Exhibit 10.1
SIXTH AMENDMENT TO
FIFTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF
LEPERCQ CORPORATE INCOME FUND L.P.
This SIXTH AMENDMENT TO FIFTH AMENDED AND RESTATED AGREEMENT OF
LIMITED PARTNERSHIP OF LEPERCQ CORPORATE
INCOME FUND L.P. (this "Amendment") is
made and effective as of January 3, 2005 by
and among the entities and
individuals signatory hereto.
A. Lepercq Corporate Income Fund L.P., a Delaware limited
partnership (the "Partnership"), is
governed by that certain Fifth Amended and
Restated Agreement of Limited Partnership,
dated as of December 31, 1996, as
amended by Amendment No. 1 thereto dated as
of December 31, 2000, by First
Amendment thereto effective as of June 19,
2003, by Second Amendment thereto
effective as of June 30, 2003, by Third
Amendment thereto effective as of
December 31, 2003, by Fourth Amendment
thereto effective as of October 28, 2004,
and by Fifth Amendment thereto effective as
of December 8, 2004 (the
"Agreement"). Unless otherwise defined, all
capitalized terms used herein shall
have such meaning ascribed such terms in
the Agreement.
B.
Lexington Corporate Properties Trust, a Maryland real estate
investment trust ("LXP") is the sole
unitholder of each of (i) Lex GP-1 Trust, a
Delaware statutory trust ("Lex GP") and
(ii) Lex LP-1 Trust, a Delaware
statutory trust ("Lex LP"). Lex GP is the
general partner of the Partnership,
Lepercq Corporate Income Fund L.P., a
Delaware limited partnership, and Net 3
Acquisition L.P., a Delaware limited
partnership (collectively, the "Operating
Partnerships"). Lex LP is the Initial
Limited Partner of each of the Operating
Partnerships.
C. Pursuant to that certain Underwriting Agreement, dated as of
December 2, 2004, by and among Bear,
Stearns & Co. Inc. (the "Underwriter "), on
the one hand, and LXP and the Operating
Partnerships, on the other, and as of
the date hereof, LXP has completed the
offer and sale (the "Offering") to the
Underwriter of an additional 400,000
preferred shares of beneficial interest,
classified as 6.50% Series C Cumulative
Convertible Preferred Stock, par value
$0.0001 per share, of LXP ("Preferred
Shares"), pursuant to a prospectus
supplement dated December 3, 2004 and the
accompanying base prospectus dated
October 22, 2003.
D. The Preferred Shares carry a (i) cumulative preferred
dividend, (ii) liquidation preference and
(iii) conversion right.
E. Pursuant to Section 4.2 of the Agreement, the Partnership
may
issue additional partnership interests to
LXP and its affiliates in connection
with the issuance of shares by LXP provided
LXP makes a capital contribution to
the Partnership of the proceeds raised in
connection with such issuance.
<PAGE>
F. LXP has agreed to contribute a portion of the proceeds of
the
Offering to the Partnership in exchange for
Series C Preferred Operating
Partnership Units ("Preferred OP Units") in
the Partnership to be issued to an
affiliate of LXP, Lex LP.
G. As required by Section 4.2 of the Agreement, the Preferred
OP
Units have designations, preferences and
other rights such that the economic
interests are substantially similar to the
designations, preferences and other
rights of the Preferred Shares, as further
described and set forth in the
Certificate of Designation for the
Preferred OP Units dated as of December 8,
2004.
H. As of the date hereof, and pursuant to the terms of the
Agreement, the parties hereto desire to
amend the Agreement to reflect the
issuance of an additional 280,150 Preferred
OP Units to Lex LP as well as all
other changes in the ownership of
Partnership Units since the date of the
Agreement by amending and restating Exhibit
A to the Agreement.
