Document:

First Amendment to the Amended and Restated Services Agreement

 Exhibit 10.1 
  

			
	 Exhibit 10.1
 as filed with
 10-Q
	  	Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*].
A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

 FIRST AMENDMENT TO AMENDED AND RESTATED SERVICES AGREEMENT 
 This FIRST AMENDMENT TO THE AMENDED AND RESTATED SERVICES AGREEMENT (this “First Amendment”) is made and entered into as of April 7, 2006 (the
“First Amendment Effective Date”) by and between DIRECTV, Inc., a California corporation (“DIRECTV”), and TiVo Inc., a Delaware corporation (“TiVo”) (collectively, the “Parties”). 
 Recitals 
 Whereas, the Parties
entered into that certain Amended and Restated Services Agreement having an effective date of March 31, 2005 (the “Services Agreement”); 
 Whereas, the Parties wish to amend certain provisions in the Services Agreement. 
 Now,
Therefore, the Parties agree as follows: 
 Agreement 
 Unless stated otherwise, capitalized terms used herein shall have the meanings set forth in the Services Agreement. 
  

	 	1.	TiVo’s TiVoVision Use. Section 2.3(b) is hereby amended to add the following sentences at the end: 

 “During the Term, DIRECTV will provide TiVo with contact information for (i) a DIRECTV employee or contractor responsible for the network
connections and ticker servers at DIRECTV that are used to distribute TiVoVision to DIRECTV DVR Receivers via satellite broadcast and (ii) a DIRECTV employee to whom issues may be escalated. In the event of any change in such contact
information or assigned personnel, DIRECTV will promptly update TiVo with new contact information for the assigned personnel.” 
  

	 	2.	Technical Support. Section 6.1(a) of the Services Agreement is hereby amended to add the following sentences at the end: 

 “Notwithstanding the foregoing, until the earlier of (x) the date when conditions are met to allow use of the most recent version of the
Authoring Tools provided by TiVo to DIRECTV or (y) [*] from the First Amendment Effective Date (the earlier of (x) or (y), the “EOL Date”), TiVo shall instead provide to DIRECTV[*] such commercially 

	[*]	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 reasonable training and technical assistance related to DIRECTV’s reasonable use of the version of
Authoring Tools then in use by DIRECTV and use of TiVo’s server infrastructure, if applicable, in accordance with this Agreement. Following the EOL Date and for the remainder of the Term, at DIRECTV’s option, TiVo will provide such
commercially reasonable training and technical assistance related to DIRECTV’s reasonable use of the version of Authoring Tools then in use by DIRECTV (if other than the most recent version of the Authoring Tools provided by TiVo to DIRECTV)
and use of TiVo’s server infrastructure, if applicable, in accordance with this Agreement, and DIRECTV will pay TiVo for such training and technical assistance [*] within 30 days of receipt of an invoice from TiVo for such services.”

  

	 	3.	DIRECTV Lead Generation Files. The following sentence is hereby added to the end of Section 6.7: 

 “For clarity, TiVo’s obligation to deliver lead generation files as set forth in this Section 6.7, and [*] by DIRECTV, shall [*] the
version of Authoring Tools utilized by DIRECTV in connection with distribution of the applicable lead generation objects to DIRECTV DVR Receivers.” 
  

	 	4.	Successors; Assigns. The first four sentences of Section 13.4 are hereby deleted and replaced in their entirety with the following: 

 “All the terms of this Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the respective
parties hereto. Neither party may assign this Agreement without the written consent of the other party, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, either party may transfer and assign this Agreement, by
operation of law or otherwise, to the surviving entity in the event of a sale to, merger with, or acquisition of all or substantially all of such party’s assets by such entity, and each party hereby consents to such assignment in advance;
provided, however, in the event of a “TiVo Change of Control” (as defined below), upon the request of DIRECTV, provided [*] notice of such Change of Control is provided by TiVo, this Agreement shall be automatically amended to
(i) terminate TiVo’s rights to distribute TiVoVision and I-Preview Tags to DIRECTV DVR Receivers, and terminate TiVo’s rights to associated broadcast time for delivery of content, and (ii) require DIRECTV to pay a license fee of
[*] (on a prorated basis) for use of the Authoring Tools thereafter during the remaining Term of this Agreement.” 
  

	 	5.	Effect of Amendment. Except as expressly modified herein, all other terms and condition of the Services Agreement shall remain in full force and effect.

	[*]	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

  

 2 

 In Witness Whereof, TiVo and DIRECTV have duly executed this First Amendment by their respective duly authorized
officers. This First Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same original. 
  

									
	TiVo Inc.	 		 	DIRECTV, Inc.
					
	 By:
	 	 /s/ Edward Lichty
	 		 	 By:
	 	 /s/ Romulo Pontual

	 Name: 
	 	 Edward Lichty
	 		 	 Name: 
	 	 Romulo Pontual

	 Title: 
	 	 VP, Corporate Development
	 		 	 Title: 
	 	 EVP & CTO

  

 3Amended and Restated Operating Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED OPERATING AGREEMENT 
 OF 
 SPRINGHURST HOUSING PARTNERS, LLC 
 THIS SECURITY HAS
NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “FEDERAL ACT”), IN RELIANCE UPON ONE (1) OR MORE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE FEDERAL
ACT. IN ADDITION, THE ISSUANCE OF THIS SECURITY HAS NOT BEEN QUALIFIED UNDER THE INDIANA SECURITIES ACT OR ANY OTHER STATE SECURITIES LAWS (COLLECTIVELY, THE “STATE ACTS”), IN RELIANCE UPON ONE (1) OR MORE EXEMPTIONS FROM THE
REGISTRATION PROVISIONS OF THE STATE ACTS. IT IS UNLAWFUL TO CONSUMMATE A SALE OR OTHER TRANSFER OF THIS SECURITY OR ANY INTEREST THEREIN TO, OR TO RECEIVE ANY CONSIDERATION THEREFOR FROM, ANY PERSON OR ENTITY WITHOUT THE OPINION OF COUNSEL FOR THE
COMPANY THAT THE PROPOSED SALE OR OTHER TRANSFER OF THIS SECURITY DOES NOT AFFECT THE AVAILABILITY TO THE COMPANY OF SUCH EXEMPTIONS FROM REGISTRATION AND QUALIFICATION, AND THAT SUCH PROPOSED SALE OR OTHER TRANSFER IS IN COMPLIANCE WITH ALL
APPLICABLE STATE AND FEDERAL SECURITIES LAWS. THE TRANSFER OF THIS SECURITY IS FURTHER RESTRICTED UNDER THE TERMS OF THE AMENDED AND RESTATED OPERATING AGREEMENT GOVERNING THE COMPANY, A COPY OF WHICH IS ON FILE WITH THE OPERATING MEMBER OF THE
COMPANY. 

 AMENDED AND RESTATED OPERATING AGREEMENT 
 OF 
 SPRINGHURST HOUSING PARTNERS, LLC 
 TABLE OF CONTENTS 
  

					
	  	  	 	  	Page
	 ARTICLE 1 FORMATION
	  	1
			
	 1.01
	  	 Formation
	  	1
	 1.02
	  	 Names and Addresses
	  	1
	 1.03
	  	 Nature of Business
	  	2
	 1.04
	  	 Term of the Company
	  	2
		
	 ARTICLE 2 MANAGEMENT OF THE COMPANY
	  	2
			
	 2.01
	  	 Management Committee
	  	2
	 2.02
	  	 Authority of the Management Committee
	  	5
	 2.03
	  	 Operating Member
	  	8
	 2.04
	  	 Annual Business Plan
	  	10
	 2.05
	  	 Operating Budget
	  	10
	 2.06
	  	 Removal of the Operating Member
	  	11
	 2.07
	  	 Liability and Indemnity
	  	13
	 2.08
	  	 Limited Liability
	  	13
	 2.09
	  	 Other Activities
	  	13
	 2.10
	  	 Brokers Indemnity
	  	14
	 2.11
	  	 Reimbursement; Compensation
	  	14
	 2.12
	  	 Property Management
	  	14
		
	 ARTICLE 3 MEMBERS’ CAPITAL CONTRIBUTIONS
	  	15
			
	 3.01
	  	 Initial Contributions of the Members
	  	15
	 3.02
	  	 Additional Contributions
	  	15
	 3.03
	  	 Remedy For Failure to Contribute Capital
	  	16
	 3.04
	  	 Debt Financing
	  	19
	 3.05
	  	 Loans from Members
	  	19
	 3.06
	  	 Capital Contributions in General
	  	19
		
	 ARTICLE 4 ALLOCATION OF PROFITS AND LOSSES
	  	20
			
	 4.01
	  	 Allocation of Net Profits and Net Losses
	  	20
	 4.02
	  	 Regulatory Allocations
	  	20
	 4.03
	  	 Other Special Allocations
	  	21
	 4.04
	  	 Other Allocation Rules
	  	21
		
	 ARTICLE 5 DISTRIBUTIONS
	  	22
			
	 5.01
	  	 Distribution of Ordinary Cash Flow
	  	22
	 5.02
	  	 Distribution of Extraordinary Cash Flow
	  	22
	 5.03
	  	 Limitations on Distributions
	  	23
	 5.04
	  	 In-Kind Distribution
	  	23
	 5.05
	  	 Right to Withhold
	  	23

					
	 ARTICLE 6 RESTRICTIONS ON TRANSFERS OF COMPANY INTERESTS
	  	23
			
	 6.01
	  	 Limitations on Transfer
	  	23
	 6.02
	  	 Permitted Transfers
	  	24
	 6.03
	  	 Admission of Substitute Members
	  	24
	 6.04
	  	 Additional Restrictions on Transfer
	  	25
	 6.05
	  	 Buckingham Put Right
	  	25
	 6.06
	  	 Buckingham Pre-Emptive Put Right
	  	27
	 6.07
	  	 Election; Allocations Between Transferor and Transferee
	  	28
	 6.08
	  	 Partition
	  	28
	 6.09
	  	 Waiver of Withdrawal
	  	28
		
	 ARTICLE 7 DEFAULT BUY-SELL AGREEMENT
	  	29
			
	 7.01
	  	 Default Buy-Sell Events
	  	29
	 7.02
	  	 Rights Arising From a Default Buy-Sell Event
	  	30
	 7.03
	  	 Determination of Purchase Price
	  	31
	 7.04
	  	 Member’s Option
	  	33
	 7.05
	  	 Closing of Purchase and Sale
	  	34
	 7.06
	  	 Payment of Purchase Price
	  	35
	 7.07
	  	 Release and Indemnity
	  	35
	 7.08
	  	 Repayment of Member Loans
	  	35
	 7.09
	  	 Voting Rights Following Default Buy-Sell Event
	  	36
	 7.10
	  	 Withdrawal of the Selling Member
	  	36
		
	 ARTICLE 8 DISSOLUTION AND WINDING UP OF THE COMPANY
	  	36
			
	 8.01
	  	 Events Causing Dissolution of the Company
	  	36
	 8.02
	  	 Winding Up of the Company
	  	37
	 8.03
	  	 No Negative Capital Account Restoration
	  	37
		
	 ARTICLE 9 BOOKS AND RECORDS; ACCOUNTING; TAX ELECTIONS
	  	37
			
	 9.01
	  	 Company Books
	  	37
	 9.02
	  	 Delivery of Records; Inspection
	  	37
	 9.03
	  	 Reports and Tax Information
	  	38
	 9.04
	  	 Company Tax Elections; Tax Controversies
	  	40
	 9.05
	  	 Accounting and Fiscal Year
	  	40
	 9.06
	  	 Confidentiality of Information
	  	40
		
	 ARTICLE 10 MISCELLANEOUS
	  	40
			
	 10.01
	  	 Subscription Agreement
	  	40
	 10.02
	  	 Investment Interest; Nature of Investment
	  	41
	 10.03
	  	 Appointment of Attorney-in-Fact
	  	41
	 10.04
	  	 Waiver of Conflict of Interest
	  	42
	 10.05
	  	 Amendment
	  	42
	 10.06
	  	 No Assignments; Binding Effect
	  	42

					
	 10.07
	  	 Further Assurances
	  	43
	 10.08
	  	 Notices
	  	43
	 10.09
	  	 Waivers
	  	44
	 10.10
	  	 Preservation of Intent
	  	44
	 10.11
	  	 Entire Agreement
	  	44
	 10.12
	  	 Certain Rules of Construction
	  	45
	 10.13
	  	 Counterparts
	  	45
	 10.14
	  	 Governing Law
	  	45
	 10.15
	  	 Assurances
	  	45
	 10.16
	  	 Time is of the Essence
	  	45
	 10.17
	  	 Other Matters
	  	46
	 10.18
	  	 Ownership of Buckingham and Property Manager
	  	46
		
	 ARTICLE 11 DEFINITIONS
	  	46
			
	 11.01
	  	 Additional Contribution
	  	46
	 11.02
	  	 Additional Member
	  	46
	 11.03
	  	 Adjusted Capital Account
	  	47
	 11.04
	  	 Affiliate
	  	47
	 11.05
	  	 Agreement
	  	47
	 11.06
	  	 Annual Business Plan
	  	47
	 11.07
	  	 Appraised Value
	  	47
	 11.08
	  	 Buckingham
	  	47
	 11.09
	  	 Buckingham Put Interest
	  	47
	 11.10
	  	 Business Day
	  	47
	 11.11
	  	 Buyout Purchase Price
	  	48
	 11.12
	  	 Buy-Sell Notice
	  	48
	 11.13
	  	 Capital Account
	  	48
	 11.14
	  	 Capital Contribution
	  	48
	 11.15
	  	 Capital Event
	  	48
	 11.16
	  	 Cash Flow
	  	49
	 11.17
	  	 Cash Flow Bonus Forfeiture Event
	  	49
	 11.18
	  	 Code
	  	49
	 11.19
	  	 Company
	  	49
	 11.20
	  	 Company Minimum Gain
	  	49
	 11.21
	  	 Contributing Member
	  	49
	 11.22
	  	 Contribution Date
	  	49
	 11.23
	  	 Contribution Notice
	  	49
	 11.24
	  	 Contribution Percentage
	  	50
	 11.25
	  	 Default Buy-Sell Event
	  	50
	 11.26
	  	 Default Notice
	  	50
	 11.27
	  	 Defaulting Member
	  	50
	 11.28
	  	 Defaulting Party Purchase Price
	  	50
	 11.29
	  	 Default Purchase Price
	  	50
	 11.30
	  	 Delinquent Contribution
	  	50
	 11.31
	  	 Designated Put Interest
	  	50

					
	 11.32
	  	 Dilution Percentage
	  	50
	 11.33
	  	 Effective Date
	  	50
	 11.34
	  	 Extraordinary Cash Flow
	  	50
	 11.35
	  	 Fiscal Year
	  	51
	 11.36
	  	 Gross Asset Value
	  	51
	 11.37
	  	 Immediate Family
	  	52
	 11.38
	  	 Indemnified Party
	  	52
	 11.39
	  	 Indiana Act
	  	52
	 11.40
	  	 Interest
	  	53
	 11.41
	  	 IRR
	  	53
	 11.42
	  	 Liquidation
	  	53
	 11.43
	  	 Majority of Representatives
	  	53
	 11.44
	  	 Management Committee
	  	53
	 11.45
	  	 Material Breach
	  	53
	 11.46
	  	 Member Loan
	  	54
	 11.47
	  	 Member Minimum Gain
	  	54
	 11.48
	  	 Member Nonrecourse Debt
	  	54
	 11.49
	  	 Member Nonrecourse Deductions
	  	54
	 11.50
	  	 Member(s)
	  	54
	 11.51
	  	 Net Profits and Net Losses
	  	54
	 11.52
	  	 Non-Contributing Member
	  	55
	 11.53
	  	 Nonrecourse Deductions
	  	55
	 11.54
	  	 Operating Account
	  	55
	 11.55
	  	 Operating Budget
	  	56
	 11.56
	  	 Operating Member
	  	56
	 11.57
	  	 Ordinary Cash Flow
	  	56
	 11.58
	  	 Paladin
	  	56
	 11.59
	  	 Paladin Sale Notice
	  	56
	 11.60
	  	 Paladin Sale Offer
	  	56
	 11.61
	  	 Paladin Valuation
	  	56
	 11.62
	  	 Paladin REIT
	  	56
	 11.63
	  	 Partially Adjusted Capital Account
	  	57
	 11.64
	  	 Percentage Interest
	  	57
	 11.65
	  	 Permitted Transferees
	  	57
	 11.66
	  	 Person
	  	57
	 11.67
	  	 Price Determination Notice
	  	57
	 11.68
	  	 Preferred Return
	  	57
	 11.69
	  	 Project
	  	58
	 11.70
	  	 Project Shortfall
	  	58
	 11.71
	  	 Property Management Agreement
	  	58
	 11.72
	  	 Property Manager
	  	58
	 11.73
	  	 Purchasing Member
	  	58
	 11.74
	  	 Put Right
	  	58
	 11.75
	  	 Qualified Appraiser
	  	58

					
	 11.76
	  	 REIT
	  	58
	 11.77
	  	 Removal Event
	  	59
	 11.78
	  	 Removal Notice
	  	59
	 11.79
	  	 Securities Act
	  	59
	 11.80
	  	 Seller Loan
	  	59
	 11.81
	  	 Selling Member
	  	59
	 11.82
	  	 Target Capital Account
	  	59
	 11.83
	  	 Tax Matters Partner
	  	59
	 11.84
	  	 Threshold Return
	  	59
	 11.85
	  	 Third-Party Offer Notice
	  	59
	 11.86
	  	 Third-Party Purchase Price
	  	59
	 11.87
	  	 Transfer
	  	60
	 11.88
	  	 Treasury Regulation
	  	60
	 11.89
	  	 Unanimous Written Consent
	  	60
	 11.90
	  	 Unpaid Preferred Return
	  	60
	 11.91
	  	 Unrecovered Contribution Account
	  	60

 Exhibit List 
  

			
	 Exhibit “A”
	  	 Initial Capital Contributions

	 Exhibit “B”
	  	 Property Description for Project

	 Exhibit “C”
	  	 Annual Operating Budget for 2006

	 Exhibit “D”
	  	 Information Regarding Buckingham

	 Exhibit “E”
	  	 xIRR Calculation

 AMENDED AND RESTATED OPERATING AGREEMENT 
 OF 
 SPRINGHURST HOUSING PARTNERS, LLC 
 THIS AMENDED AND RESTATED OPERATING AGREEMENT OF SPRINGHURST HOUSING PARTNERS, LLC (the “Company”), is entered into effective as of
June 1, 2006, by and between PRIP 3700, LLC, a Delaware limited liability company (“Paladin”), and BUCKINGHAM SPRINGHURST, LLC, an Indiana limited liability company (“Buckingham”). The capitalized terms used
herein and not otherwise defined shall have the respective meanings assigned to such terms in Article 11. 
 ARTICLE 1

 FORMATION 
  

	 	1.01	Formation 

 The Company has
been formed as an Indiana limited liability company pursuant to the provisions of the Indiana Act. In connection with the formation of the Company, a duly authorized representative of the Company has caused to be filed with the office of the Indiana
Secretary of State the duly executed Articles of Organization for the Company in accordance with the Indiana Act. A duly authorized representative also shall execute, acknowledge and/or verify such other documents and/or instruments as may be
necessary and/or appropriate in order to continue its existence in accordance with the provisions of the Indiana Act and/or to register, qualify to do business and/or operate its business as a foreign limited liability company in any other state in
which the Company conducts business. In connection with the formation of the Company, there was executed and delivered an Operating Agreement, dated May 28, 1997, which the parties hereto desire to amend and restate in its entirety pursuant to
this Agreement. From and after the date hereof, the Company shall be operated in accordance with, and the Members shall be governed by, the terms and conditions of this Agreement. If any terms of this Agreement are inconsistent with any terms of the
Act that are not mandatory, then the terms of this Agreement shall control. 
  

