# EDGAR Filing Document

**Accession Number:** 0001914496
**File Stem:** 0001914496-26-000083
**Filing Date:** 2026-5
**Character Count:** 537980
**Document Hash:** 337a56c27d6a8a49cbb3a88d4173e10d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001914496-26-000083.hdr.sgml**: 20260514

**ACCESSION NUMBER**: 0001914496-26-000083

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 95

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260514

**DATE AS OF CHANGE**: 20260514

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sculptor Diversified Real Estate Income Trust, Inc.
- **CENTRAL INDEX KEY:** 0001914496
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56566
- **FILM NUMBER:** 26978938

**BUSINESS ADDRESS:**
- **STREET 1:** 9 WEST 57TH STREET
- **STREET 2:** 40TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019
- **BUSINESS PHONE:** 212.790.0000

**MAIL ADDRESS:**
- **STREET 1:** 9 WEST 57TH STREET
- **STREET 2:** 40TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019

?xml version='1.0' encoding='ASCII'? sdreit-20260331

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**______________________________________________________**

**FORM 10-Q**

**____________________________________________________________________**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**FOR THE TRANSITION PERIOD FROM TO** 

**Commission file number 000-56566**

**______________________________________________________**

**Sculptor Diversified Real Estate Income Trust, Inc.** 

(Exact Name of Registrant as Specified in Its Charter)

**______________________________________________________**

---

| | |
|:---|:---|
| **Maryland** | **88-0870670** |
| (State or Other Jurisdiction of<br>Incorporation or Organization) | (I.R.S. Employer<br>Identification No.) |
| **9 West 57**<sup>th</sup> **Street, 40th Floor** |  |
| **New York** | **10019** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

(Registrant's Telephone Number, Including Area Code) **(212) 790-0000** 

______________________________________________________________________

Securities registered pursuant to Section 12(b) for the Act

Title of each class Trading Symbol(s) Name of each exchange on which registered <br>   

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large Accelerated Filer | ☐ | Accelerated Filer | ☐ |
| Non-Accelerated Filer | ☒ | Smaller reporting company | ☒ |
| 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. Yes ☒ No ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 14, 2026, the registrant had the following shares outstanding: 23,292,826 outstanding shares of Class F common stock, 6,229,198 outstanding shares of Class FF common stock, 8,748,839 outstanding shares of Class AA common stock, 913,533 outstanding shares of Class A common stock, 61,807 outstanding shares of Class I-S common stock and 17,978,571 outstanding shares of Class E common stock.

------

**SCULPTOR DIVERSIFIED REAL ESTATE INCOME TRUST, INC.**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **PART I.** | **FINANCIAL INFORMATION** | [1](#ie1d6cdf1d6dc4615965deba5ba74b7ae_16) |
| Item 1. | Financial Statements | [1](#ie1d6cdf1d6dc4615965deba5ba74b7ae_16) |
|  | *<u>Condensed Consolidated Financial Statements (Unaudited):</u>* |  |
|  | [Condensed Consolidated Balance Sheets as of](#ie1d6cdf1d6dc4615965deba5ba74b7ae_16)[March 31, 2026](#ie1d6cdf1d6dc4615965deba5ba74b7ae_16)[and December 31, 202](#ie1d6cdf1d6dc4615965deba5ba74b7ae_16)5 | [1](#ie1d6cdf1d6dc4615965deba5ba74b7ae_16) |
|  | [Condensed Consolidated Statements of Operations for the Three](#ie1d6cdf1d6dc4615965deba5ba74b7ae_19)[Months Ended](#ie1d6cdf1d6dc4615965deba5ba74b7ae_19)[March 31](#ie1d6cdf1d6dc4615965deba5ba74b7ae_19)[, 202](#ie1d6cdf1d6dc4615965deba5ba74b7ae_19)[6](#ie1d6cdf1d6dc4615965deba5ba74b7ae_19)[and 202](#ie1d6cdf1d6dc4615965deba5ba74b7ae_19)5 | [2](#ie1d6cdf1d6dc4615965deba5ba74b7ae_19) |
|  | [Condensed Consolidated Statements of Equity for the Three](#ie1d6cdf1d6dc4615965deba5ba74b7ae_22)[Months Ended](#ie1d6cdf1d6dc4615965deba5ba74b7ae_22)[March 31, 202](#ie1d6cdf1d6dc4615965deba5ba74b7ae_22)[6](#ie1d6cdf1d6dc4615965deba5ba74b7ae_22)[and 202](#ie1d6cdf1d6dc4615965deba5ba74b7ae_22)5 | [3](#ie1d6cdf1d6dc4615965deba5ba74b7ae_22) |
|  | [Condensed Consolidated Statements of Cash Flows for the](#ie1d6cdf1d6dc4615965deba5ba74b7ae_28)[Three](#ie1d6cdf1d6dc4615965deba5ba74b7ae_28)[Months Ended](#ie1d6cdf1d6dc4615965deba5ba74b7ae_28)[March 31](#ie1d6cdf1d6dc4615965deba5ba74b7ae_28)[, 202](#ie1d6cdf1d6dc4615965deba5ba74b7ae_28)[6](#ie1d6cdf1d6dc4615965deba5ba74b7ae_28)[and 202](#ie1d6cdf1d6dc4615965deba5ba74b7ae_28)5 | [4](#ie1d6cdf1d6dc4615965deba5ba74b7ae_28) |
|  | [Notes to Condensed Consolidated Financial Statements](#ie1d6cdf1d6dc4615965deba5ba74b7ae_31) | [6](#ie1d6cdf1d6dc4615965deba5ba74b7ae_31) |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ie1d6cdf1d6dc4615965deba5ba74b7ae_82) | [35](#ie1d6cdf1d6dc4615965deba5ba74b7ae_82) |
| Item 3. | [Quantitative and Qualitative Disclosures about Market Risk](#ie1d6cdf1d6dc4615965deba5ba74b7ae_136) | [54](#ie1d6cdf1d6dc4615965deba5ba74b7ae_136) |
| Item 4. | [Controls and Procedures](#ie1d6cdf1d6dc4615965deba5ba74b7ae_139) | [54](#ie1d6cdf1d6dc4615965deba5ba74b7ae_139) |
| **PART II.** | **OTHER INFORMATION** | [55](#ie1d6cdf1d6dc4615965deba5ba74b7ae_142) |
| Item 1. | [Legal Proceedings](#ie1d6cdf1d6dc4615965deba5ba74b7ae_145) | [55](#ie1d6cdf1d6dc4615965deba5ba74b7ae_142) |
| Item 1A. | [Risk Factors](#ie1d6cdf1d6dc4615965deba5ba74b7ae_184) | [55](#ie1d6cdf1d6dc4615965deba5ba74b7ae_148) |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#ie1d6cdf1d6dc4615965deba5ba74b7ae_151) | [55](#ie1d6cdf1d6dc4615965deba5ba74b7ae_151) |
| Item 3. | [Defaults upon Senior Securities](#ie1d6cdf1d6dc4615965deba5ba74b7ae_154) | [56](#ie1d6cdf1d6dc4615965deba5ba74b7ae_154) |
| Item 4. | [Mine Safety Disclosures](#ie1d6cdf1d6dc4615965deba5ba74b7ae_157) | [56](#ie1d6cdf1d6dc4615965deba5ba74b7ae_157) |
| Item 5. | [Other Information](#ie1d6cdf1d6dc4615965deba5ba74b7ae_160) | [56](#ie1d6cdf1d6dc4615965deba5ba74b7ae_160) |
| Item 6. | [Exhibits](#ie1d6cdf1d6dc4615965deba5ba74b7ae_163) | [57](#ie1d6cdf1d6dc4615965deba5ba74b7ae_163) |
| [SIGNATURES](#ie1d6cdf1d6dc4615965deba5ba74b7ae_166) | [SIGNATURES](#ie1d6cdf1d6dc4615965deba5ba74b7ae_166) | [58](#ie1d6cdf1d6dc4615965deba5ba74b7ae_166) |

---

------

**PART I. FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Balance Sheets**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **March 31, 2026**<br>**(Unaudited)** | **December 31, 2025**<br>**(Audited)** |
| **Assets** | | |
| Investments in real estate, net | $606698 | $587861 |
| Investment in an unconsolidated entity | 1710 | 1725 |
| Investments in real estate debt | 169918 | 101855 |
| Cash and cash equivalents | 33515 | 37591 |
| Restricted cash | 16235 | 40759 |
| Deferred rent and other receivables | 6404 | 4009 |
| Goodwill | 34458 | 34458 |
| Lease intangible assets, net | 48506 | 46445 |
| Other assets | 11498 | 8353 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $928942 | $863056 |
| **Liabilities and Equity** |  |  |
| **Liabilities** |  |  |
| Mortgages and other loans payable, net | $338947 | $323264 |
| Revolving credit facility | 13654 | 13133 |
| Accounts payable and other liabilities | 24016 | 50589 |
| Financing obligation, net | 22959 | 22959 |
| Due to related parties | 3075 | 6568 |
| Lease intangible liabilities, net | 40834 | 42064 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 443485 | 458577 |
| Commitment and contingencies |  |  |
| Redeemable noncontrolling interest in the Operating Partnership | 6234 | 2191 |
| **Equity** |  |  |
| Common stock, Class F shares, $0.01 par value per share, 300,000,000 shares authorized; 23,204,852 and 20,510,611 shares issued and outstanding, respectively | 232 | 205 |
| Common stock, Class FF shares, $0.01 par value per share, 300,000,000 shares authorized; 6,182,549 and 6,345,659 shares issued and outstanding, respectively | 62 | 63 |
| Common stock, Class E shares, $0.01 par value per share, 100,000,000 shares authorized; 14,421,419 and 9,483,386 shares issued and outstanding, respectively | 144 | 95 |
| Common stock, Class AA shares, $0.01 par value per share, 300,000,000 shares authorized, 7,782,686 and 7,011,253 shares issued and outstanding, respectively | 78 | 70 |
| Common stock, Class A shares, $0.01 par value per share, 300,000,000 shares authorized; 777,596 and 1,745,168 shares issued and outstanding, respectively | 8 | 17 |
| Common stock, Class I-S shares, $0.01 par value per share, 100,000,000 shares authorized; 61,066 and 51,051 shares issued and outstanding, respectively | 1 | 1 |
| Preferred stock, $0.01 par value per share, 100,000,000 shares authorized, no shares issued and outstanding |  |  |
| Additional paid-in capital | 543555 | 459684 |
| Accumulated deficit and cumulative distributions | (81092) | (74167) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' and members' equity** | 462988 | 385968 |
| Non-controlling interests in the consolidated subsidiaries | 16235 | 16320 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total equity** | 479223 | 402288 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity** | $928942 | $863056 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Statements of Operations (Unaudited)**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| **Revenues** |  |  |
| Rental revenue | $14436 | $11817 |
| Other revenue | 444 | 399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 14880 | 12216 |
| **Expenses** |  |  |
| Property operating expenses | 1367 | 1107 |
| Management fees | 595 | 433 |
| Performance participation allocation | 587 |  |
| General and administrative | 2822 | 2485 |
| Depreciation and amortization | 6031 | 5161 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 11402 | 9186 |
| Operating income | 3478 | 3030 |
| **Other income (expense):** |  |  |
| Interest expense, net | (4395) | (3021) |
| Impairment of investments in real estate | (282) | (753) |
| Income from investments in real estate debt, net | 4482 | 816 |
| Income (loss) from an unconsolidated entity | 31 | 30 |
| Unrealized gain (loss) on derivative instruments | 20 | (381) |
| Gain (loss) on sale of real estate | 29 | 18 |
| Other expenses | (280) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (395) | (3291) |
| **Net income (loss)** | 3083 | (261) |
| Net loss (income) attributable to non-controlling interest in the consolidated subsidiaries | (87) | 3 |
| Net loss (income) attributable to redeemable non-controlling interest in the Operating Partnership | (48) | (1) |
| **Net income (loss) attributable to SDREIT stockholders** | $2948 | $(259) |
| **Net income (loss) per common share - basic and diluted** | $0.06 | $(0.01) |
| **Weighted-average common shares outstanding - basic and diluted** | 50321128 | 31744954 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Statements of Equity (Unaudited)**

**(in thousands)**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | | | | | |
| | **Common Stock Class F** | **Common Stock Class FF** | **Common Stock Class E** | **Common Stock Class AA** | **Common Stock Class A** | **Common Stock Class I-S** |<br>**Additional Paid-in Capital** |<br>**Accumulated Deficit and cumulative distributions** |<br>**Total Stockholders' and Members' Equity** |<br>**Non-controlling interests in the consolidated subsidiaries** |<br>**Total Equity** |
| **Balance at December 31, 2025** | $205 | $63 | $95 | $70 | $17 | $1 | $459684 | $(74167) | $385968 | $16320 | $402288 |
| Common stock issued | 27 |  | 49 | 7 | 1 |  | 96636 |  | 96720 |  | 96720 |
| Repurchase of common stock |  | (2) |  |  | (10) |  | (14438) |  | (14450) |  | (14450) |
| Distribution reinvestment |  | 1 |  | 1 |  |  | 1778 |  | 1780 |  | 1780 |
| Offering costs |  |  |  |  |  |  | (77) |  | (77) |  | (77) |
| Amortization of compensation awards, net |  |  |  |  |  |  | 51 |  | 51 |  | 51 |
| Distributions declared on common stock |  |  |  |  |  |  |  | (9873) | (9873) |  | (9873) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 204 | 204 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (376) | (376) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (79) |  | (79) |  | (79) |
| Net income (loss) |  |  |  |  |  |  |  | 2948 | 2948 | 87 | 3035 |
| **Balance at March 31, 2026** | $**232** | $**62** | $**144** | $**78** | $**8** | $**1** | $**543555** | $**(81092)** | $**462988** | $**16235** | $**479223** |
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** |  |  |  |  |  |
|  | **Common Stock Class F** | **Common Stock Class FF** | **Common Stock Class E** | **Common Stock Class AA** | **Common Stock Class A** | **Common Stock Class I-S** | **Additional Paid-in Capital** | **Accumulated Deficit and cumulative distributions** | **Total Stockholders' and Members' Equity** | **Non-controlling interests in the consolidated subsidiaries** | **Total Equity** |
| **Balance at December 31, 2024** | $206 | $63 | $3 | $26 | $1 | $— | $295294 | $(43792) | $251801 | $17310 | 269111 |
| Common stock issued |  |  | 17 | 10 | 15 | 1 | 44398 |  | 44441 |  | 44441 |
| Repurchase of common stock | (10) | (2) |  |  |  |  | (12944) |  | (12956) |  | (12956) |
| Distribution reinvestment |  | 1 |  |  |  |  | 1120 |  | 1121 |  | 1121 |
| Offering costs |  |  |  |  |  |  | (192) |  | (192) |  | (192) |
| Amortization of compensation awards, net |  |  |  |  |  |  | 61 |  | 61 |  | 61 |
| Distributions declared on common stock |  |  |  |  |  |  |  | (5736) | (5736) |  | (5736) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 1295 | 1295 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (304) | (304) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (23) |  | (23) |  | (23) |
| Net income (loss) |  |  |  |  |  |  |  | (259) | (259) | (3) | (262) |
| **Balance at March 31, 2025** | $**196** | $**62** | $**20** | $**36** | $**16** | $**1** | $**327714** | $**(49787)** | $**278258** | $**18298** | $**296556** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Statements of Changes in Cash Flows (Unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2025** |
| **Cash Flows from Operating Activities:** | | |
| Net income (loss) | $3083 | $(261) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fees | 595 | 433 |
| &nbsp;&nbsp;&nbsp;&nbsp;Performance participation allocation | 587 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 6031 | 5161 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of discounts and deferred financing costs | 202 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of investments in real estate | 282 | 753 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of real estate | (29) | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line rent adjustment | (528) | (111) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of above- and below-market leases | (1069) | (1856) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of share-based compensation | 51 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on investments in real estate debt | 201 | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss (gain) on interest rate cap | (20) | 381 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Income) loss on an unconsolidated entity | (31) | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;Paid-in-kind interest | (1164) | (128) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other reconciling items | 16 | 17 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred rent and other receivables | (1888) | (187) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 332 | (266) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 1618 | 1078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | 20 | 26 |
| **Net cash provided by operating activities** | 8289 | 5187 |
| **Cash Flows From Investing Activities:** |  |  |
| Acquisition of real estate | (27645) | (14557) |
| Additions to real estate | (374) | (164) |
| Deposit on real estate acquisition, net of refunds | (4812) | (134) |
| Proceeds from sale of real estate | 2010 | 1176 |
| Investments in real estate debt | (72075) | (35000) |
| Distributions in excess of cumulative earnings from an unconsolidated entity | 46 | 38 |
| **Net cash used in investing activities** | (102850) | (48641) |
| **Cash Flows from Financing Activities:** |  |  |
| Proceeds of mortgages and other loans payable | 16900 |  |
| Repayments of mortgages and other loans payable | (1093) | (6791) |
| Repayments of financing obligation | (1) |  |
| Proceeds from revolving credit facility | 521 | 3406 |
| Payment of deferred financing costs | (303) | (244) |

---

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Statements of Changes in Cash Flows (Unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2025** |
| Payment of offering costs | (139) | (192) |
| Due to related parties | (172) | (172) |
| Subscriptions received in advance | (24917) | 7270 |
| Issuance of common stock | 96139 | 44041 |
| Repurchase of common stock | (13300) | (12154) |
| Distribution to shareholders | (7502) | (4444) |
| Contribution by noncontrolling interests in the consolidated subsidiaries | 204 | 1295 |
| Distribution to noncontrolling interests in the consolidated subsidiary | (376) | (304) |
| Contribution by noncontrolling interests in the Operating Partnership |  |  |
| **Net cash provided by (used in) financing activities** | 65961 | 31711 |
| **Net change in cash and cash equivalents and restricted cash** | (28600) | (11743) |
| **Cash and cash equivalents and restricted cash at beginning of period** | 78350 | 54840 |
| **Cash and cash equivalents and restricted cash at end of period** | $49750 | $43097 |
| **Reconciliation of Cash and Cash Equivalents and Restricted Cash:** |  |  |
| Cash and cash equivalents | $33515 | $18032 |
| Restricted cash | 16235 | 25065 |
| Total cash and cash equivalents and restricted cash | $49750 | $43097 |
| **Supplemental Information:** |  |  |
| Interest paid | $4147 | $2931 |
| **Supplemental Disclosure of Noncash Investing and Financing Activities:** |  |  |
| Dividends unpaid | $3500 | $2015 |
| Distribution reinvestment | $1780 | $1121 |
| Contributions by noncontrolling interests in the Operating Partnership | $4022 | $29 |
| Distributions to noncontrolling interests in the Operating Partnership | $106 | $28 |
| Transfer to assets held for sale | $1504 | $1919 |
| Management fee paid in shares | $583 | $400 |
| Performance allocation paid in Operating Partnership units | $3940 | $— |
| Accrued distribution fee | $62 | $4 |
| Common stock repurchases payable | $1149 | $802 |
| Adjustment to carrying value of redeemable common stock | $79 | $23 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS**

Sculptor Diversified Real Estate Income Trust, Inc. (the "Company," "we," or "us") was formed on February 11, 2022 as a Maryland corporation and has operated and elected to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes beginning January 1, 2023.

The Company is the sole general partner and a limited partner of Sculptor Diversified REIT Operating Partnership LP, a Delaware limited partnership (the "Operating Partnership"). Sculptor Diversified REIT Special Limited Partner LP (the "Special Limited Partner"), an indirect subsidiary of Sculptor Capital LP ("Sculptor"), is the special limited partner in the Operating Partnership. The Company was organized to invest primarily in stabilized, income-generating commercial real estate across a variety of both traditional and non-traditional sectors in the U.S. and Europe, and to a lesser extent, invest in real estate related securities. These assets may include multifamily, industrial, net lease, retail and office assets, as well as others, including, without limitation, healthcare, student housing, single-family, senior living, lodging, data centers, manufactured housing, parking, stadium/exhibition and self-storage properties. Substantially all of the Company's business is conducted through the Operating Partnership, which was formed on February 22, 2022. The Company and the Operating Partnership are externally managed by Sculptor Advisors LLC (the "Adviser"), an affiliate of Sculptor.

In March 2023, the Company launched a private placement offering exempt from registration under the Securities Act of 1933, as amended (the "Securities Act") (the "Offering"). The Company sells shares monthly in the Offering at a price generally equal to the prior month's net asset value ("NAV") per share as determined pursuant to the valuation guidelines adopted by the Company's board of directors (the "Board"), including a majority of its independent directors, plus applicable fees and commissions. NAV is not a measure used under accounting principles generally accepted in the U.S. ("GAAP") and the valuations of and certain adjustments to the Company's assets and liabilities used in the determination of NAV will differ from GAAP. Our Class A, Class AA, Class D, Class E, Class F, Class FF, Class I, Class S, and Class I-S shares are generally available for issuance in our private offering. Our Class E shares are only expected to be held by Sculptor, its personnel, and affiliates. Our Class FF shares are now only available pursuant to our distribution reinvestment plan.

As of March 31, 2026, the Company owns a portfolio of 1,123 single-family rental homes, one student housing property, two commercial real estate properties, three investments in real estate debt and one investment in an unconsolidated real estate venture.

The Company, through its wholly-owned subsidiary, CapGrow Holdings Member, LLC (the "CapGrow Member"), owns a 93.38% controlling interest in CapGrow Holdings JV LLC (the "CapGrow JV" and together with CapGrow Member, "CapGrow") which owns a portfolio of primarily single-family homes (the "CapGrow Portfolio") leased to and operated by care providers that serve individuals with intellectual and developmental disabilities.

CapGrow JV, CapGrow's founder, and CapGrow Neptune Investor LLC, an affiliate of Sculptor, formed a joint venture, CapGrow Neptune JV LLC (the "Neptune JV"), and closed on the acquisition of a portfolio of single-family residences and intermediate care facilities located in California and Minnesota (the "Neptune Portfolio") in 2024. Through the Company's interest in CapGrow JV, the Company owns a 4.67% indirect noncontrolling interest in Neptune JV.

The Company, together with a third-party joint venture partner (such joint venture, the "Denton JV"), owns a 90.00% controlling interest in a 240-unit, 792-bed student housing property ("University Courtyard") located in Denton, Texas.

On March 18, 2025, the Company, together with a third-party joint venture partner (such joint venture, the "Parking JV"), closed on the acquisition of two parking garage properties located in Rochester, New York. Concurrent with the acquisition, leases were entered into with a national parking operator for both garages. As of December 31, 2025, the Company owns a 85.10% controlling interest in the Parking JV.

On October 9, 2025, the Company, through an indirect wholly owned subsidiary, acquired a 1.3 million square foot distribution center on an approximately 81-acre site in Marysville, Ohio (the "Marysville Property"). The Marysville Property is 100% leased to a wholly owned subsidiary of a leading marketer of branded consumer lawn and garden care products listed on the NYSE.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

On March 26, 2026 the Company, through a joint venture in which it holds a 98% ownership interest, acquired an industrial facility located in Detroit, Michigan (the "Mt. Elliott Property"). The property is leased on a long-term, triple-net basis to a subsidiary of a global steel producer listed on the NYSE.

From time to time, the Company acquires or enters into interests in real estate debt, such as commercial mortgage backed securities ("CMBS"), loans, and/or preferred equity investments. As of March 31, 2026, investments in real estate debt consists of (i) an investment in preferred equity in a real estate company that owns 75 net-leased veterinary hospitals and clinics, (ii) a junior mortgage loan collateralized by a casino and hotel property located in Las Vegas, Nevada, (iii) a participation in a senior secured term loan issued to finance the acquisition of a 15-asset, 5,793-key resort portfolio located in Mexico, the Dominican Republic, and Jamaica, (iv) a facility to an equestrian show operator that consists of senior financing, preferred equity, a revolver loan available for drawdown, and an optional delayed-draw term loan (that is at our sole discretion), and (v) investments in CMBS.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The condensed consolidated financial statements, including the condensed notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. Certain amounts in the Company's prior period unaudited condensed consolidated financial statements have been reclassified to conform to the current period presentation. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (the "SEC"). The operating results for the period presented are not necessarily indicative of the results that may be expected for the year ended December 31, 2026.

***Principles of Consolidation***

The Company consolidates entities in which the Company has a controlling financial interest. Entities in which, directly or indirectly, the Company does not have a controlling interest, are accounted for under the equity method. In determining whether the Company has a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, the Company considers whether the entity is a variable interest entity ("VIE") and whether it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has (i) the power to direct the most significant activities impacting the economic performance of the VIE and (ii) the obligation to absorb losses or receive benefits significant to the VIE. Entities that do not qualify as VIEs are generally considered voting interest entities ("VOEs") and are evaluated for consolidation under the voting interest model. VOEs are consolidated when the Company controls the entity through a majority voting interest or other means.

For consolidated joint ventures, the non-controlling partner's share of the assets, liabilities, and operations of each joint venture is included in non-controlling interests as equity of the Company. The non-controlling partner's interest is generally computed as the joint venture partner's ownership percentage. Certain of the joint ventures formed by the Company provide the other partner a profits interest based on certain return hurdles being achieved. Any profits interest due to the other partner is reported within non-controlling interests.

When the requirements for consolidation are not met, the investment is accounted for under the equity method of accounting, with the investment initially recorded at cost, with subsequent adjustments for the Company's pro-rata share of net income, contributions and distributions.

The assets of consolidated VIEs will be used first to settle obligations of the applicable VIE. Remaining assets may then be distributed to the VIEs' owners, including the Company, subject to the liquidation preferences of certain noncontrolling interest holders and any other preferential distribution provisions contained within the operating agreements of the relevant VIEs.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

As of March 31, 2026, the total assets and liabilities of the Company's consolidated VIEs were $919.4 million and $433.9 million, respectively. Such amounts are included on the Company's condensed consolidated balance sheets.

***Use of Estimates***

The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the condensed consolidated financial statements and accompanying notes to condensed consolidated financial statements. Actual results could differ from those estimates.

***Investments in Real Estate***

Real estate properties are carried at cost less accumulated depreciation and impairment losses, if any. Upon acquisition, the Company evaluates each acquisition transaction for the purpose of determining whether a transaction should be accounted for as an asset acquisition or business combination. The acquisition transaction qualifies as a business combination when the assets acquired and liabilities assumed constitute a business. If the property acquired does not constitute a business, the Company accounts for the transaction as an asset acquisition. The guidance for business combinations ("screen test") states that when substantially all of the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business.

Whether an acquisition is considered a business combination or asset acquisition, the Company determines the fair value of acquired tangible and intangible assets and liabilities (including land, buildings, site improvements, tenant improvements, above-market and below-market leases, acquired in-place leases, leasing commissions and other identified intangible assets and assumed liabilities), the liabilities assumed and any non-controlling interest in the acquired entity. For transactions that are business combinations, the Company evaluates the existence of goodwill or a gain from a bargain purchase. Under the business combination, acquisition-related costs are expensed as incurred. For asset acquisitions, the Company allocates the purchase price to the acquired assets and assumed liabilities based on their relative fair values. Acquisition-related costs associated with asset acquisitions are capitalized as part of the acquisition costs.

Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.

Depreciation is computed using the straight-line method. The estimated useful life of our buildings ranges from eight to 30 years. Improvements to buildings made after the initial acquisition are capitalized and depreciated over useful lives ranging from two to 15 years. Tenant improvements are capitalized and depreciated over the non-cancellable term of the related lease or their estimated useful life, whichever is shorter. Furniture, fixtures, and equipment are capitalized and depreciated over useful lives ranging from two to seven years. Depreciation expense amounted to $4.8 million and $3.8 million for the three months ended March 31, 2026 and 2025, respectively.

The Company evaluates its real estate investments for impairment upon occurrence of a significant adverse change in its operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If indicators of impairment are identified, the Company estimates the future undiscounted cash flows from the use and eventual disposition of the property and compares this amount to the carrying value of the property. If any real estate investment is considered impaired, a loss is recognized to reduce the carrying value of the property to its estimated fair value. Refer to Note 3, "Investments in Real Estate, Net", for detailed information regarding impairment loss recorded.

From time to time, the Company may identify properties to be sold. The Company considers whether the following conditions have been met in determining whether or not such properties should be classified as held for sale in accordance with GAAP: (i) there is a committed plan to sell a property; (ii) the property is immediately available for sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell a property have been initiated; (iv) the sale of a property is probable within one year (generally determined based upon listing for sale); (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. To the extent that these factors are all present, depreciation is discontinued, and properties held for sale are stated at the lower of its carrying amount or its fair value less estimated costs to sell. Assets held for sale and related liabilities are included in other assets and accounts payable and other liabilities, respectively, in the condensed consolidated balance sheets.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

***Investments in Real Estate Debt***

The Company's investments in real estate debt consists of: (i) a preferred equity investment in a real estate company; (ii) a junior mortgage loan collateralized by a casino-hotel property; (iii) a participation in a senior secured term loan acquired through a syndication; (iv) a facility to an equestrian show operator that consists of senior financing, preferred equity, a revolver loan available for drawdown, and an optional delayed-draw term loan (that is at our sole discretion) and (v) CMBS. The Company has elected the fair value option ("FVO") for the investments other than CMBS, and records these investments at fair value, with unrealized gains and losses of such investment included in income from investment in real estate debt, net on the on the Company's condensed consolidated statements of operations and records any related upfront costs and fees in earnings as incurred.

The Company has elected to classify its CMBS as trading securities and records such investments at fair value, with unrealized gains and losses on such securities included in income from investments in real estate debt, net on the Company's condensed consolidated statements of operations.

Interest income is recognized based on the stated terms of the security and is included in Income from investments in real estate debt, net on the condensed consolidated statements of operations.

***Goodwill***

Goodwill represents the excess of the consideration transferred over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination and is allocated to an entity's reporting unit, which as of March 31, 2026 and December 31, 2025, relates to CapGrow.

The Company evaluates goodwill for impairment when an event occurs or circumstances change that indicate the carrying value may not be recoverable, or at least annually. Unless circumstances otherwise dictate, the annual impairment test is performed as of December 31. In evaluating goodwill for impairment, the Company assesses qualitative factors such as significant decline in real estate valuations or enterprise value of the reporting unit, current macroeconomic conditions, and the overall financial performance of the reporting unit, among others. If the carrying value of a reporting unit exceeds its estimated fair value, then an impairment charge is recorded in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. As of March 31, 2026 and December 31, 2025, goodwill recognized in connection with the acquisition of CapGrow was $34.5 million and there was no recorded goodwill impairment charge.

***Fair Value Measurements***

See Note 12, "Fair Value Measurements," for related disclosures.

***Segment Reporting***

Under the provisions of ASC 280, "Segment Reporting," the Company has determined that it has five reportable segments: Residential (Business), Student Housing, Commercial Properties, Industrial Properties and Investments in Real Estate Debt. The Company allocates resources and evaluates results based on the performance of each segment individually. The first, Residential (Business), is associated with the CapGrow Portfolio as well as CapGrow's investment in Neptune. The CapGrow Portfolio engages in activities related to acquiring, renovating, developing, leasing and operating single-family homes as rental properties. The CapGrow Portfolio is geographically dispersed, and management evaluates operating performance on a total portfolio basis. The aggregation of individual homes constitutes the total portfolio. Decisions regarding acquisitions and dispositions of homes are made at the individual home level with a focus on accretion in high-growth locations where there is greater scale and density.

The second reportable segment, Student Housing, is associated with University Courtyard.

The third reportable segment, Commercial Properties, is associated with the Company's investment in two parking garages located in Rochester, New York.

The fourth reportable segment, Industrial Properties, is associated with the Company's investment in a distribution center located in Marysville, Ohio and an industrial facility located in Detroit, Michigan.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

The fifth reportable segment, Investments in Real Estate Debt, includes the Company's investment in the preferred equity of a real estate company, a junior mortgage loan collateralized by a casino and hotel property, a participation in a senior secured term loan acquired through a syndication, CMBS, and a facility investment that includes preferred equity, a senior secured term loan and a credit facility on an equestrian show operator.

See Note 16, "Segment Reporting", for related disclosures.

***Revenue Recognition***

The Company derives a significant portion of its revenues from single-family residential leases, which are accounted for as operating leases. The majority of these leases are under a triple net lease arrangement which requires tenants to pay the taxes, insurance and maintenance costs, among others, of the property it leases in addition to its contractual base rent. Other leases are under a modified net lease arrangement wherein tenants pay, for most, but not all property expenses in addition to its contractual base rent. Additionally, the Company also derives revenue from leases at a student housing property, two parking garages, a distribution center and an industrial facility which are also accounted for as operating leases. Under the terms of these leases, tenants pay monthly rental income, various fees, including utility charges, amenity fees and parking fees and/or recoveries from tenants. Recoveries from tenants represent amounts that are charged to a tenant for its share of operating expenses (common area maintenance, real estate taxes, insurance, repairs and maintenance, and other expenses that are generally subject to recovery) incurred by the property in accordance with the lease agreement. Recoveries from tenants are recognized as revenue in the same period the related expenses are incurred. As a practical expedient, the Company elected to account for both the lease and non-lease components as a single lease component because the timing and pattern of revenue recognition are generally the same.

Rental revenue is recognized on the straight-line basis over the non-cancellable terms of the leases from the later of (i) the date of the commencement of the lease or (ii) the date of acquisition of the property. For lease modifications, the commencement date is considered to be the date the lease modification is executed. Rental revenue recognition begins when tenants control the space and continues through the term of their respective leases, which typically have an initial lease term ranging from five to fifteen years except for University Courtyard and the parking garages which have a lease term of 12 months or less . Any excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rent and other receivables on the condensed consolidated balance sheets. Any amounts paid in advance by the tenants are recorded as deferred revenue, which is included in accounts payable and other liabilities on the condensed consolidated balance sheets and are recognized as rental income in accordance with the Company's revenue recognition policy.

Rental revenue is recognized if collectability is probable. For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination.

Other revenue includes termination income and late fees. Termination income, which relates to fees paid by tenants to terminate their lease prior to the contractual lease expiration date, and late fees, are recognized during the period when: (i) the termination agreement is executed or the condition is met, (ii) the fee is determinable, and (iii) collectability of the fee is assured.

Interest income earned on debt investments, which is included in income on investments in real estate debt, is recognized when earned.

Gain or loss on sale of real estate is recognized when the Company no longer has a controlling financial interest in the real estate, a contract exists with a third party and that third party has control of the assets acquired.

***Income Taxes***

The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"), for U.S. federal income tax purposes beginning with the Company's taxable year ending December 31, 2023 and we intend to continue to operate in such a manner. As a REIT, the Company generally is not subject to federal corporate income tax to the extent it distributes 100% of its taxable income to its stockholders. REITs are subject to a number of organizational and operational requirements. If the Company fails to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, the Company will be subject to federal and state income tax on its taxable income at regular corporate tax rates.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

The Operating Partnership is classified as a partnership for U.S. federal and state income tax purposes and are therefore not subject to income tax. Each partner is responsible for the tax liability, if any, related to their share of Operating Partnership taxable income or loss.

The Company may elect to treat certain of our corporate subsidiaries as taxable REIT subsidiaries ("TRSs"). In general, a TRS may perform additional services for our tenants and generally may engage in any real estate or non-real estate-related business. The TRSs are subject to taxation at the federal, state and local levels, as applicable. The Company accounts for applicable income taxes by utilizing the asset and liability method. As such, the Company records deferred tax assets and liabilities for the future tax consequences resulting from the difference between the carrying value of existing assets and liabilities and their respective tax basis. A valuation allowance for deferred tax assets is provided if the Company believes all or some portion of the deferred tax asset may not be realized.

During the three months ended March 31, 2026 and 2025, the Company recorded a net income tax expense of $0.3 million and less than $0.1 million, respectively, which is included in the other expense in the condensed consolidated statements of operations. As of March 31, 2026 and December 31, 2025, the Company recorded a deferred tax asset and a corresponding valuation allowance of $0.9 million and $0.9 million, respectively, within other assets on the Company's condensed consolidated balance sheets.

Management is responsible for determining whether a tax position taken by the Company or the Operating Partnership is more likely than not to be sustained on the merits. The Company has no material unrecognized tax benefits or uncertain income tax positions and therefore no interest or penalties associated with uncertain tax positions.

***Accounting Pronouncements Recently Adopted***

In July 2025, the FASB issued ASU No. 2025-05, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets" ("ASU 2025-05"), which amends the guidance in ASC 326 to provide a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The amendments allow entities to assume that current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing reasonable and supportable forecasts. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. The Company concluded that the adoption of this ASU did not have a material impact on our consolidated financial statements.

***Accounting Pronouncements Not Yet Adopted***

In December 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-11, "Interim Reporting (Topic 270): Narrow Scope Improvements" ("ASU 2025-11"), which clarifies the information that are required to be presented in quarterly periods. ASU 2025-11 also introduces a principle requiring entities to disclose events occurring subsequent to the latest annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim periods beginning after December 15, 2027, and early adoption is permitted. The Company is evaluating the impact this ASU will have on our condensed consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"), which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027, and early adoption is permitted. The Company is evaluating the impact this ASU will have on our consolidated financial statements.

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**3. INVESTMENTS IN REAL ESTATE, NET**

Investments in real estate, net consists of (in thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Land and land improvements | $93561 | $91129 |
| Building and improvements | 557667 | 536585 |
| Furniture, fixtures and equipment | 1804 | 1799 |
| Total real estate properties, at cost | 653032 | 629513 |
| Less: accumulated depreciation | (46334) | (41652) |
| Investments in real estate, net | $606698 | $587861 |

---

**Asset Acquisitions**

During the three months ended March 31, 2026 and 2025, the Company, through CapGrow, acquired three and 19 vacant homes, at an aggregate purchase price of approximately $0.9 million and $6.1 million, respectively.

On March 18, 2025, the Company, through the Parking JV, closed on the acquisition of two parking garages located in Rochester, New York for a total purchase price, inclusive of closing costs, of $8.5 million, of which the Company's share was $7.2 million. Concurrent with the closing of the acquisition, the two parking garages entered into lease agreements with a national parking operator. As of March 31, 2026, the Company owned an 85.10% indirect controlling interest in the Parking JV.

On October 9, 2025, the Company, through an indirect wholly-owned subsidiary, acquired the Marysville Property from an unaffiliated third-party seller, Sierra Marysville Storage, LLC, for $123.0 million, including transaction costs. The Marysville Property is 100% leased to a wholly owned subsidiary of a leading marketer of branded consumer lawn and garden care products listed on the NYSE. The acquisition was funded through a combination of available cash and proceeds from a $76.3 million mortgage loan.

On March 26, 2026 the Company, through a joint venture in which it holds a 98% ownership interest, closed on the acquisition of an industrial facility located in Detroit, Michigan for a purchase price of approximately $26.8 million, including closing costs. The property is leased on a long-term, triple-net basis to a subsidiary of a global steel producer listed on the NYSE, with a remaining lease term through December 2036. The acquisition was funded through a combination of available cash and proceeds from a $16.9 million mortgage loan. The following table summarizes the purchase price allocation of the Mt. Elliott Property (in thousands):

---

| | |
|:---|:---|
| Land | $2566 |
| Building and Improvements | 20527 |
| Site Improvements | 237 |
| Lease intangible assets, net | 3458 |
| Total purchase price | $26788 |

---

**Asset Dispositions**

During the three months ended March 31, 2026 and 2025, the Company sold five and five homes for aggregate net proceeds of $2.0 million and $1.2 million, respectively. During the three months ended March 31, 2026 and 2025, the Company recognized impairment loss of $65 thousand and $0.1 million, respectively, and gain on sale of $29 thousand and $18 thousand, respectively, on these assets sold.

**Properties Held-for-Sale**

As of March 31, 2026 and December 31, 2025, the Company classified 10 properties and 12 properties, respectively, as held for sale. As of March 31, 2026 and December 31, 2025, assets held for sale, which are included in other assets in the condensed consolidated balance sheets, amounted to $2.8 million and $4.2 million, respectively.

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**Asset Impairment**

The Company evaluates impairment on held for use properties generally when leases are terminated and/or are vacant. As of March 31, 2026 and December 31, 2025, the Company, through CapGrow, had seven and five impaired held for use properties, respectively.

The details of impairment losses for the three months ended March 31, 2026 and 2025 are as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Impairment loss - assets sold | $65 | $138 |
| Impairment loss - held for sale | 48 | 236 |
| Impairment loss - held for use | 169 | 379 |
|  | $282 | $753 |

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**4. INVESTMENT IN UNCONSOLIDATED ENTITIES**

The Company accounts for its investment in Neptune JV under the equity method of accounting. The Company owns an indirect equity interest of 4.66% in the Neptune JV as of March 31, 2026. Our maximum loss is limited to the amount of our equity investment in this VIE. As of March 31, 2026 and December 31, 2025, the Company's investment in the unconsolidated entity was $1.7 million and $1.7 million, respectively. During the three months ended March 31, 2026 and 2025, the income from the unconsolidated entity, which was included in income (loss) from an unconsolidated entity on the condensed consolidated statements of operations, was less than $0.1 million.

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**5. INVESTMENTS IN REAL ESTATE DEBT**

Investments in real estate debt consists of (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| |<br>**Coupon** |<br>**Maturity Date** | **Face Amount**<sup>(1)</sup> | **Cost Basis**<sup>(1)</sup> | **Fair Value** |
| Preferred equity | 12.25%<sup>(2)</sup> | N/A<sup>(3)</sup> | $37044 | $37044 | $37044 |
| Preferred equity | 12.75%<sup>(4)</sup> | January 2029 | 25682 | 25682 | 25682 |
| Junior mortgage loan | 1M Term SOFR + 7.50%<sup>(5)</sup> | May 2030 | 17000 | 17000 | 16940 |
| Senior secured term loan | 3M Term SOFR + 3.25% | December 2032 | 5000 | 4975 | 4856 |
| Senior secured term loan | 1M Term SOFR + 7.00%<sup>(6)</sup> | January 2029 | 40000 | 40000 | 40000 |
| Revolver loan | 1M Term SOFR + 7.00%<sup>(7)</sup> | 2029<sup>(8)</sup> | 2100 | 2100 | 2100 |
| CMBS - floating | 1M Term SOFR + 2.941% | January 2030 | 8000 | 7980 | 8003 |
| CMBS - floating | 1M Term SOFR + 4.00% | August 2030 | 2500 | 2500 | 2500 |
| CMBS - floating | 1M Term TSFR + 2.89% | March 2039 | 5000 | 5034 | 5012 |
| CMBS - floating | 1M Term TSFR +3.10% | December 2030 | 21500 | 21500 | 21500 |
| CMBS - floating | 1M Term TSFR + 4.50% | December 2030 | 6281 | 6281 | 6281 |
|  |  |  | $170107 | $170096 | $169918 |
|  |  |  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Coupon** | **Maturity Date** | **Face Amount**<sup>(1)</sup> | **Cost Basis**<sup>(1)</sup> | **Fair Value** |
| Preferred equity | 12.25%<sup>(2)</sup> | N/A<sup>(3)</sup> | $36562 | $36562 | $36562 |
| Junior mortgage loan | 1M Term SOFR + 7.50%<sup>(5)</sup> | May 2030 | 17000 | 17000 | $17000 |
| Senior secured loan | 3M Term SOFR + 3.25% | December 2032 | 5000 | 4975 | $4944 |
| CMBS - floating | 1M Term SOFR + 2.941% | January 2030 | 8000 | 7980 | $8040 |
| CMBS - floating | 1M Term SOFR + 4.00% | August 2030 | 2500 | 2500 | $2501 |
| CMBS - floating | 1M Term TSFR + 2.89% | March 2039 | 5000 | 5034 | $5027 |
| CMBS - floating | 1M Term TSFR + 3.10% | December 2030 | 21500 | 21500 | $21500 |
| CMBS - floating | 1M Term TSFR + 4.50% | December 2030 | 6281 | 6281 | $6281 |
|  |  |  | $101843 | $101832 | $101855 |

---

_______________________________________

<sup>(1)</sup> Investment in preferred equity includes original stated balance plus paid-in-kind interest as of March 31, 2026.

<sup>(2)</sup> Interest accrues monthly with a current pay rate of 7.00% and a deferred interest rate of 5.25% through March 2030, after which the current pay rate increases to 12.00% and the deferred interest rate remains at 5.25% until the preferred units are fully redeemed, including accrued interest.

<sup>(3)</sup> The Company's preferred equity investment does not contain a stated maturity date. The Company has the right to cause the issuer to market and sell assets sufficient to redeem all remaining preferred units, including accrued interest, beginning in March 2031.

<sup>(4)</sup> Interest accrues daily on a 360-day year and is compounded quarterly.

<sup>(5)</sup> Interest accrues monthly at a rate of adjusted 1M Term SOFR+ 7.50% with an adjusted 1M Term SOFR floor of 3.00%.

<sup>(6)</sup> Interest accrues monthly at a rate of adjusted 1M Term SOFR+ 7.00% prior to the first anniversary of the closing date, 7.50% from and after the first anniversary through the second anniversary, and 8.00% thereafter. Adjusted 1M Term SOFR floor is 3.25%.

<sup>(7)</sup> Interest accrues monthly at a rate of adjusted 1M Term SOFR+ 7.00% prior to the first anniversary of the closing date, 7.50% from and after the first anniversary through the second anniversary, and 8.00% thereafter. Adjusted 1M Term SOFR floor is 3.25%. Unused commitment fee accrues daily at a rate of 0.25% per annum and is paid monthly.

<sup>(8)</sup> Revolver loan has draws outstanding of $0.6 million and $1.5 million that were made in February 2026 and March 2026, respectively. The revolving credit facility matures on January 14, 2029. However, the revolver loan must be paid down to$2.0 million or less once during each calendar year.

In March 2025, the Company closed on the acquisition of $35.0 million of 12.25% cumulative preferred equity interests in a private real estate company that owns 75 net-leased veterinary hospitals and clinics. From the issue date through the fifth anniversary of the issue date, interest accrues monthly at a rate of 12.25%, with a current pay rate of 7.00% and the remainder deferred and added to the outstanding balance of the investment. Unless the preferred units are fully redeemed, after the fifth anniversary of the issue date, interest accrues at a rate of 17.25%, with a current pay rate of 12.00%. If the preferred units are not redeemed prior to the sixth anniversary of the issue date, the Company has the right to cause the issuer to market and sell assets of the issuer sufficient to redeem all remaining preferred units, including any accrued but unpaid interest. As the

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

investment in preferred equity is subject to the Company's right to cause redemption, if not already redeemed by the issuer itself, the instrument is considered a debt security and is included in our investment in real estate debt.

On May 5, 2025, the Company closed on a $17.0 million junior mortgage loan collateralized by a casino and hotel property located in Las Vegas, Nevada. The loan accrues interest monthly at a rate of adjusted 1M Term SOFR + 7.50% with an adjusted 1M Term SOFR floor of 3.00%. The interest rate may increase by 0.50% if the borrower fails to comply with certain provisions under the first lien credit facility. The loan matures on May 5, 2030, unless repaid earlier, and is secured by a second-priority lien on substantially all assets of the borrower and guarantors, subordinated to the first lien facility.

In August 2025, the Company entered into an agreement to acquire a $5.0 million participation in a $1.4 billion senior secured term loan to TRQ Sales LLC made in connection with the acquisition of Playa Resorts Holding B.V ("Playa Financing"). The transaction was subject to regulatory approval and upon such approval being obtained, the Company recognized the investment and a corresponding liability. The Company settled the participation in the Playa Financing in January 2026. The participation accrues interest monthly at a rate of 1M Term SOFR + 3.25%. The Playa Financing matures on December 30, 2032, unless repaid earlier, and is secured by a first-priority lien on substantially all assets of the borrower and guarantors, subject to customary exceptions and permitted liens.

On January 14, 2026, the Company closed on a $65.0 million facility (the "Equestrian Loan Facility") to an equestrian show operator. The Equestrian Loan Facility consists of (i) $40.0 million of senior financing at a rate of adjusted 1M Term SOFR + 7.00%, (ii) $25.0 million of preferred equity at a rate of 12.75%, (iii) a $5.0 million revolver loan available for drawdown at a rate of adjusted 1M Term SOFR + 7.00%, and (iv) an optional $10.0 million delayed-draw term loan (that is at our sole discretion). As of March 31, 2026, $2.1 million has been drawn under the revolver loan.

