Document:

Exhibit 10.9

   

  

  TAX PROTECTION AGREEMENT

   

  THIS TAX PROTECTION AGREEMENT (the “Agreement”) is entered into as of January 26, 2021 to be effective as of the effective time of the
      CROP Operating Partnership Merger (as defined below), by and among Cottonwood Residential O.P., LP, a Delaware limited partnership (the “CROP Operating Partnership”), High Traverse Holdings, LLC, a Delaware limited liability company (“High
    Traverse”), and each Protected Partner (as defined below) that is or becomes a beneficiary of this Agreement.

   

  R E C I T A L S :

   

  A.       Pursuant to that certain Agreement and Plan of Merger dated January 26, 2021, Cottonwood Communities, Inc., a Maryland corporation (“CCI”), Cottonwood Communities GP
    Subsidiary, LLC, a Maryland limited liability company and a wholly owned subsidiary of CCI, Cottonwood Communities O.P., LP, a Delaware limited partnership and a subsidiary of CCI (“CCOP”), Cottonwood Residential II, Inc., a Maryland corporation, and
    the CROP Operating Partnership (the “Merger Agreement”), CCOP will be merged with and into the CROP Operating Partnership (the “CROP Operating Partnership Merger”), and the limited partnership agreement of the CROP Operating Partnership will be amended
    and restated in connection such merger.

   

  B. The parties to the Merger Agreement intend that, for United States federal income tax purposes (and, where applicable, state and local income tax purposes), the CROP
    Operating Partnership Merger shall qualify as and constitute an “assets-over” form of merger governed by Treasury Regulations Section 1.708-1(c)(3)(i) pursuant to which CCOP shall be treated as transferring all of its assets and liabilities to the CROP
    Operating Partnership in exchange for units representing limited partnership interests in the CROP Operating Partnership followed by the distribution of such units to CCI and the holders of limited partnership interests in CCOP in a complete
    liquidation of CCOP, the deemed exchange and distribution being respectively described in Sections 721 and 731 of the Internal Revenue Code of 1986, as amended (the “Code”). 

   

  C. Pursuant to the CROP Operating Partnership Merger, the CROP Operating Partnership shall adjust the capital accounts of its partners pursuant to Treasury Regulations Section
    1.704-1(b)(2)(iv)(f) to reflect the fair market value of the property of the CROP Operating Partnership (each property, a “Protected Property”, and collectively, the “Protected Properties”) as of the closing date of the CROP Operating Partnership
    Merger (the “Closing Date”). 

   

  D.       High Traverse and the CROP Operating Partnership desire to enter into this Agreement to, among other things, set forth certain terms and conditions upon which the
    CROP Operating Partnership agrees to hold and dispose of the Protected Properties.

   

  
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  A G R E E M E N T :

   

  Section 1.               

    Limitation on Transfer of the Protected Properties. Notwithstanding anything to the contrary set forth in the amended and restated limited partnership agreement of the CROP Operating Partnership, dated as of the Closing Date, as amended
    from time to time (the “CROP Operating Partnership Agreement”):

   

  (a)            General Limitation. Except as set forth in
    Section 1(b) below and subject to Section 3, during the Tax Protection Period (as defined below) the CROP Operating Partnership will indemnify each Protected Partner from and against certain tax consequences resulting from (i) a sale, transfer,
    exchange, distribution, or any other transaction that, for U.S. federal income tax purposes, is treated as a sale, transfer, exchange, distribution, or disposition, whether voluntary or involuntary (collectively, a “Transfer”), of all or any portion of
    the Protected Properties or any interest therein or (ii) any Extraordinary Transaction (as defined below) that would result in the recognition of taxable income or gain to a Protected Partner.

   

  (b)            Permitted Transfer. Notwithstanding Section
    1(a), the CROP Operating Partnership may cause or permit a Transfer of all or any portion of the Protected Properties (and the CROP Operating Partnership will not be subject to any Tax Payments with respect to any such Transfer) if such Transfer
    constitutes (i) a like-kind exchange of all or any portion of the Protected Properties pursuant to Code Section 1031, (ii) an involuntary conversion of all or any portion of the Protected Properties pursuant to Code Section 1033 for which a timely
    election under Code Section 1033(a)(2)(A) is made, or (iii) any other transaction with respect to all or any portion of the Protected Properties that constitutes a non-recognition transaction pursuant to the Code (including a contribution of the
    Property to a lower-tier entity that is classified as a partnership for U.S. federal income tax purposes pursuant to Code Section 721(a)), but only if such a Transfer described in any one of the foregoing clauses (i), (ii) and (iii) does not result in
    the recognition of any taxable gain to a Protected Partner (unless indemnified for) on account of or attributable to the Built-in Gain (as defined below) with respect to the Protected Properties. For purposes of this Agreement, the terms “Protected
    Property” and “Protected Properties” include any and all replacement property received in exchange for all or any portion of the Protected Properties pursuant to (1) Code Section 1031, (2) Code Section 1033, (3) any other Code provision that provides
    for the non-recognition of income or gain or (4) any transaction pursuant to which the tax basis of such property is determined in whole or in part by reference to the tax basis of all or any portion of the Protected Properties.

   

  (c)            Extraordinary Transaction. The term
    “Extraordinary Transaction” shall mean a merger, consolidation or other combination of the CROP Operating Partnership with or into any other entity, a transfer of all or substantially all of the assets of the CROP Operating Partnership, any
    reclassification, recapitalization or change of the outstanding equity interests of the CROP Operating Partnership, a conversion of the CROP Operating Partnership into another form of entity, or any other strategic transaction undertaken by the CROP
    Operating Partnership pursuant to which the limited partnership interests of High Traverse in the CROP Operating Partnership that are held on the Closing Date (the “High Traverse Units”) are required to be exchanged for cash or equity in any other
    entity. Notwithstanding the foregoing, an Extraordinary Transaction shall not include (and the CROP Operating Partnership will not be subject to any Tax Payments with respect to) any transaction to the extent (and proportion) that a Protected Partner
    is offered (whether or not such offer is accepted) consideration as part of such transaction that would not result in the recognition of Built-In Gain (if the consideration were accepted by such Protected Partner). For the avoidance of doubt, the
    Protected Partners and the CROP Operating Partnership will each have the right to engage in an In-Kind Redemption Transaction prior to any Extraordinary Transaction.

