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EXHIBIT 4.3

INREIT REAL ESTATE INVESTMENT TRUST

FIRST AMENDED AND RESTATED DECLARATION OF TRUST

ARTICLE I.

NAME

     The name of the trust (which is hereinafter called the “Trust”) is: INREIT Real Estate
Investment Trust.

ARTICLE II.

PURPOSES AND POWERS

     The Trust may engage in any lawful business or activity for which trusts may be organized
under the general laws of the State of North Dakota as now or hereafter in force (including,
without limitation or obligation, engaging in business as a real estate investment trust under the
Internal Revenue Code of 1986, as amended, or any successor statute), and shall possess all powers
necessary to conduct any business in which it is authorized to engage, including but not limited
to, all those powers expressly conferred upon real estate investment trusts by the North Dakota
Century Code Chapter 10-34, as they may from time to time be amended, together with those powers
implied therefrom.

ARTICLE III.

PRINCIPAL OFFICE IN NORTH DAKOTA AND RESIDENT AGENT

     The address of the principal office of the Trust in the State of North Dakota is 216 South
Broadway, Suite 202, Minot, North Dakota 58701. The name and address of the resident agent of the
Trust is CT Corporation at 314 E. Thayer Ave., Bismarck, ND 58501.

ARTICLE IV.

DEFINITIONS

     As used in this Charter, the following terms shall have the following meanings unless the
context otherwise requires:

     Acquisition Expenses shall mean any and all expenses incurred by the Trust, the
Advisor, or any Affiliate of either in connection with the selection, acquisition or development of
any Asset, whether or not acquired, including, without limitation, legal fees and expenses, travel
and communications expenses, costs of appraisals, nonrefundable option payments on property not
acquired, accounting fees and expenses and title insurance premiums.

     Acquisition Fees shall mean any and all fees and commissions, exclusive of Acquisition
Expenses, paid by any Person to any other Person (including any fees or commissions paid by or to
any Affiliate of the Trust or the Advisor) in connection with making or investing in Real Estate
Related Assets or the purchase, development or construction of a Property, including real estate
commissions, selection fees, Development Fees, Construction Fees, nonrecurring management fees,
loan fees, points or any other fees of a similar nature. Excluded shall be Development Fees and
Construction Fees paid to any Person not affiliated with the Sponsor in connection with the actual
development and construction of a project.

     Advisor or Advisors shall mean the Person or Persons, if any, appointed, employed or
contracted with by the Trust pursuant to Section 8.1 hereof and responsible for directing or
performing the day-to-day business affairs of the Trust, including any Person to whom such Advisor
subcontracts all or substantially all of such functions.

     Advisory Agreement shall mean the agreement between the Trust, the Operating
Partnership, the Advisor and the other parties named therein pursuant to which the Advisor will
direct or perform the day-to-day business affairs of the Trust.

     Affiliate or Affiliated shall mean, with respect to any Person, (i) any Person
directly or indirectly owning, controlling or holding, with power to vote 10% or more of the
outstanding voting securities of such other Person;

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(ii)any Person 10% or more of whose outstanding voting securities are directly or indirectly
owned, controlled or held with power to vote by such other Person; (iii) any Person directly or
indirectly controlling, controlled by or under common control with such other Person; (iv) any
executive officer, trustee, trustee or general partner of such other Person; and (v) any legal
entity for which such Person acts as an executive officer, trustee, trustee or general partner.

     Aggregate Share Ownership Limit shall mean not more than 9.9% in value in the
aggregate of the outstanding Shares.

     Asset shall mean any Property, Real Estate Related Asset or other investment (other
than investments in bank accounts, money market funds, marketable securities or other current
assets) owned by the Trust, directly or indirectly through one or more of its Affiliates, and any
other investment made by the Trust, directly or indirectly through one or more of its Affiliates.

     Average Invested Assets shall mean, for any specified period, the average of the
aggregate book value of the Assets of the Trust invested, directly or indirectly, in Real Estate
and Real Estate Related Assets, before deducting depreciation, bad debts or other non-cash
reserves, computed by taking the average of such values at the end of each month during such
period.

     Beneficial Ownership shall mean ownership of Shares by a Person, whether the interest
in Shares is held directly or indirectly (including by a nominee), and shall include interests that
would be treated as owned through the application of Section 544 of the Code, as modified by
Section 856(h)(1)(B) of the Code. The terms “Beneficial Owner,” “Beneficially Owns” and
“Beneficially Owned” shall have the correlative meanings.

     Board or Board of Trustees shall mean the board of trustees of the Trust.

     Business Day shall mean any day, other than a Saturday or Sunday, that is neither a
legal holiday nor a day on which banking institutions in New York City are authorized or required
by law, regulation or executive order to close.

     Bylaws shall mean the Bylaws of the Trust, as amended by the Amended and Restated
Bylaws, and as may be amended further from time to time.

     Charitable Beneficiary shall mean one or more beneficiaries of the Charitable Trust as
determined pursuant to Section 6.2.6, provided that each such organization must be described in
Section 501(c)(3) of the Code and contributions to each such organization must be eligible for
deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

     Charitable Trust shall mean any trust provided for in Section 6.2.1.

     Charitable Trustee shall mean the Person unaffiliated with the Trust and a Prohibited
Owner that is appointed by the Trust to serve as trustee of the Charitable Trust.

     Charter shall mean the Declaration of Trust of the Trust, as amended by the First
Amended and Restated Declaration of Trust, and as may be amended further from time to time.

     Code shall mean the Internal Revenue Code of 1986, as amended, or any successor
statute.

     Common Share Ownership Limit shall mean not more than 9.9% (in value or in number of
Common Shares, whichever is more restrictive) of the aggregate of the outstanding Common Shares of
Beneficial Interest.

     Common Shares shall mean common shares of beneficial interest of the Trust.

     Competitive Real Estate Commission shall mean a real estate or brokerage commission
paid for the purchase or sale of a Property that is reasonable, customary and competitive in light
of the size, type and location of the Property.

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     Construction Fee shall mean a fee or other remuneration for acting as general
contractor and/or construction manager to construct improvements, supervise and coordinate projects
or to provide major repairs or rehabilitations on a Property.

     Constructive Ownership shall mean ownership of Shares by a Person, whether the
interest in Shares is held directly or indirectly (including by a nominee), and shall include
interests that would be treated as owned through the application of Section 318(a) of the Code, as
modified by Section 856(d)(5) of the Code. The terms “Constructive Owner,” “Constructively Owns,”
“Constructively Owned” and “Constructively” (as the context requires) shall have the correlative
meanings.

     Contract Purchase Price shall mean the amount actually paid or allocated in respect of
the purchase, development, construction or improvement of a Property or the amount of funds
advanced with respect to a Mortgage, or the amount actually paid or allocated in respect of the
purchase of other Assets, in each case exclusive of Acquisition Fees and Acquisition Expenses.

     Development Fee shall mean a fee for the packaging of a Property, including
negotiating and approving plans, and undertaking to assist in obtaining zoning and necessary
variances and financing for a specific Property, either initially or at a later date.

     Distributions shall mean any distributions of money or other property, pursuant to
Section 5.5 hereof, by the Trust to owners of Shares, including distributions that may constitute a
return of capital for federal income tax purposes.

     Distributor shall mean, in connection with an Offering, any other Person selected by
the Board of Trustees to act as an underwriter or a broker-dealer that is a member in good standing
of FINRA or is exempt from the broker-dealer registration requirements, and that, in any case,
enters into an agreement with the Trust to sell Shares. This shall also include any
sub-distributors that such Distributor may engage by written agreement to sell the Shares in the
Offering who shall either be a member in good standing of FINRA or exempt from the broker-dealer
registration requirements.

     Excepted Holder shall mean a Shareholder for whom an Excepted Holder Limit is created
by Article VI or by the Board of Trustees pursuant to Section 6.1.7.

     Excepted Holder Limit shall mean with respect to any Shareholder, the percentage limit
established by the Board of Trustees pursuant to Section 6.1.7 for such Shareholder, subject to
adjustment pursuant to Section 6.1.8.

     Excess Amount shall mean the amount of the Total Operating Expenses exceeding the
2%/25% Guidelines where the Independent Trustees have made a finding that, based on such unusual
and non-recurring factors that they deem sufficient, such additional expenses are justified.

     FINRA shall mean the Financial Industry Regulatory Authority, Inc.

     Gross Proceeds shall mean the aggregate purchase price of all Shares sold for the
account of the Trust through an Offering, without deduction for Selling Commissions, volume
discounts, any marketing support and due diligence expense reimbursement or Organization and
Offering Expenses. For the purpose of computing Gross Proceeds, the purchase price of any Share for
which reduced Selling Commissions are paid to a Distributor (where net proceeds to the Trust are
not reduced) shall be deemed to be the full amount of the offering price per Share pursuant to the
Prospectus for such Offering without reduction.

     Indemnitee shall have the meaning as provided in Section 12.2(b) and (c) herein.

     Independent Appraiser shall mean a Person with no material current or prior business
or personal relationship with the Advisor or any of the Trustees (other than having
contemporaneously or previously provided appraisal services with respect to any Properties or
Assets of the Trust), and who is engaged to a substantial extent in the business of rendering
opinions regarding the value of Real Property and/or other Assets of the type held by the Trust.
Membership in a nationally recognized appraisal society such as the American Institute of Real
Estate Appraisers or the Society of Real Estate Appraisers shall be conclusive evidence of being
engaged to a substantial extent in the business of rendering opinions regarding the value of Real
Property.

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     Independent Trustee shall mean a Trustee who is not on the date of determination, and
within the last two years from the date of determination has not been, directly or indirectly,
associated with the Sponsor or the Advisor by virtue of (i) ownership of an interest in the
Sponsor, the Advisor or any of their Affiliates, other than the Trust (other than ownership of less
than one percent of any such entity that is a publicly traded company), (ii) employment by the
Sponsor, the Advisor or any of their Affiliates, (iii) service as an officer or director of the
Sponsor, the Advisor or any of their Affiliates, other than as a Trustee of the Trust, (iv)
performance of services, other than as a Trustee, for the Trust, (v) service as a trustee or
director of more than three REITs organized by the Sponsor or advised by the Advisor, or (vi)
maintenance of a material business or professional relationship with the Sponsor, the Advisor or
any of their Affiliates. A business or professional relationship is considered “material” if the
aggregate gross revenue derived by the Trustee from the Sponsor, the Advisor and their Affiliates
exceeds 5% of either the Trustee’s annual gross revenue, derived from all sources, during either of
the last two years or the Trustee’s net worth on a fair market value basis. An indirect association
with the Sponsor, Advisor or any of their Affiliates shall include circumstances in which a
Trustee’s spouse, parent, child, sibling, mother- or father-in-law, son- or daughter-in-law or
brother- or sister-in-law is or has been associated with the Sponsor, the Advisor any of their
Affiliates or the Trust.

     Initial Date shall mean the effective date of the Form 10 filed by the Trust.

     Initial Investment shall mean that portion of the initial capitalization of the Trust
contributed by the Sponsor or its Affiliate in exchange pursuant to Section II.A. of the NASAA REIT
Guidelines.

     Invested Capital shall mean the amount calculated by multiplying the total number of
Shares purchased by Shareholders by the issue price at the time of such purchase, reduced by the
portion of any Distribution that is attributable to Net Sales Proceeds and by any amounts paid by
the Trust to repurchase Shares pursuant to any Trust’s plan for the repurchase of Shares.

     Joint Ventures shall mean those joint venture or partnership arrangements (excluding
the Trusts’ general partnership interest in the Operating Partnership) in which the Trust or any of
its subsidiaries is a co-venturer or general partner established to acquire or hold Assets.

     Leverage shall mean the aggregate amount of indebtedness of the Trust for money
borrowed (including purchase money mortgage loans) outstanding at any time, both secured and
unsecured.

     Listing shall mean the listing of the Common Shares on a national securities exchange,
but shall not include the trading of the Common Shares on the over-the-counter markets. Upon such
Listing, the Common Shares shall be deemed Listed.

     Market Price on any date shall mean, with respect to any class or series of
outstanding Shares, the Closing Price for such Shares on such date. The “Closing Price” on any date
shall mean the last sale price for such Shares, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, for such Shares, in
either case as reported on the principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which such Shares are listed or
admitted to trading or, if such Shares are not listed or admitted to trading on any national
securities exchange, the average of the closing bid and asked prices as furnished by a professional
market maker making a market in such Shares selected by the Board of Trustees or, in the event that
no trading price is available for such Shares or such trading is limited and not regular, the fair
market value of Shares as determined in good faith by the Board of Trustees.

     Mortgages shall mean, in connection with mortgage financing provided, invested in,
participated in or purchased by the Trust, all of the notes, deeds of trust, security interests or
other evidences of indebtedness or obligations, which are secured or collateralized by Real
Property owned by the borrowers under such notes, deeds of trust, security interests or other
evidences of indebtedness or obligations.

     NASAA REIT Guidelines shall mean the Statement of Policy Regarding Real Estate
Investment Trusts published by the North American Securities Administrators Association on May 7,
2007 and in effect on the Initial Date.

     NDCC shall mean Chapter 10-34 of the North Dakota Century Code, as amended from time
to time.

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     Net Assets shall mean the total Assets of the Trust (other than intangibles) at cost
before deducting depreciation or other non-cash reserves less total liabilities, calculated at
least quarterly by the Trust on a basis consistently applied.

     Net Asset Value shall mean the value as of the end of each Business Day determined by
subtracting the Trust’s liabilities, including any fees payable to the Advisor or the Distributor,
Organization and Offering Expenses and other expenses attributable to the Trust’s operations, from
the Assets.

     Net Asset Value Per Share shall mean the value per Share as of the end of each
Business Day determined by dividing the Net Asset Value by the number of Common Shares of
Beneficial Interest outstanding as of the end of business on such day prior to giving effect to any
Share purchases or redemptions to be effected on such day.

     Net Income shall mean for any period, the Trust’s total revenues applicable to such
period, less the total expenses applicable to such period other than additions to reserves for
depreciation, bad debts or other similar non-cash reserves. If the Advisor receives an incentive
fee, Net Income, for purposes of calculating Total Operating Expenses, shall exclude the gain from
the sale of the Trust’s Assets.

     Net Sales Proceeds shall mean in the case of a transaction described in clause (i)(A)
of the definition of Sale, the proceeds of any such transaction less the amount of selling expenses
incurred by or on behalf of the Trust, including all real estate commissions, closing costs and
legal fees and expenses. In the case of a transaction described in clause (i)(B) of the definition
of Sale, Net Sales Proceeds means the proceeds of any such transaction less the amount of selling
expenses incurred by or on behalf of the Trust, including any legal fees and expenses and other
selling expenses incurred in connection with such transaction. In the case of a transaction
described in clause (i)(C) of the definition of Sale, Net Sales Proceeds means the proceeds of any
such transaction actually distributed to the Trust or the Operating Partnership from the Joint
Venture less the amount of any selling expenses, including legal fees and expenses incurred by or
on behalf of the Trust (other than those paid by the Joint Venture). In the case of a transaction
or series of transactions described in clause (i)(D) of the definition of Sale, Net Sales Proceeds
means the proceeds of any such transaction (including the aggregate of all payments under a
Mortgage on or in satisfaction thereof other than regularly scheduled interest payments) less the
amount of selling expenses incurred by or on behalf of the Trust, including all commissions,
closing costs and legal fees and expenses. In the case of a transaction described in clause (i)(E)
of the definition of Sale, Net Sales Proceeds means the proceeds of any such transaction less the
amount of selling expenses incurred by or on behalf of the Trust, including any legal fees and
expenses and other selling expenses incurred in connection with such transaction. In the case of a
transaction described in clause (ii) of the definition of Sale, Net Sales Proceeds means the
proceeds of such transaction or series of transactions less all amounts generated thereby which are
reinvested in one or more Assets within 180 days thereafter and less the amount of any real estate
commissions, closing costs, and legal fees and expenses and other selling expenses incurred by or
allocated to the Trust or the Operating Partnership in connection with such transaction or series
of transactions. Net Sales Proceeds shall also include any amounts that the Trust determines, in
its discretion, to be economically equivalent to proceeds of a Sale. Net Sales Proceeds shall not
include any reserves established by the Trust in its sole discretion.

     Offering shall mean any offering and sale of Shares.

     Operating Partnership shall mean INREIT Properties, LLLP, a North Dakota limited
liability limited partnership, and any additional entities through which the Trust may own Assets.

     Organization and Offering Expenses shall mean any and all costs and expenses incurred
by and to be paid from the Assets of the Trust in connection with the formation, qualification and
registration of the Trust, and the marketing and distribution of Shares, including, without
limitation, total underwriting and brokerage discounts and commissions (including fees of the
underwriters’ attorneys), expenses for printing, engraving, amending, supplementing and mailing,
salaries of employees while engaged in sales activity, telephone and other telecommunications
costs, all advertising and marketing expenses (including the costs related to investor and
broker-dealer sales meetings), charges of transfer agents, registrars, trustees, escrow holders,
depositories, experts, fees, expenses and taxes related to the filing, registration and
qualification of the sale of the Shares under federal and state laws, including taxes and fees and
accountants’ and attorneys’ fees.

     Person shall mean any natural person, corporation, partnership, limited liability
company, estate, trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the
Code), a portion of a trust permanently set

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aside for or to be used exclusively for the purposes described in Section 642(c) of the Code,
association, private foundation within the meaning of Section 509(a) of the Code, joint stock
company or other legal entity and also includes a group as that term is used for purposes of
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and a group to which an
Excepted Holder Limit applies.

     Preferred Shares shall mean preferred shares of beneficial interests, of the Trust.

     Prohibited Owner shall mean, with respect to any purported Transfer, any Person who,
but for the provisions of Section 6.1, would Beneficially Own or Constructively Own Shares, and if
appropriate in the context, shall also mean any Person who would have been the record owner of
Shares that the Prohibited Owner would have so owned.

     Property or Properties shall mean, as the context requires, any, or all, respectively,
of the Real Property acquired by the Trust, directly or indirectly through joint venture
arrangements or other partnership or investment interests.

