Document:

Limited Liability Company Agreement

 Exhibit 10.1 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 

GGT CRESCENT ALEXANDER NC VENTURE, LLC 

 LIMITED LIABILITY 

COMPANY AGREEMENT OF 
 GGT CRESCENT ALEXANDER NC VENTURE, LLC 
 A DELAWARE LIMITED LIABILITY
COMPANY 
 TABLE OF CONTENTS 
  

									
	 	 	 	  	Page	 
	 ARTICLE 1. DEFINITIONS
	  	2	 
		 	1.1	  	Definitions	  	 	2	  
	 	 	1.2	  	Other Defined Terms	  	9	 
	 	 	1.3	  	Exhibits	  	9	 
		
	 ARTICLE 2. THE COMPANY
	  	9	 
	 	 	2.1	  	Organization	  	9	 
	 	 	2.2	  	Name of Company	  	9	 
	 	 	2.3	  	Purpose of Company	  	9	 
	 	 	2.4	  	Principal and Registered Office	  	9	 
	 	 	2.5	  	Further Assurances	  	10	 
	 	 	2.6	  	Expenses of Formation and Syndication	  	10	 
	 	 	2.7	  	No Individual Authority	  	10	 
	 	 	2.8	  	Business Opportunities	  	10	 
	 	 	2.9	  	Neither Responsible for Other’s Commitments	  	11	 
	 	 	2.10	  	Affiliates	  	11	 
	 	 	2.11	  	Operations in Accordance With the Act: Ownership	  	11	 
		
	 ARTICLE 3. TERM
	  	11	 
	 	 	3.1	  	Term	  	11	 
		
	 ARTICLE 4. CAPITAL CONTRIBUTIONS OF THE MEMBERS
	  	11	 
	 	 	4.1	  	Capital Contributions of the Members	  	11	 
	 	 	4.2	  	No Other Contributions	  	12	 
	 	 	4.3	  	No Interest Payable	  	12	 
	 	 	4.4	  	No Withdrawals	  	12	 
	 	 	4.5	  	Additional Capital Contributions.	  	12	 
		
	 ARTICLE 5. MEMBER LOANS
	  	14	 
	 	 	5.1	  	Member Loans	  	14	 
	 	 	5.2	  	Payment of Member Loans	  	15	 
		
	 ARTICLE 6. MANAGEMENT OF THE COMPANY
	  	15	 
	 	 	6.1	  	Management	  	15	 
	 	 	6.2	  	Major Decisions	  	18	 
	 	 	6.3	  	Bank Accounts	  	21	 
	 	 	6.4	  	Annual Budgets	  	22	 
	 	 	6.5	  	Insurance	  	22	 
	 	 	6.6	  	Consultation Regarding the Project	  	22	 

  
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	  	 	6.7	  	Termination of Delegation of Authority to Crescent as Operating Member	  	23
	  	 	6.8	  	Development	  	24
	  	 	6.9	  	Management Agreement	  	25
	  	 	6.10	  	Contracts with Affiliates	  	25
	  	 	6.11	  	Indemnification of Managing Member and Operating Member	  	25
	  	 	6.12	  	Leasing Guidelines	  	25
		
	ARTICLE 7. BOOKS AND RECORDS, AUDITS, TAXES, ETC.	  	26
	  	 	7.1	  	Books; Statements	  	26
	  	 	7.2	  	Where Maintained	  	27
	  	 	7.3	  	Audits	  	27
	  	 	7.4	  	Objections to Statements	  	27
	  	 	7.5	  	Tax Returns	  	27
	  	 	7.6	  	Tax Matters Partner	  	28
	  	 	7.7	  	Tax Policy	  	28
	  	 	7.8	  	Section 754 Election	  	28
	  	 	7.9	  	Capital Accounts	  	28
		
	 ARTICLE 8. ALLOCATIONS
	  	29
	  	 	8.1	  	Allocation of Net Income and Net Loss	  	29
	  	 	8.2	  	Loss Limitation	  	29
	  	 	8.3	  	Minimum Gain Chargebacks and Nonrecourse Deductions	  	29
	  	 	8.4	  	Qualified Income Offset	  	30
	  	 	8.5	  	Code Section 704(b) Allocations	  	30
	  	 	8.6	  	Other Allocation Provisions	  	30
	  	 	8.7	  	Distributions of Nonrecourse Liability Proceeds	  	30
	  	 	8.8	  	Information as to Allocation of Debt	  	30
	  	 	8.9	  	Taxable Year; Fiscal Year	  	31
		
	 ARTICLE 9. DISTRIBUTIONS AND ALLOCATIONS
	  	31
	  	 	9.1	  	Percentage Interests in Company	  	31
	  	 	9.2	  	Certain Definitions	  	31
	  	 	9.3	  	Operating Cash Flow Distributions	  	33
	  	 	9.4	  	Extraordinary Cash Flow Distributions	  	33
	  	 	9.5	  	Loss of Promoted Interest	  	34
	  	 	9.6	  	Distributions Upon Liquidation	  	34
		
	 ARTICLE 10. ASSIGNMENT AND OFFER TO PURCHASE
	  	35
	  	 	10.1	  	Transfers	  	35
	  	 	10.2	  	Intentionally Omitted	  	35
	  	 	10.3	  	Assumption by Assignee	  	35
	  	 	10.4	  	Amendment of Certificate of Formation	  	36
	  	 	10.5	  	Other Assignments Void	  	36
	  	 	10.6	  	Intentionally Omitted	  	36
	  	 	10.7	  	Buy-Sell	  	36
	  	 	10.8	  	Provisions Generally Applicable to Sales	  	37
	  	 	10.9	  	Compliance with ERISA and State Statutes on Governmental Plans	  	40

  
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	 ARTICLE 11. DISSOLUTION OR BANKRUPTCY OF A MEMBER
	  	41
	 	 	11.1	  	Dissolution or Merger	  	41
	 	 	11.2	  	Bankruptcy, etc.	  	42
	 	 	11.3	  	Reconstitution	  	42
		
	 ARTICLE 12. CROSS-DEFAULT
	  	43
	ARTICLE 13. DISSOLUTION	  	43
	 	 	13.1	  	Winding Up by Members	  	43
	 	 	13.2	  	Winding Up by Liquidating Member	  	43
	 	 	13.3	  	Offset for Damages	  	44
	 	 	13.4	  	Distributions of Operating Cash Flow	  	44
	 	 	13.5	  	Distributions of Proceeds of Liquidation	  	45
	 	 	13.6	  	Orderly Liquidation	  	45
	 	 	13.7	  	Financial Statements	  	45
	 	 	13.8	  	Restoration of Deficit Capital Accounts	  	45
		
	 ARTICLE 14. MEMBERS
	  	45
	 	 	14.1	  	Liability	  	45
		
	 ARTICLE 15. NOTICES
	  	46
	 	 	15.1	  	In Writing; Address	  	46
	 	 	15.2	  	Copies	  	47
		
	 ARTICLE 16. MISCELLANEOUS
	  	47
	 	 	16.1	  	Additional Documents and Acts	  	47
	 	 	16.2	  	Interpretation	  	47
	 	 	16.3	  	Entire Agreement	  	47
	 	 	16.4	  	References to this Agreement	  	47
	 	 	16.5	  	Headings	  	47
	 	 	16.6	  	Binding Effect	  	47
	 	 	16.7	  	Counterparts	  	47
	 	 	16.8	  	Confidentiality	  	47
	 	 	16.9	  	Amendments	  	48
	 	 	16.10	  	Exhibits	  	48
	 	 	16.11	  	Severability	  	48
	 	 	16.12	  	Qualification in Other States	  	48
	 	 	16.13	  	Forum	  	48
	 	 	16.14	  	No Brokerage	  	49
	 	 	16.15	  	Tax Compliance	  	49

  
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 Exhibits 
  

			
		
	Exhibit A	    	Members’ Percentage Interests
		
	Exhibit B	    	Description of Land
		
	Exhibit C	    	Development Agreement
		
	Exhibit D	    	Insurance Certificates
		
	Exhibit E	    	Member’s ERISA Certificate
		
	Exhibit F	    	CNL’s ERISA Certificate
		
	Exhibit G	    	Project Budget
		
	Exhibit H	    	Pre-Development Costs

  
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 LIMITED LIABILITY COMPANY AGREEMENT 

OF 

GGT CRESCENT ALEXANDER NC VENTURE, LLC 
 This Limited Liability Company Agreement of GGT CRESCENT ALEXANDER NC VENTURE, LLC (this “Agreement”) is entered into and shall be effective as of the 27th day of November, 2012, by and
between CRESCENT ALEXANDER VILLAGE I, LLC, a Delaware limited liability company (“Crescent”), and GGT CRESCENT ALEXANDER HOLDINGS, LLC, a Delaware limited liability company (“CNL”), pursuant to the provisions of the
Delaware Limited Liability Company Act (the “Act”). Crescent and CNL are sometimes referred to herein, collectively, as the Members and individually as a Member. 

R E C I T A L S 
 WHEREAS, GGT Crescent Alexander NC Venture, LLC (the “Company”) was formed on August 13, 2012, pursuant to the Delaware Limited Liability Company Act by filing a Certificate of
Formation filed with the Secretary of State of the State of Delaware (the “Certificate of Formation”). 

WHEREAS, reference is hereby made to that certain Sales Contract with an effective date of November 20, 2012, by and between GGT
CRESCENT ALEXANDER NC VENTURE, LLC, a Delaware limited liability company as purchaser (“Purchaser”), and CRESCENT RESOURCES, LLC, a Georgia limited liability company as seller (“Property Seller”) (as the same may
have been amended, modified or supplemented, the “Land Contract”), whereby Purchaser has agreed to purchase from Property Seller, and Property Seller has agreed to sell to Purchaser, inter alia, the real property comprising
approximately 27.67 acres, located in Charlotte, Mecklenburg County, North Carolina (together with all personal property, fixtures, rights and intangibles associated therewith, the “Property”), as more particularly described in
Exhibit B hereto. 
 WHEREAS, the Members desire to form the Company for the purposes of acquiring the Property and
constructing a Class A rental apartment community on the Property with approximately 320 units, together with all amenities and related improvements (the “Project”), and leasing and managing the Project, but in any case the
Property is intended to be held by the Company for investment and/or held for appreciation and subsequent sale. 
 WHEREAS,
contemporaneously with the execution of this Agreement, Purchaser has assigned its interest under the Land Contract with regard to the acquisition of the Property under the Land Contract to the Company. 

NOW, THEREFORE, in order to carry out their intent as expressed above and in consideration of the mutual agreements and covenants
hereinafter contained, the receipt and sufficiency of which are hereby acknowledged, the Members hereby covenant and agree as follows: 

  
 1 

 ARTICLE 1. DEFINITIONS 

1.1       Definitions.   The following terms shall have the following meanings when used
herein: 
 10.7 Offer.   As defined in Section 10.8(a). 

Acceptable Person.   Any person who or which is not (i) a tax exempt organization as defined in Section 501(c)
of the Code, (ii) a person whose direct or indirect participation in the Company would result in a Plan Violation or (iii) in default or in breach, beyond any applicable grace period, of its obligations under any material written agreement
with CNL or any of its Affiliates. 
 Act.   The Delaware Limited Liability Company Act, 6 Delaware Code,
Section 18-101 et. seq. (or any corresponding provisions of succeeding law), as in effect at the time of the initial filing of the Certificate, and as thereafter amended from time to time. 

Additional Capital.   For a Member, except as otherwise provided in this Agreement, the sum of all capital contributions
made by such Member under this Agreement other than Crescent’s Initial Capital and CNL’s Initial Capital. “Additional Capital” shall not include any Member Loan. 

Additional Capital Request Date.   As described in Section 4.5(b). 

Additional Funding Notice.   As defined in Section 4.5(b). 

Additional Initial Capital.   As described in Section 4.5(a). 

Additional Initial Capital Funding Notice.   As described in Section 4.5(a). 

Additional Initial Capital Request Date.   As described in Section 4.5(a). 

Adjusted Capital Account.   As defined in Section 8.2. 

Affiliate.   An “Affiliate” of a person is (a) any officer, director, general partner, shareholder,
member, manager or trustee of such person, (b) any person directly or indirectly controlling, controlled by, or under common control with such person, and (c) any officer, director, general partner, shareholder, member, manager, trustee or
holder of fifty percent (50%) or more of the voting interest of any person described in clause (a) or (b) of this sentence. For the purpose of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as used with respect to any person, means any of the following: (i) having, directly or indirectly, the power to direct or cause the direction of the
management and policies of such person, whether through the ownership of voting securities, by contract or otherwise; (ii) holding fifty percent (50%) or more of the outstanding voting securities of such person, (iii) having the right
to receive fifty percent (50%) or more of the profits of such person; (iv) having the right to receive fifty percent (50%) or more of the assets of such person upon dissolution; or (v) having the contractual power to designate

  
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fifty percent (50%) or more of the directors of such person or individuals exercising similar functions. 
 Agreement.   This Limited Liability Company Agreement, including all Exhibits and Schedules attached hereto, as it may be amended from time to time. 

Appraisal Notice.   As described in Section 13.2(b)(i). 

Business Day.   Any weekday that is not an official holiday in Charlotte, North Carolina. 

Capital Account.   As described in Section 7.9. 

Capital Budget.   As described in Section 6.4. 

Capital Contribution.   For each Member, the aggregate of sums contributed to the Company by such Member pursuant to
Article IV hereof. 
 Cash Flow.   As described in Section 9.2(h). 

Cause.   As defined in Section 6.7. 
 Certificate of Formation.   As described in the Recitals above. 

CFG.   As defined in Section 10.1. 
 CNL.   As described in the first paragraph above. 
 CNL
Consent.   The written consent of CNL. 
 CNL Entities.   As defined in Section 2.8(b).

 CNL Maximum Initial Capital.   As defined in Section 4.1. 

CNL Property Manager.   CNL Global Growth Sub-Managers, LLC, a Florida limited liability company. 

CNL’s Initial Capital.   As described in Section 4.1. 

Code.   The Internal Revenue Code of 1986, as amended from time to time, and any successor thereto. 

Company.   GGT Crescent Alexander NC Venture, LLC, a Delaware limited liability company. 

Company Financing.   Financing that is provided to the Company. 

Company Minimum Gain.   As described in Section 8.3(a). 

Completion.   As defined in the Development Agreement. 

  
 H-3

 Construction Contract.   As defined in the Development Agreement.

 Construction Loan.   As defined in the Development Agreement. 

Crescent.   As described in the first paragraph to this Agreement. 

Crescent Parent.   Crescent Multifamily Holdings, LLC, a Delaware limited liability company. 

Developer.   Crescent Development, LLC, a Delaware limited liability company, acting in such capacity pursuant to
Section 6.8. 
 Development Agreement.   That certain Development Agreement dated of even date herewith by
and between the Company and Developer providing for the development of the Project on the Property, a copy of which is attached hereto as Exhibit C and incorporated herein by reference. 

Development Fee.   As described in Section 6.8. 

Economic Capital Account.   With respect to any Member, such Member’s Capital Account as of the date of
determination, increased by any amounts that the Member is actually obligated to contribute to the Company and/or deemed obligated to restore under Treasury Regulations Section 1.704-2. 

Effective Date.   The date this Agreement shall be signed by all the Members. 

Electing Member.   As described in Section 13.2(b)(i). 

Entire Interest.   Means, for each Member, such Member’s entire equity interest in the Company (which shall include
any and all interests in the Company held by persons that acquired their interests from such Member) and all unpaid Member Loans made by such Member. 
 ERISA.   The Employee Income Security Act of 1974, as amended. 

Extraordinary Cash Flow.   As described in Section 9.2(b). 

Failing Member.   As described in Section 4.5(d). 

Failing Member Loan.   As described in Section 4.5(d). 

Fair Market Value.   As described in Section 13.2(b)(ii). 

GAAP.   United States generally accepted accounting principles applied on a consistent basis. 

Governmental Plan.   As defined in Section 3(32) of ERISA. 

Initial Capital Contributions.   As defined in Section 4.1. 

  
 H-4

 IRR.   With respect to all Capital Contributions of a Member, the internal
rate of return or discount factor that, when applied to the cash flow stream consisting of all distributions by the Company to such Member, makes the present value of such distributions equal the present value (determined using the same discount
factor) of all Capital Contributions of such Member to the Company. The IRR shall be determined taking into account the exact dates any applicable Capital Contributions are made to the Company by the Member and the exact dates any applicable
distributions are made by the Company to such Member. The IRR to a Member shall be computed using the XIRR function in Microsoft Excel or a functional equivalent using actual dates of cash flows and based on annual compounding. 

Land Contract.   As defined in the Recitals above. 

Leasing Guidelines.   The leasing guidelines for the Project as approved (and amended) by the Members in accordance with
Section 6.12. 
 LIBOR.   The average rate (rounded upward to the nearest 1/16th) at which deposits in U.S. dollars of comparable amounts and for a
period of one month are offered in the London Interbank Market at approximately 11:00 am (London time) on the day that the capital contribution or loan is made, as reasonably determined by Member Consent, or if London Interbank Market is no longer
published, LIBOR shall be a rate as published in a publication of national circulation approved by Member Consent. 

Liquidating Member.   The Member in sole charge of winding up the Company and having the powers described in
Section 13.2. 
 List.   As described in Section 13.2(b)(ii). 

Loan Closing.   The closing of the Construction Loan. 

Major Capital Event.   One or more of the following: (i) sale of all or any part of, or any interest in, Company
property (including the Project and the Property), exclusive of sales or other dispositions of tangible personal property in the ordinary course of business; (ii) placement and funding of any indebtedness of the Company secured by some or all
of its assets with respect to borrowed money, excluding short term borrowing in the ordinary course of business; (iii) condemnation of all or any material part of, or any interest in, the Property through the exercise of the power of eminent
domain; or (iv) any unrestored material loss of Company property or any part thereof or interest therein by casualty, failure of title or otherwise. 
 Major Decision.   As defined in Section 6.2(a). 

Management Agreement.   As set forth in Section 6.9. 

Managing Member.   CNL. 
 Member Consent.   The written consent of each of CNL and Crescent. 
 Member Loan.   Any loan made by any Member or any Affiliate of a Member to the Company pursuant to Article V. 

  
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 Member Nonrecourse Debt.   As described in Section 8.3(c). 

Member Nonrecourse Debt Minimum Gain.   As described in Section 8.3(c). 

Members.   The parties to this Agreement, any Person to whom the parties to this Agreement may convey an interest in the
Company pursuant to Article 10, and any Person subsequently admitted to the Company as a substitute or additional Member in accordance with the terms of this Agreement, and “Member” means any of the Members; provided, however, that
for purposes of calculating cumulative contributions by, or allocations or distributions to, a Member, references to such Member shall be deemed to include all predecessors-in-interest with respect to such Member’s interest(s) in the Company.
The initial Members are CNL and Crescent. 
 Membership Interest.   The entire ownership interest of a Member
in the Company, including the Member’s Capital Account, interest in profits and losses, the right to receive distributions from the Company and the rights, if any, to participate in the management of the Company or consent to any actions by the
Company as set forth in this Agreement. 
 Minor Field Changes.   As defined in the Development Agreement.

 Non-Failing Member.   As described in Section 4.5(d). 

Nonrecourse Deductions.   As described in Section 8.3(b) 

Notice Date.   As described in Section 10.8(b). 

Notice of Intention.   As described in Section 4.5(d). 

Offering Party.   As defined in Section 10.8(a) 

Operating Budget.   As described in Section 6.4. 

Operating Cash Flow.   As described in Section 9.2(a). 

Operating Member.   Crescent, subject to CNL’s right to terminate Crescent’s authority as Operating Member in
accordance with Section 6.7. 
 Operating Return.   As described in Section 9.2(c). 

Operating Shortfall.   For any given period after Completion of the Project, if the operating expenses of the Company in
the normal course of business of the Company (including debt service under any Company Financing) exceed or are expected to exceed the gross receipts of the Company plus cash reserves for such period, and the Company therefore is expected to suffer,
or has suffered, a cash flow deficit. 
 Opportunity.   As defined in Section 2.8(b). 

Out-of-Pocket Costs.   Any costs or expenses incurred by the Managing Member, Operating Member or other Member or their
Affiliates acting within the scope of their respective 

  
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authority under this Agreement (including travel costs and FedEx/mail charges), provided that such costs or expenses are necessary or beneficial for the Company’s business as described in
Section 2.3. 
 Percentage Interest.   As described in Section 9.1. 

Permitted Leases.   Leases of apartment units within the Project entered into pursuant to the approved Leasing
Guidelines in the ordinary course of operations as an apartment community. 
 Person.   The term
“person” includes individuals, partnerships, limited liability companies, corporations, trusts, and other associations. 
 Plan Violation.   A transaction, condition or event that would constitute a nonexempt prohibited transaction under ERISA. 

Plans and Specifications.   Plans and specifications for the Project approved by Member Consent. 

Pre-Development Costs.   Those certain costs and expenses incurred by Crescent or Developer for the benefit of the
Company as set forth on Exhibit H attached hereto and incorporated herein by reference, which shall be reimbursed to Crescent or Developer, as applicable, in accordance with Section 4.1. 

Project.   As described in the third paragraph of the Recitals. 

Project Budget.   The budget approved by Member Consent for the acquisition, construction, development, marketing and
financing of the Project. The initial Project Budget is attached hereto as Exhibit G. 
 Property.   As
described in the second paragraph of the Recitals. 
 Property Closing.   The closing of the Company’s
acquisition of the Property pursuant to the Land Contract. 
 Property Manager.   The sub property manager or
managers selected by Member Consent to be proposed to enter into an sub property management agreement with CNL Property Manager to manage the Property following Completion, and any successor thereto. 

Proposer.   As described in Section 10.7(a). 

Reply Price.   As described in Section 10.8(a). 

Requirements.   All state, federal and local laws, ordinances, rules, regulations, codes, requirements of governmental
authorities, permits, licenses, approvals, the terms of all restrictions, easements and other arrangements of record affecting all or any portion of the Property, and all contractual obligations of Developer and the Company (including obligations
related to the Construction Loan and any other third-party financing). 

  
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 Responding Member.   As described in Section 10.7(a). 

REIT.   A real estate investment trust as defined pursuant to Sections 856 through 860 of the Code and the Treasury
Regulations promulgated thereunder. 
 REIT Property Manager.   CNL Global Growth Managers, LLC, a Delaware
limited liability company. 
 Responding Member’s Buy-Sell Deposit.   As described in
Section 10.7(b)(ii). 
 Sale Proposal.   As defined in Section 10.7(a). 

Target Balance.   With respect to any Member as of the close of any period for which allocations are made under
Article 8, the amount such Member would receive (or be required to contribute) in a hypothetical liquidation of the Company as of the close of such period, assuming for purposes of such hypothetical liquidation: (i) a sale of all of the
assets of the Company at prices equal (subject to the proviso at the end of this sentence) to their then book values (as maintained by the Company for purposes of, and as maintained pursuant to, the capital account maintenance provisions of Treasury
Regulations Sections 1.704-1(b)(2)(iv)); and (ii) the distribution of the net proceeds computed under clause (i) above to the Members pursuant to Section 9.4, as such Section has been adjusted by other provisions hereof (after the
payment of all actual Company indebtedness, and any other liabilities related to the Company’s assets; provided, however, that when (x) the aggregate book value of assets of the Company to which the rights of obligees of liabilities of the
Company are limited (including all assets of the Company if such rights are not limited to particular assets of the Company, and without regard to assets of persons other than the Company that may be available to such obligees) is exceeded by
(y) the aggregate amount of such liabilities, such assets shall be considered as having been sold for cash equal to the aggregate amount of such liabilities (without double-counting). 

Tax Matters Partner.   As described in Section 7.6. 