NOW, THEREFORE, the undersigned, being desirous of effectuating
the foregoing and amending the Agreement
accordingly, hereby enter into this
Amendment and amend the Agreement as
follows:
1. Preferred OP Units. Lex LP is hereby issued 280,150
Preferred
OP Units and shall have the rights,
preferences and privileges as set forth in
the Certificate of Designation. To the
extent there is a conflict between the
terms of the Certificate of Designation and
the terms of the Agreement, the
terms of the Certificate of Designation
shall control.
2. Exhibit A. Exhibit A to the Agreement is deleted in its
entirety and replaced with Exhibit A
hereto.
3. Miscellaneous. Except as amended hereby, the Agreement shall
remain unchanged and in full force and
effect.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
A-2
<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed this
Amendment on behalf of the Partnership in
accordance with the provisions of
Section 14.1 of the Agreement as of the
date first written above.
GENERAL PARTNER:
LEX GP-1 TRUST
By: /s/ T.
Wilson Eglin
-------------------------------
T. Wilson Eglin
President
<PAGE>
EXHIBIT A
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Percentage
Name and Address of Partner
Capital
Partnership
Interest of
Redemption
Contribution
Units
Class Exercise Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
General Partner
---------------
Lex GP-1 Trust
$100
217,387 0.84731%
N/A
Limited Partner
---------------
Lex LP-1 Trust
$100
21,487,537.5 83.75165%
N/A
Series B Preferred Limited Partner
----------------------------------
Lex LP-1 Trust
$52,645,950
2,105,838 100% (of
N/A
Series B)
Series C Preferred Limited Partner
----------------------------------
Lex LP-1 Trust
$105,708,644.63 2,171,166
100%
(of
N/A
Series C)
Special Limited Partners
0.42159%
------------------------
Douglas S. Altabef
___
6,556
N/A
The LCP Group, L.P.
___
28,057
N/A
Ellen C. Monk
___
4,065.5
N/A
Terrell R. Peterson Trust dtd. 4/5/90
___
2,608
N/A
E. Robert Roskind Family, L.P.
___
41,813
N/A
Richard J. Rouse
___
16,063
N/A
Edward C. Whiting
___
9,001
N/A
Dubuque Limited Partner
15-Jan-99
-----------------------
Wellington Real Estate Investments L.P.
12,893 0.05025%
6-Dec-02
</TABLE>
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Property Limited Partners
-------------------------
1) Barngiant Livingston(1)
0.06020% March 1,
2004
John Heubel
0.25
1,951
Leone Heubel
0.25
1,951
Antony Monk Ins. Trust f/b/o Joanna Monk
0.00033
135
Antony Monk Ins. Trust f/b/o Jonathan
Monk0.00033
136
Antony Monk Ins. Trust f/b/o Samantha
Monk0.00033
135
Ellen C. Monk
0.001
406
F/B/O Jeffrey W. Pomerantz (Harry
0.5
3,902
Pomerantz Trust)
F/B/O Michele P. Kolz (Harry Pomerantz
0.5
3,902
Trust)
D. Swarzman
0.125
976
J. Swarzman
0.125
975
L. Swarzman
0.125
975
2) Barnhale Modesto
0.11003% February
1, 2006
Roger Brooks
1,655
Jeffrey Caspe
115.5
4,967
Richard Caspe
77
3,311
Richard Jacobson
3,311
Dwight L. Long Trust
1,655
</TABLE>
_____________________________
1 For purposes of Section 5.1, Property Limited Partners that
contributed interests in Barngiant Livingston (except for
Kirschner
Brothers Oil Co.) shall be entitled to cash distributions of
$2,200
annually
in 1996 through 2003, and $350 in 2004.
A-2
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership
Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Albert J. Mintzer, Trustee
Albert J. Mintzer Revocable Trust dtd
3/24/92
38.5
1,656
Estate of Thomas S. Nurnberger
1,655
Jack Pester
77
3,311
Sheldon I. Rips
19.25
1,655
Renee G. Rubinow Soskin Trust
1,655
William A. Stauffer
19.25
1,656
E. Robert Roskind
20.2
872
(economic interest only)
Barnes Properties, Inc.