     Prospectus shall mean the same as that term is defined in Section 2(10) of the
Securities Act, including a preliminary prospectus, an offering circular as described in Rule 256
of the General Rules and Regulations under the Securities Act, or, in the case of an intrastate
offering, any document by whatever name known, utilized for the purpose of offering and selling
Securities to the public.

     Real Estate Related Asset shall mean any investments by the Trust or the Operating
Partnership in (a) mortgage, mezzanine, bridge and other loans on Real Property, (b) equity
securities such as common stocks, preferred stocks and convertible securities of public or private
real estate companies, and (c) debt securities such as collateralized mortgage backed securities,
commercial mortgages and other debt securities.

     Real Property or Real Estate shall mean land; rights in land (including leasehold
interests); any buildings, structures, improvements, furnishings, fixtures and equipment located on
or used in connection with land and rights or interests in land; or mortgage foreclosures.

     Reinvestment Plan shall have the meaning as provided in Section 5.10 herein.

     REIT shall mean a corporation, trust, association or other legal entity (other than a
real estate syndication) which is engaged primarily in investing in equity interests in real estate
(including fee ownership and leasehold interests) or in loans secured by real estate or both as
defined pursuant to the REIT Provisions of the Code.

     REIT Provisions of the Code shall mean Sections 856 through 860 of the Code and any
successor or other provisions of the Code relating to REITs (including provisions as to the
attribution of ownership of beneficial interests therein) and the regulations promulgated
thereunder.

     Restriction Termination Date shall mean the first day after the Initial Date on which
the Board of Trustees determines that it is no longer in the best interests of the Trust to attempt
to, or continue to, qualify as a REIT or that compliance with the restrictions and limitations on
Beneficial Ownership, Constructive Ownership and Transfers of Shares set forth herein is no longer
required in order for the Trust to qualify as a REIT.

     Roll-Up Entity shall mean a partnership, REIT, corporation, trust or similar entity
that would be created or would survive after the successful completion of a proposed Roll-Up
Transaction.

     Roll-Up Transaction shall mean a transaction involving the acquisition, merger,
conversion or consolidation, either directly or indirectly, of the Trust and the issuance of
securities of a Roll-Up Entity to the Shareholders. Such term does not include:

     (a) a transaction involving Securities of the Trust that have been for at least twelve months
listed on a national securities exchange or traded through FINRA’s Automated Quotation National
Market System; or

     (b) a transaction involving the conversion to corporate, trust or association form of only the
Trust if, as a consequence of the transaction, there will be no significant adverse change in any
of the following:

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	 	(i)	 	Shareholders’ voting rights;
	 
	 	(ii)	 	the term of existence of the Trust;
	 
	 	(iii)	 	Sponsor or Advisor compensation; or
	 
	 	(iv)	 	the Trust’s investment objectives.

     Sale or Sales shall mean (i) any transaction or series of transactions whereby: (A)
the Trust or the Operating Partnership directly or indirectly (except as described in other
subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of
any Property or portion thereof, including the lease of any Property consisting of a building only,
and including any event with respect to any Property which gives rise to a significant amount of
insurance proceeds or condemnation awards; (B) the Trust or the Operating Partnership directly or
indirectly (except as described in other subsections of this definition) sells, grants, transfers,
conveys, or relinquishes its ownership of all or substantially all of the interest of the Trust or
the Operating Partnership in any Joint Venture in which it is a co-venturer or partner; (C) any
Joint Venture directly or indirectly (except as described in other subsections of this definition)
in which the Trust or the Operating Partnership as a co-venturer or partner sells, grants,
transfers, conveys, or relinquishes its ownership of any Property or portion thereof, including any
event with respect to any Property which gives rise to insurance claims or condemnation awards; (D)
the Trust or the Operating Partnership directly or indirectly (except as described in other
subsections of this definition) sells, grants, conveys or relinquishes its interest in any Real
Estate Related Asset or portion thereof (including with respect to any Mortgage, all payments
thereunder or in satisfaction thereof other than regularly scheduled interest payments) of amounts
owed pursuant to such Mortgage and any event which gives rise to a significant amount of insurance
proceeds or similar awards; or (E) the Trust or the Operating Partnership directly or indirectly
(except as described in other subsections of this definition) sells, grants, transfers, conveys, or
relinquishes its ownership of any other Asset not previously described in this definition or any
portion thereof, but (ii) not including any transaction or series of transactions specified in
clause (i) (A) through (E) above in which the proceeds of such transaction or series of
transactions are reinvested by the Trust in one or more Assets within 180 days thereafter.

     Securities shall mean any of the following issued by the Trust, as the text requires:
Shares, any other share of beneficial interest, shares or other evidences of equity or beneficial
or other interests, voting trust certificates, bonds, debentures, notes or other evidences of
indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any
instruments commonly known as “securities” or any certificates of interest, shares or
participations in, temporary or interim certificates for, receipts for, guarantees of, or warrants,
options or rights to subscribe to, purchase or acquire, any of the foregoing.

     Securities Act shall mean the Securities Act of 1933, as amended from time to time, or
any successor statute thereto.

     Selling Commissions shall mean any and all commissions payable to underwriters or
other broker-dealers in connection with the sale of Shares, including, without limitation,
commissions payable to the Distributor.

     Shares shall mean shares of beneficial interest of the Trust of any class or series,
including Common Shares or Preferred Shares.

     Soliciting Dealers shall mean those broker-dealers that are members in good standing
of FINRA, or that are exempt from broker-dealer registration requirements, and that, in either
case, enter into participating broker or other agreements with the Distributor to sell Shares.

     Sponsor shall mean any Person: (a) directly or indirectly instrumental in organizing,
wholly or in part, the Trust or any Person who will control, manage or participate in the
management of the Trust, and any Affiliate of such Person; (b) taking the initiative, directly or
indirectly, in founding or organizing the business or enterprise of the Trust, either alone or in
conjunction with one or more other Persons, (c) receiving a material participation in the Trust in
connection with the founding or organizing of the business of the Trust, in consideration of
services or property, or both services and property, (d) having a substantial number of
relationships and contacts with the Trust, (e) possessing significant rights to control the Trust’s
Properties, (f) receiving fees for providing services to the Trust which are paid on a basis that
is not customary in the industry or (g) providing goods or services to the Trust on a basis which
was not negotiated at arm’s-length with the Trust. Does not include: (1) any Person whose only

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relationship with the Trust is that of an independent property manager of the Trust’s Assets
and whose only compensation is as such; or (2) wholly independent third parties such as attorneys,
accountants and underwriters whose only compensation is for professional services.

     Shareholder List shall mean an alphabetical list of the names, addresses and telephone
numbers of the Shareholders, along with the number of Shares held by each of them.

     Shareholders shall mean the holders of record of the Shares as maintained in the books
and records of the Trust or its transfer agent.

     Termination Date shall mean the date of termination of the Advisory Agreement.

     Total Operating Expenses shall mean all costs and expenses paid or incurred by the
Trust, as determined under generally accepted accounting principles, that are in any way related to
the operation of the Trust or to the Trust’s business, including advisory fees. Does not include
(a) the expenses of raising capital such as Organization and Offering Expenses, legal, audit,
accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such
expenses and tax incurred in connection with the issuance, distribution, Transfer, registration and
Listing of the Shares; (b) interest payments; (c) taxes; (d) non-cash expenditures such as
depreciation, amortization and bad debt reserves; (e) incentive fees paid in compliance with the
NASAA REIT Guidelines; (f) Acquisition Fees and Acquisition Expenses, real estate commissions on
the Sale of Property and other fees and expenses connected with the acquisition, disposition, and
ownership of real estate interests, mortgage loans or other Property (such as the costs of
foreclosure, insurance premiums, legal services, maintenance, repair and improvement of Property).

     Transfer shall mean any issuance, sale, transfer, gift, assignment, devise or other
disposition, as well as any other event that causes any Person to acquire Beneficial Ownership or
Constructive Ownership, or any agreement to take any such actions or cause any such events, of
Shares or the right to vote or receive Distributions, including (a) the granting or exercise of any
option (or any disposition of any option); (b) any disposition of any Securities or rights
convertible into or exchangeable for Shares or any interest in Shares or any exercise of any such
conversion or exchange right; and (c) Transfers of interests in other entities that result in
changes in Beneficial Ownership or Constructive Ownership of Shares; in each case, whether
voluntary or involuntary, whether owned of record, Constructively Owned or Beneficially Owned and
whether by operation of law or otherwise. The terms “Transferring” and “Transferred” shall have the
correlative meanings.

     Trust shall mean INREIT Real Estate Investment Trust.

     Trustee shall mean of member of the Board of Trustees of the Trust.

     2%/25% Guidelines are the limitations of the Trust’s obligation to reimburse the
Advisor for the Total Operating Expenses incurred by the Advisor up to the greater of 2% of Average
Invested Assets or 25% of Net Income for the four consecutive fiscal quarters then ended, in
compliance with the NASAA REIT Guidelines.

     Unimproved Real Property shall mean Property in which the Trust has an equity interest
that was not acquired for the purpose of producing rental or other operating income, has no
development or construction in process on such Property and no development or construction is
planned in good faith to commence within one year on such Property.

ARTICLE V.

SHARES OF BENEFICIAL INTEREST

Section 5.1. Authorized Shares. The Trust has authority to issue 100,000,000 Common Shares,
$0.01 par value per share, and 50,000,000 Preferred Shares, $0.01 par value per share. The
aggregate par value of all authorized Shares having par value is $1,500,000. All Shares shall be
fully paid and nonassessable when issued. If Shares of one class are classified or reclassified
into Shares of another class pursuant to this Article V, the number of authorized Shares of the
former class shall be automatically decreased and the number of Shares of the latter class shall be
automatically increased, in each case by the number of Shares so classified or reclassified, so
that the aggregate number of Shares of all classes that the Trust has authority to issue shall not
be more than the total number of Shares set forth in the first sentence of this Section. The Board
of Trustees, with the approval of a majority of the entire

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Board and without any action by the Shareholders, may amend the Charter from time to time to
increase or decrease the aggregate number of Shares or the number of Shares of any class or series
that the Trust has authority to issue. The Board may, without any action by the holders of Shares,
authorize the issuance from time to time of Shares of any class, whether now or hereafter
authorized, or securities convertible into Shares of any class, whether now or hereafter
authorized, for such consideration as the Board may deem advisable, subject to such restrictions or
limitations, if any, as may be set forth in the Bylaws of the Trust and applicable laws of North
Dakota.

Section 5.2. Common Shares.

     Section 5.2.1. Common Shares Subject to Terms of Preferred Shares. The Common Shares
shall be subject to the express terms of any series of Preferred Shares.

     Section 5.2.2. Description. Subject to the provisions of Article VI and except as may
otherwise be specified in the terms of any class or series of Common Shares, each Common Share
shall entitle the holder thereof to one vote per share on all matters upon which Shareholders are
entitled to vote pursuant to Section 11.2 hereof. The Board may classify or reclassify any unissued
Common Shares from time to time in one or more classes or series of Shares; provided, however, that
the voting rights per Common Share (other than any publicly held Shares) sold in a private offering
shall not exceed the voting rights which bear the same relationship to the voting rights of a
publicly held Share as the consideration paid to the Trust for each privately offered Common Share
bears to the book value of each outstanding publicly held Share.

     Section 5.2.3. Rights upon Liquidation. In the event of any voluntary or involuntary
liquidation, dissolution or winding up, or any Distribution of the Assets of the Trust, the
aggregate Assets available for Distribution to holders of the Common Shares shall be determined in
accordance with applicable law. Each holder of Common Shares of a particular class shall be
entitled to receive, ratably with each other holder of Common Shares of such class, that portion of
such aggregate Assets available for Distribution as the number of outstanding Common Shares of such
class held by such holder bears to the total number of outstanding Common Shares of such class then
outstanding.

     Section 5.2.4. Voting Rights. Except as may be provided otherwise in the Charter, and
subject to the express terms of any series of Preferred Shares, the holders of the Common Shares
shall have the exclusive right to vote on all matters (as to which a common shareholder shall be
entitled to vote pursuant to applicable law) at all meetings of the Shareholders.

Section 5.3. Preferred Shares. The Board may classify any unissued Preferred Shares and
reclassify any previously classified but unissued Preferred Shares of any series from time to time,
in one or more classes or series of Shares; provided, however, that the voting rights per Preferred
Share (other than any publicly held Shares) sold in a private offering shall not exceed the voting
rights which bear the same relationship to the voting rights of a publicly held Share as the
consideration paid to the Trust for each privately offered Preferred Share bears to the book value
of each outstanding publicly held Share.

Section 5.4. Classified or Reclassified Shares. Prior to issuance of classified or
reclassified Shares of any class or series, the Board by resolution shall: (a) designate that class
or series to distinguish it from all other classes and series of Shares; (b) specify the number of
Shares to be included in the class or series; (c) set or change, subject to the provisions of
Article VI and subject to the express terms of any class or series of Shares outstanding at the
time, the preferences, conversion or other rights, voting powers, restrictions, limitations as to
dividends or other Distributions, qualifications and terms and conditions of redemption for each
class or series; and (d) cause the Trust to file articles supplementary with the State of North
Dakota as may be required. Any of the terms of any class or series of Shares set or changed
pursuant to clause (c) of this Section 5.4 may be made dependent upon facts or events ascertainable
outside the Charter (including determinations by the Board or other facts or events within the
control of the Trust) and may vary among holders thereof, provided that the manner in which such
facts, events or variations shall operate upon the terms of such class or series of Shares is
clearly and expressly set forth in the articles supplementary or other charter document.

Section 5.5. Dividends and Distributions.

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     Section 5.5.1. The Board of Trustees may from time to time authorize the Trust to declare and
pay to Shareholders such dividends or Distributions, in cash, Shares or other Assets of the Trust
or in Securities of the Trust or from any other source as the Board of Trustees in its discretion
shall determine.

     Section 5.5.2. The Board of Trustees shall endeavor to authorize the Trust to declare and pay
such dividends and Distributions as shall be necessary for the Trust to qualify as a REIT under the
Code; however, Shareholders shall have no right to any dividend or Distribution unless and until
authorized by the Board and declared by the Trust.

     Section 5.5.3. The exercise of the powers and rights of the Board of Trustees pursuant to this
Section 5.5 shall be subject to the provisions of any class or series of Shares at the time
outstanding.

     Section 5.5.4. The receipt by any Person in whose name any Shares are registered on the
records of the Trust or by his or her duly authorized agent shall be a sufficient discharge for all
dividends or Distributions payable or deliverable in respect of such Shares and from all liability
to see to the application thereof.

     Section 5.5.5. Distributions in kind shall not be permitted, except for Distributions of
readily marketable securities, Distributions of beneficial interests in a liquidating trust
established for the dissolution of the Trust and the liquidation of its Assets in accordance with
the terms of the Charter or Distributions in which (a) the Board advises each Shareholder of the
risks associated with direct ownership of the Assets, (b) the Board offers each Shareholder the
election of receiving such in-kind Distributions, and (c) in-kind Distributions are made only to
those Shareholders that accept such offer.

Section 5.6. Charter and Bylaws. The rights of all Shareholders and the terms of all Shares
are subject to the provisions of the Charter and the Bylaws.

Section 5.7. No Issuance of Share Certificates. The Board of Trustees may authorize the
issuance of Shares without certificates. With respect to any Shares that are issued without
certificates, a Shareholder’s investment shall be recorded on the books of the Trust. To Transfer
the Shares, a Shareholder shall submit an executed form to the Trust, which form shall be provided
by the Trust upon request. Such Transfer will also be recorded on the books of the Trust. Upon
issuance or Transfer of Shares, the Trust will provide the Shareholder with information concerning
his or her rights with regard to such Shares, as required by the Bylaws, the NDCC or other
applicable law.

Section 5.8. Suitability of Shareholders. Until Listing, the following provisions shall
apply:

     Section 5.8.1. Investor Suitability Standards. Subject to suitability standards
established by individual states, to become a Shareholder in the Trust, if such prospective
Shareholder is an individual (including an individual beneficiary of a purchasing Individual
Retirement Account), or if the prospective Shareholder is a fiduciary (such as a trustee of a trust
or corporate pension or profit sharing plan, or other tax-exempt organization, or a custodian under
a Uniform Gifts to Minors Act), such individual or fiduciary, as the case may be, must represent to
the Trust, among other requirements as the Trust may require from time to time:

          (a) that such individual (or, in the case of a fiduciary account, that the fiduciary account,
beneficiary or the donor or grantor who directly or indirectly supplies the funds to purchase the
Shares if the donor or grantor is the fiduciary) has a minimum annual gross income of $70,000 and a
net worth (excluding home, home furnishings and automobiles) of not less than $70,000; or

          (b) that such individual (or, in the case of a fiduciary account, that the fiduciary account,
beneficiary or the donor or grantor who directly or indirectly supplies the funds to purchase the
Shares if the donor or grantor is the fiduciary) has a net worth (excluding home, home furnishings
and automobiles) of not less than $250,000.

The income and net worth standards above do not apply to participant-directed purchases under a
401(k) or other defined contribution plan where the authorized plan fiduciary has approved Common
Shares or Preferred Shares as an available investment under such plan.

     Section 5.8.2. Determination of Suitability of Sale. The Sponsor and each Person
selling Shares on behalf of the Trust shall make every reasonable effort to determine that the
purchase of Shares by a prospective

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Shareholder is a suitable and appropriate investment for such Shareholder. In making this
determination, each Person selling Shares on behalf of the Trust shall ascertain that the
prospective Shareholder: (a) meets the minimum income and net worth standards established for the
Trust; (b) can reasonably benefit from the Trust based on the prospective Shareholder’s overall
investment objectives and portfolio structure; (c) is able to bear the economic risk of the
investment based on the prospective Shareholder’s overall financial situation; and (d) has apparent
understanding of (1) the fundamental risks of the investment; (2) the risk that the Shareholder may
lose the entire investment; (3) the lack of liquidity of the Shares; (4) the restrictions on
transferability of the Shares; and (5) the tax consequences of the investment. Each Person selling
Shares on behalf of the Trust shall make this determination on the basis of information it has
obtained from a prospective Shareholder. Relevant information for this purpose will include at
least the age, investment objectives, investment experiences, income, net worth, financial
situation and other investments of the prospective Shareholder, as well as any other pertinent
factors. Each Person selling Shares on behalf of the Trust shall maintain records of the
information used to determine that an investment in Shares is suitable and appropriate for a
Shareholder. Each Person selling Shares on behalf of the Trust shall maintain these records for at
least six years after the sales transaction.