	 	1.02	Names and Addresses 

 The
name of the Company is Springhurst Housing Partners, LLC The registered office of the Company in the State of Indiana shall be at 333 N. Pennsylvania Street, 10th Floor, Indianapolis, Indiana 46204 and the name of the registered agent for the Company at such registered office is Buckingham Investment Corporation. For so long as Buckingham is the Operating
Member, the principal office for the Company shall 

 
be maintained at 333 N. Pennsylvania Street, 10th Floor, Indianapolis, Indiana 46204, or such other location at which Buckingham maintains an office and thereafter at such other place as the Management Committee may designate from time to time. Copies of any material
notices or other matters received by the Company shall be promptly delivered by the Operating Member to the Members. 
  

	 	1.03	Nature of Business 

 The
purpose for which the Company is to exist is (i) to acquire, own, manage, operate, maintain, finance, hold for investment, and sell that certain real property more particularly described on Exhibit B attached hereto, together with
existing improvements consisting of an approximately 264 unit apartment complex and related amenities and improvements located thereto located at 3700 Springhurst Boulevard in Louisville, Kentucky (the “Project”); (ii) to
conduct such other activities with respect to, and otherwise realize and optimize the economic internal rates of return from, the Project and any and all other related assets the Company may hereinafter acquire as are appropriate to carrying out the
foregoing purposes; and (iii) to do all things incidental to or in furtherance of the above enumerated purposes. 
  

	 	1.04	Term of the Company 

 The
term of the Company commenced on the date the Articles of Organization for the Company were filed with the Indiana Secretary of State and shall continue until December 31, 2046, unless otherwise dissolved pursuant to Article 8 or unless
extended by the unanimous agreement of the Members. The existence of the Company as a separate legal entity shall continue until the filing of articles of dissolution of the Company in accordance with the provisions of the Indiana Act. 

ARTICLE 2 
 MANAGEMENT OF THE
COMPANY 
  

	 	2.01	Management Committee 

 (a)
Management by Management Committee. Except as otherwise provided in this Agreement, all aspects of the business and affairs of the Company shall be managed, and all decisions affecting the business and affairs of the Company (including,
without limitation, investment and Project related decisions) shall be made, by the Members acting through a management committee (the “Management Committee”) composed of five (5) representatives in accordance with the
provisions contained below. The Members, exclusively through the Management Committee, shall have the right, power and authority to take any and all actions consistent with the purpose of the Company that is permitted hereunder and under applicable
law. No Member shall have any right, power or authority to act (as agent or otherwise) for, or to bind, the Company in any manner (other than as expressly provided herein) except through the Management Committee. 
  

 -2- 

 (b) Representatives. Paladin shall be entitled to select three
(3) representatives of the Management Committee, and Buckingham shall be entitled to select two (2) representatives of the Management Committee. Paladin hereby designates James R. Worms, William K. Dunbar, and Whitney A. Greaves as its
initial representatives on the Management Committee, and Buckingham hereby designates Bradley B. Chambers and Alexandria Jackiw as its initial representatives of the Management Committee. Paladin may appoint a replacement representative at any time
and from time to time for any one or more of the representatives it designated by giving written notice of such replacement to Buckingham, which replacement shall be effective upon the giving of such notice. The Members acting through the Management
Committee shall have the authority to make all decisions affecting the business and affairs of the Company as fully and completely as if the Members were themselves making such decisions. Each Member recognizes and agrees, however, that the
representatives on the Management Committee are acting exclusively on behalf of the Member they represent, respectively, and that such representatives shall not, therefore, have any personal liability by reason of serving as a representative of such
Member. 
 (c) Decisions. Except as otherwise set forth in this Agreement, any actions required or permitted to be
taken by the Management Committee shall be so taken only either (i) with the approval of a Majority of Representatives at a meeting of the Management Committee or (ii) by Unanimous Written Consent without a meeting pursuant to
Section 2.01(i). The Management Committee may, but shall not be required to, memorialize its actions in the form of minutes, which minutes, when signed by at least one representative on the Management Committee appointed by each of
Paladin and Buckingham, shall be conclusive evidence of such action and shall be incorporated into the books and records of the Company. Notwithstanding anything contained herein to the contrary, each Member hereby agrees and covenants that it shall
direct its representatives on the Management Committee to execute any minutes relating to actions that were taken in accordance with this Section 2.01(c) regardless of whether such Member voted in favor of the action. 
 (d) Meetings. Regular meetings of the Management Committee shall be held at the principal office of the Company (or at such other
place(s) as are designated by the Management Committee) at such times as shall be designated from time to time by the Management Committee. 
 (e) Special Meetings. Special meetings of the Management Committee may be called by or at the request of any representative and shall be held at the principal office of the Company (or at such other place(s) as
may be designated by the Management Committee). The representative calling any special meeting of the Management Committee may designate any reasonable time for the holding of the special meeting. 
 (f) Telephonic Participation. Representatives of the Management Committee may participate in any regularly scheduled or special
meetings of the Management Committee telephonically or through other similar communications equipment, as long as all of the representatives participating in the meeting can hear one 

  

 -3- 

 
another. Participation in a meeting pursuant to the preceding sentence shall constitute presence in person at such meeting for all purposes of this
Agreement. 
 (g) Notice and Attendance. Notice of any meeting of, or of any action taken without a meeting pursuant to
Section 2.01(i) by, the Management Committee shall be given as far in advance of the meeting as is reasonably practicable. Representatives, absent exigent circumstances, shall use their best efforts to give any such notice at least
forty-eight (48) hours prior to such meeting, unless otherwise agreed by the representatives, and to attend all meetings of the Management Committee. 
 (h) Quorum. A quorum shall be required to conduct any business at any meeting of the Management Committee, and shall be deemed present at any such meeting so long as at least one representative of each Member
is in attendance (whether in person or otherwise). 
 (i) Actions Without Meetings. Any action required or permitted to
be taken at a meeting of the Management Committee may be taken without a meeting with Unanimous Written Consent, which consent shall set forth the actions to be so taken. Any such Unanimous Written Consent shall have the same effect as an act of a
Majority of Representatives at a properly called and constituted meeting of the Management Committee. Copies of any such written consent shall be delivered promptly to all representatives. 
 (j) Execution of Documents. Except as provided in Section 2.03 below, all contracts, agreements and other documents or
instruments affecting or relating to the business and affairs of the Company may be executed on the Company’s behalf only by the Members, or such other person(s) as may be designated by the Management Committee and without execution by any
other Member. 
 (k) Unauthorized Actions. None of the Members or officers of the Company, without the prior consent of
the Management Committee, shall take any action on behalf of or in the name of the Company, or enter into any commitment or obligation binding upon the Company, except for (i) actions expressly authorized by this Agreement, (ii) actions by
any Member (or officer) within the scope of such Member’s (or officer’s) authority expressly granted hereunder, and (iii) actions authorized by the Management Committee in the manner set forth herein. Each Member hereby indemnifies,
defends, protects and holds wholly harmless the other Members and each such other Member’s Affiliates, shareholders, officers, directors, constituent members, Members, employees, agents, and representatives (including the representative(s) to
the Management Committee appointed by such Member) from and against any and all losses, liability, damages, costs and expenses (including attorneys’ fees) arising out of the breach of any of the foregoing provisions by such indemnifying Member,
any representative of the Management Committee selected by such Member or such Member’s Affiliates, shareholders, officers, directors, constituent members, Members, employees, agents, or representatives. 
  

 -4- 

	 	2.02	Authority of the Management Committee 

 Without limiting the generality of Section 2.01, and except as otherwise provided by this Agreement, the consent of the Management Committee shall be required for the Company to undertake, and the
Management Committee shall have the right, power and authority to approve and cause the Company to undertake, all of the following actions (which actions shall be approved by a Majority of Representatives unless otherwise expressly provided below):

 (a) Issuance of Additional Interests. The issuance of any additional Interests in the Company or the admission of
any Additional Member into the Company; provided, however, that such a decision shall require the approval of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written
Consent; 
 (b) Sale or Other Transfer. Except as provided in accordance with the provisions of Article 7, the
sale, lease, exchange, transfer or other disposition of all or any portion of the Project or any other assets of the Company; provided, however, if a decision to sell substantially all of the assets of the Company (including the Project) is
approved by a Majority of Representatives, but is not approved by all of the representatives present at a meeting of the Management Committee at which a quorum is present or by Unanimous Written Consent, then Paladin shall have the right to invoke
the procedure set forth in Section 6.06 by giving Buckingham written notice (a “Paladin Sale Notice”) within thirty (30) days after the date of such approval by a Majority of Representatives; 
 (c) Financing or Refinancing. Any and all financing or refinancing for the Company or the Project, the terms and conditions
thereof, or any modifications or amendments thereto; provided, however, that such a decision shall require the approval of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous
Written Consent; 
 (d) Material Company Transactions. The entry into by the Company and the taking by the Company of
any and all actions permitted or required by the Company in connection with any acquisition, disposition, merger, “roll-up” consolidation, reorganization, recapitalization, restructuring, joint venture, partnership, limited liability
company, or any other material business transaction involving the Company or its assets, including, without limitation, any and all actions required or permitted in connection with any initial public offering of ownership interests in the Company
(or in connection with the merger or the transfer of the assets of the Company to any corporation or other entity that is the successor to the Company that intends to conduct an initial public offering) or any transfer of all or any portion of the
assets of the Company to a public or private market vehicle that intends to qualify as a real estate investment trust (“REIT”) under Section 856 et. seq. of the Code or to a partnership, limited liability company or
other entity whose general partner, managing member or other 

  

 -5- 

 
owner, intends to qualify as a REIT or to a comparable public or private REIT vehicle; provided, however, that such a decision shall require the
approval of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written Consent; 
 (e) Plans and Budgets. The approval of each Annual Business Plan and Operating Budget for the Company prepared by the Operating Member, and any modifications or amendments thereof; 
 (f) Expenditures Outside of Plans or Budgets. The making of any expenditure by the Company which is a material deviation from any
applicable Annual Business Plan and Operating Budget, other than as permitted within any parameters agreed to by the Management Committee and specified in any such plan or budget (e.g., application of line item cost savings, contingency line
amounts, budget variances, etc.) and excluding any reasonable expenditures resulting from any emergency or unforeseen events; 
 (g) Additional Capital Contributions. Calling for the Members to make any Additional Contributions to the capital of the Company pursuant to Section 3.02; 
 (h) Unrelated Businesses. The entry into by the Company of any business that is not related to the purpose of the Company set forth
in Section 1.03; provided, however, that such a decision shall require the approval of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written Consent;

 (i) Liquidation of the Company. Except to the extent dissolution of the Company is permitted or required by this
Agreement or any nonwaivable provision of applicable law, the dissolution and winding up of the Company; 
 (j) Contracts
with Affiliates. Except as otherwise expressly permitted under this Agreement, the entry by the Company into any contract with, or the making of any payment to, any Member or any Affiliate of any Member and with respect to any such contract, the
making of any amendment, modification, waiver, termination, extension or rescission thereof; the declaration of any default thereunder or the exercise of any remedy thereunder; the institution, settlement or compromise of any claim with respect
thereto; the waiver of any rights of the Company against the other party(ies) thereto; or the consent to the assignment of any rights or the delegation of any duties by the other party(ies) thereto. The Members further acknowledge and agree that,
except as otherwise expressly permitted under this Agreement or as otherwise approved by the Management Committee, the fees paid in connection with any such contracts, payments, etc., made with or to any Member or any Affiliate thereof shall in all
events be commensurate with fees negotiated at arm’s length and paid to independent third parties for providing similar services to projects similar in size, nature and location to the Project; 
  

 -6- 

 (k) Cash Flow and Reserves. Subject to the provisions of
Section 5.03, the determination of any policies or procedures for making Cash Flow distributions by the Company including, without limitation, the establishment of any reserves with respect thereto; 
 (l) Material Agreements. The execution by the Company of any material agreement in order to acquire, develop, redevelop, renovate,
operate, manage, maintain, market, lease, sell, transfer, convey, pledge or otherwise dispose of all or any portion of the Project or any other asset of the Company and any undertaking by the Company to implement the terms of any such agreement,
including the granting or withholding of approvals and consents thereunder other than (i) as is necessary to implement the applicable Annual Business Plan or Operating Budget, (ii) the sale or disposition of obsolete personal property and
equipment within the Project in the ordinary management and operation of the Property, and (iii) the marketing and leasing of apartment units within the Project in the ordinary course of business and in accordance with the Annual Business Plan;

 (m) Consultants. The employment and engagement of any agents, brokers, appraisers, architects, contractors,
subcontractors, attorneys, accountants, bookkeepers, engineers, environmental consultants, real property and mortgage brokers and analysts, underwriters, escrow agents, depositories, agents for collection, banks, builders, building managers and
operators and marketing agents, other than as permitted by the applicable Annual Business Plan or Operating Budget or to the extent that the applicable Annual Business Plan or Operating Budget provides that any such service provider may be selected
by the Operating Member; 
 (n) Legal Proceedings. The institution or defense of any legal proceedings (including
arbitration) in the name of the Company, the settlement of any such legal proceedings against the Company and the confession of any judgment against the Company, or any property thereof other than (i) those involving tenant disputes in the
ordinary course of business or (ii) matters involving sums less than Twenty-Five Thousand Dollars ($25,000); 
 (o)
Bankruptcy. Any of the following: (i) the filing of any voluntary petition in bankruptcy on behalf of the Company; (ii) the consenting to the filing of any involuntary petition and bankruptcy against the Company; (iii) the
filing on behalf of the Company of any petition seeking, or consenting to, the reorganization or relief under any applicable federal or state law relating to bankruptcy or insolvency; (iv) the consenting to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or a substantial part of their respective properties; (v) the making on behalf of the Company of any assignment for the benefit of creditors; (vi) the
admission in writing of the Company’s inability to pay its debts generally as they become due; or (vii) the taking of any action by the Company in furtherance of any such action; provided, however, that such a decision shall require
the approval 

  

 -7- 

 
of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written Consent; and provided
further, however, if Buckingham no longer has any right to appoint any representative to the Management Committee, then for so long as Bradley B. Chambers or any other Affiliate of Buckingham is the guarantor of any mortgage loan of the Company
for which such guarantor will have personal liability upon the taking of any action described in clauses (i)-(vii) immediately above, the decision to take any such action shall also require the approval of Buckingham. 
 (p) Insurance. The entry into by the Company of any and all contracts of insurance for the Company that the Management Committee
deems necessary or proper for the protection of the Company, either for the conservation of their respective assets or for any purpose convenient or beneficial to the Company; provided, however, that the Operating Member may select such insurance
vendors and enter into such contracts of insurance as long as the coverage equals or exceeds the requirements of the holder of the first mortgage line on the Project; 
 (q) Tax and Accounting Elections. Any and all tax or accounting elections permitted or required to be made by the Company;

 (r) Actions pertaining to Paladin REIT Status. The undertaking of any action that is deemed necessary, in the sole
discretion of the Tax Matters Partner, to maintain the status of Paladin REIT as a REIT under the Code; and 
 (s)
Transfers from Operating Account. The drawing of any single check on, or the making of any single transfer or expenditure of funds from, any Operating Account in excess of $25,000, or drawing of any multiple number of checks on, or the making
of any multiple number of transfers or expenditures of funds from, any Operating Account which collectively total more than $25,000 to any one Person, unless such single check or transfer, or multiple checks or transfers, are drawn or made, as the
case maybe, pursuant to the Operating Budget. 
 The provisions of this Section 2.02 shall not be construed as
exclusive or so as to bar the Management Committee from delegating responsibility for any of the Management Committee’s management decisions to any Member, officer, or other representative or agent of the Company. The Members also acknowledge
that signatory authority for any of the foregoing items may be delegated by the Management Committee to any Member, officer, or other representative or agent of the Company. Signatory Authority for any of the foregoing matters approved by the
Management Committee is initially delegated to the Operating Member. 
  

	 	2.03	Operating Member 

 (a)
Designation of Operating Member. Buckingham is hereby designated as the “Operating Member” of the Company (the “Operating Member”). Buckingham shall serve in such capacity unless and until Buckingham is removed by
the 

  

 -8- 

 
Management Committee in accordance with the provisions of Section 2.06. Following any removal of Buckingham as the Operating Member, the Person
(who may be, but need not be, a Member of the Company) selected by the Management Committee in accordance with the provisions of Section 2.06 shall serve as the replacement Operating Member or manager of the Company. 
 (b) Responsibilities of Operating Member. The Operating Member shall be responsible for implementing the decisions of the
Management Committee and for regularly reporting to the Management Committee as to the status of the business and affairs of the Company. The Operating Member also shall be responsible for (i) procuring any and all financing required in order
to for the Project as approved by the Management Committee, (ii) supervising the management, leasing and operation of the Project in accordance with a Property Management Agreement approved by the Management Committee and entered into, by and
between the Company, as owner, and either the Property Manager or such other manager as may be designated by the Management Committee, as manager, (iii) undertaking such other matters as are determined by the Management Committee,
(iv) coordinating, supervising and otherwise overseeing any sale of the Project, (v) preparing and, as and when reasonably requested by the Management Committee, updating any applicable Annual Business Plan or Operating Budget for the
Company and the Project (provided, that, for the avoidance of any doubt, the foregoing provisions are not intended to permit the Operating Member to amend, modify or deviate in any material respect from any of the foregoing documents, plans
or budgets without the prior consent of the Management Committee (except as otherwise expressly provided therein), (vi) advising the Management Committee on day-to-day matters affecting the business and affairs of the Company,
(vii) diligently conducting the day-to-day operations of the Company in accordance with the Annual Business Plan and Operating Budget, (viii) performing the duties assigned to such Member under this Agreement or by the Management
Committee, and (ix) diligently endeavoring to carry out all decisions and resolutions of the Management Committee. 
 (c)
Authority of Operating Member. The Operating Member shall at all times be subject to the direction and control of the Management Committee, and shall conform to the policies and procedures established and approved by the Management Committee
in conformity with this Agreement, and the scope of the Operating Member’s authority shall be limited solely to the matters set forth above in this Section 2.03. The Operating Member shall keep the Management Committee and the
Members informed as to all matters of concern to the Management Committee, the Company and the Members. The Operating Member shall not be authorized to bind the Company without the prior written approval of the Management Committee, except for
matters delegated to the Operating Member by the Management Committee or any agreements, contracts or other documents or instruments affecting or relating to the day-to-day business and affairs of the Company provided that any such agreement,
contract or other document is within the parameters established in the applicable Annual Business Plan or Operating Budget. 
 (d) Expenditures. The Operating Member shall have the authority to incur costs and expenditures and only the costs and expenditures set forth in an approved Operating Budget (subject to the ability to apply line item cost savings;
contingency line 

  

 -9- 

 
item amounts; budget variances, etc., if any, contained in such Operating Budget) without any further approval of the Management Committee (or the Members).

 (e) Indemnification. The Operating Member shall indemnify and hold harmless the Company and the other Member(s),
their Affiliates, subsidiaries, officers, directors, employees, partners, members, shareholders, agents and representatives to the full extent permitted by law from and against any and all losses, claims, costs, damages and expenses (including
attorneys’ fees) arising from any and all claims, actions, suits or proceedings, arising from, or in connection with, the Project or any act or failure to act of the Operating Member that results from the Operating Member’s fraud, willful
misconduct or gross negligence. 
  

