Document:

Assignment and Assumption of Purchase Agreement

 Exhibit 10.2 

ASSIGNMENT AND ASSUMPTION 

OF PURCHASE AGREEMENT 

THIS ASSIGNMENT AND ASSUMPTION OF PURCHASE AND SALE AGREEMENT (this “Assignment”) is entered into as
of September 24, 2013 (the “Effective Date”), by and between ALLEN HARRISON DEVELOPMENT, LLC, a Texas limited liability company (“Assignor”) and GGT AHC FAIRFIELD TX, LLC, a Delaware limited
liability company (“Assignee”). 
 RECITALS: 

A.         Assignor and CPG HOUSTON HOLDINGS, LLC, a Texas limited
partnership (“Seller”) are parties to a certain Purchase and Sale Agreement, dated effective as of March 4, 2013, as amended (“PSA”), concerning the purchase and sale of certain real estate located in Orlando,
Orange County, Florida, which is more particularly described in the PSA. 

B.         Assignor and Assignee are “Affiliates” (as defined in
Section 18.2 of the PSA). 
 C.         Pursuant to Article XVIII of the PSA,
Assignor desires to assign all of its rights, title and interest to the PSA to Assignee pursuant to this Assignment, and Assignee desires to assume all such rights, title and interest. 

NOW THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by each of the parties, the parties agree as follows: 

1.         Assignment and Assumption. Assignor shall and hereby does
assign, transfer, and convey unto Assignee, all right, title, interest, and obligations of Assignor in, under and to the PSA and Assignee shall and does hereby assume and agree to keep, observe, and perform all of the covenants, conditions, terms,
provisions, obligations, and liabilities accruing or arising under the PSA. 

2.         General Provisions. This Assignment shall be binding on and
inure to the benefit of the parties and their respective successors and assigns. Assignor shall remain liable for all unperformed obligations and unsatisfied liabilities of Assignee under the PSA. This Assignment shall be governed by, subject to and
construed in accordance with the laws of the State of Texas. 
  

SIGNATURES APPEAR ON FOLLOWING PAGE. 

  

 IN WITNESS WHEREOF, the undersigned have caused this Assignment to be executed
and delivered by their duly authorized representatives as of the Effective Date. 
  

					
	 ASSIGNOR:
	  		  	 ASSIGNEE:

			
	 ALLEN HARRISON DEVELOPMENT,

LLC, a Texas limited liability company
	  		  	 GGT AHC FAIRFIELD TX, LLC, a

Delaware limited liability company
  

By:  AHC FAIRFIELD OPERATOR,

LLC, a Texas limited liability company,

Operating Member

			
	 By:  /S/ Paul
Forbes                                

 
 Printed:  Paul
Forbes                              

 
 Title:    Managing
Member                      
	  		  	 By:  /S/ Paul
Forbes                                    

 
 Printed:  Paul
Forbes                                  

 

Title:    Manager                 
                         

  
 2Limited Liability Company Agreement

 Exhibit 10.3 
  

LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 GGT AHC FAIRFIELD
TX, LLC 

 LIMITED LIABILITY 

COMPANY AGREEMENT OF 
 GGT
AHC FAIRFIELD TX, LLC 
 A DELAWARE LIMITED LIABILITY COMPANY 

TABLE OF CONTENTS 
  

							
	 	  	 	  	Page	 
		
	 ARTICLE 1. DEFINITIONS
	  	 	2	  
	            1.1	  	 Definitions
	  	 	2	  
	            1.2	  	 Other Defined Terms
	  	 	8	  
	            1.3	  	 Exhibits
	  	 	9	  
		
	ARTICLE 2. THE COMPANY	  	 	9	  
	            2.1	  	 Organization
	  	 	9	  
	            2.2	  	 Name of Company
	  	 	9	  
	            2.3	  	 Purpose of Company
	  	 	9	  
	            2.4	  	 Principal and Registered Office
	  	 	9	  
	            2.5	  	 Further Assurances
	  	 	9	  
	            2.6	  	 Expenses of Formation and Syndication
	  	 	9	  
	            2.7	  	 No Individual Authority
	  	 	10	  
	            2.8	  	 Business Opportunities
	  	 	10	  
	            2.9	  	 Neither Responsible for Other’s Commitments
	  	 	10	  
	            2.10	  	 Affiliates
	  	 	11	  
	            2.11	  	 Operations in Accordance With the Act: Ownership
	  	 	11	  
		
	ARTICLE 3. TERM	  	 	11	  
	            3.1	  	 Term
	  	 	11	  
		
	ARTICLE 4. CAPITAL CONTRIBUTIONS OF THE MEMBERS	  	 	11	  
	            4.1	  	 Capital Contributions of the Members
	  	 	11	  
	            4.2	  	 No Other Contributions
	  	 	12	  
	            4.3	  	 No Interest Payable
	  	 	12	  
	            4.4	  	 No Withdrawals
	  	 	12	  
	            4.5	  	 Additional Capital Contributions.
	  	 	12	  
		
	ARTICLE 5. MEMBER LOANS	  	 	14	  
	            5.1	  	 Member Loans
	  	 	14	  
	            5.2	  	 Payment of Member Loans
	  	 	15	  
		
	ARTICLE 6. MANAGEMENT OF THE COMPANY	  	 	15	  
	            6.1	  	 Management
	  	 	15	  
	            6.2	  	 Major Decisions
	  	 	18	  
	            6.3	  	 Bank Accounts
	  	 	22	  
	            6.4	  	 Annual Budgets
	  	 	22	  
	            6.5	  	 Insurance
	  	 	23	  
	            6.6	  	 Consultation Regarding the Project
	  	 	23	  
	            6.7	  	 Termination of Delegation of Authority to AHC as Operating Member
	  	 	23	  
	            6.8	  	 Development
	  	 	25	  

  
 i 

							
	            6.9	  	 Management Agreement
	  	 	25	  
	            6.10	  	 Contracts with Affiliates
	  	 	25	  
	            6.11	  	 Indemnification of Managing Member and Operating Member
	  	 	25	  
	            6.12	  	 Leasing Guidelines
	  	 	26	  
		
	ARTICLE 7. BOOKS AND RECORDS, AUDITS, TAXES, ETC.	  	 	26	  
	            7.1	  	 Books; Statements
	  	 	26	  
	            7.2	  	 Where Maintained
	  	 	27	  
	            7.3	  	 Audits
	  	 	27	  
	            7.4	  	 Objections to Statements
	  	 	27	  
	            7.5	  	 Tax Returns
	  	 	27	  
	            7.6	  	 Tax Matters Partner
	  	 	28	  
	            7.7	  	 Tax Policy
	  	 	28	  
	            7.8	  	 Section 754 Election
	  	 	28	  
	            7.9	  	 Capital Accounts
	  	 	28	  
		
	ARTICLE 8. ALLOCATIONS	  	 	29	  
	            8.1	  	 Allocation of Net Income and Net Loss
	  	 	29	  
	            8.2	  	 Loss Limitation
	  	 	29	  
	            8.3	  	 Minimum Gain Chargebacks and Nonrecourse Deductions
	  	 	29	  
	            8.4	  	 Qualified Income Offset
	  	 	30	  
	            8.5	  	 Curative Allocations
	  	 	30	  
	            8.6	  	 Code Section 704(b) Allocations
	  	 	31	  
	            8.7	  	 Other Allocation Provisions
	  	 	31	  
	            8.8	  	 Distributions of Nonrecourse Liability Proceeds
	  	 	31	  
	            8.9	  	 Information as to Allocation of Debt
	  	 	31	  
	            8.10	  	 Taxable Year; Fiscal Year
	  	 	31	  
		
	ARTICLE 9. DISTRIBUTIONS AND ALLOCATIONS	  	 	31	  
	            9.1	  	 Percentage Interests in Company
	  	 	31	  
	            9.2	  	 Certain Definitions
	  	 	31	  
	            9.3	  	 Operating Cash Flow Distributions
	  	 	33	  
	            9.4	  	 Extraordinary Cash Flow Distributions
	  	 	34	  
	            9.5	  	 Loss of Promoted Interest
	  	 	34	  
		
	ARTICLE 10. ASSIGNMENT AND OFFER TO PURCHASE	  	 	35	  
	            10.1	  	 Transfers
	  	 	35	  
	            10.2	  	 Permitted Transfers
	  	 	35	  
	            10.3	  	 Assumption by Assignee
	  	 	35	  
	            10.4	  	 Amendment of Certificate of Formation
	  	 	36	  
	            10.5	  	 Other Assignments Void
	  	 	36	  
	            10.6	  	 Intentionally Deleted
	  	 	36	  
	            10.7	  	 Buy-Sell
	  	 	36	  
	            10.8	  	 Provisions Generally Applicable to Sales
	  	 	37	  
	            10.9	  	 Intentionally Deleted
	  	 	40	  
		
	ARTICLE 11. DISSOLUTION OR BANKRUPTCY OF A MEMBER	  	 	40	  
	            11.1	  	 Dissolution or Merger
	  	 	40	  
	            11.2	  	 Bankruptcy, etc.
	  	 	40	  

  
 ii 

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

  
 iii 

 TABLE OF EXHIBITS 

 

			
	 Exhibit A        
	  	 Members’ Percentage Interests

		
	 Exhibit B
	  	 Description of Land

		
	 Exhibit C
	  	 Development Agreement

		
	 Exhibit D
	  	 Project Budget

		
	 Exhibit E
	  	 Pre-Development Costs

  
 iv 

 LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 GGT AHC FAIRFIELD
TX, LLC 
 This Limited Liability Company Agreement of GGT AHC FAIRFIELD TX, LLC (this “Agreement”) is
entered into and shall be effective as of the 24th day of September, 2013, by and between AHC FAIRFIELD OPERATOR, LLC, a Texas limited liability company (“AHC”), and GGT FAIRFIELD TX
HOLDINGS, LLC, a Delaware limited liability company (“CNL”), pursuant to the provisions of the Delaware Limited Liability Company Act (the “Act”). AHC and CNL are sometimes referred to herein, collectively, as the
Members and individually as a Member. 
 R E C I T A L S 

WHEREAS, GGT AHC FAIRFIELD TX, LLC (the “Company”) was formed on August 8, 2013, pursuant to the
Delaware Limited Liability Company Act by filing a Certificate of Formation filed with the Secretary of State of the State of Delaware (the “Certificate of Formation”). 

WHEREAS, reference is hereby made to that certain Purchase and Sale Agreement with an effective date of March 4, 2013, by
and between Allen Harrison Development, LLC, a Texas limited liability company, as purchaser (“Purchaser”), and CPG Houston Holdings, L.P., a Texas limited partnership, as seller (“Property Seller”) (as the same may
have been amended, modified or supplemented, the “Land Contract”), whereby Purchaser has agreed to purchase from Property Seller, and Property Seller has agreed to sell to Purchaser, inter alia, the real property located off
of Cypresswood Drive and Mason Road in Cypress, Harris County, Texas (together with all personal property, fixtures, rights and intangibles associated therewith, the “Property”), as more particularly described in Exhibit B
hereto. 
 WHEREAS, the Members desire to form the Company for the purposes of acquiring the Property and constructing a
Class A rental apartment community on the Property with two hundred ninety-four (294) units, together with all amenities and related improvements (the “Project”), and leasing and managing the Project, but in any case the
Property is intended to be held by the Company for investment and/or held for appreciation and subsequent sale. 
 WHEREAS,
contemporaneously with the execution of this Agreement, Purchaser has assigned its interest under the Land Contract with regard to the acquisition of the Property under the Land Contract to the Company. 

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

  
 1 

 ARTICLE 1. DEFINITIONS 

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

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

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

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

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

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

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

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

Adjusted Capital Account. As defined in Section 8.2. 

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

  
 2 

 Agreement. This Limited Liability Company Agreement, including all
Exhibits and Schedules attached hereto, as it may be amended from time to time. 
 AHC. As described in the first
paragraph above. 
 AHC Maximum Initial Capital. As defined in Section 4.1. 

AHC Principals. Means, collectively, Paul Forbes and Will Harper 

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

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

Business Day. Any weekday that is not an official holiday in the State of Texas. 

Capital Account. As described in Section 7.9. 

Capital Budget. As described in Section 6.4. 

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

Cause. As defined in Section 6.7. 

Certificate of Formation. As described in the Recitals above. 

CFG. As defined in Section 10.1. 

CNL. As described in the first paragraph above. 

CNL Consent. The written consent of CNL. 

CNL Decision. As defined in Section 6.2(b). 

CNL Entities. As defined in Section 2.8(b). 

CNL Maximum Initial Capital. As defined in Section 4.1. 

CNL Price. As defined in Section 10.6(c). 

CNL Sale Deposit. As described in Section 10.6(d)(ii). 

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

  
 3 

 Code. The Internal Revenue Code of 1986, as amended from time to time, and
any successor thereto. 
 Company. GGT AHC Fairfield TX, LLC, a Delaware limited liability company. 

Company Financing. Financing that is provided to the Company. 

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

Completion. As defined in the Development Agreement. 