     Section 5.8.3. Minimum Investment. Subject to certain individual state requirements
and the issuance of Shares under any Reinvestment Plan, no initial sale of Shares will be permitted
of less than 100 shares.

Section 5.9. Repurchase of Shares. The Board may establish, from time to time, a program or
programs by which the Trust voluntarily repurchases Shares from its Shareholders; provided,
however, that such repurchase does not impair the capital or operations of the Trust. The Sponsor,
Advisor, members of the Board or any Affiliates thereof may not receive any fees arising out of the
repurchase of Shares by the Trust.

Section 5.10. Distribution Reinvestment Plans. The Board may establish, from time to time,
a Distribution reinvestment plan or plans (each, a “Reinvestment Plan”). Under any such
Reinvestment Plan, (a) all material information regarding Distributions to the Shareholders and the
effect of reinvesting such Distributions, including the tax consequences thereof, shall be provided
to the Shareholders not less often than annually, and (b) each Shareholder participating in such
Reinvestment Plan shall have a reasonable opportunity to withdraw from the Reinvestment Plan not
less often than annually after receipt of the information required in clause (a) above.

ARTICLE VI.

RESTRICTION ON TRANSFER AND OWNERSHIP OF SHARES

Section 6.1. Shares.

     Section 6.1.1. Ownership Limitations. Prior to the Restriction Termination Date, but
subject to Section 6.3:

          (a) Basic Restrictions.

               (i) No Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own
Shares in excess of the Aggregate Share Ownership Limit, (2) no Person, other than an Excepted
Holder, shall Beneficially Own or Constructively Own Common Shares in excess of the Common Share
Ownership Limit and (3) no Excepted Holder shall Beneficially Own or Constructively Own Shares in
excess of the Excepted Holder Limit for such Excepted Holder.

               (ii) No Person shall Beneficially Own or Constructively Own Shares to the extent that such
Beneficial Ownership or Constructive Ownership of Shares would result in (A) the ownership of the
Trust’s Shares causing the Trust to satisfy the stock ownership requirement for being a personal
holding company under Section 542(a)(2) of the Code (without regard to whether the ownership
interest is held during the last half of a taxable year), (B) the Trust being “closely held” within
the meaning of Section 856(h) of the Code (without regard to whether the ownership interest is held
during the last half of a taxable year), or (C) otherwise failing to qualify as a REIT (including,
but not limited to, Beneficial Ownership or Constructive Ownership that would result in the Trust
owning (actually or Constructively) an interest in a tenant that is described in Section
856(d)(2)(B) of the Code if the income derived by the Trust from such tenant would cause the Trust
to fail to satisfy any of the gross income requirements of Section 856(c) of the Code).

               (iii) No Person shall Beneficially Own or Constructively Own shares of capital stock to the
extent that such ownership would cause any income of the Trust that would otherwise qualify as
“rents from real

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property” for purposes of Section 856(d) of the Code to fail to qualify as such (including,
but not limited to, as a result of any “eligible independent contractor” that operates a “qualified
lodging facility” on behalf of a “taxable REIT subsidiary” of the Trust (as such terms are defined
in Section 856(d)(9)(A), Section 856(d)(9)(D) and Section 856(l) of the Code, respectively) failing
to qualify as such).

               (iv) Any Transfer of Shares that, if effective, would result in Shares being Beneficially
Owned by less than 100 Persons (determined under the principles of Section 856(a)(5) of the Code)
shall be void ab initio, and the intended transferee shall acquire no rights in
such Shares.

          (b) Transfer in Trust. If any Transfer of Shares occurs which, if effective, would
result in any Person Beneficially Owning or Constructively Owning Shares in violation of Section
6.1.1(a)(i) (ii) or (iii);

               (i) then that number of Shares the Beneficial Ownership or Constructive Ownership of which
otherwise would cause such Person to violate Section 6.1.1(a)(i) (ii) or (iii) (rounded up to the
nearest whole share) shall be automatically transferred to a Charitable Trust for the benefit of a
Charitable Beneficiary, as described in Section 6.2, effective as of the close of business on the
Business Day prior to the date of such Transfer, and such Person shall acquire no rights in such
Shares; or

               (ii) if the Transfer to the Charitable Trust described in clause (i) of this section would not
be effective for any reason to prevent the violation of Section 6.1.1(a)(i) (ii) or (iii), then the
Transfer of that number of Shares that otherwise would cause any Person to violate Section
6.1.1(a)(i), (ii), or (iii) shall be void ab initio, and the intended transferee
shall acquire no rights in such Shares.

     Section 6.1.2. Remedies for Breach. If the Board of Trustees or its designee
(including any duly authorized committee of the Board) shall at any time determine in good faith
that a Transfer or other event has taken place that results in a violation of Section 6.1.1 or that
a Person intends to acquire or has attempted to acquire Beneficial Ownership or Constructive
Ownership of any Shares in violation of Section 6.1.1 (whether or not such violation is intended),
the Board of Trustees or its designee shall take such action as it deems advisable to refuse to
give effect to or to prevent such Transfer or other event, including, without limitation, causing
the Trust to redeem Shares, refusing to give effect to such Transfer on the books of the Trust or
instituting proceedings to enjoin such Transfer or other event; provided, however, that any
Transfers or attempted Transfers or other events in violation of Section 6.1.1 shall automatically
result in the Transfer to the Charitable Trust described above, or, where applicable, such Transfer
(or other event) shall be void ab initio as provided above irrespective of any
action (or non-action) by the Board of Trustees or its designee; provided further, however, that
this Section 6.1.2 shall not require the Board of Trustees to redeem Shares or to void any prior
redemptions of Shares.

     Section 6.1.3. Notice of Restricted Transfer. Any Person who acquires or attempts or
intends to acquire Beneficial Ownership or Constructive Ownership of Shares that will or may
violate Section 6.1.1(a), or any Person who would have owned Shares but that resulted in a Transfer
to the Charitable Trust pursuant to the provisions of Section 6.1.1(b), shall immediately give
written notice to the Trust of such event, or in the case of such a proposed or attempted
transaction, give at least 15 days prior written notice, and shall provide to the Trust such other
information as the Trust may request in order to determine the effect, if any, of such Transfer on
the Trust’s status as a REIT.

     Section 6.1.4. Owners Required To Provide Information. From the Initial Date and prior
to the Restriction Termination Date:

          (a) every owner of more than 5% (or such lower percentage as required by the Code or the
Treasury Regulations promulgated thereunder) of the outstanding Shares, within 30 days after the
end of each taxable year, shall give written notice to the Trust stating the name and address of
such owner, the number of Shares and other Shares Beneficially Owned and a description of the
manner in which such Shares are held. Each such owner shall provide to the Trust such additional
information as the Trust may request in order to determine the effect, if any, of such Beneficial
Ownership on the Trust’s status as a REIT and to ensure compliance with the Aggregate Share
Ownership Limit, the Common Share Ownership Limit and the other restrictions set forth herein.

          (b) each Person who is a Beneficial Owner or Constructive Owner of Shares and each Person
(including the Shareholder of record) who is holding Shares for a Beneficial Owner or Constructive
Owner shall provide to the Trust such information as the Trust may request, in good faith, in order
to determine the Trust’s status

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as a REIT and to comply with requirements of any taxing authority or governmental authority or
to determine such compliance.

     Section 6.1.5. Remedies Not Limited. Subject to Section 7.11 of the Charter, nothing
contained in this Section 6.1 shall limit the authority of the Board of Trustees to take such other
action as it deems necessary or advisable to protect the Trust and the interests of its
Shareholders in preserving the Trust’s status as a REIT.

     Section 6.1.6. Ambiguity. In the case of an ambiguity in the application of any of the
provisions of this Section 6.1, Section 6.2 or any definition contained in Article IV, the Board of
Trustees shall have the power to determine the application of the provisions of this Section 6.1 or
Section 6.2 with respect to any situation based on the facts known to it. In the event Section 6.1
or 6.2 requires an action by the Board of Trustees and the Charter fails to provide specific
guidance with respect to such action, the Board of Trustees shall have the power to determine the
action to be taken so long as such action is not contrary to the provisions of Article V or
Sections 6.1 or 6.2. Absent a decision to the contrary by the Board of Trustees (which the Board
may make in its sole and absolute discretion), if a Person would have (but for the remedies set
forth in Section 6.1.2) acquired Beneficial Ownership or Constructive Ownership of Shares in
violation of Section 6.1.1, such remedies (as applicable) shall apply first to the Shares which,
but for such remedies, would have been Beneficially Owned or Constructively Owned (but not actually
owned) by such Person, pro rata among the Persons who actually own such Shares based upon the
relative number of the Shares held by each such Person.

     Section 6.1.7. Exceptions.

          (a) Subject to Section 6.1.1(a)(ii), the Board of Trustees, in its sole discretion, may exempt
(prospectively or retroactively) a Person from the Aggregate Share Ownership Limit and the Common
Share Ownership Limit, as the case may be, and may establish or increase an Excepted Holder Limit
for such Person if:

               (i) the Board of Trustees obtains such representations and undertakings from such Person as
are reasonably necessary to ascertain that no individual’s Beneficial Ownership or Constructive
Ownership of such Shares will violate Section 6.1.1(a)(ii);

               (ii) such Person does not, and represents that it will not, own, actually or Constructively,
an interest in a tenant of the Trust, or a tenant of any entity owned or controlled by the Trust,
that would cause the Trust to own, actually or Constructively, a 9.9% interest or greater (as set
forth in Section 856(d)(2)(B) of the Code) in such tenant and the Board of Trustees obtains such
representations and undertakings from such Person as are reasonably necessary to ascertain this
fact. For this purpose, a tenant from whom the Trust, or an entity owned or controlled by the
Trust, derives, and is expected to continue to derive, a sufficiently small amount of revenue such
that, in the opinion of the Board of Trustees, rent from such tenant would not adversely affect the
Trust’s ability to qualify as a REIT, shall not be treated as a tenant of the Trust; and

               (iii) such Person agrees that any violation or attempted violation of such representations or
undertakings, or other action which is contrary to the restrictions contained in Sections 6.1.1
through 6.1.6, will result in such Shares being automatically transferred to a Charitable Trust in
accordance with Sections 6.1.1(b) and 6.2.

          (b) Prior to granting any exception pursuant to Section 6.1.7(a), the Board of Trustees may
require a ruling from the Internal Revenue Service, or an opinion of counsel, in either case in
form and substance satisfactory to the Board of Trustees in its sole discretion, as it may deem
necessary or advisable in order to determine or ensure the Trust’s status as a REIT.
Notwithstanding the receipt of any ruling or opinion, the Board of Trustees may impose such
conditions or restrictions as it deems appropriate in connection with granting such exception.

          (c) Subject to Section 6.1.1(a)(ii), an underwriter which participates in a public offering or
a private placement of Shares, or securities convertible into or exchangeable for Shares, may
Beneficially Own or Constructively Own Shares, or securities convertible into or exchangeable for
Shares, in excess of the Aggregate Share Ownership Limit, the Common Share Ownership Limit or both
such limits, but only to the extent necessary to facilitate such public offering or private
placement.

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          (d) The Board of Trustees may only reduce the Excepted Holder Limit for an Excepted Holder:
(1) with the written consent of such Excepted Holder at any time, or (2) pursuant to the terms and
conditions of the agreements and undertakings entered into with such Excepted Holder in connection
with the establishment of the Excepted Holder Limit for that Excepted Holder. No Excepted Holder
Limit shall be reduced to a percentage that is less than the Common Share Ownership Limit.

     Section 6.1.8. Increase in Aggregate Share Ownership and Common Share Ownership
Limits. Subject to Section 6.1.1, the Board of Trustees may from time to time increase the
Common Share Ownership Limit and the Aggregate Share Ownership Limit for one or more Persons and
decrease the Common Share Ownership Limit and the Aggregate Share Ownership Limit for all other
Persons; provided, however, that the decreased Common Share Ownership Limit and/or Aggregate Share
Ownership Limit will not be effective for any Person whose percentage ownership in Shares is in
excess of such decreased Common Share Ownership Limit and/or Aggregate Share Ownership Limit until
such time as such Person’s percentage of Shares equals or falls below the decreased Common Share
Ownership Limit and/or Aggregate Share Ownership Limit, but any further acquisition of Shares in
excess of the decreased Common Share Ownership Limit and/or Aggregate Share Ownership Limit will be
in violation of the new Common Share Ownership Limit and/or Aggregate Share Ownership Limit and,
provided further, that the new Common Share Ownership Limit and/or Aggregate Share Ownership Limit
would not allow five or fewer Persons to Beneficially Own more than 49.9% in value of the
outstanding Shares.

     Section 6.1.9. Legend. Subsequent to the date of this First Amended and Restated
Declaration Trust, any certificate representing Shares shall bear substantially the following
legend:

“The Shares represented by this certificate are subject to restrictions on
Beneficial Ownership and Constructive Ownership and Transfer for the purpose, among
others, of the Trust’s maintenance of its status as a REIT under the Code. Subject
to certain further restrictions and except as expressly provided in the Trust’s
Charter, (i) no Person may Beneficially Own or Constructively Own Common Shares of
the Trust in excess of 9.8% (in value or number of Shares) of the outstanding Common
Shares of the Trust unless such Person is an Excepted Holder (in which case the
Excepted Holder Limit shall be applicable); (ii) no Person may Beneficially Own or
Constructively Own Shares of the Trust in excess of 9.8% of the value of the total
outstanding Shares of the Trust, unless such Person is an Excepted Holder (in which
case the Excepted Holder Limit shall be applicable); (iii) no Person may
Beneficially Own or Constructively Own Shares that would result in the ownership of
Shares of the Trust causing the Trust to satisfy the stock ownership requirement for
being a personal holding company under Section 542(a)(2) of the Code, the Trust
being “closely held” under Section 856(h) of the Code or otherwise cause the Trust
to fail to qualify as a REIT; (iv) no Person may Beneficially Own or Constructively
Own shares of capital stock to the extent that such ownership would cause any income
of the Trust that would otherwise qualify as “rents from real property” for purposes
of Section 856(d) of the Code to fail to qualify as such; and (v) no Person may
Transfer Shares if such Transfer would result in Shares of the Trust being owned by
fewer than 100 Persons. Any Person who Beneficially Owns or Constructively Owns or
attempts to Beneficially Own or Constructively Own Shares which cause or will cause
a Person to Beneficially Own or Constructively Own Shares in excess or in violation
of the above limitations must immediately notify the Trust. If any of the
restrictions on Transfer or ownership are violated, the Shares represented hereby
will be automatically transferred to a Charitable Trust for the benefit of one or
more Charitable Beneficiaries. In addition, the Trust may redeem Shares upon the
terms and conditions specified by the Board of Trustees in its sole discretion if
the Board of Trustees determines that ownership or a Transfer or other event may
violate the restrictions described above. Furthermore, upon the occurrence of
certain events, attempted Transfers in violation of the restrictions described above
may be void ab initio. All capitalized terms in this legend have the
meanings defined in the Trust’s Declaration of Trust, as the same may be amended
from time to time, a copy of which, including the restrictions on Transfer and
ownership, will be furnished to each Shareholder on request and without charge.
Requests for such a copy may be directed to the Secretary of the Trust at its
principal office.”

     Instead of the foregoing legend, the certificate may state that the Trust will furnish a full
statement about certain restrictions on transferability to a Shareholder on request and without
charge.

Section 6.2. Transfer of Shares in Trust.

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     Section 6.2.1. Ownership in Trust. Upon any purported Transfer or other event
described in Section 6.1.1(b) that would result in a Transfer of Shares to a Charitable Trust, such
Shares shall be deemed to have been transferred to the Charitable Trustee as trustee of a
Charitable Trust for the exclusive benefit of one or more Charitable Beneficiaries. Such Transfer
to the Charitable Trustee shall be deemed to be effective as of the close of business on the
Business Day prior to the purported Transfer or other event that results in the Transfer to the
Charitable Trust pursuant to Section 6.1.1(b). The Charitable Trustee shall be appointed by the
Trust and shall be a Person unaffiliated with the Trust and any Prohibited Owner. Each Charitable
Beneficiary shall be designated by the Trust as provided in Section 6.2.6.

     Section 6.2.2. Status of Shares Held by the Charitable Trustee. Shares held by the
Charitable Trustee shall continue to be issued and outstanding Shares of the Trust. The Prohibited
Owner shall have no rights in the Shares held by the Charitable Trustee. The Prohibited Owner shall
not benefit economically from ownership of any Shares held in trust by the Charitable Trustee,
shall have no rights to dividends or other Distributions and shall not possess any rights to vote
or other rights attributable to the Shares held in the Charitable Trust.

     Section 6.2.3. Dividend and Voting Rights.

          (a) The Charitable Trustee shall have all voting rights and rights to dividends or other
Distributions with respect to Shares held in the Charitable Trust, which rights shall be exercised
for the exclusive benefit of the Charitable Beneficiary.

          (b) Any dividend or other Distribution paid prior to the discovery by the Trust that Shares
have been transferred to the Charitable Trustee shall be paid with respect to such Shares to the
Charitable Trustee upon demand and any dividend or other Distribution authorized but unpaid shall
be paid when due to the Charitable Trustee. Any dividends or Distributions so paid over to the
Charitable Trustee shall be held in trust for the Charitable Beneficiary.

          (c) The Prohibited Owner shall have no voting rights with respect to Shares held in the
Charitable Trust and, subject to North Dakota law, effective as of the date that Shares have been
Transferred to the Charitable Trustee, the Charitable Trustee shall have the authority, at the
Charitable Trustee’s sole discretion, (a) to rescind as void any vote cast by a Prohibited Owner
prior to the discovery by the Trust that Shares have been transferred to the Charitable Trustee and
(b) to recast such vote in accordance with the desires of the Charitable Trustee acting for the
benefit of the Charitable Beneficiary; provided, however, that if the Trust has already taken
irreversible corporate action, then the Charitable Trustee shall not have the authority to rescind
and recast such vote.

