying out of the latter’s specifically assigned functions.

 

Likewise,
for purposes of carrying out its functions, the Argentine Air Force shall have freedom of access and movement within airport facilities
for which the Concession Holder is responsible, subject to notice to the personnel designated for such purpose.

 

Inasmuch
as the specific functions of the Argentine Air Force include, in addition to those listed in the bidding documentation, the functions
established under the laws of Argentina, including national defense, the Concession Holder shall be required to be governed at
all times by the consequences of such laws and the regulatory provisions deriving therefrom.

 

		7.	CORPORATE STRUCTURE

 

		7.1	Designated Corporate
                                         Purpose

 

During
the Concession Period, the Concession Holder must have as its sole designated purpose the providing of the service of operating,
managing and seeing to the functioning of Airport Group A, in accordance with the terms of all of the bidding documentation.

 

		7.2	Restrictions

 

The
shares of the corporation entering into the present Contract as a Party shall not be pledged or encumbered without authorization
in advance from ORSNA. The pledging or refraining from pledging shares or other assets shall not be regarded as a condition precedent
for fulfillment of investment commitments, and shall not serve as justification for failing to fulfill these commitments in a
proper and timely manner.

 

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The
Concession Holder’s shareholders of record shall not be permitted to change their holdings or sell their shares during the
first five years following the Effective Date. Thereafter, they shall not be permitted to change their holdings or sell shares
without prior approval from ORSNA. In such case, the Concession Holder shall be required to prove to the regulatory body that
neither airport service nor investments will be affected.

 

		7.3	Technical
                                         Expert

 

During
the initial five-year period, the Concession Holder shall be required to maintain the technical assistance commitment established
with the shareholder that furnished proof of qualifications as specified under subsection 6..3(a) of the Bidding Conditions.

 

This
technical assistance commitment must be on record with ORSNA, for purposes of oversight and auditing, and no change in the same
shall be permitted without ORSNA’s approval.

 

ORSNA
shall have the right to approach the Technical Expert directly for the purpose of requesting such reports as ORSNA may deem appropriate
with regard to technical aspects of the Contract.

 

		8.	ACCOUNTING

 

The
Concession Holder shall be required to keep its books in accordance with accounting principles accepted in Argentina, in such
form and in accordance with such specific accounting standards as may be pre-established by ORSNA.

 

		9.	INFORMATION

 

Upon
ORSNA’s request, the Concession Holder shall be required to supply all details of costs and revenues in fully itemized form,
as to all of the services and facilities provided by the Concession Holder.

 

At
the request of the Concession Holder, ORSNA may declare the information furnished by the Concession Holder confidential.

 

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		10.	INVESTMENT
                                         PLAN

 

		10.1	Fulfillment

 

It
is the exclusive responsibility of the Concession Holder to make the investments offered in the pertinent National and International
Bidding Competition, on the schedule likewise offered, as appended to the present Contract as Exhibit 3.

 

The
investments to be made must in all cases be designed to cover increased demand and associated needs within Airport Group A, as
well as to meet the minimum standards specified by ICAO and IATA.

 

The
investment commitments for each airport, as included in the Investment Plan, may be modified, provided:

 

		1.	The modifications
                                         are included in the duly approved Master Plan.

 

		2.	The total amount for
                                         each year does not change.

 

		3.	The commitments assumed
                                         by the national government under the agreements signed with provincial and/or municipal
                                         governments for the assignment of the use of the airports included in the Concession
                                         are not affected.

 

Likewise,
the Investment Plan must provide for replacement of the Jorge Newbery airport in the city of Buenos Aires prior to year 7 of the
Concession, by means of either a new or an existing airport capable of meeting the airport demand needs of the city of Buenos
Aires over the term of the Concession, whether by absorbing such demand at an existing airport or proposing a new one. In the latter
case, only investments of a strictly airport- related nature shall be taken into consideration, and not those of a supplementary
nature, which must be proposed at the time of evaluation of the preliminary project design for the site concerned.

 

The
Concession Holder shall not be obligated to fulfill the Investment in Increased Capacity requirements at the airport to be replaced,
provided the dates scheduled for construction of the new airport are respected. In such event, it shall be under stood that the
Investment in Increased Capacity so omitted shall become part of the investment to be made in the new airport. Meanwhile, the
replacement of the Jorge Newbery airport must cover and adequately meet the demands of present and anticipated future airport
service to and from that airport.

 

This
situation shall be governed by all of the provisions of section 3.17 of the Bidding Conditions, and by the provisions of section
4.4 of the present Contract.

 

With
the express approval of ORSNA, the Concession Holder may postpone part of the investments scheduled for a given year, but in such
case it shall be required to make a bank deposit in the amount originally committed to the investment so postponed, in accordance
with such instructions as may be imparted to the Concession Holder by ORSNA to this end. Interest earned on such deposit shall
be regarded as an increase in the royalty and credited accordingly to the Concession Grantor. The provisions of the present paragraph
shall not be deemed to constitute a change in the provisions relating to the performance guarantee covering the commitments assumed
under the Investment Plan, but the fines prescribed for delays in the schedule contemplated under the Investment Plan shall not
apply as to those investments whose postponement has been authorized, for the duration of such postponement.

 

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In
order to evaluate the Concession Holder’s fulfillment of investment commitments during the first three one-year periods,
and taking into consideration the fact that the Concession Holder has up to 360 days to complete the Taking of Possession of all
of the Group A airports, the Concession Holder shall be deemed to be fulfilling investment requirements provided it has invested,
as of the end of such three periods running from the Effective Date of the Concession Contract all of the sums contemplated for
the three periods, in the manner explained in the preceding paragraph.

 

Investments
scheduled for 1997 are to be regarded as pertaining to the first period beginning with the Effective Date of the Concession Contract,
Investments scheduled for 1998 shall pertain to the second period, and so on. To this end, each period shall be regarded as consisting
of one calendar year. The Tucumán and Viedma airports shall not become part of Airport Group A until the end of the first
period; for this reason, the investment calendar for these airports shall begin to run with the second one-year period of the
Concession.

 

		10.2	Guarantees

 

In
order to guarantee the faithful fulfillment of the Investment Plan included in Exhibit 3 accompanying the present Contract, the
Concession Holder submits hereupon a guarantee for the first five years of the Concession Period, on the terms established under
the Bidding Conditions, for renewable periods of 30 months, in the amount of 10% of the investment amount for the period concerned.

 

Between
years 5 and 10 of the Concession, the investment percentage to be guaranteed may be reduced by half, subject to approval in advance
from ORSNA. Thereafter, ORSNA shall set the percentage to be guaranteed. In all cases, ORSNA shall base its decision on the degree
of fulfillment of the Concession Holder’s obligations.

 

Any
renewal of this guarantee must include both the amount of the investments remaining to be made for the then current one-year period,
and the amount of the investments scheduled for the next 30 months covered by such [renewal of the] guarantee.

 

		11.	MASTER PLAN

 

The
Concession Holder shall be required to prepare a Master Plan for each of the airports included in Airport Group A, in accordance
with ICAO/IATA specifications.

 

    	 	15	 

     

    

  

Such
Master Plan shall be submitted for approval by ORSNA within 24 months of the Effective Date, and shall reflect the investments
to be received by each of the airports. The Master Plan shall in no case be permitted to reduce the total investment amount to
which the Concession Holder is committed under its Investment Plan.

 

Once
approved by ORSNA, the Master Plan for each airport may be amended only with approval in advance from ORSNA.

 

Master
Plans shall be submitted for the term of the Concession Contract, and shall be adjusted by the Concession Holder when the following
contingencies arise:

 

		-	At airports with traffic
                                         exceeding 500,000 passengers per year, the Master Plan shall be updated at ten-year intervals,
                                         unless the airports concerned experience a difference on the order of 20% between actual
                                         passenger volume and that originally projected under the pertinent Master Plan.

 

		-	At airports with traffic
                                         of less than 500,000 passengers per year, the Master Plan need not be updated unless
                                         the airports concerned experience a traffic volume differing by more than 50,000 passengers
                                         from that projected at the time of preparation of the pertinent Master Plan.

 

		12.	ARGENTINE
                                         AIR FORCE – RESERVATION

 

On
the premises of each airport, the National Government, through the Argentine Air Force, shall retain responsibility for the following
functions:

 

		12.1	Operating Functions

 

		(I)	Administer and operate
                                         air navigation, as regards flight safety, air traffic control and communications.

 

		(II)	Provide public weather
                                         service.

 

		(III)	Direct, supervise
                                         and establish formal procedures, systems and regulations as regards air navigation aids,
                                         air safety and acceptance testing thereof.

 

		(IV)	Track the Concession
                                         Holder’s investments in the areas for which it [the Air Force?] has exclusive
                                         responsibility.

 

		(V)	Designate the Head of
                                         Airport for each airport, to exercise the authority appropriate to this position at such
                                         airport. The Head of Airport shall provide cooperation and consultation in those areas
                                         in which it is necessary to coordinate tasks with the Airport Manager designated by the
                                         Concession Holder at the Group A airports.

 

    	 	16	 

     

    

  

		12.2	Oversight
                                         Functions

 

		(I)	Certify, register and
                                         supervise the aviation infrastructure.

 

		(II)	Establish standards
                                         and regulations relating to operating certification for all SNA member airports.

 

		(III)	Certify, register
                                         and supervise aviation personnel, flight equipment and related activities.

 

		(IV)	Establish standards
                                         and guidelines relating to the qualifications for aviation professional technical personnel
                                         in their various categories and fields of specialization.

 

		(V)	Establish standards
                                         and guidelines concerning the issuance of licenses to air and ground aviation technical
                                         personnel in their various categories and fields of specialization, as well as the assignment
                                         and issuance of national registrations, certificates of airworthiness and flight permits,
                                         within the scope of its jurisdiction, and all matters concerning the National Aircraft
                                         Registry.

 

		(VI)	Supervise compliance
                                         with technical and physical/psychological standards and requirements prescribed for aviation
                                         ground and air personnel.

 

		(VII)	Within the scope of
                                         its functions, certify, register and supervise public and private airfields, proposing
                                         and/or issuing standards for the operation thereof.

 

		(VIII)	Supervise and monitor
                                         all matters relating to compliance with technical standards and requirements to be met
                                         by aircraft and related equipment, including the maintenance thereof.

 

		(IX)	Supervise all matters
                                         relating to issuance of registrations and certificates of airworthiness.

 

		(X)	Certify, register and
                                         supervise Argentine civil aircraft, the components thereof, and establishments devoted
                                         to the construction and/or repairing of the same.

 

		(XI)	Supervise all matters
                                         concerning compliance with standards issued by the International Civil Aviation Organization
                                         (ICAO) as regards air navigation and operating problems relating thereto.

 

		(XII)	Maintain and keep
                                         up to date the Register of Issuances of Registrations and Certificates of Airworthiness,
                                         as well as the Air craft Title Register.

 

		(XIII)	Assume responsibility
                                         for the health care response in the event of air emergencies, without prejudice to the
                                         Concession Holder’s obligation to place at the disposal of the Air Force all resources
                                         for which the former is responsible (first aid medical services, means of clearing debris,
                                         fire prevention and firefighting in the areas under its control, platform personnel and
                                         any other resources that may prove necessary to deal with the emergency).

 

    	 	17	 

     

    

  

		(XIV)	Provide fire extinguishing
                                         services when the same are needed in connection with an aviation accident, in accordance
                                         with Executive Order No. 934/70.

 

		12.3	Safety/Security
                                         Functions

 

		(I)	Without prejudice to
                                         the powers of the Concession Holder as regards safety/security, act as air police and
                                         exercise jurisdictional and safety/security police functions within the territorial areas
                                         and as to the subject matter encompassed by the existing regulatory framework, at international
                                         airports.

 

		(II)	Establish the guidelines,
                                         standards, procedures and other formal requirements as regards air navigational aids,
                                         air safety and acceptance testing thereof.

 

		(III)	Establish Argentina’s
                                         airlanes and publish airlane charts.

 

		(IV)	Promulgate standards
                                         for the prevention of accidents in the field of civil aviation and investigate incidents,
                                         establishing the cause and origin of the same.

 

		(V)	Direct and supervise
                                         operations relating to “Rescue and Lifesaving/Salvage” at airports and “Search
                                         and Rescue” nationwide.

 

		(VI)	Coordinate with the
                                         Concession Holder as to considerations relating to the safety/security of the areas for
                                         which the Concession Holder is responsible.

 

		13.	OBLIGATIONS
                                         OF THE CONCESSION HOLDER

 

The
Concession Holder shall have the right to manage and operate, directly or through third parties, under the Concession Holder’s
exclusive responsibility and at its expense and risk, of all business, industrial and service activities relating to and/or connected
with airport activity.

 

Without
prejudice to the foregoing, the Concession Holder shall fulfill the following obligations:

 

		(I)	Ensure equality, freedom
                                         of access and nondiscrimination as to the use of airport services and facilities on the
                                         terms established under the Bidding Conditions and provisions explaining and supplementing
                                         the same.

 

		(II)	Take all measures within
                                         its power to ensure that the functioning of Airport Group A is compatible with the normal
                                         development of community life, environmental protection, national and international provisions
                                         to combat narcotics trafficking and drug abuse, and national defense.

 

    	 	18	 

     

    

  

The
obligation to take all measures within the Concession Holder’s power, as provided for under the preceding paragraph with regard
to the matters mentioned under the present subsection, is that deriving, for every resident of Argentina in general and for administrators
of public service establishments in particular, from the laws applicable to the subject matter in question. This does not mean
that authority vested in the pertinent government agencies is in any way being transferred to the Concession Holder.

 

		(III)	Carry out the Master
                                         Plan approved by ORSNA, in order to satisfy the demand for aviation and nonaviation services.

 

		(IV)	Operate airport services
                                         and facilities in a reliable manner, in accordance with applicable national and international
                                         standards, in accordance with the provisions of Exhibit 4 accompanying the present Contract.

 

		(V)	Make investments in
                                         airport infrastructure, in order to meet future air traffic demand requirements, in accordance
                                         with the applicable Investment Plan. Within the Investment Plan, the provisions of the
                                         third paragraph of section 10.1 of the present Contract shall be observed.

 

		(VI)	Carry out maintenance
                                         of Airport Group A, in order to satisfy the demand for aviation and nonaviation services,
                                         being responsible in this connection for maintenance of all airport facilities except
                                         those used by government bodies in the areas assigned and/or reserved to them.

 

		(VII)	Extend or expand the
                                         facilities where desirable in terms of airport service needs, in accordance with Master
                                         Plan and the Investment Plan.

 

		(VIII)	Install, operate
                                         and maintain the facilities and/or equipment in such manner as to prevent the same from
                                         constituting a public safety hazard, respecting the standards applicable to the subject
                                         matter in each case.

 

		(IX)	Act in a manner consistent
                                         with the objective of preserving and/or improving the ecosystems involved in the course
                                         of its activities, complying with environmental protection standards currently in effect
                                         and those coming to be established in the future, and evaluate technically, at the Concession
                                         Holder’s own expense, the environmental impact that may be produced by the construction
                                         work contemplated for purposes of the fulfillment of the present Contract, carrying out
                                         the appropriate studies and tests.

 

    	 	19	 

     

    

  

The
Concession Holder shall not be responsible for environmental damage or contingencies or repairs to the facilities deriving from
activities predating the Taking of Possession. Effective upon the Taking of Possession, the Concession Holder shall be responsible
for environmental pollution caused by its own activities or by environmental situations supervening as from that time, and for
fulfilling the obligations stipulated in the first paragraph of the present subsection. Without prejudice to the foregoing, and
until such time as the Phase 2 studies referred to below are carried out, the Concession Holder shall not be required to assume
responsibility for environmental situations already in existence as of the time of the Taking of Possession, on the terms hereinafter
specified in this section.

 

The
Concession Holder may propose the studies to be conducted in phase 2, for which ORSNA is responsible, at airports requiring the
same. The studies to be conducted shall be abonados [vouched
for? paid for?] by ORSNA, which may take into consideration the Concession Holder’s opinion concerning the same.

 

Provided
they have been approved and/or authorized by ORSNA, any expenses incurred by the Concession Holder as a consequence of correction
of the effects of environmental situations existing prior to the Taking of Possession or reconstruction deriving from the same
shall be deducted from the first royalty payment following approval of the pertinent work certificates.

 

		(X)	Refrain from abandoning
                                         in whole or in part the providing of airport service or the facilities intended for or
                                         appointed to use in the providing of the same, except with approval in advance from ORSNA.

 

		(XI)	Refrain from offering
                                         advantages or preferences to users and/or service providers (the latter being understood
                                         to consist of all private parties which, under a formal contract or other type of relationship
                                         with the Concession Holder, are authorized to provide goods and/or services on airport
                                         premises) at the facilities for which it is responsible, except as warranted by the status
                                         of the party receiving the same.

 

		(XII)	Pay the royalty, in
                                         accordance with the provisions of article 17 of the present Contract.

 

		(XIII)	Place at the disposal
                                         of ORSNA all documents and information necessary or requested by ORSNA for purposes of
                                         verifying compliance with the Contract and any applicable regulations, complying with
                                         such requests as ORSNA may make to this end.

 

		(XIV)	Provide, in the areas
                                         under its control, fire prevention, fighting and extinguishing services at Airport Group
                                         A, directly and/or through third-party specialists, approval being required from ORSNA
                                         as to the degree to which these duties are being discharged. The services for which the
                                         Concession Holder is responsible, without prejudice to the cooperation which the Concession
                                         Holder and its personnel are required to provide in the event of any emergency, shall
                                         cover only fires other than those classified by Executive Order No. 934/70 under the
                                         category of “aviation accidents,” investigation and prevention of which
                                         are the responsibility of dependencies of the Argentine Air Force. The obligations with
                                         which the Concession Holder is charged as regards fires on airport premises relate to
                                         the precautions to be taken for the prevention and extinguishing of the same apart from
                                         the cases mentioned above. To this end, the Concession Holder must have at each airport
                                         sufficient and suitable equipment and trained personnel, provided either by the Concession
                                         Holder itself or by third parties, without prejudice to the possibility of calling for
                                         assistance from any public or private fire departments that may exist, so as to provide
                                         all measures conducive to the maximum possible safety for persons and property on the
                                         aforementioned airport premises. The requirements to be met by the Concession Holders
                                         to this end shall be established and/or approved by ORSNA depending on the type of airport
                                         concerned, its passenger and freight traffic and such other circumstances as ORSNA may
                                         deem pertinent, in accordance with such regulations and guidelines for the prevention
                                         and combating of fires as may have been established by the competent authorities.

 

    	 	20	 

     

    

  

		(XV)	Comply with the provisions
                                         and regulations emanating from ORSNA.

 

		(XVI)	Respect the provisions
                                         of the Argentine Constitution, international treaties to which Argentina is a party and
                                         laws and regulations issued by the national authorities, including in particular the
                                         body or bodies designated to perform the tasks of auditing and overseeing airport project
                                         work and activities, with express waiver of any claim to legislative, judicial or arbitration-related
                                         extraterritoriality. In connection with all aviation or non-aviation activities, the
                                         Concession Holder shall be required to respect any national, provincial or municipal
                                         rules or regulations applicable to the airport premises covered by the concession.

 

		(XVII)	Keep Airport Group
                                         A open and/or operable during the hours established for each airport by ORSNA Until
                                         ORSNA decides on this matter, airports must be operable 24 hours a day, with the exception
                                         of those airports whose low numbers of daily operations do not warrant, in the judgment
                                         of the Concession Holder, such extensive operating hours. In this event, the airports
                                         concerned shall be limited to a schedule sufficient to meet their actual operating needs,
                                         ORSNA being vested with jurisdiction to grant exceptions and/or set operating hours.

 

		(XVIII)	Ensure the ability
                                         of the National Government to exercise its powers relating to operation of the airports
                                         covered by the present Contract, necessarily including:

 

		1.	Reserving to the Argentine
                                         Air Force the providing of air traffic and/or air traffic control and/or flight protection
                                         services and imposition and collection of the applicable rates and charges, as determined
                                         by ORSNA.

 

		2.	Determination of the
                                         spaces and areas within airports whose use is to be reserved to agencies and dependencies
                                         of the National Government, as well as the rules applicable to use of airport infrastructure
                                         by government aircraft, including military aircraft, by virtue of their specific functions,
                                         the same to be exempt from the payment of charges, and operation of the same to be ensured
                                         in accordance with service needs.

 

    	 	21	 

     

    

  

		3.	[Reserving] to agencies
                                         and dependencies of the National Government powers over the operation and use of airport
                                         facilities in emergency situations designated by the National Executive Branch.

 

		4.	Providing free of charge
                                         to government agencies and dependencies with powers over and/or a direct or indirect
                                         connection with airport activity, physical spaces as reasonable and necessary for purposes
                                         of providing their respective services (for example, Customs and Immigration). Additional
                                         space requirements on the part of public bodies must be satisfied on terms coordinated
                                         by ORSNA as to need and reasonableness.

 

Maintenance
of spaces provided free of charge to government agencies and dependencies shall be the responsibility of the same, except as otherwise
agreed between the parties. In this regard, the last part of article 43 of Executive Order No. 1674/76 shall apply.

 

The
government bodies to which the present subsection refers, as well as their respective functions, are as determined by applicable
laws and regulations, the latter being deemed to include, insofar as the Concession Holder is concerned, the bidding documentation
in its entirety.

 

		(XIX)	See that charges for
                                         transportation to airports, from and to points of origin [sic] are reasonable and fair
                                         in the case of such means of transportation as the Concession Holder may provide or offer
                                         either directly or through third parties under contract or authorization, even though
                                         not obligated to do so, likewise seeing that the charges to be collected by the Concession
                                         Holder (free minutes within airport and hourly parking) are as low as possible, in order
                                         that such benefit may be passed on to users, within the framework of free competition.

 

		(XX)	Make all investments
                                         necessary for the construction of new project work and/or remodeling and/or repairs and/or
                                         expansion necessary to bring the airports covered by the present bidding competition
                                         to acceptable levels of quality as to infrastructure, technological equipment, functionality
                                         and operation, and/or the carrying out of all necessary maintenance and upkeep tasks,
                                         in accordance with the requirements included in international treaties signed by Argentina
                                         with respect to civil and commercial aviation, as well as to achieve compliance with
                                         recommendations emanating from the competent international bodies. The Concession Holder
                                         shall likewise be required to comply with the provisions of Argentine laws and regulations
                                         applicable to airports and air fields, within the framework established under the Bidding
                                         Conditions and their accompanying Exhibits.

 

		(XXI)	Make the investments
                                         necessary in order’ to attend efficiently to the growth and development of domestic and
                                         international passenger, freight and postal air traffic.

 

		(XXII)	Implement, equip
                                         and operate emergency and first aid medical services on the premises under its control,
                                         in accordance with ICAO standards and recommendations.

 

    	 	22	 

     

    

  

In
accordance with Part 7 (Emergency Planning at Airports) of the ICAO Airport Services Manual (Exhibit 14), deployment of all resources
in the event of an aviation emergency shall be the responsibility of the Head of Airport designated by the Argentine Air Force,
the latter assuming responsibility for the health care response to such emergency, without prejudice to the Concession Holder’s
obligation to make available all resources for which it is responsible, such as first aid medical services, means of clearing
away débris, fire prevention and firefighting in the areas under its control, platform personnel and any other resources
that may be necessary to the implementing of the aforementioned Emergency Planning.

 

		(XXIII)	Adopt any airport
                                         safety measures necessary to safeguard the integrity of persons and/or things passing
                                         through the areas under the Concession Holder’s control, without prejudice to the
                                         jurisdiction conferred by law on the national authorities on airport premises.

 

		(XXIV)	None of the activities
                                         to be engaged in by the Concession Holder, whether or not enumerated above, shall adversely
                                         affect airport safety/security.

 

		(XXV)	Carry out all measures
                                         and actions necessary to ensure continuity in the providing of the services covered under
                                         the terms of the concession, and maintenance of the airports involved in optimal operating
                                         condition, likewise assuring users of safe and comfortable conditions during use of the
                                         facilities.

 

		(XXVI)	Maintain the existing
                                         pricing and quality conditions, and the existing legal relationships, as to the supplying
                                         of fuels and lubricants to the aircraft of Air Carriers, except as expressly otherwise
                                         agreed upon between the parties and/or authorized by ORSNA, as applicable.

 

		(XXVII)	Hire, under the provisions
                                         of the Employment Contracts Act, the qualified personnel to be employed effective upon
                                         the Taking of Possession, in order to ensure the uninterrupted providing of services,
                                         bearing in mind that the concession granted hereunder does not operate to transfer to
                                         the Concession Holder the personnel currently assigned to airport service, whatever their
                                         employment relationship. For this reason, any labor or employment-related obligation
                                         relating to personnel providing airport services prior to the Taking of Possession of
                                         each airport shall be the responsibility of the entity then employing such personnel,
                                         no responsibility attaching to the Concession Holder with respect to the same.

 

		(XXVIII)	Hereby assume responsibility
                                         for payment of professional fees, both fixed and contingent, to the Financial Advisor
                                         and Rate Consultant UBS Securities LLC (Union Bank Switzerland), as mentioned under
                                         section 3.18 of the Bidding Conditions, in respect of the Bidding Competition that gives
                                         rise to the present Contract, thus releasing the national government from such obligations,
                                         the same being irrevocably assumed by the Concession Holder.