Treasury Regulations.   The Income Tax Regulations, including Temporary Regulations, promulgated under the Code, as such
regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 
 Unreturned
Additional Capital.   As described in Section 9.2(d). 
 Unreturned Initial Capital.   As
described in Section 9.2(f). 
 Unreturned Operating Return.   As described in Section 9.2(e).

 Value.   As described in Section 10.8(a)(i). 

The definitions in this Section 1.1 shall apply equally to both the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase
“,without limitation,”. 

  
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 1.2       Other Defined Terms.   Capitalized
terms not defined in Section 1.1 shall have the meanings set forth in the other sections of this Agreement. 

1.3       Exhibits.   The exhibits to this Agreement are incorporated herein by reference
as if fully set forth herein. 
 ARTICLE 2. THE COMPANY 

2.1       Organization.   The Members shall operate the Company pursuant to the provisions
of the Act. The terms and provisions hereof will be construed and interpreted in accordance with the Act. 

2.2       Name of Company.   The name of the Company will be “GGT Crescent Alexander
NC Venture, LLC”, and the Company’s business will be conducted under the name “Circle Alexander Village”. The Managing Member may change the name of the Company or the name under which the Company’s business is conducted at
any time, provided that Crescent shall have the right to approve the use of any name that includes the word “Crescent” or “Circle” or any variation of either name. The Company and CNL acknowledge and agree that the word
“Circle, and the Circle logo are owned by and proprietary to Crescent and its Affiliates, and that after such time as Crescent is no longer a Member of the Company or the Company no longer owns the Project, the names “Circle” and the
Circle logo will no longer be used by the Company or in connection with the Project. 
 2.3      
Purpose of Company.   The purpose of the Company is to directly or indirectly carry on the business of acquiring, owning, operating, managing, improving, repairing, renting, mortgaging, refinancing, selling, conveying and otherwise
dealing with the Property and all activities reasonably related thereto. In furtherance of such purpose, the Company shall have all such powers as may be exercised by a limited liability company under the laws of the State of Delaware. Except as
permitted by this Section 2.3, the Company shall not engage in any other business. In furtherance of the foregoing purposes, but expressly subject to the other provisions of this Agreement, the Company is empowered to enter into contracts
containing agreements to arbitrate disputes to the extent such contracts are approved by Member Consent. The Company is authorized to take any legal measures which will assist it in accomplishing its purpose or benefit the Company. 

2.4       Principal and Registered Office.   The principal office of the Company shall be
227 W. Trade Street, Suite 1000, Charlotte, North Carolina 28202 or such other place as the Managing Member may from time to time determine. Notification of any change in the Company’s principal place of business or principal office shall be
given to the other Members. The Company may change its principal office and or may maintain additional offices and places of business in other locations selected by the Managing Member and, to the extent required by law and/or deemed necessary or
desirable by the Managing Member, the Company shall qualify as a foreign limited liability company in any other jurisdiction in which it conducts business. The name and address of the registered agent of the Company for service of process in the
State of Delaware is National Registered Agents, Inc., 160 Greentree Drive, Suite 101, Dover, Delaware 19904. The Company’s registered agent and the Company’s registered and principal

  
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offices may be changed by the Managing Member in compliance with the relevant requirements of the Act. 
 2.5       Further Assurances.   The parties hereto will execute whatever certificates and documents, and will file, record and publish such certificates and
documents, which are required to operate a limited liability company under the Act. The parties hereto will also execute and file, record and publish, as required, such certificates and documents as they, upon advice of counsel, may deem necessary
or appropriate to comply with other applicable laws governing the operation of a limited liability company. 

2.6       Expenses of Formation and Syndication.   The expenses incurred by each Member in
connection with its consideration of an investment in the Company and its acquisition of a membership interest in the Company, including the fees of any attorney, financial advisor or other consultant, shall be paid and/or reimbursed by the Company
as set forth in the Project Budget and approved by Member Consent. 
 2.7       No Individual
Authority.   Except as otherwise expressly provided in this Agreement, no Member, acting alone, shall have any authority to act for, undertake or assume any obligations or responsibility on behalf of any other Member or the Company.

 2.8       Business Opportunities. 

(a)       Subject to the provisions of, and except as set forth in, subsection (b) of this
Section 2.8, nothing contained in this Agreement shall be construed so as to prohibit any Member or any firm or corporation controlled by or controlling such Member or any other Affiliate of a Member from owning, operating, or investing in any
real estate or real estate development not owned or operated by the Company, wherever located. Each Member agrees that any other Member, any Affiliate or any director, officer, employee, partner or other person or entity related to either thereof
may engage in or possess an interest in another business venture or ventures of any nature and description, independently or with others, including the ownership, financing, leasing, operation, management, syndication, brokerage and development of
real property, whether or not such activities are in direct competition with the Company, and neither the Company nor the Members shall have any rights by virtue of this Agreement in and to such independent ventures or to the income or profits
derived therefrom. To the fullest extent permitted by applicable law, the Members hereby waive any obligation or duty which might otherwise be imposed or implied under any so-called “business opportunity doctrine” or similar theory.

 (b)       Crescent covenants and agrees that for so long as it is a Member, in the event it
proposes to undertake any additional apartment development opportunities within the University Research Park area of Charlotte, North Carolina (each an “Opportunity”) other than developments existing as of the Effective Date, CNL
and Affiliates of CNL Financial Group, LLC (collectively, “CNL Entities”) shall have the right of first offer to participate in any such Opportunity, and to the extent that the CNL Entities decline or fail to respond to such
Opportunity within thirty (30) days after such Opportunity is offered, Crescent shall not be required to continue to offer any CNL Entity the right to participate to any extent in such Opportunity. 

  
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 2.9       Neither Responsible for Other’s
Commitments.   Neither the Members nor the Company shall be responsible or liable for any indebtedness or obligation of a particular Member incurred either before or after the execution of this Agreement, except (i) as to those
joint responsibilities, liabilities, debts or obligations incurred pursuant to the terms of this Agreement, and each Member indemnifies and agrees to hold the other Member and the Company harmless from such personal obligations and debts, except as
aforesaid; and (ii) as to the obligation of CNL to pay off and/or indemnify Crescent pursuant to Section 6.7 (c) of this Agreement, or as otherwise set forth in this Agreement. 

2.10       Affiliates.   Any and all activities to be performed by CNL hereunder may be
performed by officers or employees of one or more Affiliates of CNL, provided that all actions taken by such persons on behalf of CNL in connection with this Agreement shall be binding upon CNL. Any and all activities to be performed by Crescent
hereunder may be performed by officers or employees of one or more Affiliates of Crescent, provided that all actions taken by such persons on behalf of Crescent in connection with this Agreement shall be binding upon Crescent. 

2.11       Operations in Accordance With the Act: Ownership.   Except as expressly set
forth in this Agreement to the contrary, the rights and obligations of the Members and the administration, operation and termination of the Company shall be governed by the Act, as it may be amended. The interest of each Member in the Company shall
be personal property for all purposes. All real and other property owned by the Company shall be deemed owned by the Company as a company, and no Member, individually, shall have any ownership interest in such property. 

ARTICLE 3. TERM 
 3.1       Term.   Unless extended by Member Consent, the term of the Company shall continue until the first to occur of the following: 

(a)       December 31, 2061; 

(b)       The sale or other disposition of all or substantially all of the Property, other than to a
nominee or trustee of the Company for financial or other business purposes; 
 (c)      
Dissolution of the Company pursuant to the express provisions of Section 4.5(d)(iii) or Articles 10, 11 or 13; or 

(d)       The occurrence of any event or circumstance that would cause the entry of a decree of judicial
dissolution of the Company under the Act unless, following a Member Consent to cure such events, the events giving rise to such judicial dissolution are cured within the time, if any, set for such cure, and the Company is reinstated under the Act.

 ARTICLE 4. CAPITAL CONTRIBUTIONS OF THE MEMBERS 

4.1       Capital Contributions of the Members.   No later than the execution of this
Agreement, CNL and Crescent shall contribute their pro rata shares (based upon their respective Percentage Interests) of all amounts payable by the Company at the Property Closing and the 

  
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Loan Closing, including amounts necessary to reimburse Crescent or Developer for its Pre-Development Costs. Such initial capital contribution by CNL shall constitute a portion of
“CNL’s Initial Capital”. Such initial capital contribution by Crescent (against which Crescent may credit any portion of the Development Fee that is assigned by Developer to Crescent in accordance with the Development
Agreement) shall constitute a portion of “Crescent’s Initial Capital”. Crescent’s Initial Capital and CNL’s Initial Capital shall collectively be called the “Initial Capital Contributions”. Such
contributions are reflected on Exhibit A attached hereto and shall be updated from time to time to reflect modifications to the Initial Capital Contributions and any additional capital contributions, including contributions of Additional Initial
Capital as required pursuant to Section 4.5(a). The amount of cash and the fair market value, as agreed to by Member Consent, of other property contributed by a Member shall be credited to such Member’s Capital Account. In no event shall
the aggregate amount of CNL’s Initial Capital exceed $5,184,588.00 without the express written approval of CNL (the “CNL Maximum Initial Capital”), and in no event shall Crescent’s Initial Capital exceed $3,456,392.00
without the express written approval of Crescent (the “Crescent Maximum Initial Capital”). The Members expressly agree that, to the extent the amount of the final Project Budget is hereafter reduced due to savings in the
Construction Contract’s guaranteed maximum price, the Initial Capital Contributions of CNL and Crescent shall be reduced on a pro rata basis. Any Construction Cost Overruns (as defined in the Development Agreement) funded by Developer shall not
be treated as a contribution by Developer or Crescent to the Company or in any manner construed so as to increase Crescent’s Capital Account or Crescent’s Initial Capital under this Agreement, shall not be treated as Additional Capital of
Crescent under this Agreement, shall not be treated as a Member Loan by Crescent to the Company, and shall not entitle Developer or Crescent to any interest on or refund of any amounts so advanced or to any other rights or remedies against the
Company or any Member. 
 4.2       No Other Contributions.   Except as expressly
required by this Article 4, neither Member shall have any obligation to make any capital contribution to the Company nor to advance any funds thereto. 
 4.3       No Interest Payable.   No Member shall receive any interest on any of its Capital Contributions except for such Member’s Operating Return.

 4.4       No Withdrawals.   No Capital Contribution shall be withdrawn except
as hereinafter expressly stipulated. 
 4.5       Additional Capital Contributions.

 (a)       When the Operating Member determines in its good faith business judgment that
capital is needed by the Company to pay for (A) costs provided in the Project Budget that have not been previously paid by the Members and that are not being paid for out of Company Financing or (B) costs of development or construction of
the Project in excess of the Project Budget which costs have been approved by Member Consent (collectively, the “Additional Initial Capital”), then the Operating Member shall cause notice to be delivered to the Members setting forth
the purposes and amounts of such Additional Initial Capital. Each such notice delivered to the Members shall constitute an “Additional Initial Capital Funding Notice” pursuant to this Section 4.5(a). All amounts funded by
Crescent pursuant to this 

  
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Section 4.5(a) shall constitute a portion of Crescent’s Initial Capital. All amounts funded by CNL pursuant to this Section 4.5(a) shall constitute a portion of CNL’s Initial
Capital. Within ten (10) Business Days following the date of delivery of an Additional Initial Capital Funding Notice (in each case, the “Additional Initial Capital Request Date”), CNL and Crescent shall contribute to the
Company, in proportion to their Percentage Interests, as Additional Initial Capital, the amount so required, up to the CNL Maximum Initial Capital Contribution, in the case of CNL, and up to the Crescent Maximum Initial Capital Contribution, in the
case of Crescent. 
 (b)       If the Operating Member determines in its good faith business
judgment that additional funds (other than amounts required to be funded under Section 4.5(a) above) are needed by the Company to fund any Operating Shortfall or to reimburse the Members or their Affiliates for Out-of-Pocket Costs incurred on
behalf of the Company (other than Out-of-Pocket Costs related to or arising out of the development and construction of the Project to the extent Crescent is responsible for such Out-of-Pocket Costs under the Development Agreement), then Operating
Member shall cause notice to be delivered to the Members setting forth the purposes and amounts of such additional funds. Each such notice delivered to the Members shall constitute an “Additional Funding Notice”. All amounts funded
by CNL pursuant to this Section 4.5(b) shall constitute a portion of CNL’s Additional Capital, and all amounts funded by Crescent pursuant to this Section 4.5(b) shall constitute a portion of Crescent’s Additional Capital. Within
ten (10) Business Days following the date of delivery of an Additional Funding Notice (in each case, the “Additional Capital Request Date”), CNL and Crescent shall contribute to the Company, in proportion to their respective
Percentage Interests, as Additional Capital, the amount so required. 
 (c)       Any and all
funds contributed by the Members pursuant to this Section 4.5 shall be credited to their Capital Accounts in the Company and shall constitute Additional Capital (in the case of contribution of Additional Capital) or Additional Initial Capital
(in the case of contribution of Additional Initial Capital), as the case may be, for all purposes of this Agreement. 

(d)       If a Member (the “Failing Member”) fails to contribute an amount equal to the
entire amount required to be contributed by it pursuant to Section 4.5(a) or 4.5(b) within the applicable period after the Additional Initial Capital Request Date or the Additional Capital Request Date, as applicable, and if any other Member
(the “Non-Failing Member”) makes its required contribution within such applicable time period pursuant to Section 4.5(a) or 4.5(b) and so notifies any Failing Member (the “Notice of Intention”), and such
Failing Member fails to fully remedy its failure to contribute such required capital within ten (10) days after the giving of such Notice of Intention, then one or more of the following may occur, at the option and election of the Non Failing
Member, which election shall be specified prospectively in the Notice of Intention: (i) the Non-Failing Member may require the Company to repay immediately to the Non-Failing Member the Capital Contribution(s), if any, it made pursuant to
Section 4.5(a) or 4.5(b); (ii) the Non-Failing Member may, but need not, make an additional Capital Contribution to the Company not in excess of the amount such Failing Member failed to contribute pursuant to Section 4.5(a) or 4.5(b),
in which case (y) the balance of the Non Failing Member’s Capital Account shall be increased by $1.15 for each $1.00 not funded by such Failing Member in accordance with the terms of this Section 4.5 in response to the applicable

  
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Additional Capital Funding Notice or Additional Initial Capital Funding Notice (which adjustment shall be treated as Additional Capital contributed by such Non-Failing Member), as applicable and
(z) each of such Failing Member’s distribution percentages pursuant to Sections 9.4(f), 9.4(g) and 9.4(h) shall be reduced by one percent (1%) for every $20,000 of Additional Capital or Additional Initial Capital such Failing Member
failed to contribute to the Company pursuant to this Section 4.5 and in turn, each of the Non-Failing Member’s Percentage Interest and the Non-Failing Member’s distribution percentages under Sections 9.4(f), 9.4(g) and 9.4(h),
respectively, shall be increased by the equivalent percentage, and any such adjustments to the Members’ Capital Account balances to give effect to the foregoing shall be treated as liquidated damages for tax purposes; (iii) the Non-Failing
Member may cause the Company to be dissolved, in which case such Non-Failing Member will be the Liquidating Member and will have the right to cause the Property and other Company assets to be sold or otherwise liquidated in accordance with
Section 13.2; or (iv) the Non Failing Member may elect to loan to such Failing Member (“Failing Member Loan”), which Failing Member Loan shall be disbursed to the Company and treated as an additional Capital Contribution
to the Company made by such Failing Member, an amount equal to the amount such Failing Member failed to contribute pursuant to Section 4.5(a) or 4.5(b), which Failing Member Loan made by the Non-Failing Member to the Failing Member shall bear
interest at an annual rate (compounded annually) of one thousand basis points (1,000 bps) above one month LIBOR from the date of the advance until such Failing Member Loan is paid to the Non-Failing Member in full. Payments with respect to such
Failing Member Loan shall be made to the Non-Failing Member out of distributions that would otherwise have been payable to such Failing Member under this Agreement until fully repaid (which payments will be applied first to accrued interest on the
outstanding principal balance and then to the outstanding principal balance of such Failing Member Loan). Any such Failing Member Loan shall be nonrecourse to such Failing Member, secured by such Failing Member’s entire interest in the Company,
and shall be satisfied only out of distributions as provided above in this Section 4.5(d). Such Failing Member Loan may be prepayable at any time or from time to time and, if not sooner paid in full, shall mature upon the earlier of
(A) the liquidation of the Company and (B) the fifth anniversary thereof. Each Non-Failing Member shall have the right, but not the obligation, to make a portion of any additional Capital Contribution (as contemplated by
Section 4.5(d)(ii)) or Failing Member Loan (as contemplated by Section 4.5(d)(iv)) in an amount proportionate to its respective Percentage Interest. 
 (e)       Intentionally Omitted. 
 ARTICLE 5.
MEMBER LOANS 
 5.1       Member Loans.   No Member shall be obligated to
lend any money to the Company. If the Operating Member determines that it is necessary or appropriate for the Company to borrow money from any of the Members, then the Operating Member shall cause notice (a “Loan Request Notice”) to
be sent to each of the Members, setting forth the amount proposed to be borrowed from the Members and the purpose of the proposed Member Loan. Each of the Members shall have the right, but not the obligation, to lend to the Company the amount to be
borrowed as set forth in such Loan Request Notice, multiplied by its respective Percentage Interest, which shall be exercisable by notice given to the Company and the other Members within 45 days of receipt of the Loan Request Notice from the
Operating Member or 

  
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by such earlier date as shall have been determined to be appropriate by the Operating Member, as set forth in the Loan Request Notice. If any of the Members does not lend the full amount set
forth for it in the Loan Request Notice, the other Members shall have the option to lend the balance. If any Member(s) shall lend any money to the Company, such Member Loan shall not constitute a Capital Contribution by such Member(s) or entitle it
to any increase in its share of the distributions of the Company. Each Member Loan shall be an obligation of the Company, provided that no Member shall be personally obligated to repay the Member Loan and the Member Loan shall be payable or
collectible only out of the assets of the Company. All such Member Loans shall be on commercially reasonable terms as determined by Member Consent and shall bear interest at a rate of 2% per annum above the prime rate (or the average thereof if
published as a range) (in each case as published from time to time in The Wall Street Journal (or if The Wall Street Journal is no longer published, the prime rate as published in a publication of national circulation selected by
Member Consent)), compounded annually, adjusted as of the date of each prime rate change published, but in no event shall the rate of interest exceed the highest rate permitted by law for the obligor which, if exceeded, could subject the lending
Member to penalties or forfeiture of all or any part of the interest or principal associated with such Member Loan. 

5.2       Payment of Member Loans.   Member Loans shall be repaid in accordance with the
terms as agreed to by Member Consent. 
 ARTICLE 6. MANAGEMENT OF THE COMPANY 

6.1       Management. 
 (a)       The day-to-day ordinary and customary business and affairs of the Company shall be managed by Managing Member in its capacity as manager of the Company, subject to
and in accordance with the terms hereof. The Members hereby appoint CNL as the initial Managing Member of the Company. 

(b)       Subject to approval by Member Consent of Major Decisions under Section 6.2(a) and other
matters requiring Member Consent hereunder, and the other restrictions on authority and express approval rights of CNL otherwise provided in this Agreement, the Managing Member shall have full and complete authority, power and discretion to manage
and control the day-to-day affairs and business of the Company and shall have such power as is necessary, convenient or appropriate to carry out the purposes of the Company and to conduct the day-to-day business of the Company consistent with the
terms of this Agreement. Except as otherwise expressly provided in this Agreement, the Members (other than Managing Member acting in its capacity as manager of the Company in accordance with and subject to the terms of this Agreement or Operating
Member acting in accordance with the authority delegated by Managing Member to Operating Member subject to the terms of this Agreement) shall have no right, power or authority to act for or on behalf of, or otherwise bind, the Company. Managing
Member agrees to devote to the Company’s business such time as reasonably shall be necessary in connection with its duties and responsibilities hereunder. Managing Member shall at all times conduct the business and affairs of the Company
(i) in accordance with the then effective Project Budget or Operating Budget and Capital Budget, as the case may be, (ii) following Completion, in a first-class and prudent manner, and (iii) in compliance in all material respects

  
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with all Company Financing, all material agreements affecting the Property or the Company, all applicable Requirements and any court orders. Subject to Section 6.2 and other provisions of
this Agreement requiring Member Consent, the Managing Member shall have the rights and authority to act on behalf of the Company with respect to: 
 (i)       managing the Company’s operations so as to preserve the REIT status of the CNL owner and/or prevent the imposition of a prohibited transaction tax; 

(ii)       the continuation of the Company’s valid existence as a limited liability company under the
laws of State of Delaware; 
 (iii)       the acquisition, development, maintenance, preservation
and operation of the Project in accordance with the provisions of the approved Plans and Specifications, this Agreement and applicable Requirements; 
 (iv)       procurement of such insurance as may be appropriate or necessary for the prudent development and operation and management of the Property as set forth in this
Agreement; 
 (v)       formation of subsidiaries as may be necessary for the prudent development
of the Project and the operation and management of the Company’s business and affairs; 

(vi)       collection of revenues generated by the Company and payment of all expenses of the Company;

 (vii)       establishment, maintenance and drawing upon checking, savings and other accounts
in the name of the Company; 
 (viii)       oversight and management of litigation filed on
behalf of or against the Company as set forth in this Agreement; including providing to the other Members any notices received by the Managing Member or its Affiliates regarding any violations of Requirements and any notices received with respect to
the Construction Loan or any other third party loan; 
 (ix)       maintenance of all accounting
and tax records for the Company as set forth in this Agreement, including maintaining all tax books, tax records and all other financial statements and records in accordance with GAAP and as may be required for REIT purposes; 

(x)       preparation or oversight of the Company’s independent accountants in the preparation of all
federal, state and local tax returns of the Company; 
 (xi)       the delivery of the Company
financial statements as set forth in this Agreement, prepared in accordance with GAAP and performance or causing performance of the Company’s financial reporting requirements as set forth in this Agreement; 

  
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 (xii)       delivery of, or causing delivery of, to the
Company and the members of the Company of all documentation and calculations necessary for the Company’s independent accountants to prepare the Company’s federal tax return and K-1’s; 

(xiii)       monitoring of compliance with all loan and lender requirements and performing loan covenant
testing and loan compliance reporting with respect to the Construction Loan and other loans made to the Company; 

(xiv)       monitoring and oversight of the REIT Property Manager, the CNL Property Manager and the
Property Manager, and delivery to the Members such reports and information as are required of the Property Manager pursuant to the Management Agreement; 
 (xv)       monitoring and management of Company’s debt compliance, cash management functions and annual independent audit, including maintenance of a system of cash
management to comply with lender cash management requirements (this obligation shall include payment of vendors, maintenance of bank accounts, performance of bank reconciliations, the making of intercompany rents payments and the making of debt
service payments); 
 (xvi)       maintenance of Capital Accounts for the Members of the Company
in accordance with the terms of this Agreement; 
 (xvii)       implementation of Major Decisions
as approved and on the terms set forth by Member Consent; 
 (xviii)       making all
distributions of Operating Cash Flow and Extraordinary Cash Flow in accordance with the terms of this Agreement; 

(xix)       maintaining a system of internal controls necessary to enable CNL to complete CNL’s
Sarbanes-Oxley certifications, including delivering or causing to be delivered a SAS 70 Type II report for the Property, to the extent prepared by Operating Member in the ordinary course of its business, as requested by CNL, or such other
documentation and testing of internal controls as is deemed necessary by CNL; provided, however, that to the extent the testing of the Company’s internal controls or the implementation of additional or alternative internal controls as a result
of any such testing causes the Company to incur non de minimus expenses, CNL shall bear responsibility for such expenses; and 

(xx)       any other action that the Managing Member or the Operating Member is expressly authorized to
perform under the other provisions of this Agreement. 
 (c)       The Managing Member shall have
the right to delegate any of the above responsibilities and authority to any other Member of the Company as the Operating Member, subject to the acceptance by such Member of such delegation. The Managing Member hereby designates Crescent as
Operating Member and delegates to Crescent, subject to the right of the Managing Member to terminate such delegation in accordance with Section 6.7, the foregoing responsibilities, duties and authority of the Managing Member described in
subparagraphs (ii) through (xx) of Section 6.1(b). Crescent hereby accepts such delegation by CNL as Managing Member and agrees that it shall perform as Operating Member the responsibilities and obligations delegated as part of such
delegation in accordance with the standard of care required 

  
 H-17

 
under Section 6.1(b) of this Agreement as if it was the Managing Member of the Company and had all duties, responsibilities, authority and rights related to the Company and its Members
associated with such office of Managing Member. CNL acknowledges that Crescent shall have no responsibilities or obligations to perform the duties of Managing Member of the Company except to the extent set forth herein. 