	 	2.04	Annual Business Plan 

 On or
before October 31 of each Fiscal Year of the Company, commencing on October 31, 2006, the Operating Member shall submit a new annual business plan for the ensuing Fiscal Year for the review and approval of the Management Committee (the
initial and each new business plan, as approved, being the “Annual Business Plan”). Each Annual Business Plan shall include, without limitation: (i) a narrative description of the proposed objectives and goals for the Company,
which shall include for such Fiscal Year (without limitation), any proposed sale or refinancing of the Project; (ii) the status of the Project; (iii) a property management and leasing plan for the Project for such Fiscal Year; and
(iv) such other items as are reasonably requested by any representative of the Management Committee or as otherwise reasonably necessary to keep the Management Committee informed as to the business and affairs of the Company and the Project.

  

	 	2.05	Operating Budget 

 Attached
hereto as Exhibit C is the annual operating budget for the Company for the remainder of the 2006 Fiscal Year. On October 31 of each Fiscal Year of the Company commencing on October 31, 2006, the Operating Member shall submit a new
annual operating budget for the Company for the ensuing Fiscal Year for the review and approval of the Management Committee (the initial and each new annual operating budget, as approved, being the “Operating Budget”). Each
Operating Budget shall set forth on a detailed itemized basis: (i) all receipts projected for the period of such Operating Budget and all expenses, by category, for the Company (including, without limitation, all repairs and capital
expenditures projected to be incurred during such period), (ii) the anticipated operating reserves and working capital projected to be required for such period, (iii) a schedule setting forth the timing and amount of any Additional
Contributions projected to be required by the Members for such Fiscal Year (or other period); and (iv) a five (5)-year projection setting forth the estimated revenues, expenses and net operating income (or loss) expected to be incurred for
the next five (5) years for the Company which shall be updated to compare the actual results to the projected results set forth in the prior Operating Budget. The Operating Budget shall also include a detailed description of such other
information, contracts, agreements and other matters reasonably necessary to inform the Management Committee of all matters 

  

 -10- 

 
relevant to the ownership, operation, management, maintenance, leasing and sale of the Project (or any portion thereof) or as may be reasonably requested by
any representative of the Management Committee. The Operating Member shall have the authority to incur only the costs and expenditures set forth in an approved Operating Budget (subject to the ability to apply line item cost savings, contingency
line item amounts, budget variances, etc., if any, contained in such Operating Budget, as and if so permitted by the parameters of such Operating Budget), without any further approval of the Management Committee (or the Members). Except as otherwise
provided within any Operating Budget, the Operating Budget may not be materially modified without the prior approval of the Management Committee. 
  

	 	2.06	Removal of the Operating Member 

 (a) Upon Removal Event. Upon the occurrence of a Removal Event, then at any time until the Removal Event has been cured by the Operating Member, the Management Committee shall have the right to remove Buckingham as the Operating
Member of the Company by delivering written notice (“Removal Notice”) thereof at any time following the occurrence of a Removal Event in accordance with the provisions of this Section 2.06. As used herein, the term
“Removal Event” means the occurrence of any of the Buy-Sell Events set forth in Section 7.01 with respect to which the Operating Member is the Defaulting Member (regardless of whether Paladin, as the Non-Defaulting
Member, exercises any of its rights under Article 7 in connection therewith). Any removal of Buckingham as the Operating Member shall be effective upon the Effective Date of the Removal Notice relating to any Removal Event (or such later time
as may be provided in the Removal Notice). 
 (b) Effect of Removal Upon Removal Event. If Buckingham is removed as the
Operating Member of the Company pursuant to Section 2.06(a), then (i) a Cash Flow Bonus Forfeiture Event shall exist for purposes of Sections 5.01(c) and 5.02(g), (ii) Buckingham shall retain the remaining portion of its
Interest in the Company (unless Paladin purchases such Interests as a result of the exercise of the Buy-Sell provisions set forth in Article 7), (iii) neither Buckingham nor its Affiliates shall be entitled to receive any further fees to
which it would otherwise be entitled pursuant to Section 2.12; and (iv) the Management Committee may, in its sole and absolute discretion, designate any person or entity as a replacement Operating Member or as a manager who shall
fulfill the duties and obligations of the Operating Member, that may be (but need not be) a Member of the Company (including, without limitation, Paladin (or any Affiliate thereof). From and after any such removal: (1) the replacement Operating
Member (and not Buckingham or its Affiliates) shall be entitled to exercise all the rights, duties and obligations, and to receive any and all fees of the Operating Member under this Agreement, (2) Buckingham shall have no further obligations
under Section 2.03, Section 2.04 or Section 2.05, and (3) Buckingham shall no longer have any right to appoint any representative to the Management Committee and any previously appointed representatives of
Buckingham shall be replaced by one (1) or more representatives to be appointed by the Management Committee. In the event there is a dispute as to whether a Removal Event occurred, then Buckingham shall cease to be the Operating Member and
shall no longer have any right to appoint any representative to the Management 

  

 -11- 

 
Committee, and, if it shall be later determined by a court of competent jurisdiction that a Removal Event did not occur, then Buckingham shall be deemed to
have been terminated pursuant to Section 2.06(c). 
 (c) Other Removal. For any reason, the Management
Committee may elect (in its sole and absolute discretion) at any time after June 1, 2009, without cause and for any or no reason, to remove Buckingham as the Operating Member and to designate any Person as a replacement Operating Member or as a
manager who shall fulfill the duties and obligations of the Operating Member, which election may be made by written notice to Buckingham not less than fifteen (15) days prior to the effective date of such removal, provided that, the
Management Committee agrees to meet and confer with Buckingham during such fifteen (15) day period, at the request of Buckingham, in connection with such removal. In such event, Buckingham (or its Affiliates, as applicable) shall: (i) have
no further obligations under Sections 2.03, 2.04 or 2.05, and (ii) otherwise retain its Interest in the Company, including its interests in the Net Income and Net Losses or similar items of, and to receive distributions from, the Company
as provided in Articles 4 and 5 of this Agreement. If Buckingham is removed as Operating Member pursuant to this Section 2.06(c), then (A) any such replacement Operating Member shall not receive any additional fees or
“carried interest” or other profits interest in the Company unless such interest is paid from Paladin’s Interest in the Company and (B) Buckingham may elect, by written notice to Paladin within thirty (30) days after the
effective date of such removal, to require Paladin to purchase all of Buckingham’s Interest in accordance with the procedures set forth in the last two sentences of Section 7.02, and in Section 7.03(a), (b) and
(d) and Section 7.05, Section 7.06, Section 7.07, Section 7.08 and Section 7.10 as if Buckingham were a Defaulting Member as a result of one of the Buy-Sell Events referenced in
Section 7.01(e)-(g) and Buckingham were the Selling Member and Paladin the Purchasing Member under such provisions of this Agreement. If Buckingham fails to make such election by written notice to Paladin at or before the end of such
thirty (30) day period, then Buckingham shall be deemed to have waived its rights under clause (B) immediately above. 
 (d) Contracts. If Buckingham is removed as the Operating Member (whether pursuant to either Section 2.06(a) or Section 2.06(c)), then Paladin (acting alone and outside of the Management Committee), on behalf of the Company,
shall also have the right to terminate Buckingham’s right to provide the services provided for in Section 2.12 and to terminate any other agreement between the Company and Buckingham or any Affiliate of Buckingham (including,
without limitation, the Property Management Agreement described in Section 2.12), without penalty. If Buckingham is removed as the Operating Member pursuant to Section 2.06(c) and Paladin elects to terminate Buckingham’s
right to provide the services provided for in Section 2.12 or to terminate any contract between the Company and Buckingham or an Affiliate of Buckingham, then the Company shall be obligated to engage a third party other than an Affiliate
of Paladin to undertake the services previously provided by Buckingham or the Affiliate of Buckingham and which were terminated. If Buckingham is removed as the Operating Member pursuant to Section 2.06(a) as a result of the occurrence
of a Removal Event, then the Company may engage either an Affiliate of Paladin or a third party to complete the services that were being provided under the terminated contract or other arrangement. 
  

 -12- 

	 	2.07	Liability and Indemnity 

 (a)
Indemnification. Except as otherwise expressly provided in this Agreement, no Member, officer of the Company, representative on the Management Committee or other authorized representative of the Company (each, an “Indemnified
Party”) shall be liable or accountable in damages or otherwise to the Company or to the other Members for any error of judgment or any mistake of fact or law or for anything that such Indemnified Party may do or refrain from doing
hereafter, except in the case of fraud, willful misconduct or gross negligence in performing or failing to perform such Indemnified Party’s duties for the Company. To the maximum extent permitted by law, the Company hereby indemnifies, defends,
protects and agrees to hold each Indemnified Party wholly harmless from and against any and all loss, expense or damage suffered by such Indemnified Party by reason of anything which such Indemnified Party may do or refrain from doing hereafter for
and on behalf of the Company and in furtherance of its interest; provided, however, (i) no Indemnified Party shall be indemnified, defended, protected or held harmless from any loss, cost, expense or damage which such Indemnified Party
may suffer as a result of such Indemnified Party’s fraud, willful misconduct or gross negligence in performing or in failing to perform such Indemnified Party’s duties for the Company, and (ii) any such indemnity shall be recoverable
only from the assets of the Company. The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Member (or representative thereof) otherwise existing at law or in equity, are agreed by the Members to replace
such duties and liabilities of such Member (or such representative). 
 (b) No Third Party Beneficiaries. The
provisions of this Section 2.07 are for the benefit of the Indemnified Parties and shall not be deemed to create any rights for the benefit of any other Person. 
 (c) Survival. The provisions of this Section 2.07 shall survive the termination of this Agreement. 
  

	 	2.08	Limited Liability 

 Except as
otherwise required hereunder or pursuant to any non-waivable provision of the Indiana Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities
of the Company, and the Members shall not be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member of the Company. 
  

	 	2.09	Other Activities 

 Buckingham, as the Operating Member, agrees to use commercially reasonable efforts to carry out the business and affairs of the Company in accordance with the terms and conditions of this Agreement and shall devote all such time to the
Company as is necessary for the efficient operation of the business and affairs of the Company. Except as otherwise provided in Section 2.11 of this Agreement or any 

  

 -13- 

 
Operating Budget, or as otherwise approved by the Management Committee, the Operating Member shall not be paid any compensation by the Company for providing
such services to the Company. No Member shall have any obligations (fiduciary or otherwise) with respect to the Company or to the other Member insofar as making other investment opportunities available to the Company or to the other Members. Each
Member may engage in whatever activity such Member may choose without having or incurring any obligation to offer any interest in such activity to the Company or to the other Members. 
  

	 	2.10	Brokers Indemnity 

 Each
Member represents and warrants that it has not dealt with any broker or agent in connection with this Agreement or the relationship contemplated hereby, and each Member hereby agrees to indemnify, defend, protect and hold the other Member and the
Company wholly harmless from and against any and all liability, loss, cost, damage and expense (including without limitation, attorneys’ fees and costs) which the other Member or the Company may suffer or incur by reason of any claim by any
broker or agent for any compensation with respect to such indemnifying Member’s dealings in connection with this Agreement or the transactions described herein. 
  

	 	2.11	Reimbursement; Compensation 

 (a) Compensation. Except as otherwise expressly provided in this Agreement or as provided in any applicable Operating Budget, no Member or any constituent partner, member, shareholder, officer, director, employee, agent,
representative or Affiliate thereof shall receive any remuneration for services rendered to or in connection with the Company or be reimbursed for general administrative and overhead expenses. 
 (b) Reimbursement of Expenses. Notwithstanding the foregoing, each Member shall be reimbursed from the initial contributions made
by the Members pursuant to Section 3.01 for any and all costs (including legal fees) reasonably and actually incurred by such Member in connection with the transactions contemplated herein (including the formation of the Company, and the
negotiation and documentation of this Agreement) up to and including (but only up to and including) the closing date of the transactions contemplated herein. 
  

	 	2.12	Property Management  

 Buckingham Management, L.L.C., an Indiana limited liability company, which is an Affiliate of Buckingham, initially shall be the Property Manager of the Project and manage and operate the Project in accordance with a Property Management
Agreement between the Company and such Property Manager in the form approved by the Management Committee (the “Property Management Agreement”). The Property Management Agreement shall provide for (i) an initial one year term
with automatic one year renewals, (ii) termination by either the Company or the Property Manager for cause or upon a sale of the Project, and (iii) a management fee payable monthly, in arrears, to 

  

 -14- 

 
the Property Manager with respect to the Project equal to four percent (4%) of the monthly gross revenues from the Project; provided, however,
that if during any month for which such management fee is due and payable, there is insufficient Cash Flow to fund payment to Paladin of its Unpaid Preferred Return accrued and owing through the end of such month, then such portion of the management
fees payable to the Property Manager for such month up to, but not exceeding, three quarters of one percent (0.75%) of the monthly gross revenues of the Project for such month shall be forfeited by the Property Manager and paid to Paladin to the
extent (but only to the extent) of its Unpaid Preferred Return. 
 ARTICLE 3 
 MEMBERS’ CAPITAL CONTRIBUTIONS 
  

	 	3.01	Initial Contributions of the Members 

 (a) Initial Capital Contributions. Buckingham has previously contributed to the Company cash and property that the parties agree have the aggregate amount of the agreed upon net fair market value as shown on Exhibit A hereto
and shall be deemed Buckingham’s Initial Capital Contribution for purposes of this Agreement. Simultaneously with the execution of this Agreement, Paladin shall be deemed to have contributed as its Initial Capital Contribution cash in the
amount shown on Exhibit A hereto. The Initial Capital Contributions and current Capital Account balances of the Members are identified on Exhibit A hereto. 
 (b) Credit to Capital Accounts. Any and all Capital Contributions made by each Member pursuant to this Section 3.01
and Section 3.02 and Section 3.03 shall be credited to the Capital Account and Unrecovered Contribution Account of each such Member as of the date any such Capital Contribution is made. 
  

	 	3.02	Additional Contributions 

 (a) Need for Contributions. Except as otherwise required by law or pursuant to this Section 3.02 or Section 3.03, no Member shall be required or permitted to make any additional capital contributions to the
Company. 
 (b) Required Additional Contributions. From time to time, the Management Committee may require the Members
to make Additional Contributions to the capital of the Company pursuant to this Section 3.02(b) in connection with the Project to fund Project Shortfalls by delivering written notice (“Contribution Notice”) of such
Additional Contribution to the Members, which Contribution Notice shall include a contribution date (“Contribution Date”) (which date shall not be less than fifteen (15) Business Days following the Effective Date of such
notice), upon which each Member 

  

 -15- 

 
shall be obligated to contribute to the capital of the Company its pro rata share of such Additional Contribution (measured by such Member’s
Contribution Percentage). 
  

	 	3.03	Remedy For Failure to Contribute Capital 

 (a) Failure to Contribute. If any Member (the “Non-Contributing Member”) fails timely to make all or any portion of any Additional Contribution such Member is required to contribute pursuant to
Section 3.02 (the “Delinquent Contribution”) and such failure continues for five (5) days following the Effective Date of notice thereof from the other Member, such other Member (the “Contributing
Member”), in addition to any and all other remedies available to the Contributing Member under this Agreement or otherwise at law or in equity (including, without limitation, instituting a legal proceeding to collect the Delinquent
Contribution), shall have the right, but not the obligation, to proceed in accordance with the terms and conditions set forth below in this Section 3.03 and, in addition, if Buckingham is the Non-Contributing Member, a Cash Flow Bonus
Forfeiture Event shall exist for purposes of Sections 5.01(c) and 5.02(g). 
 (b) Default Loan. The Contributing
Member may advance to the Company, in cash, within thirty (30) days following the Contribution Date, an amount equal to the Delinquent Contribution, and such advance by the Contributing Member shall be treated as a non-recourse loan by the
Contributing Member to the Non-Contributing Member (a “Member Loan”), bearing interest at a rate equal to eight and one quarter percentage points (8.25%). Each Member Loan shall be due and payable upon the earlier of six
(6) months from the date such Member Loan is advanced or the dissolution of the Company. If Paladin is the Contributing Member, then both Members shall take all actions and execute all documents (including a written promissory note evidencing
the obligation of the Non-Contributing Member) necessary to ensure that the obligation meets the “straight debt safe harbor” described in Section 856(m) of the Code. 
 As of the Effective Date of any advance of a Member Loan, the Non-Contributing Member shall be deemed to have contributed an amount equal
to the principal amount of such Member Loan to the capital of the Company, and the Capital Account and Unrecovered Contribution Account of the Non-Contributing Member shall be credited with a like amount. Notwithstanding the provisions of
Articles 5 and 8, until any and all Member Loans are repaid in full, the Non-Contributing Member shall draw no further distributions from the Company, and all cash or property otherwise distributable with respect to the Non-Contributing
Member’s Interest (or fees payable to the Non-Contributing Member or any of its Affiliates including, without limitation, any fees payable under Section 2.12) shall be distributed to the Contributing Member in repayment of the
outstanding balance of the Member Loan, with such funds being applied first to reduce any and all interest accrued on such Member Loan and then to reduce the principal amount thereof. Any amounts so applied shall be treated, for all purposes under
this Agreement, as having actually been distributed to the Non-Contributing Member and applied by the Non-Contributing Member to repay the outstanding Member Loan. 
 If, upon the maturity of a Member Loan (taking into account any agreed upon extensions thereof), any principal thereof or accrued interest
thereon remains 

  

 -16- 

 
outstanding, the Contributing Member shall elect one of the following options: (i) to renew such Member Loan (or portion thereof) pursuant to the terms
and provisions of this Section 3.03(b) for an additional term of six (6) months; (ii) to contribute all or any portion of such outstanding principal of and accrued, unpaid interest on such Member Loan (or portion thereof) to
the capital of the Company and dilute the Percentage Interest of the Non-Contributing Member in accordance with the provisions of Section 3.03(c); or (iii) elect to exercise the buy-sell provisions contained in Article 7 in
accordance with the provisions of Section 3.03(d), in which event the Member Loan shall remain if effect until the closing of the buy-sell transaction contemplated under Article 7. The Contributing Member may elect any of the
options set forth in the immediately preceding sentence by giving written notice of such election to the Non-Contributing Member within thirty (30) days prior to such maturity date of the Member Loan. Failure of the Contributing Member to
timely give such written notice to the Non-Contributing Member shall be deemed to constitute an election to renew such Member Loan for an additional term of six (6) months on the terms set forth herein. 
 (c) Dilution. The Contributing Member may contribute to the capital of the Company, in cash, within thirty (30) days following
the Contribution Date, an amount equal to the Delinquent Contribution, and the Capital Account and Unrecovered Contribution Account of the Contributing Member shall be credited with the amount so contributed. In the alternative, if the Contributing
Member elected to make a Member Loan, then upon the maturity of a Member Loan that is not fully repaid on or before the maturity date thereof, the Contributing Member also may contribute to the capital of the Company, in accordance with the
provisions of Section 3.03(b) above, all or any portion of the outstanding principal of and accrued, unpaid interest on such Member Loan (or portion thereof) and (i) the amount of such outstanding principal and interest so
contributed shall be deemed repaid and satisfied, (ii) the amount of such outstanding principal and interest shall be deemed to have been distributed to the Non-Contributing Member, and debited from the Capital Account and Unrecovered
Contribution Account of the Non-Contributing Member, and (iii) the Capital Account and Unrecovered Contribution Account of the Contributing Member shall be increased by the amount of such outstanding principal and interest so contributed.

