Document:

Property Management Agreement

 Exhibit 10.69 

 
  

WATERTOWER APARTMENTS, EDEN PRAIRIE, MINNESOTA 
  

PROPERTY MANAGEMENT AGREEMENT 
 BETWEEN 
 LINCOLN APARTMENT MANAGEMENT LIMITED PARTNERSHIP 

AND 
 KBS LEGACY
PARTNERS WATERTOWER LLC 

 TABLE OF CONTENTS 

 

							
	 	    	 	  	Page	 
	 Recitals
	    		  	 	1	  
	 ARTICLE 1.
	    	 DEFINITIONS
	  	 	1	  
	 1.01.    Definitions
	  	 	1	  
	 ARTICLE 2.
	    	 APPOINTMENT AND SERVICES OF PROPERTY MANAGER
	  	 	2	  
	 2.01.    Term.
	  	 	2	  
	 ARTICLE 3.
	    	 COMPENSATION AND EXPENSES OF PROPERTY MANAGER
	  	 	9	  
	 3.01.    Fees
	  	 	9	  
	 3.02.    Expenses to be Borne by Property Manager
	  	 	10	  
	 3.04.    Nonpayment
	  	 	11	  
	 ARTICLE 4.
	    	 PERSONNEL AND BONDING
	  	 	11	  
	 4.01.    Stability of Management Team
	  	 	12	  
	 4.02.    Fidelity Bond
	  	 	12	  
	 4.03.    Affiliates.
	  	 	13	  
	 ARTICLE 5.
	    	 COMPLIANCE WITH LAWS
	  	 	13	  
	 5.01.    Compliance
	  	 	13	  
	 5.02.    Notice
	  	 	13	  
	 5.03.    Hazardous Wastes
	  	 	13	  
	 5.04.    Asbestos and Similar Compliance Matters
	  	 	14	  
	 ARTICLE 6.
	    	 ACCOUNTING AND FINANCIAL MATTERS
	  	 	14	  
	 6.01.    Books and Records
	  	 	14	  
	 6.02.    Reports and Reconciliation of Accounts
	  	 	14	  
	 6.03.    Audit.
	  	 	16	  
	 6.04.    Other Reports and Statements
	  	 	16	  
	 6.05.    Contracts and Other Agreements
	  	 	16	  
	 6.06.    Final Accounting
	  	 	16	  
	 6.07.    Tax Returns
	  	 	16	  
	 6.08.    Certification
	  	 	16	  
	 ARTICLE 7.
	    	 BANK ACCOUNTS
	  	 	17	  
	 7.01.    Property Accounts
	  	 	17	  
	 7.02.    Expenses Paid from Property Bank Account
	  	 	17	  
	 ARTICLE 8.
	    	 INSURANCE AND INDEMNITY
	  	 	18	  
	 8.01.    INDEMNIFICATION
	  	 	18	  
	 8.02.    Property Manager’s Insurance Responsibility
	  	 	20	  
	 8.03.    Contract Documents; Indemnity Provisions
	  	 	21	  
	 8.04.    Ratings of Insurance Companies
	  	 	21	  
	 8.05.    Owner’s Insurance Responsibility
	  	 	21	  
	 ARTICLE 9.
	    	 RELATIONSHIP OF PARTIES and REPRESENTATIONS and WARRANTIES
	  	 	22	  
	 9.01.    Nature of Relationship
	  	 	22	  
	 9.02.    Communications Between Parties
	  	 	22	  
	 9.03.    Relationship of Owner and Property Manager with Respect to Leasing
	  	 	22	  
	 9.04.    No Sales Brokerage Agreement
	  	 	22	  
	 9.05.    Confidentiality
	  	 	23	  

							
	 9.06.    Property Manager Not to Pledge Owner’s Credit
	  	 	23	  
	 9.07     Representations and Warranties
	  	 	23	  
	 ARTICLE 10.
	    	 TERMINATION
	  	 	24	  
	 10.01.     Termination by Owner Without Cause
	  	 	24	  
	 10.02.     Termination by Owner for Cause
	  	 	24	  
	 10.03.     Termination by Property Manager
	  	 	24	  
	 10.04.     Orderly Transition
	  	 	25	  
	 10.05.     Rights Which Survive Termination or Expiration
	  	 	25	  
	 ARTICLE 11.
	    	 MISCELLANEOUS
	  	 	25	  
	 11.01.     Governing Law
	  	 	25	  
	 11.02.     Table of Contents and Headings
	  	 	25	  
	 11.03.     Entire Agreement
	  	 	25	  
	 11.04.     Successors and Assigns
	  	 	26	  
	 11.05.     Waiver
	  	 	26	  
	 11.07.     Time
	  	 	26	  
	 11.08.     Attorneys’ Fees
	  	 	26	  
	 11.09.     Further Acts
	  	 	26	  
	 11.10.     No Advertising
	  	 	26	  
	 11.11.     Signs
	  	 	27	  
	 11.12.     Owner Exculpatory Clause; Waivers of Jury Trial and Punitive Damages
	  	 	27	  
	 11.14.     Notices
	  	 	27	  
	 11.15.     Counterparts
	  	 	28	  
			
	 EXHIBITS:
	    		  			
		
	     A -     LEGAL DESCRIPTION
	  			
		
	     B -     RENTAL GUIDELINES
	  			

 PROPERTY MANAGEMENT AGREEMENT 

This PROPERTY MANAGEMENT AGREEMENT (this “Agreement”) is made as of January 15, 2013 (the
“Effective Date”) between LINCOLN APARTMENT MANAGEMENT LIMITED PARTNERSHIP, a Delaware limited partnership (“Property Manager”), and KBS LEGACY PARTNERS WATERTOWER LLC, a Delaware limited liability company
(“Owner”). 
 RECITALS 

A.        Owner is the record or beneficial owner of the Property (as defined
below) and Property Manager is experienced in the management, operation, leasing, service, repair and supervision of residential apartment projects similar to the Property. 

B.        The parties desire to enter into this Agreement and set forth the
terms and conditions under which Property Manager will manage the Property. 
 NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other good and valuable consideration, Owner and Property Manager agree as follows: 
 AGREEMENT 
 ARTICLE 1.    DEFINITIONS. 

1.01.    Definitions.  As used in this Agreement, the following terms shall have the
respective meanings set forth below: 
 “Affiliate” shall mean, when used with respect to any person
(a) if such person is a corporation, any officer or director thereof and any person which is directly, or indirectly, the beneficial owner of more than 10% of any class of equity security (as defined in the Securities Exchange Act of 1934)
thereof, or if any such beneficial owner is a partnership, any partner thereof, or if any such beneficial owner is a corporation, any person controlling, controlled by or under common control with such beneficial owner or of any officer or director
of such beneficial owner or of any corporation occupying any such control relationship, (b) if such person is a partnership, any partner thereof, and (c) any other person which directly or indirectly controls or is controlled by or is
under common control with such person. For the purpose of this definition, “control” (including the correlative meanings of the term “controlling,” “controlled by” and “under common control with”), with
respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, whether through the ownership of voting securities or by contract or otherwise.
The term “Affiliate” shall also mean, when used with respect to any individual, the parents and grandparents of such individual, the parents and grandparents of any other individual who is an Affiliate of such individual by virtue of any
one or more of the foregoing clauses (a), (b) and (c) of this definition, any descendant (whether natural or adopted) of any such parents or grandparents and any spouse of any such descendant. 

  
 1 

 “Approved Capital Budget” and “Approved Operating
Budget” shall have the meanings described in Section 2.02(b). 
 “Fiscal Year” shall mean
the twelve (12) months commencing January 1 and ending December 31. 
 “Gross Monthly
Collections” shall mean the total gross monthly collections received from the Property, including, without limitation, tenant rental income, pet rents and other charges and miscellaneous income items of Owner as applicable. Any payments by
tenants on account of any taxes imposed on rentals collected by Property Manager shall be excluded from Gross Monthly Collections. Any advance rental payments shall be included in Gross Monthly Collections when received. Security and other deposits
shall not be included therein unless the same are no longer used for security purposes and are applied to income. Without limitation, any payment of money by a tenant to Owner or Property Manager in consideration for or in conjunction with a rental
deposit, the termination, cancellation, expiration, renewal, extension or modification of a tenant’s lease, property insurance loss proceeds, remodeling and tenant improvement charge costs, condemnation proceeds, or proceeds received by Owner
in connection with the sale of any portion of the Property or the refinancing of any indebtedness secured by a lien on any portion of the Property, shall be excluded from the Gross Monthly Collections. Proceeds of business interruption insurance
shall be included in Gross Monthly Collections. 
 “Property” shall mean that certain real property
consisting of approximately five and four tenths (5.4) acres and improvements constructed thereon consisting of two hundred and twenty eight (228) residential units (commonly known as the Water Tower Apartments) and approx. 7500
sq.ft. square feet of retail space located in the City of Eden Prairie, Minnesota as more particularly described on Exhibit A attached hereto. 
 “Records Office” shall mean Property Manager’s offices located at the Property and its corporate office in Oak Brook, Illinois. 

“Rental Guidelines” shall mean those guidelines attached hereto as Exhibit B, as amended from time to time.

 ARTICLE 2.   APPOINTMENT AND SERVICES OF PROPERTY MANAGER. 

2.01.       Term.    Owner hereby hires Property Manager as
the exclusive manager of the Property upon the terms and conditions herein stated, and Property Manager hereby accepts said engagement, for a term beginning on the date of this Agreement and ending at 12:00 midnight on the one-year anniversary of
the beginning date, unless sooner terminated by Owner or Property Manager as provided in Article 10 of this Agreement. At the expiration of said term, this Agreement, if not renewed in writing by Owner and Property Manager, shall then be deemed
a month-to-month agreement cancelable by either party on not less than thirty (30) days’ advance written notice, which notice may be given at any time during a month, provided that in any event the cancellation shall be effective at the
end of the calendar month in which the thirty (30) day notice period ends. 

2.02.       Services of Property Manager.     Property
Manager shall direct, supervise, manage, 

  
 2 

 
operate, maintain and repair the Property and develop, institute and follow programs and policies to facilitate the efficient operation of the Property in compliance with this Agreement, the
Rental Guidelines and all written directions of Owner on as profitable a basis as reasonably possible. Without limiting the generality of the foregoing and subject at all times to such procedures and directions that shall be set forth in this
Agreement and the Rental Guidelines (as revised or amended from time to time), Property Manager shall do all of the following: 
 (a)        Employees.    Property Manager shall select, employ, pay, supervise and discharge all employees and personnel necessary for
the operation, maintenance and protection of the Property (subject to the limitations set forth in Section 4.01 hereof). All persons so employed by Property Manager shall be employees of Property Manager or independent contractors retained by
Property Manager, and not by Owner. All costs of gross salary and wages, payroll taxes, medical and dental insurance, worker’s compensation insurance, incentive leasing bonuses and other costs and employee benefit expenses payable on account of
such employees, shall be included in the Approved Operating Budget. Property Manager shall fully comply with all applicable laws and regulations having to do with workers’ compensation, social security, unemployment insurance, hours of labor,
wages, working conditions and other employer/employee-related subjects. 

(b)        Records and
Budgets.    Property Manager shall keep or cause to be kept at the Records Office suitable books of control and account as provided in this Agreement. Property Manager shall prepare on Microsoft Excel worksheets (using Yardi
templates) and submit to Owner such monthly, quarterly, annual or other operating and capital budgets as shall be required by Owner. Without limitation, Property Manager shall prepare and submit to Owner a proposed operating budget and a proposed
capital budget for the Property for the management and operation of the Property for the forthcoming Fiscal Year no later than November 1 of each year during the term hereof. All proposed operating budgets and capital budgets shall be on a form
submitted by Property Manager and approved by Owner. Owner will consider the proposed budgets and endeavor to approve such budgets by December 1 of each year during the term hereof. The proposed budgets shall become the Approved Capital Budget
and the Approved Operating Budget only when approved by Owner. Following approval by Owner the Approved Capital Budget and the Approved Operating Budget shall be promptly uploaded into the Yardi accounting system for the Property. 

In the event an annual operating budget for a Property has not been approved by Owner prior to the
commencement of any Fiscal Year during the term hereof, the operating budget for each month (the “Current Month”) until the annual operating budget is approved shall be the amount of the most recent Approved Operating Budget for the
Property for the same calendar month (“Base Month”), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All Urban Consumers for the metropolitan area
in which the Property is located (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics and (b) any increase or decrease in the occupancy of the Property between the Base Month and the Current
Month and (c) any increase or decrease in the taxes, insurance and utilities of the Property. 

  
 3 

 Owner may revoke its approval of either Budget at any time
upon twenty (20) days’ prior written notice to Property Manager. Owner may amend its approval of either Budget and cause the Budget to be amended to conform to such approval at any time upon twenty (20) days’ prior written notice
to Property Manager and, in such event, only the Budget as so amended shall be deemed approved. 

With respect to the first Fiscal Year of the term, if not a full twelve months, Property Manager shall
submit to Owner for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof. 

Property Manager shall have the right, from time to time, during each calendar year to submit revised
Budgets to Owner for approval. Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Approved Operating Budget or the Approved Capital
Budget pertaining thereto, as applicable. 

(c)        Leasing.    Property
Manager shall coordinate the leasing activities of the Property and, subject to Section 9.03 below, shall use commercially reasonable efforts to obtain responsible tenants for all unleased units and to renew existing leases at rental rates at
least equal to the Rental Guidelines. Property Manager may negotiate and execute leases using the most current version of the National Apartment Association form of Apartment Lease for Minnesota. Any deviation from the standard lease forms or the
Rental Guidelines shall require the prior written consent of Owner. 

(d)        Rent.    Property Manager
shall use reasonable efforts to ensure that all rents and all other monies payable under the leases are paid by the tenants of the Property as and when the same shall become due and payable directly to Property Manager. Property Manager shall adjust
rentals and other required payments where adjustment is contemplated by the leases, shall notify Owner and tenants of such adjustments and shall sign and serve in the name of Owner such notices (except as limited by Section 2.02(e) below),
including without limitation letters demanding past due and currently owed rents and other monies, as are deemed appropriate or necessary by Property Manager. Property Manager shall collect and identify any income due Owner from miscellaneous
services provided to tenants or the public, including, but not limited to, parking income, tenant storage and cable television charges. All rents and other monies so collected by Property Manager shall be immediately deposited in the Property Bank
Account (as defined below). 

(e)        Collections.    Property
Manager shall undertake the collection of rents and monetary payments of every kind and of any form due from tenants of the Property. Property Manager shall thereafter actively pursue collection of all such rent and payments. Except as allowed by
applicable law, Property Manager shall not terminate any lease, lock out a tenant, institute a suit for rent or for use and occupancy, or institute proceedings for recovery of possession. In the event that any tenant at the Property shall be
delinquent in any payment due to Owner beyond any applicable grace periods or otherwise be in default under the terms of its lease, Property Manager shall employ such methods as are 

  
 4 

 
commercially reasonable to either collect unpaid rent or to evict the tenant from the premises. Property Manager shall employ a collection agency to pursue payment collection and, except as
otherwise required by applicable law, shall utilize legal counsel only if a tenant refuses to vacate an apartment unit following proper notice. The commencement of any litigation (other than for routine residential tenant eviction and residential
rent collection matters, including bringing suit for and recovery of any delinquent rents or damages and possession of the premises in the name of Owner as an agent with a beneficial interest), shall require the prior written approval of Owner. In
connection with all suits or proceedings (other than for routine residential tenant eviction and residential rent collection matters, including bringing suit for and recovery of any delinquent rents or damages and possession of the premises in the
name of Owner as an agent with a beneficial interest), only legal counsel approved by Owner shall be retained, but Property Manager shall recommend legal counsel and furnish Owner with the estimated costs of legal services to be incurred in bringing
such suit or proceeding. 

(f)        Maintenance.  Property Manager shall
maintain or cause to be maintained (to the extent not maintained by tenants) the Property and common areas thereof, external and internal, including, without limitation, sidewalks, signs, mechanical, electrical and other systems, parking lots and
landscaping, in good and clean condition and repair, provided no maintenance expense, repairs or alterations other than emergency repairs, which are not specifically identified within the Approved Operating Budget, shall be undertaken without the
prior written consent of Owner. Property Manager shall coordinate and supervise all construction activities (including, without limitation, tenant improvements, tenant refurbishment, common area refurbishment, maintenance and repairs) on the
Property. All maintenance expenses, repairs or alterations (including, without limitation, alterations required for the occupancy of new tenants) requiring expenditures in excess of $25,000 shall, at Owner’s election, be planned and supervised
by an architect, designer, inspector or general contractor designated by Property Manager and approved in writing by Owner. Property Manager shall institute and effectuate a preventative maintenance program. Notwithstanding the foregoing, in the
event of an emergency in which there is an immediate danger to persons or property or in which action is required in order to avoid suspension of services, Property Manager shall take such action as is reasonable and prudent under the circumstances
and shall be reimbursed for any expense incurred in such action, even if not in the Approved Operating Budget, so long as Property Manager attempts to consult with Owner in advance and, in any event, notifies Owner within 48 hours of taking such
action explaining the reasons therefor. Property Manager shall obtain all necessary receipts, releases, waivers, discharges and assurances necessary to keep the Property free of any mechanics’, laborers’, materials suppliers’ or
vendors’ liens in connection with the maintenance or operation of the Property. All such documentation shall be in such form as required by Owner. 

(g)        Contracts.    Property
Manager shall not enter into any contract without Owner’s prior written approval (including approval of the provisions of any equipment lease); provided, however, that Owner’s prior written approval shall not be required with respect to
any utility or service contract which is (i) entered into in the usual course of business, (ii) for a term of one year or less, and (iii) specifically provided for in the Approved Operating Budget. Without limiting the foregoing,
each contract entered into by 

  
 5 

 
Property Manager pursuant to this Section 2.02(g) shall contain a thirty (30) day (or less) cancellation clause exercisable by Owner without cause and without penalty or fee, unless
otherwise approved in writing by Owner. All utility, supply, service, vending and related contracts or equipment leases are to be entered into by Property Manager on behalf of Owner. Property Manager shall assure that any contractor performing work
on the Property maintains insurance satisfactory to Owner, including, but not limited to, Workers’ Compensation Insurance (and, when required by law, compulsory Non-Occupational Disability Insurance) and insurance against liability for injury
to persons and property arising out of all such contractor’s operations naming Property Manager and Owner as additional insureds. Property Manager shall obtain certificates of insurance for all such insurance before the work begins. Property
Manager shall furnish copies of the certificates to Owner if requested by Owner. 

(h)        Purchases.  Property Manager shall
supervise and purchase or arrange for the purchase of all reasonable inventories, provisions, supplies and operating equipment which are provided for in the Approved Operating Budget or otherwise specifically approved by Owner in writing. To the
extent available, Property Manager shall give, or obtain for Owner, all volume purchasing benefits and discounts available to Property Manager or to properties of the size and class of the Property. 

(i)         Operating
Expenses.    Property Manager shall pay all normal operating expenses specifically provided for in the Approved Operating Budget not paid for by tenants of the Property in a manner commercially reasonable for the Property
from funds in the Property Bank Account described in Section 7.01(a). Property Manager shall recommend that Owner purchase major items of new or replacement equipment when Property Manager believes such purchase to be necessary or desirable.
Owner may arrange to purchase and install such items itself or may authorize Property Manager to do so subject to any supervision and specification requirements and conditions prescribed by Owner. Prior to purchasing, Property Manager must obtain
Owner’s specific written authorization for all capital expenditures that are not included in the Approved Capital Budget as well as for all capital expenditures of $25,000 or more that are included and itemized with specificity in any one
(1) line item in the Approved Capital Budget. Unless otherwise directed by Owner, Property Manager shall obtain at least three (3) written estimates from qualified bidders for any capital improvement project if the cost of such project is
reasonably expected to exceed $25,000. All capital improvement projects requiring expenditures in excess of $25,000 shall, at Owner’s election, be planned and supervised by an architect, designer, inspector or general contractor designated by
Property Manager and approved in writing by Owner. 