20.2
871
(economic interest only)
3) Barnes Rockshire
0.11453% March 1,
2005
Daniel R. Baty
1
3,672
Charles W. Coker, Jr.
1
3,672
Richard M. Durwood
1.5
5,508
William Fromm
1
3,672
The Residuary Trust U/W Isadore L.
0.5
1,836
Krischner
Antony Monk Ins. Trust f/b/o Joanna Monk
0.00050
2
Antony Monk Ins. Trust f/b/o Jonathan
Monk0.00025
1
Antony Monk Ins. Trust f/b/o Samantha
Monk0.00025
1
Ellen C. Monk
0.001
4
Albert Silverman
1
3,672
Randi C. Halpern TTEE
0.5
1,836
Karin Alyce Silverman TTEE
0.5
1,836
R. James Thornton
1
3,672
</TABLE>
A-3
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
4) Barnvyn Bakersfield
0.06977% January 1,
2003
John P. Jennings
6,257
Robert Miller
1.47
5,485
(William D.) Kimpton Revocable Trust
0.26
978
Jack Brownstein
5,181
5) Barnhech Montgomery(2)
0.03651% May 1,
2006
Crestar Bank, Co-Ttee u/a dtd 1/31/86
1
1,703
James A. Linen IV Irrevocable Trust
Charles R. Perko
1
1,703
Rogers Living Trust, dtd 10/7/97
0.5
852
William A. Rogers III & Shirley
Rogers
Herbert G. Roskind, Jr.
0.5
852
Gary Smith
1
1,703
Bruce A. Wallis
0.25
426
Lynda W. Johnson
0.25
426
Jacqueline Gay Gaines
1,703
6) Barnward Brownsville
0.09570% November
2, 2004
Aaron David Bear
1
5,424
Robert Bole
1
5,424
Barry Pidgeon
1
5,424
E. Robert Roskind
0.26
1,428
(economic interest only)
</TABLE>
_____________________________
2 For purposes of Section 5.1, Property Limited Partners that
contributed interests in Barnhech Montgomery shall be entitled to
cash
distributions of $490 annually in 1996 through 2005, and $163 in
2006.
A-4
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Barnes Properties, Inc.
0.26
1,428
(economic interest only)
Red Butte Limited Partners
4.74797% May 22,
1998
--------------------------
Partners of Barnshore Associates
-E. Robert Roskind Family L.P.
4,245
-Ellen C. Monk
2,122
-Richard J. Rouse
2,123
-Edward C. Whiting
2,123
-Steven Boughner
2,123
-Peter Kinnunen
1,061
-Terrell R. Peterson Trust
1,061
dtd. 4/5/90
Abbott, Mary I. Family Trust
16,921
Babush, R.K.
1,811
Baer, Verdilla
33,842
Barry, Joanne
8,461
Becker, Warren J.
16,921
Sharon Bracken, Trustee, Sharon Bracken
33,842
Marital Trust
Calkins, Windsor & Judy
16,921
Cherrington, James S.
16,921
Dallas, Robert H. (Sr.)
16,921
Danzig, Murray (Alan J. Rubens, escrow
33,842
agent)
Diversi, Henry L. (Jr.)
10,861
Dodds, W. Douglas
16,921
</TABLE>
A-5
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Dye Investment Properties #1
33,842
Ebrahimian (Moosa) Family, L.P.
33,842
Falconer Family L.P.
33,842
Flake, Rodney J. Trust
16,921
The Bud and Mary Lou Flocchini Partnership
16,921
The Armando J. and Lena Flocchini Family
16,921
Partnership
Gilbert, Peter G.
5,431
Golia, Dominick T.
37,236
Harrington, Thomas J.
20,315
Healey, Thomas J.
3,734
Irvin, Tinesley H.