   

  
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  (d)            Built-in Gain. The term “Built-in Gain” shall mean, with respect to each Protected Partner and the Protected Properties at any time, the “built-in gain” (within the meaning of Code Section 704(c) and the
      Treasury Regulations promulgated thereunder) that is allocable to such Protected Partner pursuant to Code Section 704(c) with respect to the Protected Properties (including, for the avoidance of doubt,
      any “reverse Section 704(c) gain” allocated to High Traverse as of the Closing Date that is allocable to such Protected Partner). The initial Built-In Gain allocable to High Traverse with respect
    to each Protected Property is set forth on Exhibit A hereto. For purposes of calculating the amount of Built-In Gain allocated to a Protected Partner under Code Section 704(c) with respect to a particular
    Protected Property, any “reverse Section 704(c) gain” allocated to a Protected Partner pursuant to Treasury Regulations Section 1.704-3(a)(6) following the Closing Date shall not be taken into account. For the avoidance of doubt and notwithstanding the foregoing, the parties acknowledge that any Tax Liability will be calculated with reference to the Built-In Gain for a Protected Partner and the Protected Properties immediately prior to the indemnifiable event (to the extent recognized as a result of the indemnifiable event) and the initial Built-In Gain for the Protected Properties will be reduced
      over time to the extent required under Treasury Regulations Section 1.704-3.

   

  (e)            Tax Protection Period. The restrictions set
    forth in Section 1(a) shall automatically terminate upon the expiration of the Tax Protection Period. For purposes of this Agreement, the “Tax Protection Period” shall commence on the Closing Date and expire one day after the tenth (10th) anniversary of the Closing Date, provided, however, that the Tax Protection Period shall expire prior to the tenth (10th) anniversary of the Closing Date if (1) a like-kind exchange of all or any portion of the Protected Properties pursuant to Section 1031 is not available under applicable law or (2) an In-Kind Redemption Transaction is
    not available under applicable law. As used herein, the term “In-Kind Redemption Transaction” means an in-kind redemption of each of the Protected Partner’s entire interest in the CROP Operating Partnership (the “Protected Partner Interests”) in
    exchange for one or more of the assets of the CROP Operating Partnership that qualifies as a tax-deferred transaction pursuant to Code Section 731 and is not taxable to the Protected Partners or the CROP Operating Partnership (or any of its other
    direct or indirect partners) under Code Sections 707, 737 or otherwise.

   

  (f)             Subsidiaries and Successors. In furtherance of
    the provisions of this Agreement, (i) any entity that is managed and controlled by the CROP Operating Partnership, (ii) any and all successors to the CROP Operating Partnership that acquire(s) and/or hold(s) an interest in all or any portion of the
    Protected Properties, and (iii) any and all assigns of the foregoing entities, shall be bound by all of the limitations and restrictions to which the CROP Operating Partnership is subject hereunder as if such entity were originally a signatory to this
    Agreement in lieu of the CROP Operating Partnership.

   

  
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  (g)            Protected Partner. For purposes of this
    Agreement, the term “Protected Partner” shall mean High Traverse and each Permitted Transferee. The term “Permitted Transferee” shall mean any person who holds High Traverse Units and who acquired such High Traverse Units from High Traverse or another
    Permitted Transferee in a Permitted Disposition, in which such person’s adjusted basis in such High Traverse Units, as determined for U.S. federal income tax purposes, is determined, in whole or in part, by reference to the adjusted basis of High
    Traverse (or such other Permitted Transferee) in such High Traverse Units and who has notified the CROP Operating Partnership of its status as a Permitted Transferee, provided all documentation reasonably requested by the CROP Operating Partnership to
    verify such status, and become a signatory to, and agreed to the terms and conditions of, this Agreement; provided that, with respect to a Permitted Transferee that is a partnership, disregarded entity, grantor trust or S corporation for U.S. federal
    income tax purposes (a “Pass Through Entity”), and solely for purposes of computing the amount to be paid under Section 3(a) with respect to such Permitted Transferee and without duplication of any amount otherwise payable to such Permitted Transferee
    under Section 3(a), a Permitted Transferee shall mean any person who (x) holds an interest in such Permitted Transferee, either directly or through one or more Pass Through Entities, and (y) is required to include all or a portion of the income of such
    Permitted Transferee in its own gross income. The term “Permitted Disposition” shall mean a sale, exchange or other disposition of High Traverse Units in accordance with and permitted under the CROP Operating Partnership Agreement (i) by a Protected
    Partner: (a) to such Protected Partner’s children, spouse or issue; (b) to a trust for such person or such Protected Partner’s children (including adopted children), spouse or issue; (c) in the case that such Protected Partner is a trust, to its
    beneficiaries, or any of them, whether current or remainder beneficiaries, or to any successor trust or trusts for the benefit of the same beneficiaries; (d) to a revocable inter vivos trust of which such Protected Partner is a trustee; (e) in the case
    of that such Protected Partner is a partnership or limited liability company, to its partners or members; and/or (f) in the case such Protected Partner is a corporation, to its shareholders, and (ii) by a party described in clauses (a), (b), (c), (d),
    (e), or (f) to a partnership, limited liability company or corporation of which one or more of the partners, members or shareholders, as applicable, are parties described in clauses (a), (b), (c), (d), (e), or (f). Each Protected Partner agrees as a
    condition to becoming a beneficiary to this Agreement, the CROP Operating Partnership may require a Protected Partner to be represented by a representative, and agrees that such representative alone will represent and act on behalf of such Protected
    Partner and any successor in interest to the High Traverse Units received by such Protected Partner for the purpose of receiving any notice or giving any notice, consent, approval or waiver required or contemplated in this Agreement, and each agrees
    that the CROP Operating Partnership shall be fully entitled to rely conclusively on any such notice, consent, approval, waiver or other determination by the applicable representative as an action by the appointed and authorized representative of the
    applicable Protected Partners. If a representative dies, resigns as representative or otherwise ceases to serve as representative, the CROP Operating Partnership shall be notified in writing, and the holders of a majority of the High Traverse Units
    issued to the applicable Protected Partners that are then issued and outstanding shall have the power to designate an individual to serve as the replacement representative for the Protected Partners represented by such representative, such replacement
    shall be subject to the approval of the CROP Operating Partnership (such approval not to be unreasonably withheld, conditioned or delayed).

   

  Section 2.               

    Nonrecourse Indebtedness; Guarantee of Liabilities.

   

  (a)            With respect to any Nonrecourse Indebtedness secured by
    a Protected Property or to which a Protected Property is otherwise subject for purposes of Treasury Regulations Section 1.752-3(a) (and which is not secured by any other property and to which no other property is subject for purposes of Treasury
    Regulations Section 1.752-3(a)), to the extent consistent with applicable law, the Partnership shall first allocate any portion of such Nonrecourse Indebtedness that is an “excess nonrecourse liability” (within the meaning of Treasury Regulations
    Section 1.752-3(a)(3)) to a Protected Partner up to the aggregate amount of Built-In Gain with respect to such Protected Property as of the date of determination that is allocable to such Protected Partner with respect to such Protected Property, to
    the extent that such Built-In Gain exceeds the gain described in Treasury Regulations Section 1.752-3(a)(2) with respect to such Protected Property as of the date of determination. “Nonrecourse Indebtedness” means with respect to any Protected
    Property, any indebtedness that is a “nonrecourse liability” of the Partnership within the meaning of Treasury Regulations Section 1.752-1(a)(2) and to which the Protected Property is subject for purposes of Treasury Regulations Section 1.752-3.

