Document:

Operating Agreement

 EXHIBIT 10.18 
 OPERATING AGREEMENT 
 OF 
 KC PINEHURST ASSOCIATES, LLC 
 THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “FEDERAL ACT”), IN RELIANCE UPON ONE (1) OR MORE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE FEDERAL ACT. IN ADDITION, THE ISSUANCE OF THIS SECURITY
HAS NOT BEEN QUALIFIED UNDER THE DELAWARE SECURITIES ACT OR ANY OTHER STATE SECURITIES LAWS (COLLECTIVELY, THE “STATE ACTS”), IN RELIANCE UPON ONE (1) OR MORE EXEMPTIONS FROM THE REGISTRATION PROVISIONS OF THE STATE ACTS. IT IS
UNLAWFUL TO CONSUMMATE A SALE OR OTHER TRANSFER OF THIS SECURITY OR ANY INTEREST THEREIN TO, OR TO RECEIVE ANY CONSIDERATION THEREFOR FROM, ANY PERSON OR ENTITY WITHOUT THE OPINION OF COUNSEL FOR THE COMPANY THAT THE PROPOSED SALE OR OTHER TRANSFER
OF THIS SECURITY DOES NOT AFFECT THE AVAILABILITY TO THE COMPANY OF SUCH EXEMPTIONS FROM REGISTRATION AND QUALIFICATION, AND THAT SUCH PROPOSED SALE OR OTHER TRANSFER IS IN COMPLIANCE WITH ALL APPLICABLE STATE AND FEDERAL SECURITIES LAWS. THE
TRANSFER OF THIS SECURITY IS FURTHER RESTRICTED UNDER THE TERMS OF THE OPERATING AGREEMENT GOVERNING THE COMPANY, A COPY OF WHICH IS ON FILE WITH THE OPERATING MEMBER OF THE COMPANY. 
  

 OPERATING AGREEMENT 
 OF 
 KC PINEHURST ASSOCIATES, LLC 
 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	ARTICLE 1 FORMATION	  	1
				
		 	1.01	  	Formation	  	1
		 	1.02	  	Names and Addresses	  	1
		 	1.03	  	Nature of Business	  	2
		 	1.04	  	Term of the Company	  	2
		
	ARTICLE 2 MANAGEMENT OF THE COMPANY	  	2
				
		 	2.01	  	Management Committee	  	2
		 	2.02	  	Authority of the Management Committee	  	5
		 	2.03	  	Operating Member	  	8
		 	2.04	  	Annual Business Plan	  	10
		 	2.05	  	Operating Budget	  	10
		 	2.06	  	Removal of the Operating Member	  	11
		 	2.07	  	Liability and Indemnity	  	13
		 	2.08	  	Limited Liability	  	14
		 	2.09	  	Other Activities	  	14
		 	2.10	  	Brokers Indemnity	  	14
		 	2.11	  	Reimbursement; Compensation	  	14
		 	2.12	  	Property Management	  	15
		
	ARTICLE 3 MEMBERS’ CAPITAL CONTRIBUTIONS	  	16
				
		 	3.01	  	Initial Contributions of the Members	  	16
		 	3.02	  	Additional Contributions	  	16
		 	3.03	  	Remedy For Failure to Contribute Capital	  	16
		 	3.04	  	Debt Financing	  	20
		 	3.05	  	Loans from Members	  	20
		 	3.06	  	Capital Contributions in General	  	20
		
	ARTICLE 4 ALLOCATION OF PROFITS AND LOSSES	  	21
				
		 	4.01	  	Allocation of Net Profits and Net Losses	  	21
		 	4.02	  	Regulatory Allocations	  	21
		 	4.03	  	Other Special Allocations	  	22
		 	4.04	  	Other Allocation Rules	  	22
		
	ARTICLE 5 DISTRIBUTIONS	  	23
				
		 	5.01	  	Distribution of Ordinary Cash Flow	  	23
		 	5.02	  	Distribution of Extraordinary Cash Flow	  	24
		 	5.03	  	Limitations on Distributions	  	24

  

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		 	5.04	  	In-Kind Distribution	  	24
		 	5.05	  	Right to Withhold	  	25
		
	ARTICLE 6 RESTRICTIONS ON TRANSFERS OF COMPANY INTERESTS	  	25
				
		 	6.01	  	Limitations on Transfer	  	25
		 	6.02	  	Permitted Transfers	  	25
		 	6.03	  	Admission of Substitute Members	  	26
		 	6.04	  	Additional Restrictions on Transfer	  	27
		 	6.05	  	Paladin Purchase Option	  	27
		 	6.06	  	Election; Allocations Between Transferor and Transferee	  	28
		 	6.07	  	Partition	  	28
		 	6.08	  	Waiver of Withdrawal	  	29
		
	ARTICLE 7 DEFAULT BUY-SELL AGREEMENT	  	29
				
		 	7.01	  	Default Buy-Sell Events	  	29
		 	7.02	  	Rights Arising From a Default Buy-Sell Event	  	31
		 	7.03	  	Determination of Purchase Price	  	31
		 	7.04	  	Member’s Option	  	34
		 	7.05	  	Closing of Purchase and Sale	  	34
		 	7.06	  	Payment of Purchase Price	  	34
		 	7.07	  	Release and Indemnity	  	35
		 	7.08	  	Repayment of Member Loans	  	35
		 	7.09	  	Voting Rights Following Default Buy-Sell Event	  	35
		 	7.10	  	Withdrawal of the Selling Member	  	36
		
	ARTICLE 8 DISSOLUTION AND WINDING UP OF THE COMPANY	  	36
				
		 	8.01	  	Events Causing Dissolution of the Company	  	36
		 	8.02	  	Winding Up of the Company	  	37
		 	8.03	  	No Negative Capital Account Restoration	  	37
		
	ARTICLE 9 BOOKS AND RECORDS; ACCOUNTING; TAX ELECTIONS	  	37
				
		 	9.01	  	Company Books	  	37
		 	9.02	  	Delivery of Records; Inspection	  	37
		 	9.03	  	Reports and Tax Information	  	38
		 	9.04	  	Company Tax Elections; Tax Controversies	  	40
		 	9.05	  	Accounting and Fiscal Year	  	40
		 	9.06	  	Confidentiality of Information	  	40
		
	ARTICLE 10 MISCELLANEOUS	  	41
				
		 	10.01	  	Subscription Agreement	  	41
		 	10.02	  	Investment Interest; Nature of Investment	  	41
		 	10.03	  	Appointment of Attorney-in-Fact	  	41
		 	10.04	  	Waiver of Conflict of Interest	  	42
		 	10.05	  	Amendment	  	42
		 	10.06	  	No Assignments; Binding Effect	  	43
		 	10.07	  	Further Assurances	  	43

  

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		 	10.08	  	Notices	  	43
		 	10.09	  	Waivers	  	44
		 	10.10	  	Preservation of Intent	  	44
		 	10.11	  	Entire Agreement	  	45
		 	10.12	  	Certain Rules of Construction	  	45
		 	10.13	  	Counterparts	  	45
		 	10.14	  	Governing Law	  	45
		 	10.15	  	Assurances	  	46
		 	10.16	  	Time is of the Essence	  	46
		 	10.17	  	Other Matters	  	46
		 	10.18	  	Ownership of the Lippert Members and Property Manager	  	46
		
	ARTICLE 11 DEFINITIONS	  	47
				
		 	11.01	  	Additional Contribution	  	47
		 	11.02	  	Additional Member	  	47
		 	11.03	  	Adjusted Capital Account	  	47
		 	11.04	  	Affiliate	  	47
		 	11.05	  	Agreement	  	48
		 	11.06	  	Annual Business Plan	  	48
		 	11.07	  	Appraised Value	  	48
		 	11.08	  	Business Day	  	48
		 	11.09	  	Buyout Purchase Price	  	48
		 	11.10	  	Buy-Sell Notice	  	48
		 	11.11	  	Capital Account	  	48
		 	11.12	  	Capital Contribution	  	49
		 	11.13	  	Capital Event	  	49
		 	11.14	  	Cash Flow	  	49
		 	11.15	  	Cash Flow Bonus Forfeiture Event	  	49
		 	11.16	  	Code	  	49
		 	11.17	  	Company	  	49
		 	11.18	  	Company Minimum Gain	  	50
		 	11.19	  	Contributing Member	  	50
		 	11.20	  	Contribution Date	  	50
		 	11.21	  	Contribution Notice	  	50
		 	11.22	  	Contribution Percentage	  	50
		 	11.23	  	Default Buy-Sell Event	  	50
		 	11.24	  	Default Notice	  	50
		 	11.25	  	Defaulting Member	  	50
		 	11.26	  	Default Purchase Price	  	50
		 	11.27	  	Deferred Management Fees	  	50
		 	11.28	  	Deferred Management Fee Account	  	51
		 	11.29	  	Delaware Act	  	51
		 	11.30	  	Delinquent Contribution	  	51
		 	11.31	  	Dilution Percentage	  	51
		 	11.32	  	Effective Date	  	51
		 	11.33	  	Extraordinary Cash Flow	  	51

  

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		 	11.34	  	Fiscal Year	  	52
		 	11.35	  	Gross Asset Value	  	52
		 	11.36	  	Immediate Family	  	53
		 	11.37	  	Indemnified Party	  	53
		 	11.38	  	Interest	  	53
		 	11.39	  	IRR	  	53
		 	11.40	  	Lippert Holdings	  	53
		 	11.41	  	Lippert Management	  	54
		 	11.42	  	Lippert Member(s)	  	54
		 	11.43	  	Liquidation	  	54
		 	11.44	  	Majority of Representatives	  	54
		 	11.45	  	Management Committee	  	54
		 	11.46	  	Material Breach	  	54
		 	11.47	  	Member Loan	  	55
		 	11.48	  	Member Minimum Gain	  	55
		 	11.49	  	Member Nonrecourse Debt	  	55
		 	11.50	  	Member Nonrecourse Deductions	  	55
		 	11.51	  	Member(s)	  	55
		 	11.52	  	Net Profits and Net Losses	  	55
		 	11.53	  	Non-Contributing Member	  	56
		 	11.54	  	Nonrecourse Deductions	  	56
		 	11.55	  	Operating Account	  	56
		 	11.56	  	Operating Budget	  	57
		 	11.57	  	Operating Member	  	57
		 	11.58	  	Option Notice	  	57
		 	11.59	  	Option Price	  	57
		 	11.60	  	Ordinary Cash Flow	  	57
		 	11.61	  	Paladin	  	57
		 	11.62	  	Paladin REIT	  	57
		 	11.63	  	Partially Adjusted Capital Account	  	58
		 	11.64	  	Percentage Interest	  	58
		 	11.65	  	Permitted Transferees	  	58
		 	11.66	  	Person	  	58
		 	11.67	  	Price Determination Notice	  	58
		 	11.68	  	Preferred Return	  	58
		 	11.69	  	Project	  	59
		 	11.70	  	Project Shortfall	  	59
		 	11.71	  	Property Management Agreement	  	59
		 	11.72	  	Property Manager	  	59
		 	11.73	  	Purchase Option	  	59
		 	11.74	  	Purchasing Member	  	59
		 	11.75	  	Qualified Appraiser	  	59
		 	11.76	  	REIT	  	60
		 	11.77	  	Removal Event	  	60
		 	11.78	  	Removal Notice	  	60