Construction Contract. As defined in the Development Agreement. 

Construction Loan. As defined in the Development Agreement. 

Construction Management Fee. As described in Section 6.8. 

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

Development Fee. As described in Section 6.8. 

Economic Capital Account. With respect to any Member, such Member’s Capital Account as of the date of
determination, after crediting to such Capital Account any amounts that the Member is deemed obligated to restore under Treasury Regulations Section 1.704-2. 

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

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

Entire Interest. Means, for each Member, such Member’s entire equity interest in the Company (which shall include
any and all interests in the Company held by persons that acquired their interests from such Member) and all unpaid Member Loans made by such Member. 

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

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

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

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

  
 4 

 GAAP. United States generally accepted accounting principles applied on a
consistent basis. 
 Initial Capital Contributions. As defined in Section 4.1. 

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

Land Contract. As defined in the Recitals above. 

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

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

Loan Closing. The closing of the Construction Loan. 

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

Major Decision. As defined in Section 6.2(a). 

Management Agreement. As set forth in Section 6.9. 

Managing Member. CNL. 

  
 5 

 Member Consent. The written consent of each of CNL and AHC. 

Member Loan. Any loan made by any Member or any Affiliate of a Member to the Company pursuant to Article 5. 

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

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

Members. The parties to this Agreement, any Person to whom the parties to this Agreement may convey an interest in the
Company pursuant to Article 10, and any Person subsequently admitted to the Company as a substitute or additional Member in accordance with the terms of this Agreement, and “Member” means any of the Members. The initial Members are
CNL and AHC. 
 Membership Interest. The entire ownership interest of a Member in the Company, including the
Member’s Capital Account, interest in profits and losses, the right to receive distributions from the Company and the rights, if any, to participate in the management of the Company or consent to any actions by the Company as set forth in this
Agreement. 
 Minor Field Changes. As defined in the Development Agreement. 

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

Nonrecourse Deductions. As described in Section 8.3(b) 

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

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

Operating Budget. As described in Section 6.4. 

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

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

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

Out-of-Pocket Costs. Any costs or expenses incurred by the Managing Member, Operating Member or other Member or their
Affiliates acting within the scope of their respective authority under this Agreement (including travel costs and FedEx/mail charges), provided that such costs or expenses are necessary or beneficial for the Company’s business as described in
Section 2.3. 

  
 6 

 Percentage Interest. As described in Section 9.1. 

Permitted Leases. Leases of apartment units within the Project entered into pursuant to the approved Leasing Guidelines
in the ordinary course of operations as an apartment community. 
 Person. The term “person” includes
individuals, partnerships, limited liability companies, corporations, trusts, and other associations. 
 Plans and
Specifications. Plans and specifications for the Project prepared by the Developer and approved by Member Consent. 

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

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

Project Budget. The budget approved by Member Consent for the acquisition, construction, development, marketing and
financing of the Project. The initial Project Budget is attached hereto as Exhibit D. 
 Property. As
described in the second paragraph of the Recitals. 
 Property Closing. The closing of the Company’s acquisition
of the Property pursuant to the Land Contract. 
 Property Management Agreement. As described in Section 6.9.

 Property Manager. Allen Harrison Property Management, LLC, a Texas limited liability company, and any successor
thereto selected by Member Consent or, to the extent a Member has the unilateral right pursuant to this Agreement to select such successor, as selected by such Member. 

Proposer. As described in Section 10.7(a). 

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

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

  
 7 

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

REIT. A real estate investment trust as defined pursuant to Sections 856 through 860 of the Code and the Treasury
Regulations promulgated thereunder. 
 Responding Member’s Buy-Sell
Deposit. As described in Section 10.7(b)(ii). 
 Sale Notice. As defined in Section 10.6(c). 

Sale Proposal. As defined in Section 10.7(a). 

Stated Price. As defined in Section 10.6(c). 

Target Balance. With respect to any Member as of the close of any period for which allocations are made under
Article 8, the amount such Member would receive (or be required to contribute) in a hypothetical liquidation of the Company as of the close of such period, assuming for purposes of such hypothetical liquidation: (i) a sale of all of the
assets of the Company at prices equal to their then book values (as maintained by the Company for purposes of, and as maintained pursuant to, the capital account maintenance provisions of Treasury Regulations Sections 1.704-1(b)(2)(iv)); and
(ii) the distribution of the net proceeds computed under clause (i) above to the Members pursuant to Section 9.4 (after the payment of all actual Company indebtedness, and any other liabilities related to the Company’s assets,
limited, in the case of nonrecourse liabilities, to the book value of the collateral securing or otherwise available to satisfy such liabilities). 

Tax Matters Partner. As described in Section 7.6. 

Treasury Regulations. The Income Tax Regulations, including Temporary Regulations, promulgated under the Code, as such
regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 

Unreturned Additional Capital. As described in Section 9.2(e). 

Unreturned Initial Capital. As described in Section 9.2(g). 

Unreturned Operating Return. As described in Section 9.2(f). 

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

The definitions in this Section 1.1 shall apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by
the phrase “,without limitation,”. 
 1.2       Other Defined Terms.
Capitalized terms not defined in Section 1.1 shall have the meanings set forth in the other sections of this Agreement. 

  
 8 

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

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

2.2       Name of Company. The name of the Company will be “GGT AHC Fairfield TX,
LLC”, and the Company’s business will be conducted under the name “The Remington Fairfield”. The Managing Member may change the name of the Company or the name under which the Company’s business is conducted at any time,
provided that AHC shall have the right to approve the use of any name that includes the word “AHC”, “Allen”, “Harrison” or any variation thereof. 

2.3       Purpose of Company. The purpose of the Company is to directly or indirectly
carry on the business of acquiring, owning, developing, operating, managing, improving, repairing, renting, mortgaging, refinancing, selling, conveying and otherwise dealing with the Property and all activities reasonably related thereto. In
furtherance of such purpose, the Company shall have all such powers as may be exercised by a limited liability company under the laws of the State of Delaware. Except as permitted by this Section 2.3, the Company shall not engage in any other
business. The Company is authorized to take any legal measures which will assist it in accomplishing its purpose or benefit the Company. 

2.4       Principal and Registered Office. The principal office of the Company shall be
450 South Orange Avenue, Orlando, Florida 32801, or such other place as the Managing Member may from time to time determine. Notification of any change in the Company’s principal place of business or principal office shall be given to the other
Members. The Company may change its principal office and or may maintain additional offices and places of business in other locations selected by the Managing Member and, to the extent required by law and/or deemed necessary or desirable by the
Managing Member, the Company shall qualify as a foreign limited liability company in any other jurisdiction in which it conducts business. The name and address of the registered agent of the Company for service of process in the State of Delaware is
National Registered Agents, Inc., 160 Greentree Drive, Suite 101, Dover, Delaware 19904. The Company’s registered agent and the Company’s registered and principal offices may be changed by the Managing Member in compliance with the
relevant requirements of the Act. 
 2.5       Further Assurances. The parties hereto
will execute whatever certificates and documents, and will file, record and publish such certificates and documents, which are required to operate a limited liability company under the Act. The parties hereto will also execute and file, record and
publish, as required, such certificates and documents as they, upon advice of counsel, may deem necessary or appropriate to comply with other applicable laws governing the operation of a limited liability company. 

2.6       Expenses of Formation and Syndication. The expenses incurred by each Member in
connection with its consideration of an investment in the Company and its acquisition of a membership interest in the Company, including the fees of any attorney, financial advisor or other consultant, shall be paid and/or reimbursed by the Company
as set forth in the Project Budget and approved by Member Consent. 

  
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 2.7       No Individual Authority. Except as
otherwise expressly provided in this Agreement, no Member, acting alone, shall have any authority to act for, undertake or assume any obligations or responsibility on behalf of any other Member or the Company. 

2.8       Business Opportunities. 

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

(b)       AHC covenants and agrees that for so long as it is a Member, in the event it proposes
to undertake any additional apartment development opportunities within a three (3) miles radius of the Project (each an “Opportunity”), CNL and Affiliates of CNL Financial Group, LLC (collectively, “CNL Entities”) shall have
the right of first offer to participate in any such Opportunity. AHC shall provide CNL with not less than thirty (30) days prior written notice of any such Opportunity. AHC and the CNL Entities shall have sixty (60) days to negotiate in
good faith the terms of such participation, and to the extent that the CNL Entities decline or fail to respond to such Opportunity within thirty (30) days after written notice thereof or the CNL Entities and AHC fail to come to agreement as to
the terms of such participation within sixty (60) days after such Opportunity is offered to CNL, utilizing such forms of limited liability company agreement and development agreement as previously agreed upon by and between AHC and CNL, but not
including the economic terms thereof, AHC shall not be required to continue to offer any CNL Entity the right to participate to any extent in such Opportunity. 

2.9       Neither Responsible for Other’s Commitments. Neither the Members nor the
Company shall be responsible or liable for any indebtedness or obligation of a particular Member incurred either before or after the execution of this Agreement, except as to those joint responsibilities, liabilities, debts or obligations incurred
pursuant to the terms of this Agreement, and each Member indemnifies and agrees to hold the other Member and the Company harmless from such personal obligations and debts, except as aforesaid. 

  
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 2.10       Affiliates. Any and all
activities to be performed by CNL hereunder may be performed by officers or employees of one or more Affiliates of CNL, provided that all actions taken by such persons on behalf of CNL in connection with this Agreement shall be binding upon CNL. Any
and all activities to be performed by AHC hereunder may be performed by officers or employees of one or more Affiliates of AHC, provided that all actions taken by such persons on behalf of AHC in connection with this Agreement shall be binding upon
AHC. 
 2.11       Operations in Accordance With the Act: Ownership. Except as
expressly set forth in this Agreement to the contrary, the rights and obligations of the Members and the administration, operation and termination of the Company shall be governed by the Act, as it may be amended. The interest of each Member in the
Company shall be personal property for all purposes. All real and other property owned by the Company shall be deemed owned by the Company as a company, and no Member, individually, shall have any ownership interest in such property. 

ARTICLE 3. TERM 

3.1       Term. Unless extended by Member Consent, the term of the Company shall continue
until the first to occur of the following: 
 (a)       December 31, 2063; 

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

(d)       The occurrence of any event or circumstance that would cause the entry of a decree of
judicial dissolution of the Company under the Act unless, following a Member Consent to cure such events, the events giving rise to such judicial dissolution are cured within the time, if any, set for such cure, and the Company is reinstated under
the Act. 
 ARTICLE 4. CAPITAL CONTRIBUTIONS OF THE MEMBERS 

4.1       Capital Contributions of the Members. Upon or following the execution of this
Agreement, CNL and AHC shall contribute their pro rata shares (based upon their respective Percentage Interests) of all amounts payable by the Company at the Property Closing and the Loan Closing, including amounts necessary to reimburse AHC
or Developer for its Pre-Development Costs. Such initial capital contribution by CNL shall constitute a portion of “CNL’s Initial Capital”. Such initial capital contribution by AHC (against which AHC may credit any portion of the
Development Fee that is assigned by Developer to AHC in accordance with the Development Agreement) shall constitute a portion of “AHC’s Initial Capital”. AHC’s Initial Capital and CNL’s Initial Capital shall collectively be
called the “Initial Capital Contributions”. Such contributions are reflected on Exhibit A attached hereto and shall be updated from time to time to reflect modifications to the Initial Capital Contributions and any additional
capital contributions, including contributions of Additional Initial Capital as required pursuant to Section 4.5(a). The amount of cash and the fair market value, as agreed to by 

  
 11 

 
Member Consent, of other property contributed by a Member shall be credited to such Member’s Capital Account. In no event shall the aggregate amount of CNL’s Initial Capital exceed
$8,806,000 without the express written approval of CNL (the “CNL Maximum Initial Capital”), and in no event shall AHC’s Initial Capital exceed $2,201,500 without the express written approval of AHC (the “AHC Maximum Initial
Capital”). The Members expressly agree that, to the extent the amount of the final Project Budget is hereafter reduced due to savings in the Construction Contract’s guaranteed maximum price, the Initial Capital Contributions of CNL and AHC
shall be reduced on a pro rata basis. Any Construction Cost Overruns (as defined in the Development Agreement) funded by Developer (a) shall not be treated as a contribution by Developer or AHC to the Company or in any manner construed so as to
increase AHC’s Capital Account or AHC’s Initial Capital under this Agreement, (b) shall not be treated as Additional Capital of AHC under this Agreement, (c) shall not be treated as a Member Loan by AHC to the Company, and
(d) shall not entitle Developer or AHC to any interest on or refund of any amounts so advanced or to any other rights or remedies against the Company or any Member. 

4.2       No Other Contributions. Except as expressly required by this Article 4, neither
Member shall have any obligation to make any capital contribution to the Company nor to advance any funds thereto. 

4.3       No Interest Payable. No Member shall receive any interest on any of its Capital
Contributions except for such Member’s Operating Return. 
 4.4       No
Withdrawals. No Capital Contribution shall be withdrawn except as hereinafter expressly stipulated. 