From time to time, the Company acquires CMBS as part of its investment strategy. During the year ended December 31, 2025, the Company acquired $35.3 million of CMBS. No such acquisition during the three months ended March 31, 2026.

The following table details the Company's income (loss) from investments in real estate debt (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2025** |
| Interest income | $4033 | $451 |
| Unrealized (loss) gain | (202) | 15 |
| Other<sup>(1)</sup> | 651 | 350 |
| Total | $4482 | $816 |

---

_______________________________________

<sup>(1)</sup> Represents origination fees and ticking fees received concurrent with the origination of our investments. As a result of the election of the FVO, these fees were recognized at origination.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**6. LEASE INTANGIBLES** 

The gross carrying amount and accumulated amortization of the Company's intangible assets and liabilities as of March 31, 2026 and December 31, 2025 are as follows.

---

| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Cost** | **Accumulated Amortization** | **Net** |
| <u>Intangible assets, net:</u> |  |  |  |
| Above-market lease intangibles | $3089 | $(2049) | $1040 |
| In-place lease intangibles | 19898 | (216) | 19682 |
| Leasing commissions | 35199 | (7415) | 27784 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets | $58186 | $(9680) | $48506 |
| <u>Intangible liabilities, net:</u> |  |  |  |
| Below-market lease intangibles | $(54254) | $13420 | $(40834) |

---

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Cost** | **Accumulated Amortization** | **Net** |
| <u>Intangible assets, net:</u> |  |  |  |
| Above-market lease intangibles | $3096 | $(1897) | $1199 |
| In-place lease intangibles | 20211 | (2650) | 17561 |
| Leasing commissions | 35372 | (7687) | 27685 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets | $58679 | $(12234) | $46445 |
| <u>Intangible liabilities, net:</u> |  |  |  |
| Below-market lease intangibles | $(54635) | $12571 | $(42064) |

---

For the three months ended March 31, 2026 and 2025, the Company recognized $1.1 million and $1.9 million, respectively, of rental revenue for the amortization of aggregate below-market leases in excess of above-market leases resulting from the allocation of the purchase price of the applicable properties and wrote off $0.4 million and $1.1 million, respectively, of accumulated amortization related to fully amortized assets, held for sale assets and assets sold. Additionally, during the three months ended March 31, 2026 and 2025, the Company recorded $1.2 million and $1.4 million, respectively, of amortization of in-place leases and leasing commissions and wrote off $0.3 million and $5.6 million, respectively, of accumulated amortization related to fully amortized assets, held for sale assets and assets sold. Amortization of the in-place leases and leasing commissions are included in depreciation and amortization of the condensed consolidated statements of operations.

As of March 31, 2026, the weighted-average amortization period for above-market leases, in-place lease intangibles, leasing commissions and below-market lease costs is 3.5 years, 13.0 years, 11.8 years and 12.0 years, respectively. The estimated

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

future amortization of the Company's lease intangibles for each of the next five years and thereafter as of March 31, 2026 is as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Above-market Lease Intangibles** | **In-place Lease Intangibles** | **Leasing Commissions** | **Below-market Lease Intangibles** |
| 2026 (nine months) | $353 | $1528 | $2149 | $(3074) |
| 2027 | 343 | 1692 | 2682 | (3956) |
| 2028 | 94 | 1582 | 2522 | (3793) |
| 2029 | 86 | 1574 | 2508 | (3761) |
| 2030 | 86 | 1559 | 2487 | (3696) |
| Thereafter | 78 | 11747 | 15436 | (22554) |
|  | $1040 | $19682 | $27784 | $(40834) |

---

**7. OTHER ASSETS** 

The following table summarizes the components of other assets (in thousands). Refer to Note 12, "Fair Value Measurements", for additional information on the interest rate cap included in derivative assets below.

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Assets held for sale | $2841 | $4173 |
| Derivative assets | 1343 | 1324 |
| Deferred costs | 697 | 796 |
| Deposit for real estate investment | 5150 | 350 |
| Right of use asset - operating lease | 200 | 224 |
| Prepaid insurance | 308 | 404 |
| Prepaid ground rent | 97 | 97 |
| Other | 862 | 985 |
| Total | $11498 | $8353 |

---

**8. ACCOUNTS PAYABLE AND OTHER LIABILITIES** 

The following table summarizes the components of accounts payable and other liabilities (in thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Accounts payable and accrued expenses | $5636 | $3173 |
| Performance bonus payable | 521 | 474 |
| Tenant security deposits | 2759 | 2755 |
| Distribution payable | 3500 | 2884 |
| Subscriptions received in advance | 9558 | 34475 |
| Property taxes payable | 592 | 1377 |
| Repurchase payable | 1149 |  |
| Lease liability - operating lease | 205 | 230 |
| Deferred income | 96 | 246 |
| Payable for unsettled investment |  | 4975 |
| Total | $24016 | $50589 |

---

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**9. BORROWINGS**

***Mortgages and Other Loans Payable, net***

The following table provides information regarding the Company's mortgages and other loans payable, some of which were assumed upon acquisition of CapGrow and were secured by certain properties of CapGrow (amounts in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** | **Interest<br>Rate** | **Maturity<br>Date** |
| Mortgage note payable<sup>(1)(2)</sup> | $4475 | $4504 | 7.50% | October 2026 |
| Mortgage note payable<sup>(2)</sup> | 7652 | 7775 | 5.19% | June 2027 |
| Mortgage note payable<sup>(2)</sup> | 8385 | 8457 | 3.75% | April 2028 |
| Mortgage note payable<sup>(2)</sup> | 5854 | 5887 | 5.59% | April 2028 |
| Mortgage note payable<sup>(2)</sup> | 16713 | 16797 | 4.28% | November 2029 |
| Mortgage note payable<sup>(3)</sup> | 45504 | 45746 | 3.59% | September 2030 |
| Mortgage note payable<sup>(4)</sup> | 34405 | 34578 | 3.85% | January 2031 |
| Mortgage note payable<sup>(2)</sup> | 1897 | 1912 | 4.35% | February 2031 |
| Mortgage note payable<sup>(5)</sup> | 22964 | 23069 | 4.01% | January 2032 |
| Mortgage note payable<sup>(2)</sup> | 13435 | 13535 | 4.00% | March 2032 |
| Mortgage note payable<sup>(6)</sup> | 31652 | 31652 | 6.60% | September 2033 |
| Mortgage note payable<sup>(7)</sup> | 20880 | 20880 | 3.56% | November 2033 |
| Mortgage note payable<sup>(8)</sup> | 76250 | 76250 | 5.80% | November 2030 |
| Mortgage note payable<sup>(9)</sup> | 16900 |  | 6.01% | March 2031 |
| Mortgage note payable<sup>(2)</sup> | 35590 | 35590 | 6.12% | January 2031 |
| Mortgage note payable<sup>(2)</sup> | 555 | 628 | 5.75% to 6.38% | February 2037<br>through January 2039  |
| Notes payable<sup>(10)</sup> |  | 44 | 7.00% | January 2026  |
| **Total** | 343111 | 327304 |  |  |
| Discounts and deferred financing costs, net | (4164) | (4040) |  |  |
| Total mortgages and other loans payable, net | $338947 | $323264 |  |  |

---

_______________________________________

<sup>(1)</sup> On June 28, 2024, the Company entered into a modification and extension agreement which provides, among other things, the extension of the original maturity date from June 28, 2024 to October 31, 2026 and an increase in interest rate from 5% to 7.5%.

<sup>(2)</sup> These loans are subject to monthly principal and interest payments through maturity date.

<sup>(3)</sup> Interest only payment loan through September 2023, with the principal balance and any accrued and unpaid interest due at maturity.

<sup>(4)</sup> Interest only payment loan through January 2024, with the principal balance and any accrued and unpaid interest due at maturity.

<sup>(5)</sup> Interest only payment loan through January 2025, with the principal balance and any accrued and unpaid interest due at maturity.

<sup>(6)</sup> Interest only payment loan through September 2026, with the principal balance and any accrued and unpaid interest due at maturity.

<sup>(7)</sup> The acquisition of University Courtyard was funded partly by equity, a $20.8 million leasehold mortgage, and $23.2 million of financing proceeds derived from a failed sale and leaseback transaction. This leasehold mortgage bears interest based on SOFR plus 2.56% per annum and is subject to interest only payments through November 2028, at which time monthly principal and interest payments are due through maturity date. In connection with this leasehold mortgage, University Courtyard entered into a 5-year interest rate cap agreement which caps SOFR at 1% per annum. The interest rate above represents the effective interest rate giving consideration to the interest rate cap. The contractual rate not giving effect to the interest rate cap is 6.57%. Refer to "Financing Obligation, net" below for additional information relating to the failed sale and leaseback transaction. Refer to Note 12, "Fair Value Measurements," for additional information related to this interest rate cap.

<sup>(8)</sup> Interest only payment loan through November 2030, with the principal balance and any accrued and unpaid interest due at maturity.

<sup>(9)</sup> Interest only payment loan through March 2030, at which time monthly principal payments are due through maturity date.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

<sup>(10)</sup> These loans, which are owed to private parties, bore interest rates of 7%. The loan was paid off in January 2026.

***Mortgage Note Payable***

On March 26, 2026, in connection with the acquisition of the Mt. Elliott Property, the Company entered into a mortgage loan with an unaffiliated lender for borrowings of $16.9 million. The loan bears interest at a rate equal to one-month Term SOFR plus a margin of 2.15% and matures in March 2031. The loan requires interest-only payments through March 2030, after which monthly principal payments of $27 thousand commence in April 2030. Concurrently, the Company entered into an interest rate swap agreement, effective from March 26, 2026 through March 26, 2029, that fixes the one-month term SOFR at 3.86%.

***Revolving Credit Facility***

Upon the acquisition of CapGrow, the Company assumed the existing revolving line of credit agreement (the "Credit Facility") with CIBC Bank USA, which carried an outstanding loan balance of $30.3 million, allowed for a maximum borrowing facility of $50.0 million and had a maturity date of February 2024. The maturity date of the Credit Facility was extended to February 2025 as a result of the Company exercising its one-year extension option, and was further extended to February 2027. The Credit Facility bears interest equal to 1M Term SOFR plus 3.50% per annum. As of March 31, 2026 and December 31, 2025, the interest rate was 7.16% and 7.19%, respectively. As of March 31, 2026 and December 31, 2025, the Credit Facility had an outstanding principal balance of $13.7 million and $13.1 million, respectively. The Credit Facility is guaranteed by certain subsidiaries of CapGrow.

***Financing Obligation, Net***

In connection with the acquisition of University Courtyard in October 2023, the Company entered into a sale and leaseback transaction whereby the underlying land was sold to an unaffiliated third party for $23.2 million and simultaneously entered into a lease agreement with the same unaffiliated third party to lease the property back. The sale and leaseback of University Courtyard is accounted for as a failed sale and leaseback because the lease is classified as a finance lease. Accordingly, the sale of the underlying land is not recognized and the property continues to be included within the Company's condensed consolidated financial statements. The Company will continue to depreciate the property as if the Company is the legal owner. The proceeds received from the sale, net of debt financing costs of $0.2 million, are accounted for as a financing obligation on our condensed consolidated balance sheets. The Company allocates the rental payments under the lease between interest expense and principal repayment of the financing obligation using the effective interest method and amortizes over the 99-year lease term. The total principal payments are not expected to exceed the difference between the gross proceeds from the sale of $23.2 million and the initial carrying value of the land of $4.1 million, resulting in maximum principal payments of $19.1 million over the term of the arrangement. As of March 31, 2026 and December 31, 2025, the net carrying value of the financing obligation was $23.0 million.

***Restrictive Covenants***

The Company is subject to various financial and operational covenants under certain of its mortgages and other loans payable and the Credit Facility. These covenants require the Company to maintain a minimum debt service coverage ratio, liquidity, net worth and a minimum of two-years of remaining lease term on all of the CapGrow Portfolio, among others.

As of March 31, 2026 and December 31, 2025, the Company was in compliance with all of its loan covenants.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

***Contractual Maturities***

The scheduled principal maturities of the mortgages and other loans payable and Credit Facility for each of the next five years and thereafter as of March 31, 2026 were as follows for the Company (amounts in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year Ending** | **Mortgages and Other Loans Payable** | **Credit Facility** | **Financing Obligation** | **Total** |
| December 31, 2026 (nine months) | $7441 | $— | $3 | $7444 |
| December 31, 2027 | 11417 | 13654 | 5 | 25076 |
| December 31, 2028 | 17365 |  | 7 | 17372 |
| December 31, 2029 | 19664 |  | 8 | 19672 |
| December 31, 2030 | 185860 |  | 10 | 185870 |
| Thereafter | 101364 |  | 19107 | 120471 |
|  | $343111 | $13654 | $19140 | $375905 |

---

**10. STOCKHOLDERS' AND MEMBERS' EQUITY AND NON-CONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND CONSOLIDATED SUBSIDIARIES**

***Authorized Capital Stock***

As of March 31, 2026, the Company's authorized capital stock was as follows:

---

| | | |
|:---|:---|:---|
| | **Number of Shares** | **Par Value per Share** |
| Class F Shares | 300000000 | $0.01 |
| Class FF Shares | 300000000 | $0.01 |
| Class S Shares | 300000000 | $0.01 |
| Class D Shares | 300000000 | $0.01 |
| Class I Shares | 300000000 | $0.01 |
| Class A Shares | 300000000 | $0.01 |
| Class AA Shares | 300000000 | $0.01 |
| Class I-S Shares | 100000000 | $0.01 |
| Class E Shares | 100000000 | $0.01 |
| Total | 2300000000 |  |
| Preferred Stock | 100000000 | $0.01 |
|  | 2400000000 |  |

---

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

***Common Stock***

The following table details the movement in the Company's outstanding shares of common stock for the three months ended March 31, 2026:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** | **Total** |
| December 31, 2025 | 20510611 | 6345659 | 9483386 | 7011253 | 1745168 | 51051 | 45147128 |
| Common stock issued | 2693820 |  | 4929416 | 728102 | 58803 | 9032 | 8419173 |
| Distribution reinvestment | 421 | 70030 | 8617 | 76049 | 3113 | 983 | 159213 |
| Shares repurchased |  | (233140) |  | (32718) | (1029488) |  | (1295346) |
| March 31, 2026 | 23204852 | 6182549 | 14421419 | 7782686 | 777596 | 61066 | 52430168 |

---

***Share Repurchase Plan***

On February 10, 2023, the Company adopted a Share Repurchase Plan (the "Repurchase Plan"), whereby, subject to certain limitations, stockholders may request on a monthly basis that the Company repurchase all or any portion of their shares. The total amount of aggregate repurchases of the Company's stock is limited during each calendar month to 2% of the aggregate NAV of all classes as of the last calendar day of the previous quarter and in each calendar quarter will be limited to 5% of the aggregate NAV of all share classes as of the last calendar day of the previous calendar quarter; provided, however, that every month and quarter each class of the Company's stock will be allocated capacity within such aggregate limit to allow stockholders in such class to either (a) redeem shares equal to at least 2% of the aggregate NAV of such share class as of the last calendar day of the previous quarter, or, if more limiting, (b) redeem shares over the course of a given quarter equal to at least 5% of the aggregate NAV of such share class as of the last calendar day of the previous quarter. Shares will be repurchased at a price equal to the transaction price on the applicable repurchase date, subject to any Early Repurchase Deduction (as defined below). The transaction price will generally equal the prior month's NAV per share for that share class. Shares repurchased within one year of the date of issuance will be repurchased at 95% of the current transaction price (the "Early Repurchase Deduction"). The Early Repurchase Deduction will not apply to shares acquired through the distribution reinvestment plan. Due to the illiquid nature of investments in real estate, the Company may not have sufficient liquid resources to fund repurchase requests, and the Company has established limitations on the amount of funds it may use for repurchases during any calendar month and quarter as described above. The Company's Board may modify, suspend or terminate the Repurchase Plan. During the three months ended March 31, 2026 and 2025, the Company repurchased 1,295,346 and 1,216,867 shares under the Repurchase Plan for $14.5 million and $13.0 million, respectively.

***Distributions***

To comply with the REIT provisions of the Code, the Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to our stockholders.

Each class of common stock receives the same gross distribution per share. The net distribution varies for each class based on the applicable distribution fee, which is deducted from the monthly distribution per share and paid directly to the applicable distributor, and/or certain other class-specific fees, as applicable. The following table details the aggregate distributions declared for each applicable class of common stock for the three months ended March 31, 2026:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** |
| Aggregate gross distributions declared per share of common stock | $0.2007 | $0.2007 | $0.2007 | $0.2007 | $0.2007 | $0.2007 |
| Distribution fee per share of common stock |  | (0.0139) |  | (0.0139) |  |  |
| Net distributions declared per share of common stock | $0.2007 | $0.1868 | $0.2007 | $0.1868 | $0.2007 | $0.2007 |

---

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

***Distribution Reinvestment Plan***

In February 2023, the Company adopted a distribution reinvestment plan ("DRIP") whereby participating stockholders will have their cash distributions attributable to the class of shares purchased automatically reinvested in the same class of shares. The per share purchase price for shares purchased under the DRIP will be equal to the transaction price on the record date of the distribution that is payable. Stockholders will not pay upfront selling commissions when purchasing shares pursuant to the DRIP, but such shares will be subject to distribution fees, if any. The distribution fees (when applicable) are calculated based on the NAV for the applicable shares and may reduce the NAV, or alternatively, the distributions payable with respect to the shares of each such class, including shares issued under the DRIP.

***Share-Based Compensation Plan***

On March 7, 2023, the Board approved the independent director compensation plan (the "Compensation Plan"), which provides independent directors an annual compensation of $100,000 consisting of a number of restricted shares (the "Equity Retainer") valued at $25,000 and all or a portion of their cash compensation (the "Cash Retainer") if the independent directors elect to receive such cash compensation in the form of restricted shares of the Company's common stock. Any Grant of Class E restricted stock will be based on the then-current per share transaction price of the Class E shares at the time of grant. Restricted stock grants will generally vest on the first anniversary of the date of grant. During the restricted period, these restricted shares are automatically subject to the Company's DRIP with all dividends and other distributions declared and paid in respect of such restricted shares being applied to the purchase of additional restricted shares of the same class until the later of (i) such restricted shares becomes fully vested or (ii) receipt of nonparticipation in the DRIP by such independent director. The maximum number of shares that will be available for issuance under the Compensation Plan is 500,000.

In June 2024, the Company granted approximately $0.2 million or approximately 22,792 Class E restricted shares which represented the Equity Retainer and a portion of the Cash Retainer that the independent directors have elected to receive in restricted shares of common stock. These restricted stock grants along with the additional restricted shares earned under the DRIP were vested in June 2025. In June 2025, the Company granted approximately $0.2 million, or approximately 18,927 Class E restricted shares, which represented the Equity Retainer and a portion of the Cash Retainer that the independent directors have elected to receive in restricted shares of common stock. These restricted stock grants along with the additional restricted shares earned under the DRIP will vest in June 2026.

As of March 31, 2026, 395,870 shares of common stock remain available for issuance under the Compensation Plan. For the three months ended March 31, 2026 and 2025, total share-based compensation recognized was less than $0.1 million, respectively. The Company adopted the policy of accounting for forfeitures as they occur. As of March 31, 2026, the Company expects that the independent directors will complete their requisite service period. If awards are ultimately forfeited prior to vesting, then the Company will reclassify amounts previously charged to retained earnings to compensation cost in the period the award is forfeited.

***Non-controlling Interest in the Operating Partnership***

As discussed in Note 11, "Related Party Transactions," the Special Limited Partner holds a performance participation interest in the Operating Partnership. Because the Special Limited Partner has the ability to redeem its Class E units for cash or Class E shares, at its election, the Company has classified these Class E units as a redeemable non-controlling interest in the Operating Partnership on our condensed consolidated balance sheets. The redeemable non-controlling interest in the Operating Partnership is recorded at the greater of the carrying amount, adjusted for its share of the allocation of income or loss and dividends, or the redemption value, which is equivalent to fair value, of such units at the end of each measurement period.

Below are the details of the non-controlling interest in the Operating Partnership (in thousands):

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| **Balance at the beginning of the year** | $2191 | $1648 |
| Issuance of Class E units | 4022 | 30 |
| Distributions | (106) | (29) |
| GAAP income allocation | 48 | 1 |
| Adjustment to carrying value of redeemable equity instrument | 79 | 23 |
| **Ending balance** | $6234 | $1673 |

---

***Non-controlling Interest in the Consolidated Subsidiaries***

Non-controlling interest in the consolidated subsidiaries represents an affiliate and third-party equity interests in certain consolidated entities that are not wholly owned by the Company.

***Members' Equity of CapGrow***

Within CapGrow, the members' obligations and rights relating to contributions, distributions, and allocation of income and loss, among others, are governed by CapGrow's limited liability company agreement, as further amended from time to time (the "CapGrow Agreement"). Distributions of available cash are distributed to the members of CapGrow based on their respective membership interests until certain internal rate of return thresholds are met. As the rate of return thresholds are achieved, the allocation of distributions is modified as further described in the CapGrow Agreement. Income or losses are allocated to the members in amounts that result in ending capital account balances reflecting the amounts that would be distributed to them assuming CapGrow was liquidated at book value at the end of the reporting period.

**11. RELATED PARTY TRANSACTIONS**

***Due from Related Parties***

Since our initial investment, CapGrow has overseen the day to day operations of the Neptune JV and is entitled to a reimbursement of expenses borne on behalf of the Neptune JV. As of March 31, 2026 and December 31, 2025, there were no reimbursement of expenses due from the Neptune JV.

***Due to Related Parties***

The components of due to related parties of the Company are as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Accrued management fee | $391 | $380 |
| Accrued performance participation allocation | 587 | 3940 |
| Due to adviser | 1 | 1 |
| Advanced organization and offering costs | 2061 | 2233 |
| Due to affiliates, net | 35 | 14 |
|  | $3075 | $6568 |

---

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

***Management Fee***

The Company pays the Adviser an annual asset management fee equal to 0.50% of the NAV of the Company's Class F and Class FF Common Shares, and 0.75% of the NAV of the Company's Class AA, Class A and Class I-S Common Shares. If in the future the Company sells other classes of shares, the Company will pay the Adviser a management fee of 1.25% of the aggregate NAV of Class S Common Shares, Class D Common Shares and Class I Common Shares, per annum, payable monthly. Additionally, to the extent that the Operating Partnership issues Operating Partnership units to parties other than the Company, the Operating Partnership will pay the Adviser a management fee equal to 1.25% of the aggregate NAV of the Operating Partnership attributable to such Operating Partnership units not held by the Company per annum payable monthly in arrears. No management fee will be paid with respect to Class E Common Shares or Class E Units, which are only expected to be held by Sculptor, its personnel and affiliates. In calculating the management fee, the Company will use its NAV and the NAV of the Operating Partnership units not held by the Company before giving effect to monthly accruals for the management fee, the performance participation allocation, distribution fees or distributions payable on the Company's shares of stock or Operating Partnership units.

The management fee, which is due monthly in arrears, may be paid, at the Adviser's election, in cash, Class E shares or Class E units of our Operating Partnership. The Adviser may defer the payment of management fee at its discretion.

During the three months ended March 31, 2026 and 2025, the Company incurred management fees amounting to $0.6 million and $0.4 million, respectively.

During the three months ended March 31, 2026, the Company issued 50,221 Class E shares as payment for the management fee from November 2025 through January 2026. During the three months ended March 31, 2025, the Company issued 37,209 Class E shares as payment for the management fee from November 2024 through January 2025.

As of March 31, 2026 and December 31, 2025, the Company owed management fees amounting to $0.4 million and $0.4 million, respectively.

***Performance Participation***

The Special Limited Partner holds a performance participation interest in the Operating Partnership, which has multiple components: a performance participation interest with respect to the Class D units, Class I units and Class S units (the "Performance Allocation"); a performance allocation with respect to the Class A units and Class AA units (the "Class A Performance Allocation"); a performance allocation with respect to the Class I-S units (the "Class I-S Performance Allocation"); and a performance allocation with respect to the Class F units and Class FF units (the "Class F Performance Allocation"). The Performance Allocation entitles the Special Limited Partner to receive an allocation from the Operating Partnership equal to 12.5% of the Total Return, subject to a 5% Hurdle Amount and a High-Water Mark, with a Catch-Up; the Class A Performance Allocation entitles the Special Limited Partner to receive an allocation equal to 10.0% of the Class A Total Return, subject to a 7% Class A Hurdle Amount and a High-Water Mark, with a 50% Catch-Up; the Class I-S Performance Allocation entitles the Special Limited Partner to receive an allocation equal to 10.0% of the Class I-S Total Return, subject to a 7% Class I-S Hurdle Amount and a High-Water Mark, with a 50% Catch-Up; and the Class F Performance Allocation entitles the Special Limited Partner to receive an allocation equal to 6.25% of the Class F Total Return, subject to a 7% Class F Hurdle Amount and a High-Water Mark, with a 50% Catch-Up (as each of those terms is defined in the amended and restated limited partnership agreement of the Operating Partnership). Distributions on the Performance Allocation, Class A Performance Allocation, Class I-S Performance Allocation, and Class F Performance Allocation are payable in cash or Class E Units at the election of the Special Limited Partner.

The performance allocations are accrued on a monthly basis and are paid on an annual basis. During the three months ended March 31, 2026, the Company accrued performance allocation of $0.6 million. During the three months ended March 31, 2025, there was no performance allocation accrued. In January 2026, the Company issued 335,843 Class E units to the Special Limited Partner as payment for the 2025 performance allocation.

***Expense Reimbursements***

Except for the employees of CapGrow, the Company does not have any employees. Currently, the Adviser is responsible for the payroll costs and related expenses of the Adviser's personnel who are involved in the operation and management of the Company.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

The Adviser is entitled to reimbursement of all costs and expenses incurred on behalf of the Company, which includes (a) organization and offering expenses (excluding upfront selling commissions and distribution fees), (b) professional fees for services obtained from third parties that directly relate to the management and operations of the Company, (c) expenses of managing and operating our properties, whether payable to an affiliate or a non-affiliated person, and (d) out-of-pocket expenses in connection with the selection and acquisition of properties and real estate debt, whether or not such investments are acquired. As of March 31, 2026 and December 31, 2025, the Company owed the Adviser less than $0.1 million for expenses paid on its behalf.

The Company began reimbursing organization and offering expenses incurred prior to the first anniversary of the commencement of the Offering ratably over 60 months commencing in the first month following the first anniversary of the date the Company commenced the Offering. Any additional organization and offering expenses incurred subsequently are reimbursed on a monthly basis. Commencing four fiscal quarters after the acquisition of CapGrow, the Company may not reimburse the Adviser at the end of any fiscal quarter for total operating expenses that in the four consecutive fiscal quarters then ended exceed the greater of: 2% of our "average invested assets" or 25% of the Company's "net income" (as defined in the advisory agreement) unless the independent directors determine that the excess expenses were justified based on such factors that they deem sufficient. As of March 31, 2026 and December 31, 2025, the Company owed offering and organization costs of $2.1 million and $2.2 million, respectively.

***Employment Agreement***

At acquisition, CapGrow renewed the employment agreement with its chief executive officer, whose primary responsibility is to manage the day-to-day business and affairs of CapGrow, as directed by the Company. The employment agreement, which expires in January 2028, provides a minimum salary amount and a performance-based bonus. The total compensation costs were included in general and administrative expenses on the condensed consolidated statements of operations.

A wholly-owned subsidiary of CapGrow JV has a performance bonus plan that allows its qualified employees to be entitled to a cash bonus at the end of the 5-year performance period ending January 3, 2028. The performance bonus is calculated as 2% of the hypothetical distributions to members of CapGrow JV after CapGrow Member would have received a certain IRR.

As of March 31, 2026 and December 31, 2025, the Company had accrued $0.5 million and $0.5 million, respectively, based on estimated hypothetical distributions, which was partly based on the fair market value of the CapGrow investment at the end of the performance period. The accrued amount is included in accounts payable and other liabilities on the condensed consolidated balance sheets.

***Property Management Agreements***

Certain of the Company's investments are managed by the Company's joint venture partners and such joint venture partners' affiliates. They provide management, leasing, construction supervision and asset management services. These agreements typically provide for property and asset management fees based on either predetermined fees or fees as a percentage of the effective gross revenue generated by the respective asset. Fees for construction management are typically based on a percentage of costs incurred. Additionally, certain agreements require the Company to reimburse the property manager for any expenses incurred on its behalf.

During the three months ended March 31, 2026 and 2025, the total property and asset management fees which were included in property operating expenses in the condensed consolidated statements of operations, were $0.1 million.

As of March 31, 2026 and December 31, 2025, the amounts due to affiliates under the property management agreements totaled $0.1 million and less than $0.1 million.

**12. FAIR VALUE MEASUREMENTS**

The Company is required to disclose fair value information regarding certain financial instruments, whether or not recognized at fair value in the condensed consolidated balance sheets, for which it is practical to estimate fair value. The FASB guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (e.g., the exit price). The Company measures and/or discloses the estimated fair value of certain financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity's own assumptions about market participant assumptions. This hierarchy consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. The Company follows this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. Our assessment of the significance of the particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

***Valuation of Financial Instruments Measured at Fair Value***

From time to time, the Company may use derivative instruments, such as interest rate swaps or caps to manage or hedge interest rate risk. The Company hedges its exposure to variability in future cash flows for forecasted transactions in addition to anticipated future interest payments on its existing debt. The Company does not anticipate designating any of its derivative financial instruments as hedges. As such, derivatives that are not hedges are adjusted to fair value through earnings. The valuation of these instruments is determined by a third-party service provider using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and utilizes observable market-based inputs, including interest rate curves and implied volatilities. The valuation of these derivatives is considered Level 2 within the fair value hierarchy.

As of March 31, 2026 and December 31, 2025, the Company has an interest rate cap agreement, which is used to manage the interest payments related to the mortgage payable held by University Courtyard. The fair value of this interest rate cap is presented as part of other assets in the condensed consolidated balance sheets. On March 26, 2026, the Company entered into an interest rate swap agreement related to the mortgage payable held by Mt. Elliott Property. The fair value of the Mt. Elliott interest rate swap approximated cost as of March 31, 2026.

During the three months ended March 31, 2026, the Company recorded an unrealized gain on derivative instrument of $20 thousand which are included in unrealized gain (loss) on derivative instruments in our condensed consolidated statements of operations. During the three months ended March 31, 2025, the Company recorded unrealized loss on derivative instrument amounting to $0.4 million which are included in unrealized gain (loss) on derivative instruments in our condensed consolidated statements of operations.

The following table summarizes the fair value, notional amount and other information related to these instruments as of March 31, 2026 and December 31, 2025, respectively:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Notional Value** | **Index** | **Strike Rate** | **Effective Date** | **Expiration Date** | **March 31, 2026** | **December 31, 2025** |
| Interest rate cap | $20880 | SOFR | 1.00% | October 2023 | November 2028 | $1343 | $1324 |
| Interest rate swap | $16990 | SOFR | 3.86% | March 2026 | March 2029 | $— | $— |
|  |  |  |  |  |  | $1343 | $1324 |

---

From time to time, the Company may invest in certain real estate-related debt investments, including preferred equity and debt securities, which upon the election of FVO, are recorded at fair value. The Company generally determines the fair value of its real estate debt investments utilizing third-party pricing service providers, who may use broker-dealer quotations, reported trades, or valuation estimates from their pricing models to determine the estimated price. The pricing service providers' models usually consider the attributes applicable for similar securities (e.g., credit rating, seniority), current market data, and estimated cash flows and incorporate deal collateral performance, such as prepayment speeds and default rates, as available. The valuation of our investments in CMBS and loan syndication is generally considered Level 2 within the fair value hierarchy.

As of March 31, 2026, the valuation of certain investments in real estate debt were classified as Level 3 within the fair value hierarchy. During the three months ended March 31, 2026, the Company recorded less than $0.1 million loss related to these investments.

The fair value of the Level 3 debt investments is determined primarily using discounted cash flow models and recent transaction pricing, adjusted for market conditions. The models incorporate significant unobservable inputs, including: (i)

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

estimated cash flows and exit scenarios based on expected distributions and redemption rights; (ii) discount rates, reflecting credit risk and liquidity; (iii) estimated timing and probability of exit events; and (iv) subordination features or waterfall priority in capital structures. Because these inputs are based on judgment and assumptions that are not directly observable in the market, changes to these inputs could result in significantly different fair values. For example, increases in the discount rate or a delay in expected exit timing would reduce the fair value. Interrelationships among these assumptions (e.g., higher risk assumptions leading to lower expected exit proceeds) can magnify valuation sensitivity.

The following table summarizes the significant unobservable inputs used in the valuation of Level 3 investments included in investments in real estate debt as of March 31, 2026 and December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Valuation Technique** | **Unobservable Inputs** | **Rate Range** | **Impact to Valuation from an Increase in Input** |
| Preferred equity | Discounted cash flow | Discount rate | 12.25% - 12.75% | Decrease |
| Junior mortgage loan | Discounted cash flow | Discount rate | 11.20% | Decrease |
| Senior secured term loan | Discounted cash flow | Discount rate | 10.57% | Decrease |
| Revolving credit facility | Discounted cash flow | Discount rate | 10.57% | Decrease |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Valuation Technique** | **Unobservable Inputs** | **Rate Range** | **Impact to Valuation from an Increase in Input** |
| Preferred equity | Discounted cash flow | Discount rate | 12.25% | Decrease |
| Junior mortgage loan | Discounted cash flow | Discount rate | 11.03% | Decrease |

---

The following table details the Company's assets measured at fair value on a recurring basis using Level 3 inputs:

---

| | |
|:---|:---|
| | **Investments in<br>Real Estate Debt** |
| **Balance as of December 31, 2025** | $53562 |
| Purchases | 67100 |
| Paid-in-kind interest | 1164 |
| Net unrealized gain / (loss) included in earnings | (60) |
| **Balance as of March 31, 2026** | $121766 |

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***Valuation of Assets Measured at Fair Value on a Nonrecurring Basis***

When performing a business combination or asset acquisition, the Company is required to measure assets and liabilities at fair value as of the acquisition date consistent with ASC 805. The fair value of each property is determined primarily based on unobservable data inputs, which utilized market knowledge obtained from historical transactions and published market data. Any above- and below-market lease intangibles are derived (using a discount rate which reflects the risks associated with the lease acquired) based on the difference between contractual rent and market rent, measured over a period equal to the remaining term of each of the leases, including the renewal options for below market leases. In estimating in-place leases and deferred commissions, the Company uses estimates of its carry costs during hypothetical expected lease-up periods and costs to execute similar leases, which include estimates of lost rental income at market rates as well as leasing commissions. Debt is valued by a third-party appraiser, utilizing the discounted cash flow and inputs such as discount rate, prepayment speeds, general economic and industry trends, and is considered Level 3 within the fair value hierarchy.

Certain of the Company's assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments, such as when there is evidence of impairment, and therefore measured at fair value on a nonrecurring basis. The Company

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

reviews its real estate properties for impairment each quarter or when there is an event or change in circumstances that could indicate the carrying amount of the real estate value may not be recoverable. The valuation methodologies used to value our real estate with indicators of impairment involve subjective judgments regarding such factors as comparable sales, rental revenue and operating expense data, known contingencies, the capitalization or discount rate, and projections of future rent and expenses based on appropriate analysis.

The Company recorded impairment losses in respect of the assets sold, held for sale properties and certain held for use properties where leases were terminated and/or are vacant, with expected sales proceeds to be lower than the carrying value of the properties. The fair value of these impaired assets is primarily based on the sale price pursuant to the binding executed contracts, list price or third-party estimated fair value less applicable estimated costs to sell, and are considered Level 3 within the fair value hierarchy. Refer to Note 3, "Investments in Real Estate," for additional disclosure relating to asset impairment.

***Valuation of Liabilities Not Measured at Fair Value***

The following table presents the carrying value and estimated fair value of our financial instruments that are not carried at fair value on the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| | **Carrying Value**<sup>(1)</sup> | **Estimated Fair Value** | **Carrying Value**<sup>(1)</sup> | **Estimated Fair Value** |
| Mortgages and other loans payable | $343111 | $338460 | 327304 | 322001 |
| Revolving credit facility | 13654 | 13654 | 13133 | 13133 |
|  | $356765 | $352114 | 340437 | 335134 |
| <sup>(1)</sup> The carrying value of these loans do not include unamortized premium or discount and debt issuance costs. | <sup>(1)</sup> The carrying value of these loans do not include unamortized premium or discount and debt issuance costs. | <sup>(1)</sup> The carrying value of these loans do not include unamortized premium or discount and debt issuance costs. | <sup>(1)</sup> The carrying value of these loans do not include unamortized premium or discount and debt issuance costs. |  |

---

The fair value of the Company's borrowings is estimated by modeling the cash flows required by our debt agreements and discounting them back to present value using the appropriate discount rate. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. These estimates are considered Level 3 within the fair value hierarchy.

**13. ECONOMIC DEPENDENCY**

The Company is dependent on the Adviser and its affiliates for certain services that are essential to it, including the sale of the Company's shares of common stock, acquisition and disposition decisions, and certain other responsibilities. In the event that the Adviser and its affiliates are unable to provide such services, the Company would be required to find alternative service providers.

**14. RENTAL INCOME**

The Company leases the CapGrow Portfolio to various companies who serve adults with behavioral health needs, primarily under triple-net lease agreements, with terms extending through July 2035. Under the terms of the triple-net lease agreements, tenants are responsible for the payment of all taxes, maintenance, repairs, insurance, environmental and other operating expenses relating to the residential and commercial real estate. Variable lease payments consist of tenant reimbursements and other fees such as late fees, among others. As of March 31, 2026, 49 subsidiaries of National Mentor Holdings, Inc., a Delaware corporation doing business as "Sevita," leased approximately 515 of the CapGrow Portfolio properties, representing 23% of the Company's total assets. As of December 31, 2025, 49 subsidiaries of Sevita leased approximately 519 of CapGrow Portfolio properties, representing 26% of the Company's total assets. Leases with Sevita accounted for 33% and 37% of the Company's total rental revenues for the three months ended March 31, 2026 and 2025, respectively. These leases had various expiration dates extending through June 2035.

There are no cross-default provisions among the leases with the subsidiaries of Sevita. Although Sevita is not a party to these leases, Sevita has entered into separate guarantee agreements with respect to 432 and 433 of CapGrow's properties and 20% and 22% of total assets as of March 31, 2026 and December 31, 2025, respectively.

During the three months ended March 31, 2026 and 2025, properties guaranteed by Sevita represented 28% and 32% of the total rental revenues, respectively.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

For both the three months ended March 31, 2026 and 2025, there were two and three tenants that each represented more than 5% of total rental income, which collectively represented 39% and 50% of the Company's rental revenue, respectively.

While this represents a significant concentration risk with regard to revenue, the credit risk associated with these tenants is mitigated since the payor stream is principally derived through Medicaid waivers. A majority of the CapGrow Portfolio is located in Minnesota, Texas, Ohio, Arizona, and Pennsylvania.

Leases at the Company's student housing and parking garage properties are generally rented under lease agreements with terms of one year or less, renewable on an annual or monthly basis. All of the leases related to the Company's student housing property as of March 31, 2026 expire on or before July 2026 as is customary for student housing where lease terms are generally based on the start of the academic year in the fall. Such leases generally provide for a fixed monthly rent during the lease term. The leases related to the Company's parking garage properties provide for a fixed monthly rent and variable lease payments based on a percentage of revenues in excess of a predetermined revenue threshold generated by the garages during the annual lease term.

As of March 31, 2026, the future minimum rents to be received over the next five years and thereafter for noncancellable operating leases are as follows:

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| | |
|:---|:---|
| **Year Ending** | |
| December 31, 2026 (nine months) | $33516 |
| December 31, 2027 | 38807 |
| December 31, 2028 | 28800 |
| December 31, 2029 | 26388 |
| December 31, 2030 | 22045 |
| Thereafter | 129002 |
|  | $278558 |

---

The components of lease income from operating leases are as follows (in thousands):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2025** |
| Fixed lease payments | $14070 | $11736 |
| Variable lease payments | 366 | 81 |
| Total | $14436 | $11817 |

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**15. COMMITMENTS AND CONTINGENCIES**

***Office Lease***

CapGrow leases its office space from a third party under an operating lease. Effective August 1, 2025, CapGrow leased additional space in the same building and the lease is accounted for as a new lease. Both leases expire in February 2028.

During the three months ended March 31, 2026 and 2025 rent expense, which is included in general and administrative in the condensed consolidated statements of operations, was less than $0.1 million for each period.

The following table reflects the future minimum lease payments as of March 31, 2026 (in thousands):

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| | |
|:---|:---|
| **Year Ending** | |
| December 31, 2026 (nine months) | $82 |
| December 31, 2027 | 112 |
| December 31, 2028 | 19 |
| December 31, 2029 |  |
| December 31, 2030 |  |
| Total minimum lease payments | 213 |
| Imputed interest | (8) |
| Total operating lease liabilities | $205 |

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***Legal Matters***

The Company is not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against the Company which if adversely determined could have a material adverse impact on the Company other than routine litigation arising in the ordinary course of business.

***Environmental Matters***

As an owner of real estate, the Company is subject to various environmental laws of federal, state, and local governments. The Company's compliance with existing laws has not had a material adverse effect on its financial condition and results of operations, and the Company does not believe it will have a material adverse effect in the future. However, the Company cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on its current properties or on properties that the Company may acquire.

**16. SEGMENT REPORTING**

The Company operates in five reportable segments as of March 31, 2026: Residential (Business), Student Housing, Commercial Properties, Industrial Properties and Investments in Real Estate Debt. Prior to the acquisition of various real estate debt, the two parking garages, the Marysville Property and the Mt. Elliott Property, the Company operated in two reportable segments.

The following table details the total assets by segment (in thousands):

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Residential (Business) | $499635 | $503137 |
| Student Housing | 54822 | 56116 |
| Commercial Properties | 8359 | 8226 |
| Industrial Properties | 149988 | 123105 |
| Investments in Real Estate Debt | 170532 | 102057 |
| Other (Corporate) | 45606 | 70415 |
| Total assets | $928942 | $863056 |

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The following table details the financial results of operations by segment for the three months ended March 31, 2026 and 2025 (in thousands):

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Industrial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | | |
| Rental revenue | $10050 | $1352 | $571 | $2463 | $— | $— | $14436 |
| Other revenue | 150 | 174 |  | 122 |  | (2) | $444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 10200 | 1526 | 571 | 2585 |  | (2) | 14880 |
| **Expenses** |  |  |  |  |  |  |  |
| Property operating expenses | 346 | 726 | 102 | 193 |  |  | 1367 |
| General and administrative | 962 | 217 | 19 | 23 |  | 1601 | 2822 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 1308 | 943 | 121 | 216 |  | 1601 | 4189 |
| Segment net operating income (loss) | $8892 | $583 | $450 | $2369 | $— | $(1603) | $10691 |
| Income from an unconsolidated joint venture | 31 |  |  |  |  |  | 31 |
| Income from investments in real estate debt, net |  |  |  |  | 4482 |  | 4482 |
| Gain on sale of real estate | 29 |  |  |  |  |  | 29 |
| Interest expense, net | (3013) | (486) |  | (1144) |  | 248 | (4395) |
| Impairment of investments in real estate | (282) |  |  |  |  |  | (282) |
| GAAP segment income (loss) | $5657 | $97 | $450 | $1225 | $4482 | $(1355) | $10556 |
| Other segment income (expense)<sup>(1)</sup> | (4278) | (561) | (170) | (1002) | (280) | (1182) | (7473) |
| **Net income (loss)** | 1379 | (464) | 280 | 223 | 4202 | (2537) | 3083 |
| Net loss (income) attributable to non-controlling interest in the consolidated subsidiaries | (91) | 46 | (42) |  |  |  | (87) |
| Net loss (income) attributable to non-controlling interest in the Operating Partnership |  |  |  |  |  | (48) | (48) |
| **Net income (loss) attributable to SDREIT stockholders** | $1288 | $(418) | $238 | $223 | $4202 | $(2585) | $2948 |
| _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization, unrealized gain (loss) on derivative instruments and income taxes as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization, unrealized gain (loss) on derivative instruments and income taxes as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization, unrealized gain (loss) on derivative instruments and income taxes as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization, unrealized gain (loss) on derivative instruments and income taxes as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization, unrealized gain (loss) on derivative instruments and income taxes as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization, unrealized gain (loss) on derivative instruments and income taxes as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization, unrealized gain (loss) on derivative instruments and income taxes as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization, unrealized gain (loss) on derivative instruments and income taxes as well as certain corporate expenses, including management fees and performance participation allocation. |

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | |
| Rental revenue | $10116 | $1659 | $42 | $— | $— | $11817 |
| Other revenue | 176 | 223 |  |  |  | 399 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 10292 | 1882 | 42 |  |  | 12216 |
| **Expenses** |  |  |  |  |  |  |
| Property operating expenses | 337 | 766 | 4 |  |  | 1107 |
| General and administrative | 1101 | 187 | 14 | 233 | 950 | 2485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 1438 | 953 | 18 | 233 | 950 | 3592 |
| Segment net operating income (loss) | 8854 | 929 | 24 | (233) | (950) | 8624 |
| Income from an unconsolidated joint venture | 30 |  |  |  |  | 30 |
| Income from investments in real estate debt, net |  |  |  | 816 |  | 816 |
| Gain (loss) on sale of real estate | 18 |  |  |  |  | 18 |
| Interest expense, net | (2945) | (480) |  |  | 404 | (3021) |
| Impairment of investments in real estate | (753) |  |  |  |  | (753) |
| GAAP segment income (loss) | $5204 | $449 | $24 | $583 | $(546) | $5714 |
| Other segment income (expense)<sup>(1)</sup> | (4600) | (916) | (26) |  | (433) | (5975) |
| **Net income (loss)** | 604 | (467) | (2) | 583 | (979) | (261) |
| Net (income) loss attributable to non-controlling interest in the consolidated subsidiaries | (44) | 47 |  |  |  | 3 |
| Net (income) loss attributable to non-controlling interest in the Operating Partnership |  |  |  |  | (1) | (1) |
| **Net income (loss) attributable to SDREIT stockholders** | $560 | $(420) | $(2) | $583 | $(980) | $(259) |
| _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. |

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**17. SUBSEQUENT EVENTS**

***Private Placement Offerin****g*

Subsequent to March 31, 2026, the Company issued the following shares at aggregate gross proceeds of $54.6 million.

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| | | |
|:---|:---|:---|
| | **Number of Shares Issued** | **Gross Proceeds** |
| Class E Shares<sup>(1)</sup> | 3550654 | $41793 |
| Class AA Shares | 999619 | 11355 |
| Class A Shares<sup>(2)</sup> | 133604 | 1485 |
| Total | 4683877 | $54633 |

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_______________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes 33,215 shares, or $0.4 million issued to Sculptor Advisors LLC as payment for accrued management fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> Includes sales load fees of $0.1 million for Class AA Shares.

