Document:

Limited Liability Company Agreement

 Exhibit 10.2 

LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 GGT DANIEL SC
VENTURE, LLC 

 LIMITED LIABILITY 

COMPANY AGREEMENT OF 
 GGT
DANIEL SC 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	  

  
 (i) 

							
	 6.7
	  	Termination of Delegation of Authority to Daniel as Operating Member	  	 	23	  
	 6.8
	  	Development	  	 	24	  
	 6.9
	  	Management Agreement	  	 	24	  
	 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.	  	 	25	  
	 7.1
	  	Books; Statements	  	 	25	  
	 7.2
	  	Where Maintained	  	 	26	  
	 7.3
	  	Audits	  	 	27	  
	 7.4
	  	Objections to Statements	  	 	27	  
	 7.5
	  	Tax Returns	  	 	27	  
	 7.6
	  	Tax Matters Partner	  	 	27	  
	 7.7
	  	Tax Policy	  	 	27	  
	 7.8
	  	Section 754 Election	  	 	28	  
	 7.9
	  	Capital Accounts	  	 	28	  
		
	ARTICLE 8. ALLOCATIONS	  	 	28	  
	 8.1
	  	Allocation of Net Income and Net Loss	  	 	28	  
	 8.2
	  	Loss Limitation	  	 	28	  
	 8.3
	  	Minimum Gain Chargebacks and Nonrecourse Deductions	  	 	29	  
	 8.4
	  	Qualified Income Offset	  	 	29	  
	 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	  	 	30	  
		
	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	  	 	35	  
		
	ARTICLE 10. ASSIGNMENT AND OFFER TO PURCHASE	  	 	35	  
	 10.1
	  	Transfers	  	 	35	  
	 10.2
	  	Permitted Transfers	  	 	35	  
	 10.3
	  	Assumption by Assignee	  	 	36	  
	 10.4
	  	Amendment of Certificate of Formation	  	 	36	  
	 10.5
	  	Other Assignments Void.	  	 	36	  
	 10.6
	  	[Intentionally Omitted]	  	 	37	  
	 10.7
	  	Buy-Sell	  	 	37	  
	 10.8
	  	Provisions Generally Applicable to Sales	  	 	38	  
	 10.9
	  	Compliance with ERISA and State Statutes on Governmental Plans	  	 	40	  

  
 (ii) 

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

  
 (iii) 

 Exhibits 
  

			
	Exhibit A	  	Members’ Percentage Interests
		
	Exhibit B	  	Description of Land
		
	Exhibit C	  	Development Agreement
		
	Exhibit D	  	[Intentionally Omitted]
		
	Exhibit E	  	Insurance Certificate
		
	Exhibit F	  	Members’ ERISA Certificates
		
	Exhibit G	  	Project Budget
		
	Exhibit H	  	Pre-Development Costs

  
 (iv) 

 LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 GGT DANIEL SC
VENTURE, LLC 
 This Limited Liability Company Agreement of GGT Daniel SC Venture, LLC (this “Agreement”) is entered
into and shall be effective as of the 14th day of October, 2014, by and between Daniel Haywood, LLC, an Alabama limited liability company (“Daniel”), and GGT Daniel Holdings, LLC, a Delaware limited liability company
(“CNL”), pursuant to the provisions of the Delaware Limited Liability Company Act (the “Act”). Daniel 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 Daniel SC Venture, LLC, a Delaware limited liability company (the “Company”), was formed on September 22, 2014, 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 Purchase and Sale Agreement with an effective date of April 10, 2014, by and between Daniel Realty Company, LLC, an Alabama limited liability company, as purchaser (“Purchaser”), and Greenville Mixed-Use Partners, LLC,
a 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 located off of Old Airport Road in Greenville, Greenville County, South 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 292 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 Daniel’s Initial Capital, CNL’s Initial Capital and Additional 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
fifty percent (50%) or more of the directors of such person or individuals exercising similar functions. 

  
 2 

 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 the State of South 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 Decision. As defined in Section 6.2(b). 

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. As defined in the Recitals above. 

Company Financing. Financing that is provided to the Company. 

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

  
 3 

 Completion. As defined in the Development Agreement. 

Construction Contract. As defined in the Development Agreement. 

Construction Cost Overrun Return. As described in Section 9.2(g). 

Construction Loan. As defined in the Development Agreement. 

Construction Management Fee. As described in Section 6.8. 

Control or Controlling. Including the terms “controlled by” and “under common control with”, means the power to
direct the affairs of a Person by reason of ownership of voting securities, by contract or otherwise. 
 Daniel. As described in the
first paragraph above. 
 Daniel Key Employees. Scott Pulliam and Pat Henry. 

Daniel Maximum Initial Capital. As defined in Section 4.1. 

Daniel Principal. T. Charles Tickle or any trust or entity Controlled by T. Charles Tickle. 

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

Developer. [Daniel Realty Company, LLC, an Alabama 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. The total development fee payable to the Developer as set forth in the Development Agreement. 

Economic Capital Account. With respect to any Member, such Member’s Capital Account as of the date of determination, after
crediting to such Capital Account any amounts that the Member is 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. 

  
 4 

 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. 

Initial Percentage Interest. As described in Section 9.1. 

IRR. With respect to all Capital Contributions of a Member, the internal rate of return or discount factor that, when applied to a 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 

  
 5 

 
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 Daniel. 

Member Loan. Any loan made by any Member or any Affiliate of a Member to the Company pursuant to Article V. 

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. The initial Members are CNL and Daniel.

 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. 

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. Daniel, subject to CNL’s right to terminate Daniel’s authority as Operating Member in accordance with
Section 6.7. 

  
 6 

 Operating Return. As described in Section 9.2(d). 

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 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
prepared by the Developer and approved by Member Consent, as such may be amended from time to time as permitted herein. 

Pre-Development Costs. Those certain costs and expenses incurred by Daniel or Developer for the benefit of the Company and included in
the Project Budget, which initial Pre-Development Costs are set forth in Exhibit H and which shall be reimbursed to Daniel 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, as such may be amended from time to time as permitted herein. 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. 

  
 7 

 Property Manager. Daniel Realty Services, LLC, or, another property manager or managers
selected by Member Consent under Section 6.2 to enter into a property management agreement with the Company to manage the Property following Completion, and any successor thereto. 

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

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 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 (after the payment of all actual Company indebtedness, and any other liabilities related to the Company’s assets, limited, in the
case of nonrecourse liabilities, to the collateral securing or otherwise available to satisfy such liabilities and without application of Section 9.6 hereof). 

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). 

  
 8 

 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,”. 
 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 Daniel SC
Venture, LLC”, and the Company’s business will be conducted under the name “Residences at Haywood”. 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 Daniel shall have the right to approve the use of any name that includes the word “Daniel” or any variation thereof. 

2.3 Purpose of Company. The purpose of the Company is to directly or indirectly carry on the business of acquiring, owning, developing,
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. 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 450 South Orange Avenue, Orlando, Florida 32801 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 offices may be changed by the Managing
Member in compliance with the relevant requirements of the Act. 

  
 9 

 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) Daniel 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 a one (1) mile radius of the Project (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 refusal to participate in any such Opportunity. Daniel shall provide CNL with not less than fifteen (15) Business Days prior written notice of any such Opportunity and if the CNL Entities
decline or fail to respond to such Opportunity within fifteen (15) Business Days after written notice thereof or if the CNL Entities and Daniel fail to come to agreement as to the terms of such participation within thirty (30) Business
Days after such Opportunity is offered to CNL, utilizing such forms of limited liability company agreement and development agreement as previously agreed upon by and between Daniel and CNL, but not including the economic terms thereof, then Daniel
shall not be required to continue to offer any CNL Entity the right to participate to any extent in such Opportunity. 

  
 10 

 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 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. 

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 Daniel hereunder may be performed by officers or employees of
one or more Affiliates of Daniel, provided that all actions taken by such persons on behalf of Daniel in connection with this Agreement shall be binding upon Daniel. 

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, 2064; 

(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. Upon or following the execution of this Agreement, CNL and Daniel 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 

  
 11 

 
Loan Closing, including amounts necessary to reimburse Daniel 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 Daniel shall constitute a portion of “Daniel’s Initial Capital”. Daniel’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 $9,641,043.00 without the express written approval of CNL (the “CNL Maximum Initial
Capital”), and in no event shall Daniel’s Initial Capital exceed $1,071,227.00 without the express written approval of Daniel (the “Daniel Maximum Initial Capital”). Any Construction Cost Overruns (as defined in the
Development Agreement) funded by Developer shall not be treated as a contribution by Developer or Daniel to the Company or in any manner construed so as to increase Daniel’s Capital Account or Daniel’s Initial Capital under this Agreement,
shall not be treated as Additional Capital under this Agreement, shall not be treated as a Member Loan by Daniel to the Company, and shall not entitle Daniel to any interest or refund of any amounts so advanced or to any other rights or remedies
against the Company or any Member, except that the Daniel in its capacity as Developer may be entitled to a return of a portion of such Construction Cost Overruns funded by Daniel pursuant to the provisions of Section 9.4(e). 

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 or 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. The Operating Return shall not be deemed interest. 

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 Daniel pursuant to this Section 4.5(a) shall
constitute a portion of Daniel’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 

  
 12 

 
(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 Daniel
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 Daniel Maximum Initial Capital
Contribution, in the case of Daniel. 
 (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 Daniel 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 Daniel pursuant to this Section 4.5(b) shall constitute a portion of Daniel’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 Daniel 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 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 

  
 13 

 
9.4(c), 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(c), 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. 

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 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 

  
 14 

 
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, approval by CNL Consent of CNL Decisions under Section 6.2(b), 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 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 or CNL Consent, as applicable, 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; 

  
 15 

 (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; 
 (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; 

  
 16 

 (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 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 and CNL Decisions as approved and on the terms set forth by
Member Consent or CNL Consent, as applicable; 
 (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 for CNL Sarbanes-Oxley
certifications, including delivering or causing to be delivered a SAS 70 Type II report for the Property as requested by CNL, or such other documentation and testing of internal controls as is deemed necessary by CNL; 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 Daniel as Operating Member and delegates to Daniel, 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). Daniel 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 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 Daniel shall have no responsibilities
or obligations to perform the duties of Managing Member of the Company except to the extent set forth herein. The Operating Member shall have full and exclusive authority, discretion and responsibility to operate the Company in accordance with such
delegated responsibilities, duties and authority until termination of such delegation pursuant to Section 6.7 below. 

  
 17 

 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 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 reallocation 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 Daniel’s
legal and third party costs and expenses, for marketing and initial leasing 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 for the management of the Property and approve any Property Management Agreement, subject to
Section 6.10, provided, however, that the Members acknowledge and agree that the initial Property Manager shall be Daniel Realty Services, L.L.C.; 

(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 

  
 18 

 
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 Daniel or any of the Daniel Principals, 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 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 favorable to
the Company. It is understood that non-recourse financing which would neither adversely affect the Company’s ability to dispose of the Property nor require the Company to pay a prepayment premium shall be deemed most favorable, and financing
which would neither adversely affect the Company’s ability to dispose of the Property nor require the Company to pay a prepayment premium and which requires guaranties solely from Daniel and/or any of the Daniel Principals shall also be deemed
favorable; 
 (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 otherwise amend, modify, supplement,
assign or grant any material consents or waivers under the Development Agreement, subject to Section 6.10; 
 (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 may effectuate any sale, assignment, gift, pledge, hypothecation, encumbrance or other transfer of CNL’s interest in the Company as set forth in Section 10.1; 

(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; 

  
 19 

 (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. 
 (b) Notwithstanding anything to the contrary, without prior CNL Consent in each instance (each, a “CNL
Decision”), the Company and the Managing Member shall not, and the Managing Member shall not authorize the Operating Member to: 
 (i)
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; 
 (ii) 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; 

(iii) 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 
 (iv) 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) and 6.2(b), such restriction shall not restrict the authority of the Managing
Member or the Operating Member to enter into such contracts or agreements that are 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 Greenville, South Carolina market area. 
 CNL will use
good faith efforts to consult with Daniel on matters constituting CNL Decisions; provided, however that CNL shall have no obligation to implement or otherwise be subject to any information or input offered by Daniel in connection therewith. 

  
 20 

 (c) 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 or CNL Decision, provided, however, in the event of an emergency or other circumstance that does not reasonably 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 or CNL Consent, as applicable, 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 or CNL Consent, as applicable, 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. 

(d) 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 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, 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 Daniel
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. 

  
 21 

 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 CNL’s review and approval, 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 CNL. The Operating Member shall consult with CNL with respect to such proposed operating budget and proposed capital budget. Once approved by CNL, the
applicable final proposed operating budget shall become the “Operating Budget” hereunder, and, once approved by CNL, 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 CNL’s review and approval, a proposed operating
budget and a proposed capital budget for the upcoming calendar year. The Operating Member shall consult with CNL with respect to such proposed operating budget and proposed capital budget with the goal that CNL and Daniel agree on each such proposed
budget on or before December 1st of each year. If approved by CNL, the final proposed operating budget for such subsequent year shall become the then operative “Operating Budget”
hereunder. If approved by CNL, 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 by CNL, 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 by CNL, 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. 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 provide Members copies of certificates of insurance upon request of a Member. At no time shall insurance maintained by the Company be less than the applicable amount required under
applicable law or under any loan documents relating to the Construction Loan or any other Company Financing. 
 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 

  
 22 

 
Agreement, the rights of CNL to provide such consultation shall include: (a) the right to discuss, 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 on a regular basis 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) that are not
otherwise prepared by CNL, (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 Daniel as Operating Member. 
 (a) CNL shall have the right, without the concurrence of Daniel, to terminate the delegation
of authority of, and remove Daniel as, Operating Member at any time with or without Cause. Solely in the event of termination by CNL and removal of Daniel as Operating Member for Cause, Daniel 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 Daniel as Operating Member without Cause shall not affect Daniel’s right to approve Major Decisions or any other matters requiring Member
Consent under this Agreement. 
 (b) For purposes of this Agreement, termination of Daniel as Operating Member for “Cause” shall
mean termination due to any one or more of the following: (a) any material breach or default by Daniel 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 five (5) days after written notice to Daniel, or if the same may not be cured by the payment of money, has not been cured within twenty (20) days after written
notice to Daniel (provided, however, that (i) if the breach or default has a material adverse effect on the company, the Property or CNL, Daniel shall have an additional thirty (30) days to cure such breach if such breach is not curable
within such twenty (20) day period, so long as Daniel has commenced cure within such initial twenty (20) day period and continues to prosecute to completion with diligence and continuity the curing thereof within such additional thirty
(30) day period, and (ii) if the breach or default does not have a material adverse effect on the Company, the Project or CNL and if Daniel has commenced and continues to prosecute to completion with diligence and continuity the cure
thereof within such initial twenty (20) day period, then Daniel shall have as much time as is 

  
 23 

 
commercially reasonable for curing such breach or default, provided, however, that in no event shall Daniel have greater than one hundred twenty (120) days in the aggregate from such written
notice to so cure); (b) any act by Daniel beyond the scope of its authority under this Agreement; or (c) in the event of any fraud, gross negligence or willful misconduct by Daniel against CNL or the Company; provided,
however, that prior to Completion, CNL shall also have the sole and exclusive right, without the concurrence of Daniel, to terminate the delegation of authority of, and remove Daniel as, Operating Member if (i) in CNL’s reasonable
business judgment, the Project is not being completed according to schedule (except in the case of an Event of Force Majeure as defined in the Development Agreement) or (ii) Developer is terminated as developer pursuant to the terms of the
Development Agreement, each of 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 Daniel, 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
Daniel as Operating Member for Cause, Daniel 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 Daniel as, Operating Member without Cause, (i) CNL must
cause the Construction Loan and any other Company Financing for which Daniel or any Daniel Affiliate has any personal liability to be paid in full and satisfied or cause Daniel or any Daniel Affiliate to be released in full from any obligations as
guarantor; and (ii) such removal shall in no form or fashion affect Daniel’s economic interest as a Member of the Company pursuant to this Agreement or the right of the Developer to receive the Development Fee as provided in the
Development Agreement. In the event of removal of Daniel as Operating Member for Cause, such removal shall not in any form or fashion affect Daniel’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 Daniel 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, or a creditworthy entity acceptable to CNL, shall provide all guaranties required in connection with the Construction Loan including a completion guaranty, cost
guaranty and/or construction warranty as required by CNL or the lender for the Construction Loan. 
 6.9 Management Agreement. Upon
Completion, the Company will enter into a management agreement with the Property Manager to manage the Property on the terms and conditions agreed to by the Members (the “Property Management Agreement”), pursuant to which, as compensation
for the services described therein, Property Manager shall be paid a property management fee as set forth in the Property Management Agreement. Should the Property Management Agreement terminate for any reason, the Company will enter into an
agreement or agreements for management of the Property subject to, and in accordance with, the terms of Section 6.2. 

  
 24 

 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 Daniel or an Affiliate of Daniel, including the Company’s engagement of the
Developer pursuant to Section 6.8 and the engagement of the Property Manager pursuant to Section 6.9 if such Property Manager is an Affiliate of Daniel; provided, that in the event of any material breach of, or default by, Daniel or such
Daniel Affiliate beyond any applicable cure period under the terms of any such agreement, only the consent of CNL shall be required to terminate such agreement, or otherwise amend, modify or supplement the terms of such agreement. 

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 or (B) the knowing breach of any
representation or warranty made by the Managing Member or Operating Member in this Agreement. 
 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 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 and the Operating Member. All financial statements of the Company shall be prepared in accordance with GAAP,
consistently applied. 

  
 25 

 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) no later than the ten (10) days after each month-end, Operating Member shall prepare and submit or cause to be prepared and submitted
to each Member, 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) in addition to the requirements of subparagraph
(b) above, the reports delivered in January, April, July and October during the term of this Agreement shall include 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) By
the date which is sixty (60) days after 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 Daniel and approved by CNL, in its reasonable
discretion, 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 complete report of the
audit scope and audit findings in the form of a management audit report with an internal control memorandum. 
 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 for Sarbane Oxley certifications and shall provide such other certification and documentation and testing of
internal controls as is reasonably deemed necessary by CNL. 
 7.2 Where Maintained. The books, accounts and records of the Company
shall be at all times maintained at the offices of the Operating Member (unless its status as Operating Member is terminated pursuant to the terms of this Agreement, at which time the books, accounts and records shall be maintained at the offices of
CNL) and the books, accounts and records of the Property shall be maintained at the offices of the Property Manager 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. 

  
 26 

 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
(a) draft returns to each Member for review and approval no later than ninety (90) days after the close of the Company’s taxable year; and (b) final returns to each Member for review and approval no later than forty-five
(45) days prior to the extended due date of the returns. 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. 

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. Without limitation
to anything set forth herein, the Tax Matters Partner shall be responsible for preparation of work papers and extensions of tax filings, as well as coordination and transfer of information to the independent certified public accountants chosen to
prepare tax returns and annual audited financial statements. 
 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 elections made by the Tax Matters Partner if such Member shall not have objected in writing to such election
as reflected in the initial tax return reflecting such election within fifteen (15) days after such return is received by such Member, 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. 

  
 27 

 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 by the Tax Matters
Partner 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 may 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 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 

  
 28 

 
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 pro rata in
accordance with their Initial Capital Percentages. 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) 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 

  
 29 

 
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 allocations set forth in
Sections 8.3 (a), (b) and (c) and 8.4 (the “Regulatory Allocations”) are intended to comply with the requirements of Treasury Regulations Sections 1.704 1(b) and 1.704 2. Notwithstanding any other provisions of this Article 8
(other than the Regulatory Allocations), the Regulatory Allocations shall be taken into account as provided for in the following two sentences. Income, gain, loss and deduction shall be reallocated to the extent that such reallocation causes the net
aggregate amount of allocations of income, gain, deduction and loss to each Member to be equal to or more closely approximate the net aggregate amount of such items that would have been allocated to each such Member if the Regulatory Allocations had
not occurred. This Section 8.5 shall be interpreted and applied in such a manner and to such extent as is reasonably necessary to eliminate, as quickly as possible, permanent economic distortions that would otherwise occur as a consequence of
the Regulatory Allocations in the absence of this Section 8.5. 
 8.6 Other Allocation Provisions. Any elections or decisions
relating to the allocation of Company items of income, gain, loss, deduction or credit shall be made by the Tax Matters Partner in a manner that, in the Tax Matter Partner’s discretion, reasonably reflects the arrangement between the Members
pursuant to this Agreement. 
 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. Daniel agrees that indebtedness of the Company shall be allocated among the Members under
Code Section 752 and CNL shall have sole authority, in its discretion, as to all allocations and/or decisions under Code Section 752, it being understood that it is the intention of the Members to allocate as much debt as possible to
Members other than CNL to the extent that CNL is satisfied that there is an adequate basis for such position under applicable authority. Managing Member also agrees to provide Daniel with all other information, including taxable income and loss of
the Company, the basis of property of the Company, and the highest amount of acquisition indebtedness in the twelve month period preceding any sale or disposition of property of the Company, which CNL may 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. 

  
 30 

 ARTICLE 9. DISTRIBUTIONS AND ALLOCATIONS 

9.1 Percentage Interests in Company. The Initial Percentage Interest of the respective Members in the Company shall be: 

 

					
	 CNL:
	  	 	90	% 
		
	 Daniel:
	  	 	10	% 

 The Initial 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 follows 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 pursuant to (A) Section 4.5(d)(ii) and (B) Section 4.5(d)(iv), (3) the proceeds of short-term borrowings of the Company in the ordinary course of business (including Member Loans) 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 (other than through the payment of expenses) 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 first, the compound and current interest and then the outstanding principal balance due and payable with respect on any other loans made to the Company (including Member
Loans, which payments to Members shall be made, unless the terms of the Member Loans provide otherwise, 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, and without limitation the foregoing, all Member Loans made by a particular Member shall be repaid in the chronological order in which they were made) (2) funds disbursed for capital expenditures,
leasing commissions, tenant finish or any other similar expenses that are required to be capitalized and (3) any amount to establish or 

  
 31 

 
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 payable in connection with such Major Capital Event (which payments shall be made pro rata to the Members in respect of Member Loans, unless the terms of the Member Loans
provide otherwise, 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, and without limiting the foregoing, all Member Loans made by a particular
Member shall be repaid in the chronological order in which they were made). 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. One-twelfth of the annual Operating Return payable for the current fiscal year of the Company shall accrue at the time of each monthly distribution of
Operating Cash Flow (or at the time that such distribution would be made if Operating Cash Flow were available for distribution). 
 (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(b) 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

  
 32 

 
pursuant to Sections 9.3(a) and 9.4(a) 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(a) 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(a) hereof. 
 (g)
“Construction Cost Overrun Return” shall mean an amount of all Construction Cost Overruns (as defined in the Development Agreement) funded by the Developer under the terms of the Development Agreement that (i) were not
reasonably foreseeable by Developer, (ii) the incurrence of which was outside the control of Developer and (iii) were not incurred, whether by action or inaction, due to the negligence of the Developer or other breach of its obligations
under the Development Agreement, and that are in excess of $500,000, it being acknowledged and agreed that the Developer shall not be entitled to any return of the first $500,000 of such returnable Construction Cost Overruns. 