4.5       Additional Capital Contributions. 

(a)       When the Operating Member determines in its good faith business judgment that capital
is needed by the Company to pay for (A) costs provided in the Project Budget that have not been previously paid by the Members and that are not being paid for out of Company Financing or (B) costs of development or construction of the
Project in excess of the Project Budget which costs have been approved by Member Consent (collectively, the “Additional Initial Capital”), then the Operating Member shall cause notice to be delivered to the Members setting forth the
purposes and amounts of such Additional Initial Capital. Each such notice delivered to the Members shall constitute an “Additional Initial Capital Funding Notice” pursuant to this Section 4.5(a). All amounts funded by AHC
pursuant to this Section 4.5(a) shall constitute a portion of AHC’s Initial Capital. All amounts funded by CNL pursuant to this Section 4.5(a) shall constitute a portion of CNL’s Initial Capital. Within ten (10) Business
Days following the date of delivery of an Additional Initial Capital Funding Notice (in each case, the “Additional Initial Capital Request Date”), CNL and AHC shall contribute to the Company, in proportion to their Percentage
Interests, as Additional Initial Capital, the amount so required, up to the CNL Maximum Initial Capital Contribution, in the case of CNL, and up to the AHC Maximum Initial Capital Contribution, in the case of AHC. 

(b)       If the Operating Member determines in its good faith business judgment that
additional funds (other than amounts required to be funded under Section 4.5(a) above) are required by the Company to fund any Operating Shortfall or reimburse the Members or their 

  
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 Affiliates for their Out of Pocket Costs incurred on behalf of the Company (other than Out of
Pocket Costs related to or arising out of the development and construction of the Project to the extent AHC is responsible for such Out of Pocket Costs under the Development Agreement), then Operating Member shall cause notice to be delivered to the
Members setting forth the purposes and amounts of such additional funds. Each such notice delivered to the Members shall constitute an “Additional Funding Notice”. All amounts funded by CNL pursuant to this Section 4.5(b) shall
constitute a portion of CNL’s Additional Capital, and all amounts funded by AHC pursuant to this Section 4.5(b) shall constitute a portion of AHC’s Additional Capital. Within ten (10) Business Days following the date of delivery
of an Additional Funding Notice (in each case, the “Additional Capital Request Date”), CNL and AHC shall contribute to the Company, in proportion to their respective Percentage Interests, as Additional Capital, the amount so
required. 
 (c)       Any and all funds contributed by the Members pursuant to this
Section 4.5 shall be credited to their Capital Accounts in the Company and shall constitute Additional Capital (in the case of contribution of Additional Capital) or Additional Initial Capital (in the case of contribution of Additional Initial
Capital), as the case may be, for all purposes of this Agreement. 
 (d)       If a Member
(the “Failing Member”) fails to contribute an amount equal to the entire amount required to be contributed by it pursuant to Section 4.5(a) or 4.5(b) within the applicable period after the Additional Initial Capital Request
Date or the Additional Capital Request Date, as applicable, and if any other Member (the “Non-Failing Member”) makes its required contribution within such applicable time period pursuant to Section 4.5(a) or 4.5(b) and so
notifies any Failing Member (the “Notice of Intention”), and such Failing Member fails to fully remedy its failure to contribute such required capital within ten (10) days after receiving such Notice of Intention, then one or
more of the following may occur, at the option and election of the Non-Failing Member, which election shall be specified prospectively in the Notice of Intention: (i) the Non-Failing Member may require
the Company to repay immediately to the Non-Failing Member the Capital Contribution(s), if any, it made pursuant to Section 4.5(a) or 4.5(b) pursuant to the same notice; (ii) the Non-Failing Member may, but need not, make an additional
Capital Contribution to the Company not in excess of the amount such Failing Member failed to contribute pursuant to Section 4.5(a) or 4.5(b), in which case (y) the balance of the Non-Failing
Member’s Capital Account shall be increased by $1.15 for each $1.00 not funded by such Failing Member in accordance with the terms of this Section 4.5 in response to the applicable Additional Capital Funding Notice or Additional Initial
Capital Funding Notice (which adjustment shall be treated as Additional Capital contributed by such Non-Failing Member), as applicable and (z) each of such Failing Member’s distribution percentages pursuant to Sections 9.4(e) and 9.4(f)
shall be reduced by one percent (1%) for every $20,000 of Additional Capital or Additional Initial Capital such Failing Member failed to contribute to the Company pursuant to this Section 4.5 and in turn, each of the Non-Failing
Member’s Percentage Interest and the Non-Failing Member’s distribution percentages under Sections 9.4(e) and 9.4(f), respectively, shall be increased by the equivalent percentage; (iii) the Non-Failing Member may cause the Company to
be dissolved, in which case such Non-Failing Member will be the Liquidating Member and will have the right to cause the Property and other Company assets to be sold or otherwise liquidated in accordance with Section 13.2; or (iv) the Non-Failing Member may elect to loan to such Failing Member (“Failing Member Loan”), which Failing Member Loan shall be disbursed to the Company and treated as an additional Capital Contribution to
the Company made by such Failing Member, an amount equal to the amount such Failing Member 

  
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failed to contribute pursuant to Section 4.5(a) or 4.5(b), which Failing Member Loan made by the Non-Failing Member to the Failing Member shall bear interest at an annual rate (compounded
annually) of one thousand basis points (1,000 bps) above one month LIBOR from the date of the advance until such Failing Member Loan is paid to the Non-Failing Member in full. Payments with respect to such Failing Member Loan shall be made to the
Non-Failing Member out of distributions that would otherwise have been payable to such Failing Member under this Agreement until fully repaid (which payments will be applied first to accrued interest on the outstanding principal balance and then to
the outstanding principal balance of such Failing Member Loan). Any such Failing Member Loan shall be nonrecourse to such Failing Member, secured by such Failing Member’s entire interest in the Company, and shall be satisfied only out of
distributions as provided above in this Section 4.5(d). Such Failing Member Loan may be prepayable at any time or from time to time and, if not sooner paid in full, shall mature upon the earlier of (A) the liquidation of the Company and
(B) the fifth anniversary thereof. Each Non-Failing Member shall have the right, but not the obligation, to make a portion of any additional Capital Contribution (as contemplated by Section 4.5(d)(ii)) or Failing Member Loan (as
contemplated by Section 4.5(d)(iv)) in an amount proportionate to its respective Percentage Interest. 

(e)       The Members acknowledge and agree that, to the extent Developer assigns any portion
of the Development Fee or Construction Management Fee to AHC in accordance with the Development Agreement, AHC may credit such assigned portion of the Development Fee or Construction Management Fee against the amounts of AHC’s Additional
Capital, Additional Initial Capital or any Additional Capital that AHC is required to contribute to the Company from time to time. The Members further acknowledge and agree that the Company shall not actually pay any such credited portion of the
Development Fee or Construction Management Fee to Developer or AHC, and the credit given to AHC shall be deemed payment of such portion of the Development Fee or Construction Management Fee. 

ARTICLE 5. MEMBER LOANS 

5.1       Member Loans. No Member shall be obligated to lend any money to the Company. If
the Members determine that it is necessary or appropriate for the Company to borrow money from any of the Members, then the Operating Member shall cause notice (a “Loan Request Notice”) to be sent to each of the Members, setting
forth the amount proposed to be borrowed from the Members and the purpose of the proposed Member Loan. Each of the Members shall have the right, but not the obligation, to lend to the Company the amount to be borrowed as set forth in such Loan
Request Notice, multiplied by its respective Percentage Interest, which shall be exercisable by notice given to the Company and the other Members within 45 days of receipt of the Loan Request Notice from the Operating Member or by such earlier date
as shall have been determined to be appropriate by the Operating Member, as set forth in the Loan Request Notice. If any of the Members does not lend the full amount set forth for it in the Loan Request Notice, the other Members shall have the
option to lend the balance. If any Member(s) shall lend any money to the Company, such Member Loan shall not constitute a Capital Contribution by such Member(s) or entitle it to any increase in its share of the distributions of the Company. Each
Member Loan shall be an obligation of the Company, provided that no Member shall be personally obligated to repay the Member Loan and the Member Loan shall be payable or collectible only out of the assets of the Company. All such

  
 14 

 
Member Loans shall be on commercially reasonable terms as determined by Member Consent and shall bear interest at a rate of 2% per annum above the prime rate (or the average thereof if
published as a range) (in each case as published from time to time in The Wall Street Journal (or if The Wall Street Journal is no longer published, the prime rate as published in a publication of national circulation selected by
Member Consent)), compounded annually, adjusted as of the date of each prime rate change published, but in no event shall the rate of interest exceed the highest rate permitted by law for the obligor which, if exceeded, could subject the lending
Member to penalties or forfeiture of all or any part of the interest or principal associated with such Member Loan. 

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

6.1       Management. 

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

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

(i)       managing the Company’s operations so as to preserve the REIT status of the CNL
owner and/or prevent the imposition of a prohibited transaction tax; provided, however, that to the extent that managing the Company’s operations in such manner causes the Company to incur additional non de minimus expenses, CNL shall bear
responsibility for such expenses; 

  
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 (ii)       the continuation of the Company’s
valid existence as a limited liability company under the laws of State of Delaware; 

(iii)       the acquisition, development, maintenance, preservation and operation of the
Project in accordance with the provisions of the approved Plans and Specifications, this Agreement and applicable Requirements; 

(iv)       procurement of such insurance as may be appropriate or necessary for the prudent
development and operation and management of the Property as set forth in this Agreement; 

(v)       intentionally deleted; 

(vi)       establishment, maintenance and drawing upon checking, savings and other accounts in
the name of the Company; 
 (vii)       oversight and management of litigation filed on
behalf of or against the Company as set forth in this Agreement; including providing to the other Members any notices received by the Managing Member or its Affiliates regarding any violations of Requirements and any notices received with respect to
the Construction Loan or any other third party loan; 
 (viii)       maintenance of all
accounting and tax records for the Company as set forth in this Agreement, including maintaining all tax books, tax records and all other financial statements and records in accordance with GAAP; provided, however, that in the event accounting and
tax records are maintained in a manner necessary for REIT purposes and to the extent that maintaining the accounting and tax records in such manner causes the Company to incur additional non de minimus expenses, CNL shall bear responsibility for
such expenses; 
 (ix)       preparation or oversight of the Company’s independent
accountants in the preparation of all federal, state and local tax returns of the Company; 

(x)       the delivery of the Company financial statements as set forth in this Agreement,
prepared in accordance with GAAP and performance or causing performance of the Company’s financial reporting requirements as set forth in this Agreement; 

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

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

  
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 (xiii)     monitoring and oversight of the Property Manager,
and delivery to the Members such reports and information as are required of the Property Manager pursuant to the Property Management Agreement; 

(xiv)     monitoring and management of Company’s debt compliance, cash management functions and
annual independent audit, including maintenance of a system of cash management to comply with lender cash management requirements (this obligation shall include payment of vendors, maintenance of bank accounts, performance of bank reconciliations,
the making of intercompany rents payments and the making of debt service payments); 
 (xv)    
maintenance of Capital Accounts for the Members of the Company in accordance with the terms of this Agreement; 

(xvi)     implementation of Major Decisions and CNL Decisions as approved and on the terms set forth by
Member Consent or CNL Consent, as applicable; 
 (xvii)     making all distributions of Operating Cash
Flow and Extraordinary Cash Flow in accordance with the terms of this Agreement; 
 (xviii)    
maintaining a system of internal controls necessary for Sarbanes-Oxley certifications, including delivering or causing to be delivered a SAS 70 Type II report for the Property, or such other documentation and testing of internal controls as is
deemed necessary by the Managing Member; provided, however, that to the extent that the requirements of this provision causes the Company to incur additional non de minimus expenses, CNL shall bear responsibility for such expenses; and 

(xix)     any other action that the Managing Member or the Operating Member is expressly authorized to
perform under the other provisions of this Agreement. 
 (c)       The Managing Member shall
have the right to delegate any of the above responsibilities and authority to any other Member of the Company as the Operating Member, subject to the acceptance by such Member of such delegation. The Managing Member hereby designates AHC as
Operating Member and delegates to AHC, subject to the right of the Managing Member to terminate such delegation in accordance with Section 6.7, the foregoing responsibilities, duties and authority of the Managing Member described in
subparagraphs (ii) through (xix) of Section 6.1(b). AHC hereby accepts such delegation by CNL as Managing Member and agrees that it shall perform as Operating Member the responsibilities and obligations delegated as part of such
delegation in accordance with the standard of care required under Section 6.1(b) of this Agreement as if it was the Managing Member of the Company and had all duties, responsibilities, authority and rights related to the Company and its Members
associated with such office of Managing Member. CNL acknowledges that AHC shall have no responsibilities or obligations to perform the duties of Managing Member of the Company except to the extent set forth herein. 

