Document:

ex10_1.htm

    

     

    Table of
Contents

    
      
        
          
            	 	 	
                     Page

                  
	
                    ARTICLE 1 DEFINED
      TERMS

                  	 
      	
                    1

                  
	
                    1.1.

                  	
                    AAA.

                  	
                    1

                  
	
                    1.2.

                  	
                    Acquiring
      Member

                  	
                    1

                  
	
                    1.3.

                  	
                    Acquisition
      Contract

                  	
                    1

                  
	
                    1.4.

                  	
                    Act.

                  	
                    1

                  
	
                    1.5.

                  	
                    1933 Act.

                  	
                    1

                  
	
                    1.6.

                  	
                    Additional Capital
      Contributions.

                  	
                    1

                  
	
                    1.7.

                  	
                    Adjusted Capital Account
      Deficit.

                  	
                    1

                  
	
                    1.8.

                  	
                    Affiliate.

                  	
                    1

                  
	
                    1.9.

                  	
                    Agreement.

                  	
                    2

                  
	
                    1.10.

                  	
                    Book Basis.

                  	
                    2

                  
	
                    1.11.

                  	
                    Budget.

                  	
                    2

                  
	
                    1.12.

                  	
                    Budget and Operating
      Plans.

                  	
                    2

                  
	
                    1.13.

                  	
                    Buyer.

                  	
                    2

                  
	
                    1.14.

                  	
                    Buy‐Sell
    Offer.

                  	
                    2

                  
	
                    1.15.

                  	
                    Capital
      Account.

                  	
                    2

                  
	
                    1.16.

                  	
                    Capital
      Contributions.

                  	
                    2

                  
	
                    1.17.

                  	
                    Cash Needs.

                  	
                    2

                  
	
                    1.18.

                  	
                    Certificate of
      Formation.

                  	
                    2

                  
	
                    1.19.

                  	
                    Change in
      Control.

                  	
                    2

                  
	
                    1.20.

                  	
                    Code.

                  	
                    3

                  
	
                    1.21.

                  	
                    Company.

                  	
                    3

                  
	
                    1.22.

                  	
                    Company
      Accountant

                  	
                    3

                  
	
                    1.23.

                  	
                    Company
    Loan.

                  	
                    4

                  
	
                    1.24.

                  	
                    Company Minimum
      Gain

                  	
                    4

                  
	
                    1.25.

                  	
                    Confidential
      Information.

                  	
                    4

                  
	
                    1.26.

                  	
                    Contributing
      Member.

                  	
                    4

                  
	
                    1.27.

                  	
                    Contributing Member's
      Representatives.

                  	
                    4

                  
	
                    1.28.

                  	
                    Default
    Loan.

                  	
                    4

                  
	
                    1.29.

                  	
                    Election.

                  	
                    4

                  
	
                    1.30.

                  	
                    Escrow
Fund.

                  	
                    4

                  
	
                    1.31.

                  	
                    Executive
      Committee.

                  	
                    4

                  
	
                    1.32.

                  	
                    Expenditures.

                  	
                    4

                  
	
                    1.33.

                  	
                    Failed
      Contribution.

                  	
                    4

                  
	
                    1.34.

                  	
                    Fair Market
      Value.

                  	
                    4

                  
	
                    1.35.

                  	
                    Final Sharing
      Ratio.

                  	
                    4

                  
	
                    1.36.

                  	
                    Formation
    Date.

                  	
                    5

                  
	
                    1.37.

                  	
                    Fund III

                  	
                    5

                  
	
                    1.38.

                  	
                    GAAP.

                  	
                    5

                  
	
                    1.39.

                  	
                    Indemnitee.

                  	
                    5

                  
	
                    1.40.

                  	
                    Initial Cash
      Contributions.

                  	
                    5

                  
	
                    1.41.

                  	
                    Interest.

                  	
                    5

                  
	
                    1.42.

                  	
                    IRR.

                  	
                    5

                  
	
                    1.43.

                  	
                    Investment
      Criteria

                  	
                    5

                  
	
                    1.44.

                  	
                    Investment
      Period

                  	
                    5

                  
	
                    1.45.

                  	
                    Lending
    Member

                  	
                    5

                  
	
                    1.46.

                  	
                    Liquidating
      Amount

                  	
                    5

                  
	
                    1.47.

                  	
                    Liquidator.

                  	
                    6

                  
	
                    1.48.

                  	
                    Loan Needs.

                  	
                    6

                  
	
                    1.49.

                  	
                    Lockout
    Period.

                  	
                    6

                  
	
                    1.50.

                  	
                    Loss.

                  	
                    6

                  
	
                    1.51.

                  	
                    Major
    Decision.

                  	
                    6

                  
	
                    1.52.

                  	
                    Managing
      Member.

                  	
                    6

                  
	
                    1.53.

                  	
                    Managing Member
      Indemnitees.

                  	
                    6

                  
	
                    1.54.

                  	
                    Maximum Contribution
      Amount.

                  	
                    7

                  
	
                    1.55.

                  	
                    Member.

                  	
                    7

                  
	
                    1.56.

                  	
                    Member Minimum
      Gain.

                  	
                    7

                  
	
                    1.57.

                  	
                    Member Nonrecourse
      Debt.

                  	
                    7

                  
	
                    1.58.

                  	
                    Member Nonrecourse
      Deductions.

                  	
                    7

                  
	
                    1.59.

                  	
                    Net Cash
    Flow.

                  	
                    7

                  
	
                    1.60.

                  	
                    Net Profits and Net
      Losses.

                  	
                    7

                  
	
                    1.61.

                  	
                    Non‐Contributing
      Member.

                  	
                    7

                  
	
                    1.62.

                  	
                    Non-Offering
      Member.

                  	
                    7

                  
	
                    1.63.

                  	
                    Nonrecourse
      Debt.

                  	
                    7

                  
	
                    1.64.

                  	
                    Nonrecourse
      Deductions.

                  	
                    7

                  
	
                    1.65.

                  	
                    Notices.

                  	
                    7

                  
	
                    1.66.

                  	
                    Offeree.

                  	
                    7

                  
	
                    1.67.

                  	
                    Offeree
    Value.

                  	
                    7

                  
	
                    1.68.

                  	
                    Offering
      Member.

                  	
                    7

                  
	
                    1.69.

                  	
                    Offeror.

                  	
                    7

                  
	
                    1.70.

                  	
                    Offeror
    Value.

                  	
                    8

                  
	
                    1.71.

                  	
                    Percentage
      Interest.

                  	
                    8

                  
	
                    1.72.

                  	
                    Permitted
      Investments.

                  	
                    8

                  
	
                    1.73.

                  	
                    Person.

                  	
                    8

                  
	
                    1.74.

                  	
                    Prime Rate.

                  	
                    8

                  
	
                    1.75.

                  	
                    Proceeding.

                  	
                    8

                  
	
                    1.76.

                  	
                    Profit.

                  	
                    8

                  
	
                    1.77.

                  	
                    Project
      Subsidiaries.

                  	
                    8

                  
	
                    1.78.

                  	
                    Properties.

                  	
                    9

                  
	
                    1.79.

                  	
                    Property Buy
      Offer.

                  	
                    9

                  
	
                    1.80.

                  	
                    Property Buy–Sell
      Event.

                  	
                    9

                  
	
                    1.81.

                  	
                    Property Buy-Sell
      Offer.

                  	
                    9

                  
	
                    1.82.

                  	
                    Property Management
      Agreement.

                  	
                    9

                  
	
                    1.83.

                  	
                    Property
      Manager.

                  	
                    9

                  
	
                    1.84.

                  	
                    Property Offer
      Election.

                  	
                    9

                  
	
                    1.85.

                  	
                    Property Purchase
      Price.

                  	
                    9

                  
	
                    1.86.

                  	
                    Property Sell
      Offer.

                  	
                    9

                  
	
                    1.87.

                  	
                    Prospective Property
      Acquisition

                  	
                    9

                  
	
                    1.88.

                  	
                    Purchase
    Date.

                  	
                    9

                  
	
                    1.89.

                  	
                    Purchase
    Event.

                  	
                    9

                  
	
                    1.90.

                  	
                    Purchase
      Interest.

                  	
                    9

                  
	
                    1.91.

                  	
                    Purchase
      Option.

                  	
                    9

                  
	
                    1.92.

                  	
                    Purchase
    Price.

                  	
                    9

                  
	
                    1.93.

                  	
                    Receipts.

                  	
                    10

                  
	
                    1.94.

                  	
                    Region.

                  	
                    10

                  
	
                    1.95.

                  	
                    Rejecting
      Member

                  	
                    10

                  
	
                    1.96.

                  	
                    Related
      Agreements.

                  	
                    10

                  
	
                    1.97.

                  	
                    Representative.

                  	
                    10

                  
	
                    1.98.

                  	
                    Seller.

                  	
                    10

                  
	
                    1.99.

                  	
                    Subject
      Property.

                  	
                    10

                  
	
                    1.100.

                  	
                    Tax Matters
      Member

                  	
                    10

                  
	
                    1.101.

                  	
                    Target
    Amount.

                  	
                    10

                  
	
                    1.102.

                  	
                    Thackeray
      Interest.

                  	
                    10

                  
	
                    1.103.

                  	
                    Thackeray.

                  	
                    11

                  
	
                    1.104.

                  	
                    Transfer.

                  	
                    11

                  
	
                    1.105.

                  	
                    Treasury
      Regulations

                  	
                    11

                  
	
                    1.106.

                  	
                    Other
Terms.

                  	
                    11

                  
	
                    ARTICLE 2
      ORGANIZATION

                  	 
      	
                    11

                  
	
                    2.1.

                  	
                    Formation.

                  	
                    11

                  
	
                    2.2.

                  	
                    Name.

                  	
                    11

                  
	
                    2.3.

                  	
                    Principal Place of
      Business.

                  	
                    12

                  
	
                    2.4.

                  	
                    Term.

                  	
                    12

                  
	
                    2.5.

                  	
                    Registered Agent and Registered
      Office.

                  	
                    12

                  
	
                    2.6.

                  	
                    Purpose.

                  	
                    12

                  
	
                    2.7.

                  	
                    Investment
      Period.

                  	
                    12

                  
	
                    ARTICLE 3
      CAPITAL

                  	 
      	
                    13

                  
	
                    3.1.

                  	
                    Initial Capital
      Contributions.

                  	
                    13

                  
	
                    3.2.

                  	
                    Additional Capital
      Contributions.

                  	
                    13

                  
	
                    3.3.

                  	
                    Company
    Loan.

                  	
                    14

                  
	
                    3.4.

                  	
                    Borrow
    Funds.

                  	
                    15

                  
	
                    3.5.

                  	
                    Wire
    Transfers.

                  	
                    15

                  
	
                    3.6.

                  	
                    Failure to Make Capital
      Contribution.

                  	
                    15

                  
	
                    3.6.1.

                  	
                    Set Off.

                  	
                    15

                  
	
                    3.6.2.

                  	
                    Percentage Interest
      Adjustment.

                  	
                    15

                  
	
                    3.6.3.

                  	
                    Seek
    Indemnity.

                  	
                    15

                  
	
                    3.6.4.

                  	
                    Separate
      Acquisition.

                  	
                    16

                  
	
                    3.6.5.

                  	
                    Return Additional Capital
      Contribution.

                  	
                    16

                  
	
                    3.6.6.

                  	
                    Default
    Loan.

                  	
                    16

                  
	
                    3.6.7.

                  	
                    Prohibition.

                  	
                    17

                  
	
                    3.7.

                  	
                    Percentage Interest and Final
      Sharing Ratio Adjustment

                  	
                    17

                  
	
                    3.7.1.

                  	
                    Percentage Interest
      Adjustment.

                  	
                    17

                  
	
                    3.7.2.

                  	
                    Final Sharing Ratio
      Adjustment.

                  	
                    18

                  
	
                    3.8.

                  	
                    Intentionally
      Omitted

                  	
                    19

                  
	
                    3.9.

                  	
                    Intentionally
      Omitted

                  	
                    19

                  
	
                    3.10.

                  	
                    Capital
      Accounts.

                  	
                    19

                  
	
                    3.10.1.

                  	
                    Capital Account
      Credits.

                  	
                    19

                  
	
                    3.10.2.

                  	
                    Capital Account
      Debits.

                  	
                    19

                  
	
                    3.11.

                  	
                    Interest On and Return of
      Capital.

                  	
                    20

                  
	
                    3.12.

                  	
                    No Further Capital
      Contribution.

                  	
                    20

                  
	
                    3.13.

                  	
                    Waiver of Right of Partition and
      Dissolution.

                  	
                    20

                  
	
                    ARTICLE 4 PROFITS AND
      LOSSES

                  	 
      	
                    20

                  
	
                    4.1.

                  	
                    Allocation of Profits and
      Losses

                  	
                    20

                  
	
                    4.2.

                  	
                    Special
      Allocations

                  	
                    21

                  
	
                    4.2.1.

                  	
                    Minimum Gain
      Chargeback

                  	
                    21

                  
	
                    4.2.2.

                  	
                    Qualified Income
      Offset

                  	
                    21

                  
	
                    4.2.3.

                  	
                    Nonrecourse
      Deductions

                  	
                    21

                  
	
                    4.2.4.

                  	
                    Member Nonrecourse
      Deductions

                  	
                    21

                  
	
                    4.2.5.

                  	
                    Code Section 754
      Adjustments

                  	
                    21

                  
	
                    4.2.6.

                  	
                    Loss
    Limitation

                  	
                    22

                  
	
                    4.3.

                  	
                    Compliance With Section
      704(c)

                  	
                    22

                  
	
                    4.4.

                  	
                    Intent of
      Allocations

                  	
                    22

                  
	
                    4.5.

                  	
                    Member
      Acknowledgment

                  	
                    22

                  
	
                    ARTICLE 5
      DISTRIBUTIONS

                  	 
      	
                    23

                  
	
                    5.1.

                  	
                    Distributions

                  	
                    23

                  
	
                    5.2.

                  	
                    Timing

                  	
                    23

                  
	
                    5.3.

                  	
                    Distribution Limitation Under Act;
      Reserves

                  	
                    23

                  
	
                    ARTICLE 6
      MANAGEMENT

                  	 
      	
                    23

                  
	
                    6.1.

                  	
                    Executive
      Committee

                  	
                    24

                  
	
                    6.2.

                  	
                    Members of the Executive
      Committee

                  	
                    24

                  
	
                    6.2.1.

                  	
                    Membership

                  	
                    24

                  
	
                    6.2.2.

                  	
                    Regular
      Meetings

                  	
                    24

                  
	
                    6.2.3.

                  	
                    Special
      Meetings

                  	
                    25

                  
	
                    6.2.4.

                  	
                    Notice of
      Meetings

                  	
                    25

                  
	
                    6.2.5.

                  	
                    Quorum

                  	
                    25

                  
	
                    6.2.6.

                  	
                    Telephone
      Meetings

                  	
                    26

                  
	
                    6.2.7.

                  	
                    Minutes

                  	
                    26

                  
	
                    6.2.8.

                  	
                    No
    Compensation

                  	
                    26

                  
	
                    6.2.9.

                  	
                    Appointment of
      Agents

                  	
                    26

                  
	
                    6.2.10.

                  	
                    Engagement of
      Professionals

                  	
                    26

                  
	
                    6.3.

                  	
                    Major
    Decisions

                  	
                    26

                  
	
                    6.3.1.

                  	
                    Financings

                  	
                    26

                  
	
                    6.3.2.

                  	
                    Budget

                  	
                    27

                  
	
                    6.3.3.

                  	
                    Operating
      Variances

                  	
                    27

                  
	
                    6.3.4.

                  	
                    Distributions

                  	
                    27

                  
	
                    6.3.5.

                  	
                    Possession or Use of Company
      Property

                  	
                    27

                  
	
                    6.3.6.

                  	
                    Reserves

                  	
                    27

                  
	
                    6.3.7.

                  	
                    Capital
    Calls

                  	
                    27

                  
	
                    6.3.8.

                  	
                    Company
    Loans

                  	
                    27

                  
	
                    6.3.9.

                  	
                    Sales

                  	
                    27

                  
	
                    6.3.10.

                  	
                    Acquisitions

                  	
                    27

                  
	
                    6.3.11.

                  	
                    Property
      Development

                  	
                    28

                  
	
                    6.3.12.

                  	
                    Improvements

                  	
                    28

                  
	
                    6.3.13.

                  	
                    Capital
      Expenditures

                  	
                    28

                  
	
                    6.3.14.

                  	
                    Loans and
      Guarantees

                  	
                    28

                  
	
                    6.3.15.

                  	
                    Contracts

                  	
                    29

                  
	
                    6.3.16.

                  	
                    Subsidiary
      Entities

                  	
                    29

                  
	
                    6.3.17.

                  	
                    Professional
      Services

                  	
                    29

                  
	
                    6.3.18.

                  	
                    Non-Standard
      Leases

                  	
                    29

                  
	
                    6.3.19.

                  	
                    Sales or Placement
      Agents

                  	
                    29

                  
	
                    6.3.20.

                  	
                    Overhead

                  	
                    29

                  
	
                    6.3.21.

                  	
                    Affiliate
      Transactions

                  	
                    29

                  
	
                    6.3.22.

                  	
                    Legal
      Proceedings

                  	
                    30

                  
	
                    6.3.23.

                  	
                    Bankruptcy

                  	
                    30

                  
	
                    6.3.24.

                  	
                    Merger

                  	
                    30

                  
	
                    6.3.25.

                  	
                    Tax
    Elections

                  	
                    30

                  
	
                    6.3.26.

                  	
                    Dissolution or Distributions In
      Kind

                  	
                    30

                  
	
                    6.3.27.

                  	
                    Company Term; Investment
      Period

                  	
                    30

                  
	
                    6.3.28.

                  	
                    Causing Project Subsidiary to
      Undertake Major Decisions

                  	
                    30

                  
	
                    6.3.29.

                  	
                    Amendment

                  	
                    30

                  
	
                    6.3.30.

                  	
                    Restoration

                  	
                    31

                  
	
                    6.3.31.

                  	
                    Insurance

                  	
                    31

                  
	
                    6.3.32.

                  	
                    Permitted
      Investments

                  	
                    31

                  
	
                    6.3.33.

                  	
                    Memphis Commercial
      Group

                  	
                    31

                  
	
                    6.3.34.

                  	
                    Others

                  	
                    31

                  
	
                    6.3.35.

                  	
                    Permitted
      Expenditures

                  	
                    31

                  
	
                    6.4.

                  	
                    Managing Member
      Powers

                  	
                    31

                  
	
                    6.5.

                  	
                    Actions Requiring Unanimous
      Consent

                  	
                    31

                  
	
                    6.5.1.

                  	
                    Contravene
      Agreement

                  	
                    31

                  
	
                    6.5.2.

                  	
                    Impossibility of
      Business

                  	
                    31

                  
	
                    6.5.3.

                  	
                    Guarantee Non-Investment Entity
      Debts

                  	
                    31

                  
	
                    6.5.4.

                  	
                    Employees

                  	
                    32

                  
	
                    6.6.

                  	
                    Managing Member
      Duties

                  	
                    32

                  
	
                    6.6.1.

                  	
                    General
    Duties

                  	
                    32

                  
	
                    6.6.2.

                  	
                    Day to Day
      Management

                  	
                    32

                  
	
                    6.7.

                  	
                    Intentionally
      Omitted

                  	
                    33

                  
	
                    6.8.

                  	
                    Members

                  	
                    33

                  
	
                    6.9.

                  	
                    Company
      Expenses

                  	
                    33

                  
	
                    6.9.1.

                  	
                    General

                  	
                    33

                  
	
                    6.9.2.

                  	
                    Acquisition
      Costs

                  	
                    34

                  
	
                    6.9.3.

                  	
                    Management
    Fee

                  	
                    34

                  
	
                    6.9.4.

                  	
                    Asset
      Management

                  	
                    34

                  
	
                    6.9.5.

                  	
                    Construction
      Management

                  	
                    35

                  
	
                    6.9.6.

                  	
                    Acquisition
    Fee

                  	
                    35

                  
	
                    6.9.7.

                  	
                    Memphis Commercial
      Group

                  	
                    35

                  
	
                    6.9.8.

                  	
                    Equity
      Placement

                  	
                    35

                  
	
                    6.9.9.

                  	
                    Thackeray Direct
      Expenses

                  	
                    35

                  
	
                    6.10.

                  	
                    Liability of
      Members.

                  	
                    35

                  
	
                    6.10.1.

                  	
                    Exculpation.

                  	
                    36

                  
	
                    6.10.2.

                  	
                    Indemnification.

                  	
                    37

                  
	
                    6.10.3.

                  	
                    Indemnification of
      Successors

                  	
                    40

                  
	
                    ARTICLE 7 PURCHASE
      OPTIONS

                  	 
      	
                    40

                  
	
                    7.1.

                  	
                    Purchase
    Events

                  	
                    40

                  
	
                    7.1.1.

                  	
                    Withdrawal

                  	
                    40

                  
	
                    7.1.2.

                  	
                    Bankruptcy

                  	
                    40

                  
	
                    7.1.3.

                  	
                    Involuntary
      Bankruptcy

                  	
                    40

                  
	
                    7.1.4.

                  	
                    Trustee
      Appointment

                  	
                    40

                  
	
                    7.1.5.

                  	
                    Failure to Pay
      Debts

                  	
                    40

                  
	
                    7.1.6.

                  	
                    Writ of
      Attachment

                  	
                    40

                  
	
                    7.1.7.

                  	
                    Failure to Perform
      Obligations

                  	
                    41

                  
	
                    7.1.8.

                  	
                    Assignment of
      Rights

                  	
                    41

                  
	
                    7.1.9.

                  	
                    Change of
      Control

                  	
                    41

                  
	
                    7.1.10.

                  	
                    Dissolution

                  	
                    41

                  
	
                    7.1.11.

                  	
                    Felonious
    Act

                  	
                    41

                  
	
                    7.2.

                  	
                    Exercise of Purchase
      Option

                  	
                    41

                  
	
                    7.3.

                  	
                    Closing and
      Terms

                  	
                    42

                  
	
                    7.4.

                  	
                    Effect on Seller's
      Interest

                  	
                    42

                  
	
                    7.5.

                  	
                    Term of
    Options

                  	
                    42

                  
	
                    ARTICLE 8 BUY-SELL
      PROVISIONS

                  	 
      	
                    43

                  
	
                    8.1.

                  	
                    Master Buy-Sell
      Provision

                  	
                    43

                  
	
                    8.1.1.

                  	
                    Terms

                  	
                    43

                  
	
                    8.1.2.

                  	
                    Determination of
      Value

                  	
                    43

                  
	
                    8.1.3.

                  	
                    Offeree
      Election

                  	
                    43

                  
	
                    8.2.

                  	
                    Closing

                  	
                    44

                  
	
                    8.3.

                  	
                    Remedies; Coordination of
      Rights

                  	
                    44

                  
	
                    8.4.

                  	
                    Terms Governing the Escrow
      Funds

                  	
                    45

                  
	
                    8.5.

                  	
                    Power of
      Attorney

                  	
                    45

                  
	
                    8.6.

                  	
                    Property Buy-Sell
      Provision

                  	
                    45

                  
	
                    8.6.1.

                  	
                    Terms

                  	
                    46

                  
	
                    8.6.2.

                  	
                    Non-Offering Member
      Election

                  	
                    46

                  
	
                    8.7.

                  	
                    Closing

                  	
                    47

                  
	
                    8.8.

                  	
                    Remedies; Coordination of Rights
      in Connection with Property Buy-Sell

                  	
                    47

                  
	
                    8.9.

                  	
                    Terms Governing the Escrow Funds
      in Connection with Property Buy-Sell

                  	
                    47

                  
	
                    ARTICLE 9 BOOKS AND
      RECORDS

                  	 
      	
                    48

                  
	
                    9.1.

                  	
                    Books and
      Records

                  	
                    48

                  
	
                    9.2.

                  	
                    Accounting and Fiscal
      Year

                  	
                    48

                  
	
                    9.3.

                  	
                    Reports

                  	
                    49

                  
	
                    9.3.1.

                  	
                    Monthly
    Reports

                  	
                    49

                  
	
                    9.3.2.

                  	
                    Annual
    Reports

                  	
                    49

                  
	
                    9.3.3.

                  	
                    Other
    Reports

                  	
                    50

                  
	
                    9.3.4.

                  	
                    Tax Reports

                  	
                    50

                  
	
                    9.3.5.

                  	
                    Tax Returns

                  	
                    50

                  
	
                    9.3.6.

                  	
                    Other

                  	
                    50

                  
	
                    9.4.

                  	
                    The Company
      Accountant

                  	
                    50

                  
	
                    9.5.

                  	
                    Reserves

                  	
                    50

                  
	
                    9.6.

                  	
                    The Budget and Operating
      Plans

                  	
                    50

                  
	
                    9.6.1.

                  	
                    Adoption of
      Budget

                  	
                    51

                  
	
                    9.6.2.

                  	
                    Strategies

                  	
                    51

                  
	
                    9.6.3.

                  	
                    Project
    Budget

                  	
                    51

                  
	
                    9.6.4.

                  	
                    Renovation of
      Properties

                  	
                    51

                  
	
                    9.6.5.

                  	
                    Failure to Approve Annual
      Plan

                  	
                    51

                  
	
                    9.7.

                  	
                    Tax Matters
      Member

                  	
                    52

                  
	
                    ARTICLE 10 TRANSFER OF
      INTERESTS

                  	 
      	
                    52

                  
	
                    10.1.

                  	
                    Transfer
      Restrictions

                  	
                    52

                  
	
                    10.1.1.

                  	
                    Direct
      Transfers

                  	
                    52

                  
	
                    10.1.2.

                  	
                    Managing Member Indirect
      Transfers

                  	
                    52

                  
	
                    10.2.

                  	
                    Permitted
      Transfers

                  	
                    52

                  
	
                    10.3.

                  	
                    Transferees

                  	
                    53

                  
	
                    10.4.

                  	
                    Section 754
      Election

                  	
                    53

                  
	
                    10.5.

                  	
                    Non-Complying Transfers
      Void

                  	
                    53

                  
	
                    ARTICLE 11 DISSOLUTION AND
      TERMINATION

                  	 
      	
                    53

                  
	
                    11.1.

                  	
                    Dissolution
      Events

                  	
                    53

                  
	
                    11.1.1.

                  	
                    Termination
      Date

                  	
                    53

                  
	
                    11.1.2.

                  	
                    Written
      Agreement

                  	
                    54

                  
	
                    11.1.3.

                  	
                    Withdrawal or Merger of Managing
      Member

                  	
                    54

                  
	
                    11.1.4.

                  	
                    Disposition of
      Property

                  	
                    54

                  
	
                    11.1.5.

                  	
                    Bankruptcy

                  	
                    54

                  
	
                    11.1.6.

                  	
                    Reorganization

                  	
                    54

                  
	
                    11.2.

                  	
                    Continuation

                  	
                    54

                  
	
                    11.3.

                  	
                    Method of
      Liquidation

                  	
                    54

                  
	
                    11.3.1.

                  	
                    Generally

                  	
                    54

                  
	
                    11.3.2.

                  	
                    Distributions in
      Kind

                  	
                    55

                  
	
                    11.3.3.

                  	
                    No Deficit Restoration
      Obligation

                  	
                    55

                  
	
                    11.4.

                  	
                    Deemed Distribution and
      Recontribution

                  	
                    55

                  
	
                    11.5.

                  	
                    Date of
      Termination

                  	
                    56

                  
	
                    ARTICLE 12 INVESTMENT
      REPRESENTATIONS OF THE MEMBERS

                  	
                    56

                  
	
                    12.1.

                  	
                    Investment
      Intent

                  	
                    56

                  
	
                    12.2.

                  	
                    Unregistered Company
      Interests

                  	
                    56

                  
	
                    12.3.

                  	
                    Nature of
      Investment

                  	
                    56

                  
	
                    12.4.

                  	
                    Legend on
      Agreement

                  	
                    57

                  
	
                    ARTICLE 13
      MISCELLANEOUS

                  	 
      	
                    57

                  
	
                    13.1.

                  	
                    Exclusivity

                  	
                    57

                  
	
                    13.1.1.

                  	
                    Opportunities

                  	
                    57

                  
	
                    13.1.2.

                  	
                    Exceptions:
      Rejection

                  	
                    57

                  
	
                    13.1.3.

                  	
                    Exception:  Like
      Kind

                  	
                    57

                  
	
                    13.2.

                  	
                    Exclusivity

                  	
                    58

                  
	
                    13.3.