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

***Distributions***

The following table summarizes the Company's distributions per share as declared and paid or payable (net of distribution fees) to stockholders subsequent to March 31, 2026:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Declaration Date** | **Record Date** | **Class F Shares** | **Class FF Shares** | **Class E Shares** | **Class AA Shares** | **Class A Shares** | **Class I-S Shares** | **Payment Date** |
| March 31, 2026 | March 31, 2026 | $0.0671 | $0.0623 | $0.0671 | $0.0623 | $0.0671 | $0.0671 | April 10, 2026 |
| April 30, 2026 | April 30, 2026 | $0.0670 | $0.0623 | $0.0670 | $0.0624 | $0.0670 | $0.0670 | May 12, 2026 |

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***Acquisitions***

• On May 1, 2026, the Company, through a wholly owned subsidiary, MIH Investor LLC ("MIH Investor"), entered into a joint venture (the "MIH Member JV") with various investment funds that are managed by affiliates of our Adviser. The Company is committed to contribute approximately $87.0 million to the MIH Member JV for an approximately 33% interest in such joint venture. The MIH Investor is the managing manager of MIH Member JV. Also on May 1, 2026, MIH Member JV entered into a joint venture agreement with Trinity Hotel Acquisitions LLC ("Trinity"), pursuant to which the MIH Member JV holds an 85% interest and Trinity holds a 15% interest in the joint venture ("MIH JV"). On May 1, 2026, MIH JV acquired the JW Marriott Marco Island Beach Resort (the "Property"), a hotel located at 400 South Collier Boulevard, Marco Island, Florida. The Property includes an 809-key beach resort, more than 10 acres of private beachfront land and two 18-hole golf courses. The MIH JV acquired a fee simple interest in the Property. The aggregate purchase price for the Property was $835.0 million, excluding transaction costs. The acquisition was funded with $690.0 million of proceeds from a mortgage loan and the remainder from equity contributions from the members of the MIH JV. At closing, the Company funded our proportionate share of the purchase price of $55.1 million, after netting a $5.1 million nonrefundable deposit that we made in February 2026 as a result of the purchase agreement entered into between the indirect subsidiaries of MIH JV and the third-party sellers. As of May 1, 2026, the Company has a commitment to fund the remaining $26.8 million.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*References herein to "Sculptor Diversified Real Estate Income Trust," "SDREIT," the "Company," "we," "us," or "our" refer to Sculptor Diversified Real Estate Income Trust, Inc., a Maryland corporation, and its subsidiaries including Sculptor Diversified REIT Operating Partnership LP, a Delaware limited partnership, which we refer to herein as the "Operating Partnership" unless the context specifically requires otherwise.*

The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and the accompanying notes to our unaudited condensed consolidated financial statements, which are included in Item 1 of this Quarterly Report, as well as the information contained in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC").

**Forward-Looking Statements**

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, or the negatives thereof. These may include our financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements with respect to acquisitions, statements regarding future performance and statements regarding identified but not yet closed acquisitions. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this. Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

**Overview**

Sculptor Diversified Real Estate Income Trust invests primarily in stabilized income-generating commercial real estate across a variety of both traditional and non-traditional sectors in the U.S. and Europe, and to a lesser extent, invests in real estate related securities. The Company is the sole general partner and a limited partner of Sculptor Diversified REIT Operating Partnership LP (the "Operating Partnership"), and the Company owns substantially all of its assets through the Operating Partnership.

The Company was formed on February 11, 2022 ("Inception") as a Maryland corporation and has operated and elected to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2023. We generally are not subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT.

The Company and the Operating Partnership are externally managed by Sculptor Advisors LLC (in its capacity as our adviser, the "Adviser"), a Delaware limited liability company and a registered investment adviser. The Adviser is an affiliate of Sculptor Capital Management, Inc. (together with its affiliates, "Sculptor"). Sculptor Diversified REIT Special Limited Partner LP (the "Special Limited Partner"), an affiliate of the Adviser, owns a special limited partner interest in the Operating Partnership.

The Company's board of directors has at all times oversight and policy-making authority over the Company, including responsibility for governance, financial controls, compliance and disclosure. Pursuant to an advisory agreement, the Company has delegated to the Adviser the authority to source, evaluate and monitor the Company's investment opportunities and make decisions related to the acquisition, management, financing and disposition of the Company's assets, in accordance with the Company's investment objectives, guidelines, policies and limitations, subject to oversight by the Company's board of directors.

As of March 31, 2026, the Company's investments in real estate consisted of (a) through its wholly-owned subsidiary, CapGrow Holdings Member LLC (the "CapGrow Member"), a 93.38% controlling interest in CapGrow Holdings JV LLC ("CapGrow JV," and together with CapGrow Member, "CapGrow"), that owns a portfolio of primarily single-family homes leased to and operated by care providers that serve individuals with intellectual and developmental disabilities, (b) a 90.00% equity interest in a joint venture that owns University Courtyard, a 240-unit, 792-bed student housing property ("University Courtyard") located in Denton, Texas, (c) an 85.10% controlling interest in a joint venture that owns two parking garage

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properties located in Rochester, New York, (d) a 100.00% equity interest in a 1.3 million square foot distribution center located in Marysville, Ohio (the "Marysville Property") that is 100.00% leased on a long-term basis to a wholly-owned subsidiary of a leading marketer of branded consumer lawn and garden care products listed on the NYSE, and (e) a 98.00% ownership interest in a joint venture that owns an industrial facility located in Detroit, Michigan (the "Mt. Elliott Property") that is leased on a long-term, triple-net basis to a subsidiary of a global steel producer listed on the NYSE.

In 2024, CapGrow, CapGrow's founder and CapGrow Neptune Investor LLC, an affiliate of Sculptor, formed a joint-venture, CapGrow Neptune JV LLC, and closed on the acquisition of a portfolio of 33 single-family residences and intermediate care facilities located in California and Minnesota. Through the Company's interest in CapGrow JV, the Company owns a 4.67% indirect noncontrolling interest in Neptune JV. This investment is accounted under the equity method of accounting.

From time to time, the Company acquires or enters into interests in real estate debt, such as commercial mortgage backed securities ("CMBS"), loans, and/or preferred equity investments. As of March 31, 2026, investments in real estate debt consists of (i) an investment in preferred equity in a real estate company that owns 75 net-leased veterinary hospitals and clinics, (ii) a junior mortgage loan collateralized by a casino and hotel property located in Las Vegas, Nevada, (iii) a participation in a senior secured term loan issued to finance the acquisition of a 15-asset, 5,793-key resort portfolio located in Mexico, the Dominican Republic, and Jamaica, (iv) a financing facility to an equestrian show operator (the "Equestrian Loan Facility") that consists of senior financing, preferred equity, a revolver loan available for drawdown, and an optional delayed-draw term loan (that is at our sole discretion) and (v) investments in CMBS.

See "Investment Portfolio" below for additional information on these investments.

**Current Market Conditions and Related Risks and Opportunities**

The Company's business is materially affected by conditions in the financial markets and economic conditions in the U.S. and to a lesser extent, elsewhere in the world (including as a result of ongoing geopolitical instability, including the military conflict in the Middle East and its effects on global energy markets and oil prices, global trade disruption and uncertainties regarding actual and potential shifts in U.S. and foreign, trade, economic, tax and other policies, including with respect to treaties and tariffs). Elevated energy costs, including rising oil prices resulting from geopolitical conflict, as well as global trade disruptions and tariff-related uncertainties, have contributed to increased market volatility and may negatively impact economic conditions going forward. High interest rates and a reduction in the availability of financing, especially from banks, has led to greater spreads between the prices sought by sellers and buyers, which may adversely affect the value of our real estate assets. However, given that we are seeking to raise and invest substantial equity capital, we believe that market stresses could lead to attractive acquisition opportunities. While higher interest rates make financing more expensive, CapGrow has the benefit of having previously locked in all of its mortgage loans at favorable fixed interest rates, which represented approximately 60% of our total debt obligations. Also, we have a five-year interest rate protection agreement which caps University Courtyard's mortgage at a fixed interest rate of 3.56% through November 2028 and a three-year interest rate protection agreement to fix the variable interest rate of the Mt. Elliott mortgage to 6.01% through March 2029. The only variable rate loan that is indexed to SOFR is CapGrow's revolving credit facility, which had a balance of $13.7 million as of March 31, 2026. A 100 basis point increase or decrease in SOFR would have resulted in an increase or decrease in interest expense of less than $0.1 million during the three months ended March 31, 2026. See "Liquidity and Capital Resources — Capital Resources" below. With respect to the Veterinary Real Estate Company, the Veterinary Real Estate Company has a senior loan facility with a variable rate loan that is indexed to SOFR. In general, higher interest rates will increase CapGrow's and the Veterinary Real Estate Company's financing costs associated with existing and newly acquired homes and facilities and are also likely to adversely affect the financial performance of CapGrow's and the Veterinary Real Estate Company's tenants, which could adversely affect our results of operation and financial condition. The senior loan ahead of our junior mortgage loan collateralized by the casino and hotel property is a variable rate loan. An increase in interest rates may limit the cash flow available to pay our junior mortgage loan. With respect to the Equestrian Loan Facility, the senior financing and revolver loan components bear interest at a floating rate indexed to SOFR, and higher interest rates may increase the equestrian show operator's financing costs and adversely affect its ability to service its obligations to us. The equestrian industry is subject to discretionary consumer spending trends and sector-specific risks, including event cancellations, equine infectious diseases, changes in U.S. Equestrian Federation rules and licensing policies, weather-related disruptions, and changing participation rates, any of which could adversely affect the operator's financial performance and its ability to meet its obligations under the Equestrian Loan Facility. The complex capital structure of the Equestrian Loan Facility, which includes senior financing, preferred equity and a revolver loan, means that our recovery in a distress scenario may be subject to structural subordination risks. With respect to the Mt. Elliott Property, the property is leased on a triple-net basis to a single tenant that is a subsidiary of a global steel producer whose primary customers for products from this facility are in the

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automotive sector. The financial performance of our investment is therefore dependent on the financial health of a single tenant and its parent. The steel and auto industries are subject to significant cyclicality and is particularly sensitive to changes in global trade policy, including tariffs and import restrictions, as well as consumer spending, which in the current environment could adversely affect the tenant's operations and ability to meet its lease obligations. The mortgage loan on the Mt. Elliott Property bears interest at a floating rate indexed to SOFR, which is fixed through an interest rate swap through March 2029, after which the loan will revert to a floating rate and expose the Company to interest rate risk. Each of the Marysville Property and the Mt. Elliott Property is leased to a single tenant, and as such each carries concentrated credit risk tied to the financial strength of a sole tenant. In the event of an early vacancy at either property, it may require significant time, capital, and potential subdivision of the space to successfully re-lease the property, which could adversely affect the Company's results of operations and financial condition,

High interest rates will also increase the federal government's interest payments and contribute to growing federal deficits, which deficits may lead to efforts to cut federal spending. Such efforts could result in lower Medicaid expenditures, on which CapGrow's lessees and tenants rely. In addition, inflation, which has been pronounced over the last three years, may result in higher general and administrative expenses for our Company and for our tenants. Insurance costs in certain markets have increased more than inflation due to property locations in high risk markets, increased claims due to natural disasters, higher property replacement costs, and fewer insurers serving high risk markets. Further, state and local governments may also look to increase real estate taxes and other related fees in order to offset lower revenues from other sources. While CapGrow's, the Veterinary Real Estate Company's, the Marysville Property's and the Mt. Elliott Property's leases are triple net or modified net, high insurance costs and real estate taxes may result in higher overall occupancy expenses for tenants, as well as for the Company's assets for which the Company is responsible to pay these costs.

The current geopolitical environment, including the ongoing military conflict in the Middle East, global trade disruption, and uncertainty regarding U.S. and foreign trade, economic, tax and other policies, may result in changes, reductions, or cancellation of government programs and funding which may directly or indirectly impact CapGrow's tenants and lessees. Sustained elevated oil prices and energy costs resulting from geopolitical conflict may also result in higher operating costs for tenants and may adversely impact their financial condition. Changes in the financing programs previously available through Freddie Mac for CapGrow may impact the availability and cost of future financings and refinancings. Changes in laws and regulations, both at the federal and state level, may impact the ownership of single family homes by institutional or corporate owners, including, without limitation, imposing limitations on future acquisitions by such owners, reducing the buyer market for single family home portfolios, and changing tax policies applicable to such owners. Government programs and funding for universities and their students may also be changed, reduced, or cancelled which may directly or indirectly affect University Courtyard's tenants.

Investing in commercial real estate assets also involves certain risks, including but not limited to, tenants' inability to pay rent (whether due to property-specific factors, company-specific factors, sector-level issues, or broader macroeconomic conditions), increases in interest rates and lack of availability of financing, tenant turnover and vacancies and changes in supply of or demand for similar properties in a given market. Any negative changes in these factors could affect the Company's performance and our ability to meet our obligations and make distributions to stockholders.

..

**Q1 2026 Highlights**

***Operating Results***

• We declared monthly distributions totaling $9.9 million for the three months ended March 31, 2026. During the three months ended March 31, 2026, our investments produced operating earnings and distributions that contributed to our total return. The details of the annualized distribution rate and total returns are shown in the following table:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** |
| First issuance date | 12/27/2022 | 5/1/2023 | 12/1/2023 | 2/1/2024 | 8/1/2024 | 2/1/2025 |
| Annualized Distribution Rate<sup>(1)</sup> | 7.02% | 6.59% | 6.83% | 6.65% | 7.23% | 7.26% |
| Year-to-Date Total Return, without upfront selling commissions<sup>(2)</sup> | 1.57% | 1.79% | 2.06% | 1.60% | 1.80% | 1.81% |
| Year-to-Date Total Return, assuming maximum upfront selling commissions<sup>(2)(3)</sup> | (0.39)% | (0.17)% | 2.06% | (0.36)% | (0.17)% | (0.16)% |
| Inception-to-Date Total Return, without upfront selling commissions<sup>(2)</sup> | 11.34% | 10.01% | 11.25% | 8.94% | 9.87% | 13.36% |
| Inception-to-Date Total Return, assuming maximum upfront selling commissions<sup>(2)(3)</sup> | 10.65% | 9.26% | 11.25% | 7.93% | 8.55% | 11.41% |

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____________________________________________________________________________

(1) The annualized distribution rate is calculated as the March 2026 distribution annualized and divided by the prior month's net asset value, which is inclusive of all fees and expenses.

(2) Total return is calculated as the change in NAV per share during the respective periods plus any distributions per share declared in the period and assumes any distributions are reinvested in accordance with our distribution reinvestment plan. Total return for periods greater than one year are annualized.

(3) There were no selling commissions charged in respect of the Class F, Class A, Class I-S, and E shares. No upfront selling commissions were assumed for Class E shares.

***Investments***

• In January 2026, we closed a $65.0 million financing facility to an equestrian show operator. The Equestrian Loan Facility consists of (i) $40.0 million of senior financing, (ii) $25.0 million of preferred equity, (iii) a $5.0 million revolver loan available for drawdown, and (iv) an optional $10.0 million delayed-draw term loan (that is at our sole discretion). As of March 31, 2026, $2.1 million has been drawn down on the revolver loan.

• In March 2026, through a joint venture in which we hold a 98% ownership interest, we acquired an industrial facility located in Detroit, Michigan for an aggregate purchase price of $26.8 million, including transaction costs. The property is leased on a long-term, triple-net basis to a subsidiary of a global steel producer listed on the NYSE, with a remaining lease term through December 2036.

• We acquired three vacant homes through CapGrow at an aggregate purchase price of $0.9 million during the three months ended March 31, 2026, which were leased to tenants concurrent with the acquisitions.

• We sold five CapGrow homes for aggregate net proceeds of $2.0 million during the three months ended March 31, 2026.

***Capital and Financing Activities***

• During the three months ended March 31, 2026, we raised an aggregate of $98.5 million of gross proceeds from the sale of our common shares, including proceeds from our distribution reinvestment plan, and repurchased common shares of $14.5 million.

• CapGrow incurred net additional borrowings of $0.5 million from the revolving credit facility to partly fund CapGrow's asset acquisitions during the three months ended March 31, 2026.

• CapGrow repaid $1.1 million of its existing mortgage loans as part of its scheduled debt service payments and asset sales during the three months ended March 31, 2026.

• The acquisition of the Mt. Elliott Property was partly financed with $16.9 million of third-party debt.

***Subsequent Event Highlights***

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• Subsequent to March 31, 2026, we raised aggregate gross proceeds of $54.6 million from the sale of our common shares and repurchased $1.0 million of our common shares.

• On May 1, 2026, we, through a wholly owned subsidiary, MIH Investor LLC ("MIH Investor"), entered into a joint venture (the "MIH Member JV") with various investment funds that are managed by affiliates of our Adviser. We are committed to contribute approximately $87.0 million to the MIH Member JV for an approximately 33% interest in such joint venture. The MIH Investor is the managing manager of MIH Member JV. Also on May 1, 2026, MIH Member JV entered into a joint venture agreement with Trinity Hotel Acquisitions LLC ("Trinity"), pursuant to which the MIH Member JV holds an 85% interest and Trinity holds a 15% interest in the joint venture ("MIH JV"). On May 1, 2026, MIH JV acquired the JW Marriott Marco Island Beach Resort (the "Property"), a hotel located at 400 South Collier Boulevard, Marco Island, Florida. The Property includes an 809-key beach resort, more than 10 acres of private beachfront land and two 18-hole golf courses. The MIH JV acquired a fee simple interest in the Property. The aggregate purchase price for the Property was $835.0 million, excluding transaction costs. The acquisition was funded with $690.0 million of proceeds from a mortgage loan and the remainder from equity contributions from the members of the MIH JV. At closing, we funded our proportionate share of the purchase price of $55.1 million, after netting a $5.1 million nonrefundable deposit that we made in February 2026 as a result of the purchase agreement entered into between the indirect subsidiaries of MIH JV and the third-party sellers. As of May 1, 2026, we have a commitment to fund the remaining $26.8 million.

**Investment Portfolio**

*Summary of Portfolio*

*Investments in Real Estate*

The following table provides a summary of our portfolio of real estate as of March 31, 2026:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property Type** | **Number of Properties** <sup>(1)</sup> | **Sq. Feet / Units/ Beds / Homes** | **Occupancy Rate**<sup>(2)</sup> | **Average Effective Annualized Base Rent**<br>**Per Leased Square**<br>**Foot/Unit/Key**<sup>(3)</sup> | **Gross Asset Value ($ in thousands)** <sup>(4)</sup> | **Segment Revenue ($ in thousands)** <sup>(5)</sup> | **Percentage of Total Segment Revenue** |
| Residential (Business)<sup>(6)</sup> | N/A | 1,123 units | 98% | $31443 | $556000 | $10200 | 69% |
| Student Housing | 1 | 792 beds | 73% | $6831 | 70300 | 1526 | 10% |
| Commercial Properties | 2 | 564,990 sq ft | 100% | $2.87 | 11800 | 571 | 4% |
| Industrial Properties | 2 | 1,594,114 sq ft | 100% | $6.80 | 140800 | 2585 | 17% |
| Total | 5 |  |  |  | $778900 | $14882 | 100% |

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_______________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Single family homes are accounted for in the number of units and are not reflected in the number of properties.

(2)&nbsp;&nbsp;&nbsp;&nbsp;For single family rental properties, occupancy is defined as the percentage of occupied homes as of March 31, 2026. For student housing, occupancy is defined as the percentage of occupied beds as of March 31, 2026. The two parking garages included under the Commercial Properties have leases in place with a national parking operator. The distribution center and the industrial facility under Industrial Properties are each 100% leased to single tenants.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Average effective annualized base rent represents the annualized base rent for the three months ended March 31, 2026 per leased unit, bed, or square foot, and excludes tenant recoveries, straight line rent, variable rent, and above-market and below-market lease amortization.

(4)&nbsp;&nbsp;&nbsp;&nbsp;Based on fair value of the real estate as of March 31, 2026.

(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment revenue is presented for the three months ended March 31, 2026.

(6) &nbsp;&nbsp;&nbsp;&nbsp;Under the business combination, CapGrow was acquired as a business. CapGrow owns primarily single family homes across the United States with a total square footage of 2.6 million.

The following table provides additional information regarding our portfolio of real estate as of March 31, 2026:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Segment and Investment** | **Number of Properties** | **Location** | **Acquisition Date(s)** | **Ownership Interest**<sup>(1)</sup> | **Purchase Price ($ in thousands)** | **Sq. Feet / Units/ Beds / Homes / Square Feet** |
| <u>Business:</u> |  |  |  |  |  |  |
| CapGrow<sup>(2)</sup> | N/A | Various | January, July and October 2023 and December 2024 | 93.38% | $455000 | 1,123 units |
| <u>Student Housing:</u> |  |  |  |  |  |  |
| University Courtyard | 1 | Texas | October 2023 | 90.00% | 58000 | 792 beds |
| <u>Commercial Properties:</u> |  |  |  |  |  |  |
| Rochester Garages | 2 | New York | May 2025 | 85.10% | 8500 | 564,990 sq ft |
| <u>Industrial Properties:</u> |  |  |  |  |  |  |
| Marysville Property | 1 | Ohio | October 2025 | 100.00% | 122982 | 1,280,496 sq ft |
| Mt. Elliott Property | 1 | Michigan | March 2026 | 98.00% | 26788 | 313,618 sq ft |
| Total | 5 |  |  |  | $671270 |  |

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______________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Ownership interest as of March 31, 2026. Certain of the joint venture agreements entered into by us provide the other partner a profits interest based on certain internal rate of return hurdles being achieved. Such investments are consolidated by us and any interests due to the other partner will be reported within non-controlling interests in consolidated joint ventures on our condensed consolidated balance sheets.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Purchase price represents the total enterprise value at the initial acquisition date of January 4, 2023.

*Lease Expirations*

The following table details the expiring leases at our real estate properties by annualized base rent and square footage as of March 31, 2026 (amounts and square feet data in thousands). The table below excludes our student housing and parking garage properties as substantially all of their leases expire in or within 12 months:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year** | **Number of Expiring Leases** | **Annualized Base Rent**<sup>(1)</sup> | **% of Total Annualized Base Rent Expiring** | **Square Feet** | **% of Total Square Feet Expiring** |
| 2026 (nine months) | 110 | $3098 | 6% | 285 | 6% |
| 2027 | 491 | 13264 | 27% | 987 | 22% |
| 2028 | 87 | 3430 | 7% | 207 | 5% |
| 2029 | 113 | 3283 | 7% | 228 | 5% |
| 2030 | 182 | 5278 | 11% | 389 | 9% |
| 2031 | 70 | 2967 | 6% | 199 | 5% |
| 2032 | 24 | 2598 | 5% | 151 | 3% |
| 2033 | 3 | 94 | —% | 8 | —% |
| 2034 | 14 | 1016 | 2% | 52 | 1% |
| 2035 | 6 | 579 | 1% | 30 | 1% |
| Thereafter | 2 | 14371 | 28% | 1908 | 43% |
| Total | 1102 | $49978 | 100% | 4444 | 100% |

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______________________________________________________

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Annualized base rent represents the amount of lease revenue that our portfolio would have generated in monthly contractual rent under existing leases as of March 31, 2026 multiplied by 12. The Company had not entered into any tenant concessions or rent abatements as of March 31, 2026. Amount excludes tenant recoveries, straight-line rent, and above-market and below-market lease amortization

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***Tenant Concentration in CapGrow***

While CapGrow currently leases properties to 49 different care providers, there are two that each represent more than 5% of the Company's total rental income, and collectively, the leases on the properties with these tenants contributed approximately 39% of the Company's rental income for the three months ended March 31, 2026. National Mentor Holdings, Inc., a Delaware corporation doing business as "Sevita," is the largest home-based care provider serving individuals with intellectual and developmental disabilities in the country. As of March 31, 2026, there are 49 separate subsidiaries of Sevita that have leased 515 of CapGrow's properties, none of which contain cross-default provisions within the leases. Such leases in the aggregate represent approximately 33% of the Company's rental income for the three months ended March 31, 2026, and 23% of the Company's total assets as of March 31, 2026. Although Sevita is not a party to these leases, Sevita has entered into separate guarantees with respect to leases by its subsidiaries for 432 of CapGrow's properties, which represents approximately 28% of the Company's rental income for the three months ended March 31, 2026, and 20% of the Company's total assets as of March 31, 2026. Accordingly, Sevita has guaranteed a significant concentration of our revenue. Sufficiently adverse developments with respect to the business of such subsidiaries and/or Sevita that result in them not being able to honor their lease obligations, or such that Sevita could not honor its many separate guarantees, would likely have a greater adverse impact on our results of operation and financial condition than would otherwise be the case without this concentration of risk.

Sevita's audited financial statements for its fiscal years ended September 30, 2025 and 2024 are available at Exhibit 99.1 to our Annual Report on Form 10-K for the year ended December 31, 2025. We rely on certain third parties (including Sevita) to provide us with accurate financial statements and other financial information necessary for our financial reporting and compliance obligations. We did not independently verify the financial information provided to us by Sevita. There is a risk that we may not receive such financial information from these third parties in a timely manner, or at all, in the next fiscal year. Any failure by these third parties to provide the required accurate financial information could delay our ability to meet our financial reporting obligations, hinder our decision-making processes, and impair our ability to provide accurate and timely disclosures to our investors. In such circumstances, we may also be unable to accurately assess our financial position or results of operations, which could result in negative consequences for our business, including potential regulatory actions or harm to our reputation.

Generally, there are individual leases on each owned property, so the risk of an individual lease expiring or otherwise being terminated would not have a significant impact on CapGrow's business or the overall revenues earned by the Company. Additionally, CapGrow has experienced a very strong lease renewal rate with its tenants renewing 82% of expiring leases cumulatively from 2012 through March 31, 2026. When assessing the financial position of a tenant, the Company is focused on the ability of the tenant to make rental payments underlying the lease. For existing tenants, this includes their track record of making timely payments, their source of funding (e.g., Medicaid), and to a lesser extent, information that can be gleaned from a review of their financial statements. Much of the tenant credit risk is mitigated since the payor stream is principally derived through Medicaid waivers. We believe that Medicaid's involvement in the payor stream has contributed to a long-term and consistent collection record of rent payments, with CapGrow experiencing no defaults by any of our four largest tenants. Moreover, even if a default occurred, CapGrow's experience suggests that states would generally find a new provider for those in our homes rather than displace the residents.

*Investments in Real Estate Debt*

The following table details our investments in real estate debt as of March 31, 2026 (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| |<br>**Coupon** |<br>**Maturity Date** | **Face Amount** | **Cost Basis** | **Fair Value** |
| Preferred equity<sup>(1)</sup> | 12.25%<sup>(2)</sup> | N/A(3) | $37044 | $37044 | $37044 |
| Preferred equity<sup>(1)</sup> | 12.75%<sup>(4)</sup> | January 2029 | 25682 | 25682 | 25682 |
| Junior mortgage loan | 1M Term SOFR + 7.50% <sup>(5)</sup> | May 2030 | 17000 | 17000 | 16940 |
| Senior secured term loan | 3M Term SOFR + 3.25% | December 2032 | 5000 | 4975 | 4856 |
| Senior secured term loan | 1M Term SOFR + 7.00%<sup>(6)</sup> | January 2029 | 40000 | 40000 | 40000 |
| Revolver loan | 1M Term SOFR + 7.00%<sup>(7)</sup> | 2029<sup>(8)</sup> | 2100 | 2100 | 2100 |
| CMBS - floating | 1M Term SOFR + 2.941% | January 2030 | 8000 | 7980 | 8003 |
| CMBS - floating | 1M Term SOFR + 4.00% | August 2030 | 2500 | 2500 | 2500 |
| CMBS - floating | 1M Term TSFR + 2.89% | March 2039 | 5000 | 5034 | 5012 |
| CMBS - floating | 1M Term TSFR + 3.10% | December 2030 | 21500 | 21500 | 21500 |
| CMBS - floating | 1M Term TSFR + 4.50% | December 2030 | 6281 | 6281 | 6281 |
|  |  |  | $170107 | $170096 | $169918 |

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_______________________________________

<sup>(1)</sup> Investment in preferred equity includes original stated balance plus paid-in-kind interest as of March 31, 2026.

<sup>(2)</sup> Interest accrues monthly with a current pay rate of 7.00% and a deferred interest rate of 5.25% through March 2030, after which the current pay rate increases to 12.00% and the deferred interest rate remains at 5.25% until the preferred units are fully redeemed, including accrued interest.

<sup>(3)</sup> The Company's preferred equity investment does not contain a stated maturity date. The Company has the right to cause the issuer to market and sell assets sufficient to redeem all remaining preferred units, including accrued interest, beginning in March 2031.

<sup>(4)</sup> Interest accrues daily on a 360-day year and is compounded quarterly.

<sup>(5)</sup> Interest accrues monthly at a rate of adjusted 1M Term SOFR+ 7.50% with an adjusted 1M Term SOFR floor of 3.00%.

<sup>(6)</sup> Interest accrues monthly at a rate of adjusted 1M Term SOFR+ 7.00% prior to the first anniversary of the closing date, 7.50% from and after the first anniversary through the second anniversary, and 8.00% thereafter. Adjusted 1M Term SOFR floor is 3.25%.

<sup>(7)</sup> Interest accrues monthly at a rate of adjusted 1M Term SOFR+ 7.00% prior to the first anniversary of the closing date, 7.50% from and after the first anniversary through the second anniversary, and 8.00% thereafter. Adjusted 1M Term SOFR floor is 3.25%. Unused commitment fee accrues daily at a rate of 0.25% per annum and is paid monthly.

<sup>(8)</sup> Revolver loan has draws outstanding of $0.6 million and $1.5 million that were made in February 2026 and March 2026, respectively. The revolving credit facility matures on January 14, 2029. However, the revolver loan must be paid down to$2.0 million or less once during each calendar year.

**Results of Operations**

***Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025***

The following table sets forth information regarding the condensed consolidated results of operations for the three months ended March 31, 2026 and 2025 (amounts in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | |
| | **2026** | **2025** |<br>**Change** |
| **Revenues** |  |  |  |
| Rental revenue | $14436 | $11817 | $2619 |
| Other revenue | 444 | 399 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 14880 | 12216 | 2664 |
| **Expenses** |  |  |  |
| Property operating expenses | 1367 | 1107 | 260 |
| Management fees | 595 | 433 | 162 |
| Performance participation allocation | 587 |  | 587 |
| General and administrative | 2822 | 2485 | 337 |

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | |
| | **2026** | **2025** |<br>**Change** |
| Depreciation and amortization | 6031 | 5161 | 870 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 11402 | 9186 | 2216 |
| Operating income | 3478 | 3030 | 448 |
| **Other income (expense):** |  |  |  |
| Interest expense, net | (4395) | (3021) | (1374) |
| Impairment of investments in real estate | (282) | (753) | 471 |
| Income from investments in real estate debt, net | 4482 | 816 | 3666 |
| Income (loss) from an unconsolidated entity | 31 | 30 | 1 |
| Unrealized gain (loss) on derivative instruments | 20 | (381) | 401 |
| Gain on sale of real estate | 29 | 18 | 11 |
| Other expenses | (280) |  | (280) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (395) | (3291) | 2896 |
| **Net income (loss)**  | $3083 | $(261) | $3344 |
| Net (loss) income attributable to non-controlling interest in the consolidated subsidiaries | (87) | 3 |  |
| Net (loss) income attributable to non-controlling interest in the Operating Partnership | (48) | (1) |  |
| **Net loss attributable to SDREIT stockholders** | $2948 | $(259) |  |
| **Net loss per common share - basic and diluted** | $0.06 | $(0.01) |  |
| **Weighted-average common shares outstanding - basic and diluted** | 50321128 | 31744954 |  |

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***Rental Revenue***

Rental revenue from property operations increased by $2.6 million from $11.8 million during the three months ended March 31, 2025 to $14.4 million during the three months ended March 31, 2026, which was primarily due to the acquisition of the Marysville Property in October 2025 and the parking garages in March 2025, which generated rental income of $2.4 million and $0.5 million, respectively in 2026. The increase was partially offset by a decrease in rental income of $0.3 million from University Courtyard as a result of decreased occupancy.

***Other Revenue***

Other revenue remained flat at $0.4 million during the three months ended March 31, 2026 and 2025.

***Property Operating Expenses***

Property operating expenses increased by $0.3 million from $1.1 million during the three months ended March 31, 2025 to $1.4 million during the three months ended March 31, 2026 primarily due to the acquisitions of the Marysville Property and the parking garages in 2025.

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***Management Fees***

Management fees increased by $0.2 million from $0.4 million during the three months ended March 31, 2025 to $0.6 million for the three months ended March 31, 2026. The increase was due to the increase in net asset value partly driven by the capital raised and appreciation of our investments since the first quarter of 2025.

***Performance Participation Allocation***

Performance participation allocation was $0.6 million during the three months ended March 31, 2026. There was no such performance participation allocation during the three months ended March 31, 2025 as a result of the performance metrics that would result in such participation allocation not being met as of March 31, 2025.

***General and Administrative Expenses***

General and administrative expenses increased by $0.3 million from $2.5 million during the three months ended March 31, 2025 to $2.8 million for the three months ended March 31, 2026, which was primarily due to higher professional fees.

***Depreciation and Amortization***

Depreciation and amortization increased by $0.8 million from $5.2 million during the three months ended March 31, 2025 to $6.0 million for the three months ended March 31, 2026 primarily due to the depreciation and amortization expenses associated with the Marysville Property and the parking garages that were acquired in 2025. This was partially offset by lower amortization expense from decreasing balance of intangible assets associated with in-place leases and leasing commissions as they were being fully amortized or written off over the years.

***Interest Expenses, net***

Interest expenses, net increased by $1.4 million from $3.0 million during the three months ended March 31, 2025 to $4.4 million for the three months ended March 31, 2026 primarily due to interest expense associated with the acquisition of the Marysville Property that was partly financed through debt. Interest expense is net of interest income earned on cash on hand that was invested in a money market fund throughout the period.

***Impairment of Investments in Real Estate***

Impairment of investments in real estate decreased $0.5 million from $0.8 million during the three months ended March 31, 2025 to $0.3 million for the three months ended March 31, 2026. These impairments relate to the write down of impaired vacant assets, held for sale assets, and assets sold. It is part of CapGrow's normal business operations to sell a property when a tenant vacates and no immediate replacement tenant is expected, at which time impairment is evaluated.

***Income from Investments in Real Estate Debt, net***

Income from investments in real estate debt, net increased by $3.7 million from $0.8 million during the three months ended March 31, 2025 to $4.5 million during the three months ended March 31, 2026. The increase was due to our investments in (i) the Equestrian Loan Facility in January 2026, (ii) $35.3 million of CMBS since the first quarter of 2025, (iii) the preferred equity in a private real estate company in March 2025 and (iv) a junior mortgage loan collateralized by a casino and hotel property in May 2025.&nbsp;&nbsp;&nbsp;&nbsp;

***Unrealized Gain (Loss) on Derivative Instruments***

Unrealized gain on derivative instruments of $20 thousand for the three months ended March 31, 2026 as opposed to unrealized loss on derivative instruments of $0.4 million for the three months ended March 31, 2025, pertained to University Courtyard's fair value adjustments relating to its interest rate cap.

***Gain on Sale of Real Estate***

Gain on sale of real estate increased by $11 thousand from $18 thousand during the three months ended March 31, 2025 to $29 thousand for the three months ended March 31, 2026 were related to gain recognized by CapGrow on the sale of its properties.

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***Other Expenses***

Other expenses of $0.3 million for the three months ended March 31, 2026 was related to estimated tax expense on income generated from the Equestrian Loan Facility.

**Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution**

Funds from operations ("FFO") is an operating measure defined by the National Association of Real Estate Investment Trusts ("NAREIT") that is broadly used in the REIT industry. FFO, as defined by NAREIT and presented below, is calculated as net income or loss (computed in accordance with GAAP), excluding (i) depreciation and amortization, (ii) impairment of investments in real estate, (iii) net gains or losses from sales of real estate, and (iv) similar adjustments for non-controlling interests and unconsolidated entities. We believe FFO is a meaningful non-GAAP supplemental measure of our operating results. Our condensed consolidated financial statements are presented using historical cost accounting which, among other things, requires depreciation of real estate investments to be calculated on a straight-line basis. As a result, our operating results imply that the value of our real estate investments have decreased over time. However, we believe that the value of our real estate investments will fluctuate over time based on market conditions and, as such, depreciation under historical cost accounting may be less informative as a measure of our performance.

We also believe that adjusted FFO ("AFFO") is an additional meaningful non-GAAP supplemental measure of our operating results. AFFO further adjusts FFO to reflect the performance of our portfolio by adjusting for items we believe are not directly attributable to our operations. Our adjustments to FFO to arrive at AFFO include removing the impact of (i) straight-line rental income and expense, (ii) deferred income amortization, (iii) amortization of above- and below-market lease intangibles, (iv) amortization of mortgage premium/discount, (v) unrealized gains or losses from changes in the fair value of real estate debt and other financial instruments, (vi) gains and losses resulting from foreign currency translations, (vii) non-cash performance participation allocation paid in shares or Operating Partnership units, even if repurchased by us, (viii) amortization of restricted stock awards, (ix) non-cash interest expense on affiliate line of credit paid in shares or Operating Partnership units, even if subsequently repurchased by us, (x) organizational costs, (xi) amortization of deferred financing costs, (xii) transaction fees, and (xiii) similar adjustments for non-controlling interests and unconsolidated entities.

We also believe that funds available for distribution ("FAD") is an additional meaningful non-GAAP supplemental measure of our operating results. FAD provides useful information for considering our operating results and certain other items relative to the amount of our distributions. Further, FAD is a metric, among others, that is considered by our board of directors and executive officers when determining the amount of our dividend to stockholders, and we believe is therefore meaningful to stockholders. FAD is calculated as AFFO adjusted for (i) management fees paid in shares or Operating Partnership units, even if subsequently repurchased by us, (ii) realized losses (gains) on financial instruments, (iii) recurring tenant improvements, leasing commissions, and other capital expenditures, and (iv) similar adjustments for non-controlling interests and unconsolidated entities. FAD is not indicative of cash available to fund our cash needs and does not represent cash flows from operating activities in accordance with GAAP, as FAD is adjusted for recurring tenant improvements, leasing commission, and other capital expenditures, which are not considered when determining cash flows from operations. Furthermore, FAD excludes (i) adjustments for working capital items and (ii) amortization of discounts and premiums on investments in real estate debt. Cash flows from operating activities in accordance with GAAP would generally be adjusted for such items.

FFO, AFFO, and FAD should not be considered more relevant or accurate than GAAP net income (loss) in evaluating our operating performance. In addition, FFO, AFFO, and FAD should not be considered as alternatives to net income (loss) as indications of our performance or as alternatives to cash flows from operating activities as indications of our liquidity, but rather should be reviewed in conjunction with these and other GAAP measurements. Further, FFO, AFFO, and FAD are not intended to be used as liquidity measures indicative of cash flow available to fund our cash needs, including our ability to make distributions to our stockholders. In addition, our methodology for calculating AFFO and FAD may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported AFFO and FAD may not be comparable to the AFFO and FAD reported by other companies.

The following table presents a reconciliation of net income (loss) attributable to SDREIT shareholders to FFO, AFFO and FAD attributable to SDREIT stockholders for the three months ended March 31, 2026 and 2025 (in thousands):

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Net income (loss) attributable to SDREIT stockholders | $2948 | $(259) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to arrive at FFO: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 6031 | 5161 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of real estate | (29) | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment on investments in real estate | 282 | 753 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to non-controlling interests in the consolidated subsidiary for above adjustments | (383) | (441) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unconsolidated entities depreciation and noncontrolling interests adjustments | 3 | 3 |
| FFO attributable to SDREIT stockholders | $8852 | $5199 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to arrive at AFFO: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line rental income and expense | (528) | (111) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of below-market lease intangibles | (1069) | (1856) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of discount on mortgage and other loans payable | 68 | 68 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing fees - property level | 134 | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of restricted stock awards | 51 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Organizational costs and transaction costs | 163 | 269 |
| &nbsp;&nbsp;&nbsp;&nbsp;Origination fees | (651) | (350) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash performance participation allocation | 587 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gains) losses from changes in the fair value of investments in real estate debt and other financial instruments | 181 | 366 |
| &nbsp;&nbsp;&nbsp;&nbsp;Paid-in-kind interest | (1164) | (128) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to unconsolidated entities for above adjustments | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to non-controlling interests for above adjustments | 65 | 132 |
| AFFO attributable to SDREIT stockholders | $6688 | $3731 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring tenant improvements and other capital expenditures | (6) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fee | 595 | 433 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockholder distribution fees paid |  | (122) |
| FAD Attributable to SDREIT stockholders | $7277 | $4039 |

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**Net Asset Value** 

We calculate NAV per share in accordance with the valuation guidelines that have been approved by our board of directors. Our total NAV presented in the following tables includes the NAV of our outstanding classes of common stock as of March 31, 2026, as well as the partnership interests of the Operating Partnership held by parties other than the Company, which, in aggregate, was reduced by the noncontrolling interests in our consolidated subsidiaries.

We calculate NAV per share for each share class monthly. Our NAV for each class of shares is based on the net asset values of our investments (including investments in real estate debt and other securities and real estate businesses, such as CapGrow), the addition of any other assets (such as cash on hand), and the deduction of any liabilities, including the allocation/accrual of any performance participation to the Special Limited Partner, and will also include the deduction of management fees and certain organization and offering expenses (which are class-specific expenses) and any distribution fees applicable to such class of shares. Please refer to Item 9. "Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters—Net Asset Value Calculation and Valuation Guidelines" in our Form 10 for further details on how our NAV is determined.

The following table provides a breakdown of the major components of our NAV as of March 31, 2026 (amounts in thousands, except per share/unit data):

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| | |
|:---|:---|
| **Components of NAV** | **March 31, 2026** |
| Investments in real estate (including goodwill) | $805688 |
| Investment in an unconsolidated joint venture | 2734 |
| Investments in real estate debt | 169850 |
| Cash and cash equivalents | 33515 |
| Restricted cash | 16235 |
| Receivables | 3698 |
| Other assets | 8127 |
| Mortgages, credit facility and financing obligations, net | (373129) |
| Accounts payable and other liabilities | (23483) |
| Management fee payable | (391) |
| Accrued participation allocation | (587) |
| Due to related parties | (35) |
| Noncontrolling interests in the consolidated subsidiaries | (33668) |
| **Net Asset Value** | $608554 |
|  **Number of outstanding shares/units** | 52959802 |

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**NAV and NAV Per Share Calculation**

The following table provides a breakdown of our total NAV and NAV per share/unit by class as of March 31, 2026 (amounts in thousands, except per share/unit data):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **NAV per share** | **Class F Shares** | **Class FF Shares** | **Class E Shares** | **Class AA Shares** | **Class A Shares** | **Class I-S Shares** | **Operating Partnership Units** | **Total** |
| NAV | $265954 | $69971 | $169745 | $87331 | $8643 | $676 | $6234 | $608554 |
| Number of outstanding shares/ units | 23204852 | 6182549 | 14421419 | 7782686 | 777596 | 61066 | 529634 | 52959802 |
| NAV Per Share/Unit | $11.4611 | $11.3175 | $11.7704 | $11.2212 | $11.1149 | $11.0707 | $11.7704 | $11.4909 |

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The following table details the discount rate and the weighted-average capitalization rate by property type, which are the key assumptions from the valuations as of March 31, 2026:

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| | | |
|:---|:---|:---|
| **Property Type** | **Discount Rate** | **Exit Capitalization Rate** |
| Residential (Business) | 8.2% | 6.8% |
| Student Housing | 8.8% | 6.3% |
| Commercial Properties | 12.5% | 10.0% |
| Industrial Properties | 7.8% | 6.0% |

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These weighted averages of key assumptions are calculated by the Adviser using information from the appraisals that are provided by the independent valuation advisor and reviewed by our Adviser. A change in these assumptions would impact the calculation of the value of our property investments. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our investment values at March 31, 2026:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Input** | **Hypothetical Change** | **Residential (Business)** | **Student Housing** | **Commercial Properties** | **Industrial Properties** |
| Discount Rate | 0.25% decrease | 1.3% | 1.1% | 1.5% | 1.9% |
| Discount Rate | 0.25% increase | (1.3)% | (1.1)% | (1.4)% | (1.8)% |
| Exit Capitalization Rate (weighted average) | 0.25% decrease | 3.7% | 4.3% | 0.9% | 2.5% |
| Exit Capitalization Rate (weighted average) | 0.25% increase | (3.4)% | (4.0)% | (0.9)% | (2.3)% |

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The following table details the weighted average contractual rates for the Company's borrowings compared to the weighted average market rates, which are key assumptions from the debt valuations as of March 31, 2026:

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| | | |
|:---|:---|:---|
| **Debt Type** | **Contracted Interest Rates** | **Market Interest Rate** |
| Fixed rate debt (weighted average) | 5.01% | 5.93% |
| Variable rate debt (weighted average) <sup>(1)</sup> | SOFR +2.67% | SOFR +2.37% |

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___________________________________________________

(1) Includes University Courtyard's debt obligation without consideration of the effect of the interest rate cap.

These weighted averages of key assumptions are calculated by the Adviser using information from debt valuations that are provided by the independent valuation advisor who values our debt and are reviewed by the Adviser. A change in these assumptions would impact the calculation of the value of the debt owed by CapGrow, University Courtyard and the Marysville Property. Examples of changes in market mortgage interest rates, assuming no other changes to our March 31, 2026 debt balances, would have the following effects on the value of our debt balances.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Input** | **Hypothetical Change** | **Residential (Business)** | **Student Housing** | **Industrial Properties** |
| Mortgage Interest Rates (weighted average) | 0.25% decrease | 0.5% | 0.3% | 0.4% |
| Mortgage Interest Rates (weighted average) | 0.25% increase | (0.5)% | (0.3)% | (0.4)% |

---

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The following table reconciles shareholders' equity per our condensed consolidated balance sheets to our NAV as of March 31, 2026 (amounts in thousands):

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| | |
|:---|:---|
|  | **March 31, 2026** |
| Shareholders' equity | $462988 |
| Redeemable non-controlling interest in SDREIT Operating Partnership | 6234 |
| Total SDREIT stockholders' equity and SDREIT Operating Partnership partners' capital under GAAP | $469222 |
| Adjustments: |  |
| Accrued organizational and offering costs | 2061 |
| Accumulated depreciation and amortization under GAAP | 48076 |
| Straight line rent receivable | (2774) |
| Unrealized net real estate appreciation | 91956 |
| Unvested dividends reinvestment | 13 |
| NAV | $608554 |

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The following details the adjustments to reconcile GAAP shareholders' equity to our NAV:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Adviser agreed to advance certain organization and offering costs on our behalf through March 31, 2024. Such costs will be reimbursed to the Adviser on a pro-rata basis over a 60-month period beginning March 31, 2024. Under GAAP, organization costs are expensed as incurred. For purposes of calculating NAV, such costs will be recognized as paid over the 60-month reimbursement period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We depreciate our investments in real estate and amortize certain other assets and liabilities (i.e., above- and below-market leases, in-place lease costs and deferred commissions) in accordance with GAAP. Such depreciation and amortization is not recorded for purposes of calculating our NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our investments in real estate are presented at their depreciated cost basis in our GAAP condensed consolidated financial statements. Additionally, our mortgage loans and revolving credit facility (collectively, our "Debt") are presented at their amortized cost basis in our GAAP condensed consolidated financial statements. As such, any increases or decreases in the fair market value of our investments in real estate or our Debt are not included in our GAAP results. For purposes of calculating our NAV, our investments in real estate and our Debt are recorded at fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We recognize rental revenue on a straight-line basis under GAAP. Such straight-line rent adjustments are excluded for purposes of calculating NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We accrue dividends on unvested restricted stock in accordance with GAAP. For purposes of calculating our NAV, we exclude these accrued unvested dividends until the vesting period associated to the underlying restricted stock expires.

**Distributions**

Distributions are authorized at the discretion of our board of directors, in accordance with our earnings, cash flows and general financial condition. Our board of directors' discretion is directed, in substantial part, by its obligation to cause us to comply with the REIT requirements. To qualify as a REIT, we are required to pay distributions sufficient to satisfy the requirements for qualification as a REIT for tax purposes. We intend to distribute sufficient income so that we satisfy the requirements for qualification as a REIT. In order to qualify as a REIT, we are required to distribute 90% of our annual REIT taxable income, determined without regard to the dividends-paid deduction and excluding net capital gains, to our stockholders. We intend to declare monthly distributions as authorized by our board of directors (or a committee of the board of directors) and to pay such distributions on a monthly basis. Our distribution policy is set by our board of directors and is subject to change based on available cash flows. Distributions are made on all classes of our common stock at the same time. We normally expect that the accrual of ongoing fees on a class-specific basis will result in different amounts of distributions being paid with respect to certain classes of shares.

