Document:

Form of Escrow Agreement

 EXHIBIT 10.1 
 Form of Escrow Agreement 

 FORM OF ESCROW AGREEMENT 
 BETWEEN CNL INCOME PROPERTIES, INC. 
 AND WACHOVIA BANK, NA 
 THIS ESCROW AGREEMENT (the “Agreement”) is dated this      day of April, 2006, by and among CNL INCOME PROPERTIES,
INC., a Maryland corporation (the “Company”), CNL SECURITIES CORP., a Florida Corporation (the “Managing Dealer”), and Wachovia Bank, NA (the “Escrow Agent”). This Agreement shall be effective as of the effective date
of the Company’s Registration Statement filed with the Securities and Exchange Commission (the “Effective Date”). 
 WHEREAS,
the Company proposes to offer and sell, on a best-efforts basis through the Managing Dealer and selected broker-dealers who are registered with the National Association of Securities Dealers, Inc. or who are exempt from broker-dealer registration
(the Managing Dealer and such selected broker-dealers are hereinafter referred to collectively as the “Soliciting Dealers”), up to 200,000,000 shares of common stock of the Company (the “Shares”) to investors pursuant to a
registration statement (the “Registration Statement”) filed with the Securities and Exchange Commission; and 
 WHEREAS, the
Company and the Managing Dealer desire to establish an escrow in which funds received from subscribers will be deposited and the Escrow Agent is willing to serve as Escrow Agent upon the terms and conditions herein set forth; and 
 WHEREAS, in order to subscribe for Shares, a subscriber must deliver the full amount of its subscription, subject to volume discounts or net of
commission sales as applicable: (i) by check in U.S. dollars, (ii) by wire transfer of immediately available funds in U.S. dollars, or (iii) as otherwise agreed to by the Company (collectively, the “Payment”). 
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged
by the parties, the parties covenant and agree as follows: 
  

	1.	Establishment of Escrow Accounts. On or prior to the Effective Date, the Company and the Managing Dealer shall establish an interest-bearing escrow account with the Escrow
Agent, which escrow account shall be entitled “WBNA, ESCROW AGENT FOR CNL INCOME PROPERTIES, INC.” (the “Escrow Account”). All monies deposited in the Escrow Account are hereinafter referred to as the “Escrowed Funds.”
The Managing Dealer will, and will cause selected broker-dealers acting as Soliciting Dealers to, instruct subscribers to make Payments for subscriptions payable to the order of the Escrow Agent or the Company. The Managing Dealer may authorize
certain Soliciting Dealers which are “$250,000 broker-dealers” to instruct their customers to make their Payments for Shares subscribed for payable directly to the Soliciting Dealer. In such case, the Soliciting Dealer will collect the
proceeds of the subscribers’ Payments and issue a Payment made payable to the order of the Escrow Agent for the aggregate amount of the subscription proceeds. 

  

	2.	Deposits into the Escrow Account. The Managing Dealer will promptly deliver all monies received from subscribers for the payment of Shares to the Escrow Agent for deposit in
the Escrow Account. 

  

	3.	Collection Procedure. 

  

	 	(a)	The Escrow Agent is hereby authorized to forward each Payment for collection and, upon collection of the proceeds of each Payment, to deposit the collected proceeds in the Escrow
Account or, alternatively, the Escrow Agent may telephone the bank on which the Payment is drawn to confirm that the Payment has been paid. 

  

	 	(b)	Any Payment returned unpaid to the Escrow Agent shall be returned to the Soliciting Dealer that submitted the Payment. In such cases the Escrow Agent will promptly notify the
Company of such return. 

  

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	 	(c)	In the event that the Company rejects any subscription for Shares and, the Escrow agent has already collected funds for such subscription, the Escrow Agent shall promptly issue a
refund Payment to the drawer of the Payment submitted by or on behalf of the rejected or withdrawing subscriber. If the Escrow Agent has not yet collected funds for such subscription but has submitted the Payment relating to such subscription for
collection, the Escrow Agent shall promptly issue a Payment in the amount of such Payment to the rejected or withdrawing subscriber after the Escrow Agent has cleared such funds. If the Escrow Agent has not yet submitted the Payment relating to the
subscription of the rejected or withdrawing subscriber, the Escrow Agent shall promptly remit such Payment directly to the drawer of the Payment submitted by or on behalf of the subscriber. 

  

	4.	Investment of Escrowed Funds. The Escrow Agent, immediately upon receipt of each Payment remitted to it, shall deposit such Payment in a bank account (including, but not
limited to, interest-bearing savings accounts and bank money market account), in short-term certificates of deposit issued by a bank, in short-term securities directly or indirectly issued or guaranteed by the United States Government, or in other
short-term, highly liquid investments with appropriate safety of principal, all as directed by the Company. Interest and dividends earned on such investments shall be similarly reinvested. Following the distribution of Escrowed Funds to the Company
pursuant to Paragraph 5 below, any funds remaining in the Escrow Account shall be invested in bank money market funds or similar instruments as directed by the Company. 

  

	5.	Distribution of Escrowed Funds. The Escrow Agent shall release from the Escrow Account to the Company any and all Escrowed Funds therein together with all interest earned
thereon, upon written request of an officer of the Company. 

  

	6.	Indemnification of Escrow Agent. From and at all times after the date of this Escrow Agreement, the Managing Dealer and the Company, jointly and severally, shall, to the
fullest extent permitted by law, defend, indemnify and hold harmless Escrow Agent and each director, officer, employee, attorney, agent and affiliate of Escrow Agent (collectively, the “Indemnified Parties”) against any and all actions,
claims (whether or not valid), losses, damages, liabilities, costs and expenses of any kind or nature whatsoever (including without limitation reasonable attorneys’ fees, costs and expenses) incurred by or asserted against any of the
Indemnified Parties from and after the date hereof, whether direct, indirect or consequential, as a result of or arising from or in any way relating to any claim, demand, suit, action or proceeding (including any inquiry or investigation) by any
person, including without limitation the Managing Dealer or the Company, whether threatened or initiated, asserting a claim for any legal or equitable remedy against any person under any statute or regulation, including, but not limited to, any
federal or state securities laws, or under any common law or equitable cause or otherwise, arising from or in connection with the negotiation, preparation, execution, performance or failure of performance of this Escrow Agreement or any transactions
contemplated herein, whether or not any such Indemnified Party is a party to any such action, proceeding, suit or the target of any such inquiry or investigation; provided, however, that no Indemnified Party shall have the right to be
indemnified hereunder for any liability finally determined by a court of competent jurisdiction, subject to no further appeal, to have resulted solely from the gross negligence or willful misconduct of such Indemnified Party. Each Indemnified Party
shall, in its sole discretion, have the right to select and employ separate counsel with respect to any action or claim brought or asserted against it, and the reasonable fees of such counsel shall be paid upon demand by the the Managing Dealer and
the Company jointly and severally. The obligations of the Managing Dealer and the Company under this Section 6 shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent. 

 The parties agree that neither the payment by the Managing Dealer or the Company of any claim by Escrow Agent for indemnification hereunder nor the
disbursement of any amounts to Escrow Agent from the Escrow Funds in respect of a claim by Escrow Agent for indemnification shall impair, limit, modify, or affect, as between the Managing Dealer and the Company, the respective rights and obligations
of the Managing Dealer, on the one hand, and the Company, on the other hand, under the Underlying Agreement. 
  

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	7.	Inability to Deliver. In the event that Payments for subscriptions delivered to the Escrow Agent by the Company pursuant to this Agreement are not cleared through normal
banking channels within 120 days after such delivery, the Escrow Agent shall deliver such uncleared Payments to the Company. 