                  	
                    Representations and Warranties of
      the Members

                  	
                    58

                  
	
                    13.3.1.

                  	
                    Due
      Organization

                  	
                    58

                  
	
                    13.3.2.

                  	
                    Legal and
      Binding

                  	
                    58

                  
	
                    13.3.3.

                  	
                    No Consents

                  	
                    58

                  
	
                    13.3.4.

                  	
                    No
Conflicts

                  	
                    58

                  
	
                    13.3.5.

                  	
                    No Brokers

                  	
                    58

                  
	
                    13.3.6.

                  	
                    Prohibited Person and
      Transactions

                  	
                    58

                  
	
                    13.4.

                  	
                    Appraisal Procedures for Fair
      Market Value

                  	
                    59

                  
	
                    13.4.1.

                  	
                    Selection of
      Appraisers

                  	
                    59

                  
	
                    13.4.2.

                  	
                    Resolution of Appraisal
      Disputes

                  	
                    59

                  
	
                    13.5.

                  	
                    Further
      Assurances

                  	
                    59

                  
	
                    13.6.

                  	
                    Conflicts

                  	
                    59

                  
	
                    13.7.

                  	
                    Notices

                  	
                    60

                  
	
                    13.8.

                  	
                    Cumulative
      Remedies

                  	
                    61

                  
	
                    13.9.

                  	
                    Governing
    Law

                  	
                    61

                  
	
                    13.10.

                  	
                    Arbitration

                  	
                    61

                  
	
                    13.10.1.

                  	
                    General

                  	
                    61

                  
	
                    13.10.2.

                  	
                    Selection of
      Arbitrator

                  	
                    62

                  
	
                    13.10.3.

                  	
                    Rules of
      Arbitration

                  	
                    62

                  
	
                    13.10.4.

                  	
                    Costs of
      Arbitration

                  	
                    62

                  
	
                    13.10.5.

                  	
                    Award of
      Arbitrator

                  	
                    62

                  
	
                    13.11.

                  	
                    Attorney
    Fees

                  	
                    62

                  
	
                    13.12.

                  	
                    Captions

                  	
                    62

                  
	
                    13.13.

                  	
                    Pronouns

                  	
                    63

                  
	
                    13.14.

                  	
                    Successors and
      Assigns

                  	
                    63

                  
	
                    13.15.

                  	
                    Extension Not a
      Waiver

                  	
                    63

                  
	
                    13.16.

                  	
                    Creditors and Third Parties Not
      Benefited

                  	
                    63

                  
	
                    13.17.

                  	
                    Recalculations of
      Interest

                  	
                    63

                  
	
                    13.18.

                  	
                    Severability

                  	
                    63

                  
	
                    13.19.

                  	
                    Entire
      Agreement

                  	
                    63

                  
	
                    13.20.

                  	
                    Publicity

                  	
                    64

                  
	
                    13.21.

                  	
                    Counterparts

                  	
                    64

                  
	
                    13.22.

                  	
                    Confidentiality

                  	
                    64

                  
	
                    13.22.1.

                  	
                    Confidential
      Information

                  	
                    64

                  
	
                    13.22.2.

                  	
                    No
    Disclosure

                  	
                    65

                  
	
                    13.22.3.

                  	
                    Survival

                  	
                    65

                  

          

        

      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

    
      
      

    

     

     

     

    

    LIMITED
LIABILITY COMPANY AGREEMENT

    

    

    OF

    

    

    

    MID-AMERICA
MULTIFAMILY FUND II, LLC

    

    (a
Delaware limited liability company)

    

    

    

    Dated
as of June 23, 2009

    

    

    

    

    

    

    

    THE
INTERESTS REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“FEDERAL ACT”), OR THE SECURITIES LAWS OF THE VARIOUS STATES (“STATE
LAW”).  THEY HAVE BEEN ISSUED AND SOLD PURSUANT TO AN EXEMPTION FROM
THE FEDERAL ACT AND STATE LAW AND MAY NOT, EXCEPT AS SPECIFICALLY PROVIDED
HEREIN, BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED BY THE HOLDERS THEREOF AT ANY
TIME, AND WHICH MAY BE CONDITIONED UPON DELIVERY TO THE COMPANY OF AN OPINION OF
COUNSEL SATISFACTORY TO THE MANAGING MEMBER THAT SUCH SECURITIES MAY BE
TRANSFERRED WITHOUT REGISTRATION OR QUALIFICATION.  TRANSFER OF AN
INTEREST IS PROHIBITED EXCEPT PURSUANT TO REGISTRATION IN ACCORDANCE WITH THE
FEDERAL ACT AND EACH RELEVANT STATE LAW OR PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE FEDERAL ACT AND EACH RELEVANT STATE
LAW.  HEDGING TRANSACTIONS INVOLVING AN INTEREST MAY NOT BE CONDUCTED
UNLESS IN COMPLIANCE WITH THE FEDERAL ACT AND ALL APPLICABLE STATE
LAWS.

    EXHIBITS

    

    

    Exhibit A
— Example IRR Calculation

    Exhibit B
— Property Management Agreement

    Exhibit C
— Example Percentage Interest and Final Sharing Ratio Adjustment

    Exhibit D
— Due Diligence and Closing Checklist

    Exhibit E
— Purchase and Sale Agreement

    Exhibit F
— Single Purpose Entity Agreement

    Exhibit G
— Investment Criteria

    Exhibit H
— Memphis Commercial Group Agreement

    

    

    LIMITED
LIABILITY COMPANY AGREEMENT

    OF

    MID-AMERICA
MULTIFAMILY FUND II, LLC

     

    This
LIMITED LIABILITY COMPANY
AGREEMENT of MID-AMERICA
MULTIFAMILY FUND II, LLC, a Delaware limited liability company, is made
and entered into as of June ___, 2009 (the "Formation
Date"), by and among Mid-America Apartments, L.P.,
a Tennessee limited partnership ("MAALP")
and TPRF II/Memphis Investor,
L.L.C., a Delaware limited liability company ("Thackeray").

     

    ARTICLE
1

     

    

     

    DEFINED
TERMS

     

    As used
in this Agreement, the following terms will have the following meanings when
used herein with initial capital letters:

     

    1.1. AAA.»

     

      "AAA"
shall have the meaning set forth in Section
13.10.2.

     

    1.2. Acquiring Member»

     

    .  “Acquiring
Member” shall have the meaning set forth in Section13.1.2.

     

    1.3. Acquisition
Contract»

     

    .  “Acquisition
Contract” shall have the meaning set forth in Section
6.3.10.

     

    1.4. Act.»

     

      "Act"
means the Delaware Limited Liability Company Act, as amended from time to
time.

     

    1.5. 1933
Act.»

     

      "1933
Act" means the Securities Act of 1933, as amended.

     

    1.6. Additional
Capital Contributions.»

     

      "Additional
Capital Contributions" shall have the meaning set forth in Section
3.2.

     

    1.7. Adjusted
Capital Account Deficit.»

     

      "Adjusted
Capital Account Deficit" means with respect to any Member for any taxable
year, the deficit balance, if any, in such Member's Capital Account as of the
end of such taxable year, after increasing such Capital Account by any amounts
that such Member is actually obligated or deemed obligated to restore as
described in the penultimate sentences of Treasury Regulation Section
1.704-2(g)(1) and Treasury Regulation Section 1.704-2(i)(5), and reducing such
Capital Account by any amounts described in Treasury Regulation Section
1.704-1(b)(2)(ii)(d)(4), (5) and (6).  The definition
of Adjusted Capital Account Deficit is intended to comply with the provisions of
Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted
consistently therewith.

     

    1.8. Affiliate.»

     

      "Affiliate"
means, with respect to any Person, any other Person directly or indirectly,
through one or more intermediaries, controlling, controlled by, or under common
control with such Person; provided, however, that no individual Person or any
Person who controls, is controlled by, or is under common control with such
individual Person shall be deemed an Affiliate of another Person solely by
reason of such individual's status as a director, officer or employee of such
Person; provided further, that, without limiting the foregoing, Mid-America
Apartment Communities, Inc (“MAAC”) and MAALP are Affiliates of each other and
MAAC and MAALP individually and collectively are not Affiliates of Thackeray and
vice versa.  As used in this definition, the terms "control,"
"controlling," "controlled by" or "under common control with" means the
possession, directly or indirectly, through one or more intermediaries, of the
power to direct or cause the direction of the management and policies of a
Person, whether through voting securities, by contract or
otherwise.

     

    1.9. Agreement.»

     

      "Agreement"
means this Limited Liability Company Agreement, as it may be amended from time
to time.

     

    1.10. Book
Basis.»

     

      "Book
Basis" means, with respect to any asset, the asset's adjusted basis for
federal income tax purposes; provided, however, (a) if property is contributed
to the Company, the initial Book Basis of such property shall equal its Fair
Market Value on the date of contribution as determined by this Agreement; and
(b) if the Capital Accounts of the Company are adjusted pursuant to Treasury
Regulation Section 1.704-1(b) to reflect the Fair Market Value of any Company
asset, the Book Basis of such asset shall be adjusted to equal its respective
Fair Market Value as of the time of such adjustment in accordance with such
Treasury Regulation.  The Book Basis of all assets shall be adjusted
thereafter by depreciation and amortization as provided in Treasury Regulation
Section 1.704-1(b)(2)(iv)(g).

     

    1.11. Budget.»

     

      "Budget"
means a Budget and Operating Plans.

     

    1.12. Budget
and Operating Plans.»

     

      "Budget
and Operating Plans" shall have the meaning set forth in Section
9.6.1.

     

    1.13. Buyer.»

     

      "Buyer"
shall have the meaning set forth in Section
7.1.

     

    1.14. Buy-Sell
Offer.»

     

      "Buy-Sell
Offer" shall have the meaning set forth in Section 8.1.

     

    1.15. Capital
Account.»

     

      "Capital
Account" means that capital account maintained for each Member pursuant
to Section
3.10.

     

    1.16. Capital
Contributions.»

     

      "Capital
Contributions" means, with respect to any Member, the amount of cash and
the initial Book Basis of any property or other asset (net of liabilities
assumed by the Company resulting from such contribution, and liabilities to
which that property or asset is subject), contributed or deemed contributed to
the Company with respect to the Percentage Interest held by the
Member.

     

    1.17. Cash
Needs.»

     

      "Cash
Needs" shall have the meaning set forth in Section
3.2.

     

    1.18. Certificate
of Formation.»

     

      "Certificate
of Formation" shall have the meaning set forth in Section
2.1.

     

    1.19. Change in
Control.»

     

      A
"Change in
Control" with respect to MAAC
shall be deemed to have occurred if (i) any "person" (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 and the
Regulations promulgated thereunder), acquires, directly or indirectly, in any
transaction or series of transactions 40% or more of the Full Voting Power of
MAAC or substantially all of the assets of MAAC (a "CIC Threshold
Transaction"); provided, however, that a Change in Control shall not be
deemed to have occurred if after a CIC Threshold Transaction (1) the Chief
Executive Officer and Chief Financial Officer (who held such positions as of the
Formation Date or are otherwise approved by all the Members) continue to hold
those positions with MAAC or any surviving entity after a CIC Threshold
Transaction, or (2) such CIC Threshold Transaction is a transaction described in
Rule 13e-3 under the Securities Exchange Act of 1934 and the Chief Executive
Officer and Chief Financial Officer of MAAC (who held such positions as of the
Formation Date or are otherwise approved by all the Members) remain in those
positions with MAAC or any surviving entity after such CIC Threshold
Transaction, or (ii) an event occurs in which the Chief Executive Officer,
Chief Financial Officer and at least 50% of the directors of MAAC (who held such
positions as of the Formation Date or are otherwise approved by all Members) do
not continue to hold those positions with MAAC or any surviving entity after
such event.  "Full
Voting Power" shall mean the right to vote in the election of one or more
directors through proxy or by the beneficial ownership of common stock of MAAC
or other securities then entitled to vote in the election of one or more
directors.  For purposes of calculating the percentage ownership of
Full Voting Power of a person, all warrants, options or rights to purchase
common stock or other securities of MAAC that would be entitled to vote in the
election of directors of MAAC held by all persons shall be deemed to have been
exercised and all securities convertible into or exchangeable for MAAC common
stock or voting securities, including Class A common units of limited
partnership interest in MAALP, shall be deemed to have been converted or
exchanged, as the case may be (disregarding for such purposes any restrictions
on conversion, voting (such as proxies), exchange or exercise), in each case for
the maximum number of shares of common stock of MAAC or other securities
entitled to then vote in the election of one or more directors.  A
"Change in
Control" with
respect to MAALP means any event (including, without limitation, any sale,
assignment, Transfer, merger, consolidation, combination, reorganization,
liquidation, division, dividend, stock split or other restructure) which results
in (1) MAAC (or an Affiliate of MAAC) no longer owning and controlling MAALP, or
substantially all the assets owned by MAALP, prior to such event or (2) any
Change in Control with respect to MAAC.  As used in the previous
sentence, the term "controlling" shall have the same
meaning as set forth in the definition of Affiliate. A “Change in Control” with
regards to Thackeray means any event, including without limitation, any sale,
assignment, Transfer, merger, consolidation, reorganization, liquidation,
division, dividend or any other restructure of Thackeray or Thackeray Partners
Realty Fund II, L.P. ("Thackeray Partners"), resulting in Thackeray Partners no
longer owning and controlling Thackeray, or substantially all the assets owned
by Thackeray, prior to such event; provided that such event shall be deemed not
to constitute a Change in Control if either Tony Dona or Mary Hager (or both of
them) continue in controlling management positions relating to the entity that,
upon such event, controls or owns Thackeray.

     

    1.20. Code.»

     

      "Code"
means the Internal Revenue Code of 1986, as amended.

     

    1.21. Company.»

     

     "Company"
means the company formed and governed by this Agreement.

     

    1.22. Company
Accountant»

     

    .  “Company
Accountant” shall have the meaning set forth in Section
9.4.

     

    1.23. Company
Loan.»

     

      “Company
Loan” shall have the meaning set forth in Section
3.3.

     

    1.24. Company Minimum
Gain»

     

    .  “Company
Minimum Gain” shall have the meaning of “Partnership Minimum Gain” set
forth in Treasury Regulation Section 1.704-2(d).

     

    1.25. Confidential
Information.»

     

      "Confidential
Information" shall have the meaning set forth in Section
13.22.1 hereof.

     

    1.26. Contributing
Member.»

     

      “Contributing
Member” shall have the meaning set forth in Section
3.2.

     

    1.27. Contributing
Member's Representatives.»

     

      "Contributing
Member's Representatives" shall have the meaning set forth in Section
3.6.

     

    1.28. Default
Loan.»

     

      “Default
Loan” shall have the meaning set forth in Section
3.6.6.

     

    1.29. Election.»

     

      "Election"
shall have the meaning set forth in Section
8.1.3.

     

    1.30. Escrow
Fund.»

     

      "Escrow
Fund" shall have the meaning set forth in Section
8.1.1.

     

    1.31. Executive
Committee.»

     

      "Executive
Committee" means the committee formed pursuant to Section
6.1.

     

    1.32. Expenditures.»

     

      "Expenditures"
means, for any period, the sum of the total gross expenditures of the Company
during such period, including (a) all cash operating expenses, (b) all costs and
expenses of any financing and all debt service payments including debt service
on loans made to the Company by the Members or any of their Affiliates (pursuant
to the terms and conditions of this Agreement other than Company Loans), (c) all
expenditures which are treated as capital expenditures (as distinguished from
expense deductions) under GAAP, (d) all real estate taxes, personal property
taxes and sales taxes, (e) all deposits of Receipts to the Company's reserve
accounts, and (f) all costs and expenditures related to any acquisition, sale,
disposition, financing, refinancing or securitization of a
Property;  provided, however, that Expenditures shall not include (i)
any payment or expenditure to the extent (A) the sources of funds used for such
payment or expenditure are not included in Receipts or (B) such payment or
expenditure is paid directly out of any Company reserve account (as opposed to
first being deposited into an operating account and then applied to the
applicable expense), or (ii) any expenditure properly attributable to the
liquidation of the Company.

     

    1.33. Failed
Contribution.»

     

      "Failed
Contribution" shall have the meaning set forth in Section
3.6.

     

    1.34. Fair
Market Value.»

     

      "Fair
Market Value" means, as to any non-cash property of the Company, the fair
market value thereof as determined by the Executive Committee.

     

    1.35. Final
Sharing Ratio.»

     

      "Final
Sharing Ratio" means with respect to a Member, the percentage set forth
under the heading Final Sharing Ratio opposite the name of that Member in Section
3.1 as it may be increased or decreased pursuant to this
Agreement.

     

    1.36. Formation
Date.»

     

      "Formation
Date" shall have the meaning given to such term in the first paragraph of
this Agreement.

     

    1.37. Fund III»

     

    .  “Fund
III” shall have the meaning given to such term in Section
3.2.

     

    1.38. GAAP.»

     

      "GAAP"
shall have the meaning set forth in Section
9.2.

     

    1.39. Indemnitee.»

     

      "Indemnitee
" shall have the meaning set forth in Section
6.10.2.3.

     

    1.40. Initial
Cash Contributions.»

     

      "Initial
Cash Contributions" shall have the meaning set forth in Section
3.1.

     

    1.41. Interest.»

     

      "Interest"
means, with respect to any Member at any time, the interest of such Member in
the Company at such time, including the right of such Member to any and all of
the benefits to which such Member may be entitled as provided in this Agreement,
together with the obligations of such Member to comply with all of the terms and
provisions of this Agreement.

     

    1.42. IRR.»

     

      "IRR"
means with respect to contributions (i.e. Capital Contributions) to the Company
by a Member and distributions (i.e. distributions made under Sections
5.1 and 11.3)
from the Company to a Member, the monthly rate of compounding which satisfies
the condition that the sum of the present values of each contribution equals the
sum of the present values of each distribution, where each such present value is
determined as of the Formation Date.  For purposes of this Agreement,
IRR will be calculated by treating each contribution and distribution which
occurs during a month as occurring at the beginning of that month and by using
the computer program Microsoft EXCEL (Internal Rate of Return
Calculation).  Any IRR expressed in this Agreement will be expressed
as an annual rate taking into consideration the monthly compounding required to
yield such annual rate.  An example IRR calculation in accordance with
this definition, which is calculated inclusive of a return of Member Capital
Contributions, is attached hereto as Exhibit
A.

     

    1.43. Investment
Criteria»

     

    .  “Investment
Criteria” shall have the meaning set forth in Section
2.7.

     

    1.44. Investment
Period»

     

    .  “Investment
Period” shall have the meaning set forth in Section
2.7.

     

    1.45. Lending Member»

     

    .  “Lending
Member” shall have the meaning set forth in Section
3.6.6.

     

    1.46. Liquidating
Amount»

     

     “Liquidating
Amount” means,
with respect to a Member, at the end of any fiscal year or other allocation
period, the amount which such Member would then be entitled to receive if,
immediately following such fiscal year or other allocation period: (a) all of
the assets of the Company (other than cash and claims of the Company for
contributions) were sold for cash equal to their respective Book Basis (or, in
the case of assets subject to liabilities for which the creditor’s right is
limited to assets of the Company, the amounts of such liabilities, if greater
than the aggregate Book Basis of such assets); (b) all unconditional obligations
to contribute to the Company were collected in full; and (c) the proceeds of
such sale and collections, and all other cash of the Company, were distributed
as provided in Section
5.1.

     

    1.47. Liquidator.»

     

      "Liquidator"
shall have the meaning set forth in Section
11.3.1.

     

    1.48. Loan
Needs.»

     

      "Loan
Needs" shall have the meaning set forth in Section
3.3.

     

    1.49. Lockout
Period.»

     

      “Lockout
Period” means the
two (2) year period from the Acquisition Date of a Property.

     

    1.50. Loss.»

     

      "Loss"
means, with respect to the Company, for each taxable year, each item of the
Company's taxable loss or deduction for such taxable year, as determined under
Section 703(a) of the Code, and Section 1.703-1 of the Treasury Regulations (for
this purpose, all items of deduction and loss required to be stated separately
pursuant to Section 703(a)(1) of the Code shall be included in taxable loss),
but with the following adjustments:

     

    (a) Any
expenditures of the Company described in Section 705(a)(2)(B) of the Code,
including any items treated under Section 1.704-1(b)(2)(iv)(i) of the Treasury
Regulations as items described in Section 705(a)(2)(B) of the Code, shall be
considered an item of taxable deduction or loss;

     

    (b) In the
event the Book Basis of any Company asset is reduced as a result of an
adjustment to Book Basis under Treasury Regulation Section
1.704-1(b)(2)(iv)(f),
the amount of such reduction shall be taken into account as loss from the
disposition of such asset for purposes of computing Loss;

     

    (c) Loss
resulting from any disposition of property with respect to which loss is
recognized for federal income tax purposes shall be computed by reference to the
Book Basis of the property disposed of, notwithstanding that the adjusted tax
basis of such property differs from its Book Basis;

     

    (d) Any items
which are specially allocated pursuant to Section
4.2 shall not be taken into account in computing Loss; and

     

    (e) In lieu
of the depreciation, amortization and other cost recovery deductions taken into
account in computing such taxable loss or deduction, there shall be taken into
account depreciation and amortization as determined pursuant to Treasury
Regulation Section 1.704-1(b)(2)(iv)(g), if applicable for such
taxable year or other period.

     

    1.51. Major
Decision.»

     

      "Major
Decision" shall have the meaning set forth in Section 6.3.

     

    1.52. Managing
Member.»

     

      "Managing
Member" means
MAALP or any other Person who is selected as the Managing Member in accordance
with this Agreement.

     

    1.53. Managing
Member Indemnitees.»

     

      "Managing
Member Indemnitees" shall have the meaning set forth in Section
6.10.1.2.

     

    1.54. Maximum
Contribution Amount.»

     

      "Maximum Contribution Amount"
shall have the meaning set forth in Section
3.2.

     

    1.55. Member.»

     

      "Member" means Thackeray, MAALP or
any other Person designated as a Member on the signature pages to this Agreement
or who or which is admitted hereafter as a member of the Company in accordance
with this Agreement and applicable law.

     

    1.56. Member
Minimum Gain.»

     

      "Member
Minimum Gain"
means "partner minimum gain" as defined in Treasury Regulation Section
1.704-2(i)(2).

     

    1.57. Member
Nonrecourse Debt.»

     

      "Member
Nonrecourse Debt"
means "partner nonrecourse debt" as defined in Treasury Regulation
Section 1.704-2(b)(4).

     

    1.58. Member
Nonrecourse Deductions.»

     

      "Member
Nonrecourse Deductions"
means "partner nonrecourse deductions" as defined in Treasury Regulations
Section 1.704-2(i)(1).

     

    1.59. Net Cash
Flow.»

     

      "Net Cash
Flow" means, for any period, the excess of (a) Receipts for such
period, over (b) Expenditures for such period.

     

    1.60. Net
Profits and Net Losses.»

     

      "Net
Profits or Net Losses" means for each taxable year or other period the
excess of items of Profit over items of Loss for such period, or the items of
Loss over the items of Profit for such period, as appropriate.  Net
Profits and Net Losses shall not include items of Profit and Loss allocated
pursuant to Section
4.2.

     

    1.61. Non-Contributing
Member.»

     

      "Non-Contributing
Member" shall have the meaning set forth in Section
3.6.

     

    1.62. Non-Offering
Member.»

     

      "Non-Offering
Member" shall have the meaning set forth in Section
8.6.

     

    1.63. Nonrecourse
Debt.»

     

      "Nonrecourse
Debt" shall have the meaning given to the term "nonrecourse liability" by
Treasury Regulation Section 1.704-2(b)(3).

     

    1.64. Nonrecourse
Deductions.»

     

      "Nonrecourse
Deductions" shall have the meaning set forth in Treasury Regulation
Section 1.704-2.

     

    1.65. Notices.»

     

      "Notices"
shall have the meaning set forth in Section
13.7.

     

    1.66. Offeree.»

     

      "Offeree"
shall have the meaning set forth in Section
8.1.

     

    1.67. Offeree
Value.»

     

      "Offeree
Value" shall have the meaning set forth in Section 8.1.2.

     

    1.68. Offering
Member.»

     

      "Offering
Member" shall have the meaning set forth in Section
8.6.

     

    1.69. Offeror.»

     

      "Offeror"
shall have the meaning set forth in Section
8.1.

     

    1.70. Offeror
Value.»

     

      "Offeror
Value" shall have the meaning set forth in Section 8.1.2.

     

    1.71. Percentage
Interest.»

     

      "Percentage
Interest" means, with respect to a Member, that percentage set forth
under the heading Percentage Interest opposite the name of that Member on Section 3.1
as it may be increased or decreased pursuant to this Agreement.

     

    1.72. Permitted
Investments.»

     

      "Permitted
Investments" means United States government obligations, collateralized
bank time deposits, money market accounts and certificates of deposit which are
insured by the United States government.

     

    1.73. Person.»

     

      "Person"
means an individual or an entity.

     

    1.74. Prime
Rate.»

     

      "Prime
Rate" means the lesser of (i) the fluctuating rate per annum as in effect
from time to time equal to the rate of interest announced publicly by JPMorgan Chase & Co. in New York, New York
as its base rate, or (ii) the maximum rate permitted to be charged under
applicable law.

     

    1.75. Proceeding.»

     

      "Proceeding"
means any threatened, pending, or completed action, suit, or proceeding, whether
civil, criminal, administrative, arbitrative, or investigative, any appeal in
such an action, suit, or proceeding, and any inquiry or investigation that could
lead to such an action, suit, or proceeding.

     

    1.76. Profit.»

     

      "Profit"
means, with respect to the Company, for each taxable year, each item of the
Company's taxable income or gain for such taxable year, as determined under
Section 703(a) of the Code, and Section 1.703-1 of the Treasury Regulations (for
this purpose, all items of income and gain required to be stated separately
pursuant to Section 703(a)(1) of the Code shall be included in taxable income or
gain), but with the following adjustments:

     

    (a) Any
tax-exempt income, as described in Section 705(a)(1)(B) of the Code, realized by
the Company during such taxable year shall be considered an item of taxable
income;

     

    (b) In the
event the Book Basis of any Company asset is increased pursuant to Treasury
Regulation Section 1.704-1(b)(2)(iv)(f), the amount of such
adjustment shall be taken into account as gain from the disposition of such
asset for purposes of computing Profit;

     

    (c) Gain
resulting from any disposition of property with respect to which gain is
recognized for federal income tax purposes shall be computed by reference to the
Book Basis of the property disposed of, notwithstanding that the adjusted tax
basis of such property differs from its Book Basis; and

     

    (d) Any items
which are specially allocated pursuant to Section 4.2
shall not be taken into account in computing Profit.

     

    1.77. Project
Subsidiaries.»

     

      "Project
Subsidiaries" and "Project
Subsidiary" shall have the meaning set forth in Section
2.6.

     

    1.78. Properties.»

     

      "Properties"
and "Property"
shall have the meaning set forth in Section 2.6.

     

    1.79. Property
Buy Offer.»

     

      "Property
Buy Offer" shall have the meaning set forth in Section
8.6. 

     

    1.80. Property
Buy–Sell Event.»

     

      "Property
Buy-Sell Event" shall have the meaning set forth in Section
8.6.

     

    1.81. Property
Buy-Sell Offer.»

     

      "Property
Buy-Sell Offer" shall have the meaning set forth in Section 8.6.

     

    1.82. Property
Management Agreement.»

     

      "Property
Management Agreement" means a Property Management Agreement, by and
between the Property Manager and the Company, with respect to a particular
Property in a form substantially similar to Exhibit
B hereto.

     

    1.83. Property
Manager.»

     

      "Property
Manager" means MAALP.

     

    1.84. Property
Offer Election.»

     

      "Property
Offer Election" shall have the meaning set forth in Section
8.6.2.

     

    1.85. Property
Purchase Price.»

     

      "Property
Purchase Price" shall have the meaning set forth in Section
8.6.1.

     

    1.86. Property
Sell Offer.»

     

      "Property
Sell Offer" shall have the meaning set forth in Section
8.6.

     

    1.87. Prospective Property
Acquisition»

     

    .  “Prospective
Property Acquisition” shall have the meaning set forth in Section
13.1.1.

     

    1.88. Purchase
Date.»

     

      "Purchase
Date" means, for purposes of Section 7.4,
the date a Purchase Event occurs except with respect to the event described in
Section 7.1.7
for which the Purchase Date will mean the date the Buyer gives notice to Seller
of Buyer's election to purchase Seller's Purchase Interest.

     

    1.89. Purchase
Event.»

     

      "Purchase
Event" shall have the meaning set forth in Section 7.1.