  
 17 

 6.2       Major Decisions. 

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

(i)       Adopt, modify or supplement the Plans and Specifications, except for Minor Field
Changes as permitted under the Development Agreement; 
 (ii)       Enter into any contract
or transaction with, or pay any amount to, a Member or any Affiliate of a Member, except for Out-of-Pocket Costs incurred on behalf of the Company or as expressly provided in this Agreement, the Project Budget, an Operating Budget or a Capital
Budget; 
 (iii)       Authorize or enter into any agreement, transaction or action on behalf
of the Company that is unrelated to its purpose set forth in Section 2.3, including acquiring any additional real property; 

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

(v)       Modify the Project Budget, other than to reallocate demonstrated line item savings to
demonstrated line item overruns, so long as each Member shall be given notice thereof promptly following reallocation of amounts from the contingency line item. Notwithstanding the foregoing, it shall be a Major Decision to reallocate any savings in
the Project Budget line item for AHC’s or CNL’s legal and third party costs and expenses, for marketing and initial leasing expenses or for loan interest; 

(vi)       Voluntarily dissolve or liquidate the Company; 

(vii)     Authorize or effect a merger or consolidation of the Company with or into one or more entities;

 (viii)     Make any call for capital contributions from the Members, except as expressly authorized
pursuant to Article IV; 
 (ix)       Terminate the Property Management Agreement or replace
the Property Manager or amend, modify, supplement, assign or grant any material consents or waivers under the Property Management Agreement or any other property management agreement for the Property; provided, however, that if the Property Manager
is AHC or an Affiliate of AHC and is in default beyond any applicable cure period under the terms of the Property Management Agreement, only the consent of CNL shall be required to terminate the Property Management Agreement or replace the Property
Manager or otherwise amend, modify, supplement or grant any material consents or waivers under the terms of the Property Management Agreement. 

  
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 (x) Except for the Construction Loan, cause the Company to incur any Company
Financing or modify, supplement or refinance any Company Financing, provided that when the Construction Loan matures (whether at its stated maturity, upon acceleration or otherwise), the Operating Member with Member Consent shall have the authority
to affirmatively cause the Company to obtain or attempt to obtain replacement financing in at least the amount of the outstanding balance of the Construction Loan; provided, however that upon the maturity of the Construction Loan or any other
then-existing Company Financing that has been guaranteed in whole or in part by AHC or any of the AHC Principals or any Affiliate thereof, if new Company Financing, the proceeds of which will be used to repay the Construction Loan or such other
guaranteed matured Company Financing in full, has been presented, in good faith, by the Operating Member and is not approved by Member Consent, then the Operating Member shall be authorized, without Member Consent, to pursue from a third-party
lender such replacement Company Financing, in an amount equal to the then-outstanding principal of the Construction Loan or other matured Company Financing, on commercially reasonable prevailing market terms favorable to the Company. It is
understood that non-recourse financing which would neither adversely affect the Company’s ability to dispose of the Property nor require the Company to pay a prepayment premium shall be deemed most favorable, and financing which would neither
adversely affect the Company’s ability to dispose of the Property nor require the Company to pay a prepayment premium and which requires guaranties solely from AHC and/or any of the AHC Principals shall also be deemed favorable; 

(xi)       Confess a judgment against the Company in excess of $50,000, file or fail to contest
any bankruptcy, seek or permit a receivership, make an assignment for the benefit of creditors or take any similar action for the benefit of creditors; 

(xii)       Possess any Company property or assign the rights of the Company in specific
Company property for other than a Company purpose; 
 (xiii)     Cause the Company to loan funds to any
Person or issue any guaranty or indemnity, except pursuant to Company Financing; 
 (xiv)     Commingle
Company funds with the funds of any other Person; 
 (xv)       Modify the Development Fee or
otherwise modify or otherwise amend, modify, supplement, assign or grant any material consents or waivers under the Development Agreement or any other development agreement for the Property; provided, however, that if the Developer is AHC or an
Affiliate of AHC and is in default beyond any applicable cure period under the terms of the Development Agreement, only the consent of CNL shall be required to terminate the Development Agreement, replace or permit the replacement of the Developer
or otherwise amend, modify, supplement or grant any material consents or waivers under the terms of the Development Agreement; 

(xvi)     Amend this Agreement or the Certificate of Formation, except that the Certificate of Formation
may be amended by the Managing Member to the extent required by law or to effect changes solely of a ministerial nature which do not adversely affect the rights or increase the obligations of a Member; 

  
 19 

 (xvii)   Issue any interest in the Company or admit any Person as an
additional member in the Company, provided, that CNL may effectuate any sale, assignment, gift, pledge, hypothecation, encumbrance or other transfer of CNL’s interest in the Company as set forth in Section 10.1; 

(xviii)   Determine whether and to what extent the Property should be repaired or restored following casualty or
condemnation, other than as required by Company Financing; 
 (xix)    Appoint any substitute Managing
Member or delegate any responsibilities of Managing Member other than as set forth in Section 6.1(b); 

(xx)       Fail to carry insurance required by this Agreement, or the Construction Loan, or
modify any such insurance; 
 (xxi)     Threaten, file or settle any claim involving the Company, other
than eviction proceedings in the ordinary course of business, insured tort claims and claims involving amounts less than $25,000, individually or in the aggregate for related claims; 

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

(xxiii) Determine any actions to be taken to cure any material default under or material violation of any Requirement other
than a default under this Agreement; 
 (xxiv)   Designate a bank for the deposit of funds of the Company, except
as required under the Construction Loan; or 
 (xxv)     Formation of a subsidiary as may be necessary
for the prudent development of the Project and the operation and Management of the Company’s business and affairs. 

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

(i)       Adopt an Operating Budget or a Capital Budget or, except for the reimbursement of
Out-of-Pocket Costs or as expressly provided below in items (ii) and (iii) immediately below, cause the Company to incur any expense not provided for in the Project Budget, an Operating Budget or a Capital Budget; 

(ii)       Modify any Operating Budget, except to allow annual variances in line items that do
not exceed in the aggregate in any Fiscal Year the greater of (i) $50,000, and (ii) ten percent (10%) of the line item and that, when taken together with all other variances in any Operating Budget in such Fiscal Year, do not increase
the total amount provided in the applicable Operating Budget by more than one hundred ten percent (110%) in the aggregate; 

  
 20 

 (iii)      Modify any Capital Budget, except to
allow an annual aggregate variance not in excess of $50,000 after taking all line item variances into account; and 

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

CNL will use good faith efforts to consult with AHC on matters constituting CNL Decisions; provided, however that CNL shall
have no obligation to implement or otherwise be subject to any information or input offered by AHC in connection therewith. 

(c)       The Operating Member shall use good faith efforts to provide each other Member with
not less than thirty (30) days’ advance notice of any proposed Major Decision or CNL Decision, provided, however, in the event of an emergency or other circumstance that does not reasonably permit such advance notice, the Operating Member
may call upon the Members to respond within a shorter, reasonable period of time (but in no event less than two (2) Business Days’ advance notice). Member Consent or CNL Consent, as applicable, may be by written consent or may occur
pursuant to a meeting by conference call with the results confirmed in writing, and such written consent or written confirmation may be delivered in the form of facsimile, electronic mail, telex, telecopy or telegraph. An agenda for each meeting
shall be prepared in advance by the Members in consultation with each other. Approval by Member Consent or CNL Consent, as applicable, of the matter being considered shall be binding on the Company and the Members for all matters. Upon the request
of any of the Members, the Operating Member shall cause written minutes to be prepared of all actions taken by such members at meetings and shall deliver a copy thereof to each of the Members within seven (7) days after the date of the meeting.

 (d)       To the extent that the Operating Member shall have the authority to cause any
Major Decisions to occur and be implemented without the consent of any Member, such authority shall be limited as follows: 

(i)       With respect to Section 6.2(a)(xx), the Operating Member shall have the
authority to modify the insurance carried by the Company but shall not have the authority to cause the Company to fail to carry any insurance required by this Agreement, applicable law or any Company Financing, loan document or other agreement to
which the Company is a party. 
 (ii)       With respect to Section 6.2(a)(xxi), neither
the Managing Member nor the Operating Member shall have the authority without the consent of the other Member to threaten, file or settle any claim involving the other Member, but each shall have the authority, subject to the provisions of
Section 6.2(a)(xxi), to threaten, file or settle any claim involving such Member that does not involve the other Member. 

  
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 (iii)      With respect to
Section 6.2(a)(xxiv), the Operating Member’s authority to designate a bank for the deposit of Company funds shall be subject to Section 6.3 below. 

6.3       Bank Accounts. For so long as the Construction Loan remains outstanding, the
Company will maintain a separate bank account or accounts with the bank making the Construction Loan for the deposit and disbursement of all funds of the Company. Subject to the foregoing, the Company may thereafter maintain separate bank accounts
in such banks as the Members by Member Consent may designate or any Lender of the Company may require exclusively for the deposit and disbursement of all funds of the Company. All funds of the Company shall be promptly deposited in such accounts.
The Operating Member may designate representatives of Operating Member to be authorized signatories for such accounts from time to time, provided that a representative of AHC shall at all times be an authorized signatory on all Company bank accounts
without the requirement of any co-signatory for such accounts and all such signatories shall not authorize any expenditures from such accounts with respect to the Project that are not in accordance with the Project Budget and, if reasonably
determined to be prudent by CNL, all such signatories shall be insured by fidelity bonds on terms reasonably acceptable to CNL. 

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

  
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 6.5       Insurance. The Operating Member
shall cause the Company to obtain and maintain all such insurance as and when required under the Construction Loan and any other Company Financing. The Operating Member shall cause the Company to maintain such insurance coverages as are necessary to
protect the completed Project improvements and the interest of all of the Members and at no time shall insurance maintained by the Company be less than the applicable amount required under applicable law or any loan documents relating to the
Construction Loan or any other Company Financing. 
 6.6       Consultation Regarding the
Project. CNL, as Managing Member, directly or through its agents or Affiliates, notwithstanding the delegation of authority granted to the Operating Member, shall have the right to consult with and provide comments to the Operating Member on
significant issues relating to the management and business of the Company and development of the Project, and, if requested by CNL, each of the Company and the Operating Member will make available its officers and representatives of its accountants
to meet with CNL or its agents or Affiliates from time to time during each year at mutually agreeable times for such consultation, to review the management, progress and conditions (financial and otherwise) of the Project and the management of the
Company. Notwithstanding anything to the contrary in this Agreement, the rights of CNL to provide such consultation shall include: (a) the right to discuss, and provide advice with respect to, the Company’s business (including the
management of the Project) with the Operating Member and the Company’s officers, employees, managers and agents and the right to consult with and advise the Operating Member on matters materially affecting the Company (including the Project);
(b) the right to submit business proposals or suggestions relating to the Company (including the Project) to the Operating Member and the Company’s management from time to time with the requirement that one or more members of the Operating
Member’s management discuss such proposals or suggestions with CNL or its agent or Affiliate, as applicable, within a reasonable period after such submission and the right to call a meeting with the Operating Member’s management in order
to discuss such proposals or suggestions; and (c) the right (i) to visit the Company’s business premises and the Project during normal business hours, (ii) to receive financial statements, operating reports, budgets or other
financial reports of the Company (including those relating to the Project) on a regular basis describing the financial performance, significant proposals and other material aspects of the Company (including the Project), (iii) to examine the
books and records of the Company (including those relating to the Project) and (iv) to request such other information relating to the Company (including the Project) at reasonable times and intervals in light of the Company’s normal
business operations concerning the general status of the Company’s business, financial condition and operations (including the Project) but only to the extent such information is reasonably available to the Company and in a format consistent
with how the Company maintains such information. 
 6.7       Termination of Delegation of
Authority to AHC as Operating Member. 
 (a)       CNL shall have the right, without the
concurrence of AHC, to terminate the delegation of authority of, and remove AHC as, Operating Member at any time with or without Cause. Solely in the event of termination by CNL and removal of AHC as Operating

  
 23 

 
Member for Cause, AHC shall cease to have any rights to approve or consent to any matters under this Agreement. For the avoidance of doubt, any termination by CNL and removal of AHC as Operating
Member without Cause shall not affect AHC’s rights as a Member under this Agreement. 

(b)       For purposes of this Agreement, termination of AHC as Operating Member for
“Cause” shall mean termination due to any one or more of the following: (a) any material breach or default by AHC in its obligations as Operating Member as delegated by the Managing Member under this Agreement, which breach, default
or misrepresentation, if the same may be cured by the payment of money, has not been cured within five (5) days after written notice to AHC, or if the same may not be cured by the payment of money, has not been cured within twenty
(20) days after written notice to AHC (provided, however, that (i) if the breach or default has a material adverse effect on the company, the Property or CNL, AHC shall have an additional thirty (30) days to cure such breach if such
breach is not curable within such twenty (20) day period, so long as AHC has commenced cure within such initial twenty (20) day period and continues to prosecute to completion with diligence and continuity the curing thereof within such
additional thirty (30) day period, and (ii) if the breach or default does not have a material adverse effect on the Company, the Project or CNL and if AHC has commenced and continues to prosecute to completion with diligence and continuity
the cure thereof within such initial twenty (20) day period, then AHC shall have as much time as is commercially reasonable for curing such breach or default, provided, however, that in no event shall AHC have greater than one hundred twenty
(120) days in the aggregate from such written notice to so cure); (b) any act by AHC beyond the scope of its authority under this Agreement; or (c) in the event of any fraud, gross negligence or willful misconduct by AHC against CNL
or the Company; provided, however, that prior to Completion, CNL shall also have the sole and exclusive right, without the concurrence of AHC, to terminate the delegation of authority of, and remove AHC as, Operating Member if
(i) in CNL’s reasonable business judgment, the Project will not be completed within thirty (30) days after the Completion Date (as defined in the Development Agreement) (except in the case of an Event of Force Majeure as defined in
the Development Agreement) or (ii) Developer is terminated as developer pursuant to the terms of the Development Agreement, each of which shall constitute additional grounds for termination for Cause. Such removal and termination of authority
shall be effective upon delivery of written notice thereof to AHC, and CNL shall have the right to become, directly or through an Affiliate, or to appoint and delegate authority to, a substitute Operating Member who shall have such rights and
obligations of the Operating Member as may be delegated by the Managing Member. Following removal of AHC as Operating Member for Cause, AHC shall cease to have any rights to approve or consent to any matters under this Agreement. 