(j)         Conservation
Techniques.  Property Manager shall provide proper energy management and utilize utility conservation techniques. 
 (k)        Security.  Property Manager shall use reasonable efforts to maintain security adequate to the needs of the Property as directed by Owner
from time to time. Property Manager shall promptly notify Owner of any incidents or conditions which reflect on or affect the adequacy of the security provisions for the Property. 

  
 6 

 (l)        
Taxes.  Property Manager shall obtain and caused to be verified bills for real estate and personal property taxes, sales taxes on rental payments, improvement assessments and other like charges which are or may become liens against
any portion of the Property (collectively, “Taxes”). Owner may elect to pay some or all of such bills for Taxes and, in such event, Property Manager shall remit all bills for Taxes to Owner not less than thirty (30) calendar
days prior to the date on which each becomes delinquent. Upon Property Manager’s receipt of written notice from Owner of Owner’s election to pay a bill for Taxes, Property Manager shall pay such bill not less than fifteen
(15) calendar days prior to the date on which it becomes delinquent. If Owner decides to contest any Taxes, Owner shall advise Property Manager and Property Manager shall not pay such Taxes until directed by Owner. 

(m)       Compliance.  Property Manager shall operate
the Property in compliance with all terms and conditions of applicable law, any ground lease, space lease, mortgage, deed of trust or other security instrument affecting the Property and of which Property Manager has knowledge, but Property Manager
shall not be required to make any payment (except those provided in the Approved Operating Budget) on account thereof unless specifically instructed to do so by Owner in writing. Property Manager shall also comply or supervise compliance with the
provisions of any insurance policy or policies insuring Owner in relation to the Property (so as not to decrease the insurance coverage or increase the insurance premiums). Property Manager shall be responsible for performance by Owner under all
license agreements, easement agreements, covenants, conditions, restrictions, documents of record, use permits, development agreements, operating agreements or other similar documents governing or applicable to the title, operation, management,
occupancy, promotion and leasing of the Property known to Property Manager. 

(n)        Licenses and Permits.  Property
Manager shall assist in obtaining at Owner’s expense all licenses, permits or other instruments required for the operation of the Property or any portion thereof (collectively, “Licenses”). Property Manager shall send to Owner
a copy of all initial or renewal license applications. Licenses shall be obtained in Owner’s name whenever possible. Any Licenses held in the name of Property Manager shall be held by it on behalf of Owner, and upon the termination or
expiration of this Agreement, Property Manager shall transfer or assign any such Licenses to Owner or to such person as Owner may direct. Property Manager shall keep in full force and effect all licenses, permits, consents and authorizations as may
be necessary for the proper performance by Property Manager of its duties and obligations under this Agreement (including, without limitation, qualification to do business) or as may be required under any lease covering any portion of the Property.
All such licenses, permits, consents and authorizations shall be in the name of Property Manager. 
 (o)        Notice and Cooperation in Legal Proceedings.  Owner and Property Manager shall forthwith give notice to each other of the commencement
of any action, suit or proceeding against Owner or against Property Manager with respect to the operations of the Property or otherwise affecting the Property. Property Manager shall fully cooperate, and shall cause all its employees to fully
cooperate, in connection with the prosecution or defense of all legal proceedings affecting the Property. 

  
 7 

 (p)        Other
Complaints and Notices.    Property Manager shall handle promptly complaints and requests from tenants, concessionaires and licensees and notify Owner of any major complaint made by a tenant, concessionaire or licensee.
Property Manager shall notify Owner promptly of: (i) any notice received by Property Manager or known to Property Manager of violation of any governmental requirements (and make recommendations regarding compliance therewith); (ii) any
defect or unsafe condition in the Property known to Property Manager; (iii) any notice received by Property Manager or known to Property Manager of violation of covenants, conditions and restrictions affecting the Property or noncompliance with
loan documents affecting the Property, if any; (iv) any fire, accident or other casualty or damage to the Property; (v) any condemnation proceedings, rezoning or other governmental order, lawsuit or threat thereof involving the Property;
(vi) any violations relative to the leasing, use, repair and maintenance of the Property under governmental laws, rules, regulations, ordinances or like provisions; (vii) defaults under any leases or other agreements affecting the Property
(excluding resident leases); or (viii) any violation of any insurance requirement. Property Manager shall promptly deliver to Owner copies of any documentation in its possession relating to such matters. Property Manager shall keep Owner
reasonably informed of the status of the particular matter through the final resolution thereof. In the case of any fire or other damage to the Property or violation or alleged violation of laws respecting Hazardous Wastes (as defined in
Section 5.03), Property Manager shall immediately give telephonic notice thereof to Owner. Property Manager shall complete all necessary and customary loss reports in connection with any fire or other damage to the Property. Property Manager
shall retain in the records it maintains for the Property copies of all supporting documentation with reference to such notices. 
 (q)        Business Plan and Property Review Program.  Property Manager shall provide Owner with a draft of a business plan for the Property for
the forthcoming Fiscal Year no later than November 1 of each year during the term hereof containing such information as Owner may reasonably request, including (i) a list of all properties competitive with the Property, a list of the
tenants of each and all other reasonably available information respecting each, and (ii) basic demographic data relating to the market area of the Property, including population growth, major employers, employment and unemployment levels and,
if the Property is a retail property, retail sales and housing starts. With respect to the first Fiscal Year of the term, Property Manager shall submit to Owner for approval a draft of a business plan for the balance of such calendar year as soon as
possible and no later than thirty (30) days after the date hereof. In addition, Property Manager shall participate in Owner’s property review programs to the extent requested by Owner. Such review shall include asset, investment, financial
and strategy profiles in form and substance satisfactory to Owner and such assistance as Owner may request in connection with appraisals of the Property. Property Manager shall respond, within 10 days, to Owner’s management evaluation reports
concerning actions to be taken by Property Manager to correct or modify its management standards for the operations or financial services provided for the Property. 

(r)        General.    Property
Manager shall afford such supervision, professional management and in-house staff services as may be necessary or desirable to operate the Property in the same manner as is customary and usual in the operation of other properties of substantially
comparable location, class, size and standing, and shall provide such services at 

  
 8 

 
the Property as are consistent with the Property’s size and existing facilities. Subject only to those express limitations set forth in this Agreement, Property Manager shall have control
and discretion in the management and operation of the Property and in the performance of the foregoing services. Without limiting the foregoing, if applicable, Property Manager shall review and, if so directed by Owner, conduct an audit of each
retail tenant’s compliance with its obligation to pay a percentage rent or any other amount determined on the basis of the tenant’s sales or gross or net income. 
 ARTICLE 3. COMPENSATION AND EXPENSES OF PROPERTY MANAGER. 

3.01.  Fees. 
 (a)        Owner shall pay Property Manager, and Property Manager shall accept as full compensation for the property management services to be rendered to Owner
hereunder during the term hereof, a sum equivalent to two and seventy-five one hundredths percent (2.75%) of Gross Monthly Collections (the “Management Fee”). Such compensation shall be payable monthly on or before the 20th of
the subsequent month. 
 (b)        In the event that
Property Manager is requested by Owner to coordinate and supervise major repairs or improvements to a Property (after its development is completed) that should be capitalized under generally accepted accounting principles (“Capital
Expenditures”), Property Manager shall receive a construction supervision fee equal to a percentage of the hard costs of such Capital Expenditures (the “Construction Supervision Fee”) as follows: 

 

			
	 JOB COST:
	  	FEE:
	 Under $100,000
	  	8.0%
	 $100,000 - $249,999
	  	6.5%
	 $250,000 - $499,999
	  	6.0%
	 $500,000 – 4,999,999
	  	5.0%
	 Over $5,000,000
	  	Negotiable

 (c)        If the Property
includes retail space, Owner may agree to pay a leasing commission (the “Retail Commission”) to Property Manager, at a rate to be agreed upon, for retail leases executed during the term of this Agreement between Owner and the retail
tenants procured or obtained by Property Manager. Notwithstanding the foregoing, Owner shall have the right in its sole and absolute discretion to reject any prospective retail lease, renewal or extension agreement and, in such event, no Retail
Commission or other compensation shall be earned or payable in connection with such proposed retail lease, renewal or extension agreement or the activities of Property Manager, or any other broker in connection therewith. 

(d)        Except with respect to other services provided by
Affiliates of Property Manager in accordance with Section 3.01(e), which shall be reimbursed by Owner pursuant to Section 3.01(e), Property Manager shall pay from the Management Fee all costs associated with or relating to its own office
overhead and management personnel not located 

  
 9 

 
or employed at the Property, including without limitation, the salaries, wages and all other compensation, together with associated unemployment and social security taxes and contributions, as
well as expenses specifically stated in this Agreement to be borne by Property Manager. 

(e)        If included in the Approved Capital Budget or with the
prior approval and direction of Owner, Property Manager may obtain services and materials including, but not limited to, advertising, consulting, training, computer hardware and software, forms for use at the Property, contract services, accounting
and bookkeeping services and building materials through the organization, subsidiaries or Affiliates of Property Manager for the benefit of the Property, provided the quality of service and the price thereof is competitive with comparable prices and
services offered by third parties, and the costs therefore shall be reimbursed by Owner. All discounts, rebates and other savings realized thereon by Property Manager are to be passed on to Owner, in full. 

3.02.  Expenses to be Borne by Property Manager.    Unless otherwise provided in the Approved
Operating Budget or Section 4.01(b) below, expenses incurred in rendering all overall supervisory, lease negotiation (exclusive of lease commissions, if any), rent and other collection (exclusive of on-site personnel, attorneys’ fees and
outside collection agency fees), lease enforcement (exclusive of on-site personnel and attorneys’ fees), lease termination, management, accounting, bookkeeping (exclusive of checks and bank charges) and recordkeeping and other services to be
rendered by Property Manager in connection with the operations of the Property shall be borne by Property Manager and not charged to Owner. Without limiting the generality of the foregoing provisions of this section, the following expenses and costs
incurred by and/or on behalf of Property Manager shall be at the sole cost and expense of Property Manager and shall not be reimbursed by Owner: 

(a)        All costs of gross salary and wages, payroll taxes,
insurance, workmen’s compensation and other costs of Property Manager’s corporate office and executive personnel (other than full time or part time personnel whose positions and salaries are specifically authorized in the Approved
Operating Budget); 
 (b)        All costs incurred as a
result of Property Manager’s breach of this Agreement, and/or the negligence and/or willful misconduct of Property Manager and/or any one or more of its Affiliates, employees, independent contractors, agents and/or other representatives;

 (c)        Unless otherwise provided in the Approved
Operating Budget, all costs of forms, accounting materials, administrative materials, papers, ledgers and other supplies and equipment used in Property Manager’s corporate office, all costs of Property Manager’s data processing equipment
located at Property Manager’s corporate office and all costs of data processing provided by computer service companies to Property Manager’s corporate office; 

(d)        All costs of bonuses, incentive compensation, profit
sharing or any pay advances to employees employed by Property Manager in connection with the operation and management of the Property, except for payments to individuals specifically set forth in the Approved Operating Budget or otherwise approved
in writing by Owner in advance; 

  
 10 

 (e)        All costs
of automobile purchases and/or rentals, unless provided for in the Approved Operating Budget or Approved Capital Budget or the automobile is being provided by Owner; 

(f)        All costs of comprehensive crime insurance purchased
by Property Manager for its own account; 

(g)        All costs of meals, travel and hotel accommodations
for Property Manager’s home or regional office personnel who travel to and from the Property, unless expressly authorized by Owner; and 
 (h)        All costs (exclusive of fees that are directly property related, e.g., registration fee) of obtaining and maintaining such licenses, permits,
consents and authorizations as are required by Section 2.02(n). 
 3.03.  Noncustomary
Services.    Notwithstanding anything provided in this Agreement to the contrary, Property Manager shall not furnish or render to the tenants of the Property services other than those services customarily furnished to tenants
of properties similar to the Property unless: (a) Property Manager makes a separate, adequate charge to tenants for such services; (b) such separate charge is received and retained by Property Manager; (c) Property Manager bears the
cost of providing such services; (d) Property Manager first obtains the consent in writing of Owner; and (e) Property Manager certifies in writing to Owner that (i) Property Manager qualifies as an independent contractor
with respect to Owner (and Owner’s direct and indirect beneficial owners) under Section 856(d)(3) of the Internal Revenue Code, and (ii) Owner (and Owner’s direct and indirect beneficial owners) does not
derive or receive any income from Property Manager. For purposes of this Section 3.03, it is agreed, without limitation, that the furnishing of water, heat, light and air conditioning, public entrances and exits, the performance of general
maintenance and of janitorial services and cleaning services, the collection of trash, watchmen or guard services and parking facilities are examples of services customarily furnished to the tenants of similar properties. 

3.04.  Nonpayment.    If Property Manager fails to make any payment when required or fails to
perform any act required under this Agreement, to the extent sufficient funds are available, then Owner, after ten (10) days’ written notice to Property Manager (or, in the case of any emergency, without notice) and without waiving or
releasing Property Manager from any of its obligations hereunder, may (but shall not be required to) make such payment or perform such act. Owner shall have (in addition to any other right or remedy) the right to offset all costs and expenses
incurred in exercising its rights under this Section 3.04 against any sums due or to become due to Property Manager, including, without limitation, the Management Fee. 
 ARTICLE 4. PERSONNEL AND BONDING. 
 4.01.  Stability of
Management Team.    Owner and Property Manager recognize the benefits inherent in promoting stability in the management team engaged in the operation of the Property. 

(a)        Property Manager shall, in the hiring of all employees
and in retaining independent contractors, use reasonable care to select qualified, competent and trustworthy 

  
 11 

 
employees and independent contractors. Subject to the provisions of this Section 4.01, the selection, terms of employment (including rates of compensation) and termination thereof, and the
supervision, training and assignment of duties of all employees of Property Manager engaged in the operation of the Property shall be the duty and responsibility of and shall be determined by Property Manager. All personnel at the Property shall be
employees of Property Manager and/or contractors of Property Manager. 

(b)       Property Manager shall employ at Property Manager’s
sole cost and expense (unless otherwise provided in the Approved Operating Budget) at least the following for the Property: 
 (i)        a manager who works from the Records Office and manages the Property and other properties (the costs and expenses for whom, if provided for in the
Approved Operating Budget, shall be pro rated in light of the time spent managing the Property as opposed to other properties); and 
 (ii)       an accountant working on Property matters and other properties (who shall be part of Property Manager’s in-house staff) who works from a central location
(the costs and expenses for whom, if provided for in the Approved Operating Budget, shall be pro rated in light of the time spent working on the Property as opposed to other properties). 

4.02.  Fidelity Bond.  Property Manager, at Property Manager’s cost, shall obtain a fidelity bond or
bonds covering Property Manager, and all persons who handle, have access to, or are responsible for, Owner’s monies in such amount and in such forms as are reasonably acceptable to Owner, at all times and to cover all periods, during the term
of this Agreement. Any changes in such bond(s) must be approved by Owner. Property Manager hereby agrees to add Owner as a joint loss payee under its blanket crime policy as it pertains to the Property. Property Manager hereby assigns all proceeds
of said bond(s) as they relate to the Property to Owner and agrees to execute such further assignments and notices thereof as shall be required by Owner. Such bond(s) shall indemnify Owner against any loss of money or other property which Owner
shall sustain through any criminal, fraudulent or dishonest act or acts committed by Property Manager or any of its employees or agents, during the performance of their obligations under this Agreement or their employment. Alternatively, Property
Manager may obtain a crime insurance policy covering the Property Manager, and all persons who handle, have access to, or are responsible for, Owner’s monies which shall be obtained at Manager’s sole expense and shall provide Owner
coverage of Two Million Dollars ($2,000,000.00) per occurrence with a Fifty Thousand Dollar ($50,000.00) deductible which deductible shall be an expense of Manager. Owner shall be furnished by Property Manager with a certificate or other
satisfactory documentation relating to the bond(s) or alternative crime insurance policy immediately upon issuance thereof. 

4.03.  Affiliates.  Property Manager shall not contract for outside services for the Property with any
Affiliate of Property Manager without the prior written consent of Owner. 
 ARTICLE 5. COMPLIANCE WITH LAWS. 

  
 12 

 5.01.  Compliance.    Property Manager shall comply
fully with and abide by all laws, rules, regulations, requirements, orders, notices, determinations and ordinances (collectively, “Requirements”) of any federal, state or municipal authority to the extent applicable, including, but
not by way of limitation, the federal Occupational Safety and Health Act (OSHA) statutes, rules and regulations, and all requirements of the insurers of the Property and Owner’s liabilities with regard thereto. If the cost of compliance is
(i) not included in the Approved Operating Budget or Approved Capital Budget or (ii) in excess of $10,000, Property Manager shall notify Owner promptly and obtain Owner’s prior written approval prior to making the expenditure.

 5.02.  Notice.    Property Manager shall promptly notify Owner of any non-compliance
with, or alleged violation of, any Requirement after becoming aware of the same. 
 5.03.  Hazardous Wastes.

 (a)        Property Manager shall not place, cause or
permit to be placed on the Property, other than in the ordinary course of performing its obligations under this Agreement and in compliance with applicable law, any hazardous or toxic wastes or substances, as such terms are defined by federal, state
or municipal statutes or regulations promulgated thereunder (collectively, “Hazardous Wastes”). If Property Manager discovers the existence of any Hazardous Wastes on the Property (other than Hazardous Wastes used, generated or
stored in the ordinary course of business and in compliance with applicable law), Property Manager shall immediately notify Owner. If such Hazardous Wastes were placed or knowingly permitted to be placed on the Property by Property Manager, Property
Manager shall, at its cost, diligently arrange for and complete the immediate removal thereof in accordance with applicable laws and Owner’s directions. Except as expressly provided herein to the contrary, Property Manager shall not be
responsible for any Hazardous Wastes present on the Property prior to the Effective Date hereof, unless deposited thereon by Property Manager, nor shall Property Manager be responsible for any Hazardous Wastes brought onto the Property by a person
other than Property Manager, its agents or employees. Property Manager shall immediately notify Owner of any notice received by Property Manager from any governmental authority of any actual or threatened violation of any applicable laws,
regulations or ordinances governing the use, storage or disposal of any Hazardous Wastes and shall cooperate with Owner in responding to such notice and correcting or contesting any alleged violation at Owner’s expense. 

(b)        Property Manager shall provide its employees, agents,
consultants, governmental entities and the public with any notices or disclosures concerning Hazardous Wastes associated with the Property required to be delivered by Property Manager under any applicable laws, including without limitation, any
notices or disclosures concerning Hazardous Waste which Property Manager has received from Owner. Owner shall have the right to review such notices and disclosures before their distribution or submission by Property Manager and shall have the right,
but not the obligation, to prescribe the form and content of any such notices or disclosures as long as the form and content prescribed by Owner comply with all applicable laws relating to such notices or disclosures. Owner shall provide Property
Manager with any notices or disclosures concerning Hazardous Waste associated with the Property required to be delivered by Owner under any applicable laws. 