10,862
Jacobs, Randolph
33,842
Jenkins, Edward Max Trust
16,921
Jones, Billy Ray
5,431
Jones, J. Curtis
2,716
Kadish, Rosalyn S.
2,716
Kenyon Trust
38,594
Kornman, Jacob S.
1,810
Kotkins, Henry L. (Jr.)
33,842
Kotkins, Henry L. (Sr.) TTEE
33,842
Kremers, Joseph A.
33,842
Krone, Marilyn R. Living Trust
8,147
Legum, Steven F.
5,431
Manlowe, Donald & Virginia
33,842
Maronick, E. Phil
33,842
</TABLE>
A-6
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Martin, Eff W.
3,734
Mathews, Glenna C.
16,921
Mazo, (Gerald)/Trust
5,431
McGonacle, Linda & Jim
16,921
Murphy Family Trust
8,461
Murphy, Margaret Trustee
8,460
Neiman, H.F.
1,810
Obernauer, Marne (Jr.)
20,315
Obie, Gordon T.
16,921
Post, Allen W. (Jr.)
10,862
Price, Gerald E.
16,921
Rhoad, Estate of Guy C.
37,236
Romney, Gloria Lynn & Clark TTEE
20,315
Schaefer, Robert A.
5,431
Schubach, Robert M.
33,842
Schwartz, Richard J.
33,842
Sherry, Henry I.
5,431
Stephenson, Leroy
33,842
Strimatter, Paul L.
8,460
Thompson Revocable Living Trust
33,842
Weaver, (The) Judith Family LLC
16,921
Weaver, Terry M.
16,921
Whitmore, George M. (Jr.)
5,431
John C. Williams Trustee, Red Butte Creek
2,716
Trust
Young, Raymond
5,431
</TABLE>
A-7
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
The LCP Group, L.P.
50,204
The Roskind Family Foundation, Inc.
3,100
Trustees of Columbia University
9,600
Jack Shaffer Scholarship Fund
2,200
Cleveland Clinic Foundation
3,600
Richard J. Rouse
9,302
Expansion Limited Partners
--------------------------
1) Toy Properties Associates II
0.25293% January
15, 1999
Brooks, Bonnie Jo
854
Burnett, Pamela A.
569
Carolyn A. Butler
854
Lee C. Butler
854
Robert C. Dickson
1,707
Patricia E. Dupree
1,707
Robert L. Dupree
1,707
Dr. John M. Gallus
1,707
W.C. Gilbert
3,414
Robert Hecht
1,707
Johnson Living Trust
1,707
Jennifer Kastelic
569
James R. Keller
1,707
Oliver W. Lund
1,707
David L. Mitchell
1,707
Lawrence E. Mulkerin
1,707
Wayne H. Nay
853
</TABLE>
A-8
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of
Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
James E. Rottsolk
1,707
Dr. Allen Ruth
1,707
Earl L. Sherron, Jr.
1,707
Joseph F. Sutter
1,707
WAT Enterprises Limited Partnership
1,707
("Thielman")
Mary Lou Tillay
1,707
L. Suzan Watson
569
Zavrski, Lynne
1,707
O.K.O.W. Investors (Special LP)
3,628
(Special LP)
The LCP Group, L.P.
18,065
Richard J. Rouse
4,696
E. Robert Roskind Family, L.P.
327
Ellen C. Monk
163
Edward C. Whiting
196
Terrell R. Peterson Trust dtd. 4/5/90
131
Peter Kinnunen
131
2) Toy Properties Associates V
0.11771% January
15, 1999
Leonard V. Ackermann, DDS
778
George L. and Donna L. Adams
778
9401 Allied L.P.
778
John R. Bedingfield, Jr., MD
778
Stephen P. Boger, DDS
778
James L. Bridge, Jr.