(c)       As a condition to terminating the delegation of authority of, and removing AHC as,
Operating Member without Cause, (i) CNL must cause the construction loan and any other Company Financing for which AHC or any AHC Affiliate has any personal liability to be paid in full and satisfied; and (ii) such removal shall in no form
or fashion affect AHC’s economic interest as a Member of the Company pursuant to this Agreement or the right of AHC to receive the Development Fee provided in the Development Agreement. Furthermore, in the event of removal of AHC as Operating
Member for Cause, such removal shall not in any form or fashion affect AHC’s economic interest as a member of the Company pursuant to this Agreement, unless such removal for cause is a result of one of the matters specified in Section 9.5
of this Agreement, and then the economic interest of AHC as a Member of the Company shall be effected by such removal, only to the extent provided in Section 9.5 below. 

  
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 6.8       Development. The Company shall
retain Developer as the developer for the Project, to act as the Company’s sole and exclusive agent to coordinate and supervise the management and administration of the development of the Project and the construction of the improvements
comprising the Project. On the date hereof, the Company and Developer shall enter into a Development Agreement in substantially the form set forth as Exhibit C attached hereto. The Developer will cause Completion of the Project for a price
set forth in the Development Agreement. The Developer, or a creditworthy entity acceptable to CNL, shall provide all guaranties required in connection with the Construction Loan, including a completion guaranty, cost guaranty and/or construction
warranty as required by CNL or the lender pursuant to the Construction Loan. As compensation for the Developer’s property development services, Company agrees to pay the Developer a development fee (the “Development Fee”) as
set forth in the Development Agreement. 
 6.9       Management Agreement. Upon
Completion, the Company will enter into a management agreement with the Property Manager to manage the Property (the “Property Management Agreement”), pursuant to which, as compensation for the services described therein, Property
Manager shall be paid a property management fee as set forth in the Property Management Agreement. Should the Property Management Agreement terminate for any reason, the Company will enter into an agreement or agreements for management of the
Property subject to, and in accordance with, the terms of Section 6.2. 
 6.10     Contracts
with Affiliates. Notwithstanding anything to the contrary, CNL shall have the sole and exclusive authority to enforce and/or exercise the rights of the Company, including consent and approval rights of the Company, under any contract with an
Affiliate of AHC, including the Company’s engagement of the Developer pursuant to Section 6.8. 

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

  
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 6.12     Leasing Guidelines. The Members shall
negotiate in good faith to develop and agree upon initial Leasing Guidelines for the initial operation of the Project as an apartment community following the execution of this Agreement and prior to the execution of any lease within the Project. The
Members shall negotiate in good faith to amend the Leasing Guidelines as may be necessary from time to time. All Leasing Guidelines shall be approved by Member Consent. 

ARTICLE 7. BOOKS AND RECORDS, AUDITS, TAXES, ETC. 

7.1       Books; Statements. In addition to the establishment and maintenance of Capital
Accounts pursuant to Section 7.9, the Company shall keep all books and records required under the Act and such other books and records as shall be determined by the Managing Member. All financial statements of the Company shall be prepared in
accordance with GAAP, consistently applied. 
 Following the Effective Date: 

(a)       following the commencement of at least one lease for any portion of the Project,
Operating Member shall prepare or cause to be prepared a statement setting forth the calculation of Operating Cash Flow for each period of time, but not less often than monthly, at the end of which period the Company is to make periodic
distributions of Operating Cash Flow as provided in Section 9.3, and the Company shall furnish a copy of such cash flow statement to each Member within twenty-one (21) days after the end of such period; 

(b)       no later than the seventh
(7th) day after each month-end, Operating Member shall prepare and submit or cause to be prepared and submitted to each Member, an unaudited balance sheet of the Company dated as of the end
of the preceding month, together with a profit and loss statement and statement of cash flows as of the end of such month and for the portion of the fiscal year then ended and a statement of change in each Member’s capital for the month; 

(c)       no later than the seventh
(7th) day of each January, April, July and October during the term of this Agreement, Operating Member shall prepare and submit or cause to be prepared and submitted to each Member, an
unaudited balance sheet of the Company dated as of the end of the preceding month, together with a profit and loss statement for the three calendar month period next preceding with a cumulative calendar year accrual basis profit and loss statement
to date, and a statement of change in each Member’s capital for the quarter and year to date; and 

(d)       As soon as practicable following the end of each fiscal year of the Company, an
annual audit shall be conducted by independent certified public accountants of recognized standing, selected by CNL in accordance with Section 7.6 and retained by the Company, which accounting and/or audit shall cover the assets, properties,
liabilities and net worth of the Company, and its dealings, transactions and operations during such fiscal year, and all matters and things customarily included in such accountings and audits, and a full, detailed certified statement shall be
furnished to each Member within sixty (60) days after the end of such fiscal year, showing on an accrual basis the assets, liabilities, properties, net worth, profits, 

  
 26 

 
losses, net income, Operating Cash Flow, changes in the financial condition of the Company for such fiscal year and each Member’s capital in the Company, and, if applicable, a full and
complete report of the audit scope and audit findings in the form of a management audit report with an internal control memorandum. 

In its preparation of the financial statements set forth in this Section 7.1, the Operating Member shall maintain a
system of internal controls necessary to enable CNL to complete CNL’s Sarbanes-Oxley certifications, and shall deliver or cause to be delivered a SSAE 16 report for the Property if requested by CNL, or shall provide such other certification and
documentation and testing of internal controls as is deemed necessary by CNL; provided, however, that to the extent the preparation of SSAE 16 reports, or such other required certifications and documentation and testing of the Company’s
internal controls or the implementation of such additional or alternative internal controls of such testing causes the Company to incur additional non de minimus expenses, CNL shall bear responsibility for such expenses. 

7.2       Where Maintained. The books, accounts and records of the Company shall be at
all times maintained at the office of AHC or as required by applicable law and as otherwise specified in the Management Agreement or any successor management agreement in effect with respect to the Property from time to time, and available to the
other Members for review and copying. 
 7.3       Audits. In addition to the annual
audit of the Company as required under Section 7.1(d), any Member may, at its option and at its own expense, conduct internal audits of the books, records and accounts of the Company. Audits may be on either a continuous or a periodic basis or
both and may be conducted by employees of any Member, or an Affiliate of any Member, or by independent auditors retained by any Member. 

7.4       Objections to Statements. Following Completion, any Member shall have the right
to object to the statements described in Sections 7.1(a), 7.1(b) and 7.1(c) by giving notice to the other Members within 45 days after such statement is received by each Member indicating in reasonable detail the objections of such Member and the
basis for such objections. If any Member shall fail to give such notice within said 45-day period, such statement and the contents thereof shall, in the absence of fraud or willful misconduct by the other
Members or the independent certified public accountants preparing the statements, be deemed conclusive and binding upon such party so failing to give such notice subject, in the case of the statements provided for in Sections 7.1(a) and 7.1(b), to
the audit provided for in Section 7.1(c). Objections to any statement and any disputes concerning the findings of, and questions raised as the result of, audits of the Company’s books shall be settled by Member Consent. 

7.5       Tax Returns. The Company shall be treated and shall file its tax returns as a
partnership for Federal, state, municipal and other governmental income tax and other tax purposes and shall not take any action (including filing an election to be classified as a corporation for Federal income tax purposes) inconsistent with such
treatment. The Company shall prepare or cause to be prepared, on an accrual basis, all Federal, state and municipal partnership tax returns required to be filed. Unless otherwise determined by Member Consent, such tax returns shall be prepared by
independent certified public accountants selected pursuant to Section 7.6, who shall sign such returns as preparers. The Company shall submit (a) draft 

  
 27 

 
returns to each Member for review and approval no later than ninety (90) days after the close of the Company’s taxable year; and (b) final returns to each Member for review and
approval no later than forty-five (45) days prior to the extended due date of the returns. Each Member shall notify the other Member(s) upon receipt of any notice of tax examination of the Company by Federal, state or local authorities. 

7.6       Tax Matters Partner. CNL is hereby appointed the “Tax Matters
Partner” of the Company for all purposes pursuant to Sections 6221-6231 of the Code, with respect to operations conducted by the Company during the period that CNL is a Member. The Tax Matters Partner shall comply with the requirements of
Section 6221 through 6232 of the Code. The Tax Matters Partner shall have the authority, in its reasonable discretion, to select and appoint, from time to time, independent certified public accountants to prepare tax returns and annual audited
financial statements for the Company, which selection shall be approved by AHC, the expense of which shall be borne by the Company. 

7.7       Tax Policy. The Company shall make any and all tax accounting and reporting
elections and adopt such procedures as shall be approved by Member Consent. A Member shall be deemed to have consented to any tax elections made by the Tax Matters Partner if such Member shall not have objected in writing to such election as
reflected in the initial tax return reflecting such election within fifteen (15) days after such return is received by such Member, indicating in reasonable detail the objection of such Member and the basis for such objection. Any disputes over
tax elections shall be resolved by Member Consent. 
 7.8       Section 754
Election. At the request of a Member, the Company shall make and file a timely election under Section 754 of the Code (and a corresponding election under applicable state or local law) in the event of a transfer of an interest in the
Company permitted hereunder or the distribution of property to a Member to the extent that such election results in a positive basis adjustment to the Company’s property. Any Member or transferee first requesting an election hereunder shall
reimburse to the Company the reasonable out-of-pocket expenses incurred by the Company in connection with such election including any legal or accountants’ fees.
Thereafter, each transferee shall reimburse such expenses with respect to adjustments under Section 743 of the Code in the proportion which the interest of each transferee bears to the sum of the interests of all transferees. 

7.9       Capital Accounts. A separate capital account (each, a “Capital
Account”) shall be maintained for each Member in accordance with the rules of Treasury Regulations Section 1.704-1(b)(2)(iv), and this Section 7.9 shall be interpreted and applied in a manner consistent therewith. Whenever the
Company would be permitted to adjust the Capital Accounts of the Members pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(f) to reflect revaluations of Company property, the Company may so adjust the Capital Accounts of the
Members and the Company shall so adjust the Capital Accounts of the Members to the extent necessary to comply with the requirements of Code Section 704(b) and the Treasury Regulations thereunder. In the event that the Capital Accounts of the
Members are adjusted pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(f) to reflect revaluations of Company property, (i) the Capital Accounts of the Members shall be adjusted in accordance with Treasury Regulations
Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain or loss, as computed for book purposes, with respect to such property, (ii) the Members’ distributive shares

  
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of depreciation, depletion, amortization and gain or loss, as computed for tax purposes, with respect to such property shall be determined so as to take account of the variation between the
adjusted tax basis and book value of such property in the same manner as under Code Section 704(c) and (iii) the amount of upward and/or downward adjustments to the book value of the Company property shall be treated as income, gain,
deduction and/or loss for purposes of applying the allocation provisions of Article 8. In the event that Code Section 704(c) applies to Company property, the Capital Accounts of the Members shall be adjusted in accordance with Treasury
Regulations Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain and loss, as computed for book purposes, with respect to such property. 

ARTICLE 8. ALLOCATIONS 

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

8.2       Loss Limitation. Net loss allocated pursuant to Section 8.1 shall not
exceed the maximum amount of net loss that can be allocated without causing or increasing a deficit balance in a Member’s Adjusted Capital Account. A Member’s “Adjusted Capital Account” balance shall mean such
Member’s Capital Account balance increased by such Member’s obligation to restore a deficit balance in its Capital Account, including any deemed obligation pursuant to the penultimate sentences of Treasury Regulations Sections
1.704-2(g)(1) and 1.704-2(i)(5), and decreased by the amounts described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6). In the event that one but not
all of the Members would have a deficit balance in its Adjusted Capital Account as a consequence of an allocation of net loss pursuant to Section 8.1 in excess of the amount, if any, permitted under the first sentence of this Section 8.2,
the limitation set forth in this Section 8.2 shall be applied by allocating 100% of the remaining net loss to the other Members, in proportion to such positive balances, until the Adjusted Capital Account of such other Member or Members is
zero. 
 8.3       Minimum Gain Chargebacks and Nonrecourse Deductions. Notwithstanding
any other provision of this Agreement: 
 (a)       Company Minimum Gain Chargeback.
In the event there is a net decrease in Company Minimum Gain during a fiscal year, the Members shall be allocated items of income and gain in accordance with Treasury Regulations Section 1.704-2(f). For purposes of this Agreement, the term
“Company Minimum Gain” shall have the meaning for “partnership minimum gain” set forth in Treasury Regulations Section 1.704-2(b)(2), and any Member’s share of Company Minimum Gain shall be determined in
accordance with Treasury Regulations Section 1.704-2(g)(1). This Section 8.3(a) is intended to comply with the minimum gain chargeback requirement of Treasury Regulations Section 1.704-2(f) and
shall be interpreted and applied in a manner consistent therewith. 