  
 13 

 (c)      Without limiting any
other indemnification obligations provided by law or specified in this Agreement, Property Manager shall indemnify, defend (at Property Manager’s sole cost and expense and with legal counsel approved by Owner which approval shall not be
unreasonably withheld) and hold harmless the Owner, its agents, employees and contractors from and against any and all claims, demands, losses, damage, disbursements, liabilities, obligations, fines, penalties, actions, causes of action, suits,
costs and expenses, including without limitation, reasonable attorneys’ fees and costs, and all other professionals’ or consultants’ expenses incurred in investigating, preparing for, serving as a witness in, or defending any action
or proceeding, whether actually commenced or threatened, or in removing or remediating any Hazardous Wastes on, under, from or about the Property, arising out of or relating to, directly or indirectly, Property Manager’s breach of any of the
terms of this Section 5.03. This indemnity shall survive termination of this Agreement. 

5.04.     Asbestos and Similar Compliance Matters.    If the Property is subject to
the Occupational Safety and Health Administration’s regulations relating to asbestos, or to any state law or regulation relating to asbestos or to any state law or regulation relating to carcinogenic or toxic chemicals, Property Manager shall,
at Owner’s expense, comply with such laws and regulations as they relate to the Property. 
 ARTICLE 6.  ACCOUNTING AND
FINANCIAL MATTERS. 
 6.01.     Books and Records.    Property Manager
shall cause to be kept for Owner at the Records Office accounts and books and records of the Property, pursuant to methods and systems, and in form and substance, approved by Owner, showing all receipts, expenditures and all other records necessary
or convenient for the recording of the results of operations of the Property. Such books are to be maintained on both a cash and accrual accounting basis utilizing the Yardi accounting software hosted by Legacy Partners Residential, Inc. Such
accounts, books and records shall be kept in a secure location at the Records Office and shall be open to inspection by Owner and its representatives during normal business hours and Property Manager agrees to cooperate in making such accounts,
books and records available for inspection. Upon the effective date of any termination of this Agreement, all of such books and records shall be delivered forthwith to Owner so as to ensure the orderly continuance of the operation of the Property.
Cut-off date for books on a monthly basis will be the last working day of each month. 

6.02.     Reports and Reconciliation of Accounts. 

(a)      On or before the last day of each month, Property Manager shall
provide such reports and data to Owner as shall be required from time to time by Owner. Without limitation, Property Manager shall provide the following to Owner for the current calendar month: 

(i)        A detailed report of all monies collected (identified
by tenant or other source) which shall include, but not be limited to, rents collected (including laundry or other vending income, garage or parking income, percentage rent and other amounts payable under any retail leases, if any), rents prepaid
beyond the current month, and security deposits collected, and of vacancies and delinquent rents. 

  
 14 

 (ii)        A
detailed report of all expenses paid. 
 (iii)       A
comparison of the current month and year-to-date account of actual revenue and expenses to budgeted amounts; calculations of monthly and year-to-date variances from the Approved Operating and Capital Budgets, appropriate descriptions of any
significant monthly or year-to-date variances, and, if requested by Owner, a revised annualized projection of monies to be collected and expenses to be paid for the balance of the calendar year. 

(iv)       A written report describing any material changes in the
Property which occurred during the month or are anticipated to occur. 

(v)        A reconciliation of amounts receivable or due to
Owner accompanied by payment of same. 
 (vi)       A
reconciliation of the Property Bank Account, including a copy of the bank statement. 

(vii)      Any other special information as required from time to time by
Owner. 
 (b)       Property Manager shall provide a monthly
management report to be submitted with the applicable monthly financial statements which shall contain without limitation, the recommendations of Property Manager regarding the physical condition or operation of the Property and leasing status
reports (which shall include a list of retail leases executed, written lease proposals, security deposits and rents received, and leasing commissions earned on each retail lease). In addition, on or before January 30 after the end of each
calendar year, Property Manager shall at its sole cost and expense submit to Owner an annual report summarizing all retail leasing activities, if any. 

(c)       Periodically, Property Manager shall furnish to Owner as
reasonably requested: 
 (i)         Market
surveys and any other tenant information in accordance with Section 2.02(q) above. 

(ii)        Reports covering on-site physical inspections and
operating reviews. 
 (iii)       A current inventory of
personal property and equipment used in connection with the Property. Such an inventory shall be submitted to Owner no later than thirty (30) days prior to the end of each calendar year. 

6.03.      Audit.   Owner shall have the right to conduct an audit of the
Property’s operations at any time. Property Manager shall promptly correct all weaknesses and errors disclosed by Owner’s audits, and shall timely inform Owner in writing of all corrective actions taken. Owner’s audit shall be at
Owner’s expense unless an error is discovered that is equal to or greater than two percent (2%) of annual gross receipts of the Property for the period audited, in which case Property Manager shall

  
 15 

 
bear the full cost of the subject audit. Any adjustments in amounts due and owing from Owner or Property Manager shall be paid within fifteen (15) calendar days following Owner’s
receipt of the audit. 
 6.04.     Other Reports and Statements.   Property
Manager shall furnish to Owner, as promptly as practicable, such other reports, statements or other information with respect to the operations of the Property as Owner may from time to time reasonably request. 

6.05.     Contracts and Other Agreements.   Property Manager shall maintain at the Records
Office one original (or a copy, if no original is available) of all contracts, occupancy leases, lease abstracts, tenant income certifications, equipment leases, maintenance agreements and all other agreements relating to the Property. 

6.06.     Final Accounting.   Following termination of this Agreement, whether by
expiration of the term hereof or sooner, Property Manager shall be responsible for preparing a final accounting within thirty (30) days after the effective date of said termination. Such final accounting shall set forth all current income, all
current expenses, and all other expenses contracted for on Owner’s behalf but not yet incurred in connection with the Property. The final accounting shall also include all other items reasonably requested by Owner. Property Manager shall be
entitled to receive a prorated share of its Management Fee to the date of termination and all earned but unpaid Construction Supervision Fees. 
 6.07.     Tax Returns.   Property Manager shall file all tax returns for all sales taxes, payroll taxes and other taxes directly related to the Property;
excluding, however, federal and state income tax returns of Owner. 

6.08.     Certification.   All financial statements shall be certified as true and correct
in all material respects by Property Manager. 
 6.09.     SOC 1Type 2
Designation.   The management of the Property must issue a SOC 1 Type 2 report prepared by a certified public accountant on or prior to December 1st of 2013 and each subsequent year after 2013. The SOC 1 Type 2 report should
be an unqualified report. If the Property Manager has a joint management agreement, all companies in the joint management agreement must be covered by the annual SOC 1 Type 2 report or each company is required to provide the Owner annually their
individual SOC 1 Type 2 unqualified report. If Manager fails to deliver the SOC 1 Type 2 report, Manager will undergo an annual internal control audit by Owner to satisfy SOX 404 requirements. The scope of the audit will be mutually agreed upon by
Owner and Manager and include a review of processes specific to the Project. 
 ARTICLE 7.  BANK ACCOUNTS. 

 

	7.01.	      Property Accounts. 

(a)        All funds received by Property Manager derived from
the operation of the Property, as well as working capital furnished by Owner, shall be deposited in an account (the “Property Bank Account”) in Property Manager’s name, as agent for Owner, in an FDIC-insured bank designated or
approved by Owner, which such account will be in 

  
 16 

 
compliance with applicable law. Owner may direct Property Manager to change depository banks or the depository arrangements. All funds so deposited shall be deemed to be trust funds held by
Property Manager for the benefit of Owner and shall be held and disbursed as provided herein. Property Manager shall establish another custodial and/or trust account as required by applicable law or the Owner for the deposit of tenant security
deposits (the “TSD Account”). 

(b)        A Working Capital Reserve equal
to Fifty Thousand Dollars ($50,000) (the “Working Capital Reserve”) shall be funded upon execution of this Agreement and maintained in the Property Bank Account at all times throughout the term of the Agreement. A monthly cash
payment will be made by Property Manager to Owner solely from funds in the Property Bank Account in excess of the amount of the Working Capital Reserve in an amount equal to the excess, if any, of the current month projected cash receipts less the
current month’s budgeted operating and capital expenditures. This payment will be made to Owner on or before the tenth (10th) day of each month. A reconciliation of receipts and expenditures will be prepared by Property Manager in
accordance with Section 6.02 above to account for any prior period operating cash overage or shortage and any additional cash payments due to Owner will be made to Owner no later than the twenty-fifth (25th) day of the current month and any overpayments made to Owner
will be returned to Property Manager for deposit in the Property Bank Account no later than the thirtieth
(30th) day of the current month. 

(c)        No non-Property funds shall be commingled with the
funds in the Property Bank Account or TSD Account (collectively, the “Accounts”). Property Manager may not, under any circumstances, write a check payable to or in favor of, or transfer funds to, Property Manager or any Affiliate of
Property Manager from the Accounts other than to (i) reimburse itself or an Affiliate for expenditures made on behalf of Owner and approved by Owner, or (ii) pay itself the Management Fee or other fee payable hereunder; provided that,
within fifteen (15) days after payment to itself of the Management Fee or other fee, Property Manager shall provide Owner with a statement setting forth the calculations made in computing the Management Fee or other fee in detail reasonably
satisfactory to Owner. Only those persons specifically authorized by Property Manager and approved by Owner shall have authority to write checks from the Property Bank Account. There shall be monetary limits on the checks Property Manager shall be
authorized to write. Checks in excess of $25,000 (excluding debt service and those items provided for in the Approved Operating Budget) shall require the prior written consent of Owner. 

7.02.      Expenses Paid from Property Bank Account.   The following costs are to be
paid directly from the Property Bank Account: 

(a)        Any and all costs necessary for the management,
operation and maintenance of the Property, provided such costs are provided for and are within the limits of the Approved Operating Budget or specifically approved in writing by Owner; 

(b)        Capital expenditures provided for in the Approved
Capital Budget or authorized in writing by Owner and directed by Owner to be incurred by Property Manager; 

  
 17 

 
and 

(c)        Any and all costs necessary for emergency expenses as
provided in Section 2.02(f). 
     Property Manager shall not be obligated to make any
advance to or for the account of Owner or to pay any sums except out of funds in the Property Bank Account. 
 ARTICLE
8.   INSURANCE AND INDEMNITY. 
 8.01.     INDEMNIFICATION.

 (A)        PROPERTY MANAGER AGREES TO AND
SHALL, COMPLETELY AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO OWNER), PROTECT AND HOLD OWNER AND ITS RESPECTIVE PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES,
AUTHORIZED SUCCESSORS, AUTHORIZED ASSIGNS AND AGENTS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, ACTIONS, FINES, PENALTIES, LIABILITIES, LOSSES, TAXES, DAMAGES, INJURIES AND EXPENSES (INCLUDING, WITHOUT LIMITATION, ACTUAL ATTORNEYS’,
CONSULTANTS’ AND EXPERT WITNESS’ FEES, AND DEFENSE COSTS AT BOTH THE TRIAL AND APPELLATE LEVELS) (COLLECTIVELY, “DAMAGES”) IN ANY MANNER RELATED TO, ARISING OUT OF OR RESULTING FROM (I) ANY FAILURE OF PROPERTY MANAGER TO
PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT CAUSING DAMAGE TO OWNER, BUT ONLY TO THE EXTENT SUCH DAMAGES ARE NOT COVERED BY THE INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (II) ANY ACTS OF PROPERTY MANAGER BEYOND THE SCOPE OF ITS
AUTHORITY UNDER THIS AGREEMENT, (III) ANY NEGLIGENCE, WILLFUL MISCONDUCT OR OTHER WRONGFUL OR INTENTIONAL ACTS OR OMISSIONS OF PROPERTY MANAGER, BUT WITH REGARD TO NEGLIGENCE OF PROPERTY MANAGER (AS OPPOSED TO GROSS NEGLIGENCE, WILLFUL
MISCONDUCT OR OTHER WRONGFUL OR INTENTIONAL ACTS OR OMISSIONS) ONLY TO THE EXTENT SUCH DAMAGES ARE NOT COVERED BY THE INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (IV) ANY INJURY, DAMAGE OR DEATH TO PROPERTY MANAGER, ITS OFFICERS,
DIRECTORS, PARTNERS, EMPLOYEES, AGENTS AND OTHER REPRESENTATIVES, AND (V) ANY INJURY, DAMAGE AND/OR DEATH TO ANY INDEPENDENT CONTRACTORS OF PROPERTY MANAGER. THE OBLIGATIONS OF PROPERTY MANAGER UNDER THIS SUBSECTION (A) SHALL APPLY ONLY TO
THE EXTENT DAMAGES OF AN INDEMNIFIED PARTY ARE NOT FULLY PAID BY OWNER’S COMMERCIAL GENERAL LIABILITY INSURANCE DESCRIBED BELOW IN SECTION 8.05(B). NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS AGREEMENT TO THE CONTRARY, PROPERTY
MANAGER’S OBLIGATIONS 

  
 18 

 
UNDER THIS SECTION 8.01 SHALL SURVIVE THE EXPIRATION, TERMINATION OR CANCELLATION OF THIS AGREEMENT, AND SHALL BIND ANY AND ALL OF THE HEIRS, SUCCESSORS, ASSIGNS, TRANSFEREES AND
REPRESENTATIVES OF PROPERTY MANAGER. THE RIGHTS OF OWNER UNDER THIS SECTION 8.01 SHALL ALSO INURE TO THE BENEFIT OF ANY AND ALL OF THEIR PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS,
BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES, AND TO THE BENEFIT OF ANY AND ALL PERSONS AND LEGAL ENTITIES WHO ARE, COULD BE OR ARE ALLEGED TO BE, LIABLE FOR THE OBLIGATIONS OF OWNER OR SUCH PRINCIPALS, OFFICERS,
DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS, BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES. 

(B)        OWNER AGREES TO AND SHALL, COMPLETELY AND TO THE
MAXIMUM EXTENT PERMITTED BY LAW, INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO PROPERTY MANAGER), PROTECT AND HOLD PROPERTY MANAGER (AND ITS EMPLOYEES, AGENTS, SUCCESSORS, ASSIGNS AND TRANSFEREES) HARMLESS FROM AND AGAINST ANY AND ALL
DAMAGES IN ANY MANNER RELATED TO OR ARISING OUT OF PROPERTY MANAGER’S PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT WHICH ARE (A) WITHIN THE SCOPE OF ITS AUTHORITY UNDER THIS AGREEMENT, AND (B) NOT WITHIN THE SCOPE OF PROPERTY
MANAGER’S INDEMNITY SET FORTH IN SECTION 8.01(A) ABOVE. 

(C)        THE RIGHTS AND OBLIGATIONS OF INDEMNITY PROVIDED IN
THIS SECTION 8.01 SHALL NOT BE EXCLUSIVE AND SHALL BE IN ADDITION TO SUCH OTHER RIGHTS AND OBLIGATIONS AS OTHERWISE EXIST INDEPENDENT OF THE PROVISIONS OF THIS SECTION 8.01. 

 

	8.02.      Property	 Manager’s Insurance Responsibility. 

(a)         The Property Manager shall maintain during the
term of this Agreement, and any extensions or renewals thereof, each of the following insurance coverages with deductibles, if applicable: 
  

	 	(i)	 Workers’ Compensation Insurance at no less than statutory requirements including employer’s liability with a limit of not less than
$1,000,000 each accident for bodily injury accident and $1,000,000 each employee and policy limit for bodily injury by disease. 

  

	 	(ii)	 Non-Occupational Disability Insurance when required by law, if applicable. 

  
 19 

(iii)        Commercial General Liability Insurance with a
minimum combined bodily injury and property damage per occurrence limit of liability of $5,000,000, a products-completed operations aggregate limit of $5,000,000 and a general aggregate limit of $10,000,000. Limits of liability may be satisfied
through the maintenance of a combination of primary and umbrella/excess liability policies. 

(iv)        Automobile Liability Insurance covering owned, hired
and nonowned vehicles, separate coverage in an amount not less than $1,000,000 combined single limit for bodily injury and property damage of $1,000,000 each accident. 

(v)         Errors and Omissions Insurance coverage in an
amount not less than $1,000,000 each claim and general aggregate. 

(b)        Property Manager shall promptly provide Owner no later
than three (3) days after the Effective Date with certificates of insurance or other satisfactory documentation which evidence that all required insurance is in full force and effect. Upon request, Property Manager shall provide Owner with a
copy of the foregoing insurance policies. The insurance as required in Subsections 8.02(a)(i), (ii) and (v) to be maintained by Property Manager shall provide that the insurer shall provide to Owner thirty (30) days’ advance
notice of cancellation or material change. The liability policies required by Subsections 8.02(a)(iii) and (iv) shall provide that the insurer shall provide to Owner thirty (30) days’ advance notice of cancellation or material
change and shall name Owner and its principals, officers, directors, shareholders, partners, members, trustees, beneficiaries and employees as additional insureds. All liability policies shall be written to apply to all bodily injury, property
damage, personal injury and other covered loss, however occasioned, which occurred or arose (or the onset of which occurred or arose) in whole or in part during the policy period. Such liability policies also shall contain
endorsements including cross-liability and waiver of subrogation, and shall contain such other endorsements as may be reasonably required by Owner. The liability policies required by Subsections 8.02(a)(iii) shall include broad form
contractual liability insurance coverage. 
 8.03.      Contract Documents; Indemnity
Provisions.   Property Manager shall use its best efforts to include in service and supply contracts prepared or executed by Property Manager respecting the Property provisions to the effect that the other contracting party shall,
to maximum extent permitted by law, indemnify, defend (with counsel reasonably acceptable to Owner), protect and hold harmless Property Manager and Owner and their respective principals, officers, directors, shareholders, partners, members,
managers, trustees, beneficiaries and employees from and against any and all Damages in any manner related to, arising out of and/or resulting from any damage to or injury to, or death of, persons or property caused or occasioned by or in connection
with or arising out of any acts or omissions of said contracting party or its employees or agents or contractors and agree that no principal, officer, director, shareholder, partner, member, manager, investor, trustee, officer, employee or agent of
Owner shall be personally liable for any of the obligations of Owner hereunder. 

8.04.      Ratings of Insurance Companies.   All insurance required to be carried by
Property Manager 

  
 20 

 
shall be written with companies having a policyholder and asset rate, as circulated by Best’s Insurance Reports, of A-:VIII or better unless an exception is approved by Owner. 

8.05.      Owner’s Insurance Responsibility.   Owner shall maintain during the
term of this Agreement, and any extensions thereof, each of the following insurance coverages which shall be primary and noncontributory insurance: 

(a)        All-Risk Property Damage Insurance and Loss of Rents
Insurance coverage on the Property. Owner will cause its property insurance carriers to waive all rights of subrogation in favor of Manager. 
 (b)        Commercial General Liability Insurance coverage with a minimum general aggregate limit of not less than $10,000,000. Property Manager shall be designated
an insured under Owner’s commercial general liability insurance policy while acting within the scope of its authority as Owner’s property manager. All other terms and conditions of this Agreement (including, without limitation, the
indemnification provisions of Section 8.01 and Property Manager’s obligation to maintain insurance described in Section 8.02) shall not be affected by this Section 8.05(b). 

8.06.      Property Manager’s Duties in Case of Loss.   Property Manager shall:

 (a)        Immediately notify Owner of any fire or
other damage to the Property; and in the event of any serious damage to the Property or any releases of hazardous materials or contaminants, telephone Owner so that an insurance adjustor may view the Property before repairs are started, but in no
event shall Property Manager settle any losses, complete loss reports or adjust losses on behalf of Owner or meet with any federal, state or local regulatory agency without the prior written consent of Owner. 