  

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		 	11.79	  	Securities Act	  	60
		 	11.80	  	Seller Loan	  	60
		 	11.81	  	Selling Member	  	60
		 	11.82	  	Target Capital Account	  	60
		 	11.83	  	Tax Matters Partner	  	60
		 	11.84	  	Threshold Return	  	60
		 	11.85	  	Third-Party Purchase Price	  	61
		 	11.86	  	Transfer	  	61
		 	11.87	  	Treasury Regulation	  	61
		 	11.88	  	Unanimous Written Consent	  	61
		 	11.89	  	Unpaid Preferred Return	  	61
		 	11.90	  	Unrecovered Contribution Account	  	61

 Exhibit List 
  

			
	Exhibit “A”	  	Initial Capital Contributions
	Exhibit “B”	  	Property Description for Project
	Exhibit “C”	  	Annual Operating Budget for 2007
	Exhibit “D”	  	Information Regarding Lippert Members and Property Manager
	Exhibit “E”	  	xIRR Calculation

  

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 OPERATING AGREEMENT 
 OF 
 KC PINEHURST ASSOCIATES, LLC 
 THIS OPERATING AGREEMENT OF KC PINEHURST ASSOCIATES, LLC (the “Company”), is entered into effective as of September 13,
2007, by and between PRIP 500, LLC, a Delaware limited liability company (“Paladin”), and JTL HOLDINGS, LLC, a Missouri limited liability company (“Lippert Holdings”), and JTL ASSET MANAGEMENT,
INC., a Missouri limited liability company (“Lippert Management”). The capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to such terms in Article 11. 
 ARTICLE 1 
 FORMATION 

  

	 	1.01	Formation 

 The Company has been formed as a
Delaware limited liability company pursuant to the provisions of the Delaware Act. The Company shall be operated in accordance with, and the Members shall be governed by, the terms and conditions of this Agreement. If any terms of this Agreement are
inconsistent with any terms of the Act that are not mandatory, then the terms of this Agreement shall control. In connection with the formation of the Company, a duly authorized representative of the Company has caused to be filed with the office of
the Delaware Secretary of State a duly executed Certificate of Formation for the Company in accordance with the Delaware Act. A duly authorized representative also shall execute, acknowledge and verify such other documents or instruments as may be
necessary or appropriate in order to form the Company under the Delaware Act or to continue its existence in accordance with the provisions of the Delaware Act or to register, qualify to do business or operate its business as a foreign limited
liability company in any other state in which the Company conducts business. 
  

	 	1.02	Names and Addresses 

 The name of the Company
is KC Pinehurst Associates, LLC. The registered office of the Company in the State of Delaware shall be at c/o The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware 19801 and the name of the registered agent for the Company at such
registered office is The Corporation Trust Company. For so long as Lippert Management is the Operating Member, the principal office for the Company shall be maintained at Two Pershing Square, 2300 Main Street, Suite 910, Kansas City, Missouri 64108,
or such other location at which Lippert Management maintains an office and thereafter at such other place as the Management Committee may designate from time to time. Copies of any material notices or other matters received by the Company shall be
promptly delivered by the Operating Member to the Members. 
  

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	 	1.03	Nature of Business 

 The purpose for which the Company is to exist is (i) to acquire, own, manage, operate, maintain, finance, hold for investment, and sell that certain real property more particularly described on Exhibit B
attached hereto, together with existing improvements consisting of an approximately 146 unit apartment complex and related amenities and improvements located thereto located at 500 NW 63rd Street in Kansas City, Missouri (the “Project”); (ii) to conduct such other activities with respect to, and otherwise realize and optimize the economic internal rates of return from, the Project
and any and all other related assets the Company may hereinafter acquire as are appropriate to carrying out the foregoing purposes; and (iii) to do all things incidental to or in furtherance of the above enumerated purposes. 

 

	 	1.04	Term of the Company 

 The term of the Company
commenced on the date the Certificate of Formation for the Company was filed with the Delaware Secretary of State and shall continue until December 31, 2047, unless otherwise dissolved pursuant to Article 8 or unless extended by the
unanimous agreement of the Members. The existence of the Company as a separate legal entity shall continue until the cancellation of the Certificate of Formation of the Company in accordance with the provisions of the Delaware Act. 
 ARTICLE 2 
 MANAGEMENT OF THE
COMPANY 
  

	 	2.01	Management Committee 

 (a) Management by
Management Committee. Except as otherwise provided in this Agreement, all aspects of the business and affairs of the Company shall be managed, and all decisions affecting the business and affairs of the Company (including, without limitation,
investment and Project related decisions) shall be made, by the Members acting through a management committee (the “Management Committee”) composed of five (5) representatives in accordance with the provisions contained below.
The Members, exclusively through the Management Committee, shall have the right, power and authority to take any and all actions consistent with the purpose of the Company that is permitted hereunder and under applicable law. No Member shall have
any right, power or authority to act (as agent or otherwise) for, or to bind, the Company in any manner (other than as expressly provided herein) except through the Management Committee. 
 (b) Representatives. Paladin shall be entitled to select three (3) representatives of the Management Committee, and Lippert Management shall
be entitled to select two (2) representatives of the Management Committee. Lippert Holdings shall not be entitled 

  

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

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

  

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agents, and representatives (including the representative(s) to the Management Committee appointed by such Member) from and against any and all losses,
liability, damages, costs and expenses (including attorneys’ fees) arising out of the breach of any of the foregoing provisions by such indemnifying Member, any representative of the Management Committee selected by such Member or such
Member’s Affiliates, shareholders, officers, directors, constituent members, Members, employees, agents, or representatives. 
  

	 	2.02	Authority of the Management Committee 

 Without limiting the generality of Section 2.01, and except as otherwise provided by this Agreement, the consent of the Management Committee shall be required for the Company to undertake, and the Management Committee shall have
the right, power and authority to approve and cause the Company to undertake, all of the following actions (which actions shall be approved by a Majority of Representatives unless otherwise expressly provided below): 
 (a) Issuance of Additional Interests. The issuance of any additional Interests in the Company or the admission of any Additional
Member into the Company; provided, however, that such a decision shall require the approval of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written Consent; 

(b) Sale or Other Transfer. Except as provided in accordance with the provisions of Article 7, the sale, lease, exchange,
transfer or other disposition of all or any portion of the Project or any other assets of the Company; 
 (c) Financing or
Refinancing. Any and all financing or refinancing for the Company or the Project, the terms and conditions thereof, or any modifications or amendments thereto; provided, however, that such a decision shall require the approval of all of
the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written Consent; 
 (d) Material Company Transactions. The entry into by the Company and the taking by the Company of any and all actions permitted or required by the Company in connection with any acquisition, disposition, merger, “roll-up”
consolidation, reorganization, recapitalization, restructuring, joint venture, partnership, limited liability company, or any other material business transaction involving the Company or its assets, including, without limitation, any and all actions
required or permitted in connection with any initial public offering of ownership interests in the Company (or in connection with the merger or the transfer of the assets of the Company to any corporation or other entity that is the successor to the
Company that intends to conduct an initial public offering) or any transfer of all or any portion of the assets of the Company to a public or private market 

  

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vehicle that intends to qualify as a real estate investment trust (“REIT”) under Section 856 et. seq. of the Code or to a
partnership, limited liability company or other entity whose general partner, managing member or other owner, intends to qualify as a REIT or to a comparable public or private REIT vehicle; provided, however, that such a decision shall
require the approval of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written Consent; 
 (e) Plans and Budgets. The approval of each Annual Business Plan and Operating Budget for the Company prepared by the Operating
Member, and any modifications or amendments thereof; 
 (f) Expenditures Outside of Plans or Budgets. The making of any
expenditure by the Company that is not specifically included or contemplated under any applicable Annual Business Plan and Operating Budget, other than as permitted within any parameters agreed to by the Management Committee and specified in any
such plan or budget (e.g., application of line item cost savings, contingency line amounts, budget variances, etc.); 
 (g) Additional Capital Contributions. The making of any Additional Contributions to the capital of the Company pursuant to Section 3.02; 
 (h) Unrelated Businesses. The entry into by the Company of any business that is not related to the purpose of the Company set forth
in Section 1.03; provided, however, that such a decision shall require the approval of all of the representatives present at a meeting of the Management Committee at which a quorum is present or Unanimous Written Consent;

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

  

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events be commensurate with fees negotiated at arm’s length and paid to independent third parties for providing similar services to projects similar in
size, nature and location to the Project; 
 (k) Cash Flow and Reserves. Subject to the provisions of
Section 5.03, the determination of any policies or procedures for making Cash Flow distributions by the Company including, without limitation, the establishment of any reserves with respect thereto; 
 (l) Material Agreements. The execution by the Company of any material agreement in order to acquire, develop, redevelop, renovate,
operate, manage, maintain, market, lease, sell, transfer, convey, pledge or otherwise dispose of all or any portion of the Project or any other asset of the Company and any undertaking by the Company to implement the terms of any such agreement,
including the granting or withholding of approvals and consents thereunder, and any amendment or termination of any such material agreement (including, without limitation, the Property Management Agreement); 
 (m) Consultants. The employment and engagement of any agents, brokers, appraisers, architects, contractors, subcontractors,
attorneys, accountants, bookkeepers, engineers, environmental consultants, real property and mortgage brokers and analysts, underwriters, escrow agents, depositories, agents for collection, banks, builders, building managers and operators, marketing
agents, property managers and any other service providers other than as permitted by the applicable Annual Business Plan or Operating Budget; 
 (n) Legal Proceedings. The institution or defense of any legal proceedings (including arbitration) in the name of the Company, the settlement of any such legal proceedings against the Company and the confession
of any judgment against the Company, or any property thereof; 
 (o) Bankruptcy. Any of the following: (i) the
filing of any voluntary petition in bankruptcy on behalf of the Company; (ii) the consenting to the filing of any involuntary petition and bankruptcy against the Company; (iii) the filing on behalf of the Company of any petition seeking,
or consenting to, the reorganization or relief under any applicable federal or state law relating to bankruptcy or insolvency; (iv) the consenting to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Company or a substantial part of its property; (v) the making on behalf of the Company of any assignment for the benefit of creditors; (vi) the admission in writing of the Company’s inability to pay its debts
generally as they become due; or (vii) the taking of any action by the Company in furtherance of any such action; provided, however, that such a decision shall require the approval of all of the representatives present at a meeting of
the Management Committee at which a quorum is present or Unanimous Written Consent; 
  