   

  
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  (b)            The CROP Operating Partnership agrees that
    it will permit the Protected Partners to guarantee up to fifty million dollars ($50,000,000.00), in the aggregate (the “Maximum Guarantee Amount”), of the CROP Operating Partnership’s liabilities, and the
    CROP Operating Partnership will use commercially reasonable efforts to maintain a sufficient amount of outstanding liabilities for this purpose.

   

  (c)            If a
    Protected Partner notifies the CROP Operating Partnership that it desires to enter into a guarantee of the CROP Operating Partnership’s liabilities pursuant to Section 2(b), the CROP Operating Partnership will permit such Protected Partner to enter into such guarantee of indebtedness of the CROP Operating Partnership (including subsidiary debt that is allocated to the CROP Operating Partnership under Code Section 752)
    (“CROP Operating Partnership Liabilities”) subject to consent by the CROP Operating Partnership (such consent not to be unreasonably withheld), such that the total liabilities guaranteed by the Protected
    Partners under this Section 2, in the aggregate, does not exceed the Maximum Guarantee Amount.

   

  (d)            It is expressly understood and agreed that
    the CROP Operating Partnership and its subsidiaries may from time to time issue additional interests in exchange for other properties in tax-deferred transactions. In such event, the new holders of additional interests may similarly require an amount
    of liabilities to guarantee. Notwithstanding anything to the contrary in this Section 2, the CROP Operating Partnership shall only be obligated to work together with each Protected Partner to permit the
    Contributor to guarantee CROP Operating Partnership Liabilities for only so much of such indebtedness as is not already subject to guarantees.

   

  (e)            The CROP Operating Partnership may, at any
    time, repay or refinance all or any portion of a CROP Operating Partnership Liability that is guaranteed by the Contributor, provided that the CROP Operating Partnership provides the Protected Partners the
    opportunity to guarantee other CROP Operating Partnership Liabilities pursuant to this Section 2.

   

  (f)             The CROP Operating Partnership’s
    obligations under this Section 2 shall automatically terminate one day after the tenth (10th) anniversary of the Closing Date.

   

  
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  Section 3.                Payment of Tax Liability.

   

  (a)            Tax Liability Payment Obligation.
    In the event that the CROP Operating Partnership is required to indemnify a Protected Partner as set forth in Section 1 and/or violates or breaches its obligations as set forth in Section 2 (the “Tax-Related Covenants”), the sole right of each
    Protected Partner shall be to receive from the CROP Operating Partnership as damages a payment (the “Tax Payment”) in an amount equal to such Protected Partner’s Tax Liability. The term “Tax Liability” with respect to a Protected Partner means the sum
    of (i) the product of (A)(I) the amount of gain recognized by such Protected Partner solely as a result of such indemnifiable event on account of or attributable to the remaining Built-in Gain allocated to
    or recognized by such Protected Partner (taking into account any adjustments under Code Section 743 or 734 to which such Protected Partner is entitled or that would be available if the CROP Operating Partnership, such Protected Partner or any direct or
    indirect entity classified as a partnership for U.S. federal income tax purposes had made an election under Code Section 754), (II) with respect to gain resulting from a disposition of the High Traverse Units in an Extraordinary Transaction as a result
    of an indemnifiable event as set forth in Section 1(a), an amount equal to the lesser of (x) the aggregate Built-In Gain for such Protected Partner with respect to all of the Protected Properties (taking into account any adjustments under Code Section
    743 or 734 to which such Protected Partner is entitled or that would be available if the CROP Operating Partnership, such Protected Partner or any direct or indirect entity classified as a partnership for U.S. federal income tax purposes had made an
    election under Code Section 754) and (y) the amount of gain recognized by such Protected Partner with respect to the High Traverse Units from such Extraordinary Transaction (taking into account any adjustments under Code Section 743 or 734 to which
    such Protected Partner is entitled or that would be available if the CROP Operating Partnership, such Protected Partner or any direct or indirect entity classified as a partnership for U.S. federal income tax purposes had made an election under Code
    Section 754), provided, however, that if Built-In Gain has previously been taken into account under clause (i) of this definition or in a prior Extraordinary Transaction, or if such Extraordinary Transaction also results in an
    allocation of Built-In Gain to such Protected Partner described in clause (i), the amount of Built-In Gain taken into account for purposes of subclause (x) of this clause (ii) with respect to such Extraordinary Transaction shall be reduced by the
    amount taken into account under clause (i) of this definition prior to or as a result of the Extraordinary Transaction or as a result of any prior Extraordinary Transaction (and this proviso shall be interpreted and applied so as to avoid double
    counting of Built-In Gain when calculating any Tax Liability resulting from an Extraordinary Transaction) and (III) with respect to a breach by the CROP Operating Partnership of its obligations set forth in Section 2, the amount of gain realized by
    such Protected Partner by reason of the application of Code Sections 752 and 731 solely as a result of such breach, multiplied by (B) the Effective Tax Rate (defined below), plus (ii) an amount equal to the aggregate U.S. federal, state, and local
    income taxes payable by such Protected Partner as a result of the receipt of any payment required under the preceding clause (i) and this clause (ii) (i.e., providing the Protected Partners with a “gross-up on the gross-up”), calculated by applying the
    Effective Tax Rate that applies with respect to any such additional income.

   

  
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  (b)            Effective Tax Rate Defined. As used
    herein, the term “Effective Tax Rate” means the highest combined U.S. federal and state income tax rate (including applicable Medicare taxes) applicable to an individual resident in the city and state in which the Protected Partner is resident for
    state and local income tax purposes, taking into account, as applicable, the character and type of the income or gain recognized in the hands of a Protected Partner for the taxable year in which the transaction giving rise to such taxes occurred, the
    varying tax rates applicable to different categories of taxable income and gain and to different taxable years in which taxable income or gain is recognized, and assuming state taxes are deductible to an individual taxpayer for U.S. federal income tax
    purposes to the extent permitted under Code Section 164 for such taxable years (determined without regard to any limitations imposed on a Protected Partner (or its direct or indirect partners or members) from other
      sources), provided, however, that in the case of a Protected Partner that is a C corporation for U.S. federal income tax purposes, the Effective Tax Rate shall be based on the combined U.S. federal, state and local corporate income tax rate in
    respect of the income or gain that gave rise to such payment, taking into account any of the assumptions described above as are applicable to such entity.

   

  (c)            Tax Liability Payment. In the event
    that there has been an indemnifiable event or a breach by the CROP Operating Partnership of any of its obligations under this Agreement for which a Tax Payment is required under this Section 3, the CROP
    Operating Partnership (at its own expense) shall provide to the applicable Protected Partner a notice of the indemnifiable event or breach as soon as reasonably practicable thereafter. As soon as
    reasonably practicable after receiving notice described in the preceding sentence, the CROP Operating Partnership shall (i) provide such Protected Partner with a detailed calculation of the amount due under this Section 3 with respect to such indemnifiable event or breach, and (ii) provide such Protected Partner with such evidence or verification as such Protected Partner may reasonably require to confirm the calculation of such amount. Each
    Protected Partner agrees to cooperate with the CROP Operating Partnership and to provide any information reasonably requested by the CROP Operating Partnership in order to assist the CROP Operating Partnership in making the calculations required under
    this Section 3 with respect to each indemnifiable event or breach. Once the applicable Protected Partner and the CROP Operating Partnership agree on the amount of the Tax Payment (or, once the amount of
    the Tax Payment has been finalized in accordance with Section 4(b), if applicable), the CROP Operating Partnership shall promptly pay the Tax Payment to such Protected Partner within thirty (30) days.