(h) “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, pro rata, 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, pro rata, 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 (and with respect to the Section 9.4(e) below, the Company shall pay the Developer the amount set
forth therein, as follows: 
 (a) First, to the Members, pro rata, in proportion to their respective Unreturned Initial Capital, until each
Member’s Unreturned Initial Capital has been reduced to zero; 

  
 33 

 (b) Second, to the Members, pro rata, in proportion to their respective Unreturned Additional
Capital, until each Member’s Unreturned Additional Capital has been reduced to zero; 
 (c) Third, to the Members, pro rata, 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;

 (d) Fourth, to the Members, pro rata, 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; 

(e) Fifth, to the Developer, the Construction Cost Overrun Return; 

(f) Sixth, eighty-five percent (85%) to the Members in proportion to the Members’ Initial Percentage Interests (i.e., ninety percent
(90%) to CNL and ten percent (10%) to Daniel) and fifteen percent (15%) to Daniel, until CNL achieves a fifteen percent 15% IRR on its aggregate Capital Contributions; 

(g) Seventh, seventy percent (70%) to the Members in proportion to the Members’ Initial Percentage Interests (i.e., ninety percent
(90%) to CNL and ten percent (10%) to Daniel), and thirty percent (30%) to Daniel until CNL achieves a twenty percent (20%) IRR on its aggregate Capital Contributions and CNL receives an amount equal to 1.8 times its aggregate
Capital Contributions; provided, however, that such 1.8 multiple shall apply only with respect to Major Capital Events that occur during the first 24 months following Completion of the Project; and 

(h) Thereafter, fifty percent (50%) to the Members in proportion to the Members’ Initial Percentage Interests (i.e., ninety percent
(90%) to CNL and ten percent (10%) to Daniel), and fifty percent (50%) to Daniel. 
 9.5 Loss of Promoted Interest.
Notwithstanding the provisions of Section 9.4, Daniel shall no longer have the right to distributions with respect to its “promoted interest” as such distributions are set forth in Sections 9.4(c), 9.4(g) and 9.4(h) (and Daniel 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 Daniel 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 Daniel 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. 

  
 34 

 Upon the loss of Daniel’s promoted interests set forth in Sections 9.4(e), 9.4(f) and
9.4(g), 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 Daniel shall no longer be entitled to any distributions under
Section 9.4(e), 9.4(f) or 9.4(g) in excess of a distribution based on its Percentage Interest. Without limiting the foregoing, if CNL terminates and removes Daniel as the Operating Member without Cause in accordance with Section 6.7, such
termination and removal shall not cause Daniel to lose the promoted interests set forth in Sections 9.4(e), 9.4(f) and 9.4(g). 
 9.6
Distributions Upon Liquidation. In the event the Company (or any Member’s interest therein) is “liquidated” within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g), then any distributions shall be
made pursuant to this Section 9.6 to the Members (or such Member, as appropriate) in accordance with their positive Capital Account balances in compliance with Treasury Regulations
Section 1.704-1(b)(2)(ii)(b)(2). 
 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. A sale, assignment, gift,
pledge, hypothecation, encumbrance or other transfer by Daniel of all or a portion of its Entire Interest in the Company to an Affiliate of Daniel from time to time shall be a transfer permitted under this Article 10, and Daniel 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 Permitted Transfers. Notwithstanding any other provision of this Agreement, so long as at least one (1) of the Daniel Key
Employees are authorized to act for Daniel and the Daniel Principal directly or indirectly owns a Controlling interest in Daniel, then (a) any member of Daniel may freely transfer his, her or its interest in Daniel, and (b) any individual
member of Daniel or may freely transfer all or any part of that member’s interest either (A) to another Daniel Principal or (B) to a trust, family limited liability company, family partnership or similar estate planning or wealth
preservation entity established by the transferring member for the benefit of such member, such member’s spouse, one or more of such member’s immediate family or any combination thereof. 

  
 35 

 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 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, but subject to Section 10.2, 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, the assignee shall pay all expenses incurred by the Company in connection with the transfer.
Notwithstanding the foregoing, CNL’s consent shall not be required for any such admission, issuance or assignment if (a) such other Member is Daniel (or an Affiliate thereof), (b) after giving effect to the admission, issuance or
assignment, the Daniel Principal will continue to own, either directly or indirectly, a Controlling interest in Daniel, and (c) at the time 

  
 36 

 
of such admission, issuance or assignment, at least one of the Daniel Key Employees remains employed by Daniel (or an Affiliate thereof) in a substantially similar position as such Daniel Key
Employee is employed as of the Effective Date. 
 (b) Further without limiting the terms of Section 10.1, but subject to
Section 10.2, 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 other 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. Notwithstanding the foregoing, CNL’s consent shall not be required for any such issuance, sale, assignment or gift if (a) such other Member is Daniel (or an Affiliate thereof),
(b) after giving effect to the admission, sale, assignment or gift, the Daniel Principal will continue to own, either directly or indirectly, a Controlling interest in Daniel, and (c) at the time of such issuance, sale, assignment, gift,
pledge, hypothecation or other encumbrance, at least one of the Daniel Key Employees remains employed by Daniel (or an Affiliate thereof) in a substantially similar position as such Daniel Key Employee is employed as of the Effective Date. 

10.6 [Intentionally Omitted] 

10.7 Buy-Sell. 
 (a) Any
time after the date that is twenty-four (24) months after Completion of the Project, either Daniel 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 making the offer (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 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 

  
 37 

 
purchase and sale pursuant to this Section 10.7(b)(ii) does not close due to the default of the Proposer, in which event the Responding Member’s Buy-Sell Deposit shall be refundable to
the Responding Member. 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 this Section 10.7(b)(ii) 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. 
 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, as permitted 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: 
 (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

  
 38 

 
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 date of sale. 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 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. 

  
 39 

 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 Daniel, 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 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 Daniel or CNL as the context permits and all
references to “the Members” shall mean Daniel, 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), such Member shall cause the proposed transferee to deliver to CNL a certification in substantially the form of Exhibit F attached hereto and made a part hereof. 

  
 40 

 (b) On the closing or consummation of a Member Loan: 

(i) Daniel shall deliver to CNL a certification in substantially the form of Exhibit F; and 

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

(c) Anything else in this Agreement contained to the contrary notwithstanding, CNL shall have up to fifteen (15) days following a
purchase or other acquisition 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 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 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 terminate this Agreement. 

(d) 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. 

  
 41 

 (e) 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.

 (f) 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 Daniel 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
Daniel’s election, be a dissolution of the Company, and Daniel shall be the “Liquidating Member” in the dissolution of the Company. 

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)

  
 42 

 
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, at any time there is only one Member, such 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. 
 ARTICLE 12. CROSS-DEFAULT 

Any termination for Cause by the Managing Member of the delegation of authority given to Daniel 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 Daniel 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 

  
 43 

 
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 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 in determining 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 

  
 44 

 
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 Daniel 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 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 

  
 45 

 
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. 

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. 

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

		  	Attention:     Rosemary Q. Mills, Chief Financial Officer
		  	Attention:     Scott Hall

  
 46 

			
	with a copy to:	  	 GGT Daniel Holdings, LLC
 CNL Center at City
Commons
 450 South Orange Avenue
 Orlando, Florida 32801

Attention: Holly J. Greer, General Counsel

		
	with a copy to:	  	 Lowndes, Drosdick, Doster, Kantor & Reed, P.A.

450 South Orange Avenue, Suite 200
 Orlando, Florida 32801

Attention: Joaquin E. Martinez, Esq.

		
	Daniel:	  	 Daniel Haywood, LLC
 3660 Grandview Parkway

Suite 100
 Birmingham, AL 35243

Attention: Scott Pulliam

		
	with a copy to:	  	 Burr & Forman LLP
 420 N. 20th Street, Suite 3400
 Birmingham, Alabama 35203

Attention: Gail L. Mills, 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. 

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 

  
 47 

 
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
Members’ 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 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. 

  
 48 

 16.9 Amendments. This Agreement may not be amended, altered or modified except by a
written instrument signed by all parties, provided, however, that the Members 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 Florida or the United States District Court for the
Middle District of Florida. Each 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. The Members further agree to indemnify, defend and hold each 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 such Member’s
actions. 
 16.15 Tax Compliance. Daniel represents and warrants that (i) Daniel is wholly-owned by Daniel Realty Company, LLC,
an Alabama limited liability company, the only manager is Daniel Management Corporation and the only voting member is Daniel Realty Company, LLC; 

  
 49 

 
(ii) Daniel is classified as a disregarded entity for Federal income tax purposes, and (iii) Daniel’s U.S. employer identification number is 47-1788115. Except with respect to permitted
transfers under Section 10.2, Daniel 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) 

  
 50 

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

					
	Daniel:	 	
		
		 	DANIEL HAYWOOD, LLC,
		 	an Alabama limited liability company
			
		 	By:	 	 R. Scott Pulliam

		 	Name:	 	 R. Scott Pulliam

		 	Title:	 	 SVP

		
	CNL:	 	
		
		 	GGT DANIEL HOLDINGS, LLC,
		 	a Delaware limited liability company
			
		 	By:	 	 Erin M. Gray

		 	Name:	 	 Erin M. Gray

		 	Title:	 	 Vice President

  
 51 

 EXHIBIT A 
  

													
	 Names and Interests of Members
	  	Percentage
Interest	 	 	Initial Capital
Contribution	 	  	Maximum Initial
Capital
Contributions	 
				
	 GGT Daniel Holdings, LLC
	  	 	90	% 	 	$	4,464,331.46	  	  	$	9,641,043.00	  
				
	 Daniel Haywood, LLC
	  	 	10	% 	 	$	496,036.83	  	  	$	1,071,227.00	  
				
	 TOTALS:
	  	 	100	% 	 	$	4,960,368.29	  	  	$	10,712,270.00	  

  

	*	The Members agree that to the extent that the amount of the final Project Budget is reduced from that of the Project’s “concept budget” due to savings in the Construction Contract’s guaranteed
maximum price, the aggregate initial capital contribution of each of CNL and Daniel will be adjusted downward on a pro-rata basis to reflect such reduction. 

 EXHIBIT B 

Description of Land 

INTENTIONALLY OMMITTED 

EXHIBIT C 

Development Agreement 

INTENTIONALLY OMMITTED 

EXHIBIT D 

Management Agreement 

INTENTIONALLY OMMITTED 

EXHIBIT E 

Insurance Certificates 

INTENTIONALLY OMMITTED 

EXHIBIT F 

Member ERISA Certificate 

INTENTIONALLY OMMITTED 

 EXHIBIT F 

CNL ERISA Certificate 

INTENTIONALLY OMMITTED 

EXHIBIT G 

PROJECT BUDGET 

INTENTIONALLY OMMITTED 

EXHIBIT H 

PRE-DEVELOPMENT COSTS 

INTENTIONALLY OMMITTEDCredit Agreement

 Exhibit 10.3 

CREDIT AGREEMENT 

DATED AS OF OCTOBER 15, 2014 
 GGT
DANIEL SC VENTURE, LLC 
 and 

SYNOVUS BANK 

 Table of Contents 

 

									
	 	 	 	  	 	  	Page	 
		
	 ARTICLE I
	  	 	1	  
	 1.
	 	 DEFINITIONS
	  	 	1	  
		 	1.1	  	Defined Terms	  	 	1	  
		 	1.2	  	Accounting Terms	  	 	19	  
		 	1.3	  	Construction of Terms	  	 	19	  
		 	1.4	  	Computation of Time Periods	  	 	19	  
		 	1.5	  	UCC Terms	  	 	20	  
		 	1.6	  	Reference to Borrower Parties	  	 	20	  
	 ARTICLE II
	  	 	20	  
	 2.
	 	 THE CONSTRUCTION LOAN
	  	 	20	  
		 	2.1	  	General Terms	  	 	20	  
		 	2.2	  	The Construction Note	  	 	20	  
		 	2.3	  	Interest Rate	  	 	20	  
		 	2.4	  	Payments of Principal and Interest	  	 	20	  
		 	2.5	  	Use of Proceeds	  	 	21	  
		 	2.6	  	Disbursement of the Construction Loan	  	 	21	  
		 	2.7	  	Representations and Warranties	  	 	23	  
		 	2.8	  	Additional Information	  	 	23	  
	 ARTICLE III
	  	 	24	  
	 3.
	 	PAYMENTS, ADDITIONAL COSTS, ETC.	  	 	24	  
		 	3.1	  	Default Rate	  	 	24	  
		 	3.2	  	Late Payments	  	 	24	  
		 	3.3	  	Payment to Bank	  	 	24	  
		 	3.4	  	Prepayment	  	 	24	  
		 	3.5	  	No Setoff or Deduction	  	 	25	  
		 	3.6	  	Payment on Non-Business Day; Payment Computations	  	 	25	  
		 	3.7	  	Additional Costs	  	 	25	  
		 	3.8	  	Illegality and Impossibility	  	 	26	  
		 	3.9	  	360 Day Year	  	 	26	  
		 	3.10	  	Indemnification	  	 	26	  
		 	3.11	  	No Requirement to Actually Obtain Funds	  	 	27	  
		 	3.12	  	Usury Limitation	  	 	27	  
		 	3.13	  	Tax Forms	  	 	27	  
	 ARTICLE IV
	  	 	27	  
	 4.
	 	CONDITIONS PRECEDENT	  	 	27	  
		 	4.1	  	Documents Required for the Closing	  	 	27	  
		 	4.2	  	Documents Required for Making of Construction Advances	  	 	30	  
		 	4.3	  	Certain Events	  	 	30	  
		 	4.4	  	Election to Make Advances Prior to Satisfaction of Conditions Precedent	  	 	31	  
	 ARTICLE V
	  	 	31	  
	 5.
	 	COLLATERAL SECURITY	  	 	31	  
		 	5.1	  	Grant of Lien	  	 	31	  
		 	5.2	  	Maintenance of Lien	  	 	31	  

  
 i 

									
	 ARTICLE VI
	  	 	32	  
	 6.
	 	REPRESENTATIONS AND WARRANTIES	  	 	32	  
		 	6.1	  	Borrower’s Existence	  	 	32	  
		 	6.2	  	Authorization	  	 	32	  
		 	6.3	  	Consents or Approvals	  	 	32	  
		 	6.4	  	Violations or Actions Pending	  	 	32	  
		 	6.5	  	Existing Indebtedness	  	 	32	  
		 	6.6	  	Tax Returns	  	 	33	  
		 	6.7	  	Financial Statements	  	 	33	  
		 	6.8	  	Title To Land	  	 	33	  
		 	6.9	  	Solvency	  	 	33	  
		 	6.10	  	Priority of Liens	  	 	33	  
		 	6.11	  	Accuracy of Documents	  	 	33	  
		 	6.12	  	Environmental Matters	  	 	33	  
		 	6.13	  	Restrictions and Covenants Affecting the Mortgaged Property	  	 	34	  
		 	6.14	  	Roads and Utilities	  	 	34	  
		 	6.15	  	Condemnation	  	 	34	  
		 	6.16	  	Compliance with Laws	  	 	34	  
		 	6.17	  	Assigned Documents	  	 	34	  
		 	6.18	  	Continuing Effectiveness	  	 	35	  
		 	6.19	  	Anti-Terrorism Laws	  	 	35	  
	 ARTICLE VII
	  	 	36	  
	 7.
	 	BORROWER’S COVENANTS	  	 	36	  
		 	7.1	  	Affirmative Covenants	  	 	36	  
		 	7.2	  	Negative Covenants	  	 	40	  
		 	7.3	  	Construction Covenants	  	 	41	  
		 	7.4	  	Insurance and Condemnation Covenants	  	 	42	  
		 	7.5	  	Assigned Document Covenants	  	 	47	  
		 	7.6	  	Escrow Deposits	  	 	48	  
		 	7.7	  	General Covenants and Agreements Pertaining to the Collateral	  	 	48	  
		 	7.8	  	Visitation	  	 	48	  
		 	7.9	  	Filing Fees and Taxes	  	 	48	  
		 	7.10	  	Underlying Documents	  	 	48	  
		 	7.11	  	Further Assurances	  	 	48	  
	 ARTICLE VIII
	  	 	49	  
	 8.
	 	DEFAULT	  	 	49	  
		 	8.1	  	Events of Default	  	 	49	  
		 	8.2	  	No Advances After Default	  	 	51	  
		 	8.3	  	Acceleration	  	 	51	  
		 	8.4	  	General Remedies	  	 	51	  
		 	8.5	  	Bank’s Additional Rights and Remedies	  	 	51	  
		 	8.6	  	Right of Set-Off	  	 	53	  
		 	8.7	  	No Limitation on Rights and Remedies	  	 	54	  
		 	8.8	  	Application of Proceeds	  	 	54	  

  
 ii 

									
	 ARTICLE IX
	  	 	54	  
	 9.
	 	MISCELLANEOUS	  	 	54	  
		 	9.1	  	Termination of Bank’s Lien	  	 	54	  
		 	9.2	  	Construction	  	 	54	  
		 	9.3	  	Indemnity	  	 	55	  
		 	9.4	  	Bank’s Consent or Approval	  	 	55	  
		 	9.5	  	Enforcement and Waiver by Bank	  	 	55	  
		 	9.6	  	No Representation, Assumption, or Duty	  	 	55	  
		 	9.7	  	Expenses of Bank	  	 	56	  
		 	9.8	  	Attorneys’ Fees	  	 	56	  
		 	9.9	  	Exclusiveness	  	 	56	  
		 	9.10	  	Notices	  	 	56	  
		 	9.11	  	Waiver and Release by Borrower	  	 	58	  
		 	9.12	  	Limitation on Waiver of Notice, Etc.	  	 	58	  
		 	9.13	  	Assignment and Participation	  	 	58	  
		 	9.14	  	Governing Law	  	 	59	  
		 	9.15	  	SUBMISSION TO JURISDICTION; WAIVERS	  	 	59	  
		 	9.16	  	Binding Effect; Assignment	  	 	60	  
		 	9.17	  	Entire Agreement, Amendments	  	 	60	  
		 	9.18	  	Severability	  	 	60	  
		 	9.19	  	Headings	  	 	60	  
		 	9.20	  	Counterparts	  	 	60	  
		 	9.21	  	Seal	  	 	60	  

 EXHIBIT A COST BUDGET 

EXHIBIT B ENVIRONMENTAL SITE ASSESSMENT REPORTS 

  
 iii 

 CREDIT AGREEMENT 

THIS CREDIT AGREEMENT is dated as of October     , 2014, between GGT DANIEL SC VENTURE, LLC, a Delaware
limited liability company (the “Borrower”), and SYNOVUS BANK, a Georgia banking corporation (the “Bank”). 

WHEREAS, Borrower has requested that Bank extend certain credit to Borrower, and Bank has agreed to extend to Borrower a
construction/term loan in the principal amount of up to $25,000,000.00, on the terms and conditions herein contained. 
 NOW,
THEREFORE, in consideration of the promises herein contained, and each intending to be legally bound hereby, the parties hereto agree as follows: 

ARTICLE I 
  

	1.	DEFINITIONS. 

 1.1 Defined Terms. As used herein, the following terms shall have the
meanings set forth below (such meanings to be equally applicable to the singular and plural forms thereof): 
 “Advance”
means each loan of money or credit made or extended to or for the benefit of Borrower by Bank pursuant to this Agreement. 

“Advancement Termination Date” means the date which is thirty-six (36) months from the date of this Agreement (viz.,
October     , 2017). 
 “Affiliate” means, as to any Person, each other Person that directly or
indirectly through one or more intermediaries, controls, or is controlled by, or under common control with, such Person, and includes each Subsidiary of a Person. 

“Agreement” means this Credit Agreement, together with all modifications and amendments hereafter made. 

“ALTA” means the American Land Title Association. 

“Anti-Terrorism Laws” means any laws relating to terrorism or money laundering, including Executive Order No. 13224 and
the USA Patriot Act. 
 “Approved Development Manager” means: 

(A) Daniel Realty Company, LLC and/or any Person Controlled by Daniel Realty Company, LLC; or 

(B) any other Person approved by Bank (such approval not to be unreasonably withheld or delayed). 

“Architect’s Contracts” means any and all contracts with any architects performing work with respect to the Project, and
any and all renewals, extensions or modifications thereof and guaranties of performance to Borrower thereunder. 

  
 1 

 “Assigned Documents” means (i) the Assigned Leases; (ii) the
Construction Documents; (iii) any and all other agreements entered into by or for the benefit of Borrower with any property manager, development manager, broker, or other Person with respect to the development, management, leasing, operation or
use of the Project, (including, but not limited to the Development Agreement and the Management Agreement (upon execution and delivery of the same)); (iv) any and all Governmental Approvals with respect to the Project; (v) any and all
operating, service, supply, and maintenance contracts with respect to the Project; and (vi) any and all rights of Borrower under any of the foregoing, including, without limitation, any rights to receive any payments or other monies under any
of the foregoing. 
 “Assigned Leases” means the Qualified Leases and all other leases presently existing or hereafter
made, whether written or verbal, or any letting of, or agreement for the use or occupancy of, any part of the Mortgaged Property, and each modification, extension, renewal and guarantee thereof. 

“Assignment of Management Agreement” means an Assignment and Subordination of Management Agreement to be entered into among
Borrower, a property manager to be selected by Borrower and approved by Bank (such approval not to be unreasonably withheld or delayed), and Bank, together with all modifications and amendments at any time made thereto. 

“Attorneys’ Fees” means attorneys’ fees actually incurred at ordinary and customary rates. 

“Bankruptcy Law” means Title 11, U.S. Code, or any similar Laws of any Jurisdiction for the relief of debtors, and
“Bankruptcy” means the commencement of any case or other action for relief under Bankruptcy Law. 
 “Bank’s
Lien” means the Lien granted to Bank by Borrower pursuant to this Agreement and the other Security Documents. 
 “Borrower
Parties” means Borrower, Guarantors and any other Person that hereafter becomes a party to this Agreement and/or any other Loan Document, and which Person is responsible in whole or in part for any of the Obligations. 

“Borrower’s Interest” means all the right, title and interest of Borrower of whatever kind, nature and description,
whether now existing or hereafter arising. 
 “Borrower’s Representatives” means the persons designated by Borrower
from time to time as Borrower’s Representatives under this Agreement. 
 “Budgeted Costs” means the budgeted costs as
set forth in the Cost Budget. 
 “Business Day” means any day of the year, other than Saturday or Sunday, on which dealings
in United States Dollars are carried on in the London interbank market and banks open for business in New York, New York and in Birmingham, Alabama are not required or authorized to close. 

  
 2 

 “Change in Control” means a change that occurs prior to Substantial Completion
of the Project if, after the change, an Approved Development Manager is no longer responsible for discharging the Development Manager Obligations (it being acknowledged and agreed that, notwithstanding anything in this Agreement or any other Loan
Documents to the contrary, a change in the Equity Owners of any Borrower Party or any interest therein, shall not in and of itself constitute a Change in Control or otherwise give rise to a Default). 