 Upon the contribution of any Delinquent Contribution (or the contribution of the principal and interest of any Member Loan
by the Contributing Member pursuant to this Section 3.03(c)), the Percentage Interest and the Contribution Percentage of the Non-Contributing Member shall be decreased by the Dilution Percentage. The “Dilution
Percentage” shall equal the amount expressed in percentage points (rounded to the nearest one-hundredth of a percentage point) calculated based upon the following formula: 
  

			
	 Dilution Percentage = 200%    x
  
	  	Delinquent Contribution (or the outstanding balance of any Member Loan (including interest) contributed by the Contributing Member)
	  	Aggregate amount of the balances standing in all of the Members’ respective Unrecovered Contribution Accounts (including the Additional Contribution contributed by the Contributing
Member(s) and the Delinquent Contribution or the outstanding balance of any Member Loan (including interest) contributed by the Contributing Member)

  

 -17- 

 The Percentage Interest and the Contribution Percentage, of the Contributing Member shall
be increased by the amount of the reduction in the Percentage Interest of the Non-Contributing Member. 
 The application of
the provisions of this Section 3.03(c) is illustrated by the following example: Assume that (i) the Unrecovered Contribution Amount of the Members was equal to $8,000,000, (ii) an Additional Contribution of $500,000 was
required to be contributed by the Members to the capital of the Company, (iii) the Non-Contributing Member whose Percentage Interest is 30% failed to contribute its share of such contribution of $150,000 (i.e., 15% x $500,000), and
(iv) pursuant to this Section 3.03(c), the Contributing Member whose Percentage Interest is 70% made the Delinquent Contribution of $150,000 to the capital of the Company on behalf of such Non-Contributing Member pursuant to this
Section 3.03(c). 
 The Dilution Percentage applicable to the Non-Contributing Member would be equal to 3.53
percentage points as calculated in accordance with the following formula: 
  

				
		  	$	 150,000
	 3.53% = 200%    x
	  	$	8,500,000

 The Percentage Interest and the Contribution Percentage of the Non-Contributing Member therefore would be reduced
by 3.53 percentage points from 30% to 26.47%, and the Percentage Interest and the Contribution Percentage of the Contributing Member would be increased by a like amount of percentage points from 70% to 73.53%. 
 (d) Implementation of Buy-Sell. In addition to the options set forth in Sections 3.03(b) and 3.03(c) above, the Contributing
Member may elect to implement the buy-sell provisions contained in Article 7 for a Default Buy-Sell Event by delivery of written notice of such election to the Non-Contributing Member in accordance with the provisions thereof (and in which
case the Non-Contributing Member shall be deemed to be the Defaulting Member and the Contributing Member shall be deemed to be the Non-Defaulting Member for purposes of Article 7); provided, however, that if the Contributing Member so
elects to implement the buy-sell provisions contained in Article 7 and the Contributing Member also exercises its rights under Section 3.03(c), then in computing the Dilution Percentage in Section 3.03(c) in connection with
the contribution of the Delinquent Contribution or any portion of the outstanding principal of and/or accrued, unpaid interest on any Member Loan that is the subject of the Default Buy-Sell Event, the 200% number used in the dilution formula in
Section 3.03(c) above shall be 100%. 
 (e) Application of Provisions. Any and all adjustments to the
Non-Contributing Member’s Percentage Interest shall be rounded to the nearest .01% and 

  

 -18- 

 
(except as provided otherwise in the first paragraph of Section 3.03(b)) the Contributing Member shall not succeed to all or any portion of the
Capital Account or Unrecovered Contribution Account of the Non-Contributing Member as the result of any such adjustment. In addition, notwithstanding any provision contained in this Article 3, the Non-Contributing Member’s Percentage
Interests shall in no event be reduced below .01% by operation of Section 3.03(d). As a result of any contribution to the capital of the Company pursuant to this Section 3.03, the Contributing Member shall have the right, but
not the obligation, to cause the Capital Accounts of the Members to be booked-up or booked-down in accordance with the provisions of Treasury Regulation Section l.704-l(b)(2)(iv)(f) to reflect the fair market value of the Company’s assets (as
reasonably determined by the Contributing Member) at the time of such contribution. 
  

	 	3.04	Debt Financing 

 The Members
acknowledge that the Management Committee may cause the Company to obtain debt financing from one or more third-party lenders in order to fund all or any portion of any actual or projected financial requirements of the Company or in connection with
other costs that may be incurred by the Company. Any such financing shall be obtained on the best available market rates and terms, all as determined in the sole and absolute discretion of the Management Committee. In connection with obtaining any
financing, it is expected that Buckingham and its Affiliates shall provide such repayment and “carve-out” guarantees that are customarily requested, and on such terms and conditions as are customarily requested, by lenders with respect to
similar projects of similar size, type and location. Paladin shall not be required to personally guarantee any financing obtained by the Company. 
  

	 	3.05	Loans from Members 

 The
Management Committee may elect, in its discretion, to cause the Members to fund Project Shortfalls and other financial requirements of the Company as loans to the Company in lieu of making Additional Contributions to the Company, on such terms and
conditions as it shall determine from time to time. 
  

	 	3.06	Capital Contributions in General 

 Except as otherwise expressly provided in this Agreement, (i) no part of the contributions of any Member to the capital of the Company may be withdrawn by such Member, (ii) no Member shall be entitled to receive interest on such
Member’s contributions to the capital of the Company, (iii) no Member shall have the right to demand or receive property other than cash in return for such Member’s contributions to the Company, and (iv) no Member shall be
required or be entitled to contribute additional capital to the Company other than as permitted or required by this Article 3. 
  

 -19- 

 ARTICLE 4 
 ALLOCATION OF PROFITS AND LOSSES 
  

	 	4.01	Allocation of Net Profits and Net Losses 

 After application of Sections 4.02 and 4.03, Net Profits and Net Losses for each Fiscal Year shall be allocated among the Members so as to reduce, proportionately, in the case of any Net Profits, the difference
between their respective Target Capital Accounts and Partially Adjusted Capital Accounts for such Fiscal Year and, in the case of Net Losses, the difference between their respective Partially Adjusted Capital Accounts and Target Capital Accounts for
such Fiscal Year. No portion of Net Profits or Net Losses for any Fiscal Year shall be allocated to a Member, in the case of Net Profits, whose Partially Adjusted Capital Account is greater than its Target Capital Accounts or, in the case of Net
Losses, whose Target Capital Account is greater than or equal to its Partially Adjusted Capital Account for such Fiscal Year. 
  

	 	4.02	Regulatory Allocations 

 Prior to making any allocations pursuant to Section 4.01 hereof, the following special allocations shall be made each Fiscal Year, to the extent required, in the following order: 
 (a) Minimum Gain Chargebacks. Items of Company income and gain shall be allocated for any Fiscal Year to the extent, and in an
amount sufficient to satisfy the “minimum gain chargeback” requirements of Treasury Regulation Sections 1.704-2(f) and (i)(4). 
 (b) Qualified Income Offset. Items of Company income and gain shall be allocated any Fiscal Year to the extent, and in an amount sufficient to satisfy the “qualified income offset” requirements of
Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(3). 
 (c) Member Nonrecourse Deductions. Member Nonrecourse
Deductions shall be allocated to the Member who bears the economic risk of loss associated with such deductions, in accordance with Treasury Regulations Section 1.704-2(i). 
 (d) Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Year shall be allocated among the Members in accordance with
their Contribution Percentages. 
 (e) Section 754 Adjustments. To the extent an adjustment to the adjusted tax
basis of any Company asset pursuant to Sections 734(b) or 743(b) of the Code is required, pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m) to be taken into account in determining Capital Accounts, the amount of such adjustment to
the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Members in accordance with the
requirements of Treasury Regulation Section 1.704-1(b)(2)(iv)(m). 
  

 -20- 

	 	4.03	Other Special Allocations 

 (a) If the Company has Net Profits for any Fiscal Year (determined prior to giving effect to this Section 4.03) and the balance of any Member’s Partially Adjusted Capital Account is greater than the balance of its Target Capital
Account, then the Member with such excess balance shall be specially allocated items of Company deduction or loss (to the extent available) equal to the difference between its Partially Adjusted Capital Account and its Target Capital Account;

 (b) If the Company has Net Losses for any Fiscal Year (determined prior to giving effect to this Section 4.03) and the
balance of any Member’s Partially Adjusted Capital Account is less than the balance of its Target Capital Account, then the Member with such deficit balance shall be specially allocated items of Company income or gain for such Fiscal Year (to
the extent available) equal to the difference between its Partially Adjusted Capital Account and its Target Capital Account; and 
 (c) If the Company has neither Net Profits nor Net Losses for any Fiscal Year (determined prior to giving effect to this Section 4.03) and, notwithstanding the application of Section 4.01, the balance of any Member’s
Partially Adjusted Capital Account differs from the balance of its Target Capital Account, then the Member with an excess or deficit balance, as the case may be, shall be specially allocated items of Company deduction or loss or income or gain, as
the case may be, for such Fiscal Year (to the extent available) to eliminate the difference between its Partially Adjusted Capital Account and its Target Capital Account; provided, however, that no Member shall be allocated any Net Losses or items
in the nature of deduction or loss pursuant to Section 4.01 or this Section 4.03 to the extent that such allocation would cause or increase an Adjusted Capital Account Deficit with respect to such Member. Allocations of Net Losses that
would be made to a Member but for the proviso in the first sentence of this Section 4.03(c) shall be made to the other Member to the extent not inconsistent with such proviso. To the extent allocations of Net Losses cannot be made to either
Member because of such proviso, such allocations shall be made to the Members in accordance with their respective Percentage Interests, notwithstanding such proviso. 
  

	 	4.04	Other Allocation Rules 

 (a)
Tax/Book Differences. In the event that any Company property has a book value which differs from the adjusted tax basis of such property, then allocations with respect to such property for income tax purposes shall be made in a manner which
takes into consideration differences between such book value and such adjusted tax basis in accordance with Section 704(c) of the Code, the Treasury Regulations promulgated thereunder and Treasury Regulation
Section 1.704-1(b)(2)(iv)(f)(4). Such allocations for income tax purposes shall be made using the traditional method or such other method as may be agreed to by the Members. Such tax allocations shall neither affect, nor in any way be taken
into account in computing, any Member’s Capital Account or share of Net Profits, Net Losses, other items, or distributions pursuant to any provision of this Agreement. 
  

 -21- 

 (b) Variations in Interests During any Fiscal Year. For purposes of determining
the Net Profits, Net Losses, or any other items allocable to any period, Net Profits, Net Losses, and any such other items shall be determined on a daily, monthly, interim closing of the books or other basis, as determined by the Management
Committee using any permissible method under Section 706 of the Code and the regulations promulgated thereunder. 
 (c)
Allocations of Items. Any allocation to a Member of Net Profit or Net Loss shall be treated as an allocation to such Member of the same share of each item of income, gain, loss or deduction that is taken into account in computing Net Profit
or Net Loss. Unless otherwise specified herein to the contrary, any allocation to a Member of items of Company income, gain, loss, deduction or credit (or item thereof) shall be treated as an allocation of a pro rata portion of each item of Company
income, gain, loss, deduction or credit (or item thereof). 
 ARTICLE 5 
 DISTRIBUTIONS 
  

	 	5.01	Distribution of Ordinary Cash Flow 

 Subject to the provisions of Sections 5.03, 7.04 and 8.02, Ordinary Cash Flow realized by the Company shall be distributed to the Members as soon as practicable following the Company’s receipt thereof in the following order of
priority: 
 (a) First, to Paladin until Paladin’s Unpaid Preferred Return has been reduced to zero; 
 (b) Second, to Buckingham until Buckingham’s Unpaid Preferred Return has been reduced to zero; and 
 (c) Thereafter, fifty percent (50%) to Paladin and fifty percent (50%) to Buckingham, or if a Cash Flow Bonus Forfeiture Event
exists, to the Members pro rata in accordance with their respective Percentage Interests. 
  

	 	5.02	Distribution of Extraordinary Cash Flow 

 Subject to the provisions of Sections 5.03, 7.04 and 8.02, Extraordinary Cash Flow realized by the Company shall be distributed to the Members as soon as practicable following the Company’s receipt thereof
in the following order of priority: 
 (a) First, to Paladin until Paladin’s Unpaid Preferred Return is reduced to zero;

 (b) Second, to Paladin until Paladin’s Unrecovered Contribution Account is reduced to zero; 
 (c) Third, to Buckingham until Buckingham’s Unpaid Preferred Return is reduced to zero; 
  

 -22- 

 (d) Fourth, to Buckingham until Buckingham’s Unrecovered Contribution Account is
reduced to zero; 
 (e) Fifth, to Paladin until Paladin has received distributions under Section 5.01 and this
Section 5.02 in an amount equal to Paladin’s Threshold Return; 
 (f) Sixth, to Buckingham until Buckingham
has received distributions under Section 5.01, this Section 5.02 and Section 6.05 in an amount equal to Buckingham’s Threshold Return; and 
 (g) Thereafter, fifty percent (50%) to Paladin and fifty percent (50%) to Buckingham, or if a Cash Flow Bonus Forfeiture Event
exists, to the Members pro rata in accordance with their respective Percentage Interests. 
  

	 	5.03	Limitations on Distributions 

 Notwithstanding any other provision contained in this Agreement, the Company shall not make a distribution of Cash Flow (or other proceeds) to any Member if such distribution would violate any applicable provision of the Indiana Act or
other applicable law. 
  

	 	5.04	In-Kind Distribution 

 Assets
of the Company (other than cash) shall not be distributed in kind to the Members without the prior written approval of the Members. 
  

	 	5.05	Right to Withhold 

 The
Management Committee, on behalf of the Company, shall withhold from any distribution such amounts as are required to be withheld by the laws of any taxing jurisdiction (as determined in the sole and absolute discretion of the Management Committee).
In addition, the Management Committee, on behalf of the Company shall withhold from any distribution to any Member any amounts for which such Member (or any Affiliate thereof) may be liable or responsible to the Company, and shall apply such
withheld amount to such liability or responsibility. All amounts so withheld shall be treated as amounts distributed to the respective Member(s) on whose account the withholding was imposed. 
 ARTICLE 6 
 RESTRICTIONS ON TRANSFERS OF COMPANY INTERESTS

  

	 	6.01	Limitations on Transfer 

 Except as permitted pursuant to Section 6.02 below, no Member or assignee of a Member shall be entitled to sell, exchange, assign, transfer, convey or otherwise dispose of, pledge, hypothecate, encumber or otherwise grant a
security interest in, directly or indirectly, for value or no value, whether voluntary or involuntary 

  

 -23- 

 
(including by operation of law or other legal or equitable proceedings) (collectively, “Transfer”), all or any part of such Member’s or
assignee’s Interest, including, without limitation, Transfers of any economic interest, without the prior written consent of the other Members, which consent may be granted or withheld in each such other Member’s sole discretion. Any
attempted Transfer, or withdrawal by a Member in violation of the restrictions set forth in this Article 6 shall, unless this provision is waived by the other Members (each acting in its sole and absolute discretion), be null and void ab
initio and of no force or effect and, in addition to the other rights and remedies at law and in equity, any of the other Members shall be entitled to injunctive relief enjoining the prohibited action. The Members expressly agree that damages at law
would be an inadequate remedy for a breach or threatened breach of the Transfer restrictions set forth in this Agreement. 
  

	 	6.02	Permitted Transfers 

 Notwithstanding the foregoing, any Member may Transfer all or any portion of such Member’s Interest to any of the following (collectively, “Permitted Transferees”) without complying with the provisions of
Section 6.01: 
 (a) In the case of Transfers by Paladin, (i) any Transfer of any direct or indirect Interest
in Paladin to any Affiliate of Paladin and (ii) any Transfer of a direct or indirect interest in Paladin Realty Income Properties, L.P. or the Paladin REIT to any Person; and 
 (b) In the case of Transfers by Buckingham, any Transfer of an interest in Buckingham to any Immediate Family Member of Bradley B.
Chambers or a trust(s) therefor provided that Bradley B. Chambers continues to manage or control Buckingham. 
 Upon receipt
by the Management Committee of notice of such Transfer (along with a copy of the instrument(s) of transfer), any such Permitted Transferees shall receive and hold such Interest or portion thereof, subject to the terms of this Agreement (including
Article 6) and to the obligations hereunder of the transferor, and there shall be no further Transfer of such Interest (or economic interest) or portion thereof except to a Person to whom such Permitted Transferee could have transferred such
Interest (or economic interest) or portion thereof in accordance with this Section 6.02 had such Permitted Transferee originally been a Member or otherwise in accordance with the terms of this Agreement. Notwithstanding any other
provision contained herein, any Transfer described in this Section 6.02 shall be null and void ab initio and of no force or effect if such Transfer would otherwise violate the provisions of Section 6.04. 
  

	 	6.03	Admission of Substitute Members 

 If any Member Transfers such Member’s Interest to a transferee in accordance with Sections 6.01 or 6.02, then such transferee shall only be entitled to be admitted into the Company as a substitute Member if (i) the books
and records of the Company are amended to reflect such admission; (ii) the Management Committee 

  

 -24- 

 
approves the admission of such transferee and the form and content of the instrument of transfer; (iii) the transferor and transferee named therein
execute and acknowledge such other instruments as the Management Committee may deem reasonably necessary to effectuate such admission; (iv) the transferee in writing accepts and adopts all of the terms and conditions of this Agreement, as the
same may have been amended; and (v) the transferor pays, as the Management Committee may reasonably determine, all reasonable expenses incurred in connection with such admission, including, without limitation, legal fees and costs. To the
fullest extent permitted by law, any transferee of an Interest who does not become a substituted Member shall have no right to require any information or account of the Company’s transactions, to inspect the Company books, or to vote on any of
the matters as to which a Member would be entitled to vote under this Agreement. Any such transferee shall only be entitled to share, as an assignee, in such Net Profits and Net Losses, to receive such distributions, and to receive such allocations
of income, gain, loss, deduction or credit or similar items to which the transferor was entitled, to the extent assigned. A Member that Transfers its Interest shall not cease to be a member of the Company until the admission of the transferee as a
substituted member of the Company and, except as provided in the preceding sentence, shall continue to be entitled to exercise, and shall continue to be subject to, all of the rights, duties and obligations of such Member under this Agreement.

  

	 	6.04	Additional Restrictions on Transfer 

 Notwithstanding any other provision contained herein, unless the Management Committee waives any applicable restriction set forth in this Section 6.04, any Transfer described in this Article 6 shall be null and void ab
initio and of no force or effect if: (i) such Transfer requires the registration of such Interest pursuant to, or otherwise directly or indirectly violates, any applicable federal or state securities laws; (ii) such transfer causes or will
cause the Company to become a “Publicly Traded Partnership” as such term is defined in Section 7704(b) of the Code; (iii) such Transfer results in a violation of applicable laws; (iv) such Transfer would, in the opinion of
the Company’s counsel, cause the Company to cease to be classified as a partnership for state and federal income tax purposes; (v) such Transfer is made to any Person lacking the legal power or capacity to own any Interest; or
(vi) such Transfer causes an acceleration of any loan or debt instrument to which the Company is a party. 
  