   

  (d)            Tax Information. Each Protected
    Partner shall promptly provide the CROP Operating Partnership with any information reasonably requested by the CROP Operating Partnership, including any information relating to Transfers of any direct or indirect interests in such Protected Partner
    (and any adjustments under Code Sections 734 or 743 to which such Protected Partner is entitled or that would be available if the CROP Operating Partnership, such Protected Partner or any direct or indirect entity classified as a partnership for U.S.
    federal income tax purposes had made an election under Code Section 754). In order to ensure that the CROP Operating Partnership is able to obtain the information required to be provided pursuant to this Section 3(d), no Protected Partner will permit
    any of its interests to be transferred to any entity without the consent of the CROP Operating Partnership.

   

  (e)            Limitations.

   

  (i)          For the avoidance of doubt, the CROP
    Operating Partnership shall not be liable to any Protected Partner for any income or gain (A) allocated to a Protected Partner with respect to the Protected Partner Interests that is not the result of an indemnifiable

      event or breach by the CROP Operating Partnership of its obligations or agreements under this Agreement or (B) resulting from distributions by the CROP Operating Partnership made with respect to the class of limited partnership units in the
    CROP Operating Partnership that includes the Protected Partner Interests that are made to all holders of units of such class.

   

  
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  (ii)         No officer, director, limited partner or
    employee of the CROP Operating Partnership or any of its affiliates (other than the general partner of the CROP Operating Partnership) shall have any liability for any indemnifiable event or breach of the
    obligations and agreements of the CROP Operating Partnership under this Agreement.

   

  (iii)        No Protected Partner shall be entitled to
    indemnification from the CROP Operating Partnership for any tax liabilities incurred as result of any of the transactions contemplated by the Merger Agreement.

   

  (iv)        To the extent (i) an imputed underpayment under Code
    Section 6225 (or any corresponding or similar provision of state or local law) or (ii) any other amount as a result of the application of the provisions of Code Sections 6221-6241 (or any corresponding or similar provision of state or local law) is
    assessed against the CROP Operating Partnership (or any entity treated as a partnership for U.S. federal income tax purposes in which the CROP Operating Partnership holds (or has held) a direct or indirect interest to the extent that the CROP Operating
    Partnership bears the economic burden of such amounts, whether by law or agreement) and such assessment implicates the terms of, or payments that have been made or that could be required to be made pursuant to, this Agreement, the parties hereto shall
    reasonably cooperate as necessary to preserve the economic arrangement intended by the terms of this Agreement to the maximum extent possible, and the parties hereto acknowledge and agree that the preservation of the intended economic arrangement
    includes, without limitation, preventing any party from receiving a windfall or from having to pay duplicate damages.

   

  Section 4.                Rights and Remedies.

   

  (a)            Exclusive Rights and Remedies. Notwithstanding any provision of this Agreement, each Protected Partner agrees that the sole and exclusive
    rights and remedies to which it may be entitled at law or in equity for an indemnifiable event or breach or violation of the Tax-Related Covenants by the CROP Operating Partnership shall be a claim for a
    Tax Payment from the CROP Operating Partnership, computed as set forth in Section 3 above, and no Protected Partner shall be entitled to pursue a claim for specific performance with respect to any indemnifiable event or the Tax-Related Covenants.

   

  
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  (b)            Failure to Agree. If the CROP Operating Partnership notifies a Protected Partner of a claim (each, a “Tax Claim Notice”) that the CROP
    Operating Partnership has engaged in an indemnifiable event or breached or violated one or more of the Tax-Related Covenants, the CROP Operating Partnership and such Protected Partner shall negotiate in
    good faith to resolve any disagreements regarding any such indemnifiable event or breach or violation, including any disagreement regarding the calculation of such Protected Partner’s Tax Liability
    prepared by the CROP Operating Partnership as described in Section 3 above. If any such disagreement cannot be resolved by the CROP Operating Partnership and such Protected Partner within sixty (60) days after receipt by such Protected Partner of the
    calculation of the Tax Liability referred to in Section 3, the independent directors of the general partner of the CROP Operating Partnership and such Protected Partner shall jointly retain a nationally recognized independent public accounting firm (an
    “Accounting Firm”) other than an accounting firm that has performed work or is currently performing or rendered services to the CROP Operating Partnership or such Protected Partner (unless the applicable parties otherwise agree) within two (2) years
    prior to the date of the Tax Claim Notice to act as an arbitrator to resolve as expeditiously as possible all points of any such disagreement (including, without limitation, whether an indemnifiable event or
    breach of the Tax-Related Covenants has occurred and, if so, the amount of the Tax Payment to which such Protected Partner is entitled as a result thereof, determined as set forth in Section 3). All determinations made by the Accounting Firm with
    respect to the amount of the Tax Payment payable to such Protected Partner under Section 3 shall be final, conclusive and binding on the CROP Operating Partnership and such Protected Partner. The fees, costs and expenses of any Accounting Firm incurred
    in connection with any disputes resolved pursuant to this Section 4(b) shall be borne the CROP Operating Partnership, unless the Accounting Firm determines that such Protected Partner did not have a reasonable basis to dispute the CROP Operating
    Partnership’s determination of the amount of the Tax Payment to which such Protected Partner is entitled. For the avoidance of doubt, the fees, costs and expenses incurred with respect to the initial calculation of the Tax Liability referred to in
    Section 3(c) shall be borne by the CROP Operating Partnership.

   

  (c)            Notice of Tax Audits. If any claim,
    demand, assessment (including a notice of proposed assessment) or other assertion is made with respect to taxes against a Protected Partner, which involves a matter covered in this Agreement (a “Tax Claim”), then such Protected Partner shall promptly
    notify the CROP Operating Partnership of such Tax Claim and shall keep the CROP Operating Partnership reasonably informed of the details and status of any such Tax Claim (including providing the CROP Operating Partnership with copies of all material
    written correspondence regarding such matter). No Protected Partner shall submit any correspondence or materials to a taxing authority with respect to a Tax Claim without the CROP Operating Partnership’s prior written consent, which consent shall not
    be unreasonably withheld or delayed. The CROP Operating Partnership shall have the right to participate, at its own expense, in any Tax Claims, and no Protected Partner shall settle or otherwise resolve any such matter without the CROP Operating
    Partnership’s prior written consent, which consent shall not be unreasonably withheld or delayed.