     

    1.90. Purchase
Interest.»

     

      "Purchase
Interest" shall have the meaning set forth in Section 7.1.

     

    1.91. Purchase
Option.»

     

      "Purchase
Option" shall have the meaning set forth in Section 7.1.

     

    1.92. Purchase
Price.»

     

      "Purchase
Price" shall have the meaning set forth in Section 8.1.1.

     

    1.93. Receipts.»

     

      "Receipts"
means, for any period, the sum of the total consideration received by the
Company during such period, including all receipts of the Company from
(a) Capital Contributions, (b) net proceeds from the sale or other
disposition of all or any portion of a Property, (c) rent, additional rent
and percentage rent paid to the Company, (d) concessions,
(e) condemnation or casualty proceeds relating to the condemnation of or
casualty loss with regard to all or any portion of a Property (including any and
all insurance awards with regard thereto), (f) rent or business
interruption insurance, if any, (g) funds made available to the extent such
funds are withdrawn from the Company's reserve accounts and deposited into the
Company's operating accounts, (h) net proceeds from the financing,
refinancing or securitization of a Property and (i) all other revenues and
receipts realized by the Company, including, without limitation, distributions
and other payments and amounts received directly or indirectly from any
subsidiary or other entity owned in whole or part by the Company to the extent
not previously recognized as Receipts through consolidation or
otherwise.

     

    1.94. Region.»

     

      “Region”
means the cities and surrounding areas described in Exhibit G, together with
additional cities and related areas that may be agreed upon by the Executive
Committee.

     

    1.95. Rejecting Member»

     

    .  “Rejecting
Member” shall have the meaning set forth in Section
13.1.2.

     

    1.96. Related
Agreements.»

     

      "Related
Agreements" mean any Property Management Agreement and any other written
agreement between any Member or any of its Affiliates and the Company or any
Project Subsidiary relating to or arising out of this Agreement or any Company
property.

     

    1.97. Representative.»

     

      "Representative"
shall have the meaning set forth in Section 6.10.2.4.

     

    1.98. Seller.»

     

      "Seller"
shall have the meaning set forth in Section
7.1.

     

    1.99. Subject
Property.»

     

      "Subject
Property" shall have the meaning set forth in Section
8.6.1.

     

    1.100. Tax Matters
Member»

     

    .  “Tax
Matters Member” shall have the meaning set forth in Section
9.7.

     

    1.101. Target
Amount.»

     

      "Target
Amount" shall mean a cash sum that would result in an IRR to the Members
of fifteen percent (15%) with respect to the aggregate Capital Contributions
made by the Members (including any Capital Contributions deemed made by the
Contributing Members pursuant to Section
3.7.1, but excluding any Additional Capital Contributions returned to
Members pursuant to Section
3.6.5), including the return of said Capital Contributions,  to
the Company during the period commencing upon the Formation Date and ending upon
(and including) the date of determination of the Target Amount
hereunder.

     

    1.102. Thackeray
Interest.»

     

      "Thackeray
Interest" shall have the meaning set forth in Section 10.2.

     

    1.103. Thackeray.»

     

      "Thackeray"
shall have the meaning set forth in the introductory paragraph
hereof.

     

    1.104. Transfer.»

     

      "Transfer"
shall have the meaning set forth in Section
10.1.1.

     

    1.105. Treasury
Regulations»

     

    .  “Treasury
Regulations” means the Income Tax Regulations promulgated under the Code,
as such regulations are amended from time to time.

     

    1.106. Other
Terms.»

     

      All
references to "Articles" and "Sections" contained
in this Agreement are, unless specifically indicated otherwise, references to
articles, sections, subparagraphs, and clauses of this
Agreement.  Whenever in this Agreement the singular number is used,
the same shall include the plural where appropriate (and vice versa), and words
of any gender shall include each other gender where appropriate.  As
used in this Agreement, the following words and phrases shall have the meanings
indicated:  (i) "day" shall mean a
calendar day; (ii) "including" and "include" shall mean
including without limitations; (iii) "law" and "laws" shall mean
statutes, regulations, rules, judicial, executive, and governmental orders, and
other governmental actions and legal pronouncements having the effect of law;
(iv) "dollar'' and "$" shall mean a
United States dollar; and (v) "approved
by the Executive Committee" shall mean approved by the
affirmative vote of a majority in number of the members of the Executive
Committee; provided, however, that if a Member or an Affiliate of such Member is
directly or indirectly financially interested in a transaction other than in
connection with such Member's interest as a Member in the Company (e.g. as a
provider of goods or services to the Company), except as a provider of services
pursuant to a Property Management Agreement, the phrase shall mean approved by
the affirmative vote of a majority in number of the members of the Executive
Committee other than members appointed by such Member who is so
interested.

     

    ARTICLE
2

     

    

     

    ORGANIZATION

     

    2.1. Formation.»

     

      The
Members hereby form the Company as a limited liability company under the Act,
upon the terms and subject to the conditions set forth in this
Agreement.  Timothy P. Argo, as an authorized person within the
meaning of the Act, has executed, delivered and filed the Certificate of
Formation (“Certificate
of Formation”) in the Office of the Secretary of State of the State of
Delaware.  Upon such filing, his powers as an authorized person ceased
and the Managing Member became designated as an authorized person within the
meaning of the Act.

     

    2.2. Name.»

     

      The
name of the Company is set forth on the cover page to this
Agreement.  The Executive Committee may change the name of the Company
or adopt such trade or fictitious names for use by the Company as the Executive
Committee may from time to time determine.  All business of the
Company shall be conducted under such name.  In the event the
Executive Committee changes the name of the Company or adopts any trade or
fictitious name for use by the Company, the Managing Member shall promptly file
or record with the proper offices in each jurisdiction and political subdivision
in which the Company is conducting business such amendments or certificates,
applications or other documents as are required by applicable law.

     

    2.3. Principal
Place of Business.»

     

      The
principal place of business and office of the Company shall be located at the
offices of the Managing Member, 6584 Poplar Avenue, Memphis, Tennessee 38138, or
other such places of business and offices as the Executive Committee and the
Managing Member may from time to time designate (in each case, all the Members
shall be provided with notice of any change in the principal or additional place
of business and office of the Company).

     

    2.4. Term.»

     

      The
term of the Company shall commence on the date of the filing of the Certificate
of Formation pursuant to the Act, and shall continue until June 30, 2024, unless
sooner terminated as provided in this Agreement.

     

    2.5. Registered
Agent and Registered Office.»

     

      The
name of the Company's registered agent for service of process shall be National
Registered Agents, Inc. and the address of the Company's registered agent and
the address of the Company's registered office in the State of Delaware shall be
160 Greentree Drive, Suite 101, Dover, Kent County, Delaware
19904.  Such agent and such office may be changed from time to time by
the affirmative vote of the Executive Committee.

     

    2.6. Purpose.»

     

      The
purpose of the Company shall be to acquire, reposition, renovate, manage and
sell multifamily residential real properties (collectively, the "Properties"
and individually, a "Property")
located within the Region through wholly-owned subsidiary single purpose
entities (collectively, the "Project
Subsidiaries" and individually a "Project
Subsidiary") and through the Project Subsidiaries to own, reposition,
renovate, redevelop, rehabilitate, improve, hold, manage, operate, finance,
refinance, lease, sell and otherwise deal with and dispose of the Properties
and/or the Company's interest in the Project Subsidiaries and to conduct all
activities reasonably necessary or desirable to accomplish the foregoing
purposes.  The Company shall not engage in any other business or
activity without the approval of all of the Members.

     

     

    2.7. Investment
Period.»

      It
is the intent of the Members that the Company will (i) acquire or cause to
be acquired all Properties on or prior to September 10, 2010 (the “Investment
Period”), (ii) dispose of each Property between sixty (60) and eighty
four (84) months of its acquisition by the Company or a Project Subsidiary, as
applicable, and (iii) liquidate the assets of the Company no later than one
hundred (100) months from the date of the first acquisition of a Property by the
Company or a Project Subsidiary, provided that with the approval of the
Executive Committee, the Company may extend each time frame referenced in
clauses (i), (ii) and (iii) above.  All Properties shall satisfy the
investment criteria set forth in Exhibit
G (the “Investment
Criteria”) except as may otherwise be agreed upon by the Executive
Committee.

     

    

    ARTICLE
3

     

    

     

    CAPITAL

     

    3.1. Initial
Capital Contributions.»

     

      Simultaneously
with the full and complete execution of this Agreement, the Members shall make
the following initial cash contributions to the capital of the Company (the
"Initial
Cash Contributions"):

     

    
      	 
      	
               

              Amount

            	
              Percentage

              Interest

               

            	
              Final
      Sharing Ratio

            
	
              MAALP

            	
              $35,000

            	
              33.33%

               

            	
              50.000%

            
	
              Thackeray

               

            	
              $70,000

            	
              66.67%

            	
              50.000%

            
	
              Total

            	
              $105,000

            	
              100.00%

            	
              100.000%

            

    

    

     

    The Initial Cash Contributions will be
used to pay, among other expenses approved by the Executive Committee, all
out-of-pocket costs to form the Company including reasonable legal fees incurred
by the Members in connection with negotiation of this Agreement.

     

     

    3.2. Additional
Capital Contributions.»

     

      To
the extent approved by the Executive Committee, if at any time or from time to
time additional funds are required ("Cash
Needs") (i) to close the acquisition of any Property (including the
payment of third party closing costs) approved by the Executive Committee or to
fund any deposits required to be paid pursuant to any letter of intent or any
purchase and sale agreement approved by the Executive Committee, (ii) to
pay costs and expenses (whether operating or capital in nature) in connection
with the operation of the Properties that are in accordance with the Budget and
Operating Plans, or (iii) to fund the reasonable working capital needs of
the Company for both operating and capital expenditures of the Company that are
in accordance with the Budget and Operating Plans, the Executive Committee may
(but shall not be obligated to) request that the Members make further capital
contributions (the "Additional
Capital Contributions") in an amount sufficient to fund such Cash
Needs.  If so approved and requested by the Executive Committee, each
Member (the “Contributing
Member”) shall contribute its pro rata share (in proportion to the
Percentage Interests of the Members at the time of such request) of the amount
of the applicable Cash Needs.  Such Additional Capital Contributions
shall be due and payable within 15 business days after a written request
therefor has been delivered to each Member.  Notwithstanding any
provision herein to the contrary, in no event shall either (1) a request for
Additional Capital Contributions in connection with clause (i) above or
otherwise to acquire a Property be made after September 10, 2010, without the
approval of the Executive Committee or (2) the liability of the Members to make
Capital Contributions to the Company exceed the following aggregate amounts (the
“Maximum
Contribution Amount”):

     

    

    
      	
              Member

               

            	
              Maximum Contribution Amount

               

            
	
              MAALP

            	
              $ 25,000,000

            
	
              Thackeray

            	
              $
      50,000,000

            
	
              Total

            	
              $
      75,000,000

            

    

    

    Further, the liability of Thackeray to
make Capital Contributions to the Company shall not exceed the amount of the
available investment funds of Thackeray Partners Realty Fund II,
L.P.  The liability of the Members to make Additional Capital
Contributions shall be further limited by the provisions of Section 6.2.3 of
this Agreement.

    

    In the event Thackeray is unable to
fund its Maximum Contribution Amount hereunder, an Affiliate of Thackeray or
Thackeray Partners shall have the opportunity in its sole discretion, but not
any obligation, to establish and organize another fund structured materially
identical to this Company (“Fund
III”), and such Affiliate of Thackeray or Thackeray Partners may make a
Capital Contribution to Fund III in an amount equal to the balance of
Thackeray's Maximum Contribution Amount that remains unfunded
hereunder.  Such Capital Contribution being made to such new Fund III
is subject in any event to the ability of such Affiliate of Thackeray or
Thackeray Partners to raise sufficient capital for Thackeray Partners Realty
Fund III, L.P., in its sole discretion.

    

    3.3. Company
Loan.»

     

      If
at any time, additional funds are required to pay any Expenditure incurred
pursuant to the Budget and Operating Plans ("Loan
Needs"), and the Executive Committee elects to fund such Loan Needs by
means of loans from the Members, the Executive Committee may, but shall not be
required to, request all Members, within fifteen (15) business days of such
written request to all Members, to lend to the Company (pro rata in accordance
with the Percentage Interests of all Members, or if any Member refuses to make
such loan within such time period, pro rata in accordance with the Percentage
Interests of those Members making such loan or in such other manner as the
advancing Members may agree) an amount of money up to but not exceeding the
entire amount of such Loan Needs, which loan shall be deemed to be a full
recourse loan to the Company (a "Company
Loan") (but the Members shall have no liability therefor), shall not be
considered a Capital Contribution but shall constitute a debt of the Company to
the advancing Member, shall bear interest at the lesser of the maximum rate
permitted by applicable law or the rate of eighteen percent (18%) per annum, and
shall be payable at such time as the Executive Committee and advancing Members
shall agree if and to the extent Net Cash Flow exists therefor (when calculating
Net Cash Flow for a Company Loan payment no deduction shall be made for the
Company Loan payment in question) and, if the Company Loans have not been repaid
when the Company liquidates, as provided in Section 11.3.1.1.  Payments
made to an advancing Member will be credited first to interest and then to
principal.  No Member shall be obligated to make a Company
Loan.  If any Member or Members make a Company Loan, upon written
request of such Member or Members, the Company will execute and deliver a
promissory note payable to such Members as evidence of the Company Loan;
provided that the failure of the Company to execute such a promissory note will
not affect the validity of the Company Loan in question or the obligation of the
Company to repay the Company Loan in accordance with the terms of this
Agreement.  Each Company Loan may be prepaid in whole or in part,
without penalty or premium.  No distributions of Net Cash Flow
pursuant to Section
5.1(ii) and Section
5.1(iii) shall be made by the Company to any Member until all Company
Loans have been paid in full.

     

    3.4. Borrow
Funds.»

     

      In
addition to or in lieu of requesting Additional Capital Contributions from the
Members pursuant to Section
3.2 or Company Loans pursuant to Section 3.3, upon approval of the
Executive Committee, the Company shall have the right to borrow funds sufficient
to finance the Cash Needs from third parties (i.e., Persons who are not
Affiliates of any Member) on such terms and conditions, including rate of
interest and maturity, as the Executive Committee deems advisable; provided,
however, that in lieu of borrowing from third parties, any one or more of the
Members may upon approval of the Executive Committee, from time to time make
advances to the Company to meet such requirements, provided that all Members are
given an opportunity to make such advances in accordance with their Percentage
Interests.  Any such advance made by a Member to the Company shall not
be considered a Capital Contribution, but shall constitute a debt of the Company
to the advancing Member, payable at such time and on such terms as the Executive
Committee and advancing Member may agree.  Payments made to an
advancing Member will be credited first to interest and then to
principal.  At the request of the Member making the advance, the
Company will execute a promissory note evidencing this debt.

     

    3.5. Wire
Transfers.»

     

      The
cash Capital Contributions required by Sections 3.1
and 3.2
and any Company Loans made pursuant to Section
3.3 shall be made by wire transfer of funds in dollars to a Company
account designated by the Managing Member and approved by the Executive
Committee.

     

    3.6. Failure
to Make Capital Contribution.»

     

      If
any Member (the "Non-Contributing
Member") fails to make an Additional Capital Contribution (or any portion
thereof) required by Section
3.2 (a "Failed
Contribution"), within 15 business days after receipt of a written
request therefor, the Representatives of the Member who contributed its
Additional Capital Contribution and who is not an Affiliate of the
Non-Contributing Member (the "Contributing
Member's Representatives") may exercise any or all of the following
remedies, but no others, on behalf of the Company:

     

    3.6.1. Set
Off.»

     

    
      	
               
      

            	
                Provide
      for the Company to set off the amount of the requested and unmade
      Additional Capital Contribution and/or the Indemnity referenced in Section 3.6.3
      against any amounts which would otherwise be payable by the Company to the
      Non-Contributing Member or its
Affiliates;

            

    

     

    3.6.2. Percentage
Interest Adjustment.»

     

    
      	
               
      

            	
                Offer
      the Contributing Member the opportunity to make an Additional Capital
      Contribution in an amount equal to the Failed Contribution and/or adjust
      the Percentage Interests and Final Sharing Ratios of the Members as
      provided in Section 3.7;
      or

            

    

     

    3.6.3. Seek
Indemnity.»

     

    
      	
               
      

            	
                In
      the event the Company allows the termination of or is forced to terminate
      an Acquisition Contract approved by the Executive Committee (as to
      acquisition terms, project underwriting and economic and legal diligence
      results) and such termination is due solely to a Non-Contributing Member's
      failure to make an Additional Capital Contribution (and there exists no
      other purchaser default, lender default or seller default thereunder and
      the other Member made its corresponding Additional Capital Contribution
      for same) and the Company incurs a loss of earnest money or other expense
      in connection with the termination of such Acquisition Contract, the
      Non-Contributing Member shall be liable to the Company and the Company may
      seek indemnification for such loss of earnest money or other expense and
      all related costs and expenses of the Company including, without
      limitation, reasonable expenses of the Company incurred in connection with
      due diligence and other reasonable costs related to determining the
      suitability of the property which is the subject of the Acquisition
      Contract, all reasonable costs incurred in connection with the negotiation
      of any letter of intent, term sheet and/or purchase agreement and related
      documents, financing fees (e.g., application fees, commitment fees, and
      costs in connection with any financing), and the costs of litigation, and
      reasonable attorneys’ fees and expenses, if any, incurred in connection
      with any such terminated Acquisition Contract.  The
      Non-Contributing Member shall be liable for and shall indemnify the
      Company and the Contributing Member for any and all other reasonable
      actual, out-of-pocket loss, cost, liability or expense, including
      reasonable attorneys fees, incurred by the Company or the Contributing
      Member as a result of the Non-Contributing Member’s failure to make such
      an Additional Capital Contribution pursuant to the circumstances described
      in the first sentence of this Section 3.6.3.  Notwithstanding
      the foregoing, such indemnity and reimbursement obligations shall not be
      in effect if the Member or any Affiliate of the Member who contributed its
      Additional Capital Contribution in connection with the foregoing
      consummates the transactions contemplated under such Acquisition Contract
      within 12 months after such termination for its own account, for the
      account of any Affiliate of such Member or as a partner or member in any
      other venture or entity.

            

    

     

    3.6.4. Separate
Acquisition.»

     

    
      	
               
      

            	
                Rather
      than terminate such an approved Acquisition Contract due solely to a
      Non-Contributing Member's failure to make an Additional Capital
      Contribution under the circumstances described in Section 3.6.3, the
      Contributing Member may require the Company to assign the Acquisition
      Contract, including all the benefits and obligations thereunder and in
      connection therewith, to the Contributing Member or its designee for the
      purposes of closing the Acquisition Contract for its or its designee's own
      account.  If such assignment is made, the Contributing Member
      and/or its designee shall reimburse the Company for any costs incurred by
      the Company or funds, such as earnest money, deposited by the Company
      pursuant to the terms of or in connection with such Acquisition Contract,
      less any damages incurred by the Contributing Member which were directly
      caused by the failure of the Non-Contributing Member to so contribute,
      such as contractual penalties or termination fees arising out of such
      failure.

            

    

     

    3.6.5. Return
Additional Capital Contribution.»

     

    
      	
               
      

            	
                The
      Contributing Member may request a return of any Additional Capital
      Contribution it has made to the Company in connection with a
      Non-Contributing Member's failure to make the required Additional Capital
      Contribution.

            

    

     

    3.6.6. Default
Loan.»

     

    
      	
               
      

            	
                Make
      a Default Loan equal to the amount of the additional capital requested of
      the Non-Contributing Member, which advance will be deemed to be a Capital
      Contribution by the Non-Contributing Member and will be considered a loan
      (a "Default
      Loan") from the Member making the advance (the "Lending
      Member") to the Non-Contributing Member, payable within 30 days
      after demand and bearing interest at the lesser of the maximum rate
      permitted by applicable law or the rate of 18% per annum.  If
      the Lending Member makes a Default Loan, upon written request by the
      Lending Member, the Non-Contributing Member will execute and deliver a
      promissory note payable to the Lending Member as evidence of that Default
      Loan; provided that the failure by the Non-Contributing Member to execute
      such a promissory note will not affect the validity of the Default Loan in
      question or the obligation of the Non-Contributing Member to repay the
      Default Loan in accordance with the terms of this Agreement.  If
      the Non-Contributing Member fails upon demand to repay with interest any
      Default Loan made by the Lending Member, the Lending Member will be
      granted a security interest in the Non-Contributing Member's interest in
      the Company to secure the Non-Contributing Member's obligation to repay
      upon demand any Default Loan made to the Non-Contributing Member by the
      Lending Member.  If a Lending Member has made a Default Loan,
      all amounts distributable to the Non-Contributing Member by virtue of its
      Interest or payable to the Non-Contributing Member under this Agreement
      will be paid by the Company or other Person on behalf of the
      Non-Contributing Member to the Lending Member in respect of accrued
      interest on and unpaid principal of any outstanding Default Loans made by
      the Lending Member (such payments to be applied first to accrued but
      unpaid interest on and then to outstanding principal of such Default
      Loans).  At such time as the Non-Contributing Member's
      obligations to the Lending Member under any Default Loan hereby secured
      are paid in full, distributions to the Non-Contributing Member will resume
      as set forth in this Agreement.  Any amounts paid on behalf of a
      Non-Contributing Member will be deemed to have first been distributed or
      paid to the Non-Contributing Member and then paid to the Lending
      Member.  Each Default Loan may be prepaid in whole or in part
      without penalty.

            

    

     

    

     

    3.6.7. Prohibition.»

     

    
      	
               
      

            	
                In
      the event the Company shall terminate an Acquisition Contract approved by
      the Executive Committee (as to acquisition terms, project underwriting and
      economic and legal diligence results) and such termination is due solely
      to the Non-Contributing Member's failure to make the required Additional
      Capital Contribution (and there exists no other purchaser default, lender
      default or seller default thereunder and the other Member made its
      corresponding Additional Capital Contribution for same), then the
      Non-Contributing Member and its Affiliates shall not be entitled and shall
      not acquire, directly or indirectly, all or any portion of the property
      that was the subject of such terminated Acquisition Contract for a period
      of twenty-four (24) months following the later of (i) termination of the
      Acquisition Contract or (ii) satisfying all indemnification Obligations
      under Section
      3.6.3 above.

            

    

     

    

    3.7. Percentage Interest and
Final Sharing Ratio Adjustment»

     

    .

     

    

    3.7.1. Percentage
Interest Adjustment.»

     

    
      	
               
      

            	
                If
      the Contributing Member's Representatives elect to make an Additional
      Capital Contribution and adjust the Percentage Interests as provided in
      Section
      3.6.2, effective as of the date the amount requested under Section
      3.2 was due, adjustment of each Member's Percentage Interest will
      be made pursuant to the following
formula:

            

    

     

    x + (y or yo)

        z
+ y

     

    where

     

    
      	
               
      

            	
              x
      =

            	
              aggregate
      Capital Contributions made by a Member including any Additional Capital
      Contribution made by a Contributing Member pursuant to Section 3.6.2
      on account of a Non-Contributing Member's Failed
    Contribution;

            

    

     

    
      	
               
      

            	
              y
      =

            	
              Additional
      Capital Contribution made by  Contributing Member pursuant to
      Section 3.6.2
      on account of a Non-Contributing Member's Failed Contribution (this is the
      deemed
      contribution provision of the penalty
  adjustment);

            

    

     

    
      	
               
      

            	
              yo
      =

            	
              -0-
      for a Non-Contributing Member; and

            

    

     

    
      	
               
      

            	
              z
      =

            	
              Aggregate
      Capital Contributions made by all Members including any Additional Capital
      Contribution made by a Contributing Member pursuant to Section 3.6.2
      on account of a Non-Contributing Member's Failed
    Contribution.

            

    

     

    Upon an
adjustment to Percentage Interests pursuant to this Section
3.7.1, the Capital Accounts of the Members shall be adjusted in
accordance with Treasury Regulation Section 1.704-1(b)(2)(iv) and based upon
Percentage Interests as adjusted.  An example of adjustments made
pursuant to this Section
3.7 is attached hereto as Exhibit
C and incorporated herein for all purposes.  The Executive
Committee will endeavor to promptly give each Member written notice of its
Percentage Interest, as adjusted, and its Capital Account balance each time an
adjustment occurs; provided, that failure to give such notice shall not in any
way affect or otherwise nullify any adjustment made pursuant to this Section 3.7.

     

    3.7.2. Final
Sharing Ratio Adjustment.»

     

    
      	
               
      

            	
                If
      the Contributing Member's Representatives elect to adjust the Percentage
      Interests as provided in Section
      3.6.2, effective as of the date the amount requested under Section
      3.2 was due, adjustment of each Member's Final Sharing Ratio will
      be made pursuant to the following
formula:

            

    

     

    a – b +
c

     

    where

     

    a
=           Member's
Final Sharing Ratio prior to adjustment

     

    b
=           Member's
Percentage Interest prior to adjustment; and

     

    c
=           Member's
Percentage Interest after adjustment

     

    An
example of adjustments made pursuant to this Section
3.7 is attached hereto as Exhibit C
and incorporated herein for all purposes.  The Executive Committee
will endeavor to promptly give each Member written notice of its Final Sharing
Ratio, as adjusted, each time an adjustment occurs; provided, that failure to
give such notice shall not in any way affect or otherwise nullify any adjustment
made pursuant to this Section 3.7.

     

    3.8. Intentionally
Omitted»

     

    .

     

    3.9. Intentionally
Omitted»

     

    .

     

    3.10.   Capital
Accounts.»

     

      A
separate Capital Account will be maintained for each Member in accordance with
Treasury Regulation Section 1.704-1(b)(2)(iv).  The Capital Account of
each Member will be determined and adjusted as follows.

     

    3.10.1. Capital
Account Credits.»

     

    
      	
               
      

            	
                Each
      Member's Capital Account will be credited
with:

            

    

     

    3.10.1.1. Cash.»

     

      Any
contributions of cash made by such Member to the capital of the Company plus the
Book Basis of any property contributed by such Member to the capital of the
Company (net of any liabilities to which such property is subject or which are
assumed by the Company);

     

    3.10.1.2. Income
and Gain.»

     

      The
Member's distributive share of Net Profits and all items of income and gain
allocated under Sections
4.1 and 4.2;
and

     

    3.10.1.3. Tax
Adjustments.»

     

      Any
other increases required by Treasury Regulation Section
1.704-1(b)(2)(iv).

     

    3.10.2. Capital
Account Debits.»

     

    
      	
               
      

            	
                Each
      Member's Capital Account will be debited
with:

            

    

     

    3.10.2.1. Cash.»

     

      Any
distributions of cash made from the Company to such Member plus the Fair Market
Value of any property distributed in kind to such Member (net of any liabilities
to which such property is subject or which are assumed by such
Member);

     

    3.10.2.2. Loss and
Deduction.»

     

      The
Member's distributive share of Net Losses and all items of loss and deduction
allocated under Sections 4.1
and 4.2;
and

     

    3.10.2.3. Tax
Adjustments.»

     

      Any
other decreases required by Treasury Regulation Section
1.704-1(b)(2)(iv).

     

    The
provisions of this Section
3.10 relating to the maintenance of Capital Accounts are intended to
comply with Section 704(b) of the Code and the Treasury Regulations promulgated
thereunder and will be interpreted and applied in a manner consistent with those
provisions.  The Executive Committee shall have the authority to
determine all questions relating to the maintenance of Members' Capital
Accounts, and the Executive Committee may direct the Managing Member to modify
the manner in which the Capital Accounts are maintained under this Section
3.10 in order to comply with the provisions of Treasury Regulation
Section 1.704-1(b) and any other applicable provisions of the Code or Treasury
Regulations in order to cause Member Capital Accounts to be maintained in
compliance with the provisions of the Code and Treasury
Regulations.  The Executive Committee shall determine whether any
elective adjustments to Capital Accounts permitted under Treasury Regulation
Section 1.704-1(b)(2)(iv) shall be made; provided that in the event Additional
Capital Contributions are made and followed by an adjustment to Percentage
Interests pursuant to Section
3.7, the Capital Accounts of the Members shall be adjusted in accordance
with Treasury Regulation Section 1.704-1(b)(2)(iv) so that the Capital Account
balances are in the ratios of the Members' Percentage Interests as adjusted
provided, that there shall be no decrease in the then existing, prior to the
adjustment, Capital Account balance of a Member as a result of any such
adjustment to Percentage Interests, and that no capital shift shall
occur.