 

    	 	23	 

     

    

  

		(XXIX)	Respect any agreements
                                         and stipulations that may have been entered into by the national government with regard
                                         to the assignment of use and/or transfer of the management and operation of airports
                                         for purposes of the incorporation of the same into Airport Group A as contemplated by
                                         the present Contract, in accordance with the terms of section 3.20 of the Bidding Conditions
                                         and the provisions interpreting and supplementing the same.

 

		(XXX)	Designate the Airport
                                         Manager for each Group A airport, to exercise the authority of such position at such
                                         airport, the same being required to cooperate and consult, in those areas in which the
                                         coordinating of tasks may prove necessary, with the Head of Airport designated by the
                                         Air Force.

 

		(XXXI)	To agree with ORSNA,
                                         which shall call upon the Concession Holder for the purpose, on the schedule for the
                                         Taking of Possession of the various Group A airports, being required to carry out the
                                         Taking of Possession of those airports which had traffic of more than 1 million passengers in 1996 within 90 days of being called upon by ORSNA to do so, and that of the remaining
                                         airports within 360 days of the same event, a record being drawn up of each such Taking
                                         of Possession. The Concession Holder shall receive the property in “as is”
                                         condition.

 

		14.	OBLIGATIONS
                                         OF CONCESSION GRANTOR

 

It
is the obligation of the Concession Grantor to guarantee to the Concession Holder the exclusivity of the present Concession Contract
for such term and subject to such conditions as may be determined by the bidding documentation in its entirety.

 

		15.	ACTS
                                         OF GOD OR FORCE MAJEURE

 

The
existence of an act of God or force majeure as provided
for under Argentine law shall release the parties from all responsibility for the obligations they have assumed, absent an express
reservation to the contrary.

 

		16.	RATE
                                         MECHANISM

 

For
the first five years of the Concession, the prices for aviation services for which the future Concession Holder shall be responsible
as from the Effective Date shall be as established under Exhibit 2 accompanying the present Contract.

 

Without
prejudice to the terms established for existing concessions, prices for nonaviation services not included in the aforementioned
Exhibit 2 shall be established freely by the parties, in accordance with the provisions of the bidding documentation.

 

    	 	24	 

     

    

  

The
rate schedules approved by ORSNA constitute maximum amounts that must be respected by the Concession Holder in billing for services
provided to users and Air Carriers.

 

During
the term of the concession, the applicable Rate Mechanism shall be that appearing in Exhibit 1 accompanying the Concession Contract,
or any other coming in the future to be approved by ORSNA.

 

The
Concession Holder shall have the right to propose to ORSNA, at such intervals and in such manners as the latter may establish,
the setting of rates for arrangements not originally contemplated, when implementation of the same represents technical and financial
improvements in the providing of service for Users and/or Air Carriers and/or the Concession Holder. These proposals may be
submitted once five years have elapsed following the Effective Date Likewise, ORSNA shall ordain such measures as circumstances
warrant.

 

In
accordance with the Initial Rate Schedule appearing in Exhibit 2 accompanying the present Contract, the Concession Holder shall
collect the following aviation charges:

 

		-	Landing Charge.

		-	Aircraft Parking
                                         Charge.

		-	Airport Use Charge.

		-	Telescoping Boarding
                                         Tube Use Charge.

 

Meanwhile,
the following aviation charges shall be collected by the Air Regions Command and other official bodies:

 

		-	Safety/Security
                                         Charge.

		-	Immigration Charge.

		-	En Route Flight
                                         Protection Charge.

		-	Landing Support
                                         Charge.

 

Except
as otherwise agreed in advance, billing, administration and collection of charges payable to the Argentine Air Force or other
official bodies shall not be the responsibility of the Concession Holder.

 

		17.	ROYALTY

 

The Concession
Holder shall be required to pay the Concession Grantor, by way of an annual royalty, the amount resulting from combining the basic
royalty, adjustments, updates and arrangements hereinafter provided for.

 

    	 	25	 

     

    

 

		17.1	Amount

 

		(a)	The annual royalty amount
                                         offered by the Awardee in its final financial bid, hereinafter the “basic royalty,”
                                         namely $171,121,000, payable by the Concession Holder one-half at the end of each six-month
                                         period, in U.S. dollars.

 

		(b)	To this end, the payment
                                         dates are hereby established as being no later than 30 days after the end of each calendar
                                         half-year; that is, June 30 and December 31 of each year.

 

		(c)	In order to determine
                                         the amount payable by way of basic royalty at the end of the first half-year of the Concession,
                                         as well as for purposes of the updating provided for, the reference date shall be deemed
                                         to be the date of the taking of possession of all Group A airports, or the date on which
                                         a period of 180 days elapses following the Taking of Possession, whichever is earlier.

 

		(d)	In the event that the
                                         end of the first calendar half-year following the reference date does not coincide with
                                         the elapsing of a full six months [of the Concession], the amount payable by way of basic
                                         royalty on such date as provided for under (b) above shall be prorated for the time elapsed
                                         since the reference date. The same principle shall apply, where appropriate, to the determination
                                         of the amount of the last basic royalty payment at the end of the Concession, counting
                                         the time elapsed from the closing date of the six-month period immediately preceding.

 

		(e)	The criterion applied
                                         for purposes of updating the basic royalty shall be the change in the Producer Price
                                         Index for Finished Goods, Seasonally Adjusted – Total (PPI), published monthly by the
                                         Bureau of Labor Statistics of the United States Department of Labor, between the month
                                         of December of the year in which the reference date referred to under (c) above falls
                                         (the same being regarded as the “PPI base year “), and December of the year
                                         for which the update adjustment is to be calculated. Such update adjustment shall be
                                         applicable beginning with the year following that taken as the base year, until the end
                                         of the Concession.

 

		(f)	Beginning with the sixth
                                         calendar year, counting from the reference date, changes in air traffic at Airport Group
                                         A, measured in Total Transportation Units (UTG), shall be incorporated into the update
                                         adjustment provided for under the preceding subsection. For purposes of this provision,
                                         the fifth calendar year shall be regarded as the “UTG base year.”

 

		(g)	The following algebraic
                                         expressions shall be used to determine the update adjustments provided for under (e)
                                         and (f) above:

 

Through
the fifth calendar year:

 

Ii = ((Pi
/ P0) – 1) x 100

 

    	 	26	 

     

    

  

Beginning
with the sixth calendar year:

 

Ii
= (((Pi’ / P0) x (Ti’
/ T0)) – 1) x 100

 

Where:

 

	Ii	=	Update adjustment percentage for year i, where i = year 2, 3,
    4 or 5.
	 	 	 
	Ii’	=	Update adjustment percentage for year i’, where i’ =
    year 6, 7, . . 30).
	 	 	 
	Pn	=	PPI for December of the year subject to update adjustment.
	 	 	 
	P0	=	PPI for December of the “PPI base year.”
	 	 	 
	Ti	=	Total Traffic Units (UTG) for the year subject to update adjustment.
	 	 	 
	T0	=	Total Traffic Units (UTG) for “UTG base year.”

 

		(h)	The amount resulting
                                         from the above update adjustment calculations shall be paid in a single yearly payment
                                         to be made within 90 days of the end of the calendar year subject to update adjustment.

 

		17.2	Environmental
                                         Expenses

 

If
the Concession Holder incurs expenses as a consequence of correction of the effects of environmental situations already in existence
as of the time of the Taking of Possession or any reconstruction deriving therefrom, any such expenses approved or authorized
by ORSNA shall be deducted from the next royalty payment.

 

		17.3	Default
                                         on Payment of Royalty

 

Default
on payment of the royalty shall occur automatically simply upon expiration of the prescribed time limit, without need for judicial
or extrajudicial demands for payment. The amount in default shall bear punitive interest at a rate equivalent to 1.5 times the
discount rate for commercial transactions applied by the Argentine Central Bank as of each day of default.

 

		18.	INSURANCE

 

At
the time of the signing of the present Concession Contract, the Concession Holder shall be required to take out at its own expense,
effective as of the Taking of Possession of the first airport and throughout the entire Concession Period, a civil liability policy
in the joint names of the Concession Holder and the Concession Grantor, covering any damages, loss or injury that may occur to
persons or property as a result of the performance of work or operation of the airports included in the present Contract, in
such manner as to hold harmless both the Concession Holder and the Concession Grantor until the termination of the Concession
Contract. The minimum amount of insurance covering the aforementioned shall be US$100 million. This amount shall be updated annually
by ORSNA.

 

    	 	27	 

     

    

  

The
Concession Holder shall be required to have coverage including partial and total risks on the property granted by concession.
The Concession Holder shall likewise be required to possess insurance covering any damages that may be caused by acts of God
or force majeure with regard to the investment in work
included in the Concession.

 

The
Concession Holder shall be required to take out worker’s compensation insurance as provided for under law No. 24570, or,
where applicable, to self-insure in accordance with the provisions of the same, and keep such insurance or self-insurance in effect
as long as there remains personnel employed by the Concession Holder or its subcontractors for purposes of the present Contract.

 

All
of the insurance provided for under the present article, and all renewals of the same, must be obtained from insurance companies
of recognized standing, to the satisfaction of ORSNA.

 

The
insurance policies and renewals thereof shall expressly provide for the obligation on the part of the insurer to notify the Concession
Grantor of any failure by the Concession Holder to make payment. The insurance policy must remain in effect for at least 15 days
following the date of such notice, in order to allow time to remedy the nonpayment.

 

Any
failure on the part of the Concession Holder to fulfill the obligations for which it is responsible with regard to the taking
out of insurance shall empower the Concession Grantor to take out and keep in effect the pertinent insurance, at the expense of
the former. In this regard, the Concession Grantor shall have the right to pay the applicable premiums, which shall be refunded
by the Concession Holder within five days, on pain of foreclosure of the guarantee provided for under article 21 of the present
Contract Without prejudice to the foregoing, the Concession Holder shall in no case be released from contractual liability in
the event of a casualty loss.

 

The
Concession Holder shall be liable for all losses, claims, complaints, legal actions, costs, charges and expenses deriving or resulting
from a breach on the part of the Concession Holder of the requirements of the present article, whether as a consequence of cancellation
of any of the aforementioned insurance or in any other manner.

 

		19.	LIABILITY

 

The
Concession Holder shall be liable for all damages caused to the Concession Grantor and/or third parties as a consequence of performance
of the present contract and/or failure to fulfill the obligations assumed under the same.

 

    	 	28	 

     

    

 

		20.	TAX STABILITY

 

The
Concession Holder shall be liable for payment of all taxes established by applicable national and provincial laws and municipal
ordinances. Consequently, no exception, release, preferential treatment, tax exemptions or tax stability shall apply with respect
to the Concession Holder, except as arising from such laws and ordinances or the regulations associated therewith.

 

Without
prejudice to the foregoing, if, subsequent to the date of the Taking of Possession, any change occurs in the total tax burden
as the result of the enactment, modification, repeal or extinction of taxes, charges or assessments bearing or levied directly
(i) on rates, charges or consideration which the Concession Holder is entitled to collect from Users; or (ii) on the activity
carried on by the Concession Holder, the Concession Holder may request from ORSNA, or the latter may order at the request of a
party, the appropriate change in the rates, charges or consideration which the Concession Holder is entitled to collect from Users,
to the extent of the actual impact caused by such change in the tax burden.

 

No
change or modification of the tax burden warranting the passing on of the impact in the manner provided for above shall be deemed
to have occurred when the changes made relate to the profits tax or any tax coming in the future to replace or supplant the same.

 

The
Concession Holder shall not be obligated to question the validity, legality, constitutionality or applicability of any tax provisions
the competent authorities may seek to impose on the Concession Holder following the Taking of Possession, in order to be entitled
to pass on the tax burden as provided for under the preceding subsection. Once the provisions making the change in the total tax
burden have been enacted, the Concession Holder shall have the right to apply to ORSNA for the passing on of the same whenever
regulated rates become affected, and ORSNA shall be required to grant the relief so applied for, once the impact of the Change
on the Concession Holder’s economic and financial equation has been verified.

 

The
Concession Holder’s obligation to pay the taxes and service and other charges for which it is liable shall in no case include
an obligation to pay those which were outstanding or which accrued prior to the Taking of Possession, nor to pay real estate taxes,
which – if any are payable – are the responsibility of the owner of the real property.

 

		21.	CONTRACT
                                         PERFORMANCE GUARANTEE

 

		21.1	As
                                         security for the timely fulfillment of the obligations assumed by the Concession Holder
                                         under the present Contract, the Concession Holder shall post a guarantee in the amount
                                         of US$10 million, which shall be kept in effect throughout the term of the Concession
                                         and updated in accordance with the Producer Price Index for Finished Goods, Seasonally
                                         Adjusted – Total, published monthly by the Bureau of Labor Statistics of the United States
                                         Department of Labor. The posting of this guarantee may not be invoked by the Concession
                                         Holder as a means of limiting or avoiding the complete fulfillment of all of the obligations
                                         assumed by the Concession Holder under the present Contract.

 

    	 	29	 

     

    

 

The
issuing bank and the terms on which the guarantee is issued and/or renewed must be approved by the Office of the Head of the Cabinet.
The aforementioned guarantee may be renewable for successive periods of no less than two years, such renewal to occur no less
than 60 days in advance of each expiration date.

 

		21.2	Forms

 

The
guarantee may be posted in any of the following forms, at the Concession Holder’s option:

 

		(I)	In cash, by sight or
                                         time deposit automatically renewable every 30 days at the Argentine Central Bank, payable
                                         to the order of the Office of the Head of the Cabinet. Interest on the principal deposited
                                         shall be applied to the amount of the guarantee.

 

		(II)	A bank surety by a
                                         bank accepted by the Office of the Head of the Cabinet, whereby the bank granting the
                                         surety constitutes itself as jointly and severally liable co-debtor pure and simple
                                         and payer of first resort, upon the first demand for payment made by ORSNA, as to any
                                         and all of the obligations assumed by the Concession Holder under the Bidding Conditions
                                         and the present Contract, and up to the amount provided for under section 20.1, with
                                         express waiver of the benefits of severance and excussio
                                         [right to demand exhaustion of remedies against the original debtor before
                                         proceeding against the surety] under the terms of article 2013 of the Civil Code and
                                         article 480 of the Commercial Code. The amount of the guarantee shall be adjusted every
                                         two years following the original posting thereof, in accordance with the change in the
                                         Producer Price Index for Finished Goods, Seasonally Adjusted – Total, published monthly
                                         by the Bureau of Labor Statistics of the United States Department of Labor.

 

		(III)	Deposit to the order
                                         of the Office of the Head of the Cabinet, at the Argentine Central Bank, of Argentine
                                         Foreign Debt Bonds (Bonex) in a quantity sufficient, at Argentine market prices, to cover
                                         the guarantee plus an additional margin of 20%. Payments by way of amortization and
                                         interest on the bonds shall become part of the guarantee, which must be deposited in
                                         the manner provided for under (I) above.

 

		(IV)	Insurance bond issued
                                         in the name of the Office of the Head of the Cabinet by an insurance carrier accepted
                                         by the same, in accordance with the terms provided for under (II) above, The amount of
                                         the guarantee shall be adjusted every two years following the original posting thereof
                                         in accordance with the change in the Producer Price Index for Finished Goods, Seasonally
                                         Adjusted – Total, published monthly by the Bureau of Labor Statistics of the United States
                                         Department of Labor.

 

    	 	30	 

     

    

 

		(V)	In the event of coinsurance,
                                         the policy must indicate the percentages assumed by each insurer, certifying that the
                                         same have no indebtedness due and payable to reinsurance carriers.

 

		(VI)	The Concession Holder
                                         shall be required to submit a certificate issued by any reinsurance carriers with which
                                         its insurers do business, documenting the nonexistence of any indebtedness due and payable
                                         by the insurers to such carriers.  The Concession Grantor and/or the Competent Authority
                                         shall have the right to demand the submitting of such certificates at any time they may
                                         deem the same advisable, throughout the Concession Period.

 

		(VII)	Opening of an irrevocable
                                         and unconditional stand-by letter of credit granted by a frontline bank satisfactory
                                         to the Office of the Head of the Cabinet. The amount of the guarantee shall be adjusted
                                         every two years following the original posting thereof, in accordance with the change
                                         in the Producer Price Index for Finished Goods. Seasonally Adjusted – Total, published
                                         monthly by the Bureau of Labor Statistics of the United States Department of Labor.

 

		21.3	Documentation

 

The
guarantee must be established with express reference to the present Contract. The original document establishing the same shall
be tendered to the Office of the Head of the Cabinet prior to the Taking of Possession. The signatures of the persons signing
a surety or insurance bond must be certified by a Notary Public. As a precondition for the Taking of Possession, the Concession
Holder must have received approval of the guarantee from the Office of the Head of the Cabinet.

 

		21.4	Claims
                                         Against Guarantee

 

Following
notice to the Concession Holder to fulfill within 15 days any obligation as on which it may have defaulted, ORSNA shall have the
right to collect such portion of the guarantee as to enable it to make arrangements, either directly or through third parties
and at the Concession Holder’s expense, to fulfill the obligations the latter failed to perform and cover the repairing
of any damages, including legal interest deriving from the default. ORSNA shall have the right to collect against the guarantee
to cover payment of fines imposed on the Concession Holder, or any other sum the latter may owe the Concession Grantor and/or
ORSNA on any account.

 

Any
failure to fulfill a clause of the present Contract shall be regarded as covered by this Contract Performance Guarantee If the
nonfulfillment affects the Investment Plan, this guarantee shall be replaced by the Investment Commitment Guarantee provided for
under section 10.2 of the present Contract.

 

    	 	31	 

     

    

 

		21.5	Restoration
                                         of Guarantee

 

In
the event that ORSNA and/or the Office of the Head of the Cabinet collects part or all of the guarantee, the Concession Holder
shall have a time limit of 30 days, counting from the date of collection of the guarantee, to restore the full amount of the same
by depositing a sum equal to that collected. The Concession Holder shall owe the Concession Grantor the amount of interest accruing
as from the fifth day following such collection, until the date of the deposit restoring the full amount of the guarantee. This
interest shall be calculated in accordance with the average LIBOR rate in effect on each day of default, plus two points.

 

		21.6	Return
                                         of Guarantee

 

The
guarantee shall be returned to the Concession Holder, after deduction of the amounts necessary to ensure fulfillment of any outstanding
obligations assumed by the Concession Holder, within 60 days of the extinction of the Concession, provided such extinction was
not motivated by fault or negligence on the part of the Concession Holder. If the extinction of the Concession takes place because
of fault or negligence on the part of the Concession Holder, the latter shall permanently forfeit the full amount of the guarantee,
which shall be added to the compensation for damages payable to the Concession Grantor.

 

		22.	PENALTIES

 

In
the event of a breach of the obligations assumed by the Concession Holder, ORSNA shall
have the right to impose such monetary fines as it may deem appropriate, respecting in all cases the principle of due process.

 

To
this end, it shall be the responsibility of ORSNA to regulate the mechanism and procedure to be applied and/or the graduation
of penalties, without prejudice to the provisions of the present Contract.

 

Delays
in the Investment Plan schedule shall result in imposition by ORSNA of a penalty equivalent to 10% of the value of the unit of
work that has been delayed. This fine may be collected directly by ORSNA against the Investment Commitment Guarantee which the
Concession Holder is required to post.

 

Any
monetary fines imposed by ORSNA shall become due and payable only after the handing down of a final administrative ruling.

 

The
Concession Holder shall be required to pay any fines and penalties imposed upon it by ORSNA, but shall be entitled to claim for
a refund of fines if it is able to demonstrate to the satisfaction of ORSNA that the cause of the nonperformance for which the
fine was imposed is not imputable to the Concession Holder or any third party for which the Concession Holder is responsible.

 

    	 	32	 

     

    

 

In
the event that the Concession Holder demonstrates that the nonperformance or delay was not imputable to it or to persons for which
it is responsible, it shall be excused from paying the penalty. If the same has already been paid, it shall be refunded to the
Concession Holder, with the applicable accessory charges.

 

		23.	RESCISSION
                                         BECAUSE OF A BREACH OF DUTY ON THE PART OF THE CONCESSION HOLDER

 

		23.1	Breach
                                         of Duty on the Part of the Concession Holder

 

Without
prejudice to any other rights the Concession Grantor may have by virtue of the present Contract, it shall be entitled to rescind
the same in the following cases:

 

		(a)	When the Concession
                                         Holder repeatedly comes into breach of substantial contractual obligations and fails
                                         to regularize such situation within the time limit specified by ORSNA in its notice of
                                         such breach. A substantial contractual obligation shall be understood as meaning any
                                         whose nonfulfillment by the Concession Holder gives rise to notice from ORSNA to regularize
                                         the resulting situation.

 

		(b)	When the cumulative
                                         amount of fines imposed on the Concession Holder comes to exceed 20% of the latter’s
                                         gross revenues, net of taxes and official charges for the 12-month period concerned. This
                                         calculation and determination shall be made by ORSNA following the close of each one-year
                                         period.

 

In
order for fines to be counted, the same must at least have been affirmed by final administrative ruling. Likewise, the gross revenues
considered as mentioned above shall be those for the one-year period immediately preceding the date of calculation.

 

		(c)	If the shareholders
                                         encumber or allow to be encumbered in any manner the shares of the Concession Holder
                                         without ORSNA’s participation, and do not proceed to secure the discharge of such
                                         encumbrance within such time limit as may be specified by ORSNA.

 

		(d)	If a meeting of Shareholders
                                         of the Concession Holder approves, without ORSNA’s participation, an amendment
                                         to the Bylaws of the Corporation or a share issue that alters or permits alterations
                                         in the shareholdings existing at the time of incorporation, on the terms established
                                         under the Bidding Conditions.

 

		(e)	If shares in the Concession
                                         Holder are transferred in violation of the provisions of the Bidding Conditions or without
                                         prior approval from ORSNA.

 

		(f)	Failure to make payment
                                         of the royalty on time and in the prescribed form, in accordance with the Concession
                                         Holder’s obligation.

 

    	 	33	 

     

    

  

In
the event of any of the breaches of duty mentioned in the present article, ORSNA shall have the right to notify the Concession
Holder that the latter must regularize the situation, on pain of rescission of the present Contract.

 

If
the Concession Grantor makes use of the power granted by the present subsection, it shall pay the Concession Holder the updated
value of the aviation investments made that have not been amortized as of the time dissolution is ordered, deducting from the
same the following percentages by way of compensation for damages incurred by the Concession Grantor:

 

		-	During the first
                                         ten years of the Concession, 50%.

 

		-	During the second
                                         ten-year period of the Concession, 45%.

 

		-	During the third
                                         ten-year period of the Concession, 40%.

 

Aviation
investments shall be regarded as consisting of those deriving from the provisions of the present Contract or having been authorized
by ORSNA as aviation investments, which are made by the Concession Holder on airport premises.

 

For
purposes of the present section, the investments considered shall not include those not originally contemplated under the Investment
Plan or not expressly authorized by ORSNA.

 

Without
prejudice to the foregoing provisions, in the event of rescission of the Contract because of a breach of duty on the part of the
Concession Holder, the Concession Grantor and ORSNA shall foreclose the guarantees posted to cover performance of the Contract
and fulfillment of the Investment Plan.

 

		23.2	Breach
                                         of Duty on the Part of the Concession Grantor

 

When
the Concession Grantor comes into breach of its obligations in such manner as to prevent the Concession Holder from providing
the service called for by the present Contract, or seriously affect the same in a permanent manner, the Concession Holder shall
have the right to demand rescission of the Contract, following notice to the Concession Grantor to remedy the situation within
90 days.

 

The
compensation for damages to which the Concession Holder shall be entitled in the event of rescission because of a breach of duty
on the part of the Concession Grantor shall be limited in accordance with the following indices:

 

		-	During the first ten years
                                         of the Concession, the amount of investments of an aviation nature made by the Concession
                                         Holder and not yet amortized shall be multiplied by 1.30.

 

    	 	34	 

     

    

  

		-	During the second ten-year
                                         period of the Concession, the amount of investments of an aviation nature made by the
                                         Concession Holder and not yet amortized shall be multiplied by 1.20.

 

		-	During the third ten-year
                                         period of the Concession, the amount of investments of an aviation nature made by the
                                         Concession Holder and not yet amortized shall be multiplied by 1.10.

 

When
the breach of duty on the part of the Concession Grantor that leads to rescission derives from negligence, fault or willful misconduct
on the part of the Concession Grantor’s agents not remedied in a timely manner by the Concession Grantor, in accordance
with the notice requirement and time limits referred to earlier in the present section, the Concession Holder shall have the right
to demand in accordance with applicable provisions of law compensation for damages, with the exception of lost profits, deriving
from the valid commitments assumed by the latter.

 

		24.	END OF
                                         CONCESSION

 

Termination
of the Concession shall generate the following consequences:

 

		24.1	Delivery

 

On
the expiration date of the Concession Period, the Concession Holder shall be required to turn over Airport Group A to the Concession
Grantor, with all of the property appointed to the same, including that deriving from the Investment Plan, at no charge to the
National Government.

 

		24.2	Property

 

The
property which the Concession Holder is required to turn over to the Concession Grantor must be in good condition, except for
the normal deterioration resulting from the passage of time.

 

		24.3	Debts of
                                         Concession Holder

 

The
Concession Holder shall be required to assume responsibility for payment of all of its debts, and on no account shall be permitted
to transfer the same to the Concession Grantor.