  

	8.	Notice. All notices, requests, demands and other communications or deliveries required or permitted to be given hereunder shall be in writing and shall be deemed to have been
duly given if delivered personally, given by facsimile confirmed by telephone call or deposited for mailing, first class, postage prepaid, registered or certified mail, as follows: 

  

					
		 	If to the subscribers for Shares:	  	To their respective addresses as specified in their Subscription Agreements.
			
		 	If to the Company:	  	CNL Income Properties, Inc.
		 		  	CNL Center at City Commons
		 		  	450 South Orange Avenue
		 		  	Orlando, Florida 32801
		 		  	Attention: Ms Tammie Quinlan, Chief Financial Officer and Executive Vice President; and Amy Sinelli, Vice President and Corporate Counsel
		 		  	(407) 650 – 1000 telephone
		 		  	(407) 540 – 2544 facsimile
			
		 	If to the Managing Dealer:	  	CNL Securities Corp.
		 		  	CNL Center at City Commons
		 		  	450 South Orange Avenue
		 		  	Orlando, Florida 32801
		 		  	Attention: Mr. Robert A. Bourne, President
		 		  	(407) 650 – 1000 telephone
			
		 	If to the Escrow Agent:	  	Wachovia Bank, NA
		 		  	Corporate Trust Group
		 		  	225 Water Street, 3rd Floor
		 		  	Jacksonville, FL 32202
		 		  	Attention: Stephanie Moore

  

	9.	Fees to Escrow Agent. In consideration of the services to be provided by the Escrow Agent hereunder, the Company agrees to pay the fees to the Escrow Agent.

  

	10.	General. 

  

	 	(a)	This Agreement shall be interpreted, construed and enforced in all respects in accordance with the laws of the State of Florida applicable to contracts to be made and performed
entirely in said state. 

  

	 	(b)	The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 

  

	 	(c)	This Agreement sets forth the entire agreement and understanding of the parties with regard to this escrow transaction and supersedes all prior agreements, arrangements and
understandings relating to the subject matter hereof. 

  

	 	(d)	This Agreement may be amended, modified, superseded or cancelled, and any of the terms or conditions hereof may be waived, only by a written instrument executed by each party hereto
or, in the case of a waiver, by the party waiving compliance. The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver in any one
or more instances by any party 

  

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 of any condition, or of the breach of any term contained in this Agreement, whether by conduct or
otherwise, shall be deemed to be, or construed as, a further or continuing waiver of any such condition or breach, or a waiver of any other condition or of the breach of any other terms of this Agreement. 
  

	 	(e)	This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 

  

	 	(f)	This Agreement shall inure to the benefit of the parties hereto and their respective administrators, successors, and assigns. 

  

	11.	Representation of the Company. the Company hereby acknowledges that the status of the Escrow Agent with respect to the offering of the Shares is that of agent only for the
limited purposes herein set forth, and hereby agrees it will not represent or imply that the Escrow Agent, by serving as the Escrow Agent hereunder or otherwise, has investigated the desirability or advisability of an investment in the Shares, or
has approved, endorsed or passed upon the merits of the Shares, nor shall the Company use the name of the Escrow Agent in any manner whatsoever in connection with the offer or sale of the Shares, other than by acknowledgement that it has agreed to
serve as Escrow Agent for the limited purposes herein set forth. 

  

	12.	Resignation of Escrow Agent. Should, at any time, any attempt be made to modify this Agreement in a manner that would increase the duties and responsibilities of the Escrow
Agent, or to modify the Escrow Agreement in any manner that the Escrow Agent shall deem undesirable, the Escrow Agent may resign by notifying the Company. Such resignation shall become effective on the earlier to occur of (i) the acceptance by
a successor Escrow Agent or (ii) sixty (60) days following the date upon which notice was mailed. Until such time as the Escrow Agent has resigned in accordance herewith, the Escrow Agent shall perform its duties hereunder in accordance
with the terms of this Escrow Agreement. 

  

	13.	Acts of God. The Escrow Agent shall not be responsible for any failure or delay in the performance of its obligations under this Agreement arising out of or caused, directly
or indirectly, by circumstances beyond its reasonable control, including without limitation, acts of God, earthquakes, fires, floods, wars, civil or military disturbances, sabotage, epidemics, riots, interruptions, loss or malfunctions of utilities,
computer (hardware or software) or communication service, accidents, labor disputes, acts of civil or military authority, or governmental actions. 

 [SIGNATURES ON FOLLOWING PAGE] 
  

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 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above written.

  

					
		 	“COMPANY”
		 	CNL INCOME PROPERTIES, INC.
			
		 	By:	 	  

		 		 	TAMMIE QUINLAN
		 		 	Chief Financial Officer and EVP
		
		 	“MANAGING DEALER”
		 	CNL SECURITIES CORP.
			
	Attest:
                                    	 	By:	 	  

		 		 	ROBERT A. BOURNE, President
		
		 	“ESCROW AGENT”
		 	WACHOVIA BANK, NA
			
	Attest:
                                    	 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

  

 5Form of Advisory Agreement

 EXHIBIT 10.2 
 Form of Advisory Agreement 

 ADVISORY AGREEMENT 
 THIS ADVISORY AGREEMENT, dated as of April     , 2006, is between CNL INCOME PROPERTIES, INC., a corporation organized under the laws of the State of Maryland (the “Company”) and
CNL INCOME CORP., a corporation organized under the laws of the State of Florida (the “Advisor”). 
 W I T N E S S E T H

 WHEREAS, the Company has filed with the Securities and Exchange Commission a Registration Statement (No. 333-128662) on Form S-11 covering
200,000,000 of its common shares, par value $0.01 per share (the “Shares”), to be offered to the public, and the Company may subsequently issue securities other than such Shares (the “Securities”) or otherwise raise additional
capital; 
 WHEREAS, the Company intends to qualify as a REIT (as defined below), and to invest its funds in investments permitted by the
terms of the Registration Statement and Sections 856 through 860 of the Code (as later defined); 
 WHEREAS, the Company desires to avail
itself of the experience, sources of information, advice, assistance and certain facilities available to the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the
supervision, of the Board of Directors (as later defined) of the Company all as provided herein; and 
 WHEREAS, the Advisor is willing to
undertake to render such services, subject to the supervision of the Board of Directors, on the terms and conditions hereinafter set forth; 
 NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows: 
 (1) Definitions. As used in this Advisory Agreement (the “Agreement”), the following terms have the definitions hereinafter indicated: 
 Acquisition Expenses. Any and all expenses incurred by the Company, the Advisor, or any Affiliate of either in connection with the selection,
acquisition or making of any investment, including any Property, Loan or other Permitted Investments, whether or not acquired or made, including, without limitation, legal fees and expenses, travel and communication expenses, costs of appraisals,
nonrefundable option payments on property not acquired, accounting fees and expenses, and title insurance. 
 Acquisition Fees. Any
and all fees and commissions, exclusive of Acquisition Expenses, paid by any Person or entity to any other Person or entity (including any fees or commissions paid by or to any Affiliate of the Company or the Advisor) in connection with making an
investment, including making or investing in Loans or other Permitted Investments or the purchase, development or construction of a Property, including, without limitation, real estate commissions, acquisition fees, finder’s fees, selection
fees, development fees, construction fees, nonrecurring management fees, consulting fees, loan fees, points, or any other fees or commissions of a similar nature. Excluded shall be development fees and construction fees paid to any Person or entity
not Affiliated with the Advisor in connection with the actual development and construction of any Property. Further, Acquisition Fees will not be paid in connection with temporary short-term investments acquired for purposes of cash management.

 Advisor. The Person or Persons, if any, appointed, employed or contracted with by the Company pursuant to Section 4.1 of the
Company’s Articles of Incorporation and responsible for directing or performing the day-to-day business affairs of the Company, including any Person to whom the Advisor subcontracts substantially all of such functions. 