     

    3.11. Interest
On and Return of Capital.»

     

      No
Member shall be entitled to any interest on its Capital Account or on his
Capital Contributions except to the extent expressly provided in this Agreement,
and no Member shall have the right to demand or to receive the return of all or
any part of his Capital Account in the Company.  No Member shall have
the right to demand or receive property other than cash in return for the
contribution of such Member to the Company.

     

    3.12. No
Further Capital Contribution.»

     

      Except
as expressly provided in this Agreement or with the prior written consent of all
the Members, no Member shall be required or entitled to contribute any other or
further capital to the Company, nor shall any Member be required or entitled to
loan any funds to the Company.

     

    3.13. Waiver of
Right of Partition and Dissolution.»

     

      No
Member has any interest in specific Company property.  The interests
of all Members in the Company are, for all purposes, personal property and each
of the Members irrevocably waives any right or power to cause the appointment of
a receiver for the assets of the Company, to compel any sale of all or any
portion of the assets of the Company pursuant to any applicable law or laws, or
to file a complaint or to institute any proceeding at law or in equity to cause
the termination or dissolution of the Company except as expressly provided for
in this Agreement.

     

    ARTICLE
4

     

    

     

    PROFITS AND
LOSSES

     

    4.1. Allocation of Profits and
Losses»

     

    .  After
giving effect to the special allocations set forth in Section
4.2, for any taxable year of the Company or other allocation period, Net
Profits or Net Losses for such year or other allocation period shall be
allocated, insofar as possible, so that, following all allocations pursuant to
Section
4.2 for such fiscal year or other allocation period and the allocations
pursuant to this Section
4.1, each Member’s Capital Account balance shall be equal to the result
(be it positive, negative or zero) of subtracting (i) the sum of (x) the amount
which such Member is unconditionally obligated to contribute to the Company in
the future, (y) such Member’s share of the Member Minimum Gain, and (z) such
Member’s share of the Company Minimum Gain, from (ii) such Member’s Liquidating
Amount at the end of such fiscal year or other allocation period.

     

    4.2. Special
Allocations»

     

    .  The
following special allocations shall, except as otherwise provided, be made in
the following order:

     

    4.2.1. Minimum Gain
Chargeback»

     

    
      	
               
      

            	
              .  Notwithstanding
      any other provision of this Agreement, if there is a net decrease in
      Company Minimum Gain or in any Member Minimum Gain during any taxable year
      or other period, prior to any other allocation pursuant hereto, the
      Members shall be specially allocated items of Profit for such year (and,
      if necessary, subsequent years) in an amount and manner required by
      Treasury Regulation Section 1.704-2(f) or 1.704-2(i)(4). The items to be
      so allocated shall be determined in accordance with Treasury Regulation
      Section 1.704-2.  This Section 4.2.1
      is intended to comply with the minimum gain chargeback requirements of
      Treasury Regulation Section 1.704-2(f) or 1.704-2(i)(4), will be
      interpreted consistently with the Treasury Regulations and will be subject
      to all exceptions provided therein.

            

    

     

    4.2.2. Qualified Income
Offset»

     

    
      	
               
      

            	
              .  Any
      Member who unexpectedly receives an adjustment, allocation or distribution
      described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) which causes or
      increases an Adjusted Capital Account Deficit shall be allocated items of
      income or gain in an amount and manner sufficient to eliminate, to the
      extent required by such Treasury Regulation, the Adjusted Capital Account
      Deficit of the Member as quickly as possible.  This Section 4.2.2
      is intended to constitute a "qualified income offset" within the meaning
      of Treasury Regulation Section 1.704-1(b)(2)(ii)(d), will be interpreted
      consistently with the Treasury Regulations and will be subject to all
      exceptions provided therein.

            

    

     

    4.2.3. Nonrecourse
Deductions»

     

    
      	
               
      

            	
              .  Nonrecourse
      Deductions for any taxable year or other period will be specially
      allocated among the Members pro rata in proportion to their respective
      Percentage Interests in the
Company.

            

    

     

    4.2.4. Member Nonrecourse
Deductions»

     

    
      	
               
      

            	
              .  Any
      Member Nonrecourse Deductions for any taxable year or other period will be
      allocated to the Member who bears the economic risk of loss with respect
      to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions
      are attributable in accordance with principles under Treasury Regulation
      Section 1.704-2(i).

            

    

     

    4.2.5. Code Section 754
Adjustments»

     

    
      	
               
      

            	
              .  To
      the extent an adjustment to the adjusted tax basis of any Company asset
      under Sections 734(b) or 743(b) of the Code is required to be taken into
      account in determining Capital Accounts under Treasury Regulation Section
      1.704-1(b)(2)(iv)(m), the amount of the
      adjustment to the Capital Accounts will be treated as an item of gain (if
      the adjustment increases the basis of the asset) or loss (if the
      adjustment decreases the basis), and the gain or loss will be specially
      allocated to the Members in a manner consistent with the manner in which
      their Capital Accounts are required to be adjusted under Treasury
      Regulation Section 1.704-1(b)(2)(iv)(m).

            

    

     

    4.2.6. Loss Limitation»

     

    
      	
               
      

            	
              .  The
      Net Losses allocated pursuant to Section
      4.1 hereof shall not exceed the maximum amount of Net Losses that
      can be so allocated without causing any Member to have an Adjusted Capital
      Account Deficit at the end of any fiscal year or other allocation
      period.  In the event that some, but not all, of the Members
      would have Adjusted Capital Account Deficits as a consequence of an
      allocation of Net Losses pursuant to Section
      4.1 hereof, the limitation set forth in the preceding sentence
      shall be applied on a Member-by-Member basis so as to allocate the maximum
      permissible Net Losses to each Member under Regulations Section
      1.704-1(b)(2)(ii)(d).  All Net
      Losses in excess of the limitation set forth in this Section
      4.2.6 shall be allocated to the Members in proportion to their
      respective positive Capital Account balances, if any, and thereafter to
      the Members in accordance with their interests in the
    Company.

            

    

     

    4.3. Compliance With Section
704(c)»

     

    .  In
accordance with Section 704(c) of the Code and the applicable Treasury
Regulations thereunder, income, gain, loss and deduction with respect to any
Company property for which its adjusted tax basis differs from its Book Basis
will, solely for tax purposes, be allocated among the Members so as to take
account of any variation between the adjusted tax basis of such property to the
Company for federal income tax purposes and the Book Basis of such
property.  Any elections or other decisions relating to allocations
under this Section
4.3 will be made in any manner which the Executive Committee shall
determine is consistent with Section 704(c) of the Code and the Treasury
Regulations promulgated thereunder and reasonably reflects the purpose and
intention of this Agreement.  Allocations under this Section
4.3 are solely for purposes of federal, state and local taxes and will
not affect, or in any way be taken into account in computing, any Member's
Capital Account or share of Profits, Losses or other items or distributions
under any provision of this Agreement.

     

    4.4. Intent of
Allocations»

     

    .  The
parties intend that the foregoing allocation provisions of this ARTICLE
4 shall produce final Capital Account balances of the Members that will
permit liquidating distributions under Section
11.3 to be made in a manner identical to the order of priorities set
forth in Section
5.1.  To the extent that the allocation provisions of this
ARTICLE
4 would fail to produce such final Capital Account balances, (a) such
provisions shall be amended by the Executive Committee if and to the extent
necessary to produce such result, and (b) Net Profits and Net Losses of the
Company for prior open years (or items of gross income, gain, loss and deduction
of the Company for such years) shall be reallocated by the Executive Committee
among the Members to the extent it is not possible to achieve such result with
allocations of items of income (including gross income and gain), deduction and
loss for the current year and future years.  This Section shall
control notwithstanding any other provision of this Agreement or the
reallocation or adjustment of taxable income, taxable loss or items thereof by
the Internal Revenue Service or any other taxing authority.

     

    4.5. Member
Acknowledgment»

     

    .  The
Company's income, gain, loss, deduction and other items determined for income
tax purposes shall be allocated to the Members in the same proportions as the
corresponding "book" items are allocated under the provisions of this ARTICLE
4.  The Members agree to be bound by the provisions of this
ARTICLE
4 in reporting their shares of Company income, gain, loss, deduction and
other items for income tax purposes.

     

    ARTICLE
5

     

    

     

    DISTRIBUTIONS

     

    5.1. Distributions»

     

    .  Subject
to ARTICLE
11 and Section
3.3, unless otherwise approved by the Executive Committee, the Managing
Member shall distribute such amount of Net Cash Flow as determined pursuant to
this Section
5.1 at the times set forth in this Agreement as follows:

     

    (i) First, to
the Members who advanced Company Loans, pro rata, in proportion to the aggregate
amounts outstanding as of such distribution, until all such Company Loans are
paid in full;

     

    (ii) Second,
to the Members pro rata
in proportion to their respective Percentage Interests on the date of
distribution until such time as the Members shall have received cumulative
distributions under this Section
5.1(ii) equal to the Target Amount; and

     

    (iii) Thereafter,
to the Members pro rata
in proportion to their respective Final Sharing Ratios.

     

    Any
distribution under this Section
5.1 will be subject to the right of setoff provided in Section 3.6.1,
and a return of Additional Capital Contribution to a Contributing Member
pursuant to Section 3.6.5
shall be made solely to such Contributing Member rather than pursuant to Section 5.1(i)
or (ii).

     

    After
consultation with the Executive Committee, the Managing Member shall set the
appropriate distribution to be made each month to each Member, taking into
account expected cash requirements. The Executive Committee may vote to change
this distribution as required.

     

    5.2. Timing»

     

    .  Unless
otherwise approved by the Executive Committee, Net Cash Flow shall be
distributed monthly during the term of the Company and except upon liquidation,
all distributions shall be in cash or marketable securities.

     

    5.3. Distribution Limitation
Under Act; Reserves»

     

    .  Notwithstanding
anything in this Agreement to the contrary, the Company shall not be required to
make any distribution that would not be permissible under the Act or that the
Executive Committee, in its commercially reasonable judgment, determines is
necessary to meet current or future Company costs and
obligations.  Any amounts so reserved shall be invested in Permitted
Investments pending the lawful distribution of such amounts or the use of such
amounts to pay Company costs and other obligations of the
Company.  Such reserves shall be released in such amounts and at such
times as the Executive Committee determines.

     

    ARTICLE
6

     

    

     

    MANAGEMENT

     

    6.1. Executive
Committee»

     

    .  Except
as otherwise expressly provided in this Agreement, the business and affairs of
the Company shall be vested in and controlled by a committee of persons
appointed in writing pursuant to Section
6.2 (the "Executive
Committee").  Each person appointed by a Member to the
Executive Committee shall act at the exclusive direction of, be the agent of and
shall be free to represent the views and positions of such appointing
Member.  No member of the Executive Committee shall have any fiduciary
duties to any other member of the Executive Committee or to any other Member of
the Company or any third party.  The Executive Committee shall have
responsibility for establishing the policies and operating procedures with
respect to the business and affairs of the Company and for making all decisions
as to all matters which the Company has authority to perform (other than
decisions in connection with the day-to-day operations and management of each
Property which shall be reserved to the Managing Member to the extent set forth
in Section
6.6.2), as fully as if all the Members were themselves making such
decisions in lieu thereof.  All decisions made with respect to the
management and control of the Company and approved by the Executive Committee
(except for such decisions which by the express terms of this Agreement require
the approval of all Members) shall be binding on the Company and all
Members.  The Executive Committee, in its sole discretion, may
delegate certain functions and duties to the Managing Member.  The
Managing Member shall be responsible for performing, or for causing to be
performed, all functions and duties delegated or otherwise as determined by the
Executive Committee including, without limitation, the duties described in Section
6.6.

     

    6.2. Members of the Executive
Committee»

     

    .

     

    6.2.1. Membership»

     

    
      	
               
      

            	
              .  The
      Executive Committee shall initially consist of four (4) members, two (2)
      of which shall be appointed by Thackeray and two (2) of which shall be
      appointed by the Managing Member.  The initial members of the
      Executive Committee appointed by Thackeray will be Anthony W. Dona and
      Robert H. Bennett.  The initial members of the Executive
      Committee appointed by the Managing Member will be H. Eric Bolton, Jr. and
      Timothy P. Argo_.  Each Member may, by written notice to the
      other Member, remove any person appointed to the Executive Committee by
      such Member and appoint a substitute therefor; provided, however, that any
      new person appointed to the Executive Committee by any Member must be
      either a partner, member, officer, director or employee of such Member or
      of an Affiliate of such Member, or be approved by the members of the
      Executive Committee appointed by the other Member, such approval not to be
      unreasonably withheld, conditioned or delayed.  Any Member may,
      by written instrument and by delivering written notice to the members of
      the Executive Committee, delegate any or all of the duties of one or more
      of its representatives on the Executive Committee to (x) another of its
      representatives on the Executive Committee or to an alternate member named
      in such notice or (y)  any employee of such Member or any of its
      Affiliates (and such delegate shall also be an agent of and operate at the
      sole discretion of the appointing Member), and any decisions or actions
      taken by such delegate shall be fully binding upon the Company and the
      Members as if taken by the member of the Executive Committee for whom such
      delegate was acting.

            

    

     

    6.2.2. Regular Meetings»

     

    
      	
               
      

            	
              .  Regular
      meetings of the Executive Committee shall be held at such times and places
      as shall be designated from time to time by resolution of a majority of
      members of the Executive Committee, provided the Executive Committee shall
      meet no less frequently than quarterly and provided such regular meetings
      of the Executive Committee shall be as often as necessary or desirable to
      carry out its management functions.  Regular meetings of the
      Executive Committee may be convened
  telephonically.

            

    

     

    6.2.3. Special Meetings»

     

    
      	
               
      

            	
              .  Special
      meetings of the Executive Committee may be called by or at the request of
      any Member.  The person or persons authorized to call the
      special meeting of the Executive Committee may select any reasonable place
      as the place for holding the special meeting of the Executive Committee or
      such meeting may be convened telephonically with any member of the
      Executive Committee electing to participate electronically.  In
      addition, special meetings of the Executive Committee shall be held on
      October 1, 2009 and March 1, 2010, and/or such other dates as agreed by
      the Executive Committee, at which times the Executive Committee shall
      decide whether to make acquisitions going forward, with a unanimous vote
      of the Executive Committee being required to move forward on any
      additional or future acquisitions.  Upon any such decision to
      not make any acquisitions going forward or upon any failure of the
      Executive Committee to unanimously approve a decision to make acquisitions
      going forward, (a) the exclusivity provisions of Section
      13.1 and 13.2
      of this Agreement shall no longer be of any force or effect and (b) the
      Members shall not be required to make any Additional Capital Contributions
      under this Agreement relating to the acquisition or pursuit of any
      acquisitions going forward.  Notwithstanding the provisions of
      Sections 13.1 and 13.2 herein or any other provisions of this Agreement,
      in the event the Executive Committee decides not to approve additional
      acquisitions, the Member whose appointed members of the Executive
      Committee voted to approve additional acquisitions shall have the right to
      close on any property acquisitions in its separate
    capacity.

            

    

     

    6.2.4. Notice of
Meetings»

     

    
      	
               
      

            	
              .  Notice
      of any meeting of the Executive Committee shall be given no fewer than
      five business days and no more than 20 business days prior to the date of
      the meeting.  Notices shall be delivered in the manner set forth
      in Section 13.7
      hereof.  The attendance of a member of the Executive Committee
      at a meeting of the Executive Committee shall constitute a waiver of
      notice of such meeting, except where a member of the Executive Committee
      attends a meeting for the express purpose of objecting to the transaction
      of any business because the meeting is not properly called or
      convened.  Neither the business to be transacted at, nor the
      purpose of, any regular or special meeting of the Executive Committee need
      be specified in the notice or waiver of notice of such
      meeting.  Notice of any meeting may be waived by written
      instrument signed by one representative of each member of the Executive
      Committee.

            

    

     

    6.2.5. Quorum»

     

    
      	
               
      

            	
              .  All
      of the members of the Executive Committee shall constitute a quorum for
      transaction of business at any meeting of the Executive Committee;
      provided that if less than all members of the Executive Committee are
      present at said meeting, a majority of the members of the Executive
      Committee present may adjourn the meeting at any time without further
      notice.  For purposes of this Section
      6.2.5, a member of the Executive Committee shall be deemed present
      to the extent a representative of such member who holds the voting proxy
      of such member is present.  Voting proxies must be written, but
      such written proxy need only name the proxy and need not contain formal
      authorization for specific actions.

            

    

     

    6.2.6. Telephone
Meetings»

     

    
      	
               
      

            	
              .  The
      members of the Executive Committee may participate in and act at all
      meetings of the Executive Committee through the use of a conference
      telephone or other communications equipment by means of which all persons
      participating in the meeting can hear each other.  Participation
      in such meetings shall constitute attendance in person at the meeting of
      the person or persons so
participating.

            

    

     

    6.2.7. Minutes»

     

    
      	
               
      

            	
              .  A
      written record of all meetings of the Executive Committee and all
      decisions made by it shall be made by the Managing Member, as Secretary of
      the Executive Committee, and kept in the records of the Company and shall
      be delivered to each member of the Executive Committee within ten (10)
      business days after each meeting to be initialed or signed by each member
      of the Executive Committee; provided, however, that a member's failure to
      initial or sign such minutes shall not affect or otherwise invalidate a
      previous properly approved decision of the Executive
      Committee.

            

    

     

    6.2.8. No Compensation»

     

    
      	
               
      

            	
              .  No
      member thereof shall be entitled to receive any salary or any remuneration
      or expense reimbursement from the Company for his services as a member of
      the Executive Committee.

            

    

     

    6.2.9. Appointment of
Agents»

     

    
      	
               
      

            	
              .  The
      Executive Committee may, by resolution, designate one or more individuals
      as officers, employees or agents of the Company.  No officer,
      employee or agent need be a Member of the Company.  Each
      officer, employee or agent shall have the authority and shall perform the
      duties as designated by the Executive Committee from time to
      time.  Any officer, employee or agent appointed by the Executive
      Committee may be removed by the Executive Committee whenever in their
      judgment the best interests of the Company would be
  served.

            

    

     

    6.2.10. Engagement of
Professionals»

     

    
      	
               
      

            	
              .  The
      Executive Committee may, on behalf of the Company, employ, engage or
      retain any Persons (including any Affiliate of any Member) to act as
      brokers, accountants, attorneys, engineers or in such other capacities as
      the Executive Committee may determine are necessary or desirable in
      connection with the Company's business, and the Managing Member and the
      members of the Executive Committee shall be entitled to rely in good faith
      upon the recommendations, reports and advice given them by any such
      Persons in the course of their professional
  engagement.

            

    

     

    6.3. Major Decisions»

     

    .  The
Executive Committee shall have the sole authority to authorize and approve any
and all material matters pertaining to the Company's business by a vote of a
majority in number of the members of the Executive Committee, such votes being
recorded by email confirmation to the Managing Member if so requested by any
member of the Executive Committee. Upon approval of the Executive Committee,
Thackeray or MAALP may delegate its vote to their respective designees. The
Executive Committee shall approve including, without limitation, the following
matters (each a "Major
Decision"):

     

    6.3.1. Financings»

     

    
      	
               
      

            	
              .  Any
      financing, refinancing or securitization of any Property or any Project
      Subsidiary and the use of any proceeds thereof, including, without
      limitation, construction, interim and permanent financing, and any other
      financing or refinancing of the operations of the Company and the
      execution and delivery of any documents, agreements or instruments
      evidencing, securing or relating to any such financing; provided no
      guarantees or credit enhancements shall be required from any Member or its
      Affiliates without such party’s consent (except that MAALP is willing to
      provide its guarantee of certain non-recourse carve-outs customarily
      required by lenders for such financings of similar Properties) and such
      financings are non-recourse to the
Members;

            

    

     

    6.3.2. Budget»

     

    
      	
               
      

            	
              .  The
      approval of any Budget (or any other budget with respect to a Property or
      Project Subsidiary) and any amendments or modifications thereto (other
      than variances that are not considered material under Section
      6.3.3);

            

    

     

    6.3.3. Operating
Variances»

     

    
      	
               
      

            	
              .  The
      incurring of any expense or incurring of any obligation by or on behalf of
      the Company that varies materially from the Budget and Operating Plans or
      entering into (or amending or modifying) any agreement which was not
      specifically included in the Budget and Operating Plans (for purposes of
      this Section
      6.3.3, such a material variance shall be, for each Property,
      specifically and expressly established pursuant to the Property Management
      Agreement for such Property);

            

    

     

    6.3.4. Distributions»

     

    
      	
               
      

            	
              .  The
      determination of the amount and the timing (if other than in accordance
      with Sections
      5.1 and 5.2) of distributions to
Members;

            

    

     

    6.3.5. Possession or Use of Company
Property»

     

    
      	
               
      

            	
              .  The
      possession or use of a Property, a Project Subsidiary or any other Company
      asset for other than Company
purposes;

            

    

     

    6.3.6. Reserves»

     

    
      	
               
      

            	
              .  Any
      decision to establish reserves, other than as required by lenders pursuant
      to properly approved financings or in accordance with any Budget and
      Operating Plans approved by the Executive Committee pursuant to this
      Agreement;

            

    

     

    6.3.7. Capital Calls»

     

    
      	
               
      

            	
              .  Requests
      for Additional Capital Contributions in accordance with Section
      3.2;

            

    

     

    6.3.8. Company Loans»

     

    
      	
               
      

            	
              .  Requests
      for Company Loans in accordance with Section
      3.3;

            

    

     

    6.3.9. Sales»

     

    
      	
               
      

            	
              .  Any
      sale, transfer or other disposition of all or any part of a Property or a
      Project Subsidiary, except personal property which is being sold and
      replaced in the ordinary course of
business;

            

    

     

    6.3.10. Acquisitions»

     

    
      	
               
      

            	
              .  The
      making of any decision to (i) spend any initial expenses (including legal)
      prior to entering into a contract; (ii) enter into a contract to acquire
      any property; (iii) following the execution of a contract, approve a
      budget for additional third party expenses (including legal); (iv) commit
      to make or increase any refundable or non-refundable deposit in connection
      with the acquisition of any property; (v) approve the execution and
      delivery of any agreement, contract, binding letter of intent or other
      document or instrument (an "Acquisition Contract")
      to purchase any property; (vi) take any material action required or
      permitted to be taken under an Acquisition Contract or the decision
      not  to timely perform any material action required to be taken
      under an Acquisition Contract (including, without limitation, all action
      necessary to close or proceed to close the purchase of any property
      pursuant to an Acquisition Contract); (vii) make any assignment (in whole
      or in part) of any Acquisition Contract; (viii) take any action required
      or permitted to be taken with respect to the assignment of an Acquisition
      Contract (including, without limitation, approval of proposed third party
      costs in connection with any due diligence and closing costs, and approval
      of structural/engineering and environmental reports, in each case prior to
      closing); (ix) or terminate any Acquisition Contract; provided that the
      Managing Member may execute and deliver an Acquisition Contract to
      purchase any Property and pay a deposit with respect thereto so long as
      such Acquisition Contract is expressly conditioned on approval of the
      Executive Committee and such deposit is fully refundable if Executive
      Committee approval is not obtained; and provided, further, that to the
      extent the Executive Committee has previously approved the acquisition of
      a property and subsequently some but not all of the members of the
      Executive Committee decide not to approve the closing of such property
      acquisition, the Member whose appointed Executive Committee members
      actually approve of such closing shall have the right to close on such
      property acquisition in its separate capacity, provided that such Member
      reimburses the Company for any costs expended by the Company or earnest
      money deposited in connection with the acquisition of such property and
      provided, further, that to the extent the Executive Committee has
      previously approved the acquisition of a property, the Managing Member may
      execute and deliver an assignment (in whole or in part) of any Acquisition
      Contract to a Project Subsidiary;

            

    

     

    6.3.11. Property
Development»

     

    
      	
               
      

            	
              .  The
      making of any decision to develop or construct any improvements upon any
      Property or any property of the Company, the execution and delivery of any
      document, agreement or instrument implementing, evidencing or relating to
      any such decision or action (including, without limitation, any
      development or construction contract or any document relating to the
      financing thereof, and the amount of any development or construction
      management fee and the parties to share in such fees, and including any
      architectural or engineering agreement and material service contracts),
      and the expenditure of any funds in connection with any such
      activity;

            

    

     

    6.3.12. Improvements»

     

    
      	
               
      

            	
              .
      Any restructuring, improvement, rehabilitation, alteration, or
      construction of any Property or any property of the Company; any repair to
      any Property in excess of amounts expressly set forth in the approved
      Budget and Operating Plans for that
Property;

            

    

     

    6.3.13. Capital
Expenditures»

     

    
      	
               
      

            	
              .  Any
      capital expenditures in an amount in excess of amounts expressly set forth
      in the Budget and Operating Plans for that Property or Project Subsidiary
      which has been properly approved by the Executive
    Committee;

            

    

     

    6.3.14. Loans and
Guarantees»

     

    
      	
               
      

            	
              .  The
      Company's incurrence of any liabilities or obligations with regard to any
      debt or loan guaranties, letters of credit, hedge or hedging agreements,
      completion guaranties or any contractual liability in excess of amounts
      set forth in the then current Budget (or any current budget with respect
      to a Property or Project Subsidiary) which has been properly approved by
      the Executive Committee, or any similar contingent liabilities or lending
      money to any Persons;

            

    

     

    6.3.15. Contracts»

     

    
      	
               
      

            	
              .  The
      entering into, amendment, modification, extension or termination of any
      construction contract, development agreement, construction management or
      development management agreement, or property management or leasing
      agreement or any other material agreement with regard to the Company or
      the Property; notwithstanding the foregoing, the Managing Member may cause
      the Company to enter into contracts which are specifically and expressly
      permitted pursuant to the Property Management Agreement for such
      Property.

            

    

     

    6.3.16. Subsidiary
Entities»

     

    
      	
               
      

            	
              .  The
      making of any decision and the implementing of any decision to form a
      Project Subsidiary or any other subsidiary entity and to assign, transfer
      or convey all or any portion of a Property or any other asset or property
      or the rights to acquire a Property or any other asset or property to the
      Project Subsidiary of other subsidiary entity and the execution and
      delivery of any documents, agreements or instruments implementing,
      evidencing or relating to any such decision or action (including any
      organizational documents relating to any Project Subsidiary or other
      subsidiary entity);

            

    

     

    6.3.17. Professional
Services»

     

    
      	
               
      

            	
              .  Approval
      of the engagement of the services of accountants, auditors, attorneys,
      brokers, engineers or other similar type of service professionals on
      behalf of the Company;

            

    

     

    6.3.18. Non-Standard
Leases»

     

    
      	
               
      

            	
              .  Any
      lease of any space within a Property or any amendment or modification
      thereto, which is not in accordance with the leasing guidelines included
      in the Budget and Operating Plans, or any termination thereof (other than
      termination of residential leases in the ordinary course of
      business);

            

    

     

    6.3.19. Sales or Placement
Agents»

     

    
      	
               
      

            	
              .  The
      engagement of any sales or placement agent or broker not expressly
      permitted hereunder for the disposition, financing or refinancing of a
      Property;

            

    

     

    6.3.20. Overhead»

     

    
      	
               
      

            	
              .  Determining
      the amount of overhead and other reimbursements or any salary,
      compensation or other remuneration payable to any Member, any member of
      the Executive Committee or any of their Affiliates pursuant to the terms
      hereof or any separate agreement between the Company and a Member, any
      member of the Executive Committee or any of their
    Affiliates;

            

    

     

    6.3.21. Affiliate
Transactions»

     

    
      	
               
      

            	
              .  The
      entering into or consummation of any transaction or arrangement with any
      Member or any Affiliate of any Member, or any other transaction involving
      an actual or potential conflict of interest, other than as specifically
      provided for in this Agreement and the giving, making or enforcement of
      any rights, approvals, consents, elections or other decisions with respect
      to any such transaction, agreement or arrangement; the Members acknowledge
      that (i) the Management Agreement as it applies to each Project Subsidiary
      in the presently-agreed form and (ii) the existing engagement by the
      Company of Memphis Commercial Group pursuant to the basic economic terms
      as attached to this Agreement as Exhibit H (the "MCG
      Engagement Terms"), are the only such arrangements which are
      pre-approved by the Members.