   

  Section 5.                Sale, Redemption or Exchange of Protected Partner Interests. Other than with respect to redemptions contemplated by the Merger Agreement prior to the CROP Operating Partnership Merger, to the extent that a
    Protected Partner sells, redeems or exchanges all or any portion of its Protected Partner Interests, the rights granted to such Protected Partner in this Agreement with respect to such interests shall end at the time of such sale, redemption or
    exchange, except with respect to all rights arising from an indemnifiable event or violation or breach of the Tax-Related Covenants occurring prior to the date of such redemption or exchange. In addition,
    the aggregate remaining Built-In Gain for such Protected Partner with respect to the Protected Properties shall decrease in proportion to the amount of such Protected Partner Interests sold, redeemed or exchanged.

   

  
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  Section 6.                In-Kind Redemption Transaction.

   

  (a)             At any time after the Closing Date
    (including after the expiration of the Tax Protection Period), the Protected Partners or the CROP Operating Partnership will each have the right separately to engage in an In-Kind Redemption Transaction. For the avoidance of doubt, the CROP Operating
    Partnership may only exercise its right to engage in an In-Kind Redemption Transaction with respect to all of the Protected Partners. Each of the Protected Partners will use commercially reasonable efforts to act in concert with respect to any In-Kind
    Redemption Transaction, and the Protected Partners can only exercise their right to engage in an In-Kind Redemption Transaction if all of the Protected Partners participate. Notwithstanding anything in this Agreement to the contrary, the CROP Operating
    Partnership shall have the right to structure an In-Kind Redemption Transaction in a manner that results in taxable income or gain to the Protected Partners or the

    CROP Operating Partnership (or any of its other direct or indirect partners) under Code Sections 707, 737 or otherwise, provided that the CROP Operating Partnership indemnify the Protected Partners for any such taxable income or gain recognized by (or allocated to) the Protected Partners.

   

  (b)            The Protected Partners will have the
    option to select the asset(s) of the CROP Operating Partnership necessary to effectuate such In-Kind Redemption Transaction, provided that such assets shall be limited to stabilized assets (and any non-stabilized development assets may be selected only
    with approval of the CROP Operating Partnership).

   

  (c)            The asset(s) selected for the In-Kind
    Redemption Transaction will be valued in the following manner: (i) the Protected Partners and the CROP Operating Partnership will each obtain an appraisal, (ii) if the appraisals are within 3% of each other, the value will be the average of the two
    appraisals, and (iii) if the appraisals are different by more than 3%, the appraisers engage a third appraiser and the value will be the average of the two closest appraisals (the “Appraised Value”).

   

  (d)            Notwithstanding the above, in the event
    that the CROP Operating Partnership is in the process of selling any property or properties (i.e., that such property or properties are listed for sale pursuant to a listing agreement signed with a reputable broker or the CROP Operating Partnership has
    commenced marketing such property or properties for sale), the CROP Operating Partnership shall request a written consent (such consent not to be unreasonably withheld, conditioned or delayed) from each Protected Partner that the Protected Partners
    shall not be allowed to exercise its right to engage in an In-Kind Redemption Transaction with respect to the property that is anticipated to be sold; provided, however, that a reasonable basis for the Protected Partners to withhold their written
    consent would occur in the event the CROP Operating Partnership receives a bona fide unsolicited written offer that CCI would be willing to transact on (as determined by CCI in its reasonable discretion) to acquire one or more of CCI’s stabilized
    assets (as determined by CCI in its reasonable discretion), in which case, the CROP Operating Partnership will notify the Protected Partners and the Protected Partners shall promptly notify the CROP Operating Partnership of their intent as to whether
    or not they will exercise an In-Kind Redemption Transaction in accordance with the terms hereof with respect to one or more of the such assets, in which case, the price offered in such bona fide unsolicited written offer for the asset or assets shall
    be deemed to be the Appraised Value. In addition, for so long as the Protected Partners and the CCI’s external advisor (the “Advisor”) are under common control, the consent of the Protected Partners will be deemed granted with respect to any stabilized
    assets the Advisor proposes to sell on behalf of CCI to third parties for so long as such assets are marketed for sale to third parties.

   

  
    10 

    
      
 

  

   

  (e)            Upon selection of an asset(s) for the
    In-Kind Redemption Transaction, the CROP Operating Partnership will cooperate in good faith with the Protected Partners to facilitate a refinancing of the asset (and possible contribution of equity capital) to assist in “calibrating” the capital
    structure for the In-Kind Redemption Transaction, provided that (i) the Protected Partners will bear the costs of any such refinancing and (ii) the transactions contemplated by this Section 6(e) can be accomplished without tax risks to the CROP
    Operating Partnership (including under the applicable “disguised sale” rules).

   

  (f)             The CROP Operating Partnership’s
    obligations under this Agreement shall automatically terminate with respect to the Protected Partners upon the consummation of an In-Kind Redemption Transaction.

   

  Section 7.               No Representation With Regard to Tax Treatment. Notwithstanding any provision of this Agreement, the CROP Operating Partnership does not make any representation (and shall have no liability) with respect to the
    tax consequences to High Traverse of the transactions contemplated or referred to herein or in the Merger Agreement.

   

  Section 8.               Expenses. Except as expressly provided herein to the contrary, each party hereto shall pay its own expenses incident to the transactions contemplated hereunder, including all legal and accounting fees and
    disbursements.

   

  Section 9.               Assignment. No Protected Partner shall assign its rights and/or obligations under this Agreement, in whole or in part, whether by operation of law or otherwise, without the prior written consent of the CROP
    Operating Partnership, any such assignment undertaken without such consent shall be null and void. Notwithstanding anything to the contrary, at any time after the Closing Date, the CROP Operating Partnership may assign its rights and/or obligations
    under this Agreement to an affiliate, or any other person or entity in connection with an Extraordinary Transaction (as defined below) subject to any such successor-in-interest assuming all of the liabilities and obligations of the CROP Operating
    Partnership hereunder; provided, however, that no assignment pursuant to the preceding clause shall release the CROP Operating Partnership from its liabilities and obligations hereunder. For purposes of this Agreement, references to the
    High Traverse Units shall include equity interests in an entity treated as a partnership for U.S. federal income tax purposes received by a Protected Partner in exchange for High Traverse Units pursuant to an Extraordinary Transaction with respect to
    which such Protected Partner’s tax basis in such equity interests is determined, in whole or in part, by reference to such Protected Partner’s tax basis in such High Traverse Units. 

   

  Section 10.             Entire Agreement; Amendment. This Agreement, including any schedules and other documents referred to herein or furnished pursuant hereto, together with the Merger Agreement, the CROP Operating Partnership
    Agreement and the exhibits and other documents referred to therein or furnished pursuant thereto, constitute the entire agreement among the parties hereto with respect to the transactions contemplated herein, and supersede all prior oral or written
    agreements, commitments or understandings with respect to the matters provided for herein. No amendment, modification or discharge of this Agreement shall be valid or binding unless set forth in writing and duly executed and delivered by the party
    against whom enforcement of the amendment, modification or discharge is sought.