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Since March 31, 2023, we have declared monthly distributions for each class of our common shares, which are generally paid 12 days after month-end. We have paid distributions consecutively each month since such time. Each class of our common shares received the same aggregate gross distribution per share, which was $0.0671 per share for the month ended March 31, 2026. The net distribution varies for each class based on the applicable distribution fee, which is deducted from the monthly distribution per share and paid directly to the applicable distributor. On October 1, 2023, Class FF shares became subject to an annual distribution fee of 0.50% per annum. Class AA shares are subject to an annual distribution fee of 0.50% per annum since issuance.

The following table details the total net distributions for each of our share class from inception through record date March 31, 2026:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Declaration Date** | **Class F Shares** | **Class FF Shares** | **Class E Shares** | **Class AA Shares** | **Class A Shares** | **Class I-S Shares** |
| Inception through December 31, 2024 | $1.3705 | $1.1859 | $0.8195 | $0.6444 | $0.3169 | $— |
| January 31, 2025 | 0.0620 | 0.0575 | 0.0620 | 0.0575 | 0.0620 |  |
| February 28, 2025 | 0.0620 | 0.0580 | 0.0620 | 0.0580 | 0.0620 | 0.0620 |
| March 31, 2025 | 0.0617 | 0.0574 | 0.0617 | 0.0572 | 0.0617 | 0.0617 |
| April 30, 2025 | 0.0615 | 0.0572 | 0.0615 | 0.0572 | 0.0615 | 0.0615 |
| May 31, 2025 | 0.0618 | 0.0574 | 0.0618 | 0.0573 | 0.0618 | 0.0618 |
| June 30, 2025 | 0.0621 | 0.0578 | 0.0621 | 0.0578 | 0.0621 | 0.0621 |
| July 31, 2025 | 0.0620 | 0.0575 | 0.0620 | 0.0575 | 0.0620 | 0.0620 |
| August 31, 2025 | 0.0638 | 0.0592 | 0.0638 | 0.0592 | 0.0638 | 0.0638 |
| September 30, 2025 | 0.0638 | 0.0594 | 0.0638 | 0.0594 | 0.0638 | 0.0638 |
| October 31, 2025 | 0.0643 | 0.0597 | 0.0643 | 0.0597 | 0.0643 | 0.0643 |
| November 30, 2025 | 0.0645 | 0.0600 | 0.0645 | 0.0600 | 0.0645 | 0.0645 |
| December 31, 2025 | 0.0648 | 0.0601 | 0.0648 | 0.0602 | 0.0648 | 0.0648 |
| January 31, 2026 | 0.0668 | 0.0620 | 0.0668 | 0.0620 | 0.0668 | 0.0668 |
| February 29, 2026 | 0.0668 | 0.0625 | 0.0668 | 0.0625 | 0.0668 | 0.0668 |
| March 31, 2026 | 0.0671 | 0.0623 | 0.0671 | 0.0623 | 0.0671 | 0.0671 |
| Total | $2.3255 | $2.0739 | $1.7745 | $1.5322 | $1.2719 | $0.8930 |

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The following table details our net distributions declared for the three months ended March 31, 2026 and 2025, respectively (amounts in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| | **Amount** | **Percentage** | **Amount** | **Percentage** |
| **Distributions** | | | | |
| Payable in cash | $8016 | 80% | $4569 | 79% |
| Reinvested in shares | 1964 | 20% | 1196 | 21% |
| Total distributions | $9980 | 100% | $5765 | 100% |
| **Sources of Distributions** |  |  |  |  |
| Cash flows from operating activities<sup>(1)</sup> | $8289 | 83% | $5584 | 97% |
| Cash flows from other sources<sup>(2)</sup> | 1691 | 17% | 181 | 3% |
| **Total Sources of distribution** | $9980 | 100% | $5765 | 100% |
| Cash flows from operating activities | $8289 |  | $5187 |  |
| Funds from operations<sup>(3)</sup> | $8852 |  | $5199 |  |
| Adjusted funds from operations<sup>(3)</sup> | $6688 |  | $3731 |  |

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___________________________________________________

<sup>(1)</sup> Includes cash flows from operating activities since inception.

<sup>(2)</sup> Includes distributions reinvested in shares of our common stock through our distribution reinvestment plan and cash flows from investing activities, such as proceeds from sale of real estate.

<sup>(3)</sup> See "Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution" above for a description of these metrics, for reconciliations of these amounts to GAAP net income or loss attributable to SDREIT stockholders and for considerations on how to review these metrics.

Subsequent to March 31, 2026, we declared $1.8 million of distributions in cash and $1.7 million of distributions in shares under our distribution reinvestment plan.

There is no assurance we will pay distributions in any particular amount, if at all. We may fund any distributions from sources other than cash flow from operations, including, without limitation, the sale of or repayment of our assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources.

**Liquidity and Capital Resources**

***Liquidity***

We believe we have sufficient liquidity to operate our business, with $33.5 million of immediate liquidity as of March 31, 2026, which is comprised of cash and cash equivalents, including certain amounts held in anticipation of the closing of the Facility to an equestrian show operator. Aside from cash flows from operations, we obtain incremental liquidity through the sale of our common shares. We may incur indebtedness secured by our real estate and real estate debt investments, borrow money through unsecured financings, or incur other forms of indebtedness. We may also generate incremental liquidity through the sale of our real estate and real estate debt investments.

Our primary liquidity needs are to fund our investments, make distributions to our stockholders, repurchase common shares pursuant to our share repurchase plan, pay operating expenses, fund capital expenditures, and repay indebtedness. Our operating expenses include, among other things, the management fee we pay to the Adviser and the performance participation allocation that the Operating Partnership pays to the Special Limited Partner, both of which will impact our liquidity to the extent the Adviser or the Special Limited Partner elect to receive such payments in cash, or subsequently redeem shares of our common stock or units in the Operating Partnership previously issued to them.

Our cash needs for acquisitions and other capital investments are expected to be funded primarily from the sale of common stock and through the incurrence or assumption of debt. Other potential future sources of capital include proceeds from the sale of assets. If necessary, we may use financings or other sources of capital in the event of unforeseen significant capital expenditures.

In May 2026, we committed to contribute approximately $87.0 million to MIH Member JV for an approximately 33% interest in the joint venture. MIH Member JV concurrently entered into a joint venture agreement with Trinity to form MIH JV which closed an acquisition of a hotel and two golf courses. At closing on May 1, 2026, we funded our proportionate share of the purchase price of $55.1 million, after netting a $5.1 million nonrefundable deposit that we made in February 2026. As of May 1, 2026, we have a commitment to fund the remaining $26.8 million. See Note Note 17, "Subsequent Events" to our condensed consolidated financial statements for additional information.

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***Capital Resources***

As of March 31, 2026, our indebtedness included loans secured by our properties, our credit facility and a financing obligation. The following table is a summary of our indebtedness as of March 31, 2026 (amount in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Indebtedness** | **Weighted Average Interest Rate**  | **Weighted Average Maturity Date**<sup>(1)</sup> | **Maximum Facility Size** | **Principal Balance Outstanding** |
| Mortgages and other loans payable<sup>(2)</sup> | 4.97% | March 2031 | n/a | $343111 |
| Revolving credit facility<sup>(3)</sup> | 7.15% | February 2027 | $50000 | 13654 |
| Financing obligation<sup>(4)</sup> |  |  |  | 23197 |
| Discount and deferred financing costs, net |  |  |  | (4483) |
| Total indebtedness |  |  |  | $375479 |

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______________________________________

(1) &nbsp;&nbsp;&nbsp;&nbsp;For loans where the Company, at its sole discretion, has extension options, the maximum maturity date has been assumed.

(2) &nbsp;&nbsp;&nbsp;&nbsp;Mortgages and other loans payable bear varying fixed rates, including the effect of applicable interest rate cap or swap, and maturities ranging from October 2026 through January 2039. There were no extension options for any of our loans.

(3) &nbsp;&nbsp;&nbsp;&nbsp;The revolving credit facility bears interest equal to 1M Term SOFR plus 3.50% per annum and matures in February 2027. The weighted average interest rate for the revolving credit facility for the three months ended March 31, 2026 was 7.15%.

(4) &nbsp;&nbsp;&nbsp;&nbsp;This financing obligation is related to the sale and leaseback transaction of University Courtyard, which is accounted for as a failed sale and leaseback transaction because the lease is classified as a finance lease. Accordingly, the underlying land is still included in the investments in real estate in the condensed consolidated balance sheets and the proceeds from the sale are accounted for as a financing obligation. The rental payment under the lease will be allocated between interest expense and principal repayment of the financing obligation using the effective interest method and amortize over the 99-year lease term. The total principal payments will not exceed the difference between the gross proceeds from the sale of $23.2 million and the initial carrying value of the land of $4.1 million, resulting in maximum principal payments of $19.1 million.

In March 2023, we commenced the offering of our shares through a continuous private placement offering pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act, and Regulation D promulgated thereunder, and other exemptions of similar import in the laws of the states and other jurisdictions where the offering is being made. Our Class A, Class AA, Class D, Class E, Class F, Class I, Class S, and Class I-S shares are generally available for issuance in our private offering. Our Class E shares are only expected to be held by Sculptor, its personnel, and affiliates. Our Class FF shares are now only available pursuant to our distribution reinvestment plan.

As of March 31, 2026, we have received net proceeds of $435.3 million, including proceeds from our distribution reinvestment plan, from issuing an aggregate of 9,210,840 Class F common shares, 6,660,699 Class FF common shares, 7,831,033 Class AA common shares, 1,807,084 Class A common shares, 61,066 Class I-S common shares and 13,860,377 Class E common shares in the private offering. This is in addition to the $150.2 million raised from the sale of 15,024,394 Class F common shares (including reinvestment of distributions) in private transactions that preceded this offering. Additionally, we issued an aggregate $6.2 million, or 561,043 of Class E common shares, inclusive of shares issued to our independent directors under the terms of the independent director compensation plan, to our Advisor as payment of management fees, and to an employee of Sculptor who purchased such shares.

As of March 31, 2026, we have repurchased 1,030,382 Class F common shares, 478,150 Class FF common shares, 48,347 Class AA common shares and 1,029,488 Class A common shares, totaling $28.2 million.

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**Cash Flows**

***Three Months Ended March 31, 2026 and 2025 (amounts in thousands):***

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Difference** |
| | **2026** | **2025** | |
| Cash flows provided by operating activities | $8289 | 5187 | $3102 |
| Cash flows used in investing activities | (102850) | (48641) | (54209) |
| Cash flows provided by financing activities | 65961 | 31711 | 34250 |
| Net change in cash and cash equivalents and restricted cash | $(28600) | $(11743) | $(16857) |

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Cash flows provided by operating activities increased by approximately $3.1 million during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to improved operating results with more investments in our portfolio since the first quarter of 2025.

Cash flows used in investing activities increased by approximately $54.2 million during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to size of investments in real estate properties and real estate debt during the three months ended March 31, 2026 was larger compared to the investments made during the three months ended March 31, 2025.

Cash flows provided by financing activities increased by approximately $34.3 million during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to (i) more subscriptions net of repurchases, and (ii) the new mortgage loan related to the acquisition of the Mt. Elliott Property.

**Critical Accounting Estimates** 

A complete discussion of our critical accounting estimates is included in our Annual Report. There have been no changes in such estimates.

**Recent Accounting Pronouncements**

See Note 2, "Summary of Significant Accounting Policies" to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for a discussion concerning recent accounting pronouncements.

**Off-Balance Sheet Arrangements**

We currently have no off-balance sheet arrangements that are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

**Commitments and Contingencies** 

The following table aggregates our contractual obligations and commitments with payments due subsequent to March 31, 2026 (amounts in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Total** | **Less than 1 year** | **1-3 years** | **3-5 years** | **More than 5 years** |
| Indebtedness <sup>(1)</sup> | $375905 | $7444 | $42448 | $205542 | $120471 |
| Organization and offering costs<sup>(2)</sup> | 2061 | 515 | 1374 | 172 |  |
| Total | $377966 | $7959 | $43822 | $205714 | $120471 |

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______________________________________________

<sup>(1)</sup> Loan maturities are based on the contractual maturity dates.

<sup>(2)</sup> Amount owed to our Adviser as of March 31, 2026.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

For quantitative and qualitative disclosure about market risk, see Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operation - Current Market Conditions and Related Risks and Opportunities" in this Quarterly Report on Form 10-Q for the period ended March 31, 2026 for the Company. Our exposures to market risk have not changed materially since December 31, 2025.

**ITEM 4. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

An evaluation of the effectiveness of the design and operation of our "disclosure controls and procedures" (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), as of the end of the period covered by this quarterly report on Form 10-Q was made under the supervision and with the participation of our management, including our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"). Based upon this evaluation, our CEO and CFO have concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

**Changes in Internal Controls over Financial Reporting**

There have been no changes in our "internal control over financial reporting" (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of March 31, 2026, we were not involved in any material legal proceedings.

**ITEM 1A. RISK FACTORS**

There were no material changes during the period covered by this Quarterly Report to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**Unregistered Sales of Equity Securities**

In January, 2026, the Company issued 335,843 Class E units to the Special Limited Partner as payment for the 2025 performance allocation of $3.9 million. In addition, during the three months ended March 31, 2026, we issued 7,042 Class E units of the Operating Partnership to the Special Limited Partner pursuant to the Operating Partnership's distribution reinvestment plan reflecting a total purchase price of $82 thousand. Such Class E units in the Operating Partnership may be redeemed by the holder for cash or Class E shares of common stock, at the holder's option. The offer and sale of these units were exempt from the registration provisions of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2), Regulation D and/or Regulation S thereunder. All other sales of unregistered securities during the three months ended March 31, 2026 were previously reported on a Current Report on Form 8-K.

**Share Repurchases**

Under our share repurchase plan, to the extent we choose to repurchase shares in any particular month, we will only repurchase shares as of the opening of the last calendar day of that month (each such date, a "Repurchase Date"). Repurchases will be made at the transaction price in effect on the Repurchase Date, except that shares that have not been outstanding for at least one year will be repurchased at 95% of the transaction price (an "Early Repurchase Deduction"). The Early Repurchase Deduction may only be waived in the case of repurchase requests arising from the death or qualified disability of the holder and in other limited circumstances. The Early Repurchase Deduction will not apply to shares acquired through our distribution reinvestment plan.

The total amount of aggregate repurchases of shares of our common stock will be limited during each calendar month to 2% of the aggregate NAV of all classes as of the last calendar day of the previous quarter and in each calendar quarter will be limited to 5% of the aggregate NAV of all classes of shares as of the last calendar day of the previous calendar quarter; provided, however, that every month and quarter each class of our common stock will be allocated capacity within such aggregate limit to allow stockholders in such class to either (a) redeem shares equal to at least 2% of the aggregate NAV of such share class as of the last calendar day of the previous quarter, or, if more limiting, (b) redeem shares over the course of a given quarter equal to at least 5% of the aggregate NAV of such share class as of the last calendar day of the previous quarter (collectively referred to herein as the "2% and 5% limits"). In the event that we repurchase some but not all of the shares submitted for repurchase during any month, shares repurchased at the end of the month will be repurchased on a pro rata basis. Repurchases and pro rata treatment, if necessary, will first be applied within the class-specific allocated capacity and then applied on an aggregate basis to the extent there is remaining capacity. For purposes of calculating the 2% and 5% limits, the repurchase price will be deemed to be the price before any Early Repurchase Deduction.

Should repurchase requests, in our judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on us, or should we otherwise determine that investing our liquid assets in real properties or other investments rather than repurchasing our shares is in our best interests, we may choose to repurchase fewer shares in any particular month than have been requested to be repurchased, or none at all. Further, our board of directors may make exceptions to, modify, suspend or terminate our share repurchase plan if in its reasonable judgment it deems such action to be in our best interest and the best interest of our stockholders.

If the transaction price for the applicable month is not made available by the tenth business day prior to the last business day of the month (or is changed after such date), then no repurchase requests will be accepted for such month and stockholders

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who wish to have their shares repurchased the following month must resubmit their repurchase requests. Material modifications, including any amendment to the 2% monthly or 5% quarterly limitations on repurchases, to and suspensions of the share repurchase plan will be promptly disclosed to stockholders via their financial representatives. In addition, we may determine to suspend the share repurchase plan due to regulatory changes, changes in law or if we become aware of undisclosed material information that we believe should be publicly disclosed before shares are repurchased. Our board of directors must affirmatively authorize the recommencement of the plan if it is suspended before stockholder requests will be considered again.

During the three months ended March 31, 2026, we repurchased shares of our common stock under the share repurchase plan in the following amounts, which represented all of the share repurchase requests received for the same period.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Month** | **Total Number of Shares Repurchased** <sup>(1)(2)</sup> | **Average Price per Share** | **Total Number of Share Repurchased as Part of Publicly Announced Plans or Programs** | **Maximum Number of Shares Pending Repurchase Pursuant to Publicly Announced Plans or Programs** <sup>(1)</sup> |
| January 2026 | 919040 | 11.16 | 919040 |  |
| February 2026 | 273520 | 11.14 | 273520 |  |
| March 2026 | 102786 | 11.17 | 102786 |  |
| Total | 1295346 |  | 1295346 |  |

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_______________________________________________

<sup>(1)</sup> Repurchases are limited under the share repurchase plan as described above.

<sup>(2)</sup> Share repurchases are funded through a combination of sales of shares of our common stock and proceeds from asset dispositions.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5. OTHER INFORMATION**

(a) None

(b) Not applicable.

(c) During the quarterly period ended March 31, 2026, none of our directors or officers (as defined in Rule 16a-1(f) promulgated under the Exchange Act) adopted or terminated any "Rule 10b5-1 trading arrangement" or any "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K.

------

**ITEM 6. EXHIBITS**

---

| | |
|:---|:---|
| **Ex. No.** | **Description** |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1914496/000114036123033130/ny20009481x1_ex3-1.htm)</u> | Second Articles of Amendment and Restatement of Sculptor Diversified Real Estate Income Trust, Inc. (the "Registrant"), effective as of March 3, 2023 (filed as Exhibit 3.1 to the Company's Registration Statement on Form 10-12G (File No. 000-56566) filed on July 5, 2023 and incorporated herein by reference) |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/1914496/000191449624000128/sdreitye2024ex31-articleso.htm)</u> | Articles of Amendment, effective as of November 18, 2024 (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed on November 20, 2024 and incorporated herein by reference) |
| <u>[3.3](https://www.sec.gov/Archives/edgar/data/1914496/000191449624000128/sdreitye2024ex32-articless.htm)</u> | Articles Supplementary, effective as of November 18, 2024 (filed as Exhibit 3.2 to the Company's Current Report on Form 8-K filed on November 20, 2024 and incorporated herein by reference) |
| <u>[3.4](https://www.sec.gov/Archives/edgar/data/1914496/000191449624000137/sdreitye2024ex31-articleso.htm)</u> | Articles of Amendment, effective as of December 6, 2024 (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed on December 10, 2024 and incorporated herein by reference) |
| <u>[3.5](https://www.sec.gov/Archives/edgar/data/1914496/000114036123033130/ny20009481x1_ex3-2.htm)</u> | Second Amended and Restated Bylaws of the Registrant, dated of as March 7, 2023 (filed as Exhibit 3.2 to the Company's Registration Statement on Form 10-12G (File No. 000-56566) filed on July 5, 2023 and incorporated herein by reference) |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/1914496/000191449624000118/sdreit-ardistributionreinv.htm)</u> | Amended and Restated Distribution Reinvestment Plan (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed on November 5, 2024 and incorporated herein by reference) |
| <u>[4.2](https://www.sec.gov/Archives/edgar/data/1914496/000114036123033130/ny20009481x1_ex4-2.htm)</u> | Share Repurchase Plan (filed as Exhibit 4.2 to the Company's Registration Statement on Form 10-12G filed on July 5, 2023 and incorporated herein by reference) |
| <u>[10.1\*](marcoisland-purchaseandsal.htm)</u>,\*\*\* | Purchase and Sale Agreement, dated February 27, 2026, by and among MIH PropCo LLC, MIH Rookery LLC, MIH Hammock Bay LLC, Marco Hotel LLC and HB Naples Golf Owner LLC |
| <u>[10.2](https://www.sec.gov/Archives/edgar/data/1914496/000191449626000038/amendment-imaxsdreit113202.htm)</u> | Amendment No. 1 to the Sixth Amended and Restated Advisory Agreement among the Registrant, Sculptor Diversified REIT Operating Partnership LP, and Sculptor Advisors LLC dated as of January 13, 2026 (filed as Exhibit 10.2 to the Company's Annual Report on Form 10-K filed on March 31, 2026 and incorporated herein by reference) |
| <u>[31.1](sdreit1q2026ex311certifica.htm)</u>\* | Certification of Principal Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| <u>[31.2](sdreit1q2026ex312certifica.htm)</u>\* | Certification of Principal Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| <u>[32.1](sdreit1q2026ex321certifica.htm)</u>\*\* | Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| <u>[32.2](sdreit1q2026ex322certifica.htm)</u>\*\* | Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 101 | The following financial information from the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2026 formatted in iXBRL (inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations; (iii) Condensed Consolidated Statements of Changes in Equity; (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
| \* Filed herewith. | \* Filed herewith. |
| \*\* This exhibit shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act or the Exchange Act. | \*\* This exhibit shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act or the Exchange Act. |
| \*\*\* Portions of this document have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K. | \*\*\* Portions of this document have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K. |

---

------

**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 thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | **Sculptor Diversified Real Estate Income Trust, Inc.** | **Sculptor Diversified Real Estate Income Trust, Inc.** |
| Date: | May 14, 2026 | By: | /s/ Steven Orbuch |
|  |  |  | **Steven Orbuch** |
|  |  |  | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |
| Date: | May 14, 2026 | By: | /s/ Ellen Conti |
|  |  |  | **Ellen Conti** |
|  |  |  | Chief Financial Officer and Treasurer |
|  |  |  | (Principal Financial Officer) |
| Date: | May 14, 2026 | By: | /s/ Scott Ciccone |
|  |  |  | **Scott Ciccone** |
|  |  |  | Chief Accounting Officer |
|  |  |  | (Principal Accounting Officer) |

---

## Exhibit 10.1

**Exhibit 10.1**

**PURSUANT TO ITEM 601(b)(10) OF REGULATION S-K, CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BY MEANS OF MARKING SUCH PORTIONS WITH ASTERISKS [\*\*\*] AS THE IDENTIFIED CONFIDENTIAL PORTIONS ARE BOTH NOT MATERIAL AND ARE THE TYPE OF INFORMATION THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**<u>PURCHASE AND SALE AGREEMENT</u>**

by and among

MARCO HOTEL LLC, a Delaware limited liability company, and <br>HB NAPLES GOLF OWNER LLC, a Delaware limited liability company,

collectively as

**Seller**

and

MIH PROPCO LLC, MIH ROOKERY LLC, and MIH HAMMOCK BAY LLC, <br>each a Delaware limited liability company,

collectively as

**Purchaser**

**Dated**: February 27, 2026

------

**TABLE OF CONTENTS**

**Page**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>&nbsp;&nbsp;&nbsp;&nbsp;[1](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 2 THE PROPERTY AND LIABILITIES&nbsp;&nbsp;&nbsp;&nbsp;[14](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Description of the Property</u>&nbsp;&nbsp;&nbsp;&nbsp;[14](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Excluded Property</u>&nbsp;&nbsp;&nbsp;&nbsp;[16](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Assumed Liabilities</u>&nbsp;&nbsp;&nbsp;&nbsp;[17](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 3 PURCHASE PRICE&nbsp;&nbsp;&nbsp;&nbsp;[17](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchase Price</u>&nbsp;&nbsp;&nbsp;&nbsp;[17](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Deposit</u>&nbsp;&nbsp;&nbsp;&nbsp;[17](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Independent Consideration</u>&nbsp;&nbsp;&nbsp;&nbsp;[17](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment of Purchase Price</u>&nbsp;&nbsp;&nbsp;&nbsp;[18](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Allocation of Purchase Price</u>&nbsp;&nbsp;&nbsp;&nbsp;[18](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 4 PURCHASER'S INSPECTIONS&nbsp;&nbsp;&nbsp;&nbsp;[18](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Inspections</u>&nbsp;&nbsp;&nbsp;&nbsp;[18](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Incorporation By Reference</u>&nbsp;&nbsp;&nbsp;&nbsp;[19](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 5 TITLE TO THE PROPERTY&nbsp;&nbsp;&nbsp;&nbsp;[19](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Title</u>&nbsp;&nbsp;&nbsp;&nbsp;[19](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Title Commitments and Survey</u>&nbsp;&nbsp;&nbsp;&nbsp;[19](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Resolution of Title Objections</u>&nbsp;&nbsp;&nbsp;&nbsp;[19](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Seller's Obligations Regarding Title Objections</u>&nbsp;&nbsp;&nbsp;&nbsp;[20](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Postponement of Closing</u>&nbsp;&nbsp;&nbsp;&nbsp;[21](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 6 CONDITION OF THE PROPERTY&nbsp;&nbsp;&nbsp;&nbsp;[21](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>PROPERTY SOLD "AS-IS"</u>&nbsp;&nbsp;&nbsp;&nbsp;[21](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclaimer of Seller Representations and Warranties</u>&nbsp;&nbsp;&nbsp;&nbsp;[24](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>&nbsp;&nbsp;&nbsp;&nbsp;[25](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 7 REPRESENTATIONS AND WARRANTIES&nbsp;&nbsp;&nbsp;&nbsp;[25](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Seller's Representations and Warranties</u>&nbsp;&nbsp;&nbsp;&nbsp;[25](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchaser's Representations and Warranties</u>&nbsp;&nbsp;&nbsp;&nbsp;[31](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 8 COVENANTS&nbsp;&nbsp;&nbsp;&nbsp;[33](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality</u>&nbsp;&nbsp;&nbsp;&nbsp;[33](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct of the Business</u>&nbsp;&nbsp;&nbsp;&nbsp;[34](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Employees</u>&nbsp;&nbsp;&nbsp;&nbsp;[36](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Capital Expenditures; Zoning; Environmental Resource Permit</u>&nbsp;&nbsp;&nbsp;&nbsp;[39](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Contests</u>&nbsp;&nbsp;&nbsp;&nbsp;[39](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices and Filings</u>&nbsp;&nbsp;&nbsp;&nbsp;[40](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Access to Information</u>&nbsp;&nbsp;&nbsp;&nbsp;[40](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;i&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Privacy Laws</u>&nbsp;&nbsp;&nbsp;&nbsp;[40](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Manager Consent</u>&nbsp;&nbsp;&nbsp;&nbsp;[41](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Manager Estoppel; Association Estoppel</u>&nbsp;&nbsp;&nbsp;&nbsp;[41](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Space Leases</u>&nbsp;&nbsp;&nbsp;&nbsp;[42](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Insurance</u>&nbsp;&nbsp;&nbsp;&nbsp;[42](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Lender Recognition Agreement</u>&nbsp;&nbsp;&nbsp;&nbsp;[42](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Loan Assumption</u>&nbsp;&nbsp;&nbsp;&nbsp;[42](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Exclusivity</u>&nbsp;&nbsp;&nbsp;&nbsp;[43](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 9 BROKER AND FURTHER ASSURANCES&nbsp;&nbsp;&nbsp;&nbsp;[43](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Finders and Investment Broker</u>&nbsp;&nbsp;&nbsp;&nbsp;[43](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Assurances</u>&nbsp;&nbsp;&nbsp;&nbsp;[43](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 10 CLOSING CONDITIONS&nbsp;&nbsp;&nbsp;&nbsp;[44](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Mutual Closing Conditions</u>&nbsp;&nbsp;&nbsp;&nbsp;[44](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchaser Closing Conditions</u>&nbsp;&nbsp;&nbsp;&nbsp;[45](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Seller Closing Conditions</u>&nbsp;&nbsp;&nbsp;&nbsp;[47](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Frustration of Closing Conditions</u>&nbsp;&nbsp;&nbsp;&nbsp;[48](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Hurricanes; NFIP</u>&nbsp;&nbsp;&nbsp;&nbsp;[48](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 11 CLOSING&nbsp;&nbsp;&nbsp;&nbsp;[48](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Date</u>&nbsp;&nbsp;&nbsp;&nbsp;[48](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Escrow</u>&nbsp;&nbsp;&nbsp;&nbsp;[48](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Deliveries</u>&nbsp;&nbsp;&nbsp;&nbsp;[49](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Possession</u>&nbsp;&nbsp;&nbsp;&nbsp;[51](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 12 PRORATIONS AND EXPENSES&nbsp;&nbsp;&nbsp;&nbsp;[51](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Closing Statement</u>&nbsp;&nbsp;&nbsp;&nbsp;[51](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Prorations</u>&nbsp;&nbsp;&nbsp;&nbsp;[51](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Transaction Costs</u>&nbsp;&nbsp;&nbsp;&nbsp;[53](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 13 INTENTIONALLY OMITTED.&nbsp;&nbsp;&nbsp;&nbsp;[55](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 14 DEFAULT AND REMEDIES&nbsp;&nbsp;&nbsp;&nbsp;[55](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Seller Default</u>&nbsp;&nbsp;&nbsp;&nbsp;[55](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Purchaser's Default</u>&nbsp;&nbsp;&nbsp;&nbsp;[56](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Updates of Schedules</u>&nbsp;&nbsp;&nbsp;&nbsp;[57](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4&nbsp;&nbsp;&nbsp;&nbsp;<u>No Recourse to Seller Indemnitees</u>&nbsp;&nbsp;&nbsp;&nbsp;[57](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>&nbsp;&nbsp;&nbsp;&nbsp;[57](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 15 RISK OF LOSS&nbsp;&nbsp;&nbsp;&nbsp;[57](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Casualty</u>&nbsp;&nbsp;&nbsp;&nbsp;[57](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Condemnation</u>&nbsp;&nbsp;&nbsp;&nbsp;[58](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 16 SURVIVAL, INDEMNIFICATION AND RELEASE&nbsp;&nbsp;&nbsp;&nbsp;[59](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Survival</u>&nbsp;&nbsp;&nbsp;&nbsp;[59](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;ii&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by Purchaser</u>&nbsp;&nbsp;&nbsp;&nbsp;[61](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of Taxes, Insurance or Other Reimbursement</u>.&nbsp;&nbsp;&nbsp;&nbsp;[61](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Certain Damages</u>&nbsp;&nbsp;&nbsp;&nbsp;[61](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification Procedure</u>&nbsp;&nbsp;&nbsp;&nbsp;[61](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Accrual of Indemnification Obligation</u>&nbsp;&nbsp;&nbsp;&nbsp;[62](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Exclusive Remedy for Indemnification Loss</u>&nbsp;&nbsp;&nbsp;&nbsp;[62](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Release</u>&nbsp;&nbsp;&nbsp;&nbsp;[62](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Representation and Warranty Insurance</u>&nbsp;&nbsp;&nbsp;&nbsp;[63](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 17 MISCELLANEOUS PROVISIONS&nbsp;&nbsp;&nbsp;&nbsp;[63](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>&nbsp;&nbsp;&nbsp;&nbsp;[63](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Joint and Several Liabilities and Obligations</u>&nbsp;&nbsp;&nbsp;&nbsp;[66](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Time is of the Essence</u>&nbsp;&nbsp;&nbsp;&nbsp;[66](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignment</u>&nbsp;&nbsp;&nbsp;&nbsp;[66](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>&nbsp;&nbsp;&nbsp;&nbsp;[66](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Third Party Beneficiaries</u>&nbsp;&nbsp;&nbsp;&nbsp;[66](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.7&nbsp;&nbsp;&nbsp;&nbsp;<u>GOVERNING LAW</u>&nbsp;&nbsp;&nbsp;&nbsp;[67](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Rules of Construction</u>&nbsp;&nbsp;&nbsp;&nbsp;[67](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>&nbsp;&nbsp;&nbsp;&nbsp;[67](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.10&nbsp;&nbsp;&nbsp;&nbsp;<u>JURISDICTION AND VENUE</u>&nbsp;&nbsp;&nbsp;&nbsp;[68](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.11&nbsp;&nbsp;&nbsp;&nbsp;<u>WAIVER OF TRIAL BY JURY</u>&nbsp;&nbsp;&nbsp;&nbsp;[68](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Prevailing Party</u>&nbsp;&nbsp;&nbsp;&nbsp;[68](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Exculpation</u>&nbsp;&nbsp;&nbsp;&nbsp;[68](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Incorporation of Recitals, Exhibits and Schedules</u>&nbsp;&nbsp;&nbsp;&nbsp;[68](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>&nbsp;&nbsp;&nbsp;&nbsp;[69](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments, Waivers and Termination of Agreement</u>&nbsp;&nbsp;&nbsp;&nbsp;[69](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Not an Offer</u>&nbsp;&nbsp;&nbsp;&nbsp;[69](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.18&nbsp;&nbsp;&nbsp;&nbsp;<u>Execution of Agreement</u>&nbsp;&nbsp;&nbsp;&nbsp;[69](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.19&nbsp;&nbsp;&nbsp;&nbsp;<u>Computation of Time</u>&nbsp;&nbsp;&nbsp;&nbsp;[69](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.20&nbsp;&nbsp;&nbsp;&nbsp;<u>Radon</u>&nbsp;&nbsp;&nbsp;&nbsp;[69](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.21&nbsp;&nbsp;&nbsp;&nbsp;<u>No Recording</u>&nbsp;&nbsp;&nbsp;&nbsp;[69](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.22&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination Provisions</u>&nbsp;&nbsp;&nbsp;&nbsp;[70](#i39613cf67ad4494db120d50d991b2c87_7)

ARTICLE 18 GENERAL ESCROW PROVISIONS&nbsp;&nbsp;&nbsp;&nbsp;[70](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General Escrow Provisions</u>&nbsp;&nbsp;&nbsp;&nbsp;[70](#i39613cf67ad4494db120d50d991b2c87_7)

&nbsp;&nbsp;&nbsp;&nbsp;iii&nbsp;&nbsp;&nbsp;&nbsp;

------

<u>Exhibits & Schedules</u>

Exhibit A-1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal Description of Hotel

Exhibit A-2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal Description of Golf Courses

Exhibit B-1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Assignment and Assumption Agreement

Exhibit B-2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Assignment and Assumption of Marriott Lease Agreement

Exhibit C &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Bill of Sale

Exhibit D &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Closing Certificate

Exhibit E-1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Owner's Title Affidavit & Gap Indemnity

Exhibit E-2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Affidavit and Indemnity re: Notices of Commencement

Exhibit F-1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Deed (Hotel Parcel)

Exhibit F-2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Deed (Hammock Bay Golf Course)

Exhibit F-3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Deed (The Rookery Golf Course)

Exhibit G&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As-Is Closing Waiver

Exhibit H&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manager Estoppel

Exhibit I&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Landlord Investment Amendment

Schedule 1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FF&E Reserve

Schedule 1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Golf Club Membership Documents

Schedule 1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Golf Club Membership Loan Documents

Schedule 1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marriott Lease Agreement

Schedule 1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain Permitted Exceptions

Schedule 1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Existing Loan Documents

Schedule 2.1.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment Leases and Operating Agreements

Schedule 2.2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluded IT System

Schedule 7.1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pending Litigation

Schedule 7.1.16&nbsp;&nbsp;&nbsp;&nbsp;Ongoing Capital Expenditures

Schedule 7.1.17 &nbsp;&nbsp;&nbsp;&nbsp;Violations

Schedule 7.1.19(A)&nbsp;&nbsp;&nbsp;&nbsp;Golf Club Membership Loan Document Defaults

Schedule 7.1.19(B)&nbsp;&nbsp;&nbsp;&nbsp;Golf Club Initiation Fees

Schedule 7.1.20 &nbsp;&nbsp;&nbsp;&nbsp;Tax Contests

&nbsp;&nbsp;&nbsp;&nbsp;iv&nbsp;&nbsp;&nbsp;&nbsp;

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**<u>PURCHASE AND SALE AGREEMENT</u>**

THIS PURCHASE AND SALE AGREEMENT (this "<u>Agreement</u>") is made and entered into as of this 27th day of February, 2026 (the "<u>Effective Date</u>"), by and among MARCO HOTEL LLC, a Delaware limited liability company ("<u>Hotel Owner</u>"), and HB NAPLES GOLF OWNER LLC, a Delaware limited liability company ("<u>Golf Owner</u>", and together with Hotel Owner, "<u>Seller</u>"), and MIH PROPCO LLC, MIH ROOKERY LLC, and MIH HAMMOCK BAY LLC, each a Delaware limited liability company (individually or collectively as the context requires, "<u>Purchaser</u>"). Seller and Purchaser are sometimes referred to herein individually as a "<u>Party</u>" and, collectively, as the "<u>Parties</u>."

**WITNESSETH:**

WHEREAS, Hotel Owner owns that certain hotel commonly known as the JW Marriott Marco Island Beach Resort (the "<u>Hotel</u>") on that parcel of land described in <u>Exhibit A-1</u> attached hereto, and located at 400 South Collier Boulevard, Marco Island, Florida 34145 and Golf Owner owns those certain golf courses and related facilities known as the Hammock Bay Golf Course and Rookery Golf Course (collectively, the "<u>Golf Courses</u>") on that parcel of land described on <u>Exhibit A-2</u>, and located at 1370 Borghese Lane, Naples, Florida 34114; and

WHEREAS, Seller desires to sell the Property (as defined below), including the Resort (as defined below), to Purchaser, and Purchaser desires to purchase the Property from Seller, on the terms and subject to the covenants and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound hereby, covenant and agree as follows:

**ARTICLE 1<br>DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1<u>Definitions</u>. In addition to the terms defined above in the introduction and recitals to this Agreement, the following terms, when used in this Agreement, shall have the meanings set forth in this <u>Section 1.1</u>.

"<u>Acceptable Association Estoppel</u>" has the meaning set forth in <u>Section 8.10.2</u> hereof.

"<u>Acceptable Manager Estoppel</u>" has the meaning set forth in <u>Section 8.10.1</u> hereof.

"<u>Access Agreement</u>" means that certain Access, Indemnity and Confidentiality Agreement dated as of January 9, 2026 by and between Purchaser and Seller (or their respective Affiliates), as the same may be amended, restated, supplemented, or otherwise modified from time to time.

"<u>Advisor</u>" means Barings LLC.

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"<u>Affiliate</u>" means, with respect to any Person, any other Person that, directly or indirectly (a) owns or controls fifty percent (50%) or more of the outstanding voting and/or equity interests of the Person; or (b) controls, is controlled by or is under common control with, the Person. For the purposes of this definition, the term "Control" and its derivations means having the power, directly or indirectly, to direct the management, policies or general conduct of business of a Person, whether by the ownership of voting securities, contract or otherwise.

"<u>Agreement</u>" has the meaning set forth in the Preamble.

"<u>Allocation</u>" has the meaning set forth in <u>Section 3.5</u> hereof.

"<u>Allonge</u>" has the meaning set forth in <u>Section 11.3.1(e)</u> hereof.

"<u>Anti-Corruption Laws</u>" means any applicable law, regulation, or rule related to combating corruption or bribery, including, but not limited to, the United States Foreign Corrupt Practices Act of 1977 as amended (the "<u>FCPA</u>") and any other applicable law, including, without limitation, the UK Bribery Act of 2010.

"<u>Anti-Money Laundering Laws</u>" means any applicable law, regulation, or rule related to combating money laundering, suspicious transactions, trade embargos, economic sanctions, or terrorist financing, including, but not limited to, the US Bank Secrecy Act of 1986, the USA Patriot Act of 2001 (in each case to the extent applicable to the Parties and to this Agreement), the Specially Designated Nationals List ("<u>SDN List</u>") or any similar list maintained by OFAC and the laws of any other applicable country, including, without limitation, the UK Money Laundering Regulations 2017 (as amended) and/or the various European Union Decisions and Regulations relating to financial sanctions in force from time to time.

"<u>Anti-Terrorism Laws</u>" means Executive Order 13224 issued by the President of the United States of America, the USA PATRIOT Act, and all other Applicable Law addressing or in any way relating to terrorist acts and acts of war.

"<u>Applicable Law</u>" means (a) all statutes or orders, laws, common law, rules, regulations, ordinances, codes or other legal requirements of any Governmental Authority, stock exchange, board of fire underwriters and similar quasi-governmental authority; and (b) any judgment, injunction, order or other similar requirement of any court or other adjudicatory authority, in effect at the time in question and in each case to the extent any Person or property is subject to the same.

"<u>Assigned Operating Agreement</u>" has the meaning set forth in <u>Section 2.1.10</u>.

"<u>Assignment and Assumption Agreement</u>" means that certain Assignment and Assumption Agreement in the form of <u>Exhibit B-1</u>, assigning the Assumed Property Agreements, Licenses and Permits, Intellectual Property, Books and Records, Plans and Specifications, Warranties, the Golf Club Membership Documents, and the Bookings to Purchaser on the terms set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;2&nbsp;&nbsp;&nbsp;&nbsp;

------

"<u>Assignment and Assumption of Marriott Lease Agreement</u>" means that certain Assignment and Assumption Agreement in the form of <u>Exhibit B-2</u>, assigning the Marriott Lease Agreement to Purchaser on the terms set forth therein, to be acknowledged and agreed to by Manager.

"<u>Association</u>" has the meaning set forth in <u>Section 8.10.2</u> hereof.

"<u>Assumed Liabilities</u>" has the meaning set forth in <u>Section 2.3</u> hereof.

"<u>Assumed Property Agreements</u>" means (i) the Assigned Operating Agreements, (ii) the Seller Space Agreements, and (iii) solely to the extent that Seller is the lessee thereunder, the Equipment Leases.

"<u>Bill of Sale</u>" means the Bill of Sale in the form of <u>Exhibit C</u>, transferring the FF&E, Supplies, IT System, F&B, and Retail Merchandise on the terms set forth therein.

"<u>Bookings</u>" has the meaning set forth in <u>Section 2.1.16</u> hereof.

"<u>Books and Records</u>" has the meaning set forth in <u>Section 2.1.13</u> hereof.

"<u>Broker</u>" has the meaning set forth in <u>Section 9.1</u> hereof.

"<u>Broker Covenants</u>" has the meaning set forth in <u>Section 16.1.1(a)</u> hereof.

"<u>Business</u>" means the lodging business and all activities related thereto conducted at the Resort including, without limitation (a) the rental of any guest, conference or banquet rooms or other facilities at the Hotel, (b) the operation of any restaurant, bar or banquet services at the Hotel or the Golf Club or Golf Courses, (together with all other goods and services provided at the Hotel or Golf Club), (c) the rental of any commercial or retail space to tenants at the Hotel (if applicable) or the Golf Courses, (d) the maintenance and repair of the Real Property and tangible Personal Property comprising a part of the Resort, (e) the employment of the Employees at the Hotel and Golf Courses, (f) the payment of Taxes for the Resort and (g) the operation of the Golf Club.

"<u>Business Day</u>" means any day other than a Saturday, Sunday or any federal legal holiday in New York, New York.

"<u>Capital Expenditures</u>" has the meaning set forth in <u>Section 7.1.16</u> hereof.

"<u>Cash Consideration</u>" means that portion of the Purchase Price to be paid by Purchaser to Seller, in the form of good and valid U.S. funds, at Closing.

"<u>Casualty</u>" has the meaning set forth in <u>Section 15.1</u> hereof.

"<u>Civil Engineer</u>" has the meaning set forth in <u>Section 8.4.4</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;3&nbsp;&nbsp;&nbsp;&nbsp;

------

"<u>Closing</u>" means the consummation of the purchase and sale contemplated by this Agreement by the deliveries required under <u>Article 11</u> hereof.

"<u>Closing Certificate</u>" means a closing certificate in the form of <u>Exhibit D</u> attached hereto, together with all exhibits thereto.

"<u>Closing Date</u>" means the date on which the Closing is consummated.

"<u>Closing Statement</u>" has the meaning set forth in <u>Section 12.1</u> hereof.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time, and any regulations, rulings and guidance issued by the Internal Revenue Service.

"<u>Condemnation</u>" has the meaning set forth in <u>Section 15.2</u> hereof.

"<u>Confidentiality Covenants</u>" has the meaning set forth in <u>Section 16.1.1</u> hereof.

"<u>Confidential Information</u>" has the meaning set forth in <u>Section 8.1.1</u> hereof.

"<u>Construction Contracts</u>" has the meaning set forth in <u>Section 7.1.16</u> hereof.

"<u>Conversion</u>" has the meaning set forth in <u>Section 8.4.4</u> hereof.

"<u>Current Month</u>" has the meaning set forth in <u>Section 12.2.1</u> hereof.

"<u>Cut-Off Time</u>" has the meaning set forth in <u>Section 12.2</u> hereof.

"<u>Deeds</u>" means, collectively, the special warranty deeds of conveyance for the Real Property, subject only to the Permitted Exceptions, in the forms attached hereto as <u>Exhibit F-1</u>, <u>Exhibit F-2</u>, and <u>Exhibit F-3</u>.

"<u>Deposit</u>" has the meaning set forth in <u>Section 3.2</u> hereof.

"<u>Effective Date</u>" has the meaning set forth in the Preamble.

"<u>Employees</u>" means all individuals who manage, operate or work at the Resort and are not independent contractors of Manager.

"<u>Employer</u>" means Manager.

"<u>Environmental Laws</u>" means the following, as the same may be amended or supplemented from time to time: the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (commonly known as "<u>CERCLA</u>"), as amended, the Superfund Amendment and Reauthorization Act (commonly known as "<u>SARA</u>"), the Resource Conservation and Recovery Act (commonly known as "<u>RCRA</u>"), the Hazardous Materials Transportation Act, the Clean Water Act, the Clean Air Act, the Toxic Substances Control Act, the Emergency Planning and Community Right to Know Act, the Oil Pollution Act of 1990, the Occupational Health and Safety Act, the Federal Insecticide, Fungicide and Rodenticide Act, the

&nbsp;&nbsp;&nbsp;&nbsp;4&nbsp;&nbsp;&nbsp;&nbsp;

------

National Environmental Policy Act, the Noise Control Act, the Safe Drinking Water Act, the Uranium Mill Tailings Radiation Control Act and any other federal, state, city or county law, ordinance, rule, regulation, order, judgment, injunction or decree relating to or regulating the protection of the environment or pertaining to hazardous substances, hazardous materials, hazardous waste or other toxic materials, together with their implementing regulations and guidelines.

"<u>Equipment Leases</u>" has the meaning set forth in <u>Section 2.1.9</u> hereof.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended and the rules and regulations thereunder.

"<u>ERP</u>" has the meaning set forth in <u>Section 8.4.4</u> hereof.

"<u>ERP Transfer</u>" has the meaning set forth in <u>Section 8.4.4</u> hereof.

"<u>Escrow Account</u>" has the meaning set forth in <u>Section 3.2</u> hereof.

"<u>Escrow Agent</u>" means Chicago Title Insurance Company, One Datran Center, 9100 S. Dadeland Blvd., Suite 904, Miami, Florida 33156 (Attention: Jennifer J. Corbo, Assistant Vice President and Senior Commercial Escrow Officer, Direct: (954) 308-3492, Email: jennifer.corbo@fnf.com).

"<u>Estoppel Deadline</u>" has the meaning set forth in <u>Section 8.10.1</u> hereof.

"<u>Excluded IT System</u>" has the meaning set forth in <u>Section 2.2.3</u> hereof.

"<u>Excluded Property</u>" has the meaning set forth in <u>Section 2.2</u> hereof.

"<u>Existing Lender</u>" means, collectively, Wells Fargo Bank, National Association, JPMorgan Chase Bank, National Association, and Bank of America, N.A, together with their respective successors and/or permitted assigns.

"<u>Existing Lender SNDA</u>" means that certain Subordination, Non-Disturbance, and Attornment Agreement dated as of June 12, 2024 by and among Seller, Manager, and the Existing Lender.

"<u>Existing Loan</u>" means that certain loan in the original principal amount of $590,000,000 made by Existing Lender to Seller pursuant to that certain Loan Agreement dated as of June 12, 2024.

"<u>Existing Loan Documents</u>" means, collectively, those certain documents described on <u>Schedule 1.7</u> attached hereto.

"<u>Existing Loan Release</u>" has the meaning set forth in <u>Section 8.14</u> hereof.