          (d) Notwithstanding the provisions of this Article VI, until the Trust has received
notification that Shares have been Transferred into a Charitable Trust, the Trust shall be entitled
to rely on its share transfer and other Shareholder records for purposes of preparing lists of
Shareholders entitled to vote at meetings, determining the validity and authority of proxies and
otherwise conducting votes of Shareholders.

     Section 6.2.4. Sale of Shares by Charitable Trustee.

          (a) Within 20 days of receiving notice from the Trust that Shares have been transferred to the
Charitable Trust, the Charitable Trustee shall sell the Shares held in the Charitable Trust to a
Person, designated by the Charitable Trustee, whose ownership of the Shares will not violate the
ownership limitations set forth in Section 6.1.1(a).

          (b) Upon such sale, the interest of the Charitable Beneficiary in the Shares sold shall
terminate and the Charitable Trustee shall distribute the net proceeds of the sale to the
Prohibited Owner and to the Charitable Beneficiary as provided in this Section 6.2.4. The
Prohibited Owner shall receive the lesser of (1) the price paid by the Prohibited Owner for the
Shares or, if the Prohibited Owner did not give value for the Shares in connection with the event
causing the Shares to be held in the Charitable Trust (e.g., in the case of a gift, devise or other
such transaction), the Market Price of the Shares on the day of the event causing the Shares to be
held in the Charitable Trust and (2) the price per share received by the Charitable Trustee (net of
any commissions and other expenses of sale) from the sale or other disposition of the Shares held
in the Charitable Trust.

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          (c) The Charitable Trustee may reduce the amount payable to the Prohibited Owner by the amount
of dividends and Distributions which have been paid to the Prohibited Owner and are owed by the
Prohibited Owner to the Charitable Trustee pursuant to Section 6.2.3 of this Article VI.

          (d) Any net sales proceeds in excess of the amount payable to the Prohibited Owner shall be
immediately paid to the Charitable Beneficiary.

          (e) If, prior to the discovery by the Trust that Shares have been transferred to the
Charitable Trustee, such Shares are sold by a Prohibited Owner, then (i) such Shares shall be
deemed to have been sold on behalf of the Charitable Trust and (ii) to the extent that the
Prohibited Owner received an amount for such Shares that exceeds the amount that such Prohibited
Owner was entitled to receive pursuant to this Section 6.2.4(b), such excess shall be paid to the
Charitable Trustee upon demand.

     Section 6.2.5. Purchase Right in Shares Transferred to the Charitable Trustee.

          (a) Shares transferred to the Charitable Trustee shall be deemed to have been offered for sale
to the Trust, or its designee, at a price per Share equal to the lesser of (a) the price per Share
in the transaction that resulted in such Transfer to the Charitable Trust (or, in the case of a
devise or gift, the Market Price at the time of such devise or gift) and (b) the Market Price on
the date the Trust, or its designee, accepts such offer.

          (b) The Trust may reduce the amount payable to the Prohibited Owner by the amount of dividends
and Distributions which has been paid to the Prohibited Owner and are owed by the Prohibited Owner
to the Charitable Trustee pursuant to Section 6.2.3 of this Article VI. The Trust may pay the
amount of such reduction to the Charitable Trustee for the benefit of the Charitable Beneficiary.

          (c) The Trust shall have the right to accept such offer until the Charitable Trustee has sold
the Shares held in the Charitable Trust pursuant to Section 6.2.4.

          (d) Upon such a sale to the Trust, the interest of the Charitable Beneficiary in the Shares
sold shall terminate and the Charitable Trustee shall distribute the net proceeds of the sale to
the Prohibited Owner.

     Section 6.2.6. Designation of Charitable Beneficiaries. By written notice to the
Charitable Trustee, the Trust shall designate one or more nonprofit organizations to be the
Charitable Beneficiary of the interest in the Charitable Trust such that (a) Shares held in the
Charitable Trust would not violate the restrictions set forth in Section 6.1.1(a) in the hands of
such Charitable Beneficiary and (b) each such organization must be described in Section 501(c)(3)
of the Code and contributions to each such organization must be eligible for deduction under each
of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

Section 6.3. Stock Exchange Transactions. Nothing in this Article VI shall preclude the
settlement of any transaction entered into through the facilities of any national securities
exchange. The fact that the settlement of any transaction occurs shall not negate the effect of
any other provision of this Article VI and any transferee in such a transaction shall be subject to
all of the provisions and limitations set forth in this Article VI.

Section 6.4. Enforcement. The Trust is authorized specifically to seek equitable relief,
including injunctive relief, to enforce the provisions of this Article VI.

Section 6.5. Non-Waiver. No delay or failure on the part of the Trust or the Board of
Trustees in exercising any right hereunder shall operate as a waiver of any right of the Trust or
the Board of Trustees, as the case may be, except to the extent specifically waived in writing.

ARTICLE VII.

PROVISIONS FOR DEFINING, LIMITING

AND REGULATING CERTAIN POWERS OF THE

TRUST AND OF THE SHAREHOLDERS AND TRUSTEES

Section 7.1. Duties of Trustees. The Board of Trustees is responsible for setting the
general policies of the Trust and for the general supervision of its business conducted by
officers, agents, employees, advisors or independent contractors of the Trust. The Board of
Trustees is not required personally to conduct the business of the Trust, and it

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may, but need not, appoint, employ or contract with any Person, including a Person Affiliated with
any Trustee, as an Advisor, subject to Article VIII, and may grant or delegate such authority to
the Advisor as the Board of Trustees may, in its sole discretion, deem necessary or desirable.

Section 7.2. . Number of Trustees and Vacancies. The number of Trustees of the Trust shall
be 12, which number may be increased or decreased from time to time pursuant to the Bylaws;
provided, however, that the total number of Trustees shall never be less than 7 nor more than 12. A
majority of the Board of Trustees will be Independent Trustees except for a period of up to 60 days
after the death, removal or resignation of an Independent Trustee pending the election of such
Independent Trustee’s successor.

     Except as may be provided by the Board of Trustees in setting the terms of any class or series
of Shares, any and all vacancies on the Board of Trustees may be filled only by the affirmative
vote of a majority of the remaining Trustees, even if the remaining Trustees do not constitute a
quorum, and any Trustee elected to fill a vacancy shall serve for the remainder of the full term of
the trusteeship in which such vacancy occurred. Notwithstanding the foregoing sentence, Independent
Trustees shall nominate replacements for vacancies among the Independent Trustees’ positions,
unless there are no remaining Independent Trustees to so fill a vacancy, in which case a majority
vote of the remaining Trustees will be sufficient.

Section 7.3. Experience. Each Trustee shall have at least three years of relevant
experience demonstrating the knowledge and experience required to successfully acquire and manage
the type of Assets being acquired by the Trust. At least one of the Independent Trustees shall have
three years of relevant real estate experience.

Section 7.4. Committees. The Board may establish such committees as it deems appropriate,
in its discretion, provided that the majority of the members of each committee are Independent
Trustees.

Section 7.5. Term. Except as may be provided by the Board of Trustees in setting the terms
of any class or series of Shares, each Trustee shall hold office for one year, until the next
annual meeting of Shareholders and until his or her successor is duly elected and qualifies.
Trustees may be elected to an unlimited number of successive terms.

Section 7.6. Fiduciary Obligations. The Trustees and the Advisor serve in a fiduciary
capacity to the Trust and have a fiduciary duty to the Shareholders of the Trust, including, with
respect to the Trustees, a specific fiduciary duty to supervise the relationship of the Trust with
the Advisor.

Section 7.7. Extraordinary Actions. Notwithstanding any provision of law permitting or
requiring any action to be taken or approved by the affirmative vote of the holders of Shares
entitled to cast a greater number of votes, any such action shall be effective and valid if
declared advisable by the Board of Trustees and taken or approved by the affirmative vote of
holders of Shares entitled to cast a majority of all the votes entitled to be cast on the matter.

Section 7.8. Authorization by Board of Share Issuance. The Board of Trustees may authorize
the issuance from time to time of Shares of any class or series, whether now or hereafter
authorized, or securities or rights convertible into Shares of any class or series, whether now or
hereafter authorized, for such consideration as the Board of Trustees may deem advisable (or
without consideration in the case of a stock split or stock dividend), subject to such restrictions
or limitations, if any, as may be set forth in the Charter or the Bylaws. The issuance of Preferred
Shares shall also be approved by a majority of Trustees not otherwise interested in the transaction
(and a majority of independent Trustees), who shall have access, at the Trust’s expense, to the
Trust’s legal counsel or to independent legal counsel.

Section 7.9. No Preemptive Rights. Except as may be provided by the Board of Trustees in
setting the terms of classified or reclassified Shares pursuant to Section 5.4 or as may otherwise
be provided by contract approved by the Board of Trustees, no holder of Shares shall have any
preemptive right to purchase or subscribe for any additional Shares or any other security of the
Trust which it may issue or sell.

Section 7.10. Determinations by Board.

     Section 7.10.1. The determination as to any of the following matters, made in good faith by or
pursuant to the direction of the Board of Trustees consistent with the Charter, shall be final and
conclusive and shall be binding upon the Trust and every holder of Shares:

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          (a) the amount of the Net Income of the Trust for any period and the amount of Assets at any
time legally available for the payment of dividends, redemption of Shares or the payment of other
Distributions on Shares;

          (b) the amount of paid-in surplus, Net Assets, other surplus, annual or other cash flow, funds
from operations, net profit, Net Assets in excess of capital, undivided profits or excess of
profits over losses on sales of Assets;

          (c) the amount, purpose, time of creation, increase or decrease, alteration or cancellation of
any reserves or charges and the propriety thereof, whether or not any obligation or liability for
which such reserves or charges shall have been created shall have been paid or discharged;

          (d) any interpretation of the terms, preferences, conversion or other rights, voting powers or
rights, restrictions, limitations as to dividends or Distributions, qualifications or terms or
conditions of redemption of any class or series of Shares;

          (e) the fair value, or any sale, bid or asked price to be applied in determining the fair
value, of any Asset owned or held by the Trust or any Shares;

          (f) the number of Shares of any class of the Trust;

          (g) any matter relating to the acquisition, holding and disposition of any Assets by the
Trust;

          (h) any conflict between the NDCC and the provisions in the NASAA REIT Guidelines; or

          (i) any other matter relating to the business and affairs of the Trust or required or
permitted by applicable law, the Charter or Bylaws or otherwise to be determined by the Board of
Trustees.

     Section 7.10.2. Provided, however, that any determination by the Board of Trustees as to any
of the matters under Section 7.10.1 shall not render invalid or improper any action taken or
omitted prior to such determination and no Trustee shall be liable for making or failing to make
such a determination.

     Section 7.10.3 Provided, further, that to the extent the Board of Trustees determines that the
NDCC conflicts with the provisions in the NASAA REIT Guidelines, the NASAA REIT Guidelines shall
control to the extent any provisions of the NDCC are not mandatory.

Section 7.11. REIT Qualification. The Board of Trustees shall use its reasonable best
efforts to take such actions as are necessary or appropriate to preserve the status of the Trust as
a REIT; however, if the Board of Trustees determines that it is no longer in the best interests of
the Trust to continue to be qualified as a REIT, the Board of Trustees may revoke or otherwise
terminate the Trust’s REIT election pursuant to Section 856(g) of the Code. The Board of Trustees
also may determine that compliance with any restriction or limitation on stock ownership and
Transfers set forth in Article VI is no longer required for REIT qualification.

Section 7.12. Removal of Trustees. Subject to the rights of holders of one or more classes
or series of Preferred Shares to elect or remove one or more Trustees, any Trustee, or the entire
Board of Trustees, may be removed from office at any time, without the necessity for concurrence by
the Trustees, but only by the affirmative vote of at least a majority of the Shares entitled to be
voted generally in the election of Trustees.

Section 7.13. Board Action with Respect to Certain Matters. A majority of the Independent
Trustees must approve any Board action to which the following sections of the NASAA REIT Guidelines
apply: II.A., II.C., II.F., II.G., IV.A., IV.B., IV.C., IV.D., IV.E., IV.F., IV.G., V.E., V.H.,
V.J., VI.A., VI.B.4, and VI.G.

Section 7.14. Cumulative Rights. No holder of Shares shall have the right to cumulative
voting in the election of trustees.

ARTICLE VIII.

ADVISOR

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Section 8.1. Appointment and Initial Investment of Advisor. If the Board of Trustees
appoints, employs or contracts with a Person, including a Person Affiliated with any Trustee, as an
Advisor and grants or delegates such authority to the Advisor as the Board of Trustees may, in its
sole discretion, deem necessary or desirable, the term of retention of any Advisor shall not exceed
one year, although there is no limit to the number of times that a particular Advisor may be
retained. The Advisor or any Affiliate which holds the Initial Investment may not sell this Initial
Investment while the Advisor or its Affiliate serves as the Advisor, but may Transfer the Initial
Investment to other Affiliates.

Section 8.2. Supervision of Advisor.

     Section 8.2.1. The Board of Trustees shall evaluate the performance of the Advisor before
entering into or renewing an Advisory Agreement, and the criteria used in such evaluation shall be
reflected in the minutes of the meetings of the Board of Trustees.

     Section 8.2.2. The Board of Trustees may exercise broad discretion in allowing the Advisor to
administer and regulate the operations of the Trust, to act as agent for the Trust, to execute
documents on behalf of the Trust and to make executive decisions that conform to general policies
and principles established by the Board of Trustees.

     Section 8.2.3. The Board of Trustees shall monitor the Advisor to assure that the
administrative procedures, operations and programs of the Trust are in the best interests of the
Shareholders and are fulfilled.

     Section 8.2.4. The Independent Trustees are responsible for reviewing the fees and expenses of
the Trust at least annually or with sufficient frequency to determine that the expenses incurred
are reasonable in light of the investment performance of the Trust, its Net Assets, its Net Income
and the fees and expenses of other comparable unaffiliated REITs. Each such determination shall be
reflected in the minutes of the meetings of the Board.

     Section 8.2.5. The Independent Trustees also will be responsible for reviewing, from time to
time and at least annually, the performance of the Advisor and determining that compensation to be
paid to the Advisor is reasonable in relation to the nature and quality of services performed and
the investment performance of the Trust and that the provisions of the Advisory Agreement are being
carried out. Specifically, the Independent Trustees will consider factors such as (a) the amount of
the fee paid to the Advisor in relation to the size, composition and performance of the Assets, (b)
the success of the Advisor in generating opportunities that meet the investment objectives of the
Trust, (c) rates charged to other REITs and to investors other than REITs by advisors performing
the same or similar services, (d) additional revenues realized by the Advisor and its Affiliates
through their relationship with the Trust, including loan, administration, underwriting or broker
commissions, servicing, engineering, inspection and other fees, whether paid by the Trust or by
others with whom the Trust does business, (e) the quality and extent of service and advice
furnished by the Advisor, (f) the performance of the Assets, including income, conservation or
appreciation of capital, frequency of problem investments and competence in dealing with distress
situations, and (g) the quality of the Assets relative to the investments generated by the Advisor
for its own account. The Independent Trustees may also consider all other factors that they deem
relevant, and the findings of the Independent Trustees on each of the factors considered shall be
recorded in the minutes of the Board of Trustees.

     Section 8.2.6. The Board of Trustees shall determine whether any successor Advisor possesses
sufficient qualifications to perform the advisory function for the Trust and whether the
compensation provided for in its contract with the Trust is justified.

Section 8.3. Fiduciary Obligations. The Advisor shall have a fiduciary responsibility and
duty to the Trust and to the Shareholders.

Section 8.4. Affiliation and Functions. The Board, by resolution or in the Bylaws, may
provide guidelines, provisions or requirements concerning the affiliation and functions of the
Advisor.

Section 8.5. Term and Termination. The Advisory Agreement shall have a term of no more than
one year, subject to an unlimited number of successive one-year renewals upon mutual consent of the
parties. Either a majority of the Independent Trustees or the Advisor may terminate the Advisory
Agreement on 60 days’ written notice without cause or penalty, and, in such event, the Advisor will
cooperate with the Trust and take all reasonable steps requested to assist the Board in making an
orderly transition of the advisory function.

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Section 8.6. Disposition Fee on Sale of Property. If and as approved by the Board, the
Trust may pay the Advisor a disposition fee upon the Sale of any Property in an amount up to
one-half of the Competitive Real Estate Commission, but in no event can such amount exceed 3% of
the contracted for sales price of such Property or Properties. Payment of such fee may be made only
if the Advisor provides a substantial amount of services in connection with the Sale of a Property
or Properties, as determined by a majority of the Independent Trustees. In addition, the amount
paid when added to all other real estate commissions paid to unaffiliated parties in connection
with such Sale shall not exceed the lesser of the Competitive Real Estate Commission or an amount
equal to 6% of the contracted for sales price of such Property or Properties.

Section 8.7. Incentive Fees. If and as approved by the Board, the Trust may pay the Advisor
an interest in the gain from the Sale of Assets, for which full consideration is not paid in cash
or property of equivalent value, provided the amount or percentage of such interest is reasonable.
Such an interest in gain from the Sale of Assets shall be considered presumptively reasonable if it
does not exceed 15% of the balance of such net proceeds remaining after payment to Shareholders, in
the aggregate, of an amount equal to 100% of the Invested Capital plus an amount equal to 6% of the
Invested Capital per annum cumulative. In the case of multiple Advisors, such Advisor and any of
their Affiliates shall be allowed such fees provided such fees are distributed by a proportional
method reasonably designed to reflect the value added to the Trust’s Assets by each respective
Advisor or any Affiliate.

Section 8.8. Organization and Offering Expenses Limitation. If and as approved by the
Board, the Trust shall reimburse the Advisor and its Affiliates for Organization and Offering
Expenses incurred by the Advisor or its Affiliates; provided, however, that the total amount of all
Organization and Offering Expenses shall be reasonable and shall in no event exceed 15% of the
Gross Proceeds of each Offering.

