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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 24, 2020
 
 
Columbia Property Trust, Inc.
Columbia Property Trust Operating Partnership, L.P.
(Exact name of registrant as specified in its charter)
 
MD
 
001-36113
  
20-0068852
DE
 
-
 
20-0068907
(State or other jurisdiction of incorporation)
 
(Commission File Number)
  
(IRS Employer Identification No.)
 
315 Park Avenue South, New York, NY 10010
(Address of principal executive offices, including zip code)
 
(212) 687-0800
(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbols
Name of each exchange on which registered
Common Stock
CXP
NYSE
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Explanatory Note

On January 24, 2020, Columbia Property Trust, Inc. (the "Company") and Columbia Property Trust Operating Partnership, L.P. ("Columbia OP"), completed their previously announced acquisition of Normandy Real Estate Management, LLC ("Normandy"), a developer, operator and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C. (the "Transaction"). The consideration for the Transaction was approximately $100 million and was comprised of a $13.5 million cash payment and the issuance of 3,264,151 Series A Convertible, Perpetual Preferred Units (the "Preferred OP Units") of Columbia OP. The Preferred OP Units will be convertible into newly issued common units of Columbia OP, which are exchangeable for shares of the Company’s common stock, subject to certain terms and conditions.

Item 1.01 Entry into a Material Definitive Agreement.

On January 24, 2020, in connection with the completion of the Transaction, the Company, Columbia OP and the limited partners of Columbia OP entered into the Amended and Restated Agreement of Limited Partnership of Columbia OP (the “A&R OP Agreement”). The Company is the general partner of Columbia OP and, after giving effect to the issuance of the Preferred OP Units in the Transaction, owns 97.2% of the limited partnership interests in Columbia OP.
Ownership of partnership units in Columbia OP generally entitles the holder to share in cash distributions from, and in the profits and losses of, Columbia OP in proportion to such holder’s percentage ownership. The partnership units of Columbia OP are not listed on any exchange or any national market system, and the Company does not intend to make any such listing. Except as otherwise expressly provided in the A&R OP Agreement, the Company, as general partner, will have the exclusive right and full authority and responsibility to manage and operate Columbia OP’s business. Limited partners generally will not have any right to participate in or exercise control or management power over the business and affairs of Columbia OP or the power to sign documents for or otherwise bind Columbia OP. The limited partners will have no power to remove the Company as general partner. Limited partners may require Columbia OP to redeem partnership units for cash, or at the Company’s election, shares of common stock, par value $0.01 per share, of the Company ("Columbia Common Stock”) on a one-for-one basis, at any time beginning one year following the date of the initial issuance of the partnership units.
The A&R OP Agreement also sets forth the rights of the Preferred OP Units. The Preferred OP Units will be entitled to receive distributions equivalent to those declared and paid in respect of a share of Columbia Common Stock, have a liquidation preference of $26.50 per share, and rank senior to the other undesignated partnership units of Columbia OP (referred to as “Common OP Units”). The Preferred OP Units generally are not redeemable by Columbia OP, subject to certain exceptions for federal income tax purposes. At any time following the issuance of the Preferred OP Units (the “Original Issue Date”), holders of Preferred OP Units may convert all or a portion of such units into Common OP Units. In addition, at any time following the second anniversary of the Original Issue Date, each Preferred OP Unit shall automatically be converted into a Common OP Unit on the trading day immediately following the earlier to occur of (i) the time at which the closing price of the Columbia Common Stock on the NYSE has been equal to or greater than $26.50 for three consecutive trading days and (ii) the time at which the volume-weighted average price of a share of Columbia Common Stock has been equal to or greater than $26.50 per share for any period of ten consecutive trading days. Preferred OP Units convert to Common OP Units on a one-for-one basis, subject to adjustments relating to the exchange of Common OP Units for Columbia Common Stock under the A&R OP Agreement.

This description of the A&R OP Agreement above does not purport to be complete and is qualified in its entirety by reference to the full text of the A&R OP Agreement, a copy of which is included herewith as Exhibit 10.1 and the terms of which are incorporated herein by reference.

Item 3.02 Unregistered Sales of Equity Securities.

On January 24, 2020, Columbia OP issued 3,264,151 Preferred OP Units in connection with the closing of the Transaction. These Preferred OP Units were issued in a transaction not involving registration under the Securities Act of 1933, as amended (the "Securities Act"), in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder. Additional information regarding the




terms of the Preferred OP Units is set forth in Item 1.01 of this Current Report on Form 8-K and incorporated herein by reference.

In connection with the issuance of the Preferred OP Units in the Transaction, the Company entered into a registration rights agreement with the holders of the Preferred OP Units (the "Registration Rights Agreement") relating to the shares of Columbia Common Stock underlying the Preferred OP Units (the "registrable securities"). The Registration Rights Agreement provides that the Company will file a registration statement registering the resale of all the registrable securities and also provides for certain other registration rights to the holders of the registrable securities. The description of the Registration Rights Agreement above does not purport to be complete and is qualified in its entirety by the Registration Rights Agreement filed herewith as Exhibit 4.1 to this Current Report on Form 8-K.
 
Item 8.01 Other Events.
 
On January 27, 2020, the Company issued a press release announcing the completion of the Transaction. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.


Item 9.01 Financial Statements and Exhibits.






SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
Columbia Property Trust, Inc.
 
 
 
Dated: January 27, 2020
By:
/s/ James A. Fleming
 
 
James A. Fleming
 
 
Chief Financial Officer
 
 
 

 
 
 
 
Columbia Property Trust, Inc.
 
 
 
Dated: January 27, 2020
By:
/s/ James A. Fleming
 
 
James A. Fleming
 
 
Chief Financial Officer
 
 
 





Exhibit 4.1

FORM OF
REGISTRATION RIGHTS AGREEMENT
Registration Rights Agreement, dated [•], 2019 (this “Agreement”), by and among Columbia Property Trust, Inc., a Maryland real estate investment trust (the “Company”), and each of the parties listed on the signature pages hereto under the caption “Holders” (collectively, with their permitted assignees, as applicable, the “Holders”).
RECITALS
WHEREAS, on October [•], 2019, the Company entered into that certain Contribution Agreement (the “Normandy Contribution Agreement”) by and among, certain of the Holders, the Company and Columbia Property Trust Operating Partnership, L.P. (“Columbia OP”), pursuant to which, subject to the satisfaction of the conditions set forth therein, Columbia OP and a subsidiary of Columbia OP shall acquire all of the interests in certain specified Persons for cash and Series A Convertible, Perpetual Preferred Units (the “Series A Preferred Units”) of Columbia OP;
WHEREAS, concurrently with the execution of this Agreement, each of the Holders acquired Series A Preferred Units in connection with the consummation of the transactions contemplated by the Normandy Contribution Agreement and, as a result thereof, owns of record Series A Preferred Units;
WHEREAS, on the terms and subject to the conditions set forth in the Amended and Restated Agreement of Limited Partnership of Columbia OP, dated as of [•] (the “Amended and Restated Limited Partnership Agreement”), (i) each Series A Preferred Unit is convertible into one Common Unit of Columbia OP (“Common Units”) and (ii) each Common Unit is exchangeable for a cash payment from Columbia OP or, at the Company’s election, one share of the Company’s common stock, par value $0.01 per share (“Common Stock”), with each such conversion and exchange ratio, as applicable, subject to adjustment from time to time as specified in the Amended and Restated Limited Partnership Agreement; and
WHEREAS, in connection with the consummation of the transactions contemplated by the Normandy Contribution Agreement, the Company desires to grant certain registration rights to the Holders with respect to the shares of Common Stock that may be received by Holders pursuant to any exchange of Common Units into shares of Common Stock by exercise of the exchange right set forth in Section 8.5 of the Amended and Restated Limited Partnership Agreement;
NOW THEREFORE, in consideration of these premises, the representations, warranties and covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:




ARTICLE I
DEFINITIONS AND CONSTRUCTION

1.1Definitions. Capitalized terms not otherwise defined in this Agreement shall have the respective meanings set forth below:

“Exchange Notice” has the meaning set forth in the Amended and Restated Limited Partnership Agreement.
“Participating Holders” means, with respect to any Shelf Registration Statement (as defined below) or any prospectus supplement or post-effective amendment thereto, the Holders named therein as selling stockholders whose Registrable Securities are registered for offer and sale pursuant to such Shelf Registration Statement, prospectus supplement or post-effective amendment.
“Person” means any individual, partnership, corporation, limited liability company, unincorporated organization, association, estate, trust or other entity.
“Registrable Securities” means (a) any shares of Common Stock issuable upon the conversion, exchange or exercise of any Common Units beneficially owned by the Holders on the date hereof (including Common Units issuable upon conversion of Series A Preferred Units beneficially owned by the Holders as of the date hereof), without regard to any vesting or other conditions to which such Common Units may be subject, (b) any shares of Common Stock issued or issuable, directly or indirectly, in exchange for or with respect to the Common Stock referenced in clause (a) above by way of stock dividend, stock split or combination of shares or in connection with a reclassification, recapitalization, merger, share exchange or conversion, consolidation or other similar event or reorganization, and (c) any securities issued in replacement of or exchange for any securities described in clause (a) or (b) above. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (i) a registration statement with respect to the sale of such securities shall have been declared effective under the Securities Act and such securities shall have been disposed of in accordance with such registration statement, or (ii) such securities are eligible for sale pursuant to Rule 144 under the Securities Act (without regard to the limitations in Rule 144 under the Securities Act concerning the manner of sale, volume of sales or publication of current public information by the Company).
“SEC” means the U.S. Securities and Exchange Commission.
“Securities Act” means the Securities Act of 1933.
1.2Interpretation; Construction. The Article and Section headings in this Agreement are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provision of this Agreement. References to Articles and Sections in this Agreement, unless otherwise indicated, are references to Articles and Sections of this Agreement. The parties to this Agreement have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to any term or provision of this Agreement, this Agreement shall be construed as if drafted jointly by the parties to this Agreement, and no presumption or burden of proof shall arise favoring or disfavoring any party to this Agreement by virtue of the authorship of any of the terms or




provisions of this Agreement. Any reference to any federal, state, county, local or foreign statute or law shall be deemed to refer to such statute or law as amended from time to time and also to refer to all rules and regulations promulgated thereunder, as may be amended from time to time. For all purposes of and under this Agreement, (i) the word “including” shall be deemed to be immediately followed by the words “without limitation;” (ii) words (including defined terms) in the singular shall be deemed to include the plural and vice versa; (iii) the terms “hereof,” “herein,” “hereto,” “herewith” and any other words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular term or provision of this Agreement; or (iv) the use of the word “or” shall not be exclusive.

ARTICLE II
RESALE SHELF REGISTRATION RIGHTS

2.1Resale Shelf Registration Rights.

(a)Subject to any contractual lock-up applicable to any Holder, promptly following delivery by a Holder of an Exchange Notice pursuant to the Amended and Restated Limited Partnership Agreement, together with a written certification from such Holder, in form and substance reasonably satisfactory to the Company’s legal counsel, certifying to such Holder’s compliance with the factual requirements of Rule 144 under the Securities Act, the Company shall use its reasonable best efforts to (i) cause the Company’s legal counsel to deliver to the transfer agent for the Common Stock an opinion of counsel in such form as the transfer agent deems sufficient to cause any shares of Common Stock issuable pursuant to such Exchange Notice to be issued without legends restricting the transfer of such shares of Common Stock without the registration of such shares of Common Stock under the Securities Act prior to such transfer and (ii) deliver to such Holder shares of Common Stock in book-entry form free of any legend restricting the transfer of such shares of Common Stock without the registration of such shares of Common Stock under the Securities Act prior to such transfer.

(b)If the Company is unable to deliver shares of Common Stock to the applicable Holder free of restrictive legends as contemplated by Section 2.1(a), the Company shall use its reasonable best efforts to file within 30 days following delivery by such Holder of an Exchange Notice, and cause to be declared effective as promptly as possible thereafter, a Registration Statement on Form S-3 (or any successor form thereto providing for “short-form” registration) in accordance with Rule 415 under the Securities Act (such registration statement, a “Shelf Registration Statement”) or one or more prospectus supplements or post-effective amendments to an already effective Shelf Registration Statement to register the offer and sale of all Registrable Securities covered by such Exchange Notice through ordinary course brokerage or dealer transactions not involving an underwritten public offering; provided that if the Company has already filed a Shelf Registration Statement pursuant to Section 2.1(c) or 2.1(d) that is effective, the Company shall file any prospectus supplement with respect to all Registrable Securities covered by such Exchange Notice within five (5) days of receipt of the information reasonably required from the applicable Holder to be included in such prospectus supplement.

(c)No later than 30 days following the one year anniversary of this Agreement, the Company shall use its reasonable best efforts to file a new, or amend an existing, Shelf Registration Statement to permit the registration of all Registrable Securities pursuant to this




Agreement, and to cause such Shelf Registration Statement to be declared effective as promptly as possible thereafter. Any Shelf Registration Statement or amendment to an existing Shelf Registration Statement filed pursuant to this Section 2.1(c) shall include, and may be limited to, such disclosures as are required by Rule 430B under the Securities Act (referring to the unnamed selling security holders in a generic manner by identifying the initial offering of the securities to the Holders) in order to ensure that all of the Holders may be added to such Shelf Registration Statement at a later time through the filing of a prospectus supplement rather than a post-effective amendment.

(d)If the Company files any Shelf Registration Statement for the benefit of one or more Holders, the Company shall include in such Shelf Registration Statement such disclosures as may be required by Rule 430B under the Securities Act (referring to the unnamed selling security holders in a generic manner by identifying the initial offering of the securities to the Holders) in order to ensure that all of the Holders may be added to such Shelf Registration Statement at a later time through the filing of a prospectus supplement rather than a post-effective amendment.

(e)To the extent the Company is a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) (a “WKSI”) at the time any Shelf Registration Statement is filed by the Company pursuant to Section 2.1(b), the Company shall cause such Shelf Registration Statement to be an automatic shelf registration statement (as defined in Rule 405 under the Securities Act) on Form S-3. The Company shall use its commercially reasonable efforts to remain a WKSI (and to not become, and to seek relief from any determination by the SEC that it is, an ineligible issuer (as defined in Rule 405 under the Securities Act)) during the period during which the Registrable Securities remain Registrable Securities. If the Company does not pay the filing fee covering the Registrable Securities at the time the automatic shelf registration statement is filed, the Company agrees to pay such fee at such time or times as the Registrable Securities are to be sold in compliance with the SEC rules. If any automatic shelf registration statement has been outstanding for at least three years, at the end of the third year the Company shall refile a new automatic shelf registration statement covering the Registrable Securities that remain unsold. If at any time when the Company is required to re-evaluate its WKSI status the Company determines that it is not a WKSI, the Company shall use its reasonable best efforts to refile, and cause to be declared effective, the applicable Shelf Registration Statement on Form S-3 (or any successor form thereto providing for “short-form” registration).

(f)Notwithstanding the foregoing, if the Chief Executive Officer of the Company, in consultation with the Company’s lead independent director, in good faith determines that filing a Shelf Registration Statement or prospectus supplement, or causing a Shelf Registration Statement or post-effective amendment to any effective Shelf Registration Statement to become effective, pursuant to this Agreement would (i) materially impede, delay or interfere with any material financing, offer and sale of securities, acquisition, merger, tender offer, business combination, corporate reorganization or other similar significant transaction involving the Company, or (ii) require the Company to disclose material, non-public information that would otherwise not be required to be disclosed under applicable law and that the Company has a bona fide business purpose for preserving as confidential, then the Company may defer its obligation to pursue such filing and effectiveness pursuant to this Agreement for not more than 60 consecutive days following (i) delivery by a Holder of an Exchange Notice pursuant to the Amended and




Restated Limited Partnership Agreement or (ii) in the case of a Shelf Registration Statement to be filed pursuant to Section 2.1(c), the end of such 30-day period.