"<u>Extension Deposit</u>" has the meaning set forth in <u>Section 11.1</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;5&nbsp;&nbsp;&nbsp;&nbsp;

------

"<u>FedEx Lease</u>" means that certain Business Center Lease Agreement dated as of May 2, 2017, by and between Hotel Owner and FedEx Office and Print Services, Inc., a Texas corporation, as renewed and extended by that certain Business Center Lease Agreement renewal and extension dated as of October 28, 2022, by and between Hotel Owner and FedEx Office and Print Services, Inc., a Texas corporation.

"<u>F&B</u>" has the meaning set forth in <u>Section 2.1.7</u> hereof.

"<u>FF&E</u>" has the meaning set forth in <u>Section 2.1.4</u> hereof.

"<u>FF&E Reserve</u>" means all FF&E reserves held by Owner, any Affiliate of Owner or any lender of Owner or its Affiliates. As of January 31, 2026, the balance of the FF&E Reserve is as set forth on <u>Schedule 1.1</u> attached hereto.

"<u>FF&E Reserve Funding Obligation</u>" has the meaning set forth in <u>Section 12.3.6</u> hereof.

"<u>Fraud</u>" has the meaning set forth in <u>Section 16.1.1(b)</u> hereof.

"<u>Golf Club</u>" means the private golf and social club commonly known as The Members Club at Marco, which includes certain rights and privileges of the Golf Club members to utilize facilities of the Rookery Golf Course, the Hammock Bay Golf Course and the Hotel.

"<u>Golf Club Membership Documents</u>" means those certain Golf Club membership documents described on <u>Schedule 1.2</u> attached hereto.

"<u>Golf Club Membership Loan Documents</u>" means those certain Golf Club membership loan documents described on <u>Schedule 1.3</u> attached hereto.

"<u>Golf Courses</u>" has the meaning set forth in the Recitals hereof.

"<u>Golf Course Surveys</u>" means, collectively, or individually as the context may require, that certain survey of the Rookery Golf Course dated December 2, 2025, by Grady Minor, a copy of which has been delivered to Purchaser and that certain survey of the Hammock Bay Golf Course dated November 21, 2025, by Grady Minor, a copy of which has been delivered to Purchaser.

"<u>Golf Owner</u>" has the meaning set forth in the Preamble hereof.

"<u>Governmental Authority</u>" means any federal, state or local government or other political subdivision thereof (including, without limitation, any Person exercising executive, legislative, judicial, regulatory or administrative governmental powers or functions, in each case to the extent the same has jurisdiction over the Person or property in question).

"<u>Hammock Bay Golf Course</u>" means the Hammock Bay Golf Course & Clubhouse owned by Golf Owner located in Collier County, Florida.

&nbsp;&nbsp;&nbsp;&nbsp;6&nbsp;&nbsp;&nbsp;&nbsp;

------

"<u>Hazardous Substances</u>" means oil or other petroleum products (including gasoline, crude oil or any crude oil fraction), and pollutants, contaminants, chemicals, toxic or hazardous wastes or any other substances of any nature, including, without limitation, radioactive materials, PCBs, asbestos, pesticides, herbicides, pesticide or herbicide containers, untreated sewerage, industrial process sludge, any other material that might pose a hazard to health or safety or whose nature and/or quantity of existence, use, manufacture or effect renders it subject to Federal, state or local laws or regulation, investigation, remediation or removal, and any item which is identified as a hazardous substance, hazardous material, or hazardous waste in any Environmental Law.

"<u>Hotel</u>" has the meaning set forth in the Recitals.

"<u>Hotel Owner</u>" has the meaning set forth in the Preamble hereof.

"<u>Hotel Survey</u>" means that certain survey of the Hotel dated December 2, 2025 by RWA Engineering, a copy of which has been delivered to Purchaser.

"<u>Improvements</u>" has the meaning set forth in <u>Section 2.1.2</u> hereof.

"<u>Indemnification Claim</u>" has the meaning set forth in <u>Section 16.5.1</u> hereof.

"<u>Indemnification Loss</u>" means, with respect to any Indemnitee, any actual (and not contingent) liability, damage, loss, cost or expense, including, without limitation, reasonable attorneys' fees and expenses and court costs, including, trial and any appellate level fees and expenses, incurred by the Indemnitee as a result of the act, omission or occurrence in question.

"<u>Indemnitee</u>" has the meaning set forth in <u>Section 16.5.1</u> hereof.

"<u>Indemnitor</u>" has the meaning set forth in <u>Section 16.5.1</u> hereof.

"<u>Independent Consideration</u>" has the meaning set forth in <u>Section 3.3</u> hereof.

"<u>Initially Scheduled Closing Date</u>" has the meaning set forth in <u>Section 11.1</u> hereof.

"<u>Inspections</u>" has the meaning set forth in <u>Section 4.1</u> hereof.

"<u>Insurance Policy</u>" has the meaning set forth in <u>Section 16.9</u> hereof.

"<u>Intellectual Property</u>" has the meaning set forth in <u>Section 2.1.12</u> hereof.

"<u>IT System</u>" has the meaning set forth in <u>Section 2.1.6</u> hereof.

"<u>Knowledge of Purchaser</u>" has the meaning set forth in <u>Section 7.1</u> hereof.

"<u>Lanai Tower Work</u>" means any and all design, development, construction, repairs, replacements, enhancements, installations and/or capital expenditures or FF&E replacements, required, necessary, recommended, suggested, proposed, contemplated or desired with respect to

&nbsp;&nbsp;&nbsp;&nbsp;7&nbsp;&nbsp;&nbsp;&nbsp;

------

the so-called "Lanai Tower" located on the Resort, including, such work that may be applicable to any of the design, development, construction, furnishing and/or operation of the Lanai Tower.

"<u>Land</u>" has the meaning set forth in <u>Section 2.1.1</u> hereof.

"<u>Landlord Investment Amendment</u>" means an amendment to the Marriott Lease Agreement entered into on or after the Effective Date to document Landlord's Investment (as such term is defined in the Marriott Lease Agreement) with respect to 2024 and 2025, each of which amendment shall be substantially in the form of <u>Exhibit I</u> attached hereto, it being acknowledged and agreed that (a) after giving effect to such amendment in respect of 2024, Landlord's Investment shall be $[\*\*\*] and (b) after giving effect to such amendment in respect of 2025, Landlord's Investment shall in no event be less than the amount of Landlord's Investment as of 2024.

"<u>Lender SNDA</u>" has the meaning set forth in <u>Section 8.13</u> hereof.

"<u>Liabilities</u>" means any liabilities, obligations, damages, losses, costs and expenses of any kind or nature whatsoever, whether accrued or un-accrued, actual or contingent, known or unknown, foreseen or unforeseen.

"<u>Licenses and Permits</u>" has the meaning set forth in <u>Section 2.1.11</u> hereof.

"<u>Liquor License</u>" has the meaning set forth in <u>Section 8.2.3</u> hereof.

"<u>Lis Pendens</u>" has the meaning set forth in <u>Section 17.21</u> hereof.

"<u>Loan Assumption</u>" has the meaning set forth in <u>Section 8.14</u> hereof.

"<u>Loan Assumption Documents</u>" has the meaning set forth in <u>Section 8.14</u> hereof.

"<u>Loan Extension Costs</u>" has the meaning set forth in <u>Section 11.1</u> hereof.

"<u>Manager</u>" means Marriott Hotel Services, LLC, a Delaware limited liability company (or any successor in interest, assigns and/or changed name or designation resulting from any merger or acquisition).

"<u>Manager Consent</u>" has the meaning set forth in <u>Section 8.9</u> hereof.

"<u>Mandatory Cure Items</u>" has the meaning set forth in <u>Section 5.4</u> hereof.

"<u>Marriott Lease Agreement</u>" means that certain agreement described on <u>Schedule 1.5</u> attached hereto.

"<u>Marriott ROFO Waiver Letter</u>" means that certain letter agreement dated as of July 25, 2025 by and between Seller and Manager regarding the Resort and waiver of Manager's right of first offer under the Marriott Lease Agreement.

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"<u>Material Adverse Effect</u>" means any event, occurrence, fact, condition or change on or before the Closing that (a) has, or is reasonably likely to have, a material adverse effect on the value of the Property, the Improvements, or the operation of the Hotel from and after Closing, and/or (b) otherwise results, or would result, in a monetary loss to Purchaser expressly related to the ownership and/or operation of the Property, the Improvements or the Hotel from and after Closing (but excluding any reduction in value, which is covered by <u>clause (a)</u> above), including the cost to cure, cost to repair, or lost revenue, in an aggregate amount, as to <u>clause (a)</u> and <u>clause (b)</u> above (without duplication), equal to or greater than Four Percent (4%) of the Purchase Price. For the purpose of assessing the existence of a Material Adverse Effect, any reduction in value shall be measured using the actual reduction in value of the Property or the actual monetary loss without the application of any capitalization rate to such loss.

"<u>Material Casualty</u>" has the meaning set forth in <u>Section 15.1.1</u> hereof.

"<u>Material Condemnation</u>" has the meaning set forth in <u>Section 15.2.1</u> hereof.

"<u>Material Contract</u>" means any Operating Agreement that (a) cannot be terminated within sixty (60) or fewer days without payment of any fees or penalties or (b) requires aggregate annual payments in excess of Three Hundred Fifty Thousand Dollars ($350,000) for any year during the term of such Operating Agreement.

"<u>Memorandum of Assignment</u>" has the meaning set forth in <u>Section 11.3.1(m)</u> hereof.

"<u>Mutual Closing Conditions</u>" has the meaning set forth in <u>Section 10.1.1</u> hereof.

"<u>MVCI Agreement</u>" means that certain Marketing and Sales Access Agreement dated as of July 1, 2023, among Marriott Hotel Services, LLC, a Delaware limited liability company, Hotel Owner, and Marriott Ownership Resorts, Inc., a Delaware corporation doing business as Marriott Vacation Club International.

"<u>Notice</u>" has the meaning set forth in <u>Section 17.1.1</u> hereof.

"<u>OFAC</u>" has the meaning set forth in <u>Section 7.1.13</u> hereof.

"<u>Ongoing Capital Expenditures</u>" has the meaning set forth in <u>Section 7.1.16</u> hereof.

"<u>Operating Agreements</u>" means, collectively, all maintenance, repair, improvement, service and supply contracts, booking and reservation agreements, credit card service agreements, and all other agreements for goods or services entered into by the Seller in connection with the Business, other than the Marriott Lease Agreement, the Seller Space Agreements, the Equipment Leases and the Licenses and Permits, together with all deposits made or held by or on behalf of Seller thereunder.

"<u>Ordinary Course of Business</u>" means the ordinary course of business consistent with Seller's past custom and practice for the Business during the twelve-month period immediately preceding the Effective Date, taking into account the facts and circumstances in existence from time to time.

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"<u>Party(ies)</u>" has the meaning set forth in the Preamble hereof.

"<u>Permitted Exceptions</u>" means (a) the matters set forth in the Title Commitment which are described on <u>Schedule 1.6</u> attached hereto, (b) the Marriott Lease Agreement as it exists on the Effective Date, the Operating Agreements and other contracts affecting the Property as they exist on the Effective Date, and any Operating Agreements or other contracts entered into after the date hereof and in accordance with the terms of this Agreement, (c) liens for current real estate taxes which are not yet due and payable, (d) standard jacket exclusions contained in forms of title insurance policies, (e) discrepancies, conflicts in boundary lines, shortages in area, encroachments and any state of facts shown on the Survey, (f) intentionally omitted, (g) any laws, regulations, resolutions or ordinances, including, without limitation, building, zoning and environmental protection, as to the use, occupancy, subdivision, development, conversion or redevelopment of the Property currently or hereinafter imposed by any Governmental Authority, and (h) any liens, encumbrances or exceptions caused by Purchaser, its agents, representatives or employees.

"<u>Person</u>" means any natural person, corporation, general or limited partnership, limited liability company, association, joint venture, trust, estate, Governmental Authority or other legal entity, in each case whether in its own or a representative capacity.

"<u>Personal Property</u>" means the Property other than the Real Property.

"<u>Plans and Specifications</u>" has the meaning set forth in <u>Section 2.1.14</u> hereof.

"<u>Post-Closing Covenants</u>" has the meaning set forth in <u>Section 16.1.1(a)</u> hereof.

"<u>Pre-Closing Covenants</u>" has the meaning set forth in <u>Section 16.1.1(a)</u> hereof.

"<u>Prohibited Person</u>" has the meaning set forth in <u>Section 7.1.13</u> hereof.

"<u>Property</u>" has the meaning set forth in <u>Section 2.1</u> hereof.

"<u>Proprietary Manager Information</u>" means any and all guest or customer profiles, preferences and other information collected by Manager as a part of its frequent guest program and not the type of information that hotels generally collect from a guest or customer when making a reservation or checking in at a hotel.

"<u>Proprietary Marks</u>" means the Intellectual Property and other similar rights held by Seller (to the extent same are not used exclusively in connection with the Property or the Business) or Manager or any of their respective Affiliates.

"<u>Proprietary Materials</u>" means any reports or studies obtained by or on behalf of Seller, which includes any of the following proprietary materials: (a) information contained in Seller's financial analyses or projections or other internal documents relating to the Property, including any valuation documents, (b) material which is subject to attorney-client privilege or which is attorney work product, (c) appraisal reports or letters, (d) material which constitutes confidential internal assessments, reports, studies, memoranda, notes or other correspondence prepared by or

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on behalf of any officer or employee of Seller or any of its Affiliates, including, without limitation, all internal financial analysis, tax returns, financial statements and corporate or other entity governance records, and (e) materials which are subject to a confidentiality agreement or to Applicable Law prohibiting their disclosure by Seller or which Seller is legally required not to disclose.

"<u>Proprietary Property</u>" means (a) all Proprietary Marks, (b) all signs and other fixtures and personal property at the Hotel which bears any of the Proprietary Marks; (c) Seller's and Manager's internal management, operational, employee and similar manuals, handbooks and publications; (d) all Proprietary Manager Information; and (e) Seller's and Manager's centralized systems and programs used in connection with the Business conducted by Seller, including, without limitation, the sales and marketing, guest program, Resort Guest Data and Information and purchasing systems and programs.

"<u>Proration Covenants</u>" has the meaning set forth in <u>Section 16.1.1(a)</u> hereof.

"<u>Prorations</u>" has the meaning set forth in <u>Section 12.2</u> hereof.

"<u>Purchase Price</u>" has the meaning set forth in <u>Section 3.1</u> hereof.

"<u>Purchase Price Allocation Covenants</u>" has the meaning set forth in <u>Section 16.1.1(a)</u> hereof.

"<u>Purchaser</u>" has the meaning set forth in the Preamble hereof.

"<u>Purchaser Closing Conditions</u>" has the meaning set forth in <u>Section 10.2.1</u> hereof.

"<u>Purchaser Closing Deliveries</u>" has the meaning set forth in <u>Section 11.3.2</u> hereof.

"<u>Purchaser Default</u>" has the meaning set forth in <u>Section 14.2</u> hereof.

"<u>Purchaser Documents</u>" has the meaning set forth in <u>Section 7.2.2</u> hereof.

"<u>Purchaser Indemnitees</u>" means Purchaser and its Affiliates, and each of their respective past, present or future direct or indirect shareholders, members, partners, trustees, beneficiaries, directors, officers and employees, and the successors, permitted assigns, legal representatives, heirs and devisees of each of the foregoing.

"<u>Purchaser's Employee Obligations</u>" has the meaning set forth in <u>Section 8.3.3</u> hereof.

"<u>Purchaser's Knowledge</u>" (or words of similar import or reference, including but not limited to the word "Knowledge" in proximity or reference to Purchaser) has the meaning set forth in <u>Section 7.1</u> hereof.

"<u>Purchaser's Knowledge Party</u>" has the meaning set forth in <u>Section 7.2.9</u> hereof.

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"<u>Purchaser's Representatives</u>" has the meaning ascribed to "Buyer's Representatives" in the Access Agreement.

"<u>Real Property</u>" has the meaning set forth in <u>Section 2.1.2</u> hereof.

"<u>Rehired Employees</u>" has the meaning set forth in <u>Section 8.3.1(a)</u> hereof.

"<u>Resort</u>" means collectively, or as the context may require, individually, the Hotel, the Golf Club, the Rookery Golf Course and the Hammock Bay Golf Course.

"<u>Resort Guest Data and Information</u>" means all guest or customer profiles, contact information (e.g., addresses, phone numbers, facsimile numbers and email addresses), histories, preferences and any other guest or customer information in Seller's Possession of the type of information that hotels or golf clubs generally collect from guests or customers when making a reservation or checking in at a hotel, whether obtained or derived by Seller from guests or customers of the Resort, but expressly excluding Proprietary Manager Information.

"<u>Retail Merchandise</u>" has the meaning set forth in <u>Section 2.1.8</u> hereof.

"<u>Rookery Golf Course</u>" means the Rookery Golf Course owned by Golf Owner located in Collier County, Florida.

"<u>Scheduled Closing Date</u>" has the meaning set forth in <u>Section 11.1</u> hereof.

"<u>Secondary Bidder</u>" means that certain third party (or any of its Affiliates) whom Seller engaged in discussions and negotiations regarding a purchase and sale agreement for the Property that were contemporaneous with Seller's discussions or negotiations of this Agreement.

"<u>Seller</u>" has the meaning set forth in the Preamble.

"<u>Seller Closing Conditions</u>" has the meaning set forth in <u>Section 10.3.1</u> hereof.

"<u>Seller Closing Deliveries</u>" has the meaning set forth in <u>Section 11.3.1</u> hereof.

"<u>Seller Default</u>" has the meaning set forth in <u>Section 14.1</u> hereof.

"<u>Seller Documents</u>" has the meaning set forth in <u>Section 7.1.2</u> hereof.

"<u>Seller Due Diligence Materials</u>" means all materials Seller delivers to Purchaser in connection with Purchaser's Inspections hereunder; <u>provided</u>, <u>however</u>, that Seller shall have no obligation to make available or deliver to Purchaser any Proprietary Materials.

"<u>Seller Indemnitees</u>" means Seller, Advisor, the Employer and their respective Affiliates, and each of their respective past, present or future direct or indirect shareholders, members, partners, trustees, beneficiaries, directors, officers and employees, and the successors, permitted assigns, legal representatives, heirs and devisees of each of the foregoing.

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"<u>Seller Representations</u>" has the meaning set forth in <u>Section 6.1.1</u> hereof.

"<u>Seller Space Agreements</u>" has the meaning set forth in <u>Section 7.1.15</u> hereof.

"<u>Seller Title Response</u>" has the meaning set forth in <u>Section 5.3</u> hereof.

"<u>Seller's Employee Obligations</u>" has the meaning set forth in <u>Section 8.3.3</u> hereof.

"<u>Seller's Knowledge</u>" has the meaning set forth in <u>Section 7.1</u> hereof.

"<u>Seller's Possession</u>" means in the physical possession and/or control of or reasonably available to any officer or employee of Seller or the Employer; <u>provided</u>, <u>however</u>, that any reference in this Agreement to Seller's Possession of any documents or materials expressly excludes the possession of any documents or materials that are Proprietary Materials.

"<u>Seller's Representative</u>" has the meaning set forth in <u>Section 7.1</u> hereof.

"<u>Settlement Agreement</u>" means that certain Amended Final Judgment dated July 17, 2023, entered in Case No. 2018-CA-1623, in the Circuit Court of the Twentieth Judicial Circuit in and for Collier County, Florida.

"<u>SFWMD</u>" has the meaning set forth in <u>Section 8.4.4</u> hereof.

"<u>Space Leases</u>" means all leases, licenses, concessions, and other occupancy agreements (and any amendments thereto) for the use or occupancy of any portion of the Improvements, excluding, however, Bookings.

"<u>Supplies</u>" has the meaning set forth in <u>Section 2.1.5</u> hereof.

"<u>Survey</u>" means collectively, the Hotel Survey and the Golf Course Surveys.

"<u>Taxes</u>" means any federal, state, local or foreign, real property, personal property, sales, use, room, occupancy, ad valorem or similar taxes, assessments, levies, charges or fees imposed by any Governmental Authority on Seller with respect to the Property or the Business, including, without limitation, any interest, penalty or fine with respect thereto, but expressly excluding any transfer, documentary stamp, recording or similar tax, levy, charge or fee incurred with respect to the transactions described in this Agreement.

"<u>Third-Party Claim</u>" means, individually and collectively: (a) with respect to Seller Indemnitees, any claim, demand, lawsuit, arbitration or other legal or administrative action or proceeding against Seller Indemnitee by any Person which is not Purchaser or an Affiliate of Purchaser; and (b) with respect to any Purchaser Indemnitee, any claim, demand, lawsuit, arbitration or other legal or administrative action or proceeding against Purchaser Indemnitee by any Person which is not Seller or an Affiliate of Seller.

"<u>Title Commitment</u>" has the meaning set forth in <u>Section 5.2</u> hereof.

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"<u>Title Company</u>" means Chicago Title Insurance Company, One Datran Center, 9100 S. Dadeland Blvd., Suite 904, Miami, Florida 33156 (Attention: Jennifer J. Corbo, Assistant Vice President and Senior Commercial Escrow Officer, Direct: (954) 308-3492, Email: jennifer.corbo@fnf.com) and Landy Saavedra, PLLC, as agent, 8950 SW 74<sup>th</sup> Ct, Suite 2201, Miami, FL 33156 (Attention: Brenda M. Saavedra, Esq., Direct: (305) 677-3189, Email: saavedrab@lspllclaw.com).

"<u>Title Objection</u>" has the meaning set forth in <u>Section 5.2</u> hereof.

"<u>Title Policy</u>" means an ALTA 2021 Owner's Policy of Title Insurance with Florida modifications, issued by the Title Company insuring Purchaser's title to the Real Property subject (a) only to the Permitted Exceptions and (b) in an amount at least equal to the portion of the Purchase Price allocable to the Land and Improvements.

"<u>Title Update</u>" has the meaning set forth in <u>Section 5.2</u> hereof.

"<u>Verizon Lease</u>" means that certain Equipment Space License Agreement dated as of March 5, 2024, by and between Hotel Owner and Cellco Partnership d/b/a Verizon Wireless, a Delaware general partnership.

"<u>WARN Act</u>" has the meaning set forth in <u>Section 8.3.1</u>.

"<u>Warranties</u>" has the meaning set forth in <u>Section 2.1.15</u> hereof.

**ARTICLE 2<br>THE PROPERTY AND LIABILITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1<u>Description of the Property</u>. Subject to the terms set forth in this Agreement, at Closing, Seller shall sell, convey, transfer, assign and deliver to Purchaser, and Purchaser shall purchase and accept from Seller the Resort, including the property and assets more particularly set forth in this <u>Section 2.1</u> below, but expressly excluding any Excluded Property (collectively, the "<u>Property</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1<u>Land</u>. Collectively, those parcels of land described in <u>Exhibit A-1</u> and <u>Exhibit A-2</u> attached hereto, together with all appurtenant easements and any other rights and interests appurtenant thereto (collectively, the "<u>Land</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2<u>Improvements</u>. All buildings, structures (surface and subsurface), parking areas and other improvements located on or affixed to the Land and all fixtures on the Land which constitute real property under Applicable Law (the "<u>Improvements</u>," and together with the Land, the "<u>Real Property</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3<u>Marriott Lease Agreement</u>. All right, title and interest of landlord in the Marriott Lease Agreement.

In addition to the foregoing, the following items shall be sold, conveyed, transferred, assigned and delivered to Purchaser at Closing, subject to the rights of Manager under the Marriott Lease Agreement (and, for the avoidance of doubt, to the extent of Seller's right, title, and interest therein, including any reversionary right):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.4<u>FF&E</u>. Seller's right, title and interest in all fixtures (other than those which constitute Improvements), furniture, furnishings, equipment, machinery, tools, vehicles, appliances, art work and other items of tangible personal property which are located at the Real Property and used exclusively in the Business, or ordered for future use at the Real Property, at Closing, other than the Supplies, IT System, F&B, Retail Merchandise, Books and Records and Plans and Specifications (the "<u>FF&E</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.5<u>Supplies</u>. Seller's right, title and interest in all china, glassware and silverware, linens, uniforms, engineering, maintenance, cleaning and housekeeping supplies, soap and other toiletries, stationery, menus, directories and other printed materials, golf operating supplies, and all other similar supplies and materials (including but not limited to Fixed Asset Supplies, as such term is defined in the Marriott Lease Agreement), in each case whether partially used, unused or held in reserve storage for future use, which are located at the Real Property or stored off-site or ordered for future use at the Real Property as of Closing thereon (the "<u>Supplies</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.6<u>IT System</u>. Seller's right, title and interest in all computer hardware, telecommunications and information technology systems located at the Real Property or stored off-site, but specific to the operation of the Business on the Property, including all telephone exchanges located at the Real Property, and all computer software used at the Real Property, subject to the terms of the applicable license agreement, to the extent the same are transferable or the Parties obtain any consent necessary to effectuate such a transfer, but expressly excluding the Excluded IT System (the "<u>IT System</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.7<u>Food and Beverage</u>. Seller's right, title and interest in all food and beverages (alcoholic and non-alcoholic) which are located at the Real Property, whether opened or unopened, or ordered for future use at the Real Property, as of the Closing, including, without limitation, all food and beverages located in the guest rooms, but expressly excluding any alcoholic beverages to the extent the sale or transfer of the same is not permitted under Applicable Law (the "<u>F&B</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.8<u>Retail Merchandise</u>. Seller's right, title and interest in all merchandise located at the Real Property and held for sale to guests and customers of the Real Property, or ordered for future sale at the Real Property or stored offsite, as of the Closing, including, without limitation, the inventory held for sale in any gift shop, or newsstand operated by or on behalf of Seller at the Real Property, but expressly excluding the F&B (the "<u>Retail Merchandise</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.9<u>Equipment Leases</u>. Seller's right, title and interest in all leases and purchase money security agreements for any equipment, machinery, vehicles, furniture or other personal property located at the Resort or stored off-site which are held by or on behalf of Seller and used exclusively in the Business, together with all deposits made by or on behalf of Seller with respect thereto, to the extent the same and such deposits are transferable or the Parties obtain any consent necessary to effectuate such a transfer (each, an "<u>Equipment Lease</u>" and, collectively, the "<u>Equipment Leases</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.10<u>Assigned Operating Agreements</u>. Seller's right, title and interest in all Operating Agreements and the deposits held thereunder to the extent the same are transferable or the Parties obtain any consent necessary to effectuate such a transfer (each, an "<u>Assigned Operating Agreement</u>" and, collectively, the "<u>Assigned Operating Agreements</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.11<u>Licenses and Permits</u>. Seller's right, title and interest in all licenses, permits, consents, authorizations, approvals, registrations and certificates issued by any Governmental Authority for the Property and/or Business which are held by or on behalf of Seller (including, without limitation, the construction, use or occupancy of the Property or the

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Business) together with any deposits made by or on behalf of Seller with respect thereto to the extent the same and such deposits are transferable or the Parties obtain any consent necessary to effectuate such a transfer (the "<u>Licenses and Permits</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.12<u>Intellectual Property</u>. Seller's right, title and interest in all trademarks, trade names, service marks, symbols, logos, domain names and other intellectual property rights owned or assignable by Seller specific to the operation of the Business, if any, but excluding all Proprietary Marks, to the extent the same are transferable (the "<u>Intellectual Property</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.13<u>Books and Records</u>. Seller's right, title and interest in all books and records which relate to the Property or the Business, but expressly excluding any Proprietary Materials (the "<u>Books and Records</u>"); <u>provided</u>, <u>however</u>, that Seller shall have the right to (a) redact and reformat any Books and Records which include data or other information pertaining to any other properties owned, managed or franchised by Seller or its Affiliates that are unrelated to the operation of the Business; and (b) retain copies of any Books and Records (and all underlying data) delivered to Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.14<u>Plans and Specifications</u>. Seller's right, title and interest in the plans and specifications, blue prints, architectural plans, engineering diagrams and similar items located at the Real Property or in Seller's Possession which are specific to the Resort, if any, to the extent the same are transferable (the "<u>Plans and Specifications</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.15<u>Warranties</u>. Seller's right, title and interest in the warranties and guaranties (if any) held by or made for the benefit of Seller with respect to the Improvements or Personal Property situated at the Resort to the extent the same are transferable and the Parties obtain any consent necessary to effectuate such a transfer (the "<u>Warranties</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.16<u>Bookings</u>. Seller's right, title and interest in all bookings and reservations for guest, conference and banquet rooms or other facilities at the Property as of the Closing, together with all deposits actually taken and held by or on behalf of Seller with respect to the Hotel (the "<u>Bookings</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.17<u>Golf Club Membership Loan Documents; Golf Club Membership Documents</u>. Seller's right, title and interest in the Golf Club Membership Loan Documents and the Golf Club Membership Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2<u>Excluded Property</u>. Notwithstanding anything to the contrary in <u>Section 2.1</u> above, the property, assets, rights and interests set forth below in this <u>Section 2.2</u> (the "<u>Excluded</u> <u>Property</u>") shall not be transferred, assigned or conveyed to Purchaser at Closing, and shall be excluded from the Property:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1<u>Cash</u>. Except for deposits expressly included in <u>Section 2.1</u> hereof, and except as otherwise expressly provided herein, all cash on hand or on deposit in any house bank, operating account or other account or reserve held by Seller or any lender of Seller (including, without limitation, seasonal reserves and the FF&E Reserve) maintained in connection with the Business, together with any and all credit card charges, checks and other instruments which either Seller has submitted for payment as of the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2<u>Third-Party Property</u>. Any fixtures, personal property or Intellectual Property owned by (a) the lessor under any Equipment Leases (subject to Purchaser's rights under the Equipment Leases); (b) the supplier, vendor, licensor or other party under any Operating Agreements, Assumed Property Agreements or Licenses and Permits (including, without limitation, Manager pursuant to the Marriott Lease Agreement); (c) any Employee or (d) any guest or customer of the Resort;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3<u>Excluded IT System</u>. The computer hardware, telecommunications and information technology systems, and computer software owned, leased or licensed by Manager set forth on <u>Schedule 2.2.3</u> (the "<u>Excluded IT System</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.4<u>Insurance Policies</u>. All policies of insurance under which Seller is a named or an additional named insured. Purchaser shall be responsible for obtaining its own insurance as of the Closing and for the period thereafter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.5<u>Proprietary Intangibles</u>. All Proprietary Manager Information, all Proprietary Materials, all Proprietary Marks, and all Proprietary Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3<u>Assumed Liabilities</u>. Except for Liabilities for which Seller has expressly agreed to indemnify any Purchaser Indemnitee under any other provision in this Agreement or any Seller Closing Deliveries and Seller's Employee Obligations (if any), at Closing, Purchaser shall assume all Liabilities (a) with respect to the Property, the Business, Taxes and the Employees, including, but not limited to, all Liabilities arising under the Marriott Lease Agreement and the Assumed Property Agreements, but only to the extent (i) first arising and accruing on or after the Closing Date, or (ii) first arising prior to the Closing solely to the extent Purchaser has received a credit for such Liabilities under <u>Article 12</u>, and (b) otherwise expressly assumed by Purchaser pursuant to the terms of this Agreement or against which Purchaser has expressly agreed to indemnify any Seller Indemnitees under any other provision in this Agreement (collectively, the "<u>Assumed Liabilities</u>"). Seller shall retain all Liabilities, other than any Liabilities that constitute Assumed Liabilities, with respect to the Property, and the Business, Taxes, including but not limited to, all Liabilities under the Marriott Lease Agreement and the Operating Agreements that accrued prior to Closing. This <u>Section 2.3</u> shall survive the Closing.

**ARTICLE 3<br>PURCHASE PRICE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1<u>Purchase Price</u>. The purchase price for the Property is Eight Hundred Thirty Five Million and No/Dollars ($835,000,000.00) (the "<u>Purchase Price</u>"), which shall be adjusted at Closing for the Prorations pursuant to <u>Section 12.2</u> hereof, and as otherwise expressly provided in this Agreement. If the Loan Assumption occurs, then the outstanding principal balance of the Existing Loan as assumed by Purchaser shall be credited against the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2<u>Deposit</u>. Not later than one (1) Business Day following the Effective Date of this Agreement, Purchaser shall deposit with the Escrow Agent, in an interest bearing account established by Escrow Agent (the "<u>Escrow Account</u>"), in cash or other immediately available funds, the sum of Ten Million and 00/100 Dollars ($10,000,000.00) (together with any interest earned thereon, the "<u>Deposit</u>"). The Deposit is consideration for the rights granted to Purchaser to purchase the Property and shall be deemed fully earned by Seller on the Effective Date and nonrefundable to Purchaser in all events except as expressly provided in this Agreement. The Escrow Agent shall hold the Deposit in the Escrow Account, in accordance with the terms and conditions of this Agreement. All interest on such sum shall be deemed income of Purchaser and Purchaser shall be responsible for the payment of all costs and fees imposed on the Escrow Account. Nevertheless, all interest accrued on such sum shall be held and disbursed with, and deemed to be a part of, the Deposit for all purposes of this Agreement. At Closing, the Deposit and all interest, if any accrued thereon shall be applied toward the Purchase Price and paid through Escrow to Seller. Purchaser shall be responsible for any income taxes payable with respect to any interest and/or dividends earned with respect to the Deposit and shall deliver IRS Form W-9 to Escrow Agent in connection therewith. Escrow Agent shall disburse the Deposit to the Parties in accordance with the terms and conditions of this Agreement. This <u>Section 3.2</u> shall survive the Closing, as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3<u>Independent Consideration</u>. Within one (1) Business Day following the Effective Date, Purchaser shall pay to Seller an amount equal to One Thousand and No/100 Dollars ($1,000.00) which shall be deemed "nonrefundable option money" given by Purchaser to

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Seller as good and valuable consideration for the rights and obligations of the parties under this Agreement, is independent of all other consideration provided in this Agreement, and is nonrefundable in all events (the "<u>Independent Consideration</u>"). Seller and Purchaser stipulate that the Independent Consideration is sufficient consideration to support this Agreement notwithstanding any limited termination rights in favor of Purchaser as expressly set forth in this Agreement. At Closing, the Independent Consideration shall be credited against the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4<u>Payment of Purchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.1<u>Payment at Closing</u>. At Closing, Purchaser shall pay to Seller an amount equal to the Purchase Price, as adjusted pursuant to <u>Section 3.1</u> hereof, less the Deposit and the Independent Consideration applied and credited toward payment of the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4.2<u>Method of Payment</u>. All amounts to be paid by Purchaser to Seller pursuant to this Agreement shall be paid by wire transfer of immediately available U.S. federal funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5<u>Allocation of Purchase Price</u>. Seller and Purchaser agree that the Purchase Price (and any other amounts treated as consideration for U.S. federal, state, or local income tax purposes) shall be allocated among the real property and other tangible and intangible property and other assets purchased (the "<u>Allocation</u>"). The Parties shall use their good faith efforts to agree to an Allocation as soon as reasonably practicable following the Effective Date and no later than fifteen (15) Business Days prior to the Closing Date. Upon reaching an agreement on such Allocation, the Allocation shall be used in connection with any transfer and sales taxes (if applicable) payable in connection with the transfer of the Property pursuant to this Agreement, with appropriate stipulations that such allocations are not binding for any other purpose. Notwithstanding the foregoing, if the Parties are unable to agree on a mutually satisfactory Allocation, then each of Purchaser and Seller shall use its own Allocation for tax returns, filings, and other purposes; <u>provided</u>, <u>however</u>, that the Allocation proposed by Seller shall be used in connection with all non-income taxes (if applicable) payable in connection with or resulting from this Agreement, with appropriate stipulations that such allocations are not binding for any federal, state or local income tax purposes. The provisions of this <u>Section 3.5</u> shall survive the Closing without limitation.

**ARTICLE 4<br>PURCHASER'S INSPECTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1<u>Inspections</u>. Prior to the Effective Date, Seller made all Books and Records, and Plans and Specifications, which are in Seller's Possession, available for Purchaser's inspection, and continuing after the Effective Date, Seller shall continue to make all Books and Records, and Plans and Specifications, which are in Seller's Possession, available for Purchaser's inspection and Purchaser shall continue to have the right to perform such examinations, tests, investigations and studies of the Property as are contemplated in, and subject to the terms of, the Access Agreement (the "<u>Inspections</u>"). Purchaser hereby acknowledges and agrees that prior to the Effective Date, Purchaser had an adequate opportunity to conduct Inspections of the Property as Purchaser deemed necessary or appropriate in its sole and absolute discretion. Notwithstanding anything to the contrary in this Agreement, (i) Purchaser's execution of this Agreement shall be deemed to constitute Purchaser's approval of all Inspections and affirmative election to proceed to Closing subject to, and in accordance with, the terms and conditions contained herein, and (ii) Purchaser shall have no right to terminate this Agreement or receive any refund of the Deposit with respect to the Inspections, whether such Inspections were completed before or after the Effective Date; <u>provided</u>, that the foregoing shall be subject to the rights of Purchaser under all other provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2<u>Incorporation By Reference</u>. The terms and conditions set forth in Section 1, Section 2, Section 3, Section 4, Section 5, and Section 6 of the Access Agreement are incorporated herein by this reference as if set forth in full herein, and applied *mutatis mutandis*, it

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being acknowledged and agreed that: (a) all references therein to "Owner" shall be deemed to mean, and refer to, Seller, (b) all references therein to "Prospective Buyer" shall be deemed to mean, and refer to Purchaser, and (c) notwithstanding anything in the Access Agreement, the terms and conditions of such provisions of the Access Agreement (as incorporated herein) shall survive any termination of this Agreement for a period of eighteen (18) months.

**ARTICLE 5<br>TITLE TO THE PROPERTY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1<u>Title</u> . The Property shall be sold and is to be conveyed, and Purchaser agrees to purchase the Property, subject only to the Permitted Exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2<u>Title Commitments and Survey</u>. Prior to the Effective Date, Seller has delivered or given Purchaser access to (a) a current title insurance report pursuant to which the Title Company would insure Purchaser's title to the Real Property in the amount of the Purchase Price subject to the satisfaction of certain conditions (the "<u>Title Commitment</u>") and (b) the Survey. If the Title Company notifies Purchaser of any title update to the Real Property following the Effective Date including in an updated Title Commitment or owner's or loan proforma title policy or as disclosed in an update to the Survey (a "<u>Title Update</u>"), Purchaser may give Seller written notice of any objections it has to any matters disclosed by the Title Update which are unacceptable to Purchaser (each, a "<u>Title Objection</u>"); <u>provided</u>, that (i) such Title Objections were not listed in the original Title Commitment, (ii) such Title Objections have a Material Adverse Effect or are the result of a breach by Seller of its express obligations hereunder, and (iii) Purchaser provides Seller written notice of such Title Objections within three (3) Business Days after receipt of the Title Update. If Purchaser fails to timely object to any Title Update that satisfies the conditions described in <u>subclauses (i)</u> through <u>(ii)</u> of this <u>Section 5.2</u>, or if any Title Update does not disclose matters that satisfy the conditions described in subclauses (i) through (ii) of this <u>Section 5.2</u>, then, in each instance, except with respect to any matters affecting title to the Real Property of the type described in <u>Section 5.4</u> below, Purchaser shall be deemed to have waived its right to object to any such matter and any such matter shall be considered a Permitted Exception for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3<u>Resolution of Title Objections</u>. Within ten (10) days after receipt from Purchaser of a written notice of any Title Objections, Seller shall notify Purchaser in writing as to whether or not Seller will cure such Title Objections (the "<u>Seller Title Response</u>"), and if Seller elects to cure any such Title Objections (which election shall be in Seller's sole and absolute discretion), Seller shall satisfy or correct, at Seller's expense, such Title Objections on or before the Closing Date. Failure of Seller to give the Seller Title Response notice within such ten (10) day period shall be deemed to be Seller's election not to cure any such Title Objections. In the event Seller does not elect to satisfy or cure or is deemed to have elected not to satisfy or cure any such Title Objections of which it is notified, then, within three (3) Business Days thereafter, Purchaser shall by written notice to Seller elect one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1To waive such Title Objections and proceed to Closing in accordance with the terms of this Agreement, in which event such Title Objections shall be deemed Permitted Exceptions; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2To terminate this Agreement by delivery of written notice to Seller and to receive a complete refund of the Deposit, in which event neither Seller nor Purchaser shall have any further rights, duties or obligations under this Agreement, except for those which expressly survive termination of this Agreement.

The failure of Purchaser to give timely notice of its election as to the foregoing alternatives shall be deemed an election to proceed with the transaction in accordance with <u>Subsection 5.3.1</u> above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5<u>Postponement of Closing</u>. The Closing Date shall be postponed, if necessary, to permit the full running of the respective time periods described in <u>Section 5.2</u> above.

**ARTICLE 6<br>CONDITION OF THE PROPERTY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1<u>PROPERTY SOLD "AS-IS"</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1EXCEPT FOR (I) THE REPRESENTATIONS OF SELLER EXPRESSLY MADE IN THIS AGREEMENT, INCLUDING <u>SECTION 7.1</u> AND/OR IN ANY OF THE SELLER CLOSING DELIVERIES (THE "<u>SELLER REPRESENTATIONS</u>") AND (II) SELLER'S COVENANTS UNDER THIS AGREEMENT THAT EXPRESSLY SURVIVE CLOSING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, PURCHASER ACKNOWLEDGES THAT NEITHER SELLER NOR ANYONE ACTING ON BEHALF OF SELLER HAS MADE ANY REPRESENTATIONS OR WARRANTIES OF

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ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OR REPRESENTATIONS AS TO TITLE, ABSENCE OF DEFECTS (WHETHER APPARENT OR LATENT, KNOWN OR UNKNOWN, EASILY DISCOVERABLE OR HIDDEN), HABITABILITY, MERCHANTABILITY, FITNESS FOR ANY ORDINARY USE, FITNESS FOR ANY INTENDED USE OR PARTICULAR PURPOSE, ZONING, TAX CONSEQUENCES, PHYSICAL CONDITION, MOLD, ENVIRONMENTAL CONDITION, UTILITIES, OPERATING HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS OR RESTRICTIONS, THE COMPLIANCE OF THE PROPERTY WITH LEGAL REQUIREMENTS, INCLUDING WITHOUT LIMITATION THE AMERICANS WITH DISABILITIES ACT OF 1990, 42 U.S.C. 12101, ET SEQ., THE TRUTH, ACCURACY, OR COMPLETENESS OF ANY MATERIALS, DATA, OR INFORMATION PROVIDED BY OR ON BEHALF OF SELLER TO PURCHASER, OR THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS INCORPORATED INTO THE PROPERTY OR THE MANNER OF REPAIR, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY OR ANY PORTION THEREOF. EXCEPT FOR THE SELLER REPRESENTATIONS, ALL SUCH REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE PROPERTY ARE HEREBY DISCLAIMED BY SELLER AND EXPRESSLY WAIVED BY PURCHASER. EXCEPT FOR THE SELLER REPRESENTATIONS, PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND NEITHER SELLER NOR ANY OF THE OTHER SELLER INDEMNITEES IS LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS, OR INFORMATION PERTAINING OR RELATING TO THE PROPERTY MADE OR FURNISHED BY SELLER, ANY PARTY ACTING OR PURPORTING TO ACT FOR SELLER, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, VERBALLY OR IN WRITING. PURCHASER FURTHER HAS NOT RELIED ON SELLER'S SKILL OR JUDGMENT IN SELECTING THE PROPERTY. EXCEPT AS OTHERWISE SET FORTH HEREIN AND/OR IN ANY OF THE SELLER CLOSING DELIVERIES OR IN CONNECTION WITH SELLER'S FRAUD, PURCHASER SHALL HAVE NO RIGHT OR CAUSE OF ACTION IN WARRANTY OR OTHERWISE AGAINST SELLER OR ANY OF THE OTHER SELLER INDEMNITEES IN ANY CONTROVERSY, CLAIM, DEMAND, OR LITIGATION ARISING FROM OR IN CONNECTION WITH THE PROPERTY, (INCLUDING, BUT NOT LIMITED TO THE PHYSICAL OR ENVIRONMENTAL CONDITION THEREOF) AND PURCHASER HEREBY WAIVES AND RELEASES SELLER AND EACH OF THE SELLER INDEMNITEES FROM ANY SUCH RIGHT OR CAUSE OF ACTION. PURCHASER ACKNOWLEDGES AND AGREES THAT EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT AND/OR IN ANY OF THE SELLER CLOSING DELIVERIES, (A) THE PURCHASE OF THE PROPERTY SHALL BE ON AN "AS-IS," "WHERE IS," "WITH ALL FAULTS" BASIS, SUBJECT TO WEAR AND TEAR FROM THE EFFECTIVE DATE OF THIS AGREEMENT UNTIL THE CLOSING DATE, AND (B) NEITHER SELLER, NOR ANY OF ITS AFFILIATES HAS ANY OBLIGATION TO REPAIR ANY DAMAGE TO OR DEFECT IN THE PROPERTY, REPLACE THE PROPERTY OR OTHERWISE REMEDY ANY MATTER AFFECTING THE CONDITION OF THE PROPERTY. WITHOUT LIMITING THE FOREGOING, PURCHASER HEREBY ACKNOWLEDGES AND AGREES THAT PURCHASER SHALL RELY UPON PURCHASER'S OWN DUE DILIGENCE IN DETERMINING WHETHER THE PROPERTY AND THE BUSINESS ARE SUITABLE FOR PURCHASE BY PURCHASER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2EXCEPT FOR THE SELLER REPRESENTATIONS, SELLER AND EACH PERSON ACTING OR PURPORTING TO ACT ON BEHALF OF SELLER HAS NOT, DOES NOT AND WILL NOT MAKE ANY REPRESENTATIONS OR WARRANTIES WITH REGARD TO (A) COMPLIANCE WITH ANY ENVIRONMENTAL LAWS, HEALTH OR

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SAFETY LAWS, RULES OR REGULATIONS OR LAND USE LAWS, RULES, REGULATIONS, ORDERS, OR REQUIREMENTS INCLUDING, BUT NOT LIMITED TO, THOSE PERTAINING TO THE HANDLING, GENERATING, TREATING, STORING OR DISPOSING OF ANY HAZARDOUS SUBSTANCES OR (B) ABSENCE OF ANY CLAIMS, WHETHER ASSERTED OR UNASSERTED, WITH RESPECT TO COMPLIANCE WITH ENVIRONMENTAL LAWS OR ENVIRONMENTAL, FIRE LIFE SAFETY OR HEALTH AND WELFARE CONDITIONS AT THE PROPERTY OR (C) ANY GOVERNMENTAL RESTRICTIONS RELATED TO ANY EPIDEMIC OR PANDEMIC THAT COULD ADVERSELY IMPACT THE OWNERSHIP OR OPERATION OF THE PROPERTY. AS A MATERIAL PART OF THE CONSIDERATION TO SELLER FOR THE SALE OF THE RESORT HEREUNDER, EXCEPT FOR (I) ANY BREACH OF COVENANTS THAT EXPRESSLY SURVIVE CLOSING, (II) ANY LIABILITY FOR WHICH SELLER HAS EXPRESSLY AGREED PURSUANT TO THE TERMS OF THIS AGREEMENT TO INDEMNIFY PURCHASER OR THE PURCHASER INDEMNITEES AND/OR (III) AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT AND/OR IN ANY OF THE SELLER CLOSING DELIVERIES (IN EACH INSTANCE, SUBJECT TO THE TERMS OF THIS AGREEMENT OR SUCH OTHER DOCUMENT), PURCHASER HEREBY WAIVES AND RELINQUISHES, AND RELEASES THE SELLER INDEMNITEES FROM ANY AND ALL CLAIMS AND REMEDIES (INCLUDING, WITHOUT LIMITATION, ANY RIGHT OF RESCISSION) AGAINST THE SELLER INDEMNITEES OR ANY OF THEM BASED DIRECTLY OR INDIRECTLY ON (A) ANY PAST, PRESENT OR FUTURE CONDITION OF THE RESORT, INCLUDING, WITHOUT LIMITATION, THE RELEASE OR PRESENCE OF ANY HAZARDOUS SUBSTANCES, MOLD, COMMUNICABLE DISEASE OR OTHER HEALTH OR WELFARE ISSUE OR (B) ANY MISREPRESENTATION OR FAILURE TO DISCLOSE TO PURCHASER ANY INFORMATION REGARDING THE RESORT (INCLUDING, WITHOUT LIMITATION, ANY DEFECTIVE, HAZARDOUS OR UNLAWFUL CONDITION OF WHICH SELLER SHOULD BE AWARE, WHETHER OR NOT SUCH CONDITION REASONABLY COULD HAVE BEEN DISCOVERED BY PURCHASER THROUGH AN INSPECTION OF THE RESORT OR ANY PORTION THEREOF OR THE PROPERTY RECORDS). PURCHASER UNDERSTANDS THAT SUCH WAIVER AND RELEASE INCLUDES STATUTORY AS WELL AS "COMMON LAW" AND EQUITABLE RIGHTS AND REMEDIES AND THAT IT COVERS POTENTIAL CLAIMS OF WHICH PURCHASER MAY BE CURRENTLY UNAWARE OR UNABLE TO DISCOVER. PURCHASER ACKNOWLEDGES THAT THE FOREGOING WAIVER AND RELEASE IS OF MATERIAL CONSIDERATION TO SELLER IN ENTERING INTO THIS AGREEMENT, THAT PURCHASER'S COUNSEL HAS ADVISED PURCHASER OF THE POSSIBLE LEGAL CONSEQUENCES OF MAKING SUCH WAIVER AND RELEASE AND THAT PURCHASER HAS TAKEN INTO ACCOUNT, IN AGREEING TO PURCHASE THE PROPERTY AT THE PURCHASE PRICE SPECIFIED HEREIN, SELLER'S DISCLAIMER OF ANY WARRANTIES AND REPRESENTATIONS REGARDING THE RESORT OTHER THAN THE SELLER REPRESENTATIONS. NOTHING HEREIN, HOWEVER, SHALL RELEASE SELLER FROM ANY LIABILITY TO ANY THIRD PARTY WITH RESPECT TO MATTERS THAT ACCRUED DURING SELLER'S PERIOD OF OWNERSHIP AND PRIOR TO THE SALE OF THE RESORT TO PURCHASER (EXCEPT TO THE EXTENT EXPRESSLY ASSUMED BY PURCHASER PURSUANT TO THIS AGREEMENT OR ANY LIABILITY FOR WHICH PURCHASER RECEIVED A CREDIT AT CLOSING), NOR IN CONNECTION WITH ANY FRAUD BY SELLER OR ANY OTHER SELLER INDEMNITEES OR, SUBJECT TO THE TERMS OF THIS AGREEMENT. PURCHASER FURTHER AGREES AND ACKNOWLEDGES THAT, IN GIVING THE FOREGOING WAIVER AND RELEASE, IT HAS WITH ITS LEGAL COUNSEL, CONSIDERED ANY STATUTE OR OTHER LAW THAT MIGHT APPLY TO AND LIMIT THE EFFECT OF PURCHASER'S WAIVER AND RELEASE HEREIN AND HEREBY KNOWINGLY WAIVES THE BENEFITS OF ANY SUCH LAW AND INTENDS THAT IT NOT BE APPLICABLE HERE.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3Purchaser expressly acknowledges and agrees that all of the foregoing representations, warranties, acknowledgments, releases and waivers (1) have been made to induce seller to enter into this agreement and consummate the transactions described herein, (2) shall be deemed made as of both the Effective Date and as of Closing Date, and (3) shall survive the Closing and not be merged therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4PURCHASER FURTHER DECLARES AND ACKNOWLEDGES THAT THE FOREGOING WAIVERS HAVE BEEN BROUGHT TO THE ATTENTION OF PURCHASER AND REVIEWED WITH LEGAL COUNSEL OF ITS CHOOSING (INCLUDING ANY STATUTE OR OTHER LAW THAT MIGHT APPLY TO AND LIMIT THE EFFECT OF PURCHASER'S WAIVER AND RELEASE HEREIN) AND EXPLAINED TO PURCHASER IN DETAIL BY SUCH LEGAL COUNSEL AND THAT PURCHASER HAS VOLUNTARILY AND KNOWINGLY CONSENTED TO THE FOREGOING WAIVER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.5This <u>Section 6.1</u> shall survive the Closing and shall not be deemed merged into the Deeds or any conveyance document delivered at Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2<u>Disclaimer of Seller Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1Purchaser represents that by reason of its business and financial experience, and the business and financial experience of those persons retained by Purchaser to advise it with respect to its investment in the Property, Purchaser has sufficient knowledge, sophistication and experience in business and financial matters to evaluate the merits and risks of the prospective investment and is able to bear the economic risk of such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2Purchaser acknowledges and agrees that it has, with the assistance of such experts as Purchaser has deemed appropriate, made its own independent investigations and studies, including without limitation, a physical and environmental inspection, with respect to the Property, the Business and all aspects thereof, including without limitation hazardous materials and endangered species, and it will be relying entirely thereon and on the advice of its counsel, advisers and consultants concerning the Property and the Business. Purchaser is not relying and shall not rely on any investigation, study, projection or other information, economic, physical, environmental or otherwise (other than the Seller Representations solely with regard to <u>Section 10.2.1(b)</u>), prepared by Seller or any Seller Indemnitees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3Purchaser acknowledges that Seller makes no representation whether or not the Title Company will issue a title insurance policy at the Closing in any particular form or whether or not the Title Company will raise any additional exceptions to title at any time, omit any exceptions to title or issue any endorsements to the title insurance policy to be issued at the Closing, regardless of any information contained in the Commitment or otherwise disseminated prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.4Purchaser acknowledges and agrees that it has, with the assistance of such experts as Purchaser has deemed appropriate, reviewed all instruments, records and documents concerning the Property and the Business which Purchaser deems appropriate or advisable to review in connection with the purchase of the Property and the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.5Purchaser acknowledges and agrees that it has, with the assistance of such experts as Purchaser has deemed appropriate, examined and investigated the status of all circumstances concerning the zoning, land use controls, required permits, building code compliance, environmental, hazardous material and endangered species regulations and condition and other matters with respect to the Property and the Business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.6Purchaser acknowledges and agrees that it has, with the assistance of such experts as Purchaser has deemed appropriate, determined the assignability of any documents or agreements to be assigned hereunder as part of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3<u>Survival</u>. This <u>Article 6</u> shall survive the Closing as well as the termination of this Agreement.