  
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 (b)       Nonrecourse Deductions.
Nonrecourse Deductions shall be allocated to the Members pro rata in accordance with their Initial Capital Percentages. For purposes of this Agreement, the term “Nonrecourse Deductions” shall have the meaning set forth in Treasury
Regulations Section 1.704-2(b)(1). This Section 8.3(b) is intended to comply with Treasury Regulations Section 1.704-2(e) and shall be interpreted and applied in a manner consistent therewith.

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

8.5       Curative Allocations. The allocations set forth in Sections 8.3 (a),
(b) and (c) and 8.4 (the “Regulatory Allocations”) are intended to comply with the requirements of Treasury Regulations Sections 1.704-1(b) and
1.704-2. Notwithstanding any other provisions of this Article 8 (other than the Regulatory Allocations), the Regulatory Allocations shall be taken into account as provided for in the following two
sentences. Income, gain, loss and deduction shall be reallocated to the extent that such reallocation causes the net aggregate amount of allocations of income, gain, deduction and loss to each Member to be equal to or more closely approximate the
net aggregate amount of such items that would have been allocated to each such Member if the Regulatory Allocations had not occurred. This Section 8.5 shall be interpreted and applied in such a manner and to such extent as is reasonably
necessary to eliminate, as quickly as possible, permanent economic distortions that would otherwise occur as a consequence of the Regulatory Allocations in the absence of this Section 8.5. 

  
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 8.6       Code Section 704(b)
Allocations. The allocation provisions contained in this Article 8 are intended to comply with Code Section 704(b) and the Treasury Regulations promulgated thereunder. 

8.7       Other Allocation Provisions. Any elections or decisions relating to the
allocations of Company items of income, gain, loss, deduction or credit shall be made by the Tax Matters Partner in a manner that, in the Tax Matters Partner’s discretion, reasonably reflects the arrangement between the Members pursuant to this
Agreement. 
 8.8       Distributions of Nonrecourse Liability Proceeds. If the Company
makes a distribution to any Member that may be allocable to an increase in Company Minimum Gain pursuant to Treasury Regulations Section 1.704-2(h), then the Company shall, to the extent permitted by
Treasury Regulations Section 1.704-2(h), minimize the amount of such distribution that is allocable to an increase in Company Minimum Gain. 

8.9       Information as to Allocation of Debt. AHC agrees that indebtedness of the
Company shall be allocated among the Members as required under Code Section 752 and the Treasury Regulations promulgated thereunder. 

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

ARTICLE 9. DISTRIBUTIONS AND ALLOCATIONS 

9.1       Percentage Interests in Company. The percentage interest of the respective
Members in the Company shall be: 
  

							
	 CNL:
	  	 	80	% 	 	
			
	 AHC:
	  	 	20	% 	 	

 The percentage interest of each Member, which is subject to the preferred and priority
rights provided for herein and adjustment pursuant to the terms of Section 4.5(d), is hereinafter called such Members’ “Percentage Interest.” 

9.2       Certain Definitions. The following terms shall have the following meanings when
used herein: 
 (a)       “Operating Cash Flow” shall mean, for any period,
the net income or loss of the Company for such period (excluding Extraordinary Cash Flow), as determined in accordance with GAAP, consistently applied and adjusted as follows or as otherwise determined by Member Consent: 

(i)       Additions. There shall be added to such net income or subtracted from such
loss (1) the amount charged for depreciation, amortization or any other deduction not involving a cash expenditure, (2) the amount of Capital Contributions to the Company pursuant 

  
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to (A) Section 4.5(d)(ii) and (B) Section 4.5(d)(iv), (3) the proceeds of short-term borrowings of the Company in the ordinary
course of business (including Member Loans) and interest received on non-cash consideration received by the Company pursuant to a Major Capital Event, (4) any amount by which cash reserves, which were
previously established pursuant to the Operating Cash Budget prior to the accounting period in order to retain sufficient working capital in the Company or to properly reserve for actual or contingent obligations of the Company or improvements to
the Property, have been reduced (other than through the payment of expenses) and (5) the proceeds of business interruption insurance. 

(ii)       Deductions. There shall be subtracted from such net income or added to such
loss (1) the amount of payments made on account of principal upon mortgage loans secured by Company property and the amount of current interest and principal then due and payable with respect to any other loans made to the Company, including
Member Loans, (2) funds disbursed for capital expenditures, leasing commissions, tenant finish or any other similar expenses that are required to be capitalized and (3) any amount to establish or increase cash reserves pursuant to a
determination by Member Consent that such reserve and the amount thereof is necessary or appropriate in order to retain sufficient working capital in the Company or to properly reserve for other actual or contingent obligations of the Company or
improvements to the Property. Unless the terms of the Member Loans provide otherwise, amounts paid in respect of Member Loans shall be paid pro rata to the Members if more than one of the Members have outstanding Member Loans in accordance
with the total principal and interest amounts of Member Loans then outstanding. Without limiting the foregoing, all Member Loans made by a particular Member shall be repaid in the chronological order in which they were made. 

(b)       “Extraordinary Cash Flow” shall mean the cash receipts of the
Company from a Major Capital Event as reduced by (A) the costs and expenses incurred by the Company in connection with such Major Capital Event, including title, survey, appraisal, recording, escrow, transfer tax and similar costs, brokerage
expense and attorneys, and other professional fees, and amounts spent on reconstruction or repair, (B) funds deposited in reserves pursuant to a determination by Member Consent that each such reserve and the amount thereof is required or
appropriate to provide for actual or contingent obligations of the Company, amounts expected therefrom for capital improvements to the Property, and (C) funds applied to pay or prepay any indebtedness of the Company (including interest and
principal payable on Member Loans in accordance with their terms) in connection with such Major Capital Event. Unless the terms of the Member Loans provide otherwise, amounts paid in respect of Member Loans shall be paid pro rata to the
Members if more than one of the Members have outstanding Member Loans in accordance with the total principal and interest amounts of Member Loans then outstanding. Without limiting the foregoing, all Member Loans made by a particular Member shall be
repaid in the chronological order in which they were made. To the extent that any amount received pursuant to a Major Capital Event has been set aside as a reserve pursuant to item (B) above in this definition and the Members thereafter
determine by Member Consent that all or a portion of such amount is not required for such purposes, such amount shall be included in Extraordinary Cash Flow when the Members determine by Member Consent that it is no longer necessary or appropriate
to retain such amount as a reserve. Any principal payments on non-cash consideration received pursuant to a Major Capital Event, including promissory notes or deferred payment obligations, shall be deemed to
be included in Extraordinary Cash Flow when received in cash by the Company; provided, however, that, notwithstanding the terms of Section 

  
 32 

 
9.2(a)(i)(3) as determined by Member Consent, such noncash assets may be distributed in accordance with Percentage Interest in kind to the Members, in lieu of cash, treating the total fair market
value of such non-cash assets at the date of distribution as Extraordinary Cash Flow. 

(c)       “Operating Return” shall mean a cumulative return, compounded
monthly, equal to ten and one-half percent (10.5%) per annum on each Member’s Unreturned Additional Capital and/or Unreturned Initial Capital, as the case may be. One-twelfth of the annual Operating Return payable for the current fiscal
year of the Company shall accrue at the time of each monthly distribution of Operating Cash Flow (or at the time that such distribution would be made if Operating Cash Flow were available for distribution). 

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

(e)       “Unreturned Operating Return” shall mean, for each Member, its
Operating Return computed with respect to Unreturned Initial Capital or Unreturned Additional Capital, as the case may be, reduced, in the case of the Operating Return computed with respect to Unreturned Initial Capital by distributions of Operating
Return made to such Member pursuant to Sections 9.3(a) and 9.4(a) hereof and reduced, in the case of the Operating Return computed with respect to Unreturned Additional Capital, by distributions of Operating Return pursuant to Sections 9.3(b) and
9.4(b) hereof. 
 (f)       “Unreturned Initial Capital” shall mean, for
each Member, its Initial Capital, reduced by any distributions of Extraordinary Cash Flow made to such Member pursuant to Section 9.4(c) hereof. 

(g)       “Cash Flow” shall mean, collectively, Operating Cash Flow and
Extraordinary Cash Flow. 
 9.3       Operating Cash Flow Distributions. Subject to the
terms of Sections 4.5(d) and 10.8(d) hereof, the Company shall distribute Operating Cash Flow for each quarter during the term of the Company in which there is Operating Cash Flow (such distribution to be made quarterly, within twenty-one (21) days after the end of each such quarter) to the Members, as follows: 

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

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

(c)       Thereafter, to the Members pro rata in accordance with their respective
Percentage Interests. 

  
 33 

 9.4       Extraordinary Cash Flow
Distributions. Subject to the terms of Section 4.5(d) hereof, the Company shall distribute Extraordinary Cash Flow (within five (5) Business Days following a Major Capital Event generating Extraordinary Cash Flow) to the Members, as
follows: 
 (a)       First, to the Members, pari passu, in accordance with the outstanding
balances of the Members’ respective Unreturned Operating Return on Unreturned Initial Capital, until each Member’s Unreturned Operating Return balance on Unreturned Initial Capital has been reduced to zero; 

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

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

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

(e)       Fifth, eighty-five percent (85%) to the Members in proportion to their
respective Percentage Interests and fifteen percent (15%) to AHC, until CNL achieves a twenty percent (20%) IRR on its aggregate Capital Contributions; and 

(f)       Thereafter, thirty-five percent (35%) to the Members in proportion to their
respective Percentage Interests and sixty-five percent (65%) to AHC. 
 9.5       Loss
of Promoted Interest. Notwithstanding the provisions of Section 9.4, AHC shall no longer have the right to distributions with respect to its so-called “promoted interest” as such distributions are set forth in Sections 9.4(e) and
9.4(f) (and AHC shall instead receive distributions of Extraordinary Cash Flow under such Sections based on its Percentage Interest) if Developer is terminated as developer pursuant to the terms of the Development Agreement, or upon violation by AHC
of any of the restrictions on transfer as set forth in Section 10.1 (but subject to the permitted transfers as set forth in Section 10.2); provided that AHC shall have the same notice and cure rights with respect to such violation as
described in Section 6.7(a). 
 Upon the loss of AHC’s promoted interests set forth in Sections 9.4(e) and
9.4(f), such Sections shall be deemed revised to provide that all distributions thereunder shall be made to the Members pro rata in accordance with their Percentage Interests, and AHC shall no longer be entitled to any distributions under
Section 9.4(e) and 9.4(f) in excess of a distribution based on its Percentage Interest. Without limiting the foregoing, if CNL terminates and removes AHC as the Operating Member without Cause in accordance with Section 6.7, such
termination and removal shall not cause AHC to lose the promoted interests set forth in Sections 9.4(e) and 9.4(f).  

  
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 ARTICLE 10. ASSIGNMENT AND OFFER TO PURCHASE 

10.1       Transfers. Except as expressly provided in this Article 10, no Member, or any
assignee or successor in interest of a Member, may sell, assign, give, pledge, hypothecate, encumber or otherwise transfer, or permit the transfer of, all or any portion of its interest in the Company, or in any Member Loans made by it, or in all or
any part of the assets of the Company, directly or indirectly, whether by operation of law or otherwise. Any purported sale, assignment, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of a Member’s interest in
the Company or any Member Loans made by it not otherwise expressly permitted by this Article 10 shall be null and void and of no force or effect whatsoever. A sale, assignment, gift, pledge, hypothecation, encumbrance or other transfer by CNL of all
or a portion of its Entire Interest in the Company to an Affiliate of CNL Financial Group, LLC (“CFG”) from time to time, or in connection with any corporate merger, acquisition or other combination or the sale or transfer of all or
substantially all of its assets shall be a transfer permitted under this Article 10, and CNL shall not be required to obtain the consent of, nor offer all or any portion of its Entire Interest to be so sold, assigned, given, pledged, hypothecated,
encumbered or transferred to any other Member. No transfers of any direct or indirect interest in CNL, or of CNL’s interest in the Company among funds sponsored or advised by CFG or its Affiliates, shall be restricted in any way. CNL’s
right to transfer its Entire Interest as expressly permitted in this Section 10.1 shall include, without limitation, its Managing Member rights. 