 7 

 (p) Insurance. The entry into by the Company of any and all contracts of insurance
for the Company that the Management Committee deems necessary or proper for the protection of the Company or the Project, either for the conservation of the Company’s assets or for any purpose convenient or beneficial to the Company;

 (q) Tax and Accounting Elections. Any and all tax or accounting elections permitted or required to be made by the
Company; 
 (r) Actions pertaining to Paladin REIT Status. The undertaking of any action that deemed necessary, in the
sole and but reasonable discretion of the Tax Matters Partner, to maintain the status of Paladin REIT as a REIT under the Code. 
 (s) Transfers from Operating Account. The drawing of any single check on, or the making of any single transfer or expenditure of funds from, the Operating Account in excess of $25,000, or drawing of any multiple number of checks on,
or the making of any multiple number of transfers or expenditures of funds from, any Operating Account which collectively total more than $25,000 to any one Person, unless such single check or transfer, or multiple checks or transfers, are drawn or
made, as the case maybe, pursuant to the directive of the Management Committee as contained in the Operating Budget, and the Operating Member has confirmed, for the benefit of the Company, that any such check or transfer is in proper order for
payment; and 
 (t) Other Actions. Any and all other actions required or permitted to be taken by the Management
Committee under this Agreement and any and all other actions relating to the business and affairs of the Company or necessary to carry out the intentions and purposes of the Company. 
 The provisions of this Section 2.02 shall not be construed as exclusive or so as to bar the Management Committee from delegating
responsibility for any of the Management Committee’s management decisions to any Member, officer, or other representative or agent of the Company. The Members also acknowledge that signatory authority for any of the foregoing items may be
delegated by the Management Committee to any Member, officer, or other representative or agent of the Company. 
  

	 	2.03	Operating Member 

 (a) Designation of
Operating Member. Lippert Management is hereby designated as the “Operating Member” of the Company (the “Operating Member”). Lippert Management shall serve in such capacity unless and until Lippert Management is
removed by the Management Committee in accordance with the provisions of Section 2.06. Following any removal of Lippert Management as the Operating Member, the Person (who may be, but need not be, a Member of the Company) selected by the
Management Committee in accordance with the provisions of Section 2.06 shall serve as the replacement Operating Member or manager of the Company. 
  

 8 

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

 9 

 (e) Indemnification. The Operating Member shall indemnify and hold harmless the Company and the
other Member(s), their Affiliates, subsidiaries, officers, directors, employees, partners, members, shareholders, agents and representatives to the full extent permitted by law from and against any and all losses, claims, costs, damages and expenses
(including attorneys’ fees) arising from or in connection with any act or failure to act of the Operating Member which was not in good faith, within the scope of its authority, or in accordance with the directives of the Management Committee,
and (ii) or constituted fraud, willful misconduct, gross negligence, or a Material Breach. 
  

	 	2.04	Annual Business Plan 

 On or before
October 31 of each Fiscal Year of the Company, commencing on October 31, 2007, the Operating Member shall submit a new annual business plan for the ensuing Fiscal Year for the review and approval of the Management Committee (the initial
and each new business plan, as approved, being the “Annual Business Plan”). Each Annual Business Plan shall include, without limitation: (i) a narrative description of the proposed objectives and goals for the Company, which
shall include for such Fiscal Year (without limitation), any proposed sale or refinancing of the Project; (ii) the status of the Project; (iii) a property management and leasing plan for the Project for such Fiscal Year; and (iv) such
other items as are requested by any representative of the Management Committee or as otherwise reasonably necessary to keep the Management Committee informed as to the business and affairs of the Company and the Project. 
  

	 	2.05	Operating Budget 

 Attached hereto as
Exhibit C is the annual operating budget for the Company for the remainder of the 2007 Fiscal Year. On October 31 of each Fiscal Year of the Company commencing on October 31, 2007, the Operating Member shall submit a new annual
operating budget for the Company for the ensuing Fiscal Year for the review and approval of the Management Committee (the initial and each new annual operating budget, as approved, being the “Operating Budget”). Each Operating
Budget shall set forth on a detailed itemized basis: (i) all receipts projected for the period of such Operating Budget and all expenses, by category, for the Company (including, without limitation, all repairs and capital expenditures
projected to be incurred during such period), (ii) the anticipated operating reserves and working capital projected to be required for such period, (iii) a schedule setting forth the timing and amount of any Additional Contributions
projected to be required by the Members for such Fiscal Year (or other period); and (iv) a five (5)-year projection setting forth the estimated revenues, expenses and net operating income (or loss) expected to be incurred for the next five
(5) years for the Company which shall be updated to compare the actual results to the projected results set forth in the prior Operating Budget. The Operating Budget shall also include a detailed description of such other information, 

  

 10 

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

	 	2.06	Removal of the Operating Member 

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

  

 11 

 
replaced by one (1) or more representatives to be appointed by the Management Committee. In the event there is a dispute as to whether a Removal Event
occurred, then Lippert Management shall cease to be the Operating Member and shall no longer have any right to appoint any representative to the Management Committee, and, if it shall be later determined by a court of competent jurisdiction that a
Removal Event did not occur, then Lippert Management shall be deemed to have been terminated pursuant to Section 2.06(c). 
 (c)
Other Removal. For any reason, the Management Committee may elect (in its sole and absolute discretion) at any time, without cause and for any or no reason, to remove Lippert Management as the Operating Member and to designate any Person as a
replacement Operating Member or as a manager who shall fulfill the duties and obligations of the Operating Member, which election may be made by written notice to Lippert Management not less than fifteen (15) days prior to the effective date of
such removal, provided that, the Management Committee agrees to meet and confer with Lippert Management during such fifteen (15) day period, at the request of Lippert Management, in connection with such removal. In such event, Lippert
Management (or its Affiliates, as applicable) shall: (i) have no further obligations under Sections 2.03, 2.04 or 2.05, and (ii) otherwise retain its Interest in the Company, including its interests in the Net Income and Net Losses
or similar items of, and to receive distributions from, the Company as provided in Articles 4 and 5 of this Agreement. If Lippert Management is removed as Operating Member pursuant to this Section 2.06(c), then (A) any such
replacement Operating Member shall not receive any additional fees or “carried interest” or other profits interest in the Company unless such interest is paid from Paladin’s Interest in the Company and (B) Lippert Management may
elect, by written notice to Paladin within thirty (30) days after the effective date of such removal, to require Paladin to purchase 100% of the Lippert Members’ Interests in accordance with the procedures set forth in the last two
sentences of Section 7.02, and in Section 7.03(a), (b) and (d) and Section 7.05, Section 7.06, Section 7.07, Section 7.08 and Section 7.10 as if a Lippert
Member were a Defaulting Member as a result of one of the Buy-Sell Events referenced in Section 7.01(e)-(g) and the Lippert Members were the Selling Member and Paladin the Purchasing Member under such provisions of this Agreement (but in
such case the provisions of clause (iv) of Section 7.03(a) shall not apply). If Lippert Management fails to make such election by written notice to Paladin at or before the end of such thirty (30) day period, then Lippert
Management shall be deemed to have waived its rights under clause (B) immediately above. In addition, if Lippert Management is removed as Operating Member pursuant to this Section 2.06(c), then Paladin shall use its reasonable
efforts to obtain written releases of the Lippert Members (and their respective Affiliates) from all guarantees of liabilities of the Company previously executed by the Lippert Members (and its Affiliates). To the extent such releases cannot be
obtained by Paladin, Paladin shall indemnify, defend, protect and hold the Lippert Members (and such Affiliates) wholly free and harmless from and against any and all claims, liabilities, causes of action, liens, charges, and all other matters
arising from such liabilities or guarantees, arising subsequent to the Effective Date of such removal. 
  

 12 

 (d) Contracts. If Lippert Management is removed as the Operating Member (whether pursuant to
either Section 2.06(a) or Section 2.06(c)), then Paladin (acting alone and outside of the Management Committee), on behalf of the Company, shall also have the right to terminate Lippert Management’s right to provide the services
provided for in Section 2.12 and to terminate any other agreement between the Company and Lippert Management or any Affiliate of either the Lippert Members (including, without limitation, the Property Management Agreement described in
Section 2.12), without penalty. If Lippert Management is removed as the Operating Member pursuant to Section 2.06(c) and Paladin elects to terminate Lippert Management’s (or its Affiliate’s) right to provide the
services provided for in Section 2.12 or to terminate any contract between the Company and Lippert or an Affiliate of either of the Lippert Members, then the Company shall be obligated to engage a third party other than an Affiliate of
Paladin to undertake the services previously provided by Lippert Management or the Affiliate of Lippert Members and which were terminated. If Lippert Management is removed as the Operating Member pursuant to Section 2.06(a) as a result
of the occurrence of a Removal Event, then the Company may engage either an Affiliate of Paladin or a third party to complete the services that were being provided under the terminated contract or other arrangement. 
  

	 	2.07	Liability and Indemnity 

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

 13 

 (c) Survival. The provisions of this Section 2.07 shall survive the termination of
this Agreement. 
  

	 	2.08	Limited Liability 

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

	 	2.09	Other Activities 

 Lippert Management, as the
Operating Member, agrees to carry out the business and affairs of the Company in accordance with the terms and conditions of this Agreement and shall devote all such time to the Company as is necessary for the efficient operation of the business and
affairs of the Company. Except as otherwise provided in Section 2.11 of this Agreement or any Operating Budget, or as otherwise approved by the Management Committee, the Operating Member shall not be paid any compensation by the Company
for providing such services to the Company. No Member shall have any obligations (fiduciary or otherwise) with respect to the Company or to the other Member insofar as making other investment opportunities available to the Company or to the other
Members. Each Member may engage in whatever activity such Member may choose without having or incurring any obligation to offer any interest in such activity to the Company or to the other Members. 
  

	 	2.10	Brokers Indemnity 

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

	 	2.11	Reimbursement; Compensation 

 (a)
Compensation. Except as otherwise expressly provided in this Agreement or as provided in any applicable Operating Budget, no Member or any constituent partner, member, shareholder, officer, director, employee, agent, representative or
Affiliate thereof shall receive any remuneration for services rendered to or in connection with the Company or be reimbursed for general administrative and overhead expenses. 
  