2.2Registration Procedures. If and whenever the Company is required to effect or cause the registration of any Registrable Securities pursuant to this Agreement, the Company shall, subject to Section 2.1(f), act as expeditiously as possible to:

(a)prepare and make all filings with the SEC required for the consummation of such registration, including (if necessary) preparing and filing a Shelf Registration Statement (including all required exhibits and financial statements), and one or more amendments or supplements thereto, for the disposition of such Registrable Securities as contemplated by Section 2.1, which registration statement shall comply as to form in all material respects with the requirements of the applicable registration form and include all financial statements required by the SEC to be filed therewith, and the Company shall use its reasonable best efforts to cause such Shelf Registration Statement to become effective; provided, however, that the Company shall (i) furnish to the Participating Holders drafts of such filings (including all exhibits thereto and each document incorporated by reference therein to the extent then required by the rules and regulations of the SEC) a reasonable period prior to filing, (ii) consider in good faith such reasonable changes in any such documents prior to the filing thereof as the Participating Holders may provide in writing, and (iii) make such of the representatives of the Company as shall be reasonably be requested by the Participating Holders available for the discussion of such documents; provided, further, that the Company shall not file any registration statement, or supplement or amendment thereto, to which any Participating Holder shall reasonably object;

(b)prepare and file with the SEC such pre- and post-effective amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement continuously effective for so long as any Registrable Securities whose offer and sale are registered thereunder remain outstanding and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all Registrable Securities covered by such registration statement;

(c)furnish, without charge, to each Participating Holder such number of copies of such registration statement, each pre- and post-effective amendment and supplement thereto (in each case including all exhibits), the prospectus included in such registration statement and any other prospectus filed under Rule 424 under the Securities Act in connection therewith, in each case, in conformity with the requirements of the Securities Act, and other documents, as such Participating Holder may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities owned by such Participating Holder (the Company hereby consenting to the use in accordance with all applicable law of each such registration statement (or amendment or post-effective amendment thereto) and each such prospectus by each such Participating Holder in connection with the offering and sale of the Registrable Securities covered by such registration statement or prospectus);

(d)use its commercially reasonable efforts to register or qualify the Registrable Securities covered by such registration statement under such other securities or state “blue sky” laws of such jurisdictions as any Participating Holders shall reasonably request in writing, and do any and all other acts and things that may be reasonably necessary or advisable to enable such




Participating Holders to consummate the disposition of the Registrable Securities in such jurisdictions (including keeping such registration or qualification in effect for so long as such registration statement remains in effect), except that in no event shall the Company be required to qualify to do business as a foreign corporation in any jurisdiction where it would not, but for the requirements of this Section 2.2(d), be required to be so qualified, to subject itself to taxation in any such jurisdiction or to consent to general service of process in any such jurisdiction;

(e)promptly notify each Participating Holder (i) when such registration statement, any post-effective amendment or any prospectus supplement related thereto has been filed with the SEC and, with respect to the registration statement or any post-effective amendment, when the same has become effective; (ii) of any request by the SEC for amendments or supplements to the registration statement or the prospectus related thereto or for additional information; (iii) of the issuance by the SEC of any stop order suspending the effectiveness of the registration statement or the initiation of any proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or state “blue sky” laws of any jurisdiction or the initiation of any proceeding for such purpose; (v) of the existence of any fact of which the Company becomes aware that results in the registration statement or any amendment thereto, the prospectus related thereto or any supplement thereto, any document incorporated therein by reference containing an untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make any statement therein not misleading (which notice shall notify the Participating Holders only of the occurrence of such an event and shall provide no additional information regarding such event to the extent such information would constitute material non-public information); and, if the notification relates to an event described in clause (v), the Company shall promptly prepare and furnish to each such Participating Holder a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein in the light of the circumstances under which they were made not misleading;

(f)cause all such Registrable Securities covered by such registration statement to be listed on the principal securities exchange on which similar securities issued by the Company are then listed (if any), if the listing of such Registrable Securities is then permitted under the rules of such exchange; and

(g)use its reasonable best efforts to prevent the issuance or obtain the prompt withdrawal of any order suspending the effectiveness of the registration statement, or the prompt lifting of any suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction, in each case, as promptly as reasonably practicable.

2.3Registration Expenses. All reasonable and documented out-of-pocket expenses incurred by the Company or any Holder in connection with the performance of or compliance with this Agreement shall be paid by the Company, including, (i) all registration and filing fees, and any other fees and expenses associated with filings required to be made with the SEC or any applicable self-regulatory organization, (ii) all fees and expenses in connection with compliance with any securities or “blue sky” laws, (iii) all printing, duplicating, word processing, messenger,




telephone, facsimile and delivery expenses (including expenses of printing certificates for the Registrable Securities in a form eligible for deposit with The Depository Trust Company or other depositary and of printing prospectuses), (iv) all fees and disbursements of counsel for the Company and of all independent certified public accountants of the Company, (v) all fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange on which similar securities of the Company are then listed (or on which exchange the Registrable Securities are proposed to be listed), (vi) all reasonable and documented fees and disbursements of Goodwin Procter LLP, as counsel for the Holders (or such other counsel as may be designated by the applicable Holder), and (vii) all of the Company’s internal expenses (including all salaries and expenses of its officers and employees performing legal or accounting duties). The Company shall not be required to pay, and each Person that sells securities pursuant to a Shelf Registration Statement hereunder will bear and pay, all sales discounts and commissions applicable to the Registrable Securities sold for such Person’s account and all transfer taxes (if any) attributable to the sale of Registrable Securities.

2.4Required Holder Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Article II that each Participating Holder shall furnish to the Company such information regarding themselves, and the Registrable Securities held by them, as the Company may from time to time reasonably request in order for the Company to effect such registration.

2.5No Inconsistent Agreements. The Company shall not hereafter enter into any agreement with respect to its securities that is inconsistent in any material respect with the rights granted to the Holders in this Agreement.

ARTICLE III
INDEMNIFICATION

3.1Indemnification by the Company. The Company shall (a) indemnify and hold harmless, to the fullest extent permitted by law, each Holder, and such Holder’s officers, directors, managers, members, partners and stockholders, against all losses, claims, actions, damages, liabilities and expenses, joint or several, to which any of the foregoing Persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in any Shelf Registration Statement or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, and (b) reimburse such Persons for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, action, damage or liability, except in the case of clauses (a) and (b) insofar as the same are caused by or contained in any information furnished in writing to the Company by such Holder expressly for use therein or by such Holder’s failure to deliver a copy of the Shelf Registration Statement or any amendments or supplements thereto (if the same was required by applicable law to be so delivered) after the Company has furnished such Holder with a sufficient number of copies of the same prior to any written confirmation of the sale of Registrable Securities. This indemnity shall be in addition to any liability the Company may otherwise have.





3.2Indemnification by the Holders. In connection with any registration in which a Holder is participating, each such Holder shall furnish to the Company in writing such information as the Company may reasonably request for use in connection with any Shelf Registration Statement, subject to the final sentence of this Section 3.1. Each Holder shall (a) indemnify and hold harmless, to the fullest extent permitted by law, the Company, each officer, director and stockholder of the Company, against any losses, claims, actions, damages, liabilities or expenses resulting from any untrue or alleged untrue statement of material fact contained in the Shelf Registration Statement or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, and (b) reimburse such Persons for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, action, damage or liability, but only in the case of clauses (a) and (b) to the extent that such untrue statement or omission was made in reliance on and in conformity with any information so furnished in writing by such Holder expressly for use in such Shelf Registration Statement or any amendment thereof or supplement thereto; provided that the obligation to indemnify and reimburse expenses shall be several, not joint and several, for each Holder and shall not exceed an amount equal to the net proceeds actually received by such Holder from the sale of Registrable Securities pursuant to such Shelf Registration Statement. This indemnity shall be in addition to any liability such Holder may otherwise have. The Company and the Holders hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by the applicable Holders, the only information furnished or to be furnished to the Company for use in any Shelf Registration Statement or prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated therewith are statements specifically relating to (i) transactions or the relationship between the applicable Holders and its Affiliates, on the one hand, and the Company, on the other hand, (ii) the beneficial ownership of Registrable Securities by such Holder and its Affiliates, (iii) the name and address of such Holder and (iv) any additional information about such Holder or the plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document.

3.3Procedures for Indemnification. Promptly after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to in this Article III, such indemnified party shall, if a claim pursuant to this Article III in respect thereof is made against an indemnifying party, give written notice to the latter of the commencement of such action. The failure of any indemnified party to notify an indemnifying party of any such action shall not (unless such failure shall have materially prejudiced the indemnifying party through the forfeiture of substantive rights or defenses) relieve the indemnifying party from any liability in respect of such action that it may have to such indemnified party hereunder. In case any such action is brought against an indemnified party, the indemnifying party shall be entitled to participate in and to assume the defense of the claims in any such action that are subject or potentially subject to indemnification hereunder, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after written notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof; provided that, if any indemnified party shall have reasonably concluded, based on the advice of counsel, that there are one or more legal or equitable defenses available to such indemnified party which are additional to or conflict with those available to the indemnifying party, or that such claim or




litigation involves or could have an effect upon matters beyond the scope of the indemnity provided hereunder, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party without such indemnified party’s prior written consent (but, without such consent, shall have the right to participate therein with counsel of its choice) and such indemnifying party shall reimburse such indemnified party for that portion of the fees and expenses of any counsel retained by the indemnified party which is reasonably related to the matters covered by the indemnity provided hereunder. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, (i) it shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim, and (ii) no indemnified party shall, without the prior written consent of the indemnifying party, settle or compromise or consent to the entry of any judgment with respect to any action in respect of which indemnification or contribution could be sought under this Article III unless such consent includes a waiver by such indemnified party of its right to pursue indemnification from the indemnifying party under this Article III.

3.4Other Remedies. If the indemnification provided for in this Article III is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, damage, liability or action referred to in this Article III, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amounts paid or payable by such indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other hand in connection with the statements or omissions which resulted in such loss, claim, damage, liability or action as well as any other relevant equitable considerations; provided that the maximum amount of liability in respect of such contribution shall be limited, in the case of each Holder, to an amount equal to the net proceeds actually received by such Holder from the sale of Registrable Securities effected pursuant to the applicable registration. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties agree that it would not be just and equitable if contribution pursuant hereto were determined by pro rata allocation or by any other method or allocation which does not take account of the equitable considerations referred to herein. No Person guilty or liable of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

ARTICLE IV
MISCELLANEOUS

4.1Rule 144. The Company covenants that so long as it remains subject to the reporting provisions of the Securities Exchange Act of 1934 (the “Exchange Act”), it will timely file the reports required to be filed by it under the Securities Act or the Exchange Act (including the reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144 under the Securities Act, as such rule may be amended) and will use its reasonable best




efforts to take such further action as may be reasonably required to enable the Holders to sell Registrable Securities pursuant to Rule 144 under the Securities Act.

4.2Amendments and Waivers. Any provision of this Agreement may be amended, modified, supplemented or waived with the written approval of each of the Company and the Holders holding at least ninety percent (90%) of the Registrable Securities hereunder. Any amendment or waiver effected in accordance with this Section 4.2 shall be binding upon each Holder and the Company. No delay or omission to exercise any right, power or remedy accruing to any party, upon any breach or default of any other party under this Agreement will impair any such right, power or remedy of such party, nor will it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring, nor will any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring, nor will any provision of this Agreement be implied from any course of dealing between the parties hereto. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach of default under this Agreement or any waiver on the part of any party of any provisions or conditions of this Agreement must be made in writing and will be effective only to the extent specifically set forth in such writing.

4.3Notices. All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given (a) when personally delivered, (b) when transmitted by electronic mail if the sender on the same day sends a confirming copy of such notice in accordance with immediately following clause (c) or (c) the day on which the same has been delivered to the intended recipient if sent prepaid by a nationally recognized overnight delivery service (with tracking capability), in each case to the respective parties at the address set forth below, or at such other address as such party may specify by written notice to the other party hereto:

If to the Company:

[•]
[•]
[•]
Attn: [•]
Email: [•]
With a copy (which shall not constitute notice) to:    

[•]
[•]
[•]
Attn: [•]
Email: [•]
If to the Holders, as directed on the applicable signature page hereto.





4.4Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the Company and its successors and assigns and each Holder and his, her and its respective successors, permitted assigns and heirs, whether so expressed or not. This Agreement may not be assigned by the Company, without the prior written consent of the holders of at least ninety percent (90%) of the Registrable Securities. Each Holder shall have the right to assign all or part of its or his rights and obligations under this Agreement to any Person (i) to whom such Holder transfers Registrable Securities, Series A Preferred Units or Common Units and (ii) who executes a written joinder with the Company agreeing to be bound by the terms and conditions of this Agreement, which joinder shall be in a form reasonably satisfactory to the Company. No Person shall have any rights under this Agreement until a joinder contemplated by this Section 4.4 has been executed by such Person and the Company.

4.5Entire Agreement. This Agreement and the other agreements referenced herein constitute the entire agreement among the parties hereto with respect to the subject matter hereof, and supersede any prior agreement or understanding among them relating to such matter, whether oral or written.

4.6Governing Law. This Agreement shall in all respects be governed by, and construed in accordance with, the laws of the State of New York applicable to agreements made and to be performed entirely within such State, including all matters of construction, validity and performance.

4.7Jurisdiction; Court Proceedings; Waiver of Jury Trial.
 
(a)AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

(b)EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE NON‑EXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT LOCATED IN NEW YORK COUNTY IN THE STATE OF NEW YORK, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. EACH OF THE PARTIES HERETO FURTHER AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL TO SUCH PARTY’S RESPECTIVE ADDRESS SET FORTH ABOVE WILL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING WITH RESPECT TO ANY MATTERS TO WHICH IT HAS SUBMITTED TO JURISDICTION IN THIS PARAGRAPH. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY IN ANY FEDERAL OR STATE COURT LOCATED IN NEW YORK COUNTY IN THE STATE OF NEW YORK, AND HEREBY AND THEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES




AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

4.8Counterparts. This Agreement may be executed by facsimile or .pdf signatures and in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument.

4.9Severability. Should any provision of this Agreement or the application thereof to any Person or circumstance be held invalid or unenforceable to any extent (a) such provision shall be ineffective to the extent, and only to the extent, of such unenforceability and shall be enforced to the greatest extent permitted by law, (b) such unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision as applied (i) to other Persons or circumstances or (ii) in any other jurisdiction, and (c) such unenforceability shall not affect or invalidate any other provision of this Agreement.

4.10Remedies; Specific Performance. All remedies, either under this Agreement or by law or otherwise afforded to the parties hereunder, shall be cumulative and not alternative. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, the parties agree that, in addition to any other remedies, each party shall be entitled to enforce the terms of this Agreement by a decree of specific performance without the necessity of proving the inadequacy of money damages as a remedy.

4.11Further Assurances. Each party hereto shall do and perform or cause to be done and performed all such further acts and things and shall execute and deliver all such other agreements, certificates, instruments, and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

4.12Independent Nature of the Rights and Obligations of Holders. The rights and obligations of each Holder hereunder are several and not joint with the obligations of any Holder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. The decision of each Holder to enter into this Agreement has been made by such Holder independently of any Holder. Nothing contained herein, and no action taken by any Holder pursuant hereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated hereby and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company will not assert any such claim, with respect to such obligations or the transactions contemplated hereby.

4.13Termination . This Agreement shall terminate and be of no further force and effect when there shall no longer be any Registrable Securities outstanding; provided that Section 2.3 and Article III shall survive any such termination.





[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]





IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed and delivered in its name and on its behalf, all as of the day and year above first written.
[•]


By:        
Name:
Title:



















[Signature Page - Registration Rights Agreement]





IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed and delivered in its name and on its behalf, all as of the day and year above first written.
HOLDER:
[•]


By:        
Name:
Title:

Contact Information:
[•]
[•]
[•]
Attention: [•]
Email: [•]






























[Signature Page - Registration Rights Agreement]


Exhibit 10.1













AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

OF

COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.




TABLE OF CONTENTS
 
 
Page

ARTICLE I
DEFINED TERMS
2

 
 
 
ARTICLE II
PARTNERSHIP FORMATION AND IDENTIFICATION
10

2.01

Formation    
10

2.02

Name, Office and Registered Agent    
10

2.03

Partners
10

2.04

Term and Dissolution    
11

2.05

Filing of Certificate and Perfection of Limited Partnership    
11

2.06

Certificates Describing Partnership Units    
11

 
 
 
ARTICLE III
BUSINESS OF THE PARTNERSHIP    
12

 
 
 
ARTICLE IV
CAPITAL CONTRIBUTIONS AND ACCOUNTS    
12

4.01

Capital Contributions
12

4.02

Additional Capital Contributions and Issuance of Additional Equity    
13

4.03

Additional Funding    
15

4.04

Capital Accounts    
15

4.05

Percentage Interests
16

4.06

No Interest on Contributions    
16

4.07

Return of Capital Contributions    
16

4.08

No Third Party Beneficiary    
16

 
 
 
ARTICLE V
PROFITS AND LOSSES; DISTRIBUTIONS    
17

5.01

Allocation of Profits and Losses    
17

5.02

Distribution of Cash    
19

5.03

REIT Distribution Requirements    
21

5.04

No Right to Distributions In Kind
21

5.05

Limitations of Return of Capital Contributions
21

5.06

Distributions Upon Liquidation
21

5.07

Substantial Economic Effect
21

5.08

Distributions to Reflect Issuance of Additional Equity
22

 
 
 
ARTICLE VI
RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER
22

6.01

Management of the Partnership
22

6.02

Delegation of Authority
24

6.03

Indemnification
25





6.04

Liability of the General Partner
26

6.05

Reimbursement of General Partner
27

6.06

Outside Activities
27

6.07

Employment or Retention of Affiliates
27

6.08

General Partner Participation    
28

6.09

Title to Partnership Assets
28

6.10

Miscellaneous
28

 
 
 
ARTICLE VII
CHANGES IN GENERAL PARTNER
29

7.01

Transfer of the General Partner’s Partnership Interest
29

7.02

Admission of a Substitute or Additional General Partner
30

7.03

Effect of Bankruptcy, Withdrawal, Death or Dissolution of a General Partner
31

7.04

Removal of a General Partner
31

 
 
 
ARTICLE VIII
RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS
32

8.01

Management of the Partnership
32

8.02

Power of Attorney
33

8.03

Limitation on Liability of Limited Partners
33

8.04

[Reserved]
34

8.05

Exchange Right
34

8.06

Outside Activities of Limited Partners
35

8.07

Return of Capital
36

 
 
 
ARTICLE IX
TRANSFERS AND REDEMPTIONS OF LIMITED PARTNERSHIP INTERESTS
36

9.01

Purchase for Investment
36

9.02

Restrictions on Transfer of Limited Partnership Interests
36

9.03

Admission of Substitute Limited Partner
38

9.04

Rights of Assignees of Partnership Interests
39

9.05

Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner
39

9.06

Joint Ownership of Interests
39

9.07

Admission of Additional Limited Partners
40

9.08

Redemption of Partnership Units
40

 
 
 
ARTICLE X
BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS
40

10.01

Books and Records
40

10.02

Custody of Partnership Funds, Bank Accounts
41

10.03

Fiscal and Taxable Year
41

10.04

Annual Tax Information and Report
41



10.01

Books and Records
40

10.02

Custody of Partnership Funds, Bank Accounts
41

10.03

Fiscal and Taxable Year
41

10.04

Annual Tax Information and Report
41

10.05

Partnership Representative, Tax Elections, Special Basis Adjustments
41

10.06

Reports to Limited Partners
44

 
 
 
ARTICLE XI
AMENDMENT OF AGREEMENT; MERGER
44

 
 
 
ARTICLE XII
GENERAL PROVISIONS
45

12.01

Notices
45

12.02

Survival of Rights
45

12.03

Additional Documents
45

12.04

Severability
45

12.05

Entire Agreement
45

12.06

Pronouns and Plurals
45

12.07

Headings
45

12.08

Counterparts
45

 
 
 
EXHIBIT A
48

The information in this exhibit has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed
[Exhibit A is maintained within the books and records of the Partnership]
48

EXHIBIT B
Notice of Exercise of Exchange Right
49

EXHIBIT C
Relevant Investments
49

EXHIBIT D
Notice of Mandatory Conversion
51

EXHIBIT E
Notice of Exercise of Conversion
52

EXHIBIT F
Notice of Request for Redemption
53

 
 
 
SCHEDULE A
SERIES A CONVERTIBLE, PERPETUAL PREFERRED UNITS ADDENDUM (THE "ADDENDUM")
1

Designation and Number
1







AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP
OF
COLUMBIA PROPERTY TRUST OPERATING PARTNERSHIP, L.P.