            

    

     

    6.3.22. Legal
Proceedings»

     

    
      	
               
      

            	
              .  The
      institution of any legal proceedings in the name of the Company,
      settlement of any legal proceedings against the Company and confession of
      any judgment against the Company or any property of the Company (other
      than eviction and termination proceedings in respect of tenant leases and
      other nonmaterial legal proceedings for the collection of amounts due and
      owing to the Company from third parties and tenants undertaken in the
      usual and normal course of
business);

            

    

     

    6.3.23. Bankruptcy»

     

    
      	
               
      

            	
              .  The
      filing of any voluntary petition in bankruptcy on behalf of the
      Company,  the consenting to the filing of any involuntary
      petition in bankruptcy against the Company,  the filing of any
      petition seeking, or the consenting to, reorganization or relief under any
      applicable federal or state law relating to bankruptcy or
      insolvency,  the consenting to the appointment of a receiver,
      liquidator, assignee, trustee, sequestrator (or other similar official) of
      the Company or a substantial part of its property,  the making
      of any assignment for the benefit of creditors,  the admission
      in writing of the Company's inability to pay its debts generally as they
      become due or  the taking of any action by the Company in
      furtherance of any such action;

            

    

     

    6.3.24. Merger»

     

    
      	
               
      

            	
              .  The
      entering into of any agreement or contract for, or the consummation of,
      any merger, consolidation, recapitalization, reorganization,
      reconstitution or any similar rearrangement of the Company, any Project
      Subsidiary, any Property or any of the Company's or any Project
      Subsidiary's equity, assets or
liabilities;

            

    

     

    6.3.25. Tax Elections»

     

    
      	
               
      

            	
              .  The
      making of all material tax elections, determinations and other decisions
      under the Code and any decision to settle or compromise any matter raised
      by the Internal Revenue Service;

            

    

     

    6.3.26. Dissolution or Distributions
In Kind»

     

    
      	
               
      

            	
              .  The
      making of any decision to dissolve, wind-up and terminate the Company or
      to distribute any property of the Company to the Members in
      kind;

            

    

     

    6.3.27. Company Term; Investment
Period»

     

    
      	
               
      

            	
              .  The
      making of any decision to extend the term of the Company or extend the
      Investment Period or invest in Property that does not satisfy the
      Investment Criteria as provided in Section
      2.7;

            

    

     

    6.3.28. Causing Project Subsidiary
to Undertake Major Decisions»

     

    
      	
               
      

            	
              .  Causing
      or consenting to any Project Subsidiary undertaking any action that if
      undertaken by the Company would be a Major Decision;
  and

            

    

     

    6.3.29. Amendment»

     

    
      	
               
      

            	
              .  The
      making of any amendments or modifications of or supplements to this
      Agreement or any instrument, agreement or other document otherwise
      requiring the consent of the Executive
  Committee;

            

    

     

    6.3.30. Restoration»

     

    
      	
               
      

            	
              .  Any
      decision not to rebuild or restore a Property following any casualty or
      condemnation;

            

    

     

    6.3.31. Insurance»

     

    
      	
               
      

            	
              .  Any
      decision to obtain, cancel, suspend or materially modify the insurance
      coverage for the Company, a Property, a Project Subsidiary or any other
      Company asset;

            

    

     

    6.3.32. Permitted
Investments»

     

    
      	
               
      

            	
              .

            	
              The
      making of any decision to invest in any Permitted Investments or to change
      or modify any investment in any Permitted
  Investments;

            

    

     

    6.3.33. Memphis Commercial
Group»

     

    
      	
               
      

            	
              .  The
      amendment or modification of the MCG Engagement Terms in any manner that
      is materially and adversely different from those contained in Exhibit
      H;

            

    

     

    6.3.34. Others»

     

    
      	
               
      

            	
              .  Any
      other act for which this Agreement requires the vote, approval or consent
      of the Executive Committee or the approval, determination, consent,
      adoption, ratification, or any other action expressly reserved to the
      Executive Committee under this Agreement, including, without limitation,
      any modification, amendment, or renewal of any matter previously requiring
      the approval of the Executive Committee, or any act that
      constitutes a default under a Project Subsidiary loan;
  and

            

    

     

    6.3.35. Permitted
Expenditures»

     

    
      	
               
      

            	
              .  Notwithstanding
      anything to the contrary in this Section
      6.3, the Property Manager under any approved Property Management
      Agreement shall have the authority to make all expenditures and to pay all
      costs and expenses as specifically provided in the approved Budget and
      Operating Plans, and as otherwise described in the approved Property
      Management Agreements (including variances of budget line items) without
      further approval of the Executive
Committee.

            

    

     

    6.4. Managing Member
Powers»

     

    .  Subject
to Section 6.3
and the other terms of this Agreement and the limitations imposed by law, the
Managing Member shall have all of the same powers as a general partner of a
general partnership under the laws of the State of Delaware.

     

    6.5. Actions Requiring Unanimous
Consent»

     

    .  Notwithstanding
the powers of the Managing Member set forth in Section
6.4, or the Executive Committee set forth in Sections
6.1, 6.2,
and 6.3
without the consent of all of the Members, neither the Managing Member nor the
Executive Committee shall have the right or power to do any of the
following:

     

    6.5.1. Contravene
Agreement»

     

    
      	
               
      

            	
              .  Perform
      any act in contravention of this Agreement, or any amendment
      hereto;

            

    

     

    6.5.2. Impossibility of
Business»

     

    
      	
               
      

            	
              .  Perform
      any act, other than to sell, lease, exchange, transfer, mortgage or convey
      all or substantially all of the Company's assets with the approval of the
      Executive Committee or as provided in ARTICLE
      11, which would make it impossible to carry on the ordinary
      business of the Company; or

            

    

     

    6.5.3. Guarantee Non-Investment
Entity Debts»

     

    
      	
               
      

            	
              .  Guarantee
      debts or obligations of any Person.

            

    

     

    6.5.4. Employees»

     

    
      	
               
      

            	
              .  Hire
      any employees of the Company

            

    

     

    6.6. Managing Member
Duties

     

    6.6.1. General Duties»

     

    
      	
               
      

            	
              .  The
      Managing Member shall perform and carry out the day-to-day business of the
      Company and the duties and other actions reasonably necessary to implement
      the Major Decisions and the Budget and Operating Plans, pursuant to the
      terms of this Agreement, in each case in accordance with MAALP's normal
      standards and procedures in connection with maintaining and operating a
      Property; provided that such standards and procedures shall be at or above
      the standard of care required of prudent and experienced third-party asset
      managers performing similar functions for institutional owners, or such
      other guidelines as shall reasonably be adopted by the Executive
      Committee.  The Managing Member's duties, subject to Sections
      6.3 and 6.5
      and all other applicable provisions of this Agreement, shall include (i)
      using its reasonable best efforts to generate an acquisition pipeline for
      Properties, (ii) coordinating and reporting such information to the
      Executive Committee, (iii) initiating due diligence (in accordance with
      the form of Due Diligence and Closing Checklist attached hereto as Exhibit
      D) and qualifying a Property, (iv) creating a pro forma,
      determining the pricing and conducting negotiations in connection with the
      acquisition of a Property pursuant to a purchase and sale agreement in a
      form substantially similar to Exhibit E
      attached hereto, (v) forming, to the extent necessary in connection with a
      Property acquisition as permitted under this Agreement and approved by the
      Executive Committee, a Project Subsidiary which such Project Subsidiary's
      operating agreement shall be in a form substantially similar to Exhibit
      F attached hereto, and (vi) using its reasonable best efforts to
      obtain a Fannie Mae/Freddie Mac or other appropriate credit facility with
      a structure as approved by the Executive Committee.  Subject to
      the limitations set forth in this Agreement, the Budget and Operating
      Plans and the guidelines, if any, adopted by the Executive Committee, the
      Managing Member, on behalf of the Company, shall have the power and
      authority to enter into contracts and leases on behalf of the Company in
      connection with the operation of any Property or Project Subsidiary held
      by the Company in accordance with any current Budget approved by the
      Executive Committee, and to make Expenditures as are required to implement
      the decisions of the Executive Committee in accordance with any current
      Budget approved by the Executive Committee.  Unless expressly
      and specifically provided for in this Agreement or in a Budget approved by
      the Executive Committee, the Managing Member shall not be entitled to
      reimbursement for any indirect costs or for any direct or indirect
      overhead, and the Managing Member shall not be entitled to receive any
      other fees or compensation in respect of its activities as the Managing
      Member.

            

    

     

    6.6.2. Day to Day
Management»

     

    
      	
               
      

            	
              .  In
      addition to and without limiting any other duties set forth in this
      Agreement, the Managing Member shall oversee the operations and management
      on a day-to-day basis of each Property in accordance with the applicable
      Budget, including oversight of property management, leasing, consulting,
      development, disposition and tenant services.  The Managing
      Member shall not be obligated to make any expenditures or advance any
      funds on behalf of the Company except from the accounts of funds of the
      Company in accordance with the applicable Budget.  In addition,
      the Managing Member shall not, without the prior approval of the Executive
      Committee approve, authorize, make or implement a Major Decision without
      the requisite approvals as set forth therein.  Unless determined
      otherwise by the Executive Committee, the Managing Member may delegate to
      MAALP substantially all of the duties under this Section 6.6.2
      to be performed instead under Property Management
      Agreements.  Notwithstanding any provision of this Agreement or
      any Property Management Agreement, no knowledge of MAALP as the Property
      Manager shall be imputed to the Company by virtue of MAALP being a Member
      in the Company or the Manager of the Company and no actions or omissions
      of MAALP as the Property Manager shall be deemed to be actions or
      omissions of the Company by virtue of MAALP being a Member in the Company
      or the Manager of the Company.

            

    

     

    6.7. Intentionally
Omitted»

     

    .

     

    6.8. Members»

     

    .  No
Member, in its capacity as Member, may act for or bind the Company or
participate in the general management, conduct or control of the Company's
business or affairs.  Notwithstanding the foregoing, Thackeray may at
any time direct the Managing Member to terminate any Related Agreement
(including, without limitation, any Property Management Agreement) between the
Company or a Project Subsidiary and the Managing Member or an Affiliate thereof;
provided Thackeray may only direct the Managing Member to terminate a Property
Management Agreement (unless in connection with a Property Manager default
thereunder) pursuant to the terms of Section 6.9.4.  The
failure of the Managing Member to terminate any Related Agreement upon the
direction of Thackeray pursuant to this Section
6.8 shall be a material breach hereof.  To the extent the
Managing Member does not terminate any Related Agreement upon the direction of
Thackeray, any Executive Committee member appointed by Thackeray may terminate
such Related Party Agreement on behalf of the Company.

     

    6.9. Company Expenses»

     

    .

     

    6.9.1. General»

     

    
      	
               
      

            	
              .  To
      the extent previously approved in writing by the Executive Committee or
      set forth in an approved Budget, all third-party out-of-pocket costs and
      expenses incurred by any of the Members or their respective Affiliates
      individually and associated with the formation of the Company (including
      costs and expenses associated with or related to the negotiation and
      execution of this Agreement) shall be paid or reimbursed by the
      Company.  Except as otherwise provided in this Agreement and
      except for any costs to be borne by any third party under any agreement
      with the Company, the Company shall be responsible for paying, and shall
      pay, all direct costs and expenses related to the business of the Company
      and of acquiring, holding, owning, developing, servicing, collecting upon
      and operating a Property, including, without limitation, costs of
      financing, fees and disbursements of attorneys, financial advisors,
      accountants, appraisers, brokers and engineers, travel expenses, and all
      other fees, costs and expenses directly attributable to the business and
      operations of the Company.  In the event any such costs and
      expenses are or have been paid by any Member, such Member shall be
      entitled to be reimbursed for such payment so long as such payment has
      been approved in writing by the Executive Committee, is expressly
      authorized in this Agreement or expressly authorized in the appropriate
      Budget approved by the Executive
Committee.

            

    

     

    6.9.2. Acquisition
Costs»

     

    .  The
Company shall be responsible for the payment or reimbursement of all third party
costs in connection with the pursuit of the acquisition of a Property or related
due diligence to the extent such costs have been approved by the Executive
Committee as a part of a property pursuit or acquisition initiative pursuant to
Section 6.3.10. Such costs may include normal brokerage costs (including fees
payable to Memphis Commercial Group pursuant to the MCG Engagement Terms as
approved by the Executive Committee) and related transaction costs to the extent
included in a pursuit budget approved by the Executive Committee pursuant to
Section 6.3.10. If the Managing Member expends its own funds pursuant to the
preceding sentence for the payment of such approved costs, such amounts shall be
a loan or advance and not a Capital Contribution and shall be repaid by the
Company as soon as practicable.  All third party costs associated with
the due diligence as set forth herein to the extent included in a pursuit budget
approved by the Executive Committee pursuant to Section 6.3.10 shall be funded
by Additional Capital Contributions (subject to the provisions of Article III
hereof) which shall be made in advance upon the approval of the Executive
Committee.

    

    6.9.3. Management Fee»

     

    
      	
               
      

            	
              .  The
      Company shall cause each Project Subsidiary to enter into a Property
      Management Agreement with MAALP in substantially the form attached hereto
      as Exhibit
      B with respect to each Property. Pursuant to the terms of the
      Property Management Agreement for each Property, the Company shall pay an
      annual management fee to MAALP or the designated property manager in an
      amount equal to (x) 4.25% of the total Gross Rental Receipts (as defined
      in the Property Management Agreement for each Property).  MAALP
      shall cause certain expenses to be allocated among the Properties in
      accordance with the Property Management Agreement for each
      Property.  Such fee shall be payable monthly, in
      arrears.  In the event any Property under-performs the original
      pro forma provided by the Property Manager (at the time of acquisition and
      approved by the Executive Committee or as amended by the Executive
      Committee) for each Property by 10% or more for a period of twenty-four
      (24) consecutive months, Thackeray may direct the Managing Member to
      terminate the Property Management Agreement with MAALP for that Property
      and, at its option, shall have the right to replace such Property
      Manager.  The termination of a Property Management Agreement
      pursuant to this Section
      6.9.4 with respect to a specific Property will not result in a
      Property Buy-Sell Event with respect to such Property pursuant to Section
      8.6.; provided however, that in the event Thackeray directs the
      Managing Member to terminate the Property Management Agreement with MAALP
      pursuant to this Section
      6.9.4, after a period of 24 months thereafter, MAALP at its sole
      option, may consider such action a Property Buy-Sell Event with respect to
      such Property pursuant to Section
      8.6.

            

    

     

    6.9.4. Asset Management»

     

    
      	
               
      

            	
              .  The
      Company shall pay an annual asset management fee to the Managing Member
      equal to 0.5% of all Capital Contributions.  Such fee shall be
      paid on the first day of each calendar month based on the average
      outstanding balance of the unreturned Capital Contributions of the Members
      for the preceding calendar quarter but shall be paid solely out of
      Property cash flow. No Additional Capital Contributions shall be used to
      pay this fee. To the extent current cash flow is not sufficient to pay the
      fee, it shall continue to accrue on a cumulative basis until paid in full
      out of subsequent cash flow.

            

    

     

    6.9.5. Construction
Management»

     

    
      	
               
      

            	
              .  The
      Company shall pay a construction management fee to the Managing Member
      equal to 10% of hard costs for all renovation costs where the budgeted
      renovation exceeds $5,000 per unit on a particular Property approved by
      the Executive Committee.  Such fee shall be paid monthly based
      on the hard costs incurred during the preceding month and commencing after
      the issuance of a building permit or on such other date selected by the
      Executive Committee.

            

    

     

    6.9.6. Acquisition Fee»

     

    
      	
               
      

            	
              .  The
      Company shall pay an acquisition fee to the Managing Member equal to 0.5%
      of the total acquisition price (exclusive of closing costs) of any
      Property acquired by the Company at the time of closing of an acquisition
      of a Property; provided that if the Managing Member shall incur third
      party costs in connection with a potential Acquisition Contract or one
      that is terminated by the Company, then the Managing Member shall be
      entitled to reimbursement for all third-party costs incurred by the
      Managing Member in connection with such potential or terminated
      Acquisition Contract as expressly provided in Section 6.3.10 and 6.9.2,
      but not to be exceed the amount approved by the Executive
      Committee.

            

    

     

    6.9.7. Memphis Commercial
Group»

     

    
      	
               
      

            	
              .  Provided
      Memphis Commercial Group is not in default under the MCG Engagement Terms
      and such engagement has not been terminated pursuant to the MCG Engagement
      Terms, the Company shall pay to Memphis Commercial Group pursuant to the
      terms of such written brokerage agreement an acquisition fee equal to 0.5%
      of the applicable purchase price for the acquisition by a Project
      Subsidiary of a Property approved by the Executive Committee and (y) a
      disposition fee equal to 0.5% of the applicable sale price, if approved by
      the Executive Committee.  Such fee(s) shall be paid upon the
      closing of the applicable purchase or sale of a Property subject to the
      terms of such written brokerage agreement.  Additionally, the
      Company shall pay or cause to be paid such additional brokerage fees to
      third party brokers in connection with the purchase and/or sale of a
      Property as the Executive Committee shall
  determine.

            

    

     

    6.9.8. Equity Placement»

     

    
      	
               
      

            	
              .  The
      Company shall pay an equity placement fee to Raymond James equal to 1.25%
      of all Capital Contributions made by Thackeray.  Such fee shall
      be paid within three (3) business days of Thackeray depositing such
      Capital Contribution with the
Company.

            

    

     

    6.9.9. Thackeray Direct
Expenses»

     

    
      	
               
      

            	
              .  The
      Company shall reimburse Thackeray as soon as practicable for all
      reasonable legal costs associated with its negotiation of this Agreement,
      the Management Agreement, Project Subsidiary Agreements, and subsequent
      revisions thereto, all as approved by the Executive
      Committee.  Either pursuant to an approved Budget or as
      otherwise approved by the Executive Committee, the Company shall reimburse
      Thackeray as soon as practicable for all asset management travel costs,
      site visit expenses and related expenses incurred by Thackeray or its
      representatives.

            

    

     

    

    6.10. Liability
of Members.

     

    6.10.1. Exculpation.

     

    6.10.1.1. Exculpation
of Members and members of the Executive Committee.  Except for
the indemnification obligations of MAALP specifically set forth in Section
6.10.2.5 below, no Member or Executive Committee member, general or
limited partner, member, manager, shareholder or other holder of an equity
interest in such Member, or officer, director or employee of any of the
foregoing or any of their Affiliates, excluding the Managing Member
(collectively, the "Member
Indemnitees"), shall be liable to the Company, any Project Subsidiary or
any other Member for monetary damages for any losses, claims, damages or
liabilities arising from or incidental to any act performed or omitted by it and
arising out of or in connection with this Agreement or the Company's business or
affairs, including any action or omission constituting a breach of any fiduciary
duty; provided, however, that such act or omission was taken in good faith, was
reasonably believed to be in the best interests of the Company and was within
the scope of authority granted to such Member Indemnitee and was not
attributable in whole or in part to such Member Indemnitee's fraud, bad faith or
willful misconduct.  THE FOREGOING EXCULPATION PROVISION
OF THIS SECTION
6.10.1.1 SHALL
SPECIFICALLY INCLUDE ANY LOSSES, CLAIMS, DAMAGES OR LIABILITIES CAUSED BY OR
ATTRIBUTABLE TO, WHETHER BY ACTION OR INACTION, THE ORDINARY OR GROSS NEGLIGENCE
OF ANY MEMBER INDEMNITEE AND FOR ANY ACTION FOR WHICH ANY MEMBER INDEMNITEE MAY
INCUR STRICT LIABILITY (AND WAS NOT ATTRIBUTABLE IN WHOLE OR IN PART TO SUCH
MEMBER INDEMNITEE'S FRAUD, BAD FAITH OR WILLFUL MISCONDUCT).

     

    6.10.1.2. Exculpation
of the Managing Member.  Subject to the indemnification
obligations of MAALP specifically set forth in Section
6.10.2.5 below, neither the Managing Member nor any of its general or
limited partners, members, managers, shareholders or other holders of an equity
interest in the Managing Member, or officer, director or employee of any of the
foregoing or any of their Affiliates (collectively, the "Managing
Member Indemnitees"), shall be liable to the Company, Project Subsidiary
or any other Member for monetary damages for any losses, claims, damages or
liabilities arising from or incidental to any act performed or omitted by it and
arising out of or in connection with this Agreement or the Company's business or
affairs; provided, however, that such act or omission was taken in good faith,
was reasonably believed to be in the best interests of the Company, was within
the scope of authority granted to such Managing Member Indemnitee and was not
attributable in whole or in part to such Managing Member Indemnitee's fraud, bad
faith, willful misconduct, material breach of this Agreement, breach of
fiduciary duty or gross negligence.

     

    6.10.1.3. Limitation
on Personal Liability.  Except for the indemnification
obligations of MAALP specifically set forth in Section
6.10.2.5 below, no general or limited partner or other constituent owner
of any Member, Executive Committee member, Managing Member or member,
shareholder or other holder of an equity interest in any such Member, Managing
Member or officer, director or employee of any of the foregoing or any of their
Affiliates shall be personally liable for the performance by any such Member,
Executive Committee member or Managing Member of their respective obligations
under this Agreement, but the foregoing shall not relieve any Person from its
obligations to such Member, Executive Committee member or Managing
Member.

     

    6.10.2. Indemnification.

     

    6.10.2.1. Indemnification
of Member Indemnitees.  The Company shall, to the fullest
extent permitted by applicable law, indemnify, defend and hold harmless each
Member Indemnitee against any losses, claims, damages or liabilities arising
from or incidental to any act performed or omitted by such Member Indemnitee and
arising out of or in connection with this Agreement or the Company's business or
affairs, including any action or omission constituting a breach of any fiduciary
duty; provided, however, that such act or omission was taken in good faith, was
reasonably believed by the applicable Member Indemnitee to be in the best
interests of the Company and within the scope of authority granted to the Member
Indemnitee and was not attributable in whole or in part to such Member
Indemnitee's fraud, bad faith or willful misconduct.  THE FOREGOING INDEMNIFICATION
PROVISIONS OF THIS SECTION
6.10.2.1 SHALL
SPECIFICALLY INCLUDE ANY LOSSES, CLAIMS, DAMAGES OR LIABILITIES CAUSED BY OR
ATTRIBUTABLE TO, WHETHER BY ACTION OR INACTION, THE ORDINARY OR GROSS NEGLIGENCE
OF ANY MEMBER INDEMNITEE AND FOR ANY ACTION FOR WHICH ANY MEMBER INDEMNITEE MAY
INCUR STRICT LIABILITY (AND WAS NOT ATTRIBUTABLE IN WHOLE OR IN PART TO SUCH
MEMBER INDEMNITEE'S FRAUD, BAD FAITH OR WILLFUL MISCONDUCT).

     

    6.10.2.2. Indemnification
of Managing Member Indemnitees.  The Company shall, to the
fullest extent permitted by applicable law, indemnify, defend and hold harmless
each Managing Member Indemnitee against any losses, claims, damages or
liabilities arising from or incidental to any act performed or omitted by it and
arising out of or in connection with this Agreement or the Company's business or
affairs; provided, however, that such act or omission was taken in good faith,
was reasonably believed by the applicable Managing Member Indemnitee to be in
the best interests of the Company, was within the scope of authority granted to
the Managing Member Indemnitee and was not attributable in whole or in part to
such Managing Member Indemnitee's fraud, bad faith, willful misconduct, material
breach of this Agreement, breach of fiduciary duty or gross
negligence.

     

    6.10.2.3. Reimbursement
of Expenses; Contribution.  If any Member Indemnitee or
Managing Member Indemnitee (collectively, the "Indemnitees")
becomes involved in any capacity in any action, proceeding or investigation in
connection with any matter arising out of or in connection with this Agreement
or the Company's business or affairs, the Company shall reimburse such
Indemnitee for its reasonable legal and other reasonable out-of-pocket expenses
(including the cost of any investigation and preparation) as they are incurred
in connection therewith, provided that such Indemnitee shall promptly repay to
the Company the amount of any such reimbursed expenses paid to it if it shall
ultimately be determined that such Indemnitee was not entitled to be indemnified
by the Company in connection with such action, proceeding or
investigation.  If for any reason (other than, in the case of a Member
Indemnitee, the fraud, bad faith or willful misconduct of, or material breach of
this Agreement by, such Member Indemnitee or, in the case of a Managing Member
Indemnitee, the gross negligence, fraud, bad faith or willful misconduct of, or
material breach of this Agreement or breach of fiduciary duty by, such Managing
Member Indemnitee) the foregoing indemnification is unavailable to such
Indemnitee, or insufficient to hold it harmless, then the Company, as determined
by the Executive Committee, shall contribute to the amount paid or payable by
such Indemnitee as a result of such loss, claim, damage, liability or expense in
such proportion as is appropriate to reflect the relative benefits received by
the Company on the one hand and such Indemnitee on the other hand or, if such
allocation is not permitted by applicable law, to reflect not only the relative
benefits referred to above but also any other relevant equitable
considerations.  Any indemnity under Sections
6.10.2.2 or 6.10.2.3
shall be paid solely out of and to the extent of Company assets and shall not be
a personal obligation of any Managing Member, Member or Executive Committee
member, and in no event will any Member be required, or permitted without the
consent of the Executive Committee, to contribute additional capital to the
Company under any provision of this Agreement including, without limitation,
Section
3.2, to enable the Company to satisfy any obligation under Sections
6.10.2.1 or 6.10.2.2.

     

    6.10.2.4. Indemnification
of the Company by the Members.  The Company and the other
Members (collectively, the "Company
Indemnitees") shall be indemnified, defended and held harmless by each
Member against any losses, claims, damages or liabilities arising out of or
incidental to (1) any act performed or omitted by such Member or any of its
Affiliates or designated Executive Committee members ("Representatives")
and arising out of or in connection with this Agreement or the Company's
business or affairs that (A) is not taken in good faith, (B) is not reasonably
believed by such Member or its designated Executive Committee members to be in
the best interests of the Company or within the scope of authority granted to
such Member or its designated Executive Committee members, other than those acts
permitted under Articles
7 and 8
and Section
10.2, or (C) constitutes fraud, bad faith or willful misconduct, or (2)
the breach by the Company of any of its representations and warranties made
under any purchase, loan or other agreement entered into in connection with the
Company's property, which breach was the result of information or matters
provided to the Company by such Member or any of its
Affiliates.  THE
FOREGOING INDEMNIFICATION PROVISIONS OF THIS
SECTION
6.10.2.4 SHALL
SPECIFICALLY INCLUDE ANY LOSSES, CLAIMS, DAMAGES OR LIABILITIES CAUSED BY OR
ATTRIBUTABLE TO, WHETHER BY ACTION OR INACTION, THE ORDINARY OR GROSS NEGLIGENCE
OF ANY COMPANY INDEMNITEE AND FOR ANY ACTION FOR WHICH ANY COMPANY INDEMNITEE
MAY INCUR STRICT LIABILITY.

     

    6.10.2.5. Indemnification
of the Company by the Managing Member.  The Company Indemnitees
shall be indemnified, defended and held harmless by the Managing Member against
any losses, claims, damages or liabilities arising out of or incidental to (1)
any act performed or omitted by the Managing Member and arising out of or in
connection with this Agreement that (A) is not performed in good faith, (B) is
not reasonably believed by the Managing Member to be in the best interests of
the Company, (C) is not within the scope of authority conferred upon the
Managing Member under this Agreement or (D) constitutes gross negligence, fraud,
bad faith, willful misconduct, breach of fiduciary duty or a material breach of
this Agreement or any Related Agreement, (2) the breach by the Company of any of
its representations and warranties made under any purchase, loan or other
agreement entered into in connection with the Company's property, which breach
was the result of information or matters provided to the Company by the Managing
Member, or (3) any act performed or omitted by Memphis Commercial Group and
arising out of or in connection with this Agreement, the Company's business or
affairs or the engagement of Memphis Commercial Group.  THE FOREGOING INDEMNIFICATION
PROVISIONS OF THIS SECTION
6.10.2.5 SHALL
SPECIFICALLY INCLUDE ANY LOSSES, CLAIMS, DAMAGES OR LIABILITIES CAUSED BY OR
ATTRIBUTABLE TO, WHETHER BY ACTION OR INACTION, THE ORDINARY OR GROSS NEGLIGENCE
OF ANY COMPANY INDEMNITEE AND FOR ANY ACTION FOR WHICH ANY COMPANY INDEMNITEE
MAY INCUR STRICT LIABILITY.  Any costs incurred or funds
expended by or on behalf of the Managing Member under item (3) above shall
not constitute an Additional Capital Contribution by the Managing
Member.