 Affiliate or Affiliated (or any derivation thereof). An affiliate of another Person, which is
defined as: (i) any Person directly or indirectly owning, controlling, or holding, with power to vote 10% or more of the outstanding voting securities of such other Person; (ii) any Person 10% or more of whose outstanding voting securities
are directly or indirectly owned, controlled or held, with power to vote, by such other Person; (iii) any Person directly or indirectly controlling, controlled by, or under common control with such other Person; (iv) any executive officer,
director, trustee or general partner of such other Person; and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner. 
 Articles of Incorporation. The Articles of Incorporation of the Company, as amended from time to time. 
 Asset Management Fee. The fee payable to the Advisor for day-to-day professional management services in connection with the Company and its
investments in Properties, Loans and other Permitted Investments pursuant to this Agreement. 
 Assets. Properties, Loans and other
Permitted Investments, collectively. 
 Average Invested Assets. For a specified period, the average of the aggregate book value of
the assets of the Company invested, directly or indirectly, in equity interests in, and Loans secured by, Real Estate, or in other Permitted Investments, before reserves for depreciation or bad debts or other similar non-cash reserves, computed by
taking the average of such values at the end of each month during such period. 
 Board of Directors or Board. The Directors of the
Company. 
 Bylaws. The bylaws of the Company, as the same are in effect and may be amended from time to time. 
 Cause. With respect to the termination of this Agreement, fraud, criminal conduct, willful misconduct or willful or negligent breach of fiduciary
duty by the Advisor, breach of this Agreement, a default by the Sponsor under the guarantee by the Sponsor to the Company or the bankruptcy of the Sponsor. 
 Change of Control. A change of control of the Company of such a nature that would be required to be reported in response to the disclosure requirements of Schedule 14A of Regulation 14A promulgated under the
Securities Exchange Act of 1934, as amended, as enacted and in force on the date hereof (the “Exchange Act”), whether or not the Company is then subject to such reporting requirements; provided, however, that, without limitation, a change
of control shall be deemed to have occurred if: (i) any “person” (within the meaning of Section 13(d) of the Exchange Act) is or becomes the “beneficial owner” (as that term is defined in Rule 13d-3, as enacted and in
force on the date hereof, under the Exchange Act) of securities of the Company representing 8.5% or more of the combined voting power of the Company’s securities then outstanding; (ii) there occurs a merger, consolidation or other
reorganization of the Company which is not approved by the Board of Directors of the Company; (iii) there occurs a sale, exchange, transfer or other disposition of substantially all of the assets of the Company to another entity, which
disposition is not approved by the Board of Directors of the Company; or (iv) there occurs a contested proxy solicitation of the Stockholders of the Company that results in the contesting party electing candidates to a majority of the Board of
Directors’ positions next up for election. 
 Competitive Real Estate Commission. A real estate or brokerage commission for the
purchase or sale of property which is reasonable, customary, and competitive in light of the size, type, and location of the property. The total of all real estate commissions paid by the Company to all Persons (including the subordinated
disposition fee payable to the Advisor) in connection with any Sale of one or more of the Company’s Properties shall not exceed the lesser of (i) a Competitive Real Estate Commission or (ii) 6% of the gross sales price of the Property
or Properties. 
  

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 Directors. (collectively) The individuals named in Section 2.4 of the Articles of Incorporation so
long as they continue in office and all other individuals who have been duly elected and qualify as Directors of the Company hereunder. 
 Distributions. Any distribution of money or other property, pursuant to Section 7.2(iv) of the Articles of Incorporation, by the Company to owners of Equity Shares, including distributions that may constitute a return of capital
for federal income tax purposes. 
 Equity Shares. Shares of capital stock of the Company of any class or series (other than Excess
Shares). The use of the term “Equity Shares” or any term defined by reference to the term “Equity Shares” shall refer to the particular class or series of capital stock of the Company which is appropriate under the context.

 Gross Proceeds. The aggregate purchase price of all Equity Shares sold for the account of the Company, without deduction for
Selling Commissions, volume discounts, the marketing support fee, due diligence expense reimbursements or Organizational and Offering Expenses. For the purpose of computing Gross Proceeds, the purchase price of any Equity Share for which reduced or
no Selling Commissions or marketing support fees are paid to the Managing Dealer or a Soliciting Dealer (where net proceeds to the Company are not reduced) shall be deemed to be the full offering price of the Equity Shares, with the exception of
Equity Shares purchased pursuant to the reinvestment plan, which will be factored into the calculation using their actual purchase price. 
 Independent Director. A Director who is not, and within the last two years has not been, directly or indirectly associated with the Advisor by virtue of (i) ownership of an interest in the Advisor or its Affiliates,
(ii) employment by the Advisor or its Affiliates, (iii) service as an officer or director of the Advisor or its Affiliates, (iv) performance of services, other than as a Director, for the Company, (v) service as a director or
trustee of more than three real estate investment trusts advised by the Advisor, or (vi) maintenance of a material business or professional relationship with the Advisor or any of its Affiliates. An indirect relationship shall include
circumstances in which a Director’s spouse, parents, children, siblings, mothers- or fathers-in-law, sons- or daughters-in-law or brothers- or sisters-in-law is or has been associated with the Advisor, any of its Affiliates or the Company. A
business or professional relationship is considered material if the gross revenue derived by the Director from the Advisor and Affiliates exceeds five percent of either the Director’s annual gross revenue during either of the last two years or
the Director’s net worth on a fair market value basis. 
 Independent Expert. A Person or entity with no material current or
prior business or personal relationship with the Advisor or the Directors and who is engaged to a substantial extent in the business of rendering opinions regarding the value of assets of the type held by the Company. 
 Invested Capital. The amount calculated by multiplying the total number of Equity Shares issued and outstanding by the offering price per share,
without deduction for Selling Commissions, volume discounts, the marketing support fee, due diligence expense reimbursements or Organizational and Offering Expenses (which price per Equity Share, in the case of Equity Shares purchased pursuant to
the reinvestment plan, shall be deemed to be the actual purchase price), reduced by the portion of any Distribution that is attributable to Net Sales Proceeds. 
 Joint Ventures. Those joint venture or general partnership arrangements in which the Company is a co-venturer or general partner which are established to acquire Properties and/or make Loans or other Permitted
Investments. 
 Line of Credit. One or more lines of credit initially in an aggregate amount up to $100 million (or such greater
amount as shall be approved by the Board of Directors), the proceeds of which will be used to acquire Properties and make Loans and other Permitted Investments and for any other authorized purpose. The Line of Credit may be in addition to any
Permanent Financing. 
  