**ARTICLE 7<br>REPRESENTATIONS AND WARRANTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1<u>Seller's Representations and Warranties</u>. To induce Purchaser to enter into this Agreement and to consummate the transaction described herein, Seller hereby makes the representations and warranties in this <u>Section 7.1</u> as of the Effective Date and as of the Closing Date (subject to and in accordance with <u>Section 10.2.1(b)</u>), upon which Seller acknowledges and agrees Purchaser is entitled to rely. Whenever a representation or warranty or other reference is made in this Agreement on the basis of the knowledge, actual knowledge, best knowledge or otherwise with reference to the knowledge of Seller (any such reference, "<u>Seller's Knowledge</u>"), such representation, warranty or reference is made solely on the basis of the actual, as distinguished from implied, imputed and constructive, knowledge, on the date that such representation or warranty is made, of Stuart Turner and Justin Epps ("<u>Seller's Representative</u>"), who, Seller represents and warrants to Purchaser, are knowledgeable of Seller, the Business, the Resort, and the Property, in each case, on behalf of Seller and its investors, without inquiry or investigation or duty; <u>provided</u>, that with respect to the representations and warranties in <u>Section 7.1.5</u> through <u>7.1.10</u> and <u>Section 7.1.14</u> though <u>Section 7.1.20</u>, such Seller Representative shall make reasonable inquiry of the general manager of the Resort; <u>provided</u>, that if such Seller Representative makes such reasonable inquiry and the general manager of the Resort does not respond, fails to provide information, or is otherwise unavailable within a reasonable period of time, such Seller Representative shall be deemed to have satisfied its duty of inquiry for purposes of this <u>Section 7.1</u>; <u>provided</u>, <u>further</u>, that Seller's Representative shall have no personal liability whatsoever with respect to any such representation, warranty or otherwise under this Agreement. In addition to the foregoing, the representations and warranties of Seller herein shall be deemed modified to reflect: (a) the actual knowledge of the Purchaser's Knowledge Party (as defined in <u>Section 7.2</u>); (b) any written engineering report, appraisal, property condition report, environmental report, memorandum, abstract, summary or other similar written report received by Purchaser with respect to the Property or portion thereof which has been prepared by a third-party consultant or adviser engaged by Purchaser, and (c) information disclosed by any documents, agreements, reports, studies, statements, correspondence, memoranda and any other files posted to the due diligence websites maintained at: [\*\*\*] and [\*\*\*] (collectively, the "<u>Data Room</u>") that are posted on or before February 19, 2026 (collectively <u>clauses (a)</u>, <u>(b)</u> and <u>(c)</u> are referred to herein as "<u>Purchaser's Knowledge</u>" or "<u>Knowledge of Purchaser</u>" or words of similar import).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1<u>Organization and Power</u>. Seller is duly formed, validly existing, in good standing in the jurisdiction of its formation, and is qualified to do business and is in good standing in the jurisdiction in which the Property is located, and has all requisite power and authority to own the Property and conduct the Business as currently owned and conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2<u>Authority and Binding Obligation</u>. (a) Seller has full power and authority, subject to the consents and approvals referenced in <u>Section 7.1.3</u>, to execute and deliver this Agreement and all other documents to be executed and delivered by such Seller pursuant to this Agreement (collectively, the "<u>Seller Documents</u>"), and to perform all obligations of such Seller under each of the Seller Documents; (b) the execution and delivery by the signer on behalf of Seller of the Seller Documents, and the performance by Seller of its obligations under the Seller Documents, has been duly and validly authorized by all necessary action by Seller; and (c) the Seller Documents, when executed and delivered, will constitute the legal, valid and binding obligations of Seller and enforceable against Seller in accordance with their terms.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.3<u>Consents and Approvals; No Conflicts</u>. Except for the approval of the appropriate Governmental Authorities in connection with the transfer of the Licenses and Permits, the recordation of the Seller Documents, as may be required with respect to the Assumed Property Agreements, and the consent of Manager in accordance with the Marriott Lease Agreement, (i) to Seller's Knowledge, no filing with, and no permit, authorization, consent or approval of, any Governmental Authority or other Person is necessary for execution or delivery by Seller of the Seller Documents, or the performance by Seller of any of its obligations under any of the Seller Documents, or the consummation by Seller of the transactions described in this Agreement; and (ii) neither the execution and delivery by Seller of the Seller Documents, nor the performance by Seller of any of its obligations under any Seller Documents, nor the consummation by Seller of the transactions described in this Agreement will (1) violate any provision of Seller's organizational or governing documents (2) to Seller's Knowledge, violate any Applicable Law to which Seller or the Property is subject, or (3) result in a material violation or breach of or constitute a default under any contract, agreement or other instrument or obligation to which Seller is a party. Notwithstanding the foregoing, Purchaser acknowledges that (i) the Investment Committee and Board of Directors of Seller's parent company have not yet approved the sale of the Property contemplated by this Agreement provided that if evidence of such approval is not provided (which evidence may be provided by email) to Purchaser within ten (10) days following the Effective Date, Purchaser shall have the right to terminate this Agreement by written notice to Seller within three (3) Business Days following the expiration of such 10-day period and if such approval is not obtained, either Purchaser or Seller shall have the right to terminate this Agreement within three (3) Business Days following Seller's notice to Purchaser of such disapproval (and in connection with such termination the Deposit shall be promptly returned to Purchaser and Seller shall reimburse for Purchaser's actual out-of-pocket costs or expenses incurred in connection with this Agreement, in an amount not to exceed One Million Dollars ($1,000,000)), (ii) no party to any of the Operating Agreements has yet given any approval required under any such document for the sale of the Property to, or the assumption of such document by, Purchaser, and (iii) certain Licenses and Permits and Operating Agreements may not be transferrable (and the representations and warranties in this paragraph are hereby qualified to reflect such facts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.4<u>Title to Personal Property</u>. Seller has good and valid title to all tangible Personal Property that is not owned by Manager pursuant to the Marriott Lease Agreement, which shall be free and clear of all liens and encumbrances as of the Closing except for the Equipment Leases (which shall be subject only to the ownership interest of the lessor thereunder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.5<u>Condemnation</u>. Seller has not received any written notice of any pending or threatened condemnation or other proceeding in eminent domain affecting the Property or any portion thereof, and to Seller's Knowledge, no condemnation proceeding or eminent domain proceeding is pending or threatened affecting the Property or any portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.6<u>Litigation</u>. Except as set forth on <u>Schedule 7.1.6</u>, Seller has not received written notice of (and Seller has no Knowledge of) any (i) court filing in any litigation with respect to the Resort, the Property and/or in which Seller is named a party which has not been settled or dismissed, (ii) charge, grievance or complaint from any Governmental Authority, or other Person pursuant to any administrative, arbitration or similar adjudicatory proceeding in which Seller is a named party and/or with respect to the Resort and/or the Property which has not been settled or dismissed, or (iii) pending or threatened in writing, action, suit or proceeding, claim, grievance, unfair labor practice charge, administrative, arbitration or other proceeding or governmental investigation against or affecting Seller or the Property before or by any federal or state court, commission, regulatory body, arbitration authority, administrative agency, domestic or foreign, at law or in equity, or before any Governmental Authority (other than any matter set forth in <u>clause (i)</u>, <u>clause (ii)</u>, or <u>clause (iii)</u> above which would not materially and adversely

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affect the ownership, operation or value of the Property or the Hotel from and after the Closing, and for which Purchaser would not have any liability, from and after the Closing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.7<u>Employees</u>. Seller does not have, and has not had within the last two (2) years, any Employees. With respect to the Property and the Business, neither Seller nor, to Seller's Knowledge, the Manager or the Property is or has been subject to any employment, labor, or compensation agreements with any Employees or any labor union.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.8<u>Licenses and Permits</u>. To Seller's Knowledge, all Licenses and Permits with respect to the Property are in full force and effect and no material default exists thereunder. Seller has uploaded to the Data Room true, correct, and complete copies of the Licenses and Permits in its possession. Seller has not received any written notice from any Governmental Authority or other Person of any violation, suspension, revocation or non-renewal of any Licenses and Permits with respect to the Property that has not been cured or dismissed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.9<u>Operating Agreements and Equipment Leases</u>. To Seller's Knowledge, <u>Schedule 2.1.8</u> attached hereto sets forth a true, correct, and complete list of all Operating Agreements and Equipment Leases; <u>provided</u>, <u>however</u>, if Seller has inadvertently omitted an Operating Agreement or Equipment Lease from <u>Schedule 2.1.8</u>, Purchaser hereby acknowledges and agrees that it shall not have any right to terminate this Agreement pursuant to the terms hereof, but shall not be obligated to assume such Operating Agreement or Equipment Lease unless such Operating Agreement or Equipment Lease is terminable on sixty (60) or less days' notice without payment of any penalty or termination fee. Seller has made available to Purchaser in the Data Room true, correct, and complete copies of all Operating Agreements and Equipment Leases. To Seller's Knowledge, (a) all Operating Agreements and Equipment Leases are in full force and effect, (b) neither Seller nor Manager has given or received any written notice of any default under any Operating Agreements and Equipment Leases which has not been fully cured, and (c) there are no material defaults under the Operating Agreements or Equipment Leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.10<u>Marriott Lease Agreement; Marriott ROFO Waiver Letter</u>. Seller has made available to Purchaser in the Data Room a true, correct, and complete copy of the Marriott Lease Agreement (other than Exhibit A to that certain Letter Agreement (Renovation Completion Schedule) dated as of December 13, 2018). Except as set forth in the definition of Marriott Lease Agreement (and, for the avoidance of doubt, excluding the Landlord Investment Amendment), the Marriott Lease Agreement has not been supplemented, amended or modified. The Marriott Lease Agreement is in full force and effect, and Seller has not received or delivered any default notices under the Marriott Lease Agreement that have not been fully cured or waived. Neither Seller nor, to Seller's Knowledge, Manager is in default under the Marriott Lease Agreement, and to Seller's Knowledge, no event has occurred which, with the giving of notice or passage of time or both, would constitute a default thereunder. Seller has made available to Purchaser in the Data Room a true, correct, and complete copy of the Marriott ROFO Waiver Letter. Except as set forth in the definition of Marriott ROFO Waiver Letter, the Marriott ROFO Waiver Letter has not been amended or modified. The Marriott ROFO Waiver Letter is in full force and effect in accordance with its terms. There are no franchise, brand, license, or management agreements with respect to the Resort other than the Marriott Lease Agreement. The balance of the Repairs and Equipment Escrow (as defined in the Marriott Lease Agreement) as of the date set forth on <u>Schedule 1.1</u> is accurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.11<u>Bankruptcy</u>. Seller has not made any general assignment for the benefit of creditors, become insolvent or filed a petition for voluntary bankruptcy or filed a petition or answer seeking reorganization or an arrangement or composition, extension or readjustment of its indebtedness or consented, in any creditors' proceeding, to the appointment of a receiver or trustee of Seller or the Property or any part thereof of either of them or been named in an

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involuntary bankruptcy proceeding and to Seller's Knowledge, no such actions are contemplated or have been threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.12<u>Foreign Person</u>. Seller (or, if Seller is a disregarded entity for U.S. federal income tax purposes, the regarded owner of Seller for U.S. federal income tax purposes) is not a foreign person within the meaning of Section 1445(f) of the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.13<u>OFAC</u>. Neither Seller, nor to Seller's Knowledge, any of Seller's respective officers, directors, shareholders, partners, members or associates, and no other direct or indirect holder of more than a twenty percent (20%) (as to U.S. Persons) or a ten percent (10%) (as to non-U.S. Persons) equity interest in Seller is an entity or person: (a) that is listed in the Annex to, or is otherwise subject to, the provisions of the Executive Order No. 13224; (b) whose name appears on the most current list of "Specifically Designated National and Blocked Persons" produced by the Office of Foreign Assets Control ("<u>OFAC</u>") (which list may be published from time to time in various mediums including, but not limited to, the OFAC website, www.treas.gov/ofac) or other banned or blocked person; (c) who commits, threatens to commit or supports "terrorism" (as such term is defined in said Executive Order); or (d) who is otherwise affiliated with any entity or person listed above (any such person, group, entity or nation being hereinafter referred to as a "<u>Prohibited Person</u>"). No person, group or entity which Seller controls, directly or indirectly, has conducted or will conduct business nor has engaged nor will engage in any transaction or dealing with any Prohibited Person in violation of the U.S. Patriot Act or any OFAC rules or regulations, including without limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of a Prohibited Person in violation of any OFAC rule or regulation. Seller is not engaging in the transactions contemplated hereunder, directly or indirectly, in violation so any laws relating to drug trafficking, money laundering or predicate crimes to money laundering. None of the funds of Seller have been or will be derived from any unlawful activity with the result that the investment of direct or indirect equity owners in Seller is prohibited by law or that the transactions contemplated hereunder or this Agreement are or will be in violation of law. To Seller's Knowledge, Seller has complied, and will continue to comply, with all Applicable Laws, including, without limitation, the Anti-Corruption Laws and the Anti-Money Laundering Laws. Seller has not, and agrees that it shall not, in connection with the transactions contemplated by this Agreement, or in connection with any other business transactions involving Purchaser or its subsidiaries, make any payment, transfer anything of value, or offer anything of value, directly or indirectly: (i) any governmental official or employee (including employees of a government corporation or public international organization) or to any political party or candidate for public office or (ii) to any other person or entity if such payments or transfers would violate the laws of the country in which made, the laws of the United States, the UK, or the European Union, including the trade programs enforced by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.14<u>Environmental Notices</u>. Neither Seller nor, to Seller's Knowledge, Manager has received any written notice that the Property is in violation of any Environmental Laws, which violation has not been corrected as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.15<u>Leases</u>. Except for (a) the Marriott Lease Agreement and (b) the Verizon Lease, the FedEx Lease, and the MVCI Agreement (collectively, the Verizon Lease, the FedEx Lease and MVCI Agreement are referred to herein as the "<u>Seller Space Agreements</u>"), Seller is not a party to any Space Leases, leases or licenses which provide for the use and occupancy of space or facilities at the Resort. To Seller's Knowledge, there is no Space Lease (other than the Seller Space Agreements) the term of which will continue from and after the expiration or earlier termination of the Marriott Lease Agreement. To Seller's Knowledge, (i) Seller has provided to Purchaser or uploaded to the Data Room true, correct, and complete copies of the Seller Space Agreements, (ii) the Seller Space Agreements are in full force and effect, (iii) neither Seller nor Manager has given or received any written notice of any default under any Seller Space

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Agreement which has not been fully cured, and (iv) there are no existing material defaults under the Seller Space Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.16<u>Capital Improvements</u>. Except as included on <u>Schedule 7.1.16</u> (the "<u>Ongoing Capital Expenditures</u>"), and subject to any changes in scope to the Ongoing Capital Expenditures after the Effective Date effectuated in accordance with <u>Section 8.4.1</u>, there are currently no ongoing capital improvements or capital repairs at the Property (collectively, "<u>Capital Expenditures</u>"). Seller has uploaded to the Data Room true, correct, and complete copies of all Operating Agreements with respect to the Ongoing Capital Expenditures in its possession (together with any Operating Agreements related to Capital Expenditures entered after the Effective Date, collectively, the "<u>Construction Contracts</u>"). To Seller's Knowledge, (a) all Construction Contracts are in full force and effect, (b) Seller has not given or received any written notice of any default under any Construction Contract which has not been cured, and (c) there are no material defaults under the Construction Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.17<u>No Violations</u>. Except as described on <u>Schedule 7.1.17</u>, to Seller's Knowledge, neither Seller nor Manager has received any written notice from any governmental authority of any violation of an Applicable Law (including, without limitation, any Environmental Laws) which would have a Material Adverse Effect on the value or operation of the Resort, and which has not been corrected or cured as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.18<u>Financial Statements</u>. Seller has made available to Purchaser in the Data Room true, correct, and complete copies (in all material respects) of the financial statements and budgets (if any) prepared by Manager and used in Seller's ordinary course of business for the following periods: (a) January 2023 through December 2025 and (b) year-to-date statements through the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.19<u>Golf Club Documents</u>. To Seller's Knowledge, Seller has provided to Purchaser in the Data Room true, correct, and complete copies (in all material respects) of the Golf Club Membership Loan Documents and the Golf Club Membership Documents. To Seller's Knowledge, the Golf Club Membership Documents reflect the material rights, privileges and obligations associated with Golf Club membership. To Seller's Knowledge, the Golf Club Membership Loan Documents are in full force and effect. Except as set forth on <u>Schedule 7.1.19(A)</u>, Seller has not received or given any written notice of a default pursuant to any of the Golf Club Membership Loan Documents that has not been cured and could reasonably be expected to materially and adversely affect the use, value or operation of the Golf Club. <u>Schedule 7.1.19(B)</u> attached hereto sets forth a true and correct schedule of Golf Club initiation fees paid by each Golf Club member and the refundable and non-refundable portions thereof. Initiation fee refunds payable to Golf Club members prior to January 31, 2026, have been paid in full to such Golf Club members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.20<u>Tax Appeals</u>. Except as described on <u>Schedule 7.1.20</u>, Seller is not currently contesting any real property taxes payable with respect to the Property or seeking an abatement of any such real property taxes. To Seller's Knowledge, (i) all Tax returns required to be filed by Seller (or Manager on behalf of Seller) with respect to the Resort or the Business have been or will be filed prior to delinquency in accordance with all Applicable Laws and (ii) all Taxes shown on such Tax returns (or required to be shown on such Tax returns) with respect to the Resort or the Business or which are otherwise due and payable have been or will be fully paid prior to delinquency or have been accrued for on Sellers' financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.21<u>Lanai Tower Work</u>. Seller does not have any remaining obligations or liabilities under the Settlement Agreement. To Seller's Knowledge, Seller has not received any material written notice from any Governmental Authority during the twelve (12) month period

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preceding the Effective Date with respect to any material water intrusion of the building envelope of the so-called Lanai Tower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.22<u>No Options.</u> Other than as set forth in Section 19.01 of the Marriott Lease Agreement, Seller has not granted any option, right of first refusal, right of first offer, or other similar right with respect to the purchase, acquisition, or leasing of the Property, any portion thereof, or any interest therein (other than this Agreement) that remains effective as of the Effective Date and, to Seller's Knowledge, except as set forth in the Marriott Lease Agreement, no such other unexpired rights exist in favor of any person to Purchase the Property or any portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.23<u>Occasional Sales of FF&E</u>. Seller has not conducted two or more sales of FF&E items in the twelve (12) months prior to the Closing Date. To Seller's Knowledge, either Seller paid or Manager paid on Seller's behalf applicable Florida sales and use tax when it acquired the FF&E. Seller has not engaged the services of a broker to sell the FF&E.

Notwithstanding the foregoing, if, after the Effective Date, Purchaser obtains actual knowledge (as described in the opening paragraph of this <u>Section 7.1</u>) of a breach of any representation or warranty made by Seller in this Agreement prior to the Closing, and Purchaser nevertheless elects to proceed to Closing, such representation or warranty by Seller shall be deemed to be qualified or modified to reflect Purchaser's Knowledge of such breach; <u>provided</u>, <u>however</u>, such knowledge will not relieve Seller of any liability for any Fraud or resulting from an intentional or knowing breach by Seller when it made the representations and warranties contained in this <u>Section 7.1</u>. The provisions of this <u>Section 7.1</u> shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2<u>Purchaser's Representations and Warranties</u>. To induce Seller to enter into this Agreement and to consummate the transactions described in this Agreement, Purchaser hereby makes the representations and warranties in this <u>Section 7.2</u> as of the Effective Date and the date which Closing occurs, upon which Purchaser acknowledges and agrees Seller is entitled to rely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.1<u>Organization and Power</u>. Purchaser is duly incorporated or formed (as the case may be), validly existing and in good standing, under the laws of the State of its formation or incorporation and is qualified to do business and in good standing under the laws of the jurisdiction in which the Property is located and has all requisite power and authority carry on its business as currently being conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.2<u>Authority and Binding Obligation</u>. (a) Purchaser has full power and authority to execute and deliver this Agreement and all other documents to be executed and delivered by Purchaser pursuant to this Agreement (the "<u>Purchaser Documents</u>"), and to perform all obligations of Purchaser arising under the Purchaser Documents; (b) the execution and delivery by the signer on behalf of Purchaser of the Purchaser Documents, and the performance by Purchaser of its obligations under the Purchaser Documents, has been duly and validly authorized by all necessary action by Purchaser; and (c) the Purchaser Documents, when executed and delivered, will constitute the legal, valid and binding obligations of Purchaser enforceable against Purchaser in accordance with their terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.3<u>Consents and Approvals; No Conflicts</u>. To Purchaser's knowledge: (a) no filing with, and no permit, authorization, consent or approval of, any Governmental Authority or other Person is necessary for the execution or delivery by Purchaser of the Purchaser Documents, the performance by Purchaser of its obligations under the Purchaser Documents, or the consummation by Purchaser of the transactions described in this Agreement ; and (b) neither the execution and delivery by Purchaser of Purchaser Documents, nor the performance by Purchaser of its obligations under Purchaser Documents, nor the consummation by Purchaser of the

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transactions described in this Agreement, will (1) violate any provision of the organizational or governing documents of Purchaser, (2) violate any Applicable Law to which Purchaser is subject, or (3) result in a violation or breach of or constitute a default under any contract, agreement or other instrument or obligation to which Purchaser is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.4<u>Intentionally Omitted</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.5<u>No Violation of Anti-Terrorism Laws</u>. None of Purchaser's property or interests is subject to being "blocked" under any Anti-Terrorism Laws, and neither Purchaser nor any Person holding any direct or indirect interest in Purchaser is in violation of any Anti-Terrorism Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.6<u>No Financing Contingency</u>. It is expressly acknowledged by Purchaser that this transaction is not subject to any financing contingency, and no financing for this transaction shall be provided by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.7<u>OFAC</u>. Neither Purchaser, nor to Purchaser's knowledge, any of Purchaser's respective officers, directors, shareholders, partners, members or associates, and no other direct or indirect holder of any equity interest in Purchaser, is an entity or person: (a) that is listed in the Annex to, or is otherwise subject to, the provisions of the Executive Order No. 13224; (b) whose name appears on the most current list of "Specifically Designated National and Blocked Persons" produced by OFAC (which list may be published from time to time in various mediums including, but not limited to, the OFAC website, www.treas.gov/ofac); (c) who commits, threatens to commit or supports "terrorism" (as such term is defined in said Executive Order); or (d) who is otherwise affiliated with any entity or person listed above. None of the funds used or to be used by Purchaser in connection with the transactions contemplated by this Agreement (i) are from, involved with or relate in any way to proceeds of any unlawful activity or (ii) will be or have been transferred from a place outside of the United States of America and are from, involved with or relate in any way to proceeds of any unlawful activity. The transactions contemplated by this Agreement are not designed for the purpose of concealing funds or avoiding any applicable reporting requirements. Any and all information regarding Purchaser and its source(s) of funds provided to Seller is true, correct and complete in all material respects and not misleading. Purchaser is not engaging in the transactions contemplated hereunder, directly or indirectly, in violation so any laws relating to drug trafficking, money laundering or predicate crimes to money laundering. None of the funds of Purchaser have been or will be derived from any unlawful activity with the result that the investment of direct or indirect equity owners in Purchaser is prohibited by law or that the transactions contemplated hereunder or this Agreement are or will be in violation of law. To Purchaser's Knowledge, Purchaser has complied, and will continue to comply, with all Applicable Laws, including, without limitation, the Anti-Corruption Laws and the Anti-Money Laundering Laws. Purchaser has not, and agrees that it shall not, in connection with the transactions contemplated by this Agreement, or in connection with any other business transactions involving Purchaser or its subsidiaries, make any payment, transfer anything of value, or offer anything of value, directly or indirectly: (i) any governmental official or employee (including employees of a government corporation or public international organization) or to any political party or candidate for public office or (ii) to any other person or entity if such payments or transfers would violate the laws of the country in which made, the laws of the United States, the UK, or the European Union, including the trade programs enforced by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.8<u>ERISA</u>. Purchaser does not hold the "plan assets" of any employee benefit plan or other plan within the meaning of 29 C.F.R. 2510.3-101, as modified by Section 3(42) of the Employee Retirement Income Security Act of 1974, as amended.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.9<u>Lanai Tower Work</u>. Purchaser acknowledges and agrees that, prior to the Effective Date, Seller disclosed to Purchaser and provided to Purchaser various background information, studies, reports and budgets with respect to the Lanai Tower Work and Purchaser had, prior to the Effective Date, adequate time and opportunity to review and assess the potential work, repairs, remediation and/or reinstallation that could be required, needed or recommended with respect to the Lanai Tower and the potential costs of the Lanai Tower Work. Purchaser acknowledges and agrees that, (i) Seller is not under any obligation to complete the Lanai Tower Work, (ii) from and after the Closing Date, Purchaser shall be solely responsible for, at its sole cost and expense, all work associated with the design, preparation, permitting, construction, renovation and completion of the Lanai Tower Work and (iii) Purchaser shall not be entitled to any credit or offset at Closing or otherwise in connection with any component of the Lanai Tower Work.

Notwithstanding the foregoing, if Seller has actual knowledge prior to the Closing of a breach of any representation or warranty made by Purchaser in this Agreement and Seller nevertheless elects to proceed to Closing, such representation or warranty by Purchaser shall be deemed to be qualified or modified to reflect Seller's Knowledge of such breach; <u>provided</u>, <u>however</u>, such knowledge will not relieve Purchaser of an intentional or knowing breach when made of any of its representations and warranties contained in this Agreement.

Whenever a representation or warranty or other reference is made in this Agreement on the basis of the knowledge, actual knowledge, best knowledge or otherwise with reference to the knowledge of Purchaser (any such reference "Purchaser's Knowledge" or "Knowledge of Purchaser" or words of similar import), such representation, warranty or reference is made solely on the basis of the actual, as distinguished from implied, imputed and constructive, knowledge on the date that such representation, warranty or statement is made, of Sean Hehir and Cory Perlstein (individually and collectively, the "<u>Purchaser's Knowledge Party</u>") (<u>provided</u>, that in no event shall such person have any personal liability arising under this Agreement), without any duty of inquiry or investigation or any other duty, other than ordinary course due diligence with respect to the Property that would be undertaken by an institutional real estate investor for a similar project.

**ARTICLE 8<br>COVENANTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1<u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1<u>Disclosure of Confidential Information</u>. Prior to Closing, except as otherwise indicated in <u>Section 8.1.2)</u>, Seller and Purchaser shall keep confidential and not make any public announcement or disclose to any Person the existence or any terms of this Agreement or any information disclosed by the Inspections, the Seller Due Diligence Materials, all studies, reports and assessments prepared by any Person for or on behalf of Purchaser (other than any internal studies, reports and assessments prepared by any of Purchaser's employees, attorneys or accountants) in connection with the Inspections or any other documents, materials, data or other information with respect to the Property or the Business which is not generally known to the public (the "<u>Confidential Information</u>"). Notwithstanding the foregoing, Seller and Purchaser shall be permitted to (a) disclose any Confidential Information to the extent required under Applicable Law or court order; and (b) disclose any Confidential Information to any Person on a "need to know" basis, such as their respective shareholders, members, partners, trustees, beneficiaries, directors, officers, employees, attorneys, consultants, engineers, surveyors, lenders,

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investors, managers and such other Persons whose assistance is required to consummate the transactions described in this Agreement; provided, however, that Seller or Purchaser, as the case may be, shall (1) advise such Person of the confidential nature of such Confidential Information, and (2) use commercially reasonable efforts to cause such Person to maintain the confidentiality of the Confidential Information. Confidential information shall not include information and material which (i) becomes generally available to the public other than as a result of a disclosure prohibited by this <u>Section 8.1.1</u>, (ii) is known to Purchaser or Seller, as the case may be, on a non-confidential basis, prior to its receipt of such information and material from the other, or (iii) becomes available to Purchaser or Seller, as the case may be, on a non-confidential basis from a source other than the other which is not prohibited from disclosing the same. This <u>Section 8.1.1</u> shall survive the Closing or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2<u>Public Announcements</u>. Without limiting the generality of the provisions in <u>Section 8.1.1</u> hereof, a Party shall have the right, at or following the Closing, to make a public announcement regarding the transaction described in this Agreement, provided that Purchaser and Seller shall approve the form and substance of any such public announcement, which approval shall not be unreasonably withheld or delayed, except if a Party is required to make a public announcement under Applicable Law, in which case no such approval by any other Party shall be required. This <u>Section 8.1.2</u> shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2<u>Conduct of the Business</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.1<u>Operation in Ordinary Course of Business</u>. From and after the Effective Date until the Closing, subject to Manager's rights and discretion under the Marriott Lease Agreement, Seller shall use commercially reasonable efforts to conduct (or, where applicable, to cause Manager to conduct) the Business in the Ordinary Course of Business and in compliance with the Marriott Lease Agreement; <u>provided</u>, <u>however</u>, that Purchaser acknowledges that Manager has broad discretion and control with respect to the operation of the Business pursuant to the Marriott Lease Agreement. Seller shall comply in all material respects with Seller's obligations under the Marriott Lease Agreement. Seller shall pay or cause to be paid (subject to legal rights of appeal and protest) all Taxes that are payable by Seller (as opposed to Manager) when due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.2<u>Contracts</u>. Except with respect to Construction Contracts, which are governed by <u>Section 8.4</u>, until the Closing, subject to the rights of Manager under the Marriott Lease Agreement to act without Seller's prior approval, Seller shall not, without Purchaser's prior written consent, which consent shall be in Purchaser's sole discretion, (a) amend, extend, renew or terminate any Material Contracts or the Licenses and Permits except in the Ordinary Course of Business; or (b) enter into any new Material Contracts, unless the new Material Contracts are terminable by Seller, at no cost or expense to Purchaser, at or before the Closing; provided that, Purchaser will be deemed to have approved any such consent requested in writing by Seller if Purchaser does not respond to such written request within five (5) Business Days following Purchaser's receipt thereof. Notwithstanding anything to the contrary contained herein, with respect to Assigned Operating Agreements, at least thirty (30) days prior to the Closing Date, Purchaser will advise Seller in writing if there are any Assigned Operating Agreements it wants Seller to terminate on its behalf; <u>provided</u>, <u>however</u>, that Seller shall have no obligation to terminate any Material Contracts unless (a) such Material Contract expressly provides and permits for the termination thereof for any reason or no reason and (b) in connection with any such termination of a Material Contract, Purchaser agrees to assume any and all costs and expenses, including, without limitation any termination fee or liquidated damages payment, related to the termination of any such Material Contracts. Promptly following the Effective Date, Seller shall deliver notices of termination of all of those Assigned Operating Agreements that Purchaser requested be terminated prior to the Effective Date, it being understood and agreed that notwithstanding the delivery of a termination notice by Seller,

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Purchaser shall assume any such Assigned Operating Agreement for which the effective date of such termination does not occur until after the Closing Date (it being understood and agreed that in no event shall the termination of any Assigned Operating Agreement for which Purchaser has requested termination constitute a condition to Purchaser's obligation to consummate the transactions contemplated herein). In no event shall any Assigned Operating Agreement for which Purchaser has requested termination by Seller (and has a right to cause Seller to terminate) pursuant to this <u>Section 8.2.2</u> constitute an Assumed Property Agreement for any purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.3<u>Licenses and Permits; Warranties</u>. Subject to the rights of Manager under the Marriott Lease Agreement to act without Seller's prior approval, Seller shall not enter into, amend, modify, terminate or rescind any material Licenses and Permits or the Liquor License without Purchaser's prior written consent, which consent shall not be unreasonably withheld or conditioned; <u>provided</u>, that Purchaser will be deemed to have approved any such consent requested in writing by Seller if Purchaser does not respond to such written request within five (5) Business Days following Purchaser's receipt thereof. Except as otherwise set forth herein, Purchaser shall, at its cost and expense, be solely responsible for the transfer of all transferrable Licenses and Permits or the issuance of new licenses and permits, including, without limitation, the licenses and permits required for the sale and service of alcoholic beverages at the Property, if required (each a "<u>Liquor License</u>"). In furtherance of the foregoing, Purchaser shall submit all necessary applications and other materials to the appropriate Governmental Authority and take such other actions to effect the transfer of Licenses and Permits or issuance of new licenses and permits, including, without limitation, the Liquor Licenses, prior to, as of or immediately after, the Closing Date, and Seller shall use good faith efforts, at no cost or expense to itself (other than *de minimis* legal fees), or any cost or expense which Purchaser agrees, in writing, to reimburse, to reasonably cooperate with Purchaser (including, to the extent applicable, with respect to the maintenance of existing onsite Liquor Licenses) to cause the Licenses and Permits to be maintained (by the tenant or related parties under the Marriott Lease Agreement) or transferred, or new licenses and permits or interim licenses and permits to be issued to Purchaser. If this Agreement is terminated and Purchaser has filed an application or otherwise commenced the processing of obtaining new licenses and permits, Purchaser shall withdraw all such applications and cease all other activities with respect to such new licenses and permits, which obligation shall survive a termination of this Agreement. Seller shall use commercially reasonable efforts to transfer all Warranties to Purchaser at Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.4<u>Marriott Lease Agreement</u>. Except in connection with the Landlord Investment Amendments, Seller shall not enter into any amendment or modification to the Marriott Lease Agreement (including, without limitation, any waiver of a tenant obligation or a landlord right), terminate the Marriott Lease Agreement, or consent to or approve any matter which, pursuant to the Marriott Lease Agreement, requires landlord's consent or approval, in each case, without Purchaser's consent, which consent shall be in Purchaser's sole discretion (<u>provided</u>, that Purchaser shall not unreasonably withhold its consent if Seller is required to not unreasonably withhold its consent or approval pursuant to the Marriott Lease Agreement). Seller shall use commercially reasonable efforts to cause the Landlord Investment Amendment to be executed and delivered on or prior to the Closing Date. For the avoidance of doubt, Purchaser's consent shall not be required in connection with the Landlord Investment Amendment and, if such amendment is entered into prior to or after the Effective Date, Seller shall provide notice to Purchaser within five (5) Business Days after such amendment is effectuated and in any event at least two (2) Business Days prior to the Closing Date (it being acknowledged and agreed that if a Landlord Investment Amendment has not been executed and delivered as of the Closing Date, then the Parties shall reasonably cooperate to cause the execution and delivery thereof after the Closing, which obligation shall survive the Closing). If Seller shall request Purchaser's approval to any of the foregoing matters, Purchaser shall have five (5) Business Days from its receipt of

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such request to give Seller notice of its approval or disapproval of such matter. If Purchaser does not give such notice, such matter shall be deemed disapproved by Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.5<u>Golf Club Memberships</u>. From and after the Effective Date until the Closing, Seller may not amend Golf Club Membership Documents or issued Golf Club Memberships outside the Ordinary Course of Business or the Golf Club Membership Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.6<u>Material Notices</u>. Seller shall (a) deliver to Purchaser promptly after receipt thereof copies of all written material notices with respect to the Property or the Business and (b) promptly advise Purchaser of any actual or threatened condemnation or any litigation, arbitration proceeding, or administrative hearing, in each instance, of which Seller obtains knowledge, which would require disclosure on <u>Schedule 7.1.6</u> in order for the Seller Representation in <u>Section 7.1.6</u> to be true, correct, and complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3<u>Employees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.1<u>WARN Act</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>General</u>. Seller shall not, without the prior written consent of Purchaser, to the extent within Seller's control or discretion, permit the termination of any Employees which would reasonably give rise or otherwise trigger obligations under the WARN Act. To the extent from and after the Closing the Employees will not continue to be Employees of Manager, as a condition of Seller's obligations to proceed with the Closing, Purchaser agrees that it shall or shall cause its designated Affiliate to offer to hire or cause to be offered to be hired effective at and upon the Closing, and after the Closing shall maintain or cause to be maintained the employment of, in each case upon terms and conditions of employment substantially and sufficiently similar to the terms and conditions of employment existing prior to Closing, a sufficient number of Employees ("<u>Rehired Employees</u>") so that the Seller, its Affiliates or Manager shall not be required to give any layoff, closing or other termination notices or otherwise incur any liability pursuant to the provisions of the Federal Worker Adjustment and Retraining Notification Act, 29 U.S.C. 2101 2109, or any similar applicable federal, state or local law (collectively, the "<u>WARN Act</u>"). If Purchaser, or any designated Affiliate formed by Purchaser to employ Resort personnel, elects not to hire a particular Employee at Closing, or, if following the Closing, Purchaser or such designee desires to terminate the employment of any Rehired Employee hired by Purchaser or its designee, Purchaser shall be solely responsible for complying or causing compliance with all applicable provisions of federal, state and municipal laws and regulations relating to such action, including without limitation any applicable provisions of the WARN Act. Purchaser agrees to, and shall cause its designee to, honor and recognize the seniority and vacation vesting rights of any Rehired Employee that was an Employee of Manager as of the day immediately prior to the Closing and shall credit all Rehired Employees for vesting and eligibility purposes with respect to employee benefit plans provided by Purchaser or its designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Cooperation; Allocation of WARN Responsibility</u>. As between Seller and Purchaser, and without limiting Manager's obligations under the Marriott Lease Agreement, Seller shall be solely responsible for all obligations, liabilities, costs, penalties, and expenses arising under the WARN Act, if any, solely to the extent arising from events, decisions, or headcount reductions implemented by Seller occurring on or before Closing (including any "employment loss" as defined by the WARN Act that is triggered by or relates to actions taken by Seller or its Affiliates prior to Closing). Purchaser shall be responsible for WARN Act obligations, if any, solely to the extent arising directly and exclusively from Purchaser's post-Closing actions with respect to any Hotel or Resort employees, and subject to the limitations set forth in Section 8.3.3.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.2<u>Purchaser Acknowledgements; Indemnity</u>. Purchaser acknowledges that the personnel employed to manage, operate and work at the Resort are the employees of the Manager (or its Affiliate) and not of Seller. Purchaser acknowledges that certain information relating to the Employees may be or be deemed to be proprietary or may otherwise not be disclosed by Manager, including, but not limited to, insurance records, health records and employment and disciplinary history. Purchaser agrees that Purchaser shall at all times rely solely upon its own assessment of and information obtained from Employees to make its employment decisions with respect to each of them. Purchaser further agrees to indemnify and hold Seller, Seller's Affiliates, Seller's Indemnitees and Manager harmless from and against all Liabilities including, without limitation, those asserted by any Federal, state or local governmental or quasi-governmental agency, third party (including any union) or former or present Employee, including attorneys', consultants' and expert witness fees and expenses, including but not limited to any liability of Seller to Manager arising under the Marriott Lease Agreement, in each case, to the extent arising from or related to the conduct of any interview by Purchaser of any Employee and any related employment decision by Purchaser (but excluding, in each case, Seller's Employee Obligations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.3<u>Allocation of Liabilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The parties hereto agree that Purchaser will not be subject to any of the debts, obligations and/or Liabilities of Seller which may exist with respect to the employment or termination of any Employees (including any individual alleged to be an Employee for any reason including, but not limited to, allegations of joint employment, integrated enterprise, contractor liability, independent contractor misclassification) that arise and/or are attributable to the period prior to the Closing, or which are attributable to the termination of such workers by Seller or Manager at or prior to Closing (all of which amounts shall be paid and satisfied in full by Seller prior to Closing) ("<u>Seller's Employee Obligations</u>"), except to the extent that such debts, obligations and/or Liabilities are expressly covered by a credit against the Purchase Price specifically provided in this Agreement or the Closing Statement. The parties hereto agree that Seller and its Affiliates shall not be subject to any of the debts, obligations and/or Liabilities of Purchaser, or Purchaser's designated employer Affiliate or Manager, which are attributable to any actions or omissions of Purchaser or such designee, Manager or any agents or representatives thereof, in the process of the hiring any of the Employees in connection with, or following, the Closing, including, without limitation, any claims arising out of or relating to whether, and upon which terms and conditions, any such Employees are offered employment by Purchaser or such designee, or are hired (or subsequently terminated) by Purchaser or such designee, or which may otherwise exist regarding the employment of Employees at the Resort by Purchaser or such designee from and after the Closing ("<u>Purchaser's Employee Obligations</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)As between Seller and Purchaser, and without limiting Manager's obligations under the Marriott Lease Agreement, Seller shall retain and be solely responsible for all Liabilities arising out of or relating to the employment or engagement of any current or former employee, individual independent contractor, temporary worker, or consultant of Seller (or any Affiliate) to the extent such Liabilities arise from, relate to, or are based on facts, circumstances, acts, or omissions occurring prior to the Closing, including (i) misclassification of employees or independent contractors; (ii) unpaid wages, overtime, bonuses, commissions, or other compensation; (iii) employment taxes and withholdings; (iv) employee benefits and ERISA obligations; (v) discrimination, harassment, retaliation, wrongful termination, or similar claims; (vi) immigration compliance; (vii) leave, accommodation, or wage-and-hour violations; and (viii) penalties, interest, attorneys' fees, and costs related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.4<u>Purchaser's Indemnity</u>. Purchaser shall indemnify Seller and its Affiliates and hold each of them harmless from and against any Liabilities (including, but not limited to, payments made to any Affiliate of Purchaser or other designee as the employer of the