778
John Richard Burg, MD
778
</TABLE>
A-9
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Eva P. Csathy
778
Archie R. and Nancy H. Dykes
778
George W. Flynn
778
Gordon G. Fowler
778
Burton J. Iverson
778
Douglas A. Jensen
778
James P. Larkin
778
W. Jack Lovern
778
Miles A. Nelson
778
Terry O. Noble
778
Michael D. O'Leary, DDS
778
Ruth P. Ruben
778
Thomas T. Schattenberg
778
Robert and Kathleen Schlangen
778
Thomas E. and Connie J. Taff
778
Luis W. and Pacita Tam
778
The LCP Group, L.P.
9,601
Richard J. Rouse
1,958
E. Robert Roskind Family, L.P.
238
Ellen C. Monk
119
Edward C. Whiting
146
Terrell R. Peterson Trust dtd. 4/5/90
97
Peter Kinnunen
97
Francois Letaconnoux
51
3) Fort Street Partners
0.73443% January
15, 2006
</TABLE>
A-10
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Marilyn Anixter Allen
2,262
Robert M. Arnold
6,855
Fred R. Backer
6,855
Thomas E. Burton
6,855
Carole Anixter Cohen
2,331
Donald De Pinto, MD
6,855
Averell Fisk
2,285
Robert Fisk
9,140
James Flood
27,420
The Goddard Revocable Trust
2,262
James W. Gosselin
1,713
Mary Lee Beuregard
1,714
Carol A. Claypool
1,714
Edward W. Gosselin
1,714
Bruce A. Gregga
6,855
David Haley
6,855
Guenther P. Koenkow
6,855
Leonard and Caroline S. Lorberbaum
13,710
Averell H. Mortimer
6,855
David Mortimer
6,855
Gary W. Rollins
13,710
R. Randall Rollins
13,710
W. Dieter Tede
6,855
C. Joseph Tyree
6,855
Stephen P. Glennon
1,662
E. Robert Roskind
208
</TABLE>
A-11
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and Address of Partner
Capital
Partnership Percentage
Redemption
Contribution
Units
Interest Exercise
Date
---------------------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Richard J. Rouse
208
Richard J. Rouse
3,815
January 15, 1999
The LCP Group, L.P.
13,444
January 15, 1999
</TABLE>
A-12
<PAGE>
Pacific Place Limited Partners Supplement
-----------------------------------------
As a result of the merger of the Partnership with Pacific Place
Partners Ltd. ("Pacific Place") on March
10, 1997, the General Partner has
authorized the issuance of Partnership
Units to all former partners of Pacific
Place (the "Pacific Place Limited
Partners") in the amounts specified on Exhibit
A-1 attached hereto and made a part hereof.
For purposes of applying the terms
and conditions of the Partnership
Agreement, the Pacific Place Limited Partners
shall be Partners of the Partnership with
the rights and obligations of
Additional Limited Partners.
For purposes of Section 5.1 of the Partnership Agreement, each
Pacific Place Limited Partners shall be
entitled to receive distributions with
respect to each Partnership Unit equal to
the cash dividend payable with respect
to each share of LXP common stock,
determined at the time of each quarterly
distribution.
For purposes of Sections 6.1A and 6.1B of the Partnership
Agreement, allocations of Net Income and
Net Loss by the Partnership generally
shall be made after giving effect to all
allocations of taxable income to the
Pacific Place Limited Partners. Taxable
income shall be specially allocated to
the Pacific Place Limited Partners in an
amount equal to, but not in excess of,
the cash distributed to the Pacific Place
Limited Partners; provided, however,
that the Pacific Place Limited Partners
shall be allocated taxable income (i) as
otherwise required in Exhibit B and C of
the Partnership Agreement, and (ii)
resulting from the transaction in which the
Replacement Property (as defined
below) was acquired. For purposes of
Section 6.1C of the Partnership Agreement,
Nonrecourse Liabilities of the Partnership
shall be allocated to account for any
income or gain to be allocated to the
Pacific Place Limited Partners pursuant to
Sections 2.B and 2.D of Exhibit C, in the
same priority as Nonrecourse
Liabilities are allocated to the Property
Limited Partners, the Red Butte
Limited Partners, the Expansion Limited
Partners and any subsequent Additional
Limited Partners that are admitted to the
Partnership. The Partnership covenants
to retain sufficient Nonrecourse
Liabilities to permit the allocation of such
Nonrecourse Liabilities to the Pacific
Place Limited Partners in an amount
sufficient to avoid recapture of tax
liability with respect to the Pacific Place
Limited Partners' negative capital
accounts.