 

		24.4	Services
                                         Included in Concession

 

The
Concession Holder shall be required to restore to the Concession Grantor upon termination of the Concession all of the services
included in the same, with the technological advances and development incorporated into the same, and the new services established
in connection with those previously in existence, with no light to consideration of any kind.

 

    	 	35	 

     

    

  

		24.5	Contracts
                                         in Process of Performance

 

As
a general principle, it is hereby provided that no contract in the process of performance shall be transferred to the Concession
Grantor upon termination of the Concession. Without prejudice to the foregoing, the Concession Holder shall be required to include
in its contracts clauses obligating those providing goods or services to continue contracts in the process of performance for
at least 180 days following the return of the Concession, with an option to rescind on the part of the Concession Grantor. The
provisions specified under section 23.2 of the present Contract shall also be included.

 

		25.	BUYOUT
                                         OF CONCESSION

 

		25.1	Time

 

The
Concession Grantor shall have the right to buy out the Concession once 20 years have elapsed following the Effective Date.

 

		25.2	Consequences

 

In
the event of a buyout of the Concession, only the following shall be allowed by way of damages:

 

		-	The amount of investments
                                         of an aviation nature made by the Concession Holder and not yet amortized as of the time
                                         of the buyout, multiplied by 1.10.

 

The
investments considered shall not include any not originally contemplated under the Investment Plan or not expressly authorized
by ORSNA.

 

As
to all other airport investments (meaning all other investments made by the Concession Holder on airport premises), credit shall
be allowed for the portion not yet amortized as of the time of the buyout.

 

For
purposes hereof, all of the provisions relating to the normal termination of the Concession shall apply, except as follows:

 

		-	Contracts in the process
                                         of performance shall pass to the Concession Grantor.

 

		-	The Concession Grantor
                                         shall assume in full any debts incurred by the Concession Holder to acquire goods or
                                         services for purposes of providing airport service, with the exception of those provided
                                         for under the Investment Plan. Compensation for the latter shall be provided as part
                                         of the payment to be made by the Concession Grantor.

 

    	 	36	 

     

    

  

In
no case shall credit be allowed for lost profits.

 

Only
maintenance expenses included in Major Corrective Maintenance provided for under the Investment Plan shall be considered for purposes
of amortization.

 

		26.	ASSIGNMENT

 

The
lights and obligations of the Concession Holder deriving from the present Contract, relating directly or indirectly to aviation
activities, shall not be assigned to any third party without the prior consent of ORSNA and the National Executive Branch.

 

The
Concession Holder is authorized to grant concessions as to the commercial operation of Airport Group A and/or portions thereof
to third parties during the term of the present Contract, provided such concessions do not involve or interfere with aviation
activities.

 

		27.	CONTROVERSIES

 

Any
dispute between the Concession Holder and the Argentine Air Force and/or Air Carriers with regard to the management and/or operation
of Airport Group A shall be submitted to ORSNA prior to the filing of any judicial proceedings with respect to the same.

 

		28.	APPLICABLE
                                         LAW AND JURISDICTION

 

The
Contract shall be governed and interpreted in accordance with the laws of Argentina, including in particular the rules and principles
of Aviation and Administrative Law, provided, however, that the foregoing shall not prevent the relationships existing between
the Concession Holder and third parties from being governed substantially by Private Law.

 

For
all purposes under the present Contract, except as otherwise provided for under article 31 and article 75, section 22 of the Argentine
Constitution, the parties accept the jurisdiction of the competent Federal Courts of the city of Buenos Aires.

 

Any
notice given to one party by another shall be valid if given to the domiciles respectively elected by the parties.

 

As evidence
of approval, subject to referral to the National Executive Branch, the present document is signed in three copies of identical
contents to one and the same effect, in Buenos Aires, on February 9, 1998, to take effect upon approval by the National Executive
Branch by means of the appropriate Executive Order.

 

    	 	37	 

     

    

  

[Four signatures
– Illegible]

 

[Signatures
notarized by Marta María R. Iacometti, Notarial Clerk in the General Notarial Office of the National Government; seal]

 

    	 	38	 

     

    

  

EXHIBITS

 

		1.	Rate Mechanism

 

		2.	Initial Rate Schedule

 

		3.	Investment Plan

 

		4.	Airport Standards
                                         / Quality of Service

 

		5.	Listing of National
                                         Airport System Group A Airports

 

    	 	39	 

     

    

  

EXHIBIT 1 – RATE MECHANISM

 

The National
Airport System Regulatory Body (ORSNA), in order to regulate National Airport System (SNA) aviation charges, shall apply the mechanism
described in detail as follows:

 

The adjustment
of rates shall be based on the formula PPI-X, where:

 

		-	PPI means the Producer
                                         Price Index published monthly by the Bureau of Labor Statistics of the United States
                                         Department of Labor.

 

		-	X
                                         represents an adjustment factor which is set by ORSNA in accordance with the
                                         guidelines set forth in the present Exhibit.

 

Without prejudice
to the figures established for the Initial Rate Schedule, the applicable aviation charges shall be reviewed by ORSNA every three
to five years, as the latter may deem appropriate. At the time of each rate review, ORSNA shall set the value for the adjustment
factor X, which may have point values for each year or
for a given period of time.

 

		A.	Adjustment
                                         Factor X

 

In calculating
adjustment factor X, ORSNA shall take into account five
basic variables, as follows:

 

		1.	Increase
                                         in Traffic

 

Must be in
such form as to be able to be converted into a projection of aviation revenues. This means that traffic projections must be expressed
in terms of domestic and international passengers and aircraft movements, and the latter must likewise be broken down by aircraft
type and maximum take-off weight, a fundamental factor in determining several aviation charges.

 

		2.	Improvements
                                         in Efficiency

 

In response
to the advantages resulting from the developing of economies of scale, ORSNA shall estimate the extent of airport management cost
savings benefits, or, alternatively, set reasonable cost reduction goals for each successive period of three to five years.

 

		3.	Level
                                         of Services

 

ORSNA shall
have the right to impose certain service quality levels for different groups of airports, depending on their size (passenger and
air craft traffic volume), characteristics (size of terminal, runways and operations area). The fundamental objective is to ensure
that the airport operator does not generate profits by reducing the quality of service.

 

    	 	40	 

     

    

  

Levels of
service are to be determined by ORSNA based on studies carried out by the latter or subcontracted to specialist consultants, who
shall prepare a thorough analysis of the needs of users (airlines and passengers). The methods to be used include the Service
Quality Index, which is calibrated by means of a questionnaire circulated to users.

 

		4.	Projected
                                         Investment Levels

 

Once the Project
Master Plans have been approved by ORSNA, the total investment value for the next five-year period shall be determined.

 

		5.	Projected
                                         Rate of Return

 

The objective
rate of return considered acceptable by ORSNA, as well as by the operator(s) of the airport(s). This rate must be in proportion
to the rates of return achieved in other generally similar service industries in Argentina. It must also include a risk premium
in view of the uncertainty associated with managing a large number of small, relatively unprofitable airports.

 

The rate of
return to be used is the return on principal. This is adjusted operating income (operating revenues less costs less amortization)
expressed as a percentage of principal.

 

The diagram
below shows the relationship among the various variables and the information necessary for determining the adjustment coefficient
X.

 

 

    	 	41	 

     

    

  

		B.	Value of
                                         Concession Holder’s Assets or Investment

 

The figure
used as the value of the Concession Holder’s assets shall be that actually paid by the Concession Holder. This represents the
investment that will be used by the new owner or concession holder of the airport to determine the concession holder’s future
return value.

 

By way of
updating the future value of the assets, the value of the same is adjusted every three to five years, in order to reflect new
investments and inflation. The net investment consists of investment disbursements less the proceeds from sales of assets, if any
The CPI for the construction industry [is used] to increase the value of the assets.

 

		C.	Determination
                                         of Prices of Network or Multiple Services

 

Airports
and airfields are divided into five different categories for rate setting purposes. The rate structure is applicable to all categories,
but the level of the charges may vary for any or all of the categories. ORSNA, taking into consideration cost structures, levels
and composition of traffic for each of the airport groups, is to set rate levels for each specific category.

 

The
airports are listed below by category.

 

CATEGORY
ONE - CLASS “A”

 

Buenos
Aires - Jorge Newbery (Aeroparque)

Buenos
Aires - Ministro Pistarini Airport, Ezeiza

 

CATEGORY
ONE

 

	Bahía Blanca / Comandante
    Espora	Río Gallegos
	Catamarca	Río Grande
	Iguazú Falls	Rosario
	Comodoro Rivadavia	Salta
	Córdoba	San Carlos de Bariloche
	Corrientes	San Juan
	Esquel	San Luis
	Formosa	Santa Rosa
	Jujuy	Santiago del Estero
	La Rioja	Sauce Viejo
	Mar del Plata	Tandil
	Mendoza / El Plumerillo	Trelew
	Neuquén	Tucumán
	Paraná / General Urquiza	Villa Reynolds
	Posadas	Viedma
	Resistencia	 

 

    	 	42	 

     

    

  

CATEGORY
TWO

 

	Concordia / Comodoro	Pierrestegui
	Don Torcuato	Puerto Deseado
	General Pico	Puerto Madryn
	Gualeguaychú	Reconquista
	Jurnín	Río Cuarto / Área de Material
	La Plata	San Antonio Oeste
	Malargüe	San Fernando
	Marcos Juárez	San Martín de los Andes / Chapelco
	Morón	San Julián
	Necochea	San Rafael
	Paso de los Libres	Ushuaia
	 	Villa Gesell

 

    	 	43	 

     

    

  

CATEGORY
THREE

 

	Apóstoles	Las Lomitas (Formosa)
	Bella Vista (Corrientes)	Las Ovejas (Neuquén)
	Bolívar	Loncohué
	Cañadón Seco (Santa Cruz)	Mendoza (Aeroparque)
	Catamarca (Aeroclub)	Mercedes (Corrientes)
	Chacharramendí (La Pampa)	Monte Caseros
	Chilecito	Olavarría
	Chos Malal (Neuquén)	Orán
	Clorinda	Pedro Luro (Buenos Aires)
	Colonia Catriel (Río Negro)	Pehuajó
	Comandante Luis Piedrabuena	Peigamino
	Comodoro Rivadavia / 13 de Diciembre	Perito Moreno
	Coronel Suárez	Quemú-Quemú
	Curuzú Cuaitá	Realicó (La Pampa)
	Cutral Có	Rincón de los Sauces
	Doctor Mariano Moreno	San Juan (Aeroclub)
	El Bolsón	San Nicolás de los Arroyos
	El Colorado (Formosa)	Santa Cruz
	El Maitén	Santa Teresita
	El Turbio	Santa Victoria (Salta)
	General Acha	Sierra Grande
	General Roca	Tartagal
	General Villegas	Tinogasta (Catamarca)
	Gobernador Gordillo	Trelew (Aeroclub)
	Gobernador Gregores	Trenque Lauquen / Ñanco Lauquen
	Goya	Tres Arroyos
	Jacinto Arauz (La Pampa)	25 de Mayo (La Pampa)
	Jujuy (Aeroclub)	Venado Tuerto
	Lago Argentino	Villa Minetti (Santa Fe)
	Las Heras (Santa Cruz)	Zapala
	Las Lajas (Neuquén)	 

 

 

    	 	44	 

     

    

 

CATEGORY
FOUR

 

	Aeroclub Laboulaye	Lago Nahuel Huapi
	Aeroclub Pinamar	Laprida
	Alto Río Senguerr	Las Flores
	Alvear (Corrientes)	Lincoln
	Alvear (Aeroparque Rosario)	Lobos
	Arrecifes	Maipú
	Ayacucho	Mar del Plata / Batán (Aeroclub)
	Azul	Matanza
	Balcarce	Mercedes (Buenos Aires)
	Bell Ville	Mercedes (San Luis)
	Bragado	Miramar
	Carlos Casares	Nueve de Julio
	Carmen de Patagones	Pellegrini
	Chacabuco	Pigüé
	Charata	Presidente Roque Saenz Peña
	Chivilcoy	Punta Alta
	Club de Planeadores “Rivadavia”	Quilmes
	Concepción del Uruguay	Rafaela
	Coronel Dorrego	Río Mayo
	Coronel Olmedo	Rufino
	Coronel Pringles	Saladillo
	Coronel Vidal	San Antonio de Areco
	Curuzú Cuatía (Aeroclub)	San Francisco (Córdoba)
	Dolores	San Justo / Aeroclub Argentino
	Eldorado	San Martín (Mendoza)
	Elizalde	San Martín de los Andes (Aeroclub)
	Esperanza	San Miguel del Monte
	General Alvear (Mendoza)	San Pedro
	General Alvear (Aeroclub)	Santo Tomé (Aeroclub) (CRR)
	General José de San Martín
    (Chaco)	Sarmiento
	General Lamadrid	Sunchales (Aeroclub)
	General Madariaga	Tandil (Aeroclub)
	General Viamonte / Los Toldos	Vedia
	González Chávez	Verónica
	Goya (Aeroclub)	Victoria
	Gualeguay	Villa Ángela
	Henderson	Villa Dolores
	José de San Martín (Chubut)	Villa María
	La Cumbre	Zárate
	Lago Buenos Aires	 

 

    	 	45	 

     

    

 

EXHIBIT 2 – INITIAL RATE SCHEDULE

 

For all purposes in connection with this Exhibit, the
“Category One – Class A” airports are treated as included in “Category One.”

 

		1.	Landing Charge

 

International Flights

 

	US$ per ton	 	Airport Category	 
	Aircraft weight (tons)	 	I	 	 	II	 	 	III	 	 	IV	 
	5-30 tons	 	 	4.62	 	 	 	2.75	 	 	 	1.65	 	 	 	1.65	 
	31-80 tons	 	 	5.28	 	 	 	3.30	 	 	 	1.93	 	 	 	1.93	 
	81-170 tons	 	 	6.49	 	 	 	3.96	 	 	 	—	 	 	 	—	 
	>170 tons	 	 	7.19	 	 	 	—	 	 	 	—	 	 	 	—	 
	Minimum charge	 	 	20.00	 	 	 	10.00	 	 	 	6.00	 	 	 	6.00	 
	Surcharge for operation outside normal hours	 	 	260.00	 	 	 	188.00	 	 	 	120.00	 	 	 	120.00	 
	Surcharge for night runway marking	 	 	30	%	 	 	30	%	 	 	30	%	 	 	30	%

 

Domestic Flights

 

	US$ per ton	 	Airport Category	 
	Aircraft weight (tons)>	 	I	 	 	II	 	 	III	 	 	IV	 
	5-30 tons	 	 	2.20	 	 	 	1.40	 	 	 	0.90	 	 	 	0.55	 
	31-80 tons	 	 	2.40	 	 	 	1.60	 	 	 	1.10	 	 	 	—	 
	81-170 tons	 	 	2.65	 	 	 	1.85	 	 	 	—	 	 	 	—	 
	>170 tons	 	 	3.10	 	 	 	—	 	 	 	—	 	 	 	—	 
	Minimum charge	 	 	14.10	 	 	 	10.70	 	 	 	7.10	 	 	 	3.60	 
	Surcharge for operation outside normal hours	 	 	260.00	 	 	 	188.00	 	 	 	120.00	 	 	 	68.00	 
	Surcharge for night runway marking	 	 	30	%	 	 	30	%	 	 	30	%	 	 	30	%

 

This charge must be paid by any commercial aircraft
in scheduled or nonscheduled service, and also by private aviation in general, with the exception of smaller aircraft (weight
under two tons).

 

		(a)	Landing Surcharge

 

International Flights

 

Surcharge for peak hours equivalent to 50% of landing
charge. This would apply only to international landings at Jorge Newbery (Aeroparque) during the hours from 6:00 to 10:00 a.m.
and from 6:30 to 9:30 p.m. for all operations from Monday through Sunday.

 

    	 	46	 

     

    

  

Domestic Flights 

 

Surcharge for peak hours equivalent to 50% of landing
charge. This would apply only to domestic landings at Jorge Newbery (Aeroparque) during the hours from 6:00 to 10:00 a.m. and from
6:30 to 9:30 p.m. for all operations from Monday through Sunday.

 

		2.	Aircraft Parking Charge

 

International Flights

 

	US$ per ton, hour or fraction	 	Airport Category	 
	Aircraft weight (tons)	 	EZE/AEP	 	 	I	 	 	II	 	 	III	 	 	IV	 
	5-80 tons	 	 	0.28	 	 	 	0.14	 	 	 	0.10	 	 	 	0.08	 	 	 	0.08	 
	81-170 tons	 	 	0.39	 	 	 	0.16	 	 	 	0.11	 	 	 	0.09	 	 	 	—	 
	> 170 tons	 	 	0.80	 	 	 	0.18	 	 	 	0.12	 	 	 	—	 	 	 	—	 
	Minimum charge	 	 	6.00	 	 	 	4.00	 	 	 	2.00	 	 	 	2.00	 	 	 	2.00	 

 

EZE: Ministro Pistarini (Ezeiza)

AEP: Jorge Newbery (Aeroparque)

 

This charge must be paid by any commercial aircraft in scheduled
or nonscheduled service, and also by private aviation in general, with the exception of smaller aircraft (weight under two tons).

 

No free parking time applies at any airport.

 

Special charge for Ezeiza and Aeroparque for aircraft parked
on the operating platform only; for aircraft parked on a remote platform, the charge for Category I shall apply.

 

Domestic Flights

 

	US$ per ton, hour or fraction	 	Airport Category	 
	Aircraft weight (tons)	 	EZE/AEP	 	 	I	 	 	II	 	 	III	 	 	IV	 
	5-80 tons	 	 	0.20	 	 	 	0.12	 	 	 	0.10	 	 	 	0.07	 	 	 	0.05	 
	81-170 tons	 	 	0.27	 	 	 	0.15	 	 	 	0.12	 	 	 	0.10	 	 	 	—	 
	>170 tons	 	 	0.35	 	 	 	0.20	 	 	 	0.14	 	 	 	—	 	 	 	—	 
	Minimum charge	 	 	7.90	 	 	 	5.20	 	 	 	3.30	 	 	 	2.40	 	 	 	1.50	 

 

EZE: Ministro Pistarini (Ezeiza)

AEP: Jorge Newbery (Aeroparque)

 

    	 	47	 

     

    

  

This charge must be paid by any commercial aircraft in scheduled
or nonscheduled service, and also by private aviation in general, with the exception of smaller aircraft (weight under five tons).
The latter shall pay this charge only when parking time exceeds 15 days during a one-month period.

 

No free parking time applies at any airport.

 

Special charge for Ezeiza and Aeroparque for aircraft parked
on the operating platform only; for aircraft parked on a remote platform, the charge for Category I shall apply.

 

		3.	Airport Use Charge

 

International Flights

 

	Per passenger boarded	 	Airport Category	 
	 	 	I	 	 	II	 	 	III	 	 	IV	 
	Effective JAN 01 98	 	 	18.00	 	 	 	13.00	 	 	 	13.00	 	 	 	13.00	 

 

Diplomats, infants and passengers in transit are exempt from
payment of this charge.

 

Passengers on international flights between Buenos Aires and
Uruguay shall pay the equivalent of $8.00 for airport use charges.

 

For purposes of exclusion from payment
of the Airport Use Charge, infants are defined as minors under the age of three if travelling as passengers on domestic flights,
and under the age of two if travelling as passengers on international flights.

 

Domestic Flights

 

	Per passenger boarded	 	Airport Category	 
	 	 	I	 	 	II	 	 	III	 	 	IV	 
	Effective JAN 01 99	 	 	5.00	 	 	 	3.50	 	 	 	3.50	 	 	 	3.50	 
	Effective JAN 01 98	 	 	4.00	 	 	 	2.50	 	 	 	2.50	 	 	 	2.50	 

 

Infants and passengers in transit are exempt from payment of
this charge.

 

    	 	48	 

     

    

  

		4.	Security Charge

 

International Flights

 

Charge of $2.50 per international passenger boarded. Infants
and passengers in transit are exempt from payment of this charge.

 

Domestic Flights

 

Charge of $1.00 per domestic passenger boarded. Infants and
passengers in transit are exempt from payment of this charge.

 

		5.	Immigration Charge

 

An immigration charge of $3.00 per international
passenger boarded shall apply.

 

		6.	Charge for Use of Telescoping Corridors

 

	For each half hour or fraction	 	Airport	 
	 	 	Ezeiza	 	 	Others	 
	Per aircraft	 	 	50.00	 	 	 	50.00	 

 

This charge applies equally to aircraft
operating domestic and/or international flights.

 

		7.	En Route Flight Protection Charge

 

International Flights

 

	Aircraft Weight (MTOW)	 	$
	< 20 tons	 	0.03 x √P
	21-40 tons	 	0.04 x √P
	41-100 tons	 	0.05 x √P
	> 100 tons	 	0.055 x √P

 

P = Aircraft weight

 

Applicable to aircraft operating scheduled and nonscheduled
flights, per kilometer covered and ton of weight.

 

Domestic Flights

 

	Aircraft Weight (MTOW)	 	$
	Per ton	 	0.0035 x √P

 

 

P = Aircraft weight

 

Applicable to aircraft operating scheduled
and nonscheduled flights, per kilometer covered and ton of weight.

 

 

 

    	 	49	 

     

    

 

		8.	Landing Support Charge

 

International Flights

 

	< 20 tons	 	0.20 per ton
	21-40 tons	 	0.40 per ton
	41-100 tons	 	0.60 per ton
	> 100 tons	 	0.80 per ton

 

This charge is cumulative by weight range.
For example, if an aircraft weighs 318 tons, the first 20 are calculated at the rate of $0.20 each, the next 20 at $0.40 each,
the next 60 at $0.60 each and the remaining 218 tons at $0.80 each.

 

This charge is applicable only at those airports which have
the appropriate services and equipment for landing support tasks; that is, terminal radar and/or instrument approach service (ILS).

 

Domestic Flights

 

The equivalent of 50% of the charge for international flights
shall apply, the terms of application being otherwise the same.

 

    	 	50	 

     

    

  

EXHIBIT 3 – INVESTMENT PLAN

 

The Concession Holder is obligated
to meet the airport standards contained in the present Exhibit, and, where applicable, to accelerate Obligatory Minimum Investments
to satisfy air traffic demand.

 

    	 	51	 

     

    

  

EXHIBIT 4 – AIRPORT STANDARDS / QUALITY
OF SERVICE

 

		A.	Airport Standards

 

With regard to design, construction, operation, management,
maintenance, renovation, replacement, improvements, development of buildings, equipment, facilities and systems involved in airport
activity, the applicable standards shall be those prudently and reasonably established by the National Airport System Regulatory
Body (ORSNA), in accordance with the following guidelines:

 

		1.	The standards must be substantially analogous to those
established in the IATA Airport Development Reference Manual and by ICAO in accordance with the Chicago Convention of 1944 (Exhibits
2, 4, 6, 9, 10, 11, 12, 14, 15, 16, 17 and 18).

 

		2.	Other airports located outside Argentina shall be used
as a basis for comparison, according to size and type.

 

If the Concession Holder departs from the applicable
standards, it shall be required to submit a written proposal to ORSNA for the latter’s approval.

 

		3.	Equipment must meet U.S. Government equipment quality test
standards.

 

		B.	Quality of Service

 

In order to maintain Quality of Service at Group A
Airports, ORSNA shall conduct an annual survey of passengers in accordance with sound statistical practices, and of all of the
Air Carriers using Airport Group A, in or der to ascertain their opinions concerning the quality of the service provided at the
airports. This survey shall be conducted at the Concession Holder’s expense. Before any survey is conducted, the Regulatory
Body shall reach an agreement with the Concession Holder on the scoring system to be used in identifying through passenger responses
those instances in which minimum service levels were not achieved.

 

Any survey whose results are below the agreed minimum
levels shall be published in the Annual Service Report (see below).

 

The quality service survey shall
be only one of the references used in measuring this indicator, and the same shall be evaluated by ORSNA specialists or third
parties retained for the purpose, using systematic criteria.

 

ORSNA shall evaluate independently the desirability
of conducting inspection services, and shall have the right to conduct the same, at all airports managed by the Concession Holder.
No advance notice to the Concession Holder shall be required before conducting an inspection; advance notice of the aspects to
be inspected shall be at the discretion of ORSNA. Inspections must be conducted at least once a year for each airport with passenger
traffic exceeding 750,000. 

 

    	 	52	 

     

    

  

ORSNA and the Concession Holder shall hold an annual informational meeting, at which the Concession
Holder shall be notified of the results of the surveys and inspections, and of any complaints and comments received directly from
airport users. At this meeting, the Concession Holder shall inform ORSNA of its plans for improving service.

 

The minutes of this meeting shall serve as the basis
for an Annual Service Report to be prepared by ORSNA and published.

 

If, in the judgment of ORSNA, the Concession Holder is not
meeting minimum service levels, the Concession Holder shall have 90 days to remedy the deficiencies, unless a different period
is agreed upon with the Concession Holder. If the Concession Holder does not take the appropriate measures, ORSNA shall impose
the penalties provided for under the Concession Contract.