   

  
    11 

    
      
 

  

   

  Section 11.             Waiver. No delay or failure on the part of any party hereto in exercising any right, power or privilege under this Agreement or under any other documents furnished in connection with or pursuant to this
    Agreement shall impair any such right, power or privilege or be construed as a waiver of any default or any acquiescence therein. No single or partial exercise of any such right, power or privilege shall preclude the further exercise of such right,
    power or privilege, or the exercise of any other right, power or privilege. No waiver shall be valid against any party hereto unless made in writing and signed by the party against whom enforcement of such waiver is sought, and then only to the extent
    expressly specified therein.

   

  Section 12.             Severability. If any part of any provision of this Agreement or any other agreement or document given pursuant to or in connection with this Agreement shall be invalid or unenforceable in any respect, such
    part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of such provision or the remaining provisions of this Agreement.

   

  Section 13.             Governing Law; Jurisdiction and Venue. This Agreement, the rights and obligations of the parties hereto, and any claim or disputes relating thereto, shall be governed by and construed in accordance with the
    laws of the State of Delaware (excluding the choice of law rules thereof).

   

  Section 14.             Notices. All notices, demands, requests or other communications that may be or are required to be given, served or sent by any party to any other party pursuant to this Agreement shall be in writing and
    shall be hand-delivered, sent by overnight courier or mailed by first-class, registered or certified mail, return receipt requested, postage prepaid, or transmitted by facsimile, telegram, telecopy or telex, addressed as follows:

   

  

  	
          (i)          If to High Traverse:

           

          High Traverse Holdings, LLC  

          6340 South 3000 East, Suite 500  

          Salt Lake City, Utah 84121

           

        	 
	  (ii)           If to the CROP Operating Partnership:	 
	 
	
          Cottonwood Residential O.P., LP  

          1245 Brickyard Road Suite 250  

          Salt Lake City, Utah 84106  

        

   

  
    12 

    
      
 

  

   

  	 With a copy to:
	 
	
          Darryl Steinhause  

          DLA Piper LLP (US)  

          4365 Executive Drive Suite 1100  

          San Diego, California 92121  

        

  

   

  Each party may designate by notice in writing a new address to which any notice, demand, request or communication may thereafter be so given, served or sent. Each notice,
    demand, request or communication which shall be hand-delivered, sent, mailed, faxed, telecopied or telexed in the manner described above, or which shall be delivered to a telegraph company, shall be deemed sufficiently given, served, sent, received or
    delivered for all purposes at such time as it is delivered to the addressee (with the return receipt, the delivery receipt, the confirmation receipt (with respect to a facsimile), or (with respect to a telecopy or telex) the answerback being deemed
    conclusive, but not exclusive, evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation.

   

  Section 15.           

    Headings. Section headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction
    or scope of any of the provisions hereof.

   

  Section 16.           

    Execution in Counterparts. To facilitate execution, this Agreement may be executed in as many counterparts as may be required. It shall not be necessary that the signatures of, or on behalf of, each party, or that the signatures of all
    persons required to bind any party, appear on each counterpart; but it shall be sufficient that the signature of, or on behalf of, each party, or that the signatures of the persons required to bind any party, appear on one or more of the counterparts.
    All counterparts shall collectively constitute a single agreement. It shall not be necessary in making proof of this Agreement to produce or account for more than a number of counterparts containing the respective signatures of, or on behalf of, all of
    the parties hereto.

   

  Section 17.           

    Recourse to the CROP Operating Partnership. ANY OBLIGATION OR LIABILITY WHATSOEVER OF THE CROP OPERATING PARTNERSHIP WHICH MAY ARISE AT ANY TIME UNDER THIS AGREEMENT OR ANY OBLIGATION OR LIABILITY WHICH MAY BE INCURRED BY IT PURSUANT TO
    ANY OTHER INSTRUMENT, TRANSACTION OR UNDERTAKING CONTEMPLATED HEREIN SHALL BE SATISFIED, IF AT ALL, OUT OF THE ASSETS OF THE CROP OPERATING PARTNERSHIP ONLY. NO SUCH OBLIGATION OR LIABILITY SHALL BE PERSONALLY BINDING UPON, NOR SHALL RESORT FOR THE
    ENFORCEMENT THEREOF BE HAD TO, THE PROPERTY OR ASSETS OF ANY OF ITS SHAREHOLDERS, BENEFICIARIES, TRUSTEES, PARTNERS, OFFICERS, EMPLOYEES OR AGENTS, REGARDLESS OF WHETHER SUCH OBLIGATION OR LIABILITY IS IN THE NATURE OF CONTRACT, TORT OR OTHERWISE.

   

  
    13 

    
      
 

  

   

  Section 18.           

    References to Internal Revenue Code. All references to any section of the Code shall also refer to any statute that is a successor thereto.

   

  [Signatures Commence on Following Page]

   

  
    14 

    
      
 

  

   

  	 	CROP OPERATING PARTNERSHIP:
	 	 
	 	COTTONWOOD RESIDENTIAL O.P., LP , a Delaware limited partnership
	 	 
	 	 	By: 	COTTONWOOD RESIDENTIAL II, INC., its general partner
	 	
	 	By: 	/s/Daniel Shaeffer
	 	 	Daniel Shaeffer, Chief Executive Officer
	 	 
	 	HIGH TRAVERSE:
	 	 
	 	HIGH TRAVERSE HOLDINGS, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: 	/s/ Gregg Christensen
	 	Name: 	Gregg Christensen
	 	Title:	Chief Legal Officer

   

  
    15 

    
      
 

  

   

  EXHIBIT A

   

  	Protected
            Property	Fair Market Value as of the Closing Date	Adjusted Tax Basis as of the Closing Date	Initial Built-in Gain	Initial Built-in Gain
            Allocable to High TraverseExhibit 10.10

   

  

  REIMBURSEMENT AND COST

  

  SHARING AGREEMENT

   

  THIS AMENDED AND RESTATED REIMBURSEMENT AND COST SHARING AGREEMENT (this “Agreement”),

      dated effective as of May 7, 2021, is by and among Cottonwood Capital Management, Inc., a Delaware corporation (“CCMI”), and Cottonwood Communities Advisors, LLC, a Delaware limited liability company (the “CCA”).

   

  WHEREAS, Cottonwood Communities, Inc., a Maryland corporation (the “REIT”), is
      taxed and operates in a manner that allows it to qualify as a real estate investment trust for U.S. federal income tax purposes;

   

  WHEREAS, substantially all of the REIT’s assets are held by, and its operations are
      conducted through, Cottonwood Residential O.P. LP, a Delaware limited partnership (“CROP”), and its subsidiaries;

   

  WHEREAS, CCMI desires to make available to CCA certain employees of CCMI as set forth on
      Schedule I hereto (collectively, the “Employees”), and CCA desires to utilize the Employees, on the terms set forth herein;

   

  NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the parties hereby agree, as follows:

   

  Article I

      

      USE OF EMPLOYEES

   

  SECTION 1.1.          Use of Employees.