For purposes of Section 8.4 of the Partnership Agreement, on
April 15, 1999, and on each January 15,
April 15, July 15 and October 15
thereafter (each a "Notice Date"), each
Pacific Place Limited Partner shall have
the right (the "Pacific Place Limited
Partner Redemption Right") to require the
Partnership to redeem on a Specified
Redemption Date the Partnership Units held
by a Pacific Place Limited Partner for the
Redemption Amount to be delivered by
the Partnership; provided, however, that a
Pacific Place Limited Partner must
convert a number of Partnership Units equal
to at least the lesser of (i)1,000
Partnership Units, or (ii) all of the
Partnership Units held by such Partner.
The Pacific Place Limited Partner
Redemption Right shall be exercised pursuant
to a Notice of Redemption (substantially in
the form of Exhibits D-1 through D-4
modified to reflect the Pacific Place
Limited Partner) delivered to the General
Partner and LXP on a Notice Date by the
Pacific Place Limited Partner who is
exercising the redemption right (the
"Pacific Place Redeeming Partner"). The
Pacific Place Redeeming
A-13
<PAGE>
Partner shall have no right, with respect
to any Partnership Units so redeemed,
to receive any distributions paid after the
Specified Redemption Date. The
Partnership covenants to cause the
registration of any LXP Common Stock issued
in connection with a redemption in such a
manner as is required so that the
shares of LXP Common Stock issued in
connection with such redemption are freely
transferable. The Assignee of any Pacific
Place Limited Partner may exercise the
redemption rights of such Pacific Place
Limited Partner, and such Pacific Place
Limited Partner shall be deemed to have
assigned such rights to such Assignee
and shall be bound by the exercise of such
rights by such Assignee. In
connection with any exercise of such rights
by such Assignee on behalf of such
Pacific Place Limited Partner, the
Redemption Amount shall be delivered by the
Partnership directly to such Assignee and
not to such Pacific Place Limited
Partner.
The Partnership Units held by the Pacific Place Limited
Partners
shall be subject to redemption by the
Partnership if otherwise required by the
terms of the Partnership Agreement.
The Partnership hereby covenants not to dispose of its interest
in those certain properties located at 6
Doughton Rd., New Kingston, Pa., 34 E.
Main St., New Kingston, Pa., and 245 Salem
Church Rd., Mechanicsburg, Pa., (the
"Replacement Property") prior to March 1,
2002 without the prior consent of the
holders of fifty one percent (51%) of the
Partnership Units held by Pacific
Place Limited Partners, except in the event
of a foreclosure or in the event the
Partnership determines that such a
disposition is necessary to ensure its
continued qualification as a real estate
investment trust. In any event in which
the Partnership determines to dispose of
the Replacement Property, the
Partnership agrees to use its best efforts
to structure such a disposition as an
exchange that meets the requirements of
Code Section 1031. Notwithstanding the
foregoing, if the Partnership does dispose
of its interest prior to April 15,
1999, then the General Partner shall
provide prompt written notification to the
Pacific Place Limited Partners of such
disposition and each such Pacific Place
Limited Partner may exercise its Pacific
Place Limited Partner Redemption Right
on the last Business Day of the calendar
year in which such disposition occurs
or, if later, ten (10) Business Days
following the consummation of such
transaction.