This Amended and Restated Agreement of Limited Partnership of Columbia Property Trust Operating Partnership, L.P. (formerly known as Wells Operating Partnership II, L.P.) is entered into as of this 24th day of January, 2020 between Columbia Property Trust, Inc. (formerly known as Wells Real Estate Investment Trust II, Inc.), a Maryland corporation (the “General Partner”) and the Limited Partner(s) set forth on Exhibit A hereto (this “Agreement”).
RECITALS
WHEREAS, on July 3, 2003, Columbia Property Trust Operating Partnership, L.P. (the “Partnership”) was formed 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 effective as of July 3, 2003;
WHEREAS, on October 9, 2003, the General Partner and Wells Capital, Inc. (the “Initial Limited Partner”) entered into the Limited Partnership Agreement of the Partnership (the “Prior Partnership Agreement”);
WHEREAS, on June 30, 2011, the Initial Limited Partner assigned all of its interest in the Partnership to Wells OP II LP, LLC pursuant to that certain Contribution Agreement dated June 30, 2011 (the “Contribution Agreement”);
WHEREAS, in connection with the Contribution Agreement, the General Partner and Wells OP II, LLC entered into that First Amendment to the Prior Partnership Agreement (the “First Amendment”);
WHEREAS, on February 25, 2013, the General Partner amended its charter to change its name to Columbia Property Trust, Inc. and the Partnership amended its certificate of limited partnership to change its name to Columbia Property Trust Operating Partnership, L.P., and subsequently, on August 26, 2015, Wells OP II, LLC amended its certificate of limited partnership to change its name to Columbia OP LP, LLC (collectively, the “Name Change”);
WHEREAS, in connection with the Name Change, the General Partner and Columbia OP LP, LLC entered into that Second Amendment (Corrective) to the Prior Partnership Agreement, dated November 27, 2017 and effective as of February 28, 2013 (the “Second Amendment”);
WHEREAS, on October 16, 2019, the General Partner and Partnership entered into that certain Contribution Agreement with Francis Wentworth, Jr., David Welsh, Jeffrey Gronning, UD NREM Investment, LLC, Normandy Real Estate Management, LLC (“Normandy”), Normandy Ventures Partners III, LLC (“NVP III”), Normandy Ventures Partners IV, LLC (“NVP IV”), Normandy Ventures Partners OZF, LLC (“NVP OZF” and, together with Normandy, NVP III and NVP IV, the “Acquired Entities”), and, as to which, upon their formation as subsidiaries of the Partnership, Columbia Development TRS 13, LLC, a Delaware limited liability company (“TRS 13”), and Columbia Development TRS 87, LLC, a Delaware limited liability company (“TRS 87”, and together with TRS 13, the “TRS Entities”), have become parties (the “Normandy Contribution



Agreement”), pursuant to which the Partnership and the TRS Entities acquired the interests in the Acquired Entities for cash and Series A Preferred Units (as defined below) in the Partnership;
WHEREAS, as a result of the transactions taken pursuant to the Normandy Contribution Agreement, the Partnership will be treated for federal, state and local income tax purposes as a newly formed partnership;
WHEREAS, pursuant to Article XI of the Prior Partnership Agreement, the General Partner and Columbia OP LP, LLC now desire to amend and restate the Prior Partnership Agreement, as amended by the First Amendment and as further amended by the Second Amendment, in its entirety pursuant to the terms hereof; and
WHEREAS, this Agreement shall constitute the “partnership agreement” (within the meaning of the Act) of the Partnership and shall be binding upon all Persons now or at any time hereafter who are Partners.
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 as follows:
ARTICLE I
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 4.03 hereof.
“Additional Limited Partner” means a Person admitted to the Partnership as a Limited Partner pursuant to Section 9.07 and who is shown as such on the books and records of the Partnership.
“Addendum” has the meaning set forth in Section 4.02(a)(i) hereof.
“Additional Equity” has the meaning set forth in Section 4.02(a)(i) hereof. For the avoidance of doubt, except to the extent the context requires otherwise, Additional Equity shall include the Series A Preferred Units.
“Additional Securities” has the meaning set forth in Section 4.02(a)(ii) hereof.
“Adjustment Event” means any of the following events: (A) the Partnership makes a distribution on all outstanding Common Units in Partnership Units, (B) the Partnership subdivides the outstanding Common Units into a greater number of Common Units or combines the outstanding Common Units into a smaller number of Common Units, or (C) the Partnership issues any Partnership Units in exchange for its outstanding Common Units by way of a reclassification

2


or recapitalization of its Common Units. If more than one Adjustment Event occurs, the adjustment required to be made pursuant to this Agreement need be made only once using a single formula that takes into account each and every Adjustment Event as if all Adjustment Events occurred simultaneously. For the avoidance of doubt, the following shall not be Adjustment Events: (x) the issuance of Partnership Units in a financing, reorganization, acquisition or other similar business transaction, (y) the issuance of Partnership Units pursuant to any employee benefit or compensation plan or distribution reinvestment plan, or (z) the issuance of any Partnership Units to the General Partner in respect of a capital contribution to the Partnership of proceeds from the sale of securities by the General Partner.
“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, and (iii) to the extent not included in clause (ii) above, REIT Expenses.
“Affiliate” means, (i) any Person that, directly or indirectly, controls or is controlled by or is under common control with such Person, (ii) any other Person that owns, beneficially, directly or indirectly, 10% or more of the outstanding capital stock, shares or equity interests of such Person, or (iii) any officer, director, employee, partner or trustee of such Person or any Person controlling, controlled by or under common control with such Person (excluding trustees and persons serving in similar capacities who are not otherwise an Affiliate of such Person). For the purposes of this definition, “control” (including the correlative meanings of the terms “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, through the ownership of voting securities or partnership interests or otherwise.
“Agreed Value” means the fair market value of a Partner’s non-cash Capital Contribution as of the date of the 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, the applicable class of Partnership Units and the Agreed Value of non-cash Capital Contributions as of the date of contribution is set forth on Exhibit A.
“Agreement” means this Amended and Restated Agreement of Limited Partnership of the Partnership, as amended from time to time.
“Articles of Incorporation” means the Articles of Incorporation of the General Partner filed with the Maryland State Department of Assessments and Taxation, as amended or restated from time to time.
“Available Cash” means, with respect to any period for which such calculation is being made:
(a) all cash revenues and funds received by the Partnership from whatever source (excluding the proceeds of any Capital Contribution) plus the amount of any reduction (including,

3


without limitation, a reduction resulting because the General Partner determines such amounts are no longer necessary) in reserves of the Partnership, which reserves are referred to in clause (b)(iv) below;
(b) less the sum of the following (except to the extent made with the proceeds of any Capital Contribution): (i) all interest, principal and other debt payments made during such period by the Partnership, (ii) all cash expenditures (including capital expenditures) made by the Partnership during such period, (iii) investments in any entity (including loans made thereto) to the extent that such investments are permitted under this Agreement and are not otherwise described in clauses (b)(i) or (ii), and (iv) the amount of any increase in reserves established during such period which the General Partner determines is necessary or appropriate.
Notwithstanding the foregoing, Available Cash shall not include any cash received or reductions in reserves, or take into account any disbursements made or reserves established, after commencement of the dissolution and liquidation of the Partnership.
“Capital Account” has the meaning set forth in Section 4.04 hereof.
“Capital Contribution” means the total amount of cash, cash equivalents, and the Agreed Value of any property or other asset 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.
“Carrying Value” means, with respect to any asset of the Partnership, the asset’s adjusted 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, 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) and (g), as provided for in Section 4.04 hereof. 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 definition of Profits and Losses 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 Value of the REIT Shares Amount on the date of receipt by the General Partner of a Notice of Exchange.
“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 8.02 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.

4


“Code” means the Internal Revenue Code of 1986, as amended, and as hereafter amended from time to time. Reference to any particular provision of the Code shall mean that provision in the Code at the date hereof and any successor provision of the Code.
“Combined Percentage Interest” means, with respect to one or more classes of Partnership Units, the interest of each Partner as determined by reference to a fraction, the numerator representing the number of Partnership Units held by such Partner assuming that Additional Equity, if any, is converted to Common Units at such applicable time of determination and the denominator representing the aggregate number of Common Units issued or otherwise issuable upon conversion of the Additional Equity at such applicable time of determination. The Combined Percentage Interest of each Partner shall be as set forth on Exhibit A hereto, as such Exhibit may be amended from time to time.
“Common Unit” means Partnership Units that are not entitled to any preferences with respect to any other class or series of Partnership Units as to distribution or voluntary or involuntary liquidation, dissolution or winding-up of the Partnership.
“Common Unitholder” means a Partner that holds Common Units.
“Commission” means the U.S. Securities and Exchange Commission.
“Conversion Factor” means 1.0, provided that (A) 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 REIT Shares, the Conversion Factor shall be adjusted by multiplying the Conversion Factor (as in effect immediately prior to such adjustment) 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, (B) in the event that an entity other than an Affiliate of the General Partner shall, subject to the terms of Section 7.01, 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, and (C) in the event that the General Partner, by dividend or otherwise, distributes to all holders of its REIT Shares evidences of its indebtedness or assets (including securities, but excluding any dividend or distribution referred to in clause (A)(i) above), which evidences of indebtedness or assets relate to assets not received by the General Partner or its Subsidiaries pursuant to a pro rata distribution by the Partnership, then the Conversion Factor shall be adjusted to equal the amount determined by multiplying the Conversion Factor in effect immediately prior to the close of business on the date fixed for determination of shareholders entitled to receive such distribution by a fraction the numerator of which shall be the Value of a REIT Share on the date fixed for such determination and the denominator of which shall be the Value of a REIT Share on the date fixed for such determination less the then fair market value (as determined by the General

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Partner in good faith) of the portion of the evidences of indebtedness or assets so distributed applicable to one REIT Share. 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 Exchange 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 Exchange immediately prior to the record date for such dividend, distribution, subdivision or combination.
“Defaulting Limited Partner” has the meaning set forth in Section 5.02(b) hereof.
“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.
“Exchange Right” has the meaning set forth in Section 8.05(a) hereof.
“Exchanging Partner” has the meaning set forth in Section 8.05(a) hereof.
“General Partner” means Columbia Property Trust, 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 Partnership Interest” means a Partnership Interest held by the General Partner that is a general partnership interest.
“General Partner Loan” has the meaning set forth in Section 5.02(b) hereof.
“Imputed Underpayment Amount” has the meaning set forth in Section 5.02(c).
“Indemnitee” means the General Partner or a director, officer or employee of the General Partner or Partnership and such other Persons (including affiliates of the General Partner or the Partnership) as the General Partner may designate from time to time, in its sole and absolute discretion.
“IRS” means the United States Internal Revenue Service.
“Limited Partner” means any Person named as a Limited Partner on Exhibit A attached hereto, as such Exhibit may be amended from time to time, and any Person who becomes a

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Substitute Limited Partner or Additional 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.
“Losses” has the meaning set forth in Section 5.01(i) hereof.
“Noncompensatory Option” means a “noncompensatory option” within the meaning of Regulations Sections 1.721-2(f) and 1.761-3(b)(2). For purposes of clarification, the conversion feature of the Series A Preferred Units shall be treated as Noncompensatory Options.
“Normandy Contribution Agreement” has the meaning set forth in the recitals hereof.
“Notice of Exchange” means the Notice of Exercise of Exchange Right substantially in the form attached as Exhibit B hereto.
“NYSE” means the New York Stock Exchange.
“Offer” has the meaning set forth in Section 7.01(c)(ii) hereof.
“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).
“Partnership” means Columbia Property Trust Operating Partnership, L.P., a Delaware limited partnership.
“Partnership Audit Rules” means the partnership audit provisions of Subchapter C of Chapter 63 of the Code, together with applicable Treasury Regulations and other regulatory or administrative guidelines.
“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 5.02(b) 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

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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 5.02 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 Representative” has the meaning set forth in Section 10.05(a) hereof.
“Partnership Unit” means a fractional, undivided share of the Partnership Interests of all Partners issued hereunder. The allocation of Partnership Units among the Partners in each applicable class of Partnership Units shall be as set forth on Exhibit A, as such Exhibit may be amended from time to time.
“Percentage Interest” means, as to a Partner holding a class or series of Partnership Units, its interest in such class or series as determined by dividing the Partnership Units of such class or series owned by such Partner by the total number of Partnership Units of such class or series then outstanding as specified on Exhibit A. If the Partnership issues more than one class or series of Partnership Units, the interest in the Partnership among the classes or series of Partnership Interests shall be determined as set forth in the amendment to the Partnership Agreement setting forth the rights and privileges of such additional classes or series of Partnership Units, if any. The Percentage Interest of each Partner shall be as set forth on Exhibit A hereto, as such Exhibit may be amended from time to time.
“Person” means any individual, partnership, limited liability company, corporation, joint venture, trust or other entity.
“Profits” has the meaning set forth in Section 5.01(i) hereof.
“Regulations” means the Treasury Regulations issued 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.
“REIT” means a real estate investment trust under Sections 856 through 860 of the Code.
“REIT Expenses” means (i) costs 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, any and all costs, expenses or fees payable to any director, officer, or employee of the General Partner, (ii) costs and expenses relating to any public 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 of securities, and any costs and expenses associated with any claims made by any holders of such securities or any underwriters or placement agents thereof, (iii) costs and expenses associated with any repurchase of any securities by the General

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Partner, (iv) 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, (v) 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, (vi) 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, (vii) costs and expenses incurred by the General Partner relating to any issuing or redemption of Partnership Interests, and (viii) 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.
“REIT Share” means a common share of beneficial interest in the General Partner (or Successor Entity, as the case may be).
“REIT Shares Amount” means a number of REIT Shares equal to the product of the number of Common Units offered for exchange by an Exchanging Partner, multiplied by the Conversion Factor as adjusted to and including the Specified Exchange 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 REIT Shares, or any other securities or property (collectively, the “rights”), and the rights have not expired at the Specified Exchange Date, then the REIT Shares Amount shall also include the rights issuable to a holder of the REIT Shares Amount of REIT Shares on the record date fixed for purposes of determining the holders of REIT Shares entitled to rights.
“Restriction Notice” has the meaning set forth in Section 8.05(e) hereof.
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
“Series A Unitholder” means a Partner that holds Series A Preferred Units.
“Series A Preferred Units” means Partnership Units with the rights, powers and duties set forth herein, designated as such on Schedule A and expressed in the number set forth on Exhibit A, as such exhibit may be amended from time to time.
“Specified Exchange Date” means the tenth (10th) business day after receipt by the General Partner of a Notice of Exchange.
“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.
“Substitute Limited Partner” means any Person admitted to the Partnership as a Limited Partner pursuant to Section 9.03 hereof.
“Successor Entity” has the meaning set forth in the definition of “Conversion Factor” contained herein.

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“Survivor” has the meaning set forth in Section 7.01(d) hereof.
“Transaction” has the meaning set forth in Section 7.01(c) hereof.
“Transfer” has the meaning set forth in Section 9.02(a) hereof.
“Value” means, with respect to any security, the average of the daily market price of such security for the ten consecutive trading days immediately preceding the date of such valuation. The market price for each such trading day shall be: (i) if the security is listed or admitted to trading on any securities exchange or the NYSE, the sale price, regular way, on such day, or if no such sale takes place on such day, the average of the closing bid and asked prices, regular way, on such day, (ii) if the security is not listed or admitted to trading on any securities exchange or the NYSE, the last reported sale price on such day or, if no sale takes place on such day, the average of the closing bid and asked prices on such day, as reported by a reliable quotation source designated by the General Partner, or (iii) if the security is not listed or admitted to trading on any securities exchange or the NYSE and no such last reported sale price or closing bid and asked prices are available, the average of the reported high bid and low asked prices on such day, as reported by a reliable quotation source designated by the General Partner, or if there shall be no bid and asked prices on such day, the average of the high bid and low asked prices, as so reported, on the most recent day (not more than ten days prior to the date in question) for which prices have been so reported; provided that if there are no bid and asked prices reported during the ten days prior to the date in question, the value of the security shall be determined by the General Partner acting in good faith on the basis of such quotations and other information as it considers, in its reasonable judgment, appropriate. In the event the security includes any additional rights, then the value of such rights shall be determined by the General Partner acting in good faith on the basis of such quotations and other information as it considers, in its reasonable judgment, appropriate.
ARTICLE II
PARTNERSHIP FORMATION AND IDENTIFICATION

2.01    Formation. The Partnership was formed as a limited partnership pursuant to the Act and upon the terms and conditions set forth in this Agreement.