 14 

 (b) Reimbursement of Expenses. Notwithstanding the foregoing: (i) each Member shall be
reimbursed from the initial contributions made by the Members pursuant to Section 3.01 for any and all costs (including legal fees) reasonably and actually incurred by such Member in connection with the transactions contemplated herein
(including the formation of the Company, and the negotiation and documentation of this Agreement), and (ii) each Member and its representatives shall be reimbursed for any out-of-pocket travel and other costs and expenses reasonably and
actually incurred in connection with the business and affairs of the Company, but such reimbursement shall not include any costs or charges for time expended by any Member’s employees or other representatives or overhead costs of any Member.

  

	 	2.12	Property Management 

 C.R.E.S. Management,
L.L.C., a Missouri limited liability company, which is an Affiliate of Lippert Management, initially shall be the Property Manager of the Project and shall manage and operate the Project in accordance with a Property Management Agreement between the
Company and such Property Manager in the form approved by the Management Committee (the “Property Management Agreement”). The Property Management Agreement shall provide for (i) an initial one year term with automatic one year
renewals, (ii) termination by either the Company or the Property Manager upon not less than thirty (30) days prior written notice or upon a sale of the Project, and (iii) a management fee payable monthly, in arrears, to the Property
Manager with respect to the Project equal to five percent (5%) of the monthly gross revenues from the Project; provided, however, that if during any month for which such management fee is due and payable, there is insufficient Cash Flow
to fund payment to Paladin of its Unpaid Preferred Return accrued and owing through the end of such month, then a portion of the management fees payable to the Property Manager for such month up to, but not exceeding, two and one half percent
(2.5%) of the monthly gross revenues of the Project for such month shall be deferred by the Property Manager and paid to Paladin to the extent (but only to the extent) of its Unpaid Preferred Return (collectively, the “Deferred
Management Fees”) and shall be paid to the Property Manager only from available Cash Flow pursuant to Section 5.01(b) and Section 5.02(a). All amounts paid to the Property Manager as management fees (including
Deferred Management Fees) shall be treated as amounts paid to a person other than a Member as described in Section 707(a) of the Code. In addition to the fees payable as provided above in this Section 2.12, upon the execution
of this Agreement, the Company shall pay to Lippert Management or its Affiliate a one-time due diligence fee in the amount of $20,000. 
  

 15 

 ARTICLE 3 
 MEMBERS’ CAPITAL CONTRIBUTIONS 
  

	 	3.01	Initial Contributions of the Members 

 (a)
Initial Capital Contributions. Simultaneously with the execution of this Agreement, the Members have contributed to the Company in cash their respective Initial Capital Contributions in the amounts shown on Exhibit A hereto.

 (b) Credit to Capital Accounts. Any and all Capital Contributions made by each Member pursuant to this Section 3.01 and
Sections 3.02 and 3.03 shall be credited to the Capital Account and Unrecovered Contribution Account of each such Member as of the date any such Capital Contribution is made. 
  

	 	3.02	Additional Contributions 

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

	 	3.03	Remedy For Failure to Contribute Capital 

 (a) Failure to Contribute. If any Member (the “Non-Contributing Member”) fails timely to make all or any portion of any Additional Contribution such Member is required to contribute pursuant to
Section 3.02 (the “Delinquent Contribution”) and such failure continues for five (5) days following the Effective Date of notice thereof from the other Member, such other Member (the “Contributing
Member”), in addition to any and all other remedies available to the Contributing Member under this Agreement or otherwise at law or in equity (including, without limitation, instituting a legal proceeding to collect the Delinquent
Contribution), shall have the right, but not the obligation, to proceed in accordance with the terms and conditions set forth below in this Section 3.03 and, in addition, if either of the Lippert Members is the Non-Contributing Member, a
Cash Flow Bonus Forfeiture Event shall exist for purposes of Sections 5.01(c) and 5.02(g). For purposes of this Section 3.03, the Lippert Members shall be treated collectively as one party and shall act as one Member (and shall be
either the Contributing Member or the Non-Contributing Member, as the case may be). 
  

 16 

 (b) Default Loan. The Contributing Member may advance to the Company, in cash, within thirty
(30) days following the Contribution Date, an amount equal to the Delinquent Contribution, and such advance by the Contributing Member shall be treated as a non-recourse loan by the Contributing Member to the Non-Contributing Member (a
“Member Loan”), bearing interest at a rate equal to the lesser of the then current prime rate as most recently reported by the Western Edition of the Wall Street Journal, plus five percentage points, adjusted and compounded
concurrently with any adjustments to such prime rate, or the maximum, nonusurious rate then permitted by applicable law for such loans. Each Member Loan shall be due and payable upon the earlier of six (6) months from the date such Member
Loan is advanced or the dissolution of the Company. If Paladin is the Contributing Member, then both Members shall take all actions and execute all documents (including a written promissory note evidencing the obligation of the Non-Contributing
Member) necessary to ensure that the obligation meets the “straight debt safe harbor” described in Section 856(m) of the Code. 
 As of the Effective Date of any advance of a Member Loan, the Non-Contributing Member shall be deemed to have contributed an amount equal to the principal amount of such Member Loan to the capital of the Company, and the Capital Account and
Unrecovered Contribution Account of the Non-Contributing Member shall be credited with a like amount. Notwithstanding the provisions of Articles 5 and 8, until any and all Member Loans are repaid in full, the Non-Contributing Member shall
draw no further distributions from the Company, and all cash or property otherwise distributable with respect to the Non-Contributing Member’s Interest (or fees payable to the Non-Contributing Member or any of its Affiliates, excluding,
however, any fees payable under Section 2.12) shall be distributed to the Contributing Member in repayment of the outstanding balance of the Member Loan, with such funds being applied first to reduce any and all interest accrued on such
Member Loan and then to reduce the principal amount thereof. Any amounts so applied shall be treated, for all purposes under this Agreement, as having actually been distributed to the Non-Contributing Member and applied by the Non-Contributing
Member to repay the outstanding Member Loan. 
 If, upon the maturity of a Member Loan (taking into account any agreed upon extensions
thereof), any principal thereof or accrued interest thereon remains outstanding, the Contributing Member shall elect one of the following options: (i) to renew such Member Loan (or portion thereof) pursuant to the terms and provisions of this
Section 3.03(b) for an additional term of six (6) months; (ii) to contribute all or any portion of such outstanding principal of and accrued, unpaid interest on such Member Loan (or portion thereof) to the capital of the
Company and dilute the Percentage Interest of the Non-Contributing Member in accordance with the provisions of Section 3.03(c); or (iii) elect to exercise the buy-sell provisions contained in Article 7 in accordance with the
provisions of Section 3.03(d), in which event the Member Loan shall remain in effect until the closing of the buy-sell transaction contemplated under Article 7. The Contributing Member may elect any of the options set forth in the
immediately preceding sentence by giving written notice of such election to the Non-Contributing Member within thirty (30) days prior to such maturity date of the Member Loan. Failure of the Contributing Member to timely give such written
notice to the Non-Contributing Member shall be deemed to constitute an election to renew such Member Loan for an additional term of six (6) months on the terms set forth herein. 
  

 17 

 (c) Dilution. The Contributing Member may contribute to the capital of the Company, in cash,
within thirty (30) days following the Contribution Date, an amount equal to the Delinquent Contribution, and the Capital Account and Unrecovered Contribution Account of the Contributing Member shall be credited with the amount so contributed.
In the alternative, if the Contributing Member elected to make a Member Loan, then upon the maturity of a Member Loan that is not fully repaid on or before the maturity date thereof, the Contributing Member also may contribute to the capital of the
Company, in accordance with the provisions of Section 3.03(b) above, all or any portion of the outstanding principal of and accrued, unpaid interest on such Member Loan (or portion thereof) and (i) the amount of such outstanding
principal and interest so contributed shall be deemed repaid and satisfied, (ii) the amount of such outstanding principal and interest shall be deemed to have been distributed to the Non-Contributing Member, and debited from the Capital Account
and Unrecovered Contribution Account of the Non-Contributing Member, and (iii) the Capital Account and Unrecovered Contribution Account of the Contributing Member shall be increased by the amount of such outstanding principal and interest so
contributed. 
 Upon the contribution of any Delinquent Contribution (or the contribution of the principal and interest of any Member Loan by
the Contributing Member pursuant to this Section 3.03(c)), the Percentage Interest (but not the Contribution Percentage) of the Non-Contributing Member shall be decreased by the Dilution Percentage. The “Dilution
Percentage” shall equal the amount expressed in percentage points (rounded to the nearest one-hundredth of a percentage point) calculated based upon the following formula: 
  

					
		  		  	Delinquent Contribution (or the outstanding balance of any Member Loan (including interest)) contributed by the Contributing Member
	Dilution Percentage = 200%	  	    x    	  	  
  

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

 The Percentage Interest, but not the Contribution Percentage, of the Contributing Member shall be
increased by the amount of the reduction in the Percentage Interest of the Non-Contributing Member. 
  