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 Listing. The listing of the Common Shares of the Company on a national securities exchange or
quoted on the National Market System of the Nasdaq Stock Market. 
 Loans. Mortgage Loans and other types of debt financing provided
by the Company. 
 Managing Dealer. CNL Securities Corp., an Affiliate of the Advisor, or such other Person or entity selected by the
Board of Directors to act as the managing dealer for the offering. CNL Securities Corp. is a member of the National Association of Securities Dealers, Inc. 
 Net Income. For any period, the total revenues applicable to such period, less the total expenses applicable to such period excluding additions to reserves for depreciation, bad debts or other similar non-cash
reserves; provided, however, Net Income for purposes of calculating total allowable Operating Expenses (as defined herein) shall exclude the gain from the sale of the Company’s assets. 
 Net Sales Proceeds. In the case of a transaction described in clause (i) of the definition of Sale, the proceeds of any such transaction less
the amount of all real estate commissions and closing costs paid by the Company. In the case of a transaction described in clause (ii) of such definition, Net Sales Proceeds means the proceeds of any such transaction less the amount of any
legal and other selling expenses incurred in connection with such transaction. In the case of a transaction described in clause (iii) of such definition, Net Sales Proceeds means the proceeds of any such transaction actually distributed to the
Company from the Joint Venture. In the case of a transaction or series of transactions described in clause (iv) of the definition of Sale, Net Sales Proceeds means the proceeds of any such transaction less the amount of all commissions and
closing costs paid by the Company. In the case of a transaction described in clause (ii) of the definition of Sale, Net Sales Proceeds means the proceeds of such transaction or series of transactions less all amounts generated thereby and
reinvested in one or more Properties within 180 days thereafter and less the amount of any real estate commissions, closing costs, and legal and other selling expenses incurred by or allocated to the Company in connection with such transaction or
series of transactions. Net Sales Proceeds shall also include, in the case of any lease of a Property consisting of a building only or any Loan or other Permitted Investments, any amounts from tenants, borrowers or lessees that the Company
determines, in its discretion, to be economically equivalent to the proceeds of a Sale. Net Sales Proceeds shall not include, as determined by the Company in its sole discretion, any amounts reinvested in one or more Properties, Loans or other
Permitted Investments, to repay outstanding indebtedness, or to establish reserves. 
 Operating Expenses. All costs and expenses
incurred by the Company, as determined under generally accepted accounting principles, which in any way are related to the operation of the Company or to Company business, including (i) advisory fees, (ii) the Asset Management Fee,
(iii) the Performance Fee, and (iv) the Subordinated Incentive Fee, but excluding (a) the expenses of raising capital such as Organizational and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing,
registration, and other fees, printing and other such expenses and tax incurred in connection with the issuance, distribution, transfer, registration and Listing; (b) interest payments; (c) taxes; (d) non-cash expenditures such as
depreciation, amortization and bad debt reserves; (e) the Advisor’s subordinated ten percent share of Net Sales Proceeds; and (f) Acquisition Fees and Acquisition Expenses, real estate or other commissions on the Sale of Assets, and
other expenses connected with the acquisition and ownership of Real Estate interests, Loans, or other Permitted Investments (such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair, and improvement of Property).

 Organizational and Offering Expenses. Any and all costs and expenses, other than Selling Commissions, the marketing support fee and
due diligence expense reimbursements incurred by the Company, the Advisor or any Affiliate of either in connection with the formation, qualification and registration of the Company and the marketing and distribution of Equity Shares, including,
without limitation, the following: legal, accounting and escrow fees; printing, amending, supplementing, mailing and distributing costs; filing, registration and qualification fees and taxes; telegraph and telephone costs; and all advertising and
marketing expenses, including the costs related to investor and broker-dealer sales meetings. The Organizational and Offering Expenses paid by the Company in connection with each public offering of Equity Shares of the Company, together with all
Selling Commissions, the marketing support fee and due diligence reimbursements incurred by the Company, will not exceed 13% of the proceeds raised in connection with such offering 
  

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 Performance Fee. The fee payable to the Advisor under certain circumstances if certain performance
standards have been met and the Subordinated Incentive Fee has not been paid. 
 Permanent Financing. The financing to
(i) acquire Properties and to make Loans or other Permitted Investments; (ii) pay off any Acquisition Fees arising from any Permanent Financing; and (iii) refinance outstanding amounts on the Line of Credit. Permanent financing may be
in addition to any borrowing under the Line of Credit. 
 Permitted Investments. All investments that the Company may acquire pursuant
to its Articles of Incorporation and bylaws, other than the short-term investments acquired for purposes of cash management. 
 Person. An individual, corporation, partnership, estate, trust (including a trust qualified under Section 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the
purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity, or any government or any agency or political subdivision thereof, and
also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, but does not include (i) an underwriter that participates in a public offering of Equity Shares for a period of
sixty days following the initial purchase by such underwriter of such Equity Shares in such public offering, or (ii) CNL Income Corp., during the period ending December 31, 2004, provided that the foregoing exclusions shall apply only if
the ownership of such Equity Shares by an underwriter or CNL Income Corp. would not cause the Company to fail to qualify as a REIT by reason of being “closely held” within the meaning of Section 856(a) of the Code or otherwise cause
the Company to fail to qualify as a REIT. 
 Property or Properties. Interests in (i) the real properties, including the
buildings and equipment located thereon, (ii) the real properties only, or (iii) the buildings only, including equipment located therein; where, in each such enumerated instance, such interest is acquired by the Company, either directly or
indirectly through joint ventures, partnerships, or other legal entities. 
 Prospectus. As defined in Section 2(10) of the
Securities Act of 1933, including a preliminary prospectus, an offering circular as described in Rule 253 of the General Rules and Regulations under the Securities Act of 1933, as amended, or, in the case of an intrastate offering, any document by
whatever name known, utilized for the purpose of offering and selling securities to the public. 
 Real Estate Asset Value or
Contract Purchase Price means the amount actually paid or allocated to the purchase, development, construction or improvement of a Property, exclusive of Acquisition Fees and Acquisition Expenses. 
 REIT. A “real estate investment trust” as defined pursuant to Sections 856 through 860 of the Code. 
 Sale or Sales. (i) Any transaction or series of transactions whereby: (A) the Company sells, grants, transfers, conveys or relinquishes
its ownership of any Property or portion thereof, including the lease of any Property, Loan or other Permitted Investment consisting of the building only, and including any event with respect to any Property which gives rise to a significant amount
of insurance proceeds or condemnation awards; (B) the Company sells, grants, transfers, conveys or relinquishes its ownership of all or substantially all of the interest of the Company in any Joint Venture in which it is a co-venturer or
partner; (C) any Joint Venture in which the Company as a co-venturer or partner sells, grants, transfers, conveys or relinquishes its ownership of any Property, Loan or other Permitted Investment or portion thereof, including any event with
respect to any Property, Loan or other Permitted Investment which gives rise to insurance claims or condemnation awards; or (D) the Company sells, grants, conveys or relinquishes its interest in any Loan or other Permitted Investment, or
portion thereof, including any event with respect to any Loan or other Permitted 
  

 -5- 

 Investment, which gives rise to a significant amount of insurance proceeds or similar awards, but (ii) shall not
include any transaction or series of transactions specified in clause (i)(A), (i)(B), or (i)(C) above in which the proceeds of such transaction or series of transactions are reinvested in one or more Properties, Loans or other Permitted Investments
within 180 days thereafter. 
 Securities. Any Equity Shares, Excess Shares, as such terms are defined in the Company’s Articles
of Incorporation, any other stock, shares or other evidences of equity or beneficial or other interests, voting trust certificates, bonds, debentures, notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or
otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in, temporary or interim certificates for, receipts for, guarantees of, or warrants, options or rights to
subscribe to, purchase or acquire, any of the foregoing. 
 Soliciting Dealers. Broker-dealers that are members of the National
Association of Securities Dealers, Inc., or that are exempt from broker-dealer registration, and that, in either case, enter into participating broker or other agreements with the Managing Dealer to sell Equity Shares. 
 Sponsor. Any Person directly or indirectly instrumental in organizing, wholly or in part, the Company or any Person who will control, manage or
participate in the management of the Company, and any Affiliate of such Person. Not included is any Person whose only relationship with the Company is that of an independent property manager of the Company’s Properties, Loans or other Permitted
Investments, and whose only compensation is as such. Sponsor does not include independent third parties such as attorneys, accountants, and underwriters whose only compensation is for professional services. A Person may also be deemed a Sponsor of
the Company by: 
  

	 	a.	taking the initiative, directly or indirectly, in founding or organizing the business or enterprise of the Company, either alone or in conjunction with one or more other Persons;

  

	 	b.	receiving a material participation in the Company in connection with the founding or organizing of the business of the Company, in consideration of services or property, or both
services and property; 

  

	 	c.	having a substantial number of relationships and contacts with the Company; 

  

	 	d.	possessing significant rights to control the Company’s Properties; 

  

	 	e.	receiving fees for providing services to the Company which are paid on a basis that is not customary in the industry; or 

  

	 	f.	providing goods or services to the Company on a basis which was not negotiated at arms length with the Company. 