2.02    Name, Office and Registered Agent. The name of the Partnership is Columbia Property Trust Operating Partnership, L.P. The specified office and place of business of the Partnership shall be 1170 Peachtree Street, NE, Suite 600, Atlanta, Georgia 30309. 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, Corporation Trust Center, 1209 Orange Street, Wilmington, New Castle County, 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.

2.03    Partners.

(a)The General Partner of the Partnership is Columbia Property Trust, Inc., a Maryland corporation. Its principal place of business is the same as that of the Partnership.

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(b)The Limited Partners are those Persons named as a Limited Partner on Exhibit A attached hereto, as amended from time to time, or any Substitute Limited Partner or Additional Limited Partner.

2.04    Term and Dissolution.

(a)    The Partnership shall have perpetual duration, except that the Partnership shall be dissolved upon 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, death, removal or withdrawal of a General Partner unless the business of the Partnership is continued pursuant to Section 7.03(b) hereof; provided that if a General Partner is on the date of such occurrence a partnership, the dissolution of such General Partner as a result of the dissolution, death, withdrawal, removal or Event of Bankruptcy of a partner in such partnership shall not be an event of dissolution of the Partnership if the business of such General Partner is continued by the remaining partner or partners, either alone or with additional partners, and such General Partner and such partners comply with any other applicable requirements of this Agreement;

(ii)The passage of 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 7.03(b) hereof), the General Partner (or its trustee, receiver, successor or legal representative) shall amend or cancel the Certificate and liquidate the Partnership’s assets and apply and distribute the proceeds thereof in accordance with Section 5.06 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.

2.05    Filing of Certificate and Perfection of Limited Partnership. The General Partner shall execute, acknowledge, record and file at the expense of the Partnership, the Certificate and any and all amendments thereto 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.

2.06    Certificates Describing Partnership Unit. At the request of a Limited Partner, the General Partner, at its option, may issue a certificate summarizing the terms of such Limited Partner’s interest in the Partnership, including the number of Partnership Units owned and the Percentage Interest represented by such Partnership Units as of the date of such certificate. Any

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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 represented by this certificate are governed by and transferable only in accordance with the provisions of the Amended and Restated Agreement of Limited Partnership of Columbia Property Trust Operating Partnership, L.P., as amended from time to time.
ARTICLE III
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, to the extent determined by the General Partner, (ii) to enter into any partnership, joint venture 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 cease qualifying as a REIT, the Partners acknowledge that the General Partner’s current status as a REIT and 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 Articles of Incorporation. The General Partner 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.
ARTICLE IV
CAPITAL CONTRIBUTIONS AND ACCOUNTS

4.01    Capital Contributions. The General Partner and the Limited Partners have made capital contributions to the Partnership in exchange for the Partnership Interests set forth opposite their names on Exhibit A, as amended from time to time. The Partners shall own Partnership Units of the class or series and in the amounts set forth on Exhibit A and shall have a Percentage Interest in the class or series as set forth on Exhibit A. Exhibit A may be amended from time to time by the General Partner, with no required consent or approval of the Limited Partners, to the extent necessary to reflect accurately exchanges, redemption, Capital Contributions, the issuance of Additional Equity or similar events impacting Exhibit A. However, the General Partner may keep Exhibit A current through separate revisions to the books and records of the Partnership that reflect periodic changes to the capital contributions made by the General Partner or the Limited Partners and corresponding changes to the Partnership Interests of the General Partner and the Limited Partners, as applicable, without preparing a formal amendment to this Agreement, provided that such an amendment shall be prepared upon the written request of any Limited Partner.

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4.02    Additional Capital Contributions and Issuance of Additional Equity. Except as provided in this Section 4.02 or in Section 4.03, 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 4.02.

(a)Issuances of Additional Equity.

(i)General. The General Partner is hereby authorized to cause the Partnership to issue such additional Partnership Interests (“Additional Equity”) 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. Any Additional Equity issued thereby may be issued in one or more 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 the Common Units, 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 Equity shall be issued to the General Partner unless:

(1)(A) the Additional Equity is issued in connection with an issuance of REIT Shares of or other interests (including other classes or series of shares) 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 Equity issued to the General Partner by the Partnership in accordance with this Section 4.02 and (B) the General Partner makes 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 Equity is 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 Equity is issued to all Partners in proportion to their respective Combined Percentage Interests.

In addition, the General Partner may acquire Partnership Interests from other Partners pursuant to this Agreement. In the event that the Partnership issues Partnership Interests pursuant to this Section 4.02(a), the General Partner shall make such revisions to this Agreement (without any requirement of receiving approval of the Limited Partners) as it deems necessary to give effect

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to the designations, preferences and other rights pertaining to such Additional Equity and make filings under the Act or otherwise in order to reference the existence or creation of a class or series of Additional Equity unless the consent of a Partner is specifically required by this Agreement or the Act after giving effect to the terms of this Agreement. Notwithstanding anything in this Agreement to the contrary, the “Series A Convertible, Perpetual Preferred Units Addendum” attached hereto as Schedule A (the “Addendum”) is hereby adopted and made part of this Agreement; provided however, that when the last Series A Preferred Unit has been converted into one or more Common Units, in accordance with the terms of the Addendum, such that as a result, no Series A Preferred Units remain outstanding, the Addendum shall terminate automatically and shall no longer be a part of this Agreement, it being understood that any right of a Series A Unitholder that accrued prior to such termination, and that has not been satisfied in advance of such termination, shall not be eliminated or negatively impacted by such termination. Notwithstanding anything to the contrary in this Agreement, in the event of any conflict between the terms of this Agreement and the terms of the Addendum, the provisions of the Addendum, including, without limitation, any provisions relating to the rights, preferences and privileges of Series A Unitholders, shall control and be binding.
Without limiting the foregoing, the General Partner is expressly authorized to issue REIT Shares, other shares of capital stock or Additional Securities for less than fair market value, and the General Partner is expressly authorized to cause the Partnership to issue to the General Partner corresponding Partnership Units, so long as (x) the General Partner concludes in good faith that such issuance of Partnership Units is in the best interests of the General Partner and Partnership, and (y) the General Partner contributes all proceeds, if any, from such issuance and exercise to the Partnership.
(ii)Upon Issuance of Additional Securities. The General Partner shall not issue any additional REIT Shares (other than REIT Shares issued in connection with an exchange pursuant to Section 8.05 hereof) or rights, options, warrants or convertible or exchangeable securities containing the right to subscribe for or purchase REIT Shares (collectively, “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 net 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; provided, however, that the General Partner is allowed to issue Additional Securities in connection with an acquisition of a property to be held directly by the General Partner in accordance with Section 6.08. 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, employee equity incentive plan or employee stock options that have an

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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. For example, in the event the General Partner issues REIT Shares for a cash purchase price and contributes all of the proceeds of such issuance to the Partnership as required hereunder, the General Partner shall be issued a number of additional Common Units equal to the quotient of (A) the number of such REIT Shares issued by the General Partner, the proceeds of which were so contributed, divided by (B) the Conversion Factor in effect on the date of such contribution.

(b)Certain Deemed Contributions of Proceeds of Issuance of REIT Shares. Except as provided in Section 4.02(a)(ii), in connection with any and all issuances of REIT Shares or other interests in the General Partner, 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 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 6.05 hereof and in connection with the required issuance of Additional Equity to the General Partner for such Capital Contributions pursuant to Section 4.02(a) hereof.

4.03    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.

4.04    Capital Accounts. A separate capital account (a “Capital Account”) shall be established and maintained for each Partner in accordance with Regulations Section 1.704-1(b)(2)(iv). The General Partner shall adjust the Carrying Values of the property of the Partnership to its fair market value (as determined by the General Partner, in its sole and absolute discretion, and taking into account Section 7701(g) of the Code) in accordance with Regulations Section 1.704-1(b)(2)(iv)(f) at the following times: (a) immediately prior to the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital Contribution; (b) immediately prior to the distribution by the Partnership to a Partner of more than a de minimis amount of property as consideration for an interest in the Partnership; (c) immediately prior to the liquidation of the Partnership within the meaning of Regulations Section 1.704-l(b)(2)(ii)(g); (d) immediately prior to the grant of an interest in the Partnership (other than a de minimis interest) as consideration for the provision of services to or for the benefit of the Partnership by an existing Partner acting in a Partner capacity or by a new partner acting in a Partner capacity or in anticipation of becoming a Partner; (e) the issuance by the Partnership of a Noncompensatory Option which is not treated as a Partnership Interest pursuant to Regulations Section 1.761-3(a); (f) the acquisition of an interest in the Partnership upon the exercise of a Noncompensatory Option in accordance with Regulations Section 1.704-1(b)(2)(iv)(s); and (g) at such other times as permitted or required under Regulations; provided, however, that adjustments pursuant to clauses (a), (b), (d), (e) and (g) (to the extent not required by Regulations) above shall be made only if the General Partner determines that such adjustments are necessary or appropriate

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to reflect the relative economic interests of the Partners in the Partnership. When the Partnership’s property is revalued by the General Partner, the Capital Accounts of the Partners shall be adjusted in accordance with Regulations Sections 1.704-1(b)(2)(iv)(f), (g) and (h), which generally require such Capital Accounts to be adjusted to reflect the manner in which the unrealized gain or loss inherent in such property (that has not been reflected in the Capital Accounts previously) would be allocated among the Partners pursuant to Section 5.01 if there were a taxable disposition of such property for its fair market value (as determined by the General Partner, in its sole and absolute discretion, and taking into account Section 7701(g) of the Code and the fair market value of any outstanding Noncompensatory Options) on the date of the revaluation.

4.05    Percentage Interests. If the number of outstanding Partnership Units within any class or series 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 to a percentage equal to the number of Partnership Units of such class or series held by such Partner divided by the aggregate number of Partnership Units of such class or series outstanding after giving effect to such increase or decrease, and corresponding adjustments shall be made to each Partner’s Combined Percentage Interest. If the Partners’ Percentage Interests and Combined Percentage Interests are adjusted pursuant to this Section 4.05, the Profits and Losses for the taxable year in which the adjustment occurs shall be allocated between the part of the year ending on the effective date of such adjustment 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 Profits and Losses for the taxable year in which the adjustment occurs. The allocation of Profits and Losses for the earlier part of the year shall be based on the Combined Percentage Interests before adjustment, and the allocation of Profits and Losses for the later part shall be based on the adjusted Combined Percentage Interests.

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

4.07    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.

4.08    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

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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.

ARTICLE V
PROFITS AND LOSSES; DISTRIBUTIONS

5.01    Allocation of Profits and Losses.

(a)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 the cumulative reimbursements made to the General Partner under Section 6.05(b) (other than reimbursements that would properly be treated as “guaranteed payments” or which are attributable to the reimbursement of expenses that would properly be either deductible by the Partnership or added to the tax basis of any Partnership asset) over the cumulative allocations of Partnership income and gain to the General Partner under this Section 5.01(a).

(b)General Allocations. After application of Section 5.01(a) and subject to Section 5.01(c), any remaining Profits and Losses (or, if and to the extent necessary, items thereof of the Partnership for each fiscal year or other applicable period shall be allocated among the Partners in a manner that will, as nearly as possible, 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 Values, 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 5.02, 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.

(c)Allocations to Reflect Other Classes of Units. The allocations under Section 5.01(b) may be modified as needed to reflect, and shall be modified to the extent required under, the terms of any additional classes of Partnership Units that may be issued from time to time.

(d)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 Combined

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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” of such deduction 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 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(i)(4), 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 nonrecourse liabilities of the Partnership within the meaning of Regulations Section 1.752-3(a)(3) shall be such Partner’s Combined Percentage Interest.

(e)Qualified Income Offset. If a Partner receives in any taxable year an adjustment, allocation, or distribution described in subparagraphs (4), (5), or (6) of Regulations Section 1.704-l(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) and 1.704-2(i), 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-l(b)(2)(ii)(d). After the occurrence of an allocation of income or gain to a Partner in accordance with this Section 5.01(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 5.01(e).

(f)Gross Income Allocation. If any Partner has a deficit Capital Account at the end of any taxable year which is in excess of the sum of (i) the amount (if any) such Partner is obligated to restore to the Partnership and (ii) the amount such Partner is deemed to be obligated to restore pursuant to Regulations Section 1.704-1(b)(2)(ii)(c) or the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such 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.

(g)Capital Account Deficits. Losses shall not be allocated to a Limited Partner to the extent that such allocation would cause a deficit in such Partner’s Capital Account (after reduction to reflect the items described in Regulations Section 1.704-l(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. Any Losses in excess of that limitation shall be allocated to the General Partner. After the occurrence of an allocation of Losses to the General Partner in accordance with this Section 5.01(g), to the extent permitted by Regulations Section 1.704-l(b), Profits shall be allocated to such Partner in an amount necessary to offset the Losses previously allocated to each Partner under this Section 5.01(g).

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(h)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 Profits and Losses allocable among the Partners during the Partnership taxable year of the transfer shall be allocated between the transferor and the transferee Partner either (i) as if the Partnership’s taxable year had ended on the date of the transfer, or (ii) based on the number of days of such taxable year that each was a Partner without regard to the results of Partnership activities in the respective portions of such taxable 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 Profits and Losses (or items thereof) between the transferor and the transferee Partner.

(i)Definition of Profits and Losses. “Profits” and “Losses” and any items of income, gain, expense, or loss referred to in this Agreement shall be determined in accordance with federal income tax accounting principles, as modified by Regulations Section 1.704-l(b)(2)(iv), except that Profits and Losses shall not include items of income, gain and expense that are specially allocated pursuant to Sections 5.01(b), (d), (e), (f) or (j). All allocations of income, Profits, gain. Losses, and expense (and all items contained therein) for federal income tax purposes shall be identical to all allocations of such items set forth in this Section 5.01, except as otherwise required by Section 704(c) of the Code and Regulations Section 1.704-1(b)(4) or Section 5.01(k). The General Partner shall have the authority to elect the method to be used by the Partnership for allocating items of income, gain. and expense as required by Section 704(c) of the Code including a method that may result in a Partner receiving a disproportionately larger share of the Partnership tax depreciation deductions, and such election shall be binding on all Partners.

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

(k)Noncompensatory Options. If, as a result of an exercise of a Noncompensatory Option to acquire an interest in the Partnership, a Capital Account reallocation is required under Regulations Section 1.704-1(b)(2)(iv)(s)(3), the Partnership shall make corrective allocations for federal income tax purposes in accordance with Regulations Section 1.704-1(b)(4)(x).

5.02    Distribution of Cash

(a)Except for distributions (i) made pursuant to Section 5.06 in connection with the dissolution and liquidation of the Partnership, (ii) subject to the provisions of Sections 5.02(b), 5.02(c), 5.02(d), 5.03 and 5.05 and (iii) subject to the rights, terms and preferences of the Series A Preferred Units and any other Additional Equity that may be issued from time to time in accordance with the terms of this Agreement, the Partnership shall distribute cash on a quarterly (or, at the election of the General Partner, more frequent) basis, in an amount determined by the General Partner in its sole and absolute discretion, to the Common Unitholders who are Partners on the Partnership Record Date with respect to such quarter (or other distribution period) in accordance with their respective Percentage Interests on the Partnership Record Date; provided, however, that if a new or existing Partner acquires any Additional Equity in exchange for a Capital Contribution

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on any date other than the next day after a Partnership Record Date, the cash distribution attributable to such additional Partnership Interest relating to the Partnership Record Date next following the issuance of such additional Partnership Interest (or relating to the Partnership Record Date if such Partnership Interest was acquired on a Partnership Record Date) shall be reduced in the proportion to (i) the number of days that such additional Partnership Interest is held by such Partner bears to (ii) the number of days between such Partnership Record Date (including such Partnership Record Date) and the immediately preceding Partnership Record Date.

(b)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 and 1446 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 the 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, if any, is less than the amount required to be withheld by the Partnership, the amount required to be withheld in excess of the actual amount to be distributed, if any, to the Partner 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 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 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 5.02(b) or Section 5.02(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. The Partnership may at any time redeem Partnership Units from a Partner in satisfaction of a Partner’s Partnership Loan.

(c)Any “imputed underpayment” (within the meaning of Section 6225 of the Code or any comparable provision of state or local law) paid by the Partnership as a result of an adjustment with respect to any Partnership item, including any interest or penalties with respect to any such adjustment (collectively, an “Imputed Underpayment Amount”), shall be treated as a Partnership

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Loan to the appropriate Partners. The General Partner shall reasonably determine the portion of an Imputed Underpayment Amount attributable to each Partner or former Partner. The portion of the Imputed Underpayment Amount that the General Partner attributes to a former Partner of the Partnership shall be treated as a Partnership Loan with respect to both such former Partner and such former Partner’s transferee(s) or assignee(s), as applicable, and the General Partner may in its discretion exercise the Partnership’s rights pursuant to Section 5.02(b) and this Section 5.02(c) in respect of either or both of the former Partner and its transferee or assignee. Imputed Underpayment Amounts treated as a Partnership Loan shall also include any such payments paid (or payable) by any entity treated as a partnership for U.S. federal income tax purposes in which the Partnership holds (or has held) a direct or indirect interest other than through entities treated as corporations for U.S. federal income tax purposes, to the extent that the Partnership bears the economic burden of such amounts, whether by law or agreement.