 18 

 The application of the provisions of this Section 3.03(c) is illustrated by the following
example: Assume that (i) the Unrecovered Contribution Amount of the Members was equal to $4,000,000, (ii) an Additional Contribution of $200,000 was required to be contributed by the Members to the capital of the Company, (iii) the
Non-Contributing Member whose aggregate Percentage Interest is 2.5% failed to contribute its share of such contribution of $5,000 (i.e., 2.5% x $200,000), and (iv) pursuant to this Section 3.03(c), the Contributing Member whose
Percentage Interest is 97.5% made the Delinquent Contribution of $5,000 to the capital of the Company on behalf of such Non-Contributing Member pursuant to this Section 3.03(c). 
 The Dilution Percentage applicable to the Non-Contributing Member would be equal to 0.24 percentage points as calculated in accordance with the following
formula: 
  

										
		 		 		 	$	5,000	  	
		 	0.24% = 200%	 	    x            	 	$	4,200,000	  	

 The Percentage Interest of the Non-Contributing Member therefore would be reduced by 0.24 percentage points from
2.5% to 2.26%, and the Percentage Interest of the Contributing Member would be increased by a like amount of percentage points from 97.5% to 95.74%. 
 The Contribution Percentages of the Members would not be adjusted as a result of the foregoing dilution. 
 (d) Implementation of Buy-Sell. In addition to the options set forth in Sections 3.03(b) and 3.03(c) above, the Contributing Member may elect to implement the buy-sell provisions contained in Article 7 for a
Default Buy-Sell Event by delivery of written notice of such election to the Non-Contributing Member in accordance with the provisions thereof (and in which case the Non-Contributing Member shall be deemed to be the Defaulting Member and the
Contributing Member shall be deemed to be the Non-Defaulting Member for purposes of Article 7); provided, however, that if the Contributing Member so elects to implement the buy-sell provisions contained in Article 7 and the
Contributing Member also exercises its rights under Section 3.03(c), then in computing the Dilution Percentage in Section 3.03(c) in connection with the contribution of the Delinquent Contribution or any portion of the outstanding
principal of and/or accrued, unpaid interest on any Member Loan that is the subject of the Default Buy-Sell Event, the 200% number used in the dilution formula in Section 3.03(c) above shall be 100%. 
 (e) Application of Provisions. Any and all adjustments to the Non-Contributing Member’s Percentage Interest shall be rounded to the nearest
..01% and (except as provided otherwise in the first paragraph of Section 3.03(b)) the Contributing Member shall not succeed to all or any portion of the Capital Account or Unrecovered Contribution Account of the Non-Contributing Member
as the result of any such adjustment. In addition, notwithstanding any provision contained in this Article 3, the Non-Contributing 

  

 19 

 
Member’s Percentage Interests shall in no event be reduced below .01% by operation of Section 3.03(d). As a result of any contribution to
the capital of the Company pursuant to this Section 3.03, the Contributing Member shall have the right, but not the obligation, to cause the Capital Accounts of the Members to be booked-up or booked-down in accordance with the provisions
of Treasury Regulation Section l.704-l(b)(2)(iv)(f) to reflect the fair market value of the Company’s assets (as reasonably determined by the Contributing Member) at the time of such contribution. 
  

	 	3.04	Debt Financing 

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

	 	3.05	Loans from Members 

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

	 	3.06	Capital Contributions in General 

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

 20 

 ARTICLE 4 
 ALLOCATION OF PROFITS AND LOSSES 
  

	 	4.01	Allocation of Net Profits and Net Losses 

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

	 	4.02	Regulatory Allocations 

 Prior to making any
allocations pursuant to Sections 4.01, 4.02 or 4.03 hereof, the following special allocations shall be made each Fiscal Year, to the extent required, in the following order: 
 (a) Minimum Gain Chargebacks. Items of Company income and gain shall be allocated for any Fiscal Year to the extent, and in an
amount sufficient to satisfy the “minimum gain chargeback” requirements of Treasury Regulation Sections 1.704-2(f) and (i)(4). 
 (b) Qualified Income Offset. Items of Company income and gain shall be allocated any Fiscal Year to the extent, and in an amount sufficient to satisfy the “qualified income offset” requirements of
Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(3). 
 (c) Member Nonrecourse Deductions. Member Nonrecourse
Deductions shall be allocated to the Member who bears the economic risk of loss associated with such deductions, in accordance with Treasury Regulations Section 1.704-2(i). 
 (d) Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Year shall be allocated among the Members in accordance with
their Contribution Percentages. 
 (e) Section 754 Adjustments. To the extent an adjustment to the adjusted tax
basis of any Company asset pursuant to Sections 734(b) or 743(b) of the Code is required, pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m) to be taken into account in determining Capital Accounts, the amount of such adjustment to
the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Members in accordance with the
requirements of Treasury Regulation Section 1.704-1(b)(2)(iv)(m). 
  

 21 

	 	4.03	Other Special Allocations 

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

	 	4.04	Other Allocation Rules 

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

 22 

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

	 	5.01	Distribution of Ordinary Cash Flow 

 Subject
to the provisions of Sections 5.03, 7.04 and 8.02, Ordinary Cash Flow realized by the Company shall be distributed to the Members as soon as practicable following the Company’s receipt thereof in the following order of priority:

 (a) First, to Paladin until Paladin’s Unpaid Preferred Return has been reduced to zero; 
 (b) Second, unless a Cash Flow Bonus Forfeiture Event exists, to the Property Manager until the Deferred Management Fee Account has been
reduced to zero; 
 (c) Third, to the Lippert Members, pro rata in accordance with their respective Percentage Interests,
until each of the Lippert Member’s Unpaid Preferred Return has been reduced to zero; and 
 (d) Thereafter, seventy-five
percent (75%) to Paladin and twenty-five percent (25%) to the Lippert Members, or if a Cash Flow Bonus Forfeiture Event exists, to the Members pro rata in accordance with their respective Percentage Interests. 
  

 23 

	 	5.02	Distribution of Extraordinary Cash Flow 

 Subject to the provisions of Sections 5.03, 7.04 and 8.02, Extraordinary Cash Flow realized by the Company shall be distributed to the Members as soon as practicable following the Company’s receipt thereof in the following order
of priority: 
 (a) First, unless a Cash Flow Bonus Forfeiture Event exists, to the Property Manager until the Deferred
Management Fee Account has been reduced to zero; 
 (b) Second, to Paladin until Paladin’s Unpaid Preferred Return is
reduced to zero; 
 (c) Third, to Paladin until Paladin’s Unrecovered Contribution Account is reduced to zero;

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

	 	5.03	Limitations on Distributions 

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

	 	5.04	In-Kind Distribution 

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

 24 

	 	5.05	Right to Withhold 

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

	 	6.01	Limitations on Transfer 

 Except as permitted
pursuant to Section 6.02 below, no Member or assignee of a Member shall be entitled to sell, exchange, assign, transfer, convey or otherwise dispose of, pledge, hypothecate, encumber or otherwise grant a security interest in, directly or
indirectly, for value or no value, whether voluntary or involuntary (including by operation of law or other legal or equitable proceedings) (collectively, “Transfer”), all or any part of such Member’s or assignee’s
Interest, including, without limitation, Transfers of any economic interest, without the prior written consent of the other Members, which consent may be granted or withheld in each such other Member’s sole discretion. Any attempted Transfer,
or withdrawal by a Member in violation of the restrictions set forth in this Article 6 shall, unless this provision is waived by the other Members (each acting in its sole and absolute discretion), be null and void ab initio and of no force
or effect and, in addition to the other rights and remedies at law and in equity, any of the other Members shall be entitled to injunctive relief enjoining the prohibited action. The Members expressly agree that damages at law would be an inadequate
remedy for a breach or threatened breach of the Transfer restrictions set forth in this Agreement. 
  

	 	6.02	Permitted Transfers 

 Notwithstanding the
foregoing, any Member may Transfer all or any portion of such Member’s Interest to any of the following (collectively, “Permitted Transferees”) without complying with the provisions of Section 6.01: 
 (a) In the case of Transfers by Paladin, (i) any Transfer of any direct or indirect Interest in Paladin to any Affiliate of Paladin
and (ii) any Transfer of a direct or indirect interest in Paladin Realty Income Properties, L.P. or the Paladin REIT to any Person; and 
  

 25 

 (b) In the case of Transfers by any Lippert Member, any Transfer of an interest in
Lippert Management or Lippert Holdings to any Immediate Family Member of James Lippert or Teresa Lippert upon the death or disability of James Lippert or Theresa Lippert. 
 Upon receipt by the Management Committee of notice of such Transfer (along with a copy of the instrument(s) of transfer), any such Permitted Transferees shall receive and hold such Interest or portion thereof, subject
to the terms of this Agreement (including Article 4) and to the obligations hereunder of the transferor, and there shall be no further Transfer of such Interest (or economic interest) or portion thereof except to a Person to whom such
Permitted Transferee could have transferred such Interest (or economic interest) or portion thereof in accordance with this Section 6.02 had such Permitted Transferee originally been a Member or otherwise in accordance with the terms of
this Agreement. Notwithstanding any other provision contained herein, any Transfer described in this Section 6.02 shall be null and void ab initio and of no force or effect if such Transfer would otherwise violate the provisions of
Section 6.04. 
  

	 	6.03	Admission of Substitute Members 

 If any
Member Transfers such Member’s Interest to a transferee in accordance with Sections 6.01 or 6.02, then such transferee shall only be entitled to be admitted into the Company as a substitute Member if (i) the books and records
of the Company are amended to reflect such admission; (ii) the Management Committee approves the admission of such transferee (but only in the event of a transfer in accordance with Section 6.01) and approves the form and content of
the instrument of transfer; (iii) the transferor and transferee named therein execute and acknowledge such other instruments as the Management Committee may deem reasonably necessary to effectuate such admission; (iv) the transferee in
writing accepts and adopts all of the terms and conditions of this Agreement, as the same may have been amended; and (v) the transferor pays, as the Management Committee may reasonably determine, all reasonable expenses incurred in connection
with such admission, including, without limitation, legal fees and costs. In the event of a Transfer in part of a Member’s Interest under Section 6.02 and the admission of the transferee into the Company as a member, such transferee
member shall be required to act together as one Person with the Person(s) holding the remainder of the entire Interest as of the date of this Agreement from whence such transferee member’s interest originally derived. To the fullest extent
permitted by law, any transferee of an Interest who does not become a substituted Member shall have no right to require any information or account of the Company’s transactions, to inspect the Company books, or to vote on any of the matters as
to which a Member would be entitled to vote under this Agreement. Any such transferee shall only be entitled to share, as an assignee, in such Net Profits and Net Losses, to receive such distributions, and to receive such allocations of income,
gain, loss, deduction or credit or 

  

 26 

 
similar items to which the transferor was entitled, to the extent assigned. A Member that Transfers its Interest shall not cease to be a member of the
Company until the admission of the transferee as a substituted member of the Company and, except as provided in the preceding sentence, shall continue to be entitled to exercise, and shall continue to be subject to, all of the rights, duties and
obligations of such Member under this Agreement. 
  