“Closing” means the time and place of actual execution and delivery of this Agreement, the Construction Note, and except as
waived by Bank, the other documents, instruments, and things required by Section 4.1 hereof. 
 “Closing Certificate”
means a certificate of even date herewith in form and substance acceptable to Bank and signed by each Borrower Party. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Collateral” means all of the assets of Borrower of every kind, nature and description, wherever located, whether now owned
or hereafter acquired, including, but not limited to, the following: 
 (A) The Mortgaged Property; 

(B) The Assigned Leases, the Construction Documents and the other Assigned Documents; 

(C) The Rents; 
 (D) All amounts
that may be owing from time to time by Bank to Borrower in any capacity, including, without limitation, any balance or share belonging to Borrower of any Deposit Accounts or other account with Bank; 

(E) All of Borrower’s assets which are or may be subject to Article 9 of the Uniform Commercial Code, together with all replacements
therefor, additions and accessions thereto, and proceeds (including, but without limitation, insurance proceeds) and products thereof, including, without limitation, the following: 

(1) Accounts; 

(2) Chattel Paper; 

(3) Contract Rights; 

(4) Commercial Tort Claims; 

(5) Deposit Accounts; 

(6) Documents; 

(7) Equipment; 

  
 3 

 (8) General Intangibles; 

(9) Instruments; 

(10) Intellectual Property Rights; 

(11) Inventory; 

(12) Investment Property; 

(13) Letter-of-Credit Rights; 

(14) Payment Intangibles; 

(15) Supporting Obligations; 

(16) Rights as seller of Goods and rights to returned or repossessed Goods; 

(17) All existing and future leases and use agreements of personal property entered into by Borrower as lessor with other
Persons as lessees, including without limitation the right to receive and collect all rentals and other monies, including security deposits, at any time payable under such leases and agreements; 

(18) Any existing and future leases and use agreements of personal property entered into by Borrower as lessee with other
Persons as lessors, including without limitation the leasehold interest of Borrower in such property, and all options to purchase such property or to extend any such lease or agreement; 

(19) Fixtures; 

(20) All moneys of Borrower and all bank accounts, deposit accounts, lock boxes and other accounts in which such moneys may at
any time be on deposit or held and all investments or securities in which such moneys may at any time be invested and all certificates, instruments and documents from time to time representing or evidencing any of the same; 

(21) All claims of Borrower in any pending litigation and/or claims for any insurance proceeds; 

(F) All Records; 
 (G) Any and
all other assets of Borrower of any kind, nature or description and which are intended to serve as Collateral under any one or more of the Security Documents; and 

(H) All interest, dividends, Proceeds, products, rents, royalties, issues and profits of any of the property described above, including,
without limitation, all monies due and to become due with respect to such property, together with all rights to receive the same, and all notes, certificates of deposit, checks and other instruments and property from time to time delivered to or
otherwise possessed by Bank for or on behalf of Borrower in substitution for or in addition to any of said property. 

  
 4 

 “Completion Guaranty” means that certain Guaranty of Completion and Selected
Obligations of even date herewith, executed and delivered by Guarantors in favor of Bank, as amended from time to time. 

“Construction Advances” means Advances of the Construction Loan for costs and expenses of labor, materials, equipment,
personalty and fixtures used or to be used in connection with the construction of the Project. 
 “Construction Documents”
means the General Contractor’s Contract, the Architect’s Contracts, the Engineer’s Contracts, the Plans and Specifications, and any and all other agreements entered into by Borrower with any contractor, architect, engineer, or other
Person and relating to the construction, use or occupancy of the Project. 
 “Construction Laws” means all Laws of any
Jurisdiction relating to the construction of the Project and the rules and regulations adopted and publications promulgated pursuant thereto. 

“Construction Loan” means the construction loan which Bank has agreed to advance to Borrower in accordance with the terms of
Article II of this Agreement. 
 “Construction Loan Amount” means an amount not to exceed Twenty-Five Million and No/100
Dollars ($25,000,000.00). 
 “Construction Loan Fee” means a fee in the amount of one-half of one percent (0.5%) of the
Construction Loan Amount (viz., a fee of $125,000.00) payable by Borrower to Bank at the Closing. 
 “Construction Note”
means that certain Promissory Note of even date herewith in the principal amount of $25,000,000.00, executed and delivered by Borrower in favor of Bank, together with any and all extensions, revisions, modifications or amendments at any time made
thereto. 
 “Control”, “Controlled by”, or “Controlling” means the ability to control the
day-to-day operational decisions and management and policies of an applicable Person whether by direct or indirect voting control, contract or otherwise. 

“Cost Budget” means the cost budget set forth on Exhibit “A”. 

“Debt Yield” means the ratio obtained by dividing (i) Net Operating Income, by (ii) the outstanding principal
balance of the Construction Loan at the applicable time (plus the Unfunded Credit Exposure at such time, if any). 

“Default” means the occurrence of an event described in Section 8.1 hereof regardless of whether there shall have
occurred any passage of time or giving of notice that would be necessary in order to constitute such event as an Event of Default. 

  
 5 

 “Default Costs” means all Indemnified Losses incurred by Bank by reason of a
Default. 
 “Default Notice/Borrower” means a notice given by Bank to Borrower that a Default has occurred and providing
with reasonable particularity the event(s) which has/have given rise to the Default. 
 “Default Notice/Guarantors” means a
notice given by Bank to Guarantors that a Default has occurred and providing with reasonable particularity the event(s) which has/have given rise to the Default. 

“Default Rate” means a variable per annum rate of interest equal to the lesser of (1) four percent (4%) in excess
of the interest rate otherwise payable hereunder, or (2) the maximum rate allowed by applicable Laws. 
 “Development
Agreement” means that certain Development Management Agreement of even date herewith between Borrower and Daniel Haywood, LLC, as amended or replaced from time to time. 

“Development Manager Default” means an Event of Default under and as defined in the Development Agreement. 

“Development Manager Obligations” means the obligations of the Development Manager under the Development Agreement. 

“Disability Laws” means all Laws of any Jurisdiction relating to access and facilities for disabled individuals and
applicable to the Mortgaged Property, including without limitation the Americans With Disabilities Act of 1990 (“ADA”), as amended (42 U.S.C. Sections 12101, et. seq.), and the rules and regulations adopted and publications
promulgated pursuant thereto. 
 “Engineer’s Contracts” means any and all contracts with any engineers performing work
with respect to the Project, and any and all renewals, extensions or modifications thereof and guaranties of performance to Borrower thereunder. 

“Environmental Laws” means all Laws of any Jurisdiction relating to the governance or protection of the environment and
applicable to the Mortgaged Property, including without limitation, the Comprehensive Environmental Response Compensation and Liability Act of 1980 (“CERCLA”), as amended (42 U.S.C. Sections 9601, et seq.), the Hazardous Materials
Transportation Act, as amended (49 U.S.C. Sections 1801, et seq.), the Resource Conservation and Recovery Act (“RCRA”), as amended (42 U.S.C. Sections 6901, et seq.), the Clean Water Act, as amended (42 U.S.C. Sections 7401,
et seq.), the Toxic Substances Control Act, as amended (15 U.S.C. Sections 2601, et seq.), and the rules and regulations adopted and publications promulgated pursuant thereto. 

“Environmental Liability Release Date” means the time of the first to occur of the following: (a) the time at which
Bank, or any of its successors or assigns, takes title to or actual possession of the Mortgaged Property following the foreclosure of the Mortgage, (b) the time at 

  
 6 

 
which Bank takes title to or actual possession of the Mortgaged Property following the acceptance by Bank of a deed to the Mortgaged Property in lieu of foreclosure of the Mortgage, (c) the
time at which all of the outstanding balance of the Obligations are paid and satisfied in full and the Mortgage is terminated as provided therein or herein, and (d) the time at which Borrower transfers its interest in the Mortgaged Property to
another Person pursuant to a transfer permitted hereunder, provided that concurrently with such transfer Bank receives from such Person an agreement to indemnify Bank against environmental liabilities substantially identical to the terms provided in
this Agreement. 
 “Environmental Site Assessment Reports” means the reports listed on the attached Exhibit
“B”. 
 “Equity Interests” means any and all ownership or other equitable interests in an applicable Person,
including any interest represented by any capital stock, membership interests, partnership interests, or similar interests, but specifically excluding any interests of any Person solely as a creditor of the applicable Person. 

“Equity Owner” means any Person owning an Equity Interest. 

“Equity Requirement” means the requirement that Borrower contribute a minimum of $10,707,590.00 (with the contribution of the
Land to Borrower being deemed to satisfy $4,290,000.00 of such requirement). 
 “Event of Default” means the occurrence of
an event described in Section 8.1 hereof provided that there shall have occurred any passage of time or giving of notice that would be necessary in order to constitute such event as an Event of Default under Section 8.1 (it being
acknowledged that, notwithstanding any reference in any Loan Document to the “continuance of an Event of Default” or similar phrase, no Borrower Party shall have any right to cure any Event of Default unless Bank, in its sole discretion,
agrees otherwise). 
 “Excluded Taxes” means, with respect to any payment made by or on account of any obligation of any
Borrower Party under any Loan Document any of the following taxes imposed on or with respect to any Person: (a) income taxes (including branch profit taxes) and franchise and similar taxes imposed on any Person as a result of a present or
former connection between such Person and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than connections arising from such Person having executed,
delivered, performed its obligations under, received payments under, or enforced any Loan Document); (b) withholding taxes to the extent that the obligation to withhold amounts existed on the date that such Person became a party to this
Agreement in the capacity under which such Person makes a claim under Section 3.6 or designates a new lending office (except to the extent the transferor to such Person (if any) was entitled, at the time the transfer to such Person became
effective, to receive additional amounts under Section 3.6); (c) taxes that are attributable to a failure to deliver the documentation required to be delivered pursuant to Section 6.14; (d) any tax imposed as a result of the
failure to comply with applicable requirements of Sections 1471 through 1474 of the Code and any published administrative guidance with respect thereto, (e) taxes imposed with respect to an assignment, (f) taxes imposed as a result of such
Person’s gross negligence or willful misconduct, and (g) any interest, penalties, or additions to taxes attributable to any of the foregoing. 

  
 7 

 “Extended Maturity Date” means the date eighteen (18) months from the
Initial Maturity Date. 
 “Extension Fee” means a fee payable by Borrower to Bank on or prior to the Initial Maturity Date
in the amount of one-eighth of one percent (0.125%) of the outstanding principal balance of the Construction Loan as of the Initial Maturity Date. 

“Extension Requirements” means the requirements that as of the Initial Maturity Date (i) Borrower shall have given Bank
at least 30 days (but not more than 90 days) written notice of Borrower’s intention to extend the maturity of the Construction Loan until the Extended Maturity Date; (ii) the Extension Fee shall have been paid; (iii) Substantial
Completion of the Project shall have occurred; (iv) Debt Yield shall be not less than 9.75%, based on Borrower’s trailing three-month annualized operating statement (after appropriate adjustment for extraordinary and non-recurring items),
and (v) there shall not be existing any Payment Default/Note or any Event of Default. 
 “Financial Statements” means
the most recent balance sheet and income statement of Borrower delivered to Bank. 
 “Financing Statements” means the UCC-1
financing statements (including any amendments and continuations) and UCC-3 financing statements required under this Agreement. 

“Fiscal Year” means a twelve-month period of time commencing on the first day of January. 

“Fiscal Year-End” means the end of each Fiscal Year. 

“Force Majeure Event” means any delays which are occasioned by or result from acts of God, inclement weather, labor and
material shortages, labor strikes, work stoppages, war, civil unrest, or riots. 
 “Foreign Person” means any Person that
is not a “United States person” as defined in Section 7701(a)(30) of the Code, provided, however, that Foreign Person shall also include any United States person that is disregarded as an entity separate from its owner, where its
owner is a Foreign Person for U.S. federal income tax purposes. 
 “General Contractor” means any general contractor
performing any work with respect to all or any portion of the Project. 
 “General Contractor’s Contract” means any
agreements with any General Contractor relating to the development and/or construction of the Project, and any and all renewals, extensions or modifications thereof and guaranties of performance thereunder. 

  
 8 

 “Governing Body” means (i) with respect to Borrower, the members of
Borrower; and (ii) with respect to any other Person, the board of directors or members of such Person (or any Person or group of Persons exercising similar authority). 

“Governmental Approvals” means all authorizations, consents, approvals, licenses and exemptions of, registrations and filings
with, and reports to, any Governmental Authority. 
 “Governmental Authority” means any nation or government and any
political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory, or administrative functions pertaining thereto, which has or asserts jurisdiction over Bank, any Borrower Party, or the Collateral. 

“Guarantor Cure Period” means a period of time beginning the date a Default Notice/Guarantors is given and ending
(i) with respect to a Payment Default, the fifth (5th) calendar day thereafter, and (ii) with respect to a Default which is not a Payment Default and arising under paragraph
(B) of Section 8.1, the thirtieth (30th) day thereafter or such longer period up to ninety (90) days if such failure is not capable of being cured within thirty (30) days
(provided that Guarantors have commenced and continue to diligently pursue cure of such Default) (it being acknowledged that no cure period under this definition shall exist with respect to any other Default). 

“Guarantor Event of Default” means an Event of Default which is attributable to the occurrence of an event with respect to a
Guarantor. 
 “Guarantors” means Daniel Realty Company, LLC, Daniel Investment Partners, LLC, and Daniel Realty Services,
L.L.C. and/or any Replacement Guarantor (upon execution of an applicable Replacement Guaranty). 
 “Hazardous Materials”
and “Hazardous Substances” means “hazardous materials” and “hazardous substances” as defined under any applicable Environmental Law. 

“Improvements” means the “Improvements” as defined in the Mortgage. 

“In Balance” means, with respect to the Construction Loan and as reasonably determined by Bank, that the undisbursed portion
of the Construction Loan, plus any sums which may have been paid for by Borrower and as reflected in the Cost Budget, are sufficient in the reasonable judgment of Bank to pay for all construction and non-construction costs applicable to the
completion of the Project, including all interest and other amounts which may accrue or be payable under this Agreement and the other Loan Documents. 

“Indebtedness” means, as to any Person, all items of indebtedness, obligation or liability, whether matured or unmatured,
liquidated or unliquidated, direct or contingent, joint or several, including, but without limitation or duplication: 
 (A) All obligations
of such Person for borrowed money; 

  
 9 

 (B) All indebtedness guaranteed, directly or indirectly, in any manner, or endorsed (other than
for collection or deposit in the ordinary course of business) or discounted with recourse; 
 (C) All indebtedness in effect guaranteed,
directly or indirectly, through agreements, contingent or otherwise: 
 (1) To purchase such indebtedness; or 

(2) To purchase, sell or lease (as lessee or lessor) property, products, materials or supplies or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of such indebtedness or to assure the owner of the indebtedness against loss; or 

(3) To supply funds to or in any other manner invest in the debtor; 

(D) All indebtedness secured by (or which the holder of such indebtedness has a right, contingent or otherwise, to be secured by) any
mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance upon property owned or acquired subject thereto, whether or not the liabilities secured thereby have been assumed; and 

(E) All indebtedness incurred as the lessee of goods or services under leases that should be reflected on the lessee’s balance sheet.

 “Indemnified Losses” means all actual damages, dues, penalties, fines, costs (including costs of collection and court
fees), amounts paid in settlement, taxes (other than Excluded Taxes), losses, expenses, and fees (including Attorneys’ Fees and expenses), but excluding any of the foregoing to the extent caused by the fraud, gross negligence or willful
misconduct of Bank or its Affiliates. 
 “Initial Maturity Date” means the date which is forty-two (42) months from
the date of this Agreement (viz., April     , 2018). 
 “Inspector” means the Person from time to time
designated by Bank, in its discretion, to serve as such hereunder. 
 “Interest Rate Conversion Date” means the Payment Due
Date coinciding with the expiration of any applicable One Month LIBOR Rate Interest Period. 
 “Jurisdiction” means each
and every nation or government or any political subdivision thereof. 
 “Land” means the “Land” as defined in the
Mortgage. 
 “Laws” means each and all laws, treaties, ordinances, statutes, rules, regulations, orders, injunctions, writs
or decrees of any Governmental Authority, or any court or similar entity established by any thereof, and any requirement of Licenses and Permits, whether now in effect or hereafter enacted, including without limitation Construction Laws, Disability
Laws, and Environmental Laws. 

  
 10 

 “LIBOR Business Day” means a day on which the office of Bank at which payments
under this Agreement and/or the Notes are to be made is open for business and on which dealings in U.S. dollar deposits are carried out in the London interbank market. 

“Licenses and Permits” means all building permits, certificates of occupancy, and other permits, licenses, approvals, and
authorizations of any Governmental Authority necessary to own, use, occupy, operate, or maintain the Mortgaged Property or any part thereof. 

“Lien” means any mortgage, pledge, encumbrance, charge, security interest, assignment or other preferential arrangement of
any nature whatsoever, including any conditional sale agreement or other title retention agreement. 
 “Loans” means the
loans and other extensions of credit, if any, being made by Bank to Borrower pursuant to this Agreement, including, but not limited to, the Construction Loan. 

“Loan Documents” means this Agreement, the Notes, the Security Documents, the Completion Guaranty, the Payment Guaranty, the
Closing Certificates, and any and all other documents or instruments of any kind heretofore, contemporaneously herewith or hereafter executed or delivered in connection with, or evidencing, securing, guaranteeing or relating to, the Loans, whether
heretofore, simultaneously herewith, or hereafter delivered, together with any and all extensions, revisions, modifications or amendments at any time made to any of the foregoing. 

“London Interbank Offered Rate” means, with respect to any One Month LIBOR Rate Interest Period, the rate for deposits in
U.S. dollars on or up to two LIBOR Business Days preceding the first day of such One Month LIBOR Rate Interest Period as appearing on Reuters Page LIBOR01 (or such other page or service as may replace Reuters Page LIBOR01 as nominated or designated
by the British Bankers’ Association for the purpose of displaying London interbank offered rates for U.S. Dollar deposits) and for a period comparable to the term of such One Month LIBOR Rate Interest Period to be the London Interbank
Offered Rate. 
 “Major Construction Contract” means the General Contractor’s Contract and any other contract or
subcontract relating to the construction of the Project, and which contract provides for an aggregate contract price greater than $1,000,000.00. 

“Management Agreement” means a management agreement to be entered into between Borrower and a property manager selected by
Borrower and approved by Bank (such approval not to be unreasonably withheld or delayed), as amended from time to time. 

“Margin” means two and fifteen-hundredths percent (2.15%). 

“Material Adverse Change” means the occurrence of an event giving rise to a Material Adverse Effect. 

  
 11 

 “Material Adverse Effect” means, as reasonably determined by Bank, a material
adverse effect on (a) the financial condition of any Borrower Party after the date of this Agreement; (b) the rights and remedies of Bank under any Loan Document; (c) the ability of any Borrower Party to perform its Obligations under
any Loan Document to which it is or is to be a party; (d) the priority of Bank’s Lien; or (e) the ability of any Person a party to a Major Construction Contract to timely perform its obligations thereunder (including the termination
of a Major Construction Contract), unless Borrower provides in substitution thereof assurances as may be reasonably required by Bank to evidence that such obligations will be timely performed by a Person and under terms and conditions reasonably
acceptable to Bank. 
 “Maturity Date” means, as applicable, the Initial Maturity Date or the Extended Maturity Date. 

“Mortgage” means that certain Mortgage and Security Agreement of even date herewith, executed and delivered by Borrower in
favor of Bank, together with all modifications and amendments hereafter made. 
 “Mortgaged Property” means the
“Mortgaged Property” as defined in the Mortgage. 
 “Net Operating Income” means, as of an applicable date: 

(1) annual gross rental and other revenue arising from the operation of the Project during the applicable period, exclusive of
refunds, uncollectible accounts, sales of furniture, fixtures and equipment, insurance proceeds (other than business interruption or other loss of income insurance), condemnation proceeds, any disbursements to Borrower from any reserve account, and
any other extraordinary receipts, less 
 (2) (i) operating expenses incurred with respect to the Project during the
applicable period relating to the operating, maintenance and management of the Project that are incurred by Borrower on a regular or periodic basis, including, but not limited to the ordinary repair and maintenance expenses incurred, utilities,
insurance, license fees, administrative expenses, property taxes, advertising expense, legal fees, payroll and related taxes, management fees, lease payments as approved by Bank, and other similar costs, but excluding depreciation and amortization
and any other non-cash expenses, debt service and contributions to any reserve, and non-recurring capital expenditures, and (ii) reserves for replacement of not less than $200.00 per apartment unit, all as reasonably determined by Bank on an
annualized basis. 
 “Notes” means the Construction Note and any other notes delivered by Borrower to Bank pursuant to this
Agreement. 
 “Obligations” means the obligations (including obligations of performance) and liabilities of any Borrower
Party to Bank of every kind and description whatsoever, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter incurred, contracted or arising, or acquired by Bank from any source, joint or several, liquidated or
unliquidated, regardless of how they arise or by what agreement or instrument they may be 

  
 12 

 
evidenced or whether they are evidenced by any agreement or instrument, and whether incurred as maker, endorser, surety, guarantor, general partner, drawer, tort-feasor, indemnitor, account party
with respect to a letter of credit or otherwise, and in all cases incurred pursuant to any Loan Document, and any and all extensions and renewals of any of the same, including but not limited to the obligation: 

(A) To pay the principal of and interest on the Notes in accordance with the respective terms thereof and/or hereof, including any and all
extensions, modifications, and renewals thereof and substitutions therefor; 
 (B) To pay, repay or reimburse Bank for all amounts owing
hereunder or under any of the other Loan Documents, including the all Indemnified Losses and Default Costs; and 
 (C) To reimburse Bank, on
demand, for all of Bank’s expenses and costs, including Attorneys’ Fees and expenses, in connection with the preparation, amendment, modification, or enforcement of this Agreement and the other Loan Documents, including, without
limitation, any proceeding brought or threatened to enforce payment of any of the obligations referred to in the foregoing paragraphs (A) and (B) 

“One Month Adjusted LIBOR Rate” means, for each respective One Month LIBOR Rate Interest Period, an interest rate equal to
the sum of (i) the applicable One Month LIBOR Rate, plus (ii) the Margin. 
 “One Month LIBOR Rate” means, as
applicable to each respective One Month LIBOR Rate Interest Period, a per annum rate of interest equal to the quotient obtained (stated as an annual percentage rate rounded upward to the next higher 1/100th of 1%) by dividing (A) the London
Interbank Offered Rate, by (B) 1.00 minus any Reserve Requirement for the One Month LIBOR Rate Interest Period (expressed as a decimal). 

“One Month LIBOR Rate Interest Period” means (i) in the case of a One Month LIBOR Rate Interest Period commencing on the
date of Closing, a period from such date to the first (1st) Payment Due Date thereafter, and (ii) with respect to any other One Month LIBOR Rate Interest Period, a period from the
applicable Interest Rate Conversion Date to the first (1st) Payment Due Date thereafter. 

“Ordinary Course of Business” means an action taken by a Person only if: 

(A) Such action is consistent with the past practices of such Person and is taken in the ordinary course of the normal day-to-day operations
of such Person; 
 (B) Such action is not required to be authorized by the Governing Body of such Person; and 

(C) Such action is similar in nature and magnitude to actions customarily taken, without any authorization by any Governing Body, in the
ordinary course of the normal day-to-day operations of other Persons that are in the same line of business as such Person. 