 Stockholders. The registered holders of the Company’s Equity Shares. 
 Stockholders’ 8% Return. As of each date, an aggregate amount equal to an 8% cumulative, noncompounded, annual return on Invested Capital.

 Subordinated Disposition Fee. The Subordinated Disposition Fee as defined in Paragraph 9(c). 
 Subordinated Incentive Fee. The fee payable to the Advisor under certain circumstances if the Common Shares are Listed. 
 Termination Date. The date of termination of this Agreement. 
  

 -6- 

 Total Proceeds. The Gross Proceeds plus Loan proceeds from Permanent Financings and the Line of
Credit that are used to make or acquire Properties, Loans and other Permitted Investments. 
 Total Property Cost. With regard to any
Company Property, an amount equal to the sum of the Real Estate Asset Value of such Property plus the Acquisition Fees paid in connection with such Property. 
 2%/25% Guidelines. The requirement pursuant to the guidelines of the North American Securities Administrators Association, Inc. that, in any 12 month period, total Operating Expenses may not exceed the greater
of 2% of the Company’s Average Invested Assets during such 12 month period or 25% of the Company’s Net Income over the same 12 month period. 
 Valuation. An estimate of value of the Assets of the Company as determined by an Independent Expert. 
 (2) Appointment. The Company hereby appoints the Advisor to serve as its advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment. 
 (3) Duties of the Advisor. The Advisor undertakes to use its best efforts to present to the Company potential investment opportunities and to
provide a continuing and suitable investment program consistent with the investment objectives and policies of the Company as determined and adopted from time to time by the Directors. In performance of this undertaking, subject to the supervision
of the Directors and consistent with the provisions of the registration statement, Articles of Incorporation and Bylaws of the Company, the Advisor shall, either directly or by engaging an Affiliate: 
  

	 	(a)	serve as the Company’s investment and financial advisor and provide research and economic and statistical data in connection with the Company’s assets and investment
policies; 

  

	 	(b)	provide the daily management of the Company and perform and supervise the various administrative functions reasonably necessary for the management of the Company;

  

	 	(c)	investigate, select, and, on behalf of the Company, engage and conduct business with such Persons as the Advisor deems necessary to the proper performance of its obligations
hereunder, including but not limited to consultants, accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers,
insurance agents, banks, builders, developers, property owners, mortgagors, and any and all agents for any of the foregoing, including Affiliates of the Advisor, and Persons acting in any other capacity deemed by the Advisor necessary or desirable
for the performance of any of the services herein, including but not limited to entering into contracts in the name of the Company with any of the foregoing; 

  

	 	(d)	consult with the officers and Directors of the Company and assist the Directors in the formulation and implementation of the Company’s financial policies, and, as necessary,
furnish the Directors with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken by the Company;

  

	 	(e)	subject to the provisions of Paragraphs 3(g) and 4 hereof, (i) locate, analyze and select potential investments in Properties and Loans and other Permitted Investments,
(ii) structure and negotiate the terms and conditions of transactions pursuant to which investment in Properties and Loans and other Permitted Investments; (iii) make investments in Properties and Loans and other Permitted Investments in
compliance with the investment objectives 

  

 -7- 

 and policies of the Company; (iv) arrange for financing and refinancing and make other changes in
the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with the investments in, Properties, Loans and other Permitted Investments; and (v) enter into leases and service contracts for Company
Property and, to the extent necessary, perform all other operational functions for the maintenance and administration of such Company Property; 
  

	 	(f)	provide the Directors with periodic reports regarding prospective investments in Properties, Loans and other Permitted Investments; 

  

	 	(g)	obtain the prior approval of the Directors (including a majority of all Independent Directors) for any and all investments in Properties, Loans and other Permitted Investments;

  

	 	(h)	negotiate on behalf of the Company with banks or lenders for loans to be made to the Company and negotiate on behalf of the Company with investment banking firms and broker-dealers
or negotiate private sales of Shares and Securities or obtain loans for the Company, but in no event in such a way so that the Advisor shall be acting as broker-dealer or underwriter; and provided, further, that any fees and costs payable to third
parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company; 

  

	 	(i)	obtain reports (which may be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of investments or contemplated investments of the Company;

  

	 	(j)	from time to time, or at any time reasonably requested by the Directors, make reports to the Directors of its performance of services to the Company under this Agreement;

  

	 	(k)	provide the Company with all necessary cash management services; 

  

	 	(l)	do all things necessary to assure its ability to render the services described in this Agreement; 

  

	 	(m)	deliver to or maintain on behalf of the Company copies of all appraisals obtained in connection with the investments in Properties, Loans and other Permitted Investments; and

  

	 	(n)	notify the Board of all proposed material transactions before they are completed. 

 (4) Authority of Advisor. 
 (a) Pursuant to the terms of this Agreement (including the restrictions
included in this Paragraph 4 and in Paragraph 7), and subject to the continuing and exclusive authority of the Directors over the management of the Company, the Directors hereby delegate to the Advisor the authority to (1) locate, analyze and
select investment opportunities, (2) structure the terms and conditions of transactions pursuant to which investments will be made or acquired for the Company, (3) acquire Properties, make Loans and other Permitted Investments in
compliance with the investment objectives and policies of the Company, (4) arrange for financing or refinancing with respect to Properties, Loans and other Permitted Investments, (5) enter into leases and service contracts for the
Company’s Property, and perform other property management services, (6) oversee non-affiliated property managers and other non-affiliated Persons who perform services for the Company; and (7) undertake accounting and other
record-keeping functions at the Property level. 
 (b) Notwithstanding the foregoing, any investment in Properties or Loans or other
Permitted Investments, including any acquisition of Property by the Company (as well as any financing acquired by the Company in connection with such acquisition), will require the prior approval of the Directors (including a majority of the
Independent Directors). 
  

 -8- 

 (c) If a transaction requires approval by the Independent Directors, the Advisor will deliver to the
Independent Directors all documents required by them to properly evaluate the proposed investment in the Property, Loan or other Permitted Investments. 
 The prior approval of a majority of the Independent Directors and a majority of the Directors not otherwise interested in the transaction will be required for each transaction with the Advisor or its Affiliates.

 The Directors may, at any time upon the giving of notice to the Advisor, modify or revoke the authority set forth in this Paragraph 4. If
and to the extent the Directors so modify or revoke the authority contained herein, the Advisor shall henceforth submit to the Directors for prior approval such proposed transactions involving investments thereafter require prior approval, provided,
however, that such modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company prior to the date of receipt by the Advisor of such
notification. 
 (5) Bank Accounts. The Advisor may establish and maintain one or more bank accounts in its own name for the account
of the Company or in the name of the Company and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company, under such terms and conditions as the Directors may
approve, provided that no funds shall be commingled with the funds of the Advisor; and the Advisor shall from time to time render appropriate accountings of such collections and payments to the Directors and to the auditors of the Company.

 (6) Records; Access. The Advisor shall maintain appropriate records of all its activities hereunder and make such records available
for inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time or from time to time during normal business hours. The Advisor shall at all reasonable times have access to the books and records of the
Company. 
 (7) Limitations on Activities. Anything else in this Agreement to the contrary notwithstanding, the Advisor shall refrain
from taking any action which, in its sole judgment made in good faith, would (a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation under the Investment Company Act of 1940, or (c) violate any
law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, its Equity Shares or its Securities, or otherwise not be permitted by the Articles of Incorporation or Bylaws of the Company,
except if such action shall be ordered by the Directors, in which case the Advisor shall notify promptly the Directors of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives
further clarification or instructions from the Directors. In such event the Advisor shall have no liability for acting in accordance with the specific instructions of the Directors so given. Notwithstanding the foregoing, the Advisor, its directors,
officers, employees and stockholders, and stockholders, directors and officers of the Advisor’s Affiliates shall not be liable to the Company or to the Directors or Stockholders for any act or omission by the Advisor, its directors, officers or
employees, or stockholders, directors or officers of the Advisor’s Affiliates except as provided in Paragraphs 19 and 20 of this Agreement. 
 (8) Relationship with Directors. Directors, officers and employees of the Advisor or an Affiliate of the Advisor or any corporate parents of an Affiliate, or directors, officers or stockholders of any director, officer or corporate
parent of an Affiliate may serve as a Director and as officers of the Company, except that no director, officer or employee of the Advisor or its Affiliates who also is a Director or officer of the Company shall receive any compensation from the
Company for serving as a Director or officer of the Company other than reasonable reimbursement for travel and related expenses incurred in attending meetings of the Directors of the Company. 
  