	 	6.04	Additional Restrictions on Transfer 

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

	 	6.05	Paladin Purchase Option 

 (a) Grant of
Option. The Lippert Members hereby grant to Paladin the right and option to purchase all of the Interests of the Lippert Members (the “Purchase Option”) for the purchase price determined in accordance with Section 6.05(b)
(the “Option Price”) and otherwise upon and subject to the following terms and conditions of this Section 6.05. The Purchase Option may be exercised at any time and from time to time after the first anniversary of the
date of this Agreement by written notice from Paladin to the Lippert Members (the “Option Notice”). 
 (b) Option
Price. For a period of thirty (30) days following the Effective Date of the Option Notice, the Members shall attempt to agree upon the Option Price. If the Members are unable to agree on the Option Price within such thirty (30) day
period, then the Option Purchase Price shall be determined in accordance with the provisions of the following provisions of this Section 6.05. Within fifteen (15) days after the expiration of such thirty (30) day period,
Paladin shall select one (1) Qualified Appraiser and shall notify the Lippert Members in writing of such selection. Within fifteen (15) days following the Effective Date of such notice from Paladin, the Lippert Members (acting together as
one Person) shall either agree to the Qualified Appraiser selected by Paladin or select a second (2nd) Qualified Appraiser and give written notice to Paladin of the Person so selected. If either Paladin or the Lippert Members fail to appoint a
Qualified Appraiser within the time period specified above and after the expiration of five (5) days following the Effective Date of written demand that a Qualified Appraiser be appointed, the Qualified Appraiser duly appointed by 

  

 27 

 
the Member making such demand to appoint such Qualified Appraiser shall proceed to make the appraisal as herein set forth, and the determination thereof
shall be conclusive on all the Members. Thereafter the Qualified Appraiser or two (2) Qualified Appraisers shall determine the Appraised Value in accordance with the provisions of Section 7.03(b)(1)-(3). Within thirty (30) days
after such determination of the Appraised Value of the Company, the accountants regularly employed by the Company shall determine the Option Price, which shall be an amount equal to the amount of cash which would be distributed to the Lippert
Members pursuant to Section 5.02 if (i) the Company (including all of its assets) were sold (as applicable) for the Appraised Value thereof as of the Effective Date of the Option Notice (after deducting therefrom an amount equal to
reasonable and customary closing costs); (ii) the remaining liabilities of the Company were liquidated pursuant to Section 8.02(a); (iii) reasonable reserves were established for any contingent, conditional or unmatured
liabilities or obligations of the Company pursuant to Section 8.02(b); and (iv) the Company distributed any remaining amounts to the Lippert Members in accordance with the provisions of Section 5.02. Upon such
determination, the accountants regularly employed by the Company shall give each Member a notice thereof. 
 (c) Closing. The closing
of the purchase by Paladin of the Interests of the Lippert Members shall occur on or before the date that is thirty (30) days after the determination of the Option Price. Paladin shall pay the Option Price to the Lippert Members, in cash, on
the closing date, and at the closing, the Lippert Members shall execute such instruments of conveyance and make such representations and warranties as Paladin shall reasonably request to deliver good title to all of the Interests of the Lippert
Members, free and clear of all liens, pledges, encumbrances, security interests or restrictions of any kind whatsoever (other than restrictions on transfer arising under federal and state securities laws). 
  

	 	6.06	Election; Allocations Between Transferor and Transferee 

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

	 	6.07	Partition 

 No Member shall have the right to
partition any assets of the Company or any interest therein, nor shall a Member make an application or proceeding for a partition thereto and, upon any breach of the provisions of this Section 6.07 by any Member, the other Member (in
addition to all rights and remedies afforded by law or equity) shall be entitled to a decree or order restraining or enjoining such application, action or proceeding. Upon the Transfer of all or any part of the Interest of a Member as hereinabove
provided, Net 

  

 28 

 
Profits and Net Losses shall be allocated between the transferor and transferee on the basis of the computation method which with the approval of the
Management Committee, in its sole and absolute discretion, is in the best interests of the Company, provided such method is in conformity with the methods prescribed by Section 706 of the Code and Treasury Regulation
Section 1.706-1(c)(2)(ii). 
  

	 	6.08	Waiver of Withdrawal 

 No Member may
voluntarily withdraw, resign or retire from the Company without the prior written consent of the Members, which consent may be granted or withheld in each such Member’s sole and absolute discretion. Each Member hereby waives any and all rights
such Member may have to withdraw or resign from the Company pursuant to the Delaware Act or otherwise and hereby waives any and all rights such Member may have to receive the fair value of such Member’s Interest in the Company upon such
withdrawal, resignation or retirement pursuant to the Delaware Act. No admission or withdrawal of a Member, whether in accordance with this Agreement or otherwise, shall cause the dissolution of the Company except as otherwise provided in
Section 8.01. Any purported admission, withdrawal or removal which is not in accordance with this Agreement shall be null and void and, in addition to other rights and remedies at law and in equity, the other Member(s) shall be entitled
to injunctive relief enjoining the prohibited action. The Members expressly acknowledge that damages at law would be an inadequate remedy for a breach or threatened breach of the foregoing restrictions. 
 ARTICLE 7 
 DEFAULT BUY-SELL
AGREEMENT 
  

	 	7.01	Default Buy-Sell Events 

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

  

 29 

 (c) Prohibited Transfer or Encumbrance. Any Transfer or encumbrance or attempted
Transfer or encumbrance by any Member of such Member’s Interest contrary to the provisions of Article 6; 
 (d) Breach of Agreement. Any Material Breach (which shall include the notice and cure provisions to the extent provided in the definition of Material Breach) by any Member (except for the failure of any Member to make an Additional
Contribution required hereunder); 
 (e) Bankruptcy or Insolvency. The rendering, by a court with appropriate
jurisdiction, of a decree or order (i) adjudging a Member bankrupt or insolvent; or (ii) approving as properly filed a petition seeking reorganization, readjustment, arrangement, composition, or similar relief for a Member under the
federal bankruptcy laws or any other similar applicable law or practice, and if such decree or order referred to in this Section 7.01(e) shall have continued undischarged and unstayed for a period of sixty (60) days; 
 (f) Appointment of Receiver. The rendering, by a court with appropriate jurisdiction, of a decree or order (i) for the
appointment of a receiver, a liquidator, or a trustee or assignee in bankruptcy or insolvency of a Member, or for the winding up and liquidation of a Member’s affairs, provided that such decree or order shall have remained in force undischarged
and unstayed for a period of ninety (90) days, or (ii) for the sequestration or attachment of any property of a Member without its return to the possession of such Member or its release from such sequestration or attachment within ninety
(90) days thereafter; and 
 (g) Bankruptcy Proceedings. A Member (i) institutes proceedings to be
adjudicated a voluntary bankrupt or an insolvent, (ii) consents to the filing of a bankruptcy proceeding against such Member, (iii) is unable to or admits in writing such Member’s inability to pay such Member’s debts generally as
they become due, or (iv) files a petition or answer or consent seeking reorganization, readjustment, arrangement, composition, or similar relief for such Member under the federal bankruptcy laws or any other similar applicable law or practice,
(iv) consents to the filing of any such petition, or to the appointment of a receiver, a liquidator, or a trustee or assignee in bankruptcy or insolvency for such Member or a substantial part of such Member’s property, (v) makes an
assignment for the benefit of such Member’s creditors, or (vi) takes any action in furtherance of any of the aforesaid purposes. 
 For the purposes of implementing the provisions contained in this Article 7 and otherwise for purposes of this Agreement, (A) each of the events set forth in Sections 7.01(a)-(g) shall constitute a “Default
Buy-Sell Event”; (B) the “Defaulting Member” shall be (i) in the case of the occurrence of the event referenced in Section 7.01(a), the Member that has withdrawn, retired or ceased to serve as a Member
of the Company in violation of the terms of this Agreement; (ii) in the case of the occurrence of the event 

  

 30 

 
referenced in Section 7.01(b), the Operating Member; (iii) in the case of the occurrence of the event referenced in
Section 7.01(c), the Member that purports to undertake a Transfer of such Member’s rights or interests contrary to the provisions of Article 6; (iv) in the case of the occurrence of the event referenced in
Section 7.01(d), the Member that has breached any material covenant, duty or obligation under this Agreement; and (v) in the case of any of the events referenced in Section 7.01(e), (f), or (g), the Member who is the
subject of such court decree or order or has instituted such proceedings or filed such petitions or who is insolvent, etc; and (C) the “Non-Defaulting Member” is the Member that is not the Defaulting Member. In addition, for
purposes of implementing the provisions of this Article VII, a Default Buy/Sell Event with respect one of the Lippert Members shall constitute a Default Buy/Sell Event with respect to all of the Lippert Members, and with respect to any
Default Buy/Sell Event, the Lippert Members shall be treated and act collectively as one Member (and shall be either the Defaulting Member or the Non-Defaulting Member, as the case may be). 
  

	 	7.02	Rights Arising From a Default Buy-Sell Event 

 At any time following the occurrence of a Default Buy-Sell Event, the Non-Defaulting Member shall have the right (but shall not be obligated to) either to (i) cause the sale of the Company or its assets to any unaffiliated third party
for a purchase price based upon the sole and absolute judgment of the Non-Defaulting Member (“Third-Party Purchase Price,” as further set forth in Section 7.03(c)), and such other terms and conditions as are determined in the
sole discretion of the Non-Defaulting Member or (ii) purchase the Interest of the Defaulting Member in accordance with the terms and conditions set forth in this Article 7, in either case, by delivering written notice (“Default
Notice”) thereof to the Defaulting Member, or (iii) exercise any other rights or remedies available to the Non-Defaulting Member under this Agreement or at law or in equity as a result of such Default Buy-Sell Event; provided,
however, that the failure of the Non-Defaulting Member to exercise any of the foregoing rights shall not be deemed to constitute a waiver of any Default Buy-Sell Event or any rights and remedies (and the provisions of Section 7.09
shall apply to the Defaulting Member). For a period of fifteen (15) days following the Effective Date of any Default Notice, the Members shall attempt to agree upon a purchase price for the Defaulting Member’s Interest (the “Buyout
Purchase Price”) in the event the Non-Defaulting Member desires to purchase the Interest of the Defaulting Member. If the Members are unable to agree on a Buyout Purchase Price, then the Default Purchase Price shall be determined in
accordance with the provisions of Section 7.03(a) based on the Appraised Value as determined pursuant to Section 7.03(b). 
  