(b)        Promptly notify Owner of any personal injury or
property damage occurring to or claimed by any tenant or third party on or with respect to the Property; and immediately forward copies to Owner of any summons, subpoena or other like legal document served upon Property Manager relating to actual or
alleged potential liability of Owner, Property Manager or the Property. 
 ARTICLE 9.      RELATIONSHIP OF
PARTIES and REPRESENTATIONS and WARRANTIES. 
 9.01.      Nature of
Relationship.   In taking any action pursuant to this Agreement, Property Manager will be acting only as an independent contractor, and nothing in this Agreement, expressed or implied, shall be construed as creating a partnership
or joint venture or an employment relationship or that of principal and agent between Property Manager (or any person employed by Property Manager) and Owner or any other relationship between the parties hereto except that of property owner and
independent contractor. 
 9.02.      Communications Between
Parties.   Owner shall rely on Property Manager to direct and 

  
 21 

 
control all operations at the Property; provided, however, Owner reserves the right to communicate directly with the manager specified in Subsection 4.01(b)(i), Property Manager’s
accountant(s) working on Property matters, all tenants and tenants’ representatives, all lease prospects, all advertising, management, cleaning and servicing firms doing work for the Property, and all parties contracting with Owner or Property
Manager with respect to the Property. 
 9.03.      Relationship of Owner and Property Manager
with Respect to Leasing.   Property Manager shall not be entitled to any commission or other fee in connection with the leasing of apartment units at the Property, except as specifically provided in Article 3 hereof. On-site
employees of Property Manager shall be entitled to receive incentive leasing bonuses as may be included in the Approved Operating Budget. Property Manager shall procure references from prospective tenants, investigate such references, and use its
best judgment in the selection of prospective tenants. As soon as practicable prior to any residential unit vacancy, Property Manager shall prepare rental listings and attempt to find a new tenant for such unit. Prior to entering into any leasing
arrangement with any retail tenant, if any, Property Manager shall prepare and submit to Owner for its approval a written lease proposal setting forth proposed leasing terms, including, without limitation, duration of the lease, rental rate, tax and
operating expense escalations, consumer price index adjustments, common area maintenance charges or other rental adjustments, rent and/or parking/other concessions, insurance requirements, expansion and renewal rights, tenant improvement allowance,
the desired mix of tenants, and policy with respect to guarantees, and such other matters as Owner deems appropriate. The parties intend that Property Manager shall be obligated to give available residential units and any retail space at the
Property exposure at least equal to the exposure Property Manager gives other available residential units and retail space in similar projects owned, leased, managed or operated by Property Manager or an Affiliate, and Owner shall have the right to
terminate this Agreement pursuant to Section 10.02(e) below if Property Manager fails so to do. The parties also intend that the Property Manager shall be obligated to use reasonable efforts to retain existing tenants at the Property, and Owner
shall have the right to terminate this Agreement pursuant to Section 10.02(e) below if Property Manager fails so to do. 

9.04.      No Sales Brokerage Agreement.   There are no sales brokerage agreements
between Owner and Property Manager; Property Manager has no brokerage agreement or understanding (exclusive or otherwise) with respect to the sale of all or part of the Property on behalf of Owner; and in the event that Owner effects a sale of the
Property, whether on its own or through the use of others, brokers or otherwise, Property Manager shall be entitled to no compensation, fee or commission or other payment on account of such sale. Unless specifically approved by Owner, Property
Manager shall have no right to obligate Owner for the payment of any fees or commissions to any outside real estate agent or broker for tenant leases. Except as expressly provided to the contrary elsewhere herein or as otherwise approved by Owner in
writing, Property Manager shall be fully responsible for any compensation due employees of Property Manager and any real estate brokers cooperating with Property Manager. Property Manager shall indemnify and hold Owner harmless with respect to any
action, proceeding, claim, liability, loss, cost or expense (including reasonable attorneys’ fees) arising in connection with any claim for brokerage or finder’s fees or any other like payment payable as a result of a breach under this
Section 9.04 by Property Manager. Property Manager’s obligations with respect to the foregoing indemnity shall survive the expiration or earlier termination of this Agreement. 

  
 22 

 9.05.    Confidentiality.  Except as may be otherwise
required by law, Property Manager and Owner shall maintain the confidentiality of all matters pertaining to this Agreement and all operations and transactions relating to the Property. 

9.06.    Property Manager Not to Pledge Owner’s Credit.  Property Manager shall not, except in
the purchase of goods, wares, merchandise, materials, supplies and services reasonably required in the ordinary course of business in the operation of the Property or as may be otherwise required in the performance of its obligations under this
Agreement and in either case as previously approved by Owner, pledge the credit of Owner; nor shall Property Manager, in the name or on behalf of Owner, borrow any money or execute any promissory note, installment purchase agreement, bill of
exchange or other obligation binding on Owner or the Property. 
 9.07    Representations and
Warranties. 
 (a)        Property Manager
represents and warrants that (i) Property Manager has full power, authority and legal right to execute, deliver and perform this Agreement and to perform all of its obligations hereunder and (ii) the execution, delivery and performance of
all or any portion of this Agreement do not and will not (x) require any consent or approval from any governmental authority, (y) violate any provisions of law or any government order or (z) conflict with, result in a breach of, or
constitute a default under, the charter or bylaws of Property Manager or any instrument to which Property Manager is a party or by which it or any of its property is bound. 

(b)        Owner represents and warrants that it has full power,
authority and legal right to execute, deliver and perform this Agreement. 

(c)        Property Manager acknowledges and agrees that Owner is
relying upon the representations and warranties set forth in Sections 9.07 (a) in entering into this Agreement, and Owner acknowledges and agrees that Property Manager is relying upon the representations and warranties set forth in
Section 9.07 (b) in entering into this Agreement. 
 ARTICLE 10.
                TERMINATION. 

10.01.    Termination by Owner Without Cause.  This Agreement may be terminated by Owner at any time
without cause and upon written notice to Property Manager by Owner, effective thirty (30) days from the date of such notice, which shall be considered the effective date of termination. 

10.02.    Termination by Owner for Cause.  This Agreement may be terminated by Owner (or the
Property Manager may be required by Owner to change its personnel assigned as Property Manager for the Property) at any time during the term hereof upon written notice to Property Manager effective immediately for any of the following causes:

 (a)        If Property Manager shall suspend or
discontinue business; 
 (b)        If a court shall
enter a decree or order for relief in respect of Property 

  
 23 

 
Manager in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal, state or foreign bankruptcy, insolvency or other similar law,
or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Property Manager or for any substantial part of its property, or for the winding-up, dissolution or liquidation of its affairs, and such decree or
order shall continue unstayed and in effect for a period of sixty (60) consecutive days or if Property Manager shall consent to any of the foregoing; 

(c)        If Property Manager shall commence a voluntary case or
action under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy insolvency or other similar law, or consent to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Property Manager or for any substantial part of its property, or make any assignment for the benefit of creditors, or admit in writing that it is unable, or fail generally to
pay its debts as such debts become due, or take action in furtherance of any of the foregoing; 

(d)        If Property Manager is grossly negligent or engages in
willful misconduct with respect to its duties or obligations to Owner under this Agreement; or 

(e)        If Property Manager commits any other material default
in the performance of any of its obligations under this Agreement, unless such default is cured with thirty (30) days after written notice of such default is given to Property Manager, or, if not curable within thirty (30) days, commenced
within such thirty (30) days and diligently prosecuted to completion. 
 10.03.  Termination by Property
Manager.    This Agreement may be terminated by Property Manager, without cause, upon sixty (60) days’ written notice to Owner. This Agreement may be terminated by Property Manager for cause if Owner commits any
material default in the performance of any of its obligations under this Agreement, including, without limitation, its obligation to pay to Property Manager any fees due and payable under Section 3.01 above, and such default shall continue for
a period of thirty (30) days after notice thereof by Property Manager to Owner for non-monetary default or ten (10) days after notice for monetary default. 
 10.04.  Orderly Transition.  In the event of any termination or expiration of this Agreement, Property Manager shall use its best efforts to effect an orderly transition of the
management and operation of the Property to an agent designated by Owner and to cooperate with such agent, and the Accounts shall be immediately transferred as directed by Owner. Upon termination or expiration of this Agreement, Property
Manager’s right to withdraw funds from the Accounts or any other account which contains funds collected in connection with the Property shall terminate. Property Manager shall remove all signs that it may have placed at the Property containing
its name and repair any resulting damage. In addition, Property Manager shall deliver the following to Owner on or before thirty (30) days following the termination or expiration date: 

(a)        A final accounting, reflecting the balance of income
and expenses for the Property as of the date of termination or expiration; 

  
 24 

 (b)        Any
monies due to Owner and any tenant security deposits held by Property Manager with respect to the Property; and 
 (c)        All keys, property, supplies, records, contracts, drawings, leases and correspondence, in existence at the time of termination or expiration and all
other papers or documents pertaining to the Property. All data, information and documents shall at all times be the property of Owner. 
 10.05.  Rights Which Survive Termination or Expiration.    Termination and/or expiration of this Agreement shall in no event terminate or prejudice any right arising
out of or accruing in connection with the terms of this Agreement attributable to events and circumstances occurring prior to termination or expiration of this Agreement, and/or all rights and obligations specified in this Agreement to survive such
termination and/or expiration. 
 ARTICLE 11.            MISCELLANEOUS.

 11.01.  Governing Law.    This Agreement shall be construed and enforced in
accordance with the laws of the State in which the property is located without going effect to the conflict of law principles of such State. 
 11.02.  Table of Contents and Headings.    The Table of Contents preceding this Agreement and the headings of the various articles and sections of this Agreement have
been inserted for convenient reference only and shall not have the effect of modifying or amending the express terms and provisions of this Agreement. 
 11.03.   Entire Agreement.    This Agreement contains the entire agreement between the parties with regard to the subject matter hereof, and this Agreement shall not
be amended, modified or cancelled except in writing signed by both parties or by their duly authorized agents. 

11.04.  Successors and Assigns.    All terms, conditions and agreements herein set forth shall inure
to the benefit of, and be binding upon the parties, and any and all of their respective permitted heirs, successors, representatives and assigns. Notwithstanding the foregoing, this Agreement may not be assigned by Property Manager nor shall
Property Manager delegate any of its duties hereunder without Owner’s prior written consent, which consent may be granted or withheld in Owner’s sole and absolute discretion. Any attempted assignment or delegation by Property Manager
hereunder in violation of this Section 11.04 shall be null and void and of no force or effect. 

11.05.  Waiver.     The failure of either party to insist upon a strict performance of any of the
terms or provisions of this Agreement or to exercise any option, right or remedy herein contained, shall not be construed as a waiver or as a relinquishment for the future of such terms, provisions, option, right or remedy, but the same shall
continue and remain in full force and effect. No waiver by either party of any terms or provisions hereof shall be deemed to have been made unless expressed in writing and signed by such party. In the event of consent by Owner to an assignment of
this Agreement, no 

  
 25 

 
further assignment shall be made without the express written consent of Owner. 
 11.06.  Severability.    Whenever possible each provision of this Agreement shall be interpreted in such manner as to be effective and valid under all applicable laws.
However, if any provision of this Agreement is invalid under any applicable law, such provision shall be ineffective only to the extent of such invalidity without invalidating the remaining provisions of this Agreement and, to the fullest extent
possible, this Agreement shall be interpreted so as to give effect to the stated written intent of the parties. 
  

	11.07.  Time.    Time	 is of the essence of this Agreement. 

 11.08.  Attorneys’ Fees.    In the event of any legal or equitable proceeding for enforcement of any of the terms or conditions of this Agreement, or any alleged
disputes, breaches, defaults or misrepresentations in connection with any provision of this Agreement, the prevailing party in such proceeding, or the non-dismissing party where the dismissal occurs other than by reason of a settlement, shall be
entitled to recover its reasonable costs and expenses, including without limitation reasonable attorneys’ fees and costs, paid or incurred in good faith at the pre-trial, trial and appellate levels, and in enforcing any award or judgment
granted pursuant thereto. Any award, judgment or order entered in any such proceeding shall contain a specific provision providing for the recovery of attorneys’ fees and costs incurred in enforcing such award or judgment, including without
limitation (a) post-award or post-judgment motions, (b) contempt proceedings, (c) garnishment, levy, and debtor and third party examinations, (d) discovery and (e) bankruptcy litigation. The “prevailing party”, for
purposes of this Agreement, shall be deemed to be that party that obtains substantially the result sought, whether by dismissal, award or judgment. 
 11.09.  Further Acts.  Owner and Property Manager shall execute such other documents and perform such other acts as may be reasonably necessary and/or helpful to carry out the
purposes of this Agreement. 
 11.10.  No Advertising.  No publication, announcement or other public
advertisement of the name of Owner in connection with the Property shall be made by Property Manager, except as may be required by applicable law or with the prior written consent of Owner. 

11.11.  Signs.  Signs and building directories are prohibited unless specifically approved by Owner. Property
Manager may place reasonable leasing signs as required with the prior approval of Owner. All signs must meet all requirements of local sign codes and ordinances. 
 11.12.  Owner Exculpatory Clause; Waivers of Jury Trial and Punitive Damages.  Property Manager agrees that no principal, officer, director, shareholder, partner, member,
investor, manager, representative, trustee, officer, employee or agent of Owner or of its members or partners shall be personally liable for any of the obligations of Owner hereunder and that Property Manager must look solely to the assets of Owner
for the enforcement of any claims against Owner arising hereunder. In addition, Property Manager hereby waives in connection with any such claim any right it may have to a jury trial and any punitive or consequential damages. 

11.14.  Notices.  Any notice required or desired to be given under this Agreement shall be given in

  
 26 

 
writing and shall be deemed sufficiently given and served for all purposes when personally delivered or delivered by any generally recognized courier, or by certified or registered mail,
addressed to the appropriate address shown below. Any notice given by depositing it in the United States mail as certified or registered mail, postage prepaid, shall be deemed given five (5) business days after deposit. 

 

			
	 Owner:
	    	 KBS Legacy Partners Watertower LLC

c/o KBS Capital Advisors, LLC

620 Newport Center Drive, Suite 1300

Newport Beach, California 92660

Attn:  David Snyder

		
	 With a copy to:
	    	 KBS Legacy Partners Watertower LLC

c/o Legacy Partners Residential, Inc.

7525 SE 24th Street, Suite 180

Mercer Island, WA 98040

Attention:  Kerry Nicholson

		
	 With a copy to:
	    	 KBS Legacy Partners Watertower LLC

c/o Legacy Partners Residential Realty LLC

4000 E. Third Avenue, Sixth Floor

Foster City, California 94404

Attn:  W. Dean Henry/Guy K. Hays

		
	 Property Manager:
	    	 Lincoln Property Company

1110 Jorie Blvd, Suite 300

Oak Brook, IL 60068

Attn:  K. Bruce Webster

		
	 With a copy to:
	    	 Lincoln Property Company

2000 McKinney, Ave., Suite 1000

Dallas, TX 75201
 Attn:  Scott Wilder

 11.15.  Counterparts.    This Agreement may be executed in any
number of counterparts and each such counterpart shall be deemed to be an original instrument, but all such executed counterparts together shall constitute one and the same instrument. 

[remainder of page intentionally left blank] 

  
 27 

 IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be executed as of the Effective Date. 
  

									
	         OWNER:
	 	 KBS LEGACY PARTNERS WATERTOWER LLC, a

Delaware limited liability company

			
		 	 By:    
	 	 KBS LEGACY PARTNERS PROPERTIES
 LLC, a Delaware limited liability company, its
 sole member

				
		 		 	 By:    
	 	 KBS LEGACY PARTNERS LIMITED
 PARTNERSHIP, a Delaware limited
 partnership, its sole member

					
		 		 		 	 By:    
	 	 KBS LEGACY PARTNERS
 APARTMENT REIT, INC., a
 Maryland corporation, its sole

general partner

					
		 		 		 		 	By: /s/ Guy K. Hays                       
     
		 		 		 		 	 Name: Guy K. Hays

		 		 		 		 	 Title: Executive Vice President

			
	         PROPERTY MANAGER:
	 		 	 LINCOLN APARTMENT MANAGEMENT
 LIMITED PARTNERSHIP, a Delaware limited
 partnership

		 		 	 BY:    
	 	 Lincoln BP Management Inc., a Texas
 Corporation, its General Partner

				
		 		 		 	By: /s/ K. Bruce Webster                    
            
		 		 		 	 Name: K. Bruce Webster

		 		 		 	 Its: RVP

  
 28 

 EXHIBIT A 
 LEGAL DESCRIPTION OF PROPERTY 

  
 A-1

 Legal Description 

Parcel 1: 
 Lot 2, Block 1,
Eden Prairie Marketcenter 2nd Addition, Hennepin County, Minnesota. Registered Property Certificate of Title No. 1158835. 
 Parcel 2:

 All right, title and interest-in and to that certain easement created pursuant to that certain Easement Agreement dated October 13, 1993
and filed of record October 18, 1993 in the office of the Register of Titles of Hennepin County, Minnesota as Document No. 2432486, as amended by that certain Amendment to Easement Agreement filed of record on May 1, 2002 in the
office of the Registrar of Titles of Hennepin County, Minnesota as Document No. 3538022, and further amended by that certain Assumption of Easement Obligations Agreement filed May 1, 2002 in the office of the Registrar of Titles of
Hennepin County, Minnesota as Document No. 3538025, and further amended by that certain Second Amendment to Easement Agreement filed July 22, 2005 in the office of the Registrar of Titles of Hennepin County, Minnesota as Document No.
4139579. 
 Parcel 3: 
 All right
title and interest in and to that certain easement created pursuant to that certain Cross Easement Agreement dated October 13, 1993 and filed of record October 18, 1993 in the office of the Registrar of Titles of Hennepin County, Minnesota
as Document No. 2432481. 

 EXHIBIT B 
 RENTAL GUIDELINES 
 Property Manager may enter into new leases for space at the Property and renew
or extend existing leases without Owner’s prior written consent provided that each such lease: 
  

	1)	for residential apartment units: 

  

	 	a)	is documented using, and does not materially deviate from, the National Apartment Association form of Apartment Lease for Minnesota, other than changes required by law
or any governmental agency; and 

  

	 	b)	shall be for initial terms of at least six (6) months and not more than fifteen (15) months, unless a longer lease is included in the Annual Business Plan (as
defined in the Operating Agreement). 

  

	2)	provides for rental rates and terms no less than the suggested daily rates provided by YieldStar unless otherwise approved by Owner. 

 

	3)	is not for a corporate apartment unit except that the Property Manager may enter into an arms-length lease for corporate apartment units of up to ten percent
(10%) of the total number of apartment units, unless the Annual Business Plan provides for more than ten percent (10%) of the total number of apartment units to be available as corporate apartment units; provided, however, unless otherwise
approved by Owner Property Manager will not allow more than 10 corporate leases to expire in any given month. 

  

	4)	is an arms-length transaction with a tenant that is not an Affiliate of Owner or Property Manager (with the exception of apartment units which may be leased to
employees of an Affiliate of the Owner or Property Manager as designated in, and at rental rates no less than those set forth in, the Annual Business Plan). 

 

	5)	Equal Housing Opportunity: Property Management will do business in accordance with the Federal Fair Housing Law. 

 

	6)	Resident Income: Excepted as approved by Owner in writing, prospective residents will have monthly income which will at a minimum be three times the monthly rent.

  

	7)	Credit: All prospective residents must have satisfactory credit as determined in the best judgment of Property Manager. As evidence of prospective residents’
satisfactory credit history, Property Manager shall procure a background check and credit report for prospective tenants from a national reporting agency. 

 

	8)	Employment: Property manager shall confirm employment and salary for prospective tenants for at least the prior three years by, among other satisfactory methods,
contacting prior employers of prospective tenants. 

  

	9)	Previous Residence: If appropriate, Property Manager shall confirm satisfactory residency for prospective tenants, including without limitation, contacting previous
landlords of prospective tenants. 