 

    	 	53	 

     

    

  

EXHIBIT 5: AIRPORTS INCLUDED IN THE
CONCESSION

EMERGING FROM THE BIDDING COMPETITION

 

	Airport
    Location	 	Name
	1.	City of Buenos Aires	 	Aeroparque
	2.	Bariloche	 	San Carlos de Bariloche
	3	Comodoro Rivadavia	 	General Enrique Mosconi
	4.	Córdoba	 	Ingeniero Aeronáutico A.L.V. Taravella
	5.	Esquel	 	Esquel
	6.	Ezeiza	 	Ministro Pistarini
	7.	Formosa	 	Formosa
	8.	General Pico	 	General Pico
	9.	Iguazú	 	Cataratas del Iguazú
	10.	La Rioja	 	Capitán Vicente A. Almonacid
	11.	Mendoza	 	El Plumerillo
	12.	Posadas	 	General José de San Martin
	13.	Río Gallegos	 	Piloto Civil N. Fernández
	14.	Río Grande	 	Río Grande
	15.	San Fernando	 	San Fernando
	16.	San Luis	 	San Luis
	17.	San Rafael	 	San Rafael
	18.	Santiago del Estero	 	Santiago del Estero
	19.	Santa Rosa	 	Santa Rosa
	20.	Viedma	 	Gobernador Castillo
	21.	Villa Reynolds	 	Villa Reynolds
	22.	Salta	 	Salta
	23.	Tucumán	 	Teniente Benjamín Matienzo
	24.	Catamarca	 	Catamarca
	25.	Paraná	 	General Justo José de Urquiza
	26.	Río Cuarto	 	Área de Material
	27.	Resistencia	 	Resistencia
	28.	Jujuy	 	Gobernador Horacio Guzmán
	29.	San Juan	 	San Juan
	30.	Malargüe	 	Malargüe
	31.	Puerto Madryn	 	El Tehuelche
	32.	Reconquista	 	Reconquista
	33.	Mar del Plata	 	Brigadier General Bartolomé de la Colina

 

    	 	54Exhibit

Exhibit 10.1

FOURTH AMENDED AND RESTATED
LIMITED PARTNERSHIP AGREEMENT
OF
HINES GLOBAL REIT II PROPERTIES LP
A DELAWARE LIMITED PARTNERSHIP
December 6, 2017
 

TABLE OF CONTENTS
	
					
	 
	 
	 
	Page

	ARTICLE 1 DEFINED TERMS
	2

	 
	 

	ARTICLE 2 PARTNERSHIP FORMATION AND IDENTIFICATION
	14

	2.1
	

	 
	Formation
	14

	2.2
	

	 
	Name, Office and Registered Agent
	14

	2.3
	

	 
	Partners
	14

	2.4
	

	 
	Term and Dissolution
	14

	2.5
	

	 
	Filing of Certificate and Perfection of Limited Partnership
	15

	2.6
	

	 
	Certificates Describing Partnership Units and Special OP Units
	15

	 
	 
	 
	 

	ARTICLE 3 BUSINESS OF THE PARTNERSHIP
	15

	 
	 
	 
	 

	ARTICLE 4 CAPITAL CONTRIBUTIONS AND ACCOUNTS
	16

	4.1
	

	 
	Capital Contributions
	16

	4.2
	

	 
	Additional Capital Contributions and Issuances of Additional Partnership Interests
	16

	4.3
	

	 
	Additional Funding
	19

	4.4
	

	 
	Capital Accounts
	19

	4.5
	

	 
	Percentage Interests
	20

	4.6
	

	 
	No Interest On Contributions
	20

	4.7
	

	 
	Return Of Capital Contributions
	20

	4.8
	

	 
	No Third Party Beneficiary
	20

	 
	 
	 
	 

	ARTICLE 5 PROFITS AND OSSES; DISTRIBUTIONS
	21

	5.1
	

	 
	Allocation of Profit and Loss
	21

	5.2
	

	 
	Distribution of Cash
	24

	5.3
	

	 
	REIT Distribution Requirements
	26

	5.4
	

	 
	No Right to Distributions in Kind
	26

	5.5
	

	 
	Limitations on Return of Capital Contributions
	26

	5.6
	

	 
	Asset Acquisition Distributions
	26

	5.7
	

	 
	Distributions Upon Liquidation
	26

	5.8
	

	 
	Substantial Economic Effect
	27

	 
	 
	 
	 

	ARTICLE 6 RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER
	27

	6.1
	

	 
	Management of the Partnership
	27

	6.2
	

	 
	Delegation of Authority
	30

	6.3
	

	 
	Indemnification and Exculpation of Indemnitees
	30

	6.4
	

	 
	Liability of the General Partner
	31

	6.5
	

	 
	Reimbursement of General Partner
	33

	6.6
	

	 
	Outside Activities
	33

	
					
	6.7
	

	 
	Employment or Retention of Affiliates
	33

	6.8
	

	 
	General Partner Participation
	34

	6.9
	

	 
	Title to Partnership Assets
	34

	6.10
	

	 
	Redemption and Exchanges of REIT Shares
	34

	6.11
	

	 
	No Duplication of Fees or Expense
	35

	 
	 
	 
	 

	ARTICLE 7 CHANGES IN GENERAL PARTNER
	35

	7.1
	

	 
	Transfer of the General Partner’s Partnership Interest
	35

	7.2
	

	 
	Admission of a Substitute or Additional General Partner
	37

	7.3
	

	 
	Effect of Bankruptcy, Withdrawal, Death or Dissolution of a General Partner
	37

	7.4
	

	 
	Removal of a General Partner
	38

	 
	 
	 
	 

	ARTICLE 8 RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS
	39

	8.1
	

	 
	Management of the Partnership
	39

	8.2
	

	 
	Power of Attorney
	39

	8.3
	

	 
	Limitation on Liability of Limited Partners
	39

	8.4
	

	 
	Ownership by Limited Partner of Corporate General Partner or Affiliate
	39

	8.5
	

	 
	Redemption Right
	40

	 
	 
	 
	 

	ARTICLE 9 TRANSFERS OF LIMITED PARTNERSHIP INTERESTS
	42

	9.1
	

	 
	Purchase for Investment
	42

	9.2
	

	 
	Restrictions on Transfer of Limited Partnership Interests
	43

	9.3
	

	 
	Admission of Substitute Limited Partner
	44

	9.4
	

	 
	Rights of Assignees of Partnership Interests
	45

	9.5
	

	 
	Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner
	45

	9.6
	

	 
	Joint Ownership of Interests
	46

	 
	 
	 
	 

	ARTICLE 10 BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS
	46

	10.1
	

	 
	Books and Records
	46

	10.2
	

	 
	Custody of Partnership Funds; Bank Accounts
	46

	10.3
	

	 
	Fiscal and Taxable Year
	47

	10.4
	

	 
	Annual Tax Information and Report
	47

	10.5
	

	 
	Tax Matters Partner; Tax Elections; Special Basis Adjustments
	47

	10.6
	

	 
	Reports to Limited Partners
	47

	10.7
	

	 
	Safe Harbor Election
	48

	 
	 
	 
	 

	ARTICLE 11 AMENDMENT OF AGREEMENT; MERGER
	48

	 
	 
	 
	 

	ARTICLE 12 GENERAL PROVISIONS
	49

	12.1
	

	 
	Notices
	49

	12.2
	

	 
	Survival of Rights
	49

	12.3
	

	 
	Additional Documents
	49

	
					
	12.4
	

	 
	Severability
	49

	12.5
	

	 
	Entire Agreement
	49

	12.6
	

	 
	Pronouns and Plurals
	49

	12.7
	

	 
	Headings
	49

	12.8
	

	 
	Counterparts
	49

	12.9
	

	 
	Governing Law
	49

EXHIBITS
EXHIBIT A — Partners, Capital Contributions and Percentage Interests
EXHIBIT B — Notice of Exercise of Redemption Right

FOURTH AMENDED AND RESTATED 
LIMITED PARTNERSHIP AGREEMENT 
 
OF 
 
HINES GLOBAL REIT II PROPERTIES LP
This Fourth Amended and Restated Limited Partnership Agreement (this “Agreement”) is entered into this 6th day of December, 2017, between Hines Global Income Trust, Inc. (f/k/a Hines Global REIT II, Inc.), as the General Partner, Hines Global REIT II Associates Limited Partnership, as a Limited Partner, and the Limited Partners set forth on Exhibit A attached hereto. Capitalized terms used herein but not otherwise defined shall have the meanings given them in Article 1.
AGREEMENT
WHEREAS, the parties hereto entered into a Limited Partnership Agreement on August 15, 2014 (the “Original Agreement”);
WHEREAS, the Original Agreement was amended and restated as provided in the Amended and Restated Limited Partnership Agreement, dated December 12, 2014 (the “First Restated Agreement”), as amended by Amendment No. 1, dated March 23, 2015;
WHEREAS, the First Restated Agreement was amended and restated as provided in the Second Amended and Restated Limited Partnership Agreement, dated August 12, 2015 (the “Second Restated Agreement”);
WHEREAS, the Second Restated Agreement was amended and restated as provided in the Third Amended and Restated Limited Partnership Agreement, dated April 28, 2017 (the “Third Restated Agreement”);
WHEREAS, the General Partner intends to qualify as a real estate investment trust under the Internal Revenue Code of 1986, as amended;
WHEREAS, Hines Global REIT II Properties LP (the “Partnership”), was formed on July 31, 2013 as a limited partnership under the laws of the State of Delaware, pursuant to a Certificate of Limited Partnership filed with the Office of the Secretary of State of the State of Delaware on July 31, 2013;
WHEREAS, the General Partner desires to conduct its current and future business primarily through the Partnership;
WHEREAS, in furtherance of the foregoing, the General Partner has contributed and desires to continue to contribute certain assets to the Partnership from time to time;

1

WHEREAS, in exchange for the General Partner’s contribution of assets, the Partnership has issued and will continue to issue Partnership Units to the General Partner in accordance with the terms of this Agreement;
WHEREAS, the Limited Partner has contributed and it and future Limited Partners may contribute certain of their property to the Partnership in exchange for Partnership Units or the Special OP Units in accordance with the terms of this Agreement;
WHEREAS, in furtherance of the Partnership’s business, the Partnership has acquired and desires to continue to acquire Properties and other assets from time to time by means of the contribution of such Properties or other assets to the Partnership by the owners thereof in exchange for Partnership Units; 
WHEREAS, the parties hereto wish to establish herein their respective rights and obligations in connection with all of the foregoing and certain other matters; and
WHEREAS, the parties hereto desire to reflect certain changes in share classification and other changes by amending and restating the Third Restated Agreement as previously amended, and entering into this Agreement.
NOW, THEREFORE, in consideration of the foregoing, of mutual covenants between the parties hereto, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree that this Fourth Amended and Restated Limited Partnership Agreement is hereby entered into and adopted in its entirety as follows:

ARTICLE 1 
 
DEFINED TERMS
The following defined terms used in this Agreement shall have the meanings specified below:
 “ACT” means the Delaware Revised Uniform Limited Partnership Act, as it may be amended from time to time.
“ADDITIONAL FUNDS” has the meaning set forth in Section 4.3 hereof.
“ADDITIONAL SECURITIES” means any additional REIT Shares (other than REIT Shares issued in connection with a redemption pursuant to Section 8.5 hereof) or rights, options, warrants or convertible or exchangeable securities containing the right to subscribe for or purchase REIT Shares, as set forth in Section 4.2(a)(ii).
“ADMINISTRATIVE EXPENSES” means (i) all administrative and operating costs and expenses incurred by the Partnership, (ii) those administrative costs and expenses of the General Partner, including any salaries or other payments to directors, officers or employees of the General Partner, and any accounting and legal expenses of the General Partner, which expenses, the Partners have agreed, are expenses of the Partnership and not the General Partner, (iii) costs 

2

and expenses relating to the formation and continuity of existence and operation of the General Partner and any Subsidiaries thereof (which Subsidiaries shall, for purposes hereof, be included within the definition of General Partner), including taxes, fees and assessments associated therewith, (iv) costs and expenses relating to any Offering and registration of securities by the General Partner and all statements, reports, fees and expenses incidental thereto, including, without limitation, underwriting discounts and selling commissions applicable to any such Offering, and any costs and expenses associated with any claims made by any holders of such securities or any underwriters or placement agents thereof, (v) costs and expenses associated with any repurchase of any securities by the General Partner, (vi) costs and expenses associated with the preparation and filing of any periodic or other reports and communications by the General Partner under federal, state or local laws or regulations, including filings with the Commission, (vii) costs and expenses associated with compliance by the General Partner with laws, rules and regulations promulgated by any regulatory body, including the Commission and any securities exchange, (viii) costs and expenses associated with any 401(k) plan, incentive plan, bonus plan or other plan providing for compensation for the employees of the General Partner, (ix) costs and expenses incurred by the General Partner relating to any issuing or redemption of Partnership Interests and (x) all other operating or administrative costs of the General Partner incurred in the ordinary course of its business on behalf of or in connection with the Partnership; provided, however, that Administrative Expenses shall not include any administrative costs and expenses incurred by the General Partner that are attributable to Properties or partnership interests in a Subsidiary Partnership that are owned by the General Partner directly.
“ADVISOR” or “ADVISORS” has the meaning set forth in the Advisory Agreement.
“ADVISORY AGREEMENT” means the agreement between the General Partner, the Partnership and the Advisor pursuant to which the Advisor will direct or perform the day-to-day business affairs of the General Partner.
“AFFILIATE” means, with respect to any Person, (i) any Person directly or indirectly owning, controlling or holding, with the power to vote, ten percent or more of the outstanding voting securities of such other Person; (ii) any Person ten percent or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with the power to vote, by such other Person; (iii) any Person directly or indirectly controlling, controlled by or under common control with such other Person; (iv) any executive officer, director, trustee or general partner of such other Person and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner.
“AGREED VALUE” means the fair market value of a Partner’s non-cash Capital Contribution as of the date of contribution as agreed to by such Partner and the General Partner. The names and addresses of the Partners, number of Partnership Units issued to each Partner, and the Agreed Value of any non-cash Capital Contributions as of the date of contribution are set forth on Exhibit A.
“AGREEMENT” has the meaning set forth in the preamble.

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“APPLICABLE PERCENTAGE” has the meaning set forth in Section 8.5(b) hereof.
“ASSET” means any Property, Mortgage, other debt or other investment (other than investments in bank accounts, money market funds or other current assets) owned by the General Partner, directly or indirectly through one or more of its Affiliates.
“ASSET ACQUISITION CONTRIBUTION” has the meaning set forth in Section 4.2(a)(ii) hereof.
“ASSET ACQUISITION DISTRIBUTION” has the meaning set forth in Section 5.6 hereof.
“ASSET ACQUISITION REDEMPTION” has the meaning set forth in Section 8.5 hereof.
“BUSINESS DAY” means any day on which the New York Stock Exchange is open for trading.
“CAPITAL ACCOUNT” has the meaning set forth in Section 4.4 hereof.
“CAPITAL CONTRIBUTION” means the total amount of cash, cash equivalents, and the Agreed Value of any Property or other asset (other than cash) contributed or agreed to be contributed, as the context requires, to the Partnership by each Partner pursuant to the terms of this Agreement. Any reference to the Capital Contribution of a Partner shall include the Capital Contribution made by a predecessor holder of the Partnership Interest of such Partner. Any reference to a Capital Contribution shall not include any amounts contributed to the Partnership which are generated from the operation or sale of a General Partner Property acquired in whole or in part with the proceeds from an Asset Acquisition Distribution, an Asset Acquisition Redemption or an Asset Acquisition Contribution.
“CARRYING VALUE” means, with respect to any asset of the Partnership, the asset’s adjusted net basis for federal income tax purposes or, in the case of any asset contributed to the Partnership, the fair market value of such asset at the time of contribution, reduced by any amounts attributable to the inclusion of liabilities in basis pursuant to Section 752 of the Code, except that the Carrying Values of all assets may, at the discretion of the General Partner, be adjusted to equal their respective fair market values (as determined by the General Partner), in accordance with the rules set forth in Regulations Section 1.704-1(b)(2)(iv)(f), as provided for in Section 4.4. In the case of any asset of the Partnership that has a Carrying Value that differs from its adjusted tax basis, the Carrying Value shall be adjusted by the amount of depreciation, depletion and amortization calculated for purposes of the allocations of net profit and net loss pursuant to Article 5 hereof rather than the amount of depreciation, depletion and amortization determined for federal income tax purposes.
“CASH AMOUNT” means an amount of cash per Partnership Unit equal to the applicable Redemption Price determined by the General Partner.

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“CERTIFICATE” means any instrument or document that is required under the laws of the State of Delaware, or any other jurisdiction in which the Partnership conducts business, to be signed and sworn to by the Partners of the Partnership (either by themselves or pursuant to the power-of-attorney granted to the General Partner in Section 8.2 hereof) and filed for recording in the appropriate public offices within the State of Delaware or such other jurisdiction to perfect or maintain the Partnership as a limited partnership, to effect the admission, withdrawal, or substitution of any Partner of the Partnership, or to protect the limited liability of the Limited Partners as limited partners under the laws of the State of Delaware or such other jurisdiction.
“CHARTER” means the Amended and Restated Articles of Incorporation of the General Partner filed with the Maryland State Department of Assessments and Taxation, as amended, restated or supplemented from time to time.
“CLASS” means a class of REIT Shares or Partnership Units, as the context may require.
“CLASS AX REIT SHARES” means the REIT Shares classified as Class AX common stock in the Charter.
“CLASS AX UNIT” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class AX Unit as provided in this Agreement.
“CLASS D CONVERSION RATE” means the fraction, the numerator of which is the NAV Per Unit for each Class D Unit and the denominator of which is the NAV Per Unit for each Class I Unit.
“CLASS D REIT SHARES” means the REIT Shares classified as Class D common stock in the Charter. 
“CLASS D UNIT” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class D Unit as provided in this Agreement.
“CLASS I REIT SHARES” means the REIT Shares classified as Class I common stock in the Charter.
“CLASS I UNIT” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class I Unit as provided in this Agreement.
“CLASS IX CONVERSION RATE” means the fraction, the numerator of which is the NAV Per Unit for each Class IX Unit and the denominator of which is the NAV Per Unit for each Class JX Unit.
“CLASS IX REIT SHARES” means the REIT Shares classified as Class IX common stock in the Charter.
“CLASS IX UNIT” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class IX Unit as provided in this Agreement.

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“CLASS JX REIT SHARES” means the REIT Shares classified as Class JX common stock in the Charter.
“CLASS JX UNIT” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class JX Unit as provided in this Agreement.
“CLASS S CONVERSION RATE” means the fraction, the numerator of which is the NAV Per Unit for each Class S Unit and the denominator of which is the NAV Per Unit for each Class I Unit.
“CLASS S REIT SHARES” means the REIT Shares classified as Class S common stock in the Charter.
“CLASS S UNIT” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class S Unit as provided in this Agreement.
“CLASS T CONVERSION RATE” means the fraction, the numerator of which is the NAV Per Unit for each Class T Unit and the denominator of which is the NAV Per Unit for each Class I Unit.
“CLASS T REIT SHARES” means the REIT Shares classified as Class T common stock in the Charter.
“CLASS T UNIT” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class T Unit as provided in this Agreement.
“CLASS TX CONVERSION RATE” means the fraction, the numerator of which is the NAV Per Unit for each Class TX Unit and the denominator of which is the NAV Per Unit for each Class AX Unit.
“CLASS TX REIT SHARES” means the REIT Shares classified as Class TX common stock in the Charter.
“CLASS TX UNIT” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class TX Unit as provided in this Agreement.
“CODE” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any particular provision of the Code shall mean that provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.
“COMMISSION” means the U.S. Securities and Exchange Commission.
“CONVERSION FACTOR” means 1.0, provided that in the event that the General Partner (i) declares or pays a dividend on its outstanding REIT Shares in REIT Shares or makes a distribution to all holders of its outstanding REIT Shares in REIT Shares, (ii) subdivides its outstanding REIT Shares, or (iii) combines its outstanding REIT Shares into a smaller number of 

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REIT Shares, the Conversion Factor shall be adjusted by multiplying the Conversion Factor by a fraction, the numerator of which shall be the number of REIT Shares issued and outstanding on the record date for such dividend, distribution, subdivision or combination (assuming for such purposes that such dividend, distribution, subdivision or combination has occurred as of such time), and the denominator of which shall be the actual number of REIT Shares (determined without the above assumption) issued and outstanding on such date and, provided further, that in the event that an entity other than an Affiliate of the General Partner shall become General Partner pursuant to any merger, consolidation or combination of the General Partner with or into another entity (the “Successor Entity”), the Conversion Factor shall be adjusted by multiplying the Conversion Factor by the number of shares of the Successor Entity into which one REIT Share is converted pursuant to such merger, consolidation or combination, determined as of the date of such merger, consolidation or combination. Any adjustment to the Conversion Factor shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event; provided, however, that if the General Partner receives a Notice of Redemption after the record date, but prior to the effective date of such dividend, distribution, subdivision or combination, the Conversion Factor shall be determined as if the General Partner had received the Notice of Redemption immediately prior to the record date for such dividend, distribution, subdivision or combination. 
“DEFAULTING LIMITED PARTNER” has the meaning set forth in Section 5.2(d) hereof.
“DIRECTOR” has the meaning set forth in the Charter.
“DISTRIBUTION AND STOCKHOLDER SERVICING FEE” shall have the meaning set forth in the Prospectus.
“EVENT OF BANKRUPTCY” as to any Person means the filing of a petition for relief as to such Person as debtor or bankrupt under the Bankruptcy Code of 1978 or similar provision of law of any jurisdiction (except if such petition is contested by such Person and has been dismissed within 90 days); insolvency or bankruptcy of such Person as finally determined by a court proceeding; filing by such Person of a petition or application to accomplish the same or for the appointment of a receiver or a trustee for such Person or a substantial part of his assets; commencement of any proceedings relating to such Person as a debtor under any other reorganization, arrangement, insolvency, adjustment of debt or liquidation law of any jurisdiction, whether now in existence or hereinafter in effect, either by such Person or by another, provided that if such proceeding is commenced by another, such Person indicates his approval of such proceeding, consents thereto or acquiesces therein, or such proceeding is contested by such Person and has not been finally dismissed within 90 days.
“EXCEPTED HOLDER LIMIT” has the meaning set forth in the Charter.
“EXCHANGED REIT SHARES” has the meaning set forth in Section 6.10(b) hereof. 

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“GENERAL PARTNER” means Hines Global Income Trust, Inc. (f/k/a Hines Global REIT II, Inc.), a Maryland corporation, and any Person who becomes a substitute or additional General Partner as provided herein, and any of their successors as General Partner.
“GENERAL PARTNER LOAN” has the meaning set forth in Section 5.2(d) hereof.
“GENERAL PARTNER PROPERTY” has the meaning set forth in Section 4.2(a)(i) hereof.
“GENERAL PARTNER PROPERTY AMOUNTS” has the meaning set forth in Section 4.2(a)(ii) hereof.
“GENERAL PARTNERSHIP INTEREST” means a Partnership Interest held by the General Partner that is a general partnership interest.
“HURDLE AMOUNT” means, for any period during a calendar year, that amount that results in a 5% annualized internal rate of return on the NAV of the Partnership Units outstanding at the beginning of the then-current calendar year and all Partnership Units issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such Partnership Units and all issuances of Partnership Units over the period. The ending NAV of the Partnership Units used in calculating the internal rate of return will be calculated before giving effect to any allocation or accrual to the Performance Allocation and any applicable distribution and stockholder servicing fee expenses, provided that the calculation of the Hurdle Amount for any period will exclude any Partnership Units repurchased during such period, which Partnership Units will be subject to the Performance Allocation upon such repurchase as described in Section 5.2(b) hereof.
“INDEMNITEE” means the General Partner, the Advisor or any of its Affiliates or any employee, director or Affiliate of the General Partner or the Partnership.
“INDEPENDENT DIRECTORS” has the meaning set forth in the Charter.
“LIMITED PARTNER” means any Person named as a Limited Partner on Exhibit A attached hereto (including without limitation the Special OP Unitholder), and any Person who becomes a Substitute Limited Partner, in such Person’s capacity as a Limited Partner in the Partnership.
“LIMITED PARTNERSHIP INTEREST” means the ownership interest of a Limited Partner in the Partnership at any particular time, including the right of such Limited Partner to any and all benefits to which such Limited Partner may be entitled as provided in this Agreement and in the Act, together with the obligations of such Limited Partner to comply with all the provisions of this Agreement and of such Act.
“LIQUIDITY EVENT” shall include, but shall not be limited to, (i) a Listing, (ii) a sale, merger or other transaction in which the holders of REIT Shares either receive, or have the option to receive, cash, securities redeemable for cash, and/or securities of a publicly traded 

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company, and (iii) the sale of all or substantially all of the Assets where holders of REIT Shares either receive, or have the option to receive, cash or other consideration.
“LISTING” means the listing of the REIT Shares on a national securities exchange. Upon such Listing, the REIT Shares shall be deemed “Listed.”
“LOSS CARRYFORWARD AMOUNT” shall initially equal zero and shall cumulatively increase by the absolute value of any negative annual Total Return and decrease by any positive annual Total Return, provided that the Loss Carryforward Amount shall at no time be less than zero and provided further that the calculation of the Loss Carryforward Amount will exclude the Total Return related to any Partnership Units repurchased during such year, which Partnership Units will be subject to the Performance Allocation upon such repurchase as described in Section 5.2(b).
“MORTGAGE” means, in connection with mortgage financing provided, invested in, participated in or purchased, all of the notes, deeds of trust, security interests or other evidences of indebtedness or obligations, which are secured or collateralized by Real Property owned by the borrowers under such notes, deeds of trust, security interests or other evidences of indebtedness or obligations.
“NAV” means net asset value, calculated pursuant to the Valuation Policy.
“NAV PER UNIT” means, for each Class of Partnership Unit, the NAV per unit of such Class of Partnership Unit, determined as of the last business day of each month as described in the Prospectus. 
“NOTICE OF REDEMPTION” means the Notice of Exercise of Redemption Right substantially in the form attached as Exhibit B hereto.
“OFFER” has the meaning set forth in Section 7.1(c)(ii) hereof. 
“OFFERING” means the offer and sale of REIT Shares to the public.
 “OP UNITHOLDERS” means all holders of Partnership Interests other than the Special OP Unitholder in its capacity as holder of the Special OP Units.
“ORIGINAL LIMITED PARTNER” means the Limited Partner designated as “Original Limited Partner” on Exhibit A hereto.
“OWNERSHIP LIMIT” has the meaning set forth in the Charter.
“PARTNER” means any General Partner or Limited Partner.
“PARTNER NONRECOURSE DEBT MINIMUM GAIN” has the meaning set forth in Regulations Section 1.704-2(i). A Partner’s share of Partner Nonrecourse Debt Minimum Gain shall be determined in accordance with Regulations Section 1.704-2(i)(5).