Section 8.9. Acquisition Fees and Expenses. If and as approved by the Board, the Trust may
pay the Advisor and its Affiliates fees for the review and evaluation of potential investments in
Assets; provided, however, that the total of all Acquisition Fees and Acquisition Expenses shall be
reasonable and shall not exceed an amount equal to 6% of the Contract Purchase Price or, in the
case of a Mortgage, 6% of the funds advanced; provided, however, that a majority of the Trustees,
including a majority of the Independent Trustees, not otherwise interested in the transaction may
approve fees and expenses in excess of this limit if they determine the transaction to be
commercially competitive, fair and reasonable to the Trust.

Section 8.10. Reimbursement for Total Operating Expenses. Unless otherwise provided in any
resolution adopted by the Board of Trustees, the Trust may reimburse the Advisor, at the end of
each month, for Total Operating Expenses incurred by the Advisor; provided, however that the Trust
shall not reimburse the Advisor at the end of any fiscal quarter for Total Operating Expenses that,
in the four consecutive fiscal quarters then ended, exceed the greater of 2% of Average Invested
Assets or 25% of Net Income (the “2%/25% Guidelines”) for such 12 month period. The Independent
Trustees shall have the responsibility of limiting Total Operating Expenses to amounts that do not
exceed the 2%/25% Guidelines unless they have made a finding that, based on such unusual and
non-recurring factors that they deem sufficient, a higher level of expenses (an “Excess Amount”) is
justified. Within 60 days after the end of any fiscal quarter of the Trust for which there is an
Excess Amount which the Independent Trustees conclude was justified and reimbursable to the
Advisor, there shall be sent to the Shareholders a written disclosure of such fact, together with
an explanation of the factors the Independent Trustees considered in determining that such Excess
Amount was justified. Any such finding and the reasons in support thereof shall be reflected in the
minutes of the meetings of the Board of Trustees. In the event that the Independent Trustees do not
determine that excess expenses are justified, the Advisor shall reimburse the Trust the amount by
which the expenses exceeded the 2%/25% Guidelines.

Section 8.11. Reimbursement Limitation. The Trust shall not reimburse the Advisor or its
Affiliates for services for which the Advisor or its Affiliates are entitled to compensation in the
form of a separate fee.

ARTICLE IX.

INVESTMENT OBJECTIVES AND LIMITATIONS

Section 9.1. Investment Objectives.

     Section 9.1.1. The Trust’s primary investment objectives are: (a) to generate an attractive
level of current income for distribution to the Shareholders; (b) to provide the Shareholders with
the potential for long-term capital

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appreciation; and (c) to offer an investment option in which the per share price volatility is
correlated to real estate as an asset class rather than traditional asset classes such as stocks
and bonds.

     Section 9.1.2. By resolution, the Board may change or otherwise amend the investment
objectives of the Trust as provided in Section 9.1.1 herein only with the approval of a majority of
the Shares entitled to vote as provided in Section 11.2 herein.

     Section 9.1.3. The sheltering from tax of income from other sources is not an objective of the
Trust.

     Section 9.1.4. Subject to the restrictions set forth herein, the Board will use its reasonable
best efforts to conduct the affairs of the Trust in such a manner as to continue to qualify the
Trust for the tax treatment provided in the REIT Provisions of the Code unless and until the Board
determines, in its sole discretion, that REIT qualification is not in the best interests of the
Trust; provided, however, that no Trustee, officer, employee or agent of the Trust shall be liable
for any act or omission resulting in the loss of tax benefits under the Code, except to the extent
provided in Section 12.2 hereof.

Section 9.2. Review of Investment and Borrowing Policies. The Independent Trustees shall
review the policies of the Trust regarding investments and borrowing with sufficient frequency (not
less often than annually) to determine that the policies being followed by the Trust are in the
best interests of its Shareholders. Each such determination and the basis therefor shall be set
forth in the minutes of the meetings of the Board.

Section 9.3. Operation of Business. The Trust shall not engage in any material business
activities or operations other than through the Operating Partnership or other direct or indirect
subsidiaries of the Trust. Notwithstanding the foregoing, the Trust shall have the power to do all
things related in any manner or incidental to (i) its status, powers, duties and responsibilities
as the general partner of the Operating Partnership, (ii) its ownership interest in any direct or
indirect subsidiaries of the Trust, (iii) capital raising, shareholder servicing and investment
management activities, including, without limitation, activities related to the issuance and
redemption of Securities, and (iv) its operation as a REIT, status as a North Dakota trust and
compliance with all applicable laws, rules and regulations.

Section 9.4. Certain Permitted Investments. Unless and until such time as the Common Shares
are Listed, the following investment limitations shall apply:

          (a) The Trust may invest in Assets. The consideration to be paid for Real Property acquired by
the Trust shall ordinarily be based on the fair market value of the Real Property as determined by
a majority of Trustees. In cases in which a majority of Independent Trustees or a duly authorized
committee so determines, and in all cases in which the transaction is with the Advisor, Sponsor,
Trustees, or any Affiliates thereof, such fair market value shall be as determined by an
Independent Appraiser selected by the Independent Trustees.

          (b) The Trust may invest in Joint Ventures with the Sponsor, Advisor, one or more Trustees or
any Affiliate, only if a majority of Trustees (including a majority of Independent Trustees) not
otherwise interested in the transaction, approve such investment as being fair and reasonable to
the Trust and on substantially the same terms and conditions as those received by the other joint
venturers.

          (c) The Trust may not invest in equity securities except to the extent that such investment is
within the specific parameters set forth in the investment guidelines approved by a majority of
Trustees (including a majority of Independent Trustees) as being fair, competitive and commercially
reasonable.

Section 9.5. Investment Limitations. In addition to other investment restrictions imposed
by the Board of Trustees from time to time consistent with the Trust’s objective of qualifying as a
REIT, the following investment limitations shall apply to the Trust until such time as the Common
Shares are Listed:

          (a) Not more than 10% of the Trust’s total Assets shall be invested in Unimproved Real
Property or mortgage loans on Unimproved Real Property.

          (b) The Trust shall not invest in commodities or commodity future contracts. This limitation
is not intended to apply to futures contracts when used solely for hedging purposes in connection
with the Trust’s ordinary business of investing in Real Estate and Mortgages.

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          (c) The Trust shall not invest in or make any Mortgage unless an appraisal is obtained
concerning the underlying property except for those loans insured or guaranteed by a government or
government agency. In cases in which a majority of Independent Trustees so determine, and in all
cases in which the transaction is with the Advisor, Sponsor, Trustees, or any Affiliates thereof,
such appraisal of the underlying property must be obtained from an Independent Appraiser. Such
appraisal shall be maintained in the Trust’s records for at least five years and shall be available
for inspection and duplication by any Shareholder for a reasonable charge. In addition to the
appraisal, a mortgagee’s or owner’s title insurance policy or commitment as to the priority of the
Mortgage or condition of the title must be obtained.

          (d) The Trust shall not invest in real estate contracts of sale, otherwise known as land sale
contracts, unless such contracts of sale are in recordable form and appropriately recorded in the
chain of title.

          (e) The Trust shall not make or invest in any mortgage loans, including a construction loan,
on any one property if the aggregate amount of all mortgage loans outstanding on the property,
including the loans of the Trust, would exceed an amount equal to 85% of the appraised value of the
property as determined by appraisal unless substantial justification exists because of the presence
of other underwriting criteria. For purposes of this subsection, the “aggregate amount of all
mortgage loans outstanding on the property, including the loans of the Trust” shall include all
interest (excluding contingent participation in income and/or appreciation in value of the
mortgaged property), the current payment of which may be deferred pursuant to the terms of such
loans, to the extent that deferred interest on each loan exceeds 5% per annum of the principal
balance of the loan.

          (f) The Trust shall not invest in mortgage loans on real property that are subordinate to any
mortgage or equity interest of the Advisor, any Trustee, the Sponsor or any Affiliate of the Trust.

          (g) The Trust shall not issue (i) redeemable equity securities (except that Shareholders may
offer their Common Shares to the Trust pursuant to any repurchase plan adopted by the Board on
terms outlined in the Prospectus relating to any Offering, as such plan is thereafter amended in
accordance with its terms); (ii) debt Securities unless the historical debt service coverage (in
the most recently completed fiscal year) as adjusted for known changes is sufficient to properly
service that higher level of debt; (iii) options or warrants to purchase the Trust’s Shares to the
Advisor, Trustees, Sponsor or any Affiliate thereof except on the same terms as such options or
warrants are sold to the general public. Options or warrants may be issued to Persons other than
the Advisor, Trustees, Sponsor or any Affiliate thereof, but not at exercise prices less than the
fair market value of the underlying Securities on the date of grant and not for consideration
(which may include services) that in the judgment of the Independent Trustees has a market value
less than the value of such option or warrant on the date of grant. Options or warrants issuable to
the Advisor, Trustees, Sponsor or any Affiliate thereof shall not exceed 10% of the outstanding
Shares on the date of grant; or (iv) equity Securities on a deferred payment basis or under similar
arrangements.

          (h) The aggregate Leverage shall be reasonable in relation to the Net Assets and shall be
reviewed by the Board at least quarterly. The maximum amount of such Leverage in relation to Net
Assets shall not exceed 300%. Notwithstanding the foregoing, Leverage may exceed such limit if any
excess in borrowing over such level is approved by a majority of the Independent Trustees as
appropriate. Any such excess borrowing shall be disclosed to Shareholders in the next quarterly
report of the Trust following such borrowing, along with justification for such excess.

          (i) The Trust will continually review its investment activity to attempt to ensure that it is
not classified as an “investment company” under the Investment Company Act of 1940, as amended.

          (j) The Trust will not make any investment that the Trust believes will be inconsistent with
its objectives of qualifying and remaining qualified as a REIT unless and until the Board
determines, in its sole discretion, that REIT qualification is not in the best interests of the
Trust.

          (k) The Trust shall not engage in trading, except for the purpose of short-term investments.

          (l) The Trust shall not engage in underwriting or the agency distribution of securities issued
by others.

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          (m) The Trust shall not invest in the securities of any entity holding investments or engaging
in activities prohibited by this Charter.

ARTICLE X.

CONFLICTS OF INTEREST

Section 10.1. Sales and Leases to the Trust. The Trust may purchase or lease any Real
Property from the Sponsor, the Advisor, a Trustee or any Affiliate thereof upon a finding by a
majority of Trustees (including a majority of Independent Trustees) not otherwise interested in the
transaction that such transaction is fair and reasonable to the Trust and at a price to the Trust
no greater than the cost of the Asset to such Sponsor, Advisor, Trustee or Affiliate, or, if the
price to the Trust is in excess of such cost, that substantial justification for such excess exists
and such excess is reasonable. In no event shall the purchase price of any Property to the Trust
exceed its current appraised value.

Section 10.2. Sales and Leases to the Sponsor, Advisor, Trustees or Affiliates. The
Sponsor, Advisor, Trustee or Affiliate thereof may purchase or lease Assets from the Trust if a
majority of Trustees (including a majority of Independent Trustees) not otherwise interested in the
transaction determine that the transaction is fair, competitive and commercially reasonable to the
Trust.

Section 10.3. Other Transactions.

     Section 10.3.1. The Trust shall not engage in any other transaction with the Sponsor, the
Advisor, a Trustee or any Affiliates thereof unless a majority of the Trustees (including a
majority of the Independent Trustees) not otherwise interested in such transaction approve such
transaction as fair and reasonable to the Trust and on terms and conditions not less favorable to
the Trust than those available from unaffiliated third parties, other than transactions involving
marketable securities at market prices consistent with the investment guidelines approved by a
majority of the Trustees (including a majority of the Independent Trustees).

     Section 10.3.2. The Trust shall not make loans to the Sponsor, the Advisor, a Trustee or any
Affiliates thereof except Mortgages pursuant to Section 9.4(c) hereof or loans to wholly owned
subsidiaries of the Trust. The Sponsor, Advisor, Trustees and any Affiliates thereof shall not make
loans to the Trust, or to joint ventures in which the Trust is a co-venturer, unless approved by a
majority of the Trustees (including a majority of the Independent Trustees) not otherwise
interested in such transaction as fair, competitive, and commercially reasonable, and no less
favorable to the Trust than comparable loans between unaffiliated parties.

Section 10.4. Review of Investment Opportunities. The Board of Trustees shall determine
(not less often than annually) whether the method for the allocation of the acquisition of real
properties between the Trust and other programs affiliated with the Sponsor or Advisor is fairly
applied to the Trust.

ARTICLE XI.

SHAREHOLDERS

Section 11.1. Meetings.

     Section 11.1.1. There shall be an annual meeting of the Shareholders, to be held on such date
and at such time and place as shall be determined by or in the manner prescribed in the Bylaws, at
which the Trustees shall be elected and any other proper business may be conducted; provided that
such annual meeting will be held upon reasonable notice and within a reasonable period (not less
than 30 days) following delivery of the annual report.

     Section 11.1.2. The holders of a majority of the Shares entitled to vote at such meeting who
are present in person or by proxy at an annual meeting at which a quorum is present, may, without
the necessity for concurrence by the Board, vote to elect the Trustees.

     Section 11.1.3. A quorum shall be the presence in person or by proxy of Shareholders holding
at least a majority of the Shares entitled to be voted at such meeting on any matter.

     Section 11.1.4. Special meetings of Shareholders may be called in the manner provided in the
Bylaws, including by the chief executive officer, a majority of the Trustees or a majority of the
Independent Trustees, and

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shall be called by the secretary of the Trust upon the written request of Shareholders holding in
the aggregate not less than 10% of outstanding Shares of the Trust entitled to be voted at such
meeting. Upon receipt of a written request, either in person or by mail, stating the purposes of
the meeting, the Trust shall provide all Shareholders within 10 day after receipt of such request,
written notice, either in person or by mail, of a meeting and the purposes of such meeting to be
held on a date not less than 15 days nor more than 60 days after the delivery of such notice. If
the meeting is called by written request of Shareholders as described in this Section 11.1.4., the
special meeting shall be held at the time and place specified in the Shareholder request; provided,
however, that if none is so specified, at such time and place convenient to the Shareholders. If
there are no Trustees, the officers of the Trust shall promptly call a special meeting of the
Shareholders entitled to vote for the election of successor Trustees. Any meeting may be adjourned
and reconvened as the Board may determine or as otherwise provided in the Bylaws.

Section 11.2. Voting Rights of Shareholders.

     Section 11.2.1. Subject to the provisions of any class or series of Shares then outstanding
and the mandatory provisions of any applicable laws or regulations, the Shareholders shall be
entitled to vote (by a vote of the holders of a majority of the outstanding Shares), without the
necessity for concurrence by the Board of Trustees, on the following matters as provided in this
Charter: (a) election or removal of Trustees as provided in Sections 11.1, 7.5 and 7.12 hereof; (b)
amendment of the Charter as provided in Article XIII hereof, (c) dissolution of the Trust and (d)
such other matters with respect to which the Board of Trustees has adopted a resolution declaring
that a proposed action is advisable and directing that the matter be submitted to the Shareholders
for approval or ratification. Except with respect to the foregoing matters, no action taken by the
Shareholders at any meeting shall in any way bind the Board.

     Section 11.2.2. Without the concurrence of Shareholders holding a majority of the outstanding
Shares, the Board of Trustees may not: (a) amend the Charter, except for amendments which do not
adversely affect the rights, preferences and privileges of the Shareholders including amendments to
provisions relating to Trustee qualifications, fiduciary duty, liability and indemnification,
conflicts of interest, investment policies or investment restrictions; (b) sell all or
substantially all of the Trust’s Assets other than in the ordinary course of the Trust’s business
or in connection with liquidation and dissolution; (c) cause the merger or reorganization of the
Trust except as permitted by law; or (d) dissolve or liquidate the Trust.

Section 11.3. Voting Limitations on Shares Held by the Advisor, Trustees and Affiliates.
With respect to Shares owned by the Advisor, Trustees, or any of their Affiliates, neither the
Advisor, Trustees, nor any of their Affiliates may vote or consent on matters submitted to the
Shareholders regarding the removal of the Advisor, Trustees or any of their Affiliates or any
transaction between the Trust and any of them. In determining the requisite percentage in interest
of Shares necessary to approve a matter on which the Advisor, Trustees and any of their Affiliates
may not vote or consent, any Shares owned by any of them shall not be included.

Section 11.4. Right of Inspection. Any Shareholder and any designated representative
thereof shall be permitted access to the records of the Trust to which it is entitled under
applicable law at all reasonable times, and may inspect and copy any of them for a reasonable
charge. Inspection of the Trust’s books and records by the office or agency administering the
securities laws of a jurisdiction shall be provided upon reasonable notice and during normal
business hours.

Section 11.5. Access to Shareholder List.

     Section 11.5.1. The Shareholder List shall be maintained as part of the books and records of
the Trust and shall be available for inspection by any Shareholder or the Shareholder’s designated
agent at the home office of the Trust upon the request of such Shareholder. The Shareholder List
shall be updated at least quarterly to reflect changes in the information contained therein.

     Section 11.5.2. A copy of the Shareholder List shall be mailed to any Shareholder so
requesting within ten days of receipt of the request by the Trust. The copy of the Shareholder List
shall be printed in alphabetical order, on white paper, and in a readily readable type size (in no
event smaller than ten-point type). The Trust may impose a reasonable charge for copy work. A
Shareholder may request a copy of the Shareholder List for reasons including, but not limited to,
matters relating to Shareholders’ voting rights and the exercise of Shareholder rights under
federal proxy laws.

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     Section 11.5.3. If the Advisor or the Board neglects or refuses to exhibit, produce or mail a
copy of the Shareholder List as requested, the Advisor and/or the Board, as the case may be, shall
be liable to any Shareholder requesting the Shareholder List for the costs, including reasonable
attorneys’ fees, incurred by that Shareholder for compelling the production of the Shareholder
List, and for actual damages suffered by such Shareholder by reason of such refusal or neglect. It
shall be a defense that the actual purpose and reason for the requests for inspection or for a copy
of the Shareholder List is to secure the Shareholder List or other information for the purpose of
selling the Shareholder List or copies thereof, or of using the same for a commercial purpose other
than in the interest of the applicant as a Shareholder relative to the affairs of the Trust. The
Trust may require the Shareholder requesting the Shareholder List to represent that the Shareholder
List is not requested for a commercial purpose unrelated to the Shareholder’s interest in the
Trust. The remedies provided hereunder to Shareholders requesting copies of the Shareholder List
are in addition to and shall not in any way limit other remedies available to Shareholders under
federal law or the laws of any state.