 -9- 

 (9) Fees. 
 (a) Asset Management Fee. The Company shall pay to the Advisor as compensation for the advisory services rendered to the Company under Paragraph 3 above a monthly fee in an amount equal to 0.08334% of the
Company’s Real Estate Asset Value and the outstanding principal amount of the Loans and other Permitted Investments (the “Asset Management Fee”), as of the end of the preceding month. Specifically, Real Estate Asset Value equals the
amount invested in the Properties wholly owned by the Company, determined on the basis of cost, plus, in the case of Properties owned by any Joint Venture or partnership in which the Company is a co-venturer or partner, the portion of the cost of
such Properties paid by the Company, exclusive of Acquisition Fees and Acquisition Expenses. The Asset Management Fee shall be payable monthly on the last day of such month, or the first business day following the last day of such month. The Asset
Management Fee, which will not exceed fees which are competitive for similar services in the same geographic area, may or may not be taken, in whole or in part as to any year, in the sole discretion of the Advisor. All or any portion of the Asset
Management Fee not taken as to any fiscal year shall be deferred without interest and may be taken in such other fiscal year as the Advisor shall determine. 
 (b) Acquisition Fees. 
 (i) The Company shall pay the Advisor a fee in the amount of 3.0% of Total
Proceeds as Acquisition Fees. Acquisition Fees shall be reduced to the extent that, and, if necessary to limit, the total compensation paid to all persons involved in the acquisition of any Property to the amount customarily charged in
arm’s-length transactions by other persons or entities rendering similar services as an ongoing public activity in the same geographic location and for comparable types of Properties and to the extent that other acquisition fees, finder’s
fees, real estate commissions, or other similar fees or commissions are paid by any person in connection with the transaction. In addition, Acquisition Fees shall be reduced to 1.0% of Gross Proceeds in connection with sales in excess of 500,000
shares to a “purchaser” (as such term is defined in the section of the Prospectus titled “The Offering — Plan of Distribution”), provided all such shares are purchased through the same registered investment adviser,
Soliciting Dealer, or the Managing Dealer. The total of all Acquisition Fees and any Acquisition Expenses shall be limited in accordance with the Articles of Incorporation. 
 (ii) Advisory Fee. To the extent the Acquisition Fee is reduced in the manner described in subparagraph (9)(b)(i) above, for investments by
a stockholder in excess of 500,000 Shares, such stockholder and any person it transfers shares to will be required to pay an annual 0.40% Advisory Fee on its Shares to the Advisor or its Affiliates. Payment of this fee will be withheld from
Distributions otherwise payable to such stockholder. Upon Listing, the Advisory Fee will no longer be payable to the Advisor or its Affiliates. Other than the Company’s obligation to withhold Distributions if and when such Distributions are
declared and made, and its obligation to forward such withheld amounts to the Advisor, the Company shall have no further obligations with respect to this fee. Further, nothing contained herein shall be construed to imply that the Company is liable
for any portion of the Advisory Fee. 
 (c) Subordinated Disposition Fee. If the Advisor or an Affiliate provides a substantial amount
of the services (as determined by a majority of the Independent Directors) in connection with the Sale of one or more Assets, the Advisor or an Affiliate shall receive a Subordinated Disposition Fee equal to the lesser of (i) one-half of a
Competitive Real Estate Commission or (ii) 3% of the sales price of such Property or Properties (or comparable competitive Fee in the case of a Loan or other Permitted Investment). The Subordinated Disposition Fee will be paid only if
Stockholders have received total Distributions in an amount equal to or greater than the sum of their aggregate Invested Capital and their aggregate Stockholders’ 8% Return. To the extent that Subordinated Disposition Fees are not paid by the
Company on a current basis due to the foregoing limitation, the unpaid fees will be accrued and paid at such time as the subordination conditions have been satisfied. The Subordinated Disposition Fee may be paid in addition to real estate
commissions paid to non-Affiliates, provided that the total real estate commissions paid to all Persons by the Company (including the Subordinated Disposition fee) shall not exceed an amount equal to the lesser of (i) 6% of the Contract Sales
Price of a Property or (ii) the Competitive Real Estate Commission. In the event this Agreement is terminated prior to such time as the Stockholders have received total Distributions in an amount equal to 100% of 
  

 -10- 

 Invested Capital plus an amount sufficient to pay the Stockholders’ 8% Return through the Termination Date, an
appraisal of the Properties then owned by the Company shall be made and the Subordinated Disposition Fee on Properties previously sold will be deemed earned if the appraised value of the Properties then owned by the Company plus total Distributions
received prior to the Termination Date equals or is greater than 100% of Invested Capital plus an amount sufficient to pay the Stockholders’ 8% Return through the Termination Date. Upon Listing, if the Advisor has accrued but not been paid such
Subordinated Disposition Fee, then for purposes of determining whether the subordination conditions have been satisfied, Stockholders will be deemed to have received a Distribution in the amount equal to the product of the total number of Shares
outstanding and the average closing price of the Shares over a period, beginning 180 days after Listing, of 30 days during which the Shares are traded. 
 (d) Subordinated Share of Net Sales Proceeds. The Subordinated Share of Net Sales Proceeds shall be payable to the Advisor in an amount equal to 10% of Net Sales Proceeds from Sales of Assets of the Company
payable after the Stockholders have received Distributions equal to or greater than the sum of the Stockholders’ 8% Return and 100% of Invested Capital. Following Listing, no Subordinated Share of Net Sales Proceeds will be paid to the Advisor.

 (e) Subordinated Incentive Fee. Upon Listing, the Advisor shall be paid the Subordinated Incentive Fee in an amount equal to 10% of
the amount by which (ii) the market value of the Company, measured by taking the average closing price or average of bid and asked price, as the case may be, over a period of 30 days during which the Shares are traded, with such period
beginning 180 days after Listing (the “Market Value”), plus the total Distributions paid to Stockholders from the Company’s inception until the date of Listing, exceeds (ii) the sum of (A) 100% of Invested Capital and
(B) the total Distributions required to be paid to the Stockholders in order to pay the Stockholders’ 8% Return from inception through the date the Market Value is determined. The Company shall have the option to pay such fee in the form
of cash, Securities, a promissory note or any combination of the foregoing. The Subordinated Incentive Fee will be reduced by the amount of any prior payment to the Advisor of a deferred, subordinated share of Net Sales Proceeds from Sales of Assets
of the Company. 
 (f) Loans from Affiliates. If any loans are made to the Company by an Affiliate of the Advisor, the maximum amount
of interest that may be charged by such Affiliate shall be the lesser of (i) 1% above the prime rate of interest charged from time to time by The Bank of New York and (ii) the rate that would be charged to the Company by unrelated lending
institutions on comparable loans for the same purpose. The terms of any such loans shall be no less favorable than the terms available between non-Affiliated Persons for similar commercial loans. 
 (g) Changes to Fee Structure. In the event of Listing, the Company and the Advisor shall negotiate in good faith to establish a fee structure
appropriate for a perpetual-life entity. A majority of the Independent Directors must approve the new fee structure negotiated with the Advisor. In negotiating a new fee structure, the Independent Directors shall consider all of the factors they
deem relevant, including, but not limited to: (i) the amount of the advisory fee in relation to the asset value, composition and profitability of the Company’s portfolio; (ii) the success of the Advisor in generating opportunities
that meet the investment objectives of the Company; (iii) the rates charged to other REITs and to investors other than REITs by advisors performing the same or similar services; (iv) additional revenues realized by the Advisor and its
Affiliates through their relationship with the Company, including loan administration, underwriting or broker commissions, servicing, engineering, inspection and other fees, whether paid by the Company or by others with whom the Company does
business; (v) the quality and extent of service and advice furnished by the Advisor; (vi) the performance of the investment portfolio of the Company, including income, conversion or appreciation of capital, and number and frequency of
problem investments; and (vii) the quality of the Property, Loan and other Permitted Investment portfolio of the Company in relationship to the investments generated by the Advisor for its own account. The new fee structure can be no more
favorable to the Advisor than the current fee structure. 
  