  
 13 

 “Organizational Documents” means (i) the articles of incorporation and the
bylaws of a corporation, (ii) the partnership agreement and any statement of partnership of a general partnership, (iii) the limited partnership agreement and the certificate of limited partnership of a limited partnership, (iv) the
articles of organization or certificate of formation and the operating agreement of a limited liability company, (v) any charter or similar document adopted or filed in connection with the creation, formation, or organization of a Person, and
(vi) any amendment to any of the foregoing. 
 “Out Of Balance” means, with respect to the Construction Loan, that the
Construction Loan is not In Balance. 
 “Participant” means any bank or financial institution chartered under federal or
state law or any Affiliate of Bank (but, for the avoidance of doubt, expressly excluding any Foreign Person) which either enters into a participation agreement with Bank and/or to whom Bank assigns all or a portion of its rights and obligations
under this Agreement and the other Loan Documents. 
 “Payment Default” means any Default which may be cured with the
payment of money. 
 “Payment Default/Note” means any default in the payment of any installment of principal or interest
owing under any Note when due. 
 “Payment Due Date” means the tenth
(10th) day of each calendar month during the term of this Agreement. 

“Payment Guaranty” means that certain Payment Guaranty of even date herewith, executed and delivered by Guarantors in favor
of Bank, as amended from time to time. 
 “Payment Guaranty Reduction Date” means the date on which Borrower provides
documentation as required by Bank to evidence that Substantial Completion of the Project shall have occurred, and Bank has provided Borrower with written acknowledgment of the same, provided that on such date there is not existing any Default
(provided, however, that if such Default(s) is/are cured within any applicable cure period under Section 8.1 or, if later, within any applicable Guarantor Cure Period, then the Payment Guaranty Reduction Date shall be the date of such cure if
on such date there is not existing a Default, and upon request of Borrower or any Guarantor, Bank will deliver to Guarantors a writing evidencing the same, if and when such is the case). 

“Permitted Leases and Other Transfers of Collateral” means (i) the Qualified Leases and any other leases and transfers
of Collateral approved by Bank in its sole but commercially reasonable discretion, and (ii) easements or similar conveyances reasonably necessary to permit construction and operation of the Project as contemplated by the Plans and
Specifications, including easements to public utilities, Governmental Authorities, or right-of-way conveyances. 

  
 14 

 “Permitted Liens” means: 

(A) Bank’s Lien; 
 (B)
Liens and any other easement, covenant, reservation, right-of-way, restriction or other matter of title as set forth in the Title Insurance Policy; 

(C) The following Liens, if the granting of such Lien or the attachment of such Lien to the Collateral (i) does not otherwise constitute
a Default under the terms of this Agreement, and (ii) does not give rise to a Material Adverse Change: 
 (1) If the
validity or amount thereof is being contested in good faith by appropriate and lawful proceedings, so long as levy and execution thereon have been stayed and continue to be stayed: 

a. Liens for taxes, assessments or charges due and payable and subject to interest or penalty; 

b. Liens upon, and defects of title to, real or personal property, including any attachment of personal or real property or
other legal process prior to adjudication of a dispute on the merits; 
 c. Liens of mechanics, materialmen, warehousemen,
carriers, or other like Liens; and 
 d. Adverse judgments on appeal; 

(2) Pledges or deposits made in the Ordinary Course of Business to secure payment of workmen’s compensation, or to
participate in any fund in connection with workmen’s compensation, unemployment insurance, old age pensions or other social security programs; 

(3) Good faith pledges or deposits made in the Ordinary Course of Business to secure performance of bids, tenders, Contracts
(other than for the repayment of borrowed money) or leases, not in excess of ten percent (10%) of the aggregate amount due thereunder, or to secure statutory obligations, or surety, appeal, indemnity, performance or other similar bonds required
in the Ordinary Course of Business; and 
 (4) Purchase money security interests granted in the Ordinary Course of Business
to secure not more than one hundred percent (100%) of the purchase price of assets; and 
 (D) Such other matters of title approved by
Bank in writing (including any easement, covenant or restriction now or hereafter affecting the Collateral). 
 “Person”
means any individual, corporation, limited liability company, partnership, association, joint-stock company, trust, unincorporated organization, joint venture, court or Governmental Authority. 

  
 15 

 “Petroleum Products” means “petroleum products” as defined under any
applicable Environmental Law. 
 “Place for Payment” means a place for payment as from time to time designated by Bank,
which place for payment currently is at the address of Bank as hereinafter provided for with respect to notices. 
 “Plans and
Specifications” means any and all plans and specifications, drawings and working drawing for the Project, and any and all modifications thereof and changes thereto. 

“Project” means a 292-unit apartment complex and related site improvements to be constructed at the Land in accordance with
the Plans and Specifications. 
 “Qualified Lease” means a tenant lease of an apartment unit at the Project which
(i) is in full force and effect and, except for rent payments not more than thirty (30) days past due, is not in default, (ii) is written on a lease substantially in the form approved by Bank, and (iii) is not leased to any
Person affiliated with Borrower Party; provided, however, that not more than five units may be occupied by a resident manager or other apartment personnel if such units are provided as a part of such Person’s compensation package. 

“Quarter” means a period of time of three consecutive calendar months. 

“Quarter-End” means the last day of each of the months of March, June, September, and December. 

“Records” means correspondence, memoranda, tapes, discs, microfilm, microfiche, papers, books and other documents, or
transcribed information of any type, whether expressed in ordinary or machine language, and all filing cabinets and other containers in which any of the foregoing is stored or maintained. 

“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System from time to time in effect and
shall include any successor or other regulation or official interpretation of said Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System. 

“Regulation “T”, Regulation “U”, and Regulation “X”” means Regulation T, Regulation U, and
Regulation X, respectively, of the Board of Governors of the Federal Reserve System as now or from time to time hereafter in effect and shall include any successor or other regulation or official interpretation of said Board of Governors relating to
the extension of credit by banks for the purpose of purchasing or carrying margin stocks applicable to member banks of the Federal Reserve System. 

“Rents” means all the rents, issues, and profits now due and which may hereafter become due under or by virtue of the
Assigned Leases, together with all claims and rights to the payment of money at any time arising in connection with any rejection or breach of any of the Assigned Leases under Bankruptcy Law, including without limitation, all rights to recover
damages arising out of such breach or rejection, all rights to charges payable by a tenant or trustee in respect of the leased premises following the entry of an order for relief under Bankruptcy Law in respect of a tenant and all rentals and
charges outstanding under the Assigned Leases as of the date of entry of such order for relief. 

  
 16 

 “Replacement Guaranties” means guaranties in substantially the same form as the
Payment Guaranty and the Completion Guaranty, incorporating such non-substantive changes as appropriate in light of the identity of the Replacement Guarantors. 

“Replacement Guarantor” means a replacement guarantor which is approved by Bank in its commercially reasonable discretion.

 “Replacement Guarantor Closing Certificates” means closing certificates in substantially the same form as the Closing
Certificates, incorporating such non-substantive changes as appropriate in light of the identity of the Replacement Guarantors. 

“Replacement Guarantor Requirement” means the requirement that, within 30 days after Bank shall have given Borrower Parties
written notice of a Guarantor Event of Default (unless Bank is prohibited from giving such notice pursuant to applicable laws or court order, in which case the 30 period of time shall commence at the time of the occurrence of the Guarantor Event of
Default), one or more Replacement Guarantors (i) shall have executed and delivered to Bank the Replacement Guaranties, Replacement Guarantor Closing Certificates and such other documentation in connection therewith as may be reasonably required
by Bank in its commercially reasonable discretion, (ii) shall have paid all of Bank’s out-of-pocket costs (including Attorney’s Fees) incurred in connection therewith, and (iii) shall have submitted to Bank such financial
information and documentation as may be reasonably required by Bank, and the creditworthiness of Replacement Guarantors shall be approved by Bank and acceptable to Bank in all respects; provided, however, that at the time a Replacement Guarantor
becomes a Replacement Guarantor, unless otherwise agreed by Bank, a Replacement Guarantor shall have a net worth and liquid assets in an amount as required by Bank, all as determined by Bank in its reasonable discretion. 

“Required Endorsements” means an ALTA Comprehensive 1 endorsement, an ALTA Form 3.0 zoning endorsement, a survey endorsement
specifically insuring Bank that the survey required herein is accurate and accurately depicts the same real estate covered by the Title Insurance Policy, an access endorsement, a usury endorsement, a variable rate endorsement, endorsements for
future advances under the Mortgage, endorsements for mechanics’ and materialmen’s liens (or the deletion of the exception for mechanics’ and materialmen’s liens with a pending disbursement clause), and any other endorsements of
the Title Insurance Policy required by Bank. 
 “Reserve Requirement” with respect to a One Month LIBOR Rate Interest
Period, means the weighted average during the One Month LIBOR Rate Interest Period of the maximum aggregate reserve requirement (including all basic, supplemental, marginal and other reserves and taking into account any transitional adjustments or
other scheduled changes in reserve requirements during the One Month LIBOR Rate Interest Period) which is imposed under Regulation D. 

  
 17 

 “Retainage” means ten percent (10%) of Construction Advances until the
Project is 50% complete, and five percent (5%) thereafter, all as determined by Bank in its sole, but commercially reasonable, discretion (it being understood that there shall be no retainage for (i) “soft costs”,
(ii) “direct material purchases” by the General Contractor for which no Retainage is required under the General Contractor’s Contract, and (iii) the Retainage itself, provided that upon lien free completion of
sub-contractors work the retainage will be released with respect to such work. 
 “Security Documents” means all documents
or instruments of any kind executed or delivered in connection with the Loans, whether delivered prior to, at, or after the Closing, wherein Bank is granted a Lien in Borrower Party’s assets, and all documents and instruments executed and
delivered in connection with any of the foregoing, together with any and all extensions, revisions, modifications or amendments at any time made to any of such documents or instruments, including but not limited to this Agreement, the Mortgage, the
Assignment of Management Agreement, and the Financing Statements. 
 “Solid Wastes” means “solid wastes” as
defined under any applicable Environmental Law. 
 “Solvent” and “Solvency” mean, with respect to any
Person on a particular date, that on such date (a) the fair value of the property and assets of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person, (b) the
present salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not
believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a
transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
 “Subordination of
Development Agreement” means that certain Subordination of Development Agreement of even date herewith between Daniel Haywood, LLC and Bank, together with all modifications and amendments hereafter made. 

“Substantial Completion of the Project” means the date on which the Project is completed substantially in accordance with
applicable Laws, as evidenced by a certificate of occupancy or completion (or other comparable evidence of completion) issued by the appropriate Governmental Authority for the Project. 

“Third Person” means any Person not a party to this Agreement. 

“Title Insurance Company” means First American Title Insurance Company or other title insurance company acceptable to Bank in
its reasonable discretion and authorized under applicable Law to issue the Title Insurance Policy. 

  
 18 

 “Title Insurance Policy” means a standard ALTA form title insurance policy with
respect to the Mortgaged Property and reasonably acceptable to Bank in its discretion, containing the Required Endorsements, dated the date of Closing and endorsed or “dated-down” to a date no more than three (3) days prior to each
Advance, and issued by the Title Insurance Company to Bank upon the Mortgaged Property, subject only to those exceptions and matters of title acceptable to Bank, in Bank’s reasonable discretion, including the Permitted Liens. 

“Unfunded Credit Exposure” means, at an applicable time, Bank’s commitment to make Advances or otherwise provide
financial accommodations to Borrower under the Loan Documents (it being understood and agreed that; 
 (A) after and during the continuance
of a Default and after the Advancement Termination Date, absent an agreement to the contrary, Bank shall no longer be obligated to make any further Advances or otherwise extend credit, and (i) Borrower and Bank may at any time agree that the
obligation of Bank to make any further Advances or otherwise extend credit is or has been terminated, and (ii) upon request of Borrower, Bank shall acknowledge if there is (or is not) any Unfunded Credit Exposure), and 

(B) to the extent that, at the applicable time, there are any expenses and costs which are not Construction Advances and which Bank is
permitted (but not required) to advance under the Loan Documents for or on account of the Borrower, and which costs and expenses have not so been advanced, such amounts shall not be considered Unfunded Credit Exposure (and for avoidance of doubt, as
of the date of this Agreement and prior to the initial Advance, Borrower and Bank acknowledge that the Unfunded Credit Exposure is equal to the Construction Loan Amount and is only with respect to Construction Loan Advances and no other extensions
of credit)). 
 “Unsecured Indebtedness” means Indebtedness not secured by any Lien. 

“Without Notice” means without demand of performance or other demand, advertisement, or notice of any kind to or upon the
applicable Person, except as may be expressly required by applicable Law or expressly provided in the Loan Documents. 
 1.2 Accounting
Terms. Accounting terms used and not otherwise defined in this Agreement have the meanings determined by, and all calculations with respect to accounting or financial matters unless otherwise provided herein shall be computed in accordance with,
sound accounting principles, consistently applied. 
 1.3 Construction of Terms. Whenever used in this Agreement, the singular number
shall include the plural and the plural the singular, pronouns of one gender shall include all genders, and use of the terms “herein”, “hereof”, and “hereunder” shall be deemed to be references to this Agreement in its
entirety unless otherwise specifically provided. 
 1.4 Computation of Time Periods. For purposes of computation of periods of time
hereunder, the word “from” means “from and including”, the words “to” and “until” each mean “to but excluding”, and the word “through” means “through and including”. 

  
 19 

 1.5 UCC Terms. As used herein, unless the context clearly requires to the contrary, terms
not specifically defined herein shall have the same respective meanings as are given to those terms in the Uniform Commercial Code as presently adopted and in effect in the State of Delaware (except in cases and with respect to Collateral when the
perfection, the effect of perfection or nonperfection, and the priority of a Lien in the Collateral is governed by another Jurisdiction, in which case such capitalized words and phrases shall have the meanings attributed to those terms under such
other Jurisdiction). 
 1.6 Reference to Borrower Parties. Any reference in this Agreement to (i) “Borrower Party”
shall mean each and any Borrower Party, singularly, and (ii) “Borrower Parties” shall mean all Borrower Parties, collectively. 

ARTICLE II 
  

	2.	THE CONSTRUCTION LOAN 

 2.1 General Terms. Subject to the terms hereof, until the
Advancement Termination Date, Bank will make Advances of the Construction Loan to Borrower in an aggregate amount not to exceed the Construction Loan Amount. If at any time the unpaid principal balance of the Construction Loan exceeds the amount
Borrower could borrow at such time as set forth herein, Borrower shall promptly (and in any case, no later than five (5) Business Days after Bank’s request) pay or cause to be paid such sums to Bank, to the extent necessary to reduce the
Construction Loan to an amount which Borrower could borrow at that time. 
 2.2 The Construction Note. Borrower’s obligation to
repay the Construction Loan shall be evidenced by the Construction Note. 
 2.3 Interest Rate. During the entire term of the
Construction Loan, the outstanding principal balance of the Construction Loan shall bear interest at the One Month Adjusted LIBOR Rate during each applicable One Month LIBOR Rate Interest Period. 

2.4 Payments of Principal and Interest. Principal and interest on the Construction Loan shall be payable as follows: 

(A) On the first Payment Due Date following the date of the Construction Note, on each successive Payment Due Date thereafter until the
Advancement Termination Date, and on the Advancement Termination Date, Borrower shall pay to Bank all accrued and unpaid interest on the outstanding principal balance of the Construction Note. 

(B) On the first Payment Due Date following the Advancement Termination Date and on each successive Payment Due Date thereafter until the
entire indebtedness evidenced by the Construction Note is paid in full, Borrower shall pay to Bank (i) all accrued and unpaid interest on the outstanding principal balance of the Construction Note, and (ii) a principal payment equal to a
payment in such an amount as would be necessary to amortize the principal balance and accrued interest on a monthly amortization of principal and interest on a hypothetical loan where (x) the principal indebtedness being amortized is equal to
the principal indebtedness owing under the Construction Loan as of the Advancement Termination Date, (y) the interest rate during the amortization period is equal to six percent (6%) per annum, and (z) the amortization period is three
hundred sixty (360) months. 

  
 20 

 (C) If the Extension Requirements have not been met, then the outstanding principal balance of
the Construction Loan, together with all accrued and unpaid interest thereon, shall be due and payable to Bank on the Initial Maturity Date. 

(D) If the Extension Requirements have been met, then on the first Payment Due Date following the Initial Maturity Date and on each successive
Payment Due Date thereafter until the entire indebtedness evidenced by the Construction Note is paid in full, Borrower shall pay to Bank the payments of principal and interest required pursuant to Section 2.4(B). 

(E) If not earlier demanded pursuant to Section 9.3 hereof, the outstanding principal balance of the Construction Loan, together with all
accrued and unpaid interest thereon, shall be due and payable to Bank on the Extended Maturity Date. 
 2.5 Use of Proceeds. The
proceeds of the Construction Loan shall be used to purchase the Land and finance the construction of the Project as contemplated in the Cost Budget. 

2.6 Disbursement of the Construction Loan. Subject to compliance by Borrower with all of the provisions of this Agreement, the
Construction Loan shall be disbursed in several Advances at such time, in such amounts and in accordance with the following procedures (provided that Bank shall be under no obligation to make any Construction Advances until all of the conditions
contained in Section 4.2 of this Agreement have been satisfied): 
 (A) Borrower will provide evidence as reasonably required by Bank
to reflect that Borrower has contributed money and paid expenses of the Project so that the Equity Requirement has been met. 
 (B) Not less
than ten (10) Business Days before the date on which Borrower desires an Advance, Borrower shall concurrently submit to Bank and the Inspector a written requisition in form reasonably satisfactory to Bank accompanied by a cost breakdown showing
the cost of Improvements to the date of the requisition and, if required by Bank, copies of all invoices relating to the work performed. The cost breakdown shall also show the percentage of completion of each line item of Budgeted Costs and the
accuracy of the cost breakdown shall be certified by Borrower, by its architect, by the Inspector and by the General Contractor or, as to any items not within the scope of a general contract, by the contractors directly responsible to Borrower for
such items. Borrower appoints each of the Borrower’s Representatives as its agent to make disbursement requests. Borrower may hereafter by written notice to Bank appoint one or more other Persons to make disbursement requests, provided any such
notice is not effective until actually received by Bank. 
 (C) The completed construction will be reviewed by the Inspector, who will
certify to Bank as to the value of completed construction, percentage of completion and compliance with Plans and Specifications in all material respects. 

  
 21 

 (D) The maximum allowable Advance will be allowable nonconstruction disbursements actually paid
or incurred by Borrower and related to the Improvements, in an amount reasonably determined by Bank to be reasonable and in accordance with the Cost Budget, including any unpaid loan fees and expenses and accrued interest, plus the lesser of
(a) the land cost and actual cost of work and labor done on the Improvements or (b) the value of completed construction to date (as reasonably determined by Bank on the basis of its review of Borrower’s requisition and cost breakdown
and the review by Bank’s representative and certification of the Inspector). The Advance to be made will be the maximum allowable Advance less the Retainage. The Retainage shall be advanced only after substantial completion of the applicable
work reasonably satisfactory to the Inspector and the furnishing to Bank of evidence satisfactory to Bank that such completion is free of all mechanic’s and materialman’s Liens. In the event Bank shall reasonably determine the value of
completed construction to date to be less than the same value as determined by the Inspector, Bank shall notify Borrower in writing of the reasons for Bank’s determination. 

(E) Bank shall not be required to make any Advance for any materials supplied for, or intended to be utilized in connection with, the
construction of the Improvements but not yet affixed to or incorporated into the improvements to the Project, unless such materials are fully insured and protected with adequate safeguards as reasonably required by Bank to prevent loss, theft,
damage or commingling with other materials, are materials which are scheduled for incorporation into the Project not more than sixty (60) days from delivery thereof (except that Bank may advance for materials scheduled for incorporation into
the Project sixty (60) days or more from delivery if Borrower provides to Bank such assurances as Bank may reasonably require that such materials are stored within reasonable proximity to the Project, title to such materials are in the name of
Borrower, the materials are properly insured, Bank’s Lien is properly perfected with respect to such materials, and no Person claims any title or lien rights to the same which are adverse to that of Borrower and Bank (other than a Permitted
Lien). 
 (F) Advances shall be made for Budgeted Costs on each line item shown on the Cost Budget only up to the amount budgeted in the
Cost Budget for such line item. A reallocation among line items (including the reallocation of savings from one line to another) may be made upon prior written notice to Bank, provided the Construction Loan remains In Balance. Disbursements may be
made to pay interest accrued on the Construction Loan only to the extent cash flow is insufficient to do so, notwithstanding that the Cost Budget contains unadvanced sums for interest or carry. 

(G) Notwithstanding the foregoing, Bank shall not be required to make any Advance of the Construction Loan (i) more than once each month,
or (ii) to the extent that such Advance would cause the Construction Loan to be Out Of Balance. 
 (H) Regardless of whether Borrower
has submitted a requisition therefor, Bank may, in its discretion, from time to time upon prior written notice to Borrower, make Advances to pay amounts which become due for construction and nonconstruction expenses for which Borrower is responsible
for payment, including, without limitation, interest on the Construction Loan during the continuance of a Default. Such Advances may be made directly to parties to whom such amounts are due or to Bank to reimburse Bank for sums due to it. All such
Advances and Advances to parties other than Borrower shall be deemed Advances of the Construction Loan to Borrower hereunder and shall be secured to the same extent as if they were made directly to Borrower. 

  
 22 

 (I) Bank may, in its discretion, advance Construction Loan funds through a disbursement agent
appointed by Bank at Borrower’s expense, and any Advance to such agent will be deemed to be an Advance to Borrower. 
 (J) The making
of an Advance by Bank shall not constitute Bank’s approval or acceptance of the construction theretofore completed. Bank’s inspection and approval of the Plans and Specifications, the construction of the Improvements, or the workmanship
and materials used therein, shall impose no liability of any kind on Bank, the sole obligation of Bank as the result of such inspection and approval being to make the Advances if, and to the extent, required by this Agreement. 

(K) The Budgeted Costs include (1) an interest reserve, which interest reserve will be advanced by Bank to pay interest on the
Construction Loan as it becomes due, unless Borrower pays interest when due from other than Construction Loan funds; (2) a contingency reserve, which contingency reserve shall be disbursed by Bank (x) until the occurrence of a Payment
Default or an Event of Default, to Borrower (subject to Bank’s commercially reasonable approval of the amounts and uses of such contingency reserves), and (y) after an Event of Default, at Bank’s discretion to effectuate the purposes
of this Agreement; and (3) a developer’s fee in an amount up to $1,037,114.00, which fee may be paid pro rata in equal monthly payments over a period beginning the commencement of construction and ending on the Advancement Termination
Date. Interest will be payable by Borrower to Bank on all amounts advanced for the foregoing. 
 The provisions of this Section 2.6 are
solely for the benefit of Bank. Bank may make one or more Advances to Borrower upon written or oral disbursement requests not complying with the requirements of this Section, and such Advances will, in the absence of bad faith by Bank, be
conclusively deemed to be Advances to Borrower hereunder. 
 2.7 Representations and Warranties. Each submission by Borrower to Bank
of a requisition for an Advance of the Construction Loan shall constitute Borrower’s representation and warranty to Bank that (i) all completed construction is substantially in accordance with the Plans and Specifications, (ii) all
construction and nonconstruction costs for the payment of which Bank has previously advanced funds have in fact been paid, and (iii) there is not existing any Default. 