Section 11.6. Reports.

     Section 11.6.1. The Trust shall cause to be prepared and mailed or delivered to each
Shareholder as of a record date after the end of the fiscal year and each holder of other publicly
held Securities within 120 days after the end of the fiscal year to which it relates an annual
report for each fiscal year that shall include:

          (a) financial statements prepared in accordance with generally accepted accounting principles
which are audited and reported on by independent certified public accountants;

          (b) the ratio of the costs of raising capital during the period to the capital raised;

          (c) the aggregate amount of advisory fees and the aggregate amount of other fees paid to the
Advisor and any Affiliate of the Advisor by the Trust and including fees or charges paid to the
Advisor and any Affiliate of the Advisor by third parties doing business with the Trust;

          (d) the Total Operating Expenses of the Trust, stated as a percentage of Average Invested
Assets and as a percentage of its Net Income;

          (e) a report from the Independent Trustees that the policies being followed by the Trust are
in the best interests of its Shareholders and the basis for such determination; and

          (f) separately stated, full disclosure of all material terms, factors and circumstances
surrounding any and all transactions involving the Trust, Trustees, Advisors, Sponsors and any
Affiliate thereof occurring in the year for which the annual report is made. Independent Trustees
shall be specifically charged with a duty to examine and comment in the report on the fairness of
such transactions.

     Section 11.6.2. In addition, the Trustees, including the Independent Trustees, are required to
take reasonable steps to insure that the above requirements are met.

ARTICLE XII.

LIABILITY LIMITATION AND INDEMNIFICATION

Section 12.1. Limitation of Shareholder Liability. No Shareholder shall be liable for any
debt, claim, demand, judgment or obligation of any kind of, against or with respect to the Trust by
reason of his being a Shareholder, nor shall any Shareholder be subject to any personal liability
whatsoever, in tort, contract or otherwise, to any Person in connection with the Assets or the
affairs of the Trust by reason of his being a Shareholder.

Section 12.2. Limitation of Trustee and Officer Liability.

          (a) Subject to any limitations set forth under North Dakota law or in paragraph (b) below, no
Trustee or officer of the Trust shall be liable to the Trust or its Shareholders for money damages.
Neither the amendment nor repeal of this Section 12.2(a), nor the adoption or amendment of any
other provision of the Charter or Bylaws inconsistent with this Section 12.2(a), shall apply to or
affect in any respect the applicability of the preceding sentence with respect to any act or
failure to act which occurred prior to such amendment, repeal or adoption.

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          (b) Notwithstanding anything to the contrary contained in paragraph (a) above, the Trust shall
not provide that a Trustee, the Advisor or any of their Affiliates (the “Indemnitee”) be held
harmless for any loss or liability suffered by the Trust, unless all of the following conditions
are met:

               (i) The Indemnitee has determined, in good faith, that the course of conduct that caused the
loss or liability was in the best interests of the Trust.

               (ii) The Indemnitee was acting on behalf of or performing services for the Trust.

               (iii) Such liability or loss was not the result of (A) negligence or misconduct by the
Trustees (excluding Independent Trustees), the Advisor or any of their Affiliates or (B) gross
negligence or willful misconduct by the Independent Trustees.

               (iv) Such agreement to hold harmless is recoverable only out of Net Assets and not from the
Shareholders.

Section 12.3. Indemnification.

          (a) Subject to any limitations set forth under North Dakota law or in paragraph (b) or (c)
below, the Trust shall indemnify and, without requiring a preliminary determination of the ultimate
entitlement to indemnification, pay or reimburse reasonable expenses in advance of final
disposition of a proceeding to (i) any individual who is a present or former Trustee or officer of
the Trust and who is made or threatened to be made a party to the proceeding by reason of his or
her service in that capacity, (ii) any individual who, while a Trustee or officer of the Trust and
at the request of the Trust, serves or has served as a trustee, officer, partner or trustee of
another trust, REIT, partnership, joint venture, trust, employee benefit plan or other enterprise
and who is made or threatened to be made a party to the proceeding by reason of his or her service
in that capacity or (iii) the Advisor of any of its Affiliates acting as an agent of the Trust. The
Trust may, with the approval of the Board of Trustees or any duly authorized committee thereof,
provide such indemnification and advance for expenses to a Person who served a predecessor of the
Trust in any of the capacities described in (i) or (ii) above and to any employee or agent of the
Trust or a predecessor of the Trust. The Board may take such action as is necessary to carry out
this Section 12.3(a). No amendment of the Charter or repeal of any of its provisions shall limit or
eliminate the right of indemnification provided hereunder with respect to acts or omissions
occurring prior to such amendment or repeal.

          (b) Notwithstanding anything to the contrary contained in paragraph (a) above, the Trust shall
not provide for indemnification of an Indemnitee for any liability or loss suffered by such
Indemnitee, unless all of the following conditions are met:

               (i) The Indemnitee has determined, in good faith, that the course of conduct that caused the
loss or liability was in the best interests of the Trust.

               (ii) The Indemnitee was acting on behalf of or performing services for the Trust.

               (iii) Such liability or loss was not the result of (A) negligence or misconduct by the
Trustees (excluding Independent Trustees), the Advisor or any of their Affiliates or (B) gross
negligence or willful misconduct by the Independent Trustees.

               (iv) Such agreement to hold harmless is recoverable only out of Net Assets and not from the
Shareholders.

          (c) Notwithstanding anything to the contrary contained in paragraph (a) above, the Trust shall
not provide indemnification for any loss, liability or expense arising from or out of an alleged
violation of federal or state securities laws by such party unless one or more of the following
conditions are met: (i) there has been a successful adjudication on the merits of each count
involving alleged material securities law violations as to the Indemnitee, (ii) such claims have
been dismissed with prejudice on the merits by a court of competent jurisdiction as to the
Indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against
the Indemnitee and finds that indemnification of the settlement and the related costs should be
made, and the court considering the request for indemnification has been advised of the position of
the Securities and Exchange

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Commission and of the published position of any state securities regulatory authority in which
Securities of the Trust were offered or sold as to indemnification for violations of securities
laws.

Section 12.4. Payment of Expenses. The Trust may pay or reimburse reasonable legal expenses
and other costs incurred by an Indemnitee in advance of final disposition of a legal action for
which indemnification is being sought only if all of the following are satisfied: (a) the legal
action relates to acts or omissions with respect to the performance of duties or services on behalf
of the Trust, (b) the legal action was initiated by a third party who is not a Shareholder or is
initiated by a Shareholder of the Trust acting in his or her capacity as such and a court of
competent jurisdiction approves such advancement, (c) the Indemnitee provides the Trust with a
written undertaking to repay the amount paid or reimbursed by the Trust, together with the
applicable legal rate of interest thereon, in cases in which such Indemnitee is found not to be
entitled to indemnification; and (d) the Indemnitee provides the Trust with written affirmation of
the Indemnitee’s good faith belief that the Indemnitee has met the standard of conduct necessary
for indemnification by the Trust as authorized by Section 12.3 hereof.

Section 12.5. Express Exculpatory Clauses in Instruments. Neither the Shareholders nor the
Trustees, officers, employees or agents of the Trust shall be liable under any written instrument
creating an obligation of the Trust by reason of their being Shareholders, Trustees, officers,
employees or agents of the Trust, and all Persons shall look solely to the Trust’s assets for the
payment of any claim under or for the performance of that instrument. The omission of the foregoing
exculpatory language from any instrument shall not affect the validity or enforceability of such
instrument and shall not render any Shareholder, Trustee, officer, employee or agent liable
thereunder to any third party, nor shall the Trustees or any officer, employee or agent of the
Trust be liable to anyone as a result of such omission.

ARTICLE XIII.

AMENDMENTS

     The Trust reserves the right from time to time to make any amendment to the Charter, now or
hereafter authorized by law, including any amendment altering the terms or contract rights, as
expressly set forth in the Charter, of any Shares. All rights and powers conferred by the Charter
on Shareholders, Trustees and officers are granted subject to this reservation. Except for those
amendments permitted to be made without Shareholder approval under North Dakota law or by specific
provision in the Charter, including Section 11.2, any amendment to the Charter shall be valid only
if approved by the affirmative vote of a majority of all Shares entitled to be voted on the matter,
including without limitation, any amendment which would adversely affect the rights, preferences
and privileges of the Shareholders (or any other amendment of the Charter that would have the
effect of amending the same).

ARTICLE XIV.

ROLL-UP TRANSACTIONS

Section 14.1. Roll-Up Transaction. In connection with any proposed Roll-Up Transaction, an
appraisal of all of the Trust’s Assets shall be obtained from a competent Independent Appraiser. If
the appraisal will be included in a Prospectus used to offer the securities of a Roll-Up Entity,
the appraisal shall be filed with the Securities and Exchange Commission and the states as an
exhibit to the registration statement for the offering. The Trust’s Assets shall be appraised on a
consistent basis, and the appraisal shall be based on the evaluation of all relevant information
and shall indicate the value of the Assets as of a date immediately prior to the announcement of
the proposed Roll-Up Transaction. The appraisal shall assume an orderly liquidation of the Assets
over a twelve-month period. The terms of the engagement of the Independent Appraiser shall clearly
state that the engagement is for the benefit of the Trust and the Shareholders. A summary of the
appraisal, indicating all material assumptions underlying the appraisal, shall be included in a
report to Shareholders in connection with a proposed Roll-Up Transaction. In connection with a
proposed Roll-Up Transaction, the Person sponsoring the Roll-Up Transaction shall offer to
Shareholders who vote against the proposed Roll-Up Transaction the choice of:

          (a) accepting the securities of a Roll-Up Entity offered in the proposed Roll-Up Transaction;
or

          (b) one of the following:

               (i) remaining as Shareholders of the Trust and preserving their interests therein on the same
terms and conditions as existed previously; or

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               (ii) receiving cash in an amount equal to the Shareholder’s pro rata share of the appraised
value of the Net Assets of the Trust.

Section 14.2. Prohibited Roll-Up Transactions. The Trust is prohibited from participating
in any proposed Roll-Up Transaction:

          (a) which would result in the Shareholders having voting rights in a Roll-Up Entity that are
less than the rights provided for in Sections VI.A, VI.B, VI.C., VI.D. and VI.E. of the NASAA REIT
Guidelines;

          (b) which includes provisions that would operate to materially impede or frustrate the
accumulation of shares by any purchaser of the securities of the Roll-Up Entity (except to the
minimum extent necessary to preserve the tax status of the Roll-Up Entity), or which would limit
the ability of an investor to exercise the voting rights of its securities of the Roll-Up Entity on
the basis of the number of Shares held by that investor;

          (c) in which investor’s rights to access of records of the Roll-Up Entity will be less than
those described in Sections 11.4 and 11.5 hereof; or

          (d) in which any of the costs of the Roll-Up Transaction would be borne by the Trust if the
Roll-Up Transaction is not approved by the Shareholders.

ARTICLE XV.

DURATION

     The Trust shall continue perpetually unless dissolved pursuant to any applicable provision of
the NDCC.

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EXHIBIT 10.1

FIRST AMENDED AND RESTATED ADVISORY AGREEMENT

     THIS ADVISORY AGREEMENT (the “Agreement”), dated effective as of February 9, 2011 (the
“Effective Date”), is among INREIT Real Estate Investment Trust, an unincorporated North Dakota
business trust (the “Company”), INREIT Properties, LLLP, a North Dakota limited liability limited
partnership (“Operating Partnership”) and INREIT Management, LLC, a North Dakota limited liability
company (the “Advisor”).

WITNESSETH

     WHEREAS, the Company qualifies as a real estate investment trust (a “REIT”), as defined in
Sections 856 through 860 of the Code and intends to continue to make investments of the type
permitted by qualified REITs and consistent with the governing documents of the Company;

     WHEREAS, the Company is the general partner of the Operating Partnership and intends to
conduct all of its business and make substantially all Investments through the Operating
Partnership;

     WHEREAS, the Company and the Operating Partnership desire to retain the Advisor to perform the
duties and undertake the responsibilities hereinafter set forth, on behalf of, and subject to the
supervision, of the Board, all as provided herein; and

     WHEREAS, the Advisor is willing to render such services and undertake such responsibilities,
subject to the supervision of the Board, on the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, the parties hereto agree as follows:

     1. DEFINITIONS. As used in this Agreement, the following terms have the definitions
hereinafter indicated:

     Acquisition Expenses. Any and all expenses incurred by the Company, the Operating
Partnership, the Advisor or any of their Affiliates in connection with the selection, acquisition,
origination, making or development of any Investments, whether or not acquired, including, without
limitation, legal fees and expenses, travel and communications expenses, costs of appraisals,
nonrefundable option payments on assets not acquired, accounting fees and expenses, title insurance
premiums and the costs of performing due diligence.

     Acquisition Fees. Any and all fees and commissions, exclusive of Acquisition Expenses, paid by
any Person to any other Person (including any fees or commissions paid by or to any Affiliate of
the Company or the Advisor) in connection with acquiring Investments, including but not limited to
the development or construction of a property, including real estate commissions, selection fees,
development fees, construction fees, nonrecurring management fees, loan fees, points or any other
fees of a similar nature. Excluded shall be development fees and construction fees paid to any
Person not an Affiliate of the Advisor in connection with the actual development and construction
of a property.

     Affiliate or Affiliated. With respect to any Person, (i) any party directly or indirectly
owning, controlling or holding the power to vote 10% of more of the outstanding voting securities
of such Person; (ii) any party 10% or more of whose outstanding voting securities are directly or
indirectly owned, controlled or held, with the power to vote, by the Person; (iii) any party
directly or indirectly controlling, controlled by or under common control with the Person; (iv) any
executive officer, director, trustee or general partner of the Person; or (v) any legal entity for
which the Person acts as an executive officer, director, trustee or general partner.

     Average Invested Assets. For a specified period, the average of the aggregate book value of
the assets of the Company invested, directly or indirectly by the Operating Partnership, in
Investments before deducting depreciation, bad debts or other non-cash reserves, computed by taking
the average of such values at the end of each month during such period.

     Board. The board of trustees of the Company, as of any particular time.

     Bylaws. The bylaws of the Company, as the same are in effect from time to time.

     Cause. With respect to the termination of this Agreement, fraud, criminal conduct, willful
misconduct or willful or negligent breach of fiduciary duty by the Advisor in connection with
performing its duties hereunder.

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     Code. Internal Revenue Code of 1986, as amended from time to time, or any successor statute
thereto. Reference to any provision of the Code shall mean such provision as in effect from time
to time, as the same may be amended, and any successor provision thereto, as interpreted by any
applicable regulations as in effect from time to time.

     Distributions. Any distributions of money or other property by the Company to owners of
Shares, including distributions that may constitute a return of capital for federal income tax
purposes. In connection with the Operating Partnership, any distributions of money or other
property of an Operating Partner to owners of its partnership interests, including distributions
that may constitute a return of capital for federal income tax purposes.

     Excess Amount. Excess Amount shall have the meaning set forth in Section 13.

     Expense Year. Expense Year shall have the meaning set forth in Section 13.

     GAAP. Generally accepted accounting principles as in effect in the United States of America
from time to time.

     Governing Instruments. The Articles of Organization, Declaration of Trust and Bylaws of the
Company, as amended from time to time.

     Indemnitee. Indemnitee and Indemnitees shall have the meaning set forth in Section 20 herein.

     Independent Trustee. Independent Trustee shall have the meaning set forth in the Governing
Instruments and the Operating Partnership Agreement.

     Investment Company Act. The Investment Company Act of 1940, as amended.

     Investments. Any investments by the Company or an Operating Partnership in Real Estate Assets
and Other Real Estate Related Investments.

     Joint Ventures. The joint venture or partnership arrangements (other than with an Operating
Partnership) in which the Company or any of its subsidiaries is a co-venturer or general partner
which are established to acquire Investments.

     Listing. The listing of the Shares on a national securities exchange or the receipt by the
Shareholders of securities that are listed on a national securities exchange in exchange for the
Company’s common stock. Upon such Listing, the Shares shall be deemed Listed.

     Loans. Any indebtedness or obligations in respect of borrowed money or evidenced by bonds,
notes, debentures, deeds of trust, letters of credit or similar instruments, including mortgages
and mezzanine loans.

     Management Fee. The fee payable to the Advisor pursuant to Section 10.

     NASAA REIT Guidelines. The Statement of Policy Regarding Real Estate Investment Trusts
published by the North American Securities Administrators Association on May 7, 2007, as may be
amended from time to time.

     Net Income. For any period, the Company’s total revenues applicable to such period, less the
total expenses applicable to such period other than additions to reserves for depreciation, bad
debts or other similar non-cash reserves and excluding any gain from the Sale of the Company’s
assets.

     Operating Partnership Agreement. The Limited Partnership Agreement of the Operating
Partnership as may be amended from time to time.

     Organizational and Offering Expenses. Organizational and Offering Expenses means all expenses
incurred by or on behalf of the Company and the Operating Partnership in connection with their
formation and preparing the Company and Operating Partnership for any private offering of their
securities, any registration of the Company’s Shares, Listing of the Shares and any subsequent
public offering of the Company’s Shares, whether incurred before or after the date of this
Agreement, which may include but are not limited to: total underwriting and brokerage discounts and
commissions (including fees of the underwriters’ or brokers’ attorneys); any expense allowance of
an underwriter or broker; any reimbursement of expenses of an underwriter or broker; expenses for
printing, engraving and mailing offering documents; telephone and other telecommunications costs;
all advertising and marketing expenses (including the costs related to investor and broker-dealer
sales meetings); charges of transfer agents, registrars, trustees, escrow agents, depositaries and
experts; expenses regarding the registration or compliance with exemption requirements in
connection with any sale of the Company’s or the Operating Partnership’s securities under federal
and applicable state securities laws; and related taxes and fees and accountants’ and attorneys’
fees.