   

  (a)                From time to time at the request
      of CCA, on an as-needed basis, CCMI will make the Employees available to CCA, to the extent they are not otherwise occupied in providing services for the REIT or its subsidiaries.

   

  (b)               For such time as any Employees
      are shared with CCA under this Agreement, (i) such Employees will remain employees of CCMI, and shall not be deemed to be employees of CCA for any purpose, and (ii) CCMI shall be solely responsible for the payment and provision of all wages, bonuses
      and commissions (collectively, “Wages”), employee benefits, including but not limited to pension and welfare benefits, fringe benefits, severance benefits, and workers’ compensation insurance (collectively, “Benefits”), and the
      withholding and payment of applicable payroll taxes relating to its Employees (collectively, “Taxes”).

   

  (c)                In performing work for CCA, the
      Employees may use office space, office supplies, equipment and furniture of CCMI.

   

  (d)               All writings, works of
      authorship, technology, inventions, discoveries, ideas and other work product of any nature whatsoever, that any Employee creates, prepares, produces, authors, edits, amends, conceives or reduces to practice, either individually or jointly with
      others, in performing work for CCA and relating in any way to the business or contemplated business, research or development of CCA, shall be the sole and exclusive property of CCA and its assigns, free from any encumbrance, claim, lien for balance
      due or rights of retention by CCMI. 

   

  
     

    
      

  

  
   

  SECTION 1.2.          Reimbursement and Cost
        Sharing for the Use of Employees. CCA will reimburse CCMI for CCA’s allocable share of all direct and indirect costs related to the Employees, including Wages, Benefits, Taxes, and allocable overhead costs, as further described below, but
      without any mark-up or profit margin to CCMI.

   

  (a)                Direct Costs. CCA shall
      reimburse CCMI for all direct costs incurred by CCMI on behalf of CCA. Such direct costs shall include, but are not limited to, its allocable portion of Wages, Benefits and Taxes of the Employees who perform services for CCA. CCA’s reimbursement for
      services of the Employees shall be based on the proportion of the Wages, Benefits and Taxes corresponding to the amount of time the Employees expended on CCA functions, as determined in accordance with time-sheets or other reasonable documentation
      prepared by the Employees pursuant to instructions of management and agreed to by CCMI and CCA.

   

  (b)               Indirect Costs. CCA shall
      reimburse CCMI an additional amount equal to its allocable portion of indirect (overhead) costs incurred by CCMI. CCMI may determine CCA’s allocable portion of such costs by multiplying the total indirect (overhead) costs of CCMI by the percentage
      obtained by dividing the total staff hours charged to CCA activities by the total staff hours worked by all employees of CCMI or by any other reasonable method determined by CCMI and CCA.

   

  (c)                Timing of Reimbursement.
      Promptly after the end of each calendar quarter, CCMI will make available to CCA a schedule of direct and indirect allocable costs related to its Employees used by CCA during that quarter, if any. CCA shall reimburse CCMI for such costs within 30
      days after the schedule is made available. In the event CCMI or CCA identifies, prior to the filing of the REIT’s Annual Report on Form 10-K with Securities and Exchange Commission for a fiscal year, any errors, omissions or other inaccuracies in the
      costs charged to or reimbursed by CCA during such fiscal year, the LLC and CCA shall work together in good faith to resolve such errors, omissions or other inaccuracies and true-up the costs to be allocated and reimbursed hereunder.

   

  SECTION 1.3.          Limitation on Liability.

   

  (a)                None of CCMI, CROP or the REIT,
      nor any partner, officer, employee or agent of CCMI, CROP or the REIT, shall be under any liability to CCA for any action taken, or for refraining from the taking of any action, by any Employee utilized by CCA.

   

  (b)               CCA agrees to indemnify CCMI,
      CROP and the REIT, and any partner, employee or agent of CCMI, CROP or the REIT, against any and all losses, claims, liabilities, suits, damages, proceedings or expenses (including reasonable attorneys’ fees and expenses) arising from or as a result
      of the use of the Employees by CCA. The indemnity set forth in the preceding sentence shall survive the termination of this Agreement.

   

  SECTION 1.4.          Term; Termination. This Agreement shall continue in full
      force until the earlier of the one-year anniversary of the date hereof or the termination of the Amended and Restated Advisory Agreement among CC Advisors III, LLC and the REIT that is to be entered into immediately following the merger of Cottonwood
      Residential II, Inc. and the REIT. Thereafter, this Agreement may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties. This Agreement may be terminated upon the written agreement of the parties hereto.
      Additionally, upon 60 days’ prior written notice to CCA, CCMI may cease to make available any or all of its Employees.

   

  
    -2-

    
      

  

   

  SECTION 1.5.          Representations and Warranties. CCMI hereby represents and
      warrants to CCA, and CCA hereby represents and warrants to CCMI, that:

   

  (a)                Organization, Power,
        Qualification. It is duly organized, validly existing and in good standing under the laws of Delaware, has the power, legal right and authority to own its properties and to carry on its business as now being and hereafter proposed to be
      conducted and is duly qualified and is in good standing and authorized to do business in each jurisdiction in which the character of its properties or the nature of its business requires such qualification or authorization and the failure to be so
      qualified could, individually or in the aggregate, have a material adverse effect on its business, assets, liabilities, condition (financial or otherwise), results of operations or prospects.

   

  (b)               Authorization, Enforceability.
      It has the power, and has taken all necessary action to authorize it, to execute, deliver and perform this Agreement in accordance with its terms and to consummate the transactions contemplated hereby and thereby. This Agreement has been duly
      executed and delivered by it and is a legal, valid and binding obligation of it, enforceable in accordance with its terms, subject, as to enforcement of remedies, to any applicable bankruptcy, insolvency or other similar law affecting the enforcement
      of creditors’ rights and secured parties generally, and subject to the limitation that the availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be
      brought.

   

  (c)                Non-Contravention. The
      execution, delivery and performance of this Agreement in accordance with its terms and the performance of this Agreement by it do not and will not (i) require any consent or approval of any person, except for consents and approvals that have already
      been obtained, (ii) violate any applicable law, (iii) conflict with, result in a breach of, or constitute a default under its organizational and governing documents, as the same may have been amended or restated, or conflict with, result in a breach
      of or constitute a default under (with or without notice or lapse of time or both) any indenture, agreement or other instrument, to which it is a party or by which it or any of its properties or assets may be bound, which conflict, breach or default
      would have a material adverse effect on its business, assets, liabilities, condition (financial or otherwise), results of operations or prospects or on its ability to perform any of its obligations under this Agreement or (iv) result in or require
      the creation or imposition of any lien upon or with respect to any property now owned or hereafter acquired by it.

   

  (d)               Compliance with Law. It is
      in compliance with all applicable laws, non-compliance with which could, individually or in the aggregate, have a material adverse effect on its business, assets, liabilities, condition (financial or otherwise), results of operations or prospects or
      properties or on its ability to perform any of its obligations under this Agreement.