	 	6.05	Buckingham Put Right 

 (a) Grant of Put
Right. Paladin grants to Buckingham the right to require Paladin to purchase all or any portion of the Buckingham Put Interest (the “Put Right”) upon and subject to the following terms and conditions: 
 (1) The Put Right may be exercised at any time and from time to time after the first anniversary of the date of this Agreement by written
notice from Buckingham to Paladin specifying the portion of the Buckingham Put Interest (but which shall include no fractional percentage interests) that Buckingham requires Paladin to purchase (the “Designated Put Interest”),
provided that at the time of the exercise of the Put Right the following conditions shall have been 

  

 -25- 

 
satisfied: (i) no Cash Flow Bonus Forfeiture Event shall then exist; (ii) there shall then exist no Unpaid Preferred Return to Paladin or
Buckingham shall agree that any Unpaid Return may be offset against the purchase price; and (iii) during the twelve (12) calendar months preceding the month in which the Put Right is exercised, there shall have been, as verified by
Paladin, Ordinary Cash Flow sufficient to have made distributions pursuant to Section 5.01(a) and Section 5.01(b) of all Paladin’s Preferred Return and all of Buckingham’s Preferred Return that has accrued with
respect to the Designated Put Interest during such twelve (12) month period. 
 (2) The purchase price for the Designated
Put Interest shall be the Sixty-Seven Thousand Five Hundred and No/100 Dollars ($67,500.00) multiplied by each one percent (1%) Percentage Interest (but which shall not include any fractional percentage interests) in the Company included in the
Designated Put Interest. 
 (b) Closing. Each closing of the purchase of any Designated Put Interest shall occur on a date designated
by Paladin on or before the date that is forty-five (45) days after the Effective Date of Buckingham’s exercise of the Put Right with respect to the applicable Designated Put Interest. At the closing of each such Designated Put Interest,
Buckingham shall execute such instruments of conveyance and make such representations and warranties as Paladin shall reasonably request to deliver good title to the Designated Put Interest, free and clear of all liens, pledges, encumbrances,
security interests or restrictions of any kind whatsoever (other than restrictions on transfer arising under federal and state securities laws). Additionally, the parties agree to execute and deliver to each other any and all additional documents
necessary or appropriate to consummate the closing of the purchase of the Designated Put Interest pursuant to the terms and conditions of this Section 6.05. Each party shall bear its own expenses in connection with the closing of any
Designated Put Interest contemplated in this Section 6.05. Upon the closing of any Designated Put Interest under this Section 6.05, (i) the Percentage Interest and the Contribution Percentage of Buckingham shall be
reduced, and the Percentage Interest and the Contribution Percentage of Paladin shall be increased, by the Percentage Interest in the Company included in the Designated Put Interest so purchased by Paladin and (ii) the amount of the purchase
price paid for the Designated Put Interest shall be deemed to have been distributed to Buckingham and debited from the Capital Account and Unrecovered Contribution Account of Buckingham, and (iii) the amount of the purchase price paid for the
Designated Put Interest shall be deemed to have been contributed by Paladin to the capital of the Company and credited the Capital Account and Unrecovered Contribution Account of Paladin. If Paladin fails to close the purchase of any Designated Put
Interest pursuant to the provisions of this Section 6.05 on or before the closing date provided for above for any reason other than the default of Buckingham, then, in addition to any other remedy available in law or equity, Buckingham
shall be entitled to implement the provisions of Section 3.03(c) and the amount of the purchase price that was payable for such Designated Put Interest shall be deemed to be a “Delinquent Contribution” due from Paladin under
Section 3.03(c) for such purposes. 
  

 -26- 

	 	6.06	Buckingham Pre-Emptive Put Right 

 (a) Institution of Procedures. Within ten (10) Business Days following the date of any Paladin Sale Notice, Paladin shall deliver to Buckingham an offer to sell all of Paladin’s Interest in the Company (the “Paladin
Sale Offer”). The offer to sell Paladin’s Interest set forth in the Paladin Sale Offer shall specify the purchase price (which shall be based on the purchase price that a Majority of Representatives proposes to sell the assets of the
Company pursuant to the action approved by them pursuant to Section 2.02(b) (the “Paladin Valuation”)) and a determination of the amount of cash which would be distributable to each Member pursuant to
Section 5.02 if (i) the Company (including all of its assets) were sold for the Paladin Valuation as of the Effective Date of the Paladin Sale Notice; (ii) the remaining liabilities of the Company were liquidated pursuant to
Section 8.02(a); (iii) reserves in an amount reasonably determined by Paladin were established for any contingent, conditional or unmatured liabilities or obligations of the Company pursuant to Section 8.02(b); and
(iv) the Company distributed any remaining amounts to the Members in accordance with the provisions of Section 5.02. 
 (b) Election by Buckingham. Buckingham shall have fifteen (15) Business Days after the Effective Date of the Paladin Sale Offer to elect, by written notice to Paladin, to purchase Paladin’s Interest
at the price specified in the Paladin Sale Offer. Failure of Buckingham to make such election with such fifteen (15) Business Day period shall be deemed to be an election not to purchase Paladin’s Interest. Paladin agrees that for a period
of fifteen (15) Business Days from the Effective Date of the Paladin Sale Offer, Paladin shall refrain from causing the Management Committee, on behalf of the Company, to implement any decision described in Section 2.02(b) that
resulted in the institution of the procedures pursuant to this Section 6.06, and in the event that Buckingham, within such fifteen (15) Business Day period, elects to purchase Paladin’s Interest in the Company, then Paladin
shall thereafter refrain from causing the Management Committee, on behalf of the Company, to implement any such decision unless Buckingham fails to close the purchase of Paladin’s Interest pursuant to the provisions of this
Section 6.06 on or before the closing date provided for below for any reason, other than the default of Paladin. Otherwise, the Management Committee, on behalf of the Company shall be entitled to implement any such decision, unless
within the fifteen (15) Business Day period described above, Buckingham elects to purchase Paladin’s Interest in the Company pursuant to this Section 6.06. 
 (c) Closing. If Buckingham so elects to purchase Paladin’s Interest in the Company, the closing shall occur on or before the
date that is ninety (90) days after the Effective Date of Buckingham’s election. Buckingham shall pay, in cash, to Paladin on the closing date the amount offered sale price set forth in the Paladin Sale Offer. At the closing of such
transfer of Paladin’s Interest, Paladin shall execute such instruments of conveyance and make such representations and warranties as Buckingham shall reasonably request to deliver good title to all of Paladin’s Interest, free and clear of
all liens, pledges, encumbrances, security interests or restrictions of any kind whatsoever (other than restrictions on transfer arising under federal and state securities laws). 
  

 -27- 

 (d) Failure to Close. If Buckingham fails to close the purchase of Paladin’s
Interest pursuant to the provisions of this Section 6.06 on or before the closing date provided for above for any reason, other than the default of Paladin, then Paladin shall be entitled to implement any decision described in
Section 2.02(b) that resulted in the institution of the procedures pursuant to this Section 6.06 or shall otherwise be entitled to cause any sale of substantially all of the assets of the Company (including the Project) as
may approved by a Majority of Representatives without any further duty or obligation to implement the provisions of this Section 6.06. 
  

	 	6.07	Election; Allocations Between Transferor and Transferee 

 Upon the Transfer of the Interest of any Member or the distribution of any property of the Company to a Member, the Company may file, with the approval of the Management Committee, in its sole and absolute discretion,
an election in accordance with applicable Treasury Regulations, to cause the basis of the Company property to be adjusted for federal income tax purposes as provided by Sections 734 and 743 of the Code. 
  

	 	6.08	Partition 

 No Member shall
have the right to partition any assets of the Company or any interest therein, nor shall a Member make an application or proceeding for a partition thereto and, upon any breach of the provisions of this Section 6.08 by any Member, the
other Member (in addition to all rights and remedies afforded by law or equity) shall be entitled to a decree or order restraining or enjoining such application, action or proceeding. Upon the Transfer of all or any part of the Interest of a Member
as hereinabove provided, Net Profits and Net Losses shall be allocated between the transferor and transferee on the basis of the computation method which with the approval of the Management Committee, in its sole and absolute discretion, is in the
best interests of the Company, provided such method is in conformity with the methods prescribed by Section 706 of the Code and Treasury Regulation Section 1.706-1(c)(2)(ii). 
  

	 	6.09	Waiver of Withdrawal 

 No
Member may voluntarily withdraw, resign or retire from the Company without the prior written consent of the Members, which consent may be granted or withheld in each such Member’s sole and absolute discretion. Each Member hereby waives any and
all rights such Member may have to withdraw or resign from the Company pursuant to the Indiana Act or otherwise and hereby waives any and all rights such Member may have to receive the fair value of such Member’s Interest in the Company upon
such withdrawal, resignation or retirement pursuant to the Indiana Act. No admission or withdrawal of a Member, whether in accordance with this Agreement or otherwise, shall cause the dissolution of the Company except as otherwise provided in
Section 8.01. Any purported admission, withdrawal or removal which is not in accordance with this Agreement shall be null and void and, in addition to other rights and remedies at law and in equity, the other Member(s) shall be entitled
to injunctive relief 

  

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enjoining the prohibited action. The Members expressly acknowledge that damages at law would be an inadequate remedy for a breach or threatened breach of the
foregoing restrictions. 
 ARTICLE 7 
 DEFAULT BUY-SELL AGREEMENT 
  

	 	7.01	Default Buy-Sell Events 

 For
purposes of this Article 7, the following shall constitute “Default Buy-Sell Events”: 
 (a)
Prohibited Withdrawal or Retirement. The withdrawal, retirement, or other cessation to serve as a Member of the Company by any Member in violation of the terms of this Agreement; 
 (b) Default by the Operating Member. The fraud, willful misconduct, gross negligence or Material Breach (which shall include the
notice and cure provisions to the extent provided in the definition of Material Breach) by the Operating Member (or its representatives) in performing or failing to perform the Operating Member’s duties and obligations under this Agreement;

 (c) Prohibited Transfer or Encumbrance. Any Transfer or encumbrance or attempted Transfer or encumbrance by any
Member of such Member’s Interest contrary to the provisions of Article 6; 
 (d) Breach of Agreement.
Any Material Breach (which shall include the notice and cure provisions to the extent provided in the definition of Material Breach) by any Member (except for the failure of any Member to make an Additional Contribution required hereunder);

 (e) Bankruptcy or Insolvency. The rendering, by a court with appropriate jurisdiction, of a decree or order
(i) adjudging a Member bankrupt or insolvent; or (ii) approving as properly filed a petition seeking reorganization, readjustment, arrangement, composition, or similar relief for a Member under the federal bankruptcy laws or any other
similar applicable law or practice, and if such decree or order referred to in this Section 7.01(e) shall have continued undischarged and unstayed for a period of sixty (60) days; 
 (f) Appointment of Receiver. The rendering, by a court with appropriate jurisdiction, of a decree or order (i) for the
appointment of a receiver, a liquidator, or a trustee or assignee in bankruptcy or insolvency of a Member, or for the winding up and liquidation of a Member’s affairs, provided that such decree or order shall have remained in force undischarged
and unstayed for a period of sixty (60) days, or (ii) for the sequestration or attachment of any 

  

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property of a Member without its return to the possession of such Member or its release from such sequestration or attachment within sixty (60) days
thereafter; and 
 (g) Bankruptcy Proceedings. A Member (i) institutes proceedings to be adjudicated a voluntary
bankrupt or an insolvent, (ii) consents to the filing of a bankruptcy proceeding against such Member, (iii) is unable to or admits in writing such Member’s inability to pay such Member’s debts generally as they become due, or
(iv) files a petition or answer or consent seeking reorganization, readjustment, arrangement, composition, or similar relief for such Member under the federal bankruptcy laws or any other similar applicable law or practice, (iv) consents
to the filing of any such petition, or to the appointment of a receiver, a liquidator, or a trustee or assignee in bankruptcy or insolvency for such Member or a substantial part of such Member’s property, (v) makes an assignment for the
benefit of such Member’s creditors, or (vi) takes any action in furtherance of any of the aforesaid purposes. 
 For
the purposes of implementing the provisions contained in this Article 7 and otherwise for purposes of this Agreement, (A) each of the events set forth in Sections 7.01(a)-(g) shall constitute a “Default Buy-Sell
Event”; (B) the “Defaulting Member” shall be (i) in the case of the occurrence of the event referenced in Section 7.01(a), the Member that has withdrawn, retired or ceased to serve as a Member of the
Company in violation of the terms of this Agreement; (ii) in the case of the occurrence of the event referenced in Section 7.01(b), the Operating Member); (iii) in the case of the occurrence of the event referenced in
Section 7.01(c), the Member that purports to undertake a Transfer of such Member’s rights or interests contrary to the provisions of Article 6; (iv) in the case of the occurrence of the event referenced in
Section 7.01(d), the Member that has breached any material covenant, duty or obligation under this Agreement; and (v) in the case of any of the events referenced in Section 7.01(e), (f), or (g), the Member who is the
subject of such court decree or order or has instituted such proceedings or filed such petitions or who is insolvent, etc; and (C) the “Non-Defaulting Member” is the Member that is not the Defaulting Member. 
  

	 	7.02	Rights Arising From a Default Buy-Sell Event  

 At any time following the occurrence and during the continuation of a Default Buy-Sell Event, the Non-Defaulting Member shall have the right either to (i) cause the sale of the Company or its assets to any
unaffiliated third party for a purchase price based upon the sole and absolute judgment of the Non-Defaulting Member (“Third-Party Purchase Price,” as further set forth in Section 7.03(c)), and such other terms and
conditions as are determined in the sole discretion of the Non-Defaulting Member or (ii) purchase the Interest of the Defaulting Member in accordance with the terms and conditions set forth in this Article 7, in either case, by
delivering written notice (“Default Notice”) thereof to the Defaulting Member, or (iii) exercise any other rights or remedies available to the Non-Defaulting Member under this Agreement or at law or in equity as a result of
such Default Buy-Sell Event; provided, however, that the failure of the Non-Defaulting Member to exercise any of the foregoing rights shall not be deemed 

  

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to constitute a waiver of any Default Buy-Sell Event or any rights and remedies (and the provisions of Section 7.09 shall apply to the Defaulting
Member). For a period of fifteen (15) days following the Effective Date of any Default Notice, the Members shall attempt to agree upon a purchase price for the Defaulting Member’s Interest (the “Buyout Purchase Price”) in
the event the Non-Defaulting Member desires to purchase the Interest of the Defaulting Member. If the Members are unable to agree on a Buyout Purchase Price, then the Default Purchase Price shall be determined in accordance with the provisions of
Section 7.03(a) based on the Appraised Value as determined pursuant to Section 7.03(b). 
  

	 	7.03	Determination of Purchase Price 

 (a) Member Buyout. Within thirty (30) days after the determination of the Buyout Purchase Price or, in the absence thereof, the determination of the Appraised Value of the Company pursuant to Section 7.03(b), the
accountants regularly employed by the Company shall determine the amount of cash which would be distributed to each Member pursuant to Section 5.02 if (i) the Company (including all of its assets) were sold (as applicable) for the
Buyout Purchase Price or Appraised Value thereof (as applicable) as of the Effective Date of the Default Notice (after deducting therefrom an amount equal to reasonable and customary closing costs that would be payable in connection with any such
sale); (ii) the remaining liabilities of the Company were liquidated pursuant to Section 8.02(a); (iii) reasonable reserves were established for any contingent, conditional or unmatured liabilities or obligations of the Company
pursuant to Section 8.02(b); (iv) if (and only if) the Defaulting Member is Buckingham, a Cash Flow Bonus Forfeiture Event existed for purposes of Sections 5.01(c) and 5.02(g); and (v) the Company distributed any
remaining amounts to the Members in accordance with the provisions of Section 5.02. Upon such determination, the accountants regularly employed by the Company shall give each Member a notice thereof (the “Price Determination
Notice”). The determination by the accountants of such amounts, including all components thereof, shall be deemed conclusive absent any material computational error. If the Non-Defaulting Member purchases the Interest of the Defaulting
Member, ninety-five percent (95%) of the amount that would be distributed to the Defaulting Member pursuant to clause (v) above shall be deemed to be the “Default Purchase Price” for purposes of this Article 7;
provided, however, that if the Buy-Sell Event applicable to the Defaulting Member is not one of the Buy-Sell Events referenced in Sections 7.01(a), (b), (c) or (d), then one hundred percent (100%) of the amount that would be
distributed to the Defaulting Partner pursuant to clause (v) above shall be deemed to be the “Default Purchase Price” for purposes of this Article 7. 
 (b) Determination of Appraised Value. For purposes of this Article 7, the appraised value (“Appraised
Value”) of the assets of the Company shall be determined by one (1) or more independent Qualified Appraisers. The Non-Defaulting Member shall select one (1) Qualified Appraiser and shall include such selection in the Default
Notice. Within fifteen (15) days following the Effective Date of the Default Notice, the Defaulting Member shall either agree to the Qualified Appraiser selected by 

  

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the Non-Defaulting Member or select a second (2nd) Qualified Appraiser and give written notice to the Non-Defaulting Member of the person so selected.
If either the Non-Defaulting Member or the Defaulting Member fails to appoint a Qualified Appraiser within the time period specified and after the expiration of five (5) days following the Effective Date of written demand that a Qualified
Appraiser be appointed, the Qualified Appraiser duly appointed by the Member making such demand to appoint such Qualified Appraiser shall proceed to make the appraisal as herein set forth, and the determination thereof shall be conclusive on all the
Members. If two (2) Qualified Appraisers are selected, then such selected Qualified Appraisers shall thereafter appoint a third (3rd) Qualified Appraiser. If the two (2) selected Qualified Appraisers fail to appoint a third
(3rd) Qualified Appraiser within ten (10) days following the Effective Date of written notice from the Defaulting Member notifying the Non-Defaulting Member of the selection of the second (2nd) Qualified Appraiser, either Member may
petition a court of competent jurisdiction to appoint a third (3rd) Qualified Appraiser. 
 The Qualified Appraiser or
three (3) Qualified Appraisers, as the case may be, shall promptly fix a time for the completion of the appraisal, which shall not be later than thirty (30) days from the Effective Date of the appointment of the last Qualified Appraiser.

 The Qualified Appraiser(s) shall determine the Appraised Value by determining the fair market value of the assets of the
Company, such being the fairest price estimated in the terms of money which the Company could obtain if the assets of the Company were sold, for all cash, in the open market allowing a reasonable time to find a purchaser. 
 Upon submission of the appraisals setting forth the opinions as to the Appraised Value of the assets of the Company, the two (2) such
appraisals which are nearest in amount shall be retained, and the third (3rd) appraisal shall be discarded. The average of the two (2) retained appraisals shall constitute the Appraised Value of the assets of the Company for purposes of
this Article 7; unless one (1) appraisal is the mean of the other two (2) appraisals, in which case such appraisal shall constitute the Appraised Value of the assets of the Company for purposes of this Article 7.