(d)In no event may a Partner receive a distribution of cash with respect to a Common Unit if such Partner is entitled to receive a cash dividend as the holder of record of a REIT Share for which all or part of such Common Unit has been or will be exchanged.

5.03     REIT Distribution Requirements. To the extent determined by the General Partner, the General Partner shall use its reasonable efforts to cause the Partnership to distribute amounts sufficient to enable the General Partner to pay shareholder dividends 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.

5.04    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.

5.05    Limitations of Return of Capital Contributions. Notwithstanding any of the provisions of this Article V, 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.

5.06    Distributions Upon Liquidation. Upon liquidation of the Partnership, after payment of, or adequate provision for, debts and obligations of the Partnership, including any Partner loans, and subject to the rights, terms and preferences of any Additional Equity that may be issued from time to time in accordance with the terms of this Agreement, any remaining assets of the Partnership shall be distributed to all Partners with positive Capital Accounts in accordance with their respective positive Capital Account balances. For purposes of the preceding sentence, the Capital Account of each Partner shall be determined after all adjustments made in accordance with Sections 5.01 and 5.02 resulting from Partnership operations and from all sales and dispositions of all or any part of the Partnership’s assets. 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.

5.07    Substantial Economic Effect. It is the intent of the Partners that the allocations of Profits and Losses under this Agreement have substantial economic effect (or be consistent with

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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 V and other relevant provisions of this Agreement shall be interpreted in a manner consistent with such intent.

5.08    Distributions to Reflect Issuance of Additional Equity. In the event that the Partnership issues Additional Equity pursuant to Section 4.02, the General Partner shall make such revisions to this Article V as it determines are necessary to reflect the issuance of such Additional Equity. In the absence of any agreement to the contrary, an Additional Limited Partner shall be entitled to the distributions set forth in this Article V (without regard to this Section 5.08) or the applicable designation setting forth the terms of the Additional Equity with respect to the period during which the closing of its contribution to the Partnership occurs, multiplied by a fraction the numerator of which is the number of days from and after the date of such closing through the end of the applicable period, and the denominator of which is the total number of days in such period.

ARTICLE VI
RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER

6.01    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 and dispose of any real property and any other property or assets including, but not limited to notes and mortgages, 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;

(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, 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;

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(v)to pay, either directly or by reimbursement, for all Administrative Expenses 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 Administrative Expenses and all operating costs and general administrative expenses of any Subsidiary of either the General Partner or Partnership, 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;

(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 therefore such reasonable remuneration as the General Partner may deem reasonable and proper;

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(xv)to retain other services of any kind or nature in connection with the Partnership business, and to pay therefore 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 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.

6.02    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

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of the General Partner, perform any acts or services for the Partnership as the General Partner may approve.

6.03    Indemnification.

(a)To the maximum extent permitted by Delaware law in effect from time to time, the Partnership shall indemnify any Indemnitee from and against any claim or liability to which such Indemnitee may become subject or which such Indemnitee may incur by reason of his service on behalf of the Partnership and, without requiring a preliminary determination of the ultimate entitlement to indemnification, shall pay or reimburse any Indemnitee reasonable expenses in advance of final disposition of a proceeding.

(b)Neither the amendment nor repeal of this Section 6.03, nor the adoption or amendment of any other provision of this Agreement inconsistent with Section 6.03, shall apply to or affect in any respect the applicability with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption.

(c)The indemnification provided by this Section 6.03 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. The Partnership may also enter into indemnification agreements with Partners.

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

(e)For purposes of this Section 6.03, 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 6.03; 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 6.03 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.

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(h)The provisions of this Section 6.03 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons. Any amendment, modification or repeal of this Section 6.03 or any provision hereof shall be prospective only and shall not in any way affect the limitations on the Partnership’s liability to any Indemnitee under this Section 6.03 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted.

(i)Notwithstanding anything in this Section 6.03 to the contrary, if the General Partner would be prohibited under the Articles of Incorporation from providing the indemnification or advancement of expenses otherwise called for by this Section 6.03, then the Partnership shall not provide such indemnification or advancement of expenses.

6.04    Liability of the General Partner.

(a)Notwithstanding anything to the contrary set forth in this Agreement, none of the General Partner or any of its officers, directors, agents or employees shall 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)The Limited Partners expressly acknowledge that the General Partner is acting on behalf of the Partnership, itself and its shareholders collectively, that the General Partner is under no obligation to consider the separate interests of the Limited Partners (including, without limitation, the tax consequences to Limited Partners or the tax consequences of some, but not all, of the Limited Partners) in deciding whether to cause the Partnership to take (or decline to take) any actions. In the event of a conflict between the interests of its shareholders on one hand and the Limited Partners on the other, the General Partner shall endeavor to resolve the conflict in a manner not adverse to either its shareholders or the Limited Partners; provided, however, that for so long as the General Partner directly owns a controlling interest in the Partnership, any such conflict that the General Partner, in its sole and absolute discretion, determines cannot be resolved in a manner not adverse to either its shareholders or the Limited Partner shall be resolved in favor of the shareholders. 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 6.01 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.

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(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 6.04 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 6.04 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.

6.05    Reimbursement of General Partner.

(a)Except as provided in this Section 6.05 and elsewhere in this Agreement (including the provisions of Articles 5 and 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.

6.06    Outside Activities. Subject to the Articles of Incorporation and any agreements entered into by the General Partner or its Affiliates with the Partnership or a Subsidiary, any officer, director, employee, agent, director, Affiliate or stockholder of 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, interest 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.

6.07    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 therefore which the General Partner determines to be fair and reasonable.

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(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 terms and subject to such conditions as the General Partner deems are consistent with this Agreement and applicable law.

(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 on terms that are fair and reasonable to the Partnership.

6.08    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 office or industrial property or other property, shall be conducted through the Partnership or one or more Subsidiaries; provided, however, that the General Partner is allowed to make a direct acquisition so long as the General Partner takes commercially reasonable measures to ensure that the economic benefits and burdens of such property are otherwise vested in the Partnership, through assignment, mortgage loan or otherwise or, if it is not commercially reasonable to vest such economic interests in the Partnership, the General Partner shall make such amendments to this Agreement as the General Partner determines are necessary or desirable, including to the definition of “Conversion Factor,” to reflect such activities and the direct ownership of assets by the General Partner and otherwise in accordance with Exhibit C. Nothing contained in this Agreement (including this Section 6.08) shall be deemed to prohibit the General Partner from guaranteeing or being a co-obligor, co-borrower, guarantor or surety of, or otherwise providing credit support of any kind in respect of, any debt or other indebtedness or obligations of the Partnership.

6.09    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 in accordance with the provisions of this Agreement. All Partnership assets shall be recorded as the property of the Partnership in its books and records, irrespective of the name in which legal title to such Partnership assets is held.

6.10    Miscellaneous. 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 Common Units as determined based on the application of the Conversion Factor on the same terms that the General Partner exchanged such REIT Shares. Moreover, if the General Partner makes a

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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 Common Units held by the General Partner. In the event any REIT Shares are exchanged by the General Partner pursuant to such offer, the Partnership shall redeem an equivalent number of the General Partner’s Partnership Units for an equivalent purchase price based on the application of the Conversion Factor.

ARTICLE VII
CHANGES IN GENERAL PARTNER

7.01    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 Section 7.01(c), (d) or (e).

(b)[Reserved.]

(c)Except as otherwise provided in Section 7.01(d) or (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 the Limited Partners holding more than 50% of the Combined Percentage Interest of the Limited Partners (excluding the Partnership Units held by the General Partner or an Affiliate thereof) is obtained;

(ii)as a result of such Transaction, all Limited Partners will receive for each Common Unit an amount of cash, securities, or other property equal to the product of the Conversion Factor and the greatest amount of cash, securities or other property paid in the Transaction to a holder of one REIT Share in consideration of one REIT Share, it being understood that any such securities or other property shall be of an identical type received by the holder of the 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 Common Units shall be given the option to exchange its Common Units for the greatest amount of cash, securities, or other property which a Limited Partner would have received had it (A) exercised its Exchange Right and (B) sold, tendered or exchanged pursuant to the Offer the REIT Shares received upon exercise of the Exchange 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 Common 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

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as an amount per REIT Share) received in the Transaction by any holder of REIT Shares, it being understood that any such securities or other property shall be of an identical type received by the holder of the REIT Shares.

(d)Notwithstanding Section 7.01(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 Common Units held by the General Partner, are contributed, directly or indirectly, to the Partnership as a Capital Contribution in exchange for Common 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 7.01(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 Common Unit after any such merger or consolidation so as to approximate the existing method for such calculation as closely as reasonably possible, it being understood that unless the REIT Shares Amount shall be payable in shares of Publicly Traded Common Stock (as defined in the Addendum), any exercise of the Exchange Rights shall only be satisfied by payment of the Cash Amount following such merger or consolidation. 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 or options, warrants or other rights relating thereto, and to which a holder of Common Units could have acquired had such Common 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 reasonably possible to the adjustments provided for with respect to the Conversion Factor. The Survivor also shall in good faith modify the definition of REIT Shares, subject to the obligation to pay the Cash Amount if the REIT Share Amount is not payable in shares of Publicly Traded Common Stock, and make such amendments to Section 8.05 so as to approximate the existing rights and obligations set forth in Section 8.05 as closely as reasonably possible. The above provisions of this Section 7.01(d) shall similarly apply to successive mergers or consolidations permitted hereunder.

(e)Notwithstanding Section 7.01(c), 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 and the agreement by the transferee to accept and be bound by the terms of this Agreement, may withdraw as General Partner.

7.02    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

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actions required by Section 2.05 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)at the election of the General Partner, 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 the admission of the Person to be admitted as a substitute or additional General Partner is in conformity with the Act, that 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 income tax purposes, or (ii) the loss of any Limited Partner’s limited liability.

7.03    Effect of Bankruptcy, Withdrawal, Death or Dissolution of a General Partner.

(a)Upon the occurrence of an Event of Bankruptcy as to a General Partner (and its removal pursuant to Section 7.04(a) hereof) or the death, withdrawal, removal or dissolution of a General Partner (except that, if a 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 7.03(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 7.02 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 a General Partner (and its removal pursuant to Section 7.04(a) hereof) or the death, withdrawal, removal or dissolution of a General Partner (except that, if a 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 Limited Partners, within 90 days after such occurrence, may elect to continue the business of the Partnership for the balance of the term specified in Section 2.04 hereof by selecting, subject to Section 7.02 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.

7.04    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,

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death, dissolution, 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 7.04 and the Partnership is continued pursuant to Section 7.03. 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 7.03(b) hereof and otherwise admitted to the Partnership in accordance with Section 7.02 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 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 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 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 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, during the time after default until transfer under Section 7.04(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 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 7.04(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 and sufficient to effect all the foregoing provisions of this Section.

ARTICLE VIII
RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS

8.01    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

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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.

8.02    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:

(a)execute, swear to, seal, acknowledge, deliver, file and record in the appropriate public offices (i) all certificates, documents and other instruments (including, without limitation, this Agreement and the Certificate and all amendments or restatements thereof) that the General Partner deems appropriate or necessary to form, qualify or continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the Limited Partners have limited liability) in the State of Delaware and in all other jurisdictions in which the Partnership may or plans to conduct business or own property; (ii) all instruments that the General Partner deems appropriate or necessary to reflect any amendment, change, modification or restatement of this Agreement duly adopted in accordance with its terms; (iii) all conveyances and other instruments or documents that the General Partner deems appropriate or necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, including, without limitation, a certificate of cancellation; (iv) all conveyances and other instruments or documents that the General Partner deems appropriate or necessary to reflect the distribution or exchange of assets of the Partnership pursuant to the terms of this Agreement; (v) all instruments relating to the admission, withdrawal, removal or substitution of any Partner or other events described in this Agreement or the Capital Contribution of any Partner and (vi) all certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of Partnership Interests; and

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

Nothing contained herein shall be construed as authorizing the General Partner to amend this Agreement except in accordance with Article XI hereof and the Addendum or as may be otherwise expressly provided for in this Agreement.
The foregoing 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.
8.03    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.

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8.04    [Reserved].

8.05    Exchange Right.

(a)Subject to Sections 8.05(b), 8.05(c), 8.05(d), and 8.05(e) and 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, shall have the right (the “Exchange Right”) to require the Partnership to redeem on a Specified Exchange Date all or a portion of the Common Units held by such Limited Partner at an exchange price equal to and in the form of the Cash Amount to be paid by the Partnership, provided that such Common Units shall have been outstanding for at least one year and with respect to convertible Additional Equity, including the Series A Preferred Units, such one year period shall run from the date of original issuance of such Additional Equity without regard to the date of such Additional Equity’s conversion into Common Units. The Exchange Right shall be exercised pursuant to a Notice of Exchange delivered to the Partnership (with a copy to the General Partner) by the Limited Partner who is exercising the Exchange Right (the “Exchanging Partner”); provided, however, that the Partnership shall not be obligated to satisfy such Exchange Right if the General Partner elects to purchase the Common Units subject to the Notice of Exchange pursuant to Section 8.05(b). A Limited Partner may not exercise the Exchange Right for less than 1,000 Common Units or, if such Limited Partner holds less than 1,000 Common Units, all of the Common Units held by such Partner. The Exchanging Partner shall have no right, with respect to any Common Units so exchanged, to receive any distribution paid with respect to Common Units if the record date for such distribution is on or after the Specified Exchange Date.

(b)Notwithstanding the provisions of Section 8.05(a), a Limited Partner that exercises the Exchange Right shall be deemed to have offered to sell the Common Units described in the Notice of Exchange to the General Partner, and the General Partner may, in its sole and absolute discretion, elect to purchase directly and acquire such Common Units by paying to the Exchanging Partner either the Cash Amount or the REIT Shares Amount, as elected by the General Partner (in its sole and absolute discretion), on the Specified Exchange Date, whereupon the General Partner shall acquire the Common Units offered for exchange by the Exchanging Partner and shall be treated for all purposes of this Agreement as the owner of such Common Units. If the General Partner shall elect to exercise its right to purchase Common Units under this Section 8.05(b) with respect to a Notice of Exchange, it shall so notify the Exchanging Partner within five (5) business days after the receipt by the General Partner of such Notice of Exchange. Unless the General Partner (in its sole and absolute discretion) shall exercise its right to purchase Common Units from the Exchanging Partner pursuant to this Section 8.05(b), the General Partner shall not have any obligation to the Exchanging Partner or the Partnership with respect to the Exchanging Partner’s exercise of the Exchange Right. In the event the General Partner shall exercise its right to purchase Common Units with respect to the exercise of an Exchange Right in the manner described in the first sentence of this Section 8.05(b), the Partnership shall have no obligation to pay any amount to the Exchanging Partner with respect to such Exchanging Partner’s exercise of such Exchange Right, and each of the Exchanging Partner, the Partnership, and the General Partner, as the case may be, shall treat the transaction between the General Partner and the Exchanging Partner for federal income tax purposes as a sale of the Exchanging Partner’s Common Units to the General Partner. Each Exchanging Partner agrees to execute such documents as the General Partner may

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reasonably require in connection with the issuance of REIT Shares upon exercise of the Exchange Right.

(c)Notwithstanding the provisions of Section 8.05(a) and 8.05(b), a Limited Partner shall not be entitled to exercise the Exchange Right if the delivery of REIT Shares to such Partner on the Specified Exchange Date by the General Partner pursuant to Section 8.05(b) (regardless of whether or not the General Partner would in fact exercise its rights under Section 8.05(b)) would (i) result in such Partner or any other Person owning, directly or indirectly, shares of the General Partner in excess of the Aggregate Stock or Common Stock Ownership Limit (as defined in the Articles of Incorporation and calculated in accordance therewith), except as provided in the Articles of Incorporation, (ii) result in shares of the General Partner being owned by fewer than 100 Persons (determined without reference to any rules of attribution and under the definition of “Person” in the Articles of Incorporation), except as provided in the Articles of Incorporation, result in the General Partner being “closely held” within the meaning of Section 856(h) of the Code, (iii) cause the General Partner to own, directly or constructively, 9.8% or more of the ownership interests in a tenant of the General Partner’s, the Partnership’s, or any direct or indirect Subsidiary (including, without limitation, partnerships, joint ventures and limited liability companies) of the General Partner’s or the Partnership’s real property, within the meaning of Section 856(d)(2)(B) of the Code, (iv) otherwise, directly or indirectly, cause the General Partner to fail to qualify as a REIT or (v) cause the acquisition of REIT Shares by such Partner to be “integrated” with any other distribution for REIT Shares for purposes of complying with the registration provisions of the Securities Act. The General Partner, in its sole and absolute discretion, may waive the restriction on exchange set forth in this Section 8.05(c); provided, however, that in the event such restriction is waived, the Exchanging Partner shall be paid the Cash Amount.

(d)Any Cash Amount to be paid to an Exchanging Partner pursuant to this Section 8.05 shall be paid on the Specified Exchange Date.