2.8 Additional Information. If Bank or the Title Insurance Company shall so require, Borrower will submit with the requisitions for
Advances lien waivers in form satisfactory to Bank and the Title Insurance Company, showing amounts paid and amounts due to all Persons furnishing labor or materials in connection with the completion of the Improvements. If the Title Insurance
Policy is not written so as to insure any and all disbursements of the Construction Loan up to the face amount of the Mortgage (including coverage for losses sustained by reason of the lack of priority of the insured Mortgage over any statutory Lien
for services, labor or materials furnished subsequent to the date of this Agreement), Borrower shall have the Title Insurance Company deliver to Bank an endorsement to the Title Insurance Policy insuring each Advance being requisitioned and insuring
Bank for said Advance under the Title Insurance Policy. 

  
 23 

 ARTICLE III 
  

	3.	PAYMENTS, ADDITIONAL COSTS, ETC. 

 3.1 Default Rate. Notwithstanding any provision herein
or in any other Loan Document to the contrary, upon the occurrence and during the continuance of an Event of Default, the interest rate payable on the Loans shall be the Default Rate. 

3.2 Late Payments. If any scheduled payment (other than the final payment of the balance of the Construction Loan on the Maturity
Date), whether principal, interest or principal and interest, is late ten (10) days or more, Borrower agrees to pay a late charge equal to five percent (5%) of the amount of the payment which is late, but not more than the maximum amount
allowed by applicable Laws. The foregoing provision shall not be deemed to excuse a late payment or be deemed a waiver of any other rights Bank may have under this Agreement, including, subject to the terms hereof, the right to declare the entire
unpaid principal and interest immediately due and payable. 
 3.3 Payment to Bank. 

(A) All sums payable to Bank under this Agreement or under any other Loan Document shall be paid directly to Bank in immediately available
funds or by good check at the Place for Payment. If Bank shall send Borrower statements of amounts due hereunder, such statements shall be considered correct and conclusively binding on Borrower unless Borrower notifies Bank to the contrary within
thirty (30) days of its receipt of any statement which it deems to be incorrect. 
 (B) All payments to be made by Borrower hereunder
will be made to Bank not later than 1:00 p.m. at the Place for Payment. Payments received after 1:00 p.m. at the Place for Payment shall be deemed to be payments made prior to 1:00 p.m. at the Place for Payment on the next succeeding Business Day.
Borrower hereby authorizes Bank to charge its accounts with Bank in order to cause timely payment of amounts due hereunder to be made (subject to sufficient funds being available in such account for that purpose). 

(C) At the time of making each such payment, Borrower shall, subject to the other terms and conditions of this Agreement, specify to Bank the
Loan or other obligation of Borrower hereunder to which such payment is to be applied. In the event that Borrower fails to so specify the relevant Loan or if an Event of Default shall have occurred and be continuing, Bank may apply such payments to
the Loans in such manner as it may determine in its discretion. 
 3.4 Prepayment. Borrower may pre-pay the Loans in full or, from
time to time, in part, without premium or penalty. In the case of any partial prepayment, Bank shall have the right to require and shall permit the remaining principal balance to be re-amortized over the remaining term of the applicable Loan. All
partial prepayments, whether voluntary or mandatory, shall be applied against the next principal payment of the Loans next coming due and in the inverse order of maturity, and no prepayment shall entitle Borrower to cease making any payment as
otherwise scheduled hereunder. 

  
 24 

 3.5 No Setoff or Deduction. All payments of principal and interest on the Loans and other
amounts payable by Borrower hereunder shall be made by Borrower without setoff or counterclaim, and, subject to the next succeeding sentence, free and clear of, and without deduction or withholding for, or on account of, any present or future taxes,
levies, imposts, duties, fees, assessments, or other charges of whatever nature, imposed by any Governmental Authority. If any such taxes, levies, imposts, duties, fees, assessments or other charges (other than Excluded Taxes) are imposed, Borrower
will pay such additional amounts as may be necessary so that payment of principal of and interest on the Loans and other amounts payable hereunder, after withholding or deduction for or on account thereof, will not be less than any amount provided
to be paid hereunder and, in any such case, Borrower will furnish to Bank certified copies of all tax receipts evidencing the payment of such amounts within 45 days after the date any such payment is due pursuant to applicable Laws. 

3.6 Payment on Non-Business Day; Payment Computations. Whenever any installment of principal of, or interest on, the Loans or other
amount due hereunder becomes due and payable on a day which is not a Business Day, the maturity thereof shall be extended to the next succeeding Business Day and, in the case of any installment of principal, interest shall be payable thereon at the
rate per annum determined in accordance with this Agreement during such extension. 
 3.7 Additional Costs. 

(A) In the event that any applicable Law now or hereafter in effect and whether or not presently applicable to Bank, or any interpretation or
administration thereof by any Governmental Authority charged with the interpretation or administration thereof, or compliance by Bank with any guideline, request or directive of any such Governmental Authority (whether or not having the force of
law), shall (i) affect the basis of taxation of payments to Bank of any amounts payable by Borrower under this Agreement (other than Excluded Taxes), or (ii) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by Bank, or (iii) impose any other condition with respect to this Agreement, any other Loan Document or any Loan, and the result of any of the foregoing is
to increase the cost to Bank of making, funding or maintaining any Loan or to reduce the amount of any sum receivable by Bank thereon, then, so long as such action uniformly applies to other similarly situated borrowers of Bank, Borrower shall pay
to Bank from time to time, within ten (10) Business Days following written request by Bank (to be accompanied by a statement setting forth with reasonable particularity the basis for the increased cost and reasoning therefore) additional
amounts sufficient to compensate Bank for such increased cost or reduced sum receivable to the extent Bank is not compensated therefor in the computation of the interest rate applicable to such Loan. A statement as to the amount of such increased
cost or reduced sum receivable, prepared in good faith and in reasonable detail by Bank and submitted by Bank to Borrower, shall be conclusive and binding for all purposes absent manifest error in computation. 

  
 25 

 (B) In the event that any applicable Law now or hereafter in effect and whether or not presently
applicable to Bank, or any interpretation or administration thereof by any Governmental Authority charged with the interpretation or administration thereof, or compliance by Bank with any guideline, request or directive of any such Governmental
Authority (whether or not having the force of law), including any risk-based capital guidelines, affects or would affect the amount of capital required or expected to be maintained by Bank (or any corporation controlling Bank) and Bank determines
that the amount of such capital is increased by or based upon the existence of Bank’s obligations hereunder and such increase has the effect of reducing the rate of return on Bank’s (or such controlling corporation’s) capital as a
consequence of such obligations hereunder to a level below that which Bank (or such controlling corporation) could have achieved but for such circumstances (taking into consideration its policies with respect to capital adequacy), then, so long as
such action uniformly applies to other similarly situated borrowers of Bank, Borrower shall pay to Bank from time to time, within ten (10) Business Days following written request by Bank (to be accompanied by a statement setting forth with
reasonable particularity the basis for the increased cost and reasoning therefore), additional amounts sufficient to compensate Bank (or such controlling corporation) for any increase in the amount of capital and reduced rate of return which Bank
determines to be allocable to the existence of such Bank’s obligations hereunder. A statement as to the amount of such compensation, prepared in good faith and in reasonable detail by Bank shall be conclusive and binding for all purposes absent
manifest error in computation. 
 3.8 Illegality and Impossibility. In the event that any applicable Law now or hereafter in effect
and whether or not presently applicable to Bank, or any interpretation or administration thereof by any Governmental Authority charged with the interpretation or administration thereof, or compliance by Bank with any guideline, request or directive
of such Governmental Authority (whether or not having the force of law), shall make it unlawful or impossible for Bank to maintain any Loan under this Agreement, Borrower shall within ten (10) Business Days following receipt of notice thereof
from Bank repay in full the then outstanding principal amount of such Loan, together with all accrued interest thereon to the date of payment and all amounts owing to Bank, (a) on the last day of the then current One Month LIBOR Rate Interest
Period, if Bank may lawfully continue to maintain such Loan to such day, or (b) immediately if Bank may not continue to maintain such Loan to such day. 

3.9 360 Day Year. All interest payable under the Notes shall be calculated on the basis of a 360-day year by multiplying the
outstanding principal amount by the applicable per annum rate, multiplying the product thereof by the actual number of days elapsed, and dividing the product so obtained by 360. 

3.10 Indemnification. If Borrower makes any payment of principal with respect to any Loan on any other date than the last day of a One
Month LIBOR Rate Interest Period applicable thereto, or if Borrower fails to borrow any Advance after notice has been given to Bank in accordance with this Agreement, or if Borrower fails to make any payment of principal or interest in respect of
any Loan when due, Borrower shall reimburse Bank on demand for all Indemnified Losses incurred by Bank, including, without limitation, any actual loss incurred (excluding lost profits) in obtaining, liquidating or employing deposits from a Third
Person, whether or not Bank shall have funded or committed to fund the Advance. A statement as to the amount of such loss or expense, prepared in good faith and in reasonable detail by Bank and 

  
 26 

 
submitted by Bank to Borrower, shall be conclusive and binding for all purposes absent manifest error in computation. Calculation of all amounts payable to Bank under this Section shall be made
as though Bank shall have actually funded or committed to fund the Advance through the purchase of an underlying deposit in an amount equal to the amount of the Advance in the relevant market and having a maturity comparable to the related One Month
LIBOR Rate Interest Period and through the transfer of such deposit to a domestic office of Bank in the United States; provided, however, that Bank may fund the Loans in any manner it sees fit and the foregoing assumption shall be utilized only for
the purpose of calculation of amounts payable under this Section. 
 3.11 No Requirement to Actually Obtain Funds. Notwithstanding
the fact that the interest rate pursuant to the Loans may be calculated based upon Bank’s cost of funds, Borrower agrees that Bank shall not be required actually to obtain funds from such source at any time. 

3.12 Usury Limitation. If, at any time, the interest rate payable on any Loan shall be deemed by any competent court of law or any
Governmental Authority to exceed the maximum rate of interest permitted by any applicable Laws, then, for such time as the interest rate would be deemed excessive, its application shall be suspended and there shall be charged instead the maximum
rate of interest permissible under such Laws, and any excess interest actually collected by Bank shall be credited as a partial prepayment of principal. 

3.13 Tax Forms. Any successor or assign of Bank that is entitled to an exemption from or reduction of withholding tax (including,
without limitation, any withholding tax imposed under any of Sections 1441 – 1446 of the Code, Sections 1471 – 1474 of the Code, and/or Sections 3401 – 3406 of the Code) under the law of the United States, or an applicable treaty to
which such jurisdiction is a party, with respect to payments under the Loan Documents shall deliver to Borrower, at the time or times prescribed by applicable law and at any times reasonably requested by Borrower, such properly completed and
executed documentation prescribed by applicable law or reasonably requested by Borrower as will permit such payments to be made without withholding or at a reduced rate. 

ARTICLE IV 
  

	4.	CONDITIONS PRECEDENT 

 The obligation of Bank to make the Loans and any Advance hereunder is
subject to the following conditions precedent: 
 4.1 Documents Required for the Closing. Prior to or concurrently with the Closing,
the following instruments, documents, and things duly executed by all proper Persons, and all in form and substance reasonably acceptable to Bank, shall have been delivered to Bank (with the consummation of Closing being conclusive evidence of
Bank’s approval of and satisfaction with such requirements and conditions, unless otherwise agreed in writing): 
 (A) This Agreement;

 (B) The Construction Note; 

  
 27 

 (C) The Completion Guaranty; 

(D) The Payment Guaranty; 
 (E)
The Mortgage, together with the following: 
 (1) Evidence that the Mortgage has been (or will timely be) duly recorded in
all filing or recording offices that Bank may deem necessary in order to create a valid first Lien on the Mortgaged Property in favor of Bank and that all filing and recording taxes and fees have been paid, 

(2) The Title Insurance Policy, with the Required Endorsements and in an amount acceptable to Bank, issued by the Title
Insurance Company, insuring the Mortgage to be a valid first Lien on the Mortgaged Property, free and clear of all Liens (including, but not limited to, mechanics’ and materialmen’s Liens), excepting only Permitted Liens, and providing for
such other affirmative insurance as Bank may deem necessary in its commercially reasonable discretion, 
 (3) Evidence that
all other action that Bank may deem reasonably necessary in order to create a valid first Lien on the Mortgaged Property has been taken; 

(F) The Subordination of Development Agreement, together with a copy of the Development Agreement; 

(G) The Closing Certificates; 

(H) The Financing Statements, together with evidence that the Financing Statements have been duly recorded in all filing or recording offices
that Bank may deem necessary or desirable in order to create a valid first Lien on the Collateral described therein in favor of Bank, and that all filing and recording taxes and fees have been paid; 

(I) With respect to each Borrower Party (other than a Borrower Party that is an individual), a certificate of an officer or other
representative acceptable to Bank dated as of the date of this Agreement, certifying as to the incumbency and signatures of the representative(s) of such Borrower Party signing, as applicable, this Agreement and each of the other Loan Documents, and
each other document to be delivered pursuant hereto, together with the following documents attached thereto: 
 (1) A copy of
the resolutions of such applicable Person’s Governing Body authorizing the execution, delivery and performance of this Agreement, each of the Loan Documents, and each other document to be delivered pursuant hereto, as applicable; 

(2) A copy, certified as of a date no more than thirty (30) days prior to the date of this Agreement by the secretary of
state (or similar Governmental Authority) of the state, province, or other Jurisdiction where such Person is organized, of such Person’s Organizational Documents filed with such secretary of state (or similar Governmental Authority); 

(3) A copy of such Person’s other Organizational Documents; 

  
 28 

 (J) A certificate, dated not more than thirty (30) days prior to the date of this Agreement,
of the secretary of state (or similar appropriate Governmental Authority) of each Jurisdiction in which each Borrower Party (other than a Borrower Party that is an individual) is organized as to the existence and good standing of each such Person
within such Jurisdiction, and a certificate, as of the most recent date practicable, of the secretary of state (or similar appropriate Governmental Authority) of each state where any of the Collateral is located as to the qualification and good
standing of Borrower as a foreign entity doing business in each such state; 
 (K) A written opinion of counsel to the Borrower Parties,
dated as of the date of Closing and addressed to Bank; 
 (L) Financial Statements in form and substance reasonably satisfactory to Bank;

 (M) UCC-11 reports showing no Liens superior to Bank’s Lien; 

(N) Evidence reasonably satisfactory to Bank that Borrower has obtained all insurance policies as reasonably required under this Agreement
and/or any of the other Loan Documents (other than builder’s risk insurance), together with evidence reasonably satisfactory to Bank that all premiums therefor have been paid and that all such policies are in full force and effect; 

(O) An ALTA form survey of the Mortgaged Property prepared by an approved surveyor and in accordance with the requirements of Bank, and either
(i) evidence satisfactory to Bank that none of the Mortgaged Property is located in a flood hazard area, or (ii) a flood insurance policy reasonably satisfactory to Bank; 

(P) An appraisal of the Mortgaged Property (including the Project on a completed basis), made at Borrower’s expense, which must be by an
M.A.I. appraiser engaged and approved by Bank, and must be in form and substance reasonably satisfactory to Bank and meeting the requirements of Bank (including, but not limited to, the requirement that such appraisal reflect a loan to value ratio
with respect to the Construction Loan of not more than 75% based on the “as stabilized” appraised value of the Project); 
 (Q)
The preliminary Plans and Specifications for the Project; 
 (R) An environmental/hazardous substances survey and report as approved by
Bank, and reports and certifications in such form and from such Person(s) as Bank may require setting forth with such particularity as may be required by Bank: (i) the plans for removal of any and all Hazardous Substances, Petroleum Products,
and Solid Wastes located on the Mortgaged Property, if any, including an appropriate verification that such removal will be accomplished in accordance with applicable Law, (ii) the qualifications of those Persons engaged to so remove the
Hazardous Substances, Petroleum Products, and Solid Wastes, and (iii) upon completion of the removal of the Hazardous Substances, Petroleum Products, and Solid Wastes, certification that the Hazardous Substances, Petroleum Products, and Solid
Wastes have in fact been removed; 

  
 29 

 (S) A certificate of compliance with applicable restrictive or protective covenants, and
certifications by appropriate Governmental Authorities (or other Persons acceptable to Bank) reasonably satisfactory to Bank, and in forms reasonably acceptable to Bank, reflecting that the construction and use of the Project will conform with all
Laws, including, without limitation, applicable zoning regulations; and 
 (T) All other items reasonably required to be provided to Bank
and not otherwise set forth above. 
 4.2 Documents Required for Making of Construction Advances. Prior to the making of any
Construction Advance, the following instruments, documents, and things duly executed by all proper Persons, and all in form and substance reasonably acceptable to Bank, shall have been delivered to Bank (with the consummation of Closing being
conclusive evidence of Bank’s approval of and satisfaction with such requirements and conditions, unless otherwise agreed in writing): 

(A) (i) the General Contractor’s Contract in an amount not greater than the Loan proceeds allocable thereto; (ii) payment and
performance bonds with respect to the General Contractor, all such payment and performance bonds to contain a dual obligee rider naming Bank; and (iii) the other Construction Documents; 

(B) Builder’s risk insurance; 

(C) A copy of an engineering and soil report for the Land in form and substance reasonably satisfactory to Bank; 

(D) The final Plans and Specifications and verification of the Inspector’s completion of its plan review and cost analysis relating
thereto; 
 (E) A building (or similar) permit issued by the appropriate Governmental Authority which authorizes Borrower to proceed with
construction of the Project in accordance with the Plans and Specifications; and 
 (F) All other items reasonably required to be provided
to Bank and not otherwise set forth above. 
 4.3 Certain Events. At the time of Closing, and at the time of each Advance: 

(A) No (i) Payment Default/Note, nor (ii) other Default with respect to which a Default Notice/Borrower has been given shall have
occurred and be continuing; 
 (B) No Material Adverse Change shall have occurred; 

(C) All of the Loan Documents shall have remained in full force and effect; and 

(D) Borrower shall have paid all fees, expenses, costs, and other amounts then owing to Bank, including the Construction Loan Fee. 

  
 30 

 4.4 Election to Make Advances Prior to Satisfaction of Conditions Precedent. In the event
Bank, at its option, elects to make one or more Advances prior to receipt and approval of all items required by this Article, such election shall not constitute any commitment or agreement of Bank to make any subsequent Advance until all items
required by this Article have been delivered. 
 ARTICLE V 
  

	5.	COLLATERAL SECURITY 

 5.1 Grant of Lien. 

(A) As security for the prompt satisfaction of all Obligations, Borrower hereby assigns, transfers, and sets over to Bank all of
Borrower’s Interest in and to, and grants Bank a Lien on, upon and in the Collateral. 
 (B) No submission by Borrower to Bank of a
schedule or other particular identification of Collateral shall be necessary to vest in Bank security title to and a security interest in each and every item of Collateral now existing or hereafter created and acquired, but rather such title and
security interest shall vest in Bank immediately upon the creation or acquisition or any item of Collateral hereafter created or acquired, without the necessity for any other or further action by Borrower or by Bank. 

5.2 Maintenance of Lien. 

(A) Borrower authorizes Bank to file one or more Financing Statements (including initial financing statements and continuation and amendment
statements) to perfect Bank’s Lien pursuant to the Uniform Commercial Code, such Financing Statements to be in form and substance as required by Bank. 

(B) Borrower hereby appoints Bank as its attorney-in-fact (without requiring Bank to act as such) to file any Financing Statement in the name
of Borrower, and to perform all other acts that Bank deems reasonably appropriate to perfect and continue Bank’s Lien and to protect and preserve the Collateral. 

(C) In connection with Bank’s Lien, Borrower will: 

(1) Execute and deliver, and cause to be executed and delivered, such documents and instruments, including amendments to the
Security Documents and Financing Statements (including amendments thereto and continuation statements thereof) in form reasonably satisfactory to Bank as Bank, from time to time, may specify, and pay, or reimburse Bank upon demand for paying, all
costs and taxes of filing or recording the same in such Jurisdictions as Bank may designate; and 
 (2) Take such other steps
as Bank, from time to time, may in its commercially reasonable discretion direct to protect, perfect, and maintain Bank’s Lien. 

  
 31 

 ARTICLE VI 
  

	6.	REPRESENTATIONS AND WARRANTIES. 

 Borrower represents and warrants to Bank, knowing that Bank
will rely on such representations and warranties as an inducement to make the Loans, that: 
 6.1 Borrower’s Existence. Borrower
is a duly organized and existing Delaware limited liability company, is duly qualified to do business in such Jurisdiction and in all other Jurisdictions in which its business interest requires it to be so qualified, and has full power and authority
to consummate the transactions contemplated by this Agreement. 
 6.2 Authorization. The execution, delivery and performance of all
of the Loan Documents by each Borrower Party have been duly authorized by all requisite action by such Borrower Party. All of the Loan Documents have been duly executed and delivered and constitute valid and binding obligations of Borrower Parties,
enforceable in accordance with their respective terms, and Bank will be entitled to the benefits of all of the Loan Documents. 
 6.3
Consents or Approvals. To Borrower’s actual knowledge, no consent of any Third Person and no authorization, approval or other action by, and no notice to or filing with, any Governmental Authority or other Third Person is required either
(i) for the due execution, delivery, recordation, filing or performance by any Borrower Party of this Agreement or any other Loan Document or for the consummation of the transaction contemplated hereby, (ii) for the mortgage, pledge,
assignment, or grant by Borrower of Bank’s Lien, (iii) for the perfection or maintenance of Bank’s Lien, except for the recording of the Mortgage and the Financing Statements, (iv) for the exercise by Bank of its rights or
remedies provided for in this Agreement or in any of the other Loan Documents, except as may be required by applicable Laws in connection with the foreclosure and disposition of the Collateral, or (v) for the operation of Borrower’s
business. All applicable waiting periods, if any, in connection with the transactions contemplated hereby have expired without any action having been taken by any Person restraining, preventing or imposing materially adverse conditions upon the
rights of Borrower to enter into and perform its obligations under this Agreement. 
 6.4 Violations or Actions Pending. To the best
of Borrower’s knowledge, there are no actions, suits, or proceedings pending not covered by insurance or which might otherwise reasonably be expected to have a Material Adverse Effect or which might reasonably be expected to materially impair
the value of the Collateral. To the best of Borrower’s knowledge, no Borrower Party is in violation of any agreement the violation of which will or might reasonably be expected to have a Material Adverse Effect, and to the best of
Borrower’s knowledge, Borrower is not in violation of any material order, judgment, or decree of any court, or any statute or governmental regulation to which any Borrower Party is subject. To the best of Borrower’s knowledge, the
execution and performance of any Loan Document by any Borrower Party will not result in any material breach of any mortgage, lease, credit or loan agreement or any other instrument which may bind or affect any Borrower Party. 

6.5 Existing Indebtedness. Borrower has no Indebtedness other than the Construction Loan. 

  
 32 

 6.6 Tax Returns. Except as may otherwise be permitted herein, all material federal, state,
local and other tax returns and reports of Borrower required by Laws have been completed in full and have been (or will be) duly filed, and all taxes, assessments and withholdings shown on such returns or billed to Borrower have been paid, and
Borrower maintains adequate provisions and accruals in respect of all such federal, state, local and other taxes, assessments and withholdings. Borrower has received no written notice of any unpaid assessments pending against Borrower for any taxes
or withholdings. 
 6.7 Financial Statements. All financial statements of Borrower heretofore given and hereafter to be given to Bank
are and will be true and complete in all material respects as of their respective dates and prepared in accordance with sound accounting principles, consistently applied, and fairly represent and will fairly represent the financial conditions of the
Persons to which they pertain, and no Material Adverse Change has or will have occurred in the financial conditions reflected therein after the respective date thereof upon delivery to Bank. 