 (c) Sale to Third Party. Within ten (10) days after the closing of any sale of the Company or its assets to any
third party pursuant to clause (i) of Section 7.02, the accountants regularly employed by the Company shall determine the amount of cash which would be distributed to each Member pursuant to Section 5.02 after
(i) the sale of the Company (including all of its assets) to the third party for the Third-Party Purchase Price as of the closing of the sale of the Company or its assets (after deducting therefrom an amount equal to reasonable and customary
closing costs and any prepayment fees on any indebtedness that would be payable in connection with any such sale); (ii) the liquidation of the remaining liabilities of the Company pursuant to Section 8.02(a); (iii) the
establishment of reserves in an amount reasonably determined by the Non-Defaulting Member for any contingent, conditional or unmatured liabilities or obligations of the Company pursuant to Section 8.02(b); (iv) if Buckingham is the

  

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Defaulting Member, the existence of a Cash Flow Bonus Forfeiture Event for purposes of Sections 5.01(c) and 5.02(g); and (v) the distribution by
the Company of any remaining amounts to the Members in accordance with the provisions of Section 5.02. Upon such determination, the accountants regularly employed by the Company shall give each Member a Price Determination Notice
thereof. The determination by the accountants of such amounts, including all components thereof, shall be deemed conclusive absent any material computational error. In the event of any such third party sale, ninety-five percent (95%) of the
amount that would be distributed to the Defaulting Member pursuant to clause (v) above shall be deemed to be the “Default Purchase Price” for purposes of this Article 7. 
 (d) Payment of Costs. The Non-Defaulting Member shall pay for the services of the Qualified Appraiser appointed by such Member, and
the Defaulting Member shall pay for the services of the Qualified Appraiser appointed by such Member. The cost of the services of the third (3rd) Qualified Appraiser, if any, shall be paid one-half ( 1/2) by the Non-Defaulting Member and one-half ( 1/2) by the Defaulting Member. The costs of the services of the accountants and, in the event only one (1) Qualified Appraiser is required, the cost of the services of such
Qualified Appraiser, shall be paid one-half ( 1/2) by the Non-Defaulting Member and one-half ( 1/2) by the Defaulting Member. 
  

	 	7.04	Member’s Option 

 (a)
Non-Defaulting Member’s Option. For a period of thirty (30) days following the determination of the Default Purchase Price pursuant to Section 7.03(a), the Non-Defaulting Member shall have the right, but not the
obligation, to (i) purchase the entire Defaulting Member’s Interest for the Default Purchase Price thereof (as determined pursuant to Section 7.03(a)), and on the terms and conditions set forth in this Article 7,
(ii) elect to sell the Company or cause the Company to sell its assets to a third party in accordance with the provisions set forth above in this Article 7 or (iii) waive the right to purchase the Defaulting Member’s Interest
or cause such third party sale with respect to the particular Default Buy-Sell Event, in each case by delivering written notice thereof to the Defaulting Member within such thirty (30)-day period. The failure of the Non-Defaulting Member to timely
give any such written notice pursuant to this Section 7.04 shall be deemed an election by such Member to waive such rights with respect to the particular Buy-Sell Event that resulted in the implementation of the provisions of this
Article 7. If the Non-Defaulting Member elects to sell the Company or cause the Company to sell its assets to a third party in accordance with the provisions set forth above in this Article 7, then, in lieu of electing to purchase the
Defaulting Member’s Interest, at the Non-Defaulting Member’s option, the Non-Defaulting Member may cause the sale to such third party to occur. If the Non-Defaulting Member causes the sale to such third party to occur, then,
notwithstanding the provisions of Articles 5 and 8 (and any other provision contained in this Agreement), the aggregate amount of Cash Flow to be distributed to the Defaulting Member from such sale shall be equal to the Default Purchase Price
for the Defaulting Member’s Interest determined in accordance with the provisions of Section 7.03(c) and the balance of such proceeds shall be distributed to the Non-Defaulting Member. 
  

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 (b) Defaulting Member’s Option Prior to Sale to Third Party. Prior to
accepting an offer to sell the Company or its assets to any third party pursuant to clause (i) of Section 7.02 at the Third-Party Purchase Price, the Non-Defaulting Member shall give the Defaulting Member written notice and a copy
of the offer (“Third Party Offer Notice”). The Defaulting Member then shall have five (5) days after receipt of the Third Party Offer Notice to elect, by written notice to the Non-Defaulting Member, to purchase the
Non-Defaulting Member’s Interest at a purchase price equal to the amount that the Non-Defaulting Member would have received pursuant to the last sentence of Section 7.04(a) from the sale to the third party (the “Defaulting Party
Purchase Price”). If the Defaulting Member fails to make such election by written notice to the Non-Defaulting Member at or before the end of such five (5) day period, then the Defaulting Member shall be deemed to have waived such its
rights under this Section 7.04(b) and the provisions of this Section 7.04(b) shall thereafter be null and void, even if the transaction to sell the Company or its assets to any third party pursuant to clause (i) of
Section 7.02 at the Third-Party Purchase Price is not consummated. If the Defaulting Party fails to close the purchase of Non-Defaulting Party’s Interest pursuant to the provisions of this Section 7.04(b) on or before
the closing date provided for above for any reason, other than the default of the Non-Defaulting Party, then the Non-Defaulting Member may once again exercise its rights as the Non-Defaulting Member under this Article 7 from and after such
date; provided, however, that in connection therewith the percentages of “ninety-five percent (95%)” and “one hundred percent (100%),” respectively, set forth in the last sentence of Section 7.03(a) shall thereafter
be “ninety percent (90%)” and “ninety-five percent (95%),” respectively, and the percentage of “ninety-five percent (95%)” set forth in the last sentence of Section 7.03(c) thereafter be “ninety percent
(90%).” 
  

	 	7.05	Closing of Purchase and Sale 

 The closing of any purchase and sale of the Interest of any Member selling its Interest (the “Selling Member”) pursuant to this Article 7 shall be held at the principal office of the Member that is purchasing the
Interest of the Selling Member (the “Purchasing Member”) Member (or its counsel) on or before the forty-fifth (45th) day after the expiration of the applicable thirty (30)-day period set forth in Section 7.04 (if
applicable), or, if earlier, the forty-fifth (45th) day after the Effective Date of the Default Notice or Buy-Sell Notice, as applicable (provided, however, that the closing date for any closing under Section 7.04(b) shall be as set
forth in Section 7.04(b)). The Selling Member shall transfer to the Purchasing Member (or such Member’s nominee(s)) the entire Interest of the Selling Member free and clear of all liens, security interests, and competing claims and
shall deliver to the Purchasing Member (or such Member’s nominee(s)) such instruments of transfer and such evidence of due authorization, execution, and delivery, and of the absence of any such liens, security interests, or competing claims as
such Purchasing (or such Member’s nominee(s)) shall reasonably request. 
  

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	 	7.06	Payment of Purchase Price 

 The Purchase Price for the purchase of the Selling Member’s Interest shall be paid by the Purchasing Member (or such Member’s nominee(s)) at the closing, in cash or one (1) or more certified or bank cashier’s checks
drawn and made payable to the order of the Selling Member. If the Company or its assets are sold to a third party pursuant to this Article 7, then the entire Third Party Purchase Price shall be paid concurrently with such closing. 

 

	 	7.07	Release and Indemnity 

 On or
before the closing of a purchase held pursuant to this Article 7, the Purchasing Member shall use such Member’s reasonable efforts to obtain written releases of the Selling Member (and such Member’s Affiliates) from all liabilities
of the Company and from all guarantees of such liabilities of the Company previously executed by the Selling Member (and its Affiliates). To the extent such releases cannot be obtained by the Purchasing Member, Paladin or Buckingham, as the case may
be, or such Affiliate entity satisfactory to the Selling Member shall indemnify, defend, protect and hold the Selling Member (and such Affiliates) wholly free and harmless from and against any and all claims, liabilities, causes of action, liens,
charges, and all other matters arising from such liabilities or guarantees, arising subsequent to the Effective Date of such closing. The Members acknowledge and agree that the provisions of this Section 7.07 shall only apply if the
applicable Buy-Sell Event is that referenced in Section 7.01(b) or Section 7.01(d) and is not attributable to the fraud, willful misconduct or gross negligence of the Selling Member. 
  

	 	7.08	Repayment of Member Loans 

 The Purchase Price to be paid by the Purchasing Member for the Interest of the Selling Member shall be offset at the closing of such purchase by the then outstanding principal balance (together with all accrued, unpaid interest thereon) of
any and all (i) Member Loans made by the Purchasing Member to the Selling Member and (ii) loans or advances of funds made by the Company to the Selling Member (each a “Seller Loan”). Such Member Loans and Seller Loans
(together with all accrued, unpaid interest thereon) shall be deemed paid to the extent of such offset, with such deemed payment to be applied first to the accrued interest thereon and thereafter to the payment of the outstanding principal amount
thereof. If the Purchase Price for the Defaulting Member’s Interest is insufficient to fully offset the then unpaid principal balance of any and all Member Loans and Seller Loans (together with all accrued, unpaid interest thereon), then the
portion of any such Member Loans and Seller Loans (and accrued, unpaid interest thereon) that remains outstanding following such offset shall be due and payable in full at the closing of the purchase of the Selling Member’s Interest pursuant to
this Article 7. Also, notwithstanding any other provision contained in this Agreement, the unpaid principal balance of any and all Member Loans and Seller Loans (together with all accrued, unpaid interest thereon) shall be due and payable in
full at the closing of the purchase of the Selling Member’s Interest pursuant to this Article 7. 
  

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	 	7.09	Voting Rights Following Default Buy-Sell Event 

 From and after the occurrence of a Default Buy-Sell Event (unless and until the Non-Defaulting Member waives in writing any Default Buy-Sell Event or fails to timely consummate the applicable transactions described in
this Article 7 as described in Section 7.05), (i) the Defaulting Member shall not be entitled to participate in the management of, or otherwise vote upon, any matter affecting the business and affairs of, the Company or any
matter that such Member is entitled to vote upon under this Agreement, (ii) the Defaulting Member shall no longer have any right to appoint any representative to the Management Committee and any previously appointed representatives of the
Defaulting Member shall be replaced by one (1) or more representatives to be appointed by the Non-Defaulting Member, and (iii) the rights of the Defaulting Member shall be limited solely to those of an assignee. 
  

	 	7.10	Withdrawal of the Selling Member 

 If the Interest of the Selling Member is purchased by the Purchasing Member pursuant to this Article 7, then, effective as of the closing for such purchase, (i) the Selling Member shall withdraw as a Member of the Company, and
(ii) if the Selling Member is Buckingham, then Buckingham shall be automatically removed as the Operating Member of the Company. In connection with any such withdrawal of the Selling Member, the Purchasing Member may cause any nominee
designated in the sole and absolute discretion of the Purchasing Member to be admitted as a substitute partner of the Company. 
 ARTICLE 8

 DISSOLUTION AND WINDING UP OF THE COMPANY 
  

	 	8.01	Events Causing Dissolution of the Company 

 Upon any Member’s bankruptcy, retirement, resignation, expulsion or other cessation to serve, or the admission or substitution of a new Member, the Company shall not be dissolved but its business shall continue
without interruption or break in continuity. Upon the bankruptcy, retirement, resignation, expulsion or other cessation to serve of any Member, the other Member shall continue to serve as a Member of the Company in accordance with the provisions of
this Agreement. The Company shall be dissolved upon the first to occur of: (a) the expiration of the term of the Company, unless such term has been extended by the unanimous agreement of the Members; (b) the sale, transfer or other
disposition by the Company of all or substantially all of its assets and the collection by the Company of its distributive share of any and all cash proceeds delivered therefrom; or (c) the affirmative election of the Management Committee to
dissolve the Company. Except as may be permitted in accordance with this Section 8.01 or other terms of this Agreement, no Member shall have the right to, and each Member hereby agrees that it shall not, seek to dissolve or cause the
dissolution of the Company or seek to cause a partial or whole distribution or sale of Company assets whether by court action or otherwise, it being agreed that any actual or attempted dissolution, distribution or sale would cause a substantial
hardship to the Company and the remaining Members. 
  

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	 	8.02	Winding Up of the Company 

 Upon the Liquidation of the Company caused by other than the termination of the Company under Section 708(b)(1)(B) of the Code (in which latter case the Company shall remain in existence in accordance with the provisions of such
Section of the Code), the Members shall proceed to the winding up of the affairs of the Company. During such winding up process, the Net Profits, Net Losses and Cash Flow distributions shall continue to be shared by the Members in accordance with
this Agreement. The assets shall be liquidated as promptly as consistent with obtaining a fair value therefor, and the proceeds therefrom, to the extent available, shall be applied and distributed by the Company on or before the end of the taxable
year of such Liquidation or, if later, within ninety (90) days after such Liquidation, in the following order: (a) first, to creditors of the Company (including Members who are creditors), in the order of priority as provided by law,
(b) second, to the setting up of any reasonable reserves which the Management Committee deems reasonably necessary for any contingent, conditional or unmatured liabilities or obligations of the Company (which shall be distributed as soon as
reasonably practicable to the Members in proportion to their respective positive Capital Account balances), and (c) thereafter, to the Members in accordance with Section 5.02 hereof. 
  

	 	8.03	No Negative Capital Account Restoration 

 No Member shall have any obligation whatsoever upon the Liquidation of such Member’s Interest, the Liquidation of the Company or in any other event, to contribute all or any portion of any negative balance
standing in such Member’s Capital Account to the Company, to any other Member or to any other Person. 
 ARTICLE 9 
 BOOKS AND RECORDS;  
 ACCOUNTING; TAX ELECTIONS 
  

	 	9.01	Company Books 

 The Operating
Member shall cause to be kept, at the principal office of the Company, full and proper ledgers, other books of account, and records of all receipts and disbursements, other financial activities, and the internal affairs of the Company for at least
the current and past four (4) Fiscal Years. 
  

	 	9.02	Delivery of Records; Inspection 

 The Operating Member, subject to such reasonable standards as may be established from time to time by the Management Committee, shall deliver to any Member (or, to the extent so directed, to its agent or attorney) a copy of the following
information at any time if requested in writing: 
 (a) Financial Reports. True and full information regarding the
status of the business and financial condition of the Company (including, without limitation, the annual financial reports and all supporting calculations and 

  

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information for such reports), including (without limitation,) the information required by Section 9.03(c); 
 (b) Tax Returns. Promptly after becoming available, copies of the Company’s federal, state and local income or information tax
returns for the year; 
 (c) Names and Addresses. A current list of the name and last known-business, residence or
mailing address of each Member and the date on which each became a Member; 
 (d) Formation Documents. A copy of this
Agreement, as amended, and any other formation documents for the Company, together with executed copies of any written powers of attorney pursuant to which this Agreement, as amended, and any other formation documents have been executed; and

 (e) Contribution Information. True and full information regarding the amount of cash and a description and statement
of the agreed value of any other property or services contributed by each Member and which each Member has agreed to contribute in the future. 
 Any Member (personally or through an authorized representative) may, for any purpose reasonably related to such Member’s Interest, inspect and copy (at its own cost and expense) the books and records of the
Company at all reasonable business hours. 
  

	 	9.03	Reports and Tax Information 

 (a) General. The Operating Member shall cause to be prepared, at the cost and expense of the Company, and delivered to each Member at such times as are determined by the Management Committee (or otherwise in accordance with the terms
of this Agreement), the Annual Business Plans, the Operating Budgets, any and all periodic operating reports, and any and all other financial statements or reports requested from time to time by any representative of the Management Committee. In
addition, the Operating Member shall cause to be prepared, at the cost and expense of the Company, and delivered to each Member, within ninety (90) days after the end of each tax year, the information necessary for such Member to complete its
federal, state and local income tax or information returns. 
 (b) Tax Returns. The Operating Member shall cause to be
prepared by a reputable accounting firm approved by the Management Committee and delivered to each Member, within ninety (90) days from and after the final day of each tax year, the Company’s federal, state and local income or information
tax returns for the year, as well as any additional information necessary for such Member to complete its federal, state and local income tax or information returns. In addition, upon the request of any Member, the Operating Member shall prepare
estimates of the projected federal, state and local taxable income of the Company, and the portion thereof allocable to each Member, within a reasonable time period specified by the Member prior to the end of each tax year. 
  

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 (c) Periodic Financial Statements. The Operating Member shall furnish quarterly
financial statements, including a balance sheet, income statement, statement of Members’ capital, statement of cash flows and notes thereon, that are prepared on a historical cost basis in accordance with generally accepted accounting
principles within fifteen (15) calendar days following the close of a given quarter. 
 (d) Audited Financial
Statements. The Operating Member shall prepare, at the expense of the Company, and furnish the following information to each Member within sixty (60) calendar days after the end of each Fiscal Year (with a final reviewable draft thereof to
be furnished to each Member within forty-five (45) days after the end of each Fiscal Year): (i) an audited balance sheet of the Company dated as of the end of such Fiscal Year, (ii) an audited related income statement of the Company
for such Fiscal Year, (iii) an audited statement of cash flows for such Fiscal Year, (iv) an audited statement of each Member’s Capital Account for such Fiscal Year, and (v) notes thereon, prepared on a historical cost basis in
accordance with generally accepted accounting principles, all of which shall be certified by the Operating Member as being, to the best of its knowledge, true and correct and all of which shall be certified in the customary manner by a reputable
accounting firm approved by the Management Committee (which firm shall provide such balance sheet, income statement and statement of Capital Account in draft form within forty (40) calendar days after the end of each Fiscal Year, to the Members
for review prior to finalization and certification thereof). 
 (e) Securities Exchange Act. The Operating Member
acknowledges that the financial statements of the Company will be consolidated with those of the Paladin REIT and that the Paladin REIT is subject to the reporting requirements of the Securities Exchange Act of 1934, as
amended. The Operating Member shall permit the officers, agents and representatives of the Paladin REIT (including its attorneys and accountants) to have unfettered access to such financial and other information for the Company at such
times as such officer, agent or representatives may reasonably request to enable the Paladin REIT to obtain the information required in order to timely comply with such reporting requirements. The Operating Member, at its expense, shall employ,
or contract with, such individuals and implement such accounting practices and procedures as are necessary for the provision of a reasonably professional level of accounting, reporting and internal controls for the Company, including (without
limitation) the provision of the following: (i) documentation of property level and corporate accounting and financial reporting policies and procedures; (ii) documentation of Information Technology (IT) policies and procedures, and
disaster recovery plan; (iii) “sign off” by Buckingham’s property, accounting and supervisory/review personnel after their preparation, review and/or approval of accounting transactions and workpapers, and (iv) preparation
of written variance analysis of significant accounts quarterly and year-to-date, as compared to the prior year period. In addition, the Operating Member shall institute such additional reasonable internal accounting controls as may be
requested by the Paladin REIT, including, without limitation, those which are necessitated for 

  

 -39- 

 
compliance with the Sarbanes-Oxley Act of 2002, as amended; provided, however, that Paladin shall bear all costs associated with such compliance.

  

	 	9.04	Company Tax Elections; Tax Controversies 

 The Management Committee shall have the right in its sole and absolute discretion to make elections for the Company provided for in the Code including, without limitation, the elections provided for in
Section 754 of the Code. Additionally, the Management Committee shall have the right to seek to revoke any such election (including without limitation, any election under Section 754 of the Code) upon the Management Committee’s
determination that such revocation is in the best interests of the Company or its Members. Paladin is hereby designated as the “Tax Matters Partner” pursuant to the requirements of Section 6231(a)(7) of the Code, and in such capacity
shall represent the Company in any disputes, controversies or proceedings with the Internal Revenue Service. 
  

	 	9.05	Accounting and Fiscal Year 

 Subject to Section 448 of the Code, the books of the Company shall be kept on such method of accounting for tax and financial reporting purposes as may be determined by the Management Committee. The Fiscal Year of the Company shall be
the calendar year. 
  