6.2       Major Decisions. 
 (a)       Notwithstanding anything to the contrary, without prior written Member Consent in each instance (each, a “Major Decision”), the Company and
Managing Member shall not, and the Managing Member shall not authorize the Operating Member to: 

(i)       Adopt, modify or supplement the Plans and Specifications, except for Minor Field Changes as
permitted under the Development Agreement; 
 (ii)       Enter into any contract or transaction
with, or pay any amount to, a Member or any Affiliate of a Member, except for Out-of-Pocket Costs incurred on behalf of the Company or as expressly provided in this Agreement, the Project Budget, an Operating Budget or a Capital Budget; 

(iii)       Authorize or enter into any agreement, transaction or action on behalf of the Company that is
unrelated to its purpose set forth in Section 2.3, including acquiring any additional real property; 

(iv)       Subject to the terms of Article 10, sell, lease, encumber, assign, convey, exchange or otherwise
dispose of, in each case directly or indirectly, any interest in any asset of the Company, except in the case of (i) the sale of personal property which is not necessary for the operation of the Property (or if necessary, which is replaced by
sufficient substitute property) for a sales price of not more than $25,000, or (ii) Permitted Leases; 

(v)       Modify the Project Budget, other than to reallocate demonstrated line item savings to
demonstrated line item overruns, so long as each Member shall be given notice thereof promptly following such reallocation or allocation of amounts from the contingency line item. Notwithstanding the foregoing, it shall be a Major Decision to
reallocate any savings in the Project Budget line item for Crescent’s legal and third party costs and expenses or for loan interest; 
 (vi)       Voluntarily dissolve or liquidate the Company; 
 (vii)       Authorize or effect a merger or consolidation of the Company with or into one or more entities; 

(viii)       Make any call for capital contributions from the Members, except as expressly authorized
pursuant to Article IV; 
 (ix)       Select any Property Manager to propose to the CNL Property
Manager for a sub property management agreement for the management of the Property, it being acknowledged that the Company shall enter into a property management agreement with the 

  
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REIT Property Manager which has entered into a sub property management agreement with the CNL Property Manager, as set forth in Section 6.9; 

(x)       Except for the Construction Loan, cause the Company to incur any Company Financing or modify,
supplement or refinance any Company Financing, provided that when the Construction Loan matures (whether at its stated maturity, upon acceleration or otherwise), the Operating Member with Member Consent shall have the authority to affirmatively
cause the Company to obtain or attempt to obtain replacement financing in at least the amount of the outstanding balance of the Construction Loan; provided, however that upon the maturity of the Construction Loan or any other then-existing Company
Financing that has been guaranteed in whole or in part by Crescent or any Crescent Affiliate, if new Company Financing, the proceeds of which will be used to repay the Construction Loan or such other guaranteed matured Company Financing in full, has
been presented, in good faith, by the Operating Member and is not approved by Member Consent, then the Operating Member shall be authorized, without Member Consent, to pursue, obtain and close and consummate from a third-party lender such
replacement Company Financing, in an amount equal to the then-outstanding principal of the Construction Loan or other matured Company Financing, on commercially reasonable prevailing market terms so long as the replacement Company Financing
(a) is non-recourse financing which does not require prepayment penalty in excess of the greater of yield maintenance or one percent (1%) of the principal amount outstanding and (b) in respect of which if guaranties are required, such
guaranties are provided by Crescent or a Crescent Affiliate. 
 (xi)       Confess a judgment
against the Company in excess of $50,000, file or fail to contest any bankruptcy, seek or permit a receivership, make an assignment for the benefit of creditors or take any similar action for the benefit of creditors; 

(xii)       Possess any Company property or assign the rights of the Company in specific Company property
for other than a Company purpose; 
 (xiii)       Cause the Company to loan funds to any Person
or issue any guaranty or indemnity, except pursuant to Company Financing; 
 (xiv)      
Commingle Company funds with the funds of any other Person; 
 (xv)       Modify the Development
Fee or otherwise modify or amend the Development Agreement; 
 (xvi)       Amend this Agreement
or the Certificate of Formation, except that the Certificate of Formation may be amended by the Managing Member to the extent required by law or to effect changes solely of a ministerial nature which do not adversely affect the rights or increase
the obligations of a Member; 
 (xvii)       Issue any interest in the Company or admit any
Person as an additional member in the Company, provided, that CNL and/or Crescent may effectuate any sale, assignment, gift, pledge, hypothecation, encumbrance or other transfer of its interest in the Company as set forth in Section 10.1;

  
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 (xviii)       Determine whether and to what extent the
Property should be repaired or restored following casualty or condemnation, other than as required by Company Financing; 

(xix)       Appoint any substitute Managing Member or delegate any responsibilities of Managing Member
other than as set forth in Section 6.1(b); 
 (xx)       Fail to carry insurance required by
this Agreement or modify any such insurance; 
 (xxi)       Threaten, file or settle any claim
involving the Company, other than eviction proceedings in the ordinary course of business, insured tort claims and claims involving amounts less than $25,000, individually or in the aggregate for related claims; 

(xxii)       Remove or appoint accountants in connection with any Company business; 

(xxiii)       Determine any actions to be taken to cure any material default under or material violation
of any Requirement other than a default under this Agreement; or 
 (xxiv)       Designate a bank
for the deposit of funds of the Company. 
 (xxv)       Adopt an Operating Budget or a Capital
Budget or, except for the reimbursement of Out-of-Pocket Costs or as expressly provided below in items (ii) and (iii) immediately below, cause the Company to incur any expense not provided for in the Project Budget, an Operating Budget or
a Capital Budget; 
 (xxvi)       Modify any Operating Budget, except to allow annual variances
in line items that do not exceed in the aggregate in any Fiscal Year the greater of (i) $50,000, and (ii) ten percent (10%) of the line item and that, when taken together with all other variances in any Operating Budget in such Fiscal
Year, do not increase the total amount provided in the applicable Operating Budget by more than one hundred ten percent (110%) in the aggregate; 
 (xxvii)       Modify any Capital Budget, except to allow an annual aggregate variance not in excess of $50,000 after taking all line item variances into account; and

 (xxviii)       Enter into any contract or agreement that obligates the Company to pay more
than $50,000 or that is not terminable on no more than thirty (30) days’ notice without penalty or charge; provided, however, that subject to the other provisions of Section 6.2(a), such restriction shall not restrict the authority of
the Managing Member or the Operating Member to enter into such contracts or agreements only with non-Affiliate third parties in the ordinary course of business of operating the Project as an apartment community on such terms as are commercially
reasonable in the context of a “Class A” garden apartment community in the Tampa, Florida market. 

(b)       The Operating Member shall use good faith efforts to provide each other Member with not less
than thirty (30) days’ advance notice of any proposed Major Decision, provided, however, in the event of an emergency or other circumstance that does not reasonably 

  
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permit such advance notice, the Operating Member may call upon the Members to respond within a shorter, reasonable period of time (but in no event less than two (2) Business Days’
advance notice). Member Consent may be by written consent or may occur pursuant to a meeting by conference call with the results confirmed in writing, and such written consent or written confirmation may be delivered in the form of facsimile,
electronic mail, telex, telecopy or telegraph. An agenda for each meeting shall be prepared in advance by the Members in consultation with each other. Approval by Member Consent of the matter being considered shall be binding on the Company and the
Members for all matters. Upon the request of any of the Members, the Operating Member shall cause written minutes to be prepared of all actions taken by such members at meetings and shall deliver a copy thereof to each of the Members within seven
(7) days after the date of the meeting. 
 (c)       To the extent that the Operating Member
shall have the authority to cause any Major Decisions to occur and be implemented without the consent of any other Member, such authority shall be limited as follows: 
 (i)       With respect to Section 6.2(a)(xx), the Operating Member shall have the authority to modify the insurance carried by the Company but shall not have the
authority to cause the Company to fail to carry any insurance required by this Agreement, applicable law or any Company Financing, loan document or other agreement to which the Company is a party. 

(ii)       With respect to Section 6.2(a)(xxi), neither the Managing Member nor the Operating Member
shall have the authority without the consent of the other Member to threaten, file or settle any claim involving the other Member, but each shall have the authority, subject to the provisions of Section 6.2(a)(xxi), to threaten, file or settle
any claim involving such Member that does not involve the other Member. 
 (iii)       With
respect to Section 6.2(a)(xxiv), the Operating Member’s authority to designate a bank for the deposit of Company funds shall be subject to Section 6.3 below. 
 6.3       Bank Accounts.   For so long as the Construction Loan remains outstanding, the Company will maintain a separate bank account or accounts with the
bank making the Construction Loan for the deposit and disbursement of all funds of the Company. Subject to the foregoing, the Company may thereafter maintain separate bank accounts in such banks as the Members by Member Consent may designate or any
Lender of the Company may require exclusively for the deposit and disbursement of all funds of the Company. All funds of the Company shall be promptly deposited in such accounts. The Operating Member may designate representatives of Operating Member
to be authorized signatories for such accounts from time to time, provided that a representative of Crescent shall at all times be an authorized signatory on all Company bank accounts without the requirement of any co-signatory for such accounts and
all such signatories shall be insured by fidelity bonds on terms reasonably acceptable to CNL and shall not authorize any expenditures from such accounts with respect to the Project that are not in accordance with the Project Budget. 

  
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 6.4       Annual
Budgets.   No later than sixty (60) days before Completion, the Operating Member shall prepare or cause to be prepared by the Property Manager for the Property, for the Members review, a proposed operating budget and a proposed
capital budget, each for the following fiscal year of the Company (or portion thereof if Completion does not occur on January 1) in a form reasonably satisfactory to the Members. The Operating Member shall consult with the Members with respect
to such proposed operating budget and proposed capital budget. Once approved as required pursuant to the provisions of Section 6.2(a), the applicable final proposed operating budget shall become the “Operating Budget” hereunder, and,
once approved pursuant to the provisions of Section 6.2(a), the applicable final proposed capital budget shall become the “Capital Budget” hereunder. Thereafter, no later than November 1st of each year, the Operating Member shall prepare or cause to be
prepared by the Property Manager for the Property, for the Members review, a proposed operating budget and a proposed capital budget for the upcoming calendar year. The Operating Member shall consult with the Members with respect to such proposed
operating budget and proposed capital budget with the goal that CNL and Crescent agree on each such proposed budget on or before December 1st of each year. If approved pursuant to the provisions of Section 6.2(a), the final proposed operating budget for
such subsequent year shall become the then operative “Operating Budget” hereunder. If approved by pursuant to the provisions of Section 6.2(a), the final proposed capital budget for such subsequent year shall become the then operative
“Capital Budget” hereunder. If, as of the commencement of any Fiscal Year, all or any portion of a proposed Operating Budget has not been approved as required by the provisions of Section 6.2(a), the Operating Member shall be
authorized to operate the Company in accordance with those portions of the prior Fiscal Year’s Operating Budget that pertain to the portions of the proposed Operating Budget that have not been so approved. Notwithstanding the foregoing, until a
new Operating Budget for a Fiscal Year is approved as required by the provisions of Section 6.2(a), the Operating Member may make expenditures for real estate taxes, scheduled debt service payments, insurance premiums for insurance maintained
in accordance with the terms of this Agreement, common area expenses, fulfillment of obligations to tenants under Permitted Leases and utilities, regardless of the amounts permitted therefore in the prior Fiscal Year’s Operating Budget.

 6.5       Insurance.   Certificates for all insurance maintained by the
Company shall be attached hereto collectively as Exhibit D. The Operating Member shall cause the Company to obtain and maintain all such insurance as and when described on Exhibit D, and the Operating Member shall attach such
additional certificates of insurance to Exhibit D upon issuance. At no time shall insurance maintained by the Company be less than the applicable amount required under applicable law. 

6.6       Consultation Regarding the Project.   CNL, as Managing Member, directly or
through its agents or Affiliates, notwithstanding the delegation of authority granted to the Operating Member, shall have the right to consult with and provide comments to the Operating Member on significant issues relating to the management and
business of the Company and development of the Project, and, if requested by CNL, each of the Company and the Operating Member will make available its officers and representatives of its accountants to meet with CNL or its agents or Affiliates from
time to time during each year at mutually agreeable times for such consultation, to review the management, progress and conditions (financial and otherwise) of the Project and the management of the Company. Notwithstanding anything to the contrary
in this Agreement, the rights of CNL to provide such consultation shall include: (a) the right to discuss, 

  
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and provide advice with respect to, the Company’s business (including the management of the Project) with the Operating Member and the Company’s officers, employees, managers and agents
and the right to consult with and advise the Operating Member on matters materially affecting the Company (including the Project); (b) the right to submit business proposals or suggestions relating to the Company (including the Project) to the
Operating Member and the Company’s management from time to time with the requirement that one or more members of the Operating Member’s management discuss such proposals or suggestions with CNL or its agent or Affiliate, as applicable,
within a reasonable period after such submission and the right to call a meeting with the Operating Member’s management in order to discuss such proposals or suggestions; and (c) the right (i) to visit the Company’s business
premises and the Project during normal business hours, (ii) to receive financial statements, operating reports, budgets or other financial reports of the Company (including those relating to the Project) on a regular basis describing the
financial performance, significant proposals and other material aspects of the Company (including the Project), (iii) to examine the books and records of the Company (including those relating to the Project) and (iv) to request such other
information relating to the Company (including the Project) at reasonable times and intervals in light of the Company’s normal business operations concerning the general status of the Company’s business, financial condition and operations
(including the Project) but only to the extent such information is reasonably available to the Company and in a format consistent with how the Company maintains such information. 

6.7       Termination of Delegation of Authority to Crescent as Operating Member. 

(a)       CNL shall have the right, without the concurrence of Crescent, to terminate the delegation of
authority of, and remove Crescent as, Operating Member at any time with or without Cause. Solely in the event of termination by CNL and removal of Crescent as Operating Member for Cause, Crescent shall cease to have any rights to approve or consent
to any matters under this Agreement. For the avoidance of doubt, any termination by CNL and removal of Crescent as Operating Member without Cause shall not affect Crescent’s right to approve Major Decisions or any other matters requiring Member
Consent under this Agreement or affect in any manner Crescent’s economic interest as a member of the Company pursuant to this Agreement, or the right of Crescent Development to receive the Development Fee provided in the Development Agreement.

 (b)       For purposes of this Agreement, termination of Crescent as Operating Member for
“Cause” shall mean termination due to any one or more of the following: 
 (i)      
any material breach or default by Crescent in its obligations as Operating Member as delegated by the Managing Member under this Agreement, which breach, default or misrepresentation, if the same may be cured by the payment of money, has not been
cured within ten (10) days after written notice to Crescent, or if the same may not be cured by the payment of money, has not been cured within thirty (30) days after written notice to Crescent (provided, however, that (i) if the
breach or default has a material adverse effect on the Company, the Property or CNL, Crescent shall have an additional thirty (30) days to cure such breach if such breach is not curable within such initial thirty (30) day period, so long
as Crescent has commenced cure within such initial thirty (30) day period and continues to prosecute to completion with diligence and continuity the curing thereof within such additional thirty (30) day

  
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period, and (ii) if the breach or default does not have a material adverse effect on the Company, the Project or CNL and if Crescent has commenced and continues to prosecute to completion
with diligence and continuity the cure thereof within such initial twenty thirty (30) day period, then Crescent shall have as much time as is commercially reasonable for curing such breach or default, provided, however, that in no event shall
Crescent have greater than one hundred twenty (120) days in the aggregate from such written notice to so cure) 

(ii)       any act by Crescent beyond the scope of its authority under this Agreement; or 

(iii)       in the event of any fraud, gross negligence or willful misconduct by Crescent against CNL or
the Company; provided, however, that prior to Completion, CNL shall also have the sole and exclusive right, without the concurrence of Crescent, to terminate the delegation of authority of, and remove Crescent as, Operating Member if Developer is
terminated as developer pursuant to the terms of the Development Agreement, which shall constitute additional grounds for termination for Cause. 
 Such removal and termination of authority shall be effective upon delivery of written notice thereof to Crescent, and CNL shall have the right to become, directly or through an Affiliate, or to appoint
and delegate authority to, a substitute Operating Member who shall have such rights and obligations of the Operating Member as may be delegated by the Managing Member. Following removal of Crescent as Operating Member for Cause, Crescent shall cease
to have any rights to approve or consent to any matters under this Agreement. 
 (c)       As a
condition to terminating the delegation of authority of, and removing Crescent as, Operating Member without Cause, (i) CNL must cause the Construction Loan and any other Company Financing for which Crescent or any Crescent Affiliate has any
personal liability to be paid in full and satisfied, and (ii) such removal shall in no form or fashion affect Crescent’s economic interest as a Member of the Company pursuant to this Agreement or the right of the Developer to receive the
Development Fee provided in the Development Agreement. Furthermore, in the event of removal of Crescent as Operating Member for Cause, such removal shall not in any form or fashion affect Crescent’s economic interest as a member of the Company
pursuant to this Agreement, unless such removal for Cause is a result of one of the matters specified in Section 9.5 of this Agreement, and then the economic interest of Crescent as a Member of the Company shall be affected by such removal,
only to the extent provided in Section 9.5 below. 
 6.8      
Development.   The Company shall retain Developer as the developer for the Project, to act as the Company’s sole and exclusive agent to coordinate and supervise the management and administration of the development of the
Project and the construction of the improvements comprising the Project. The Company and Developer shall enter into a Development Agreement in substantially the form set forth as Exhibit C attached hereto. The Developer will cause Completion
of the Project for a price equal to the lesser of (i) the aggregate cost in the Project Budget or (ii) the actual and independently audited cost for development and Completion of the Project. The Developer or another Crescent Affiliate
shall provide all guaranties required in connection with the Construction Loan, including without limitation, a completion guaranty, cost guaranty and/or construction warranty as required by the lender for the

  
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Construction Loan. As compensation for the Developer’s property development services, Company agrees to pay the Developer a total development fee (the “Development Fee”)
equal to three percent (3%) of the aggregate costs in the Project Budget. 
 6.9      
Management Agreement.   Upon Completion, the Company will enter into a property management agreement (“Master Management Agreement”) with the REIT Property Manager to manage the Property. The REIT Property Manager
has entered into a sub property management agreement with the CNL Property Manager, and the Company will request that the CNL Property Manager enter into a sub property management agreement with a Property Manager selected by Member Consent as a
Major Decision (the “Management Agreement”). Should the CNL Property Manager not agree to the proposed Property Manager, or should the Management Agreement terminate for any reason, the Company will request that the CNL Property
Manager enter into an agreement or agreements for management of the Property in accordance with the terms of Section 6.2. 

6.10       Contracts with Affiliates.   Notwithstanding anything to the contrary, CNL
shall have the sole and exclusive authority to enforce and/or exercise the rights of the Company, including consent and approval rights of the Company, under any contract with an Affiliate of Crescent, including the Company’s engagement of the
Developer pursuant to Section 6.8. Notwithstanding anything to the contrary, Crescent shall have the sole and exclusive authority to enforce and/or exercise the rights of the Company, including consent and approval rights of the Company, under
any contract with an Affiliate of CNL other than the Master Management Agreement, as to which CNL shall have the sole and exclusive authority to enforce and/or exercise the rights of the Company. 

6.11       Indemnification of Managing Member and Operating Member.   The Company shall
hold harmless, indemnify and defend each of the Managing Member and the Operating Member and their respective Affiliates from and against any and all claims arising out of or relating to any action taken, omitted or suffered by the Managing Member
or the Operating Member in the performance of their respective duties as Managing Member or Operating Member hereunder, or otherwise in their capacity as the Managing Member or Operating Member, provided that such claim results from a decision or
action which (i) was taken, omitted or suffered by the Managing Member or Operating Member, as applicable, in the reasonable and good faith belief that such decision or action was in the best interest of the Company and within the authority of
the Managing Member or Operating Member, as applicable, under this Agreement and (ii) did not involve (A) fraud, bad faith, gross negligence or willful misconduct on the part of the Managing Member or the Operating Member, as applicable,
or the breach of the fiduciary duties of the Managing Member or Operating Member or of any covenant, agreement or obligation of the Managing Member or Operating Member contained in this Agreement or in any other instrument contemplated by this
Agreement as applicable or (B) the knowing breach of any representation or warranty made by the Managing Member or Operating Member in this Agreement as applicable. 
 6.12       Leasing Guidelines.   The Members shall negotiate in good faith to develop and agree upon initial Leasing Guidelines for the lease up of the
Project as an apartment community following the execution of this Agreement and prior to the execution of any lease within the 

  
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Project. The Members shall negotiate in good faith to amend the Leasing Guidelines as may be necessary from time to time. All Leasing Guidelines shall be approved by Member Consent. 

ARTICLE 7. BOOKS AND RECORDS, AUDITS, TAXES, ETC. 
 7.1       Books; Statements.   In addition to the establishment and maintenance of Capital Accounts pursuant to Section 7.9, the Company shall keep all
books and records required under the Act and such other books and records as shall be determined by the Managing Member. All financial statements of the Company shall be prepared in accordance with GAAP, consistently applied. 

Following the Effective Date: 
 (a)       Following the commencement of at least one lease for any portion of the Project, Operating Member shall prepare or cause to be prepared a statement setting forth
the calculation of Operating Cash Flow for each period of time, but not less often than monthly, at the end of which period the Company is to make periodic distributions of Operating Cash Flow as provided in Section 9.3, and the Company shall
furnish a copy of such cash flow statement to each Member within twenty-one (21) days after the end of such period; 
 (b)       Operating Member shall use commercially reasonable efforts to prepare and submit or cause to be prepared and submitted to each Member as soon as possible after each
month-end, but in no event later than the seventh
(7th) Business Day after each month-end during the
term of this Agreement, an unaudited balance sheet of the Company dated as of the end of the preceding month, together with a profit and loss statement and statement of cash flows as of the end of such month and for the portion of the fiscal year
then ended and a statement of change in each Member’s capital for the month. 
 (c)      
Operating Member shall use commercially reasonable efforts to prepare and submit or cause to be prepared and submitted to each Member as soon as possible after each quarter-end, but in no event later than the seventh (7th) Business Day of each
January, April, July and October during the term of this Agreement, an unaudited balance sheet of the Company dated as of the end of the preceding month, together with a profit and loss statement for the three calendar month period next preceding
with a cumulative calendar year accrual basis profit and loss statement to date, and a statement of change in each Member’s capital for the quarter and year to date; and 
 (d)       As soon as practicable following the end of each fiscal year of the Company, an annual audit shall be conducted by independent certified public accountants of
recognized standing, selected by CNL in accordance with Section 7.6 and retained by the Company, which accounting and/or audit shall cover the assets, properties, liabilities and net worth of the Company, and its dealings, transactions and
operations during such fiscal year, and all matters and things customarily included in such accountings and audits, and a full, detailed certified statement shall be furnished to each Member within sixty (60) days after the end of such fiscal
year, showing on an accrual basis the assets, liabilities, properties, net worth, profits, losses, net income, Operating Cash Flow, changes in the financial condition of the Company for such fiscal year and each Member’s capital in the Company,
and, if applicable, a full and 

  
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complete report of the audit scope and audit findings in the form of a management audit report with an internal control memorandum. 