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“PARTNERSHIP” has the meaning set forth in the recitals.
“PARTNERSHIP INTEREST” means an ownership interest in the Partnership held by either a Limited Partner or the 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.
“PARTNERSHIP LOAN” has the meaning set forth in Section 5.2(d) hereof.
“PARTNERSHIP MINIMUM GAIN” has the meaning set forth in Regulations Section 1.704-2(d). In accordance with Regulations Section 1.704-2(d), the amount of Partnership Minimum Gain is determined by first computing, for each Partnership nonrecourse liability, any gain the Partnership would realize if it disposed of the property subject to that liability for no consideration other than full satisfaction of the liability, and then aggregating the separately computed gains. A Partner’s share of Partnership Minimum Gain shall be determined in accordance with Regulations Section 1.704-2(g)(1).
“PARTNERSHIP RECORD DATE” means the record date established by the General Partner for the distribution of cash pursuant to Section 5.2 hereof, which record date shall be the same as the record date established by the General Partner for a distribution to its shareholders of some or all of its portion of such distribution.
“PARTNERSHIP UNIT” means a fractional, undivided share of the Partnership Interests of all Partners issued hereunder, including Class AX Units, Class D Units, Class I Units, Class IX Units, Class JX Units, Class S Units, Class T Units and Class TX Units but excluding the Partnership Interests represented by Special OP Units. The allocation of Partnership Units of each Class among the Partners shall be as set forth on Exhibit A, as such Exhibit may be amended from time to time.
“PARTNERSHIP REPRESENTATIVE” has the meaning set forth in Section 10.5(a) hereof.
“PERCENTAGE INTEREST” means the percentage ownership interest in the Partnership of each Partner, as determined by dividing the Partnership Units owned by a Partner by the total number of Partnership Units then outstanding. The Percentage Interest of each Partner shall be as set forth on Exhibit A, as such Exhibit may be amended from time to time.
“PERFORMANCE ALLOCATION” has the meaning set forth in Section 5.2(c) hereof.
“PERSON” means an individual, corporation, partnership, limited liability company, estate, trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended from time to time, and a group to which an Excepted Holder Limit applies.

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“PROPERTY” means, as the context requires, all or a portion of each Real Property acquired by the General Partner, directly or indirectly through joint venture or co-ownership arrangements or other partnership or investment entities.
“PROSPECTUS” means the same as that term is defined in Section 2(10) of the Securities Act, including a preliminary prospectus, an offering circular as described in Rule 256 of the general rules and regulations under the Securities Act, or, in the case of an intrastate offering, any document by whatever name known, utilized for the purpose of offering and selling REIT Shares to the public.
“REAL PROPERTY” means land, rights in land (including leasehold interests), and any buildings, structures, improvements, furnishings, fixtures and equipment located on or used in connection with land and rights or interests in land.
“RECEIVED REIT SHARES” has the meaning set forth in Section 6.10(b) hereof.
“REDEMPTION” has the meaning set forth in Section 8.5(a) hereof.
“REDEMPTION PRICE” means the Value of the REIT Shares Amount as of the end of the Specified Redemption Date.
“REDEMPTION RIGHT” has the meaning set forth in Section 8.5(a) hereof.
“REGULATIONS” means the Federal income tax regulations promulgated under the Code, as amended and as hereafter amended from time to time. Reference to any particular provision of the Regulations shall mean that provision of the Regulations on the date hereof and any successor provision of the Regulations.
“REGULATORY ALLOCATIONS” has the meaning set forth in Section 5.1(j) hereof.
“REIT” means a corporation, trust, association or other legal entity (other than a real estate syndication) that qualifies as a real estate investment trust under Sections 856 through 860 of the Code, and any successor or other provisions of the Code relating to real estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations promulgated thereunder.
“REIT SHARE” means a common share of beneficial interest in the General Partner (or successor entity, as the case may be), including Class AX REIT Shares, Class D REIT Shares, Class I REIT Shares, Class IX REIT Shares, Class JX REIT Shares, Class S REIT Shares, Class T REIT Shares and Class TX REIT Shares.
“REIT SHARES AMOUNT” means, with respect to Tendered Units of a Class, a number of REIT Shares of the corresponding REIT Share Class equal to the product of the number of Partnership Units of such Class offered for exchange by a Tendering Party, multiplied by the Conversion Factor, as adjusted to and including the Specified Redemption Date; provided that in the event the General Partner issues to all holders of REIT Shares rights, options, warrants or convertible or exchangeable securities entitling the shareholders to subscribe for or purchase 

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REIT Shares of such Class, or any other securities or property (collectively, the “rights”), and the rights have not expired at the Specified Redemption Date, then the REIT Shares Amount shall also include the rights issuable to a holder of the REIT Shares.
“RELATED PARTY” means, with respect to any Person, any other Person whose ownership of shares of the General Partner’s capital stock would be attributed to the first such Person under Code Section 544 (as modified by Code Section 856(h)(1)(B)).
“SAFE HARBOR” means, the election described in the Safe Harbor Regulation, pursuant to which a partnership and all of its partners may elect to treat the fair market value of a partnership interest that is transferred in connection with the performance of services as being equal to the liquidation value of that interest.
“SAFE HARBOR ELECTION” means the election by a partnership and its partners to apply the Safe Harbor, as described in the Safe Harbor Regulation and Internal Revenue Service Notice 2005-43, issued on May 19, 2005.
“SAFE HARBOR REGULATION” means Proposed Treasury Regulations Section 1.83-3(l) issued on May 19, 2005.
“SECURITIES ACT” means the Securities Act of 1933, as amended from time to time, or any successor statute thereto. Reference to any provision of the Securities Act shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.
“SERVICE” means the United States Internal Revenue Service.
“SPECIAL OP UNITS” means units of a series of Partnership Interests, designated as Special OP Units, issued pursuant to Section 4.1. The holder of the Special OP Units shall have the same rights and preferences as a holder of a Partnership Unit under this Agreement that is a Limited Partner except as otherwise set forth in this Agreement. 
“SPECIAL OP UNITHOLDER” means Hines Global REIT II Associates Limited Partnership.
“SPECIFIED REDEMPTION DATE” means the first business day of the month that is at least sixty (60) Business Days after the receipt by the General Partner of the Notice of Redemption.
“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.
“SUBSIDIARY PARTNERSHIP” means any partnership of which the partnership interests therein are owned by the General Partner or a direct or indirect subsidiary of the General Partner.

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“SUBSTITUTE LIMITED PARTNER” means any Person admitted to the Partnership as a Limited Partner pursuant to Section 9.3 hereof.
“SUCCESSOR ENTITY” has the meaning set forth in the definition of “Conversion Factor” contained herein.
“SURVIVOR” has the meaning set forth in Section 7.1(d) hereof.
“TAX MATTERS PARTNER” has the meaning set forth in Section 10.5(a) hereof.
“TENDERED UNITS” has the meaning set forth in Section 8.5(a) hereof.
“TENDERING PARTY” has the meaning set forth in Section 8.5(a) hereof.
“TOTAL RETURN” means, for any period since the end of the prior calendar year the sum of: (i) all distributions accrued or paid (without duplication) on the Partnership Units outstanding at the end of such period since the beginning of the then-current calendar year plus (ii) the change in aggregate NAV of such Partnership Units since the beginning of such year, before giving effect to (x) changes resulting solely from the proceeds of issuances of Partnership Units, (y) any allocation or accrual to the Performance Allocation and (z) any applicable distribution and stockholder servicing fee expenses (including any payments made to the General Partner for payment of such expenses). For the avoidance of doubt, the calculation of Total Return will (i) include any appreciation or depreciation in the NAV of Partnership Units issued during the then-current calendar year but (ii) exclude the proceeds from the initial issuance of such Partnership Units. In addition, with respect to a year in which a Liquidity Event occurs, the change in the aggregate NAV of the Partnership Units outstanding will be deemed to equal the difference between the aggregate NAV of such Partnership Units at the beginning of the year and the aggregate value of such Partnership Units determined in connection with such Liquidity Event.
“TRANSACTION” has the meaning set forth in Section 7.1(c) hereof.
“TRANSFER” has the meaning set forth in Section 9.2(a) hereof.
“VALUE” means, for any Class of REIT Shares: (i) if such Class of REIT Shares are Listed, the average closing price per share for the previous 30 trading days, or (ii) if such Class of REIT Shares are not Listed, the NAV per REIT Share for REIT Shares of that Class.
“VALUATION POLICY” means the valuation policy adopted by the valuation committee of the board of directors of the General Partner, as amended from time to time.

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ARTICLE 2 
 
PARTNERSHIP FORMATION AND IDENTIFICATION

2.1    Formation. The Partnership was formed as a limited partnership pursuant to the Act and all other pertinent laws of the State of Delaware, for the purposes and upon the terms and conditions set forth in this Agreement.

2.2    Name, Office and Registered Agent. The name of the Partnership is Hines Global REIT II Properties LP, a Delaware limited partnership. The specified office and place of business of the Partnership shall be 2800 Post Oak Blvd., Suite 5000 Houston, TX 77056-6118. The General Partner may at any time change the location of such office, provided the General Partner gives notice to the Partners of any such change. The name and address of the Partnership’s registered agent is The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware 19801. The sole duty of the registered agent as such is to forward to the Partnership any notice that is served on him as registered agent.

2.3    Partners. 
(a)    The General Partner of the Partnership is Hines Global Income Trust, Inc., a Maryland corporation. Its principal place of business is the same as that of the Partnership.
(b)    The Limited Partners are those Persons identified as Limited Partners on Exhibit A hereto, as amended from time to time.

2.4    Term and Dissolution. 
(a)    The term of the Partnership shall continue in full force and effect until the first to occur of any of the following events:
(i)    The occurrence of an Event of Bankruptcy as to a General Partner or the dissolution, removal or withdrawal of a General Partner unless the business of the Partnership is continued pursuant to Section 7.3(b) hereof;
(ii)    The passage of ninety (90) days after the sale or other disposition of all or substantially all of the assets of the Partnership (provided that if the Partnership receives an installment obligation as consideration for such sale or other disposition, the Partnership shall continue, unless sooner dissolved under the provisions of this Agreement, until such time as such note or notes are paid in full); or
(iii)    The election by the General Partner that the Partnership should be dissolved.
(b)    Upon dissolution of the Partnership (unless the business of the Partnership is continued pursuant to Section 7.3(b) hereof), the General Partner (or its trustee, receiver, successor or legal representative) shall amend or cancel any Certificate(s) and liquidate the Partnership’s assets and apply and distribute the proceeds thereof in accordance with Section 

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5.7 hereof. Notwithstanding the foregoing, the liquidating General Partner may either (i) defer liquidation of, or withhold from distribution for a reasonable time, any assets of the Partnership (including those necessary to satisfy the Partnership’s debts and obligations), or (ii) distribute the assets to the Partners in kind.

2.5    Filing of Certificate and Perfection of Limited Partnership. The General Partner shall execute, acknowledge, record and file at the expense of the Partnership, any and all amendments to the Certificate(s) and all requisite fictitious name statements and notices in such places and jurisdictions as may be necessary to cause the Partnership to be treated as a limited partnership under, and otherwise to comply with, the laws of each state or other jurisdiction in which the Partnership conducts business.

2.6    Certificates Describing Partnership Units and Special OP Units. At the request of a Limited Partner, the General Partner, at its option, may issue (but in no way is obligated to issue) a certificate summarizing the terms of such Limited Partner’s interest in the Partnership, including the number of Partnership Units (and, if applicable the Special OP Units), as of the date of such certificate. Any such certificate (i) shall be in form and substance as approved by the General Partner, (ii) shall not be negotiable and (iii) shall bear a legend to the following effect:
“This certificate is not negotiable. The Partnership Units and Special OP Units represented by this certificate are governed by and transferable only in accordance with the provisions of the Fourth Amended and Restated Limited Partnership Agreement of Hines Global REIT II Properties LP, as amended from time to time.”

ARTICLE 3 
 
BUSINESS OF THE PARTNERSHIP
The purpose and nature of the business to be conducted by the Partnership is (i) to conduct any business that may be lawfully conducted by a limited partnership organized pursuant to the Act, provided, however, that such business shall be limited to and conducted in such a manner as to permit the General Partner at all times to qualify as a REIT, unless the General Partner otherwise ceases to qualify as a REIT, and in a manner such that the General Partner will not be subject to any taxes under Section 857 or 4981 of the Code, (ii) to enter into any partnership, joint venture, co-ownership or other similar arrangement to engage in any of the foregoing or the ownership of interests in any entity engaged in any of the foregoing and (iii) to do anything necessary or incidental to the foregoing. In connection with the foregoing, and without limiting the General Partner’s right in its sole and absolute discretion to qualify or cease qualifying as a REIT, the Partners acknowledge that the General Partner intends to qualify as a REIT for federal income tax purposes and upon such qualification the avoidance of income and excise taxes on the General Partner inures to the benefit of all the Partners and not solely to the General Partner. Notwithstanding the foregoing, the Limited Partners agree that the General Partner may terminate its status as a REIT under the Code at any time to the full extent permitted under the Charter. The General Partner on behalf of the Partnership shall also be empowered to do any and all acts and things necessary or prudent to ensure that the Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Code.

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ARTICLE 4 
 
CAPITAL CONTRIBUTIONS AND ACCOUNTS

4.1    Capital Contributions. The General Partner and the initial Limited Partners have made capital contributions to the Partnership in exchange for the Partnership Interests set forth opposite their names on Exhibit A, as such Exhibit may be amended from time to time. The Partners shall own Partnership Units of the Class or series and in the amounts set forth in Exhibit A and shall have a Percentage Interest in the Partnership as set forth in Exhibit A, which Percentage Interest shall be adjusted in Exhibit A from time to time by the General Partner to the extent necessary to reflect accurately exchanges, Redemptions, Capital Contributions, the issuance of additional Partnership Units or similar events having an effect on a Partner’s Percentage Interest.  

4.2    Additional Capital Contributions and Issuances of Additional Partnership Interests. Except as provided in this Section 4.2 or in Section 4.3, the Partners shall have no right or obligation to make any additional Capital Contributions or loans to the Partnership. The General Partner may contribute additional capital to the Partnership, from time to time, and receive additional Partnership Interests in respect thereof, in the manner contemplated in this Section 4.2. 
(a)    Issuances of Additional Partnership Interests. 
(i)     General. The General Partner is hereby authorized to cause the Partnership to issue such 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 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 Partners, including but not limited to Partnership Units issued in connection with the issuance of REIT Shares or other interests in the General Partner, Class I Units issued to the Special OP Unitholder in lieu of payments or distributions of the Performance Allocation, Class I Units issued to the Advisor in lieu of cash asset management fees pursuant to the Advisory Agreement and Partnership Units in connection with acquisitions of properties. No additional Partnership Interests shall be issued in connection with any amounts paid to the Partnership which are generated from the operation or sale of a property or interest therein acquired either directly or indirectly by the General Partner in whole or in part with the proceeds from an Asset Acquisition Distribution, an Asset Acquisition Redemption or an Asset Acquisition Contribution (“General Partner Property”). The Partners agree that solely for Federal income tax purposes, the General Partner Property shall be treated as being owned by the Partnership. In applying the preceding sentence, and for purposes of this Agreement, in the case of property that consists of equity interests in an entity which is classified for Federal income tax purposes as a corporation (or which would be classified as a corporation for Federal income tax purposes but for the application of Section 856(i) of the Code), other than a corporation for which a valid election is in effect to be treated as a taxable REIT subsidiary of the General Partner within the meaning of Section 856(l) of the Code, the assets of such entity (and, for the avoidance of doubt, not the equity interests in the entity), together with liabilities associated with such assets, shall be General Partner Property, and the General Partner shall cause such entity to pay General Partner Property Amounts to the Partnership in the manner 

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provided in Section 4.2(a)(ii). Any additional Partnership Interests issued may be issued in one or more Classes (including the Classes specified in this Agreement or any other Classes), or one or more series of any of such Classes, with such designations, preferences and relative, participating, optional or other special rights, powers and duties, including rights, powers and duties senior to Limited Partnership Interests, all as shall be determined by the General Partner in its sole and absolute discretion and without the approval of any Limited Partner, subject to Delaware law, including, without limitation, (i) the allocations of items of Partnership income, gain, loss, deduction and credit to each such Class or series of Partnership Interests; (ii) the right of each such Class or series of Partnership Interests to share in Partnership distributions; and (iii) the rights of each such Class or series of Partnership Interests upon dissolution and liquidation of the Partnership; provided, however, that no additional Partnership Interests shall be issued to the General Partner unless:
(1)    (A) the additional Partnership Interests are issued in connection with an issuance of REIT Shares or other interests in the General Partner, which shares or interests have designations, preferences and other rights, all such that the economic interests are substantially similar to the designations, preferences and other rights of the additional Partnership Interests issued to the General Partner by the Partnership in accordance with this Section 4.2 (without limiting the foregoing, for example, the Partnership shall issue Partnership Interests consisting of Class AX Units to the General Partner in connection with the issuance of Class AX REIT Shares, shall issue Partnership Interests consisting of Class D Units to the General Partner in connection with the issuance of Class D REIT Shares, shall issue Partnership Interests consisting of Class I Units to the General Partner in connection with the issuance of Class I REIT Shares, shall issue Partnership Interests consisting of Class IX Units to the General Partner in connection with the issuance of Class IX REIT Shares, shall issue Partnership Interests consisting of Class JX Units to the General Partner in connection with the issuance of Class JX REIT Shares, shall issue Partnership Interests consisting of Class S Units to the General Partner in connection with the issuance of Class S REIT Shares, shall issue Partnership Interests consisting of Class T Units to the General Partner in connection with the issuance of Class T REIT Shares, and shall issue Partnership Interests consisting of Class TX Units to the General Partner in connection with the issuance of Class TX REIT Shares) and (B) the General Partner shall make a Capital Contribution to the Partnership in an amount equal to the proceeds raised in connection with the issuance of such shares of stock of or other interests in the General Partner;
(2)    the additional Partnership Interests are issued in exchange for property owned by the General Partner with a fair market value, as determined by the General Partner, in good faith, equal to the value of the Partnership Interests; or
(3)    the additional Partnership Interests are issued to all Partners holding Partnership Units in proportion to their respective Percentage Interests. 
Without limiting the foregoing, the General Partner is expressly authorized to cause the Partnership to issue Partnership Units for less than fair market value, so long as the General Partner concludes in good faith that such issuance is in the best interests of the General Partner and the Partnership.

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(ii)    Upon Issuance of Additional Securities. The General Partner shall not issue any Additional Securities other than to all holders of REIT Shares, unless (A) the General Partner shall cause the Partnership to issue to the General Partner, as the General Partner may designate, Partnership Interests or rights, options, warrants or convertible or exchangeable securities of the Partnership having designations, preferences and other rights, all such that the economic interests are substantially similar to those of the Additional Securities, and (B) the General Partner contributes the proceeds from the issuance of such Additional Securities and from any exercise of rights contained in such Additional Securities, directly and through the General Partner, to the Partnership (without limiting the foregoing, for example, the Partnership shall issue Limited Partnership Interests consisting of Class AX Units to the General Partner in connection with the issuance of Class AX REIT Shares, shall issue Partnership Interests consisting of Class D Units to the General Partner in connection with the issuance of Class D REIT Shares, shall issue Partnership Interests consisting of Class I Units to the General Partner in connection with the issuance of Class I REIT Shares, shall issue Partnership Interests consisting of Class IX Units to the General Partner in connection with the issuance of Class IX REIT Shares, shall issue Partnership Interests consisting of Class JX Units to the General Partner in connection with the issuance of Class JX REIT Shares, shall issue Partnership Interests consisting of Class S Units to the General Partner in connection with the issuance of Class S REIT Shares, shall issue Partnership Interests consisting of Class T Units to the General Partner in connection with the issuance of Class T REIT Shares and shall issue Limited Partnership Interests consisting of Class TX Units to the General Partner in connection with the issuance of Class TX REIT Shares); provided, however, that the General Partner is allowed to issue Additional Securities and use the proceeds from such issuance (“Asset Acquisition Contributions”) in connection with an acquisition of a General Partner Property and any Asset Acquisition Contributions are not required to be contributed to the Partnership. As indicated above, the Partners agree that for Federal income tax purposes, General Partner Property (and all associated items of income, gain, loss and deduction) will be treated as being owned by the Partnership and, as such, the General Partner agrees to transfer to the Partnership any amounts it receives from the operation and/or disposition of General Partner Property (“General Partner Property Amounts”) and all General Partner Property Amounts shall then be paid by the Partnership in accordance with Section 5.2(b) of this Agreement. Without limiting the foregoing, the General Partner is expressly authorized to issue Additional Securities for less than fair market value, and to cause the Partnership to issue to the General Partner corresponding Partnership Interests, so long as (x) the General Partner concludes in good faith that such issuance is in the best interests of the General Partner and the Partnership, including without limitation, the issuance of REIT Shares and corresponding Partnership Units pursuant to an employee share purchase plan providing for employee purchases of REIT Shares at a discount from fair market value or employee stock options that have an exercise price that is less than the fair market value of the REIT Shares, either at the time of issuance or at the time of exercise, and (y) the General Partner contributes all proceeds from such issuance to the Partnership. 
(b)    Certain Deemed Contributions of Proceeds of Issuance of REIT Shares. Except as otherwise permitted hereunder, in connection with any and all issuances of REIT Shares, the General Partner shall make Capital Contributions to the Partnership of the proceeds therefrom, provided that if the proceeds actually received and contributed 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 

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or incurred in connection with such issuance, then the General Partner shall be deemed to have made Capital Contributions to the Partnership in the aggregate amount of the gross proceeds of such issuance and the Partnership shall be deemed simultaneously to have paid such offering expenses in accordance with Section 6.5 hereof and in connection with the required issuance of additional Partnership Units to the General Partner for such Capital Contributions pursuant to Section 4.2(a) hereof, and any such expenses shall be allocable solely to the Class of Partnership Units issued to the General Partner at such time.

4.3    Additional Funding. If the General Partner determines that it is in the best interests of the Partnership to provide for additional Partnership funds (“Additional Funds”) for any Partnership purpose, the General Partner may (i) cause the Partnership to obtain such funds from outside borrowings, or (ii) elect to have the General Partner or any of its Affiliates provide such Additional Funds to the Partnership through loans or otherwise, provided, however, that the Partnership may not borrow money from its Affiliates, unless a majority of the Directors of the General Partner (including a majority of Independent Directors) not otherwise interested in such transaction approve the transaction as being fair, competitive, and commercially reasonable and no less favorable to the Partnership than comparable loans between unaffiliated parties.

4.4    Capital Accounts. 
(a)    A separate capital account (each a “Capital Account”) shall be maintained for each Partner in accordance with the rules of Treasury Regulations Section 1.704-1(b)(2)(iv), and this Section 4.4 and Article 5 shall be interpreted and applied in a manner consistent therewith. Whenever the Partnership would be permitted to adjust the Capital Accounts of the Partners pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(f) to reflect revaluations of Partnership property, the Partnership may so adjust the Capital Accounts of the Partners. In the event that the Capital Accounts of the Partners are adjusted pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(f) to reflect revaluations of Partnership property, (i) the Capital Accounts of the Partners shall be adjusted in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain or loss, as computed for book purposes, with respect to such property, (ii) the Partners’ distributive shares of depreciation, depletion, amortization and gain or loss, as computed for tax purposes, with respect to such property shall be determined so as to take account of the variation between the adjusted tax basis and book value of such property in the same manner as under Code Section 704(c), and (iii) the amount of upward and/or downward adjustments to the book value of the Partnership property shall be treated as income, gain, deduction and/or loss for purposes of applying the allocation provisions of Article 5. In the event that Code Section 704(c) applies to Partnership property, the Capital Accounts of the Partners shall be adjusted in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain and loss, as computed for book purposes, with respect to such property.
(b)    Notwithstanding any provision herein to the contrary, any fees, expenses or other costs of the Partnership that are required to be paid by the General Partner without reimbursement and that are required to be treated as capital contributions to the Partnership for 

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purposes of the Treasury Regulations promulgated under Section 704(b) of the Code, shall be added to the balance of the General Partner’s Capital Account.