	 	9.06	Confidentiality of Information 

 Each party hereto agrees that the provisions of this Agreement, all understandings, agreements and other arrangements between and among the parties, and all other non-public information received from or otherwise relating to the Company,
shall be confidential and shall not be disclosed or otherwise released to any other person or entity (other than another party hereto) without the written consent of the Management Committee. Notwithstanding the foregoing, confidential information
may be disclosed by a party if such party is required to do so: (i) by operation of law, rule or regulation; (ii) pursuant to applicable legal process; (iii) by the commercial lenders to the Company; (iv) by the title insurer to
the Company or Project lender; (v) to any proposed transferee of an Interest; or (vi) to prosecute any claim or defend any action between the Members relating to the Company, without the written consent of the Management Committee.
Accordingly, each party hereto shall, and shall cause its agents and attorneys to, hold in confidence all such information. 
 ARTICLE 10

 MISCELLANEOUS 
  

	 	10.01	Subscription Agreement 

 As a
condition to its admission to the Company, each Member may be required by the Management Committee to execute a subscription agreement in a form satisfactory to the Management Committee, which subscription agreement shall contain certain
representations made by each such Member. 
  

 -40- 

	 	10.02	Investment Interest; Nature of Investment 

 Each Member hereby represents and warrants to the Company and to each other Member that such Member is acquiring its Interest in the Company for its own account and not with a view to, or for resale in connection
with, any distribution thereof in violation of the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities laws. Such Member possesses experience and sophistication as an investor adequate for
the evaluation of the merits and risks of such Member’s investment in the Company, has investigated the Company and its business, and the Company has made available to such Member all information necessary for such Member to make an informed
decision to acquire an Interest in the Company. Such Member also understands that its Company Interest may not be transferred absent compliance with the registration requirements of the Securities Act and applicable state securities laws or pursuant
to an exemption therefrom and otherwise in compliance with the terms of this Agreement. Each Member understands the meaning and consequences of the representations, warranties and covenants made by such Member set forth herein and that the Company
has relied upon such representations, warranties and covenants. Each Member hereby indemnifies, defends, protects and holds wholly free and harmless the Company from and against any and all losses, damages, expenses or liabilities arising out of the
breach or inaccuracy of any such representation, warranty or covenant. All representations, warranties and covenants contained herein shall survive the execution of this Agreement, the formation of the Company, and the liquidation of the Company.

  

	 	10.03	Appointment of Attorney-in-Fact 

 Each of the Members by its execution of this Agreement, irrevocably constitutes and appoints any Member(s), agent or other representative as is designated by the Management Committee as such Member’s true and lawful attorney-in-fact
with full power and authority in its name, place and stead to execute, acknowledge, deliver, swear to, file and record at the appropriate public offices such documents as may be necessary or appropriate to carry out the provisions of this Agreement
including, without limitation: 
 (a) Formation Documents. All formation documents and other instruments (including
counterparts of this Agreement), and all amendments thereto, which the Management Committee deems appropriate to form, qualify, continue or otherwise operate the Company as a limited liability company, in the jurisdictions in which the Company may
conduct business. 
 (b) Amendments. All amendments to this Agreement adopted in accordance with the terms of this
Agreement, and all instruments which the Management Committee deems appropriate to reflect a change or modification of the Company in accordance with the terms of this Agreement. 
 (c) Conveyance Documents. All conveyances of Company assets in accordance with the terms of this Agreement, and other instruments
which the 

  

 -41- 

 
Management Committee reasonably deems necessary in order to complete a dissolution and liquidation of the Company in accordance with the terms of this
Agreement. 
 The foregoing appointment shall be deemed to be a power coupled with an interest, in recognition that each of
the Members under this Agreement will be relying upon the power of the Management Committee to act as contemplated by this Agreement in any filing and other action by it on behalf of the Company, shall survive the bankruptcy or other incapacity of
any Member hereby giving such power, and the transfer or assignment of all or any portion of the Interest of such Member in the Company, and shall not be affected by the subsequent bankruptcy or other incapacity of such Member. If any Member assigns
all or any portion of its Interest in the Company, then the foregoing power of attorney shall survive such assignment. 
  

	 	10.04	Waiver of Conflict of Interest 

 The Company and each Member are not represented by separate counsel; provided, however, in connection with the formation of the Company and the drafting and negotiation of this Agreement, (i) Paladin (and not the Company or
Buckingham) has been represented separately by King & Spalding LLP and (ii) Buckingham (and not the Company or Paladin) has been represented separately by Ice Miller LLP. The attorneys, accountants and other experts who perform
services for any Member may also perform services for the Company. To the extent that the foregoing representation constitutes a conflict of interest, the Company and each Member hereby expressly waive any such conflict of interest. 
  

	 	10.05	Amendment 

 The written
consent of each Member shall be required to amend any provision of this Agreement, which consent may be given, withheld or made subject to such conditions as are determined by each such Member in such Member’s sole and absolute discretion. No
provision of this Agreement may be amended except in a writing signed by all Members and expressly stating (i) that it is an amendment of this Agreement and (ii) the provisions of this Agreement being amended and how it is being amended.

  

	 	10.06	No Assignments; Binding Effect 

 This Agreement shall not be assigned or otherwise transferred (by operation of law or otherwise) by any Member except as is otherwise permitted hereby. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their heirs, executors, administrators, successors, legal representatives and assigns permitted in accordance with this Agreement and the Indiana Act. 
  

 -42- 

	 	10.07	Further Assurances 

 Each of
the parties hereto hereby covenants and agrees on behalf of itself, its successors, and its assigns, without further consideration, to prepare, execute, acknowledge, verify, file, record, publish and deliver such other instruments, documents and
statements, and to take such other action as may be required by law or reasonably necessary to effectively carry out the purposes of this Agreement. 
  

	 	10.08	Notices 

 Any notice,
approval, consent, payment, demand or communication required or permitted to be given to any Member under this Agreement shall be in writing and shall be deemed to have been duly given or made as of the date (the “Effective Date”)
set forth below: (i) if delivered personally by courier or otherwise, then as of the date delivered or if delivery is refused, then as of the date presented; (ii) if sent or mailed by Federal Express, Express Mail, or other nationally
recognized overnight mail service which maintains evidence of delivery and receipt, to the Company at its principal office and to each Member at its address appearing in the current records of the Company, then as of the date received; (iii) if
sent or mailed by certified U.S. Mail, return receipt requested, to the Company at its principal office and to each Member at its address appearing in the current records of the Company, then as of the third Business Day after the date so mailed; or
(iv) if sent by facsimile to the Company at its facsimile telephone number or to any Member at its facsimile telephone appearing in the current records of the Company, then either (A) as of the date on which the appropriate electronic
confirmation of receipt is received by the sending party at or before 5:00 p.m. (receiver’s time) on any Business Day, or (B) as of the next Business Day if the time of the appropriate electronic confirmation of receipt is received by
the sending party after 5:00 p.m. (receiver’s time). Notices to each Member shall be addressed as follows (which address(es) may be changed by the Member from time to time by written notice to the Members). 
  

			
	To Paladin:	  	c/o Paladin Realty Partners, LLC
		  	10880 Wilshire Boulevard, Suite 1400
		  	Los Angeles, California 90024
		  	Attention: William K. Dunbar
		  	Fax: (310) 996-8708
		  	Telephone: (310) 996-8754
		
		  	King & Spalding LLP
		  	1180 Peachtree Street, N.E.
		  	Atlanta, Georgia 30309
		  	Attention: Scott J. Arnold, Esq.
		  	Fax: (404) 572-5131
		  	Telephone: (404) 572-4600

  

 -43- 

			
	To Buckingham:	  	Buckingham Springhurst, LLC
		  	c/o Buckingham Companies
		  	333 N. Pennsylvania Street, 10th Floor
		  	Indianapolis, Indiana 46204
		  	Attention: Bradley B. Chambers
		  	Fax: (317) 974-1238
		  	Telephone: (317) 974-1234
		
	With a copy to:	  	Ice Miller LLP
		  	One American Square
		  	Suite 3100
		  	Indianapolis, Indiana 46282-0200
		  	Attention: Zeff A. Weiss, Esq.
		  	Fax: (317) 592-4788
		  	Telephone: (317) 236-2319

  

	 	10.09	Waivers 

 No waiver by any
Member of any default with respect to any provision, condition or requirement hereof shall be deemed to be a waiver of any other provision, condition or requirement hereof; nor shall any delay or omission of any Member to exercise any right
hereunder in any manner impair the exercise of any such right accruing to it hereafter. 
  

	 	10.10	Preservation of Intent 

 If
any provision of this Agreement is determined by an arbitrator or any court having jurisdiction to be illegal or in conflict with any laws of any state or jurisdiction, then the Members agree that such provision shall be modified to the extent
legally possible so that the intent of this Agreement may be legally carried out. If any one (1) or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any
respect or for any reason, then the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected, it being intended that all of the
Members’ rights and privileges shall be enforceable to the fullest extent permitted by law. 
  

	 	10.11	Entire Agreement 

 This
Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereto and fully supersedes any and all prior or contemporaneous agreements or understandings between the parties thereto pertaining to the
subject matter hereof. 
  

 -44- 

	 	10.12	Certain Rules of Construction 

 Any ambiguities shall be resolved without reference to which party may have drafted this Agreement. All Article or Section titles or other captions in this Agreement are for convenience only, and they shall not be deemed part of this
Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof. Unless the context otherwise requires: (i) a term has the meaning assigned to it; (ii) an accounting term not otherwise defined has the
meaning assigned to it in accordance with generally accepted accounting principles; (iii) “or” is not exclusive; (iv) words in the singular include the plural, and words in the plural include the singular; (v) provisions
apply to successive events and transactions; (vi) “herein,” “hereof” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision; (vii) all
references to “clauses,” “Sections” or “Articles” refer to clauses, Sections or Articles of this Agreement; and (viii) any pronoun used in this Agreement shall include the corresponding masculine, feminine or
neuter forms. 
  

	 	10.13	Counterparts 

 This Agreement
may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one (1) and the same instrument. 
  

	 	10.14	Governing Law 

 This
Agreement, including its existence, validity, construction, and operating effect, and the rights of each of the Members hereto, shall be governed by and construed in accordance with the laws of the State of Indiana without regard to any otherwise
governing principles of conflicts of law. 
  

	 	10.15	Assurances 

 Each of the
Members shall hereafter execute and deliver such further instruments and do such further acts and things as may be reasonably required or useful to carry out the intent and purpose of this Agreement and as are not inconsistent with the terms hereof.

  

	 	10.16	Time is of the Essence 

 Time
is of the essence hereof in connection with all obligations of the parties hereunder. 
  

 -45- 

	 	10.17	Other Matters 

 If any
proceeding is brought by any Member or the Company against any other Member or the Company that arises out of, or is connected with, this Agreement, then the prevailing party in such proceeding shall be entitled to recover reasonable attorneys’
fees and costs. Any agreement to pay any amount and any assumption of liability herein contained, express or implied, shall be only for the benefit of the Members and their respective successors and assigns, and such agreements and assumptions shall
not inure to the benefit of the obligees of any indebtedness or any other party, whomsoever, deemed to be a third-party beneficiary of this Agreement. 
  

	 	10.18	Ownership of Buckingham and Property Manager 

 Buckingham represents and warrants that it is a limited liability company duly organized under the laws of the State of Indiana, that the Property Manager is a limited liability company duly organized under the laws
of the State of Indiana, and that Exhibit D sets forth the following information with respect to the ownership and structure of Buckingham and the Property Manager and each Person that owns any direct or indirect interest therein: 

(a) The name, type and percentage ownership interest of each such Person; and 
 (b) The name of each officer, if any, and the title thereof, in any corporate entity, the name of each partner in any partnership entity,
and the name of each member and the name of each manager in any limited liability company. 
 Buckingham represents that there
are no commitments, options, warrants or rights of any kind which evidence a right to acquire or receive any ownership interest in Buckingham or the Property Manager. 
 ARTICLE 11 
 DEFINITIONS 
  

	 	11.01	Additional Contribution 

 The
term “Additional Contribution” means any and all additional contributions made by any Member to the capital of the Company pursuant to Section 3.02. 
  

	 	11.02	Additional Member 

 The term
“Additional Member” means any Person that has been admitted to the Company as a Member pursuant to this Agreement by virtue of such Person receiving its Interest in the Company from the Company and not from another Member or an
assignee. 
  

 -46- 

	 	11.03	Adjusted Capital Account 

 The term “Adjusted Capital Account” means, with respect to any Member, the deficit balance, if any, in such Member’s Capital Account (a) increased for any amount which the Member is deemed to be obligated to
restore with respect to any negative balance in the Member’s Capital Account pursuant to Treasury Regulation Section 1.704-1(b)(2)(ii)(c) or pursuant to the penultimate sentence of Treasury Regulation Section 1.704-2(g)(1) or
1.704-2(i)(5); and (b) decreased by any items described in Treasury Regulation Sections 1.704-1(b)(2)(d)(4), (5) or (6). 
  

	 	11.04	Affiliate 

 The term
“Affiliate” means, with reference to a specified Person, any other Person that, directly or indirectly through one or more intermediaries or otherwise, controls, is controlled by or is under common control with the specified Person.
As used in this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person (whether through ownership of securities of that Person, by
contract, relationship or otherwise) and includes, in any event, the ownership of twenty-five percent (25%) or more of the outstanding voting interests of such Person. 
  

	 	11.05	Agreement 

 The term
“Agreement” means this Amended and Restated Operating Agreement of Springhurst Housing Partners, LLC, as it may be further amended. 
  

	 	11.06	Annual Business Plan 

 The
term “Annual Business Plan” is defined in Section 2.04. 
  

	 	11.07	Appraised Value 

 The term
“Appraised Value” is defined in Section 7.03(b). 
  

	 	11.08	Buckingham 

 The term
“Buckingham” means Buckingham Springhurst, LLC, an Indiana limited liability company. 
  

	 	11.09	Buckingham Put Interest 

 The
term “Buckingham Put Interest” means a twenty percent (20%) Interest in the Company initially owned by Buckingham, less the amount of any reduction in the Percentage Interest of Buckingham made pursuant to the provisions of
Section 3.03(c). 
  

	 	11.10	Business Day 

 The term
“Business Day” means any weekday excluding any legal holiday observed pursuant to United States federal law or California state law or regulation. 
  

 -47- 

	 	11.11	Buyout Purchase Price 

 The
term “Buyout Purchase Price” is defined in Section 7.02. 
  

	 	11.12	Buy-Sell Notice 

 The term
“Buy-Sell Notice” is defined in Section 7.02. 
  

	 	11.13	Capital Account 

 The term
“Capital Account” means with respect to each Member the amount of money contributed by such Member to the capital of the Company, increased by the aggregate Gross Asset Value at the time of contribution (as determined by the
Members) of all property contributed by such Member to the capital of the Company (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to under Section 752 of the Code), the aggregate
amount of all Net Profits allocated to such Member, and any and all items of gross income or gain specially allocated to such Member pursuant to Section 4.02 and Section 4.03, and decreased by the amount of money
distributed to such Member by the Company (exclusive of any guaranteed payment within the meaning of Section 707(c) of the Code paid to such Member), the aggregate fair market value at the time of distribution (as determined by the
Members) of all property distributed to such Member by the Company (net of liabilities secured by such distributed property that such Member is considered to assume or take subject to under Section 752 of the Code), the amount of any Net Losses
charged to such Member, and any items of loss or deduction specially allocated to such Member pursuant to Section 4.02 and Section 4.03. The provisions hereof governing the maintenance of Capital Accounts are intended to
satisfy the requirements of Treasury Regulation Section 1.704-1(b)(2)(iv) and shall be interpreted and applied in a manner consistent therewith. 
  

	 	11.14	Capital Contribution 

 The
term “Capital Contribution” means with respect to each Member, the aggregate amount of any and all amounts credited to such Member’s Unrecovered Contribution Account in accordance with the terms of this Agreement. Any Capital
Contributions made at any time during throughout the term hereof shall be deemed made on the date contributed. 
  

	 	11.15	Capital Event 

 The term
“Capital Event” means and includes: (i) any transaction involving the sale, exchange or other disposition of the Project or the Company (but excluding any incidental sales or exchanges of tangible personal property and
fixtures), (ii) any financing, refinancing or borrowing secured by the Project or the Company, and (iii) any condemnation or recovery of damage awards and property insurance proceeds (excluding proceeds from any rent or business
interruption insurance). 
  

 -48- 

	 	11.16	Cash Flow 

 The term
“Cash Flow” means the sum of any and all Ordinary Cash Flow and Extraordinary Cash Flow. Any Cash Flow distributions made at any time during any calendar month throughout the term hereof shall be deemed to have been made as of the
last day of such calendar month. 
  

	 	11.17	Cash Flow Bonus Forfeiture Event 

 The term “Cash Flow Bonus Forfeiture Event” shall mean any of the following: (i) the failure of Buckingham to make all or any portion of any Additional Contribution Buckingham is required to contribute pursuant to
Section 3.02, (ii) the removal of Buckingham as Operating Member pursuant to Section 2.06(a) or (iii) the existence of Default Buy-Sell Event and Buckingham is the Defaulting Member. 
  

	 	11.18	Code 

 The term
“Code” means the Internal Revenue Code of 1986, as heretofore and hereafter amended from time to time (or any corresponding provision of any superseding revenue law). 
  

	 	11.19	Company 

 The term
“Company” means the limited liability company governed by this Agreement and created upon the filing of the Articles of Organization with the Indiana Secretary of State in accordance with the provisions of the Indiana Act, which
limited liability company is referenced in the first paragraph of this Agreement. 
  

	 	11.20	Company Minimum Gain 

 The
term “Company Minimum Gain” has the meaning set forth in Treasury Regulation Sections 1.704-2(b)(2) and 1.704-2(d)(1) for the phrase “partnership minimum gain.” 
  

	 	11.21	Contributing Member 

 The
term “Contributing Member” is defined in Section 3.03(a). 
  

	 	11.22	Contribution Date 

 The term
“Contribution Date” is defined in Section 3.02(b). 
  

	 	11.23	Contribution Notice 

 The
term “Contribution Notice” is defined in Section 3.02(b). 
  

 -49- 

	 	11.24	Contribution Percentage 

 The
term “Contribution Percentage” means, with respect to each Member, the percentage set forth opposite such Member’s name on Exhibit A attached hereto under the column labeled “Contribution Percentage,” as such
percentage shall be modified from time to time in accordance with this Agreement 
  

	 	11.25	Default Buy-Sell Event 

 The
term “Default Buy-Sell Event” is defined in Section 7.01. 
  

	 	11.26	Default Notice 

 The term
“Default Notice” is defined in Section 7.02. 
  

	 	11.27	Defaulting Member 

 The term
“Defaulting Member” is defined in Section 7.01. 
  

	 	11.28	Defaulting Party Purchase Price 

 The term “Defaulting Party Purchase Price” is defined in Section 7.04(b). 
  

	 	11.29	Default Purchase Price  

 The
term “Default Purchase Price” is defined in Section 7.03(a). 
  

	 	11.30	Delinquent Contribution 

 The
term “Delinquent Contribution” is defined in Section 3.03(a). 
  

	 	11.31	Designated Put Interest 

 The
term “Designated Put Interest” is defined in Section 6.05(a). 
  

	 	11.32	Dilution Percentage 

 The
term “Dilution Percentage” is defined in Section 3.03(c). 
  

	 	11.33	Effective Date 

 The term
“Effective Date” is defined in Section 10.08. 
  