   

  (e)                Litigation. There is no
      action, suit or proceeding pending or, to its knowledge, threatened against it or any of its properties or assets in any court or before any arbitrator of any kind or before or by any governmental authority (i) asserting the invalidity of this
      Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, (iii) seeking any determination or ruling that, in its reasonable judgment, would materially and adversely affect its performance of its
      obligations under this Agreement or (iv) seeking any determination or ruling that would materially and adversely affect the validity or enforceability of this Agreement; and no default by it has occurred and is continuing with respect to any order of
      any court or arbitrator, or with respect to any order of a governmental authority.

   

  (f)                 Governmental Regulation.
      It is not required to obtain any consent, approval, authorization, permit or license from, or effect any filing or registration with, any governmental authority in connection with the execution, delivery and performance, in accordance with their
      respective terms, of this Agreement.

   

  
    -3-

    
      

  

   

  Article II

      

      MISCELLANEOUS

   

  SECTION 2.1.        Notices. All notices from one party to another party shall be
      sent to such other party’s address by (i) delivery by a reputable courier service or by registered mail (return receipt requested) or (ii) by email transmission (with acknowledgement received) with a copy sent in either manner described in clause
      (i), all charges prepaid. The date of receipt or refusal to accept shall be the effective date of any such notice.

   

  	CCMI:	CCA:
	Cottonwood Capital Management, Inc.	Cottonwood Communities Advisors, LLC
	1245 Brickyard Road Suite 250	1245 Brickyard Road Suite 50
	Salt Lake City, UT 84106	Salt Lake City, UT 84106

   

  SECTION 2.2.          Entire Agreement. This Agreement sets forth the entire
      agreement and understanding among the parties with reference to the transactions contemplated hereby and supersedes any and all other oral or written agreements heretofore made including, without limitation, the Prior Agreement.

   

  SECTION 2.3.         Severability. If any provision of this Agreement or the
      application of any provision hereof to any person or in any circumstances is held invalid, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected unless the provision held invalid
      shall substantially impair the benefits of the remaining portions of this Agreement.

   

  SECTION 2.4.          CONSENT TO JURISDICTION.

   

  (a)                EACH PARTY HERETO HEREBY
        IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF ANY UTAH STATE OR FEDERAL COURT SITTING IN SALT LAKE CITY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF
        ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH UTAH STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE
        OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING. EACH PARTY HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING, OR DELIVERY, OF COPIES OF SUCH PROCESS TO SUCH
        PARTY AT ITS ADDRESS SPECIFIED IN SECTION 2.1. EACH PARTY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

   

  (b)               NOTHING IN THIS SECTION 2.4
        SHALL AFFECT THE RIGHT OF A PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

   

  
    -4-

    
      

  

   

  (c)                Waiver of Jury Trial. The
      parties hereto each waive their respective rights to a trial by jury of any claim or cause of action based upon or arising out of or related to this Agreement, or the transactions contemplated hereby, in any action, proceeding or other litigation of
      any type brought by any of the parties against any other party or parties, whether with respect to contract claims, tort claims, or otherwise. The parties hereto each agree that any such claim or cause of action shall be tried by a court trial
      without a jury. Without limiting the foregoing, the parties further agree that their respective right to a trial by jury is waived by operation of this Section 2.4 as to any action, counterclaim or other proceeding which seeks, in whole or in part,
      to challenge the validity or enforceability of this Agreement or any provision hereof. The waiver shall apply to any subsequent amendments, renewals, supplements or modifications to this Agreement.

   

  SECTION 2.5.          Amendments. This Agreement may be amended from time to time
      by CCMI and CCA in a writing signed by each such party to this Agreement for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or to terminate this Agreement.

   

  SECTION 2.6.         Severability of Provisions. If one or more of the provisions
      of this Agreement shall be held invalid for any reason, such provisions shall be deemed severable from the remaining covenants, agreements and provisions of this Agreement and shall in no way affect the validity or enforceability of such remaining
      provisions, the rights of any parties hereto, or the rights of CCMI or CCA. To the extent permitted by law, the parties hereto hereby waive any provision of law which renders any provision of this Agreement prohibited or unenforceable in any respect.

   

  SECTION 2.7.         Inspection and Audit Rights. CCMI, on reasonable prior
      notice, shall permit any representative of CCA (each a “Representative,” and collectively, the “Representatives”), during its normal business hours to examine all the books of account, records (including computer records), reports and
      other papers of CCMI relating to the Employees, to make copies and extracts therefrom, to cause such books to be audited by independent certified public accountants selected by the Representative, to discuss its affairs, finances and accounts
      relating to the Employees with its officers, employees and independent public accountants (and by this provision CCMI hereby authorizes said accountants to discuss with such representatives such affairs, finances and accounts), all at such reasonable
      times and as often as may be reasonably requested. Any expense incident to the exercise by CCA of any right under this Section 2.7 shall be borne by CCA.

   

  SECTION 2.8.          Binding Effect. All provisions of this Agreement shall be
      binding upon and inure to the benefit of the respective successors and assigns of the parties hereto.

   

  SECTION 2.9.          Captions. Captions to Articles, Sections and subsections
      of, and Schedules and Exhibits to, this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or in any way affect the meaning or construction of any provision of this
      Agreement.

   

  SECTION 2.10.        Legal Holidays. In the
      case where the date on which any action required to be taken, document required to be delivered or payment is required to be made is not a business day, such action, delivery or payment need not be made on such date, but may be made on the next
      succeeding business day.

   

  SECTION 2.11.        No Third-Party Beneficiaries.
      This Agreement is solely for the benefit of CCMI and CCA and no other party.

   

  
    -5-

    
      

  

   

  SECTION 2.12.        Governing Law. THIS
        AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF UTAH, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

   

  SECTION 2.13.        Counterparts. This
      Agreement and any amendment hereof may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

   

  [The remainder of the page is intentionally left blank]

   

  
    -6-

    
      

  

   

  IN WITNESS WHEREOF, CCMI and CCA have caused this Agreement to be duly executed by their
      respective authorized signatories as of the date and year first above written.

   

  

  	 	COTTONWOOD CAPITAL MANAGEMENT, INC., 
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Gregg Christensen
	 	 	Gregg Christensen
	 	 	Chief Legal Officer
	 	 	 
	 	COTTONWOOD COMMUNITIES ADVISORS, LLC, 
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Gregg Christensen
	 	 	Gregg Christensen
	 	 	Chief Legal Officer

  

   

  

  [Signature Page for Reimbursement and Cost Sharing Agreement] 

   

  
     

    
      

  

  
  Schedule I

   

  Gregg Christensen- Chief Legal Officer 

  Susan Hallenberg- Chief Accounting Officer 

  Elky Wong- Assistant Controller 

  Christie Hailes- Corporate Expense Manager 

  Aaron Torriente- VP of Tax 

  Whitney Law- Director of Tax 

  HR personnel to be identified by the parties 

  IT personnel to be identified by the parties

   

    

   
  

   

  I-1

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