     

    6.10.2.6. Survival
of Indemnification.  The provisions of this Section
6.10.2 shall survive for a period of three (3) years from the date of
dissolution of the Company, provided that, if at the end of such period there
are any actions, proceedings or investigations then pending, any Indemnitee may
so notify the Company, the Managing Member and the other Members at such time
(which notice shall include a brief description of each such action, proceeding
or investigation and the liabilities asserted therein) and the provisions of
this Section
6.10.2 shall survive with respect to each such action, proceeding or
investigation set forth in such notice (or any related action, proceeding or
investigation based upon the same or similar claim) until such date that such
action, proceeding or investigation is finally resolved and the associated
indemnity obligation (if any) is satisfied.

     

    6.10.3. Indemnification of
Successors»

     

    
      	
               
      

            	
              .  Notwithstanding
      anything to the contrary contained in this Agreement, the obligations of
      the Company or any Member under this Section
      6.10 shall inure to the benefit of each Indemnitee, the Company and
      their respective Affiliates and their respective directors, officers,
      employees, agents and Affiliates and any successors, assigns, heirs and
      personal representatives of such
Persons.

            

    

     

    ARTICLE
7

     

    

     

    PURCHASE
OPTIONS

     

    7.1. Purchase Events»

     

    .  In
the event that any of the following (each a "Purchase
Event") shall have occurred to or in respect of a Member or any of such
Member's Affiliates that are Members (the "Seller"),
the other Members that are not the Seller or Affiliates of the Seller (as they
may agree among themselves or in proportion to their Percentage Interests if
there is no agreement among such Members) (the "Buyer")
shall have the continuing right, but not the obligation (the "Purchase
Option"), to purchase the entire Company interest of the Seller including
all debts and obligations of the Company owing to the Seller (the "Purchase
Interest") in an amount due and payable as determined below.

     

    7.1.1. Withdrawal»

     

    
      	
               
      

            	
              .  Any
      withdrawal or retirement from the Company by the Seller, other than in
      connection with a permitted assignment
  hereunder;

            

    

     

    7.1.2. Bankruptcy»

     

    
      	
               
      

            	
              .  The
      Seller shall make an assignment for the benefit of creditors, commence (as
      the debtor) a case in bankruptcy, or commence (as the debtor) any
      proceeding under any other insolvency
law;

            

    

     

    7.1.3. Involuntary
Bankruptcy»

     

    
      	
               
      

            	
              .  A
      case in bankruptcy or any other proceeding under any other insolvency law
      is commenced against the Seller (as the debtor) and is consented to by the
      Seller or remains undismissed for 90 days, or the Seller consents to or
      admits the material allegations against it in any such case or
      proceeding;

            

    

     

    7.1.4. Trustee
Appointment»

     

    
      	
               
      

            	
              .  A
      trustee, receiver, agent, liquidator or sequestrator (however named) is
      appointed or authorized to take charge of all or substantially all of the
      property of the Seller for the purpose of enforcing a lien against such
      property or for the purpose of general administration of such property for
      the benefit of creditors and such appointment or authorization is
      consented to by the Seller or is not overturned within 90
      days;

            

    

     

    7.1.5. Failure to Pay
Debts»

     

    
      	
               
      

            	
              .  The
      Seller shall fail generally to pay its debts as they become due, or suffer
      any writ of attachment or execution or any similar process to be issued or
      levied against it or all or substantially all of its property which is not
      released, stayed, bonded or vacated within 90 days after its issue or
      levy;

            

    

     

    7.1.6. Writ of
Attachment»

     

    
      	
               
      

            	
              .  The
      Seller shall suffer any writ of attachment or execution or any similar
      process to be issued or levied against the interests of the Seller in the
      Company which is not released, stayed, bonded or vacated within 90 days
      after its issue or levy;

            

    

     

    7.1.7. Failure to Perform
Obligations»

     

    
      	
               
      

            	
              .  The
      Seller or any of its Affiliates shall fail to perform (a) any of its
      obligations under this Agreement or any Related Agreement (subject to the
      provisions of Section
      6.9.4) (but excluding the obligation to contribute Additional
      Capital Contributions under Section
      3.2 for which the sole and exclusive remedies are provided for
      under Article III hereof) including, without limitation, taking any action
      on behalf of the Company with respect to Major Decisions specifically set
      forth in Section
      6.3 without the requisite approval under this Agreement, or not
      taking any action on behalf of the Company with respect to Major Decisions
      specifically set forth in Section
      6.3 that are properly approved by the Executive Committee, and such
      failure continues (i) if the Buyer has actual knowledge of such failure,
      for a period of 30 days after written notice thereafter from the Buyer or
      the Company or (ii) if the Buyer does not have knowledge of such failure,
      for a period of thirty (30) days after the occurrence of the failure, or
      (b) any of its obligations under any Related Agreement and such Related
      Agreement is terminated by the Company as a result thereof (subject to the
      provisions of Section
      6.9.4);

            

    

     

    7.1.8. Assignment of
Rights»

     

    
      	
               
      

            	
              .  Any
      attempted assignment or hypothecation by the Seller of any of its rights
      or interest in the Company or this Agreement except as permitted by ARTICLE
      10;

            

    

     

    7.1.9. Change of
Control»

     

    
      	
               
      

            	
              .  Any
      actual or reasonably anticipated Change in Control of the Seller (a Change
      in Control shall be reasonably anticipated if the Buyer reasonably
      believes, based on Buyer's knowledge that tangible steps have been taken
      to effect same, that such Change in Control is likely to happen or if the
      Seller otherwise has planned such Change in
  Control);

            

    

     

    7.1.10. Dissolution»

     

    
      	
               
      

            	
              .  The
      Seller shall commence to dissolve or wind-up and liquidate the assets of
      its business except in connection with a transaction permitted hereunder;
      or

            

    

     

    7.1.11. Felonious Act»

     

    
      	
               
      

            	
              .  The
      Seller, by entry of a final judgment, order or decree of a court or
      governmental agency having proper jurisdiction, shall be declared guilty
      of a felony involving moral turpitude, fraud or wrongdoing in connection
      with any business activity.

            

    

     

    7.2. Exercise of Purchase
Option»

     

    .  If
the Buyer elects to exercise its Purchase Option, it may give the Seller written
notice of the election at any time within one hundred twenty (120) days after
the date on which the Buyer first has actual knowledge of the occurrence of the
Purchase Event.  The amount of the purchase price for the Seller's
Purchase Interest (unless agreed upon by the Seller and the Buyer within 30 days
after the Buyer's notice to the Seller) shall be an amount equal to the amount
which the Seller would have received had all of the assets of the Company,
including the Properties, been sold at a price equal to the Fair Market Value of
such property determined (1) as of the date the Seller receives notice of
Buyer's election to purchase, and (2) as if the proceeds of the sale had been
distributed pursuant to ARTICLE
11 of this Agreement; provided however, if the applicable Purchase Event
occurred in a knowing, willful or grossly negligent manner under any of Sections
7.1.1, 7.1.2, 7.1.4, 7.1.5, 7.1.6, 7.1.7 (if constituting a grossly negligent or
willful failure to perform), 7.1.8, 7.1.9 (if an actual Change in Control
occurs, but not a reasonably anticipated Change in Control), 7.1.10 or 7.1.11,
then Fair Market Value shall be reduced by any amount that would have been
payable under Section 5.1(iii) and all further amounts shall continue to be
distributed under Section 5.1(ii) 

     

    7.3. Closing and
Terms»

     

    .  The
closing of the sale shall take place within 60 days after the date of the
determination of the purchase price, and the time and place of the closing shall
be designated by the Buyer within the first 30 days of the 60-day period and the
purchase price shall be payable upon terms and conditions agreed to between the
Buyer and the Seller, or in the event the Buyer and the Seller are unable to
agree, then as follows:  (1) 10% of the total purchase price shall be
paid by the Buyer to the Seller in cash at the closing, and (2) the remaining
portion of the purchase price shall be evidenced by a promissory note given by
the Buyer in favor of the Seller, which promissory note shall bear interest on
the unpaid principal balance at the Prime Rate and require up to five equal
payments of principal plus all accrued and unpaid interest thereon with the
first payment being due on the first anniversary date of the closing date and
each succeeding payment being due on each succeeding anniversary date of the
closing date until the final payment is made on the earlier of (1) the fifth
anniversary date of the closing date or (ii); a capital event related to a
Property and netting sufficient proceeds to pay same.; provided, however, that the
Buyer may prepay the promissory note at any time without penalty.  The
unpaid principal balance and unpaid interest on the promissory note at maturity
shall be paid in cash.

     

    7.4. Effect on Seller's
Interest»

     

    .  If
the Seller is MAALP under Section 7.2
from the Purchase Date to the date of the Transfer of the Purchase Interest
under this ARTICLE 7,
the Percentage Interest represented by the Purchase Interest will be excluded
from any calculation of aggregate Percentage Interests for purposes of any
approval required of Members under this Agreement, except for any approvals
required under Section
6.5, the Executive Committee members appointed by MAALP shall be excluded
from any vote of the Executive Committee and a majority in number of the other
Executive Committee members shall make all decisions on behalf of the Executive
Committee.  All distributions of cash or assets due to the Seller by
the Company from the Purchase Date to the date of the closing of the purchase
may be applied against obligations of the Seller.  Without limiting
the generality of any other provision of this Agreement, upon the exercise of
the Purchase Option, the Seller, without further action, will have no rights in
the Company or against the Company or any Member other than the right to receive
payment for the Purchase Interest in accordance with Section
7.3 and indemnification rights under ARTICLE
6; provided, however, that if the Seller is Thackeray, the Seller will
retain any voting rights it has pursuant to this Agreement until the date of the
Transfer of the Purchase Interest under this ARTICLE
7.  As a condition to the closing of any purchase referenced in
this ARTICLE
7, which condition must be satisfied before the scheduled closing date,
the Seller will be entitled to full and complete releases of its liability from
all creditors of the Company or refinancing of the existing indebtedness of the
Company without the liability of the Seller and also will be indemnified by the
Company for all liabilities and losses arising from incidents or transactions
occurring after the closing.

     

    7.5. Term of Options»

     

    .  The
term of the options provided in this ARTICLE
7 shall expire 21 years after the death of the grandchildren who are in
existence today of any of the members of the Executive Committee appointed by
Thackeray as of the Formation Date.

     

    ARTICLE
8

     

    

     

    BUY-SELL
PROVISIONS

     

    8.1. Master Buy-Sell
Provision»

     

    .  At
any time after the expiration of the two (2) year period following the initial
Investment Period, any Member and its Affiliates who are Members (collectively,
the "Offeror")
shall have the right to make an offer as described below (the "Buy-Sell
Offer") to any other Member and its Affiliates who are Members
(collectively, the "Offeree")
as set forth below:

     

    8.1.1. Terms»

     

    
      	
               
      

            	
              .  The
      Buy-Sell Offer shall (1) be in writing and be signed by the Offeror;
      (2) specify the purchase price (the "Purchase
      Price") and terms on which the Offeror would purchase all of the
      assets of the Company net of all liabilities of the Company;
      (3) disclose all liabilities and potential liabilities of the Company
      known to the Offeror and the monetary amount of such liabilities; (4)
      specify the major economic terms and conditions (other than the Purchase
      Price) upon which the Offeror would be willing to sell to the Offeree its
      interest in the Company, including its interest in any loans to the
      Company (and in such case, under the circumstances described below, those
      same terms and conditions shall apply to the sale by the Offeree to the
      Offeror of its interest in the Company); and (5) disclose the terms and
      details of any discussion, refinancing or proposed sale that the Offeror
      and a third party have negotiated or discussed during the last 180
      calendar days for all or any portion of the Company's
      assets.  The Offeror shall be required, within five (5)business
      days following the date of the Election as provided in Section
      8.1.3.1 hereof, to deposit in escrow at a mutually selected title
      company (the “Escrow
      Fund”) an amount equal to the lesser of (a) ten percent (10%) of
      the Offeree Value or (b) $3,000,000, which amount will be subject to Section
      8.4 and will be (i) applied to the payment of the total
      consideration paid by the Offeror at the closing, (ii) forfeited as
      liquidated damages to the Offeree in accordance with Section
      8.3, or (iii) returned to the Offeror as provided in Section
      8.1.3.2 if the Offeree elects to purchase the Offeror's interest in
      the Company pursuant to Section
      8.1.3.2;

            

    

     

    8.1.2. Determination of
Value»

     

    
      	
               
      

            	
              .  Contemporaneously
      with delivery to the Offeree, a copy of the Buy-Sell Offer shall be
      delivered to the Managing Member who shall, within 15 calendar days,
      determine and notify the Members as to the amount the Offeree would
      receive as a member(s) (the "Offeree
      Value") and the amount the Offeror would receive as a member(s)
      (the "Offeror
      Value") on account of its interest in the Company and any loans
      made by such Member(s) to the Company if all Company assets were sold for
      the Purchase Price, allocations under ARTICLE 4
      were made, all liabilities of the Company (including any loans by any such
      Member to the Company) were paid in full, and the remaining proceeds
      distributed to the Members in accordance with Section
      11.3.1.2.

            

    

     

    8.1.3. Offeree Election»

     

    
      	
               
      

            	
              .  The
      Offeree shall have the right, exercisable by delivery of notice in writing
      (the "Election")
      to the Offeror within 60 days from the receipt of the Buy-Sell Offer, to
      elect either to:

            

    

     

    8.1.3.1. Sell
Offeree's Interest.  Sell to the Offeror all of the Offeree's
right, title and interest in and to its interest in the Company and in any loans
to the Company for a cash purchase price equal to the Offeree Value;
or

     

    8.1.3.2. Purchase
Offeror's Interest.  Purchase all of the Offeror's right, title
and interest in and to its interest in the Company and in any loans to the
Company for a cash purchase price equal to the Offeror Value.  If the
Offeree elects to purchase all of Offeror's interest in the Company pursuant to
this Section
8.1.3.2, the Offeree shall be required, within five (5) business days
following the date of the Election as provided in this Section
8.1.3.2,to deposit in an Escrow Fund the lesser of (a) ten percent (10%)
of the Offeror value or (b) $3,000,000, which amount will be subject to Section
8.4 and will be (i) applied to the payment of the total consideration
paid by the Offeree at the closing or (ii) forfeited as liquidated damages to
the Offeror in accordance with Section
8.3.  Upon deposit by the Offeree in the Escrow Fund of the
amount required in this Section
8.1.3.2, any amount which had been deposited in the Escrow Fund by the
Offeror, plus all interest earned thereon, if any, will be promptly returned to
the Offeror.

     

    Failure
of the Offeree to give the Offeror notice of the Offeree's Election shall be
deemed, upon the expiration of such 60-day period, to be an Election to sell
under Section
8.1.3.1.

     

    8.2. Closing»

     

    .  All
closings of a purchase under Section
8.1 will be held at the Company's principal office and shall take place
on the date that is one hundred eighty (180) days (or if such day falls on a
non-business day, the next business day) after the Offeree's Election or deemed
Election or as otherwise agreed by the Offeror and Offeree.  All
transfer taxes imposed on the transfer shall be payable by the selling Member,
and all other closing costs shall be allocated in the manner customarily
allocated between buyers and sellers of Company interests in similar joint
ventures in the State of Delaware.

     

    8.3. Remedies; Coordination of
Rights»

     

    .  Any
Member shall be entitled to enforce its rights under Section
8.1 by specific performance.  If the purchasing party (or
purchasing parties as the case may be) is unable to close the purchase of an
interest in the Company in accordance with the terms of Sections
8.1 and 8.2
other than as a result of a breach of this Agreement by the selling party (or
selling parties, as the case may be) or the failure of the selling party (or
selling parties, as the case may be) to perform any actions or other obligations
required to close the purchase of its interest in the Company, (a) the Escrow
Fund established by the purchasing party (or purchasing parties, as the case may
be) will immediately be forfeited to the selling party, and (b) the selling
party shall have the option to purchase the interest of the purchasing party (or
purchasing parties, as the case may be) on the terms and at the price provided
in the initial Buy-Sell Offer or initiate a new Buy-Sell Offer.  If
the purchasing party (or purchasing parties, as the case may be) is unable to
close as a result of a breach of this Agreement by the selling party (or selling
parties, as the case may be) or the failure of the selling party (or selling
parties, as the case may be) to perform any actions or other obligations
required to close the purchase of its interest in the Company, the purchasing
party shall have the right to recover all amounts it has deposited in the Escrow
Fund and enforce the obligations of the selling party (or selling parties, as
the case may be) by specific performance in addition to all other remedies
available at law or in equity to the purchasing party.  No Buy-Sell
Offer may be made until all periods for making elections and performing
obligations under (1) any previous Buy-Sell Offer pursuant to Section 8.1
shall have terminated or (2) any Purchase Option previously exercised under
ARTICLE
7 shall have terminated.

     

    8.4. Terms Governing the Escrow
Funds»

     

    .  An
Escrow Fund, if established under Section
8.1.1, shall be subject to instructions binding on the escrow agent that
such Escrow Fund may be released by the escrow agent (a) to the Offeree only
upon (i) the sworn certification by the Offeree that the Offeror has failed to
close the purchase of the Offeree's interest in the Company by the date set
forth in Section
8.2, (ii) the joint signatures of the Offeree and the Offeror, or (iii)
closing of the transactions described in Section
8.1 or (b) to the Offeror, upon the sworn certification by the Offeror
that the Offeree has (i) made an Election to purchase the Offeror's interest in
the Company as provided in Section
8.1.3.2, or (ii) failed to perform its obligations required to close the
sale of the Offeree's interest in the Company.  If established under
Section
8.1.3.2, an Escrow Fund shall be subject to instructions binding on the
escrow agent that such Escrow Fund may be released by the escrow agent (y) to
the Offeror only upon (i) the sworn certification by the Offeror that the
Offeree has failed to close the purchase of the Offeror's interest in the
Company by the date set forth in Section
8.2, (ii) the joint signatures of the Offeror and the Offeree or (iii)
closing of the transactions described in Section
8.1, or (z) to the Offeree, upon the sworn certification by the Offeree
that the Offeror has failed to perform its obligations required to close the
purchase of the Offeror's interest in the Company.

     

    8.5. Power of
Attorney»

     

    .  If
either the Offeror or the Offeree shall have failed or refused, within 5 days
after receipt of a notice from the other Member requesting that Member to
execute, acknowledge and deliver any documents, or cause the same to be done, as
shall be required to effectuate the transfer of the transferring Member's
interest in the Company in accordance with Section
8.1, then the acquiring Member may execute, acknowledge and deliver such
documents for, on behalf of and in the stead of the transferring Member, and the
execution, acknowledgment and delivery by the acquiring Member shall be for all
purposes effective against and binding upon the transferring Member as though
the execution, acknowledgment and delivery had been by the transferring
Member.  Each transferring Member irrevocably constitutes and appoints
the acquiring Member as the true and lawful attorney in fact of the transferring
Member, in the name, place and stead of the transferring Member, to execute,
acknowledge and deliver the transferring documents required to effect the
transfer of the transferring Member's interest in the Company pursuant to Section
8.1.1.  It is expressly understood, intended and agreed by each
Member that the grant of the power of attorney to the other Member pursuant to
Section
8.1.1 is coupled with an interest, is irrevocable and shall survive the
death, termination or legal incompetency of the granting Member or the
assignment of the interest of the granting Member in the Company, or the
dissolution of the Company.

     

    8.6. Property Buy-Sell
Provision»

     

    .  In
the event of either (a) a dead-lock between the Executive Committee members with
respect to a Major Decision in connection with a Property or a Project
Subsidiary which can be reasonably expected to involve a monetary payment or
liability in total exceeding $100,000 or (b) twenty-four (24) months after the
termination of a Property Management Agreement pursuant to Section
6.9.4 with respect to a specific Property or (c) the election by
Thackeray to sell to a third party any Property at any time after MAALP is
replaced by Thackeray as its Property Manager pursuant to Section
6.9.4 or (d) the expiration of the Lockout Period (a "Property
Buy-Sell Event"), any Member and its Affiliates who are Members
(collectively, the "Offering
Member") shall have the right to make an offer either (i) to purchase
such Property from the Company (or the Project Subsidiary, as the case may be)
(a "Property
Buy Offer") or (ii) to sell such Property on behalf of the Company (or
the Project Subsidiary, as the case may be) to the other Member and its
Affiliates who are Members (collectively, the "Non-Offering
Member") (a "Property
Sell Offer").  Either a Property Buy Offer or a Property Sell
Offer may be referred to hereinafter as a "Property
Buy-Sell Offer".

     

    8.6.1. Terms»

     

    
      	
               
      

            	
              .  Any
      offer made pursuant to Section
      8.6 shall (1) be made to the Non-Offering Member in writing and be
      signed by the Offering Member; (2) specify the Property which is the
      subject of such offer (the "Subject
      Property"), (3) specify whether the offer is a Property Buy Offer
      or a Property Sell Offer, (4) specify the purchase price of such Subject
      Property (the "Property
      Purchase Price") and terms on which such Subject Property is to be
      purchased or sold free and clear of all liens, claims and encumbrances;
      and (5) disclose the terms and details of any discussion, refinancing or
      proposed sale that the Offering Member and a third party have negotiated
      or discussed during the last 180 calendar days for all or any portion of
      the Subject Property.  The Offering Member shall be required,
      within five (5) business days following the date of the Property Offer
      Election as provided in Section
      8.6.2.1 hereof, to deposit in an Escrow Fund the lesser of (a) ten
      percent (10%) of the Property Purchase Price or (b) $3,000,000, which
      amount will be subject to Section
      8.9 and will be (i) applied to the payment of the total
      consideration paid by the Offering Member at the closing of the purchase
      of such Subject Property, (ii) forfeited to the Non-Offering Member as
      liquidated damages in accordance with Section
      8.8, or (iii) returned to the Offering Member as provided in Section
      8.6.2.2 if the Non-Offering Member elects to purchase the Subject
      Property pursuant to Section
      8.6.2.2;

            

    

     

    8.6.2. Non-Offering Member
Election»

     

    
      	
               
      

            	
              .  The
      Non-Offering Member shall have the right, exercisable by delivery of
      notice in writing (the "Property
      Offer Election") to the Offering Member within 60 days from the
      receipt of an offer pursuant to this Section
      8.6, to elect either to:

            

    

     

    8.6.2.1. Sell the
Property.  Sell on behalf of the Company (or the Project
Subsidiary, as applicable) to the Offering Member the Subject Property upon the
terms as set forth in the Property Buy-Sell Offer (regardless of whether the
Property Buy-Sell Offer is a Property Buy Offer or a Property Sell Offer);
or

     

    8.6.2.2. Purchase
the Property.  Purchase from the Company (or the Project
Subsidiary, as applicable) the Subject Property upon the terms set forth in the
Property Buy-Sell Offer (regardless of whether the Property Buy-Sell Offer is a
Property Buy Offer or a Property Sell Offer) (in which case, the Non-Offering
Member shall be required, within five (5) business days following the date of
the Property Offer Election as provided in this Section
8.6.2.2, to deposit in an Escrow Fund the lesser of (a) ten percent (10%)
of the Property Purchase Price or (b) $3,000,000, which amount will be subject
to Section
8.9 and will be (i) applied to the payment of the total consideration
paid by the Non-Offering at the closing of the purchase of the Subject Property
or (ii) forfeited to the Offering Member as liquidated damages in accordance
with Section
8.8).  Upon the deposit by the Non-Offering Member in the
Escrow Fund of the amount required in this Section
8.6.2.2, any amount which had been deposited in the Escrow Fund by the
Offering Member, plus all interest earned thereon, if any will be returned to
the Offering Member.

     

    Failure
of the Non-Offering Member to give the Offering Member notice of the Property
Offer Election shall be deemed, upon the expiration of such 90-day period, to be
an election to sell the Subject Property pursuant to Section
8.6.2.1 to the extent the Property Buy-Sell Offer is a Property Buy Offer
and an election to purchase the Subject Property pursuant to Section
8.6.2.2 to the extent the Property Buy-Sell Offer is a Property Sell
Offer.

     

    8.7. Closing»

     

    .  All
closings of a purchase under Section
8.6 will be held at the Company's principal office and shall take place
on the date that is ninety (90) days (or if such day falls on a non-business
day, the next business day) after the Property Offer Election or deemed Property
Offer Election or as otherwise agreed by the Offering Member and the
Non-Offering Member.  All transfer taxes imposed on the transfer shall
be payable by the purchaser, and all other closing costs shall be allocated in
the manner customarily allocated between buyers and sellers of real property in
the state in which such Subject Property is located.

     

    8.8. Remedies; Coordination of
Rights in Connection with Property Buy-Sell»

     

    .  Any
Member on behalf of itself or on behalf of the Company (or the Project
Subsidiary), as applicable, shall be entitled to enforce its rights under Section
8.6 by specific performance.  If the purchasing party (or
purchasing parties, as the case may be) is unable to close the purchase of the
Subject Property in accordance with the terms of Sections
8.6 and 8.7
other than as a result of the failure of the selling party to perform any
actions or other obligations required to close the sale of the Subject Property,
to the extent such failure is not due to the action or inaction of the
purchasing party (or purchasing parties, as the case may be), the Escrow Fund
established by the purchasing party (or purchasing parties, as the case may be)
will immediately be forfeited to (1) the Non-Offering Member if the purchasing
party (or purchasing parties, as the case may be) is the Offering Member and (2)
the Offering Member if the purchasing party (or purchasing parties, as the case
may be) is the Non-Offering Member.  If the purchasing party (or
purchasing parties, as the case may be) is unable to close as a result of the
failure of the selling party to perform any actions or other obligations
required to close the sale of the Subject Property, to the extent such failure
is not due to the action or inaction of the purchasing party (or purchasing
parties, as the case may be), the purchasing party (or purchasing parties, as
the case may be) shall have the right to recover all amounts it has deposited in
the Escrow Fund and enforce the obligations of the selling party by specific
performance in addition to all other remedies available at law or in equity to
the purchasing party (or purchasing parties, as the case may be).  No
Property Buy-Sell Offer may be made until all periods for making elections and
performing obligations under (1) any previous Property Buy-Sell Offer pursuant
to Section
8.6 shall have terminated or (2) any Buy-Sell Offer previously made
pursuant to Section
8.1 shall have terminated or (3) any Purchase Option previously exercised
under ARTICLE
7 shall have terminated.

     

    8.9. Terms Governing the Escrow
Funds in Connection with Property Buy-Sell»

     

    .  An
Escrow Fund, if established under Section
8.6, shall be subject to instructions binding on the escrow agent that
such Escrow Fund may be released by the escrow agent (a) to the Member which is
not the purchasing party or an Affiliate thereof only upon (i) the sworn
certification by the Member which is not the purchasing party or an Affiliate
thereof, that the purchasing party or an Affiliate thereof has failed to close
the purchase of the Subject Property, (ii) the joint signatures of the Offering
Member and the Non-Offering Member, or (iii) closing of the transactions
described in Section
8.6, (b) to the purchasing party, upon the sworn certification by such
purchasing party that the Company (or the Project Subsidiary, as the case may
be) has failed to perform its obligations required to close the sale of the
Subject Property and such failure is not due to the action or inaction of the
purchasing party or an Affiliate thereof, or (c) to the Offering Member upon the
sworn certification by the Offering Member that the Non-Offering Member has made
a Property Offer Election to purchase the Subject Property as
provided  in Section
8.6.2.2.

     

    ARTICLE
9

     

    

     

    BOOKS AND
RECORDS

     

    9.1. Books and
Records»

     

    .  The
Managing Member shall with respect to each Property cause the relevant Project
Subsidiary to maintain at the expense of the Property Manager, in a manner
customary and consistent with good accounting principles, practices and
procedures, a comprehensive system of office records, books and accounts (which
records, books and accounts shall be and remain the property of such Project
Subsidiary) in which shall be entered fully and accurately each and every
financial transaction with respect to the operations of such Project Subsidiary
and its ownership and operation of its Property.  The Managing Member
shall otherwise maintain, or cause to be maintained, at the expense of the
Company, in a manner customary and consistent with good accounting principles,
practices and procedures, a comprehensive system of office records, books and
accounts (which records, books and accounts shall be and remain the property of
the Company) in which shall be entered fully and accurately each and every
financial transaction with respect to the operations of the Company including
the ownership and operation of each Project Subsidiary and each Property;
provided that all such records, books and accounts with respect to a specific
Property shall be at the expense of the Property Manager.  Bills,
receipts and vouchers shall be maintained on file by the Managing
Member.  The Managing Member shall maintain said books and accounts in
a safe manner and separate from any records not having to do directly with the
Company or the Properties.  The Managing Member shall cause audits to
be performed and audited statements and income tax returns to be prepared as
required by ARTICLE
9.  Such books and records of account shall be prepared and
maintained by the Managing Member at the principal place of business of the
Company or such other place or places as may from time to time be determined by
the Executive Committee and the Managing Member.  Each Member or its
duly authorized representative shall have the right to inspect, examine and copy
such books and records of account at the Company's office during reasonable
business hours.  A reasonable charge for copying books and records may
be charged by the Company.