  

	10)	Rental Guideline Changes: Any material changes in the above guidelines shall be submitted to the Owner for review and approval 

  
 B-1EX-4.2

 Exhibit 4.2 
 EXECUTION VERSION 
  

 
 REGISTRATION RIGHTS AGREEMENT

 Dated October 23, 2012 
 among 
 LENNAR CORPORATION 

AND THE GUARANTORS NAMED HEREIN 
 as Issuers, 
 and 

CITIGROUP GLOBAL MARKETS INC., 
 J.P. MORGAN SECURITIES LLC, 
 UBS SECURITIES LLC, 

BMO CAPITAL MARKETS CORP., 
 DEUTSCHE BANK SECURITIES INC., 
 and 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED 
 as Representatives of the Several Initial Purchasers 
 4.750% Senior Notes due 2022

  
  

 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement (this “Agreement”) is made and entered into on October 23, 2012, among LENNAR CORPORATION, a Delaware corporation (the “Company”),
and the other entities that are listed on the signature pages hereof (collectively with any entity that in the future executes a supplemental indenture pursuant to which such entity agrees to guarantee the Notes (as hereinafter defined), the
“Guarantors” and, together with the Company, the “Issuers”), and CITIGROUP GLOBAL MARKETS INC., J.P. MORGAN SECURITIES LLC, UBS SECURITIES LLC, BMO CAPITAL MARKETS CORP., DEUTSCHE BANK SECURITIES INC. and MERRILL
LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as representatives (the “Representatives”) of the several initial purchasers (the “Initial Purchasers”) under the Purchase Agreement (as defined below).

 This Agreement is entered into in connection with the Purchase Agreement, dated October 18, 2012, among the Company and
the Representatives, as representatives of the Initial Purchasers (the “Purchase Agreement”), which provides for, among other things, the sale by the Company to the Initial Purchasers of $350,000,000 aggregate principal amount of
the Company’s 4.750% Senior Notes due 2022 (the “Notes”). The Notes are unconditionally guaranteed (the “Guarantees”) by each of the Guarantors. The Notes and the Guarantees are collectively referred to herein
as the “Securities”. In order to induce the Representatives to enter into the Purchase Agreement, the Issuers have agreed to provide the registration rights set forth in this Agreement for the benefit of the Initial Purchasers and
any subsequent holder or holders of the Securities. The execution and delivery of this Agreement is a condition to the Initial Purchasers’ obligation to purchase the Securities under the Purchase Agreement. 

The parties hereby agree as follows: 
 1. Definitions 
 As used in this Agreement, the following terms shall have
the following meanings: 
 Additional Interest: See Section 4 hereof. 

Additional Notes: See Section 2(a) hereof. 
 Advice: See the last paragraph of Section 5 hereof. 
 Agreement:
See the introductory paragraphs hereto. 
 Applicable Period: See Section 2 hereof. 

Automatic Shelf Registration Statement: An “automatic shelf registration” statement within the meaning of Rule 405.

 Business Day: Each Monday, Tuesday, Wednesday, Thursday and Friday which is a day on which banking institutions are
open in New York, New York. 

 Company: See the introductory paragraphs hereto. 

Effectiveness Date: March 22, 2013; provided, however, that with respect to any Shelf Registration Statement,
the Effectiveness Date shall be the 75th day following the Filing Date with respect thereto. 
 Effectiveness Period: See
Section 3(a) hereof. 
 Event Date: See Section 4(b) hereof. 

Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

 Exchange Notes: See Section 2 hereof. 
 Exchange Offer: See Section 2 hereof. 
 Exchange Offer Registration
Statement: See Section 2 hereof. 
 Filing Date: (A) If no Exchange Offer Registration Statement has been
filed by the Issuers pursuant to this Agreement, February 20, 2013; and (B) in each other case (which may be applicable notwithstanding the consummation of the Exchange Offer), the 30th day after the delivery of a Shelf Notice. 

FINRA: See Section 5(r) hereof. 
 Guarantees: See the introductory paragraphs hereto. 
 Guarantors: See
the introductory paragraphs hereto. 
 Holder: Any holder of a Registrable Security or Registrable Securities. 

Indemnified Person: See Section 7(c) hereof. 
 Indemnifying Person: See Section 7(c) hereof. 
 Indenture: The
Indenture, dated October 23, 2012, by and among the Issuers, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee, pursuant to which the Notes are being issued, as the same may be amended or supplemented
from time to time in accordance with the terms thereof. 
 Initial Purchasers: See the introductory paragraphs hereto.

 Initial Shelf Registration Statement: See Section 3(a) hereof. 

Inspectors: See Section 5(m) hereof. 
 Issue Date: October 23, 2012, the date of original issuance of the Securities. 

  
 - 2 -

 Notes: See the introductory paragraphs hereto. 

Offering Memorandum: The offering memorandum of the Company dated October 18, 2012, in respect of the offering of the
Securities. 
 Participant: See Section 7(a) hereof. 

Participating Broker-Dealer: See Section 2(a) hereof. 
 Person: An individual, trustee, corporation, limited liability company, partnership, joint stock company, trust, unincorporated association, union, business association, firm or other legal entity.

 Private Exchange: See Section 2(b) hereof. 

Private Exchange Notes: See Section 2(b) hereof. 
 Prospectus: The prospectus included in any Registration Statement (including, without limitation, any prospectus subject to completion and a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act and any term sheet filed pursuant to Rule 433 under the Securities Act), as amended or supplemented by any
prospectus supplement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

Purchase Agreement: See the introductory paragraphs hereto. 

Records: See Section 5(m) hereof. 
 Registrable Notes: Each Note upon its original issuance and at all times subsequent thereto, each Exchange Note as to which Section 2(c)(iv) hereof is applicable upon original issuance and at
all times subsequent thereto and each Private Exchange Note upon original issuance thereof and at all times subsequent thereto, until the earliest to occur of (i) a Registration Statement (other than, with respect to any Exchange Note as to
which Section 2(c)(iv) hereof is applicable, the Exchange Offer Registration Statement) covering such Note, Exchange Note or Private Exchange Note has been declared effective by the SEC and such Note, Exchange Note or such Private Exchange
Note, as the case may be, has been disposed of in accordance with such effective Registration Statement, (ii) such Note has been exchanged pursuant to the Exchange Offer for an Exchange Note or Exchange Notes that may be resold (or, but for the
status of such Holder as an affiliate of the Issuers under Rule 405, could be resold) without restriction under state and federal securities laws, (iii) such Note, Exchange Note or Private Exchange Note, as the case may be, ceases to be
outstanding for purposes of the Indenture or (iv) such Note, Exchange Note or Private Exchange Note, as the case may be, may be resold without restriction pursuant to Rule 144 (as amended or replaced) under the Securities Act and if requested
by the Holder the restrictive legend has been removed. 
 Registrable Securities: Each Registrable Note and related
guarantees. 

  
 - 3 -

 Registration Statement: Any registration statement of the Issuers that covers any of
the Securities, the Exchange Notes (and related guarantees) or the Private Exchange Notes (and related guarantees) filed with the SEC under the Securities Act, including the Prospectus, amendments and supplements to such registration statement,
including post-effective amendments, all exhibits, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement. 
 Rule 144: Rule 144 promulgated under the Securities Act, as such Rule may be amended from time to time, or any similar rule (other than Rule 144A) or regulation hereafter adopted by the SEC
providing for offers and sales of securities made in compliance therewith resulting in offers and sales by subsequent holders that are not affiliates of the issuer of such securities being free of the registration and prospectus delivery
requirements of the Securities Act. 
 Rule 144A: Rule 144A promulgated under the Securities Act, as such Rule may be
amended from time to time, or any similar rule (other than Rule 144) or regulation hereafter adopted by the SEC. 
 Rule
405: Rule 405 under the Securities Act. 
 Rule 415: Rule 415 promulgated under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC. 
 SEC: The Securities and
Exchange Commission. 
 Securities: See the introductory paragraphs hereto. 

Securities Act: The Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.

 Shelf Notice: See Section 2(c) hereof. 
 Shelf Registration Statement: See Section 3(b) hereof. 
 Subsequent
Shelf Registration Statement: See Section 3(b) hereof. 
 TIA: The Trust Indenture Act of 1939, as amended.

 Trustee: The trustee under the Indenture and the trustee (if any) under any indenture governing the Exchange Notes (and
related guarantees) and Private Exchange Notes (and related guarantees). 
 Underwritten registration or underwritten
offering: A registration in which securities of one or more of the Issuers are sold to an underwriter for reoffering to the public. 
 WKSI: A “well known seasoned issuer” as defined in Rule 405. 

  
 - 4 -

 2. Exchange Offer 

(a) The Issuers shall file with the SEC, no later than the Filing Date, a Registration Statement (the “Exchange Offer Registration
Statement”) on an appropriate registration form with respect to a registered offer (the “Exchange Offer”) to exchange any and all of the Registrable Securities for a like aggregate principal amount of notes of the Company,
guaranteed by the Guarantors, that are identical in all material respects to the Securities, except that the Exchange Notes shall contain no restrictive legend thereon and no provision for payment of additional interest in the event of a
registration default (the “Exchange Notes”), and which are entitled to the benefits of the Indenture or a trust indenture which is identical in all material respects to the Indenture (other than such changes to the Indenture or any
such identical trust indenture as are necessary to comply with the TIA) and which, in either case, has been qualified under the TIA. Interest on each Exchange Note will accrue (A) from the later of (1) the last interest payment date on
which interest was paid on the Note surrendered, or (2) if the Note is surrendered for exchange on a date in a period which includes the record date for an interest payment date to occur on or after the date of the exchange and as to which
interest will be paid, such interest payment date or (B) if no interest has been paid on that Note, from the Issue Date. The Exchange Offer shall comply with all applicable tender offer rules and regulations under the Exchange Act and other
applicable laws. The Issuers shall use their reasonable best efforts to (x) cause the Exchange Offer Registration Statement to be declared effective under the Securities Act on or before the Effectiveness Date; (y) keep the Exchange Offer
open for acceptance for not less than 30 days (or longer if required by applicable law) after the date that notice of the Exchange Offer is mailed to Holders; and (z) consummate the Exchange Offer on or before April 22, 2013. If, after the
Exchange Offer Registration Statement is initially declared effective by the SEC, the Exchange Offer or the issuance of the Exchange Notes (and related guarantees) thereunder is interfered with by any stop order, injunction or other order or
requirement of the SEC or any other governmental agency or court, the Exchange Offer Registration Statement shall be deemed not to have become effective for purposes of this Agreement. 

Each Holder that participates in the Exchange Offer will be required, as a condition to its participation in the Exchange Offer, to
represent to the Company in writing (which may be contained in the applicable letter of transmittal) (1) that any Exchange Notes (and related guarantees) to be received by it will be acquired in the ordinary course of its business,
(2) that at the time of the consummation of the Exchange Offer such Holder will have no arrangement or understanding with any Person to participate in the distribution of the Exchange Notes (and related guarantees) in violation of the
provisions of the Securities Act, (3) that such Holder is not an “affiliate” (as defined in Rule 405 promulgated under the Securities Act) of any Issuer, (4) if the holder is not a broker-dealer, that it is not engaged in,
and does not intend to engage in, the distribution of Exchange Notes (and related guarantees) and (5) if the holder is a broker-dealer (a “Participating Broker-Dealer”) that it will receive the Exchange Notes (and related
guarantees) for its own account in exchange for Securities that were acquired as a result of market-making or other trading activities, and that it will deliver a prospectus in connection with any resale of the Exchange Notes (and related
guarantees). 
 Upon consummation of the Exchange Offer in accordance with this Section 2, the provisions of this Agreement
shall continue to apply, mutatis mutandis, solely with respect to Registrable Securities that are Private Exchange Notes (and related guarantees), Exchange Notes 

  
 - 5 -

 
(and related guarantees) as to which Section 2(c)(iv) is applicable and Exchange Notes (and related guarantees) held by Participating Broker-Dealers, and the Issuers shall have no further
obligation to register Registrable Securities (other than Private Exchange Notes (and related guarantees) and other than in respect of any Exchange Notes (and related guarantees) as to which clause 2(c)(iv) hereof applies) pursuant to Section 3
hereof. 
 No securities other than the Exchange Notes (and related guarantees) shall be included in the Exchange Offer
Registration Statement; provided, however that if the Company issues under the Indenture additional 4.750% Senior Notes due 2022 (and related guarantees) that are identical in all material respects to the Notes and have the same CUSIP number as the
Notes (“Additional Notes”), the Company may include in the Exchange Offer Registration Statement a like aggregate principal amount of notes of the Company, guaranteed by the Guarantors, that are identical in all material respects to
the Additional Notes, except that such notes shall contain no restrictive legend thereon and no provision for payment of additional interest in the event of a registration default. The period of resale restrictions applicable to any Notes previously
offered and sold in reliance on Rule 144A under the Securities Act shall automatically be extended to the last day of the period of any resale restrictions imposed on such Additional Notes. 

(b) The Issuers shall include within the Prospectus contained in the Exchange Offer Registration Statement a section entitled “Plan
of Distribution,” reasonably acceptable to the Representatives, which shall contain a summary statement of the positions taken or policies made by the staff of the SEC with respect to the potential “underwriter” status of any
Participating Broker-Dealer that is the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of Exchange Notes received by such Participating Broker-Dealer in the Exchange Offer, whether such positions or policies have been publicly
disseminated by the staff of the SEC or such positions or policies represent the prevailing views of the staff of the SEC. Such “Plan of Distribution” section shall also expressly permit, to the extent permitted by applicable policies and
regulations of the SEC, the use of the Prospectus by all Persons subject to the prospectus delivery requirements of the Securities Act with respect to the Exchange Notes, including, to the extent permitted by applicable policies and regulations of
the SEC, all Participating Broker-Dealers, and include a statement describing the means by which Participating Broker-Dealers may resell the Exchange Notes in compliance with the Securities Act. 

The Issuers shall use their best efforts to keep the Exchange Offer Registration Statement effective and to amend and supplement the
Prospectus contained therein in order to permit such Prospectus to be lawfully delivered by all Persons subject to the prospectus delivery requirements of the Securities Act with respect to the Exchange Notes for such period of time as is necessary
to comply with applicable law in connection with any resale of the Exchange Notes covered thereby; provided, however, that such period shall not exceed 180 days after such Exchange Offer Registration Statement is declared effective (or
such longer period if extended pursuant to the last paragraph of Section 5 hereof) (the “Applicable Period”). 
 If, prior to consummation of the Exchange Offer, any Holder holds any Registrable Securities acquired by it that have, or that are reasonably likely to be determined to have, the status of an unsold
allotment in an initial distribution, or any Holder is not entitled to participate in the Exchange Offer, the Issuers upon the request of any such Holder shall 

  
 - 6 -

 
simultaneously with the delivery of the Exchange Notes in the Exchange Offer, issue and deliver to any such Holder, in exchange (the “Private Exchange”) for such Registrable
Securities held by any such Holder, a like principal amount of notes (the “Private Exchange Notes”) of the Company, guaranteed by the Guarantors, that are identical in all material respects to the Exchange Notes except for the
placement of a restrictive legend on such Private Exchange Notes. The Private Exchange Notes shall be issued pursuant to the same indenture as the Exchange Notes and bear the same CUSIP number as the Exchange Notes. 

In connection with the Exchange Offer, the Issuers shall: 

(i) mail, or cause to be mailed, to each Holder of record entitled to participate in the Exchange Offer a copy of the
Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents; 
 (ii) use their best efforts to keep the Exchange Offer open for acceptance for not less than 30 days after the date that notice of the Exchange Offer is mailed to Holders (or longer if required by
applicable law); 
 (iii) utilize the services of a depositary for the Exchange Offer with an address in the
Borough of Manhattan, The City of New York; 
 (iv) permit Holders to withdraw tendered Securities at any time
prior to the close of business, New York time, on the last Business Day on which the Exchange Offer shall remain open; and 
 (v) otherwise comply in all material respects with all laws, rules and regulations applicable to the Exchange Offer. 
 As soon as practicable after the close of the Exchange Offer and the Private Exchange, if any, the Issuers shall: 
 (vi) accept for exchange all Registrable Securities that are validly tendered and not validly withdrawn pursuant to the Exchange Offer and the Private Exchange, if any; 

(vii) deliver to the Trustee for cancellation all Registrable Securities so accepted for exchange; and 

(viii) cause the Trustee to authenticate and deliver promptly to each Holder of Securities that are accepted for exchange,
Exchange Notes or Private Exchange Notes (and related guarantees), as the case may be, equal in principal amount to the Securities of such Holder so accepted for exchange. 
 The Exchange Notes (and related guarantees) and the Private Exchange Notes (and related guarantees) shall be issued under (i) the Indenture or (ii) an indenture identical in all material
respects to the Indenture and which, in either case, has been qualified under the TIA or is exempt from such qualification and shall provide that the Exchange Notes (and related 

  
 - 7 -

 
guarantees) shall not be subject to the transfer restrictions set forth in the Indenture. The Indenture or such indenture shall provide that the Exchange Notes (and related guarantees), the
Private Exchange Notes (and related guarantees) and the Securities shall vote and consent together on all matters as one class and that none of the Exchange Notes (and related guarantees), the Private Exchange Notes (and related guarantees) or the
Securities will have the right to vote or consent as a separate class on any matter. 
 (c) If, (i) because of any change
in law or in currently prevailing interpretations by the SEC staff, the Issuers are not permitted to effect the Exchange Offer, (ii) the Exchange Offer is not consummated by April 22, 2013, (iii) in certain circumstances, certain
holders of Private Exchange Notes (and related guarantees) so request in writing to the Company, or (iv) in the case of any Holder that tenders Securities in response to the Exchange Offer, such Holder does not receive Exchange Notes on the
date of the exchange that may be sold without restriction under state and federal securities laws (other than due solely to the status of such Holder as an affiliate of any of the Issuers within the meaning of the Securities Act), then in the case
of each of clauses (i) to and including (iv) of this sentence, the Issuers shall (a) promptly deliver to the Holders and the Trustee written notice thereof (the “Shelf Notice”) and (b) at its sole expense and as
promptly as practicable shall file a Shelf Registration Statement pursuant to Section 3 hereof. 
 Notwithstanding anything
in this Agreement to the contrary, if (i) a Filing Date or Effectiveness Date (or other date by which a filing is to be made or become effective) would fall on a day that is not a Business Day or (ii) the date by which the Exchange Offer
is to be consummated would fall on a day that is not a Business Day, such Filing Date, Effectiveness Date (or other date by which a filing is to be made or become effective) or consummation date shall instead be the next succeeding Business Day.

 3. Shelf Registration 
 If at any time a Shelf Notice is delivered as contemplated by Section 2(c) hereof, then: 
 (a) Shelf Registration. The Issuers shall file with the SEC a Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 covering all of the Registrable Securities
not exchanged in the Exchange Offer, Private Exchange Notes (and related guarantees) and Exchange Notes (and related guarantees) as to which Section 2(c)(iv) is applicable (the “Initial Shelf Registration Statement”), which
Initial Shelf Registration Statement shall be an Automatic Shelf Registration Statement if the Company is then a WKSI and there is no other reason the Company is not permitted to file the Initial Shelf Registration Statement as an Automatic Shelf
Registration Statement. The Company shall use its best efforts to file with the SEC the Initial Shelf Registration Statement on or before the applicable Filing Date. The Initial Shelf Registration Statement shall be on Form S-3 or another
appropriate form permitting registration of such Registrable Securities for resale by Holders in the manner or manners designated by them (including, without limitation, one or more underwritten offerings). The Issuers shall not permit any
securities other than the Registrable Securities to be included in the Initial Shelf Registration Statement or any Subsequent Shelf Registration Statement (as defined below); provided, however that if the Company issues Additional Notes, the Company
may include the Additional Notes in the Initial Shelf Registration Statement or any Subsequent Shelf Registration Statement. 