LXP agrees to enter into a Guaranty Agreement with the
Partnership on the date the Pacific Place
Limited Partners are admitted to the
Partnership, on terms reasonably
satisfactory to LXP and the Partnership,
pursuant to which LXP shall guaranty the
obligations of the Partnership to pay
the Redemption Amount on the Specified
Redemption Date. Each of the Pacific
Place Redeeming Partner, LXP, the
Partnership and the General Partner shall
treat the transaction between LXP and the
Pacific Place Redeeming Partner as a
sale of the Pacific Place Redeeming
Partner's Partnership Units to LXP or the
General Partner, as the case may be, for
federal income tax purposes. Each
Pacific Place Redeeming Partner agrees to
execute such documents as the
Partnership may reasonably require in
connection with the issuance of REIT
shares upon exercise of the Pacific Place
Limited Partner Redemption Right.
A-14
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and
Address of Partner
Capital
Partnership
Percentage
Redemption
Contribution
Units
Interest
Exercise Date
----------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C> <C>
Pacific Place Limited Partners
1.49370%
April 15, 1999
------------------------------
Dr. Stuart D. Aaron
1,543
Dr. Kenneth H. Adler
772
Dr. Norman I. Agin
1,543
James J. Akers, Trustee
771
u/a dated 12/28/90
Phyllis M. Akers, Trust
772
Douglas J. Backman
1,543
C. Peter Beler
1,543
William C. Butcher
386
Shoppers Village Associates
1,543
c/o Steven H. Caller
Steven H. Caller
1,188
Chappy Partners
72,000
Louis G. Chiodini
772
Harry S. Cohen
1,543
Robert S. Cohen
1,543
Dr. Robert L. Diaz
3,085
Marvin J. Dolinka
772
William D. Evans
1,543
Elizabeth A. Fendell
772
Dr. Gerald Finerman
1,543
Ronald T. Fredette
2,314
David Freishtat and
1,157
Paul Sandler
Dr. & Mrs. Mithlesh Govil
1,543
</TABLE>
A-15
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and
Address of Partner
Capital
Partnership
Percentage
Redemption
Contribution
Units
Interest
Exercise Date
----------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Marilyn R. Heller Trust
1,543
Joe M. Henson
1,543
Gloria Hillman
771
Dr. Phillip L. Horowitz
1,543
Investment Capital Associates
1,619
ICA Pacific Place, Inc.
3,373
John C. Isaacs, III Ranch, Ltd.
1,543
Sam S. Isaacs Ranch, Ltd.
1,542
Marsha Caller Jaffee
1,188
Dr. Bernard J. Judis
771
David A. Katz
772
Jay Latterman and
385
Jack Goldsmith
Earl M. Latterman
772
Bernard B. Latterman
772
King Laughlin
1,687
Stephen P. Lawrence
89,300
Martin C. Leibowitz Revocable Trust
88,906
Barry Z. Liber
3,085
Ronald U. Lurie
772
John McCallum
1,620
Richard G. McCauley
1,543
Richard Mrad
5,399
Dr. Vijayachandra S. Nair
1,543
Godfrey P. Padberg Marital Trust
1,543
Pell Holdings
39,100
</TABLE>
A-16
<PAGE>
PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS
<TABLE>
<CAPTION>
Name and
Address of Partner
Capital
Partnership
Percentage
Redemption
Contribution
Units
Interest
Exercise Date
----------------------------------------------------------------------------------------------------
<S>
<C>
<C>
<C>
<C>
Irving L. Peterson
1,543
John Allen Pierce
1,687
Dr. Sonja S. Pinsky
1,543
Lawrence Raskin
1,296
Ernest E. & Mary B. Renaud
1,543
Irving Rosenstein
1,188
Arthur R. Salomon
2,314
Paul Sandler & David Freishtat
386
Dr. Sylvan Sarasohn
1,543
Dr. Michael J. Schou
1,543
Antonia Shusta
386
Dr. William R. Sloan
1,543
Irving Spivak
772
Jeffrey P. Stern
1,543
Dr. William Sternfeld
1,543
Dr. Norman A. Stokes
771
Marilyn A. Teague Revocable Trust
1,543
James M. Tushman
1,543
Thomas E. Tushman
771
Dr. & Mrs. Irving Waldman
771
Mr. & Mrs. Neil Wolfson
1,543