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     Other Real Estate Related Investments. Any investments by the Company or the Operating
Partnership in debt and equity interests backed by real estate, including (i) real estate
securities such as common stocks, preferred stocks and options to acquire stock in REITs and other
real estate companies and (ii) debt-related investments such as (a) mortgage, mezzanine, bridge and
other loans and (b) debt and derivative securities related to real estate assets including
mortgage-backed securities, collateralized debt obligations, debt securities issued by real estate
companies and credit default swaps.

     Partnership Interests. The partnership interests of the Operating Partnership.

     Partners. The holders of the Partnership Interests.

     Person. An individual, corporation, partnership, trust, joint venture, limited liability
company or other entity.

     Real Estate Assets. Any investments by the Company or the Operating Partnership in unimproved
and improved Real Property (including, without limitation, fee or leasehold interests, options and
leases) either directly or through a Joint Venture.

     Real Property. Real property owned from time to time by the Company or the Operating
Partnership, either directly or through Joint Ventures, which consists of (i) land only, (ii) land,
including the buildings located thereon, (iii) buildings only or (iv) such investments the Board
and the Advisor mutually designate as Real Property to the extent such investments could be
classified as Real Property.

     REIT. A “real estate investment trust” under Sections 856 through 860 of the Code or as may
be amended.

     Related Party. With respect to any Person, any other Person whose ownership of Shares would
be attributed to the first such Person under Code Section 544 (as modified by Code Section
856(h)(1)(B)).

     Sale or Sales. Any transaction or series of transactions whereby: (A) the Company or the
Operating Partnership directly or indirectly (except as described in other subsections of this
definition) sells, grants, transfers, conveys or relinquishes its ownership of any Real Property or
portion thereof, including the lease of any Real Property consisting of a building only, and
including any event with respect to any Real Property which gives rise to a significant amount of
insurance proceeds or condemnation awards; (B) the Company or the Operating Partnership directly or
indirectly (except as described in other subsections of this definition) sells, grants, transfers,
conveys or relinquishes its ownership of all or substantially all of the interest of the Company or
the Operating Partnership in any Joint Venture in which it is a co-venturer or partner; (C) any
Joint Venture directly or indirectly (except as described in other subsections of this definition)
in which the Company or the Operating Partnership as a co-venturer or partner sells, grants,
transfers, conveys or relinquishes its ownership of any Real Property or portion thereof, including
any event with respect to any Real Property which gives rise to insurance claims or condemnation
awards; (D) the Company or the Operating Partnership directly or indirectly (except as described in
other subsections of this definition) sells, grants, conveys or relinquishes its interest in any
Other Real Estate Related Investment or portion thereof (including with respect to any Loan, all
payments thereunder or in satisfaction thereof other than regularly scheduled interest payments)
and any event which gives rise to a significant amount of insurance proceeds or similar awards; or
(E) the Company or the Operating Partnership directly or indirectly (except as described in other
subsections of this definition) sells, grants, transfers, conveys or relinquishes its ownership of
any other asset not previously described in this definition or any portion thereof, but not
including any transaction or series of transactions specified in clauses (A) through (E) above in
which the proceeds of such transaction or series of transactions are reinvested by the Company or
the Operating Partnership in one or more assets within 180 days thereafter.

     Securities Act. The Securities Act of 1933, as amended.

     Shares. The shares of Common Shares of Beneficial Interest of the Company.

     Shareholders. The holders of the Shares.

     Termination Date. The date of termination of this Agreement or expiration of this Agreement
in the event this Agreement is not renewed for an additional term.

     Total Operating Expenses. All costs and expenses paid or incurred by the Company and the
Operating Partnership, as determined under GAAP, that are in any way related to the operation of
the Company and the Operating Partnership or their business, including the Management Fees paid to
the Advisor, but excluding (i) the expenses of raising capital including Organization and Offering
Expenses, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation,
amortization and bad debt reserves, (v) incentive fees paid under the Operating Partnership
Agreement; (vi) Acquisition Expenses, (vii) real estate commissions on the Sale of Real Property,
and (viii) other fees and expenses connected with the acquisition, disposition, management and
ownership of Investments (including the costs of foreclosure, insurance premiums, legal services,
maintenance, repair and improvement of property). The definition of “Total Operating Expenses” set
forth above is intended to encompass only those expenses which are required to be treated as Total
Operating Expenses under the NASAA REIT Guidelines. As a result, and

-3-

 

notwithstanding the definition set forth above, any expense of the Company which is not part
of Total Operating Expenses under the NASAA REIT Guidelines shall not be treated as part of Total
Operating Expenses for purposes hereof.

     Trustee. A member of the Board.

     2%/25% Guidelines. 2%/25% Guidelines shall have the meaning set forth in Section 13.

     Valuation Guidelines. The valuation guidelines adopted by the Board, as amended from time to
time.

     2. APPOINTMENT. The Company and the Operating Partnership hereby appoint the Advisor
to serve as their advisor on the terms and conditions set forth in this Agreement, and the Advisor
hereby accepts such appointment.

     3. DUTIES OF THE ADVISOR. The Advisor undertakes to use its best efforts to present
to the Company and the Operating Partnership potential investment opportunities and to provide the
Company and the Operating Partnership with a continuing and suitable investment program consistent
with the investment objectives and policies of the Company as determined and adopted from time to
time by the Board. In performing this undertaking, subject to the supervision of the Board and
consistent with the provisions of the Governing Instruments and the Operating Partnership
Agreement, the Advisor shall, either directly or by engaging an Affiliate or a third party:

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

     (b) provide day-to-day management for the Company and the Operating Partnership and
perform and supervise the various administrative functions reasonably necessary for the
management of the Company and the Operating Partnership, including: the collection of
revenues and the payment of the Company’s and the Operating Partnership’s debts and
obligations, maintaining appropriate computer services to perform such administrative
functions, maintaining the Company’s and the Operating Partnership’s books and records and
organizing meetings of the Board;

     (c) determine the proper allocation of the Company’s and the Operating Partnership’s
Investments between (i) Real Estate Assets, (ii) Other Real Estate Related Investments and
(iii) cash and cash equivalents and other short-term investments;

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

     (e) subject to the provisions of Section 4 hereof, (i) locate, analyze and select
potential Investments; (ii) structure and negotiate the terms and conditions of transactions
pursuant to which acquisitions and dispositions of Investments will be made; (iii) research,
identify, review and recommend acquisitions and dispositions of Investments to the Board;
(iv) acquire and dispose of the Investments on behalf of the Company and the Operating
Partnership in compliance with the investment objectives and policies of the Company; (v)
arrange for financing and refinancing and make other changes in the asset or capital
structure of, and dispose of, reinvest the proceeds from the Sale of, or otherwise deal with,
Investments; (vi) enter into leases and service contracts for Investments and, to the extent
necessary, perform all other operational functions for the maintenance and administration of
such Investments; (vii) actively oversee and manage Investments for purposes of meeting the
Company’s investment objectives; (viii) select Joint Venture partners, structure
corresponding agreements and oversee and monitor these relationships; (ix) oversee Affiliated
and non-Affiliated property managers who perform services for the Company or the Operating
Partnership; (x) oversee Affiliated and non-Affiliated Persons with whom the Advisor
contracts to perform other services required to be performed under this Agreement; and (xi)
manage accounting and other record-keeping functions for the Company and the Operating
Partnership;

     (f) negotiate on behalf of the Company and the Operating Partnership with banks or
lenders for Loans to be made to the Company and the Operating Partnership and obtain Loans
for the Company and the Operating Partnership;

     (g) negotiate on behalf of the Company and the Operating Partnership with investment
banking firms and broker-dealers or negotiate private and public sales of Shares, Partnership
Interests or other securities of the Company or the Operating Partnership, but in no event in
such a way so that the Advisor shall be acting as broker-dealer or underwriter;

-4-

 

     (h) monitor the operating performance of the Investments and provide periodic reports
with respect thereto to the Board, including comparative information with respect to such
operating performance and budgeted or projected operating results;

     (i) from time to time, or at any time reasonably requested by the Trustees, make reports
to the Trustees of its performance of services to the Company and the Operating Partnership
under this Agreement, including reports with respect to potential conflicts of interest
involving the Advisor or any of its Affiliates;

     (j) assist in calculating the net asset value and Average Invested Assets as provided in
the Valuation Guidelines, and in connection therewith, (i) obtain and maintain on behalf of
the Company appraisals and reports (which may, but are not required to, be prepared by the
Advisor or its Affiliates), where required or appropriate, concerning the value of
Investments, and (ii) engage such independent valuation experts, third-party appraisal
managers and appraisers as the Advisor deems appropriate to perform valuations and other
services, provided that any independent valuation expert shall be approved in advance of
engagement by the Board;

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

     (l) arrange, negotiate, coordinate and manage operations of any Joint Venture interests
held by the Company or the Operating Partnership and conduct all matters with any Joint
Venture partners;

     (m) communicate on the Company’s or the Operating Partnership’s behalf with the
respective holders of any of the Company’s or the Operating Partnership’s equity or debt
securities as required to satisfy the reporting and other requirements of any governmental
bodies or agencies and to maintain effective relations with such holders;

     (n) evaluate and recommend to the Board modifications to the hedging strategies in
effect and cause the Company to engage in overall hedging strategies consistent with the
Company’s status as a REIT and with the Company’s investment policies approved by the Board;

     (o) advise the Company regarding the maintenance of the Company’s exclusion from the
status of an investment company required to be registered under the Investment Company Act
and monitor compliance with the requirements for maintaining such exclusion under the
Investment Company Act;

     (p) advise the Company regarding achieving and maintaining the Company’s qualification
for taxation as a REIT and monitor compliance with the various REIT qualification tests and
other rules set out in the Code and the regulations promulgated thereunder;

     (q) invest or reinvest any money of the Company or the Operating Partnership (including
investing in short-term Investments pending investment in long-term Investments, payment of
fees, costs and expenses, or payments of Distributions), and advise the Company and the
Operating Partnership as to the Company’s or the Operating Partnership’s respective capital
structure and capital raising;

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

     (s) cause the Company and the Operating Partnership to retain qualified accountants and
legal counsel, as applicable, to assist in developing appropriate accounting procedures,
compliance procedures and testing systems with respect to financial reporting obligations and
compliance with the REIT provisions of the Code and to conduct compliance reviews thereto, as
required;

     (t) cause the Company and the Operating Partnership to qualify to do business in all
applicable jurisdictions and to obtain and maintain all appropriate licenses;

     (u) if the Company decides to register the Shares under the Securities Act, assist the
Company in obtaining and maintaining the registration of the Shares under federal and state
securities laws, in the Listing of the Shares and in complying with all federal, state and
local regulatory requirements applicable to the Company in respect of the Shares being

-5-

 

registered and the Company’s business activities (including the Sarbanes-Oxley Act of
2002), including preparing or causing to be prepared the registration statement, prospectus,
supplements to the prospectus, pre-effective and post-effective amendments to the
registration statement, financial statements required under applicable regulations and
contractual undertakings and all reports and documents, if any, required under the Securities
Act and the Securities Exchange Act of 1934, as amended;

     (v) take all necessary actions to enable the Company and the Operating Partnership to
make required tax filings and reports, including soliciting stockholders for required
information to the extent provided by the REIT provisions of the Code;

     (w) handle and resolve all claims, disputes or controversies (including all litigation,
arbitration, settlement or other proceedings or negotiations) in which the Company and the
Operating Partnership may be involved or to which the Company and the Operating Partnership
may be subject, arising out of the Company’s or the Operating Partnership’s day-to-day
operations, subject to such limitations or parameters as may be imposed from time to time by
the Board;

     (x) use commercially reasonable efforts to cause expenses incurred by or on behalf of
the Company and the Operating Partnership to be reasonable or customary and within any
budgeted parameters or expense guidelines set by the Board from time to time;

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

     (z) perform such other services as may be required from time to time for the management
and other activities relating to the Company’s and the Operating Partnership’s respective
business and assets as the Board shall reasonably request or the Advisor shall deem
appropriate under the particular circumstances; and

     (aa) use commercially reasonable efforts to cause the Company and the Operating
Partnership to comply with all applicable laws.

     4. AUTHORITY OF ADVISOR.

     (a) Pursuant to the terms of this Agreement (including the restrictions included in this
Section 4 and in Section 8), and subject to the continuing and exclusive authority of the
Board over the management of the Company, the Board (by virtue of its approval of this
Agreement and authorization of the execution hereof by the officers of the Company) hereby
designates and appoints the Advisor as the agent and attorney-in-fact of the Company and the
Operating Partnership, with full power and authority and without further approval of the
Company and the Operating Partnership, to take, or cause to be taken, any and all actions and
to execute and deliver in the name of and on behalf of the Company and the Operating
Partnership any and all agreements, certificates, assignments, instruments or other documents
and to do any and all things that, in the judgment of the Advisor, may be necessary or
advisable in connection with the Advisor’s duties described in Section 3.

     (b) Notwithstanding the foregoing, any investment in an Investment that does not fit
within the Company’s investment objectives, strategy, guidelines, policies and limitations as
approved by the Board and within the discretionary limits and authority as granted from time
to time by the Board, will require the prior approval of the Board, any particular Trustees
specified by the Board or any committee of the Board, as the case may be.

     (c) If a transaction requires approval by the Independent Trustees by the Governing
Instruments or the Operating Partnership Agreement, the Advisor will deliver to the
Independent Trustees all documents and other information required by them to properly
evaluate the proposed transaction.

     (d) The prior approval of the Board, as required by the Governing Instruments or the
Operating Partnership Agreement, will be required for each transaction to which the Advisor
or its Affiliates is a party.

     (e) The Board may, at any time upon the giving of notice to the Advisor, modify or
revoke the authority set forth in this Section 4; provided, however, that such modification
or revocation shall be effective upon receipt by the Advisor and shall not be applicable to
Investment transactions to which the Advisor has committed the Company or the Operating
Partnership prior to the date of receipt by the Advisor of such notification.

     5. SUBCONTRACT OF SERVICES. The Company and the Operating Partnership acknowledge
and agree that any services to be performed by the Advisor under this Agreement may be provided
pursuant to subcontracts with third party providers or pursuant to arraignments with Affiliates of
the Advisor. The Advisor shall disclose to the Board upon its request the terms of any such
sub-contracting arraignment entered into by the Advisor with third parties or Affiliates of the
Advisor.

-6-

 

     6. BANK ACCOUNTS. At the direction of the Board, the Advisor may establish and
maintain, as an agent and signatory on behalf of the Company and the Operating Partnership, one or
more bank accounts in the name of the Company or the Operating Partnership (any such account, a
“Company Account”), collect and deposit funds into any Company Account, and disburse funds from any
Company Accounts, under such terms and conditions as the Board may approve. The Advisor shall from
time to time render appropriate accountings of such collections and payments to the Board and to
the auditors of the Company, as applicable.

     7. RECORDS; ACCESS. The Advisor shall maintain appropriate records of all its
activities hereunder and make such records available for inspection by the Board and by counsel,
auditors and authorized agents of the Company and Operating Partnership, at any time or from time
to time during normal business hours. The Advisor shall at all reasonable times have access to the
books and records of the Company and the Operating Partnership.

     8. LIMITATIONS ON ACTIVITIES. Notwithstanding any provision of this Agreement, the
Advisor shall refrain from taking any action which, in its sole judgment made in good faith, would
(a) adversely affect the status of the Company as a REIT, (b) subject the Company to regulation
under the Investment Company Act, or (c) violate any law, rule, regulation or statement of policy
of any governmental body or agency having jurisdiction over the Company, the Operating Partnership
or their securities, or otherwise not permitted by the Governing Instruments of the Company or the
Operating Partnership Agreement, except if such action shall be ordered by the Board, in which case
the Advisor shall notify promptly the Trustee’s of the Advisor’s judgment of the potential impact
of such action and shall refrain from taking such action until it receives further clarification or
instructions from the Board. In such event, the Advisor shall have no liability for acting in
accordance with the specific instructions of the Board so given. Notwithstanding the foregoing,
the governors, officers, employees and members of the Advisor or an Affiliate of the Advisor shall
not be liable to the Company, Operating Partnership or holders of their securities for any act or
omission by the Advisor taken or omitted to be taken in the performance of Advisor’s duties under
this Agreement except as provided in Section 21 of this Agreement.

     9. RELATIONSHIP WITH BOARD. Subject to Section 8 of this Agreement and to
restrictions advisable with respect to the qualification of the Company as a REIT, governors,
officers and employees of the Advisor or an Affiliate of the Advisor, may serve as a Trustee and as
officers of the Company, except that no governor, officer or employee of the Advisor or an
Affiliate of the Advisor who also is a Trustee or officer of the Company shall receive any
compensation from the Company for serving as a Trustee or officer other than reasonable
reimbursement for travel and related expenses incurred in attending meetings of the Board,
Shareholders and Partners, and shall not be deemed an Independent Trustee for purposes of
satisfying the director independence requirement set forth in the Governing Instruments or the
Operating Partnership Agreement.

     10. FEES.

     (a) The Advisor shall receive a Management Fee of 1/2% of the Net Invested Assets as its
basic compensation for services rendered hereunder. The Management Fee will be calculated and
payable monthly, unless deferred at the option of the Advisor but without accruing interest
on such delayed payment. The Management Fee is payable either in cash or Shares, at the
option of the Advisor. The Management Fee paid monthly shall not to exceed one-twelfth of
1/2% of the Net Invested Assets as of the last day of the immediately preceding quarter. The
Management Fee calculation will be subject to quarterly and annual reconciliations.

     For purposes of this agreement, “Net Invested Assets” shall be determined as follows:

	 	 	 	 	 	 	 

	 

	 	Add:
	 	(i)
	 	total assets at cost
	 
	 	 	 	 	 	 
	 

	 	 	 	(ii)
	 	depreciation reserve
	 
	 	 	 	 	 	 
	 

	 	 	 	(iii)
	 	unearned contract receivable discount
	 
	 	 	 	 	 	 
	 

	 	 	 	(iv)
	 	deferral gain account
	 
	 	 	 	 	 	 
	 

	 	Subtract:
	 	(i)
	 	cash
	 
	 	 	 	 	 	 
	 

	 	 	 	(ii)
	 	other current assets
	 
	 	 	 	 	 	 
	 

	 	 	 	(iii)
	 	marketable securities less margin accounts
	 
	 	 	 	 	 	 
	 

	 	 	 	(iv)
	 	total liabilities

     (b) In the event this Agreement is terminated or its term expires without renewal, the
Management Fee will be calculated up to and including the Termination Date. If the
Management Fee is payable with respect to any partial calendar month, the Management Fee will
be prorated based on the number of days elapsed during any partial calendar month. The
Management Fee will be calculated in accordance with the calculation policy approved by the
Board.