     

    9.2. Accounting and Fiscal
Year»

     

    .  The
books and records of the Company shall be prepared in accordance with generally
accepted accounting principles ("GAAP")
and the Company shall report its operations for tax purposes on the accrual
method.  The fiscal year and tax year of the Company shall end on
December 31 of each year, unless a different tax year shall be required by the
Code.

     

    9.3. Reports»

     

    .

     

    9.3.1. Monthly Reports»

     

    
      	
               
      

            	
              .  Managing
      Member will prepare, at the expense of the Company, and furnish to each
      Member by the 25th
      day of the calendar month following the end of each calendar month, an
      unaudited balance sheet of the Company dated as of the end of such
      calendar month, an unaudited related income statement of the Company for
      such calendar month, an unaudited statement of cash flows of the Company
      for such calendar month, and an unaudited statement of changes in the
      Member’s capital for such calendar month and information for the calendar
      month as to the balance in each Member’s Capital Account for such calendar
      month, and  a status report of the Company’s activities during
      such calendar month, including summary descriptions of leasing and
      occupancy of each Property during such calendar month, all of which shall
      be certified by Managing Member as being, to the best of its knowledge,
      true and correct in all material respects.  In connection with
      the monthly reports to be provided pursuant to this Section
      9.3.1, Managing Member shall cause the Property Manager to prepare,
      at the expense of the Property Manager, balance sheets, income statement,
      statements of cash flows, status reports and such other statements and
      reports with respect to each Project Subsidiary and each Property which
      are necessary for Managing Member to prepare the monthly reports on behalf
      of the Company as required by this Section
      9.3.1.

            

    

     

    9.3.2. Annual Reports»

     

    
      	
               
      

            	
              .  The
      Managing Member will prepare or cause to be prepared, on an accrual basis
      in accordance with GAAP and on a tax basis, at the expense of the Company,
      and furnish to each Member no later than February 28th   an
      unaudited balance sheet of the Company dated as of the end of such fiscal
      year,  an unaudited related income statement of the Company for
      such fiscal year, an unaudited statement of changes in the Member's
      capital for such fiscal year and information for the fiscal year as to the
      balance in each Member's Capital Account for such fiscal
      year,  an unaudited statement of cash flows of the Company as of
      the end of the fiscal year, and  such other supporting
      schedules, reports and backup information as reasonably requested by
      Thackeray, all of which shall be certified by the Managing Member as
      being, to the best of its knowledge, true and correct.  In
      addition, upon the written request of any Member, the Managing Member will
      prepare or cause to be prepared, at the expense of the Company, and
      furnish to each Member within 90 calendar days after receipt of such
      written request, (i) an audited balance sheet of the Company dated as of
      the end of such fiscal year, (ii) an audited related income statement of
      the Company for such fiscal year, (iii) an audited statement of cash flows
      for such fiscal year, and (iv) an audited statement of each Member's
      Capital Account for such fiscal year, all of which shall be certified by
      the Managing Member as being, to the best of its knowledge, true and
      correct in all material respects, and all of which shall be accompanied by
      an unqualified audit report of the Company Accountants.  The
      Managing Member shall provide such balance sheet, income statement and
      statement of Capital Accounts in draft form to the Members for review
      prior to finalization and delivery of the audit report in respect
      thereof.  In connection with the annual reports to be provided
      pursuant to this Section
      9.3.2, the Managing Member shall cause the Property Manager to
      prepare, at the expense of the Property Manager, balance sheets, income
      statement, statements of cash flows, status reports and such other
      statements and reports with respect to each Project Subsidiary and each
      Property which are necessary for the Managing Member to prepare the annual
      reports on behalf of the Company as required by this Section
      9.3.2.

            

    

     

    9.3.3. Other Reports»

     

    
      	
               
      

            	
              .  The
      Managing Member will furnish to each Member, at the expense of the
      Company, (i) copies of all reports required to be furnished to any lender
      of the Company, (ii) written commentary on any major variances from any
      Project Budget, (iii) within thirty (30) days after each fiscal quarter a
      market study for each submarket in which a Property is located, (iv) upon
      the request of any Member, weekly leasing reports and/or market studies
      for any underperforming Property.

            

    

     

    9.3.4. Tax Reports»

     

    
      	
               
      

            	
              .  All
      schedules of book income shall be prepared on a GAAP
      basis.  Promptly after the end of each fiscal year, the Managing
      Member will cause the Company Accountant to prepare and deliver to each
      Member a report setting forth in sufficient detail all such additional
      information and data with respect to business transactions effected by or
      involving the Company during the fiscal year as will enable the Company
      and each Member to timely prepare its federal, state and local income tax
      returns in accordance with applicable laws, rules and
      regulations.  The Managing Member shall cause the Property
      Manager to prepare, at the expense of the Property Manager such statements
      and reports with respect to each Project Subsidiary and each Property
      which are necessary for the Managing Member to prepare the tax reports on
      behalf of the Company as required by this Section
      9.3.4.

            

    

     

    9.3.5. Tax Returns»

     

    
      	
               
      

            	
              .  The
      Managing Member will cause the Company Accountant to prepare all federal,
      state and local tax returns required of the Company, submit those returns
      to the other Members for their approval by February 28 of each year and
      will file the tax returns after they have been approved by the Executive
      Committee, which approval shall occur within 90 calendar days after the
      end of such fiscal year.

            

    

     

    9.3.6. Other»

     

    
      	
               
      

            	
              .  The
      Managing Member will prepare or cause to be prepared, at Company expense,
      such additional financial reports and other information as the Executive
      Committee may determine are appropriate or shall cause to be prepared, at
      the expense of the Property Manager, such additional financial reports and
      other information to the extent such additional financial reports and
      other information relate to a specific Property or Project
      Subsidiary.  All decisions as to accounting principles shall be
      made by the Executive Committee subject to the provisions of this
      Agreement.

            

    

     

    9.4. The Company
Accountant»

     

    .  If
requested by a Member, the Company shall retain as the regular accountant and
auditor for the Company (the "Company
Accountant") any nationally-recognized accounting firm designated by the
Executive Committee.  The fees and expenses of the Company Accountant
shall be a Company expense.

     

    9.5. Reserves»

     

    .  The
Executive Committee may, in its discretion and subject to such conditions as it
shall determine, establish reserves for the purposes and requirements as it may
deem appropriate.

     

    9.6. The Budget and Operating
Plans»

     

    .

     

    9.6.1. Adoption of
Budget»

     

    
      	
               
      

            	
              .  The
      Managing Member shall be responsible for preparing and submitting to the
      Executive Committee for its approval proposed budget and strategic
      operating plans (as approved or thereafter amended by the Executive
      Committee,  "Budget
      and Operating Plans") for the Company and for each Project
      Subsidiary for each year.  The Budget and Operating Plans shall
      be prepared in proposed form and submitted annually by the Managing Member
      to the Executive Committee for approval by November 15th
      of each year with respect to the following fiscal year (provided, if the
      Managing Member should fail to timely prepare and submit in proposed form
      any such Budget and Operating Plans, the Executive Committee, shall
      prepare such Budget and Operating Plans).  Each Budget and
      Operating Plans shall set forth for the applicable calendar year all
      anticipated income, operating expenses and capital and other costs and
      expenses of the Company, all of which will be based on the strategic and
      comprehensive business plan designed to maximize the Company's returns on
      each Project Subsidiary and each
Property.

            

    

     

    9.6.2. Strategies»

     

    
      	
               
      

            	
              .  In
      formulating the Budget and Operating Plans, to the extent reasonably
      feasible at the time of preparation thereof, the Managing Member will
      develop (for approval by the Executive Committee) proposed strategies
      regarding  plans for any repositioning, renovation or
      restoration of each Property,  preparation and release of all
      promotional and advertising material relating to each Property or
      concerning the Company, terms for any proposed sale or disposition of each
      Property, and selection of contractors, construction or other managers,
      legal counsel, accountants, structural and environmental engineers,
      appraisers and other consultants for the Company to efficiently implement
      the Budget and Operating Plans.  The Managing Member will also
      consider and make recommendations to the extent it deems the same
      appropriate regarding the amendment, modification, alteration, change,
      cancellation, or prepayment of any indebtedness evidenced by any mortgage
      loan presently or hereafter affecting each Property, and procurement of
      title insurance and other insurance for the Company, or decrease or vary
      any other the insurance carried by or on behalf of the
      Company.

            

    

     

    9.6.3. Project Budget»

     

    
      	
               
      

            	
              .  In
      connection with each proposal to acquire a Property delivered to the
      Executive Committee, the Managing Member shall prepare a budget including
      all pertinent information relative to such Property, including without
      limitation, the acquisition, renovation, restoration, ownership,
      maintenance and operation of such Property.  Upon approval of
      such budget, the Budget and Operating Plans shall be amended to
      incorporate such Property budget.

            

    

     

    9.6.4. Renovation of
Properties»

     

    
      	
               
      

            	
              .  All
      costs of any renovation or restoration of a Property shall be funded by
      Additional Capital Contributions.  The Managing Member shall
      include in any budget for the renovation or restoration of a Property a
      contingency reserve equal to ten percent (10%) of hard costs of
      construction.

            

    

     

    9.6.5. Failure to Approve Annual
Plan»

     

    
      	
               
      

            	
              .  Failure
      to Approve Annual Plan.  If any proposed operating budget
      or annual plan is not approved by December 31,
  then:

            

    

     

    9.6.5.1. Portion
Approved.  Any items or portions of the proposed operating
budget and annual plan and amounts of expenses provided therein which have been
so approved will become operative immediately;

     

    9.6.5.2. Debt
Service, Taxes, Utilities and Insurance.  The Managing Member
may expend funds for regularly scheduled debt service on financing approved by
the Executive Committee, real estate taxes and assessments; utility charges; and
insurance premiums for insurance policies approved by the Executive Committee;
and to cause each Property to comply with law; and

     

    9.6.5.3. Operating
Expenses.  The Managing Member may expend, in respect of other
non-capital, recurring operating expenses in any quarter of the then-current
calendar year, an amount equal to the budgeted amounts for the corresponding
quarter of the immediately preceding calendar year, as set forth on the last
approved Budget and Operating Plans (with commercially reasonable adjustments
due to inflation and variances in occupancy levels); however, if any contract
approved as part of any prior approved Budget and Operating Plans provides for
an automatic increase in costs thereunder after the beginning of the then
current calendar year, then the Managing Member may expend the amount of that
increase.

     

    9.7. Tax Matters
Member»

     

    .  Pursuant
to Section 6231(a)(7)(A) of the Code, the Managing Member shall be the tax
matters member ("Tax
Matters Member") of the Company.

     

    ARTICLE
10

     

    

     

    TRANSFER
OF INTERESTS

     

    10.1. Transfer
Restrictions»

     

    .

     

    10.1.1. Direct Transfers»

     

    
      	
               
      

            	
              .
      Without the written consent of the Executive Committee, no Member shall
      sell, assign, give, hypothecate, pledge, encumber or otherwise transfer
      ("Transfer") all
      or any portion of its Interest in the Company or withdraw from the Company
      (other than in connection with a permitted transaction under this ARTICLE
      10).

            

    

     

    10.1.2. Managing Member Indirect
Transfers»

     

    
      	
               
      

            	
              .  Without
      the written consent of the Executive Committee, no direct or indirect
      owner of MAALP shall, directly or indirectly, Transfer all or any portion
      of its interest in MAALP, if such Transfer would cause a Change in
      Control.

            

    

     

    10.2. Permitted
Transfers»

     

    .  At
any time and from time to time: (i) each Member shall have the right to Transfer
all or any part of its Interest in the Company to an Affiliate of such Member
and (ii) each of the direct or indirect owners of Thackeray shall have the
right, in its sole discretion, to Transfer all of any part of its ownership
interest in Thackeray to one or more third parties without the consent of any
other Member, provided that such Transfer does not result in a Change in
Control.

     

    10.3. Transferees»

     

    .  Notwithstanding
anything to the contrary contained in this Agreement, no transferee of all or
any portion of any Interest shall be admitted as a Member unless such Interest
is transferred in compliance with the applicable provisions of this Agreement,
such transferee shall have furnished evidence of satisfaction of the
requirements of this Agreement reasonably satisfactory to the remaining Members,
and such transferee shall have executed and delivered to the Company such
instruments as the remaining Members reasonably deem necessary or desirable to
effectuate the admission of such transferee as a Member and to confirm the
agreement of such transferee to be bound by all of the terms and provisions of
this Agreement with respect to such Interest.  At the request of any
of the remaining Members, each such transferee shall also cause to be delivered
to the Company, at the transferee's sole cost and expense, a favorable opinion
of legal counsel reasonably acceptable to the Company, to the effect that such
transferee has the legal right, power and capacity to own the Interest proposed
to be transferred, such Transfer does not violate any provision of any loan
commitment or any mortgage, deed of trust or other security instrument
encumbering all or any portion of any Property, such Transfer will not cause an
increase in the amount of unrelated business taxable income under Section 512 of
the Code payable by any Member or any direct or indirect partner in or other
beneficial owner of any Member, and such Transfer does not violate the 1933 Act
any other federal or state securities laws and will not cause the Company to
become subject to the Investment Company Act of 1940, as amended.  As
promptly as practicable after the admission of any Person as a Member, the books
and records of the Company shall be changed to reflect such
admission.  All reasonable costs and expenses incurred by the Company
in connection with any Transfer of any Interest and, if applicable, the
admission of any transferee as a Member shall be paid by such
transferee.  Upon satisfaction of the foregoing requirements such
transferee(s) shall be admitted to the Company and the remaining Member(s) shall
promptly execute such amendments hereto to properly evidence the admission of
such transferee(s).

     

    10.4. Section 754
Election»

     

    .  In
the event of a Transfer of all or part of the Interest of a Member, at the
request of the transferee or if in the best interests of the Company (as
determined by the Executive Committee), the Company shall elect pursuant to
Section 754 of the Code to adjust the basis of any Company property as provided
by Sections 734 and 743 of the Code, and any cost of such election or cost of
administering or accounting for such election shall be at the sole cost and
expense of the requesting transferee.

     

    10.5. Non-Complying Transfers
Void»

     

    .

     

     Any
attempted Transfer of all or any part of a Member’s Interest that does not
comply with the provisions of this Article 10 shall be null and void and of no
legal effect.

    

    ARTICLE
11

     

    

     

    DISSOLUTION AND
TERMINATION

     

    11.1. Dissolution
Events»

     

    .  The
Company shall not be dissolved upon the dissolution, of any Member, but the
Company shall be dissolved and terminated in the manner hereinafter provided
upon the happening of any of the following events:

     

    11.1.1. Termination Date»

     

    
      	
               
      

            	
              .  The
      close of business on the date of expiration of the period set forth in
      Section
      2.4 unless otherwise extended pursuant to Section
      2.4;

            

    

     

    11.1.2. Written
Agreement»

     

    
      	
               
      

            	
              .  The
      written determination of all Members to dissolve the
    Company;

            

    

     

    11.1.3. Withdrawal or Merger of
Managing Member»

     

    
      	
               
      

            	
              .  The
      withdrawal or retirement from the Company by the Managing Member or the
      merger of the Managing Member with or into another Person that is not an
      Affiliate of the Managing Member;

            

    

     

    11.1.4. Disposition of
Property»

     

    
      	
               
      

            	
              .  The
      disposition of all or substantially all of the Company's
      property;

            

    

     

    11.1.5. Bankruptcy»

     

    
      	
               
      

            	
              .  The
      entry of a final judgment, order or decree of a court of competent
      jurisdiction adjudicating the Company to be a bankrupt, and the expiration
      without appeal of the period, if any, allowed by applicable law in which
      to appeal therefrom; or

            

    

     

    11.1.6. Reorganization»

     

    
      	
               
      

            	
              .  The
      filing by the last remaining Managing Member, or consenting by answer or
      otherwise to the filing against such Managing Member, of a petition for
      relief or reorganization or arrangement or any other petition in
      bankruptcy, for liquidation (in connection with a bankruptcy or insolvency
      proceeding) or to take advantage of any bankruptcy or insolvency law of
      any jurisdiction; the general assignment by such Managing Member for the
      benefit of such Managing Member's creditors, consenting to the appointment
      of a custodian, receiver, trustee or other officer with similar powers of
      a general partner.

            

    

     

    11.2. Continuation»

     

    .  Upon
the occurrence of any event described in Sections 11.1.2,
11.1.3,
and 11.1.4,
the business of the Company will be continued if within 90 calendar days the
remaining Members, elect by written action of a majority of the remaining
Members, based on the Percentage Interests of all remaining Members, to continue
the business of the Company and, if no Managing Member remains, to designate one
or more Persons (including without limitation any Member who consents) to be a
Managing Member of the Company, upon terms consented to by all
Members.  If the business of the Company is continued by election of
the Members pursuant to the foregoing sentence, the interest of any remaining
Managing Member who fails to elect to continue the business of the Company will
be converted to that of a Member.  If the Members fail to continue the
Company's business as provided in this Section 11.2
the Company will be liquidated under Section 11.3.

     

    11.3. Method of
Liquidation»

     

    .

     

    11.3.1. Generally»

     

    
      	
               
      

            	
              .  Upon
      the happening of any of the events specified in Section 11.1
      and, if applicable, the failure to continue the business of the Company
      under Section 11.2,
      the Managing Member or, in the event dissolution results from the
      withdrawal or retirement from the Company of the Managing Member, any
      liquidating trustee elected by Members holding no less than a majority of
      the Percentage Interests held by Members (either of the Managing Member or
      liquidating trustee being the "Liquidator"),
      shall immediately commence to wind up the Company's affairs and shall
      liquidate the assets of the Company as promptly as possible to the extent
      necessary to satisfy the debts and obligations of the
      Company.  Until final distribution, the Liquidator shall
      continue to operate the Company properties with all of the power and
      authority of the Managing Member hereunder.  The steps to be
      accomplished by the Liquidator are as
follows:

            

    

     

    11.3.1.1. Pay
Debts.  The Liquidator shall pay all of the debts and
liabilities of the Company (including Company Loans) or otherwise make adequate
provision therefor (including, without limitation, the establishment of a cash
escrow fund for contingent liabilities in such amount and for such term as the
Liquidator may reasonably determine); and

     

    11.3.1.2. Distribute
Assets.  All remaining assets of the Company shall be
distributed, in cash or in kind, to the Members in accordance with positive
Capital Account balances, as determined after taking into account all Capital
Account adjustments for such fiscal year, including any adjustments to be made
in connection with allocations of income, gain, loss or deduction under Sections
4.1 and 4.2.

     

    After the
distributions provided in this Section 11.3,
the Company may merge into another entity pursuant to a plan of merger adopted
by the Executive Committee, provided that each Member shall have its interest in
the Company redeemed as part of the plan of such merger and receive $1.00
therefor.

     

    11.3.2. Distributions in
Kind»

     

    
      	
               
      

            	
              .  If
      the Company makes distributions in kind of Company property which secures
      indebtedness, each of the Members receiving the distribution of property
      subject to the indebtedness will be severally liable (as among each other,
      but not for the benefit of others) for his proportionate share of the
      indebtedness, provided that no Member will be deemed to have assumed any
      liability on any indebtedness secured by property distributed to any
      Member for which the Member is not liable under the terms of the
      instrument creating the indebtedness, and provided that the liability of
      each Member to other Members for indebtedness secured by property
      distributed to him will be limited to the value of his interest in the
      property indebtedness secured by property distributed to Members in kind
      need not be discharged out of the proceeds of liquidation of the
      Company.

            

    

     

    11.3.3. No
Deficit Restoration Obligation»

     

    
      	
               
      

            	
              .  Notwithstanding
      anything to the contrary in this Agreement, upon a liquidation within the
      meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(g), if any Member has a
      deficit Capital Account (after giving effect to all contributions,
      distributions, allocations and other Capital Account adjustments for all
      taxable years, including the year during which such liquidation occurs),
      such Member shall have no obligation to make any Capital Contribution to
      reduce or eliminate the negative balance of such Member’s Capital
      Account.

            

    

     

    11.4. Deemed Distribution and
Recontribution»

     

    .  Notwithstanding
any other provisions of this Article
11, if the Company is liquidated within the meaning of Treasury
Regulations Section 1.704-1(b)(2)(ii)(g) but the Company is not to
be liquidated pursuant to Section 11.3,
the property of the Company shall not be liquidated or distributed, the
Company's liabilities shall not be paid or discharged, and the Company's affairs
shall not be wound up.

     

    11.5. Date of
Termination»

     

    .  The
Company shall be terminated and dissolved when all of the cash or property
available for application and distribution under Section 11.3
above shall have been applied and distributed in accordance with such Section 11.3.  The
establishment of any reserves in accordance with the provisions of Section 11.3
above shall not have the effect of extending the term of the Company, but any
such reserve shall be distributed in the manner provided in Section 11.3
upon expiration of the need for the reserve.

     

    ARTICLE
12

     

    

     

    INVESTMENT REPRESENTATIONS
OF THE MEMBERS

     

    12.1. Investment
Intent»

     

    .  Each
of the Members represents and warrants to the Company and to each of the other
Members that the Member has acquired its interest in the Company for investment,
solely for its own account, with the intention of holding the interest for
investment, and without any intention of participating directly or indirectly in
any redistribution or resale of any portion of the interest in violation of the
1933 Act or any applicable state securities law.

     

    12.2. Unregistered Company
Interests»

     

    .  Each
of the Members acknowledges that the Member is aware that its interest in the
Company has not been registered under the 1933 Act in reliance upon exemptions
contained in the 1933 Act and that its interest in the Company has not been
registered under the securities law of any state in reliance upon the exemptions
contained in such state securities law.  Each of the Members further
understands and acknowledges that its representations and warranties contained
in this Section 12.2
are being relied upon by the Company and by the Members as the basis for
exemption of the issuance of the Member's interest in the Company from
registration requirements of the 1933 Act and all applicable state securities
laws. Each of the Members further acknowledges that the Company will not and has
no obligation to register the Member's interest in the Company under the 1933
Act or any state securities law and that the Company shall have no obligation to
recognize any sale, transfer or assignment of the Member's interest in the
Company to any person unless the sale, transfer or assignment is otherwise
permitted under this Agreement.

     

    12.3. Nature of
Investment»

     

    .  Each
of the Members represents that it is familiar with this Agreement, and with the
proposed business and affairs of the Company, and that except as otherwise
specifically provided in this Agreement, the Member does not desire any further
information or data relating to the Company.  Each of the Members
acknowledges that it understands that the acquisition of the Member's interest
in the Company is a speculative investment involving a high degree of risk and
represents that it has been given an opportunity to ask questions and review
such financial and other matters as it deems appropriate, it has satisfied
itself regarding all matters related to this investment and it has a net worth
sufficient to bear the economic risk of the Member's investment in the Company
and to justify the Member investing in a highly speculative venture of this
type.

     

    12.4. Legend on
Agreement»

     

    .  Each
of the Members acknowledges that a legend reflecting the restrictions imposed
upon the transfer of its interest in the Company under this Agreement, under the
1933 Act and under applicable state securities laws has been placed on the first
page of this Agreement and may be placed on any amendments to this
Agreement.

     

    ARTICLE
13

     

    

     

    MISCELLANEOUS

     

    13.1. Exclusivity»

     

    .

     

     

    13.1.1. Opportunities»

     

    
      	
               
      

            	
              .  During
      the Investment Period, the Members shall present to each other and to the
      Company, in reasonable detail, any opportunities to acquire or develop,
      directly or indirectly, in whole or in part, any Property that such Member
      or any Affiliate thereof would reasonably pursue for its own account which
      is seven (7) years or older and which satisfies the Investment Criteria in
      all material respects (a "Prospective
      Property Acquisition"). Such opportunities shall not apply to
      properties to be acquired by MAALP or MAAC in 1031(b) like-kind exchanges
      for properties either (i) owned by MAALP or MAAC which have been
      previously identified to Thackeray (as listed on Exhibit G) or (ii)
      acquired by MAALP or MAAC subsequent to the execution of this Agreement
      (as permitted hereunder), as notified in writing to
      Thackeray.  The Members may
      present to each other and to the Company any Properties that do not
      satisfy the Investment Criteria in all material respects in an effort to
      determine if additional joint ventures may be feasible. The provisions of
      this Section 13.1 are subject to the terms of Section 6.2.3 of this
      Agreement. MAALP will notify
      Thackeray of acquisition opportunities which are less than 7 years old but
      which it reasonably believes will otherwise fit the Company’s Investment
      Criteria which MAALP is unable or unwilling to acquire without a
      partner.

            

    

     

    

    13.1.2. Exceptions:
Rejection»

     

    
      	
               
      

            	
              .  Either
      Member may proceed with the investment in, acquisition of or development
      of a Property for its own account that satisfies the Investment Criteria
      (and such action shall not constitute a breach of any provision of this
      Agreement) if, and only
      if, (i) such Member (“Acquiring
      Member”)
      shall have received written notice from the other Member (“Rejecting
      Member”)
      that the investment in, acquisition of or development of the specified
      Property would not be a desirable investment for the Company, and (ii) any
      investment in, acquisition of or development of such Property by such
      Acquiring Member or any Affiliate thereof is on no more favorable terms
      than those presented to such Rejecting Member.  In the event
      such Acquiring Member acquires the Property, it shall reimburse the
      Company for all reasonable third party costs incurred by the Company
      related to such acquisition.

            

    

     

    13.1.3. Exception:  Like
Kind»

     

    
      	
               
      

            	
              .  As an
      exception to the restrictions imposed on the Members under this Section
      13.1.1, the Members and their respective Affiliates may acquire a
      property during the Investment Period if (i) such property is acquired in
      a qualifying like-kind exchange under Section 1031 of the Code, (ii) the
      qualifying like-kind exchange is with proceeds from the disposition of a
      property held by such Member or their respective Affiliates, and (iii)
      such Member or their respective Affiliates were obligated by an agreement
      with a third party to undertake a like-kind exchange at some time in the
      future with respect to such property
held.

            

    

     

    13.2. Exclusivity»

     

    .  Notwithstanding
anything else to the contrary herein, during the Investment Period unless
extended by the Executive Committee, neither MAALP nor any Affiliate thereof may
make any investment in or otherwise acquire or develop, directly or indirectly,
in whole or in part, any real property in a Prospective Property Acquisition,
except through its interest in the Company or as otherwise expressly provided in
Section
13.1.  The provisions of this Section 13.2 are subject to the
terms of Section 6.2.3 of this Agreement.

     

    13.3. Representations and
Warranties of the Members»

     

    .  Each
Member represents and warrants to the other Members as follows:

     

    13.3.1. Due Organization»

     

    
      	
               
      

            	
              .  It
      is duly organized, validly existing and in good standing under the laws of
      its jurisdiction of formation with all requisite power and authority to
      enter into this Agreement and to conduct the business of the
      Company.

            

    

     

    13.3.2. Legal and
Binding»

     

    
      	
               
      

            	
              .  This
      Agreement constitutes the legal, valid and binding obligation of the
      Member enforceable in accordance with its
terms.

            

    

     

    13.3.3. No Consents»

     

    
      	
               
      

            	
              .  No
      consents or approvals are required from any governmental authority or
      other person or entity for the Member to enter into this Agreement and the
      Company.  All limited liability company, corporate or Company
      action on the part of the Member necessary for the authorization,
      execution and delivery of this Agreement, and the consummation of the
      transactions contemplated hereby, have been duly
  taken.

            

    

     

    13.3.4. No Conflicts»

     

    
      	
               
      

            	
              .  The
      execution and delivery of this Agreement by the Member, and the
      consummation of the transactions contemplated hereby, does not conflict
      with or contravene the provisions of its organizational documents or any
      agreement or instrument by which it or its properties are bound or any
      law, rule, regulation, order or decree to which it or its properties are
      subject.

            

    

     

    13.3.5. No Brokers»

     

    
      	
               
      

            	
              .  The
      Member has not retained any broker, finder or other commission or fee
      agent, and no such person has acted on its behalf in connection with the
      acquisition of the Company interest herein provided or the execution and
      delivery of this Agreement.

            

    

     

    13.3.6. Prohibited Person and
Transactions»

     

    
      	
               
      

            	
              .  The
      Member is not, and will not become, a person or entity with whom U.S.
      persons or entities are restricted from doing business with under
      regulations of the Office of Foreign Asset Control ("OFAC") of the
      Department of the Treasury (including those named on OFAC's Specially
      Designated and Blocked Person's list) or under any statute, executive
      order (including the September 24, 2001, Executive Order Blocking
      Property and Prohibiting Transactions With Persons Who Commit, Threaten to
      Commit, or Support Terrorism), or other governmental action and is not and
      will not engage in any dealings or transactions or be otherwise associated
      with such persons or entities.