6.8 Title To Land. Borrower has indefeasible fee simple title to the Land (as defined in the Mortgage). 

6.9 Solvency. Borrower is Solvent. 

6.10 Priority of Liens. Bank’s Lien constitutes a first Lien against the Collateral, prior to all other Liens, including those
which may hereafter accrue, except for the Permitted Liens. 
 6.11 Accuracy of Documents. To Borrower’s actual knowledge, all
documents and other things furnished to Bank by or on behalf of any Borrower Party as part of or in support of the application for the Loans or pursuant to this Agreement are in all material respects true, correct, complete and accurately represent
the matters to which they pertain. 
 6.12 Environmental Matters. Except as disclosed in the Environmental Site Assessment Reports,
neither the Mortgaged Property nor Borrower is in violation of or subject to any existing, pending or threatened investigation or inquiry by any Governmental Authority or any remedial obligations under any applicable Environmental Laws, and Borrower
has no actual knowledge of any facts, conditions or circumstances known to it which would reasonably be expected to result in any such investigation or inquiry if such facts, conditions and circumstances, if any, were fully disclosed to the
applicable Governmental Authority, and Borrower will promptly notify Bank if Borrower obtains actual knowledge of any such facts, conditions or circumstances or any such investigation or inquiry. To Borrower’s actual knowledge, Borrower has not
obtained, and is not required to obtain, any Governmental Approvals to construct, occupy, operate or use any buildings, improvements, fixtures or equipment in connection with the Mortgaged Property or Improvements constructed or to be constructed by
reason of any Environmental Laws; and no Petroleum Products, Hazardous Substances or Solid Wastes have been disposed of or released on the Mortgaged Property, and Borrower covenants and agrees that it will not violate any Environmental Laws in
connection with its ownership and use of the Mortgaged Property, including any violation arising from the disposal or release of Petroleum Products, Hazardous Substances or Solid Wastes on the Mortgaged Property (excluding minimal quantities of
substances commonly used in connection with the use and operation of similar properties, provided such substances are held, used and 

  
 33 

 
stored in accordance with applicable Environmental Laws). Notwithstanding anything to the contrary herein, Borrower shall indemnify and hold Bank harmless from and against any fines, charges,
expenses, fees, Attorneys’ Fees and costs incurred by Bank in the event Borrower or the Mortgaged Property (whether or not due to any fault of Borrower) is hereafter determined to be in violation of any Environmental Laws (excluding, however,
any conditions caused by materials placed on the Mortgaged Property after the Environmental Liability Release Date or caused by the gross negligence or willful misconduct of Bank), and this indemnity shall survive any foreclosure or deed in lieu of
foreclosure and repayment of the Loans. 
 6.13 Restrictions and Covenants Affecting the Mortgaged Property. To the best of
Borrower’s knowledge, neither Borrower nor the Mortgaged Property is in violation of any easements, covenants or restrictions affecting the Mortgaged Property, and the construction of the Improvements in accordance with the Plans and
Specifications (a) will not violate any easements, covenants or restrictions affecting the Mortgaged Property (or if the construction of the Improvements will violate any easements, covenants, or restrictions, Borrower will cause such
easements, covenants, or restrictions to be amended or removed prior to such violation), and (b) will satisfy all affirmative obligations of Borrower pursuant to any easements, covenants or restrictions affecting the Mortgaged Property. 

6.14 Roads and Utilities. All utility and sanitary sewage services necessary for the construction and use of the Project are available,
and Borrower has received permission to make such use thereof as is necessary for construction and to make permanent connections thereto upon completion. The Project has adequate direct and free access to one or more public streets, dedicated to
public use, fully installed and accepted by the appropriate Governmental Authority, and there are no restrictions on the use and enjoyment of such streets which would adversely affect the Project. 

6.15 Condemnation. There are no known proceedings pending, or, to the best of Borrower’s actual knowledge, threatened in writing,
to exercise any power of condemnation or eminent domain, with respect to the Mortgaged Property, or any interest therein, or to enjoin or similarly prevent the construction or use of the Improvements. 

6.16 Compliance with Laws. All necessary action has been taken or will be taken to permit construction of the Improvements according to
the Plans and Specifications and full use of the Improvements for their intended purpose under applicable Laws, including, without limitation, zoning Laws and Environmental Laws. When completed according to the Plans and Specifications, the Project
will comply in all material respects with all applicable Laws. 
 6.17 Assigned Documents. 

(A) Borrower is (or, with respect to any Assigned Documents hereafter made, will be) the sole owner and holder of Borrower’s Interest in
each Assigned Document, and Borrower has not transferred or otherwise assigned any interest of Borrower as a party to any Assigned Document; 

(B) To the best of Borrower’s knowledge, each of the Assigned Documents is (or, with respect to any Assigned Documents hereafter made,
will be) valid and enforceable in 

  
 34 

 
accordance with its respective terms, and in full force and effect, and has not been (or, with respect to any Assigned Documents hereafter made, will not be) altered, modified or amended in any
manner whatsoever except as permitted in this Agreement; 
 (C) None of the Rents have been or will be assigned, pledged or in any manner
transferred or hypothecated, except pursuant to this Agreement, and 
 (D) None of the Rents, for any period subsequent to the date of this
Agreement, has been or will be collected more than one (1) month in advance of the time when such Rents become due under the terms of the Assigned Leases if the aggregate amount thereof would exceed five percent (5%) of total Rents due at
an applicable time. 
 6.18 Continuing Effectiveness. All representations and warranties contained herein shall be deemed continuing
as of the date when made and in effect at all times while Borrower remains indebted to Bank pursuant to the Loans and shall be deemed to be incorporated by reference in each requisition an Advance by Borrower unless Borrower specifically notifies
Bank of any change therein. 
 6.19 Anti-Terrorism Laws. 

(A) General. No Borrower Party is in violation of any Anti-Terrorism Law, and no Borrower Party engages in or conspires to engage in
any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. 

(B) Executive Order No. 13224. 

(1) No Borrower Party is any of the following (each a “Blocked Person”): 

a. A Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224; 

b. A Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise
subject to the provisions of, Executive Order No. 13224; 
 c. A Person with which any bank or other financial
institution is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law; 
 d. A Person
that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224; 

e. A Person that is named as a “specially designated national” on the most current list published by the U.S.
Treasury Department Office of Foreign Asset Control at its official website or any replacement website or other replacement official publication of such list; or 

f. A Person who is affiliated with a Person listed above. 

(2) No Borrower Party (i) conducts any business or engages in making or receiving any contribution of funds, goods or
services to or for the benefit of any Blocked Person, or (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224. 

  
 35 

 ARTICLE VII 
  

	7.	BORROWER’S COVENANTS 

 Borrower hereby covenants and agrees with Bank that, so long as any
of the Obligations remain unsatisfied or any commitments hereunder remain outstanding, Borrower at all times will comply or cause to be complied with the following covenants: 

7.1 Affirmative Covenants. 

(A) Borrower will duly and promptly pay and perform all of Borrower’s Obligations to Bank according to the terms of this Agreement and
the other Loan Documents, and will cause each other Borrower Party to perform such other Borrower Party’s Obligations to Bank according to the terms of this Agreement and the other Loan Documents. 

(B) Borrower will use the proceeds of the Loans only for the purposes permitted herein, and Borrower will furnish Bank such evidence as it may
reasonably require with respect to such uses. 
 (C) Borrower will furnish or cause to be furnished to Bank: 

(1) Within one hundred twenty (120) days after each Fiscal Year-End, (a) an income statement of each Borrower Party
for such Fiscal Year, and (b) a balance sheet of each Borrower Party as of such Fiscal Year-End, all in reasonable detail, including all supporting schedules and comments, the statements and balance sheets to be internally prepared by the
applicable Borrower Party and to include a listing of all contingent liabilities; provided however that after the occurrence of an Event of Default, Bank shall have the right to require all such financial statements to be audited. Bank shall have
the right, from time to time, to discuss Borrower Parties’ affairs directly with Borrower Parties’ accountants, and any such accountants are authorized and directed to give Bank any information Bank may request at any time regarding the
financial affairs of Borrower Parties and are authorized and directed to furnish Bank with copies of any documents in their possession related thereto; 

(2) Upon Substantial Completion of the Project, within forty-five (45) days after each Quarter-End (a) an income
statement of Borrower for such Quarter, and (b) a balance sheet of Borrower as of such Quarter-End, all in reasonable detail, including all supporting schedules and comments, all in a form acceptable to Bank, all of such information to be
internally prepared by Borrower; 

  
 36 

 (3) No later than forty-five (45) days after each Quarter-End (or more
frequently if required by Bank), a rent roll and cash flow and operating statement of the Project, all in form satisfactory to Bank in its reasonable discretion; 

(4) Promptly upon receipt thereof, a copy of each interim progress report delivered pursuant to the Development Agreement. 

(D) Borrower will engage in no business or activity other than the construction, development, ownership, management, leasing and operation of
the Project and activities incidental thereto. Borrower will (i) enter into no contract or agreement with any Person except upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on an
arms-length basis with third parties other than such Person; (ii) make no loan or advance to any Person; (iii) hold itself out to the public as a legal entity separate and distinct from any other Person (provided that Borrower’s
assets may be included in a consolidated financial statement of an Affiliate so long as an appropriate notation is made); (iv) conduct business in its own name and shall maintain and utilize separate stationery, invoices and checks;
(v) maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations (provided, however, that nothing herein shall require any party to
provide additional capital to Borrower); and (vi) maintain its assets in such a manner that it shall not be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person. Bank hereby agrees that
the Development Agreement is approved by Bank and does not violate the terms of this Paragraph (D). 
 (E) Borrower will duly and promptly
perform all of Borrower’s obligations under the Assigned Leases according to the terms thereof. 
 (F) Borrower will pay all commitment
and loan fees of Bank when due; all actual out-of-pocket fees and charges of any inspector retained by Bank during the period of time that the Project is being constructed; all out-of-pocket fees of any “tax-service” firm reporting on the
payment of ad valorem taxes; all out-of-pocket expenses involved in perfecting Bank’s Lien or the priority of Bank’s Lien and all other out-of-pocket expenses of Bank related to the Loans, or the protection and preservation of the
Collateral, or the enforcement of any provision of this Agreement, or the preparation of this Agreement, any of the other Loan Documents, or amendments to any of them, including, without limitation, recording fees and taxes, tax, title and lien
search charges, title insurance charges, architects’, engineers’ and Attorneys’ Fees (including Attorneys’ Fees at trial and on any appeal by any Borrower Party or Bank), real property taxes and insurance premiums for insurance
required to be maintained under this Agreement. Notwithstanding the foregoing, Borrower shall have no liability for any Excluded Taxes or expenses of Bank or its successors and assigns related to the assignment, securitization or participation of
the Loans. 
 (G) Borrower will furnish promptly to Bank such information as Bank may reasonably require concerning costs, progress of
construction, marketing, and such other factors as Bank may require; will notify Bank promptly of any litigation instituted or threatened in writing against any Borrower Party, any deficiencies asserted or Liens filed by the Internal Revenue Service
against any Borrower Party, the Collateral, any audits of any Federal or State 

  
 37 

 
tax return of any Borrower Party, and the results of any such audit; will notify Bank promptly upon obtaining actual knowledge of any condemnation or similar proceedings with respect to any of
the Collateral, any proceeding seeking to enjoin the intended use of the Project, and of all material changes in governmental requirements pertaining to the Project, utility availability, anticipated costs of completion, and any other matters which
would reasonably be expected to materially adversely affect Borrower’s ability to perform its obligations under this Agreement or any other Loan Document. 

(H) Borrower will permit Bank and its agents to have access to the Collateral at reasonable times during normal business hours and upon
reasonable advance written notice to Borrower. 
 (I) Borrower will furnish to Bank, if Bank so requests, the contracts, bills of sale,
receipted vouchers, and agreements, or any of them, under which Borrower claims title to the materials, articles, fixtures and other personal property used or to be used in the construction or operation of the Project; provided, however, that Bank
shall not request such items more than once in any Quarter unless an Event of Default has occurred and is continuing. 
 (J) Borrower will
cause, or permit Bank to cause, the Project to be reappraised (i) at Bank’s expense at any time, and (ii) at Borrower’s expense at any time, provided however, that Bank shall not require any such reappraisal at Borrower’s
expense unless (x) there has occurred an Event of Default, or (y) required by request of regulatory authorities (and Bank shall deliver documentation to Borrower evidencing such requirement). 

(K) Borrower will certify to Bank upon request by Bank that, to the best of Borrower’s knowledge: 

(1) Borrower has complied with and is in compliance with all terms, covenants and conditions of this Agreement which are
binding upon it (or, if such is not the case, that Borrower has not complied with, or is not in compliance with, certain specified terms, covenants and conditions); 

(2) There exists no Event of Default (or, if such is not the case, that one or more specified Event of Default have occurred);

 (3) There exists no Development Manager Default (or, if such is not the case, that one or more specified Development
Manager Defaults have occurred); and 
 (4) The representations and warranties contained in this Agreement are true in all
material respects with the same effect as though made on the date of such certificate (or, if such is not the case, that certain specified representations and warranties are not true in all material respects with the same effect as though made on
the date of such certificate). 
 (L) Borrower will, when requested so to do, during normal business hours and upon reasonable prior notice,
make available for inspection and audit by duly authorized representatives of Bank any of its Records, and will furnish Bank any information regarding its business affairs and financial condition within a reasonable time after written request
therefor 

  
 38 

 
(provided that so long as no Event of Default has occurred, Bank shall not inspect and audit Records more than once each Quarter). Borrower shall reimburse Bank for all costs associated with such
audit if the audit reveals a material discrepancy in any financial report, statement or other document provided to Bank pursuant to this Agreement. 

(M) Borrower will keep accurate and complete Records, consistent with sound business practices. 

(N) Borrower will notify Bank thirty (30) days in advance of any change in the location of any of its places of business or of the
establishment of any new place of business, or the discontinuance of any existing place of business. 
 (O) If requested by Bank, Borrower
will furnish or cause to be furnished to Bank with copies of income tax returns as and when filed by any Borrower Party. 
 (P) Borrower
will notify Bank immediately if it becomes aware of the occurrence of any Default. 
 (Q) Borrower will notify Bank immediately if it
becomes aware of any Material Adverse Change or any suit or proceeding involving it that would reasonably be expected to have a Material Adverse Effect. 

(R) Borrower will pay or cause to be paid when due, and before the accrual of penalties thereon, all taxes, including all real and personal
property taxes and assessments levied or assessed against Borrower or the Mortgaged Property, and will provide Bank with receipted bills therefor if requested by Bank (provided, however, Borrower shall have the right to contest the validity or
amount thereof in good faith by appropriate and lawful proceedings, so long as levy and execution thereon have been stayed and continue to be stayed). Any taxes in respect of which amounts are deposited in the escrow account described in
Section 7.6 of this Agreement shall be treated as paid for purposes of the foregoing. 
 (S) Borrower will cause the Mortgaged Property
to be maintained in good and safe condition and repair, and subject to the provisions of Section 7.4 below, shall promptly repair, replace or rebuild any part of the Mortgaged Property which may be destroyed by any casualty, or become damaged,
worn or dilapidated or which may be affected by any condemnation or similar proceeding. 
 (T) Subject to Borrower’s right to contest
the same as set forth in Section 7.3(C), Borrower will keep the Collateral free from all Liens except the Permitted Liens; will pay promptly all Persons supplying work or materials for the construction of the Project; will immediately
discharge, or make other arrangements reasonably acceptable to Bank with respect to, any mechanic’s or other Lien filed against the Collateral or Borrower; and will duly perform and observe all agreements, covenants and restrictions with
respect to the Permitted Liens and with respect to any other easement, covenant or restriction now or hereafter affecting the Collateral. 

(U) Prior to the execution of the Management Agreement, Borrower will furnish a draft thereof to Bank, for Bank’s approval of the form of
Management Agreement and 

  
 39 

 
the manager thereunder. After Bank’s approval of the Management Agreement and such manager, Borrower will furnish or cause to be furnished to Bank a copy of the fully-executed Management
Agreement, together with the Assignment of Management Agreement. 
 7.2 Negative Covenants. 

(A) Without the prior written consent of Bank, Borrower will not change its name, enter into any merger, consolidation, liquidation,
reorganization or recapitalization, or dissolve. 
 (B) Borrower will not sell, transfer, lease or otherwise dispose of, or enter into any
agreement to sell, lease, transfer, assign or otherwise dispose of the Collateral, except for Permitted Leases and Other Transfers of Collateral. 

(C) Without the consent of Bank, Borrower will not become liable, directly or indirectly, as guarantor or otherwise for any obligation of any
Third Person in an amount exceeding $50,000.00 in the aggregate. 
 (D) Without the consent of Bank, Borrower will not issue, redeem,
purchase or retire any of its Equity Interests or grant or issue any warrant, right or option pertaining thereto or any other security convertible into any of the foregoing, nor otherwise permit any voluntary transfer, sale, redemption, retirement,
or other change in the ownership of any Equity Interests of Borrower by the Equity Owners of such Equity Interests which results in a Change in Control. 

(E) Borrower will not incur, create, assume, or permit to exist any Indebtedness except: 

(1) The Loans; 

(2) Indebtedness otherwise expressly permitted under the terms of this Agreement or any other Loan Document, if any; and 

(3) Indebtedness incurred in Borrower’s Ordinary Course of Business, provided that such Indebtedness is either Unsecured
Indebtedness or Indebtedness secured by a Permitted Lien. 
 (F) Borrower will not permit any material change to the form of tenant lease to
be used in connection with the leasing of the Project unless there is first obtained the prior written approval of Bank (which approval shall not be unreasonably withheld, conditioned or delayed). 

(G) Borrower will not knowingly furnish Bank any certificate or other document that will contain any untrue statement of material fact or that
will omit to state a material fact necessary to make it not misleading in light of the circumstances under which it was furnished. 

  
 40 

 (H) Borrower will not directly or indirectly apply any part of the proceeds of the Loans to the
purchasing or carrying of any “margin stock” within the meaning of Regulation T, Regulation U, or Regulation X, or any regulations, interpretations or rulings thereunder. 

(I) Borrower will not treat, store, handle, discharge, or dispose of any Hazardous Materials, Petroleum Products, or Solid Wastes except in
compliance with all Environmental Laws. 
 (J) Borrower will not mortgage, assign, pledge or grant any mortgage, security interest, or other
right in any Collateral to any Person other than Bank (other than Permitted Liens), nor permit any Lien to attach to any Collateral or any levy to be made thereon (subject to the contest rights of Borrower set forth in Section 7.3(C) below) or
any financing statement to be on file in any public office with respect to any of the Collateral (except financing statements of Bank or as may be filed in connection with Permitted Liens). 

(K) Borrower will not declare or pay any dividends, or make any other similar payment or distribution to any of its Equity Owners after and
during the continuance of any (i) Payment Default/Note, or (ii) other Default with respect to which a Default Notice/Borrower has been given. 

(L) Without Bank’s consent (not to be unreasonably withheld or delayed), Borrower agrees that it shall not enter into any agreement or
take any other action which would materially modify or amend the Development Manager Obligations, waive or release the performance or satisfaction of any material duty or obligation with respect to the Development Manager Obligations, or terminate
the Development Manager Obligations. Upon the occurrence of a Development Manager Default, Borrower (i) shall promptly give Bank notice of the occurrence of a Development Manager Default and a copy of any written notice given to or received
from any Person in connection therewith, and if requested by Bank from time to time, shall apprise Bank as to any material events relating to such Development Manager Default, and (ii) agrees that Bank may discuss with the Development Manager
(and hereby authorizes the Development Manager to discuss with Bank) the events and circumstances surrounding the Development Manager Default. 

7.3 Construction Covenants. 

(A) Subject to Force Majeure Events, Borrower will (i) commence the construction of the Project within ninety (90) days after the
date hereof, if such construction has not already begun; (ii) cause the Project to be constructed on the Land substantially in accordance with the Plans and Specifications, and in compliance with all applicable Laws (including zoning and
setback requirements), and so as not to encroach upon or overhang any easement or right-of-way, and so as to satisfy all Borrower’s obligations pursuant to any easements, covenants and restrictions affecting the Mortgaged Property;
(iii) cause such construction to proceed continuously; (iv) complete construction of the Project no later than the Advancement Termination Date, time being of the essence; and (v) upon Substantial Completion of the Project, furnish to
Bank within sixty (60) days of Bank’s request an as-built survey in form reasonably satisfactory to Bank, showing the extent of construction of the Improvements without violation of setback lines,
zoning requirements or restrictive covenants and showing no encroachments or other conditions which could adversely affect the value and utility of the Project for its intended purpose. 

  
 41 

 (B) Borrower will deposit with Bank within five (5) Business Days of Bank’s demand
therefor the amount of money necessary to cause the Construction Loan to be In Balance, and Bank shall be under no obligation to make any further Advances until any amount so demanded is so deposited. Any amount so deposited may be deposited in an
account of Bank’s selection, and Borrower hereby pledges, grants, and conveys to Bank a Lien upon and in such account and/or deposit as additional collateral for the Obligations. Bank may advance all or a portion of any such amount on deposit
prior to making any further Advance, and, during the continuance of an Event of Default, Bank may apply all or any portion of any such amount against any amounts owing to Bank under any one or more of the Loan Documents. 

(C) Borrower will pay promptly all Persons supplying work or materials for the construction of the Project and will immediately discharge, or
make other arrangements reasonably acceptable to Bank with respect to, any mechanic’s or other Lien filed against the Project (provided that so long as Bank’s security has been protected by the filing of a bond in an amount as necessary to
“bond over” such Lien, Borrower shall have the right to contest in good faith any Lien). 
 (D) Unless there is first obtained the
prior written consent of Bank, Borrower will not authorize or permit any change to the Plans and Specifications which would (i) result in an increase of the guaranteed maximum cost set forth in any Major Construction Contract by more than
$250,000.00, (ii) materially diminish the quality, location or completed value of the Project, or (iii) so alter the Plans and Specifications as to invalidate any Governmental Approval. 

(E) Upon Bank’s reasonable request, Borrower will notify Bank promptly of the names and addresses of all known contractors,
subcontractors and materialmen who are employed in connection with the construction of the Project. 
 (F) Upon completion of the Project,
Borrower will provide Bank with photographs of the completed Project, together with copies of all Licenses and Permits and other Governmental Approvals as may be necessary for the full and planned use and occupancy of the Project. 

(G) Subject to compliance with all applicable zoning and other governmental requirements, at Bank’s request and at Bank’s expense,
Borrower will erect and maintain on the Land, until Substantial Completion of the Project, one sign approved by Bank and Borrower indicating that construction financing is being provided by Bank. 

(H) Borrower shall maintain with Bank its construction disbursement account with respect to the Project. 