  
 - 8 -

 If the Initial Shelf Registration Statement is not an Automatic Shelf Registration
Statement, the Issuers shall use their best efforts to cause the Initial Shelf Registration Statement to be declared effective under the Securities Act on or before the Effectiveness Date. The Issuers shall use their best efforts to keep the Initial
Shelf Registration Statement continuously effective under the Securities Act until the date which is two years from the Issue Date (the “Effectiveness Period”), or such shorter period ending when (i) all Registrable Securities
covered by the Initial Shelf Registration Statement have been sold in the manner set forth and as contemplated in the Initial Shelf Registration Statement, (ii) all Registrable Securities covered by the Initial Shelf Registration Statement that
have not been sold in sales contemplated by the Initial Shelf Registration Statement have become eligible for resale by holders thereof under Rule 144 without regard to volume, manner of sale or other restrictions or (iii) a Subsequent Shelf
Registration Statement covering all of the Registrable Securities covered by and not sold under the Initial Shelf Registration Statement or an earlier Subsequent Shelf Registration Statement has been declared effective under the Securities Act;
provided, however, that the Effectiveness Period in respect of the Initial Shelf Registration Statement shall be extended to the extent required to permit dealers to comply with the applicable prospectus delivery requirements of Rule
174 under the Securities Act and as otherwise provided herein. 
 (b) Subsequent Shelf Registrations. If the Initial
Shelf Registration Statement or any Subsequent Shelf Registration Statement ceases to be effective for any reason at any time during the Effectiveness Period (other than because of the sale of all of the securities registered thereunder or because
all of the securities registered thereunder that have not been sold in sales contemplated by the Initial Shelf Registration Statement have become eligible for resale by the holders thereof under Rule 144 without regard to volume, manner of sale or
other restrictions), the Company shall use its best efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within 30 days of such cessation of effectiveness amend the Initial Shelf
Registration Statement in a manner to obtain the withdrawal of the order suspending the effectiveness thereof, or file an additional “shelf” Registration Statement pursuant to Rule 415 covering all of the Registrable Securities covered by
and not sold under the Initial Shelf Registration Statement or an earlier Subsequent Shelf Registration Statement (each, a “Subsequent Shelf Registration Statement”). If a Subsequent Shelf Registration Statement is filed and is not
an Automatic Shelf Registration Statement, the Company shall use its best efforts to cause the Subsequent Shelf Registration Statement to be declared effective under the Securities Act as soon as practicable after such filing. The Company shall use
its best efforts to keep any subsequent Shelf Registration Statement continuously effective for a period equal to the number of days in the Effectiveness Period less the aggregate number of days during which the Initial Shelf Registration Statement
or any other Subsequent Shelf Registration Statement was previously continuously effective. As used herein the term “Shelf Registration Statement” means the Initial Shelf Registration Statement and any Subsequent Shelf Registration
Statement. 
 (c) Supplements and Amendments. The Issuers shall promptly supplement and amend any Shelf Registration
Statement if required by the rules, regulations or instructions applicable to the registration form used for such Shelf Registration Statement, if required by the Securities Act, or if reasonably requested by the Holders of a majority in aggregate
principal amount of the Registrable Securities (or their counsel) covered by such Registration Statement or by any underwriter of such Registrable Securities. 

  
 - 9 -

 4. Additional Interest 

(a) The Issuers and the Representatives agree that the Holders will suffer damages if the Issuers fail to fulfill their obligations under
Section 2 or Section 3 hereof and that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, the Issuers agree to pay, as liquidated damages, additional interest on the Notes (“Additional
Interest”) under the circumstances and to the extent set forth below (each of which shall be given independent effect): 
 (i) if (A) neither the Exchange Offer Registration Statement nor the Initial Shelf Registration Statement has been filed with the SEC on or before the applicable Filing Date or
(B) notwithstanding that the Issuers have consummated or will consummate the Exchange Offer, the Issuers are required to file a Shelf Registration Statement and such Shelf Registration Statement has not been filed with the SEC on or before the
Filing Date applicable thereto, then, commencing on the day after any such Filing Date, Additional Interest shall accrue on the principal amount of the Securities at a rate of 0.25% per annum for the first 90 days immediately following each
such Filing Date, and such Additional Interest rate shall increase by an additional 0.25% per annum at the beginning of each subsequent 90-day period; or 
 (ii) if (A) neither the Exchange Offer Registration Statement nor the Initial Shelf Registration Statement has been declared effective by the SEC (or was automatically effectively upon its filing
with the SEC) on or before the applicable Effectiveness Date or (B) notwithstanding that the Issuers have consummated or will consummate the Exchange Offer, the Issuers are required to file a Shelf Registration Statement and such Shelf
Registration Statement has not been declared effective by the SEC (or was not automatically effective upon its filing with the SEC) on or before the applicable Effectiveness Date with respect to such Shelf Registration Statement, then, commencing on
the day after such Effectiveness Date, Additional Interest shall accrue on the principal amount of the Securities at a rate of 0.25% per annum for the first 90 days immediately following the day after such Effectiveness Date, and such
Additional Interest rate shall increase by an additional 0.25% per annum at the beginning of each subsequent 90-day period; or 
 (iii) if (A) the Issuers have not exchanged Exchange Notes (and related guarantees) for all Registrable Securities validly tendered in accordance with the terms of the Exchange Offer on or before
May 21, 2013 or (B) if applicable, a Shelf Registration Statement has been declared effective and such Shelf Registration Statement ceases to be effective at any time during the Effectiveness Period, then, Additional Interest shall accrue
on the principal amount of the Securities at a rate of 0.25% per annum for the first 90 days commencing on (x) May 21, 2013, in the case of (A) above, or (y) the day such Shelf Registration Statement ceases to be effective
in the case of (B) above, and such Additional Interest rate shall increase by an additional 0.25% per annum at the beginning of each such subsequent 90-day period; 

  
 - 10 -

 provided, however, that Additional Interest on the Notes may not under any circumstance accrue
under more than one of the foregoing clauses (i), (ii) and (iii) of this Section 4(a) and the rate at which Additional Interest accrues on the Notes as a result of the provisions of clauses (i), (ii) and (iii) of this
Section 4(a) may not exceed in the aggregate 1.0% per annum; provided further, that (1) upon the filing of the applicable Exchange Offer Registration Statement or the applicable Shelf Registration Statement as required
hereunder (in the case of clause (i) of this Section 4(a)), (2) upon the effectiveness of the Exchange Offer Registration Statement or the applicable Shelf Registration Statement as required hereunder (in the case of clause
(ii) of this Section 4(a)), or (3) upon the exchange of the Exchange Notes (and related guarantees) for all Securities tendered (in the case of clause (iii)(A) of this Section 4(a)), or upon the effectiveness of a Subsequent
Shelf Registration Statement in the case of Shelf Registration Statement which had ceased to remain effective (in the case of clause (iii)(B) of this Section 4(a)), Additional Interest on the Registrable Notes as a result of such clause (or the
relevant subclause thereof), as the case may be, shall cease to accrue. 
 (b) The Issuers shall notify the Trustee within three
Business Days after each and every date on which an event occurs in respect of which Additional Interest is required to be paid (an “Event Date”), which notice shall also be at least three Business Days prior to the date of any
payment to be made in accordance with the following sentence. Any amounts of Additional Interest due pursuant to (a)(i), (a)(ii) or (a)(iii) of this Section 4 will be payable in cash simultaneously with, and to the same persons entitled to
receive, stated interest on the Notes, commencing with the first such payment of interest occurring after any such Additional Interest commences to accrue. The amount of Additional Interest payable with respect to Registrable Notes will be
determined by multiplying the applicable Additional Interest rate by the principal amount of the Registrable Notes, multiplied by a fraction, the numerator of which is the number of days such Additional Interest rate was applicable during such
period (determined on the basis of a 360-day year comprised of twelve 30-day months and, in the case of a partial month, the actual number of days elapsed), and the denominator of which is 360. 

5. Registration Procedures 
 In connection with the filing of any Registration Statement pursuant to Sections 2 or 3 hereof, the Issuers shall effect such registrations to permit the sale of the securities covered thereby in
accordance with the intended method or methods of disposition thereof, and pursuant thereto and in connection with any Registration Statement filed by the Issuers hereunder each of the Issuers shall: 

(a) Prepare and file with the SEC before the applicable Filing Date, a Registration Statement or Registration Statements as prescribed by
Sections 2 or 3 hereof, and use its best efforts to cause each such Registration Statement to become effective and remain effective as provided herein; provided, however, that, if (1) such filing is pursuant to Section 3
hereof, or (2) a Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by any Participating

  
 - 11 -

 
Broker-Dealer who seeks to sell Exchange Notes (and related guarantees) during the Applicable Period relating thereto, before filing any Registration Statement or Prospectus or any amendments or
supplements thereto, the Issuers shall furnish to and afford the Holders of the Registrable Securities included in such Registration Statement or each such Participating Broker-Dealer, as the case may be, their counsel and the managing underwriters,
if any, a reasonable opportunity to review copies of all such documents (including copies of any documents to be incorporated by reference therein and all exhibits thereto) proposed to be filed (in each case at least five days prior to such filing,
or such later date as is reasonable under the circumstances). The Issuers shall not file any Registration Statement or Prospectus or any amendments or supplements thereto if the Holders of a majority in aggregate principal amount of the Registrable
Securities included in such Registration Statement, or any such Participating Broker-Dealer, as the case may be, their counsel, or the managing underwriters, if any, shall reasonably object. 

(b) Prepare and file with the SEC such amendments and post-effective amendments to each Shelf Registration Statement or Exchange Offer
Registration Statement, as the case may be, as may be necessary to keep such Registration Statement continuously effective for the Effectiveness Period or the Applicable Period, as the case may be; cause the related Prospectus to be supplemented by
any Prospectus supplement required by applicable law, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the Securities Act; and comply with the provisions of the Securities Act and
the Exchange Act applicable to each of them with respect to the disposition of all securities covered by such Registration Statement as so amended or in such Prospectus as so supplemented and with respect to the subsequent resale of any securities
being sold by a Participating Broker-Dealer covered by any such Prospectus. The Issuers shall be deemed not to have used their best efforts to keep a Registration Statement effective during the Effectiveness Period or the Applicable Period, as the
case may be, relating thereto, if any of the Issuers voluntarily takes any action that would result in selling Holders of the Registrable Securities covered thereby or Participating Broker-Dealers seeking to sell Exchange Notes (and related
guarantees) not being able to sell such Registrable Securities or such Exchange Notes (and related guarantees) during that period unless such action is required by applicable law or permitted by this Agreement. 

(c) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof, or (2) a Prospectus contained in the
Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes (and related guarantees) during the Applicable
Period relating thereto from whom any of the Issuers has received written notice that it will be a Participating Broker-Dealer in the Exchange Offer, notify the selling Holders of Registrable Securities, or each such Participating Broker-Dealer, as
the case may be, their counsel and the managing underwriters, if any, promptly (but in any event within one day), and confirm such notice in writing, (i) when a Prospectus or any Prospectus supplement or post-effective amendment has been filed,
and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective under the Securities Act (including in such notice a written statement that any Holder may, upon request, obtain, at the sole expense
of the Issuers, one conformed copy of such Registration Statement or post-effective amendment including financial statements and schedules, documents incorporated or deemed to be incorporated by reference and exhibits), (ii) of the issuance by
the SEC of any stop order suspending the effectiveness of a Registration Statement or of any order preventing or 

  
 - 12 -

 
suspending the use of any preliminary prospectus or the initiation of any proceedings for that purpose, (iii) if at any time when a prospectus is required by the Securities Act to be
delivered in connection with sales of the Registrable Securities or resales of Exchange Notes (and related guarantees) by Participating Broker-Dealers, the representations and warranties of the Issuers contained in any agreement (including any
underwriting agreement) contemplated by Section 5(l) hereof cease to be true and correct in all material respects, (iv) of the receipt by any of the Issuers of any notification with respect to the suspension of the qualification or
exemption from qualification of a Registration Statement or any of the Registrable Securities or the Exchange Notes (and related guarantees) to be sold by any Participating Broker-Dealer for offer or sale in any jurisdiction, or the initiation or
threatening of any proceeding for such purpose, (v) of the happening of any event, the existence of any condition or any information becoming known that makes any statement made in such Registration Statement or related Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in or amendments or supplements to such Registration Statement, Prospectus or documents so that, in the
case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the
Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading, and (vi) of the Issuers’ determination that a post-effective amendment to a Registration Statement would be appropriate. 
 (d) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2
hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes (and related guarantees) during the Applicable Period, use its best efforts to prevent the issuance of any order
suspending the effectiveness of the Registration Statement or of any order preventing or suspending the use of the Prospectus or suspending the qualification (or exemption from qualification) of any of the Registrable Securities or the Exchange
Notes (and related guarantees) to be sold by any Participating Broker-Dealer, for sale in any jurisdiction, and, if any such order is issued, to use its best efforts to obtain the withdrawal of any such order at the earliest possible moment.

 (e) If a Shelf Registration Statement is filed pursuant to Section 3 and if requested by the managing underwriter or
underwriters (if any), the Holders of a majority in aggregate principal amount of the Registrable Securities being sold in connection with an underwritten offering or any Participating Broker-Dealer, (i) as promptly as practicable incorporate
in a prospectus supplement or post-effective amendment such information as the managing underwriter or underwriters (if any), such Holders, any Participating Broker-Dealer or counsel for any of them reasonably request to be included therein,
(ii) make all required filings of such prospectus supplement or such post-effective amendment as soon as practicable after the Company has received notification of the matters to be incorporated in such prospectus supplement or post-effective
amendment, and (iii) supplement or make amendments to such Registration Statement. 

  
 - 13 -

 (f) If (1) a Shelf Registration Statement is filed pursuant to Section 3 hereof,
or (2) a Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes (and
related guarantees) during the Applicable Period, furnish to each selling Holder of Registrable Securities and to each such Participating Broker-Dealer who so requests and to their respective counsel and each managing underwriter, if any, at the
sole expense of the Issuers, one conformed copy of the Registration Statement or Registration Statements and each post-effective amendment thereto, including financial statements and schedules, and, if requested, all documents incorporated or deemed
to be incorporated therein by reference and all exhibits. 
 (g) If (1) a Shelf Registration Statement is filed pursuant to
Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell
Exchange Notes (and related guarantees) during the Applicable Period, deliver to each selling Holder of Registrable Securities, or each such Participating Broker-Dealer, as the case may be, their respective counsel, and the underwriters, if any, at
the sole expense of the Issuers, as many copies of the Prospectus or Prospectuses (including each form of preliminary prospectus) and each amendment or supplement thereto and any documents incorporated by reference therein as such Persons may
reasonably request; and, subject to the last paragraph of this Section 5, the Issuers hereby consent to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders of Registrable Securities or each such
Participating Broker-Dealer, as the case may be, and the underwriters or agents, if any, and dealers, if any, in connection with the offering and sale of the Registrable Securities covered by, or the sale by Participating Broker-Dealers of the
Exchange Notes (and related guarantees) pursuant to, such Prospectus and any amendment or supplement thereto. 
 (h) Prior to
any public offering of Registrable Securities or Exchange Notes (and related guarantees) or any delivery of a Prospectus contained in the Exchange Offer Registration Statement by any Participating Broker-Dealer who seeks to sell Exchange Notes (and
related guarantees) during the Applicable Period, use its best efforts to register or qualify, and to cooperate with the selling Holders of Registrable Securities or each such Participating Broker-Dealer, as the case may be, the managing underwriter
or underwriters, if any, and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws
of such jurisdictions within the United States as any selling Holder, Participating Broker-Dealer, or the managing underwriter or underwriters reasonably request in writing; provided, however, that where Exchange Notes (and related
guarantees) held by Participating Broker-Dealers or Registrable Securities are offered other than through an underwritten offering, the Issuers agree to cause their counsel to perform Blue Sky investigations and file registrations and qualifications
required to be filed pursuant to this Section 5(h), keep each such registration or qualification (or exemption therefrom) effective during the period such Registration Statement is required to be kept effective and do any and all other acts or
things reasonably necessary or advisable to enable the disposition in such jurisdictions of the Exchange Notes (and related guarantees) held by Participating Broker-Dealers or the Registrable Securities covered by the applicable Registration
Statement; provided, however, that none of the Issuers shall be required to (A) qualify generally to do business in any jurisdiction where it is not then so qualified, (B) take any action that would subject it to general
service of process in any such jurisdiction where it is not then so subject or (C) subject itself to taxation in excess of a nominal dollar amount in any such jurisdiction where it is not then so subject. 

  
 - 14 -

 (i) If a Shelf Registration Statement is filed pursuant to Section 3 hereof, cooperate
with the selling Holders of Registrable Securities and the managing underwriter or underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Notes to be sold, which certificates shall not bear
any restrictive legends and shall be in a form eligible for deposit with The Depository Trust Company; and enable such Registrable Notes to be in such denominations permitted by the Indenture and registered in such names as the managing underwriter
or underwriters, if any, or Holders may request; provided, however, that if the Registrable Notes are also transferable by delivery through means other than on the records of The Depository Trust Company or another clearing agency, in which case
such preparation and delivery of certificates representing the Registrable Notes shall not be required. 
 (j) If (1) a
Shelf Registration Statement is filed pursuant to Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by
any Participating Broker-Dealer who seeks to sell Exchange Notes (and related guarantees) during the Applicable Period, upon the occurrence of any event contemplated by paragraph 5(c)(v) or 5(c)(vi) hereof, as promptly as practicable prepare and
(subject to Section 5(a) hereof) file with the SEC, at the sole expense of the Issuers, a supplement or post-effective amendment to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder or to the purchasers of the Exchange Notes (and related guarantees) to
whom such Prospectus will be delivered by a Participating Broker-Dealer, any such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading. 
 (k) Prior to the effective date of the
first Registration Statement relating to the Registrable Securities, (i) provide the Trustee with certificates for the Registrable Notes in a form eligible for deposit with The Depository Trust Company and (ii) provide a CUSIP number for
the Registrable Notes. 
 (l) In connection with any underwritten offering of Registrable Securities pursuant to a Shelf
Registration Statement, enter into an underwriting agreement which is customary in underwritten offerings of debt securities similar to the Securities in form and substance reasonably satisfactory to the Issuers and take all such other actions as
are reasonably requested by the managing underwriter or underwriters in order to expedite or facilitate the registration or the disposition of such Registrable Securities and, in such connection, (i) make such representations and warranties to,
and covenants with, the underwriters with respect to the business of the Issuers (including any acquired business, properties or entity, if applicable) and the Registration Statement, the Prospectus and the documents, if any, incorporated or deemed
to be incorporated by reference therein, in each case, as are customarily made by issuers to underwriters in underwritten offerings of debt securities similar to the Securities, and confirm the same in writing if and when requested in form and
substance reasonably satisfactory to the 