10.2       Permitted Transfers. Notwithstanding any other provision of this Agreement, so
long as any one of the AHC Principals owns a controlling voting equity interest in AHC, then (a) in the event of the death of any individual member of AHC, such individual’s interest may be transferred to the personal representative of
such individual or as otherwise disposed of pursuant to the will of such individual or under the laws of intestate succession, and (b) any individual member of AHC or may freely transfer all or any part of that member’s interest either
(A) to another AHC Principal or (B) to a trust, family limited liability company, family partnership or similar estate planning or wealth preservation entity established by the transferring member for the benefit of such member, such
member’s spouse, one or more of such member’s immediate family or any combination thereof. 

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

  
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 As a condition to any assignment of all or any portion of an Entire Interest, the
selling Member shall obtain such consents as may be required from third parties, if any, or waivers thereof. The other Members shall use reasonable efforts to cooperate with the selling Member in obtaining such consents or waivers. 

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

 10.5       Other Assignments Void. 

  (a)       Without limiting the terms of Section 10.1, but subject to
Section 10.2, any Member, other than CNL, that is an incorporated or unincorporated business entity and any permitted assignee of all or any portion of the Entire Interest of such business entity, shall not permit, without prior CNL Consent,
which consent may be withheld in the sole and uncontrolled discretion of CNL, the direct or indirect admission of any new equity or other beneficial interest holder in such entity, or the issuance or assignment to any Person, who is not now an
equity or other beneficial interest holder, or an Affiliate of such an equity interest holder, in such entity, of any kind of interest whatsoever in such entity. If a transfer is permitted under this subsection, such assignee shall pay all expenses
incurred by the Company in connection with the transfer. 
   (b)       Further
without limiting the terms of Section 10.1, but subject to Section 10.2, any Member, other than CNL, that is an incorporated or unincorporated business entity and any permitted assignee of all or any portion of the Entire Interest of such
business entity, shall not permit, without prior CNL Consent, which consent may be withheld in the sole and uncontrolled discretion of CNL, the issuance, sale, assignment, gift, pledge, hypothecation or encumbrance of any interest in such entity or
in any equity or other beneficial interest holder in such entity or any such assignee or any instruments convertible into any interest in such entity or in any equity or other beneficial interest holder in such entity or any such assignee or the
transfer of any right to vote any equity or other beneficial interest in such entity or any such assignee. 

10.6       Intentionally Deleted. 

10.7       Buy-Sell. 

  (a)       Any time after the date that is twenty-four (24) months after
Completion of the Project, either AHC or CNL may make an offer to purchase the other’s Entire Interest or sell its Entire Interest for such purchase price (which shall be payable in cash at the closing of any such transaction) and on such terms
as such Member (the “Proposer”) may propose in a notice (the “Sale Proposal”) to the other Member (the “Responding Member”). The Sale Proposal shall include a statement as to the total purchase
price for the Property that formed the basis for the stated purchase price for each Entire Interest. 

  
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   (b)       Within forty-five
(45) days after receiving a copy of the Sale Proposal, the Responding Member shall notify the Proposer: 

     (i)       that the Responding Member is agreeable to the sale of
its Entire Interest to the Proposer in accordance with the terms set forth in the Sale Proposal; or 

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

  (c)       The purchase and sale pursuant to Section 10.7(b)(i) or
(ii) shall take place within forty-five (45) days following the Responding Member’s election pursuant to Section 10.7(b). The closing shall take place during normal business hours at the office of the Company. Failure of the
Responding Member to respond to the Sale Proposal within the forty-five (45) day period referenced in Section 10.7(b) shall be deemed an election to sell its Entire Interest under Section 10.7(b)(i). The Selling Member shall pay any
transfer or similar taxes due in connection with the sale of an Entire Interest under this Section 10.7. 

10.8       Provisions Generally Applicable to Sales. The following provisions shall be
applicable to sales under Sections 10.7 and/or 13.2, as indicated: 
   (a)
      This subparagraph (a) shall be applicable only to a sale of a Member’s Entire Interest under Section 10.7. If, under the provisions of Section 10.7, (i) the Proposer has offered to sell
its Entire Interest to the Responding Member and the Responding Member has elected instead to sell its Entire Interest to the Proposer then the purchase price payable to the Responding Member for its Entire Interest shall be determined as set forth
in this Section 10.8(a), or (ii) the Proposer has offered to purchase the Entire Interest of the Responding Member and the Responding Member has elected instead to purchase the Entire Interest of the Proposer, then the purchase price
payable to the Proposer for its Entire Interest, shall be determined as set forth in this Section 10.8(a). Each such purchase price is the “Reply Price” and shall be determined as follows: 

  
 37 

    (i)       In the event this
Section 10.8(a) is triggered in the context of Section 10.7, there shall be determined the “Value” of the Company, after payment of debts, liabilities and expenses, which Value shall equal the total amount of Company
assets that would have been required for the Company to distribute the amount of the 10.7 Offer to the holder of the interest to be purchased thereunder under Section 9.4, after payment of debts, liabilities and expenses under Sections 13.5(a)
and 13.5(b), if all of the Company’s property, including the Property, were sold for the price set forth in the Sale Proposal. 

   (ii)       After determining the Value, there shall then be determined the
amount which would have been distributable and payable to the selling Member under Section 9.4 if all of the Company’s Property had been sold for an amount equal to the Value, plus all debts, liabilities and expenses of the Company
referenced above. Such amount which would have been distributable to the selling Member equals the Reply Price. 

  (b)       For purposes of any sale of an Entire Interest of a Member, the purchase
price associated with such sale shall be adjusted to reflect assets and liabilities of the Company not reflected in the Company’s financial statements available to all Members at the time of the notice of election (the “Notice
Date”). The purchase price, as so adjusted, shall be determined ten (10) Business Days prior to closing and shall be subject to such post-closing adjustments as the circumstances may require. The
purchase price, as so adjusted, shall be paid, at the selling Member’s option, in cash, by certified check drawn to the order of the selling Member, or by wire transfer of immediately available funds to the seller’s account. All prorations
of real estate taxes, rents and other items to be prorated shall be made as of the date of sale. All transfer taxes, title insurance policies, surveys and recording fees shall be paid for by the party usually charged with such payment under local
custom. 
   (c)       On payment of the purchase price for an Entire Interest, the
purchasing Member shall, at its option, either (i) deliver a release of the selling Members from all liability, direct or contingent, by all holders of all Company debts, obligations or claims against the Company for which any Member is or may
be personally liable, except for any debts, obligations or claims which are fully insured by public liability insurer(s) acceptable to the selling Members, or (ii) cause all such debts, obligations or claims to be paid in full at the closing,
or (iii) deliver to the selling Members an agreement in form and substance satisfactory to the selling Members to defend, indemnify and save the selling Members harmless from any actions, claims or loss arising from any debt, obligation or
claim of the Company arising prior to date of sale. The Company shall provide the Members such tax information and reporting as may be required by the Members in connection with such sale within a reasonable period following such sale. 

  (d)       After determining the Value as described above in Section 10.8(a)
above, no distributions of Operating Cash Flow will be made from the Company prior to the earlier of the closing of the proposed purchase or the termination of the proposed purchase prior to the closing. 

  (e)       If the Property is damaged by fire or other casualty, or if any entity
possessing the right of eminent domain shall give notice of an intention to take or acquire a substantial part of the Property, and such damage occurs, or such notice is given, between the Notice Date and the closing date of the purchase of an
Entire Interest in the Company, the following shall apply: 

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

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

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

(f)       At the closing of the sale of the Entire Interest of a Member, the selling Members
shall execute an assignment of its interest in the Company, free and clear of all liens, encumbrances and adverse claims, which assignment shall be in form and substance reasonably satisfactory to the purchasing Member, and such other instruments as
the purchasing Member shall reasonably require to assign the Entire Interest of the selling Members to such person or entity as the purchasing Member may designate. For any sale or transfer under this Article 10, the purchasing Member may designate
the assignee of the Entire Interest, which assignee need not be an Affiliate of the purchasing Member, subject to the other Members’ reasonable consent. 

(g)       This subparagraph (g) shall be applicable only to a sale of a Member’s
Entire Interest under Section 13.2. In the event of a purchase and sale pursuant to Section 13.2, the Company shall be dissolved and terminated as of the closing date of the sale, and on the closing date the Members shall execute and file
a Certificate of Cancellation of the Company’s Certificate of Formation, unless the remaining Member elects to continue the Company. The Members shall cooperate in taking all steps necessary in connection with the dissolution and termination of
the Company. 
 (h)       It is the intent of the parties to this Agreement that the
requirements or obligations, if any, of one Member to sell its Entire Interest to another Member shall be enforceable by an action for specific performance of a contract relating to the purchase of real

  
 39 

 
property or an interest therein. In the event that the selling Member(s) shall have created or suffered any unauthorized liens, encumbrances or other adverse interests against either the Property
or the selling Member’s interest in the Company, the purchasing Member shall be entitled either to an action for specific performance to compel the selling Member(s) to have such defects removed, in which case the closing shall be adjourned for
such purpose, or, at the purchasing Member’s option, to an appropriate offset against the purchase price, which offset shall include all reasonable costs associated with enforcement of this Section. 

  (i)       Each Member agrees that it will negotiate in good faith a purchase and
sale agreement in the event of an election by a Member to purchase the other Member’s Entire Interest within ten (10) business days following the Notice Date. 

  (j)       For purposes of this Section 10.8, all references to a
“Member” shall mean AHC or CNL as the context permits and all references to “the Members” shall mean AHC, and/or CNL as the context permits. 

10.9       Intentionally Deleted. 

ARTICLE 11. DISSOLUTION OR BANKRUPTCY OF A MEMBER 

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

11.2       Bankruptcy, etc. In the event: 

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

  
 40 

 
statute or law relating to bankruptcy, insolvency, or other relief for debtors, and said Member shall acquiesce in the entry for such order, judgment or decree (the term
“acquiesce” includes but is not limited to the failure to file a petition or motion to vacate or discharge such order, judgment or decree within ten (10) days after the entry of the order, judgment or decree) or such order,
judgment or decree shall remain unvacated and unstayed for an aggregate of ninety (90) days (whether or not consecutive) from the date of entry thereof, or any trustee, receiver, conservator or liquidator of said Member or of all or any
substantial part of said Member’s property or its interest in the Company shall be appointed without the consent or acquiescence of said Member and such appointment shall remain unvacated and unstayed for an aggregate of ninety (90) days
(whether or not consecutive); or 
   (c)       any Member shall admit in writing
its inability to pay its debts as they mature; or 
   (d)       any Member shall
give notice to any governmental body of insolvency, or pending insolvency, or suspension or pending suspension of operations; or 

  (e)       any Member shall make an assignment for the benefit of creditors or take
any other similar action for the protection or benefit of creditors; 
 then such event shall, at the election of any other Member, cause
the dissolution of the Company and such electing Member shall be the Liquidating Member. 

11.3       Reconstitution. Notwithstanding the provisions of Section 11.1 and 11.2,
the remaining Member may, within ninety (90) days of any event described in this Article 11, elect to (a) continue the Company or (b) transfer the assets of the Company to a newly organized entity and accept ownership interests in
such entity in exact proportion to its interests in the Company at the time of dissolution. An appropriate amendment to or cancellation of the Certificate of Formation and all other filings required by law shall be made in accordance with any action
taken pursuant to this Section 11.3. 
 ARTICLE 12. CROSS-DEFAULT 

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

ARTICLE 13. DISSOLUTION 

13.1       Winding Up by Members. Upon dissolution of the Company by expiration of the
term hereof, by operation of law, by any provision of this Agreement or by agreement between the Members, the Company’s business shall be wound up and all its assets distributed in liquidation. In such dissolution, except as otherwise expressly
provided in Articles 10 or 11, the Members shall be co-liquidating Members and shall continue to act by Member Consent. In such event the Members shall have rights acting by Member Consent to wind up the
Company and 

  
 41 

 
shall proceed to cause the Company’s property to be sold and to distribute the proceeds of sale as provided in Section 13.5. Except in respect of (i) all assets on which a single, non-severable mortgage or other lien will be in effect after such distribution, and (ii) any assets which the Members shall determine are not readily severable or distributable in kind, the Members, to the
extent that liquidation of such assets is not required to fulfill the payments, if any, under subsections (a) and (b) of Section 13.5 and Section 9.4 shall, if they agree, have the right to distribute, in kind, all or a portion
of the assets of the Company to the Members. 
 13.2       Winding Up by Liquidating
Member. 
   (a)       In a dissolution pursuant to either
Section 4.5(d)(iii) or Articles 10 and 11, the Liquidating Member shall be as therein provided and such Liquidating Member shall have the right to: 

    (i)       Wind up the Company and cause the Company’s assets to be
sold and the proceeds of sale distributed as provided in Section 13.5; or 

    (ii)       Notwithstanding anything to the contrary contained in this
Agreement, cause the assets of the Company to be appraised in accordance with Section 13.2(b) and at its option, purchase the Entire Interests of the other Members in accordance with Section 13.2(b). 