	 	7.03	Determination of Purchase Price 

 (a)
Member Buyout. Within thirty (30) days after the determination of the Buyout Purchase Price or, in the absence thereof, the determination of the Appraised Value of the Company pursuant to Section 7.03(b), the accountants
regularly employed by 

  

 31 

 
the Company shall determine the amount of cash which would be distributed to each Member pursuant to Section 5.02 if (i) the Company
(including all of its assets) were sold (as applicable) for the Buyout Purchase Price or Appraised Value thereof (as applicable) as of the Effective Date of the Default Notice (after deducting therefrom an amount equal to reasonable and customary
closing costs); (ii) the remaining liabilities of the Company were liquidated pursuant to Section 8.02(a); (iii) reasonable reserves were established for any contingent, conditional or unmatured liabilities or obligations of
the Company pursuant to Section 8.02(b); (iv) if (and only if) the Defaulting Member is a Lippert Member, a Cash Flow Bonus Forfeiture Event existed for purposes of Sections 5.01(d) and 5.02(h); and (v) the Company
distributed any remaining amounts to the Members in accordance with the provisions of Section 5.02. Upon such determination, the accountants regularly employed by the Company shall give each Member a notice thereof (the “Price
Determination Notice”). The determination by the accountants of such amounts, including all components thereof, shall be deemed conclusive absent any material computational error. If the Non-Defaulting Member purchases the Interest of the
Defaulting Member, ninety percent (90%) of the amount that would be distributed to the Defaulting Member pursuant to clause (v) above shall be deemed to be the “Default Purchase Price” for purposes of this Article
7; provided, however, that if the Buy-Sell Event applicable to the Defaulting Member is not one of the Buy-Sell Events referenced in Sections 7.01(a), (b), (c) or (d), then one hundred percent (100%) of the amount that would
be distributed to the Defaulting Member pursuant to clause (v) above shall be deemed to be the “Default Purchase Price” for purposes of this Article 7. 
 (b) Determination of Appraised Value. For purposes of this Article 7 and Section 6.05, the appraised value (“Appraised
Value”) of the assets of the Company shall be determined by one (1) or more independent Qualified Appraisers. The Non-Defaulting Member shall select one (1) Qualified Appraiser and shall include such selection in the Default
Notice. Within fifteen (15) days following the Effective Date of the Default Notice, the Defaulting Member shall either agree to the Qualified Appraiser selected by the Non-Defaulting Member or select a second (2nd) Qualified Appraiser and
give written notice to the Non-Defaulting Member of the person so selected. If either the Non-Defaulting Member or the Defaulting Member fails to appoint a Qualified Appraiser within the time period specified and after the expiration of five
(5) days following the Effective Date of written demand that a Qualified Appraiser be appointed, the Qualified Appraiser duly appointed by the Member making such demand to appoint such Qualified Appraiser shall proceed to make the appraisal as
herein set forth, and the determination thereof shall be conclusive on all the Members. 
 (1) The Qualified Appraiser or two
(2) Qualified Appraisers, as the case may be, shall promptly fix a time for the completion of the appraisal, which shall not be later than thirty (30) days from the Effective Date of the appointment of the last Qualified Appraiser.

 (2) The Qualified Appraiser(s) shall determine the Appraised Value by determining the fair market value of the assets of
the Company, such being the fairest price estimated in the terms of money which the Company could obtain if the assets of the Company were sold, for all cash, in the open market allowing a reasonable time to find a purchaser. 
  

 32 

 (3) Upon submission of the appraisals setting forth the opinions as to the Appraised
Value of the assets of the Company, the average of the two (2) appraisals shall constitute the Appraised Value of the assets of the Company for purposes of this Article 7. 
 (c) Sale to Third Party. Within ten (10) days after the closing of any sale of the Company or its assets to any third party pursuant to
clause (i) of Section 7.02, the accountants regularly employed by the Company shall determine the amount of cash which would be distributed to each Member pursuant to Section 5.02 after (i) the sale of the Company
(including all of its assets) to the third party for the Third-Party Purchase Price as of the closing of the sale of the Company or its assets (after deducting therefrom an amount equal to reasonable and customary closing costs and any prepayment
fees on any indebtedness that would be payable in connection with any such sale); (ii) the liquidation of the remaining liabilities of the Company pursuant to Section 8.02(a); (iii) the establishment of reserves in an amount
reasonably determined by the Non-Defaulting Member for any contingent, conditional or unmatured liabilities or obligations of the Company pursuant to Section 8.02(b); (iv) if a Lippert Member is the Defaulting Member, the existence
of a Cash Flow Bonus Forfeiture Event for purposes of Sections 5.01(d) and 5.02(h); and (v) the distribution by the Company of any remaining amounts to the Members in accordance with the provisions of Section 5.02. Upon such
determination, the accountants regularly employed by the Company shall give each Member a Price Determination Notice thereof. The determination by the accountants of such amounts, including all components thereof, shall be deemed conclusive absent
any material computational error. In the event of any such third party sale, ninety percent (90%) of the amount that would be distributed to the Defaulting Member pursuant to clause (v) above shall be deemed to be the “Default
Purchase Price” for purposes of this Article 7. 
 (d) Payment of
Costs. The Non-Defaulting Member shall pay for the services of the Qualified Appraiser appointed by such Member, and the Defaulting Member shall pay for the services of the Qualified Appraiser appointed by such Member. The cost of the services
of the third (3rd) Qualified Appraiser, if any, shall be paid one-half ( 1/2) by the Non-Defaulting
Member and one-half ( 1/2) by the Defaulting Member. The costs of the services of the accountants and, in the
event only one (1) Qualified Appraiser is required, the cost of the services of such Qualified Appraiser, shall be paid one-half ( 1/2) by the Non-Defaulting Member and one-half ( 1/2) by the Defaulting Member. 

  

 33 

	 	7.04	Member’s Option 

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

	 	7.05	Closing of Purchase and Sale 

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

	 	7.06	Payment of Purchase Price 

 The Purchase
Price for the purchase of the Selling Member’s Interest shall be paid by the Purchasing Member (or such Member’s nominee(s)) at the closing, in cash or one (1) or more certified or bank cashier’s checks drawn and made payable to
the 

  

 34 

 
order of the Selling Member. If the Company or its assets are sold to a third party pursuant to this Article 7, then the entire Third Party Purchase
Price shall be paid concurrently with such closing. 
  

	 	7.07	Release and Indemnity 

 On or before the
closing of a purchase held pursuant to this Article 7, the Purchasing Member shall use such Member’s reasonable efforts to obtain written releases of the Selling Member (and such Member’s Affiliates) from all liabilities of the
Company and from all guarantees of such liabilities of the Company previously executed by the Selling Member (and its Affiliates). To the extent such releases cannot be obtained by the Purchasing Member, the Purchasing Member shall indemnify,
defend, protect and hold the Selling Member (and such Affiliates) wholly free and harmless from and against any and all claims, liabilities, causes of action, liens, charges, and all other matters arising from such liabilities or guarantees, arising
subsequent to the Effective Date of such closing. 
  

	 	7.08	Repayment of Member Loans 

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

	 	7.09	Voting Rights Following Default Buy-Sell Event 

 From and after the occurrence of a Default Buy-Sell Event (unless and until the Non-Defaulting Member waives in writing any Default Buy-Sell Event or fails to timely consummate the closing of any applicable transaction described in this
Article 7 pursuant to Section 7.05), (i) the Defaulting Member shall not be entitled to participate in the management of, or otherwise vote upon, any matter affecting the business and affairs of, the Company or any matter
that such Member is entitled to vote upon under this 

  

 35 

 
Agreement, (ii) the Defaulting Member shall no longer have any right to appoint any representative to the Management Committee and any previously
appointed representatives of the Defaulting Member shall be replaced by one (1) or more representatives to be appointed by the Non-Defaulting Member, and (iii) the rights of the Defaulting Member shall be limited solely to those of an
assignee. 
  

	 	7.10	Withdrawal of the Selling Member 

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

 DISSOLUTION AND WINDING UP OF THE COMPANY 
  

	 	8.01	Events Causing Dissolution of the Company 

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

 36 

	 	8.02	Winding Up of the Company 

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

	 	8.03	No Negative Capital Account Restoration 

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

	 	9.01	Company Books 

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

	 	9.02	Delivery of Records; Inspection 

 The
Operating Member, subject to such reasonable standards as may be established from time to time by the Management Committee, shall deliver to any Member (or, to the extent so directed, to its agent or attorney) a copy of the following information at
any time if requested in writing: 
 (a) Financial Reports. True and full information regarding the status of the
business and financial condition of the Company (including, without limitation, the annual financial reports and all supporting calculations and information for such reports), including (without limitation,) the information required by
Section 9.03(c); 
  

 37 

 (b) Tax Returns. Promptly after becoming available, copies of the Company’s
federal, state and local income or information tax returns for the year; 
 (c) Names and Addresses. A current list of
the name and last known-business, residence or mailing address of each Member and the date on which each became a Member; 
 (d) Formation Documents. A copy of this Agreement, as amended, and any other formation documents for the Company, together with executed copies of any written powers of attorney pursuant to which this Agreement, as amended, and any
other formation documents have been executed; and 
 (e) Contribution Information. True and full information regarding
the amount of cash and a description and statement of the agreed value of any other property or services contributed by each Member and which each Member has agreed to contribute in the future. 
 Any Member (personally or through an authorized representative) may, for any purpose reasonably related to such Member’s Interest, inspect and copy
(at its own cost and expense) the books and records of the Company at all reasonable business hours. 
  

	 	9.03	Reports and Tax Information 

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

  

 38 

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

  

 39 

 
transactions and workpapers, and (iv) preparation of written variance analysis of significant accounts quarterly and year-to-date, as compared to the
prior year period. In addition, the Operating Member shall institute such additional reasonable internal accounting controls as may be requested by the Paladin REIT, including, without limitation, those which are necessitated for compliance
with the Sarbanes-Oxley Act of 2002, as amended. 
  

	 	9.04	Company Tax Elections; Tax Controversies 

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

	 	9.05	Accounting and Fiscal Year 

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

  

	 	9.06	Confidentiality of Information 

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

 40 

 ARTICLE 10 
 MISCELLANEOUS 
  

	 	10.01	Subscription Agreement 

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

	 	10.02	Investment Interest; Nature of Investment 

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

 

	 	10.03	Appointment of Attorney-in-Fact 

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

  

 41 

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

	 	10.04	Waiver of Conflict of Interest 

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

	 	10.05	Amendment 

 The written consent of each
Member shall be required to amend any provision of this Agreement, which consent may be given, withheld or made subject to such conditions as are determined by each such Member in such Member’s sole and absolute discretion. No provision of this
Agreement may be amended except in a writing signed by all Members and expressly stating (i) that it is an amendment of this Agreement and (ii) the provisions of this Agreement being amended and how it is being amended. Notwithstanding the
foregoing provisions of this Section 10.05 to the contrary, this Agreement may be amended by Paladin, by executing an instrument of amendment and giving each Member notice thereof, without the consent of any of the other Members, to
effect or implement actions approved by the Management Committee if the Operating Member fails to take action to effect or implement such actions. 
  