            

    

     

    13.4. Appraisal Procedures for
Fair Market Value»

     

    .  If
Members are unable to agree upon the Fair Market Value of any property within
thirty (30) days after either party requests the other party to approve its
determination of fair market value, then such Fair Market Value shall be
determined as follows:

     

    13.4.1. Selection of
Appraisers»

     

    
      	
               
      

            	
              .  Upon
      the expiration of such thirty (30) day period, any Member may request an
      appraisal of the applicable property by sending written notice thereof to
      the other.  Within five (5) days after receipt of the written
      notice by the party to whom such notice is sent, the Members shall, by
      mutual agreement, appoint an independent appraiser (which may be an
      investment bank, accounting firm, asset appraiser, or other valuation
      professional).  If the Members cannot agree on a single
      independent appraiser within such five-day period, the Members shall each
      have the right to select an independent appraiser experienced in such
      matters and shall give written notice to the other of the appraiser so
      selected.  The first party to receive such a notice of selection
      shall have five (5) days after receipt thereof to give the other party
      written notice of its selection.  If any Member properly gives a
      first notice and the other does not properly give the second notice within
      the requisite time or if a single appraiser is selected, the one
      independent appraiser so selected shall be the sole appraiser in making
      the determination required hereunder, which written determination shall be
      final and binding and shall be delivered to the Members no more than
      thirty (30) days after the delivery of the first notice.  For
      purposes of this Section
      13.4 each Member and
      its Affiliate who are also Members shall not be deemed to be separate
      parties.

            

    

     

    13.4.2. Resolution of Appraisal
Disputes»

     

    
      	
               
      

            	
              .  If
      the second notice is properly given within the requisite time, the
      independent appraisers so selected shall promptly make the determination
      required hereunder and deliver a written summary of such determination to
      the Members within thirty (30) days after the delivery of the first
      notice.  If such two appraisers reach the same determination,
      their determination shall be final and binding.  If the two
      appraisers reach determinations that are different but the lower
      determination is not less than ninety percent (90%) of the higher
      determination, an average of the two shall be final and
      binding.  In all other events, the two appraisers shall promptly
      select a third independent appraiser who shall promptly make the
      determination required hereunder and deliver a written summary of such
      determination to the Members  and such first two appraisers
      within thirty (30) days after the selection of the third appraiser . The
      closer two of the three appraisal determinations shall be averaged for the
      resulting fair market value determination, which shall be final and
      binding on both parties.  All fees and expenses of each such
      independent appraiser shall be borne by the
  Company.

            

    

     

    13.5. Further
Assurances»

     

    .  Each
Member agrees to execute, acknowledge, deliver, file, record and publish such
further instruments and documents, and do all such other acts and things as may
be required by law, or as may be required to carry out the intent and purposes
of this Agreement; provided the same does not subject any Member to additional
liability and the same is consistent with and does not vary the terms and
conditions of this Agreement without the consent of the affected
Member.

     

    13.6. Conflicts»

     

    .  The
Members and their respective officers, employees, appointed members of the
Executive Committee and Affiliates shall devote such time to the Company
business as they deem to be necessary or desirable in connection with their
respective duties and responsibilities hereunder.  Each of the Members
recognizes that each of the other Members and its partners, members,
shareholders, officers, directors, employees, agents, representatives, appointed
members of the Executive Committee and Affiliates, have or may have other
business interests, activities and investments, some of which may be in conflict
or competition with the business of the Company and that, each of the other
Members and its partners, member, shareholders, officers and directors,
employees, agents, representatives, appointed members of the Executive Committee
and Affiliates, are entitled to carry on such other business interests,
activities and investments.  Neither the Company nor the other Members
shall have any right, by virtue of this Agreement, in or to such interests,
activities, and investments or the income or profits derived therefrom, and the
pursuit of such activities, even if competitive with the business of the Company
and shall not be deemed wrongful or improper.

     

    13.7. Notices»

     

    .  All
notices, demands, consents, approvals, requests or other communications provided
or permitted to be given under this Agreement (collectively, "Notices")
must be in writing and may be served by hand delivery to the party to be
notified, with written receipt; by depositing same in the United States mail,
addressed to the party to be notified, postage prepaid and registered or
certified with return receipt requested; by delivering to the party to be
notified by a nationally-recognized, overnight delivery service (e.g., Federal Express); by
facsimile copy transmission during normal business hours with a confirmation
copy delivered by another method permitted under this Section 13.7,
or by electronic mail addressed to the electronic mail address set forth below
for the party to be notified with a confirmation copy delivered by another
method permitted under this Section 13.7.  Notice
given in accordance herewith for all permitted forms of notice other than by
electronic mail, shall be effective upon the earlier to occur of actual delivery
to the address of the addressee or refusal of receipt by the
addressee.  Notice given by electronic mail in accordance herewith
shall be effective upon the entrance of such electronic mail into the
information processing system designated by the recipient's electronic mail
address provided that such shall in any event be ineffective if a confirmation
copy is not delivered by another method permitted under this Section 13.7,
whether or not the electronic mail was actually received by the
addressee.  Except for facsimile and electronic mail notices as
described above, no notice hereunder shall be effective if sent or delivered by
electronic means.  For purposes of notice, the addresses of the
parties shall be as follows:

     

    
      	
              If
      to MAALP and MAAC:

            	 
      	
              Mid-America
      Apartments, L.P.

              6584
      Poplar Avenue

              Memphis,
      Tennessee 38138

              Attention:
      Timothy P. Argo

              Facsimile
      No.: 901-682-6667

              e-mail:  tim.argo@maac.net

               

            
	
              With
      a Copy to:

            	 
      	
              Bass,
      Berry & Sims PLC

              100
      Peabody Place, Suite 900

              Memphis,
      Tennessee  38103

              Attention:
      John A. Stemmler

              Facsimile
      No.: 901-543-5999

              e-mail:  jstemmler@bassberry.com

               

            
	
              If
      to Thackeray:

            	 
      	
              TPRF
      II/Memphis Investor, L.L.C.

              c/o
      Thackeray Partners

              5956
      Sherry Lane, Suite 600

              Dallas,
      TX  75225

              Attention:
      Robert Bennett

              Facsimile
      No.: 214-360-7831 (fax)

              e-mail:  rb@thackeraypartners.com

               

            
	
              With
      a Copy to:

            	 
      	
              Winstead PC

              1201 Elm Street, Suite
      5400

              Dallas, Texas 75270

              Attn: Michael F.
      Alessio

              Facsimile No.: 214-745-5390

              e-mail:  malessio@winstead.com

            
	 
      	 
      	 
      

    

    Any
Member may designate another addressee (and/or change its address) for Notices
hereunder by a Notice given pursuant to this Section 13.7.

     

    13.8. Cumulative
Remedies»

     

    .  Except
as otherwise provided in Section 3.6,
no remedy conferred by any of the specific provisions of this Agreement is
intended to be exclusive of any other remedy, and each and every remedy shall be
cumulative and shall be in addition to every other remedy given hereunder or now
or hereafter existing at law or in equity or by statute or
otherwise.  The election of any one or more remedies by a party shall
not, except as otherwise expressly provided for herein, constitute a waiver of
the right to pursue other available remedies.

     

    13.9. Governing Law»

     

    .  Any
provisions of this Agreement dealing with or related to or affecting any loan or
advance by any Member to the Company or any other debt obligation of the Company
to any Member shall be governed by and construed in accordance with the laws of
the State of Delaware applicable to agreements made and to be performed wholly
within that State.  Otherwise, this Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to
agreements made and to be performed wholly within that State.

     

    13.10. Arbitration»

     

    .

     

    13.10.1. General»

     

    
      	
               
      

            	
              .  Any
      dispute among the Members as to the interpretation of any provision of
      this Agreement or the rights and obligations of any Member hereunder
      (other than for the determination of Fair Market Value) shall be resolved
      through binding arbitration as hereinafter provided in Memphis,
      Tennessee.

            

    

     

    13.10.2. Selection of
Arbitrator»

     

    
      	
               
      

            	
              .  If
      arbitration is required to resolve a dispute among the Members, the
      Managing Member or any of the Executive Committee members may notify the
      Dallas office of the American Arbitration Association ("AAA")
      and request AAA to select one Person to act as the arbitrator for
      resolution of the dispute.

            

    

     

    13.10.3. Rules of
Arbitration»

     

    
      	
               
      

            	
              .  The
      arbitrator selected pursuant to Section 13.10.2
      will establish the rules for proceeding with the arbitration of the
      dispute, which will be binding upon all parties to the arbitration
      proceeding.  The arbitrator may use the rules of the AAA for
      commercial arbitration but is encouraged to adopt the rules the arbitrator
      deems appropriate to accomplish the arbitration in the quickest and least
      expensive manner possible.  Accordingly, the arbitrator may (1)
      dispense with any formal rules of evidence and allow hearsay testimony so
      as to limit the number of witnesses required, (2) accept evidence of
      property values or the values of Company interests without formal
      appraisals and upon such information provided by Members or other Persons
      and otherwise minimize discovery procedures as the arbitrator deems
      appropriate, (3) act upon his understanding or interpretation of the law
      on any issue without the obligation to research the issue or accept or act
      upon briefs of the issue prepared by any party, (4) limit the time for
      presentation of any party's case as well as the amount of information or
      number of witnesses to be presented in connection with any hearing, and
      (5) impose any other rules that the arbitrator believes appropriate to
      effect a resolution of the dispute as quickly and inexpensively as
      possible. In any event, the arbitrator (A) shall permit each side no more
      than two depositions (including any deposition of experts), which
      depositions may not exceed four hours each, one set of ten interrogatories
      (inclusive of sub-parts) and one set of five document requests (inclusive
      of sub-parts), (B) shall not permit any requests for admissions, (C) shall
      limit the hearing, if any, to two days, and (D) shall render his or her
      decision within 60 days of the filing of the
  arbitration.

            

    

     

    13.10.4. Costs of
Arbitration»

     

    
      	
               
      

            	
              .  The
      arbitrator will have the exclusive authority to determine and award costs
      of arbitration and the costs incurred by any party for its attorneys,
      advisors and consultants.

            

    

     

    13.10.5. Award of
Arbitrator»

     

    
      	
               
      

            	
              .  Any
      award made by the arbitrator shall be binding on the Members, the Company
      and all parties to the arbitration and shall be enforceable to the fullest
      extent of the law.

            

    

     

    13.11. Attorney Fees»

     

    .  If
the Company or any Member obtains a judgment against any Member by reason of the
breach of this Agreement or the failure to comply with the terms hereof,
reasonable attorneys' fees and costs as fixed by the court shall be included in
such judgment.

     

    13.12. Captions»

     

    .  All
titles or captions contained in this Agreement are inserted only as a matter of
convenience and for reference and in no way define, limit, extend, or describe
the scope of this Agreement or the intent of any provision in this
Agreement.

     

    13.13. Pronouns»

     

    .  All
pronouns and any variations thereof shall be deemed to refer to the masculine,
feminine, and neuter, singular and plural, as the identity of the party or
parties may require.

     

    13.14. Successors and
Assigns»

     

    .  This
Agreement shall be binding upon the parties hereto and their respective
executors, administrators, legal representatives, heirs, successors and assigns,
and shall inure to the benefit of the parties hereto and, except as otherwise
provided herein, their respective executors, administrators, legal
representatives, heirs, successors and assigns.

     

    13.15. Extension Not a
Waiver»

     

    .  No
delay or omission in the exercise of any power, remedy or right herein provided
or otherwise available to a Member or the Company shall impair or affect the
right of such Member or the Company thereafter to exercise the
same.  Any extension of time or  other indulgence granted to
a Member hereunder shall not otherwise alter or affect any power, remedy or
right of any other Member or of the Company, or the obligations of the Member to
whom such extension or indulgence is granted.

     

    13.16. Creditors and Third Parties
Not Benefited»

     

    .  Nothing
contained in this Agreement is intended or shall be deemed to benefit any third
party or creditor of the Company or any Member, and no third party or creditor
of the Company shall be entitled to require the Company or the Members to
solicit or accept any Additional Capital Contribution for the Company or to
enforce any right which the Company or any Member may have against any Member
under this Agreement.

     

    13.17. Recalculations of
Interest»

     

    .  If
any applicable law is ever judicially interpreted so as to deem any
distribution, contribution, payment or other amount received by any Member or
the Company under this Agreement as interest and so as to render any such amount
in excess of the maximum rate or amount of interest permitted by applicable law,
then it is the express intent of the Members and the Company that all amounts in
excess of the highest lawful rate or amount theretofore collected be credited
against any other distributions, contributions, payments or other amounts to be
paid by the recipient of the excess amount or refunded to the appropriate
Person, and the provisions of this Agreement immediately be deemed reformed,
without the necessity of the execution of any new document, so as to comply with
the applicable law, but so as to permit the payment of the fullest amount
otherwise required hereunder.  All sums paid or agreed to be paid that
are judicially determined to be interest shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the term
of such obligation so that the rate or amount of interest on account of such
obligation does not exceed the maximum rate or amount of interest permitted
under applicable law.

     

    13.18. Severability»

     

    .  In
case any one or more of the provisions contained in this Agreement or any
application thereof shall be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein and other application thereof shall not in any way be affected or
impaired thereby; provided, however, the limitation of liability and exculpation
provisions of this Agreement are an integral part hereof.

     

    13.19. Entire Agreement»

     

    .  This
Agreement contains the entire agreement between the parties relating to the
subject matter hereof and all prior agreements relative hereto which are not
contained herein are terminated.  Amendments, variations,
modifications or changes herein may be made effective and binding upon the
Members by, and only by, the setting forth of same in a document duly executed
by each Member, and any alleged amendment, variation, modification or change
herein which is not so documented shall not be effective as to any
Member.

     

    13.20. Publicity»

     

    .  The
parties agree that no Member shall issue any press release or otherwise
publicize or disclose the terms of this Agreement or the proposed terms of any
acquisition of any Company property or the Property, without the consent of each
of the other Members, except as such disclosure may be made in the course of
normal reporting practices by any Member to its shareholders or
partners.

     

    13.21. Counterparts»

     

    .  This
Agreement may be executed in multiple counterparts, each of which shall be an
original but all of which together shall constitute but one and the same
agreement.

     

    13.22. Confidentiality»

     

    .

     

    13.22.1. Confidential
Information»

     

    
      	
               
      

            	
              .  The
      terms of this Agreement, the identity of the Members, the identity of any
      person with whom the Company may be holding discussions with respect to
      any investment, acquisition, disposition or other transaction, and all
      other business, financial or other information relating directly to the
      conduct of the business and affairs of the Company or the relative or
      absolute rights or interests of any of the Members (collectively, the
      "Confidential
      Information") that has not been publicly disclosed pursuant to
      authorization by the Executive Committee is confidential and proprietary
      information of the Company, the disclosure of which would cause
      irreparable harm to the Company and the Members.  Accordingly,
      each Member represents that it has not and agrees that it will not and
      will direct its shareholders, partners, directors, officers, agents,
      advisors and Affiliates not to, disclose to any Person any Confidential
      Information or confirm any statement made by third Persons regarding
      Confidential Information until the Company has publicly disclosed the
      Confidential Information pursuant to authorization by the Executive
      Committee and has notified each Member that it has done so; provided,
      however, any Member (or its Affiliates) may disclose such Confidential
      Information (i) to any of its or its Affiliates’ directors, officers,
      investment advisors, auditors, employees, members, shareholders, outside
      regulators, attorneys and accountants who have a need to know such
      information and for whom such Member shall be responsible, (ii) if
      required by law (it being specifically understood and agreed that anything
      set forth in a registration statement or any other document filed pursuant
      to law will be deemed required by law) or (iii) necessary for it to
      perform any of its duties or obligations hereunder or in any property
      management agreement or development management agreement to which it is a
      party covering any Company property or any of the Properties. MAAC or
      MAALP will not refer to Thackeray by name in its public documents unless
      it is required to do so upon legal advice or unless it received prior
      approval from Thackeray, with the exception of the filing of an initial
      8-K and press release (but, no investors in Thackeray Partners Realty Fund
      II, L.P. shall be mentioned in any press release or other disclosure or
      communication without the prior written consent of Thackeray in its sole
      discretion except as required by
law).

            

    

     

    13.22.2. No Disclosure»

     

    
      	
               
      

            	
              .  Subject
      to the exceptions set forth in Section
      13.22.1, each Member agrees not to disclose any Confidential
      Information to any Person (other than a Person set forth in the proviso of
      Section 13.22.1
      who agrees to maintain all Confidential Information in strict confidence
      or a judge, magistrate or referee or other Persons involved in any action,
      suit or proceeding relating to or arising out of this Agreement or
      otherwise), and to keep confidential all documents (including, without
      limitation, responses to discovery requests) containing any Confidential
      Information except to the extent such Confidential Information is already
      in the public domain or in such Member’s reasonable discretion required to
      be made in, or properly the subject of, any disclosure in any filings with
      the United States Securities and Exchange Commission or other governmental
      entity having jurisdiction over such Member.  Each Member hereby
      consents in advance to any motion for any protective order brought by any
      other Member represented as being intended by the movant to implement the
      purposes of this Section
      13.23 provided that, if a Member receives a request to disclose any
      Confidential Information under the terms of what such Member believes in
      good faith to be a valid and effective order issued by a court or
      governmental agency and the order was not sought by or on behalf of or
      consented to by such Member, then such Member may disclose the
      Confidential Information to the extent required if the Member as promptly
      as practicable notifies each of the other Members of the existence, terms
      and circumstances of the order, consults in good faith with each of the
      other Members on the advisability of taking legally available steps to
      resist or to narrow the order, and if disclosure of the Confidential
      Information is required, exercises its best efforts to obtain a protective
      order or other reliable assurance that confidential treatment will be
      accorded to the portion of the disclosed Confidential Information that any
      other Member designates.  The cost (including, without
      limitation, attorneys' fees and expenses) of obtaining a protective order
      covering Confidential Information designated by such other Member will be
      borne by the Company.

            

    

     

    13.22.3. Survival»

     

    
      	
               
      

            	
              .  The
      covenants contained in this Section 13.22
      will survive the Transfer of the Interest of any Member and the
      termination of the Company.

            

    

     

    13.23. Enforceability of Power of
Attorney»

     

    .  In
the event it is subsequently determined that any power of attorney provision in
this Agreement is unenforceable, the parties hereto agree to execute,
acknowledge, deliver, file, record and publish such other instruments and
documents (including separate powers of attorney), and do all such other acts
and things as may be required by law, or as may be required to carry out the
intent and purposes of such power of attorney provisions.

     

    

     

    SIGNATURES
INTENTIONALLY ON NEXT PAGE

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
set forth in the introductory paragraph hereof.

     

    MANAGING
MEMBER:

    

    

    MID-AMERICA
APARTMENTS, L.P.,

    a
Tennessee limited partnership

    By:           Mid-America
Apartment Communities, Inc.,

    a Tennessee corporation, its general
partner

    

    By:   /s/ Simon R.C.
Wadsworth

    Simon R.C. Wadsworth

    Chief Financial Officer

    

    

    MEMBER:

    

    TPRF II/Memphis Investor, L.L.C.,
a Delaware limited liability company

    

    By:           /s/ Anthony W. Dona

    Name:        Anthony W.
Dona

    Title:          Co-Presidentex10-1.htm

     

    Exhibit
10.1

    MERGER
TERMINATION AGREEMENT

    

    This Merger Termination Agreement (this
“Agreement”) is entered into as of June 25, 2009 by and between Berkshire Hills
Bancorp, Inc. (“Berkshire Hills Bancorp”), a Delaware corporation, and CNB
Financial Corp. (“CNB Financial”), a Massachusetts corporation.

    

    RECITALS

    

    WHEREAS, Berkshire Hills Bancorp and
CNB Financial have entered into an Agreement and Plan of Merger, dated April 29,
2009, as amended on May 21, 2009 (the “Merger Agreement”); and

    

    WHEREAS, capitalized terms used but not
otherwise defined herein shall have the respective meanings assigned to such
terms in the Merger Agreement; and

    

    WHEREAS, Section 7.1(a) of the Merger
Agreement provides that the Merger Agreement may be terminated at any time prior
to the Effective Time of the Merger by mutual written consent of Berkshire Hills
Bancorp and CNB Financial; and

    

    WHEREAS, Berkshire Hills Bancorp and
CNB Financial intend to terminate the Merger Agreement effective upon the
receipt by Berkshire Hills Bancorp of the Fee provided for in Section 2(b) of
this Agreement; and

    

    WHEREAS, the Boards of Directors of
Berkshire Hills Bancorp and CNB Financial have each authorized the termination
of the Merger Agreement pursuant to the terms of this Agreement.

    

    AGREEMENT

    

    NOW, THEREFORE, in consideration of the
promises and the agreements set forth herein, the parties agree as
follows:

    

    1.           Termination of Merger
Agreement.  Effective immediately upon receipt by Berkshire
Hills Bancorp of the Fee described in Section 2(b) below, Berkshire Hills
Bancorp and CNB Financial hereby terminate the Merger Agreement pursuant to
Section 7.1(a) of the Merger Agreement by the mutual consent of the parties
thereto.  If the Fee is not received by Berkshire Hills Bancorp by the
date specified in Section 2(b) below, this Agreement shall become null and void
and have no effect, and the Merger Agreement shall continue in full force and
effect as if this Agreement had not been entered into.

    

    2.           Effect of Termination;
Mutual Discharge and Waiver.

    

    (a)           Except
as expressly provided in this Agreement, including Section 4 hereto, as a result
of the termination of the Merger Agreement pursuant to this Agreement, the
Merger Agreement shall become void, and there shall be no liability under the
Merger Agreement on the part of any party hereto or any of their respective
affiliates, subsidiaries,

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    directors,
officers, shareholders, employees, agents, financial and legal advisors and
other representatives, and all rights and obligations of each party thereto
shall cease, except that no party shall be relieved or released from any
liabilities or damages arising out of a willful breach as provided in Section
7.3 of the Merger Agreement.

    

    (b)           CNB
Financial shall pay to Berkshire Hills Bancorp the $970,000 termination fee (the
“Fee”) provided for in Section 7.2(a) of the Merger Agreement on or before the
business day following the date of this Agreement.  Payment of the Fee
shall be made by wire transfer of immediately available funds to the account
designated by Berkshire Hills Bancorp on Exhibit A
hereto.  In the event CNB Financial has paid the Fee by wire transfer
to the account designated on Exhibit A before the execution of this Agreement,
the Fee shall be deemed to be received by Berkshire Hills Bancorp concurrently
with the execution of this Agreement.  Berkshire Hills Bancorp
acknowledges that payment of the Fee shall constitute full and final
satisfaction of any and all obligations of CNB Financial under Section 7.2 of
the Merger Agreement.

    

    (c)           Effective
upon receipt by Berkshire Hills Bancorp of the Fee described in Section 2(b)
above, each party hereto, on behalf of itself and, to the extent permitted by
law, its affiliates, subsidiaries, directors, officers, shareholders, employees,
agents, financial and legal advisors and other representatives, and the
successors and assigns of each of them (each, a “Releasing Party”), hereby
releases the other party hereto and each of its respective affiliates,
subsidiaries, directors, officers, shareholders, employees, agents, financial
and legal advisors and other representatives, and the successors and assigns of
each of them, from any and all liabilities and obligations, claims, causes of
action and suits, at law or in equity, whether now known or unknown, whether
arising under any federal, state, local or foreign law or otherwise, that any
Releasing Party has, has had or may have in the future arising out of, relating
to, or in connection with the Merger Agreement, the CNB Financial Voting
Agreements and the transactions contemplated thereby, including, without
limitation, any liability or obligation set forth in Section 7.2 of the Merger
Agreement and any liability or obligation arising out of any breach or alleged
breach of any representation, warranty, covenant or agreement contained in the
Merger Agreement, provided that nothing in this Section 2 shall impair the
survival and full force of the Confidentiality Agreements (as defined in Section
4 below).

    

    3.           Acknowledgement of
Termination of CNB Financial Voting Agreements.  Berkshire
Hills Bancorp and CNB Financial each acknowledge that, effective upon and by
virtue of the termination of the Merger Agreement pursuant to Section 1 hereof,
the CNB Financial Voting Agreements executed in connection with the Merger
Agreement shall be simultaneously terminated in accordance with their terms and
no obligations, rights, responsibilities or other encumbrances or restrictions
of any kind shall result or arise therefrom.

    

    4.           Survival of Confidentiality
Agreement.  Notwithstanding anything contained in this
Agreement or in the Merger Agreement to the contrary, the provisions of the
Confidentiality Agreements dated February 23, 2009 and April 9, 2009 between
Berkshire Hills Bancorp and CNB Financial (the “Confidentiality Agreements”)
shall survive and remain in full force and effect in accordance with its
terms.  On or before July 10, 2009, Berkshire Hills Bancorp and CNB
Financial agree to return to the other party all Confidential Information (as
such term is

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    defined
in the Confidentiality Agreements) held by it or any of its affiliates,
directors, officers, employees, agents, financial advisors, legal advisors,
accountants or controlling persons (the “Representatives’), and to destroy all
other documents, memoranda, notes, summaries, analyses, extracts, compilations,
studies or other material prepared by or in the possession of the other party of
their Representatives, based on the Confidential Information.  Each
party acknowledges that the Confidentiality Agreements apply to any respective
successor(s) thereof.

    

    5.           Representations of Berkshire
Hills Bancorp.  Each of Berkshire Hills Bancorp and its
subsidiaries is an entity duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization and has requisite power
and authority to operate its business as it is now currently
conducted.  Berkshire Hills Bancorp has full corporate power and
authority to execute and deliver this Agreement.  This Agreement has
been duly and validly executed and delivered by Berkshire Hills Bancorp and
constitutes a valid binding obligation of Berkshire Hills Bancorp enforceable
against Berkshire Hills Bancorp in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditor’s rights generally and by general equitable
principles.

    

    6.           Representations of CNB
Financial.  Each of CNB Financial and its subsidiaries is an
entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization and has requisite power and authority to
operate its business as it is now currently conducted.  CNB Financial
has full corporate power and authority to execute and deliver this
Agreement.  This Agreement has been duly and validly executed and
delivered by CNB Financial and constitutes a valid binding obligation of CNB
Financial enforceable against CNB Financial in accordance with its terms, except
as such enforceability may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws now or hereafter in
effect relating to creditor’s rights generally and by general equitable
principles.

    

    7.           Public
Announcement.  Berkshire Hills Bancorp and CNB Financial
acknowledge that each intends to issue a press release promptly after the
execution of this Agreement with respect to this Agreement and the termination
of the Merger Agreement.  Each of Berkshire Hills Bancorp and CNB
Financial shall consult with the other before issuing such press
release.

    

    8.           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without regard to conflicts
of laws principles.  This Agreement shall be binding upon any
successor to Berkshire Hills Bancorp or CNB Financial.

    

    9.           Specific
Performance.  The parties hereto agree that irreparable damage
would occur in the event any provision of this Agreement was not performed in
accordance with the terms hereof and that the parties shall be entitled to
specific performance of the terms hereof, in addition to any other remedy at law
or in equity.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    10.           Headings.  The
descriptive headings contained in this Agreement are included for convenience of
reference only and shall not effect in any way the meaning or interpretation of
this Agreement.

    

    11.           Amendment;
Counterparts.  This Agreement may be modified or amended only
by a writing signed by the parties hereto.  This Agreement may be
executed and delivered (including by facsimile transmission) in one or more
counterparts, and by the different parties hereto in separate counterparts, each
of which when executed and delivered shall be deemed to be an original but all
of which taken together shall constitute one and the same
agreement.

    

    [Remainder
of page intentionally blank]

     

     

     

     

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed by their duly authorized officers as
of the date first written above.

    

    
      
        
          
            
              	 
      	 	
                      Berkshire
      Hills Bancorp, Inc.

                    
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Michael P. Daly

                    
	 
      	 
      	
                      Michael
      P. Daly

                    
	 
      	 
      	
                      President
      and Chief Executive Officer

                    
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 	
                      CNB
      Financial Corp.

                    
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Cary J. Corkin

                    
	 
      	 
      	
                      Cary
      J. Corkin

                    
	 
      	 
      	
                      Chairman
      of the Board of
Directors

                    

            

          

        

      

    

    

    

    5

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