(e)       In its preparation of the financial statements set forth in this Section 7.1, the Operating
Member shall maintain a system of internal controls necessary to enable CNL to complete CNL’s Sarbanes-Oxley certifications, and shall deliver or cause to be delivered a SAS 70 Type II report for the Property, to the extent prepared by
Operating Member in the ordinary course of its business, as requested by CNL, or shall provide such other certification and documentation and testing of internal controls as is deemed necessary by CNL; provided, however, that to the extent the
testing of the Company’s internal controls or the implementation of additional or alternative internal controls as a result of any such testing causes the Company to incur non de minimus expenses, CNL shall bear responsibility for such
expenses. 
 7.2       Where Maintained.   The books, accounts and records of the
Company shall be at all times maintained at the offices of Crescent or as otherwise specified in the Management Agreement or any successor management agreement in effect with respect to the Property from time to time, and available to the other
Members for review and copying. 
 7.3       Audits.   In addition to the annual
audit of the Company as required under Section 7.1(d), any Member may, at its option and at its own expense, conduct internal audits of the books, records and accounts of the Company. Audits may be on either a continuous or a periodic basis or
both and may be conducted by employees of any Member, or an Affiliate of any Member, or by independent auditors retained by any Member. 
 7.4       Objections to Statements.   Following Completion, any Member shall have the right to object to the statements described in Sections 7.1(a), 7.1(b)
and 7.1(c) by giving notice to the other Members within 45 days after such statement is received by each Member indicating in reasonable detail the objections of such Member and the basis for such objections. If any Member shall fail to give such
notice within said 45-day period, such statement and the contents thereof shall, in the absence of fraud or willful misconduct by the other Members or the independent certified public accountants preparing the statements, be deemed conclusive and
binding upon such party so failing to give such notice subject, in the case of the statements provided for in Sections 7.1(a) and 7.1(b), to the audit provided for in Section 7.1(c). Objections to any statement and any disputes concerning the
findings of, and questions raised as the result of, audits of the Company’s books shall be settled by Member Consent. 

7.5       Tax Returns.   The Company shall elect to be treated and shall file its tax
returns as a partnership for Federal, state, municipal and other governmental income tax and other tax purposes. The Company shall prepare or cause to be prepared, on an accrual basis, all Federal, state and municipal partnership tax returns
required to be filed. Unless otherwise determined by Member Consent, such tax returns shall be prepared by independent certified public accountants selected pursuant to Section 7.6, who shall sign such returns as preparers. The Company shall
submit the returns to each Member for review and approval no later than thirty (30) days prior to the due date of the returns, but in no event later than ninety (90) days after the close of the Company’s taxable year. Each Member
shall notify the other Member(s) upon receipt of any notice of tax examination of the Company by Federal, state or local authorities. 

  
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 7.6       Tax Matters Partner.   CNL is
hereby appointed the “Tax Matters Partner” of the Company for all purposes pursuant to Sections 6221-6231 of the Code, with respect to operations conducted by the Company during the period that CNL is a Member. The Tax Matters
Partner shall comply with the requirements of Section 6221 through 6232 of the Code. The Tax Matters Partner shall have the authority, in its reasonable discretion, to select and appoint, from time to time, independent certified public
accountants to prepare tax returns and annual audited financial statements for the Company, the expense of which shall be borne by the Company. Notwithstanding the foregoing, the Tax Matters Partner shall have no authority to bind the Company or any
other Member. 
 7.7       Tax Policy.   The Company shall make any and all tax
accounting and reporting elections and adopt such procedures as shall be approved by Member Consent. A Member shall be deemed to have consented to any tax election made by the Tax Matters Partner if (a) such election is described in reasonable
detail in a written notice to such Member and (b) such Member shall not have objected in writing to such election within fifteen (15) days following such Member’s receipt of such notice, indicating in reasonable detail the objection
of such Member and the basis for such objection. Any disputes over tax elections shall be resolved by Member Consent. 

7.8       Section 754 Election.   At the request of a Member, the Company shall make
and file a timely election under Section 754 of the Code (and a corresponding election under applicable state or local law) in the event of a transfer of an interest in the Company permitted hereunder or the distribution of property to a Member
to the extent that such election results in a positive basis adjustment to the Company’s property. Any Member or transferee first requesting an election hereunder shall reimburse to the Company the reasonable out-of-pocket expenses incurred by
the Company in connection with such election including any legal or accountants’ fees. Thereafter, each transferee shall reimburse such expenses with respect to adjustments under Section 743 of the Code in the proportion which the interest
of each transferee bears to the sum of the interests of all transferees. 
 7.9       Capital
Accounts.   A separate capital account (each, a “Capital Account”) shall be maintained for each Member in accordance with the rules of Treasury Regulations Section 1.704-1(b)(2)(iv), and this Section 7.9
shall be interpreted and applied in a manner consistent therewith. Whenever the Company would be permitted to adjust the Capital Accounts of the Members pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(f) to reflect
revaluations of Company property, the Company shall (unless otherwise determined by Member Consent) so adjust the Capital Accounts of the Members and the Company shall so adjust the Capital Accounts of the Members to the extent necessary to comply
with the requirements of Code Section 704(b) and the Treasury Regulations thereunder. In the event that the Capital Accounts of the Members are adjusted pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(f) to reflect
revaluations of Company property, (i) the Capital Accounts of the Members shall be adjusted in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain or
loss, as computed for book purposes, with respect to such property, (ii) the Members’ distributive shares of depreciation, depletion, amortization and gain or loss, as computed for tax purposes, with respect to such property shall be
determined so as to take account of the variation between the adjusted tax basis and book value of such property in the same manner as under Code Section 704(c) and (iii) the amount of upward and/or downward

  
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adjustments to the book value of the Company property shall be treated as income, gain, deduction and/or loss for purposes of applying the allocation provisions of Article 8. In the event that
Code Section 704(c) applies to Company property, the Capital Accounts of the Members shall be adjusted in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and
gain and loss, as computed for book purposes, with respect to such property. 
 ARTICLE 8. ALLOCATIONS 

8.1       Allocation of Net Income and Net Loss.   After application of Section 8.3
and Section 8.4, and subject to Section 8.2, any remaining net income or net loss (or items thereof) for the fiscal year or portion thereof shall be allocated among the Members and to their Capital Accounts in such ratio or ratios as may
be required to cause the balances of the Members’ Economic Capital Accounts to be as nearly equal to their Target Balances as possible, consistent with the provisions of Section 8.5. 

8.2       Loss Limitation.   Net loss allocated pursuant to Section 8.1 shall not
exceed the maximum amount of net loss that can be allocated without causing or increasing a deficit balance in a Member’s Adjusted Capital Account. A Member’s “Adjusted Capital Account” balance shall mean such
Member’s Capital Account balance increased by such Member’s obligation to restore a deficit balance in its Capital Account, including any deemed obligation pursuant to the penultimate sentences of Treasury Regulations Sections
1.704-2(g)(1) and 1.704-2(i)(5), and decreased by the amounts described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6). In the event that one but not all of the Members would have a deficit
balance in its Adjusted Capital Account as a consequence of an allocation of net loss pursuant to Section 8.1 in excess of the amount, if any, permitted under the first sentence of this Section 8.2, the limitation set forth in this
Section 8.2 shall be applied by allocating 100% of the remaining net loss to the other Members, in proportion to such positive balances, until the Adjusted Capital Account of such other Member or Members is zero. 

8.3       Minimum Gain Chargebacks and Nonrecourse Deductions.   Notwithstanding any other
provision of this Agreement: 
 (a)       Company Minimum Gain Chargeback.   In
the event there is a net decrease in Company Minimum Gain during a fiscal year, the Members shall be allocated items of income and gain in accordance with Treasury Regulations Section 1.704-2(f). For purposes of this Agreement, the term
“Company Minimum Gain” shall have the meaning for “partnership minimum gain” set forth in Treasury Regulations Section 1.704-2(b)(2), and any Member’s share of Company Minimum Gain shall be determined in
accordance with Treasury Regulations Section 1.704-2(g)(1). This Section 8.3(a) is intended to comply with the minimum gain chargeback requirement of Treasury Regulations Section 1.704-2(f) and shall be interpreted and applied in a
manner consistent therewith. 
 (b)       Nonrecourse Deductions.   Nonrecourse
Deductions shall be allocated to the Members to reflect properly their shares of the Company’s non-recourse debt (as determined under Section 8.8). For purposes of this Agreement, the term “Nonrecourse Deductions” shall
have the meaning set forth in Treasury Regulations Section 1.704-2(b)(1). This Section 8.3(b) 

  
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is intended to comply with Treasury Regulations Section 1.704-2(e) and shall be interpreted and applied in a manner consistent therewith. 

(c)       Member Nonrecourse Debt.   To the extent required by Treasury Regulations
Section 1.704-2(i), any items of income, gain, loss or deduction of the Company that are attributable to a nonrecourse debt of the Company that constitutes Member Nonrecourse Debt (including chargebacks of Member Nonrecourse Debt Minimum Gain)
shall be allocated in accordance with the provisions of Treasury Regulations Section 1.704-2(i). For purposes of this Agreement, the term “Member Nonrecourse Debt” shall have the meaning for partner nonrecourse debt set forth
in Treasury Regulations Section 1.704-2(b)(4), and the term “Member Nonrecourse Debt Minimum Gain” shall have the meaning for partner nonrecourse debt minimum gain set forth in Treasury Regulations Section 1.704-2(i)(2).
This Section 8.3(c) is intended to satisfy the requirements of Treasury Regulations Section 1.704-2(i) (including the partner nonrecourse debt minimum gain chargeback requirement) and shall be interpreted and applied in a manner consistent
therewith. 
 8.4       Qualified Income Offset.   Any Member who unexpectedly
receives an adjustment, allocation or distribution described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) that causes or increases a deficit balance in its Capital Account in excess
of any obligation to restore a deficit balance in its Capital Account (including any deemed deficit restoration obligation pursuant to the penultimate sentences of Treasury Regulations Sections 1.704-2(g)(1) and (i)(5), and adjusted as provided in
Treasury Regulations Section 1.704-1(b)(2)(ii)(d)) shall be allocated items of income and gain in an amount and a manner sufficient to eliminate, to the extent required by the Treasury Regulations, such deficit balance as quickly as
possible. This Section 8.4 is intended to comply with the alternate test for economic effect set forth in Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted and applied in a manner consistent therewith.

 8.5       Code Section 704(b) Allocations.   The allocation provisions
contained in this Article 8 are intended to comply with Code Section 704(b) and the Treasury Regulations promulgated thereunder. 
 8.6       Other Allocation Provisions.   Any elections or decisions relating to the allocations of Company items of income, gain, loss, deduction or credit
shall be made by Member Consent. 
 8.7       Distributions of Nonrecourse Liability
Proceeds.   If the Company makes a distribution to any Member that may be allocable to an increase in Company Minimum Gain pursuant to Treasury Regulations Section 1.704-2(h), then the Company shall, to the extent permitted by
Treasury Regulations Section 1.704-2(h), minimize the amount of such distribution that is allocable to an increase in Company Minimum Gain. 
 8.8       Information as to Allocation of Debt.   Crescent agrees that indebtedness of the Company shall be allocated among the Members under Code
Section 752 so that as much debt as possible is allocated first to Members other than CNL such that the maximum amount that can be allocated in a manner consistent with the provisions of Code Section 752 is so allocated. Managing Member
also agrees to provide CNL with all other information, including taxable income and loss of the Company, the basis of property of the Company, and the highest amount 

  
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of acquisition indebtedness in the twelve month period preceding any sale or disposition of property of the Company, which CNL may reasonably require for purposes of this Article 8. 

8.9       Taxable Year; Fiscal Year.   The taxable year of the Company shall be the
calendar year, unless otherwise required by the Code or, subject to obtaining consent of the Internal Revenue Service, the Members determine otherwise by Member Consent. The fiscal year of the Company shall be the same as its taxable year.

 ARTICLE 9. DISTRIBUTIONS AND ALLOCATIONS 

9.1       Percentage Interests in Company.   The percentage interest of the respective
Members in the Company shall be: 
 CNL:
                        60% 
 Crescent:                   40% 
 The percentage interest of each Member, which is subject to the preferred and priority rights provided for herein and adjustment pursuant to the terms of Section 4.5(d), is hereinafter called such
Members’ “Percentage Interest.” 
 9.2       Certain
Definitions.   The following terms shall have the following meanings when used herein: 

(a)       “Operating Cash Flow”   shall mean, for any period, the net income or
loss of the Company for such period (excluding Extraordinary Cash Flow), as determined in accordance with GAAP, consistently applied and adjusted as provided in items (i) and (ii) below or as otherwise determined by Member Consent:

 (i)       Additions.   There shall be added to such net income or subtracted
from such loss (1) the amount charged for depreciation, amortization or any other deduction not involving a cash expenditure, (2) the amount of Capital Contributions to the Company, to the extent applied to pay items deducted in
determining Operating Cash Flow, (3) the proceeds of short-term borrowings of the Company in the ordinary course of business (including Member Loans), to the extent applied to pay items deducted in determining Operating Cash Flow and interest
received on non-cash consideration received by the Company pursuant to a Major Capital Event, (4) any amount by which cash reserves, which were previously established pursuant to the Operating Cash Budget prior to the accounting period in order
to retain sufficient working capital in the Company or to properly reserve for actual or contingent obligations of the Company or improvements to the Property, have been reduced and (5) the proceeds of business interruption insurance.

 (ii)       Deductions.   There shall be subtracted from such net income or
added to such loss (1) the amount of payments made on account of principal upon mortgage loans secured by Company property and the amount of current interest (to the extent not otherwise taken into account as a deduction in determining
Operating Cash Flow) and principal then due and payable with respect to any other loans made to the Company, including Member Loans, (2) funds disbursed for capital expenditures, leasing commissions, tenant finish or any

  
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other similar expenses that are required to be capitalized and (3) any amount to establish or increase cash reserves pursuant to a determination by Member Consent that such reserve and the
amount thereof is necessary or appropriate in order to retain sufficient working capital in the Company or to properly reserve for other actual or contingent obligations of the Company or improvements to the Property. 

(b)       “Extraordinary Cash Flow”   shall mean the cash receipts of the
Company from a Major Capital Event as reduced by (A) the costs and expenses incurred by the Company in connection with such Major Capital Event, including title, survey, appraisal, recording, escrow, transfer tax and similar costs, brokerage
expense and attorneys, and other professional fees, and amounts spent on reconstruction or repair, (B) funds deposited in reserves pursuant to a determination by Member Consent that each such reserve and the amount thereof is required or
appropriate to provide for actual or contingent obligations of the Company, amounts expected therefrom for capital improvements to the Property, and (C) funds applied to pay or prepay any indebtedness of the Company (including Member Loans) in
connection with such Major Capital Event. To the extent that any amount received pursuant to a Major Capital Event has been set aside as a reserve pursuant to item (B) above in this definition and the Members thereafter determine by Member
Consent that all or a portion of such amount is not required for such purposes, such amount shall be included in Extraordinary Cash Flow when the Members determine by Member Consent that it is no longer necessary or appropriate to retain such amount
as a reserve. Any principal payments on non-cash consideration received pursuant to a Major Capital Event, including promissory notes or deferred payment obligations, shall be deemed to be included in Extraordinary Cash Flow when received in cash by
the Company; provided, however, that, notwithstanding the terms of Section 9.2(a)(i)(3) as determined by Member Consent, such noncash assets may be distributed in accordance with Percentage Interest in kind to the Members, in lieu of cash,
treating the total fair market value of such non-cash assets at the date of distribution as Extraordinary Cash Flow. 

(c)       “Operating Return”   shall mean a cumulative return, compounded
monthly, equal to ten percent (10%) per annum on each Member’s Unreturned Additional Capital and/or Unreturned Initial Capital, as the case may be. 
 (d)       “Unreturned Additional Capital”  shall mean, for each Member, its Additional Capital, reduced by any distributions of Extraordinary Cash
Flow made to such Member pursuant to Section 9.4(e) hereof. 
 (e)       “Unreturned
Operating Return”   shall mean, for each Member, its Operating Return computed with respect to Unreturned Initial Capital or Unreturned Additional Capital, as the case may be, reduced, in the case of the Operating Return computed
with respect to Unreturned Initial Capital by distributions of Operating Return made to such Member pursuant to Sections 9.3(a) and 9.4(b) hereof and reduced, in the case of the Operating Return computed with respect to Unreturned Additional
Capital, by distributions of Operating Return pursuant to Sections 9.3(b) and 9.4(c) hereof. 

(f)       “Unreturned Initial Capital”   shall mean, for each Member, its
Initial Capital, reduced by any distributions of Extraordinary Cash Flow made to such Member pursuant to Section 9.4(d) hereof. 

  
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 (g)       “Cash Flow”   shall
mean, collectively, Operating Cash Flow and Extraordinary Cash Flow. 
 9.3       Operating
Cash Flow Distributions.   Subject to the terms of Section 4.5(d) hereof, the Company shall distribute Operating Cash Flow for each month during the term of the Company in which there is Operating Cash Flow (such distribution to
be made monthly, within twenty-one (21) days after the end of each such month) to the Members, as follows: 

(a)       First, to the Members, pari passu, in accordance with the outstanding balances of the
Members’ respective Unreturned Operating Return on Unreturned Initial Capital, until each Member’s Unreturned Operating Return balance on Unreturned Initial Capital has been reduced to zero; 

(b)       Second, to the Members, pari passu, in accordance with the outstanding balances of the
Members’ respective Unreturned Operating Return on Unreturned Additional Capital, until each Member’s Unreturned Operating Return balance on Unreturned Additional Capital has been reduced to zero; and 

(c)       Thereafter, to the Members pro rata in accordance with their respective Percentage
Interests. 
 9.4       Extraordinary Cash Flow Distributions.   Subject to the
terms of Section 4.5(d) hereof, the Company shall distribute Extraordinary Cash Flow (within five (5) Business Days following a Major Capital Event generating Extraordinary Cash Flow) to the Members, as follows: 

(a)       First, to the Members, in amounts necessary to repay (A) compound and current interest, and
thereafter (B) the outstanding principal balance payable, on Member Loans made by a Member to the Company, which distributions shall be made pro rata to the Members if more than one of the Members have outstanding Member Loans in
accordance with the total principal and interest amounts of Member Loans then outstanding. Without limiting the foregoing, all Member Loans made by a particular Member shall be repaid in the chronological order in which they were made; 

(b)       Second, to the Members, pari passu, in accordance with the outstanding balances of the
Members’ respective Unreturned Operating Return on Unreturned Initial Capital, until each Member’s Unreturned Operating Return balance on Unreturned Initial Capital has been reduced to zero; 

(c)       Third, to the Members, pari passu, in accordance with the outstanding balances of the
Members’ respective Unreturned Operating Return on Unreturned Additional Capital, until each Member’s Unreturned Operating Return balance on Unreturned Additional Capital has been reduced to zero; 

(d)       Fourth, to the Members, pari passu, in proportion to their respective Unreturned Initial
Capital, until each Member’s Unreturned Initial Capital has been reduced to zero; 

  
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 (e)       Fifth, to the Members, pari passu, in proportion to
their respective Unreturned Additional Capital, until each Member’s Unreturned Additional Capital has been reduced to zero; 
 (f)       Sixth, eight-five percent (85%) to the Members, pari passu, in proportion to their respective Percentage Interests, and fifteen percent (15%) to Crescent,
until CNL achieves a fifteen percent (15%) IRR on its aggregate Capital Contributions; 

(g)       Seventh, seventy-five percent (75%) to the Members, pari passu, in proportion to their
respective Percentage Interests, and twenty-five percent (25%) to Crescent, until CNL achieves a twenty percent (20%) IRR on its aggregate Capital Contributions; and 

(h)       Eighth, fifty-five percent (55%) to the Members, pari passu, in proportion to their
respective Percentage Interests, and forty-five percent (45%) to Crescent. 
 9.5      
Loss of Promoted Interest.   Notwithstanding the provisions of Section 9.4, Crescent shall no longer have the right to distributions with respect to its so-called “promoted interest” as such distributions are set
forth in Sections 9.4(f), 9.4(g) and 9.4(h) (and Crescent shall instead receive distributions of Extraordinary Cash Flow under such Sections based on its Percentage Interest) upon the occurrence of any of the following prior to Completion of the
Project: 
 (a)       Upon violation by Crescent of any of the restrictions on transfer as set
forth in Section 10.1 (but subject to the permitted transfers as set forth in Section 10.2); provided that Crescent shall have the same notice and cure rights with respect to such violation as described in Section 6.7(a); or

 (b)       In the event that Developer is terminated as developer pursuant to the terms of the
Development Agreement. 
 Upon the loss of Crescent’s promoted interests set forth in Sections 9.4(f), 9.4(g), and 9.4(h),
such Sections shall be deemed revised to provide that all distributions thereunder shall be made to the Members pro rata in accordance with their Percentage Interests, and Crescent shall no longer be entitled to any distributions under
Section 9.4(f), 9.4(g) or 9.4(h) in excess of a distribution based on its Percentage Interest. Without limiting the foregoing, if CNL terminates and removes Crescent as the Operating Member without Cause in accordance with Section 6.7,
such termination and removal shall not cause Crescent to lose the promoted interests set forth in Sections 9.4(f), 9.4(g), and 9.4(h). 
 9.6       Distributions Upon Liquidation.   In the event any Member’s interest in the Company is “liquidated” within the meaning of Treasury
Regulations Section 1.704-1(b)(2)(ii)(g), then distributions shall be made to such Member in accordance with his, her or its positive Capital Account balance in compliance with Treasury Regulations Section 1.704-1(b)(2)(ii)(b)(2).

  
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 ARTICLE 10. ASSIGNMENT AND OFFER TO PURCHASE 

10.1       Transfers.   Except as expressly provided in this Article 10, no Member, or any
assignee or successor in interest of a Member, may sell, assign, give, pledge, hypothecate, encumber or otherwise transfer, or permit the transfer of, all or any portion of its interest in the Company, or in any Member Loans made by it, or in all or
any part of the assets of the Company, directly or indirectly, whether by operation of law or otherwise. Any purported sale, assignment, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of a Member’s interest in
the Company or any Member Loans made by it not otherwise expressly permitted by this Article 10 shall be null and void and of no force or effect whatsoever. A sale, assignment, gift, pledge, hypothecation, encumbrance or other transfer by CNL of all
or a portion of its Entire Interest in the Company to an Affiliate of CNL Financial Group, LLC (“CFG”) from time to time, or in connection with any corporate merger, acquisition or other combination or the sale or transfer of all or
substantially all of its assets shall be a transfer permitted under this Article 10, and CNL shall not be required to obtain the consent of, nor offer all or any portion of its Entire Interest to be so sold, assigned, given, pledged, hypothecated,
encumbered or transferred to any other Member. No transfers of any direct or indirect interest in CNL, or of CNL’s interest in the Company among funds sponsored or advised by CFG or its Affiliates, shall be restricted in any way. Similarly, a
sale, assignment, gift, pledge, hypothecation, encumbrance or other transfer by Crescent of all or a portion of its Entire Interest in the Company to an Affiliate of Crescent, from time to time, or in connection with any corporate merger,
acquisition or other combination or the sale or transfer of all or substantially all of its assets shall be a transfer permitted under this Article 10, and Crescent shall not be required to obtain the consent of, nor offer all or any portion of its
Entire Interest to be so sold, assigned, given, pledged, hypothecated, encumbered or transferred to any other Member. 