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Employees) which may be incurred or suffered by any of them (a) in connection with any of Purchaser's Employee Obligations or for which Purchaser receives a credit on the Closing Statement; (b) by reason of Purchaser's failure to comply with any of the provisions of this <u>Article 8</u>; (c) in connection with any Liability arising out of Purchaser's or its designee's or Manager's employment policies, practices or procedures following Closing; or (d) in connection with Purchaser's violation or noncompliance following Closing with any applicable federal or state employment law, including, without limitation, the Consolidated Omnibus Budget Reconciliation Act, the Health Insurance Portability and Accountability Act of 1996, ERISA, the Family and Medical Leave Act of 1993, the Fair Labor Standards Act, and the Occupational Safety and Health Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.5<u>Third Party Beneficiary Rights</u>. Without limiting the generality of any other provision of this Agreement, and subject to the terms of <u>Section 17.6</u>, nothing in this Agreement shall create any third-party beneficiary rights for the benefit of any union, any Employees or any other party. The indemnities under this <u>Article 8</u> apply, without limitation, to all forms of labor and/or employment claims under state, federal or local law, whether brought in judicial, administrative or other proceedings, private or public.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.6<u>Survival Period for Indemnities</u>. The representations, warranties, covenants, and indemnification obligations of the Parties set forth in this <u>Section 8.3</u> shall survive the Closing for a period of 24 months following the Closing Date, except that claims for fraud shall survive for the period specified in this Agreement. No Party shall have any liability for any claim not asserted by a written notice specifying in reasonable detail the basis of the claim delivered prior to the expiration of the applicable survival period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.7<u>Exclusive Remedy; Time Limitation</u>. Subject to <u>Section 8.3.6</u>, indemnification pursuant to this <u>Section 8.3</u> shall be the sole and exclusive remedy for any breach of this <u>Section 8.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4<u>Capital Expenditures; Zoning; Environmental Resource Permit</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.1Notwithstanding anything herein, Seller shall not (a) perform any Capital Expenditures except for (i) routine maintenance and repair work carried out in the Ordinary Course of Business and (ii) the Ongoing Capital Expenditures or (b) amend or terminate any Construction Contracts, or enter into any new Construction Contracts, in each case, without Purchaser's prior written consent in its good faith discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.2Seller shall use commercially reasonable efforts to cause the final completion and payment in full of the Ongoing Capital Expenditures on or prior to the Closing Date, as evidenced in writing to Purchaser's reasonable satisfaction ("<u>Final Completion</u>"). If any Ongoing Capital Expenditure has not achieved Final Completion as of the Closing Date, then (a) Seller shall pay at Closing all costs of such Ongoing Capital Expenditure that are then due and payable, (b) Purchaser shall receive a credit to the Purchase Price pursuant to <u>Section 12.2.5</u>, and (c) notwithstanding anything in this Agreement, Seller shall cause all Construction Contracts (and related licenses and permits) with respect to such Ongoing Capital Expenditure to be assigned to Purchaser pursuant to the Assignment and Assumption Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.3From and after the Effective Date, Seller shall not initiate, consent to, approve, or otherwise make any change to the zoning presently applicable to all or any portion of the Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.4Hotel Owner, at its sole cost and expense, has engaged Robau & Associates, a Bowman company ("<u>Civil Engineer</u>") to take such reasonably necessary actions to certify to the South Florida Water Management District ("<u>SFWMD</u>") that the surface water management system located on the Hotel Property and constructed pursuant to that certain

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Environmental Resource Permit No. 11-02044-P issued by SFWMD on November 4, 2014 ("<u>ERP</u>") has been completed in accordance with the approved permitted plans; and to cause SFWMD to convert the ERP from the construction phase to the operating phase ("<u>Conversion</u>"). In addition to the Conversion, Hotel Owner shall work with the Civil Engineer to cause SFWMD to transfer the ERP from Cornerstone Real Estate Advisers, LLC, who is listed as the current permittee, to the Hotel Owner as the "Permittee" and the "Operating Entity" under the ERP ("<u>ERP Transfer</u>"). Hotel Owner shall use reasonable efforts to have SFWMD complete the Conversion and ERP Transfer of the ERP to the Hotel Owner by no later than the Closing Date. Notwithstanding the foregoing, it shall not be a condition to Purchaser's obligation to Close to have the Conversion and the ERP Transfer completed by the Closing Date. If the Conversion and ERP Transfer have not been completed by the Closing Date, Hotel Owner shall continue to actively pursue the Conversion and ERP Transfer until both are completed by the SFWMD. After the Conversion and ERP Transfer have been completed, Hotel Owner and Purchaser shall reasonably cooperate, at Hotel Owner's sole cost and expense, to transfer the operating phase permit to Purchaser, it being acknowledged and agreed that Purchaser shall file the fully executed transfer form(s) with the SFWMD and provide evidence of the same to Hotel Owner. This <u>Section 8.4.4</u> shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5<u>Tax Contests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1<u>Taxable Periods Ending Prior to Closing Date</u>. Seller shall retain the right to commence, continue and settle any proceeding to contest any Taxes for any taxable period that includes periods prior to the Closing Date, and shall be entitled to any refunds or abatements of Taxes awarded in such proceedings; provided, however, in the event that any compromise or settlement of such proceeding could negatively impact the amount of real estate taxes or assessments for the tax year of Closing or any subsequent tax year, Purchaser's approval in its sole and absolute discretion shall be required, and Seller shall reimburse Purchaser for any Prorations paid by Purchaser which are subject to such abatements. This <u>Section 8.5.1</u> shall survive the Closing as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.2<u>Taxable Periods that include the Closing Date</u>. Purchaser shall have the right to commence, continue and settle any proceedings to contest Taxes for any taxable period that includes the Closing Date, and shall be entitled to any refunds or abatements of Taxes awarded in such proceedings; <u>provided</u>, <u>however</u>, that (i) Purchaser shall not settle any such proceeding without Seller's prior written consent, which consent shall not be unreasonably withheld or delayed, and (ii) Purchaser shall reimburse Seller for any Prorations (if any) paid by Seller which are subject to such abatements. Purchaser shall not (and shall not cause or permit any of its Affiliates to) take any position that would require or is reasonably likely to require Seller to amend its tax returns for any taxable period ending prior to the Closing Date. This <u>Section 8.5.2</u> shall survive the Closing as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.3<u>Cooperation</u>. Seller and Purchaser shall use commercially reasonable efforts to cooperate with the Party contesting the Taxes (at no cost or expense to the Party not contesting the Taxes) and execute and deliver any documents and instruments reasonably requested by the Party contesting the Taxes in furtherance of the contest of the Taxes. This <u>Section 8.5.3</u> shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6<u>Notices and Filings</u>. Seller and Purchaser shall use commercially reasonable efforts to cooperate with each other (at no cost or expense to the Party whose cooperation is requested except as otherwise set forth herein) to provide written notice to any Person under any Assumed Property Agreements, Licenses and Permits, and to effect any registrations or filings with any Governmental Authority or other Person, regarding the change in ownership of the Property or the Business. This <u>Section 8.6</u> shall survive the Closing as well as the termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7<u>Access to Information</u>. After Closing, Purchaser shall provide to the officers, employees, agents and representatives of Seller Indemnitees reasonable access to (at Seller's sole cost and expense and subject to Seller's indemnification of Purchaser for any Liabilities resulting therefrom): (a) the Books and Records with respect to the Property; (b) the Property; and (c) the employees at the Property, for any purpose that is commercially necessary (including, without limitation, to prepare any documents required to be filed by Seller or any of their respective Affiliates under Applicable Law) to investigate, evaluate and defend any claim, charge, audit, litigation or other proceeding made by any Person or insurance company involving Seller or any of its Affiliates. Purchaser, at its cost and expense, shall retain all Books and Records with respect to the Property for a period of seven (7) years after the Closing Date. This <u>Section 8.7</u> shall survive the Closing as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8<u>Privacy Laws</u>. To the extent Purchaser reviews, is given access to, or otherwise obtains, any Resort Guest Data and Information as part of the purchase of the Property and the Business, Purchaser shall at all times comply in all material respects with all Applicable Law and the Marriott Lease Agreement concerning (a) the privacy and use of the Resort Guest Data and Information and the sharing of such information and data with third parties (including, without limitation, any restrictions with respect to Purchaser's or any third party's ability to use, transfer, store, sell or share such information and data); and (b) the establishment of adequate security measures to protect the Resort Guest Data and Information. This <u>Section 8.8</u> shall survive the Closing as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9<u>Manager Consent</u>. Seller and Purchaser shall use commercially reasonable efforts to obtain from Manager an executed acknowledgment to the Assignment and Assumption of Marriott Lease Agreement (the "<u>Manager Consent</u>") at least two (2) Business Days prior to the Closing Date. In connection with obtaining the Manager Consent, (i) Purchaser shall promptly provide all reasonable information reasonably requested by Manager related to its evaluation process, and (ii) neither Seller nor Purchaser shall be required to expand any liability or other obligation of Seller or Purchaser (as applicable) hereunder or the Marriott Lease Agreement, and in no event shall Seller be obligated to institute any legal proceeding or pay or incur any fee, cost or other expense in connection with such efforts other than *de minimis* legal fees), but Seller shall keep Purchaser reasonably apprised of Seller's discussions with Manager regarding the Manager Consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10<u>Manager Estoppel; Association Estoppel</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10.1Purchaser's obligation to close the transaction contemplated by this Agreement is subject to the receipt of an executed Acceptable Manager Estoppel on or prior to the Closing Date. Seller shall use commercially reasonable efforts to obtain an executed Acceptable Manager Estoppel dated at least five (5) Business Days prior to the Closing Date but no earlier than thirty (30) days prior to the Initially Scheduled Closing Date (the "<u>Estoppel Deadline</u>"); provided, however, if the Initially Scheduled Closing Date is extended pursuant to the terms of this Agreement, Seller shall use commercially reasonable efforts to obtain an executed Acceptable Manager Estoppel dated at least five (5) Business Days prior to the Closing Date but no earlier than thirty (30) days prior to the Scheduled Closing Date, which shall not be condition to Closing, so long as Seller has obtained an Acceptable Manager Estoppel by the Estoppel Deadline. As used herein, "<u>Acceptable Manager Estoppel</u>" means an estoppel certificate from the Manager that (i) is substantially in the form attached hereto as <u>Exhibit H</u> (subject to deletion by Manager of the certifications in paragraphs 3(f), 3(g), 3(h), 3(i), 4, and 5 thereof, so long as such certifications are included in the initial draft of the estoppel certificate delivered to Manager), (ii) is dated within thirty (30) days of the Initially Scheduled Closing Date, (iii) does not provide a calculation of the rent payable by Manager thereunder that is inconsistent, in any non-*de minimis* respect, with the calculation of rent set forth in the Marriott Lease Agreement, and (iv) does not disclose the existence of an event of default, material non-monetary default, or any monetary default by landlord or Manager under the Marriott Lease Agreement, which default will not be cured by Seller or Manager on or before the Closing Date and accepted by Manager or Seller (as applicable).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10.2Seller shall use commercially reasonable efforts to obtain an executed Acceptable Association Estoppel dated at least five (5) Business Days prior to the Closing Date but no earlier than the Estoppel Deadline, and the delivery of such Acceptable Association Estoppel shall not be a condition to Closing. As used herein, "<u>Acceptable Association Estoppel</u>" means an estoppel certificate from the Hammock Bay Owners Association (the "<u>Association</u>") in substantially the same form as the estoppel delivered as of November 15, 2011 (or such other form as is required by the Association and reasonably acceptable to Purchaser) that (i) is dated within thirty (30) days of the Initially Scheduled Closing Date and (ii) does not disclose the existence of an event of default, material non-monetary default, or any material monetary default by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11<u>Space Leases</u>. Seller shall not (a) enter into any Space Leases or (b) consent to or approve any Space Lease (or any amendment or other modification thereof) entered under the Marriott Lease Agreement the term of which will continue from and after any expiration or earlier termination of the Marriott Lease Agreement, in each case, without the prior consent of Purchaser, which consent may be granted or withheld in Purchaser's sole discretion; <u>provided</u>, that Purchaser will be deemed to have approved any such consent requested in writing by Seller if Purchaser does not respond to such written request within five (5) Business Days following Purchaser's receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12<u>Insurance</u>. Seller shall use commercially reasonable efforts to keep or cause the Manager to keep the Property insured against fire and other hazards in such amounts and under such terms as Seller deems advisable consistent with past practices and in any event in such amounts and on such terms which are substantially consistent with Seller's insurance which is in place as of the Effective Date, in all events subject to the terms of the Marriott Lease Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13<u>Lender Recognition Agreement</u>. Seller shall use commercially reasonable efforts to cause Manager to execute and deliver to Purchaser's lender a Subordination, Non-Disturbance, and Attornment Agreement substantially in the form of the Existing SNDA or in such other form as Purchaser's lender shall reasonably require (the "<u>Lender SNDA</u>"), and any costs and/or expenses incurred in connection therewith shall be exclusively borne by Purchaser. For the avoidance of doubt, neither the delivery nor the execution of the Lender SNDA shall be a condition to Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14<u>Loan Assumption</u>. Promptly following the Effective Date, Seller shall request an application for the assumption of the Existing Loan (the "<u>Loan Assumption</u>"). Seller shall reasonably cooperate, at no cost to Seller, in connection with the Loan Assumption process so long as Purchaser is pursuing the same. Purchaser's assumption of the Existing Loan shall not be a condition precedent to Purchaser's or Seller's obligation to close the transactions described in this Agreement. If all required approvals to consummate, and all other requests of the Existing Lender have been satisfied for, Purchaser's assumption of the Existing Loan in accordance with the Existing Loan Documents, at Closing, Purchaser shall have the option to assume the Existing Loan by executing and delivering to the Existing Lender such loan assumption documents as may be required by the Existing Lender, including, without limitation, execution by qualified affiliates of Purchaser of replacement guaranties and indemnities required pursuant to the assumption terms in the Existing Loan Documents (collectively, the "<u>Loan Assumption Documents</u>"). At Closing, if the Loan Assumption is consummated, Purchaser shall pay all assumption fees and costs of Existing Lender and Purchaser shall pay any fees associated therewith. Notwithstanding anything to the contrary contained herein, Purchaser shall have the right, at any time and for any reason or no reason, to terminate the Loan Assumption process and the failure to achieve the Loan Assumption shall not constitute a default by Purchaser hereunder; provided, however, Purchaser shall cover all costs associated with the potential assumption of the Existing Loan. In connection with, and as a material part of the Loan Assumption, Seller and its Affiliates (including, without limitation, any guarantor) shall receive a written release from Existing Lender, in form and substance satisfactory to Seller in its sole but good faith discretion, whereby Seller and any and all existing guarantors or indemnitors with respect to the Existing Loan to be assumed, including any guarantors or indemnitors of completion, payment, recourse,

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non-recourse carve-out and environmental obligations are released from any and all Liabilities with respect thereto that first occur or accrue from and after the Closing Date (the "<u>Existing Loan Release</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15<u>Exclusivity</u>. Following the Effective Date and until the earlier to occur of the Closing Date or the termination of this Agreement, Seller shall not actively market or negotiate with any party other than Purchaser with respect to a sale, assignment, or other transfer of all or any portion of the Property or any direct or indirect interest therein; <u>provided</u>, <u>however</u>, notwithstanding the foregoing, if a Purchaser Default has occurred and is continuing, then Seller may engage in discussions with the Secondary Bidder with respect to the Property.

**ARTICLE 9<br>BROKER AND FURTHER ASSURANCES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1<u>Finders and Investment Broker</u>. Except for Jones Lang LaSalle (the "<u>Broker</u>"), neither Seller nor Purchaser have dealt with any person or entity who has acted, directly or indirectly, as a broker, finder, financial adviser or in such other capacity for, or on behalf of, either Seller or Purchaser in connection with the transactions described by this Agreement in a manner which would entitle such person or entity to any fee or commission in connection with this Agreement or the transactions described herein. Seller shall pay the Broker pursuant to a separate agreement. Each of the Parties agrees to indemnify, defend and hold the other Party harmless from and against any and all claims, causes of action, losses, costs, expenses, damages or liabilities, including reasonable attorneys' fees and disbursements (including all trial and appellate level fees and disbursements), which the other Party may sustain, incur or be exposed to, by reason of any claim or claims by any broker, finder or other person claiming through the indemnifying Party for fees, commissions or other compensation arising out of the transactions contemplated in this Agreement. Additionally, Seller shall indemnify, defend and hold Purchaser harmless from and against any and all claims, causes of action, losses, costs, expenses, damages or liabilities, including reasonable attorneys' fees and disbursements (including all trial and appellate level fees and disbursements), which Purchaser may sustain, incur or be exposed to, by reason of any claim or claims by the Broker for fees, commissions or other compensation arising out of the transactions contemplated in this Agreement; except to the extent such claim by the Broker is related to any engagement made by or at the request of Purchaser. The obligations under this <u>Section 9.1</u> shall survive the Closing as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2<u>Further Assurances</u>. From the Effective Date until the expiration or earlier termination of this Agreement, Seller and Purchaser shall use commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things, necessary, proper or advisable to consummate the transactions described in this Agreement, including, without limitation (a) obtaining all necessary consents, approvals and authorizations required to be obtained from any Governmental Authority or other Person under this Agreement or Applicable Law; and (b) effecting all registrations and filings required under this Agreement or Applicable Law. After Closing, Seller and Purchaser shall use commercially reasonable efforts (except as otherwise set forth herein, at no cost or expense to such Party, other than any *de minimis* cost or expense or any cost or expense which the requesting Party agrees in writing to reimburse) to further effect the transactions contemplated by this Agreement. The immediately preceding sentence of this <u>Section 9.2</u> shall survive the Closing as well as the termination of this Agreement.

**ARTICLE 10<br>CLOSING CONDITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1<u>Mutual Closing Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1<u>Satisfaction of Mutual Closing Conditions</u>. The respective obligations of Seller and Purchaser to close the transaction contemplated by this Agreement are subject to the satisfaction, at or prior to Closing, of the following conditions precedent (the "<u>Mutual Closing Condition(s)</u>"):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)No litigation or other court action shall have been commenced seeking to obtain an injunction or other relief from such court to enjoin the consummation of the transaction described in this Agreement and no preliminary or permanent injunction or other order, decree or ruling shall have been issued by a court of competent jurisdiction or by any Governmental Authority, that would make illegal or invalid or otherwise prevent the consummation of the transactions described in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)No Applicable Law shall have been enacted that would make illegal or invalid or otherwise prevent the consummation of the transaction described in this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Seller and Purchaser shall have received the Manager Consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2<u>Failure of Mutual Closing Condition</u>. If any Mutual Closing Condition(s) is/are not satisfied at Closing and without limiting the rights of any Party set forth in Section 14.1 or Section 14.2 (if applicable), then each Party to this Agreement shall have the right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Terminate this Agreement by providing written notice thereof to the other Party, subject to the provisions of <u>Section 17.22</u> hereof; provided, however, if a Party elects to extend the Closing Date pursuant to <u>Section 10.1.2(c)</u> below, the other Party shall not have the right to elect to terminate this Agreement pursuant to this <u>Section 10.1.2(a)</u> unless and until any Mutual Closing Condition(s) is/are not satisfied as of the applicable extended Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Waive, in writing, any such Mutual Closing Condition(s) at or prior to Closing and proceed to Closing, if possible, without abatement of any portion of the Purchase Price; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Extend the Closing Date one or more times (so long as, except with respect to any extension exercised under <u>Section 10.5</u>, all such extensions shall not exceed sixty (60) days in the aggregate with all extensions by Seller and/or Purchaser (as applicable) pursuant to this <u>Section 10.1.2(c)</u>, <u>Section 10.2.1(b)</u>, and <u>Section 10.2.2</u>) for the purpose of pursuing and satisfying the Mutual Closing Conditions, by delivering written notice of such election to the other Party and Escrow Agent not later than 5:00 p.m. Eastern time on the date that is two (2) days prior to the then Scheduled Closing Date.

If either Party terminates this Agreement pursuant to this <u>Section 10.1.2</u>, the terminating Party shall provide written notice to Escrow Agent and the other Party, in which case the Escrow Agent, without further consent from any Party, shall disburse the Deposit to Purchaser, no later than two (2) Business Days after the termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2<u>Purchaser Closing Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1<u>Satisfaction of Purchaser Closing Conditions</u>. In addition to the Mutual Closing Conditions, Purchaser's obligation to close the transaction contemplated by this Agreement is subject to the satisfaction, at or prior to Closing, of the following conditions precedent (the "<u>Purchaser Closing Condition(s)</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All Seller Closing Deliveries shall have been delivered to Purchaser or deposited with Escrow Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The representations and warranties of Seller contained in this Agreement shall be true and correct in all material respects as of the Effective Date and the

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Closing Date (with appropriate modifications permitted under <u>Section 14.3</u> of this Agreement); <u>provided</u>, that Seller's representations and warranties shall not be deemed inaccurate or breached due to transactions or actions expressly permitted by this Agreement or due to changes in facts after the Effective Date that do not constitute or result from a default by Seller of the covenants applicable to it under this Agreement, including, without limitation, any of the following occurring after the Effective Date and in each case solely to the extent not constituting or resulting from a default by Seller of the covenants applicable to it under this Agreement: a default by any party other than Seller or any of its Affiliates to any agreement relating to the Property, subsequently filed litigation relating to the Property, subsequently received notices of violations, changes in Bookings, or changes with respect to the Employees or defaults by any counterparties to any Equipment Leases or Operating Agreements or the replacement of a vendor for a particular service pursuant to an Equipment Lease or an Operating Agreement. Notwithstanding the foregoing, if (x) any representation and warranty of Seller was not true, correct, or complete in any material respect when made on the Effective Date, or (y) any representation and warranty of Seller is true when made on the Effective Date but ceases to be true as of the Closing Date and, as to this <u>clause (y)</u>, such change and/or inaccuracy, individually or in the aggregate, has or results in a Material Adverse Effect, then Purchaser shall have the right to terminate this Agreement by giving written notice to such effect to Seller prior to the Closing Date, in which case Escrow Agent shall return the Deposit within two (2) Business Days after the date of such written notice to Seller (subject to Seller's cure right set forth below), and the parties shall have no further obligations under this Agreement except for those obligations that expressly survive termination. Failure by Purchaser to notify Seller within two (2) Business Days of Purchaser's Knowledge of such breach shall constitute a waiver of Purchaser's right to terminate this Agreement as a result of such change (which shall not limit Purchaser's rights in the event of any other subsequent change that, individually or in the aggregate with all other changes, has a Material Adverse Effect). Seller shall in any event have the right to cure any breach or inaccuracy to Purchaser's reasonable satisfaction and, if necessary to allow such cure, the Closing Date shall be extended for up to sixty (60) days (in the aggregate with all extensions by Seller and/or Purchaser (as applicable) pursuant to this <u>Section 10.2.1(b)</u>, <u>Section 10.1.2(c)</u>, and <u>Section 10.2.2</u>) to allow such cure as long as Seller agrees to use reasonable efforts to effect such cure; <u>provided</u>, that if Seller elects in writing not to cure or fails to give Purchaser notice of its intent to cure within two (2) Business Days after Purchaser's written notice to Seller, Purchaser may terminate this Agreement and promptly receive a return of its Deposit, in which case, the parties hereto shall have no further rights and obligations hereunder except those that expressly survive any such termination. Without limiting the terms of this <u>Section 10.2.1(b)</u>, if, prior to the Closing, Purchaser obtains Knowledge (or is deemed to have Knowledge pursuant to <u>Section 7.1</u>) that any representation or warranty of Seller is untrue or that Seller has not complied with any of its covenants under this Agreement and Purchaser nonetheless proceeds with the Closing, Seller shall have no liability for any such matter regarding which Purchaser had Knowledge prior to Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The covenants and obligations of Seller in this Agreement shall have been performed in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Title Company shall be irrevocably committed to issuing the Title Policy for the Property pursuant to <u>ARTICLE 5</u> hereof, subject to the payment by Purchaser of any fees and expenses with respect to the Title Policy required to be paid by Purchaser pursuant to <u>Section 12.3.2</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Purchaser shall have received an Acceptable Manager Estoppel as and when required in accordance with this Agreement; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)To the extent any Landlord Investment Amendment is finalized and executed, Purchaser shall have received a copy of such fully executed Landlord Investment Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2<u>Failure of Purchaser Closing Condition</u>. Except as expressly provided in <u>Section 10.4</u> hereof and subject to Purchaser's rights and remedies set forth in <u>Section 14.1</u> (if applicable), if any Purchaser Closing Condition(s) is/are not satisfied at Closing, then Purchaser shall have the right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Terminate this Agreement by providing written notice thereof to Escrow Agent and Seller, subject to the provisions of <u>Section 17.22</u> hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Waive, in writing, any such Purchaser Closing Condition(s) at or prior to Closing and proceed to Closing, if possible, without abatement of any portion of the Purchase Price.

If Purchaser terminates this Agreement pursuant to this <u>Section 10.2.2</u>, Purchaser shall provide written notice to Escrow Agent and Seller directing Escrow Agent to disburse the Deposit to Purchaser, no later than two (2) Business Days after such termination.

Notwithstanding anything to the contrary set forth herein, Seller and Purchaser shall have the right to extend the Closing Date one or more times (so long as, except with respect to any extension exercised under <u>Section 10.5</u>, all such extensions shall not exceed thirty (30) days (or, as to the Acceptable Manager Estoppel, sixty (60) days) in the aggregate with all extensions by Seller and/or Purchaser (as applicable) pursuant to this <u>Section 10.2.2</u>, <u>Section 10.1.2(c)</u>, and <u>Section 10.2.1(b)</u>) for the purpose of pursuing and satisfying the Purchaser Closing Conditions, by delivering written notice of such election to Purchaser and Escrow Agent not later than 5:00 p.m. Eastern time on the date that is two (2) days prior to the then Scheduled Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3<u>Seller Closing Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1<u>Satisfaction of Seller Closing Conditions</u>. In addition to the Mutual Closing Conditions, Seller's obligation to close the transactions contemplated in this Agreement, is subject to the satisfaction, at or prior to Closing, of the following conditions precedent (the "<u>Seller Closing Condition(s)</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Purchaser shall have deposited with Escrow Agent the balance of the Purchase Price for the Property, as adjusted pursuant to <u>Section 3.1</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Purchaser shall have provided evidence reasonably satisfactory to Seller that the FF&E Reserve Funding Obligation has been satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)All Purchaser Closing Deliveries shall have been delivered to Seller or deposited with Escrow Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The representations or warranties of Purchaser in this Agreement (as qualified by any schedules to this Agreement and any amendments or supplements to such schedules other than as set forth in <u>Section 14.3</u>) shall be true and correct in all material respects as of the Closing (or as of such other date to which such representation or warranty expressly is made);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The covenants and obligations of Purchaser in this Agreement shall have been performed in all material respects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)If Purchaser is assuming the Existing Loan, (i) all necessary approvals to consummate Purchaser's assumption of the Existing Loan are obtained in accordance with the terms of the Existing Loan Documents, and (ii) delivery by the Existing Lender to Seller of the Existing Loan Release. For the avoidance of doubt, Purchaser hereby agrees and acknowledges that the consummation of the Loan Assumption shall not be a condition precedent to Purchaser's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.2<u>Failure of Seller Closing Condition</u>. Except as expressly provided in <u>Section 10.4</u> and subject to Seller's rights and remedies set forth in <u>Section 14.2</u> (if applicable), if any Seller Closing Condition(s) is/are not satisfied at Closing, then Seller shall have the right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Terminate this Agreement by providing written notice thereof to Escrow Agent and Purchaser, subject to the provisions of <u>Section 17.22</u> hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Waive, in writing, any such Seller Closing Condition(s) at or prior to Closing and proceed to Closing, without abatement of any portion of the Purchase Price.

If Seller terminates this Agreement pursuant to this <u>Section 10.3.2</u>, then, solely to the extent Seller is not entitled to the Deposit pursuant to <u>Section 14.2</u>, Escrow Agent shall disburse the Deposit to Purchaser, no later than two (2) Business Days after such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4<u>Frustration of Closing Conditions</u>. Neither Seller nor Purchaser may rely on the failure of a Seller Closing Condition or a Purchaser Closing Condition, respectively, if such failure was caused by such Party's failure to act in good faith or to use its commercially reasonable efforts to cause the Closing to occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5<u>Hurricanes; NFIP</u>. If insurance cannot be bound as a result of an impending named hurricane watch or warning issued by the National Weather Service covering the area where any of the Property is located, and such watch or warning remains in effect on the then-scheduled Closing Date, or if the National Flood Insurance Program is unable to issue insurance in connection with a governmental shutdown, then in either such event, the Closing Date shall be extended up to ten (10) Business Days from the then Scheduled Closing Date or up to five (5) Business Days after insurance can be bound, whichever date is later, but in no event later than fifteen (15) days after the then Scheduled Closing Date.

**ARTICLE 11<br>CLOSING**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1<u>Closing Date</u>. Closing shall be held no later than 4:00 p.m. Eastern Time on May 1, 2026 (the "<u>Initially Scheduled Closing Date</u>"), and as such date may extended from time to time in accordance with the terms hereof, the "<u>Scheduled Closing Date</u>"), subject to any extensions as expressly provided in this Agreement. Purchaser shall have the right to extend the Scheduled Closing Date for a period of up to thirty (30) days by delivering written notice of such election to Seller and Escrow Agent by not later than 5:00 pm Eastern time on the date that is at least three (3) Business Days prior to the Scheduled Closing Date; <u>provided</u>, <u>however</u>, in connection with any such extension of the Scheduled Closing Date, Purchaser shall be responsible for all out-of-pocket costs and expenses incurred Seller in connection with any extension of the Existing Loan, including, but not limited to, any costs and expenses associated with the purchase of a new Interest Rate Protection Agreement (as defined in the Loan Documents for the Existing Loan) if the Scheduled Closing Date as so extended is after June 9, 2026 (collectively, the "<u>Loan Extension Costs</u>"). In order for such notice to be effective, on the date on which such notice is given, Purchaser shall deposit with Escrow Agent the additional

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sum of Five Million Dollars ($5,000,000) (the "<u>Extension Deposit</u>"), which Extension Deposit shall be added to and become part of the Deposit. The Parties acknowledge that the transaction contemplated hereunder shall be closed by delivering executed documents and the other closing deliveries required under this Section 11 to Escrow Agent without requiring the Parties to be physically present at the time and location of Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2<u>Closing Escrow</u>. Closing shall take place pursuant to the terms of this Agreement, including, but not limited to this <u>Article 11</u> and <u>Article 18</u> and administered and coordinated by Escrow Agent, pursuant to which (a) the Cash Consideration, which shall be paid by Purchaser to Seller pursuant to <u>Section 3.3</u> hereof, shall be deposited with Escrow Agent; (b) all of the documents required to be delivered by Seller and Purchaser at any Closing pursuant to this Agreement shall be deposited with Escrow Agent; (c) at Closing, the Purchase Price, as adjusted pursuant to <u>Section 3.1</u> hereof, shall be disbursed to Seller; and (d) the documents deposited with Escrow Agent shall be recorded in the appropriate jurisdiction or otherwise delivered to Seller and Purchaser, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3<u>Closing Deliveries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.1<u>Seller's Deliveries</u>. At Closing, Seller shall deliver or cause to be delivered to Purchaser, or deposited with Escrow Agent to be recorded or delivered to Purchaser, as appropriate, all of the (a) documents set forth in this <u>Section 11.3.1</u>, each of which shall have been duly executed and acknowledged (if required), by Seller and (b) other items set forth in this <u>Section 11.3.1</u> (the "<u>Seller Closing Deliveries</u>"), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Closing Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Deeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Bill of Sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Assignment and Assumption Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The original Allonges for the Golf Club Membership Loan Documents (the "<u>Allonge</u>"), or, to the extent any such original Allonges are not in Seller's Possession, a lost note affidavit with respect to such Allonges, in form and substance reasonably acceptable to Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Such agreements, affidavits or other documents as may be reasonably required by the Title Company from Seller to issue the Title Policy, including without limitation the Owner's Title Affidavit in the form attached hereto as <u>Exhibit E-1</u> and the Affidavit and Indemnity Re: Notices of Commencement in the form attached hereto as <u>Exhibit E-2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Seller's share of funds necessary to comply with its obligations set forth in <u>Section 12.3.1</u> hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)An IRS Form W-9 in respect of Seller (or, if Seller is a disregarded entity for U.S. federal income tax purposes, the regarded owner of Seller for U.S. federal income tax purposes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Any real estate transfer tax declaration or similar documents required under Applicable Law in connection with the conveyance of the Real Property;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)A certificate or registration of title for any owned vehicle or other FF&E included in the Property which requires such certification or registration, conveying such vehicle to Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)To the extent not previously delivered to Purchaser, all originals (or certified copies if originals are not available) of the Assumed Property Agreements, Licenses and Permits, Books and Records, keys and lock combinations in Seller's Possession, which are located at the Property on the Closing Date shall be deemed to be delivered to Purchaser upon delivery of possession of the Property to Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)The Closing Statement prepared pursuant to <u>Section 12.1</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)Assignment and Assumption of Marriott Lease Agreement, together with a memorandum thereof, to be recorded in the land records where the Property is located, and otherwise in form and substance reasonably acceptable to Purchaser and Title Company (the "<u>Memorandum of Assignment</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)The Acceptable Manager Estoppel and the Acceptable Association Estoppel, in each instance, if received;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)If Purchaser is assuming the Existing Loan and all necessary approvals required to consummate Purchaser's assumption of the Existing Loan are obtained in accordance with the terms of the Existing Loan Documents, and Existing Lender delivers to Seller duly executed copies of the Existing Loan Release, the Loan Assumption Documents to which Seller is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)Notice of transfer of title pursuant to the Agreement of Covenants and Restrictions recorded in Book 1484, Page 1814 in the Public Records of Collier County, Florida;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)Assignment of Irrigation Water Service Agreement recorded in Book 1615, Page 1625 in the Public Records of Collier County, Florida; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)Such other documents and instruments as may be reasonably requested by the Title Company in order to consummate the transactions described in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3.2<u>Purchaser's Deliveries</u>. At Closing, Purchaser shall deliver or cause to be delivered to Seller, or deposited with Escrow Agent to be delivered to Seller, all of the (a) documents set forth in this <u>Section 11.3.2</u>, each of which shall have been duly executed by Purchaser and acknowledged (if required); and (b) other items set forth in this <u>Section 11.3.2</u> (the "<u>Purchaser Closing Deliveries</u>"), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Purchase Price, as adjusted pursuant to <u>Section 3.1</u> hereof, to be paid by Purchaser for the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)A Closing Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)An As-Is Closing Waiver in the form attached hereto as <u>Exhibit G</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)A counterpart of each of the documents and instruments to be delivered by Seller under <u>Section 11.3.1</u> hereof which require execution by Purchaser;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)If Purchaser is assuming the Existing Loan and all necessary approvals required to consummate Purchaser's assumption of the Existing Loan are obtained in accordance with the terms of the Existing Loan Documents, (i) the Loan Assumption Documents, each duly executed by Purchaser and any replacement guarantor and indemnitor thereunder, and (ii) duly executed copies of the Existing Loan Release and the Existing Loan Indemnity Agreement are provided to Seller; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Such other documents and instruments as may be reasonably requested by the Title Company in order to consummate the transactions described in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4<u>Possession</u>. Seller shall deliver possession of the Real Property, subject only to the Permitted Exceptions, and the tangible Personal Property, to Purchaser, upon completion of the Closing.

**ARTICLE 12<br>PRORATIONS AND EXPENSES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1<u>Closing Statement</u>. No later than three (3) Business Days prior to the Closing, the Parties, through their respective employees, agents or representatives, jointly shall make such examinations, audits and inventories of the Property as may be necessary to make the adjustments and prorations to the Purchase Price as set forth in <u>Section 12.2</u> and <u>Section 12.3</u> hereof or any other provisions of this Agreement. Based upon such examinations, audits and inventories, the Parties jointly shall prepare, prior to the Closing, a closing statement (the "<u>Closing Statement</u>"), which shall set forth their best estimate of the amounts of the items to be adjusted and prorated under this Agreement. Each Closing Statement shall be approved and executed by the Parties at the Closing, and such adjustments and prorations shall be final with respect to the items set forth in the Closing Statement, except to the extent any such items shall be reprorated after the Closing as expressly set forth in <u>Section 12.2</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2<u>Prorations</u>. The items of revenue and expense set forth in this <u>Section 12.2</u> shall be prorated between the Parties (the "<u>Prorations</u>") as of 12:01 a.m. (Eastern Time) on the Closing Date (the "<u>Cut-Off Time</u>"), or such other time expressly provided in this <u>Section 12.2</u>, so that the Closing Date is a day of income and expense for Purchaser. The provisions of this <u>Section 12.2</u> shall survive Closing and are subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.1<u>Collected Rent</u>. All rent under the Marriott Lease Agreement (and any applicable state or local tax on rent paid to Seller) payable by Manager which are collected by Seller on or prior to the Closing in respect of the month (or other applicable collection period) in which the Closing occurs (the "<u>Current Month</u>"), shall be prorated on a per diem basis with the number of days in the Current Month prior to the Closing Date being allocated to Seller and the number of days in the Current Month on and after the Closing Date being allocated to Purchaser. Uncollected rent shall not be prorated. If at the Closing, rent which is due and payable as of the Closing Date in respect of the Current Month is unpaid by Manager, Purchaser agrees that the first monies received by it from Manager shall be received by Purchaser and shall be disbursed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)First, to Seller and Purchaser, in an amount equal to all rent owing by Manager to Seller and Purchaser in respect of the Current Month on a per diem basis based on the number of days in the Current Month prior to the Closing Date (which shall be allocated to Seller) and the number of days in the current month on and after the Closing Date (which shall be allocated to Purchaser);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Next, to Purchaser, in an amount equal to all other rent then due and owing by Manager to Purchaser in respect of any periods after the Current Month; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Last, to Seller, in an amount equal to all other rent owing to Seller by Manager in respect of all periods prior to Closing in reverse order of accrual (i.e., applied first to most recently accrued rent).

For the balance of the calendar year in which the Closing Date occurs, Purchaser will use commercially reasonable efforts, without any obligation to commence a suit or exercise any remedies against Manager, to collect any rents or any other amounts payable by Manager applicable to the period before Closing. Seller may not pursue collection as to any rent not collected by the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.2<u>Remittance of Rent</u>. For the balance of the calendar year in which the Closing Date occurs, each of Seller and Purchaser agree to remit reasonably promptly to the other the amount of rent to which the other is so entitled and to account to the other monthly in respect of same and in connection therewith, the applicable Party shall provide the other reasonable evidence of such amounts received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.3<u>Assumed Property Agreements and Equipment Leases</u>. Any amounts prepaid, accrued or due and payable under the Assumed Property Agreements and the Equipment Leases at Closing shall be prorated as of the Cut-Off Time between Seller and Purchaser, with Seller being credited for amounts prepaid for periods following Closing, and Purchaser being credited for amounts accrued and unpaid. Purchaser shall receive a credit for all deposits held by Seller under the Assumed Property Agreements (together with any interest thereon) which are not transferred to Purchaser, and Purchaser thereafter shall be obligated to refund or apply such deposits in accordance with the terms of the Assumed Property Agreements, as applicable. At Closing, Seller shall receive a credit for all deposits made by Seller under the Assumed Property Agreements (together with any interest thereon) which are transferred to Purchaser or remain on deposit for the benefit of Purchaser. Notwithstanding anything in this <u>Section 12.2.3</u>, there shall be no proration of amounts under Assumed Property Agreements or Equipment Leases, in each case, to the extent that such amounts are taken into account in the calculation of rent under the Marriott Lease Agreement. This Section 12.2.3 shall not apply to the Construction Contracts, which are governed by <u>Section 12.2.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.4<u>Final Adjustment after Closing</u>. If final prorations for any item under this <u>Section 12.2</u> cannot be determined at Closing (including rent under the Marriott Lease Agreement in respect of 2026 calendar months prior to the Current Month), then the Parties shall allocate those items on a fair and equitable basis once invoices or bills are available and any required reconciliations with the Manager have been completed. Final adjustments shall be made as soon as reasonably possible, but in no event earlier than one hundred twenty (120) days after Closing and no later than March 31, 2027 (<u>provided</u>, that any year end reconciliation under the Marriott Lease Agreement has then been completed). Income and expenses shall be allocated on an accrual basis based on each Party's period of ownership. Payments in connection with the final adjustment shall be due within ten (10) days of written notice. Seller and Purchaser shall provide the other reasonable documentary evidence to confirm the final prorations. If any re-proration or reconciliation which occurs by the Parties indicates that Purchaser or Seller was entitled to a larger credit with respect to the same than such Party received at Closing, such Party shall immediately remit the shortfall to the other Party. Until such time that the post-Closing adjustment contemplated by this <u>Section 12.2.4</u> and any applicable payments are made, Seller (a) shall not liquidate, dissolve or wind-up or consolidate or merge with any other entity in a transaction following which Seller is not the surviving entity and (b) shall maintain net worth of not less than Ten Million Dollars ($10,000,000). This <u>Section 12.2</u> shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.5<u>Ongoing Capital Expenditures</u>. Purchaser shall receive a credit to the Purchase Price in an amount equal to one hundred percent (100%) of the aggregate Completion

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Costs for all Ongoing Capital Expenditures that have not achieved Final Completion as of Closing (the "<u>Post-Closing Capital Expenditures</u>"). As used herein, "<u>Completion Costs</u>" means the total estimated cost and expense required to complete an Ongoing Capital Expenditure, as reasonably agreed to by Seller and Purchaser as of the Closing Date. Within ten (10) days of the Final Completion of each Post-Closing Capital Expenditure, the Parties shall adjust the foregoing credit based on the actual and reasonable documented out-of-pocket costs and expenses of Purchaser to achieve Final Completion, which adjustment shall otherwise be made in accordance with, <u>Section 12.2.4</u> (<u>provided</u>, that Seller shall not be responsible for Completion Costs resulting from voluntary changes to the nature or scope of the Ongoing Capital Expenditures that are entered into after Closing or other cost increases that are not within Seller's control).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.6<u>Interest</u>. At Closing, if the Loan Assumption is consummated, then any interest under the Existing Loan prepaid, accrued or due and payable under the Existing Loan Documents at Closing shall be prorated as of the Cut-Off Time between Seller and Purchaser, with Seller being credited for amounts prepaid for periods following Closing, and Purchaser being credited for amounts accrued and unpaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3<u>Transaction Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.1<u>Seller's Closing Costs</u>. Seller shall pay (a) any documentary stamp taxes, surcharges or transfer taxes imposed on the conveyance of the Property and/or recordation of the Deeds (based on the portion of the Purchase Price allocated to the Real Property pursuant to <u>Section 3.5</u>) and the Memorandum of Assignment, (b) the premium for the Title Policy (with such premium based on the portion of the Purchase Price allocated to the Real Property pursuant to <u>Section 3.5</u>), (c) one-half of Escrow Agent's escrow fee or escrow termination charge, (d) the cost of recording, discharging, removing or curing, as applicable, any Mandatory Cure Items pursuant to the express terms of this Agreement, (e) fees and expenses of Seller's own attorneys, accountants and consultants, and (f) all costs, fees, and expenses related to the Landlord Investment Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.2<u>Purchaser's Closing Costs</u>. Purchaser shall pay (a) one-half of Escrow Agent's escrow fee or escrow termination charge, (b) the charge for any and all endorsements to the Title Policy, (c) the cost of the Survey or any updates thereto, (d) any costs incurred in connection with Purchaser's investigation and diligence of the Property, (e) any mortgage tax, title insurance fees and expenses for any loan title insurance policies, recording charges or other amounts payable in connection with any financing obtained by Purchaser, (f) intentionally omitted, (g) all costs, fees and expenses related to the assignment of the Marriott Lease Agreement or the negotiation of any amendment to the Marriott Lease Agreement (other than each Landlord Investment Amendment), (h) any fees and costs related to Purchaser obtaining a transfer of or replacement Liquor Licenses, (i) fees and expenses of Purchaser's own attorneys, accountants and consultants, (j) if the Scheduled Closing Date is extended pursuant to <u>Section 11.1</u>, all Loan Extension Costs and (k) any reasonable out-of-pocket fees, costs and expenses associated with the Loan Assumption, including but not limited to those reasonable out-of-pocket costs and expenses incurred by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.3<u>Other Transaction Costs</u>. All other fees, costs and expenses not expressly addressed in this <u>Section 12.3</u> or elsewhere in this Agreement shall be allocated between Seller and Purchaser in accordance with applicable local custom for similar transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.4<u>Sales Tax</u>. It is the intent and belief of both Seller and Purchaser that the sale of the Personal Property, except for vehicles, if any, contemplated hereby is an occasional or isolated sale within the meaning of Florida Administrative Code Rule 12A-1.037, and is exempt from Florida sales tax. To the extent that the Florida Department of Revenue attempts to or does assess sales tax on the sale of the Personal Property to Purchaser pursuant to this Agreement, and

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such assessment is not the result of, or otherwise attributable to, any event or circumstance that constitutes a breach of <u>Section 7.1.23</u> (in which event Seller shall be responsible for the payment of all such sales tax), Purchaser shall be responsible for the payment of all required sales tax, including, without limitation, penalties and interest, and Purchaser shall indemnify and hold Seller harmless with respect to any such sales tax for which Purchaser is responsible pursuant to this <u>Section 12.3.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.5<u>Golf Club Membership Loan Documents</u>. The Parties agree that (a) as of the Closing Date, Purchaser shall reimburse Seller for the total outstanding balance of any amounts owing to Seller or any of its Affiliates under the Golf Club Membership Loan Documents (together with any interest thereon), (b) Purchaser shall assume all rights and Liabilities of Seller or any of its Affiliates under the Golf Club Membership Loan Documents pursuant to the Allonge. In addition, in the event the Parties determine that a particular membership initiation fee that is due to a Golf Club member as part of such member's resignation from the Golf Club that are due and payable as of the Closing Date or would be payable within the first sixty (60) days following the Closing Date, in each instance, will not be paid with the proceeds of a new incoming member's initiation fee, then the Parties shall, acting reasonably, agree upon a credit to Purchaser for such portion of the initiation fee that Purchaser would have to come out of pocket to fund to pay such existing Golf Club member (as opposed to using the new incoming member's initiation fee to cover).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.6<u>FF&E Reserve</u>. The Parties agree that as of the Closing Date (a) Seller shall retain the balance of the FF&E Reserve, and (b) Purchaser shall be obligated to fund into an account(s) any amounts that are required in connection with the Repairs and Equipment Escrow (as defined in the Marriott Lease Agreement) pursuant to the Marriott Lease Agreement (the "<u>FF&E Reserve Funding Obligation</u>") and to otherwise comply with all associated obligations and conditions as set forth in the Marriott Lease Agreement. As of January 31, 2026, <u>Schedule 1.1</u> attached hereto reflects the amount of the FF&E Reserve and such amount shall be updated prior to Closing to confirm the FF&E Reserve Funding Obligation.