4.5    Percentage Interests. If the number of outstanding Partnership Units increases or decreases during a taxable year, each Partner’s Percentage Interest shall be adjusted by the General Partner effective as of the effective date of each such increase or decrease. If the Partners’ Percentage Interests are adjusted pursuant to this Section 4.5, the net profits and net losses (and items thereof) for the taxable year in which the adjustment occurs shall be allocated between the part of the year ending on the day when the Partnership’s property is revalued by the General Partner and the part of the year beginning on the following day either (i) as if the taxable year had ended on the date of the adjustment or (ii) based on the number of days in each part. The General Partner, in its sole and absolute discretion, shall determine which method shall be used to allocate net profits and net losses (or items thereof) for the taxable year in which the adjustment occurs. The allocation of net profits and net losses (or items thereof) for the earlier part of the year shall be based on the Percentage Interests before adjustment, and the allocation of net profits and net losses (or items thereof) for the later part shall be based on the adjusted Percentage Interests.

4.6    No Interest On Contributions. No Partner shall be entitled to interest on its Capital Contribution.

4.7    Return Of Capital Contributions. No Partner shall be entitled to withdraw any part of its Capital Contribution or its Capital Account or to receive any distribution from the Partnership, except as specifically provided in this Agreement. Except as otherwise provided herein, there shall be no obligation to return to any Partner or withdrawn Partner any part of such Partner’s Capital Contribution for so long as the Partnership continues in existence.

4.8    No Third Party Beneficiary. No creditor or other third party having dealings with the Partnership shall have the right to enforce the right or obligation of any Partner to make Capital Contributions or loans or to pursue any other right or remedy hereunder or at law or in equity, it being understood and agreed that the provisions of this Agreement shall be solely for the benefit of, and may be enforced solely by, the parties hereto and their respective successors and assigns. 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 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 of any of the Partners. In addition, it is the intent of the parties hereto that no distribution to any Limited Partner shall be deemed a return of money or other property in violation of the Act. However, if any court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Limited Partner is obligated to return such money or property, such obligation shall be the obligation of such Limited Partner and not of the General Partner. Without limiting the generality of the foregoing, a deficit Capital Account of a Partner shall not be deemed to be a liability of such Partner nor an asset or property of the Partnership.

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ARTICLE 5 
 
PROFITS AND LOSSES; DISTRIBUTIONS

5.1    Allocation of Profit and Loss.
(a)    Intentionally Omitted.
(b)    General Partner Gross Income Allocation. There shall be specially allocated to the General Partner an amount of (i) first, items of Partnership income and (ii) second, items of Partnership gain during each fiscal year or other applicable period, before any other allocations are made hereunder, in an amount equal to the excess, if any, of (A) the cumulative distributions made to the General Partner under Section 6.5(b) hereof, other than distributions which would properly be treated as “guaranteed payments” or which are attributable to the reimbursement of expenses which would properly be deductible by the Partnership, over (B) the cumulative allocations of Partnership income and gain to the General Partner under this Section 5.1(b).
(c)    General Allocations. Items of income, gain, credit, loss and deduction of the Partnership for each fiscal year or other applicable period, other than any such items allocated under Section 5.1(b), shall be allocated among the Partners in a manner that will, as nearly as possible (after giving effect to the allocations under Sections 5.1(b), 5.1(d), 5.1(e), 5.1(f), 5.1(h), 5.1(i), 5.1(j) and 5.3) cause the Capital Account balance of each Partner at the end of such fiscal year or other applicable period to equal (i) the amount of the hypothetical distribution that such Partner would receive if the Partnership were liquidated on the last day of such period and all assets of the Partnership, including cash, were sold for cash equal to their Carrying Value, taking into account any adjustments thereto for such period, all liabilities of the Partnership were satisfied in full in cash according to their terms (limited with respect to each nonrecourse liability to the Carrying Value of the assets securing such liability) and the remaining cash proceeds (after satisfaction of such liabilities) were distributed in full pursuant to Section 5.2, minus (ii) the sum of such Partner’s share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain and the amount, if any and without duplication, that the Partner would be obligated to contribute to the capital of the Partnership, all computed as of the date of the hypothetical sale of assets. Notwithstanding the foregoing, the General Partner may make such allocations as it deems reasonably necessary to give economic effect to the provisions of this Agreement, taking into account facts and circumstances as the General Partner deems reasonably necessary for this purpose.
(d)    Nonrecourse Deductions; Minimum Gain Chargeback. Notwithstanding any provision to the contrary, (i) any expense of the Partnership that is a “nonrecourse deduction” within the meaning of Regulations Section 1.704-2(b)(1) shall be allocated in accordance with the Partners’ respective Percentage Interests, (ii) any expense of the Partnership that is a “partner nonrecourse deduction” within the meaning of Regulations Section 1.704-2(i)(2) shall be allocated to the Partner that bears the “economic risk of loss” with respect to the liability to which such deductions are attributable in accordance with Regulations Section 1.704-2(i)(1), (iii) if there is a net decrease in Partnership Minimum Gain within the meaning of Regulations Section 1.704-2(f)(1) for any Partnership taxable year, then, subject to the exceptions set forth in Regulations Section 1.704-2(f)(2),(3), (4) and (5), items of gain and income shall be allocated among the Partners in accordance 

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with Regulations Section 1.704-2(f) and the ordering rules contained in Regulations Section 1.704-2(j), and (iv) if there is a net decrease in Partner Nonrecourse Debt Minimum Gain within the meaning of Regulations Section 1.704-2(i)(4) for any Partnership taxable year, then, subject to the exceptions set forth in Regulations Section 1.704-(2)(g), items of gain and income shall be allocated among the Partners in accordance with Regulations Section 1.704-2(i)(4) and the ordering rules contained in Regulations Section 1.704-2(j). A Partner’s “interest in partnership profits” for purposes of determining its share of the excess nonrecourse liabilities of the Partnership within the meaning of Regulations Section 1.752-3(a)(3) shall be such Partner’s Percentage Interest.
(e)    Qualified Income Offset. If a Partner unexpectedly receives in any taxable year an adjustment, allocation, or distribution described in subparagraphs (4), (5), or (6) of Regulations Section 1.704-1(b)(2)(ii)(d) that causes or increases a deficit balance in such Partner’s Capital Account that exceeds the sum of such Partner’s shares of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain, as determined in accordance with Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), such Partner shall be allocated specially for such taxable year (and, if necessary, later taxable years) items of income and gain in an amount and manner sufficient to eliminate such deficit Capital Account balance as quickly as possible as provided in Regulations Section 1.704-1(b)(2)(ii)(d). This Section 5.1(e) is intended to constitute a “qualified income offset” under Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted consistently therewith. After the occurrence of an allocation of income or gain to a Partner in accordance with this Section 5.1(e), to the extent permitted by Regulations Section 1.704-1(b), items of expense or loss shall be allocated to such Partner in an amount necessary to offset the income or gain previously allocated to such Partner under this Section 5.1(e).
(f)    Capital Account Deficits. Loss (or items of loss) shall not be allocated to a Limited Partner to the extent that such allocation would cause or increase a deficit in such Partner’s Capital Account at the end of any fiscal year (after reduction to reflect the items described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the sum of such Partner’s shares of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain, as determined in accordance with Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5). Any net loss in excess of that limitation shall be allocated to the General Partner. After the occurrence of an allocation of net loss to the General Partner in accordance with this Section 5.1(f), to the extent permitted by Regulations Section 1.704-1(b), profit shall be allocated to such Partner in an amount necessary to offset the net loss previously allocated to such Partner under this Section 5.1(f).
(g)    Allocations Between Transferor and Transferee. If a Partner transfers any part or all of its Partnership Interest, the distributive shares of the various items of profit and loss allocable among the Partners during such fiscal year of the Partnership shall be allocated between the transferor and the transferee Partner either (i) as if the Partnership’s fiscal year had ended on the date of the transfer, or (ii) based on the number of days of such fiscal year that each was a Partner without regard to the results of Partnership activities in the respective portions of such fiscal year in which the transferor and the transferee were Partners. The General Partner, in its sole and absolute discretion, shall determine which method shall be used to allocate the distributive shares of the various items of profit and loss between the transferor and the transferee Partner.

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(h)    Special Allocations of Class-Specific Items. To the extent that any items of income, gain, loss or deduction of the General Partner are allocable to a specific Class or Classes of REIT Shares as provided in the Prospectus, including, without limitation, Distribution and Stockholder Servicing Fees, such items, or an amount equal thereto, shall be specially allocated to the Class or Classes of Partnership Units corresponding to such Class or Classes of REIT Shares.
(i)    Tax Allocations. All items of income, gain, loss, deduction and credit of the Partnership shall be allocated among the Partners for federal, state and local income tax purposes consistent with the manner that the corresponding constituent items of profit and loss shall be allocated among the Partners pursuant to this Agreement in the manner determined by the General Partner, except as may otherwise be provided herein or by the Code. Notwithstanding the foregoing, the General Partner may make such allocations as it deems reasonably necessary to give economic effect to the provisions of this Agreement, taking into account facts and circumstances as the General Partner deems reasonably necessary for this purpose.
(j)    Curative Allocations. The allocations set forth in Sections 5.1(d), 5.1(e) and 5.1(f) of this Agreement (the “Regulatory Allocations”) are intended to comply with certain requirements of the Regulations. The General Partner is authorized to offset all Regulatory Allocations either with other Regulatory Allocations or with special allocations of other items of Partnership income, gain, loss or deduction pursuant to this Section 5.1(i). Therefore, notwithstanding any other provision of this Section 5.1 (other than the Regulatory Allocations), the General Partner shall make such offsetting special allocations of Partnership income, gain, loss or deduction in whatever manner it deems appropriate so that, after such offsetting allocations are made, each Partner’s Capital Account is, to the extent possible, equal to the Capital Account balance such Partner would have had if the Regulatory Allocations were not part of this Agreement and all Partnership items were allocated pursuant to Sections 5.1(a), 5.1(b), 5.1(c), 5.1(g) and 5.1(h).

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5.2    Distribution of Cash. 
(a)    The Partnership may distribute cash on a monthly (or, at the election of the General Partner, more or less frequent) basis, in an amount determined by the General Partner in its sole and absolute discretion, to the Partners who are Partners on the Partnership Record Date with respect to such month (or other distribution period) in accordance with Section 5.2(b).
(b)    Except for distributions pursuant to Section 5.6 in connection with an Asset Acquisition Distribution and Section 5.7 in connection with the dissolution and liquidation of the Partnership and subject to the provisions of Sections 5.2(c), 5.2(d), 5.2(e), 5.3 and 5.5, all distributions of cash shall be made to the Partners in amounts proportionate to the aggregate NAV of the Partnership Units held by the respective Partners on the Partnership Record Date, except that the amount distributed per Partnership Unit of any Class may differ from the amount per Partnership Unit of another Class on account of differences in Class-specific expense allocations with respect to REIT Shares as described in the Prospectus (and of corresponding special allocation among Classes of Partnership Units in accordance with Section 5.1(h) hereof) or for other reasons as determined by the board of directors of the General Partner. Any such differences shall correspond to differences in the amount of distributions per REIT Share for REIT Shares of different Classes, with the same adjustments being made to the amount of distributions per Partnership Unit for Partnership Units of a particular Class as are made to the distributions per REIT Share by the General Partner with respect to REIT Shares having the same Class designation.  
(c)    Notwithstanding the foregoing, so long as the Advisory Agreement has not been terminated (including by means of non-renewal), the Special OP Unitholder shall be entitled to a distribution (the “Performance Allocation”), promptly following the end of each year (which shall accrue on a monthly basis) in an amount equal to:
(i)    First, if the Total Return for the applicable period exceeds the sum of (i) the Hurdle Amount for that period and (ii) the Loss Carryforward Amount (any such excess, “Excess Profits”), 100% of such Excess Profits until the total amount allocated to the Special OP Unitholder equals 12.5% of the sum of (x) the Hurdle Amount for that period and (y) any amount distributed to the Special OP Unitholder pursuant to this clause; and

(ii)    Second, to the extent there are remaining Excess Profits, 12.5% of such remaining Excess Profits.

Any amount by which Total Return falls below the Hurdle Amount and that does not constitute Loss Carryforward Amount will not be carried forward to subsequent periods.

With respect to all Partnership Units that are repurchased at the end of any month in connection with repurchases of REIT Shares pursuant to the General Partner’s share redemption program, the Special OP Unitholder shall be entitled to such Performance Allocation in an amount calculated as described above calculated in respect of the portion of the year for which such Partnership Units were outstanding, and proceeds for any such Partnership Unit repurchase will be reduced by the amount of any such Performance Allocation.

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Distributions on the Performance Allocation may be payable in cash or Class I Units at the election of the Special OP Unitholder. If the Special OP Unitholder elects to receive such distributions in Class I Units, the Special OP Unitholder will receive the number of Class I Units that results from dividing the Performance Allocation by the NAV per Class I Unit at the time of such distribution. If the Special OP Unitholder elects to receive such distributions in Class I Units, the Special OP Unitholder may request the Partnership to redeem such Class I Units from the Special OP Unitholder at any time thereafter pursuant to Section 8.5; subject to any monthly and quarterly volume limitations of the General Partner’s share redemption program described in the Prospectus.

The measurement of the change in NAV Per Unit for the purpose of calculating the Total Return is subject to adjustment by the board of directors of the General Partner to account for any dividend, split, recapitalization or any other similar change in the Partnership’s capital structure or any distributions that the board of directors of the General Partner deems to be a return of capital if such changes are not already reflected in the Partnership’s net assets.

The Special OP Unitholder will not be obligated to return any portion of the Performance Allocation paid due to the subsequent performance of the Partnership.

In the event the Advisory Agreement is terminated (including by means of non-renewal), the Special OP Unitholder will be allocated any accrued Performance Allocation with respect to all Partnership Units as of the date of such termination.

(d)    Notwithstanding any other provision of this Agreement, the General Partner is authorized to take any action that it determines to be necessary or appropriate to cause the Partnership to comply with any withholding requirements established under the Code or any other federal, state or local law including, without limitation, pursuant to Sections 1441, 1442, 1445, 1446, 1471, 1472 and 3406 of the Code. To the extent that the Partnership is required to withhold and pay over to any taxing authority any amount resulting from the allocation or distribution of income to any Partner or assignee (including by reason of Section 1446 of the Code), either (i) if the actual amount to be distributed to the Partner equals or exceeds the amount required to be withheld by the Partnership, the amount withheld shall be treated as a distribution of cash in the amount of such withholding to such Partner, or (ii) if the actual amount to be distributed to the Partner is less than the amount required to be withheld by the Partnership, the actual amount shall be treated as a distribution of cash in the amount of such withholding and the additional amount required to be withheld shall be treated as a loan (a “Partnership Loan”) from the Partnership to the Partner on the day the Partnership pays over such amount to a taxing authority. A Partnership Loan shall be repaid through withholding by the Partnership with respect to subsequent distributions to the applicable Partner or assignee. In the event that a Limited Partner (a “Defaulting Limited Partner”) fails to pay any amount owed to the Partnership with respect to the Partnership Loan within fifteen (15) days after demand for payment thereof is made by the Partnership on the Limited Partner, the General Partner, in its sole and absolute discretion, may elect to make the payment to the Partnership on behalf of such Defaulting Limited Partner. In such event, on the date of payment, the General Partner shall be deemed to have extended a loan (a “General Partner Loan”) to the 

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Defaulting Limited Partner in the amount of the payment made by the General Partner and shall succeed to all rights and remedies of the Partnership against the Defaulting Limited Partner as to that amount. Without limitation, the General Partner shall have the right to receive any distributions that otherwise would be made by the Partnership to the Defaulting Limited Partner until such time as the General Partner Loan has been paid in full, and any such distributions so received by the General Partner shall be treated as having been received by the Defaulting Limited Partner and immediately paid to the General Partner. Any amounts treated as a Partnership Loan or a General Partner Loan pursuant to this Section 5.2(c) shall bear interest at the lesser of (i) 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, or (ii) the maximum lawful rate of interest on such obligation, such interest to accrue from the date the Partnership or the General Partner, as applicable, is deemed to extend the loan until such loan is repaid in full.
(e)    In no event may a Partner receive a distribution of cash with respect to a Partnership Unit if such Partner is entitled to receive a cash distribution as the holder of record of a REIT Share for which all or part of such Partnership Unit has been or will be exchanged.

5.3    REIT Distribution Requirements. The General Partner shall use its commercially reasonable efforts to cause the Partnership to distribute amounts sufficient to enable the General Partner to make shareholder distributions that will allow the General Partner to (i) meet its distribution requirement for qualification as a REIT as set forth in Section 857 of the Code and (ii) avoid any federal income or excise tax liability imposed by the Code.

5.4    No Right to Distributions in Kind. No Partner shall be entitled to demand property other than cash in connection with any distributions by the Partnership.

5.5    Limitations on Return of Capital Contributions. Notwithstanding any of the provisions of this Article 5, no Partner shall have the right to receive and the General Partner shall not have the right to make, a distribution that includes a return of all or part of a Partner’s Capital Contributions, unless after giving effect to the return of a Capital Contribution, the sum of all Partnership liabilities, other than the liabilities to a Partner for the return of his Capital Contribution, does not exceed the fair market value of the Partnership’s assets.

5.6    Asset Acquisition Distributions.  Notwithstanding any of the provisions of this Article 5, to the extent the General Partner has made Capital Contributions to the Partnership of the proceeds from the issuance of Additional Securities pursuant to Section 4.2(a)(ii) hereof or the Partnership has borrowed funds or otherwise has funds available for real estate related acquisitions, and it is determined by the General Partner that (i) the General Partner should acquire a General Partner Property and (ii) funds are needed in order for the General Partner to acquire a General Partner Property, then the General Partner shall elect to receive such funds from the Partnership and the Partnership shall pay such funds to the General Partner either as an Asset Acquisition Distribution under this Section 5.6 or as an Asset Acquisition Redemption under Section 8.4.

5.7    Distributions Upon Liquidation.  Immediately before liquidation of the Partnership, Class D Units will automatically convert to Class I Units at the Class D Conversion Rate, Class IX Units will automatically convert to Class JX Units at the Class IX Conversion Rate, 

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Class S Units will automatically convert to Class I Units at the Class S Conversion Rate, Class T Units will automatically convert to Class I Units at the Class T Conversion Rate, and Class TX Units will automatically convert into Class AX Units at the Class TX Conversion Rate. Upon liquidation of the Partnership, after payment of, or adequate provision for, debts and obligations of the Partnership, including any Partner loans, and after payment of any accrued Performance Allocation to the Special OP Unitholder, any remaining assets of the Partnership shall be distributed to all Partners in proportion to their respective positive Capital Account balances, determined after taking into account all allocations required to be made pursuant to Section 5.1 hereof and all prior distributions made pursuant to this Article 5, in compliance with Treasury Regulation Section 1.704-1(b)(2)(ii)(b)(2). Notwithstanding any other provision of this Agreement, the amount by which the value, as determined in good faith by the General Partner, of any property other than cash to be distributed in kind to the Partners exceeds or is less than the Carrying Value of such property shall, to the extent not otherwise recognized by the Partnership, be taken into account in computing net profit and net loss of the Partnership (or items thereof) for purposes of crediting or charging the Capital Accounts of, and distributing proceeds to, the Partners, pursuant to this Agreement. To the extent deemed advisable by the General Partner, appropriate arrangements (including the use of a liquidating trust) may be made to assure that adequate funds are available to pay any contingent debts or obligations.

5.8    Substantial Economic Effect.  It is the intent of the Partners that the allocations of net profit and net loss (and items thereof) under this Agreement have substantial economic effect (or be consistent with the Partners’ interests in the Partnership in the case of the allocation of losses attributable to nonrecourse debt) within the meaning of Section 704(b) of the Code as interpreted by the Regulations promulgated pursuant thereto. Article 5 and other relevant provisions of this Agreement shall be interpreted in a manner consistent with such intent.

ARTICLE 6 
 
RIGHTS, OBLIGATIONS AND 
POWERS OF THE GENERAL PARTNER

6.1    Management of the Partnership.
(a)    Except as otherwise expressly provided in this Agreement, the General Partner shall have full, complete and exclusive discretion to manage and control the business of the Partnership for the purposes herein stated, and shall make all decisions affecting the business and assets of the Partnership. Subject to the restrictions specifically contained in this Agreement, the powers of the General Partner shall include, without limitation, the authority to take the following actions on behalf of the Partnership:
(i)    to acquire, purchase, own, operate, lease, dispose and exchange of any Assets, that the General Partner determines are necessary or appropriate or in the best interests of the business of the Partnership;
(ii)    to construct buildings and make other improvements on the properties owned or leased by the Partnership;

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(iii)    to authorize, issue, sell, redeem or otherwise purchase any Partnership Interests or any securities (including secured and unsecured debt obligations of the Partnership, debt obligations of the Partnership convertible into any Class or series of Partnership Interests, or options, rights, warrants or appreciation rights relating to any Partnership Interests) of the Partnership;
(iv)    to borrow or lend money for the Partnership or the General Partner or in connection with a General Partner Property, issue or receive evidences of indebtedness in connection therewith, refinance, increase the amount of, modify, amend or change the terms of, or extend the time for the payment of, any such indebtedness, and secure such indebtedness by mortgage, deed of trust, pledge or other lien on the Partnership’s assets;
(v)    to pay, either directly or by reimbursement, for all operating costs and general administrative expenses of the Partnership to third parties or to the General Partner or its Affiliates as set forth in this Agreement;
(vi)    to guarantee or become a co-maker of indebtedness of the General Partner or any Subsidiary thereof, refinance, increase the amount of, modify, amend or change the terms of, or extend the time for the payment of, any such guarantee or indebtedness, and secure such guarantee or indebtedness by mortgage, deed of trust, pledge or other lien on the Partnership’s assets;
(vii)    to use assets of the Partnership (including, without limitation, cash on hand) for any purpose consistent with this Agreement, including, without limitation, payment, either directly or by reimbursement, of all operating costs and general administrative expenses of the General Partner, the Partnership or any Subsidiary of either, to third parties or to the General Partner as set forth in this Agreement;
(viii)    to lease all or any portion of any of the Partnership’s assets, whether or not the terms of such leases extend beyond the termination date of the Partnership and whether or not any portion of the Partnership’s assets so leased are to be occupied by the lessee, or, in turn, subleased in whole or in part to others, for such consideration and on such terms as the General Partner may determine;
(ix)    to prosecute, defend, arbitrate, or compromise any and all claims or liabilities in favor of or against the Partnership, on such terms and in such manner as the General Partner may reasonably determine, and similarly to prosecute, settle or defend litigation with respect to the Partners, the Partnership, or the Partnership’s assets;
(x)    to file applications, communicate, and otherwise deal with any and all governmental agencies having jurisdiction over, or in any way affecting, the Partnership’s assets or any other aspect of the Partnership business;
(xi)    to make or revoke any election permitted or required of the Partnership by any taxing authority;

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(xii)    to maintain such insurance coverage for public liability, fire and casualty, and any and all other insurance for the protection of the Partnership, for the conservation of Partnership assets, or for any other purpose convenient or beneficial to the Partnership, in such amounts and such types, as it shall determine from time to time;
(xiii)    to determine whether or not to apply any insurance proceeds for any property to the restoration of such property or to distribute the same;
(xiv)    to establish one or more divisions of the Partnership, to hire and dismiss employees of the Partnership or any division of the Partnership, and to retain legal counsel, accountants, consultants, real estate brokers, and such other persons, as the General Partner may deem necessary or appropriate in connection with the Partnership business and to pay therefor such remuneration as the General Partner may deem reasonable and proper;
(xv)    to retain other services of any kind or nature in connection with the Partnership business, and to pay therefor such remuneration as the General Partner may deem reasonable and proper;
(xvi)    to negotiate and conclude agreements on behalf of the Partnership with respect to any of the rights, powers and authority conferred upon the General Partner;
(xvii)    to maintain accurate accounting records and to file promptly all federal, state and local income tax returns on behalf of the Partnership;
(xviii)    to distribute Partnership cash or other Partnership assets in accordance with this Agreement;
(xix)    to form or acquire an interest in, and contribute property to, any further limited or general partnerships, joint ventures or other relationships that it deems desirable (including, without limitation, the acquisition of interests in, and the contributions of property to, its Subsidiaries and any other Person in which it has an equity interest from time to time);
(xx)    to establish Partnership reserves for working capital, capital expenditures, contingent liabilities, or any other valid Partnership purpose;
(xxi)    to merge, consolidate or combine the Partnership with or into another Person;
(xxii)    to do any and all acts and things necessary or prudent to ensure that the Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Code; and
(xxiii)    to take such other action, execute, acknowledge, swear to or deliver such other documents and instruments, and perform any and all other acts that the General Partner deems necessary or appropriate for the formation, continuation and conduct of the business and affairs of the Partnership (including, without limitation, all actions consistent with allowing the General Partner at all times to qualify as a REIT unless the General Partner voluntarily terminates 

29

its REIT status) and to possess and enjoy all of the rights and powers of a general partner as provided by the Act.
(b)    Except as otherwise provided herein, to the extent the duties of the General Partner require expenditures of funds to be paid to third parties, the General Partner shall not have any obligations hereunder except to the extent that partnership funds are reasonably available to it for the performance of such duties, and nothing herein contained shall be deemed to authorize or require the General Partner, in its capacity as such, to expend its individual funds for payment to third parties or to undertake any individual liability or obligation on behalf of the Partnership.