7.4 Insurance and Condemnation Covenants. 

(A) Borrower will obtain and maintain, or cause to be obtained and maintained, at all times while Borrower is indebted to Bank, at
Borrower’s sole expense: (a) the Title Insurance Policy; (b) all-risk insurance with respect to all insurable property comprising the 

  
 42 

 
Project, against loss or damage by fire, lightning, windstorm, explosion, hail, tornado and such hazards as are presently included in so-called “all-risk” coverage and against such
other insurable hazards as Bank may require, in an amount not less than 100% of the full replacement cost, including the cost of debris removal, without deduction for depreciation and sufficient to prevent Bank and Borrower from becoming a
coinsurer, such insurance to be in builder’s risk (non-reporting) form during and with respect to any construction on the Land; (c) if and to the extent any portion of the Improvements is in a special flood hazard area, a flood insurance
policy in an amount equal to the lesser of the principal amount of the Loans or the maximum amount available; (d) comprehensive general public liability insurance, on an “occurrence” basis, for the benefit of Borrower and Bank as
named insureds; (e) statutory workers’ compensation insurance with respect to any work on or about the Project; (f) rental continuation insurance or business interruption insurance equal to 100% of anticipated gross revenues from the
Project for a twelve-month period; and (g) such other insurance on the Project as may from time to time be required by Bank (including but not limited to boiler and machinery insurance, earthquake insurance, and war risk insurance) and against
other insurable hazards or casualties which at the time are commonly insured against in the case of premises similarly situated, due regard being given to the height, type, construction, location, use and occupancy of buildings and improvements. All
insurance policies shall be issued and maintained by insurers, in amounts, with deductibles, and in form reasonably satisfactory to Bank, and shall require not less than thirty (30) days’ prior written notice to Bank of any cancellation or
change of coverage. All insurance policies maintained, or caused to be maintained, by Borrower with respect to the Project, except for public liability insurance, shall provide that each such policy shall be primary without right of contribution
from any other insurance that may be carried by Borrower or Bank and that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured. If any insurer which
has issued a policy of title, hazard, liability or other insurance required pursuant to this Agreement or any other Loan Document becomes insolvent or the subject of any Bankruptcy, receivership or similar proceeding or if in Bank’s reasonable
opinion the financial responsibility of such insurer is or becomes inadequate, Borrower shall, in each instance promptly upon the request of Bank and at Borrower’s expense, obtain and deliver to Bank a like policy (or, if and to the extent
permitted by Bank, a certificate of insurance) issued by another insurer, which insurer and policy meet the requirements of this Agreement or such other Loan Documents, as the case may be. Without limiting the discretion of Bank with respect to
required endorsements to insurance policies, all such policies for loss of or damage to the Project shall contain a standard mortgagee clause (without contribution) naming Bank as mortgagee with loss proceeds payable to Bank. Satisfactory
certificates of insurance, and if requested by Bank, copies of each initial insurance policy, shall be delivered to Bank at the time of execution of this Agreement, with premiums fully paid, and, each renewal or substitute certificate of insurance
(or policy, if requested by Bank) shall be delivered to Bank, with premiums fully paid, at least ten (10) days before the termination of the certificate (or policy) that it renews or replaces. Borrower shall pay all premiums on policies
required hereunder as they become due and payable and promptly deliver to Bank evidence reasonably satisfactory to Bank of the timely payment thereof. In the event Borrower fails to provide, maintain, keep in force or deliver and furnish to Bank the
insurance required by this Section, Bank may procure such insurance or single-interest insurance for such risks covering Bank’s interest, and Borrower will pay all premiums thereon promptly upon demand by Bank. Until such payment is made by
Borrower, the amount of all such premiums 

  
 43 

 
shall be added to and become part of the Obligations. If any loss occurs at any time when Borrower has failed to perform Borrower’s covenants and agreements in this Section, Bank shall
nevertheless be entitled to the benefit of all insurance covering the loss and held by or for Borrower, to the same extent as if it had been made payable to Bank. Upon any foreclosure of the Mortgage or transfer of title to the Project in
extinguishment of the whole or any part of the Loans or any other amounts owing by Borrower to Bank, all of Borrower’s right, title and interest in and to the insurance policies referred to in this Section (including unearned premiums) and all
proceeds payable thereunder shall thereupon vest in the purchaser at foreclosure or other such transferee, to the extent permissible under such policies, and Bank is hereby irrevocably appointed by Borrower as attorney-in-fact for Borrower to assign
any such policy to said purchaser or other such transferee without accounting to Borrower for any unearned premiums thereon. In the event the amount of insurance proceeds for any single event is Five Hundred Thousand Dollars ($500,000.00) or less,
and so long as there exists no (i) Payment Default/Note, nor (ii) other Default with respect to which a Default Notice/Borrower has been given, Borrower shall have the right to settle such insurance claims without Bank’s involvement
or consent, and the entire amount of such insurance proceeds in each case, actually received by Bank, shall be disbursed by Bank to Borrower, and shall be used by Borrower to restore or rebuild the affected portion of the Improvements. In the event
the amount of insurance proceeds for any single event is greater than Five Hundred Thousand Dollars ($500,000.00), Bank shall have the right (but not the obligation) to make proof of loss for, settle and adjust any claim under, and receive the
proceeds of, all insurance for loss of or damage to the Project, and the expenses incurred by Bank in the adjustment and collection of insurance proceeds shall be added to and become part of the Obligations and shall be due and payable to Bank on
demand. Bank shall not be, under any circumstances, liable or responsible for failure to collect or exercise diligence in the collection of any of such proceeds or for the obtaining, maintaining or adequacy of any insurance or for failure to see to
the proper application of any amount paid over to Borrower. Any such proceeds received by Bank shall be applied and disbursed as provided in this Agreement. If Borrower fails to cause issuance of or an endorsement to any policy within five
(5) Business Days after Bank’s written request therefor, then Borrower appoints Bank as Borrower’s attorney-in-fact to cause the issuance of or an endorsement of any policy and to otherwise bring Borrower into compliance with the
provisions of this Section and to make any claim for, receive payment for, and execute and endorse any documents, checks or other instruments in payment for loss, theft, or damage under any such insurance policy (provided that prior to the exercise
of any such power, Bank shall notify Borrower in writing of the same). 
 (B) Bank is hereby authorized and empowered, at its option, to
adjust or compromise any loss under any insurance policies maintained pursuant to this Section 7.4, and to collect and receive the proceeds from any such policy or policies (provided that Bank shall promptly remit to Borrower any proceeds of
insurance in excess of the amount of the Obligations then owing). Each insurance company is hereby authorized and directed to make payment for all such losses directly to Bank as its interest may appear, instead of to Borrower and Bank jointly. In
the event any insurance company fails to disburse directly and solely to Bank but disburses instead either solely to Borrower or to Borrower and Bank jointly, Borrower agrees immediately to endorse and transfer such proceeds to Bank to the extent of
Bank’s interest therein. Upon the failure of Borrower to endorse and transfer such proceeds as aforesaid, Bank may execute such endorsements or transfers for and in the name of Borrower, and Borrower hereby irrevocably appoints Bank as
Borrower’s agent and attorney in fact so to do. Bank shall apply the same at its 

  
 44 

 
option (i) to the payment of the Obligations, whether or not due and in whatever order Bank elects, (in which case a portion of or the entire Obligations shall, at Bank’s option,
immediately become due and payable), (ii) to the repair and/or restoration of the Improvements, or (iii) for any other purposes or objects for which Bank is entitled to advance funds under any Loan Document, all without affecting
Bank’s Lien, and any balance of such monies then remaining shall be paid to Borrower or the Person lawfully entitled thereto. Bank shall not be held responsible for any failure to collect any insurance proceeds due under the terms of any policy
regardless of the cause of such failure. 
 (C) Notwithstanding the provisions of the immediately preceding paragraph to the contrary, if
requested by Borrower, Bank agrees that the proceeds of any casualty insurance or any part thereof (after deducting therefrom all of its actual expenses incurred in the collection and administration of such sums, including Attorneys’ Fees)
payable on account of loss or damage to the Improvements will be made available by Bank (consistent with disbursement procedures and subject to such terms and conditions as provided herein with respect to Advances to be made hereunder) to be applied
by Borrower to restoration or repair of the Improvements provided that (i) there exists no (x) Payment Default/Note, nor (y) other Default with respect to which a Default Notice/Borrower has been given, and (ii) if the amount of
such proceeds are in excess of $500,000.00, the following conditions are met (unless waived by Bank): 
 (1) there exists no
(i) Payment Default/Note, nor (ii) any other Default with respect to which a Default Notice/Borrower has been given; 

(2) Borrower presents sufficient evidence satisfactory to Bank that (A) the Improvements are capable of being, and will
be, restored in compliance with all applicable Laws to an architectural whole and to substantially the same condition and value as prior to the casualty, (B) restoration of the Improvements to an architectural whole will be completed on or
before the next-occurring Maturity Date, (C) there are sufficient funds from such insurance proceeds and other available monies, to completely restore or repair the Improvements to an architectural whole, as well as to maintain relevant debt
service coverages and other operating expenses and otherwise satisfy any financial requirements of Bank, including changes as may be required with respect to interest rates, repayment terms and financial covenants, and (D) Bank will not incur
any liability to any other Person as a result of such use or release of insurance proceeds; 
 (3) the plans and
specifications for restoration or repair are approved in writing by Bank, in its reasonable discretion; 
 (4) parties having
existing or expected possessory interests in the Improvements (other than any parties whose rights or interests are evidenced by agreements which have a term of less than one year remaining) agree to continue, in a manner reasonably satisfactory to
Bank, to fulfill the contract terms then in effect following the restoration or repair (including, without limitation, the payment of rent or other sums without abatement or reduction except as approved by Bank, in its reasonable discretion), or
Borrower shall deliver security reasonably satisfactory to Bank, in its discretion, to substitute for the loss of income caused by the failure of any such possessory interest to agree to continue to fulfill the contract terms then in effect
following restoration or repair; 

  
 45 

 (5) all parties having operating, management or franchise interests in, and
arrangements concerning, the Improvements, if any, are contractually obligated to continue their interests and arrangements for the contract terms then in effect following the restoration or repair; and 

(6) Borrower shall enter into such agreements and deliver such other documents and other things as may be reasonably required
by Bank in connection with the disbursement of all such proceeds. 
 If the foregoing conditions are satisfied within one hundred eighty
(180) days of the date of loss, then the insurance proceeds shall be held by Bank and, after deducting from said insurance proceeds all of its actual expenses incurred in the collection and administration of such sums, including Attorneys’
Fees, Bank shall disburse the net insurance proceeds to or on behalf of Borrower (pursuant to a procedure reasonably satisfactory to Bank) as repair or restoration progresses and to the extent such proceeds are required to defray the expenses of
such restoration or repair; and to the extent any such proceeds are not required to defray the expenses of such restoration or repair, Bank may, at its option, apply any such unused proceeds as provided for in the immediately preceding paragraph
(B) of this Section. At all times during such restoration or repair, Borrower shall deposit with Bank funds which, when added to insurance proceeds on deposit with Bank, are sufficient to complete the restoration or repair of the Improvements
to an architectural whole, as reasonably determined by Bank, in Bank’s reasonable discretion, in substantial accordance with the approved plans and specifications and all applicable Laws, including, but not limited to, Construction Laws. 

If the conditions set forth in clauses (1) through (6) of this Section are not satisfied within one hundred eighty (180) days
of the date of loss, then upon seven (7) days’ prior written notice to Borrower, the insurance proceeds shall be disbursed as provided for in the immediately preceding paragraph (B) of this Section. 

(D) If all or any portion of the Project shall be taken through condemnation (which term shall include any damage or taking by any
Governmental Authority and any transfer by private sale in lieu thereof), either temporarily or permanently, other than an insubstantial taking which does not materially adversely affect access or the use of the Project for its intended purposes,
then a portion of or the entire Obligations shall, at the option of Bank, immediately become due and payable. Borrower, promptly upon obtaining knowledge of the institution, or the proposed, contemplated or threatened institution of any action or
proceeding for the taking through condemnation of the Project or any part thereof will notify Bank, and Bank is hereby authorized, at its option, to commence, appear in and prosecute, through counsel selected by Bank, in its own or in
Borrower’s name, any action or proceeding relating to any condemnation. Borrower may compromise or settle any claim for compensation, but shall not make any compromise or settlement for an award unless all of the Obligations are paid and
satisfied in full, without the prior written consent of Bank. All such compensation, awards, damages, claims, rights of action and proceeds and the right thereto are hereby assigned by Borrower to Bank, and Bank is authorized, at its option, to
collect and receive all such compensation, awards or 

  
 46 

 
damages and to give proper receipts and acquittances therefor without any obligation to question the amount of any such compensation, awards or damages. After deducting from said condemnation
proceeds all of its expenses incurred in the collection and administration of such sums, including Attorneys’ Fees, the net proceeds shall be dealt with by Bank in accordance with, and subject to, the same terms and conditions as set forth in
Paragraph (B) or Paragraph (C), as applicable, of Section 7.4 hereof as if the condemnation proceeds were insurance proceeds and as if the date the condemnation proceeds become payable to Borrower was the date of loss. 

7.5 Assigned Document Covenants. 

(A) Except as may otherwise be expressly provided for in this Agreement, including the immediately following paragraph, Borrower shall
(a) observe and perform all the obligations imposed upon Borrower under each Assigned Document; (b) not do, or permit to be done, anything to impair the security of any Assigned Document; (c) promptly send to Bank copies of each
written notice of default which Borrower shall send or receive under the Assigned Documents; (d) enforce the performance and observance of the material provisions of each Assigned Document; (e) not collect any of the Rents except as set
forth in this Agreement; (f) not subordinate any Assigned Document to any Lien, or permit, consent, or agree to any such subordination without the prior written consent of Bank; (g) not materially alter, modify or change the terms of any
Assigned Document, nor give any consent to exercise any option required or permitted by such terms, without the prior written consent of Bank in each such case; (h) not cancel or terminate any Assigned Document other than an Assigned Lease, or
accept a surrender of any Assigned Document other than an Assigned Lease; (i) not convey or transfer, and shall not suffer or permit a conveyance or transfer of, the Mortgaged Property, or of any interest in the Mortgaged Property, so as to
affect directly or indirectly, approximately or remotely, a merger of the estates and rights of, or a termination or diminution of the obligations of any other party to and under any Assigned Lease; (j) at Bank’s request, execute any
documentation confirming the assignment and transfer to Bank of each Assigned Document; and (k) execute and deliver, at the request of Bank, all other further assurances, confirmations and assignments in the Assigned Documents as Bank shall,
from time to time, reasonably require in order to evidence or secure the rights of Bank hereunder. 
 (B) Notwithstanding the provisions of
the immediately preceding paragraph, so long as there shall not exist any Event of Default, then Borrower shall have a revocable license to continue to exercise all its rights and perform its obligations under the Assigned Documents, including the
right to collect each payment of Rents at the time provided in the applicable Assigned Lease for such payment, it being understood and agreed that this paragraph is intended to be a revocable license granted to Borrower to collect and receive the
Rents and to retain, use and enjoy the same and otherwise exercise all rights as landlord under any Assigned Lease, in each case subject to the terms hereof and of the Mortgage, and upon the occurrence of any Event of Default, (i) the license
granted herein to Borrower shall immediately and automatically cease and terminate and shall be void and of no further force or effect, and (ii) Bank shall immediately be entitled to possession of all Rents (whether or not Bank enters upon or
takes control of the all or any portion of the Collateral). 

  
 47 

 7.6 Escrow Deposits. From and during the occurrence of an Event of Default, at the option
of Bank and further to secure the payment of taxes, assessments, other charges, and insurance premiums applicable or attributable to the Mortgaged Property, Borrower shall upon request of Bank deposit with Bank, on the first day of each month, such
amounts as, in the reasonable estimation of Bank, shall be necessary to pay such taxes, assessments, charges and premiums as they become due; said deposits to be held and to be used by Bank to pay such taxes, assessments, charges and premiums as the
same accrue and are payable. Payment from said sums for said purposes shall be made by Bank at its reasonable discretion and may be made even though such payments will benefit subsequent owners of the Mortgaged Property. Said deposits shall not be,
nor be deemed to be, trust funds, but shall be, to the extent permitted by applicable Law, maintained in a segregated, interest-bearing account. If said deposits are insufficient to pay the taxes and assessments, insurance premiums and other charges
in full as the same become payable, Borrower will deposit with Bank such additional sum or sums as may be required in order for Bank to pay such taxes and assessments, insurance premiums and other charges in full. Upon any Event of Default, Bank
may, at its option, apply any money in the fund relating from said deposits to the payment of the Obligations in such manner as it may elect. 

7.7 General Covenants and Agreements Pertaining to the Collateral. Borrower covenants and agrees that promptly after Borrower’s
learning thereof, Borrower shall inform Bank in writing of any material delay or default in Borrower’s performance of any of its obligations under any Assigned Document, if such delay or default may give rise a Material Adverse Change. 

7.8 Visitation. Borrower agrees to permit representatives of Bank from time to time to visit and inspect the Collateral during normal
business hours upon reasonable prior written notice to Borrower, subject to the rights of tenants under leases, all Records related thereto, the premises upon which any of the Collateral is located, and any of the other offices and properties of
Borrower; to examine the assets, books of account, and Records of Borrower; to discuss the affairs and finances of Borrower with and be advised as to the same by the officers thereof; and to verify the amount, quantity, value and condition of, or
any other matter relating to, the Collateral, all at such times and intervals as Bank may desire. 
 7.9 Filing Fees and Taxes.
Borrower covenants and agrees to pay all recording and filing fees, revenue stamps, taxes and other expenses and charges payable in connection with the execution and delivery to Bank of this Agreement and the other Loan Documents, and the recording,
filing, satisfaction, continuation and release of any financing statements or other instruments filed or recorded in connection herewith or therewith. 

7.10 Underlying Documents. Borrower covenants and agrees that it will, upon the written request therefor by Bank, promptly deliver
possession to Bank of any or all of the Assigned Documents. 
 7.11 Further Assurances. Borrower covenants and agrees that, at
Borrower’s cost and expense, upon written request of Bank, Borrower shall duly execute and deliver, or cause to be duly executed and delivered, to Bank such further instruments and do and cause to be done such further acts as may be reasonably
necessary or proper in the opinion of Bank or its counsel, each in its reasonable discretion, to carry out more effectively the provisions and purposes of this Agreement. 

  
 48 

 ARTICLE VIII 
  

	8.	DEFAULT 

 8.1 Events of Default. The occurrence of any one or more of the following
events shall constitute an Event of Default hereunder: 
 (A) Borrower shall fail to pay any installment of principal or interest or any
other amount payable hereunder or under any other Loan Document as and when the same becomes due, which failure to pay continues for more than five (5) days following written notice from Bank to Borrower (provided that Bank shall not be
required to give such written notice more than twice in any consecutive 12-month period). 
 (B) Any Borrower Party shall fail to observe or
perform any other obligation, condition, or covenant to be observed or performed by it hereunder or under any of the Loan Documents, and such failure shall continue for thirty (30) days or such longer period up to ninety (90) days if such
failure is not capable of being cured within thirty (30) days (provided that Borrower has commenced and continues to diligently pursue cure of such failure) after written notice of such failure from Bank. 

(C) There shall occur any Event of Default as defined and provided under any other Loan Document (after the expiration of any applicable grace
and cure period). 
 (D) There shall occur any default or event of default (after the expiration of any applicable grace and cure period)
under any agreement of Borrower with Bank or any other Person and relating to the borrowing of money or the extension of credit in a principal amount in excess of $500,000.00. 

(E) The validity or enforceability of this Agreement or any of the other Loan Documents shall be improperly contested by any Borrower Party.

 (F) Any of the Loan Documents for any reason (other than with respect to a partial or full release in accordance with the terms thereof),
ceases to be in full force and effect or is declared to be null and void (other than solely as a result of action taken by Bank) as determined by a court of competent jurisdiction, or any Borrower Party denies that it has any further liability under
any Loan Document to which it is a party or gives notice to such effect (other than with respect to a partial or full release in accordance with the terms thereof). 

(G) Assignment or attempted assignment by any Borrower Party of this Agreement, any rights hereunder, or any Advance to be made hereunder, or
the conveyance, lease, mortgage, or any other alienation or encumbrance of the Collateral or any interest therein without the prior written consent of Bank, except for Permitted Leases and Other Transfers of Collateral. 

  
 49 

 (H) Except as otherwise permitted herein, the transfer of Borrower’s Interest in, or rights
under, this Agreement by operation of law or otherwise, including, without limitation, such transfer by Borrower as debtor in possession under the Bankruptcy Code, or by a trustee for Borrower under the Bankruptcy Code, to any Third Person, whether
or not the obligations of Borrower under this Agreement are assumed by such Third Person. 
 (I) The institution of a foreclosure or other
possessory action against the Collateral or any part thereof, subject to Borrower’s contest rights as provided in Section 7.3(C) hereof. 

(J) Substantial damage to, or partial or total destruction of, the Project by fire or other casualty or the taking of any of the Project,
temporarily or permanently, by eminent domain, and Borrower’s failure to restore, repair, replace, or rebuild the Project as and when required under the terms of any Loan Document (unless attributable to Bank’s failure to comply with the
release of casualty proceeds as provided in Section 7.3(C) hereof). 
 (K) Failure or refusal by the Title Insurance Company, by reason
of any matter affecting title to the Collateral, to insure any Advance as giving rise to a valid first Lien, subject only to the Permitted Liens. 

(L) The dissolution of any Borrower Party, or any Change in Control, or the death of any individual Borrower Party. 

(M) Any financial statement, representation, warranty or certificate made or furnished by any Borrower Party to Bank in connection with this
Agreement, or as inducement to Bank to enter into this Agreement, or in any separate statement or document to be delivered hereunder to Bank, shall be materially false, incorrect, or incomplete when made. 

(N) Any Borrower Party shall admit its inability to pay its debts as they mature, or shall make an assignment for the benefit of itself or any
of its creditors. 
 (O) Proceedings in Bankruptcy, or under any other Laws for the relief of debtors, now or hereafter existing, shall be
commenced by any Borrower Party, or shall be commenced against any Borrower Party and shall not be discharged within sixty (60) days of commencement. 

(P) Any Borrower Party shall suffer a final judgment for payment of money aggregating in excess of $500,000.00 (to the extent not adequately
covered by insurance as to which the insurance company has acknowledged responsibility), and shall not discharge the same within a period of thirty (30) days unless, pending further proceedings (including appeals), execution has not been
commenced or if commenced has been effectively stayed. 
 (Q) A receiver or trustee shall be appointed for any Borrower Party or for any
substantial part of their assets, or any proceedings shall be instituted for the dissolution or the full or partial liquidation of any Borrower Party, and such receiver or trustee shall not be discharged within thirty (30) days of his
appointment, or such proceedings shall not be discharged within sixty (60) days of its commencement, or any Borrower Party shall discontinue business or materially change the nature of its business. 