	 	11.34	Extraordinary Cash Flow  

 The term “Extraordinary Cash Flow” means the cash proceeds (including, without limitation, any insurance proceeds, recoveries, damages and awards, but excluding the proceeds of any rent insurance or business interruption
insurance) realized by the Company, directly or indirectly, as a result of the occurrence of a Capital Event, plus cash interest payments received with respect to such proceeds, decreased by the sum of (i) the 

  

 -50- 

 
amount of such proceeds applied by the Company to pay debts and liabilities of the Company which are then due and payable (inclusive of any guaranteed
payment within the meaning of Section 707(c) of the Code paid to any Member); (ii) the amount of such proceeds used, set aside or committed by the Company or required to be used by any secured lender for the Project for restoration and
repair of any property in the event of damage or destruction to the Project; (iii) any incidental or ancillary expenses, costs or liabilities incurred by the Company in effecting or obtaining any such Capital Event, or the proceeds thereof
(including, without limitation, attorneys’ fees, expert witness’ fees, accountants’ fees, court costs, recording fees, transfer taxes and fees, appraisal costs and the like) all of which expenses, costs and liabilities shall be paid
from the gross amount of such cash proceeds to the extent thereof; (iv) the payment of such other Company debts and liabilities as are determined in the reasonable discretion of the Management Committee; and (v) a reserve, established in
the reasonable discretion of the Management Committee, for anticipated cash disbursements that will have to be made before additional cash receipts from third parties will provide funds therefore. 
  

	 	11.35	Fiscal Year 

 The term
“Fiscal Year” means, except as otherwise provided in this definition, the twelve (12) month period commencing on January 1 of each calendar year and ending on December 31 of each calendar year, with the first Fiscal
Year commencing on the date hereof and ending on December 31, 2006 and the last Fiscal Year being the period beginning on January 1 of the year in which the final liquidation and termination of the Company is completed and ending on the
date such final liquidation and termination is completed. To the extent any computation or other provision hereof provides for an action to be taken on the basis of a Fiscal Year, an appropriate proration or other adjustment shall be made in respect
of the initial and final Fiscal Years to reflect that such periods are less than 12 month periods. 
  

	 	11.36	Gross Asset Value 

 The term
“Gross Asset Value” shall mean, except as set forth below, such asset’s adjusted basis for federal income tax purposes: 
 (i) The initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset, as determined by the contributing Member and the Company. 
 (ii) The Gross Asset Value of all Company assets shall be adjusted to equal their respective gross fair market values, as determined by
the Members as of the following times: (A) the acquisition of an additional interest in the Company by any new or existing Members in exchange for more than a de minimis Capital Contribution if the Members reasonably determine that
such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; (B) the distribution by the Company to a Member 

  

 -51- 

 
of more than a de minimis amount of Company property as consideration for an interest in the Company if the Members reasonably determine that
such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; and (C) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g).

 (iii) The Gross Asset Value of any Company asset distributed to any Member shall be the gross fair market value of such
asset on the date of distribution; and 
 (iv) The Gross Asset Values of Company assets shall be increased or decreased to
reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to
Section 1.704-1(b)(2)(iv)(m) of the Treasury Regulations; provided, however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph (iv) to the extent the Members determine that an adjustment pursuant to
subparagraph (ii) hereof is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (iv). 
 If the Gross Asset Value of an asset has been determined or adjusted pursuant to subparagraphs (i), (ii) or (iv) of this
provision, such Gross Asset Value shall thereafter be computed in accordance with Section 1.704-1(b)(2)(iv)(g) of the Treasury Regulations. 
  

	 	11.37	Immediate Family 

 The term
“Immediate Family” means an individual Person’s current spouse, parents, grandparents, siblings, children, children’s spouses, grandchildren or grandchildren’s spouses or any trusts or estates (or other
estate-planning vehicles) for the exclusive benefit of any one or more of the foregoing that is controlled by such individual Person. 
  

	 	11.38	Indemnified Party 

 The term
“Indemnified Party” is defined in Section 2.07(a). 
  

	 	11.39	Indiana Act 

 The term
“Indiana Act” means the Indiana Business Flexibility Act (Ind. Code § 23-18-1-1, et seq.), as hereafter amended from time to time. 
  

 -52- 

	 	11.40	Interest 

 The term
“Interest” means in respect to any Member, all of such Member’s right, title and interest in and to the Net Profits, Net Losses, Cash Flow, distributions and capital of the Company, and any and all other interests therein in
accordance with the provisions of this Agreement and the Indiana Act. 
  

	 	11.41	IRR 

 The term
“IRR” means, with respect to any Member, the annual discount rate, determined by iterative process, which results in a net present value approximating zero (0) when such discount rate is applied to the Capital Contributions
made by such Member from time to time and distributions made to such Member from time to time, and calculated using MicroSoft Office Excel, xIRR function in accordance with the formula attached hereto as Exhibit E. 
  

	 	11.42	Liquidation 

 The term
“Liquidation” means, (i) in respect to the Company, the earlier of the date upon which the Company is terminated under Section 708(b)(1) (except for any deemed liquidation under Section 708(b)(1)(B) of the Code) or
the date upon which the Company ceases to be a going concern (even though it may continue in existence for the purpose of winding up its affairs, paying its debts and distributing any remaining balance to its Members), and (ii) in respect to a
Member wherein the Company is not in Liquidation, the liquidation of a Member’s interest in the Company under Treasury Regulation Section 1.761-1(d). 
  

	 	11.43	Majority of Representatives 

 The term “Majority of Representatives” means a majority (in number) of the representatives on the Management Committee, provided that, at any meeting of the Management Committee, all of the representatives
collectively shall have a number of votes equal to the representatives that Paladin or Buckingham, as the case may be, is entitled to elect, and such votes shall be cast (whether by one or more of such representatives) as a block, with a majority of
such votes constituting a “Majority of Representatives.” 
  

	 	11.44	Management Committee 

 The
term “Management Committee” is defined in Section 2.01(a). 
  

	 	11.45	Material Breach 

 The term
“Material Breach” means any material breach or default by a Member of any material covenant, duty or obligation under this Agreement or any Exhibits hereto (including, without limitation, the failure of any Member to contribute any
Additional Contribution to the extent required to be made pursuant to Section 3.02 

  

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and Section 3.03), provided that in any such instance: (i) such Member shall have received written notice from the other Member of
such breach or default, and (ii) if curable, such Member shall have failed to cure or remedy such breach or default within ten (10) days following the Effective Date of such notice (except that no such notice shall be required in the case
of the failure of any Member to contribute any Additional Contribution pursuant to Section 3.02 and Section 3.03) or, if such breach or default is not curable within such 10-day period, such Member shall have failed to
diligently and continuously pursue such a cure or remedy and in any event fully cure or remedy such breach or default within sixty (60) days of the Effective Date of such notice. 
  

	 	11.46	Member Loan  

 The term
“Member Loan” is defined in Section. 3.02(b). 
  

	 	11.47	Member Minimum Gain 

 The
term “Member Minimum Gain” means minimum gain attributable to a Member Nonrecourse Debt determined in accordance with Treasury Regulation Section 1.704-2(i) for the phrase “partner minimum gain.” 
  

	 	11.48	Member Nonrecourse Debt 

 The
term “Member Nonrecourse Debt” has the meaning set forth in Treasury Regulation Section 1.704-2(b)(4) for the phrase “partner nonrecourse debt.” 
  

	 	11.49	Member Nonrecourse Deductions 

 “Member Nonrecourse Deductions” has the meaning set forth in Treasury Regulation Section 1.704-2(i) for the phrase “partner nonrecourse deductions.” 
  

	 	11.50	Member(s) 

 The term
“Members” means Paladin and Buckingham, collectively; the term “Member” means any one of the Members. 
  

	 	11.51	Net Profits and Net Losses 

 The term “Net Profits” or “Net Losses” shall mean, for each Fiscal Year or other period, an amount equal to the Company’s taxable income or loss for such year or period, determined in accordance with
Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments:

 (i) Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Net
Profits and Net Losses pursuant to this subparagraph (i) shall be added to such taxable income or loss; 
  

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 (ii) Any expenditures of the Company described in Code Section 705(a)(2)(B) or
treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(1), and not otherwise taken into account in computing Net Profits or Net Losses pursuant to this provision shall be subtracted from
such taxable income or loss; 
 (iii) In the event of the Gross Asset Value of any Company property is adjusted pursuant to
subparagraphs (ii) or (iii) of the definition of Gross Asset Value, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Net Profits or Net Losses;

 (iv) Gain or loss resulting from any disposition of Company property with respect to which gain or loss is recognized for
federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value; 
 (v) In lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or
loss, there shall be taken into account depreciation computed in accordance with Section 1.704-1(b)(2)(iv)(g) of the Treasury Regulations for such Fiscal Year or other period; and 
 (vi) Notwithstanding anything contained herein to the contrary, any items which are specially allocated pursuant to Article 4
hereof shall not be taken into account in computing Net Profits or Net Losses. 
  

	 	11.52	Non-Contributing Member 

 The
term “Non-Contributing Member” is defined in Section 3.03(a). 
  

	 	11.53	Nonrecourse Deductions 

 The
term “Nonrecourse Deductions” means deductions as described in Treasury Regulation Section 1.704-2(b)(l). 
  

	 	11.54	Operating Account 

 The term
“Operating Account” means an account of the Company at a financial institution approved by the Management Committee and into which all Capital Contributions and other funds for and from the ownership and operation of the Project by
the Company shall be deposited and held until properly disbursed and on which at least one of the representatives of Paladin on the Management Committee shall be a signatory. 
  

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	 	11.55	Operating Budget 

 The term
“Operating Budget” is defined in Section 2.05. 
  

	 	11.56	Operating Member 

 The term
“Operating Member” is defined in Section 2.03(a). 
  

	 	11.57	Ordinary Cash Flow 

 The term
“Ordinary Cash Flow” means the amount, if any, of all cash receipts of the Company as of any applicable determination date (including, without limitation, any cash receipts realized from operations of the Company but excluding any
cash receipts or proceeds from a Capital Event), in excess of the sum of (i) all cash disbursements (inclusive of any reimbursements and guaranteed payments made to any Member, but exclusive of disbursements made from the proceeds of a Capital
Event and distributions to the Members in their capacities as such) of the Company prior to that date, plus (ii) any reserve, determined in the reasonable discretion of the Management Committee, for anticipated cash disbursements that will have
to be made before additional cash receipts from third parties will provide the funds therefor. Ordinary Cash Flow shall be determined and distributed no more frequently than monthly and no less frequently than on a quarterly basis or at such other
times as the Management Committee determines that funds are available therefor, taking into account the reasonable business needs of the Company. 
  

	 	11.58	Paladin 

 The term
“Paladin” means PRIP 3700, LCC, a Delaware limited liability company. 
  

	 	11.59	Paladin Sale Notice 

 The
term “Paladin Put Notice” is defined in Section 2.02(b). 
  

	 	11.60	Paladin Sale Offer 

 The term
“Paladin Sale Offer” is defined in Section 6.06(a). 
  

	 	11.61	Paladin Valuation 

 The term
“Paladin Valuation” is defined in Section 6.06(a). 
  

	 	11.62	Paladin REIT 

 The term
“Paladin REIT” means Paladin Realty Income Properties, Inc. a Maryland corporation, or any successor thereto. 
  

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	 	11.63	Partially Adjusted Capital Account 

 The term “Partially Adjusted Capital Account” means, with respect to any Member as of the close of business on the last day of any Fiscal Year (an “Adjustment Date”), the Capital Account of such Member as
of the beginning of the period ending in such Adjustment Date, after giving effect to all allocations of items of income, gain, loss or deduction not included in Net Profits and Net Losses and all capital contributions and distributions during such
period but before giving effect to any allocations of Net Profits or Net Losses for such period pursuant to Section 4.01 increased by (i) such Member’s share of “partnership minimum gain,” as determined pursuant to
Regulations Section 1.704(2)(d), as of the end of such Fiscal Year and (ii) such Member’s share of “partner nonrecourse debt minimum gain,” as determined pursuant to Regulations Section 1.704(2)(i), as of the end of
such Fiscal Year 
  

	 	11.64	Percentage Interest 

 The
term “Percentage Interest” means, with respect to each Member, the percentage set forth opposite such Member’s name on Exhibit A attached hereto under the column labeled “Percentage Interest,” as such
percentage shall be modified from time to time in accordance with this Agreement. The initial Percentage Interests of the Members shall be as follows: 
  

				
	 Paladin:
	  	70	%
	 Buckingham:
	  	30	%

  

	 	11.65	Permitted Transferees 

 The
term “Permitted Transferees” is defined in Section 6.02. 
  

	 	11.66	Person 

 The term
“Person” means and includes an individual, a corporation, a partnership, a limited liability company, a joint venture, a trust, an unincorporated organization and a government or any department or agency thereof, or any entity
similar to any of the foregoing. 
  

	 	11.67	Price Determination Notice 

 The term “Price Determination Notice” is defined in Section 7.03(a). 
  

	 	11.68	Preferred Return 

 The term
“Preferred Return” means, with respect to each Member, an amount calculated like interest and accrued on the balance standing from time to time in such Member’s Unrecovered Contribution Account at a simple interest rate equal
to eight and twenty-five one hundredths percent (8.25%) per annum, non-compounded, and determined on a cumulative basis. For financial and income tax reporting purposes, 

  

 -57- 

 
neither accrual nor payment of the Preferred Return shall be an expense of the Company nor be treated as a guaranteed payment under
Section 707(c) of the Code 
  

	 	11.69	Project 

 The term
“Project” is defined in Section 1.03. 
  

	 	11.70	Project Shortfall 

 The term
“Project Shortfall” means any and all cash required to satisfy any actual or projected financial requirements of the Company (not including, however, payment of Unpaid Preferred Return or any other obligations of the Company to the
Members). 
  

	 	11.71	Property Management Agreement 

 The term “Property Management Agreement” is defined in Section 2.12. 
  

	 	11.72	Property Manager 

 The term
“Property Manager” means the Person engaged or designated by the Company from time to time to manage and operate the Project. 
  

	 	11.73	Purchasing Member  

 The term
“Purchasing Member” is defined in Section 7.05. 
  

	 	11.74	Put Right 

 The term
“Put Right” is defined in Section 6.05(a). 
  

	 	11.75	Qualified Appraiser 

 The
term “Qualified Appraiser” means an appraiser who is not an Affiliate or Related Party of any Member and has not been an employee of any Member or any Affiliate or Related Party of the Member at any time, who is qualified to
appraise assets of the same type owned by the Company and is a member of the Appraisal Institute (or any successor association or body of comparable standing if such Institute is not then in existence), and who has held his or her certificate as an
M.A.I. or its equivalent for a period of not fewer than ten (10) years, and has been actively engaged in the appraisal of such projects immediately preceding his or her appointment under this Agreement. 
  

	 	11.76	REIT 

 The term
“REIT” is defined in Section 2.02(d). 
  

 -58- 

	 	11.77	Removal Event 

 The term
“Removal Event” is defined in Section 2.06(a). 
  

	 	11.78	Removal Notice 

 The term
“Removal Notice” is defined in Section 2.06(a). 
  

	 	11.79	Securities Act 

 The term
“Securities Act” is defined in Section 10.02. 
  

	 	11.80	Seller Loan 

 The term
“Seller Loan” is defined in Section 7.08. 
  

	 	11.81	Selling Member 

 The term
“Selling Member” is defined in Section 7.05 
  

	 	11.82	Target Capital Account 

 The
term “Target Capital Account” means, with respect to any Member as of any Adjustment Date, an amount (which may be either a positive or a deficit balance) equal to the amount such Member would receive as a distribution if all assets
of the Company as of such Adjustment Date were sold for cash equal to the Gross Asset Value of such assets, all the Company liabilities were satisfied to the extent required by their terms and the net proceeds were distributed pursuant to
Section 5.02, computed after the capital contributions have been made for the period ending on such Adjustment Date. 
  

	 	11.83	Tax Matters Partner 

 The
term “Tax Matters Partner” is defined in Section 9.04. 
  

	 	11.84	Threshold Return 

 The term
“Threshold Return” means, with respect to each Member, aggregate cash distributions pursuant to Section 5.01 and Section 5.02 which would produce an 11.5% IRR to such Member on all Capital Contributions made
by such Member. 
  

	 	11.85	Third-Party Offer Notice 

 The term “Third-Party Offer Notice” is defined in Section 7.04(b). 
  

	 	11.86	Third-Party Purchase Price 

 The term “Third-Party Purchase Price” is defined in Section 7.02. 
  

 -59- 

	 	11.87	Transfer 

 The term
“Transfer” is defined in Section 6.01. 
  

	 	11.88	Treasury Regulation 

 The
term “Treasury Regulation” means any proposed, temporary, or final federal income tax regulation promulgated by the United States Department of the Treasury as heretofore and hereafter amended from time to time (or any corresponding
provisions of any superseding revenue law or regulation). 
  

	 	11.89	Unanimous Written Consent 

 The term “Unanimous Written Consent” means a written consent executed by at least one representative of each Member. 
  

	 	11.90	Unpaid Preferred Return 

 The
term “Unpaid Preferred Return” means, (i) with respect to Paladin and as of any specified date, the Preferred Return accrued through such date, decreased by the amount of money and the agreed upon net fair market value of any
property distributed by the Company to Paladin pursuant to Sections 5.01(a) and 5.02(a) and (ii) with respect to Buckingham and as of any specified date, the Preferred Return accrued through such date, decreased by the amount of money
and the agreed upon net fair market value of any property distributed by the Company to Buckingham pursuant to Sections 5.01(b) and 5.02(c). 
  

	 	11.91	Unrecovered Contribution Account 

 The term “Unrecovered Contribution Account” means (i) with respect to Paladin, the amount of money or the agreed upon fair market value of any property contributed (or deemed contributed) by Paladin to the capital of
the Company pursuant to Section 3.01, Section 3.02, Section 3.03 and Section 6.05, as the case may be (net of liabilities secured by such contributed property that the Company is considered to assume
or take subject to pursuant to Section 752 of the Code), and decreased by the amount of money and the agreed upon fair market value of any property (net of liabilities secured by such distributed property that Paladin is considered to
assume or take subject to under Section 752 of the Code) distributed by the Company to Paladin pursuant to Section 5.02(b) and (ii) with respect to Buckingham, the amount of money or the agreed upon fair market value of any
property contributed (or deemed contributed) by Buckingham to the capital of the Company pursuant to Section 3.01, Section 3.02 and Section 3.03, as the case may be (net of liabilities secured by such contributed
property that the Company is considered to assume or take subject to pursuant to Section 752 of the Code), and decreased by (A) the aggregate amount of purchase price paid to Buckingham by Paladin for all Designated Put Interests
purchased by Paladin pursuant to Section 6.05 and (B) the amount of money and the agreed upon fair market value of any property (net of liabilities secured by such distributed property that Buckingham is considered to assume or take
subject to under Section 752 of the Code) distributed (or deemed distributed) by the Company to Buckingham pursuant to Section 5.02(d) and Section 6.05. 
 [Signatures Commence on Next Page] 
  

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

							
	“Paladin”
	
	PRIP 3700, LLC, a Delaware limited liability company
		
	By:	 	Paladin Realty Income Properties, L.P., a Delaware limited partnership
			
		 	By:	 	Paladin Realty Income Properties, Inc., a Maryland corporation, its general partner
				
		 		 	By:	 	/s/ James R. Worms
		 		 	Name:	 	James R. Worms
		 		 	Title:	 	President and Chief Executive Officer

 [Signatures Continue on Next Page] 
  

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 [Signatures Continued From Previous Page] 
  

			
	“Buckingham”
	
	BUCKINGHAM SPRINGHURST, LLC,
an Indiana limited liability company
		
	By:	 	/s/ Bradley B. Chambers
		 	Bradley B. Chambers, its sole member

  

 -62-

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