(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 Exchange Rights 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 (a “Restriction Notice”) to each of the Limited Partners holding Common 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 the Partnership being treated as a “publicly traded partnership” under Section 7704 of the Code.

8.06    Outside Activities of Limited Partners. Subject to any agreements entered into by a Limited Partner or its Affiliates with the General Partner, Partnership or a Subsidiary, any Limited Partner and any officer, director, employee, agent, trustee, Affiliate or stockholder of any Limited Partner shall be entitled to and may have business interests and engage in business activities in addition to those relating to the Partnership, including business interests and activities substantially similar or identical to those of the Partnership. Neither the Partnership nor any of Partners shall have any rights by virtue of this Agreement in any such business ventures, interest or activities. Subject to such agreements, none of the Limited Partners nor any other Person shall have any

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rights by virtue of this Agreement or the partnership relationship established hereby in any such business ventures, interests or activities, other than the Limited Partners benefiting from the business conducted by the General Partner, and such Person shall have no obligation pursuant to this Agreement to offer any interest in any such business ventures, interests and activities to the Partnership, any Limited Partner or any such other Person, even if such opportunity is of a character which, if presented to the Partnership, any Limited Partner or such other Person, could be taken by such Person.

8.07    Return of Capital. Except as otherwise provided in this Agreement, each Limited Partner shall look solely to the assets of the Partnership for the return of its Capital Contribution and shall have no right or power to demand or receive property from the General Partner. No Limited Partner holding any class of Partnership Units shall have priority over any other Limited Partner in such class as to the return of his Capital Contributions, distributions or allocations.

ARTICLE XI
TRANSFERS AND REDEMPTIONS OF LIMITED PARTNERSHIP INTERESTS

9.01    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 Interests 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 9.01(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.

9.02    Restrictions on Transfer of Limited Partnership Interests.

(a)Subject to the provisions of 9.02(b), (c) and (d), 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 consent of the General Partner, which consent may be granted or withheld in its sole and absolute discretion. 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 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 9.05 below) of all of his Partnership Units pursuant to this Article IX or pursuant to an exchange of all of his Common Units pursuant to 8.05. Upon the permitted

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Transfer or redemption of all of a Limited Partner’s Partnership Units, such Limited Partner shall cease to be a Limited Partner.

(c)Subject to 9.02(d), (e) and (f) below, a Limited Partner may Transfer, without the consent of the General Partner, all or a portion of his Partnership Units 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 or other estate planning vehicle created by such Limited Partner for the benefit of such Limited Partner and/or any such person(s), (ii) a corporation, limited liability company or other entity directly or indirectly controlled by a Person or Persons named in (i) above or (iv) below, (iii) if the Limited Partner is an entity, its direct or indirect beneficial owners, a participant in a benefit plan of such Limited Partner or an Affiliate of the Limited Partner or (iv) recipients contemplated by the terms of the Normandy Contribution Agreement in connection with the closing contemplated thereby; provided, in each case, that any such transferee(s) will provide representations, warranties and undertakings as reasonably requested by the General Partner.

(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 Partnership Interests 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 Units, 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 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, (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, or (iv) in the opinion of legal counsel for the Partnership, the transfer would result in the Partnership becoming or being treated as a “publicly traded partnership” under Section 7704 of the Code.

(f)No Transfer of any Partnership Units 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-l(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 General Partner may require the lender to enter into an arrangement with the Partnership and the General Partner to exchange or redeem for the Cash Amount any Common 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 IX shall be void and ineffectual and shall not be binding upon, or recognized by, the Partnership.

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(h)Prior to the consummation of any Transfer under this Article IX, 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.

9.03    Admission of Substitute Limited Partner.

(a)Subject to the other provisions of this Article IX, 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 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 9.01(a) hereof, the agreement set forth in Section 9.01(b) hereof and any other representations, warranties and undertakings as reasonably requested by the General Partner.

(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 8.02 hereof.

(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 9.03(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.

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(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 IX to the admission of such Person as a Limited Partner of the Partnership.

9.04    Rights of Assignees of Partnership Interests.

(a)Subject to the provisions of Sections 9.01 and 9.02 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 IX to the same extent and in the same manner as any Limited Partner desiring to make an assignment of its Limited Partnership Interest.

9.05    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.

9.06    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 on)y 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.

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9.07    Admission of Additional Limited Partners.

(a)A Person who is hereafter admitted to the Partnership in accordance with this Agreement shall be admitted to the Partnership as an Additional Limited Partner only upon furnishing to the General Partner (i) evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement, including, without limitation, the power of attorney granted in Section 8.02 and (ii) such other documents or instruments as may be required in the discretion of the General Partner in order to effect such Person’s admission as an Additional Limited Partner.

(b)Notwithstanding anything to the contrary in this Section 9.07, no Person shall be admitted as an Additional Limited Partner without the consent of the General Partner, which consent may be given or withheld in the General Partner’s sole and absolute discretion. The admission of any Person as an Additional Limited Partner shall become effective on the date upon which the name of such Person is recorded on the books and records of the Partnership following the consent of the General Partner to such admission. If any Additional Limited Partner is admitted to the Partnership on any day other than the beginning of a quarterly period, then all items allocable among Partners and their assignees for such quarterly period shall be allocated among such Limited Partner and all other Partners and their assignees by taking into account their varying interests during such quarterly period using a method selected by the General Partner that is in accordance with the Code. Except as otherwise agreed to by the Additional Limited Partners and the General Partner, all distributions of Available Cash with respect to which the Partnership Record Date is before the date of such admission shall be made solely to Partners and their assignees other than the Additional Limited Partner (other than in its capacity as an assignee of a Partner) and all distributions of Available Cash thereafter shall be made to all Partners and their assignees including such Additional Limited Partner.

9.08    Redemption of Partnership Units. Subject to the rights of the Series A Preferred Units, the General Partner will cause the Partnership to redeem Partnership Units from the General Partner or its Affiliates, to the extent it shall have legally available funds therefor, at any time the General Partner redeems shares of beneficial interest in itself. The number and class or series of Partnership Units redeemed and the redemption price shall equal the number (multiplied by the Conversion Factor) of shares of beneficial interest the General Partner redeems and the redemption price at which the General Partner redeems such shares, respectively.

ARTICLE X
BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS

10.01    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 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

40


the costs of collection, duplication and mailing, shall be entitled to inspect or copy such records during ordinary business hours.

10.02    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 10.02(b).

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

10.04    Annual Tax Information and Report. Within 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.

10.05    Partnership Representative, Tax Elections, Special Basis Adjustments.

(a)General. The General Partner (or any eligible Person designated by the General Partner) shall be the “partnership representative” of the Partnership pursuant to Section 6223(a) of the Code (the “Partnership Representative”). The Partnership Representative is authorized to conduct all tax audits and judicial reviews for the Partnership.

(b)Powers. The Partnership Representative is authorized, but not required (and the Partners hereby consent to the Partnership Representative taking the following actions):

(i)to elect out of the Partnership Audit Rules, if available;

(ii)to enter into any settlement with the IRS with respect to any tax audit or judicial review for the adjustment of Partnership items required to be taken into account by a Partner or the Partnership for income tax purposes, and in the settlement agreement the Partnership Representative may expressly state that such agreement shall bind the Partnership and all Partners;

(iii)to seek judicial review of any adjustment assessed by the IRS or any other tax authority, including the filing of a petition for readjustment with the Tax Court or the filing of a complaint for refund with the United States Claims Court or the District Court

41


of the United States for the district in which the Partnership’s principal place of business is located;

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

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

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

(vii)to take any other action on behalf of the Partners of the Partnership in connection with any tax audit or judicial review proceeding, to the extent permitted by applicable law or regulations, including, without limitation, the following actions to the extent that the Partnership Audit Rules apply to the Partnership and its current or former Partners:

(1)electing to have the alternative method for the underpayment of taxes set forth in Section 6226 of the Code, as included in the Partnership Audit Rules, apply to the Partnership and its current or former Partners; and

(2)for Partnership level assessments under Section 6225 of the Code, as included in the Partnership Audit Rules, determining apportionment of responsibility for payment among the current or former Partners, setting aside reserves from Available Cash of the Partnership, withholding of distributions of Available Cash to the Partners, and requiring current or former Partners to make cash payments to the Partnership for their share of the Partnership level assessments; and

(viii)to take any other action required or permitted by the Code and Regulations in connection with its role as Partnership Representative.

(c)The taking of any action and the incurring of any expense by the Partnership Representative in connection with any such audit or proceeding referred to in clause (7) above, except to the extent required by law, is a matter in the sole and absolute discretion of the Partnership Representative and the provisions relating to indemnification of the General Partner set forth in Section 6.03 shall be fully applicable to the Partnership Representative in its capacity as such. In addition, the General Partner shall be entitled to indemnification set forth in Section 6.03 for any liability for tax imposed on the Partnership under the Partnership Audit Rules that is collected from the General Partner.

(d)The current and former Partners agree to provide the following information and documentation to the Partnership and the Partnership Representative to the extent that the Partnership Audit Rules apply to the Partnership and its current or former Partners:

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(i)information and documentation to determine and prove eligibility of the Partnership to elect out of the Partnership Audit Rules;

(ii)information and documentation to reduce the Partnership level assessment consistent with Section 6225(c) of the Code, as included in the Partnership Audit Rules; and

(iii)information and documentation to prove payment of the attributable liability under Section 6226 of the Code, as included in the Partnership Audit Rules.

In addition to the foregoing, and notwithstanding any other provision of this Agreement, including, without limitation, Article XI of this Agreement, the General Partner is authorized (without any requirement of the consent or approval of any other Partners) to make all such amendments to this Section 10.05 as it shall determine, in its sole judgment, to be necessary, desirable or appropriate to implement the Partnership Audit Rules and any amendments thereto or any regulations, procedures, rulings, notices, or other administrative interpretations thereof promulgated by the U.S. Treasury Department.
(e)Reimbursement. The Partnership Representative shall receive no compensation for its services. All third-party costs and expenses incurred by the Partnership Representative in performing its duties as such (including legal and accounting fees and expenses) shall be borne by the Partnership. Nothing herein shall be construed to restrict the Partnership from engaging an accounting firm and/or law firm to assist the Partnership Representative in discharging its duties hereunder, so long as the compensation paid by the Partnership for such services is reasonable.

(f)Survival. The obligations of each Partner under this Section 10.05 shall survive such Partner’s withdrawal from the Partnership, and each Partner agrees to execute such documentation requested by the Partnership at the time of such Partner’s withdrawal from the Partnership to acknowledge and confirm such Partner’s continuing obligations under this Section 10.05.

(g)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 V 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.

(h)To the extent provided for in Regulations, revenue rulings, revenue procedures and/or other IRS guidance issued after the date hereof, the Partnership is hereby authorized to, and at the direction of the General Partner shall, elect a safe harbor under which the fair market value of any Partnership Interests issued after the effective date of such Regulation (or other guidance) will be treated as equal to the liquidation value of such Partnership Interests (i.e., a value equal to the total amount that would be distributed with respect to such interests if the Partnership sold all of its assets for their fair market value immediately after the issuance of such Partnership Interests,

43


satisfied its liabilities (excluding any non-recourse liabilities to the extent the balance of such liabilities exceed the fair market value of the assets that secure them) and distributed the net proceeds to the Partners under the terms of this Agreement). In the event that the Partnership makes a safe harbor election as described in the preceding sentence, each Partner hereby agrees to comply with all safe harbor requirements with respect to transfers of such Partnership Interest while the safe harbor election remains effective.

10.06    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 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, provided such audit is made for Partnership purposes, at the expense of the Partner desiring it and is made during normal business hours.

(c)The General Partner shall have satisfied the obligations under this Section 10.06 by (i) to the extent the General Partner or the Partnership is subject to periodic reporting requirements under the Securities Exchange Act of 1934, as amended, filing the quarterly and annual reports required thereunder within the time periods provided for the filing of such reports, including any permitted extensions, or (ii) posting or making available the reports required by this Section 10.06 on the website maintained from time to time by the Partnership or the General Partner, provided that such reports are able to be printed or downloaded from such website.

ARTICLE XI
AMENDMENT OF AGREEMENT; MERGER

The General Partner’s consent shall be required for any amendment to this Agreement. The General Partner, with the consent of Limited Partners holding more than 50% of the Combined Percentage Interests of the Limited Partners (including the Partnership Units held by the General Partner or an Affiliate thereof) 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 7.01(c)(ii) or (iii), (d) or (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 50% of the Combined Percentage Interests of the Limited Partners (excluding the Partnership Units held by the General Partner or an Affiliate thereof):

44



(a)any amendment affecting the operation of the Conversion Factor or the Exchange Right (except as provided in Section 7.01(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 Equity pursuant to Section 4.02 hereof;

(c)any amendment that would alter the Partnership’s allocations of Profits and Losses to the Limited Partners in any adverse and material respect, other than with respect to the issuance of Additional Equity pursuant to Section 4.02 hereof; or

(d)any amendment that would impose on the Limited Partners any obligation to make additional Capital Contributions to the Partnership or adversely impact the limited liability of the Limited Partners.

ARTICLE XII
GENERAL PROVISIONS

12.01    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.

12.02    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.

12.03    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.

12.04    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.

12.05    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.

12.06    Pronouns and Plurals. When the context in which words are used in this 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.

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12.07    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.

12.08    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.
12.09    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware provided, however, that causes of action for violations of federal or state securities laws shall not be governed by this Section 12.09.



46





IN WITNESS WHEREOF, the parties hereto have hereunder affixed their signatures to this Agreement of Limited Partnership, all as of the 24th day of January, 2020.
 
GENERAL PARTNER:
 
 
 
 
COLUMBIA PROPERTY TRUST, INC.,
 
a Maryland corporation
 
 
 
 
By:
/s/ James A. Fleming
 
Name:
James A. Fleming
 
Title:
Executive Vice President and CFO
 
 
 
 
 
 
 
LIMITED PARTNER:
 
 
 
 
COLUMBIA OP LP, LLC,
 
a Delaware limited liability company
 
 
 
 
By:
/s/ James A. Fleming
 
Name:
James A. Fleming
 
Title:
Executive Vice President and CFO
 
 
 
 
 
 
 
LIMITED PARTNERS:
 
 
 
 
COLUMBIA PROPERTY TRUST, INC.
 
a Maryland corporation, as Attorney-in-fact for the Limited Partners
 
 
 
 
By:
/s/ James A. Fleming
 
Name:
James A. Fleming
 
Title:
Executive Vice President and CFO









[Signature Page to Amended and Restated Agreement of Limited Partnership of
Columbia Property Trust Operating Partnership, L.P.]




Exhibit A

The information in this exhibit has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed
[Exhibit A is maintained within the books and records of the Partnership]






















Exhibit A





Exhibit B

Notice of Exercise of Exchange Right

In accordance with Section 8.05 of the Amended and Restated Agreement of Limited Partnership (as amended from time to time, the “Agreement”) of Columbia Property Trust Operating Partnership, L.P. (the “Partnership”), the undersigned hereby irrevocably (i) presents for exchange ______________ Common Units in the Partnership in accordance with the terms of the Agreement and the Exchange Right referred to in Section 8.05 thereof, (ii) surrenders such Common 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 Exchange 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:
Please insert social security or identifying number:
Name:







Exhibit B



Exhibit C

Relevant Investments

1.
Direct Acquisitions Permitted. The General Partner may make a direct acquisition not through the Partnership or its Subsidiaries if such acquisition is made in connection with an acquisition that is described in paragraph 2 of this Exhibit C and otherwise in accordance with Section 6.08 of the Agreement.

2.
Permitted Acquisitions. Where the General Partner of the Partnership determines that it is in the best interests of Columbia Property Trust, Inc. (the “Trust”) and the Partnership to conduct part of its business (“Relevant Business”) or make an investment (a “Relevant Investment”) directly, or through an entity other than the Partnership or a Subsidiary of the Partnership, it shall be permitted to do so as provided herein and subject to Section 6.08 of the Agreement.

3.
Advance of Funds. The funds required for a Relevant Business or a Relevant Investment shall be advanced by the Partnership to the Trust (or to a designated Subsidiary of the Trust), in its own capacity, and not in its capacity as the General Partner of the Partnership.

4.
Trust Acting in Own Capacity. Any Relevant Business or Relevant Investment shall be carried on by the Trust (directly or through another entity) in its own capacity, and not in its capacity as the General Partner of the Partnership.

5.
Payment of Proceeds. To the extent that the Trust receives amounts, directly or indirectly, from a Relevant Business or a Relevant Investment, including but not limited to amounts received on a termination or sale of any Relevant Business or Relevant Investment ("Relevant Proceeds"), the Trust shall be obliged to make a payment to the Partnership equal to any Relevant Proceeds received within 2 business days of receipt.

6.
Receipt of Proceeds; U.S. Tax Treatment. For the avoidance of doubt, it is noted that, notwithstanding the Trust’s obligation to make payments pursuant to paragraph 5 hereof, any Relevant Proceeds are received by the Trust beneficially, in its own right, and are not received in its capacity as General Partner of the Partnership. Notwithstanding the foregoing, solely for U.S. federal, state and local income tax purposes, the parties agree that the Partnership will be considered to own or conduct any Relevant Investment or Relevant Business.

7.
Indemnification. The General Partner and the Partnership agree that Relevant Business and Relevant Investments relate to an Indemnitee’s service on behalf of the Partnership within the meaning of Section 6.03(a) of the Partnership Agreement.