10.2       Intentionally Omitted. 
 10.3       Assumption by Assignee.   Any assignment of all or any portion of an Entire Interest in the Company permitted under this Article 10 shall be in
writing, and shall be an assignment and transfer of all of the assignor’s rights and obligations hereunder with respect to the portion of the Entire Interest transferred, and the assignee shall expressly agree in writing to be bound by all of
the terms of this Agreement and assume and agree to perform all of the assignor’s agreements and obligations existing or arising at the time of and subsequent to such assignment. Upon any such permitted assignment of all or any portion of an
Entire Interest, and after such assumption, the assignor shall be relieved of its agreements and obligations hereunder arising after such assignment with respect to the interest transferred, and, in the case of a transfer of an Entire Interest, the
assignee shall become a Member in place of the assignor. An executed counterpart of each such assignment of all or any portion of an Entire Interest in the Company and assumption of a Member’s obligations shall be delivered to each Member and
to the Company. The assignee shall pay all expenses incurred by the Company in admitting the assignee as a Member. Except as otherwise expressly provided herein, no permitted assignment shall terminate the Company. 

As a condition to any assignment of all or any portion of an Entire Interest, the selling Member shall obtain such consents as may be
required from third parties, if any, or waivers 

  
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thereof. The other Members shall use reasonable efforts to cooperate with the selling Member in obtaining such consents or waivers. 

10.4       Amendment of Certificate of Formation.   If an assignment of an Entire Interest
in the Company shall take place pursuant to the provisions of this Article 10, then unless the Company is dissolved by such assignment, the continuing Members promptly thereafter shall cause to be filed, to the extent necessary, an amendment to the
Company’s Certificate of Formation with all applicable state authorities, together with any necessary amendments to the fictitious or assumed name(s) of the Company in order to reflect such change or take such similar action as may be required.

 10.5       Other Assignments Void. 

(a)       Without limiting the terms of Section 10.1, any Member, other than CNL, that is an
incorporated or unincorporated business entity and any permitted assignee of all or any portion of the Entire Interest of such business entity, shall not permit, without prior CNL Consent, which consent may be withheld in the sole and uncontrolled
discretion of CNL, the direct or indirect admission of any new equity or other beneficial interest holder in such entity, or the issuance or assignment to any person or entity, who is not now an equity or other beneficial interest holder, or an
Affiliate of such an equity interest holder, in such entity, of any kind of interest whatsoever in such entity. If a transfer is permitted under this subsection, such assignee shall pay all expenses incurred by the Company in connection with the
transfer. The foregoing shall not, in any form or fashion, restrict transfers of ownership interests in Crescent Holdings, LLC, a Delaware limited liability company. 
 (b)       Further without limiting the terms of Section 10.1, any Member, other than CNL, that is an incorporated or unincorporated business entity and any permitted
assignee of all or any portion of the Entire Interest of such business entity, shall not permit, without prior CNL Consent, which consent may be withheld in the sole and uncontrolled discretion of CNL, the issuance, sale, assignment, gift, pledge,
hypothecation or encumbrance of any interest in such entity or in any equity or other beneficial interest holder in such entity or any such assignee or any instruments convertible into any interest in such entity or in any equity or other beneficial
interest holder in such entity or any such assignee or the transfer of any right to vote any equity or other beneficial interest in such entity or any such assignee. The foregoing shall not, in any form or fashion, restrict transfers of ownership
interests in Crescent Holdings, LLC, a Delaware limited liability company 
 10.6      
Intentionally Omitted. 
 10.7       Buy-Sell. 

(a)       Any time after Completion of the Project, either Crescent or CNL may make an offer to purchase
the other’s Entire Interest or sell its Entire Interest for such purchase price (which shall be payable in cash at the closing of any such transaction) and on such terms as such Member (the “Proposer”) may propose in a notice
(the “Sale Proposal”) to the other Member (the “Responding Member”). The Sale Proposal shall include a statement as to the 

  
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total purchase price for the Property that formed the basis for the stated purchase price for each Entire Interest. 
 (b)       Within forty-five (45) days after receiving a copy of the Sale Proposal, the Responding Member shall notify the Proposer: 

(i)       that the Responding Member is agreeable to the sale of its Entire Interest to the Proposer in
accordance with the terms set forth in the Sale Proposal; or 
 (ii)       that the Responding
Member elects to purchase the Entire Interest of the Proposer at the Reply Price (as defined below) determined in accordance with Section 10.8 and otherwise in accordance with the terms set forth in the Sale Proposal, as modified in accordance
with Section 10.8(a). Such notification shall be accompanied by a deposit in an amount equal to five percent (5%) of the amount payable to the Proposer pursuant to this Section 10.7(b)(ii) (such amount, together with any interest
earned thereon, being hereinafter called the “Responding Member’s Buy-Sell Deposit”), which amount shall be non-refundable unless the purchase and sale pursuant to this Section 10.7(b)(ii) does not close due to the default
of the Proposer. Notice of election to purchase shall be addressed to the Proposer and shall set forth the time and place of closing which, unless otherwise agreed, shall be at the office of the Company, during usual business hours within sixty
(60) days after the date of the giving of the notice of election under this Section 10.7(b)(ii) to the Proposer. The Responding Member’s Buy-Sell Deposit shall be credited against the total purchase price for the Entire Interest being
purchased pursuant to this Section 10.7(b)(ii); provided, however, that, if the closing shall fail to occur because of a default by the Responding Member, subject to the provisions of Section 10.7(b)(ii) above concerning
refundability of the deposit, the Proposer shall have the right to retain the Responding Member’s Buy-Sell Deposit as liquidated damages, it being agreed that in such instance the Proposer’s actual damages would be difficult, if not
impossible, to ascertain. 
 (c)       The purchase and sale pursuant to Section 10.7(b)(i)
or (ii) shall take place within forty-five (45) days following the Responding Member’s election pursuant to Section 10.7(b). The closing shall take place during normal business hours at the office of the Company. Failure of the
Responding Member to respond to the Sale Proposal within the forty-five (45) day period referenced in Section 10.7(b) shall be deemed an election to sell its Entire Interest under Section 10.7(b)(i). Each Member shall pay a portion of
any transfer or similar taxes due in connection with the sale of an Entire Interest under this Section 10.7 in proportion to their respective Percentage Interest. 
 (d)       Intentionally Omitted. 

10.8       Provisions Generally Applicable to Sales.   The following provisions shall be
applicable to sales under Sections 10.7 and/or 13.2, as indicated: 
 (a)       If, under the
provisions of Section 10.7, either party (the “Offering Party”) makes an offer (the “10.7 Offer”) to the other party (the “Other Party”) to purchase its Entire Interest, the purchase price (the
“Reply Price”) payable by the Other Party to the Offering Party, if the Other Party exercises its election to purchase the Entire Interest of the Offering Party shall be determined as follows: 

  
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 (i)       In the event this Section 10.8(a) is triggered
in the context of Section 10.7, there shall be determined the “Value” of the Company, after payment of debts, liabilities and expenses, based upon the amount of the 10.7 Offer. The Value shall equal the total amount which would
have been available for distribution and payment by the Company to all of the Members under Section 9.4, after payment of debts, liabilities and expenses under Sections 13.5(a) and 13.5(b), if the Property were sold for the price set forth in
the 10.7 Offer. 
 (ii)       After determining the Value, there shall then be determined the
amount which would have been distributable and payable to the Offering Party under Section 9.4 if all of the Company’s Property had been sold for an amount equal to the Value, plus all debts, liabilities and expenses of the Company
referenced above. Such amount which would have been distributable to the Offering Party equals the Reply Price. 

(b)       For purposes of any sale of an Entire Interest of a Member, the purchase price associated with
such sale shall be adjusted to reflect assets and liabilities of the Company not reflected in the Company’s financial statements available to all Members at the time of the notice of election (the “Notice Date”). The purchase
price, as so adjusted, shall be determined ten (10) Business Days prior to closing and shall be subject to such post-closing adjustments as the circumstances may require. The purchase price, as so adjusted, shall be paid, at the selling
Member’s option, in cash, by certified check drawn to the order of the selling Member, or by wire transfer of immediately available funds to the seller’s account. All prorations of real estate taxes, rents and other items to be prorated
shall be made as of the date of sale. All transfer taxes, title insurance policies, surveys and recording fees shall be paid for by the party usually charged with such payment under local custom. 

(c)       On payment of the purchase price for an Entire Interest, the purchasing Member shall, at its
option, either (i) deliver a release of the selling Members from all liability, direct or contingent, by all holders of all Company debts, obligations or claims against the Company for which any Member is or may be personally liable, except for
any debts, obligations or claims which are fully insured by public liability insurer(s) acceptable to the selling Members, or (ii) cause all such debts, obligations or claims to be paid in full at the closing, or (iii) deliver to the
selling Members an agreement in form and substance satisfactory to the selling Members to defend, indemnify and save the selling Members harmless from any actions, claims or loss arising from any debt, obligation or claim of the Company arising
prior to or after the date of sale, or (iv) a combination of the foregoing. The foregoing notwithstanding, in the event that Crescent is not the purchasing Member, the selling Member must cause the Construction Loan and any other Company
Financing respecting which Crescent or a Crescent Affiliate has any guaranty liability to be paid in full at the closing. The Company shall provide the Members such tax information and reporting as may be required by the Members in connection with
such sale within a reasonable period following such sale. 
 (d)       All Members (including the
selling Members) shall be entitled to any distributions of Operating Cash Flow from the Company made prior to the closing. 

(e)       If the Property is damaged by fire or other casualty, or if any entity possessing the right of
eminent domain shall give notice of an intention to take or acquire a substantial part of the Property, and such damage occurs, or such notice is given, between the 

  
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Notice Date and the closing date of the purchase of an Entire Interest in the Company, the following shall apply: 
 (i)       If the Property is damaged by an insured casualty not to exceed five hundred thousand dollars ($500,000) (or an uninsured casualty not resulting in damage in excess
of fifty thousand dollars ($50,000)) or if the taking or acquisition shall not result in a substantial (in excess of two percent (2%)) reduction in the income producing capacity of the Property, then the purchasing Member shall be required to
complete the transaction and accept an assignment of the insurance or condemnation proceeds. 

(ii)       If the Property is damaged by an uninsured casualty resulting in damage in excess of fifty
thousand dollars ($50,000), or if the taking or acquisition shall result in a substantial (in excess of two percent (2%)) reduction in the income producing capacity of the Property, or if there is an insured casualty in excess of $500,000, then
the purchasing Member shall have the option (to be exercised within 30 days from the date of the occurrence of the casualty or receipt of the notice of condemnation) to either (x) accept the Property in an “as is” condition
together with any insurance proceeds, settlements and awards, or (y) cancel the purchase and have its deposit returned. 

In the event that the taking or acquisition shall result in a substantial reduction in the income producing capacity of the Property,
notwithstanding the election of the purchasing Member pursuant to subparagraph (ii) above, CNL or Crescent, in its capacity as selling Member, as applicable, shall also have the right to cancel the purchase within fifteen (15) days from
the date of the receipt of the notice of condemnation. In the event that the purchase is canceled by either Member pursuant to the above provisions, the terms of this Agreement shall remain in effect and continue to be binding on the parties.

 (f)       At the closing of the sale of the Entire Interest of a Member, the selling Members
shall execute an assignment of its interest in the Company, free and clear of all liens, encumbrances and adverse claims, which assignment shall be in form and substance reasonably satisfactory to the purchasing Member, and such other instruments as
the purchasing Member shall reasonably require to assign the Entire Interest of the selling Members to such person or entity as the purchasing Member may designate. For any sale or transfer under this Article 10, the purchasing Member may designate
the assignee of the Entire Interest, which assignee need not be an Affiliate of the purchasing Member, subject to the other Members’ reasonable consent. 
 (g)       In the event of a purchase and sale pursuant to Section 13.2, the Company shall be dissolved and terminated as of the closing date of the sale, and on the
closing date the Members shall execute and file a Certificate of Cancellation of the Company’s Certificate of Formation. The Members shall cooperate in taking all steps necessary in connection with the dissolution and termination of the
Company. 
 (h)       It is the intent of the parties to this Agreement that the requirements or
obligations, if any, of one Member to sell its Entire Interest to another Member shall be enforceable by an action for specific performance of a contract relating to the purchase of real property or an interest therein. In the event that the selling
Member(s) shall have created or suffered any unauthorized liens, encumbrances or other adverse interests against either the 

  
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Property or the selling Member’s interest in the Company, the purchasing Member shall be entitled either to an action for specific performance to compel the selling Member(s) to have such
defects removed, in which case the closing shall be adjourned for such purpose, or, at the purchasing Member’s option, to an appropriate offset against the purchase price, which offset shall include all reasonable costs associated with
enforcement of this Section. 
 (i)       Each Member agrees that it will negotiate in good faith
a purchase and sale agreement in the event of an election by a Member to purchase the other Member’s Entire Interest within ten (10) business days following the Notice Date. 

(j)       For purposes of this Section 10.8, all references to a “Member” shall mean
Crescent or CNL as the context permits and all references to “the Members” shall mean Crescent, and/or CNL as the context permits. 
 10.9       Compliance with ERISA and State Statutes on Governmental Plans. 
 (a)       Not less than five (5) Business Days before each transfer of a direct or indirect interest in any Member (other than CNL or Crescent Parent), such Member shall
cause the proposed transferee to deliver to CNL a certification in substantially the form of Exhibit E attached hereto and made a part hereof. 
 (b)       On the closing or consummation of a Member Loan: 
 (i)       Crescent shall deliver to CNL a certification in substantially the form of Exhibit E; and 

(ii)       CNL shall deliver to Crescent a certification in substantially the form of Exhibit F.

 (c)       Intentionally Omitted. 

(d)       Anything else in this Agreement contained to the contrary notwithstanding,
CNL shall have up to fifteen (15) days following the receipt by it of a certification by a Member or a proposed transferee provided for in this Section 10.9 to notify such Member that it has determined that a proposed transfer by such
Member of its Entire Interest or a proposed transfer of the Property would result in a transfer to a person other than an Acceptable Person and/or in a Plan Violation. If CNL notifies such Member that any such proposed transaction would constitute a
Plan Violation, then the proposed transaction shall not be consummated and any attempt to do so shall be void. If, within such fifteen (15) day period, CNL notifies such Member that it has determined that no Plan Violation will result from the
proposed transaction, then the proposed transaction may be consummated; provided, however, that such transaction must be consummated no later than the twentieth (20th) day after the delivery to such Member by CNL of a notice that it has determined the proposed transaction will
not result in a Plan Violation or after the expiration of the fifteen (15) day period referred to in this Section 10.9(d), as the case may be. Additionally, in the event that any certification by CNL or a Member or a proposed transferee
contains a material misrepresentation or omission, then, in such event, notwithstanding CNL’s or such Member’s lack of objection or deemed lack of objection thereto, the proposed transaction shall not be consummated and, if it is

  
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consummated, such transaction shall be void. Each (i) breach of representation or warranty given in connection with this Section 10.9, and (ii) violation of this Section 10.9,
or of any other provision of this Agreement or the Purchase Agreement relating to ERISA or Plan Violations will constitute a default entitling any Member not in such violation to cause the dissolution of the Company. 

(e)       Each Member shall indemnify CNL and defend and hold CNL harmless from and against all loss,
cost, damage and expense that CNL may incur, directly or indirectly, as a result of a (i) default by such Member under this Section 10.9, (ii) a breach of a representation or warranty given by such Member under this Section 10.9,
or (iii) any material misstatement or omission in a certification by such Member or proposed transferee of such Member which is given to CNL pursuant to this Section 10.9. The liability, excise taxes, penalties, interest, loss, cost,
damage and expense will include attorney’s fees and costs incurred in the investigation, defense and settlement of claims and losses incurred in 
 (i)       correcting any Plan Violation, 

(ii)       the sale of a prohibited Company interest, or 

(iii)       obtaining any individual exemption for a Plan Violation that may be required, in CNL’s
sole discretion. This indemnity shall survive (x) the sale of the Property or of the indemnifying Member’s Entire Interest and (y) termination of this Agreement. 

(f)       The Company will not enter into any agreements, or suffer any conditions, that CNL determines,
in its reasonable judgment, would result in a Plan Violation. At any Member’s request, CNL shall deliver a written notice of each such determination to such Member together with an explanation of the reasons for the determination. 

(g)       Upon any Member’s reasonable request, the Members agree to cooperate with each other’s
efforts to discover and correct Plan Violations. 
 ARTICLE 11. DISSOLUTION OR BANKRUPTCY OF A MEMBER 

11.1       Dissolution or Merger.   If Crescent shall be dissolved, or merged with or
consolidated into another corporation or other entity, or if all or substantially all of its assets shall be sold, or transferred, then unless such dissolution, merger, consolidation, sale or transfer is expressly permitted under Article 10, such
dissolution, merger, consolidation, sale or transfer shall, at CNL’s election, be a dissolution of the Company, and CNL shall be the “Liquidating Member” in the dissolution of the Company. If CNL shall be dissolved, or merged with or
consolidated into another corporation or other entity, or if all or substantially all of its assets shall be sold, or transferred, then unless such dissolution, merger, consolidation, sale or transfer is expressly permitted under Article 10, such
dissolution, merger, consolidation, sale or transfer shall, at Crescent’s election, be a dissolution of the Company, and Crescent shall be the “Liquidating Member” in the dissolution of the Company. 

  
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 11.2       Bankruptcy, etc.   In the event:

 (a)       any Member shall file a voluntary petition in bankruptcy or shall be adjudicated a
bankrupt or seek any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief for itself under the present or any future Federal bankruptcy code or any other present or future applicable Federal, state, or
other statute or law relative to bankruptcy, insolvency, or other relief for debtors, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver, conservator or liquidator of said Member or its interest in the Company (the
term “acquiesce” includes but is not limited to the failure to file a petition or motion to vacate or discharge any order, judgment or decree providing for such appointment within sixty (60) days after the appointment); or

 (b)       a court of competent jurisdiction shall enter an order, judgment or decree approving
a petition filed against any Member seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the present or any future Federal bankruptcy code or any other present or future applicable
Federal, state or other statute or law relating to bankruptcy, insolvency, or other relief for debtors, and said Member shall acquiesce in the entry for such order, judgment or decree (the term “acquiesce” includes but is not
limited to the failure to file a petition or motion to vacate or discharge such order, judgment or decree within ten (10) days after the entry of the order, judgment or decree) or such order, judgment or decree shall remain unvacated and
unstayed for an aggregate of ninety (90) days (whether or not consecutive) from the date of entry thereof, or any trustee, receiver, conservator or liquidator of said Member or of all or any substantial part of said Member’s property or
its interest in the Company shall be appointed without the consent or acquiescence of said Member and such appointment shall remain unvacated and unstayed for an aggregate of ninety (90) days (whether or not consecutive); or 

(c)       any Member shall admit in writing its inability to pay its debts as they mature; or 

(d)       any Member shall give notice to any governmental body of insolvency, or pending insolvency, or
suspension or pending suspension of operations; or 
 (e)       any Member shall make an
assignment for the benefit of creditors or take any other similar action for the protection or benefit of creditors; 
 then
such event shall, at the election of any other Member, cause the dissolution of the Company and such electing Member shall be the Liquidating Member. 
 11.3       Reconstitution.       Notwithstanding the provisions of Section 11.1 and 11.2, the remaining Member may, within ninety
(90) days of any event described in this Article 11, elect to (a) continue the Company or (b) transfer the assets of the Company to a newly organized entity and accept ownership interests in such entity in exact proportion to its
interests in the Company at the time of dissolution. An appropriate amendment to or cancellation of the Certificate of Formation and all other filings required by law shall be made in accordance with any action taken pursuant to this
Section 11.3. 

  
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 ARTICLE 12. CROSS-DEFAULT 

Any termination for Cause by the Managing Member of the delegation of authority given to Crescent as the Operating Member in accordance
with Section 6.7 of this Agreement shall give CNL, in its sole and absolute discretion, the right to terminate the Developer as developer under the Development Agreement, and any termination of Developer as developer pursuant to the terms of
the Development Agreement shall give CNL the right to terminate the delegation of authority given to Crescent as Operating Member in accordance with Section 6.7 of this Agreement. 

ARTICLE 13. DISSOLUTION 
 13.1       Winding Up by Members.   Upon dissolution of the Company by expiration of the term hereof, by operation of law, by any provision of this Agreement
or by agreement between the Members, the Company’s business shall be wound up and all its assets distributed in liquidation. In such dissolution, except as otherwise expressly provided in Articles 10 or 11, the Members shall be co-liquidating
Members and shall continue to act by Member Consent. In such event the Members shall have rights acting by Member Consent to wind up the Company and shall proceed to cause the Company’s property to be sold and to distribute the proceeds of sale
as provided in Section 13.5. Except in respect of (i) all assets on which a single, non-severable mortgage or other lien will be in effect after such distribution, and (ii) any assets which the Members shall determine are not readily
severable or distributable in kind, the Members, to the extent that liquidation of such assets is not required to fulfill the payments, if any, under subsections (a) and (b) of Section 13.5 and Section 9.4(a) shall, if they
agree, have the right to distribute, in kind, all or a portion of the assets of the Company to the Members. 

13.2       Winding Up by Liquidating Member. 

(a)       In a dissolution pursuant to either Section 4.5(d)(iii) or Articles 10 and 11, the
Liquidating Member shall be as therein provided and such Liquidating Member shall have the right to: 

(i)       Wind up the Company and cause the Company’s assets to be sold and the proceeds of sale
distributed as provided in Section 13.5; or 
 (ii)       Notwithstanding anything to the
contrary contained in this Agreement, cause the assets of the Company to be appraised in accordance with Section 13.2(b) and at its option, purchase the Entire Interests of the other Members in accordance with Section 13.2(b). 

(b)      (i)      The Liquidating Member, within 30 days after the
commencement of the dissolution of the Company, or the Non-Failing Member at any time during the period set forth in Section 4.5 (such Member giving the notice being referred to herein as the “Electing Member”) may give notice
(the “Appraisal Notice”) to the other Members electing to have the “Fair Market Value” of the Company’s assets determined by appraisal pursuant to Section 13.2(b)(ii). The fees and expenses of such appraisers
shall be borne by the Company. The Electing Member shall have the option, by notice given to the other Members within 30 days after receipt of the determination of “Fair Market Value” pursuant to Section 13.2(b)(ii), to

  
 H-43

 
purchase each other Member’s Entire Interest at a price equal to the amount which would have been distributable and payable to the other Member in accordance with the provisions of
Section 9.4 if all of the Company’s assets had been sold for an amount equal to such appraised value and any debts, liabilities and expenses which would have been payable by the Company pursuant to Sections 13.5(a), (b) and
Section 9.4 out of the proceeds of such sale were deducted from the appraised value. Such option may be exercised by the Electing Member within forty-five (45) days after receipt of the determination of “Fair Market Value”
pursuant to Section 13.2(b)(ii) by notice to the other Members. If after the receipt of the determination of “Fair Market Value” pursuant to Section 13.2(b)(ii), the Electing Member elects not to exercise the option to purchase
the other Members’ Entire Interests pursuant to this Section, then the Electing Member shall have all of its rights under Section 4.5 or this Section 13.2, as applicable, as if the Appraisal Notice had not been given. All of the
provisions of Section 10.8 shall apply to a purchase under this Section 13.2(b), except that for the purposes of this Section 13.2(b), any adjustments required pursuant to Section 10.8 shall be applicable to any events and/or
liabilities or income which were not included in determining the Fair Market Value. 
 (ii)      
If the fair market value (the “Fair Market Value”) of the assets of the Company is required for purposes of Section 13.2(b)(i), such Fair Market Value, if not otherwise agreed upon by the Members, shall be determined as set
forth in this Section 13.2(b)(ii). All appraisers referred to herein shall be real estate appraisers which are members of the Chapter of the American Institute of Real Estate Appraisers for the state in which the Property is located for at
least seven (7) years. As used herein, Fair Market Value is the fair market value of all the assets of the Company. Each of CNL and Crescent shall select one (1) appraiser. In the event that either party fails to select an appraiser within
thirty (30) days after notice of the exercise of an option or election requiring a valuation, then such party’s appraiser shall be selected by the other party from a list of no fewer than five (5) appraisers compiled and approved by
Member Consent (the “List”). After the selection, each appraiser shall independently determine the gross fair market value of the assets of the Company. If the separate appraisals differ, the Members shall have a period of ten
(10) days after receipt of the appraisals to agree on the Fair Market Value. In the event the Members cannot agree on the Fair Market Value in accordance with the preceding sentence, the two appraisers referred to therein shall within ten
(10) days after the expiration of the ten day period described in the preceding sentence select a third appraiser. In the absence of such a selection, the third appraiser shall be selected by the Chapter of the American Institute of Real Estate
Appraisers for the state in which the Property is located. The third appraiser shall decide which of the two appraisals established by the appraisers in accordance with this Section constitutes the Fair Market Value, and such decision shall be
conclusive and binding on all Members. 
 13.3       Offset for Damages.   In the
event of dissolution resulting from an event described in Article 11, the Liquidating Member shall be entitled to deduct from the amount payable to the other Member pursuant to Section 13.2(a) or (b), Section 13.4 or Section 13.5, the
amount of damages, including reasonable attorneys’ fees and disbursements, incurred by the Liquidating Member proximately resulting from any such event, only if and as established by a court order. 