 -11- 

 (10) Expenses. 
 (a) In addition to the compensation paid to the Advisor pursuant to Paragraph 9 hereof, the Company shall pay directly or reimburse the Advisor for all of the expenses paid or incurred by the Advisor in connection
with the services it provides to the Company pursuant to this Agreement, including, but not limited to: 
 (i) the Company’s
Organizational and Offering Expenses; 
 (ii) Acquisition Expenses incurred in connection with the selection and acquisition of Properties
or the making of Loans or other Permitted Investments for goods and services provided by the Advisor at the lesser of the actual cost or 90% of the competitive rate charged by unaffiliated persons providing similar goods and services in the same
geographic location; 
 (iii) the actual cost of goods and materials used by the Company and obtained from entities not affiliated with the
Advisor, other than Acquisition Expenses, including brokerage fees paid in connection with the purchase and sale of securities; 
 (iv)
interest and other costs for borrowed money, including discounts, points and other similar fees; 
 (v) taxes and assessments on income or
Property and taxes as an expense of doing business; 
 (vi) costs associated with insurance required in connection with the business of the
Company or by the Directors; 
 (vii) expenses of managing and operating Properties owned by the Company, whether payable to an Affiliate of
the Company or a non-affiliated Person; 
 (viii) all expenses in connection with payments to the Directors and meetings of the Directors
and Stockholders; 
 (ix) expenses associated with Listing or with the issuance and distribution of Shares and Securities, such as selling
commissions and fees, advertising expenses, taxes, legal and accounting fees, and Listing and registration fees; 
 (x) expenses connected
with payments of Distributions in cash or otherwise made or caused to be made by the Directors to the Stockholders; 
 (xi) expenses of
organizing, revising, amending, converting, modifying, or terminating the Company or the Articles of Incorporation; 
 (xii) expenses of
maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities; 
 (xiii) expenses related to negotiating and servicing Loans and other Permitted Investments; 
 (xiv) administrative service expenses (including personnel costs; provided, however, that no reimbursement shall be made for costs of personnel to the
extent that such personnel perform services in transactions for which the Advisor receives a separate fee at the lesser of actual cost or 90% of the competitive rate charged by unaffiliated persons providing similar goods and services in the same
geographic location); and 
  

 -12- 

 (xv) audit, accounting and legal fees. 
 (b) Expenses incurred by the Advisor on behalf of the Company and payable pursuant to this Paragraph 10 shall be reimbursed no less than monthly to the
Advisor. The Advisor shall prepare a statement documenting the expenses of the Company during each quarter, and shall deliver such statement to the Company within 45 days after the end of each quarter. 
 (11) Other Services. Should the Directors request that the Advisor or any director, officer or employee thereof render services for the Company
other than set forth in Paragraph 3, such services shall be separately compensated at such rates and in such amounts as are agreed by the Advisor and the Independent Directors of the Company, subject to the limitations contained in the Articles of
Incorporation, and shall not be deemed to be services pursuant to the terms of this Agreement. 
 (12) Reimbursement to the Advisor.
The Company shall not reimburse the Advisor at the end of any fiscal quarter for Operating Expenses that, in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed the greater of 2% of Average Invested Assets or 25% of
Net Income (the “2%/25% Guidelines”) for such year. Within 60 days after the end of any fiscal quarter of the Company for which total Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Advisor shall reimburse the
Company the amount by which the total Operating Expenses paid or incurred by the Company exceed the 2%/25% Guidelines. The Company will not reimburse the Advisor or its Affiliates for services for which the Advisor or its Affiliates are entitled to
compensation in the form of a separate fee. All figures used in the foregoing computation shall be determined in accordance with generally accepted accounting principles applied on a consistent basis. 
 (13) Other Activities of the Advisor. Nothing herein contained shall prevent the Advisor from engaging in other activities, including, without
limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this Agreement limit or restrict the right of any director,
officer, employee, or stockholder of the Advisor or its Affiliates to engage in any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association. The Advisor may, with respect to any
investment in which the Company is a participant, also render advice and service to each and every other participant therein. The Advisor shall report to the Directors the existence of any condition or circumstance, existing or anticipated, of which
it has knowledge, which creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other partnership, corporation, firm, individual, trust or association. The
Advisor or its Affiliates shall promptly disclose to the Directors knowledge of such condition or circumstance. If the Sponsor, Advisor, a Director or Affiliates thereof have sponsored other investment programs with similar investment objectives
which have investment funds available at the same time as the Company, it shall be the duty of the Directors (including the Independent Directors) to adopt the method set forth in the Registration Statement or another reasonable method by which
properties are to be allocated to the competing investment entities and to use their best efforts to apply such method fairly to the Company. 
 The Advisor shall be required to use its best efforts to present a continuing and suitable investment program to the Company which is consistent with the investment policies and objectives of the Company, but neither the Advisor nor any
Affiliate of the Advisor shall be obligated generally to present any particular investment opportunity to the Company even if the opportunity is of character which, if presented to the Company, could be taken by the Company. 
 In the event that the Advisor or its Affiliates is presented with a potential investment which might be made by the Company and by another investment
entity which the Advisor or its Affiliates advises or manages, the Advisor and its Affiliates shall consider the investment portfolio of each entity, cash flow of each entity, the effect of the acquisition on the diversification of each
entity’s portfolio, rental payments during any renewal period, the estimated income tax effects of the purchase on each entity, the policies of each entity relating to leverage, the funds of each entity available for investment and the length
of time such funds have been available for investment. In the event that an investment 
  