  
 - 15 -

 
Issuers; (ii) obtain the written opinions of counsel to the Issuers and written updates thereof in form, scope and substance reasonably satisfactory to the managing underwriter or
underwriters, addressed to the underwriters covering the matters customarily covered in opinions reasonably requested in underwritten offerings and such other matters as may be reasonably requested by the managing underwriter or underwriters;
(iii) obtain “cold comfort” letters and updates thereof in form, scope and substance reasonably satisfactory to the managing underwriter or underwriters from the independent certified public accountants of the Issuers (and, if
necessary, any other independent certified public accountants of the Issuers, or of any business or entity acquired by the Issuers for which financial statements and financial data are, or are required to be, included or incorporated by reference in
the Registration Statement), addressed to each of the underwriters, such letters to be in customary form and covering matters of the type customarily covered in “cold comfort” letters in connection with underwritten offerings of debt
securities similar to the Securities and such other matters as are reasonably requested by the managing underwriter or underwriters as permitted by the Statement on Auditing Standards No. 72, as amended by the Statement on Auditing Standards
No. 76; and (iv) if an underwriting agreement is entered into, the same shall contain indemnification provisions and procedures no less favorable to the sellers and underwriters, if any, than those set forth in Section 7 hereof (or
such other provisions and procedures acceptable to Holders of a majority in aggregate principal amount of Registrable Securities covered by such Registration Statement and the managing underwriter or underwriters or agents, if any). The above shall
be done at each closing under such underwriting agreement, or as and to the extent required thereunder. 
 (m) If (1) a
Shelf Registration Statement is filed pursuant to Section 3 hereof, or (2) a Prospectus contained in the Exchange Offer Registration Statement filed pursuant to Section 2 hereof is required to be delivered under the Securities Act by
any Participating Broker-Dealer who seeks to sell Exchange Notes (and related guarantees) during the Applicable Period, make available for inspection by any selling Holder of such Registrable Securities being sold, or each such Participating
Broker-Dealer, as the case may be, any underwriter participating in any such disposition of Registrable Securities, if any, and any attorney, accountant or other agent retained by any such selling Holder or each such Participating Broker-Dealer, as
the case may be, or underwriter (collectively, the “Inspectors”), at the offices where normally kept, during reasonable business hours, all financial and other records, pertinent corporate documents and instruments of the Issuers
and subsidiaries of the Issuers (collectively, the “Records”) as shall be reasonably necessary to enable them to exercise any applicable due diligence responsibilities, and cause the officers, directors and employees of the Issuers
and any of their respective subsidiaries to supply all information reasonably requested by any such Inspector in connection with such Registration Statement and Prospectus. Each Inspector shall agree in writing that it will keep the Records
confidential and that it will not disclose any of the Records that any of the Issuers determines, in good faith, to be confidential and notifies the Inspectors in writing are confidential unless (i) the disclosure of such Records is necessary
to avoid or correct a material misstatement or material omission in such Registration Statement or Prospectus, (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, or
(iii) the information in such Records has been made generally available to the public; provided, however, that prior notice shall be provided as soon as practicable to any of the Issuers of the potential disclosure of any
information by such Inspector pursuant to clauses (i) or (ii) of this sentence to permit the Issuers to obtain a protective order (or waive the provisions of this paragraph (m)) and that such Inspector shall take such actions as are
reasonably necessary to 

  
 - 16 -

 
protect the confidentiality of such information (if practicable) to the extent such action is otherwise not inconsistent with, an impairment of or in derogation of the rights and interests of the
Holder or any Inspector. If, in the course of performing due diligence, any Inspector becomes aware of material non public information about the Company and its subsidiaries, the Inspector will not, and will take all steps reasonably necessary to
ensure that anyone to whom the Inspector discloses the material non public information will not, trade in any securities of the Company until the information becomes public (whether through inclusion in the Shelf Registration Statement or Exchange
Offer Registration Statement or otherwise) or the information ceases to be material. 
 (n) Provide an indenture trustee for the
Registrable Securities or the Exchange Notes (and related guarantees), as the case may be, and cause the Indenture or the trust indenture provided for in Section 2(a) hereof, as the case may be, to be qualified under the TIA not later than the
effective date of the first Registration Statement relating to the Registrable Securities; and in connection therewith, cooperate with the trustee under any such indenture and the Holders of the Registrable Securities, to effect such changes to such
indenture as may be required for such indenture to be so qualified in accordance with the terms of the TIA; and execute, and use their best efforts to cause such trustee to execute, all documents as may be required to effect such changes, and all
other forms and documents required to be filed with the SEC to enable such indenture to be so qualified in a timely manner. 

(o) Comply in all material respects with all applicable rules and regulations of the SEC and make generally available to its
securityholders with regard to any applicable Registration Statement, a consolidated earnings statement satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the
Securities Act) no later than 45 days after the end of any fiscal quarter (or 90 days after the end of any 12-month period if such period is a fiscal year) (i) commencing at the end of any fiscal quarter in which Registrable Securities are sold
to underwriters in a firm commitment or best efforts underwritten offering and (ii) if not sold to underwriters in such an offering, commencing on the first day of the first fiscal quarter of the Company after the effective date of a
Registration Statement, which statements shall cover said 12-month periods. 
 (p) Upon consummation of the Exchange Offer or a
Private Exchange, obtain an opinion of counsel to the Company, in a form customary for underwritten transactions, addressed to the Trustee for the benefit of all Holders of Registrable Securities participating in the Exchange Offer or the Private
Exchange, as the case may be, that the Exchange Notes (and related guarantees) or Private Exchange Notes (and related guarantees), as the case may be, and the related indenture constitute legal, valid and binding obligations of the Company,
enforceable against it in accordance with their respective terms, subject to customary exceptions and qualifications. 
 (q) If
the Exchange Offer or a Private Exchange is to be consummated, upon delivery of the Registrable Securities by Holders to the Company (or to such other Person as directed by the Issuers) to be exchanged for Exchange Notes (and related guarantees) or
Private Exchange Notes (and related guarantees), as the case may be, the Issuers shall mark, or cause to be marked, on such Registrable Notes that such Registrable Notes are being canceled in exchange for Exchange Notes (and related guarantees) or
Private Exchange Notes (and related guarantees), as the case may be; in no event shall such Registrable Notes be marked as paid or otherwise satisfied. 

  
 - 17 -

 (r) Cooperate with each seller of Registrable Securities covered by any Registration
Statement and each underwriter, if any, participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the Financial Industry Regulatory Authority
(“FINRA”). 
 (s) Use its best efforts to take all other steps reasonably necessary to effect the registration
of the Exchange Notes (and related guarantees) and/or Registrable Securities covered by a Registration Statement contemplated hereby. 
 The Issuers may require each seller of Registrable Securities as to which any registration is being effected to furnish to the Issuers such information regarding such seller and the distribution of such
Registrable Securities as the Issuers may, from time to time, reasonably request. The Issuers may exclude from such registration the Registrable Securities of any seller so long as such seller fails to furnish such information within a reasonable
time after receiving such request. Each seller as to which any Shelf Registration is being effected agrees to furnish promptly to the Issuers all information required to be disclosed in order to make the information previously furnished to the
Issuers by such seller not materially misleading. 
 If any Registration Statement refers to any Holder by name or otherwise as
the holder of any securities of the Company, then such Holder shall have the right to require (i) the insertion therein of language, in form and substance reasonably satisfactory to such Holder, to the effect that the holding by such Holder of
such securities is not to be construed as a recommendation by such Holder of the investment quality of the securities covered thereby and that such holding does not imply that such Holder will assist in meeting any future financial requirements of
the Company, or (ii) in the event that such reference to such Holder by name or otherwise is not required by the Securities Act or any similar federal statute then in force, the deletion of the reference to such Holder in any amendment or
supplement to the Registration Statement filed or prepared subsequent to the time that such reference ceases to be required. 

Each Holder of Registrable Securities and each Participating Broker-Dealer agrees by its acquisition of such Registrable Securities or of
Exchange Notes (and related guarantees) to be sold by such Participating Broker-Dealer, as the case may be, that, upon actual receipt of any notice from the Company of the happening of any event of the kind described in Section 5(c)(ii),
5(c)(iv), 5(c)(v), or 5(c)(vi) hereof, such Holder will forthwith discontinue disposition of such Registrable Securities covered by such Registration Statement or Prospectus or Exchange Notes (and related guarantees) to be sold by such Holder or
Participating Broker-Dealer, as the case may be, until such Holder’s or Participating Broker-Dealer’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 5(j) hereof, or until it is advised in
writing (an “Advice”) by the Issuers that the use of the applicable Prospectus may be resumed, and has received copies of any amendments or supplements thereto. In the event that the Issuers shall give any such notice, the
Applicable Period shall be extended by the number of days from and including the date of the giving of each such notice to and including the date when each seller of Registrable Securities covered by such Registration Statement or Exchange Notes
(and related guarantees) to be sold by such Participating Broker-Dealer, as the case may be, shall have received (x) the copies of the supplemented or amended Prospectus contemplated by Section 5(j) hereof or (y) an Advice with
respect to said notice. 

  
 - 18 -

 6. Registration Expenses 

All fees and expenses incident to the performance of or compliance with this Agreement by the Issuers (other than any underwriting
discounts or commissions) shall be borne by the Company whether or not the Exchange Offer Registration Statement or any Shelf Registration Statement is filed or becomes effective or the Exchange Offer is consummated, including, without limitation,
(i) all registration and filing fees (including, without limitation, (A) fees with respect to filings required to be made with FINRA in connection with an underwritten offering and (B) reasonable fees and expenses of compliance with
state securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel in connection with Blue Sky qualifications of the Registrable Securities or Exchange Notes (and related guarantees) and determination of the
eligibility of the Registrable Securities or Exchange Notes (and related guarantees) for investment under the laws of the jurisdictions (x) where the holders of Registrable Securities are located, in the case of the Exchange Notes (and related
guarantees), or (y) as provided in Section 5(h) hereof, in the case of Registrable Securities or Exchange Notes (and related guarantees) to be sold by a Participating Broker-Dealer during the Applicable Period)), (ii) printing
expenses, including, without limitation, expenses of printing certificates for Registrable Notes or Exchange Notes in a form eligible for deposit with The Depository Trust Company and of printing prospectuses if the printing of prospectuses is
requested by the managing underwriter or underwriters, if any, by the Holders of a majority in aggregate principal amount of the Registrable Securities included in any Registration Statement or in respect of Registrable Securities or Exchange Notes
(and related guarantees) to be sold by any Participating Broker-Dealer during the Applicable Period, as the case may be, (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Issuers and
reasonable fees and disbursements of one firm of special counsel for the sellers of Registrable Securities and any Participating Broker-Dealers, (v) fees and disbursements of all independent certified public accountants referred to in
Section 5(l)(iii) hereof (including, without limitation, the expenses of any special audit and “cold comfort” letters required by or incident to such performance), (vi) Securities Act liability insurance, if the Issuers desire
such insurance, (vii) fees and expenses of all other Persons retained by the Issuers, (viii) internal expenses of the Issuers (including, without limitation, all salaries and expenses of officers and employees of the Issuers performing
legal or accounting duties), (ix) the expense of any annual audit, (x) any fees and expenses incurred in connection with the listing of the securities to be registered on any securities exchange, and the obtaining of a rating of the
securities, in each case, if applicable, and (xi) the expenses relating to printing, word processing and distributing all Registration Statements, underwriting agreements, indentures and any other documents necessary in order to comply with
this Agreement. 
 7. Indemnification 
 (a) Each of the Issuers agree, jointly and severally, to indemnify and hold harmless each Holder of Registrable Securities and each Participating Broker-Dealer selling Exchange Notes (and related
guarantees) during the Applicable Period, the affiliates, officers, directors, representatives, employees and agents of each such Person, and each Person, if any, 

  
 - 19 -

 
who controls any such Person within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (each, a “Participant”), from and against
any and all losses, claims, damages, judgments, liabilities and expenses (including, without limitation, the reasonable legal fees and other expenses actually incurred in connection with any suit, action or proceeding or any claim asserted) caused
by, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if any of the Issuers shall have made
any amendments or supplements thereto) or any preliminary prospectus, or caused by, arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein, in the case of the Prospectus in light of the circumstances under which they were made, not misleading, except insofar as such losses, claims, damages or liabilities are caused by any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with information relating to any Participant, any underwriter, or the manner in which securities are to be distributed, furnished to the Issuers in writing by such Participant or an
underwriter expressly for use therein. 
 (b) Each Participant agrees, severally and not jointly, to indemnify and hold harmless
the Issuers, their respective affiliates, officers, directors, representatives, employees and agents and each Person who controls the Issuers within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the
same extent (but on a several, and not joint, basis) as the foregoing indemnity from the Issuers to each Participant, but only with reference to information relating to such Participant or the manner in which securities are to be distributed by such
Participant or someone acting on such Participant’s behalf, furnished to the Issuers in writing by such Participant expressly for use in any Registration Statement or Prospectus, any amendment or supplement thereto, or any preliminary
prospectus. The liability of any Participant under this paragraph shall in no event exceed the proceeds received by such Participant from sales of Registrable Securities or Exchange Notes (and related guarantees) giving rise to such obligations.

 (c) If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be
brought or asserted against any Person in respect of which indemnity may be sought pursuant to either of the two preceding paragraphs, such Person (the “Indemnified Person”) shall promptly notify the Persons against whom such
indemnity may be sought (the “Indemnifying Persons”) in writing, and the Indemnifying Persons, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the
Indemnified Person and any others the Indemnifying Persons may reasonably designate (which may include the Indemnifying Persons, unless representation of the Indemnifying Persons by the same counsel would be inappropriate due to actual or potential
differing interests between them) in such proceeding and shall pay the fees and expenses actually incurred by such counsel related to such proceeding; provided, however, that the failure to so notify the Indemnifying Persons
(i) will not relieve them from any liability under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by an Indemnifying Person of substantial rights and defenses and (ii) will not, in any
event, relieve any Indemnifying Person from any obligations to any Indemnified Person other than the indemnification obligation provided in paragraphs (a) and (b) above. In any such proceeding, any Indemnified Person shall have the right
to retain its own counsel, but the fees and expenses of such counsel shall be at the 

  
 - 20 -

 
expense of such Indemnified Person unless (i) the Indemnifying Persons and the Indemnified Person shall have mutually agreed to the contrary, (ii) the Indemnifying Persons shall have
failed within a reasonable period of time to retain counsel reasonably satisfactory to the Indemnified Person or (iii) the named parties in any such proceeding (including any impleaded parties) include both any Indemnifying Person and the
Indemnified Person or any affiliate thereof and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that, unless there exists a conflict among the
Indemnified Persons, the Indemnifying Persons shall not, in connection with such proceeding or separate but substantially similar related proceeding in the same jurisdiction arising out of the same general allegations, be liable for the fees and
expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed promptly as they are incurred. Any such separate firm for the Participants against whom a
suit, action, proceeding, claim or demand is brought or asserted and control Persons of such Participants shall be designated in writing by Participants who sold a majority in interest of Registrable Securities and Exchange Notes (and related
guarantees) sold by all such Participants, and any such separate firm for the Issuers, their affiliates, officers, directors, representatives, employees and agents and such control Persons of the Issuers shall be designated in writing by the
Issuers. 
 The Indemnifying Persons shall not be liable for any settlement of any proceeding effected without their prior
written consent, but if settled with such consent or if there be a final non-appealable judgment for the plaintiff for which any Indemnified Persons are entitled to indemnification pursuant to this Agreement, each of the Indemnifying Persons agrees
to indemnify and hold harmless each Indemnified Person from and against any loss or liability by reason of such settlement or judgment. No Indemnifying Person shall, without the prior written consent of the Indemnified Persons, effect any settlement
or compromise of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party, or indemnity could have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an
unconditional written release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (B) does not include any
statement as to an admission of fault, culpability or failure to act by or on behalf of such Indemnified Person. 
 (d) If the
indemnification provided for in the first and second paragraphs of this Section 7 is for any reason unavailable to, or insufficient to hold harmless, an Indemnified Person in respect of any losses, claims, damages or liabilities referred to
therein, then each Indemnifying Person under such paragraphs, in lieu of indemnifying such Indemnified Person thereunder and in order to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified
Person as a result of such losses, claims, damages or liabilities in such proportion as is appropriate to reflect (i) the relative benefits received by the Indemnifying Person or Persons on the one hand and the Indemnified Person or Persons on
the other from the applicable offering of Registrable or Exchanged Notes or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, not only such relative benefits but also the relative fault of the
Indemnifying Person or Persons on the one hand and the Indemnified Person or Persons on the other in connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or
actions in respect thereof) as well as any other relevant equitable considerations. The relative 

  
 - 21 -

 
fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or such Participant or such other Indemnified Person, as the case may be, on the other, the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission, and any other equitable considerations appropriate in the circumstances. 

(e) The parties agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by
pro rata allocation (even if the Participants were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages, judgments, liabilities and expenses referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations
set forth above, any reasonable legal or other expenses actually incurred by such Indemnified Person in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 7, in no event shall a
Participant be required to contribute any amount in excess of the amount by which proceeds received by such Participant from sales of Registrable Securities or Exchange Notes (and related guarantees), as the case may be, exceeds the amount of any
damages that such Participant has otherwise been required to pay or has paid by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of a fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 
 (f) Any losses, claims, damages, liabilities or expenses for which an indemnified party is entitled to indemnification or contribution under this Section 7 shall be paid by the Indemnifying Person to
the Indemnified Person as such losses, claims, damages, liabilities or expenses are incurred. The indemnity and contribution agreements contained in this Section 7 and the representations and warranties of the Company set forth in this
Agreement shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of any Holder or any person who controls a Holder, or by the Company, its directors, officers, employees or agents or any
person controlling any of the Issuers, and (ii) any termination of this Agreement. 
 (g) The indemnity and contribution
agreements contained in this Section 7 will be in addition to any liability which the Indemnifying Persons may otherwise have to the Indemnified Persons referred to above. 

8. Rules 144 and 144A 
 Each of the Issuers covenants and agrees that it will file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder
in a timely manner in accordance with the requirements of the Securities Act and the Exchange Act and, if at any time such Issuer is not required to file such reports, such Issuer will, upon the request of any Holder or beneficial owner of
Registrable Securities, make available such information as is necessary to permit sales pursuant to Rule 144A under the Securities Act. The Company further covenants and agrees, for so long as any Registrable

  
 - 22 -

 
Securities remain outstanding, that it will take such further action as any Holder of Registrable Securities may reasonably request, all to the extent required from time to time to enable such
holder to sell Registrable Securities without registration under the Securities Act within the limitations of the exemptions provided by (a) Rule 144 and Rule 144A under the Securities Act, as such Rules may be amended from time to time, or
(b) any similar rule or regulation hereafter adopted by the SEC. 
 9. Underwritten Registrations 

If any of the Registrable Securities covered by any Shelf Registration Statement are to be sold in an underwritten offering, the
investment banker or investment bankers and manager or managers that will manage the offering will be selected by the Holders of a majority in aggregate principal amount of such Registrable Securities included in such offering and shall be
reasonably acceptable to the Issuers. 
 No Holder of Registrable Securities may participate in any underwritten registration
hereunder unless such Holder (a) agrees to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and
executes in a timely manner all questionnaires, powers of attorney, indemnities, underwriting agreements and other customary documents required by the Company or the underwriter in connection with such underwriting arrangements. 