Exhibit C



Exhibit D

Notice of Mandatory Conversion

To:
[Name(s) and address(es) of Series A Unitholder(s)]

Reference is made to the Amended and Restated Agreement of Limited Partnership of Columbia Property Trust Operating Partnership, L.P. (the “Partnership”), as may be amended from time to time (the “Partnership Agreement”). All capitalized terms used herein and not otherwise defined shall have the same meaning ascribed to them respectively in the Partnership Agreement.
The Partnership hereby informs you that, in accordance with the Section 7(a) of the Series A Convertible, Perpetual Preferred Units Addendum attached as Schedule A to the Partnership Agreement, each outstanding Series A Preferred Unit converted automatically to [one (1)] Subject to adjustment based on the Series A Conversion Factor. Common Unit on [DATE].

Dated:__________, ____    
Columbia Property Trust Operating Partnership, L.P.

By:    Columbia Property Trust, Inc.,
its general partner

By: __________________________
Name:
Title:





















Exhibit D



Exhibit E

Notice of Exercise of Conversion

Columbia Property Trust Operating Partnership, L.P.
1170 Peachtree Street, NE, Suite 600
Atlanta, Georgia 30309

Reference is made to the Amended and Restated Agreement of Limited Partnership of Columbia Property Trust Operating Partnership, L.P. (the “Partnership”), as may be amended from time to time (the “Partnership Agreement”). All capitalized terms used herein and not otherwise defined shall have the same meaning ascribed to them respectively in the Partnership Agreement.
In accordance with Section 7(b) of the Series A Convertible, Perpetual Preferred Units Addendum attached as Schedule A to the Partnership Agreement, the undersigned hereby irrevocably (i) elects to convert __________ Series A Preferred Units in the Partnership into Common Units in accordance with the terms of the Agreement and the Addendum, and (ii) directs that any cash in lieu of Common Units that may be deliverable upon such conversion be delivered to the address specified below. The undersigned hereby represents, warrants, and certifies that the undersigned (a) has title to such Series A Preferred Units, free and clear of the rights or interests of any other person or entity other than the Partnership; (b) has the full right, power, and authority to cause the conversion of Series A Preferred Units as provided in Section 7(b) of the Addendum; and (c) has obtained the consent or approval of all persons or entities, if any, having the right to consent or approve such conversion.

Dated:__________, ____

Conversion Effective Date: __________, ____    


 
 
 
(Name of Limited Partner)
 
 
 
 
 
(Signature of Limited Partner)
 
 
 
 
 
(Mailing Address)
 
 
 
 
 
(City) (State) (Zip Code)
 
 
 
 
 
Signature Guaranteed by
    





Exhibit E



Exhibit F

Notice of Request for Redemption

Columbia Property Trust Operating Partnership, L.P.
1170 Peachtree Street, NE, Suite 600
Atlanta, Georgia 30309

Reference is made to the Amended and Restated Agreement of Limited Partnership of Columbia Property Trust Operating Partnership, L.P. (the “Partnership”), as may be amended from time to time (the “Partnership Agreement”). All capitalized terms used herein and not otherwise defined shall have the same meaning ascribed to them respectively in the Partnership Agreement.
In accordance with Section 4 or Section 5, as applicable, of the Series A Convertible, Perpetual Preferred Units Addendum attached as Schedule A (the “Addendum”) to the Partnership Agreement, the undersigned hereby requests that the Partnership (i) redeem __________ Series A Preferred Units in accordance with the terms of the Agreement and the Addendum, and (ii) directs that cash issued by the Partnership as a result of such redemption be delivered to the address specified below. The undersigned hereby represents, warrants, and certifies that the undersigned (a) has title to such Series A Preferred Units, free and clear of the rights or interests of any other person or entity other than the Partnership; (b) has the full right, power, and authority to redeem such Series A Preferred Units as provided in Section 5 of the Addendum; and (c) has obtained the consent or approval of all persons or entities, if any, having the right to consent or approve such redemption.

Dated: __________, ____

Redemption Effective Date: __________, ____    

    
 
 
 
(Name of Limited Partner)
 
 
 
 
 
(Signature of Limited Partner)
 
 
 
 
 
(Mailing Address)
 
 
 
 
 
(City) (State) (Zip Code)
 
 
 
 
 
Signature Guaranteed by
    




Exhibit F



SCHEDULE A

SERIES A CONVERTIBLE, PERPETUAL PREFERRED UNITS ADDENDUM
(THE “ADDENDUM”)

Establishing and Fixing the Rights and Preferences
of Series A Convertible, Perpetual Preferred Units

Designation and Number Designation and Number. A series of Partnership Units in Columbia Property Trust Operating Partnership, L.P., a Delaware limited partnership, (the “Partnership”), designated the “Series A Convertible, Perpetual Preferred Units” (the “Series A Preferred Units”), is hereby established. The Partnership is authorized to issue Three Million Two Hundred Sixty-Four Thousand One Hundred Fifty-One (3,264,151) Series A Preferred Units. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Amended and Restated Limited Partnership Agreement of the Partnership, as it may be amended or restated from time to time in accordance with its terms (the “Partnership Agreement”).
1.Rank. Except as provided herein, the Series A Preferred Units shall rank on parity with the Common Units and, except as provided herein, will have the same rights with respect to preferences, voting powers, restrictions, limitations as to distributions, qualifications, terms and other terms and conditions as the Common Units. With respect to the payment of distributions and the distribution of assets upon redemption, liquidation, bankruptcy, dissolution or winding up of the Partnership and rights upon liquidation, dissolution, or winding up of the Partnership, the Series A Preferred Units shall rank (a) senior to the Common Units and all other classes or series of Partnership Units of the Partnership, now or hereafter issued and outstanding, the terms of which provide that such Partnership Units rank, as to distributions and upon liquidation, dissolution or winding up of the Partnership, junior to such Series A Preferred Units (collectively, the “Junior Securities”) and (b) junior to all Partnership Units of the Partnership that the General Partner may authorize or issue in the future, that pursuant to the terms thereof, rank senior to the Series A Preferred Units with respect to distributions and upon the liquidation, dissolution or winding up of the Partnership (“Senior Securities”) and to any debt securities of the Partnership and any Partnership financing. The term “Units” shall not include convertible debt securities unless and until such securities are converted into Partnership Units.

2.Distributions.

(a)Each Series A Preferred Unit shall be entitled to receive, subject to Section 2(b) of this Addendum, at such times and in such amounts as authorized by the General Partner, out of funds legally available for the payment of distributions, the Series A Distribution. The “Series A Distribution” shall mean the sum of the Common Unit Distribution plus, if and to the extent applicable, any Additional REIT Share Amount (as defined below). The “Common Unit Distribution” shall mean cash distributions per Series A Preferred Unit equal in value to (i) the amount of any cash distribution declared or paid, without duplication, on a Common Unit at any time such Series A Preferred Unit was outstanding multiplied by (ii) the Series A Conversion Factor (as defined below) in effect on the date of declaration of such distribution. For the avoidance of doubt, the distributions paid to Series A Unitholders shall be in the form of cash



consideration and any non-cash consideration distributed with respect to a Common Unit or REIT Share shall be taken into account in the Series A Conversion Factor or the Conversion Factor, as applicable. Any distribution payable on a Series A Preferred Unit for any partial distribution period during which such Series A Preferred Unit was outstanding will be computed in accordance with Section 5.02 of the Partnership Agreement. The distributions upon the Series A Preferred Units shall be paid in arrears (without interest) on the distribution payment date with respect thereto. If the full amount of the Series A Distribution is not paid on such distribution payment date, then the Series A Distribution shall accrue, whether or not the Partnership has earnings, whether or not there are funds legally available for the payment thereof and whether or not such distributions are earned, declared or authorized. The General Partner shall not declare, and the Partnership shall not pay or set aside for payment, any distribution on Junior Securities or redeem any Partnership Units held by any Person, including, without limitation, the General Partner and its Affiliates, at any time that the Series A Distribution has accrued but remains unpaid with respect to any outstanding Series A Preferred Unit unless concurrently with such distribution on Junior Securities or redemption the aggregate accrued but unpaid Series A Distribution on all outstanding Series A Preferred Units has been paid in full; provided that the Partnership shall be required to redeem pursuant to Section 5 of this Addendum any Series A Preferred Units submitted for redemption pursuant to such section and shall make the payment of the applicable Redemption Price prior to the payment of any Series A Distributions on any Series A Preferred Units not so redeemed, and in such event, any unpaid distributions to the Series A Unitholders that the Series A Unitholders would otherwise be entitled to receive shall accrue and remain payable to the Series A Unitholders. Any distribution payment made on the Series A Preferred Units shall first be credited against the earliest accrued but unpaid distributions due with respect to such Series A Preferred Units which remain payable. The record and payment dates for the distributions upon the Series A Preferred Units, to the extent not prohibited by applicable law, shall be the same as the record and payment dates for the dividends or other distributions upon the Common Units.

(b)All cash payments with respect to the Series A Preferred Units will be fully subordinated to the obligations of the Partnership with respect to Senior Securities or under any indebtedness of the Partnership or its subsidiaries outstanding from time to time. No distributions on Series A Preferred Units shall be declared by the Partnership or paid or set apart for payment by the Partnership at such time as the terms and provisions of any agreement to which the Partnership is bound relating to its indebtedness prohibits such declaration, payment or setting apart for payment or provides that such declaration, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if such declaration or payment shall be restricted or prohibited by law.

(c)“Series A Conversion Factor” means 1.0, provided that upon the occurrence of an Adjustment Event, the Series A Conversion Factor shall be adjusted by multiplying the Series A Conversion Factor (as in effect prior to such adjustment) by a fraction, the numerator of which shall be the number of Common Units issued and outstanding on the record date for such Adjustment Event (assuming for such purposes that such Adjustment Event has occurred as of such time), and the denominator of which shall be the actual number of Common Units (determined without the above assumption) issued and outstanding on such date; provided that if the Adjustment Event had the same impact and effect on the Common Units as an event under clause (A) of the definition of “Conversion Factor” had on the REIT Shares, then the Series A Conversion Factor shall be adjusted, or not be adjusted, as applicable, to the extent necessary to



prevent any duplication in the Series A Conversion Factor and the Conversion Factor caused by the Adjustment Event and such other event impacting the Conversion Factor. In the event that the Partnership makes a distribution on its Common Units in Partnership Units that are not Common Units, reclassifies or recapitalizes its Common Units in Partnership Units that are not Common Units or distributes to all Common Unitholders evidences of its indebtedness or assets (including securities, but excluding any distribution that is classified as an Adjustment Event), which evidences of indebtedness or assets are not distributed to all Partners in accordance with their Combined Percentage Interests, the Series A Conversion Factor shall be modified by the General Partner in good faith to maintain the equivalent economic benefits to the Series A Unitholders relative to the holders of Common Units as prior to such Adjustment Event. For the avoidance of doubt, if the General Partner receives a Series A Conversion Notice after the record date for a Series A Distribution, but prior to the payment date of such Series A Distribution, the Series A Conversion Factor shall be determined as if the General Partner had received the Series A Conversion Notice immediately prior to the record date for such Series A Distribution.

(d)The “Additional REIT Share Amount” shall mean the amount(s) by which the Common Unit Distribution would increase if the Common Unit Distribution were calculated for purposes of Section 2 as the amount of cash distributions per Series A Preferred Unit equal in value to (i) the amount of any cash dividend declared or paid, without duplication, on a REIT Share at any time such Series A Preferred Unit was outstanding multiplied by (ii) the Conversion Factor in effect on the date of declaration of such dividend multiplied by (iii) the Series A Conversion Factor in effect on the date of declaration of such dividend.

3.Liquidation Preference.

(a)Upon any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Partnership (each, a “Liquidation Event”), each Series A Preferred Unit then outstanding shall be entitled to be paid, out of the assets of the Partnership legally available for distribution to its Partners, a liquidation preference equal to $26.50 per Series A Preferred Unit (such amount, the “Liquidation Preference”), plus an amount equal to all accrued but unpaid Series A Distributions with respect to such Series A Preferred Units, before any distribution of assets is made to holders of any Junior Securities.

(b)If upon any Liquidation Event the available assets of the Partnership are insufficient to pay the full amount of the Liquidation Preference on all outstanding Series A Preferred Units then the holders of the Series A Preferred Units shall share ratably in any distribution of assets in proportion to the full Liquidation Preference to which they would otherwise be respectively entitled.

(c)Upon a Liquidation Event, unless the entire Liquidation Preference (and all accrued but unpaid Series A Distributions) with respect to all outstanding Series A Preferred Units has been or contemporaneously is declared and paid or declared and a sum sufficient for the payment thereof is set apart for payment for the satisfaction of the entire Liquidation Preference, no distributions shall be declared or paid or set aside for payment, nor shall any other distribution be declared or made upon, any Junior Securities, nor shall any Junior Securities be redeemed, purchased or otherwise acquired for any consideration by the Partnership (except by conversion into or exchange for other Junior Securities).




(d)Upon the General Partner’s provision of written notice as to the effective date of any Liquidation Event to each Series A Unitholder of record, accompanied by a check or receipt of electronically transferred funds in the amount of the full Liquidation Preference plus any accrued but unpaid Series A Distributions to which each such Series A Unitholder of record is entitled, the Series A Preferred Units shall no longer be deemed outstanding Partnership Units and all rights of the holders of such Partnership Units will terminate. Such notice shall be transmitted by facsimile or e-mail or sent by first class mail, postage pre-paid, to each Series A Unitholder at the respective email addresses or mailing addresses, as applicable, of such holders as the same shall appear on Exhibit A of the Partnership Agreement, as may be amended from time to time, or reflected in the books and records of the Partnership. After payment of the full amount of the Liquidation Preference and all accrued but unpaid Series A Distributions to which they are entitled, the Series A Unitholders will have no right or claim to any of the remaining assets of the Partnership.

4.Change of Control.

(a)Upon the occurrence of (i) a Transaction or (ii) any merger, consolidation or other combination of the Partnership with or into another Person or sale of all or substantially all of its assets (other than in connection with a change in the Partnership’s state of incorporation or organizational form), in each case which results in a change of control of the Partnership (each of clauses (i) and (ii), a “Change of Control”) in which all or a portion of the consideration consists of cash, each Series A Preferred Unit then outstanding, whether or not vested, shall entitle its holder to receive an aggregate amount of consideration equal to the greater of (i) the Liquidation Preference and (ii) (x) the amount of consideration that a holder of a REIT Share will receive in connection with such Change of Control multiplied by (y) the Conversion Factor in effect on the date of such Change of Control multiplied by (z) the Series A Conversion Factor in effect on the date of such Change of Control (such amount, the “Consideration Amount”). The proportions of cash and other consideration and form of non-cash consideration comprising such Consideration Amount shall be the same as those comprising the consideration received by a holder of a REIT Share in respect of such REIT Share; provided that if any portion of the Consideration Amount consists of non-cash consideration that is not in the form of freely tradeable Publicly Traded Common Stock (as defined below), all consideration paid to the Series A Unitholders will be in cash. Upon a Change of Control, immediately following the delivery of the Consideration Amount to each Series A Unitholder, the Series A Preferred Units held by such Series A Unitholder shall be extinguished and cancelled and the Series A Unitholders will have no right or claim to any of the remaining assets of the Partnership or in connection with a Change of Control.

(b)Upon a Change of Control in which the consideration consists of all equity securities (such Change of Control, an “Equity Change of Control”), each Series A Preferred Unit then outstanding, whether vested or unvested, shall remain outstanding if (i) the Partnership is the surviving entity following the consummation of such Equity Change of Control or (ii) to the extent the Partnership is not the surviving entity following the consummation of such Equity Change of Control, the successor entity to the Partnership in connection with such Equity Change of Control assumes the obligations of the Partnership with respect to the Series A Preferred Units; provided in each case that (x) the terms of the Series A Preferred Units shall be adjusted as necessary to provide the same economic benefit to the holders of the Series A Preferred Units as prior to such Equity Change of Control, (y) all other terms of the Series A Preferred Units remain unchanged in



all material respects, including, without limitation, the ability to convert, directly or indirectly, into common units of the successor partnership and, in turn, common shares of beneficial interest or common stock of a corporation or other entity organized and existing under the laws of the United States or any state thereof and traded on a national securities exchange (or which will be so traded when issued or exchanged in connection with such Equity Change of Control) (“Publicly Traded Common Stock”), and (z) all unvested Series A Preferred Units shall vest upon the closing of such Equity Change of Control.

(c)Notwithstanding the foregoing, subject to Section 5(e), if any Equity Change of Control would result in material federal income taxes being incurred by a Series A Unitholder (as determined on an individual basis), the Partnership shall be required to redeem a number of Series A Preferred Units held by such Series A Unitholder so as to provide such Series A Unitholder with an amount of cash that is necessary to satisfy such material federal income tax incurred by such Series A Unitholder based on a redemption price per Series A Preferred Unit calculated in accordance with Section 5(d). Within ten (10) business days of the consummation of an Equity Change of Control that would entitle such Series A Unitholder to redemption of such Series A Unitholder’s Series A Preferred Units pursuant to this Section 4(c), the General Partner shall provide such Series A Unitholder with written notice of such event (the “Equity Change of Control Notice”).
 
(d)Notwithstanding anything to the contrary herein, upon any Change of Control, the Partnership may elect, in its sole discretion, to pay in respect of each Series A Preferred Unit then outstanding, whether or not vested, an amount of cash equal to the greater of (i) the Liquidation Preference, plus all accrued but unpaid Series A Distributions on such Series A Preferred Units and (ii) the Consideration Amount. After payment of the amount contemplated by this Section 4(d), the Series A Preferred Units held by such Series A Unitholder shall be extinguished and cancelled and the Series A Unitholders will have no right or claim to any of the remaining assets of the Partnership or in connection with a Change of Control.