 (b)        (i)       The Liquidating Member,
within 30 days after the commencement of the dissolution of the Company, or the Non-Failing Member at any time during the period set forth in Section 4.5 (such Member giving the notice being referred to
herein as the “Electing Member”) may give notice (the “Appraisal Notice”) to the other Members electing to have the “Fair Market Value” of the Company’s assets determined by appraisal pursuant to
Section 13.2(b)(ii). The fees and expenses of such appraisers shall be borne by the Company. The Electing Member shall have the option, by notice given to the other Members within 30 days after receipt of the determination of “Fair Market
Value” pursuant to Section 13.2(b)(ii), to purchase each other Member’s Entire Interest at a price equal to the amount which would have been distributable and payable to the other Member in accordance with the provisions of
Section 9.4 if all of the Company’s assets had been sold for an amount equal to such Fair Market Value and any debts, liabilities and expenses which would have been payable by the Company pursuant to Sections 13.5(a), (c) and
Section 9.4 out of the proceeds of such sale were deducted in determining such value. Such option may be exercised by the Electing Member within forty-five (45) days after receipt of the
determination of “Fair Market Value” pursuant to Section 13.2(b)(ii) by notice to the other Members. If after the receipt of the determination of “Fair Market Value” pursuant to Section 13.2(b)(ii), the Electing Member
elects not to exercise the option to purchase the other Members’ Entire Interests pursuant to this Section, then the Electing Member shall have all of its rights under Section 4.5 or this Section 13.2, as applicable, as if the
Appraisal Notice had not been given. All of the provisions of Section 10.8 shall apply to a purchase under this Section 13.2(b), except that for the purposes of this Section 13.2(b), any adjustments required pursuant to
Section 10.8 shall be applicable to any events and/or liabilities or income which were not included in determining the Fair Market Value. 

  
 42 

 (ii)       If the fair market value (the
“Fair Market Value”) of the assets of the Company is required for purposes of Section 13.2(b)(i), such Fair Market Value, if not otherwise agreed upon by the Members, shall be determined as set forth in this
Section 13.2(b)(ii). All appraisers referred to herein shall be real estate appraisers which are members of the Chapter of the American Institute of Real Estate Appraisers for the state in which the Property is located for at least seven
(7) years. As used herein, Fair Market Value is the fair market value of all the assets of the Company. Each of CNL and AHC shall select one (1) appraiser. In the event that either party fails to select an appraiser within thirty
(30) days after notice of the exercise of an option or election requiring a valuation, then such party’s appraiser shall be selected by the other party from a list of no fewer than five (5) appraisers compiled and approved by Member
Consent (the “List”). After the selection, each appraiser shall independently determine the gross fair market value of the assets of the Company. If the separate appraisals differ, the Members shall have a period of ten
(10) days after receipt of the appraisals to agree on the Fair Market Value. In the event the Members cannot agree on the Fair Market Value in accordance with the preceding sentence, the two appraisers referred to therein shall within ten
(10) days after the expiration of the ten day period described in the preceding sentence select a third appraiser. In the absence of such a selection, the third appraiser shall be selected by the Chapter of the American Institute of Real Estate
Appraisers for the state in which the Property is located. The third appraiser shall decide which of the two appraisals established by the appraisers in accordance with this Section constitutes the Fair Market Value, and such decision shall be
conclusive and binding on all Members. 
 13.3       Offset for Damages. In the event
of dissolution resulting from an event described in Article 11, the Liquidating Member shall be entitled to deduct from the amount payable to the other Member pursuant to Section 13.2(a) or (b), Section 13.4 or Section 13.5, the
amount of damages, including reasonable attorneys’ fees and disbursements, incurred by the Liquidating Member proximately resulting from any such event, only if and as established by a court order. 

13.4       Distributions of Operating Cash Flow. Subject to Section 13.5 hereof as
to proceeds of liquidation, upon the dissolution of the Company for any reason during the period of liquidation and until termination of the Company, the Members shall continue to receive the Operating Cash Flow and to share profits and losses for
all tax and other purposes as provided elsewhere in this Agreement. 
 13.5      
Distributions of Proceeds of Liquidation. For purposes of this Section 13.5, “proceeds of liquidation” shall equal cash available for distribution, net of debts secured by liens on the Property, provided that neither the
Company nor the Members shall be personally liable on, or they shall be released from, such debts. The proceeds of liquidation shall be applied in the following order of priority: 

  (a)       First. To the payment of: 

    (i)       debts and liabilities of the Company, except Member Loans,
and 
     (ii)       expenses of liquidation. 

  
 43 

   (b)       Second. To the
setting up of any reserves which the Liquidating Member or Members, as the case may be, may deem necessary for any contingent or unforeseen liabilities or obligations of the Company or of the Members arising out of or in connection with the Company.
Such reserves may be deposited by the Company in a bank or trust company acceptable to the Liquidating Member or Members, as the case may be, to be held by it for the purpose of disbursing such reserves in payment of any of the aforementioned
liabilities or obligations, and at the expiration of such period as the Liquidating Member or Members, as the case may be, shall deem advisable, distributing the balance, if any, thereafter remaining, in a manner hereinafter provided. 

  (c)       Third. Any balance remaining shall be paid and distributed as
provided in Section 9.4; provided, that to the extent there is any balance remaining after the application of Section 9.4, any distributions made thereafter shall be made pursuant to the Members in accordance with their positive Capital
Account balances in accordance with Treasury Regulations Section 1.704-1(b)(2)(ii)(b)(2). 

13.6       Orderly Liquidation. A reasonable time shall be allowed for the orderly
liquidation of the assets of the Company and the discharge of liabilities to creditors so as to enable the Members to minimize the losses normally attendant upon a liquidation. 

13.7       Financial Statements. During the period of winding up, the Company’s then
independent certified public accountants shall prepare and furnish to each of the Members, until complete liquidation is accomplished, all the financial statements provided for in Section 7.1. 

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

ARTICLE 14. MEMBERS 

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

ARTICLE 15. NOTICES 

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

  
 44 

			
	 CNL:
	  	 GGT Fairfield TX Holdings, LLC

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

Attention: Rosemary Q. Mills, Chief Financial Officer

Attention: Scott Hall

		
	 with a copy to:
	  	 GGT Fairfield TX Holdings, LLC

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

Attention: Holly J. Greer, Esq., General Counsel

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

450 South Orange Avenue, Suite 200

Orlando, Florida 32801
 Attention:
Joaquin E. Martinez, Esq.

		
	 AHC:
	  	 AHC Fairfield Operator, LLC

1800 Augusta Drive, Suite 150

Houston, Texas 77057
 Attention:
Paul Forbes

		
	 with a copy to:
	  	 Gardere Wynne Sewell, LLP

1601 Elm Street, Suite 3000

Dallas, Texas 75201
 Attention:
George Dunlap, Esq.

 All notices hereunder shall be in writing to be deemed effective and shall be deemed
sufficiently given or served for all purposes when delivered (i) by personal service or courier service, and shall be deemed given on the date when signed for or, if refused, when refused by the person designated as an agent for receipt of
notices, (ii) by nationally-recognized overnight courier that produces a receipt of delivery and shall be deemed given when placed into the hands of such courier for delivery on the next business day or
(iii) mailed by United States registered or certified mail, return receipt requested, postage prepaid, deposited in a United States post office or a depository for the receipt of mail regularly maintained by the post office and if so mailed,
then such notice or other communication shall be deemed to have been received by the addressee on the third business day following the date of such mailing. For purposes hereof, notices may be given by the parties hereto or by their attorneys
identified above. 
 A copy of any notice or any written communication from the Internal Revenue Service to the Company
shall be given to each Member at the addresses provided for above. 
 15.2     Copies. A copy of
any notice, service of process, or other document in the nature thereof, received by either Member from anyone other than the other Member and pertaining to the Company or the Property, shall be delivered by the receiving Member to the other Member
as soon as practicable. 

  
 45 

 ARTICLE 16. MISCELLANEOUS 

16.1     Additional Documents and Acts. In connection with this Agreement, as well as all
transactions contemplated by this Agreement, each Member agrees to execute and deliver such additional documents and instruments, and to perform such additional acts, as may be necessary or appropriate to effectuate, carry out and perform all of the
terms, provisions and conditions of this Agreement and all such transactions. All approvals of either party hereunder shall be in writing. 

16.2     Interpretation. This Agreement and the rights and obligations of the Members hereunder
shall be interpreted in accordance with the laws of the State of Delaware. 
 16.3     Entire
Agreement. This instrument contains all of the understandings and agreements of whatsoever kind and nature existing between the parties hereto with respect to this Agreement and the rights, interests, understandings, agreements and obligations
of the respective parties pertaining to the Company. 
 16.4     References to this Agreement.
Numbered or lettered articles, sections and subsections herein contained refer to articles, sections and subsections of this Agreement unless otherwise expressly stated. 

16.5     Headings. All headings herein are inserted only for convenience and ease of reference and
are not to be considered in the construction or interpretation of any provision of this Agreement. 

16.6     Binding Effect. Except as herein otherwise expressly stipulated to the contrary, this
Agreement shall be binding upon and inure to the benefit of the parties signatory hereto, and their respective distributees, successors and assigns. 

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

16.8     Confidentiality. The terms and provisions of this Agreement shall be kept confidential and
shall not, without the other Members’ prior written consent (which shall not be unreasonably withheld), be disclosed in writing by a Member or by a Member’s agents, managers, members, representatives and employees to any Person, except to
the extent required by law, and to existing or prospective construction lenders, contractors, tenants, or investors in a Member, accountants of a Member or CNL therein and other advisors to a Member, in each case to the extent each of such parties
is bound by a confidentiality obligation substantially on the terms set forth in this Section, and except to the extent reasonably necessary to accomplish the transaction contemplated hereby. No publicity, media communications, press releases or
other public announcements concerning the terms and provisions of this Agreement or the transactions contemplated hereby shall be issued or made by any Member without the prior written consent of the other Members, which consent shall not be
unreasonably withheld, conditioned or delayed, except if a Member is required to make a public announcement or disclosure under applicable law, in which case such Member shall provide the other Members with the form and content of such disclosure
within a reasonable amount of time prior to its release (to the extent possible 

  
 46 

 
under the circumstances) and shall consider in good faith all comments provided by the other Members; provided, however, that CNL shall not be required to provide copies of disclosures to be made
or proposed to be made by CNL in periodic reports and other filings required by the applicable federal securities laws. 

16.9     Amendments. This Agreement may not be amended, altered or modified except by a written
instrument signed by all parties, provided, however, that AHC and CNL shall agree to any amendments of this Agreement reasonably required by CNL in order to comply with any amendments reasonably required by CNL in order to comply with REIT
requirements; provided, that CNL will pay for or reimburse all reasonable costs and expenses (including reasonable attorneys’ fees) of the Company or other Members related to any such amendments. 

16.10     Exhibits. All exhibits and schedules annexed hereto are expressly made a part of this
Agreement, as fully as though completely set forth herein, and all references to this Agreement herein or in any of such exhibits or schedules shall be deemed to refer to and include all such exhibits or schedules. 

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

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

16.13     Forum. Any action by one or more Members against the Company or by the Company against
one or more Members which arises under or in any way relates to this Agreement, actions taken or failed to be taken or determinations made or failed to be made by the Members or relating to the Company including transactions permitted hereunder or
otherwise related in any way to the Company, may be brought only in the state courts of the State of Delaware or any United States District Court in Delaware. Each Member hereby consents to the jurisdiction of such courts to decide any and all such
actions and to such venue. 
 16.14     No Brokerage. The Members represent and warrant to each
other that they have not dealt with any brokers, investment bankers, consultants or other third parties in the negotiation of this Agreement and the transactions contemplated herein. The Members further agree to indemnify, defend and hold each other
harmless from and against any liability, claim, damage, cost or expense (including reasonable attorney’s fees) arising out of or in connection with the claims for commissions or any other fees due in connection with this Agreement and the
transactions contemplated herein arising from such Member’s actions. 

  
 47 

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

			
	 AHC:
	 	
		
		 	 AHC FAIRFIELD OPERATOR, LLC,

a Texas limited liability company
  

By:   /S/ Paul
Forbes                                  

Name:   Paul
Forbes                                   

Title:
    Manager                                    
    

		
	 CNL:
	 	
		
		 	 GGT FAIRFIELD TX HOLDINGS, LLC,

a Delaware limited liability company
  

By:   /S/ E.M.
Gray                                     

Name:   Erin M.
Gray                                 

Title:     Vice
President                               

  
 48 

 EXHIBIT A 
  

					
	Names and Interests                    
of
Members                    	  	Percentage
Interest	    	 Maximum

Initial Capital
Contributions*

			
	 GGT Fairfield TX Holdings, LLC
	  	80%	    	$8,806,000
			
	 AHC Fairfield Operator, LLC
	  	20%	    	$2,201,500
			
	 TOTALS:
	  	100%	    	$11,007,500

  
 A-1 

 EXHIBIT B 

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

  
 B-1 

 EXHIBIT C 

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

  
 C-1 

 EXHIBIT D 

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

  
 D-1 

 EXHIBIT E 

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

  
 E-1

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