**ARTICLE 13<br>INTENTIONALLY OMITTED.**

**ARTICLE 14<br>DEFAULT AND REMEDIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1<u>Seller Default</u>. If, at or any time prior to Closing, Seller fails to perform its covenants or obligations under this Agreement in any material respect, which breach or default is not caused by a Purchaser Default (as hereinafter defined) and if Seller fails to cure such breach or default within five (5) Business Days after receipt of written notice thereof from Purchaser (the "<u>Seller Cure Period</u>"), provided that Seller shall not be entitled to any notice or cure period with respect to the delivery of the Seller Closing Deliveries at Closing (such event, a "<u>Seller Default</u>"), Purchaser may elect, as the sole and exclusive remedy of Purchaser, either (a) to terminate this Agreement and receive the Deposit from the Escrow Agent, and recover from Seller all of Purchaser's actual documented third party out-of-pocket expenses incurred to the date of such termination, not to exceed a total of One Million Five Hundred Thousand Dollars ($1,500,000), (b) seek to enforce specific performance of Seller's obligation to convey title to the Property, without adjustment to, or credit against, the Purchase Price, except as otherwise set forth in this Agreement, or (c) waive any Seller Default at or prior to the Closing and proceed to the Closing without any abatement of the Purchase Price or other credit. In any election under (a), (b) or (c), Purchaser shall not have the right to seek damages (although as provided in <u>Section 17.12</u> the prevailing party in any legal action shall be entitled to recover reasonable attorneys' fees and costs); provided, notwithstanding anything set forth herein, if the remedy of specific performance is not available to Purchaser due to Seller's intentional or willful breach of

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this Agreement, then Purchaser shall be entitled to pursue any and all rights and remedies against Seller including the right to seek and recover damages. Purchaser shall be deemed to have elected to terminate this Agreement (as provided in subsection (a) above) if Purchaser fails to deliver to Seller written notice of its intent to file a cause of action for specific performance against Seller on or before the date that is thirty (30) days after the Scheduled Closing Date, or having given Seller notice, Purchaser fails to file a lawsuit asserting such cause of action within thirty (30) days after the date of such written notice of intent. Notwithstanding anything to the contrary in this Agreement, Purchaser shall not have the right to exercise its remedies under this <u>Section 14.1</u> for an alleged Seller breach or default of a covenant or obligation under this Agreement, unless Purchaser has provided written notice to Seller specifying, in reasonable detail, the nature of the alleged Seller breach or default, and Seller has not cured such alleged Seller default, within Seller Cure Period; in which case, the Closing shall be postponed until the date which is five (5) Business Days after the expiration of Seller Cure Period. Notwithstanding the foregoing, in the event of a default by any party of any indemnification obligations in this Agreement that expressly survive Closing or the termination or cancellation of this Agreement, or any obligation to be performed subsequent to Closing, then the non-defaulting party shall be entitled to seek any legal redress permitted by law or equity against the defaulting party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2<u>Purchaser's Default</u>. If the Closing shall fail to occur because Purchaser fails to perform any of its covenants or obligations under this Agreement, in any material respect, which breach or default is not caused by a Seller Default and if Purchaser fails to cure such breach or default within five (5) Business Days after receipt of written notice thereof from Seller (provided that Purchaser shall not be entitled to any notice or cure period with respect to the payment of the Purchase Price or the delivery of the Purchaser Closing Deliveries at Closing) (each, a "<u>Purchaser Default</u>"), then Seller, as its sole and exclusive remedy, may elect to (a) terminate this Agreement by providing written notice to Purchaser and retain the Deposit as liquidated damages as provided below, subject to the provisions of <u>Section 17.12</u> hereof; or (b) waive any Purchaser Default at or prior to the Closing and proceed to the Closing without any adjustment to the Purchase Price. PURCHASER ACKNOWLEDGES THAT IT WOULD BE IMPRACTICABLE AND EXTREMELY DIFFICULT TO CALCULATE ACTUAL DAMAGES CAUSED BY A BREACH OF ANY REPRESENTATION, WARRANTY OR COVENANT OF PURCHASER CONTAINED HEREIN, INCLUDING WITHOUT LIMITATION, THE FAILURE OF PURCHASER TO PURCHASE THE PROPERTY AND THE BUSINESS, WHERE SUCH FAILURE WAS NOT DUE TO A SELLER DEFAULT. PURCHASER AND SELLER THEREFORE AGREE THAT, UPON A PURCHASER DEFAULT, THE AMOUNT OF THE DEPOSIT IS A REASONABLE ESTIMATE OF SELLER'S DAMAGES AND THAT SELLER SHALL BE ENTITLED TO SAID SUM AS LIQUIDATED DAMAGES, WHICH SHALL BE SELLER'S SOLE AND EXCLUSIVE REMEDY, EITHER AT LAW AND/OR IN EQUITY ALTHOUGH AS PROVIDED IN <u>SECTION 17.12</u> THE PREVAILING PARTY IN ANY LEGAL ACTION SHALL BE ENTITLED TO RECOVER REASONABLE ATTORNEYS' FEES AND COSTS. IN SUCH EVENT, THE ESCROW AGENT SHALL, UPON WRITTEN DEMAND BY SELLER WITHOUT JOINDER OF PURCHASER, IMMEDIATELY DELIVER THE DEPOSIT TO SELLER IN CASH OR OTHER IMMEDIATELY AVAILABLE FUNDS. THE FOREGOING DOES NOT LIMIT PURCHASER'S LIABILITY UNDER ANY INDEMNITY OR OTHER PROVISION OF THIS AGREEMENT WHICH BY ITS TERMS SURVIVES A TERMINATION OF THIS AGREEMENT OR IS TO BE PERFORMED AFTER CLOSING. TO SIGNIFY THEIR AWARENESS AND AGREEMENT TO BE BOUND BY THE TERMS AND PROVISIONS OF THIS <u>SECTION 14.2</u>, PURCHASER AND SELLER HAVE SEPARATELY INITIALED THIS SECTION.

SELLER INITIALS: ________ ________&nbsp;&nbsp;&nbsp;&nbsp; PURCHASER INITIALS: ________

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3<u>Updates of Schedules</u>. Notwithstanding anything to the contrary in this Agreement, Seller shall have the right to amend and supplement any schedule, or provide new schedules, to this Agreement from time to time without Purchaser's consent if such schedule needs to be amended, supplemented or provided to maintain the truth or accuracy of the applicable representation or warranty or the information disclosed therein as a result of a change in fact or circumstance that was outside of the reasonable control of Seller (and which is not otherwise the result of a breach by Seller of any covenant in any material respect set forth in this Agreement). If Seller makes any amendment or supplement to the schedules, or provides a new schedule, (a) then such amendment or supplement shall constitute a failure of a Purchaser Closing Condition if, and only if, the corresponding representation or warranty to which the amendment or supplement relates would be untrue or incorrect in the absence of the amendment or supplement and, combined with all other changes, inaccuracies and breaches, would result in a Material Adverse Effect, and (b) if Purchaser proceeds to Closing notwithstanding the amendment or supplement, the corresponding representation or warranty to which the amendment or supplement relates shall be deemed qualified by the amendment or supplement for the purposes of limiting the defense and indemnification obligations of Seller under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4<u>No Recourse to Seller Indemnitees</u>. In connection with this Agreement, Advisor is acting as the investment adviser to Seller and shall not have any individual liability hereunder. No member, principal, shareholder, officer, employee or agent of or consultant to Advisor or of or to Seller shall be held to any personal liability hereunder, and no resort shall be had to their property or assets, or the property or assets of Advisor for the satisfaction of any claims hereunder or in connection with the affairs of Advisor. Furthermore, Seller's liability under this Agreement is explicitly limited to Seller's interest in the Property, including any proceeds thereof. Purchaser shall have no recourse against any other property or assets of Seller, any assets of the Advisor, or to any of the other Seller Indemnitees or of any of the assets or property of any of the foregoing for the payment or collection of any amount, judgment, judicial process, arbitral award, fee or cost or for any other obligation or claim arising out of or based upon this Agreement and requiring the payment of money by Seller. Except as otherwise expressly set forth in this <u>Section 14.4</u>, none of the Seller Indemnitees (other than Seller) shall be subject to levy, lien, execution, attachment or other enforcement procedure for the satisfaction of any of Purchaser's rights or remedies under or with respect to this Agreement, at law, in equity or otherwise. Purchaser shall not seek enforcement of any judgment, award, right or remedy against any property or asset of Seller or any Seller Indemnitees other than Seller's interest in the Property or any proceeds thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5<u>Survival</u>. The terms of this <u>Section 14</u> shall survive the Closing or any termination of this Agreement.

**ARTICLE 15<br>RISK OF LOSS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1<u>Casualty</u>. If, at any time after the Effective Date and prior to the Closing or earlier termination of this Agreement, the Property or any portion thereof is damaged or destroyed by fire or any other casualty (a "<u>Casualty</u>"), Seller shall give written notice of the Casualty to Purchaser promptly after the occurrence of the Casualty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.1<u>Material Casualty</u>. If (i) the estimated amount of the cost to repair and restore the Property following a Casualty equals or exceeds six percent (6%) of the Purchase Price, (ii) the cost to repair and restore the Property following such Casualty is not fully insured and the cost thereof exceeds three percent (3%) of the Purchase Price (unless Seller agrees to credit Purchaser the cost to repair such uninsured or underinsured causalities, without any obligation to do so) or (iii) the Casualty results in the permanent reduction or restriction of access to or parking at the Property or the failure of the Property to remain in compliance in all material respects with Applicable Law with respect to zoning and building and fire codes even following any renovations to address the Casualty (a "<u>Material Casualty</u>"), and the Material Casualty was not caused by Purchaser, Purchaser's Representatives, or their respective employees or agents,

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then Purchaser shall have the right to elect, by providing written notice to Seller, within ten (10) Business Days after Purchaser's receipt of Seller's written notice of the Material Casualty, to (a) terminate this Agreement by providing written notice to Seller, subject to the provisions of <u>Section 17.23</u> hereof; or (b) proceed to Closing, without terminating this Agreement, in which case Seller shall (i) provide Purchaser with a credit against the Purchase Price in an amount equal to the applicable insurance deductible, and (ii) transfer and assign to Purchaser all of Seller's right, title and interest in and to all proceeds from all casualty and lost profits insurance policies maintained by or on behalf of Seller with respect to the Property or the Business, except those proceeds allocable to lost profits and costs incurred by Seller for the period prior to the Closing. If Purchaser fails to provide written notice of its election to Seller within such time period, then Purchaser shall be deemed to have elected to terminate this Agreement pursuant to this <u>Section 15.1.1</u>. If the Closing is scheduled to occur within Purchaser's ten (10) Business Day election period, the Closing Date shall be postponed until the date which is five (5) Business Days after the expiration of such ten (10) Business Day election period. Escrow Agent shall promptly return the Deposit to Purchaser following the termination of this Agreement pursuant to this <u>Section 15.1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1.2<u>Non Material Casualty</u>. In the event of any (a) Casualty which is not a Material Casualty; or (b) Material Casualty which is caused by Purchaser or Purchaser's Representatives, or their respective employees or agents, then Purchaser shall not have the right to terminate this Agreement, but shall proceed to Closing, in which case Seller shall (i) in the event of a Casualty which is not a Material Casualty, provide Purchaser with a credit against the Purchase Price (except if the Casualty is caused by Purchaser or Purchaser's Representatives) in an amount equal to the applicable insurance deductible, and (ii) transfer and assign to Purchaser all of Seller's right, title and interest in and to all proceeds from all casualty and lost profits insurance policies maintained by or on behalf of Seller with respect to the Property so affected, except those proceeds allocable to any lost profits or costs and expenses actually incurred by Seller for the period prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2<u>Condemnation</u>. If, at any time after the Effective Date but prior to the expiration or termination of this Agreement, any Governmental Authority commences or threatens in writing to commence any condemnation proceeding or other proceeding in eminent domain with respect to all or any portion of the Real Property not already conveyed pursuant to this Agreement (each, a "<u>Condemnation</u>"), Seller shall give written notice of the Condemnation to Purchaser promptly after Seller receives notice of the Condemnation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2.1<u>Material Condemnation</u>. If the Condemnation would (a) result in the permanent loss of value equal to more than six percent (6%) of the Purchase Price; or (b) result in any permanent material reduction or restriction in access to the Land or Improvements or parking for the Property; or (c) results in the permanent failure of the Property to remain in compliance in all material respects with Applicable Law with respect to zoning and building and fire codes even following any renovations to address the Condemnation (each, a "<u>Material Condemnation</u>"), then Purchaser shall have the right to elect, by providing written notice to Seller, within ten (10) days after Purchaser's receipt of Seller's written notice of the Material Condemnation, to (i) terminate this Agreement by providing written notice to each other Party, subject to the provisions of <u>Section 17.23</u> hereof, or (ii) proceed to Closing, without terminating this Agreement, in which case Seller shall assign to Purchaser all of Seller's right, title and interest in all proceeds and awards from the Material Condemnation. If Purchaser fails to provide written notice of its election to Seller within such time period, then Purchaser shall be deemed to have elected to terminate this Agreement pursuant to clause (i) above. If the Closing is scheduled to occur within Purchaser's ten (10) day election period, the Closing shall be postponed until the date which is five (5) Business Days after the expiration of such ten (10) day election period. Purchaser shall have the right to a refund of the Deposit and shall receive the prompt refund of such amount following the termination of this Agreement pursuant to this <u>Section 15.2.1</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2.2<u>Non-Material Condemnation</u>. In the event of any Condemnation, other than a Material Condemnation, Purchaser shall not have the right to terminate this Agreement but shall proceed to Closing, in which case, Seller shall assign to Purchaser all of Seller's right, title and interest in all proceeds and awards from the Condemnation.

**ARTICLE 16<br>SURVIVAL, INDEMNIFICATION AND RELEASE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1<u>Survival</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.1<u>Survival of Seller's Representations, Warranties and Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)None of the representations and warranties of Seller set forth in this Agreement or in any schedule, document or certificate delivered in connection with the Closing shall survive the Closing Date and the consummation of the transactions contemplated hereby. All covenants or agreements of Seller the performance of which is to take place at or prior to the Closing (the "<u>Pre-Closing Covenants</u>") set forth in this Agreement or in any schedule, document or certificate delivered in connection with the Closing shall not survive the Closing Date, except as otherwise expressly set forth herein, and, without duplication, for the obligations of Seller arising under its covenants in (a) <u>Section 3.5</u> (the "<u>Purchase Price Allocation Covenants</u>"), which shall survive the Closing Date and the consummation of the Transaction as further described in <u>Section 3.5</u>, (b) <u>Section 8.1</u> (the "<u>Confidentiality Covenants</u>"), which shall survive the Closing Date and the consummation of the Transaction or the termination of this Agreement for a period of one (1) year, (c) <u>Section 9.1</u> (the "<u>Broker Covenants</u>"), which shall survive the Closing Date and the consummation of the Transaction or the termination of this Agreement, (d) <u>Article 12</u> hereof, which shall survive the Closing Date and the consummation of the Transaction as further described in <u>Section 12.2</u> (the "<u>Proration Covenants</u>" and together with the Purchase Price Allocation Covenants, Confidentiality Covenants, the Broker Covenants, and any other covenant or agreement of Seller set forth in this Agreement which expressly survives the Closing, the "<u>Post-Closing Covenants</u>"). No claim may be asserted nor may any action be commenced against Seller for breach of any Post-Closing Covenant, unless written notice of such claim or action is received by Seller, describing in reasonable detail the facts and circumstances with respect to the subject matter of such claim or action, on or prior to the applicable time periods set forth in this <u>Section 16.1.1(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)From and after the Closing, Purchaser, on behalf of itself and its Affiliates, acknowledges and agrees that neither Seller nor any of the Seller Indemnitees shall have any liability or obligation to Purchaser, its Affiliates, or any other Person arising from or with respect to any breach of any of the representations, warranties and Pre-Closing Covenants of Seller contained in this Agreement or in any schedule, certificate or other document delivered pursuant hereto or any action taken or omitted, at or prior to the Closing, by Seller or any of the Seller Indemnitees in connection with, relating to or otherwise arising out of this Agreement, any schedule, certificate or other document delivered pursuant hereto or any of the transactions contemplated herein or therein, in each case, except as otherwise expressly set forth herein; provided, however, that notwithstanding the foregoing, Seller shall remain liable for its obligations arising under the Post-Closing Covenants, as provided and for the periods set forth in <u>Section 16.1.1</u>. FROM AND AFTER THE CLOSING, EXCEPT FOR THE POST-CLOSING COVENANTS, PURCHASER, ON BEHALF OF ITSELF, ITS AFFILIATES, AND THEIR RESPECTIVE REPRESENTATIVES, WAIVES AND RELEASES ANY AND ALL CLAIMS AGAINST SELLER OR ANY OF THE SELLER INDEMNITEES FOR ANY LOSSES, LIABILITIES, DAMAGES, COSTS OR CLAIMS INCURRED AS A RESULT OF OR WITH RESPECT TO ANY BREACH OF ANY OF THE REPRESENTATIONS, WARRANTIES AND PRE-CLOSING COVENANTS OF SELLER CONTAINED IN THIS AGREEMENT OR IN ANY SCHEDULE, CERTIFICATE OR OTHER DOCUMENT DELIVERED PURSUANT

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HERETO OR ANY ACTION TAKEN OR OMITTED, AT OR PRIOR TO THE CLOSING, BY SELLER OR ANY OF THE SELLER INDEMNITEES IN CONNECTION WITH, RELATING TO OR OTHERWISE ARISING OUT OF THIS AGREEMENT, ANY SCHEDULE, CERTIFICATE OR OTHER DOCUMENT DELIVERED PURSUANT HERETO OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN. Purchaser acknowledges that it has had, or will have prior to the Closing the opportunity to consider and arrange to obtain, at Purchaser's cost, other means to protect itself from such losses, liabilities, damages, costs or claims, including without limitation representations and warranties insurance, tax status insurance, UCC owner insurance or other insurance products. Nothing herein shall operate to limit or eliminate the common law liability of Seller to Purchaser for actual fraud in the event Seller has intentionally and knowingly (as opposed to any claim based on negligence, recklessness, imputed or constructive knowledge, statute or other theory) committed fraud against Purchaser, with the specific intent to deceive and mislead Purchaser, regarding the representation and warranties made by Seller in this Agreement or in any schedule, certificate or document delivered pursuant hereto, provided that such representations and warranties were made with actual knowledge of the falsity thereof by the individual Seller representative who made such representation or warranty (as opposed to any fraud claim based on negligence, recklessness, imputed or constructive knowledge, statute or other theory), and specifically excluding constructive fraud and negligent fraud ("<u>Fraud</u>") and only to the extent the Purchaser was materially and adversely impacted by said Fraud. The terms of this <u>Section 16.1.1(b)</u> shall survive the termination or the Closing under this Agreement, without limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2<u>Indemnification by Purchaser</u>. Purchaser and each assignee of Purchaser, shall indemnify and hold harmless the Seller Indemnitees from and against any Indemnification Loss incurred by any Seller Indemnitee to the extent resulting from (a) any breach of any express representations or warranties of Purchaser in this Agreement which survives the termination or expiration of this Agreement in accordance with the express terms hereof; (b) any breach by Purchaser of any of its covenants or obligations under this Agreement which expressly survives the termination or expiration of this Agreement in accordance with the express terms hereof; and (c) any matter for which Purchaser has otherwise expressly agreed to indemnify the Seller Indemnitees and (d) any Assumed Liabilities. Notwithstanding anything to the contrary in this Agreement no Seller Indemnitee shall be entitled to defense or indemnification to the extent the Indemnification Loss results from the gross negligence or willful misconduct of, or breach of this Agreement by, any Seller Indemnitee. This <u>Section 16.2</u> shall survive the Closing as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3<u>Effect of Taxes, Insurance or Other Reimbursement</u>.Notwithstanding anything to the contrary in this Agreement, the amount of any Indemnification Loss for which indemnification is provided to an Indemnitee under this <u>Article 16</u> shall be net of any tax benefits realized or insurance proceeds received by the Indemnitee in connection with the Indemnification Claim, or any other third-party reimbursement. The Indemnitee shall use commercially reasonable efforts to realize any tax benefit, collect any insurance proceeds or obtain any third party reimbursement with respect to the Indemnification Claim, and if such tax benefits, insurance proceeds or reimbursement are realized or obtained by the Indemnitee after the Indemnitor has paid any amount in respect of an Indemnification Loss to the Indemnitee, the Indemnitee shall reimburse the amount realized or collected by the Indemnitee up to the amount received from the Indemnitor for the Indemnification Loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4<u>Waiver of Certain Damages</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT OR UNDER APPLICABLE LAW, SELLER (FOR ITSELF AND ALL SELLER INDEMNITEES) AND PURCHASER (FOR ITSELF AND ALL PURCHASER INDEMNITEES) HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES AND DISCLAIMS ALL RIGHTS TO CLAIM OR SEEK ANY CONSEQUENTIAL, PUNITIVE, EXEMPLARY, STATUTORY OR TREBLE DAMAGES (EXCEPT TO THE EXTENT SUCH DAMAGES ARE ACTUALLY PAYABLE TO THIRD PARTIES FOR WHICH THE PARTY WHO INCURRED SUCH DAMAGES IS SEEKING

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INDEMNIFICATION FOR SAME AGAINST THE OTHER PARTY PURSUANT TO THE TERMS AND CONDITIONS OF THIS AGREEMENT) AND ACKNOWLEDGE AND AGREE THAT THE RIGHTS AND REMEDIES IN THIS AGREEMENT WILL BE ADEQUATE IN ALL CIRCUMSTANCES FOR ANY CLAIMS THE PARTIES (OR ANY INDEMNITEE) MIGHT HAVE WITH RESPECT THERETO. The provisions of this <u>Section 16.4</u> shall survive the Closing and the termination of this Agreement indefinitely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5<u>Indemnification Procedure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5.1<u>Notice of Indemnification Claim</u>. If any of Seller Indemnitees or Purchaser Indemnitees (as the case may be) (each, an "<u>Indemnitee</u>") is entitled to defense or indemnification under any express provision in this Agreement (each, an "<u>Indemnification Claim</u>"), the Party required to provide defense or indemnification to the Indemnitee (the "<u>Indemnitor</u>") shall not be obligated to defend, indemnify and hold harmless the Indemnitee unless and until the Indemnitee provides written notice to the Indemnitor promptly after the Indemnitee has actual knowledge of any facts or circumstances on which the Indemnification Claim is based or a Third-Party Claim is made on which the Indemnification Claim is based, describing in reasonable detail such facts and circumstances or Third-Party Claim with respect to the Indemnification Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5.2<u>Resolution of Indemnification Claim Not Involving Third-Party Claim</u>. If the Indemnification Claim does not involve a Third-Party Claim and is disputed by the Indemnitor, the dispute shall be resolved by litigation or other means of alternative dispute resolution as the Parties may agree in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5.3<u>Resolution of Indemnification Claim Involving Third-Party Claim</u>. If the Indemnification Claim involves a Third-Party Claim, the Indemnitor shall have the right (but not the obligation) to assume the defense of the Third-Party Claim, at its cost and expense, and shall use good faith efforts consistent with prudent business judgment to defend the Third-Party Claim, provided that (a) the counsel for the Indemnitor who shall conduct the defense of the Third-Party Claim shall be reasonably satisfactory to the Indemnitee (unless selected by Indemnitor's insurance company); (b) the Indemnitee, at its cost and expense, may participate in, but shall not control, the defense of the Third-Party Claim; and (c) the Indemnitor shall not enter into any settlement or other agreement which requires any performance by the Indemnitee, other than the payment of money which shall be paid by the Indemnitor. The Indemnitee shall not enter into any settlement or other agreement with respect to the Indemnification Claim, without the Indemnitor's prior written consent, which consent may be withheld in Indemnitor's sole discretion. If the Indemnitor elects not to assume the defense of the Third-Party Claim, the Indemnitee shall have the right to retain the defense of the Third-Party Claim and shall use good faith efforts consistent with prudent business judgment to defend the Third-Party Claim in an effective and cost-efficient manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6<u>Accrual of Indemnification Obligation</u>. Notwithstanding anything to the contrary in this Agreement, the Indemnitee shall have no right to indemnification against the Indemnitor for any Indemnification Claim which (a) does not involve a Third-Party Claim but is disputed by Indemnitor until such time as the dispute is resolved by written agreement or other means as the Parties otherwise may agree in writing; or (b) which involves a Third-Party Claim until such time as the Third-Party Claim is concluded, including any appeals with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7<u>Exclusive Remedy for Indemnification Loss</u>. Except for claims based on Fraud, the indemnification provisions in this <u>Article 16</u> shall be the sole and exclusive remedy of any Indemnitee with respect to any claim for Indemnification Loss arising from or in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8<u>Release</u>. Upon Closing, Purchaser, on behalf of itself and the Purchaser Indemnitees, assumes the risk that adverse matters, including but not limited to, construction defects, adverse physical, environmental, hazardous materials, endangered species, zoning,

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access or water course issues or conditions, may not have been revealed by Purchaser's investigations. Purchaser, on behalf of itself and the Purchaser Indemnitees, waives its right to recover from, and forever releases and discharges all Seller Indemnitees from, any and all liability, claims, demands, damages and costs (including attorneys' fees and expenses) of any and every kind or character, known or unknown, for, arising out of, or attributable to, the Property and the Business or any latent or patent issue or condition at the Property or the Business, including without limitation, claims, liabilities and contribution rights relating to the presence, discovery or removal of any Hazardous Substances in, at, about or under the Property, or for, connected with or arising out of any and all claims or causes of action based thereon. It is the intention of the Parties that the foregoing release shall be effective with respect to all matters, past and present, known and unknown, suspected and unsuspected. Purchaser realizes and acknowledges that factual matters now unknown to it may have given or may hereafter give rise to losses, damages, liabilities, costs and expenses which are presently unknown, unanticipated and unsuspected, and Purchaser further agrees that the waivers and releases herein have been negotiated and agreed upon in light of that realization and that Purchaser nevertheless hereby intends to release, discharge and acquit all Seller Indemnitees from any such unknown losses, damages, liabilities, costs and expenses in accordance with terms and conditions of this Agreement. Notwithstanding the foregoing, such release from Purchaser shall not apply to (i) any act of Fraud by Seller with respect to the Property or the transactions contemplated by this agreement or (ii) any matters for which Seller is expressly liable hereunder or is required to indemnify Purchaser or Purchaser Indemnitees pursuant to the express terms hereof or any of the Seller Closing Deliveries. The provisions of this <u>Section 16.8</u> shall survive the Closing indefinitely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9<u>Representation and Warranty Insurance</u>. On or about the date hereof and effective as of the Effective Date, or prior to the Closing, Purchaser may acquire a buyer-side representations and warranties insurance policy in connection with the transactions contemplated by this Agreement (the "<u>Insurance Policy</u>"). Purchaser shall pay the premium and other costs to obtain the Insurance Policy (including all taxes thereon), and Seller will have no liability for such premium or costs. The parties agree that the Insurance Policy, if obtained, shall not contain any requirements for the Purchaser to bring any claims against Seller and shall further include: (i) an express waiver at all times of the insurer's rights of subrogation, contribution and rights acquired by assignment against any Seller in respect of claims made by the Purchaser under the Insurance Policy, except with respect to losses paid by the insurer arising or resulting from Fraud, (ii) an acknowledgement by the insurer that the Seller is entitled to enforce such waiver as a third-party beneficiary, and (iii) an agreement by the insurer that such waiver shall not be altered without the written consent of the Seller. Seller shall use commercially reasonable efforts to provide such cooperation (at no out-of-pocket cost to Seller) in connection with the Insurance Policy as may be reasonably requested by Purchaser and which is customary in connection with the issuance of the Insurance Policy. The Parties acknowledge and agree that the Insurance Policy is intended to be a contract between Purchaser and the insurer under the Insurance Policy separate and apart from this Agreement. As such, none of the limitations or provisions set forth in any provision of this Agreement shall in any way limit, affect, restrict, modify or impair the ability of Purchaser to make claims under or recover under the Insurance Policy or any of Purchaser's other rights under the Insurance Policy. The provisions of this <u>Section 16.9</u> shall survive the Closing indefinitely.

**ARTICLE 17<br>MISCELLANEOUS PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1<u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.1<u>Method of Delivery</u>. All notices, requests, demands and other communications required to be provided by any Party under this Agreement (each, a "<u>Notice</u>") shall be in writing and delivered, at the sending Party's cost and expense, by (a) personal delivery, (b) overnight courier service, or (c) email transmission, with a verification copy sent

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within one Business Day by any of the methods set forth in clauses (a) or (b), to the recipient Party at the following physical address or email address:

<u>If to Seller:</u>

 [\*\*\*]<br>With a copy to: <br> [\*\*\*]

with a copy to:

**Until April 30, 2026:**

[\*\*\*]

**From and after May 1, 2026:**

[\*\*\*]

<u>If to Purchaser</u>:

[\*\*\*]

With copies to:

[\*\*\*]

<u>If to Escrow Agent</u>:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.2<u>Receipt of Notices</u>. All Notices sent by a Party (or its counsel pursuant to <u>Section 17.1.4</u>) under this Agreement shall be deemed to have been received by the Party to whom such Notice is sent upon (a) delivery to the physical address or email address of the recipient Party, provided that such delivery is made prior to 5:00 p.m. (local time for the recipient Party) on a Business Day, otherwise the following Business Day, or (b) the attempted delivery of such Notice if (i) the recipient Party refuses delivery of such Notice, or (ii) such recipient Party is no longer at such physical address or email address, and such recipient Party failed to provide such sending Party with its current physical address or email address pursuant to <u>Section 17.1.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.3<u>Change of Address</u>. The Parties and their respective counsel shall have the right to change their respective physical address and/or email address for the purposes of this

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<u>Section 17.1</u> by providing a Notice of such change in address and/or email address as required under this <u>Section 17.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1.4<u>Delivery by Party's Counsel</u>. The Parties agree that the attorney for such Party shall have the authority to deliver Notices on such Party's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2<u>Joint and Several Liabilities and Obligations</u>. Notwithstanding anything to the contrary contained herein, the obligations and liabilities of each person comprising the named Purchaser hereunder shall be joint and several in all regards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3<u>Time is of the Essence</u>. Time is of the essence of this Agreement; provided, however, that notwithstanding anything to the contrary in this Agreement, if the time period for the performance of any covenant or obligation, satisfaction of any condition or delivery of any Notice or item required under this Agreement shall expire on a day other than a Business Day, such time period shall be extended automatically to the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4<u>Assignment</u>. Purchaser shall not assign this Agreement or any interest therein to any Person, without the prior written consent of Seller (which consent may be withheld in Seller's sole and absolute discretion). Notwithstanding the foregoing, Purchaser shall have the right, without the need to obtain the prior consent of Seller, but subject to prior written notice thereof to Seller, to designate any Affiliate or Affiliates of any of Purchaser, Trinity Real Estate Investments LLC, and/or Sculptor Real Estate Advisors LP as its nominee to receive title to all or any portion of the Property, or assign all of its right, title and interest in this Agreement to any Affiliate of Purchaser by providing written notice to Seller no later than ten (10) days prior to Closing; provided, however, that (a) the Affiliate remains an Affiliate of Purchaser; (b) Purchaser shall not be released until Closing from any of its liabilities and obligations under this Agreement by reason of such designation or assignment; (c) Purchaser shall indemnify Seller from and against any transfer tax liability, or similar taxes and/or assessments, that Seller may suffer as a result of the foregoing; and (d) such designation or assignment shall not be effective until Purchaser has provided Seller with a fully executed copy of such designation or assignment and assumption instrument at or prior to Closing, which shall (e) provide that Purchaser and such designee or assignee shall be until Closing (after which time Purchaser shall be released and its designee shall remain liable) jointly and severally liable for all liabilities and obligations of Purchaser under this Agreement, (i) provide that Purchaser and its designee or assignee agree to pay any additional transfer tax as a result of such designation or assignment, and (ii) include a representation and warranty in favor of Seller that all representations and warranties made by Purchaser in this Agreement are true and correct with respect to such designee or assignee as of the date of such designation or assignment, and will be true and correct as of the Closing. This <u>Section 17.4</u> shall survive Closing as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.5<u>Successors and Assigns</u>. Subject to <u>Section 17.4,</u> this Agreement shall be binding upon and inure to the benefit of the Parties, and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6<u>Third Party Beneficiaries</u>. This Agreement shall not confer any rights or remedies on any Person other than (a) the Parties and their respective successors and permitted assigns; and (b) any Indemnitee to the extent the Indemnitee is expressly provided any right of defense or indemnification in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.7<u>GOVERNING LAW</u>. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF FLORIDA, WITHOUT GIVING EFFECT TO ANY PRINCIPLES REGARDING CONFLICT OF LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8<u>Rules of Construction</u>. The following rules shall apply to the construction and interpretation of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8.1Singular words shall connote the plural as well as the singular, and plural words shall connote the singular as well as the plural, and the masculine shall include the feminine and the neuter, as the context may require.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8.2All references in this Agreement to particular articles, sections, subsections or clauses (whether in upper or lower case) are references to articles, sections, subsections or clauses of this Agreement. All references in this Agreement to particular exhibits or schedules (whether in upper or lower case) are references to the exhibits and schedules attached to this Agreement, unless otherwise expressly stated or clearly apparent from the context of such reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8.3The headings in this Agreement are solely for convenience of reference and shall not constitute a part of this Agreement nor shall they affect its meaning, construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8.4Each Party and its counsel have reviewed and revised (or requested revisions of) this Agreement and have participated in the preparation of this Agreement, and therefore any rules of construction requiring that ambiguities are to be resolved against the Party which drafted this Agreement or any exhibits attached hereto shall not be applicable in the construction and interpretation of this Agreement or any exhibits attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8.5The terms "hereby," "hereof," "hereto," "herein," "hereunder" and any similar terms shall refer to this Agreement, and not solely to the provision in which such term is used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8.6The terms "include," "including" and similar terms shall be construed as if followed by the phrase "without limitation."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8.7The term "sole discretion" with respect to any determination to be made a Party under this Agreement shall mean the sole and absolute discretion of the Party, without regard to any standard of reasonableness or other standard by which the determination of the Party might be challenged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.9<u>Severability</u>. If any term or provision of this Agreement is held to be or rendered invalid or unenforceable at any time in any jurisdiction, such term or provision shall not affect the validity or enforceability of any other terms or provisions of this Agreement, or the validity or enforceability of such affected term or provision at any other time or in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.10<u>JURISDICTION AND VENUE</u>. THE PARTIES AGREE THAT ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, FORT MYERS DIVISION (OR, IF SUCH FEDERAL COURT LACKS SUBJECT MATTER JURISDICTION, IN THE CIRCUIT COURT IN AND FOR COLLIER COUNTY, FLORIDA). EACH PARTY IRREVOCABLY CONSENTS TO THE PERSONAL JURISDICTION OF SUCH COURTS, AGREES THAT THE VENUE FOR ANY SUCH ACTION OR PROCEEDING SHALL BE EXCLUSIVELY IN THE SPECIFIED JURISDICTIONS, AND WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR THE CLAIM THAT SUCH FORUM IS AN INCONVENIENT FORUM, WHICH SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.11<u>WAIVER OF TRIAL BY JURY</u>. EACH PARTY HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY LITIGATION OR OTHER COURT PROCEEDING WITH RESPECT TO ANY MATTER ARISING FROM OR IN CONNECTION WITH THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.12<u>Prevailing Party</u>. If any litigation or other court action, arbitration or similar adjudicatory proceeding is commenced by any Party to enforce its rights under this Agreement against any other Party, all fees, costs and expenses, including, without limitation, reasonable attorneys' fees and court costs, incurred by the prevailing Party in such litigation, action,

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arbitration or proceeding shall be reimbursed by the losing Party; provided, that if a Party to such litigation, action, arbitration or proceeding prevails in part, and loses in part, the court, arbitrator or other adjudicator presiding over such litigation, action, arbitration or proceeding shall award a reimbursement of the fees, costs and expenses incurred by the Party on an equitable basis. This <u>Section 17.12</u> shall survive the Closing as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.13<u>Exculpation</u>. Purchaser and Seller acknowledge and agree that Purchaser and Seller shall look solely to the assets of Seller or Purchaser (or Purchaser's designee, post-Closing), respectively, for the enforcement of any claims against Seller or Purchaser (or Purchaser's designee), as the case may be, and the officers, directors, partners, members, shareholders, trustees, employees and agents of Advisor, Seller or Purchaser (or Purchaser's designee) assume no personal liability for the liabilities and obligations entered into by Seller or Purchaser, respectively, and its individual assets shall not be subject to any claims relating to such liabilities and obligations. This <u>Section 17.13</u> shall survive the Closing as well as the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.14<u>Incorporation of Recitals, Exhibits and Schedules</u>. The recitals to this Agreement, and all exhibits and schedules (as amended, modified and supplemented from time to time pursuant to <u>Section 14.3</u> hereof) referred to in this Agreement are incorporated herein by this reference and made a part of this Agreement. Any matter disclosed in any schedule to this Agreement shall be deemed to be incorporated in all other schedules to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.15<u>Entire Agreement</u>. This Agreement sets forth the entire understanding and agreement of the Parties hereto, and supersedes all other agreements and understandings (written or oral) among the Parties with respect to the subject matter hereof and thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.16<u>Amendments, Waivers and Termination of Agreement</u>. No amendment or modification to any terms or provisions of this Agreement, waiver of any covenant, obligation, breach or default under this Agreement or termination of this Agreement (other than as expressly provided in this Agreement), shall be valid unless in writing and executed and delivered by each of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.17<u>Not an Offer</u>. The delivery by Seller of this Agreement executed by Seller shall not constitute an offer to sell the Property, and Seller shall have no obligation to sell the Property to Purchaser, unless and until all Parties have executed and delivered this Agreement to all other Parties. Purchaser understands and agrees that Seller shall have the right to continue to market the Property and/or negotiate with other potential purchasers of the Property until the satisfaction or waiver in writing of all conditions to the obligations of Purchaser under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.18<u>Execution of Agreement</u>. A Party may deliver executed signature pages to this Agreement by electronic transmission (by email) to any other Party, which .pdf copy shall be deemed to be an original executed signature page. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which counterparts together shall constitute one agreement with the same effect as if the Parties had signed the same signature page.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.19<u>Computation of Time</u>. The time in which any act under this Agreement is to be done shall be computed by excluding the first day and including the last day. If the last day of any time period stated herein shall fall on a Saturday, Sunday or legal holiday, then the duration of such time period shall be extended so that it shall end on the next succeeding day which is not a Saturday, Sunday or legal holiday. Unless preceded by the word "business," the word "day" shall mean a calendar day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.20<u>Radon</u>. RADON IS A NATURALLY OCCURRING RADIOACTIVE GAS, THAT, WHEN IT HAS ACCUMULATED IN A BUILDING IN SUFFICIENT QUANTITIES, MAY PRESENT HEALTH RISKS TO PERSONS WHO ARE EXPOSED TO IT OVER TIME. LEVELS OF RADON THAT EXCEED FEDERAL AND STATE GUIDELINES HAVE BEEN FOUND IN BUILDINGS IN FLORIDA. ADDITIONAL INFORMATION REGARDING RADON AND RADON TESTING MAY BE OBTAINED FROM YOUR COUNTY HEALTH DEPARTMENT. THIS NOTICE IS GIVEN PURSUANT TO SECTION 404.056(5), FLORIDA STATUTES.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.21<u>No Recording</u>. Neither this Agreement nor any memorandum or notice thereof may be filed or recorded in any land records, except that a *lis pendens* may be filed confirming the existence of this Agreement (but not the terms thereof) (a "<u>Lis Pendens</u>") in connection with litigation to enforce Purchaser's right of specific performance under this Agreement. Any such recording of the Agreement or memorandum or notice thereof (other than a Lis Pendens) shall constitute a default under this Agreement and Seller may cause the release or removal of any such recording simply by recording this Agreement provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.22<u>Termination Provisions</u>. In connection with the rights that Purchaser has to terminate this Agreement pursuant to <u>Sections 5.3.2</u>, <u>7.1.3</u>, <u>10.1.2</u>, <u>10.2.1</u>, <u>10.2.2</u>, <u>14.1</u>, <u>15.1.1</u> and <u>15.2.1</u>: (a) the parties hereto shall have no further rights or obligations under this Agreement except those which expressly survive termination of this Agreement in accordance with the terms hereof, and (b) the Deposit shall be promptly returned to Purchaser.

**ARTICLE 18<br>GENERAL ESCROW PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1<u>General Escrow Provisions</u>. The obligations and rights of the Escrow Agent under this Agreement shall be subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.1<u>Duties</u>. The duties and obligations of Escrow Agent shall be determined solely by the express provisions of this Agreement and no implied duties or obligations shall be implied against Escrow Agent. Further, Escrow Agent shall be under no obligation to refer to any other document between or among Purchaser and Seller referred to in or related to this Agreement, unless Escrow Agent is provided with a copy of such document and consents thereto in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.2<u>Liability of Escrow Agent</u>. Escrow Agent shall not be liable to anyone by reason of performance of its duties hereunder, unless caused by or arising out of Escrow Agent's actual and intentional misconduct, negligence, or breach of the escrow provisions of this Agreement or any separate escrow instructions required by Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.3<u>Reliance by Escrow Agent</u>. Escrow Agent shall be entitled to rely, and shall be protected in acting in reliance, upon any writing furnished to Escrow Agent by either Purchaser or Seller and shall be entitled to treat as genuine, and as the document it purports to be, any letter, paper or other document furnished to Escrow Agent. Escrow Agent may rely on any affidavit of either Purchaser or Seller or any other person as to the existence of any facts stated therein to be known by the affiant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.4<u>Deposit</u>. If Seller shall become entitled to retain or receive the Deposit or other amount paid under this Agreement, Escrow Agent shall pay the same to Seller with all interest earned thereon and if Purchaser shall become entitled to a return of the Deposit or other amount paid under this Agreement, Escrow Agent shall pay the same to Purchaser together with all interest earned thereon; provided, however, that no disbursement pursuant to this subsection shall be made by Escrow Agent until the third (3rd) Business Day following the receipt or deemed receipt of notice by Seller and Purchaser from Escrow Agent of its intention to so disburse, and disbursement made by Escrow Agent after the passage of such three (3) Business Day period shall relieve Escrow Agent from all liability in connection with such disbursement unless such disbursement is proscribed by order of a court of competent jurisdiction or objected to in writing by Seller or Purchaser. If such disbursement is objected to in writing by Seller or Purchaser within such three (3) Business Day period, then Escrow Agent shall not make such disbursement until unanimously instructed in writing by Purchaser and Seller, or is directed to make such disbursement by a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.5<u>Disputes</u>. In the event of any disagreement between Purchaser and Seller resulting in adverse claims and demands being made in connection with or against the funds held in escrow, Escrow Agent shall refuse to comply with the claims or demands of either party until

&nbsp;&nbsp;&nbsp;&nbsp;63&nbsp;&nbsp;&nbsp;&nbsp;

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such disagreement is finally resolved (a) by a court of competent jurisdiction (in proceedings which Escrow Agent or any other party may initiate, it being understood and agreed by Purchaser and Seller that Escrow Agent has authority (but not the obligation) to initiate such proceedings), or (b) by an arbitrator in the event that Purchaser and Seller mutually and jointly determine to submit the dispute to arbitration pursuant to the rules of the American Arbitration Association, and in so doing Escrow Agent shall not be or become liable to a party, or (c) by written settlement between Purchaser and Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.6<u>Indemnification of Escrow Agent</u>. Purchaser and Seller each agree to jointly and severally indemnify and hold harmless Escrow Agent against any and all Liabilities in any way incurred by Escrow Agent (except to the extent arising from negligence, willful misconduct or breach of this Agreement by Escrow Agent) in connection with or as a result of any disagreement between Purchaser and Seller under this Agreement or otherwise incurred by Escrow Agent in any way on account of its role as Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.7<u>Interpleader</u>. Escrow Agent may pay the Deposit into a court of competent jurisdiction upon commencement by the Escrow Agent of an interpleader action in such court. The reasonable out-of-pocket costs and attorneys' fees of the Escrow Agent for such interpleader action shall be paid by the losing party in such interpleader action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.8<u>Reporting Person</u>. Seller and Purchaser hereby name the Escrow Agent as the "Reporting Person" under Section 6045(e) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.9<u>Further Assurances</u>. From time to time on and after the date hereof, Seller and Purchaser shall deliver or cause to be delivered to Escrow Agent such further documents and instruments and shall do and cause to be done such further acts as Escrow Agent shall reasonably request (it being understood that Escrow Agent shall have no obligation to make any such request) to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.10<u>Resignation of Escrow Agent</u>. Escrow Agent may resign at any time as Escrow Agent hereunder upon giving five (5) days' prior written notice to that effect to both Seller and Purchaser. In such event, the successor Escrow Agent shall be a nationally recognized title insurance company or other person acceptable to both Seller and Purchaser. Such party that will no longer be serving as Escrow Agent shall deliver, against receipt, to such successor Escrow Agent, the Deposit held by such party, to be held by such successor Escrow Agent pursuant to the terms and provisions of this Agreement. If no such successor has been designated on or before such party ceases to be Escrow Agent hereunder, whether by resignation or otherwise, its obligations as Escrow Agent shall continue until such successor is appointed, provided, however, its sole obligation thereafter shall be to safely keep all monies then held by it and to deliver the same to the person, firm or corporation designated as its successor or until directed by a final order or judgment of a court of competent jurisdiction, whereupon Escrow Agent shall make disposition thereof in accordance with such order. If no successor Escrow Agent is designated and qualified within five (5) days after its resignation is effective, such party that will no longer be serving as Escrow Agent may apply to any court of competent jurisdiction for the appointment of a successor Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.11<u>Survival</u>. The provisions of this <u>Article 18</u> shall survive the Closing or any termination of this Agreement.

[signature page to follow]

&nbsp;&nbsp;&nbsp;&nbsp;64&nbsp;&nbsp;&nbsp;&nbsp;

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IN WITNESS WHEREOF, each Party has caused this Agreement to be executed and delivered in its name by a duly authorized officer or representative.

SELLER:

**HOTEL OWNER**:

**MARCO HOTEL LLC**, <br>a Delaware limited liability company

By: <u>/s/ Justin Epps</u>__________

Name: Justin Epps

Title: Managing Director

**GOLF OWNER**:

**HB NAPLES GOLF OWNER LLC**,

a Delaware limited liability company

By: <u>/s/ Justin Epps</u>_______________________

Name: Justin Epps<br>Title: Managing Director

&nbsp;&nbsp;&nbsp;&nbsp;65&nbsp;&nbsp;&nbsp;&nbsp;

------

<u>PURCHASER</u>:

**MIH PROPCO LLC**

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Steven Orbuch&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name:&nbsp;&nbsp;&nbsp;&nbsp;Steven Orbuch<br>Title:&nbsp;&nbsp;&nbsp;&nbsp;Officer

**MIH ROOKERY LLC** 

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Steven Orbuch&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name:&nbsp;&nbsp;&nbsp;&nbsp;Steven Orbuch<br>Title:&nbsp;&nbsp;&nbsp;&nbsp;Officer

**MIH HAMMOCK BAY LLC** 

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Steven Orbuch&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name:&nbsp;&nbsp;&nbsp;&nbsp;Steven Orbuch<br>Title:&nbsp;&nbsp;&nbsp;&nbsp;Officer

&nbsp;&nbsp;&nbsp;&nbsp;66&nbsp;&nbsp;&nbsp;&nbsp;

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**<u>JOINDER OF ESCROW AGENT</u>**

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, and intending to be legally bound hereby, Escrow Agent hereby joins in this Agreement solely to acknowledge its agreement to be bound by the terms and conditions set forth in this Agreement.

AGREED AND ACCEPTED THIS 27th DAY OF FEBRUARY, 2026.

---

| | |
|:---|:---|
| ESCROW AGENT:<br>**CHICAGO TITLE INSURANCE COMPANY** | ESCROW AGENT:<br>**CHICAGO TITLE INSURANCE COMPANY** |
| By: | /s/Jennifer J. Corbo |
| Name: | Jennifer J. Corbo |
| Title: | AVP, Sr. Commercial Escrow Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;67&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

**PURSUANT TO 17 CFR 240.13a-14**

**PROMULGATED UNDER**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Steven Orbuch, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Sculptor Diversified Real Estate Income Trust, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| | | **Sculptor Diversified Real Estate Income Trust, Inc.** | **Sculptor Diversified Real Estate Income Trust, Inc.** |
| Date: | May 14, 2026 | By: | /s/ Steven Orbuch |
|  |  |  | **Steven Orbuch** |
|  |  |  | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

**PURSUANT TO 17 CFR 240.13a-14**

**PROMULGATED UNDER**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Ellen Conti, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Sculptor Diversified Real Estate Income Trust, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| | | **Sculptor Diversified Real Estate Income Trust, Inc.** | **Sculptor Diversified Real Estate Income Trust, Inc.** |
| Date: | May 14, 2026 | By: | /s/ Ellen Conti |
|  |  |  | **Ellen Conti** |
|  |  |  | Chief Financial Officer |
|  |  |  | (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Sculptor Diversified Real Estate Income Trust, Inc. (the "<u>Company</u>") on Form 10-Q for the period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "<u>Report</u>"), I, Steven Orbuch, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | | |
|:---|:---|:---|:---|
| Date: | May 14, 2026 | By: | /s/ Steven Orbuch |
|  |  |  | **Steven Orbuch** |
|  |  |  | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |

---

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Sculptor Diversified Real Estate Income Trust, Inc. (the "<u>Company</u>") on Form 10-Q for the period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "<u>Report</u>"), I, Ellen Conti, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | | |
|:---|:---|:---|:---|
| Date: | May 14, 2026 | By: | /s/ Ellen Conti |
|  |  |  | **Ellen Conti** |
|  |  |  | Chief Financial Officer |
|  |  |  | (Principal Financial Officer) |

---

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

<br>