13.4       Distributions of Operating Cash Flow.   Subject to Section 13.5 hereof as
to proceeds of liquidation, upon the dissolution of the Company for any reason during the period of liquidation and until termination of the Company, the Members shall continue to receive the 

  
 H-44

 
Operating Cash Flow and to share profits and losses for all tax and other purposes as provided elsewhere in this Agreement. 

13.5       Distributions of Proceeds of Liquidation.   For purposes of this
Section 13.5, “proceeds of liquidation” shall equal cash available for distribution, net of debts secured by liens on the Property, provided that neither the Company nor the Members shall be personally liable on, or they shall
be released from, such debts. The proceeds of liquidation shall be applied in the following order of priority: 

(a)       First.   To the payment of: 

(i)       debts and liabilities of the Company, except Member Loans, and 

(ii)       expenses of liquidation. 

(b)       Second.   To the setting up of any reserves which the Liquidating Member or
Members, as the case may be, may deem necessary for any contingent or unforeseen liabilities or obligations of the Company or of the Members arising out of or in connection with the Company. Such reserves may be deposited by the Company in a bank or
trust company acceptable to the Liquidating Member or Members, as the case may be, to be held by it for the purpose of disbursing such reserves in payment of any of the aforementioned liabilities or obligations, and at the expiration of such period
as the Liquidating Member or Members, as the case may be, shall deem advisable, distributing the balance, if any, thereafter remaining, in a manner hereinafter provided. 
 (c)       Third.   Any balance remaining shall be paid and distributed as provided in Section 9.4, as the provisions in Section 9.4 have been
adjusted by other provisions of this Agreement. 
 13.6       Orderly
Liquidation.   A reasonable time shall be allowed for the orderly liquidation of the assets of the Company and the discharge of liabilities to creditors so as to enable the Members to minimize the losses normally attendant upon a
liquidation. 
 13.7       Financial Statements.   During the period of winding
up, the Company’s then independent certified public accountants shall prepare and furnish to each of the Members, until complete liquidation is accomplished, all the financial statements provided for in Section 7.1. 

13.8       Restoration of Deficit Capital Accounts.   At no time during the term of the
Company shall a Member with a deficit balance in its Capital Account have any obligation to the Company or to another Member or to any other person to restore such deficit balance. 

ARTICLE 14. MEMBERS 
 14.1       Liability.   A Member shall not be personally liable for the debts, liabilities or obligations of the Company, except to the extent provided in
the Act, including for distributions received in violation of the Act or which are otherwise required to be returned pursuant to the terms of the Act. 

  
 H-45

 ARTICLE 15. NOTICES 

15.1       In Writing; Address.   All notices, elections, offers, acceptances, demands,
consents, waivers of condition and reports (collectively “notices”) provided for in, permitted under, required under or to be effective under, this Agreement shall be in writing and shall be given to the Company, CNL or Crescent at
the address set forth below or at such other address as the Company or any of the parties hereto may hereafter specify in writing. 
  

			
		
	 CNL:
	  	 GGT Crescent Alexander Holdings, LLC
 CNL Center at City Commons
 450 South Orange Avenue

Orlando, Florida 32801
 Attention: Steven D.
Shackelford, Chief Financial Officer

		
	 with a copy to:
	  	 GGT Crescent Alexander Holdings, LLC
 CNL Center at City Commons
 450 South Orange Avenue

Orlando, Florida 32801
 Attention: Holly J.
Greer, Esq., General Counsel

		
	 with a copy to:
	  	 Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
 450 South Orange Avenue, Suite 800
 Orlando, Florida 32801

Attention: Joaquin E. Martinez, Esq.

		
	 Crescent:
	  	 c/o Crescent Resources, LLC

227 W. Trade Street
 Suite 1000

Charlotte, NC 28202
 Attention: Brian J. Natwick,
President - Multifamily Division

		
	 with a copy to:
	  	 Holt Ney Zatcoff & Wasserman, LLP
 100 Galleria Parkway, Suite 1800
 Atlanta, GA 30339

Attention: Sanford H. Zatcoff, Esq.

 All notices hereunder shall be in writing to be deemed effective and shall be deemed sufficiently given
or served for all purposes when delivered (i) by personal service or courier service, and shall be deemed given on the date when signed for or, if refused, when refused by the person designated as an agent for receipt of notices, (ii) by
nationally-recognized overnight courier that produces a receipt of delivery and shall be deemed given when placed into the hands of such courier for delivery on the next business day, or (iii) mailed by United States registered or certified
mail, return receipt requested, postage prepaid, deposited in a United States post office or a depository for the receipt of mail regularly maintained by the post office and if so mailed, then such notice or other communication shall be deemed to
have been received by the addressee on the third business day following the date of such mailing. For purposes hereof, notices may be given by the parties hereto or by their attorneys identified above. 

  
 H-46

 A copy of any notice or any written communication from the Internal Revenue Service to the
Company shall be given to each Member at the addresses provided for above. 
 15.2      
Copies.   A copy of any notice, service of process, or other document in the nature thereof, received by either Member from anyone other than the other Member and pertaining to the Company or the Property, shall be delivered by the
receiving Member to the other Member as soon as practicable. 
 ARTICLE 16. MISCELLANEOUS 

16.1       Additional Documents and Acts.   In connection with this Agreement, as well as
all transactions contemplated by this Agreement, each Member agrees to execute and deliver such additional documents and instruments, and to perform such additional acts, as may be necessary or appropriate to effectuate, carry out and perform all of
the terms, provisions and conditions of this Agreement and all such transactions. All approvals of either party hereunder shall be in writing. 
 16.2       Interpretation.   This Agreement and the rights and obligations of the Members hereunder shall be interpreted in accordance with the laws of the
State of Delaware. 
 16.3       Entire Agreement.   This instrument contains all
of the understandings and agreements of whatsoever kind and nature existing between the parties hereto with respect to this Agreement and the rights, interests, understandings, agreements and obligations of the respective parties pertaining to the
Company. 
 16.4       References to this Agreement.   Numbered or lettered
articles, sections and subsections herein contained refer to articles, sections and subsections of this Agreement unless otherwise expressly stated. 
 16.5       Headings.   All headings herein are inserted only for convenience and ease of reference and are not to be considered in the construction or
interpretation of any provision of this Agreement. 
 16.6       Binding
Effect.   Except as herein otherwise expressly stipulated to the contrary, this Agreement shall be binding upon and inure to the benefit of the parties signatory hereto, and their respective distributees, successors and assigns.

 16.7       Counterparts.   This Agreement may be executed in any number of
counterparts, each of which shall for all purposes constitute one agreement which is binding on all of the parties hereto. 

16.8       Confidentiality.   The terms and provisions of this Agreement shall be kept
confidential and shall not, without the other Member’s prior written consent (which shall not be unreasonably withheld), be disclosed in writing by a Member or by a Member’s agents, managers, members, representatives and employees to any
person or entity, except to the extent required by law, and to existing or prospective construction lenders, contractors, tenants, or investors in a Member, accountants of a Member or CNL therein and other advisors to a Member, in each case to the
extent each of such parties is bound by a confidentiality obligation 

  
 H-47

 
substantially on the terms set forth in this Section, and except to the extent reasonably necessary to accomplish the transaction contemplated hereby. No publicity, media communications, press
releases or other public announcements concerning the terms and provisions of this Agreement or the transactions contemplated hereby shall be issued or made by any Member without the prior written consent of the other Members, which consent shall
not be unreasonably withheld, conditioned or delayed, except if a Member is required to make a public announcement or disclosure under applicable law, in which case such Member shall provide the other Members with the form and content of such
disclosure within a reasonable amount of time prior to its release (to the extent possible under the circumstances) and shall consider in good faith all comments provided by the other Members; provided, however, that CNL shall not be required to
provide copies of disclosures to be made or proposed to be made by CNL in periodic reports and other filings required by the applicable federal securities laws. 
 16.9       Amendments.   This Agreement may not be amended, altered or modified except by a written instrument signed by all parties, provided, however, that
Crescent and CNL shall agree to any amendments of this Agreement reasonably required by CNL in order to comply with ERISA or related provisions of the Code which do not adversely affect the economic or voting interests of the other Members hereunder
and any amendments reasonably required by CNL in order to comply with REIT requirements; provided, that CNL will pay for all reasonable costs and expenses (including reasonable attorneys’ fees) of the other Members related to any such
amendments. 
 16.10       Exhibits.   All exhibits and schedules annexed hereto
are expressly made a part of this Agreement, as fully as though completely set forth herein, and all references to this Agreement herein or in any of such exhibits or schedules shall be deemed to refer to and include all such exhibits or schedules.

 16.11       Severability.   Each provision hereof is intended to be severable
and the invalidity or illegality of any portion of this Agreement shall not affect the validity or legality of the remainder. 

16.12       Qualification in Other States.   In the event the business of the Company is
carried on or conducted in any locations in addition to the state in which the Property is located, then the Members agree that the Company shall exist under the laws of each state or district in which business is actually conducted by the Company,
and they severally agree to execute such other and further documents as may be required or requested in order that the Members legally may qualify the Company in such states and districts to the extent possible. A Company office or principal place
of business in any state or district may be designated from time to time by Member Consent. 

16.13       Forum.   Any action by one or more Members against the Company or by the
Company against one or more Members which arises under or in any way relates to this Agreement, actions taken or failed to be taken or determinations made or failed to be made by the Members or relating to the Company including transactions
permitted hereunder or otherwise related in any way to the Company, may be brought only in the state courts of the State of North Carolina or the United States District Court for the Western District of North Carolina. Each

  
 H-48

 
Member hereby consents to the jurisdiction of such courts to decide any and all such actions and to such venue. 
 16.14       No Brokerage.   The Members represent and warrant to each other that they have not dealt with any brokers, investment bankers, consultants or
other third parties in the negotiation of this Agreement and the transactions contemplated herein. Each Members further agrees to indemnify, defend and hold the other harmless from and against any liability, claim, damage, cost or expense (including
reasonable attorney’s fees) arising out of or in connection with the claims for commissions or any other fees due in connection with this Agreement and the transactions contemplated herein arising from the indemnifying Member’s actions.

 16.15       Tax Compliance.   Crescent represents and warrants that
(i) Crescent is wholly-owned by Crescent Multifamily Holdings, LLC, a Delaware limited liability company, the only manager and voting member is Crescent Multifamily Holdings, LLC; (ii) Crescent is a disregarded entity for Federal income
tax purposes, and (iii) Crescent’s U.S. employer identification number is 37-1666450. Except with respect to permitted transfers under Section 10.1, Crescent covenants that it will not take or allow any action (or fail to take any
action, as the case may be) that would cause the representations in this Section 16.15 to fail to be true throughout the term of this Agreement. 
 (Remainder of page intentionally left blank) 

  
 H-49

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

									
	CRESCENT:
		
		 	CRESCENT ALEXANDER VILLAGE I, LLC,
		 	a Delaware limited liability company
				
		 		 	By:	 	Crescent Resources, LLC,
		 		 		 	a Georgia limited liability company,
		 		 		 	its manager
					
		 		 		 	By:	 	 /S/ Brian J. Natwick

		 		 		 		 	Brian J. Natwick,
		 		 		 		 	President-Multifamily Division

  
 H-50

 
					
	CNL:	 		 	
		
		 	 GGT CRESCENT ALEXANDER HOLDINGS, LLC,
 a Delaware limited liability company

		
		 	By:      /S/ Robert A. Bourne               
                     
		 	Name: Robert A.
Bourne                                        
  
		 	Title:   President                      
                                  

  
 H-51

 EXHIBIT A 

[Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT B 
 Description of Land 

[Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT C 
 Development Agreement 

[Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT D 
 Insurance Certificates 

[Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT E 
 Member ERISA Certificate 

[Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT F 
 CNL ERISA Certificate 

[Omitted as not necessary to an understanding of the Agreement] 

  
 H-1

 EXHIBIT G 

PROJECT BUDGET 
 [Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT
H 
 PRE-DEVELOPMENT COSTS 
 [Omitted as not necessary to an understanding of the Agreement] 

  
 H-2Development Agreement

 Exhibit 10.2 
 DEVELOPMENT AGREEMENT 
 Between 

CRESCENT DEVELOPMENT, LLC, 
 a Delaware limited liability company, as Developer 
 And 

GGT CRESCENT ALEXANDER NC VENTURE, LLC, 
 a Delaware limited liability company, as Owner 
 Dated: November 27,
2012 

 DEVELOPMENT AGREEMENT 

THIS DEVELOPMENT AGREEMENT (this “Agreement”), is entered into as of the 27th day of November, 2012 by and between GGT
Crescent Alexander NC Venture, LLC, a Delaware limited liability company (together with its successors and assigns, “Owner”) and Crescent Development, LLC, a Delaware limited liability company (“Developer”).

 Article 1. Recitals and Definitions 
 1.1      Recitals.  Owner owns or will own land comprising approximately 22.43 acres, located at the intersection of Senator Royall Drive and Mallard Creek
Church Road in Mecklenburg County, North Carolina more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the “Property”), and Owner desires to develop an apartment complex
on the Property which will contain 320 Class A rental apartment units and related amenities (the “Project”) and be known as “Circle Alexander Village”. Owner desires to retain Developer as the developer for the
Project subject to and in accordance with the terms hereof, and Developer wishes to serve as Developer of the Project subject to and in accordance with the terms hereof. 
 1.2      Definitions.  The terms defined in this Section 1.2 shall, for the purposes of this Agreement, have the meanings herein specified unless the
context expressly or by necessary implication otherwise requires: 
 “Affiliate” shall mean, for any party,
(i) any entity directly or indirectly controlled by, controlling or under common control with such party, or (ii) any entity owning or controlling 10% or more of the outstanding voting interests of such party, or (iii) any officer,
director, general partner or managing member of such party, or (iv) any entity or person who is an officer, director, general partner, managing member or holder of 10% or more of the voting interests of any entity or person described in clauses
(i) through (iii) of this definition. 
 “Allowable Development Costs” shall have the meaning
provided in Section 2.5. 
 “Architect” means The Preston Partnership, PLLC, a Georgia limited liability
company. 
 “Code Compliance Changes” shall have the meaning provided in Section 2.15. 

“Completion” or “Completed” means the full and final completion of the Improvements and the balance of the
Project, in a good and workmanlike manner, lien free on or before the Completion Date in compliance with all Requirements, including, without limitation, the 1988 Fair Housing Act Amendments and all guidelines, rules and regulations promulgated and
adopted in connection therewith to the extent they relate to construction, substantially in accordance with the Plans and Specifications, and in accordance with the terms of this Agreement and to a qualitative standard (including, without
limitation, as to construction standards and materials) at least equivalent to the standard achieved at the property known as Circle at Concord Mills Apartments located in Cabarrus County, North Carolina and previously developed by an Affiliate of
Crescent Member, as evidenced by issuance of a final certificate of occupancy for all applicable components of the Project (including, without limitation, the clubhouse, each apartment unit (or each building containing the apartment units if
separate 

  
 1 

 
certificates of occupancy are not issued for each apartment unit) and any of the structures and material amenities to be constructed on the Property) and as established by certification thereof
by Developer, the Architect and the General Contractor, and as established to the reasonable satisfaction of the Construction Consultant for the Project, subject to completion of the Punchlist Items and subject to the installation of landscaping,
which in accordance with good horticultural practices should be installed at a different time of year and for which adequate provisions have been made for installation at a seasonally appropriate time. When used with reference to any individual
building that is part of the Improvements, “Completion” or “Completed” shall mean such individual building has been completed in accordance with the terms of the Construction Contract, in a good and workmanlike manner, lien free
in compliance with all Requirements, including, without limitation, the 1988 Fair Housing Act Amendments and all guidelines, rules and regulations promulgated and adopted in connection therewith to the extent they relate to construction,
substantially in accordance with the Plans and Specifications, and in accordance with the terms of this Agreement and to a qualitative standard (including, without limitation, as to construction standards and materials) at least equivalent to the
standard achieved for individual buildings at the property known as Circle at Concord Mills Apartments and located in Cabarrus County, North Carolina, as evidenced by issuance of a final certificate of occupancy for such building and as established
by certification thereof by Developer, the Architect and the General Contractor, and as established to the reasonable satisfaction of the Construction Consultant for the Project, subject to completion of the Punchlist Items related to such building.

 “Completion Date” means the earlier of: (i) twenty-four (24) months following the date on which
all building permits and other government approvals required for the General Contractor to begin construction of the buildings pursuant to the Construction Contract have been issued, with such date extended one day for each day of delays caused by
any Event of Force Majeure, or (ii) the date Completion of the Improvements and the balance of the Project actually occurs. 
 “Construction Consultant” means that certain construction consultant to be selected by Owner in its sole and absolute discretion. 

“Construction Contract” has the meaning set forth in Section 2.1. 

“Construction Cost Overruns” has the meaning set forth in Section 2.6. 

“Construction Lender” means Regions Bank, an Alabama banking corporation. 

“Construction Loan” means that certain loan in the original principal amount of no more than $25,000,000.00 provided by
Construction Lender to finance the costs of acquisition of the Property and construction of the Improvements. 

“Construction Loan Documents” means those certain documents memorializing and securing the Construction Loan including,
but not limited to a construction loan agreement, promissory note, mortgage and any other agreements, documents, or instruments evidencing, guarantying, securing or otherwise relating to the promissory note, or executed or delivered in connection
with the Construction Loan, as such agreements, documents, and instruments may be amended, modified, extended, renewed or supplemented from time to time. 

  
 2 

 “Crescent Member” means Crescent Alexander Village I, LLC, a Delaware
limited liability company, which is an Affiliate of Developer and a Member of Owner. 
 “Development Fee” has
the meaning set forth in Section 4.1. 
 “Engineer” means Land Design, Inc. a North Carolina corporation.

 “Event of Force Majeure” means any of the following: strike, lockout, fire or other casualty, material or
labor shortage, governmental regulation or control not in effect on the date of this Agreement, inclement weather, or acts of God; provided that Developer shall deliver to Owner written notice of the occurrence of each such event within thirty
(30) days after the date that Developer or any of its Affiliates first becomes aware of the occurrence thereof. For the avoidance of doubt, “Event of Force Majeure” shall not include (a) inability to obtain financing or other
lack of funds, (b) delays in obtaining any governmental approval unless such delay is the result of a general moratorium on issuing government approvals, or (c) delays due to adverse soil conditions, if such delays due to adverse soil
conditions continue for longer than thirty (30) days in aggregate. 
 “Plans and Specifications” has the
meaning set forth in Section 2.1. 
 “General Contractor” means Crescent Multifamily Construction, LLC, a
Delaware limited liability company. 
 “Guaranteed Price” has the meaning set forth in Section 2.4.

 “Guarantor” shall mean, Crescent Resources, LLC, a Georgia limited liability company. 

“Guaranty” shall mean any guaranty delivered by Guarantor in connection with this Agreement or the Construction Loan.

 “Improvements” means, collectively, the improvements to be constructed on the Property as shown in the Plans
and Specifications. 
 “Joint Venture Agreement” shall mean the Limited Liability Company Agreement of Owner of
even date herewith, as the same may be amended or supplemented from time to time. 
 “Member” or
“Members” shall mean the Members (as defined in the Joint Venture Agreement) of Owner. 
 “Minor Field
Changes” shall have the meaning set forth in Section 2.15. 
 “Plans and Specifications” has the
meaning set forth in Section 2.1. 
 “Project” has the meaning set forth in Section 1.1. 

“Project Budget” shall mean the Project Budget (as defined in the Joint Venture Agreement), a copy of which is attached
hereto as Exhibit C and incorporated herein by this reference. 

  
 3 

 “Project Contracts” has the meaning set forth in Section 2.7.

 “Property” has the meaning set forth in Section 1.1. 

“Punchlist Items” means, collectively, unfinished items of on-site construction and correction of any such work that are
not necessary for the issuance of any temporary or final certificate of occupancy or for completion of the Project in accordance with the terms of this Agreement, that will be completed by General Contractor within 60 days following Completion, all
as reasonably determined by Construction Consultant; provided that such 60-day period shall be extended for a reasonable period of time which shall not exceed, in any event, 120 days in the aggregate, to enable completion of Punchlist Items,
so long as Developer is in good faith diligently overseeing General Contractor, and General Contractor is in good faith pursuing a resolution to any outstanding Punchlist Item as of the end of such 60-day period. 

“Requirements” means, collectively, all laws, ordinances, rules, regulations, codes, requirements of governmental
authorities, permits, licenses, approvals, the terms of all restrictions, easements and other arrangements of record affecting all or any portion of the Property, and all contractual obligations of Developer and Owner (including obligations related
to the Construction Loan and any other third-party financing). 
 Article 2. Developer’s Obligations 

2.1      Certain Development Obligations.  Owner hereby retains Developer as, and
Developer hereby agrees to act as, the developer for the Project and to develop, organize, supervise, monitor and manage the Project, subject to and in accordance with the terms of this Agreement. Owner has approved the plans and specifications for
the Project listed on Exhibit B to this Agreement which have been submitted to the applicable governmental agency in Mecklenburg County, North Carolina (collectively, the “Plans and Specifications”). Owner has approved
the Project Budget, which is attached as Exhibit C to this Agreement. Developer shall develop and cause Completion of the Project to occur in accordance with the terms of this Agreement and at a cost (which shall be paid by Owner, via
draws under the Construction Loan or otherwise), including the Development Fee, not to exceed the Guaranteed Price. Owner and General Contractor will enter into a guaranteed maximum price construction contract for construction of the Improvements in
accordance with the Plans and Specifications and the Project Budget (the “Construction Contract”). Notwithstanding anything to the contrary, neither Owner’s entry into, nor any term of, the Construction Contract or the contract
with the Architect (the “Architectural Contract”), shall in any way limit or amend Developer’s obligations under this Agreement provided that the Construction Contract and the Architectural Contract are consistent with the
Plans and Specifications. Further, Developer agrees that it shall not use or attempt to use any ambiguity, conflict or inconsistency between this Agreement and the Construction Contract as a defense to any of its obligations under this Agreement.
Owner shall pay or cause to be paid, before delinquency and prior to the addition of interest and penalties, all costs associated with the Project prior to Completion, including, without limitation, the costs of construction, ownership, operation
and maintenance of the Project in accordance with the terms of this Agreement, and additional costs associated with or resulting from the occurrence of any Event of Force Majeure. Developer will exercise diligent efforts to ensure the proper
protection of and accounting for the Project and all proceeds thereof, will deal at “arms-length” with all 

  
 4 

 
third parties and will serve the best interests of Owner in dealing with all third parties in connection with the Project. 