10. Miscellaneous 
 (a) No Inconsistent Agreements. The Issuers have not, as of the date hereof, and the Issuers shall not, after the date of this Agreement, enter into any agreement with respect to any of their
securities that is inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do not in any way conflict with and are
not inconsistent with the rights granted to the holders of the Issuers’ other issued and outstanding securities under any such agreements. The Issuers will not enter into any agreement with respect to any of its securities which will grant to
any Person piggyback registration rights with respect to any Registration Statement; provided, however that the Company may enter into an agreement in connection with the issuance of Additional Notes which will grant the holders of the Additional
Notes the right to have them included in a Registration Statement. 
 (b) Adjustments Affecting Registrable Securities.
The Issuers shall not, directly or indirectly, take any action with respect to the Registrable Securities as a class that would adversely affect the ability of the Holders of Registrable Securities to include such Registrable Securities in a
registration undertaken pursuant to this Agreement. 
 (c) Amendments and Waivers. The provisions of this Agreement may
not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, otherwise than with the prior written consent of (I) the Company and (II)(A) the Holders of not less than a majority in
aggregate principal amount of the then outstanding Registrable Securities and (B) if the amendment, modification, supplement, waiver 

  
 - 23 -

 
or consent would adversely affect the Participating Broker-Dealers, the Participating Broker-Dealers holding not less than a majority in aggregate principal amount of the Exchange Notes (and
related guarantees) held by all Participating Broker-Dealers; provided, however, that Section 7 and this Section 10(c) may not be amended, modified or supplemented without the prior written consent of each Holder and each
Participating Broker-Dealer (including any person who was a Holder or Participating Broker-Dealer of Registrable Securities or Exchange Notes (and related guarantees), as the case may be, disposed of pursuant to any Registration Statement) affected
by any such amendment, modification or supplement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders of Registrable Securities whose
securities are being sold pursuant to a Registration Statement and that does not directly or indirectly affect, impair, limit or compromise the rights of other Holders of Registrable Securities may be given by Holders of at least a majority in
aggregate principal amount of the Registrable Securities being sold pursuant to such Registration Statement. 
 (d)
Notices. All notices and other communications (including, without limitation, any notices or other communications to the Trustee) provided for or permitted hereunder shall be made in writing by hand-delivery, registered first-class mail,
next-day air courier or facsimile: 
 (i) if to a Holder of the Registrable Securities or any Participating
Broker-Dealer, at the most current address of such Holder or Participating Broker-Dealer, as the case may be, set forth on the records of the registrar under the Indenture, with a copy in like manner to the Representatives as follows: 

Citigroup Global Markets Inc. 
 388 Greenwich Street 
 New York, NY 10179 

Attention: General Counsel 
 Fax No.: (212) 816-7912 
 J.P. Morgan Securities LLC 

383 Madison Avenue, 27th Floor 
 New York, New York 10179 
 Attention: Ken Lang 

Fax No.: (212) 270-1063 
 UBS Securities LLC 
 677 Washington Blvd. 

Stamford, Connecticut 06901 
 Attention: High Yield Syndicate Department 
 Fax no.: (203) 719-3667

  
 - 24 -

 BMO Capital Markets Corp. 

3 Times Square, 28th Floor 
 New York, New York 10036 
 Attention: Maya Patel 

Fax no.: (212) 702-1885 
 Deutsche Bank Securities Inc. 
 60 Wall Street 

New York, New York 10005 
 Attention: Leveraged Debt Capital Markets, 2nd Floor 
 Fax no.: (212) 797-4877 

with a copy to: 
 Attention: General Counsel, 36th Floor 
 Fax no.: (212) 797-4561 

Merrill Lynch, Pierce, Fenner & Smith Incorporated 
 One Bryant Park 
 New York, New York 10036 

Attention: High Yield Legal 
 Fax no.: (917) 267-7085 
 and with a copy to: 

Willkie Farr & Gallagher LLP 
 787 Seventh Avenue 
 New York, New York 10019 

Attention: David K. Boston, Esq. 
 (ii) if to the Company, at the address as follows: 
 700 N.W.
107th Avenue 

Miami, Florida 33172 
 Attention: General Counsel, Mark Sustana 
 with a copy to: 

K&L Gates LLP 
 599 Lexington Avenue 
 New York, New York 10022 

Attention: David W. Bernstein, Esq. 
 (iii) if to the Representatives, at the address specified in Section 10(d)(i). 

  
 - 25 -

 All such notices and communications shall be deemed to have been duly given: when delivered
by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; one Business Day after being timely delivered to a next-day air courier; and when receipt is acknowledged by the addressee, if sent
by facsimile. 
 Copies of all such notices, demands or other communications shall be concurrently delivered by the Person
giving the same to the Trustee under an indenture at the address and in the manner specified in the indenture. 
 (e)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties hereto, the Holders and the Participating Broker-Dealers. 

(f) Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original (including facsimile signatures) and all of which taken together shall constitute one and the same agreement. 
 (g) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 

(h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, AS APPLIED TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THAT WOULD APPLY THE LAW OF ANY OTHER JURISDICTION. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. 

(i) Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto
shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

(j) Securities Held by the Issuers or their Affiliates. Whenever the consent or approval of Holders of a specified percentage of
Registrable Securities is required hereunder, Registrable Securities held by the Issuers or their respective affiliates (as such term is defined in Rule 405 under the Securities Act) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage. 

  
 - 26 -

 (k) Third-Party Beneficiaries. Holders of Registrable Securities and Participating
Broker-Dealers are intended third-party beneficiaries of this Agreement, and this Agreement may be enforced by such Persons. 

(l) Entire Agreement. This Agreement, together with the Purchase Agreement and the Indenture, is intended by the parties as a
final and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein and any and all prior oral or written agreements, representations, or warranties, contracts,
understandings, correspondence, conversations and memoranda between the Holders on the one hand and the Issuers on the other, or between or among any agents, representatives, parents, subsidiaries, affiliates, predecessors in interest or successors
in interest with respect to the subject matter hereof and thereof are merged herein and replaced hereby. 
 [Signature page
follows] 

  
 - 27 -

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

			
	LENNAR CORPORATION
		
	By:	 	/s/ Bruce Gross
	Name:	 	Bruce Gross
	Title:	 	Vice President and Chief Financial Officer
	
	GUARANTORS
	
	Authorized signatory for each of the Guarantors listed on Schedule I hereto
		
	By:	 	/s/ Mark Sustana
	Name:	 	Mark Sustana
	Title:	 	Secretary

 Signature Page to Registration Rights Agreement 

 The foregoing Agreement is hereby confirmed and accepted as of the date first above written. 

CITIGROUP GLOBAL MARKETS INC. 
 J.P. MORGAN
SECURITIES LLC 
 UBS SECURITIES LLC 

BMO CAPITAL MARKETS CORP. 
 DEUTSCHE BANK
SECURITIES INC. 
 MERRILL LYNCH, PIERCE, FENNER & SMITH 
                                   
          INCORPORATED 
 for themselves and on behalf of the several Initial
Purchasers 
  

									
	By:	 	CITIGROUP GLOBAL MARKETS INC.	 		 		 	
					
	By:	 	/s/ Brian D. Bednarski	 		 		 	
		 	Name: Brian D. Bednarski	 		 		 	
		 	Title: Managing Director	 		 		 	
					
	By:	 	J.P. MORGAN SECURITIES LLC	 		 		 	
					
	By:	 	/s/ Meghann N. Dotson	 		 		 	
		 	Name: Meghann N. Dotson	 		 		 	
		 	Title: Vice President	 		 		 	
					
	By:	 	UBS SECURITIES LLC	 		 		 	
					
	By:	 	/s/ Ryan Vetsch	 		 	By:	 	/s/ Kevin T. Pluff
		 	Name: Ryan Vetsch	 		 		 	Name: Kevin T. Pluff
		 	Title: Director	 		 		 	Title: Leveraged Capital Markets Executive Director
					
	By:	 	BMO CAPITAL MARKETS CORP.	 		 		 	
					
	By:	 	/s/ Sumit Sengupta	 		 		 	
		 	Name: Sumit Sengupta	 		 		 	
		 	Title: Managing Director	 		 		 	

 Signature Page to Registration Rights Agreement 

									
	By:	 	DEUTSCHE BANK SECURITIES INC.	 		 		 	
					
	By:	 	/s/ Christopher Blum	 		 	By:	 	/s/ Steve Cunningham
		 	Name: Christopher Blum	 		 		 	Name: Steve Cunningham
		 	Title: Managing Director	 		 		 	Title: MD
					
	By:	 	MERRILL LYNCH, PIERCE, FENNER & SMITH
                                INCORPORATED	 		 		 	
					
	By:	 	/s/ James Scott	 		 		 	
		 	Name: James Scott	 		 		 	
		 	Title: Managing Director	 		 		 	

 Signature Page to Registration Rights Agreement 

 SCHEDULE I 
 GUARANTORS 
 308 Furman, Ltd. 

360 Developers, LLC 
 Ann Arundel Farms, Ltd.

 Aquaterra Utilities, Inc. 
 Asbury
Woods L.L.C. 
 Astoria Options, LLC 

Autumn Creek Development, Ltd. 
 Aylon, LLC

 Bainebridge 249, LLC 
 Bay Colony
Expansion 369, Ltd. 
 Bay River Colony Development, Ltd. 
 BB Investment Holdings, LLC 
 BCI Properties, LLC 

Bellagio Lennar, LLC 
 Belle Meade LEN Holdings,
LLC 
 Belle Meade Partners, LLC 
 BPH
I, LLC 
 Bramalea California, Inc. 

Bressi Gardenlane, LLC 
 Builders LP, Inc.

 Cambria L.L.C. 
 Cary Woods, LLC

 Casa Marina Development, LLC 

Caswell Acquisition Group, LLC 
 Cedar Lakes II,
LLC 
 Chancellor Place at Hamilton, LLC 

Cherrytree II LLC 
 CL Ventures, LLC 

Colonial Heritage LLC 
 Concord Station, LLP

 Coto de Caza, Ltd., Limited Partnership 
 Coventry L.L.C. 
 CPFE, LLC 
 CP Red Oak Management, LLC 
 CP Red Oak Partners, Ltd. 

Creekside Crossing, L.L.C. 
 Danville Tassajara
Partners, LLC 
 Darcy-Joliet, LLC 
 DBJ
Holdings, LLC 
 DTC Holdings of Florida, LLC 
 Estates Seven, LLC 
 Evergreen Village LLC 

 EV, LLC 
 F&R Florida Homes, LLC 
 F&R QVI Home Investments USA, LLC 

FLORDADE LLC 
 Fox-Maple Associates, LLC

 Friendswood Development Company, LLC 

Garco Investments, LLC 
 Greentree Holdings, LLC

 Greystone Construction, Inc. 

Greystone Homes of Nevada, Inc. 
 Greystone
Homes, Inc. 
 Greystone Nevada, LLC 

Greywall Club L.L.C. 
 Harveston, LLC 

Haverford Venture L.L.C. 
 Haverton L.L.C.

 HCC Investors, LLC 
 Heathcote
Commons LLC 
 Heritage of Auburn Hills, L.L.C. 
 Hewitts Landing Trustee, LLC 
 Home Buyer’s Advantage Realty, Inc. 

Homecraft Corporation 
 HTC Golf Club, LLC

 Inactive Companies, LLC 

Independence L.L.C. 
 Isles at Bayshore Club, LLC

 Lakelands at Easton, L.L.C. 

Lakeside Farm, LLC 
 Largo Park Multifamily
Developer, LLC 
 LCD Asante, LLC 

Legends Club, LLC 
 Legends Golf Club, LLC

 LEN—Belle Meade, LLC 
 LEN
– CG South, LLC 
 LEN—Palm Vista, LLC 
 LEN Paradise Cable, LLC 
 LEN Paradise Operating, LLC 

Len Paradise, LLC 
 Lencraft, LLC 

LENH I, LLC 
 Len-Hawks Point, LLC 

Lennar—BVHP, LLC 
 Lennar Aircraft I, LLC

 Lennar Arizona Construction, Inc. 

Lennar Arizona, Inc. 
 Lennar Associates
Management Holding Company 

 Lennar Associates Management, LLC 
 Lennar Bridges, LLC 
 Lennar Buffington Colorado Crossing, L.P. 

Lennar Buffington Zachary Scott, L.P. 
 Lennar
Carolinas, LLC 
 Lennar Central Park, LLC 
 Lennar Central Region Sweep, Inc. 
 Lennar Central Texas, L.P. 

Lennar Chicago, Inc. 
 Lennar Cobra, LLC

 Lennar Colorado, LLC 
 Lennar
Colorado Minerals LLC 
 Lennar Communities Development, Inc. 
 Lennar Communities Nevada, LLC 
 Lennar Communities of Chicago L.L.C. 

Lennar Communities, Inc. 
 Lennar Construction,
Inc. 
 Lennar Coto Holdings, L.L.C. 

Lennar Developers, Inc. 
 Lennar Distressed
Investments, LLC 
 Lennar Family of Builders GP, Inc. 
 Lennar Family of Builders Limited Partnership 
 Lennar Fresno, Inc. 

Lennar Gardens, LLC 
 Lennar Georgia, Inc.

 Lennar Greer Ranch Venture, LLC 

Lennar Heritage Fields, LLC 
 Lennar Hingham
Holdings, LLC 
 Lennar Hingham JV, LLC 

Lennar Homes Holding, LLC 
 Lennar Homes of
Arizona, Inc. 
 Lennar Homes of California, Inc. 
 Lennar Homes of Texas Land and Construction, Ltd. 
 Lennar Homes of Texas Sales and Marketing, Ltd.

 Lennar Homes, LLC 
 Lennar Illinois
Trading Company, LLC 
 Lennar Imperial Holdings Limited Partnership 
 Lennar International Holding, LLC 
 Lennar International, LLC 

Lennar Land Partners Sub II, Inc. 
 Lennar Land
Partners Sub, Inc. 
 Lennar Layton, LLC 

Lennar Long Beach Promenade Partners, LLC 

Lennar Lytle, LLC 
 Lennar Mare Island, LLC

 Lennar Marina A Funding, LLC 

 Lennar Massachusetts Properties, Inc. 
 Lennar Middletown, LLC 
 Lennar Multifamily Investors, LLC 

Lennar New Jersey Properties, Inc. 
 Lennar New
York, LLC 
 Lennar Northeast Properties LLC 
 Lennar Northeast Properties, Inc. 
 Lennar Northwest, Inc. 

Lennar Pacific Properties Management, Inc. 

Lennar Pacific Properties, Inc. 
 Lennar Pacific,
Inc. 
 Lennar PI Acquisition, LLC 

Lennar PI Property Acquisition, LLC 
 Lennar PIS
Management Company, LLC 
 Lennar PNW, Inc. 
 Lennar Point, LLC 
 Lennar Port Imperial South, LLC 

Lennar Realty, Inc. 
 Lennar Renaissance, Inc.

 Lennar Reno, LLC 
 Lennar Riverside
West Urban Renewal Company, L.L.C. 
 Lennar Riverside West, LLC 
 Lennar Sacramento, Inc. 
 Lennar Sales Corp. 

Lennar San Jose Holdings, Inc. 

Lennar/Shadeland, LLC 
 Lennar Southland I, Inc.

 Lennar Southwest Holding Corp. 

Lennar Spencer’s Crossing, LLC 
 Lennar
Texas Holding Company 
 Lennar Trading Company, LP 
 Lennar Ventures, LLC 
 Lennar West Valley, LLC 

Lennar.com Inc. 
 Lennar/LNR Camino Palomar, LLC

 Lennar-Lantana Boatyard, Inc. 

LEN-Ryan 1, LLC 
 Len-Verandahs, LLP 

LFS Holding Company, LLC 
 LH Eastwind, LLC

 LH-EH Layton Lakes Estates, LLC 
 LHI
Renaissance, LLC 
 LMI-Contractors, LLC 

LMI-Jacksonville Investor, LLC 
 LMI-JC
Developer, LLC 
 LMI-JC, LLC 

 LMI-Naperville, LLC 
 LMI-South Kings Development, LLC 
 LMI-West Seattle, LLC 

LNC at Meadowbrook, LLC 
 LNC at Ravenna, LLC

 LNC Communities I, Inc. 
 LNC
Communities II, LLC 
 LNC Communities III, Inc. 
 LNC Communities IV, LLC 
 LNC Communities IX, LLC 

LNC Communities V, LLC 
 LNC Communities VI, LLC

 LNC Communities VII, LLC 
 LNC
Communities VIII, LLC 
 LNC Northeast Mortgage, Inc. 
 LNC Pennsylvania Realty, Inc. 
 Long Beach Development, LLC 

Lori Gardens Associates II, LLC 
 Lori Gardens
Associates III, LLC 
 Lori Gardens Associates, L.L.C. 
 Lorton Station, LLC 
 LW D’Andrea, LLC 

Madrona Ridge L.L.C. 
 Madrona Village L.L.C.

 Madrona Village Mews L.L.C. 

Majestic Woods, LLC 
 Marble Mountain Partners,
LLC 
 Mid-County Utilities, Inc. 

Mission Viejo 12S Venture, LP 
 Mission Viejo
Holdings, Inc. 
 Moffett Meadows Partners, LLC 
 NC Properties I, LLC 
 NC Properties II, LLC 

Northbridge L.L.C. 
 Northeastern Properties LP,
Inc. 
 OHC/Ascot Belle Meade, LLC 
 One
SR, L.P. 
 Palm Gardens At Doral Clubhouse, LLC 
 Palm Gardens at Doral, LLC 
 Palm Vista Preserve, LLC 

PD-Len Boca Raton, LLC 
 PD-Len Delray, LLC

 PG Properties Holding, LLC 
 Pioneer
Meadows Development, LLC 
 Pioneer Meadows Investments, LLC 
 POMAC, LLC 

 Prestonfield L.L.C. 
 Providence Lakes, LLP 
 PT Metro, LLC 
 Raintree Village II L.L.C. 
 Raintree Village, L.L.C. 

Renaissance Joint Venture 
 Reserve @ Pleasant
Grove II LLC 
 Reserve @ Pleasant Grove LLC 
 Reserve at River Park, LLC 
 Reserve at South Harrison, LLC 

Rivendell Joint Venture 
 Rivenhome Corporation

 RMV, LLC 
 Rutenberg Homes of Texas,
Inc. 
 Rutenberg Homes, Inc. (Florida) 

Rye Hill Company, LLC 
 S. Florida Construction
II, LLC 
 S. Florida Construction III, LLC 
 S. Florida Construction, LLC 
 San Lucia, LLC 

Santa Ana Transit Village, LLC 
 Savannah
Development, Ltd. 
 Savell Gulley Development, LLC 
 Scarsdale, LTD. 
 Schulz Ranch Developers, LLC 

Seminole/70th, LLC 
 Siena at Old Orchard, LLC

 South Development, LLC 
 Southbank
Holding, LLC 
 Spanish Springs Development, LLC 
 St. Charles Active Adult Community, LLC 
 Stoney Corporation 

Stoney Holdings, LLC 
 Stoneybrook Clubhouse,
Inc. 
 Stoneybrook Golf Club, Inc. 

Stoneybrook Joint Venture 
 Strategic Cable
Technologies, L.P. 
 Strategic Holdings, Inc. d/b/a Lennar Communications Ventures (LCV) 

Strategic Technologies, LLC 
 Summerfield Venture
L.L.C. 
 Summerwood, LLC 
 SunStreet
Energy Group, LLC 
 TCO QVI, LLC 

Temecula Valley, LLC 
 The Baywinds Land Trust

 The Bridges at Rancho Santa Fe Sales Company, Inc. 

 The Bridges Club at Rancho Santa Fe, Inc. 
 The LNC Northeast Group, Inc. 
 The Preserve at Coconut Creek, LLC 

Treviso Holding, LLC 
 Tustin Villas Partners,
LLC 
 Tustin Vistas Partners, LLC 

U.S. Home Corporation 
 U.S. Home of Arizona
Construction Co. 
 U.S. Home Realty, Inc. 
 U.S.H. Los Prados, Inc. 
 U.S.H. Realty, Inc. 

USH—Flag, LLC 
 USH (West Lake), Inc.

 USH Equity Corporation 
 USH LEE, LLC

 USH Woodbridge, Inc. 
 UST Lennar GP
PIS 10, LLC 
 UST Lennar GP PIS 7, LLC 

Valencia at Doral, LLC 
 Vineyard Point 2009, LLC

 WCP, LLC 
 West Chocolate Bayou
Development, LLC 
 West Lake Village, LLC 
 West Van Buren L.L.C. 
 Westchase, Inc. 
 Willowbrook Investors, LLC 
 Woodbridge Multifamily Developer I, LLC 

Woodbridge Multifamily Developer II, LLC 
 Wright
Farm, L.L.C.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]