6.2    Delegation of Authority. The General Partner may delegate any or all of its powers, rights and obligations hereunder, and may appoint, employ, contract or otherwise deal with any Person for the transaction of the business of the Partnership, which Person may, under supervision of the General Partner, perform any acts or services for the Partnership as the General Partner may approve.

6.3    Indemnification and Exculpation of Indemnitees. 
(a)    The Partnership shall indemnify an Indemnitee from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including 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 as set forth in this Agreement in which any Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, unless it is established that: (i) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding and either was committed in bad faith or was the result of active and deliberate dishonesty; (ii) the Indemnitee actually received an improper personal benefit in money, property or services; or (iii) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission was unlawful. Any indemnification pursuant to this Section 6.3 shall be made only out of the assets of the Partnership.
(b)    The Partnership shall reimburse an Indemnitee for reasonable expenses incurred by an Indemnitee who is a party to a proceeding in advance of the final disposition of the proceeding upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized in this Section 6.3 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 6.3 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.
(d)    The Partnership may purchase and maintain insurance, on behalf of the Indemnitees and such other Persons as the General Partner shall determine, against any liability 

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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)    For purposes of this Section 6.3, the Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by it of its duties to the Partnership also imposes duties on, or otherwise involves services by, it to the plan or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this Section 6.3; and actions taken or omitted by the Indemnitee with respect to an employee benefit plan in the performance of its duties for a purpose reasonably believed by it to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the best interests of the Partnership.
(f)    In no event may an Indemnitee subject the Limited Partners to personal liability by reason of the indemnification provisions set forth in this Agreement.
(g)    An Indemnitee shall not be denied indemnification in whole or in part under this Section 6.3 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 6.3 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.
(i)    Notwithstanding the foregoing, the Partnership may not indemnify or hold harmless an Indemnitee for any liability or loss unless all of the following conditions are met: (i) the Indemnitee has determined, in good faith, that the course of conduct that caused the loss or liability was in the best interests of the Partnership; (ii) the Indemnitee was acting on behalf of or performing services for the Partnership; (iii) the liability or loss was not the result of (A) negligence or misconduct, in the case that the Indemnitee is a director of the General Partner (other than an Independent Director), the Advisor or an Affiliate of the Advisor or (B) gross negligence or willful misconduct, in the case that the Indemnitee is an Independent Director; and (iv) the indemnification or agreement to hold harmless is recoverable only out of net assets of the Partnership. In addition, the Partnership shall not provide indemnification for any loss, liability or expense arising from or out of an alleged violation of federal or state securities laws by such party unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged material securities law violations as to the Indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the Indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against the Indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the Commission and of the published position of any state securities regulatory authority in which Securities were offered or sold as to indemnification for violations of securities laws.

6.4    Liability of the General Partner. 

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(a)    Notwithstanding anything to the contrary set forth in this Agreement, the General Partner shall not be liable for monetary damages to the Partnership or any Partners for losses sustained or liabilities incurred as a result of errors in judgment or of any act or omission if the General Partner acted in good faith. The General Partner shall not be in breach of any duty that the General Partner may owe to the Limited Partners or the Partnership or any other Persons under this Agreement or of any duty stated or implied by law or equity provided the General Partner, acting in good faith, abides by the terms of this Agreement.
(b)    Each Limited Partner expressly acknowledges and agrees that whenever in this Agreement the General Partner is permitted to take any action, make any decision or determination or otherwise vote on or give its consent to any action, the General Partner shall be entitled to exercise its sole and absolute discretion in connection therewith after considering only such interests and factors as it desires and, without limiting the generality of the foregoing, it is specifically agreed and acknowledged that the General Partner in taking any action or declining to take any action hereunder may consider exclusively its own interests or the interests of its shareholders and shall have no duty or obligation to consider the separate interests of or factors affecting the Partnership or any other Partner (including, without limitation, the tax consequences to Limited Partners or the tax consequences of some, but not all, of the Limited Partners). The General Partner shall not be liable for monetary damages for losses sustained, liabilities incurred, or benefits not derived by Limited Partners in connection with such decisions, provided that the General Partner has acted in good faith.
(c)    Subject to its obligations and duties as General Partner set forth in Section 6.1 hereof, the General Partner may exercise any of the powers granted to it under this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its agents. The General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by it in good faith.
(d)    Notwithstanding any other provisions of this Agreement or the Act, any action of the General Partner on behalf of the Partnership or any decision of the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith belief that such action or omission is necessary or advisable in order (i) to protect the ability of the General Partner to continue to qualify as a REIT or (ii) to prevent the General Partner from incurring any taxes under Section 857, Section 4981, or any other provision of the Code, is expressly authorized under this Agreement and is deemed approved by all of the Limited Partners.
(e)    Any amendment, modification or repeal of this Section 6.4 or any provision hereof shall be prospective only and shall not in any way affect the limitations on the General Partner’s liability to the Partnership and the Limited Partners under this Section 6.4 as in effect immediately prior to such amendment, modification or repeal with respect to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when claims relating to such matters may arise or be asserted.
(f)     In accordance with Section 17-1101(d) of the Act, the Partners hereby acknowledge and agree that the provisions of this Agreement, including the provisions of this Article 6, to the extent they restrict or eliminate the duties (including fiduciary duties) and liabilities relating 

32

thereto otherwise existing at law or in equity, replace completely and absolutely such other duties (including fiduciary duties) and liabilities relating thereto and further acknowledge and agree that the provisions of this subsection (f) and the other provisions of this Article 6 are fundamental elements to the agreement of the Partners to enter into this Agreement.

6.5    Reimbursement of General Partner. 
(a)    Except as provided in this Section 6.5 and elsewhere in this Agreement (including the provisions of Article 5 and Article 6 regarding distributions, payments, and allocations to which it may be entitled), the General Partner shall not be compensated for its services as general partner of the Partnership.
(b)    The General Partner shall be reimbursed on a monthly basis, or such other basis as the General Partner may determine in its sole and absolute discretion, for all Administrative Expenses incurred by the General Partner.

6.6    Outside Activities. Subject to (a) Section 6.8 hereof, (b) the Charter and (c) any agreements entered into by the General Partner or its Affiliates with the Partnership, a Subsidiary or any officer, director, employee, agent, trustee, Affiliate or shareholder of the General Partner, the General 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 substantially similar or identical to those of the Partnership. Neither the Partnership nor any of the Limited Partners shall have any rights by virtue of this Agreement in any such business ventures, interests or activities. 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 such business ventures, interests or activities, and the General Partner shall have no obligation pursuant to this Agreement to offer any interest in any such business ventures, interests and activities to the Partnership or any Limited Partner, even if such opportunity is of a character which, if presented to the Partnership or any Limited Partner, could be taken by such Person.

6.7    Employment or Retention of Affiliates. 
(a)    Any Affiliate of the General Partner may be employed or retained by the Partnership and may otherwise deal with the Partnership (whether as a buyer, lessor, lessee, manager, furnisher of goods or services, broker, agent, lender or otherwise) and may receive from the Partnership any compensation, price, or other payment therefor which the General Partner determines to be fair and reasonable.
(b)    The Partnership may lend or contribute to its Subsidiaries or other Persons in which it has an equity investment, and such Persons may borrow funds from 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 Subsidiary or any other Person.
(c)    The Partnership may transfer assets to joint ventures, other partnerships, corporations or other business entities in which it is or thereby becomes a participant upon such 

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terms and subject to such conditions as the General Partner deems are consistent with this Agreement, applicable law and the REIT status of the General Partner.
(d)    Except as expressly permitted by this Agreement, neither the General Partner nor any of its Affiliates shall sell, transfer or convey any property to, or purchase any property from, the Partnership, directly or indirectly, except pursuant to transactions that are, in the General Partner’s sole discretion, on terms that are fair and reasonable to the Partnership.

6.8    General Partner Participation. The General Partner agrees that all business activities of the General Partner, including activities pertaining to the acquisition, development or ownership of any Asset, shall be conducted through the Partnership or one or more Subsidiary Partnerships; provided, however, that the General Partner is allowed to acquire General Partner Property under Section 4.2(a)(ii) hereof.

6.9    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, shall have any ownership interest in such Partnership assets or any portion thereof. Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees, as the General Partner may determine, including Affiliates of the General Partner. The General Partner hereby declares and warrants that any Partnership assets for which legal title is held in the name of the General Partner or any nominee or Affiliate of the General Partner shall be held by the General Partner for the use and benefit of the Partnership or one or more Subsidiary Partnerships in accordance with the provisions of this Agreement; provided, however, that the General Partner shall use its commercially reasonable efforts to cause beneficial and record title to such assets to be vested in the Partnership as soon as reasonably practicable. 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.

6.10    Redemption and Exchanges of REIT Shares.
(a)    Redemptions.  In the event the General Partner redeems any REIT Shares, then the General Partner shall cause the Partnership to purchase from the General Partner a number of Partnership Units having the same Class designation as the Exchanged REIT Shares as determined based on the application of the Conversion Factor on the same terms that the General Partner redeemed such REIT Shares. Moreover, if the General Partner makes a cash tender offer or other offer to acquire REIT Shares, then the General Partner shall cause the Partnership to make a corresponding offer to the General Partner to acquire an equal number of Partnership Units held by the General Partner that have the same Class designation as the REIT Shares that are subject to the offer. In the event any REIT Shares are redeemed by the General Partner pursuant to such offer, the Partnership shall redeem an equivalent number of the General Partner’s Partnership Units having the same Class designation as the redeemed REIT Shares for an equivalent purchase price based on the application of the Conversion Factor.  
(b)    Exchanges.  If the General Partner exchanges any REIT Shares of any Class (“Exchanged REIT Shares”) for REIT Shares of a different Class (“Received REIT Shares”), then 

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the General Partner shall, and shall cause the Partnership to, exchange a number of Partnership Units having the same Class designation as the Exchanged REIT Shares, as determined based on the application of the Conversion Factor, for Partnership Units having the same Class designation as the Received REIT Shares on the same terms that the General Partner exchanged the Exchanged REIT Shares. The exchange of Units shall occur automatically after the close of business on the applicable date of the exchange of REIT Shares, as of which time the holder of Class of Units having the same designation as the Exchanged REIT Shares shall be credited on the books and records of the Partnership with the issuance, as of the opening of business on the next day, of the applicable number of Units having the same designation as the Received REIT Shares.

6.11    No Duplication of Fees or Expenses. The Partnership may not incur or be responsible for any fee or expense (in connection with the Offering or otherwise) that would be duplicative of fees and expenses paid by the General Partner.

ARTICLE 7 
 
CHANGES IN GENERAL PARTNER

7.1    Transfer of the General Partner’s Partnership Interest. 
(a)    The General Partner shall not transfer all or any portion of its General Partnership Interest or withdraw as General Partner except as provided in, or in connection with a transaction contemplated by, Sections 7.1(c), 7.1(d) or 7.1(e).
(b)    Intentionally omitted.
(c)    Except as otherwise provided in Section 6.4(b) or Section 7.1(d) or 7.1(e) hereof, the General Partner shall not engage in any merger, consolidation or other combination with or into another Person or sale of all or substantially all of its assets (other than in connection with a change in the General Partner’s state of incorporation or organizational form) in each case which results in a change of control of the General Partner (a “Transaction”), unless:
(i)    the consent of Limited Partners holding more than 50% of the Percentage Interests and the consent of the Special OP Unitholder is obtained;
(ii)    as a result of such Transaction all Limited Partners will receive for each Partnership Unit of each Class (other than Special OP Units) an amount of cash, securities, or other property equal to the product of the Conversion Factor and the greatest amount of cash, securities or other property paid in the Transaction to a holder of one REIT Share having the same Class designation as the Partnership Unit in consideration of such REIT Share, provided that if, in connection with the Transaction, a purchase, tender or exchange offer (“Offer”) shall have been made to and accepted by the holders of more than 50% of the outstanding REIT Shares, each holder of Partnership Units shall be given the option to exchange its Partnership Units for the greatest amount of cash, securities, or other property which a Limited Partner holding Partnership Units would have received had it (A) exercised its Redemption Right and (B) sold, tendered or exchanged 

35

pursuant to the Offer the REIT Shares received upon exercise of the Redemption Right immediately prior to the expiration of the Offer; or
(iii)    the General Partner is the surviving entity in the Transaction and either (A) the holders of REIT Shares do not receive cash, securities, or other property in the Transaction or (B) all Limited Partners (other than the General Partner or any Subsidiary) receive in exchange for their Partnership Units of each Class (other than the Special OP Units), an amount of cash, securities, or other property (expressed as an amount per REIT Share) that is no less than the product of the Conversion Factor and the greatest amount of cash, securities, or other property (expressed as an amount per REIT Share) received in the Transaction by any holder of REIT Shares having the same Class designation as the Partnership Units being exchanged.
(d)    Notwithstanding Section 7.1(c), the General Partner may merge with or into or consolidate with another entity if immediately after such merger or consolidation (i) substantially all of the assets of the successor or surviving entity (the “Survivor”), other than Partnership Units held by the General Partner, are contributed, directly or indirectly, to the Partnership as a Capital Contribution in exchange for Partnership Units with a fair market value equal to the value of the assets so contributed as determined by the Survivor in good faith and (ii) the Survivor expressly agrees to assume all obligations of the General Partner, as appropriate, hereunder. Upon such contribution and assumption, the Survivor shall have the right and duty to amend this Agreement as set forth in this Section 7.1(d). The Survivor shall in good faith arrive at a new method for the calculation of the Cash Amount, the REIT Shares Amount and Conversion Factor for a Partnership Unit after any such merger or consolidation so as to approximate the existing method for such calculation as closely as reasonably possible. Such calculation shall take into account, among other things, the kind and amount of securities, cash and other property that was receivable upon such merger or consolidation by a holder of REIT Shares of each Class or options, warrants or other rights relating thereto, and which a holder of Partnership Units of any Class could have acquired had such Partnership Units been exchanged immediately prior to such merger or consolidation. Such amendment to this Agreement shall provide for adjustment to such method of calculation, which shall be as nearly equivalent as may be practicable to the adjustments provided for with respect to the Conversion Factor. The Survivor also shall in good faith modify the definition of REIT Shares and make such amendments to Section 8.5 hereof so as to approximate the existing rights and obligations set forth in Section 8.5 as closely as reasonably possible. The above provisions of this Section 7.1(d) shall similarly apply to successive mergers or consolidations permitted hereunder.
(e)    Notwithstanding Section 7.1(c),
(i)    a General Partner may transfer all or any portion of its General Partnership Interest to (A) a wholly-owned Subsidiary of such General Partner or (B) the owner of all of the ownership interests of such General Partner, and following a transfer of all of its General Partnership Interest, may withdraw as General Partner; and
(ii)    the General Partner may engage in any transaction that is not required to be submitted to the vote of the holders of the REIT Shares by (A) law or (B) the rules of any national securities exchange on which one or more Classes of REIT Shares are Listed.

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7.2    Admission of a Substitute or Additional General Partner A Person shall be admitted as a substitute or additional General Partner of the Partnership only if the following terms and conditions are satisfied:
(a)    the Person to be admitted as a substitute or additional General Partner shall have accepted and agreed to be bound by all the terms and provisions of this Agreement by executing a counterpart thereof and such other documents or instruments as may be required or appropriate in order to effect the admission of such Person as a General Partner, and a certificate evidencing the admission of such Person as a General Partner shall have been filed for recordation and all other actions required by Section 2.5 hereof in connection with such admission shall have been performed;
(b)    if the Person to be admitted as a substitute or additional General Partner is a corporation or a partnership it shall have provided the Partnership with evidence satisfactory to counsel for the Partnership of such Person’s authority to become a General Partner and to be bound by the terms and provisions of this Agreement; and
(c)    counsel for the Partnership shall have rendered an opinion (relying on such opinions from other counsel and the state or any other jurisdiction as may be necessary) that (x) the admission of the person to be admitted as a substitute or additional General Partner is in conformity with the Act and (y) none of the actions taken in connection with the admission of such Person as a substitute or additional General Partner will cause (i) the Partnership to be classified other than as a partnership for federal tax purposes, or (ii) the loss of any Limited Partner’s limited liability.

7.3    Effect of Bankruptcy, Withdrawal, Death or Dissolution of a General Partner.
(a)    Upon the occurrence of an Event of Bankruptcy as to the sole remaining General Partner (and its removal pursuant to Section 7.4(a) hereof) or the death, withdrawal, deemed removal or dissolution of the sole remaining General Partner (except that, if the sole remaining General Partner is on the date of such occurrence a partnership, the withdrawal, death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such partnership shall be deemed not to be a dissolution of such General Partner if the business of such General Partner is continued by the remaining partner or partners), the Partnership shall be dissolved and terminated unless the Partnership is continued pursuant to Section 7.3(b) hereof. The merger of the General Partner with or into any entity that is admitted as a substitute or successor General Partner pursuant to Section 7.2 hereof shall not be deemed to be the withdrawal, dissolution or removal of the General Partner.
(b)    Following the occurrence of an Event of Bankruptcy as to the sole remaining General Partner (and its removal pursuant to Section 7.4(a) hereof) or the death, withdrawal, removal or dissolution of the sole remaining General Partner (except that, if the sole remaining General Partner is, on the date of such occurrence, a partnership, the withdrawal of, death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such partnership shall be deemed not to be a dissolution of such General Partner if the business of such General Partner is continued by the remaining partner or partners), the Limited Partners, within ninety (90) days after such occurrence, may elect to continue the business of the Partnership for the balance of the term specified 

37

in Section 2.4 hereof by selecting, subject to Section 7.2 hereof and any other provisions of this Agreement, a substitute General Partner by consent of a majority in interest of the Limited Partners. If the Limited Partners elect to continue the business of the Partnership and admit a substitute General Partner, the relationship with the Partners and of any Person who has acquired an interest of a Partner in the Partnership shall be governed by this Agreement.

7.4    Removal of a General Partner. 
(a)    Upon the occurrence of an Event of Bankruptcy as to, or the dissolution of, a General Partner, such General Partner shall be deemed to be removed automatically; provided, however, that if a General Partner is on the date of such occurrence a partnership, the withdrawal, death or dissolution of, Event of Bankruptcy as to, or removal of, a partner in, such partnership shall be deemed not to be a dissolution of the General Partner if the business of such General Partner is continued by the remaining partner or partners. The Limited Partners may not remove the General Partner, with or without cause.
(b)    If a General Partner has been removed pursuant to this Section 7.4 and the Partnership is continued pursuant to Section 7.3 hereof, such General Partner shall promptly transfer and assign its General Partnership Interest in the Partnership to the substitute General Partner approved by a majority in interest of the Limited Partners in accordance with Section 7.3(b) hereof and otherwise admitted to the Partnership in accordance with Section 7.2 hereof. At the time of assignment, the removed General Partner shall be entitled to receive from the substitute General Partner the fair market value of the General Partnership Interest of such removed General Partner as reduced by any damages caused to the Partnership by such General Partner. Such fair market value shall be determined by an appraiser mutually agreed upon by the General Partner and a majority in interest of the Limited Partners within ten (10) days following the removal of the General Partner. In the event that the parties are unable to agree upon an appraiser, the removed General Partner and a majority in interest of the Limited Partners each shall select an appraiser. Each such appraiser shall complete an appraisal of the fair market value of the removed General Partner’s General Partnership Interest within thirty (30) days of the General Partner’s removal, and the fair market value of the removed General Partner’s General Partnership Interest shall be the average of the two appraisals; provided, however, that if the higher appraisal exceeds the lower appraisal by more than 20% of the amount of the lower appraisal, the two appraisers, no later than forty (40) days after the removal of the General Partner, shall select a third appraiser who shall complete an appraisal of the fair market value of the removed General Partner’s General Partnership Interest no later than sixty (60) days after the removal of the General Partner. In such case, the fair market value of the removed General Partner’s General Partnership Interest shall be the average of the two appraisals closest in value.
(c)    The General Partnership Interest of a removed General Partner, until transfer under Section 7.4(b), shall be converted to that of a special Limited Partner; provided, however, such removed General Partner shall not have any rights to participate in the management and affairs of the Partnership, and shall not be entitled to any portion of the income, expense, profit, gain or loss allocations or cash distributions allocable or payable, as the case may be, to the Limited Partners. Instead, such removed General Partner shall receive and be entitled only to retain distributions or 

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allocations of such items that it would have been entitled to receive in its capacity as General Partner, until the transfer is effective pursuant to Section 7.4(b).
(d)    All Partners shall have given and hereby do give such consents, shall take such actions and shall execute such documents as shall be legally necessary, desirable and sufficient to effect all the foregoing provisions of this Section.

ARTICLE 8 
 
RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS

8.1    Management of the Partnership. The Limited Partners shall not participate in the management or control of Partnership business nor shall they transact any business for the Partnership, nor shall they have the power to sign for or bind the Partnership, such powers being vested solely and exclusively in the General Partner.

8.2    Power of Attorney. Each Limited Partner hereby irrevocably appoints the General Partner its true and lawful attorney-in-fact, who may act for each Limited Partner and in its name, place and stead, and for its use and benefit, to sign, acknowledge, swear to, deliver, file or record, at the appropriate public offices, any and all documents, certificates, and instruments as may be deemed necessary or desirable by the General Partner to carry out fully the provisions of this Agreement and the Act in accordance with their terms, which power of attorney is coupled with an interest and shall survive the death, dissolution or legal incapacity of the Limited Partner, or the transfer by the Limited Partner of any part or all of its Partnership Interest.

8.3    Limitation on Liability of Limited Partners. No Limited Partner shall be liable for any debts, liabilities, contracts or obligations of the Partnership. A Limited Partner shall be liable to the Partnership only to make payments of its Capital Contribution, if any, as and when due hereunder. After its Capital Contribution is fully paid, no Limited Partner shall, except as otherwise required by the Act, be required to make any further Capital Contributions or other payments or lend any funds to the Partnership.

8.4    Ownership by Limited Partner of Corporate General Partner or Affiliate. No Limited Partner shall at any time, either directly or indirectly, own any stock or other interest in the General Partner or in any Affiliate thereof, if such ownership by itself or in conjunction with other stock or other interests owned by other Limited Partners would, in the opinion of counsel for the Partnership, jeopardize the classification of the Partnership as a partnership for federal tax purposes. The General Partner shall be entitled to make such reasonable inquiry of the Limited Partners as is required to establish compliance by the Limited Partners with the provisions of this Section.