2.2      Draws.  Developer shall deliver to Owner copies of all draw requests and related
materials required by any lender for the disbursement of any portion of any financing (including the Construction Loan). Such draw requests shall be delivered to the Owner for execution and subsequent delivery of such draw request to the relevant
lender. 
 2.3      Construction Loan In-Balance.  Developer shall promptly
deliver to Construction Lender upon the request of Owner and from Developer’s own funds and not proceeds of the Construction Loan such amounts as are required by Construction Lender to maintain the Construction Loan “in-balance” to
the extent the Construction Loan is not “in-balance” for a reason directly and solely caused by Developer or as a result of Construction Cost Overruns. The Construction Loan shall be “in balance” only at such time and from time
to time as Construction Lender may determine, in its reasonable discretion in accordance with the Construction Loan Documents, that the undisbursed portion of the Construction Loan (as allocated pursuant to the Project Budget, as amended from time
to time) equals or exceeds the actual cost to complete construction of the Project. 

2.4      Guaranteed Price.  “Guaranteed Price” shall mean the amount equal to
the lesser of (i) actual, audited Allowable Development Costs for the Project incurred through Completion, and (ii) the sum of (A) total project costs as shown in the Project Budget plus (B) the aggregate cost of change orders
requested by the Owner, if any, on its own behalf and not as a result of any change order requested by Developer, under Section 2.15. Owner shall have the right from time to time and no later than one hundred twenty (120) days following
Completion to audit or have audited by independent accountants all actual costs associated with the Project, including, without limitation, Allowable Development Costs. Developer shall cooperate with any such audit, including, without limitation, by
providing access to all books and records related to the Project. In no event (including, without limitation, on account of any Event of Force Majeure) shall Owner, any of its Members, Construction Lender or any other person or entity have any
obligation to pay to Developer or the General Contractor any amount that would cause the aggregate amount received by Developer or the General Contractor under this Agreement, the Joint Venture Agreement, or any other agreements between the
aforementioned parties, including, without limitation, through advances under the Construction Loan, to exceed the Guaranteed Price. 
 2.5      Allowable Development Costs.  “Allowable Development Costs” means, collectively, the costs and expenses associated with the acquisition,
development, construction, ownership, operation and maintenance of the Project through Completion to the extent provided in a line item included in the Project Budget, including, without limitation, interest, real estate taxes, marketing and other
operating costs and expenses of the Project. Income from the Property received prior to the Completion Date shall be used only to pay Allowable Development Costs. 
 2.6      Cost Overrun Funding.  If prior to Completion, costs and/or expenses associated with the Project in excess of the aggregate total of the line items
in the Project Budget, following reallocation of savings, use of contingency and amendment of the Project Budget, in each case in 

  
 5 

 
accordance with the terms of this Agreement and the Joint Venture Agreement (collectively such excess being “Construction Cost Overruns”) must be paid, Developer agrees to pay or
cause Guarantor to pay one hundred percent (100%) of such Construction Cost Overruns on or before the date they are due and in any event no later than ten (10) days following receipt of notice from Owner. Each Guarantor’s obligation
to pay for any such Construction Cost Overruns shall be memorialized in a Guaranty in the form attached hereto as Exhibit H and incorporated herein by this reference. Any Construction Cost Overruns funded by Developer shall not be
treated as a contribution by Developer or Crescent Member to Owner or in any manner construed so as to increase the Capital Account or Initial Capital Contributions (as such terms are defined in the Joint Venture Agreement) of Crescent Member under
the Joint Venture Agreement, shall not be treated as Additional Capital (as such term is defined in the Joint Venture Agreement) of Crescent Member under the Joint Venture Agreement, shall not be treated as a loan to Owner, and shall not entitle
Developer or Crescent Member to any interest on or refund of any amounts so advanced or to any other rights or remedies against Owner or any Member. 
 2.7      Enforcement of Contracts.  Developer agrees, at Developer’s expense, to enforce or cause to be enforced, performance, as applicable, of the
provisions of the Construction Contract, the Architectural Contract and all other contracts associated with the development of the Project (collectively, the “Project Contracts”) in a commercially reasonable manner such that all
work performed and services provided under each Project Contract will be performed and provided, as the case may be, in accordance with its terms. Notwithstanding the foregoing, Owner shall have the right to enforce each such contract directly, and
Developer shall cooperate with Owner in all reasonable respects with respect to such enforcement. Upon the request of Owner from time to time, Developer shall provide or cause to be provided to Owner a list and copies of all Project Contracts. Each
of the Construction Contract and the Architectural Contract shall be in form and substance satisfactory to Owner and shall not be amended, modified, supplemented or terminated without the prior written approval of Owner. Each Project Contract shall
contain an express provision requiring such Project Contract to be assigned to Owner upon notice from Owner to the contractor or third party under such Project Contract, unless such Project Contract is already in the name of the Owner. 

2.8      Assignment of Guaranties and Warranties.  Developer, as assignor, hereby
conditionally assigns, transfers and sets over to Owner, as assignee, all of its right, title and interest in and to all guarantees and warranties received by the Developer from contractors and suppliers in connection with the design, construction
and development of the Project, provided that Developer shall be subrogated to the rights of the Owner with respect to any claims which have been guaranteed hereunder and satisfied by Developer pursuant hereto. Developer shall not take, and has not
taken, any action or done anything which could limit the enforceability of such guarantees and warranties. 

2.9      Correction of Defective or Non-Conforming Work.  Without limiting any other term
of this Agreement, Developer agrees to repair, correct or replace (or cause the repair, correction or replacement of), at its own cost and expense, all of the work to be performed and all materials to be furnished or installed in connection with
construction of the Improvements (including, without limitation, any change orders, modifications or corrections thereto) that may prove not to be substantially in accordance with the Plans and Specifications (as supplemented and/or modified in
accordance with the terms of this Agreement and as may be determined by the 

  
 6 

 
Architect to be out of compliance with the Plans and Specifications) or the Requirements or not to be free from material defects in workmanship and/or materials; provided, however, that
any such claim of defective or non-conforming work shall be made with respect to any building or related Improvements constructed pursuant to the Construction Contract, if at all, on or prior to the date which is one (1) year following
Completion with respect to building or related Improvements and Developer’s obligation to repair, correct or replace such work shall, with respect to each building or related Improvements, expire one (1) year following Completion of such
building or related Improvements (the “Correction Period”). Developer further agrees to pay the cost of repairing all damage to other property resulting from material defects in the work to be performed or materials to be furnished
or installed in connection with construction of the Improvements and to pay the cost and expenses of replacing other property which may be damaged or disturbed in repairing, correcting or replacing any material defects in work or materials as
provided herein. 
 2.10      Fidelity Bonds and Indemnity.  Developer agrees
that it will indemnify, defend and save Owner harmless from any loss, cost, damage or expense incurred by Owner by reason of (i) any unauthorized use of funds by Developer or its Affiliates, (ii) fraud, theft, dishonesty or other wrongful
act of Developer or any employee of Developer or its Affiliates, or (iii) any liability, cost or expense of or to Owner under the Construction Contract or the Architectural Contract, other than amounts due and owing by Owner under the
Construction Contract or the Architectural Contract. At the request of Owner or Construction Lender, Developer shall obtain fidelity bonds from reputable surety companies covering all employees of Developer having access to funds relating to the
Property and indemnifying Owner against all losses to Owner from fraud, theft, dishonesty or other wrongful acts of Developer or such persons or for such acts or omissions of Developer which may be imputed to Owner by virtue of Crescent
Member’s membership interest in Owner, and the fees or costs for such fidelity bonds shall be included in the Project Budget. Developer’s obligations to indemnify, defend and save Owner harmless in this Section 2.10 shall survive the
expiration or termination of this Agreement. 
 2.11      Liens.  If any direct
or indirect contractor, subcontractor, supplier or any other party affiliated with or otherwise party to any contract with the General Contractor establishes a lien against the Project and/or the Property or the work done or materials supplied in
connection with the Improvements, Developer shall, within ten (10) business days following the earlier of Developer’s receipt of notice from the Owner regarding such lien and such time as Developer becomes aware of the lien, cause the lien
to be discharged of record (either by obtaining and recording a lien discharge bond from a surety and in a form reasonably acceptable to Owner, or otherwise causing such lien to be discharged of record) at no cost to Owner; provided, however, that
if such lien is established as a result of Owner’s failure to make payments under the Construction Contract (provided Owner had received all of the requisite invoices, lien waivers and evidence of expenditures ), then Developer shall not be
responsible for the removal or satisfaction of such lien under this Section 2.11. If a lien for which Developer is responsible hereunder is not so discharged prior to the expiration of such ten (10) business day period, Owner shall
thereafter have the right to withhold all further payments and fees to the Developer until the lien is discharged. Owner may either (a) apply amounts so withheld to discharging such lien, or (b) retain such amounts until such lien is
discharged or released by the lienor, and shall thereafter deliver to Developer any amounts remaining of such withheld payments and fees after payment of the fees and expenses Owner incurs in connection with such lien. Developer agrees

  
 7 

 
to indemnify, defend, and hold Owner harmless from and against any and all costs, expenses, liabilities, claims and obligations incurred in connection with any such lien for which Developer is
responsible hereunder and to have such lien discharged of record. Developer’s obligations under this Section 2.11, including the obligation to indemnify, defend and hold Owner harmless, shall survive the expiration or termination of this
Agreement. 
 2.12      Developer’s Services.  Without limiting any other
term of this Agreement, Developer shall, and shall have the right to: 

(a)      Keep Owner and Construction Consultant advised generally as to developments
affecting the Property and the Project and respond, coordinate and cooperate with all reasonable requests by Owner or Construction Consultant inquiring as to the status of the progress of the Project for the purpose of enabling Owner or Construction
Consultant to monitor Developer’s progress; 
 (b)      Allow Construction
Consultant to attend monthly Project meetings, provide Construction Consultant reasonable advance notice of each such meeting, and furnish Construction Consultant with minutes, notes and reports reasonably requested by Construction Consultant to
document administration of the Project; 
 (c)      Obtain and maintain (or cause
to be obtained and maintained) in full force and effect all necessary authorizations, agreements, permits, licenses (including, without limitation, surety bonds) and similar documents with the appropriate governmental authorities and utility
companies pertaining to the Project and necessary for Completion of the Project by the Completion Date and full use and occupancy of the Project; 
 (d)      Supervise the performance of all contracts with and coordinate the activities of all designated Project consultants; 

(e)      Organize and administer Owner’s insurance program during development and
construction of the Project; 
 (f)      Perform such other related business and
development functions pertaining to the development of the Project as agreed between Owner and the Developer; 

(g)      Supervise the design and construction of the Project, including all buildings
constructed as a part of the Project and all off-site improvements and on-site common area improvements, such as site preparation and grading, above-ground and underground utility systems, parking lots, surface improvements, lighting, roads, and
landscaping, in each case strictly in accordance with the Plans and Specifications; 

(h)      Maintain a review function over the Architect and General Contractor with respect
to: 
  

	 	(i)	Approval of shop drawings and equipment manuals; 

  
 8 

	 	(ii)	Revisions to working drawings and specifications required by reason of: (1) design omission or error; (2) field conditions; (3) governmental review; or
(4) changes requested by Owner; 

  

	 	(iii)	Periodic technical inspections; and 

  

	 	(iv)	Construction inspection; 

 (i)      Make final inspections of the Project with the Architect and General Contractor and prepare or cause to be prepared and issue an exception report and process all
exception report items, warranties, guarantees, bonds and other matters required with respect thereto and procure all necessary operating and occupancy certificates and permits for the use of the Project; 

(j)      Within thirty (30) days following Completion, Developer shall deliver to
Owner and Construction Consultant a complete set of as-built drawings or a complete set of annotated Plans and Specifications prepared by the Architect, General Contractor or any subcontractor, as applicable, and showing all of the Improvements as
actually constructed by General Contractor. Such as-built drawings shall be in form reasonably satisfactory to Owner, and Developer shall cause any corrections requested by Owner or Construction Consultant to be made in such as-built drawings;

 (k)      Perform the following services: 

Distribute (or cause to be distributed) weekly to Owner, minutes of weekly project meetings, if any and monthly to
Owner, as such documents are available: 
  

	 	(i)	copies of all current construction schedules, 

  

	 	(ii)	a variance report, 

  

	 	(iii)	construction status reports, 

  

	 	(iv)	current Project Budget with pending change orders and notations for any cost savings, 

 

	 	(v)	all field reports of the Architect and Engineer, 

  

	 	(vi)	all summaries of material test reports, 

  

	 	(vii)	all other threshold inspection reports and an open items report, 

  

	 	(viii)	a narrative description of leasing status, development and construction issues and a variance explanation, 

 

	 	(ix)	following Completion, a balance sheet, operating statement and cash flow statement, each certified by the Developer as true and correct in all material respects,

  
 9 

	 	(x)	all Construction Loan disbursement requests and related certificates, releases and lien waivers from the previous Construction Loan application and approvals of payment
by Construction Lender, and 

  

	 	(xi)	copies of all other documents and written communications between Developer and Construction Lender; 

(l)      Deliver or cause to be delivered to Owner a copy of each interim progress report,
each in substantially the form as is attached hereto as Exhibit D, not less frequently than monthly prior to Completion and otherwise make available to Owner and its representatives, employees, officers and agents the books and records
of Owner possessed by Developer or within Developer’s control. Owner shall have the right to audit, examine and make copies of or extracts from the books of account and records of Developer and Owner (but nothing herein shall require a Member
to pay for the preparation of audited financial statements required by Section 7.1 of the Joint Venture Agreement). The costs of any such audit included within the Project Budget shall be an Allowable Development Cost. The costs of any such
audit in excess of the expenses included in the Project Budget shall be paid by Owner. Such books of account and all records of Owner possessed by Developer or within Developer’s control shall remain the property of Owner; 

(m)      Complete all Punchlist Items within the time period provided in the definition of
“Punchlist Items” to the reasonable satisfaction of Owner and otherwise in accordance with the terms of this Agreement; 
 (n)      Deliver to Owner upon Completion an as-built survey of the Project prepared by a registered land surveyor in the state where the Property is located and in form and
substance reasonably satisfactory to Owner; 
 (o)      Perform such other
services as are usual and customary to assist Owner in the development, construction and operation of the Project; and 
 (p)      At all times during construction of the Project, Developer shall procure or cause to be procured for the benefit of Owner in accordance with the Project Budget:

  

	 	(i)	 “special perils” or equivalent policy form of builder’s risk insurance in the amount of one hundred percent (100%) of the completed
value of the Improvements, plus the value of subsequent Construction Contract modifications, if any, and cost of materials supplied or installed by others, comprising the total value of the Improvements, which shall be converted to permanent
property hazard insurance for all Improvements included within the Project upon issuance of a certificate of occupancy for each such building, and, for both forms of coverage, Developer’s and Owner’s lenders’ interests shall be
protected under a loss payable clause. The builder’s risk insurance policy must provide (A) a permission 

  
 10 

	 	
to occupy endorsement (B) include coverage for the perils of fire, lightning, wind, collapse, flood and/or surface water, earthquake/volcanic action, theft, vandalism, malicious
mischief, and terrorism, (C) include coverage for soft costs and (D) include coverage for materials temporarily stored off site and/or in transit (unless such risk of loss is transferred to others by written contract). Owner and
Developer shall be included as a named insured; 

  

	 	(ii)	standard business income/loss of rents insurance against loss of income/rents from the Project as a result of covered damage to the Project on a “special
perils” or equivalent policy form and including the perils of terrorism, flood and earthquake. Such insurance shall cover one hundred percent (100%) of the actual loss sustained for at least twelve (12) months with coinsurance waived
by an agreed value clause (to the extent such a provision is commercially available); 

  

	 	(iii)	a policy of commercial general liability insurance (occurrence form) having a limit of not less than $1,000,000 per single occurrence, $2,000,000 aggregate. Owner and
its designees shall be named as additional insured on Developer’s, General Contractor’s and all subcontractor’s policies. The additional insured coverage shall be provided on either (A) CG2010 covering ongoing operations and
CG2037 covering additional insured completed operations; or (B) an equivalent form which includes both Ongoing and Completed Operations, if acceptable to Owner; 

 

	 	(iv)	commercial automobile liability including coverage for owned, hired and non-owned vehicles with a limit not less than $1,000,000 combined single limit;

  

	 	(v)	worker’s compensation insurance having limits not less than those required by state statute and federal statute, if applicable, and employers liability insurance
in an amount not less than $500,000, each accident; $500,000 disease policy limit; $500,000 each employee, covering all persons employed by Owner, Developer and the General Contractor in the conduct of its operations at the Project (including the
all states endorsement and, if applicable, the volunteers endorsement); and 

  

	 	(vi)	an umbrella policy of commercial general liability insurance having a limit of not less than $10,000,000.00 per occurrence and $10,000,000 general aggregate.

 Such insurance policies shall be issued by insurance companies with a rating of not less than A- Class VIII in
the latest edition of Best’s Insurance Guide. Owner’s lenders shall 

  
 11 

 
be listed as Mortgagee on all property insurance policies and additional insured parties on all liability insurance policies, and Developer shall deliver to Owner certified copies of such
insurance policies, together with certificates evidencing the coverage of Owner and its lenders under the liability policy, promptly upon issuance or renewal thereof. Developer shall not take or fail to take any action that would cause the
cancellation of, diminish coverage under or result in an increased premium for any of the insurance described in this Section. 

2.13      Coordination with Joint Venture Agreement.  Notwithstanding anything herein to
the contrary, without the written approval of the Owner, Developer shall not take any action which would require the prior approval of the Member(s) as a “Major Decision” under the Joint Venture Agreement. 

2.14      [Intentionally Deleted]. 

2.15      Amendments to Plans and Specifications; Change Orders.  Developer shall not
amend the Plans and Specifications or utilize a change order except upon the terms and conditions set forth in this Section. Except for Minor Field Changes and Code Compliance Changes (each as defined below), if Developer desires to amend or modify
the Plans and Specifications or utilize a change order, Developer shall provide three (3) business days’ prior written notice to Owner (each, a “Change Notice”). Simultaneously with the delivery of such Change Notice to
Owner, Developer shall deliver a copy of such Change Notice to the attention of the person at Construction Consultant designated by Owner from time to time. The Change Notice shall specify the proposed change to the Plans and Specifications, the
amount of any cost increases or cost decreases in connection with such proposed change and other relevant information to permit Owner to evaluate the proposed amendment, modification or change order and the actual or potential effect upon the
Project and Improvements. Owner, in its sole discretion, may approve of any proposed amendment, modification or change order set forth in the Change Notice, by providing Developer with written notice of such approval within three (3) business
days after Owner’s receipt of such Change Notice (the “Approval Notice”). Unless Owner, in its sole discretion, sends Developer notice within such three (3) business day period, that Owner will not send the Approval
Notice, the proposed amendment or modification shall be deemed to have been approved by Owner. Notwithstanding anything herein to the contrary, Developer may make Minor Field Changes and Code Compliance Changes in the Plans and Specifications
without the consent of Owner. 
 As used herein, the term “Minor Field Changes” means any changes to the Plans
and Specifications which satisfy all of the following conditions and requirements: 

(a)      the change shall not involve any substitution or elimination of materials; or if
it does involve material substitution, the substituted materials are of equal or superior quality, durability and appearance to the materials which are being replaced, and the substitution shall not materially change the appearance or use of the
Improvements; 
 (b)      the change shall not diminish the value or utility of
the Project or the mechanical, structural or architectural integrity thereof; 

  
 12 

 (c)      the value of the work represented by
such proposed change shall not exceed $50,000 and, when combined with all previous Minor Field Changes, shall not have a cumulative value in excess of $400,000; and 

(d)      the change shall not require any change or modification to or amendment of the
building permits issued by Mecklenburg County, North Carolina for construction of the Improvements. 
 “Code Compliance
Changes” means any changes in the Plans and Specifications which are required by any governmental agency in connection with its review and inspection process and which also comply with the requirements set forth in subparagraphs (a),
(b) and (c) above with respect to Minor Field Changes. 
 Developer shall give notice to Owner of the change within
five (5) business days after the change is effected. Nothing in this subsection shall be deemed in any way to excuse, delay or otherwise affect Developer’s obligations to deliver to Owner as-built drawings as described in
Section 2.12. 
 Notwithstanding anything to the contrary contained in this Section 2.15, in no event
may Developer amend the Plans and Specifications or utilize change orders in any manner which would modify, change or otherwise alter the foundations of the Improvements. Developer shall enter into any change order which Owner may request in writing
so long as such change order is reasonably acceptable to Developer and acceptable to Construction Lender. Any increased costs attributable to such an Owner requested change order shall increase Allowable Development Costs and the Project Budget on a
dollar-for-dollar basis. Notwithstanding anything herein to the contrary, in no event shall Allowable Development Costs or the Project Budget be deemed increased by any Minor Field Change, Code Compliance Change or change order approved in an
Approval Notice. 
 2.16      Negative Covenants of Developer.  Developer shall
not, without the prior written consent of the Owner (which consent may be granted or withheld in the sole and absolute discretion of the Owner), do or permit to be done any of the following: 

(a)      Enter into the Construction Contract, any architectural contract, or any other
contract relating to the construction of the Project; 
 (b)      Amend or modify
the Construction Contract; 
 (c)      Enter into any additional contracts,
agreements or obligations with any of its Affiliates in connection with the Project; or 

(d)      Subject to the terms of this item (d), amend or modify the Project Budget, other
than to reallocate demonstrated line item savings and amounts set forth in the contingency line item to demonstrated line item overruns. In no event shall Developer have the right to reallocate amounts in the contingency line item in excess of
$100,000 for each individual reallocation and $600,000 for all such reallocations except (i) as necessary to cause the applicable line items in the Project Budget to match the guaranteed 

  
 13 

 
maximum price under the Construction Contract or (ii) with the prior written consent of Owner, which shall not be unreasonably withheld. 

Article 3. Developer’s Staff 
 Developer acknowledges that in order to perform the services required of it hereunder, it will be necessary for Developer to have in its employ certain key staff personnel. Accordingly, Developer agrees
that the staff available to it in connection with its performance of this Agreement shall at all times consist of sufficient qualified personnel who shall use at least such of their time and effort as is necessary to assure the full performance of
this Agreement by Developer. 
 Article 4. Developer Compensation 

4.1      Development Fee.  For Developer’s services in connection with the
development of the Project as set forth in this Agreement, Owner shall pay a development fee (the “Development Fee”) to the Developer in an amount equal to 3% of the final Project Budget. The Development Fee shall be paid by Owner
to Developer as follows: 25% of the total fee at the closing of the Construction Loan; fifty (50) percent of the total fee which shall be paid beginning on the first day of the month following the month during which the Construction Loan is
closed based on the percentage of Completion of the Improvements and the balance of the Project and which will be drawn pursuant to draw requests submitted for draws of equity from the Owner and draws under the Construction Loan; and the remaining
twenty-five (25) percent of the total fee will be paid at Completion. Payments of the Development Fee shall be paid from the proceeds of the Construction Loan to the extent allowable under the terms and conditions of such Construction Loan and,
to the extent not so allowable, by Owner out of capital contributions from the Members required under the Joint Venture Agreement or out of cash flow from the Project as and when available. Developer’s requisitions for payment of costs as
described above in this Agreement shall include a requisition for the applicable portion of the Development Fee, and in any event shall be subject to the approval of Owner, which approval shall be deemed given if the requisition is consistent with
the Project Budget and payments of installments of the Development Fee are not being withheld pursuant to the following sentence. Notwithstanding the foregoing, (i) payment of installments of the Development Fee shall be withheld for any
periods during which Developer is in default under this Agreement beyond any applicable notice and cure period, and (ii) the aggregate amount of the Development Fee shall in no event exceed the amount stated as the development fee in the final
line item of the final Project Budget and Owner and Developer shall reconcile downward, as applicable, the aggregate amount of the Development Fee at such time as the final Project Budget is determined. 