 -13- 

 opportunity becomes available which is suitable for both the Company and a public or private entity which the Advisor or
its Affiliates are Affiliated, then the entity which has had the longest period of time elapse since it was offered an investment opportunity will first be offered the investment opportunity. For purposes of this conflict resolution procedure, an
investment opportunity will be considered “offered” to the Company when an opportunity is presented to the Board of Directors for its consideration. 
 (14) Relationship of Advisor and Company. The Company and the Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint
venturers or impose any liability as such on either of them. 
 (15) Term; Termination of Agreement. This Agreement shall continue in
force until April     , 2007, subject to an unlimited number of successive one-year renewals upon mutual consent of the parties. It is the duty of the Directors to evaluate the performance of the Advisor annually before
renewing the Agreement, and each such agreement shall have a term of no more than one year. 
 (16) Termination by Either Party. This
Agreement may be terminated upon 60 days written notice without Cause or penalty, by either party, or by the mutual consent of the parties (by a majority of the Independent Directors of the Company or a majority of the Board of Directors of the
Advisor, as the case may be). 
 (17) Assignment to an Affiliate. This Agreement may be assigned by the Advisor to an Affiliate with
the approval of a majority of the Directors (including a majority of the Independent Directors). The Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Directors. This Agreement
shall not be assigned by the Company without the consent of the Advisor, except in the case of an assignment by the Company to a corporation or other organization which is a successor to all of the assets, rights and obligations of the Company, in
which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement. 
 (18) Subcontracts with Affiliates. The Advisor may subcontract with an Affiliate for a portion of the services and duties to be performed under this Agreement without obtaining the approval of the
Directors to the extent such services or duties are primarily administrative in nature. The Advisor may further subcontract any rights to receive fees or other payments for such services or duties under this Agreement without obtaining the approval
of the Directors. 
 (19) Payments to and Duties of Advisor Upon Termination. Payments to the Advisor pursuant to this
Paragraph (19) shall be subject to the 2%/25% Guidelines to the extent applicable. 
 (a) After the Termination Date, the Advisor shall
not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Company within 30 days after the effective date of such termination all unpaid reimbursements of expenses and all earned but unpaid fees
payable to the Advisor prior to termination of this Agreement, exclusive of disputed items arising out of possible unauthorized transactions. 
 (b) Upon termination, the Advisor shall be entitled to payment of the Performance Fee if performance standards satisfactory to a majority of the Board of Directors, including a majority of the Independent Directors, when compared to
(a) the performance of the Advisor in comparison with its performance for other entities, and (b) the performance of other advisors for similar entities, have been met. If Listing has not occurred, the Performance Fee, if any, shall equal
10% of the amount, if any, by which (i) the appraised value of the assets of the Company on the Termination Date, less the amount of all indebtedness secured by such assets, plus the total Distributions paid to stockholders from the
Company’s inception through the Termination Date, exceeds (ii) Invested Capital plus an amount equal to the Stockholders’ 8% Return from inception through the Termination Date. The Advisor shall be entitled to receive all accrued but
unpaid compensation and expense reimbursements in cash within 30 days of the Termination Date. All other amounts payable to the Advisor in the event of a termination shall be evidenced by a promissory note and shall be payable from time to time.

  

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 (c) The Performance Fee shall be paid in 12 equal quarterly installments without interest on the unpaid
balance, provided, however, that no payment will be made in any quarter in which such payment would jeopardize the Company’s REIT status, in which case any such payment or payments will be delayed until the next quarter in which payment would
not jeopardize REIT status. Notwithstanding the preceding sentence, any amounts which may be deemed payable at the date the obligation to pay the Performance Fee is incurred which relate to the appreciation of the Company’s assets shall be an
amount which provides compensation to the terminated Advisor only for that portion of the holding period for the respective assets during which the Advisor provided services to the Company. 
 (d) If Listing occurs, the Performance Fee, if any, payable thereafter will be as negotiated between the Company and the Advisor. The Advisor shall not
be entitled to payment of the Performance Fee in the event this Agreement is terminated because of failure of the Company and the Advisor to establish, pursuant to Paragraph 9(g) hereof, a fee structure appropriate for a perpetual-life entity at
such time, if any, as Listing occurs. The Performance Fee, to the extent payable at the time of Listing, will not be payable in the event the Subordinated Incentive Fee is paid. 
 (e) The Advisor shall promptly upon termination: 
 (i) pay over to the Company all money collected and held for the account of the Company pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled; 
 (ii) deliver to the Directors a full accounting, including a statement showing all payments collected by it and a statement of all money held by it,
covering the period following the date of the last accounting furnished to the Directors; 
 (iii) deliver to the Directors all assets,
including Properties, Loans, and other Permitted Investments, and documents of the Company then in the custody of the Advisor; and 
 (iv)
cooperate with the Company to provide an orderly management transition. 
 (20) Indemnification by the Company. The Company shall
indemnify and hold harmless the Advisor and its Affiliates, including their respective officers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related
expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, subject to any limitations imposed by the laws of the State of Maryland or the
Articles of Incorporation of the Company. Notwithstanding the foregoing, the Advisor shall not be entitled to indemnification or be held harmless pursuant to this Paragraph 20 for any activity for which the Advisor shall be required to indemnify or
hold harmless the Company pursuant to Paragraph 21. Any indemnification of the Advisor may be made only out of the net assets of the Company and not from Stockholders. 
 (21) Indemnification by Advisor. The Advisor shall indemnify and hold harmless the Company from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys’ fees,
to the extent that such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s bad faith, fraud, misconduct, or negligence, but the Advisor shall not be
held responsible for any action of the Board of Directors in following or declining to follow any advice or recommendation given by the Advisor. 
 (22) Notices. Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Articles

  

 -15- 

 of Incorporation, the Bylaws, or accepted by the party to whom it is given, and shall be given by being delivered by hand
or by overnight mail or other overnight delivery service to the addresses set forth herein: 
  

			
	To the Directors and to the Company:	  	 CNL Income Properties, Inc.
 CNL Center at City
Commons
 450 South Orange Avenue
 Orlando, Florida
32801
 Tammie Quinlan, Chief Financial Officer and Executive Vice President and Amy Sinelli, Vice President & Corporate Counsel

		
	To the Advisor:	  	 CNL Income Corp.
 CNL Center at City Commons

450 South Orange Avenue
 Orlando, Florida 32801
 Tammie Quinlan, Chief Financial Officer and Executive Vice President and Amy Sinelli, Vice President & Corporate Counsel

 Either party may at any time give notice in writing to the other party of a change in its address for the purposes
of this Paragraph 22. 
 (23) Modification. This Agreement shall not be changed, modified, terminated, or discharged, in whole or in
part, except by an instrument in writing signed by both parties hereto, or their respective successors or assignees. 
 (24)
Severability. The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may
be invalid or unenforceable in whole or in part. 
 (25) Construction. The provisions of this Agreement shall be interpreted,
construed and enforced in all respects in accordance with the laws of the State of Florida applicable to contracts to be made and performed entirely in said state. 
 (26) Entire Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing. 
 (27)
Indulgences, Not Waivers. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any
right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
 (28) Gender. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
  

 -16- 

 (29) Titles Not to Affect Interpretation. The titles of paragraphs and subparagraphs contained in
this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof. 
 (30) Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of
which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the
signatories. 
 (31) Name. CNL Income Corp. has a proprietary interest in the name “CNL.” Accordingly, and in recognition of
this right, if at any time the Company ceases to retain CNL Income Corp. or an Affiliate thereof to perform the services of Advisor, the Directors of the Company will, promptly after receipt of written request from CNL Income Corp., cease to conduct
business under or use the name “CNL” or any diminutive thereof and the Company shall use its best efforts to change the name of the Company to a name that does not contain the name “CNL” or any other word or words that might, in
the sole discretion of the Advisor, be susceptible of indication of some form of relationship between the Company and the Advisor or any Affiliate thereof. Consistent with the foregoing, it is specifically recognized that the Advisor or one or more
of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having “CNL” as a
part of their name, all without the need for any consent (and without the right to object thereto) by the Company or its Directors. 
 (32)
Initial Investment. The Advisor has contributed to the Company $200,000 in exchange for 20,000 Equity Shares (the “Initial Investment”). The Advisor may not sell these Equity Shares while the Advisory Agreement is in effect,
although the Advisor may transfer such Equity Shares to Affiliates. The restrictions included above shall not apply to any Equity Shares, other than the Equity Shares acquired through the Initial Investment, acquired by the Advisor or its
Affiliates. The Advisor shall not vote any Equity Shares it now owns, or hereafter acquires, in any vote for the removal of Directors or any vote regarding the approval or termination of any contract with the Advisor or any of its Affiliates.

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. 
  

			
	CNL INCOME PROPERTIES, INC.
		
	By:	 	  

	Name:	 	R. Byron Carlock
	Its:	 	Interim Chief Executive Officer
	
	CNL INCOME CORP.
		
	By:	 	  

	Name:	 	James M. Seneff
	Its:	 	Chief Executive Officer

  

 -17-

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