  
 50 

 (R) A judgment creditor of any Borrower Party shall obtain possession of any material portion of
the Collateral by any means, including, without limitation, levy, distraint, replevin or self-help. 
 Provided that with respect to any of
the foregoing (i) such Event of Default will be deemed to have occurred upon the occurrence of such event Without Notice if Bank is prevented from giving any notice set forth above by Bankruptcy or other applicable Law, and (ii) such Event
of Default shall not constitute an Event of Default if such Event of Default is a Guarantor Event of Default and the Replacement Guarantor Requirement is satisfied (it being understood and agreed, however, that satisfaction of the Replacement
Guarantor Requirement shall not release any Guarantor from its obligations under a Guaranty to which it is a party). 
 8.2 No Advances
After Default. Upon the occurrence and during the continuance of any Default, and notwithstanding any provision contained herein or in any other Loan Document to the contrary, Bank shall have the absolute right to refuse to make, and shall be
under no obligation to make, any further Advances. 
 8.3 Acceleration. All Obligations shall, at the option of Bank, become
immediately due and payable, Without Notice, upon the occurrence of an Event of Default without further action of any kind. 
 8.4
General Remedies. Upon the occurrence of any Event of Default, Bank shall have, in addition to the rights and remedies given it by this Agreement and the other Loan Documents, all those allowed by all applicable Laws as enacted in any
Jurisdiction in which any Collateral may be located. Without limiting the generality of the foregoing, Bank may immediately, Without Notice, sell at public or private sale or otherwise realize upon, the whole or, from time to time, any part of the
Collateral, or any interest which Borrower may have therein. 
 8.5 Bank’s Additional Rights and Remedies. Upon the occurrence
of any Event of Default and except as may otherwise be prohibited or expressly provided for to the contrary under applicable Law, in addition to any rights or remedies Bank may otherwise have under this Agreement, any other Loan Documents, or under
applicable Laws, Bank shall have the right, Without Notice, to take any or all of the following actions at the same or different times: 

(A) To cancel Bank’s obligations arising under this Agreement; 

(B) To institute appropriate proceedings to enforce all rights and remedies available to Bank at law or in equity; 

(C) To take immediate possession of the Collateral as well as all other property to which title is held by Borrower as is necessary to fully
complete all onsite and offsite Improvements and complete the construction and equipping of the Project and do anything in its sole judgment to fulfill the obligations of Borrower hereunder, and/or other agreement with respect to the Project,
including availing itself of and procuring performance of existing contracts, amending the same, or entering into new contracts with the same contractors or others and employment of watchmen to protect the Collateral from injury. Without restricting
the generality of the foregoing and for the purposes aforesaid, Borrower hereby appoints and 

  
 51 

 
constitutes Bank its lawful attorney-in-fact with full power of substitution in the premises to complete
construction and equip the Project, to use funds which Borrower may have deposited with Bank pursuant to this Agreement, or to advance funds in excess of the amount of the Loans, and Borrower agrees to reimburse Bank for any expenses of such
completion which exceed undisbursed loan funds) to complete the Project; to pay all taxes and assessments on the Collateral not paid by Borrower when due and to add the amounts of any such payments to the Obligations; to make changes in the Plans
and Specifications which shall be necessary or desirable to complete the Improvements in substantially the manner contemplated by the Plans and Specifications; to retain or employ new general contractors, subcontractors, architects, engineers and
inspectors as shall be required for said purposes; to pay, settle, or compromise all bills and claims, which may be incurred in connection with constructing and equipping the Project; to purchase any fixtures, equipment, machinery, furniture or any
other personal property as may be necessary or desirable for the completion of the construction and equipping of the Project or for the clearance of title; to execute all applications and certificates in the name of Borrower which may be required;
to prosecute and defend all actions or proceedings in connection with the Collateral; and to do any act which Borrower might do in its own behalf relating to the Collateral, it being understood and agreed that this power of attorney shall be a power
coupled with an interest and cannot be revoked; 
 (D) To appoint or seek appointment of a receiver, Without Notice and without regard to
the solvency of Borrower or the adequacy of the security, for the purpose of preserving the Collateral, preventing waste, and to protect all rights accruing to Bank by virtue of this Agreement and the other Loan Documents, and expressly to make any
and all further improvements, whether onsite or offsite, as Bank may determine to be necessary to complete the development and construction of the Project. All actual expenses incurred in connection with the appointment of such receiver, or in
protecting, preserving, or improving the Collateral, shall be charged against Borrower and shall be secured by Bank’s Lien; 
 (E) To
proceed to perform any and all of the duties and obligations and exercise all the rights and remedies of Borrower contained in the Assigned Documents as fully as Borrower could itself; 

(F) To take possession of the Mortgaged Property and/or the Rents and have, hold, manage, lease and operate the Mortgaged Property on such
terms and for such period of time as Bank may in its discretion deem proper, and, either with or without taking possession of the Mortgaged Property in Bank’s own name: 

(1) Make any payment or perform any act which Borrower has failed to make or perform, in such manner and to such extent as Bank
may deem necessary to protect the security provided for in this Agreement, or otherwise, including without limitation, the right to appear in and defend any action or proceeding purporting to affect the security provided for in this Agreement, or
the rights or powers of Bank; 
 (2) Lease the Mortgaged Property or any portion thereof in such manner and for such Rents as
Bank shall determine in its discretion; or 

  
 52 

 (3) Demand, sue for, or otherwise collect and receive from all Persons all Rents,
including those past due and unpaid, with full power to make from time to time all alterations, renovations, repairs or replacements of and to the Mortgaged Property (or any part thereof) as may seem proper to Bank and to apply the Rents to the
payment of (in such order of priority as Bank, in its discretion, may determine): 
 a. All out-of-pocket expenses of
managing the Mortgaged Property, including, without limitation, the salaries, fees and wages of a managing agent and such other employees as Bank may deem necessary or desirable; 

b. All taxes, charges, claims, assessments, water rents, sewer rents, and any other liens, and premiums for all insurance
which Bank may deem necessary or desirable, and the cost of all alterations, renovations, repairs, or replacements, and all expenses incidental to taking and retaining possession of the Mortgaged Property; 

c. All or any portion of the Loans; and/or 

d. All costs and Attorneys’ Fees incurred in connection therewith. 

In connection with the foregoing, Borrower hereby authorizes and directs each party to any Assigned Document (other than Borrower), upon
receipt from Bank of written notice to the effect that an Event of Default exists, to perform all of its obligations under the Assigned Document as directed by Bank, and to continue to do as so directed until otherwise notified by Bank. 

8.6 Right of Set-Off. Upon the occurrence and during the continuance of any Event of Default, Bank may, and is hereby authorized by
Borrower, at any time and from time to time, to the fullest extent permitted by applicable Laws, and Without Notice to Borrower, set-off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and
any other indebtedness at any time owing by Bank to, or for the credit or the account of, Borrower against any or all of the Obligations now or hereafter existing whether or not such Obligations have matured and irrespective of whether Bank has
exercised any other rights that it has or may have with respect to such Obligations, including without limitation any acceleration rights. The aforesaid right of set-off may be exercised by Bank against Borrower or against any trustee in bankruptcy,
debtor in possession, assignee for the benefit of the creditors, receiver, or execution, judgment or attachment creditor of Borrower, or such trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors, receiver, or execution,
judgment or attachment creditor, notwithstanding the fact that such right of set-off shall not have been exercised by Bank prior to the making, filing or issuance, or service upon Bank of, or of notice of, any such petition; assignment for the
benefit of creditors; appointment or application for the appointment of a receiver; or issuance of execution, subpoena, order or warrant. Bank agrees to promptly notify Borrower in writing after any such set-off and application, provided that the
failure to give such notice shall not affect the validity of such set-off and application. The rights of Bank under this Section are in addition to the other rights and remedies (including, without limitation, other rights of set-off) which Bank may
have. 

  
 53 

 8.7 No Limitation on Rights and Remedies. The enumeration of the powers, rights and
remedies in this Article shall not be construed to limit the exercise thereof to such time as an Event of Default occurs if, under applicable Law or any other provision of this Agreement or any other Loan Document, Bank has any of such powers,
rights and remedies regardless of whether an Event of Default has occurred, and any limitation contained herein or in any of the other Loan Documents as to Bank’s exercise of any power, right or remedy for a period of time only during the
continuance of an Event of Default shall only be applicable at such time as Bank shall have actual knowledge that such Event of Default is no longer continuing and for a reasonable time thereafter as may be necessary for Bank to cease the exercise
of such powers, rights and remedies (it being expressly understood and agreed that until such time as Bank shall obtain such knowledge and after the expiration of such reasonable time, Bank shall have no liability whatsoever for the commencement of
or continuing exercise of any such power, right or remedy). 
 8.8 Application of Proceeds. Except as otherwise expressly required to
the contrary by applicable Law or any Loan Document, the net cash proceeds resulting from the exercise of any of the rights and remedies of Bank under this Agreement, after deducting all actual charges, expenses, costs and Attorneys’ Fees
relating thereto, shall be applied by Bank to the payment of the Obligations, whether due or to become due, in such order and in such proportions as Bank may elect; and Borrower shall remain liable to Bank for any deficiency. 

ARTICLE IX 
  

	9.	MISCELLANEOUS. 

 9.1 Termination of Bank’s Lien. This Agreement and Bank’s Lien
will not be terminated until one of Bank’s officers signs a written termination or satisfaction agreement to such effect (provided that Bank agrees to promptly provide a written termination or satisfaction agreement upon request of Borrower,
provided that the Obligations which may be satisfied by the payment of money have so been paid in full, Bank has no obligation to make any further Advances or otherwise extend any credit to Borrower under the Loan Documents, and there is not
existing any Default). Except as otherwise expressly provided for in this Agreement, no termination of this Agreement shall in any way affect or impair the representations, warranties, agreements, covenants, obligations, duties and Obligations of
Borrower Party or the powers, rights, and remedies of Bank under this Agreement with respect to any transaction or event occurring prior to such termination, all of which shall survive such termination 

9.2 Construction. The provisions of this Agreement shall be in addition to those of any other Loan Document and any guaranty, pledge or
security agreement, mortgage, deed of trust, security deed, note or other evidence of liability given by Borrower to or for the benefit of Bank, all of which shall be construed as complementary to each other, and all existing liabilities and
obligations of Borrower to Bank and any mortgages, security interests, and/or liens heretofore granted to or for the benefit of Bank shall, except and only to the extent expressly provided herein to the contrary, remain in full force and effect, and
shall not be released, impaired, diminished, or in any other way modified or amended as a result of the execution and delivery of this Agreement or any other Loan Document or by the agreements and undertaking of Borrower contained herein and
therein. Nothing herein contained shall prevent Bank from 

  
 54 

 
enforcing any or all other notes, guaranties, pledges or security agreements, mortgages, deeds of trust, or security deeds in accordance with their respective terms. In the event of a conflict
between any of the provisions of this Agreement or any of the other Loan Documents, the provisions most favorable to Bank shall control. 

9.3 Indemnity. Borrower agrees to indemnify Bank and its officers, directors, agents, and attorneys against, and to hold Bank and all
such other Persons harmless from all Default Costs, which indemnification is in addition to, and not in derogation of, any statutory, equitable, or common law right or remedy Bank may have for breach of representation, warranty, statement or
covenant or otherwise may have under any of the Loan Documents. This agreement of indemnity shall be a continuing agreement and shall survive payment of the Loans and termination of this Agreement. 

9.4 Bank’s Consent or Approval. Except where otherwise expressly provided in the Loan Documents, in any instance where any matter
or thing is required to be “satisfactory” to Bank or to Bank’s “satisfaction”, or in Bank’s “discretion” where the approval, consent, or the exercise of Bank’s judgment or discretion is otherwise required
or permitted, the granting or denial of such approval or consent and the exercise of such judgment or discretion shall be (a) within the sole and absolute discretion of Bank; and (b) deemed to have been given only by a specific writing
intended for the purpose given and executed by Bank. 
 9.5 Enforcement and Waiver by Bank. Bank shall have the right at all times to
enforce the provisions of this Agreement and each of the other Loan Documents in strict accordance with the terms hereof and thereof, notwithstanding any conduct or custom on the part of Bank in refraining from so doing at any time or times. The
failure of Bank at any time or times to enforce its rights under such provisions, strictly in accordance with the same, shall not be construed as having created a custom in any way or manner contrary to specific provisions of this Agreement or as
having in any way or manner modified or waived the same. All rights and remedies of Bank are cumulative and concurrent and the exercise of one right or remedy shall not be deemed a waiver or release of any other right or remedy. 

9.6 No Representation, Assumption, or Duty. Nothing, including any Advance or acceptance of any document or instrument, shall be
construed as a representation or warranty, express or implied, to any Person by Bank. Any inspection or audit of the Collateral or the Records of Borrower, or the procuring of documents and financial and other information, by or on behalf of Bank
shall be for Bank’s protection only, and shall not constitute any assumption of responsibility by Bank with respect thereto or relieve Borrower of any of Borrower’s obligations. Bank has no duty to supervise or to inspect the Project nor
any duty of care to Borrower or any other Person to protect against, or inform Borrower or any other Person of, the existence of negligent, faulty, inadequate or defective design or construction of any improvements to the Project. Borrower has
selected all surveyors, architects, engineers, contractors, materialmen and all other Persons furnishing services or materials to the Project. Notwithstanding any approvals or consents by Bank, Bank has no obligation or responsibility whatsoever for
the adequacy, form or content of the Plans and Specifications, any contract, any change order, any lease, or any other matter incident to the Project or the construction of the Project. Bank’s acceptance of an assignment of the Plans and
Specifications shall not constitute approval of the Plans and Specifications. 

  
 55 

 9.7 Expenses of Bank. Borrower will, on demand, reimburse Bank for all actual
out-of-pocket expenses incurred by Bank in connection with the preparation, amendment, modification or enforcement of this Agreement and the other Loan Documents and/or in the collection of any amounts owing from Borrower or any other Person to Bank
under this Agreement or any other Loan Document and, until so paid, the amount of such expenses shall be added to and become part of the Obligations. 

9.8 Attorneys’ Fees. If at any time or times hereafter Bank employs counsel to advise or provide other representation with respect
to this Agreement, any Loan Document, or any other agreement, document or instrument heretofore, now or hereafter executed by any Borrower Party and delivered to Bank with respect to the Obligations, or to commence, defend or intervene, file a
petition, complaint, answer, motion or other pleadings or to take any other action in or with respect to any suit or proceeding relating to this Agreement, any Loan Document, or any other agreement, instrument or document heretofore, now or
hereafter executed by any Borrower Party and delivered to Bank with respect to the Obligations, or to represent Bank in any litigation with respect to the affairs of any Borrower Party, or to enforce any rights of Bank or obligations of any Borrower
Party or any other Person which may be obligated to Bank by virtue of this Agreement, any Loan Document, or any other agreement, document or instrument heretofore, now or hereafter delivered to Bank by or for the benefit of Borrower with respect to
the Obligations, or to collect from Borrower any amounts owing hereunder, then in any such event, all of the Attorneys’ Fees incurred by Bank arising from such services and any actual expenses, costs and charges relating thereto shall
constitute additional obligations of Borrower payable on demand and, until so paid, shall be added to and become part of the Obligations. 

9.9 Exclusiveness. This Agreement and the other Loan Documents are made for the sole protection of Borrower Parties and Bank, and
Bank’s successors and assigns, and no other Person shall have any right of action hereunder. 
 9.10 Notices. Any notices or
consents required or permitted by this Agreement shall be sent by (i) personal delivery, for next Business Day delivery, or (ii) nationally-recognized overnight courier service (such as Federal Express), as follows, unless such address is
changed by written notice hereunder: 
  

	 	(A)	If to Borrower: 

 GGT Daniel SC Venture, LLC 

c/o Daniel Realty Company, LLC 

3660 Grandview Parkway, Suite 100 

Birmingham, Alabama 35243 

Attention: Mr. Scott Pulliam 

  
 56 

 and: 

GGT Daniel SC Venture, LLC 
 c/o
CNL Center at City Commons 
 450 South Orange Avenue 

Orlando, Florida 32801 

Attention: Holly J. Greer, General Counsel 

with copies to: 

Burr & Forman LLP 
 420
North 20th Street 
 Suite 3400 

Birmingham, Alabama 35203 

Attention: Gail Livingston Mills 

and: 
 Lowndes, Drosdick,
Doster, Kantor & Reed, P.A. 
 450 South Orange Avenue 

Orlando, Florida 32801 

Attention: Joaquin E. Martinez, Esq. 
  

	 	(B)	If to Guarantors: 

 Daniel Realty Company, LLC 

3660 Grandview Parkway, Suite 100 

Birmingham, Alabama 35243 

Attention: Mr. Scott Pulliam 

Daniel Investment Partners, LLC 

c/o Daniel Realty Company, LLC 

3660 Grandview Parkway, Suite 100 

Birmingham, Alabama 35243 

Attention: Mr. Scott Pulliam 

Daniel Realty Services, L.L.C. 

c/o Daniel Realty Company, LLC 

3660 Grandview Parkway, Suite 100 

Birmingham, Alabama 35243 

Attention: Mr. Scott Pulliam 

  
 57 

 with a copy to: 

Burr & Forman LLP 
 420
North 20th Street 
 Suite 3400 

Birmingham, Alabama 35203 

Attention: Gail Livingston Mills 
  

	 	(C)	If to Bank: 

 Synovus Bank 

800 Shades Creek Parkway 

Birmingham, Alabama 35209 

Attention: Mr. Haston Simmons 

with a copy to: 
 Ray D.
Gibbons, Esq. 
 Gibbons Graham LLC 

100 Corporate Parkway, Suite 125 

Birmingham, Alabama 35242 
 Any such notice or
consent shall be deemed to have been given upon either (a) actual receipt thereof, or (b) on the next Business Day following deposit of the same with any nationally-recognized overnight courier delivery service. 

9.11 Waiver and Release by Borrower. Unless and only to the extent as may be expressly limited or prohibited under applicable Laws or
as provided for herein or in any other Loan Document to the contrary, Borrower (A) waives protest of all commercial paper at any time held by Bank on which Borrower is any way liable; (B) waives notice of acceleration and of intention to
accelerate; (C) waives notice and opportunity to be heard, after acceleration, before exercise by Bank of the remedies of self-help, set-off, or of other summary procedures permitted by any applicable Laws or by any agreement with Borrower, and
except where required under the Loan Documents or by any applicable Laws which requirement cannot be waived, notice of any other action taken by Bank; and (D) releases Bank and its officers, attorneys, agents and employees from all claims for
loss or damage caused by any act or omission on the part of any of them except fraud, gross negligence or willful misconduct. 
 9.12
Limitation on Waiver of Notice, Etc. Notwithstanding any provision of this Agreement to the contrary, to the extent that any applicable Law expressly limits any waiver of any right contained herein or in any other Loan Document (including any
waiver of any notice or other demand), such waiver shall be ineffective to such extent. 
 9.13 Assignment and Participation.
Notwithstanding any other provision of this Agreement, Borrower understands and agrees that Bank may enter into participation or other agreements with Participants whereby Bank will allocate certain percentages of its commitment to them and/or
assign all or a portion of its rights and obligations under this Agreement and/or 

  
 58 

 
the other Loan Documents (all such participations and assignments to be a minimum amount of $10,000,000). Borrower acknowledges and agrees that, for the convenience of all parties, this Agreement
is being entered into with Bank only and that its obligations under this Agreement are undertaken for the benefit of, and as an inducement to each such Participant as well as Bank, and Borrower hereby agrees that, at Bank’s election and if
consistent with the terms of any such participation or other agreement, upon prior written notice from Bank to Borrower, each such Participant shall have the same rights and/or obligations as if it were an original party to this Agreement, subject
only to any contrary provision in such participation or other agreement, and Borrower hereby grants to each such Participant, the right to set off deposit accounts maintained by Borrower with such Participant; provided that (i) Bank’s
obligations under this Agreement shall remain unchanged, (ii) Bank shall remain solely responsible to Borrower hereto for the performance of such obligations, and (iii) Borrower shall continue to deal solely and directly with Bank in
connection with Bank’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which Bank sells such a participation shall provide Bank shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement. Borrower authorizes Bank to disclose financial and other information regarding Borrower to Participants and potential Participants; provided, however, that Bank shall require that
each Participant and potential Participant maintain the confidentiality of all information delivered to them in connection with the Loans (except as necessary to be shared on a need to know basis with their respective legal counsel, accountants or
other professionals). Notwithstanding anything provided to the contrary in this Agreement or in any of the other Loan Documents, until the occurrence of an Event of Default, Bank may assign its rights with respect to the Loans and its rights under
the Loan Documents only to any Person who would constitute a Participant. 
 9.14 Governing Law. This Agreement is entered into and
performable in the State of Alabama, and the substantive Laws, without giving effect to principles of conflict of laws, of the United States and the State of Alabama shall govern the construction of this Agreement and the other Loan Documents, and
the rights and remedies of the parties hereto and thereto, except to the extent that the location of any Collateral in a Jurisdiction other than Alabama requires that the perfection of Bank’s Lien, and the enforcement of certain of Bank’s
remedies with respect to the Collateral, be governed by the Laws of such other Jurisdiction. 
 9.15 SUBMISSION TO JURISDICTION;
WAIVERS. 
 (A) EACH OF BORROWER AND BANK HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF ALABAMA, THE DISTRICT COURTS OF THE UNITED STATES OF AMERICA IN
THE STATE OF ALABAMA, AND APPELLATE COURTS FROM ANY THEREOF; CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS, AND WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY
SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME; 

  
 59 

 (B) EACH OF BORROWER AND BANK HEREBY: 

(1) IRREVOCABLY AND UNCONDITIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OR COUNTERCLAIM OF ANY TYPE
AS TO ANY MATTER ARISING DIRECTLY OR INDIRECTLY OUT OF OR WITH RESPECT TO THIS AGREEMENT, THE NOTE, ANY OF THE OTHER LOAN DOCUMENTS OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH; AND 

(2) AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND
BARGAINED FOR AGREEMENT BETWEEN THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY, AND THAT ANY DISPUTE OR CONTROVERSY OF ANY KIND WHATSOEVER BETWEEN THEM SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 9.16 Binding Effect; Assignment. This Agreement shall inure to the benefit of, and shall be binding upon, the respective
successors and permitted assigns of the parties hereto. Borrower has no right to assign any of its rights or obligations hereunder without the prior written consent of Bank. 

9.17 Entire Agreement, Amendments. This Agreement, including the Exhibits hereto, all of which are hereby incorporated herein by
reference, and the documents executed and delivered pursuant hereto, constitute the entire agreement between the parties, and may be amended only by a writing signed on behalf of each party. 

9.18 Severability. If any provision of this Agreement or any of the other Loan Documents shall be held invalid under any applicable
Laws, such invalidity shall not affect any other provision of this Agreement or such other instrument or agreement that can be given effect without the invalid provision, and, to this end, the provisions hereof are severable. 

9.19 Headings. The section and paragraph headings hereof are inserted for convenience of reference only, and shall not alter, define,
or be used in construing the text of such sections and paragraphs. 
 9.20 Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. 

9.21 Seal. This Agreement is intended to take effect as an instrument under seal. 

* * * * * 

  
 60 

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

							
	BORROWER:
	
	 GGT DANIEL SC VENTURE, LLC,
 a
Delaware limited liability company

		
	By:	 	DANIEL HAYWOOD, LLC,
		 	an Alabama limited liability company,
		 	its Operating Member
			
		 	By:	 	DANIEL MANAGEMENT CORPORATION,
		 		 	an Alabama corporation,
		 		 	its Manager
				
		 		 	By:	 	 R. Scott Pulliam

		 		 		 	R. Scott Pulliam,
		 		 		 	its Senior Vice President
	
	BANK:
	
	 SYNOVUS BANK,
 a Georgia banking
corporation,

		
	By:	 	 Hoston Simmons

			
	Print Name:	 	 Hoston Simmons

	Print Title:	 	 Vice-President

  
 61 

 EXHIBIT A 

COST BUDGET 
 INTENTIONALLY
OMMITTED 
 EXHIBIT B 

Environmental Site Assessment Reports 

INTENTIONALLY OMMITTED 

  
 62

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]