Article 5. Covenants, Representations and Warranties of Developer. 

Developer hereby covenants, represents and warrants to Owner as follows: 

(a)      Developer is a limited liability company duly formed and in good standing under
the laws of the State of Delaware and duly qualified to do business within the State of North Carolina. Developer has full power and authority to enter into and perform this Agreement and all documents, instruments and agreements entered into by
Developer 

  
 14 

 
pursuant to this Agreement and to carry out the transactions contemplated hereby. This Agreement and all documents, instruments and agreements entered into by Developer pursuant to this Agreement
constitute the valid, legal and binding obligations of Developer enforceable in accordance with their respective terms upon proper execution and delivery thereof by Developer, subject as to enforcement, to bankruptcy, insolvency, reorganization and
other laws of general applicability relating to or affecting creditors’ rights and to general equity principles. This Agreement has been executed and such other documents, instruments and agreements have been or will be executed by duly
authorized representatives of Developer. 
 (b)      As of the date hereof, there
is no petition in bankruptcy or any petition or answer seeking an assignment for the benefit of creditors, the appointment of a receiver, trustee, liquidation or dissolution or similar relief under the U.S. Bankruptcy Code or any state law filed by
or against or, to the best of Developer’s knowledge, threatened to be filed by or against Developer, its managing member, or any Guarantor under any Guaranty. Developer does disclose the existence of the confirmed plan of reorganization of
Guarantor and its Affiliates effective June 9, 2010 in Case No. 09-11507 (CAG) in the United States Bankruptcy Court for the Western District of Texas, Austin Division. 

(c)      Developer has no actual knowledge of the existence of a criminal investigation
concerning Developer, its members, or any Guarantor. 
 (d)      Neither the
execution and the delivery of this Agreement nor the consummation of the transactions contemplated by this Agreement is subject to any requirement that Developer or, to Developer’s knowledge, General Contractor obtain any consent, approval or
authorization of, or make any declaration or filing with, any governmental authority or third party which has not been obtained (other than building permits, certificates of occupancy and operating permits which Developer or General Contractor will
obtain on behalf of Owner) or which, in any case or in the aggregate, if not obtained or made would have an adverse effect, financial or otherwise, on the Project or render such execution, delivery or consummation illegal or invalid. 

(e)      The holders of direct and indirect interests in Developer as of the date hereof
are set forth on Exhibit I attached hereto and incorporated herein by reference. Developer’s sole member holds such interest for its own account and not for the account of others, free and clear of all liens and encumbrances.

 (f)      To Developer’s knowledge, the factual matters set forth in the
Recitals are true, complete and accurate in all respects. 
 (g)      As of the
date hereof, there are no actions, suits, proceedings or investigations, at law or in equity, or before any governmental agency or other person, (i) pending against Developer, its members or any Guarantor or (ii) to Developer’s
knowledge, threatened against Developer, its members or any Guarantor, which, in any case or in the aggregate, will have a materially adverse effect on their respective abilities to meet their obligations in connection with this transaction or have
a material adverse effect on the value, use, operation or occupancy of the Project. Developer shall deliver or 

  
 15 

 
shall cause to be delivered to Owner promptly following receipt thereof any notice of any action, suit, proceeding or investigation, at law or in equity, against Developer, its members or any
Guarantor which reasonably could have a material adverse effect on their respective abilities to meet their obligations in connection with this transaction or have a material adverse effect on the value, use, operation or occupancy of the Project.

 (h)      The Property is zoned for the purpose contemplated by this Agreement
and such purpose is consistent with the development of the Property for a garden apartment community (collectively, the “Land Use Approval”). The Plans and Specifications for the Project comply with the Land Use Approval. The Land
Use Approval is currently in effect and has not been amended in any respect to materially affect the use of the Property as a rental apartment complex. The Property is a stand-alone parcel with respect to the requirements of the Land Use Approval.

 (i)      The Property is not dependent upon any other parcel of real estate
(other than public drainage facilities or drainage facilities provided by private easement) to satisfy drainage, parking, open space or other legal requirements under any Requirements. 

(j)      The Property is a legal parcel which does not include any real estate other than
the Property. 
 (k)      If constructed in accordance with the Plans and
Specifications, the Project will comply in all respects with all applicable Requirements (including but not limited to, the Fair Housing Act to the extent relating to construction and all covenants, conditions and restrictions, including, without
limitation, design guidelines, applicable to the Project). 
 (l)      Developer
believes that Mecklenburg County, North Carolina and all other applicable governmental authorities shall have approved the Plans and Specifications for issuance of a land disturbance permit and building permits for construction of the Improvements
(the “Building Permits”) and shall issue all of the Building Permits in accordance with the schedule described in Exhibit F attached hereto. Developer has paid, or will pay on behalf of Owner to the extent provided in
the Project Budget, as and when due, all building permit fees, applicable to the Building Permits. The Building Permits constitute all of the permits and licenses necessary to authorize construction of the Improvements substantially in accordance
with the Plans and Specifications. The architectural plans and specifications submitted for approval by Mecklenburg County, North Carolina for purposes of obtaining issuance of the Building Permits are the Plans and Specifications. Developer has
delivered to Owner true, correct and complete copies of the Plans and Specifications and shall deliver to Owner the Building Permits in accordance with the schedule described in Exhibit F attached hereto. 

(m)      The Property is taxed as one or more separate parcel(s) (i.e., not as part
of a larger tax parcel that includes the Property) for real estate tax purposes. 

  
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 (n)      To Developer’s knowledge, the
Property is not in violation of any law applicable to the Property. Developer has neither received nor been threatened with a notice of violation of any law applicable to the Property. 

(o)      Pedestrian and vehicular access to the Property is provided by streets which are
contiguous with the Property. There are no special assessments pending or, to Developer’s knowledge, threatened against or with respect to the Property on account of or in connection with such public streets, roads or any other public
improvements including, but not limited to, storm and sanitary sewer, water or other utility lines, curbs, gutters, drainage facilities, sidewalks, lighting and the like. 

(p)      To Developer’s knowledge, and except as may have been previously disclosed in
writing to Owner pursuant to the Environmental Report (hereinafter defined), there are no Hazardous Materials (as defined below) or petroleum underground storage tanks on or near (except as disclosed in the Environmental Report or any other
environmental report ordered by and provided to Owner prior to the date hereof) the Property, and Developer has no reason to believe that any such Hazardous Materials or petroleum underground storage tanks are on or near (except as disclosed in the
Environmental Report or any other environmental report ordered by and provided to Owner prior to the date hereof) the Property in either case, which would require, necessitate or require remediation, cleanup, non-disturbance or any other action
pursuant to any Environmental Laws. Developer has delivered to Owner the following environmental report: “Phase I Environmental Site Assessment dated December 12, 2011” prepared by Summit Engineering and Construction Services, Inc.
(the “Environmental Report”), which has been or shall be certified to and in favor of Owner on or before the effective date of this Agreement. Developer has no reason to believe that the Environmental Report is not true and correct
in all respects. As used in this Agreement, the term “Hazardous Materials” shall be defined to include, without limitation, (i) asbestos or any material composed of or containing asbestos or urea formaldehyde in any form and in any
type; (ii) polychlorinated biphenyl compounds; (iii) oil hydrocarbons, petroleum, petroleum products or products containing or derived from petroleum; (iv) any hazardous or toxic waste, substance, material, smoke, gas or particulate
matter, as presently defined by or for purposes of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.A. Section 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C.A. Section 1801,
et seq.; the Resource Conversation and Recovery Act, 42 U.S.C.A. Section 6901, et seq.; the Toxic Substances Control Act, 15 U.S.C.A. Section 2601, et seq.; the Federal Water Pollution Control Act, 33 U.S.C.A.
Section 1251, et seq.; and any State of North Carolina environmental laws; or any successor to such laws (in existence on the date this representation is made or updated), or any other federal, state or local environmental, health or
safety statute, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards concerning or in connection with hazardous or toxic wastes, substances, material, smoke, gas or particulate matters as now
or at any time hereinafter in effect, or any common law theory based on nuisance or strict liability (collectively, “Environmental Laws”). 

  
 17 

 (q)      Other than as previously disclosed
to Owner by Developer, any previous owner of the Property, or any other third party, the Property is not (i) designated by the Secretary of Housing and Urban Development, the Army Corps of Engineers, the State of North Carolina or any other
governmental or quasi-governmental authority as a flood plain or wetlands area, or (ii) designated by any other governmental or quasi-governmental authority as an area subject to environmental or other regulation that would materially affect
the use of the Project as the apartment complex contemplated by the Plans and Specifications or otherwise for multifamily residential rental housing. 
 (r)      The Property is benefited by (or will be benefited by prior to Completion) easements of unlimited duration as are necessary for the Project. No additional easements
are required for the provision of utilities, access, egress and drainage to or for the benefit of the Property or the Project in connection with the use and operation of the Project as a multi-family housing development and related facilities as
depicted on the Plans and Specifications. 
 (s)      Developer or General
Contractor has obtained, or will obtain on behalf of Owner prior to starting construction of each component of the Project, the Building Permits (which shall be obtained by the date provided in the schedule described in item (l) of this
Section) and all other permits, licenses, waivers, consents, approvals and authorizations, and Developer or General Contractor has made, or will make in a timely fashion, all material registrations, qualifications, designations, declarations and
filings required (collectively, the “Approvals”) for each component of the Project, so that General Contractor may construct the Improvements and, subject only to the issuance of customary temporary or permanent certificates of
occupancy by Mecklenburg County, North Carolina and any other necessary operating permits, the Project can be operated as an apartment complex and related facilities as depicted on the Plans and Specifications. As of the date hereof, Developer has
no reason to believe that such certificates of occupancy will not be issued in the ordinary course of business following completion of construction of the Improvements. All of the Approvals for each component of the Project are, or prior to the
commencement of construction of each component of the Project will be, in full force and effect and no cancellation or suspension of any of them is or will be threatened. Developer has delivered (or has caused to be delivered) to Owner true, correct
and complete copies of the Approvals received by Developer or the General Contractor on or before the date hereof. Developer shall promptly deliver (or cause to be delivered) to Owner true, correct and complete copies of all Approvals thereafter
received by Developer or General Contractor promptly upon receipt thereof by Developer or General Contractor. Without limiting the foregoing, Developer has delivered to Owner a true, complete and correct copy of the final site plan for the Project
as approved by all applicable authorities and attached hereto as Exhibit G. 

(t)      The Construction Contract provides for the General Contractor to perform all
construction work for the Project for a guaranteed maximum price. Owner has delivered or shall deliver to Developer a true, correct and complete copy of the executed Construction Contract. Developer shall deliver to Owner, on request, a true,
correct and complete list and copy of each subcontract and material supply contract to which Developer is a party or has been provided a copy, as required by Owner. 

  
 18 

 (u)      Upon their issuance, the liability
insurance policies required under this Agreement shall name Owner and Construction Lender as additional insured parties. Promptly following issuance thereof, Developer shall deliver to Owner true, correct and complete copies of all of such insurance
policies. 
 (v)      No broker, finder, agent or other intermediary has been
employed by or on behalf of Developer or any of its Affiliates in connection with the negotiation or consummation of this Agreement or any of the transactions contemplated hereby, and no such party has any right or claim to any commission,
finder’s fee or similar amount payable as a result of any act of, or engagement of, such party by Developer or any of its Affiliates. Developer hereby indemnifies Owner against all liabilities and expenses (including, without limitation,
attorneys’ fees and costs), in connection with any claims for commission, fee, compensation, or otherwise, for the bringing about of this transaction, or the consummation hereof, which may be made against Owner, as a result of any acts of
Developer or any Developer Affiliate. Developer’s obligation to indemnify Owner in this Section 5(v) shall survive the expiration or termination of this Agreement. 

(w)      Neither Developer nor any of its Affiliates has received any notice of
condemnation or of eminent domain proceedings or negotiations for the purchase of any of the Land or the Project in lieu of condemnation, and no condemnation or eminent domain proceedings or negotiations have been commenced or, to the best of their
knowledge, threatened in connection with the Property or the Improvements which would have a material and adverse effect on the value of the Project or on the continued utilization of the Project as an apartment complex or in accordance with the
Plans and Specifications. 
 (x)      All utility services, including, but not
limited to, storm and sanitary sewer, water, electric power, gas, cable television and telephone service are, or will be prior to Completion, available to the Property in form and with capacity sufficient for the useful enjoyment and operation of
the Project and no unpaid assessments, impact fees, development fees, tap-on fees or recapture costs are payable in connection therewith except charges for which provision has been made in the Project Budget. 

(y)      Promptly upon its receipt, but in no event later than five (5) days after
receipt, Developer shall provide Owner with true, accurate and complete copies of any notice of any material default or of any matter or event which will, with the lapse of time or the giving of notice or both, become a material default under any
service or other contract to which Developer or Owner is a party or by which any of their assets are bound; neither Developer nor any Affiliate of Developer has received any notice of any violation of any building, health and safety code or other
governmental regulation which has not been fully corrected. 
 (z)      Upon
Completion, all temporary or permanent certificates of occupancy and other consents and approvals required from Mecklenburg County, North Carolina, and other governmental authorities and associations and boards with jurisdiction over the Project
shall have been issued and be in full force and effect without the presence or existence of any unsatisfied conditions or requirements with respect thereto, and true, 

  
 19 

 
correct and complete copies of such consents, approvals and certificates of occupancy shall have been delivered to Owner. 

(aa)      Developer shall not at any time use, store or keep at the Project any Hazardous
Materials, except those customarily and prudently used in construction or operation of projects similar to the Project and in compliance with all Environmental Laws. 

(bb)      Developer represents and warrants that (i) all of the ownership interests of
Developer are owned as set forth in Article 5(e), (ii) Developer is classified as a limited liability company for Federal income tax purposes and (iii) Developer’s U.S. employer identification number is 45-2656657. Developer covenants
that it will not take any action (or fail to take any action, as the case may be) that would cause the representation in this clause (bb) to fail to be true throughout the term of this Agreement. 

Article 6. Termination 
 6.1      Events of Default.  Unless earlier terminated by the express provisions hereof, this Agreement shall continue in full force and effect from the date
hereof until the Completion of all portions of the Project. Notwithstanding the foregoing, this Agreement may be terminated by Owner upon the occurrence of any of the following events (“Event(s) of Default”): 

(a)      The removal of Crescent Member as a Member of Owner or as the “Operating
Member” with “Cause” (as such term is defined in the Joint Venture Agreement) pursuant to the Joint Venture Agreement. Without limiting the foregoing, the removal of Crescent Member as the “Operating Member” (as such term is
defined in the Joint Venture Agreement) without “Cause” in accordance with Section 6.7 of the Joint Venture Agreement, shall not constitute an Event of Default under this Agreement. 

(b)      Intentionally omitted. 

(c)      The failure of Developer to cause Completion (with the exception of completion of
Punchlist Items and out-of-season landscaping) to occur by the Completion Date. 

(d)      A breach by the Developer of any of the obligations described in this Agreement,
which breach continues for twenty (20) days after notice by Owner to the Developer of such breach; provided that, if such breach cannot practically be cured within twenty (20) days, such breach has no material adverse impact on the
Owner or the Project, and Developer is in good faith actively prosecuting with diligence and continuity a cure, then such breach shall not constitute an Event of Default. 

(e)      In the event that (i) the Developer shall make an assignment for the benefit
of creditors, or apply for the appointment of a trustee, liquidator or a receiver of any substantial part of its assets, or shall commence any proceeding relating to itself under any bankruptcy, reorganization, arrangement or similar law; or
(ii) if any such application is filed or proceeding is commenced against the Developer and the Developer indicates its consent thereto, or an order is entered appointing any such trustee, liquidator or

  
 20 

 
receiver or approving a petition in any such proceedings and such order remains in effect for more than 60 days; or (iii) if the Developer shall admit, in writing, its inability to pay its
debts as they become due. 
 (f)      If the Developer shall be dissolved.

 6.2      Termination.  If any of the above Events of Default shall occur,
Owner shall have the right, in its sole discretion, on behalf of Owner, to terminate this Agreement by written notice to Developer, whereupon this Agreement shall immediately terminate, and no further payments of any fees payable pursuant to Article
4 shall be payable other than Development Fees earned and accrued prior to such termination. Further, in the event of any such termination, Developer and its Affiliates shall be relieved of any further obligation hereunder, except to the extent of
any indemnity obligation set forth in this Agreement, each of which shall survive the expiration or termination of this Agreement. 
 Article 7. Notices 
 Any and all notices and other communications required
or permitted under this Agreement shall be deemed adequately given only if in writing delivered either in hand, or by expedited commercial carrier which provides evidence of delivery or refusal, addressed to the recipient, or with all freight
charges prepaid, if by commercial carrier. All notices and other communications shall be deemed to have been given for all purposes of this Agreement upon the date of receipt or refusal. All such notices and other communications shall be addressed
to the parties at their respective addresses set forth below or at such other addresses as any of them may designate by notice to the other parties. 
 Notices to the Developer shall be addressed to: 
 Crescent Development, LLC

 c/o Crescent Resources 
 227 W. Trade Street 
 Suite 1000 

Charlotte, NC 28202 
 Attention: Mr. Brian J. Natwick, President - Multifamily Division 
 with
a copy to: 
 Sanford H. Zatcoff, Esq. 
 Holt Ney Zatcoff & Wasserman, LLP 
 100 Galleria Parkway 

Suite 1800 

Atlanta, GA 30339 

  
 21 

 Notices to Owner shall be addressed to: 

GGT Crescent Alexander NC Venture, LLC 
 c/o Crescent Resources 
 227 W. Trade Street 

Suite 1000 

Charlotte, NC 28202 
 Attention: Mr. Brian J. Natwick, President - Multifamily Division 
 with
a copy to: 
 Sanford H. Zatcoff, Esq. 
 Holt Ney Zatcoff & Wasserman, LLP 
 100 Galleria Parkway 

Suite 1800 

Atlanta, GA 30339 
 with a copy to: 
 GGT Crescent Alexander Holdings, LLC 

CNL Center at City Commons 
 450 South Orange Avenue 
 Orlando, Florida 32801 

Attention: Steven D. Shackelford, Chief Financial Officer 
 with a copy to: 
 GGT Crescent Alexander Holdings, LLC 

CNL Center at City Commons 
 450 South Orange Avenue 
 Orlando, Florida 32801 

Attention: Holly J. Greer, Esq., General Counsel 
 and a copy to: 
 Lowndes, Drosdick, Doster, Kantor & Reed, P.A.

 450 South Orange Avenue, Suite 800 
 Orlando, Florida 32801 
 Attention: Joaquin E. Martinez, Esq. 

Article 8. Miscellaneous 
 8.1      Successor and Assigns.  The agreements contained herein shall be binding upon and inure to the benefit of the permitted successors and assigns of
the respective parties hereto. The Developer shall not mortgage, pledge, sell, assign, hypothecate, or otherwise encumber, 

  
 22 

 
transfer or permit to be transferred in any manner or by any means whatsoever whether voluntarily or by operation of law, all or any part of its interest in this Agreement. 

8.2      Applicable Law.  This Agreement shall be construed and enforced in accordance
with the laws of the state in which the Property is located. 

8.3      Severability.  If for any reason any provision of this Agreement is determined to
be invalid, or unenforceable in any circumstance, such invalidity or unenforceability shall not impair the effectiveness of the other provisions in this Agreement or, to the extent permissible, the effectiveness of such provision in other
circumstances. 
 8.4      Counterparts.  This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original of this Agreement binding on the parties hereto. 

8.5      Entire Agreement.  This Agreement constitutes the entire agreement between the
parties hereto with respect to the transactions contemplated herein and supersedes all prior understandings or agreements between the parties. 
 8.6      Titles.  Titles of provisions of this Agreement are for descriptive purposes only and shall not control or alter the meanings of this Agreement as
set forth in the text. 
 8.7      Further Assurances.  The parties agree to
execute and deliver such further instruments and do such further acts and things as may be required to carry out the intent and purposes of this Agreement. 
 8.8      Consent to Jurisdiction.  The Developer consents to the personal jurisdiction of the federal and state courts of the state in which the Property is
located and agrees that service of process may be made upon the Developer by certified mail, return-receipt requested, or in any other manner permitted by law. The Developer agrees not to assert in any action brought in any such court that such
action is brought in an inconvenient forum, or otherwise make any objection to venue or jurisdiction. 

8.9      Waiver of Jury Trial.  Each of the parties hereto waives trial by jury in any
litigation, suit or proceeding between them in any court with respect to, in connection with or arising out of this Agreement, or the validity, interpretation or enforcement thereof. 

8.10      Amendments.  No amendment or modification of this Agreement shall be effective
unless reflected in a document executed and delivered by all parties hereto. 

8.11      Remedies Cumulative.  All rights, privileges and remedies afforded the parties
by this Agreement shall be cumulative and not exclusive, and the exercise of any one of such remedies shall not be deemed to be a waiver of any other right, remedy or privilege provided for herein or available at law or equity. 

8.12      Gender.  The use herein of (i) the singular number shall be deemed to mean
the plural, (ii) the masculine gender shall be deemed to mean the feminine or neuter and (iii) the neuter gender shall be deemed to mean the masculine or feminine whenever the sense of this Agreement so requires. 

  
 23 

 8.13      Exculpation.  Owner’s
liability pursuant to this Agreement is limited to Owner’s interest in the Property and Owner (but not Developer or any Affiliate of Developer) is exculpated from any personal liability hereunder. 

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 

  
 24 

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

							
	OWNER
	
	 GGT CRESCENT ALEXANDER NC VENTURE, LLC,

a Delaware limited liability company

		
	By:	 	 Crescent Alexander Village I, LLC, a Delaware
 limited liability company, its Operating Member

			
		 	By:	 	 Crescent Resources, LLC,

a Georgia limited liability company, its manager

				
		 		 	By:	 	/S/    Brian J. Natwick
		 		 		 	Brian J. Natwick
		 		 		 	 President - Multifamily Division

  
 25 

 
							
	DEVELOPER
	
	 CRESCENT DEVELOPMENT, LLC,
 a Delaware limited liability company

		
	By:	 	 Crescent Resources, LLC,
 a Georgia limited liability company,
 its sole member and manager

				
		 		 	By:	 	/S/ Brian J. Natwick
		 		 		 	Name: Brian J. Natwick
		 		 		 	Title:   President – Multifamily

  
 26 

 EXHIBIT A 

LEGAL DESCRIPTION 
 [Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT
B 
 PLANS AND SPECIFICATIONS 
 [Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT
C 
 PROJECT BUDGET 
 [Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT
D 
 INTERIM PROGRESS REPORT 
 [Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT
E 
 INTENTIONALLY OMITTED 

 EXHIBIT F 

PERMITS SCHEDULE 
 [Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT
G 
 FINAL SITE PLAN 
 [Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT
H 
 FORM OF CONSTRUCTION COST OVERRUN GUARANTY 

[Omitted as not necessary to an understanding of the Agreement] 
 EXHIBIT I 
 OWNERSHIP OF DEVELOPER 

[Omitted as not necessary to an understanding of the Agreement]

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