Andrew S. Wolfson
1,543
</TABLE>
A-17
<PAGE>
Phoenix Limited Partners Supplement
-----------------------------------
As a result of the contribution of the interests in the Phoenix
Hotel Associates Limited Partnership
("Phoenix") on January 29, 1998, the
General Partner pursuant to Section 4.2.A
and Sections 14.1.B(2) and 14.1.B(3)
of this Agreement has authorized the
issuance of Partnership Units to those
former partners of Phoenix (the "Phoenix
Limited Partners") electing to
contribute all or a portion of their
interests to the Partnership. Each Phoenix
Limited Partner shall receive the number of
Units specified below. For purposes
of applying the terms and conditions of the
Partnership Agreement, the Phoenix
Limited Partners shall be Partners of the
Partnership with the rights and
obligations of Additional Limited
Partners.
For purposes of Section 5.1 of the Partnership Agreement, each
Phoenix Limited Partner shall be entitled
to receive distributions with respect
to each Partnership Unit equal to the cash
dividend payable with respect to each
share of LXP common stock, determined at
the time of each quarterly distribution
beginning with the distribution payable to
shareholders of record of LXP on
January 30, 1998.
For purposes of Sections 6.1A and 6.1B of the Partnership
Agreement, allocations of Net Income and
Net Loss by the Partnership generally
shall be made after giving effect to all
allocations of taxable income to the
Phoenix Limited Partners. Pursuant to the
General Partners' authority in Section
14.1.B(3), Partnership taxable income shall
be specially allocated to the
Phoenix Limited Partners in an amount equal
to, but not in excess of, all cash
distributions to the Phoenix Limited
Partners; provided, however, that the
Phoenix Limited Partners shall be allocated
taxable income (i) as otherwise
required in Exhibit B and C of the
Partnership Agreement, and (ii) resulting
from the transaction in which the
Replacement Property (as defined below) was
acquired. For purposes of Section 6.1C of
the Partnership Agreement, Nonrecourse
Liabilities of the Partnership shall be
allocated to account for any income or
gain to be allocated to the Phoenix Limited
Partners pursuant to Sections 2.B
and 2.D of Exhibit C, in the same priority
as Nonrecourse Liabilities are
allocated to the Property Limited Partners,
the Red Butte Limited Partners, the
Expansion Limited Partners, the Phoenix
Limited Partners, the Savannah Limited
Partners and any subsequent Additional
Limited Partners that are admitted to the
Partnership. The Partnership covenants to
retain sufficient Nonrecourse
Liabilities to permit the allocation of
such Nonrecourse Liabilities to the
Phoenix Limited Partners in an amount
sufficient to avoid recapture of tax
liability with respect to the Phoenix
Limited Partners' negative capital
accounts.
For purposes of Section 8.4 of the Partnership Agreement, on
January 15, 1999, and on each January 15,
April 15, July 15 and October 15
thereafter (each a "Notice Date"), each
Phoenix Limited Partner shall have the
right (the "Phoenix Limited Partner
Redemption Right") to require the
Partnership to redeem on a Specified
Redemption Date the Partnership Units held
by a Phoenix Limited Partner for the
Redemption Amount to be delivered by the
Partnership; provided, however, that a
Phoenix Limited Partner must convert a
number of Partnership Units equal to at
least the lesser of (i) 1,000
Partnership Units, or (ii) all of the
Partnership Units held by such Partner.
The Phoenix Limited Partner Redemption
Right shall be exercised pursuant to a
A-18
<PAGE>