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8.5    Redemption Right. 
(a)    Subject to Sections 8.5(b), 8.5(c), 8.5(d), 8.5(e), 8.5(f) and 8.6 hereof, the provisions of any agreements between the Partnership and one or more Limited Partners with respect to Partnership Units held by them, each Limited Partner, other than the General Partner (except as permitted below), shall, after holding its Partnership Units for at least one year (other than the Advisor and its Affiliates), have the right (subject to the terms and conditions set forth herein) to require the Partnership to redeem (a “Redemption”) all or a portion of the Partnership Units (other than Special OP Units), held by such Limited Partner (such Units, the “Tendered Units”), in exchange (a “Redemption Right”), alternatively, for either REIT Shares having the same Class designation as the Partnership Units subject to the Redemption Right or the Cash Amount, as determined by the General Partner in its sole discretion. The consideration payable in respect of Tendered Units shall be issued or paid, as the case may be, on the Specified Redemption Date. Any Redemption Right shall be exercised pursuant to a Notice of Redemption delivered to the Partnership (with a copy to the General Partner) by the Limited Partner exercising the Redemption Right (the “Tendering Party”). No Limited Partner, other than the Special OP Unitholder, the Advisor and their Affiliates, may deliver more than two Notices of Redemption during each calendar year. A Limited Partner (other than the Special OP Unitholder, the Advisor and their Affiliates) may not exercise the Redemption Right for less than 1,000 Partnership Units or, if such Limited Partner holds less than 1,000 Partnership Units, all of the Partnership Units held by such Partner. The Tendering Party shall have no right, with respect to any Partnership Units so redeemed, to receive any distribution paid with respect to Partnership Units if the record date for such distribution is on or after the Specified Redemption Date. Notwithstanding the foregoing, the Special OP Unitholder, the Advisor and their Affiliates will be entitled to have all or a portion of their Partnership Units redeemed pursuant to this Section 8.5 at any time irrespective of the period the Partnership Units have been held by such Partner. The Partnership shall redeem any such Partnership Units held by the Special OP Unitholder, the Advisor or their Affiliates for the Cash Amount unless the Board of Directors of the General Partner determines that any such redemption for cash would be prohibited by applicable law or this Agreement, in which case such Partnership Units will be redeemed for an amount of REIT Shares having the same Class designation as the Tendered Units with an aggregate NAV equivalent to the aggregate NAV of such Partnership Units. If the Tendering Party is the Special OP Unitholder, the Advisor or one of their Affiliates, and the Tendered Units were not issued by the Partnership in lieu of payments or distributions of the Performance Allocation or in lieu of cash asset management fees pursuant to the Advisory Agreement, then the redemption of such Tendered Units shall not be subject to the monthly and quarterly limitations of the General Partner’s share redemption program described in the Prospectus. In addition, the General Partner shall be entitled to have its Partnership Units redeemed for the Cash Amount (an “Asset Acquisition Redemption”), at any time and under the circumstances described in Section 5.6 hereof.
(b)    If the General Partner elects to cause the Tendered Units to be exchanged for REIT Shares having the same Class designation as the Tendered Units rather than the Cash Amount, then the Partnership shall direct the General Partner to issue and deliver such REIT Shares to the Tendering Party pursuant to the terms set forth in this Section 8.5(b), in which case, (i) the General Partner, acting as a distinct legal entity, shall assume directly the Partnership’s redemption obligation with respect thereto and shall satisfy the Tendering Party’s exercise of its Redemption Right, and 

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(ii) such transaction shall be treated, for federal income tax purposes, as a transfer by the Tendering Party of such Tendered Units to the General Partner in exchange for REIT Shares. The percentage of the Tendered Units which are to be so exchanged for REIT Shares (rather than the Cash Amount) is referred to as the “Applicable Percentage.” In making such election to exchange Tendered Units for cash or REIT Shares, the General Partner shall act in a fair, equitable and reasonable manner that neither prefers one group or class of Limited Partners over another nor discriminates against a group or class of Limited Partners. If the General Partner determines to redeem any Tendered Units for REIT Shares, rather than the Cash Amount, on the Specified Redemption Date, the Tendering Party shall sell such number of the Tendered Units to the General Partner in exchange for a number of REIT Shares having the same Class designation as the Tendered Units equal to the product of the REIT Shares Amount and the Applicable Percentage. Such amount of REIT Shares having the same Class designation as the Tendered Units shall be delivered by the General Partner as duly authorized, validly issued, fully paid and nonassessable REIT Shares, free of any pledge, lien, encumbrance or restriction, other than the Ownership Limit (as calculated in accordance with the Charter) and other restrictions provided in the Articles of Incorporation, the bylaws of the General Partner, the Securities Act and relevant state securities or “blue sky” laws. Notwithstanding the provisions of Section 8.5(a) and this Section 8.5(b), the Tendering Parties shall have no rights under this Agreement that would otherwise be prohibited under the Charter.
(c)    In connection with an exercise of Redemption Rights pursuant to this Section 8.5, the Tendering Party shall submit the following to the General Partner, in addition to the Notice of Redemption:
(i)    A written affidavit, dated the same date as the 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) any Related Party and (b) representing that, after giving effect to the Redemption, neither the Tendering Party nor any Related Party will own REIT Shares in excess of the Ownership Limit (or, if applicable the Excepted Holder Limit);
(ii)    A written representation that neither the Tendering Party nor any Related Party has any intention to acquire any additional REIT Shares prior to the closing of the Redemption on the Specified Redemption Date; and
(iii)    An undertaking to certify, at and as a condition to the closing of the Redemption on the Specified Redemption Date, that either (a) the actual and constructive ownership of REIT Shares by the Tendering Party and any Related Party remain unchanged from that disclosed in the affidavit required by Section 8.5(c)(i) or (b) after giving effect to the Redemption, neither the Tendering Party nor any Related Party shall own REIT Shares in violation of the Ownership Limit (or, if applicable, the Excepted Holder Limit).
(iv)    Any other documents as the General Partner may reasonably require in connection with the issuance of REIT Shares upon the exercise of the Redemption Right.
(d)    Any Cash Amount to be paid to a Tendering Party pursuant to this Section 8.5 shall be paid on the Specified Redemption Date; provided, however, that the General 

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Partner may elect to cause the Specified Redemption Date to be delayed for up to an additional 180 days to the extent required for the General Partner to provide financing to be used to make such payment of the Cash Amount, by causing the issuance of additional REIT Shares or otherwise. Notwithstanding the foregoing, the General Partner agrees to use its commercially reasonable efforts to cause the closing of the acquisition of Tendered Units hereunder to occur as quickly as reasonably possible.
(e)    Notwithstanding any other provision of this Agreement, the General Partner shall place appropriate restrictions on the ability of the Limited Partners to exercise their Redemption Rights to prevent, among other things, (i) any person from owning shares in excess of the Ownership Limit and the Excepted Holder Limit, (ii) the General Partner’s common stock from being owned by less than 100 persons, (iii) the General Partner from being “closely held” within the meaning of Section 856(h) of the Code, (iv) violations or what would be likely to constitute a violation of any applicable federal or state securities law, (v) violations of any provision of the General Partner’s Charter or Bylaws and (vi) as and if deemed necessary to ensure that the Partnership does not constitute a “publicly traded partnership” under Section 7704 of the Code. If and when the General Partner determines that imposing such restrictions is necessary, the General Partner shall give prompt written notice thereof to each of the Limited Partners holding Partnership Units, which notice shall be accompanied by a copy of an opinion of counsel to the Partnership which states that, in the opinion of such counsel, restrictions are necessary in order to avoid having the Partnership be treated as a “publicly traded partnership” under Section 7704 of the Code.
(f)    A redemption fee may be charged (other than to the Advisor, the Special OP Unitholder and their Affiliates) in connection with an exercise of Redemption Rights pursuant to this Section 8.5.

ARTICLE 9 
 
TRANSFERS OF LIMITED PARTNERSHIP INTERESTS

9.1    Purchase for Investment. 
(a)    Each Limited Partner hereby represents and warrants to the General Partner and to the Partnership that the acquisition of his Partnership Interest is made as a principal for his account for investment purposes only and not with a view to the resale or distribution of such Partnership Interest.
(b)    Each Limited Partner agrees that he will not sell, assign or otherwise transfer his Partnership Interest or any fraction thereof, whether voluntarily or by operation of law or at judicial sale or otherwise, to any Person who does not make the representations and warranties to the General Partner set forth in Section 9.1(a) above and similarly agree not to sell, assign or transfer such Partnership Interest or fraction thereof to any Person who does not similarly represent, warrant and agree.

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9.2    Restrictions on Transfer of Limited Partnership Interests. 
(a)    Subject to the provisions of Section 9.2(b) and 9.2(c), no Limited Partner may offer, sell, assign, hypothecate, pledge or otherwise transfer all or any portion of his Limited Partnership Interest, or any of such Limited Partner’s economic rights as a Limited Partner, whether voluntarily or by operation of law or at judicial sale or otherwise (collectively, a “Transfer”) without the prior consent of the General Partner, which consent may be granted or withheld in its sole and absolute discretion; provided that each of the Special OP Unitholder, the Advisor and their Affiliates may transfer all or any portion of its respective Partnership Units, or any of its economic rights as a Limited Partner, to any of its Affiliates without the consent of the General Partner. Any such purported transfer undertaken without such consent shall be considered to be null and void ab initio and shall not be given effect. The General Partner may require, as a condition of any Transfer to which it consents, that the transferor assume all costs incurred by the Partnership in connection therewith.
(b)    No Limited Partner may withdraw from the Partnership other than: (i) as a result of a permitted Transfer (i.e., a Transfer consented to as contemplated by clause (a) above or clause (c) below or a Transfer pursuant to Section 9.5 below) of all of its Partnership Interest pursuant to this Article 9, or (ii) pursuant to a redemption of all of its Partnership Units pursuant to Section 8.5. Upon the permitted Transfer or redemption of all of a Limited Partner’s Partnership Units and Special OP Units, if any, such Limited Partner shall cease to be a Limited Partner.
(c)    Notwithstanding Section 9.2(a) and subject to Sections 9.2(d), 9.2(e) and 9.2(f) below, a Limited Partner may not Transfer, without the prior consent of the General Partner, which consent will not be unreasonably withheld, all or a portion of its Partnership Interest to (i) a parent or parent’s spouse, natural or adopted descendant or descendants, spouse of such descendant, or brother or sister, or a trust created by such Limited Partner for the benefit of such Limited Partner and/or any such person(s), of which trust such Limited Partner or any such person(s) is a trustee, (ii) a corporation controlled by a Person or Persons named in (i) above, or (iii) if the Limited Partner is an entity, its beneficial owners.
(d)    No Limited Partner may effect a Transfer of its Limited Partnership Interest, in whole or in part, if, in the opinion of legal counsel for the Partnership, such proposed Transfer would require the registration of the Limited Partnership Interest under the Securities Act or would otherwise violate any applicable federal or state securities or blue sky law (including investment suitability standards).
(e)    No Transfer by a Limited Partner of its Partnership Interest, in whole or in part, may be made to any Person if (i) in the opinion of legal counsel for the Partnership, the transfer would result in the Partnership’s being treated as an association taxable as a corporation (other than a qualified REIT subsidiary within the meaning of Section 856(i) of the Code), (ii) in the opinion of legal counsel for the Partnership, it would adversely affect the ability of the General Partner to continue to qualify as a REIT or subject the General Partner to any additional taxes under Section 857 or Section 4981 of the Code, or (iii) such transfer is effectuated through an “established securities market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code.

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(f)    No Transfer by a Limited Partner of any Partnership Interest may be made to a lender to the Partnership or any Person who is related (within the meaning of Regulations Section 1.752-4(b)) to any lender to the Partnership whose loan constitutes a nonrecourse liability (within the meaning of Regulations Section 1.752-1(a)(2)), without the consent of the General Partner, which may be withheld in its sole and absolute discretion, provided that as a condition to such consent the lender will be required to enter into an arrangement with the Partnership and the General Partner to exchange or redeem for the Cash Amount any Partnership Units in which a security interest is held simultaneously with the time at which such lender would be deemed to be a Partner in the Partnership for purposes of allocating liabilities to such lender under Section 752 of the Code.
(g)    Any Transfer in contravention of any of the provisions of this Article 9 shall be void and ineffectual and shall not be binding upon, or recognized by, the Partnership.
(h)    Prior to the consummation of any Transfer under this Article 9, the transferor and/or the transferee shall deliver to the General Partner such opinions, certificates and other documents as the General Partner shall request in connection with such Transfer.

9.3    Admission of Substitute Limited Partner. 
(a)    Subject to the other provisions of this Article 9, an assignee of the Limited Partnership Interest of a Limited Partner (which shall be understood to include any purchaser, transferee, donee, or other recipient of any disposition of such Limited Partnership Interest) shall be deemed admitted as a Limited Partner of the Partnership only with the consent of the General Partner, which consent may be granted or withheld in its sole and absolute discretion, and upon the satisfactory completion of the following:
(i)    The assignee shall have accepted and agreed to be bound by the terms and provisions of this Agreement by executing a counterpart or an amendment thereof, including a revised Exhibit A, and such other documents or instruments as the General Partner may require in order to effect the admission of such Person as a Limited Partner.
(ii)    To the extent required, an amended Certificate evidencing the admission of such Person as a Limited Partner shall have been signed, acknowledged and filed for record in accordance with the Act.
(iii)    The assignee shall have delivered a letter containing the representation set forth in Section 9.1(a) hereof and the agreement set forth in Section 9.1(b) hereof.
(iv)    If the assignee is a corporation, partnership or trust, the assignee shall have provided the General Partner with evidence satisfactory to counsel for the Partnership of the assignee’s authority to become a Limited Partner under the terms and provisions of this Agreement.
(v)    The assignee shall have executed a power of attorney containing the terms and provisions set forth in Section 8.2 hereof.

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(vi)    The assignee shall have paid all legal fees and other expenses of the Partnership and the General Partner and filing and publication costs in connection with its substitution as a Limited Partner.
(vii)    The assignee has obtained the prior written consent of the General Partner to its admission as a Substitute Limited Partner, which consent may be given or denied in the exercise of the General Partner’s sole and absolute discretion.
(b)    For the purpose of allocating profits and losses and distributing cash received by the Partnership, a Substitute Limited Partner shall be treated as having become, and appearing in the records of the Partnership as, a Partner upon the filing of the Certificate described in Section 9.3(a)(ii) hereof or, if no such filing is required, the later of the date specified in the transfer documents or the date on which the General Partner has received all necessary instruments of transfer and substitution.
(c)    The General Partner shall cooperate with the Person seeking to become a Substitute Limited Partner by preparing the documentation required by this Section and making all official filings and publications. The Partnership shall take all such action as promptly as practicable after the satisfaction of the conditions in this Article 9 to the admission of such Person as a Limited Partner of the Partnership.

9.4    Rights of Assignees of Partnership Interests. 
(a)    Subject to the provisions of Sections 9.1 and 9.2 hereof, except as required by operation of law, the Partnership shall not be obligated for any purposes whatsoever to recognize the assignment by any Limited Partner of its Partnership Interest until the Partnership has received notice thereof.
(b)    Any Person who is the assignee of all or any portion of a Limited Partner’s Limited Partnership Interest, but does not become a Substitute Limited Partner and desires to make a further assignment of such Limited Partnership Interest, shall be subject to all the provisions of this Article 9 to the same extent and in the same manner as any Limited Partner desiring to make an assignment of its Limited Partnership Interest.

9.5    Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner. The occurrence of an Event of Bankruptcy as to a Limited Partner, the death of a Limited Partner or a final adjudication that a Limited Partner is incompetent (which term shall include, but not be limited to, insanity) shall not cause the termination or dissolution of the Partnership, and the business of the Partnership shall continue if an order for relief in a bankruptcy proceeding is entered against a Limited Partner, the trustee or receiver of his estate or, if he dies, his executor, administrator or trustee, or, if he is finally adjudicated incompetent, his committee, guardian or conservator, shall have the rights of such Limited Partner for the purpose of settling or managing his estate property and such power as the bankrupt, deceased or incompetent Limited Partner possessed to assign all or any part of his Partnership Interest and to join with the assignee in satisfying conditions precedent to the admission of the assignee as a Substitute Limited Partner.

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9.6    Joint Ownership of Interests. A Partnership Interest may be acquired by two individuals as joint tenants with right of survivorship, provided that such individuals either are married or are related and share the same home as tenants in common. The written consent or vote of both owners of any such jointly held Partnership Interest shall be required to constitute the action of the owners of such Partnership Interest; provided, however, that the written consent of only one joint owner will be required if the Partnership has been provided with evidence satisfactory to the counsel for the Partnership that the actions of a single joint owner can bind both owners under the applicable laws of the state of residence of such joint owners. Upon the death of one owner of a Partnership Interest held in a joint tenancy with a right of survivorship, the Partnership Interest shall become owned solely by the survivor as a Limited Partner and not as an assignee. The Partnership need not recognize the death of one of the owners of a jointly-held Partnership Interest until it shall have received notice of such death. Upon notice to the General Partner from either owner, the General Partner shall cause the Partnership Interest to be divided into two equal Partnership Interests, which shall thereafter be owned separately by each of the former owners.

ARTICLE 10 
 
BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS

10.1    Books and Records. At all times during the continuance of the Partnership, the Partners shall keep or cause to be kept at the Partnership’s specified office true and complete books of account in accordance with generally accepted accounting principles, including: (a) a current list of the full name and last known business address of each Partner, (b) a copy of the Certificate of Limited Partnership and all Certificates of amendment thereto, (c) copies of the Partnership’s federal, state and local income tax returns and reports, (d) copies of this Agreement and amendments thereto and any financial statements of the Partnership for the three most recent years and (e) all documents and information required under the Act. Any Partner or its duly authorized representative, upon paying the costs of collection, duplication and mailing, shall be entitled to inspect or copy such records during ordinary business hours.

10.2    Custody of Partnership Funds; Bank Accounts. 
(a)    All funds of the Partnership not otherwise invested shall be deposited in one or more accounts maintained in such banking or brokerage institutions as the General Partner shall determine, and withdrawals shall be made only on such signature or signatures as the General Partner may, from time to time, determine
(b)    All deposits and other funds not needed in the operation of the business of the Partnership may be invested by the General Partner in investment grade instruments (or investment companies whose portfolio consists primarily thereof), government obligations, certificates of deposit, bankers’ acceptances and municipal notes and bonds. The funds of the Partnership shall not be commingled with the funds of any other Person except for such commingling as may necessarily result from an investment in those investment companies permitted by this Section 10.2(b).

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10.3    Fiscal and Taxable Year. The fiscal and taxable year of the Partnership shall be the calendar year.

10.4    Annual Tax Information and Report. Within seventy-five (75) days after the end of each fiscal year of the Partnership, the General Partner shall furnish to each person who was a Limited Partner at any time during such year the tax information necessary to file such Limited Partner’s individual tax returns as shall be reasonably required by law.

10.5    Tax Matters Partner; Tax Elections; Special Basis Adjustments. 
(a)    The General Partner shall (i) for taxable years beginning on or before December 31, 2017, be the "Tax Matters Partner" of the Partnership within the meaning of Section 6231(a)(7) of the Code and (ii) for taxable years beginning on or after January 1, 2018, act as or appoint the "Partnership Representative" within the meaning of Section 6223(a) of the Code (as amended by the Bipartisan Budget Act of 2015). As Tax Matters Partner or Partnership Representative, as applicable, the General Partner (or its appointee) shall have the right and obligation to take all actions authorized and required, respectively, by the Code for the Tax Matters Partner or Partnership Representative. The General Partner (or its appointee) shall have the right to retain professional assistance in respect of any audit of the Partnership by the Service and all out-of-pocket expenses and fees incurred by the General Partner (or its appointee) on behalf of the Partnership as Tax Matters Partner or Partnership Representative, as applicable, shall constitute Partnership expenses. 
(b)    All elections required or permitted to be made by the Partnership under the Code or any applicable state or local tax law shall be made by the General Partner in its sole and absolute discretion.
(c)    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 basis of the Partnership’s assets. Notwithstanding anything contained in Article 5 of this Agreement, any adjustments made pursuant to Section 754 of the Code 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.

10.6    Reports to Limited Partners. 
(a)    As soon as practicable after the close of each fiscal quarter (other than the last quarter of the fiscal year), the General Partner shall cause to be mailed to each Limited Partner a quarterly report containing 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 fiscal quarter, presented in accordance with generally accepted accounting principles. As soon as practicable after the close of each fiscal year, the General Partner shall cause to be mailed to each Limited Partner an annual report containing 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 

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such fiscal year, presented in accordance with generally accepted accounting principles. The annual financial statements shall be audited by accountants selected by the General Partner.
(b)    Any Partner shall further have the right to a private audit of the books and records of the Partnership at the expense of such Partner, provided such audit is made for Partnership purposes and is made during normal business hours.

10.7    Safe Harbor Election. The Partners agree that, in the event the Safe Harbor Regulation is finalized, the Partnership shall be authorized and directed to make the Safe Harbor Election and the Partnership and each Partner (including any person to whom an interest in the Partnership is transferred in connection with the performance of services) agrees to comply with all requirements of the Safe Harbor with respect to all interests in the Partnership transferred in connection with the performance of services while the Safe Harbor Election remains effective. The Tax Matters Partner shall be authorized to (and shall) prepare, execute, and file the Safe Harbor Election.

ARTICLE 11 
 
AMENDMENT OF AGREEMENT; MERGER
The General Partner’s consent shall be required for any amendment to this Agreement. The General Partner, without the consent of the Limited Partners, may amend this Agreement in any respect or merge or consolidate the Partnership with or into any other partnership or business entity (as defined in Section 17-211 of the Act) in a transaction pursuant to Section 7.1(c)(ii) or 7.1(c)(iii), 7.1(d) or 7.1(e) hereof; provided, however, that the following amendments and any other merger or consolidation of the Partnership shall require the consent of Limited Partners holding more than 67% of the Percentage Interests of the Limited Partners and the Special OP Unitholder:
(a)    any amendment affecting the operation of the Conversion Factor or the Redemption Right (except as provided in Section 7.4(d) or 7.1(d) hereof) in a manner adverse to the Limited Partners;
(b)    any amendment that would adversely affect the rights of the Limited Partners to receive the distributions payable to them hereunder, other than with respect to the issuance of additional Partnership Units pursuant to Section 4.2 hereof; or
(c)    any amendment that would alter the Partnership’s allocations of profit and loss to the Limited Partners, other than with respect to the issuance of additional Partnership Units pursuant to Section 4.2 hereof; and any amendment that would impose on any Limited Partner any obligation to make additional Capital Contributions to the Partnership or otherwise alter such Limited Partner’s right to receive distributions of cash or other property or allocations of items of income, gain, deduction loss or credit shall require the written consent of both the General Partner and any such Limited Partner. In addition, any amendment to Section 8.5 shall require the consent of the Special OP Unitholder, and any amendment to this Article 11 shall require the written consent of all Partners.

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ARTICLE 12 
 
GENERAL PROVISIONS

12.1    Notices. All communications required or permitted under this Agreement shall be in writing and shall be deemed to have been given when delivered personally or upon deposit in the United States mail, registered, postage prepaid return receipt requested, to the Partners at the addresses set forth in Exhibit A attached hereto; provided, however, that any Partner may specify a different address by notifying the General Partner in writing of such different address. Notices to the Partnership shall be delivered at or mailed to its specified office.

12.2    Survival of Rights. Subject to the provisions hereof limiting transfers, this Agreement shall be binding upon and inure to the benefit of the Partners and the Partnership and their respective legal representatives, successors, transferees and assigns.

12.3    Additional Documents. Each Partner agrees to perform all further acts and execute, swear to, acknowledge and deliver all further documents which may be reasonable, necessary, appropriate or desirable to carry out the provisions of this Agreement or the Act.

12.4    Severability. If any provision of this Agreement shall be declared illegal, invalid, or unenforceable in any jurisdiction, then such provision shall be deemed to be severable from this Agreement (to the extent permitted by law) and in any event such illegality, invalidity or unenforceability shall not affect the remainder hereof.

12.5    Entire Agreement. This Agreement and exhibits attached hereto constitute the entire Agreement of the Partners and supersede all prior written agreements and prior and contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof.

12.6    Pronouns and Plurals. When the context in which words are used in the Agreement indicates that such is the intent, words in the singular number shall include the plural and the masculine gender shall include the neuter or female gender as the context may require.

12.7    Headings. The Article headings or sections in this Agreement are for convenience only and shall not be used in construing the scope of this Agreement or any particular Article.

12.8    Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one and the same instrument binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterpart.

12.9    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware; provided, however, that any cause of action for violation of federal or state securities laws shall not be governed by this Section 12.9.

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IN WITNESS WHEREOF, the parties hereto have hereunder affixed their signatures to this Agreement, all as of the 6th day of December, 2017.
GENERAL PARTNER:
HINES GLOBAL INCOME TRUST, INC., a Maryland corporation
	
		
	By:
	/s/ Sherri W. Schugart

	Name:
	Sherri W. Schugart

	Title:
	President and Chief Executive Officer

LIMITED PARTNER:
HINES GLOBAL REIT II ASSOCIATES LIMITED PARTNERSHIP
	
		
	By:
	/s/ Ryan T. Sims

	Name:
	Ryan T. Sims

	Title:
	Chief Financial Officer and Secretary

Signature page to Fourth Amended and Restated Limited Partnership Agreement

EXHIBIT A
PARTNERS, CAPITAL CONTRIBUTIONS AND PERCENTAGE INTERESTS
General Partner and Limited Partners (other than the Special OP Unitholder)
	
					
	Partner
	Cash Contribution as of September 30, 2017
	Agreed Value of Non-Cash Capital Contribution
	Partnership Units as of September 30, 2017
	Percentage Interest as of September 30, 2017

	 
	 
	 
	 
	 

	GENERAL PARTNER:
	 
	 
	 
	 

	Hines Global Income Trust, Inc.  
2800 Post Oak Boulevard, Suite 5000
Houston, Texas 77056-6118
	$399,748,616.78
	—
	20,028,842.290 Class AX Units

20,684,136.414 Class TX Units

91,496.377 Class IX Units
	99.95%

	ORIGINAL LIMITED PARTNER:
	 
	 
	 
	 

	Hines Global REIT II Associates Limited Partnership
2800 Post Oak Boulevard, Suite 5000
Houston, Texas 77056-6118
	$190,000
	—
	21,111.111 Class AX Units
	0.05%

	TOTALS
	$399,938,616.78
	—
	40,825,586.192 Units

	100.00%

Special OP Unitholder
Hines Global REIT II Associates Limited Partnership
2800 Post Oak Boulevard, Suite 5000
Houston, Texas 77056-6118

EXHIBIT B
NOTICE OF EXERCISE OF REDEMPTION RIGHT
     In accordance with Section 8.5 of the Fourth Amended and Restated Limited Partnership Agreement (the “Agreement”) of Hines Global REIT II Properties LP, the undersigned hereby irrevocably (i) presents for redemption                      Partnership Units in Hines Global REIT II Properties LP in accordance with the terms of the Agreement and the Redemption Right referred to in Section 8.5 thereof, (ii) surrenders such Partnership Units and all right, title and interest therein, and (iii) directs that the Cash Amount or REIT Shares Amount (as defined in the Agreement) as determined by the General Partner deliverable upon exercise of the Redemption Right be delivered to the address specified below, and if REIT Shares (as defined in the Agreement) are to be delivered, such REIT Shares be registered or placed in the name(s) and at the address(es) specified below.
Dated:  ___________________ ___, _____

_________________________________
(Name of Limited Partner)

_________________________________
(Signature of Limited Partner)

_________________________________
(Mailing Address)

_________________________________
(City) (State) (Zip Code)

Signature Guaranteed by:
_________________________________

If REIT Shares are to be issued, issue to:
Name: _________________________________

Social Security
or Tax I.D. Number: ______________________

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