     (c) The Management Fee will be calculated in accordance with the calculation policy
approved by the Board and the Advisor, and such policy and procedure shall be consistent with
the description of the calculation of the Management Fee as set forth herein.

-7-

 

     (d) For its services in investigating and negotiating acquisitions of real estate
equity, mortgages or contracts for deed for the Trust, the Advisor shall receive an
Acquisition Fee equal to 3% of the purchase price for an Investment, but shall be capped at
$300,000 per acquisition. Notwithstanding the foregoing, Acquisition Expenses and Acquisition
Fees may not in the aggregate exceed 6% of the purchase price for an Investment unless fees
in excess of such amount are approved by the Board, as required by the Governing Instruments
or Operating Agreement.

     For purposes of clarity, 50% of any Acquisition Fee shall be allocated to Acquisition
related activity and the remaining 50% shall be allocated to finance related activity.

     (e) If and as approved by the Trust, the Trust may pay the Advisor a disposition fee
upon the Sale of any Property in an amount up to one-half of the Competitive Real Estate
Commission, but in no event can such amount exceed 3% of the contracted for sales price of
such Property or Properties. Payment of such fee may be made only if the Advisor provides a
substantial amount of services in connection with the Sale of a Property or Properties, as
determined by a majority of the Independent Trustees of the Trust. In addition, the amount
paid when added to all other real estate commissions paid to unaffiliated parties in
connection with such Sale shall not exceed the lesser of the Competitive Real Estate
Commission or an amount equal to 6% of the contracted for sales price of such Property or
Properties.

     (f) The Advisor or its Affiliates shall receive a fee in the amount of five percent
(5%) of the gross monthly property income on properties it or its Affiliates actively manage
as compensation for such management services.

     (g) Upon formation of the Trust and Operating Partnership, the Advisor and its
Affiliates made capital contributions in excess of $200,000 which capital contributions are
still held.

     11. EXPENSES.

     (a) In addition to the Management Fee paid to the Advisor pursuant to Section 10 hereof,
the Company or the Operating Partnership shall pay directly or reimburse the Advisor for all
of the expenses paid or incurred by the Advisor in connection with the services it provides
to the Company and the Operating Partnership pursuant to this Agreement (collectively, the
“Expenses”), including, but not limited to:

     (i) Organizational and Offering Expenses, subject to any limitations set forth in
the Governing Instruments;

     (ii) Total Operating Expenses, subject to any limitations set forth in the
Governing Instruments;

     (iii) Acquisition Expenses, subject to any limitations set forth in the Governing
Instruments or Section 13 hereof;

     (iv) the actual cost of goods and services used by the Company or the Operating
Partnership and obtained from entities not affiliated with the Advisor (or if the
provider is an Affiliate of the Advisor, as such expenses have been approved by the
Board in the manner set forth in the Governing Instruments);

     (v) interest and other costs for borrowed money, including discounts, points and
other similar fees;

     (vi) taxes and assessments on income of the Company, Operating Partnership or
Investments, taxes as an expense of doing business and any other taxes otherwise
imposed on the Company, Operating Partnership and their business, assets or income;

     (vii) costs associated with insurance required in connection with the business of
the Company or Operating Partnership or required by the Board;

     (viii) expenses of managing, maintaining, repairing, improving, developing,
operating and selling the Investments, including the costs of foreclosure, whether
payable to an Affiliate of the Company or a non-affiliated Person;

     (ix) all expenses in connection with payments to the Trustees for attending Board
and Shareholder meetings and meetings of the Partnership Interests;

     (x) expenses connected with payments of Distributions made or caused to be made
by the Company and the Operating Partnership;

-8-

 

     (xi) expenses of organizing, redomesticating, merging, liquidating or dissolving
the Company or the Operating Partnership or of amending the Governing Instruments;

     (xii) expenses of providing services for and maintaining communications with
Shareholders and Partners, including the cost of preparation, printing, and mailing
annual reports and other reports required by governmental entities;

     (xiii) administrative service expenses, including but not limited to personnel
and related employment costs incurred by the Advisor or its Affiliates in performing
the services described in Section 3 hereof, including but not limited to reasonable
salaries, bonuses and wages, benefits and overhead of all employees directly involved
in the performance of such services, provided that no reimbursement shall be made for
costs of such employees of the Advisor or its Affiliates to the extent that such
employees perform services for which the Advisor receives a separate fee; and

     (xiv) audit, accounting and legal fees and other fees for professional services
relating to the operations of the Company and Operating Partnership and all such fees
incurred at the request, or on behalf of, the Board, the Independent Trustees or any
committee of the Board.

     (b) Expenses incurred by the Advisor on behalf of the Company and the Operating
Partnership and reimbursable pursuant to this Section 11 shall be reimbursed by the Company
or the Operating Partnership no less than monthly to the Advisor. The Advisor shall prepare
a statement documenting the Expenses during each month, and the Company or the Operating
Partnership shall reimburse the Advisor for such the Expenses within forty-five (45) days
after receipt of such statement.

     12. OTHER SERVICES. If the Board requests that the Advisor or any governor, officer
or employee of the Advisor render services for the Company and the Operating Partnership other than
set forth in Section 3, such services shall be separately compensated at such rates and in such
amounts as are agreed by the Advisor and the Board, in the manner required under the Governing
Instruments or the Operating Partnership Agreement and subject to any limitations contained in the
Governing Instruments and Operating Partnership Agreement, and shall not be deemed to be services
pursuant to the terms of this Agreement.

     13. REIMBURSEMENT TO THE ADVISOR.

     (a) The Company and the Operating Partnership shall not reimburse the Advisor at the end
of any fiscal quarter for Total Operating Expenses that in the four consecutive fiscal
quarters then ended (the “Expense Year”) exceeded (the “Excess Amount”) the greater of 2.0%
of Average Invested Assets or 25.0% of Net Income (the “2%/25% Guidelines”) for such year
unless the Board determines, in the manner required by the Governing Instruments, that such
excess was justified, based on unusual and nonrecurring factors that the Board deems
sufficient. If the Board does not approve such excess as being so justified, any Excess
Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company or the
Operating Partnership. If the Board determines such excess was justified, then, within sixty
(60) days after the end of any fiscal quarter of the Company for which total reimbursed Total
Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Advisor, at the
direction of the Board, shall cause such fact to be disclosed to the Shareholders or
Partners, as appropriate, in writing, together with an explanation of the factors the Board
considered in determining that such Excess Amount was justified. The Company will ensure
that such determination will be reflected in the minutes of the meetings of the Board. All
figures used in the foregoing computations shall be determined in accordance with GAAP
applied on a consistent basis.

     14. OTHER ACTIVITIES OF THE ADVISOR.

     (a) Relationship. Nothing herein contained shall prevent the Advisor or any of its
Affiliates from engaging in or earning fees from other activities, including, without
limitation, the rendering of advice to other Persons (including other REITs) and the
management of other programs advised, sponsored or organized by the Advisor or its
Affiliates; nor shall this Agreement limit or restrict the right of any director, officer,
employee, or security holder of the Advisor or its Affiliates to engage in or earn fees from
any other business or to render services of any kind to any other partnership, corporation,
firm, individual, trust or association and earn fees for rendering such services. The
Advisor may, with respect to any Investment in which the Company or the Operating Partnership
is a participant, also render advice and service to other participants therein, and earn fees
for rendering such advice and service.

     (b) Time Commitment. The Advisor shall, and shall cause its Affiliates and their
respective employees, officers and agents to, devote to the Company and the Operating
Partnership such time as shall be reasonably necessary to conduct the business and affairs of
the Company and Operating Partnership in an appropriate manner consistent with the terms of
this Agreement. The Company and the Operating Partnership acknowledge that the Advisor and
its Affiliates and their respective employees, officers and agents may also engage in
activities unrelated to the Company and Operating Partnership and may provide services to
Persons other than the Company or the Operating Partnership.

-9-

 

     (c) Investment Opportunities. The Advisor shall use its best efforts to present to the
Company and the Operating Partnership a number of potential investment opportunities
appropriate for the portfolio of the Company and the Operating Partnership. The Advisor shall
allocate potential investment opportunities in accordance with the Advisor’s or its
Affiliate’s allocation policies, as such allocation policies may be amended from time to
time.

     15. RELATIONSHIP OF THE PARTIES/NO PARTNERSHIP OR JOINT VENTURE. The Company and the
Operating Partnership, on the one hand, and the Advisor on the other, are not partners or joint
venturers with each other, and nothing in this Agreement shall be construed to make them such
partners or joint venturers or impose any liability as such on either of them.

     16. TERM OF AGREEMENT. This Agreement shall continue in force for a period of one
(1) year from the Effective Date, subject to an unlimited number of successive one-year renewals
upon mutual consent of the parties. It is the duty of the Board to evaluate the performance of the
Advisor annually before renewing the Agreement, and each such renewal shall be for a term of no
more than one year.

     17. TERMINATION BY THE PARTIES. This Agreement may be terminated (i) immediately by
the Company or the Operating Partnership for Cause or upon the bankruptcy of the Advisor or upon a
material breach of this Agreement by the Advisor; provided, that such material breach is not
capable of being cured or has not been cured within thirty (30) days after the giving of notice
thereof by the Company or the Operating Partnership to the Advisor; (ii) upon sixty (60) days
written notice without Cause by a majority of the Independent Trustee of the Board; or (iii) upon
sixty (60) days written notice by the Advisor. The provisions of Sections 19 through 23 survive
termination of this Agreement.

     18. ASSIGNMENT TO AN AFFILIATE. This Agreement may be assigned by the Advisor to an
Affiliate with the approval of the Board, in accordance with any requirements of the Governing
Instruments. The Advisor may assign any rights to receive fees or other payments under this
Agreement to any Person without obtaining the approval of the Board. This Agreement shall not be
assigned by the Company or the Operating Partnership without the consent of the Advisor, except in
the case of an assignment by the Company or the Operating Partnership to a corporation, limited
partnership or other organization which is a successor to all of the assets, rights and obligations
of the Company or the Operating Partnership, in which case such successor organization shall be
bound hereunder and by the terms of said assignment in the same manner as the Company and the
Operating Partnership are bound by this Agreement.

     19. PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

     (a) After the Termination Date, the Advisor shall not be entitled to compensation for
further services hereunder except it shall be entitled to receive from the Company or the
Operating Partnership within thirty (30) days after the Termination Date all unpaid
reimbursements of Expenses, subject to the 2%/25% Guidelines to the extent applicable, and
all Management Fees earned but unpaid prior to termination of this Agreement.

     (b) The Advisor shall promptly upon termination:

     (i) pay over to the Company and the Operating Partnership all money collected and
held for the account of the Company and the Operating Partnership pursuant to this
Agreement, after deducting any accrued compensation and reimbursement for its Expenses
to which it is then entitled under Section 19(a);

     (ii) deliver to the Board a full accounting, including a statement showing all
payments collected by it and a statement of all money held by it, covering the period
following the date of the last accounting furnished to the Board;

     (iii) deliver to the Board all assets, including all Investments, and documents
of the Company and the Operating Partnership then in the custody of the Advisor; and

     (iv) cooperate with the Company and the Operating Partnership to provide an
orderly management transition.

     20. INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP. To the extent
permitted by their governing documents, the Company and the Operating Partnership shall indemnify
and hold harmless the Advisor and its Affiliates, including their respective officers, directors,
partners and employees (the “Indemnitees,” and each an “Indemnitee”), from all liability, claims,
damages or losses arising in the performance of their duties hereunder, and related expenses,
including reasonable hourly attorneys’ fees, to the extent such liability, claims, damages or
losses and related expenses are not fully reimbursed by insurance, and to the extent that such
indemnification would not be inconsistent with the laws of the State of North Dakota or the
Governing Instruments.

-10-

 

     21. INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold harmless the
Company and the Operating Partnership from contract or other liability, claims, damages, taxes or
losses and related expenses, including reasonable hourly attorneys’ fees, to the extent that such
liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by
insurance and are incurred by reason of the Advisor’s bad faith, fraud, willful misfeasance, gross
negligence or reckless disregard of its duties; provided, however, that the Advisor shall not be
held responsible for any action of the Board for which the Board declined to follow any advice or
recommendation given by the Advisor to the Board prior to taking such action.

     22. NON-SOLICITATION. During the period commencing on the Effective Date and ending
one year following the Termination Date, the Company and the Operating Partnership shall not,
without the Advisor’s prior written consent, directly or indirectly, (i) solicit or encourage any
person to leave the employment or other service of the Advisor or its Affiliates, or (ii) hire, on
behalf of the Company or the Operating Partnership, any person who has left the employ of the
Advisor or its Affiliates within the one year period following the termination of that person’s
employment. During this same period, the Company and the Operating Partnership will not, whether
for their own account or for the account of any other Person, intentionally interfere with the
relationship of the Advisor or its Affiliates with, or endeavor to entice away from the Advisor or
its Affiliates, any person who during the term of the Agreement is, or during the preceding
one-year period, was a tenant, co-investor, co-developer, joint venturer or other customer of the
Advisor or its Affiliates.

     23. CONFIDENTIALITY. The Advisor shall keep confidential any nonpublic information
obtained in connection with the services rendered under this Agreement and shall not disclose any
such information (or use the same except in furtherance of its duties under this Agreement), except
(i) with the prior written consent of the Board; (ii) to legal counsel, accountants and other
professional advisors; (iii) to appraisers, financing sources and others in the ordinary course of
the Company’s or Operating Partnership’s business; (iv) to government officials having jurisdiction
over the Company, Operating Partnership or the Investments; (v) in connection with any governmental
or regulatory filings of the Company or Operating Partnership or disclosure or presentations to the
Company’s or Operating Partnership’s investors, Shareholders or Partners; or (vi) as required by
law or legal process . The foregoing shall not apply to information which has previously become
publicly available through the actions of a Person other than the Advisor not resulting from
Advisor’s violation of this section. This section shall survive termination of this Agreement for a
period of two years.

     24. NOTICES. Any notice, report or other communication required or permitted to be
given hereunder shall be in writing unless some other method of giving such notice, report or other
communication is required by the Governing Instruments, the Operating Partnership Agreement or
accepted by the party to whom it is given, and shall be given either by being delivered by hand, by
courier or overnight carrier, by registered or certified mail to the addresses set forth below or
by fax or similar method with confirmation of receipt:

	 	 	 

	To the Company, Operating Partnership or the Board:

	 	INREIT Real Estate Investment Trust
	 

	 	216 South Broadway, Suite 202
	 

	 	Minot, ND 58701
	 

	 	Fax: (701) 837-9444
	 

	 	Attention: Chief Financial Officer
	 
	 	 
	To the Advisor:

	 	INREIT Management, LLC
	 

	 	216 South Broadway, Suite 202
	 

	 	Minot, ND 58701
	 

	 	Fax: (701) 837-9444
	 

	 	Attention: President

     Any party may at any time give notice in writing to the other parties of a change in its
address or fax number for the purposes of this Section 24.

     25. MODIFICATION. This Agreement shall not be changed, modified, terminated or
discharged, in whole or in part, except by an instrument in writing signed by all the parties
hereto, or their respective successors or assignees.

     26. SEVERABILITY. The provisions of this Agreement are independent of and severable
from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue
of the fact that for any reason any other or others of them may be invalid or unenforceable in
whole or in part.

     27. CONSTRUCTION. The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of the State of North Dakota without regard to the
conflicts-of-law principles that would require the application of any other law.

     28. ENTIRE AGREEMENT. This Agreement contains the entire agreement and understanding
among the parties hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter hereof. The express terms
hereof control and supersede any course of performance or usage of the trade inconsistent with any
of the terms hereof.

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     29. WAIVERS. Neither the failure nor any delay on the part of a party to exercise
any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any other right, remedy, power or privilege; nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver
shall be effective unless it is in writing and is signed by the party asserted to have granted such
waiver.

     30. PRONOUNS AND PLURALS. Whenever the context may require, any pronouns used in
this Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns, pronouns and verbs shall include the plural and vice versa.

     31. HEADINGS. The headings of Sections and Subsections contained in this Agreement
are for convenience only, and they neither form a part of this Agreement nor are they to be used in
the construction or interpretation hereof.

     32. EXECUTION IN COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of all of the parties reflected hereon as the signatories.

     33. FAX/ELECTRONIC SIGNATURES. Any signature page for this Agreement, amendment,
waiver or any other document or agreement requiring a signature under this Agreement which is
delivered by fax, electronic mail, pdf or by a similar means shall be binding to the same extent as
an original signature page.

     34. INITIAL INVESTMENT. The parties hereto hereby confirm that the Advisor or one of
its Affiliates made a capital contribution of $200,000 in cash to the Company in exchange for
Shares at formation of the Company (“Initial Investment”). During the term of this Agreement, the
Advisor or one of its Affiliates shall at all times maintain such Initial Investment.

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

	 	 	 	 	 
	COMPANY:

INREIT REAL ESTATE INVESTMENT TRUST

 	 	 
	By:  	/s/ Kenneth P. Regan
 	 	 
	 	Name:  	Kenneth P. Regan 	 	 
	 	Title:  	Chief Executive Officer 	 	 
	 
	OPERATING PARTNERSHIP:

INREIT PROPERTIES, LLLP

 	 	 
	BY:

 	INREIT REAL ESTATE INVESTMENT TRUST, AS GENERAL PARTNER

 	 	 
	By:  	/s/ Kenneth P. Regan
 	 	 
	 	Name:  	Kenneth P. Regan 	 	 
	 	Title:  	Chief Executive Officer 	 	 
	 
	ADVISOR:

INREIT MANAGEMENT, LLC

 	 	 
	By:  	/s/ Bradley J. Swenson
 	 	 
	 	Name:  	Bradley J. Swenson 	 	 
	 	Title:  	President 	 	 
	 

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