(e)Upon the General Partner’s provision of written notice as to the effective date of any applicable Change of Control or payment pursuant to Section 4(d), accompanied by a check or receipt of electronically transferred funds in the amount of the full amount payable pursuant to Section 4(a) (solely in a case where the consideration is all cash), Section 4(d) or the cash value equal to the Series A Preferred Units so redeemed pursuant to Section 4(c), as applicable, to which each record holder of the Series A Preferred Units is entitled, the Series A Preferred Units extinguished pursuant to Section 4(a) or 4(d) or redeemed pursuant to Section 4(c) shall no longer be deemed outstanding Units of the Partnership and all rights of the holders of such Units will terminate.  Such notice shall be transmitted by facsimile or e-mail or sent by first class mail, postage pre-paid, to each record holder of the Series A Preferred Units at the respective email addresses or mailing addresses, as applicable, of such holders as the same shall appear on Exhibit A of the Partnership Agreement, as may be amended from time to time, or reflected in the books and records of the Partnership.
 
(f)For purposes of this Section 4, the value of any non-cash consideration that comprises all or a portion of the Consideration Amount shall be determined as follows:




(i)
In the case of Publicly Traded Common Stock, the value shall be the volume-weighted average closing price per share of such Publicly Traded Common Stock for the period of ten (10) consecutive trading days immediately preceding the closing of the Change of Control; and

(ii)
In the case of any other non-cash consideration, the value shall be the fair market value of such consideration as determined in good faith by the board of directors of the General Partner for purposes of the Change of Control.

5.Redemption Rights.

(a)The Series A Preferred Units are not redeemable by the Partnership; provided, however, that the foregoing shall not prevent the purchase or acquisition by the Partnership of Series A Preferred Units pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series A Preferred Units where the holder thereof agrees to participate in such purchase or exchange; and provided further that the Partnership may redeem Series A Preferred Units pursuant to Sections 4(c) and 5(b) or may extinguish and cancel Series A Preferred Units pursuant to Sections 4(a) and 4(d), as applicable.

(b)Notwithstanding the foregoing, at any time prior to the third anniversary from the date on which the Series A Preferred Units were issued by the Partnership (the “Original Issue Date”), in the event that the Partnership disposes of any Subsidiary or undertakes a restructuring of the Partnership or any Subsidiary other than in connection with a Change of Control and as a result of such disposition or restructuring, as applicable, gain recognized by the Partnership is allocated to the holders of Series A Preferred Units for federal income tax purposes pursuant to Section 704(c) of the Code (“Built-In Gain”), then any affected Series A Unitholder may request that the Partnership redeem, and the Partnership shall be required to so redeem, a number of Series A Preferred Units sufficient to cover any federal, state and local income tax obligations resulting from such allocation of Built-In Gain.

(c)Within ten (10) business days of the consummation of an event resulting in a Series A Unitholder being allocated Built-In Gain that would entitle such Series A Unitholder to redemption of such Series A Unitholder’s Series A Preferred Units pursuant to Section 5(b), the Partnership shall provide such Series A Unitholder with written notice of such event and the allocated Built-In Gain (the “Built-In Gain Event Notice”).

(d)Any Series A Preferred Units redeemed pursuant to Section 4(c) or Section 5(b) will be redeemed for cash at a price per unit equal to the greater of (i) the Liquidation Preference and (ii) the closing price of a REIT Share for the trading day immediately preceding the Redemption Effective Date multiplied by (x) the Conversion Factor in effect on such trading day multiplied by (y) the Series A Conversion Factor in effect on such trading day, in each case plus all accrued but unpaid Series A Distributions with respect to such redeemed Series A Preferred Units (the “Redemption Price”).

(e)To exercise the redemption rights set forth in Section 4(c) or Section 5(b), the Series A Unitholder must deliver a Series A Redemption Notice to the Partnership (with a copy to the General Partner) not less than five (5) nor more than thirty (30) days after date such Series A



Unitholder receives the Equity Change of Control Notice or Built-In Gain Event Notice, as applicable, along with a certification to the General Partner as to the amount of tax liability associated with the vesting of Series A Preferred Units resulting from such Equity Change of Control or Built-In Gain Event and provide reasonable tax documentation to substantiate the associated tax liability.

(f)A redemption of Series A Preferred Units for which the holder thereof has given a Series A Redemption Notice shall occur automatically after the close of business on the third (3rd) business day following the date that the Series A Redemption Notice is delivered to the Partnership (the “Redemption Effective Date”) without any action on the part of such Series A Unitholder. On the Redemption Effective Date, upon receipt by such redeeming Series A Unitholder of a check or receipt of electronically transferred funds in an amount equal to the Redemption Price multiplied by the number of Series A Preferred Units being redeemed, such redeemed Series A Preferred Units shall no longer be deemed outstanding Units of the Partnership and all rights of such Series A Unitholder with respect to such redeemed Partnership Units will terminate. Upon the redemption of Series A Preferred Units as provided in the first sentence of this Section 5(f), the Partnership shall deliver to such Series A Unitholder, upon his or her written request, a certificate of the General Partner certifying the number of remaining Series A Preferred Units, if any, held by such Person immediately after such redemption.

6.Voting Rights.

(a)The holders of the Series A Preferred Units shall be entitled to vote on any matter that requires the approval of the Partners of the Partnership, voting together with the holders of Common Units as a single class, except as specifically provided in the Partnership Agreement or as otherwise required by law. Each Series A Preferred Unit will have the right to a number of votes equal to the number of Common Units that would be issuable upon conversion of each Series A Preferred Unit as of the date of such vote as further described in Section 7.

(b)In addition to the voting rights set forth in Section 6(a) or any other provision hereunder, so long as any Series A Preferred Units remain outstanding, the Partnership or the General Partner, as applicable, shall not, without the consent of the Series A Unitholders representing a majority of the outstanding Series A Preferred Units, voting as a separate class, amend any provision of the Partnership Agreement, including, without limitation, this Schedule A, or the governing documents of the General Partner, if such amendment would materially and adversely affect the rights, preferences, privileges, voting rights or other terms of the Series A Preferred Units; provided that the Partnership may, subject to Section 1 of this Addendum, issue Additional Equity in accordance with Section 4.02 of the Partnership Agreement (which, for the avoidance of doubt, may include the adoption and implementation of a long-term incentive plan with respect to any series or class of Units held or issued by the Partnership) without obtaining the consent of the Series A Unitholders.
 
7.Conversion.

(a)Notwithstanding anything to the contrary set forth herein, at any time on or following the second anniversary of the Original Issue Date, each Series A Preferred Unit shall be automatically converted, without any further action by the General Partner, the Partnership, or the



holder thereof, into a number of Common Units equal to one (1) multiplied by the Series A Conversion Factor in effect on the Mandatory Conversion Date (as defined below), on the trading day immediately following the earlier to occur of (i) the time at which the closing price of a REIT Share on the NYSE has been equal to or greater than $26.50 per share for three (3) consecutive trading days and (ii) the time at which the volume-weighted average price of a REIT Share on the NYSE has been equal to or greater than $26.50 per share for any period of ten (10) consecutive trading days (each, a “Mandatory Conversion Event” and such day, the “Mandatory Conversion Date”). Within five (5) days after the Mandatory Conversion Date, the Partnership shall deliver a notice (a “Mandatory Conversion Notice”) in the form attached to the Partnership Agreement as Exhibit D to each holder of a Series A Preferred Unit. A Mandatory Conversion Notice shall be provided in the manner provided in Section 12.01 of the Partnership Agreement.

(b)At any time following the Original Issue Date, each Series A Unitholder shall have the right to convert, in such holder’s sole discretion, all or a portion of such holder’s Series A Preferred Units (the “Optionally Converted Series A Units”) into Common Units in accordance with the terms and conditions provided in this Section 7(b). Each Optionally Converted Series A Unit shall entitle its holder to receive from the Partnership a number of Common Units equal to one (1) multiplied by the Series A Conversion Factor in effect on the Conversion Effective Date (as defined below). To exercise the conversion right set forth in this Section 7(b), a holder of one or more Series A Preferred Units must deliver a notice (a “Series A Conversion Notice”) in the form attached to the Partnership Agreement as Exhibit E to the Partnership (with a copy to the General Partner). A conversion pursuant to this Section 7(b) shall occur on the second (2nd) business day after the date that the Series A Conversion Notice is received by the Partnership (the “Conversion Effective Date”).

(c)A conversion of Series A Preferred Units for which the holder thereof has given a Series A Conversion Notice or a conversion of Series A Preferred Units pursuant to a Mandatory Conversion Event shall occur automatically after the close of business on the applicable Mandatory Conversion Date or Conversion Effective Date without any action on the part of such Series A Unitholder, as of which time such Series A Unitholder 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 number of Common Units issuable upon such conversion. After the conversion of Series A Preferred Units as provided in the preceding sentence, the Partnership shall deliver to such Series A Unitholder, upon his or her written request, a certificate of the General Partner certifying the number of Common Units and remaining Series A Preferred Units, if any, held by such Person immediately after such conversion. The assignee of any Limited Partner pursuant to Article IX of the Partnership Agreement may exercise the rights of such Limited Partner pursuant to this Section 7, and such Limited Partner shall be bound by the exercise of such rights by such assignee.

(d)No payment or adjustment will be made upon a conversion of any Series A Preferred Units for distributions with respect to Common Units issued upon such conversion with a record date prior to the Mandatory Conversion Date or Conversion Effective Date, as applicable; provided that the holders thereof shall remain entitled to receive any distributions that have been declared or otherwise accrued but remain unpaid as of such Mandatory Conversion Date or Conversion Effective Date.

8.    Limitation of Liability. Except to the extent required by applicable law, no Series A Unitholder shall be bound by, or be personally liable for, the expenses, liabilities or obligations of the Partnership in excess of the value






Exhibit 99.1

Columbia Property Trust Completes Acquisition of Normandy Real Estate Management
Closes on previously announced acquisition of Normandy and announces related leadership and board appointments
Anticipated to become co-general partner in Terminal Warehouse project in New York City’s West Chelsea neighborhood
NEW YORK (Jan. 27, 2020) - Columbia Property Trust, Inc. (NYSE: CXP) today announced that it has closed on its previously announced acquisition of Normandy Real Estate Management, LLC, a developer, operator and investment manager of office and mixed-use assets in New York, Boston, and Washington, D.C. Columbia acquired the operating platform and real property interests of Normandy for aggregate cash and stock consideration of approximately $100 million, exclusive of transaction and closing costs. This consideration consisted of $13.5 million in cash and approximately $86.5 million in convertible preferred units, issued at $26.50 per share.
“This acquisition supports our strategy to drive financial performance for investors by strengthening our capabilities across key markets, while adding a full development arm and expanded pipeline,” stated Nelson Mills, CEO of Columbia. “Our successful leasing and repositioning efforts have produced a well-leased portfolio of exceptional assets in New York, San Francisco, Washington, D.C. and Boston. The addition of this highly capable team’s talent, relationships, and market knowledge will fuel additional opportunities for us to build upon our long-term record of value creation for our shareholders.”
Anticipated Investment in Terminal Warehouse
Related to the acquisition of Normandy, Columbia has reached an agreement-in-principle to commit a $53 million equity investment in the Terminal Warehouse joint venture. Upon completion of this investment, which is subject to continuing negotiations and is anticipated to close within the next 30 days, Columbia would become co-general partner alongside L&L Holding Company, LLC and Normandy Fund IV. The venture - which also includes Allianz Real Estate; an institutional investor advised by J.P. Morgan Asset Management; two pension funds managed by LaSalle Investment Management; and a sovereign wealth fund managed by Stepstone - intends to transform the 125-year old industrial warehouse, located on Eleventh Avenue in New York’s West Chelsea neighborhood, into a 1.2 million-square-foot, Class-A office and retail destination.
Transition of Normandy’s Management Businesses
With this transaction, Columbia has acquired Normandy’s property and investment management businesses and their related fee streams, as well as the general partnership interests and certain limited partnership interests totaling approximately 2 percent in each of Normandy Real Estate Fund III, LP; Normandy Real Estate Fund IV, LP; and Normandy Opportunity Zone Fund, LP.
Collectively, these funds represent approximately 7 million square feet of commercial real estate under management in the Northeastern U.S., including several prominent Manhattan projects. Among these are the Terminal Warehouse project and 888 Broadway in the Flatiron District, as well as the previously announced joint venture partnerships Columbia formed with Normandy at 799 Broadway near Union Square Park and the redevelopment of 101 Franklin (formerly known as 250 Church Street) in TriBeCa.
As previously reported, Columbia expects the net fee streams from these property and investment management businesses to be modestly accretive to its net income and Normalized Funds from Operations for 2020.




Leadership Appointments
Effective with the closing of the Normandy transaction, Jeff Gronning, who founded Normandy with fellow partners Finn Wentworth and David Welsh, has been named Executive Vice President and Chief Investment Officer of Columbia. Additionally, several other former partners of Normandy have been named to leadership positions with Columbia. Gavin Evans has been named Executive Vice President, Acquisitions, and Paul Teti will serve as Senior Vice President, Leasing and Asset Management. Other appointments of senior employees from Normandy include Steve Trapp, Senior Vice President, Construction and Development; and Steve Smith, Senior Vice President, Property Management.
Columbia also anticipates that its Board of Directors will elect Wentworth to the Board as a non-executive director at the Board’s next meeting, in February.
Issuance of Equity Awards
In connection with the completion of its acquisition of Normandy (“the Transaction”), Columbia has issued as part of the $100 million consideration an aggregate of 486,792 Series A Convertible, Perpetual Preferred Units (“Preferred OP Units”) of Columbia Property Trust Operating Partnership, L.P. (“Columbia OP”) to eight former employees of Normandy. The Preferred OP Units were issued as a material inducement for employment with the company in reliance on the employment inducement exemption under NYSE Rule 303A.08.
The Preferred OP Units vest over four years, with 25% vesting on the second anniversary of the closing date of the Transaction, 60% vesting on the third anniversary of the closing date, and the remaining 15% vesting on the fourth anniversary of the closing date, subject in each case to the holder being employed by the company or Columbia OP on each applicable vesting date. The Preferred OP Units have a liquidation preference of $26.50 per share, rank senior to the other undesignated partnership units of Columbia OP (referred to as “Common OP Units”) and generally are not redeemable by Columbia OP, subject to certain exceptions for federal income tax purposes.
At any time following the issuance of the Preferred OP Units (the “Original Issue Date”), holders of Preferred OP Units may convert all or a portion of such units into Common OP Units. In addition, at any time following the second anniversary of the Original Issue Date, each Preferred OP Unit shall automatically be converted into a Common OP Unit on the trading day immediately following the earlier to occur of (i) the time at which the closing price of the Columbia Common Stock on the NYSE has been equal to or greater than $26.50 for three consecutive trading days and (ii) the time at which the volume-weighted average price of a share of Columbia Common Stock has been equal to or greater than $26.50 per share for any period of ten consecutive trading days. Preferred OP Units convert to Common OP Units on a one-for-one basis, subject to adjustments relating to the exchange of Common OP Units for Columbia Common Stock pursuant to the amended and restated partnership agreement of the Columbia OP.
Advisors
Morgan Stanley acted as exclusive financial advisor for Columbia; Kelley Drye & Warren and King & Spalding acted as legal advisors to Columbia. Moelis & Company acted as exclusive financial advisor and Goodwin Procter as legal advisor to Normandy.
About Columbia Property Trust
Columbia Property Trust (NYSE: CXP) creates value through owning, operating and developing Class-A office buildings in high-barrier U.S. office markets, primarily New York, San Francisco, Washington D.C., and Boston. The Columbia team is deeply experienced in transactions, asset management and repositioning, leasing, development, and property management. It employs these competencies to grow value across its high-quality, well-leased portfolio of 17 properties that contain approximately seven million rentable square feet, as well as two properties under development, and also drives revenues from approximately 8 million square feet under management for private investors and third parties. Columbia




has investment-grade ratings from both Moody’s and S&P Global Ratings. For more information, please visit www.columbia.reit.

Forward-Looking Statements:
Certain statements contained in this press release other than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Such statements include, in particular, statements about the anticipated benefits of certain transactions to stockholders and investors, the results of the company’s investments, and the ability of the company and its leadership team to achieve company objectives, and are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Any such forward-looking statements are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual conditions, our ability to accurately anticipate results expressed in such forward-looking statements, including our ability to generate positive cash flow from operations, make distributions to stockholders, and maintain the value of our real estate properties, may be significantly hindered. See Item 1A in Columbia Property Trust’s Annual Report on Form 10-K for the year ended December 31, 2018, and subsequent Quarterly Reports on Form 10-Q, for a discussion of some of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements. The risk factors described in our Annual Report and Quarterly Reports are not the only ones we face, but do represent those risks and uncertainties that we believe are material to us. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may also harm our business. We make no representations or warranties (express or implied) about the accuracy of any forward-looking statements contained in this press release, and we do not undertake any duty to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, other than as required by law.

Media Contact:                
Bud Perrone     
T 212 843 8068     
E bperrone@rubenstein.com                 

Investor Relations:
Matt Stover
T 404 465 2227
E IR@columbia.reit

Private Fund Investors Contact:
Melissa Donohoe
T 212.433.4112
E funds@columbia.reit