 42 

	 	10.06	No Assignments; Binding Effect 

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

	 	10.07	Further Assurances 

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

	 	10.08	Notices 

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

 43 

			
	To Paladin:	  	c/o Paladin Realty Partners, LLC
		  	10880 Wilshire Boulevard, Suite 1400
		  	Los Angeles, California 90024
		  	Attention: William K. Dunbar
		  	Fax: (310) 996-8708
		  	Telephone: (310) 996-8754
		
		  	King & Spalding LLP
		  	1180 Peachtree Street, N.E.
		  	Atlanta, Georgia 30309
		  	Attention: Scott J. Arnold, Esq.
		  	Fax: (404) 572-5131
		  	Telephone: (404) 572-4600
		
	 To either of the
 Lippert Members:
	  	c/o CRES Management Co.
		  	Two Pershing Square
		  	2300 Main Street, Suite 910
		  	Kansas City, Missouri 64108
		  	Attention: James Lippert
		  	Fax: (816) 756-1881
		  	Telephone: (816) 268-1498
		
	With a copy to:	  	White Goss Bowers March Schulte &
		  	Weisenfels, a Professional Corporation
		  	4510 Belleview, Suite 300
		  	Kansas City, Missouri 64111
		  	Attention: John R. Weisenfels, Esq.
		  	Fax: (816) 753-9200
		  	Telephone: (816) 753-9201

  

	 	10.09	Waivers 

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

	 	10.10	Preservation of Intent 

 If any provision of
this Agreement is determined by an arbitrator or any court having jurisdiction to be illegal or in conflict with any laws of any state or jurisdiction, then the Members agree that such provision shall be modified to the extent legally possible so
that the intent of this Agreement may be legally carried out. If any one (1) or more of the provisions contained herein, or the 

  

 44 

 
application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect or for any reason, then the validity, legality and
enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected, it being intended that all of the Members’ rights and privileges shall be enforceable to the
fullest extent permitted by law. 
  

	 	10.11	Entire Agreement 

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

  

	 	10.12	Certain Rules of Construction 

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

  

	 	10.13	Counterparts 

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

	 	10.14	Governing Law 

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

 45 

	 	10.15	Assurances 

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

 

	 	10.16	Time is of the Essence 

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

	 	10.17	Other Matters 

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

	 	10.18	Ownership of the Lippert Members and Property Manager 

 The Lippert Members represent and warrant that Lippert Holdings is a limited liability company duly organized under the laws of the State of Missouri, that Lippert Management is a corporation duly organized under the
laws of the State of Missouri, and that the Property Manager is a limited liability company duly organized under the laws of the State of Missouri, and that Exhibit D sets forth the following information with respect to the ownership and
structure of the Lippert Members and the Property Manager and each Person that owns any direct or indirect interest therein: 
 (a) The name, type and percentage ownership interest of each such Person; and 
 (b) The name of each officer, if
any, and the title thereof, in any corporate entity, the name of each partner in any partnership entity, and the name of each member and the name of each manager in any limited liability company. 
  

 46 

 The Lippert Members represent that there are no commitments, options, warrants or rights of any kind
which evidence a right to acquire or receive any ownership interest in the Lippert Members or the Property Manager. 
 ARTICLE 11

 DEFINITIONS 
  

	 	11.01	Additional Contribution 

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

	 	11.02	Additional Member 

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

	 	11.03	Adjusted Capital Account 

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

	 	11.04	Affiliate 

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

 47 

	 	11.05	Agreement 

 The term
“Agreement” means this Operating Agreement of KC Pinehurst Associates, LLC, as it may be further amended. 
  

	 	11.06	Annual Business Plan 

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

	 	11.07	Appraised Value 

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

	 	11.08	Business Day 

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

	 	11.09	Buyout Purchase Price 

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

	 	11.10	Buy-Sell Notice 

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

	 	11.11	Capital Account 

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

 48 

	 	11.12	Capital Contribution 

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

	 	11.13	Capital Event 

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

  

	 	11.14	Cash Flow 

 The term “Cash
Flow” means the sum of any and all Ordinary Cash Flow and Extraordinary Cash Flow. 
  

	 	11.15	Cash Flow Bonus Forfeiture Event 

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

	 	11.16	Code 

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

	 	11.17	Company 

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

 49 

	 	11.18	Company Minimum Gain 

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

	 	11.19	Contributing Member 

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

	 	11.20	Contribution Date 

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

	 	11.21	Contribution Notice 

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

	 	11.22	Contribution Percentage 

 The term
“Contribution Percentage” means, with respect to each Member, the percentage set forth opposite such Member’s name on Exhibit A attached hereto under the column labeled “Contribution Percentage.” 
  

	 	11.23	Default Buy-Sell Event 

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

	 	11.24	Default Notice 

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

	 	11.25	Defaulting Member 

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

	 	11.26	Default Purchase Price 

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

	 	11.27	Deferred Management Fees 

 The term
“Deferred Management Fees” is defined in Section 2.12. 
  

 50 

	 	11.28	Deferred Management Fee Account 

 The term
“Deferred Management Fee Account” means, as to the Property Manager and as of any relevant date, the excess, if any, of the aggregate amount of the Deferred Management Fees, over the aggregate amount of payments made to the Property
Manager prior to such relevant date pursuant to Section 5.01(b) and Section 5.02(a). 
  

	 	11.29	Delaware Act 

 The term “Delaware
Act” means the Delaware Limited Liability Company Act (6 Del.C. § 17-101, et seq.), as hereafter amended from time to time. 
  

	 	11.30	Delinquent Contribution 

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

	 	11.31	Dilution Percentage 

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

	 	11.32	Effective Date 

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

	 	11.33	Extraordinary Cash Flow 

 The term
“Extraordinary Cash Flow” means the cash proceeds (including, without limitation, any insurance proceeds, recoveries, damages and awards, but excluding the proceeds of any rent insurance or business interruption insurance) realized
by the Company, directly or indirectly, as a result of the occurrence of a Capital Event, plus cash interest payments received with respect to such proceeds, decreased by the sum of (i) the amount of such proceeds applied by the Company
to pay debts and liabilities of the Company which are then due and payable (inclusive of any guaranteed payment within the meaning of Section 707(c) of the Code paid to any Member); (ii) the amount of such proceeds used, set aside or
committed by the Company or required to be used by any secured lender for the Project for restoration and repair of any property in the event of damage or destruction to the Project; (iii) any incidental or ancillary expenses, costs or
liabilities incurred by the Company in effecting or obtaining any such Capital Event, or the proceeds thereof (including, without limitation, attorneys’ fees, expert witness’ fees, accountants’ fees, court costs, recording fees,
transfer taxes and fees, appraisal costs and the like) all of which expenses, costs and liabilities shall be paid from the gross amount of such cash proceeds to the extent thereof; (iv) the payment of such other Company debts and liabilities as
are determined in the reasonable discretion of the Management Committee; and (v) a reserve, established in the reasonable discretion of the Management Committee, for anticipated cash disbursements that will have to be made before additional
cash receipts from third parties will provide funds therefore. 
  

 51 

	 	11.34	Fiscal Year 

 The term “Fiscal
Year” means, except as otherwise provided in this definition, the twelve (12) month period commencing on January 1 of each calendar year and ending on December 31 of each calendar year, with the first Fiscal Year commencing
on the date hereof and ending on December 31, 2007 and the last Fiscal Year being the period beginning on January 1 of the year in which the final liquidation and termination of the Company is completed and ending on the date such final
liquidation and termination is completed. To the extent any computation or other provision hereof provides for an action to be taken on the basis of a Fiscal Year, an appropriate proration or other adjustment shall be made in respect of the initial
and final Fiscal Years to reflect that such periods are less than 12 month periods. 
  

	 	11.35	Gross Asset Value 

 The term “Gross
Asset Value” shall mean, except as set forth below, such asset’s adjusted basis for federal income tax purposes: 
 (i) The initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset, as determined by the contributing Member and the Company. 
 (ii) The Gross Asset Value of all Company assets shall be adjusted to equal their respective gross fair market values, as determined by
the Members as of the following times: (A) the acquisition of an additional interest in the Company by any new or existing Members in exchange for more than a de minimis Capital Contribution if the Members reasonably determine that
such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; (B) the distribution by the Company to a Member of more than a de minimis amount of Company property as
consideration for an interest in the Company if the Members reasonably determine that such adjustment is necessary or appropriate to reflect the relative economic interests of the Members in the Company; and (C) the liquidation of the Company
within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g). 
 (iii) The Gross Asset Value of any Company
asset distributed to any Member shall be the gross fair market value of such asset on the date of distribution; and 
 (iv)
The Gross Asset Values of Company assets shall be increased or decreased to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments
are taken into account in determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Treasury Regulations; provided, however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph (iv) to the
extent 

  

 52 

 
the Members determine that an adjustment pursuant to subparagraph (ii) hereof is necessary or appropriate in connection with a transaction that would
otherwise result in an adjustment pursuant to this subparagraph (iv). 
 If the Gross Asset Value of an asset has been determined or
adjusted pursuant to subparagraphs (i), (ii) or (iv) of this provision, such Gross Asset Value shall thereafter be computed in accordance with Section 1.704-1(b)(2)(iv)(g) of the Treasury Regulations. 
  

	 	11.36	Immediate Family 

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

	 	11.37	Indemnified Party 

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

	 	11.38	Interest 

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

	 	11.39	IRR 

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

	 	11.40	Lippert Holdings 

 The term “Lippert
Holdings” means JLT Holdings, LLC, a Missouri limited liability company. 
  

 53 

	 	11.41	Lippert Management 

 The term
“Lippert Management” means JLT Management, Inc., a Missouri corporation. 
  

	 	11.42	Lippert Member(s) 

 The term “Lippert
Members” means Lippert Management and Lippert Holdings, collectively; the term “Lippert Member” means any one of the Lippert Members. 
  

	 	11.43	Liquidation 

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

	 	11.44	Majority of Representatives 

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

	 	11.45	Management Committee 

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

	 	11.46	Material Breach 

 The term “Material
Breach” means any material breach or default by a Member of any material covenant, duty or obligation under this Agreement or any Exhibits hereto (including, without limitation, the failure of any Member to contribute any Additional
Contribution to the extent required to be made pursuant to Section 3.02 and Section 3.03), provided that in any such instance: (i) such Member shall have received written notice from the other Member of such
breach or default, and (ii) if curable, such Member shall have failed to cure or remedy such breach or default within ten (10) days following the Effective Date of such notice (except that no such notice shall be required in the case of
the failure of any Member to contribute any Additional Contribution 

  

 54 

 
pursuant to Section 3.02 and Section 3.03) or, if such breach or default is not curable within such 10-day period, such Member shall
have failed to diligently and continuously pursue such a cure or remedy and in any event fully cure or remedy such breach or default within thirty (30) days of the Effective Date of such notice. 
  

	 	11.47	Member Loan 

 The term “Member
Loan” is defined in Section. 3.03(b). 
  

	 	11.48	Member Minimum Gain 

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

	 	11.49	Member Nonrecourse Debt 

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

	 	11.50	Member Nonrecourse Deductions 

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

	 	11.51	Member(s) 

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

	 	11.52	Net Profits and Net Losses 

 The term
“Net Profits” or “Net Losses” shall mean, for each Fiscal Year or other period, an amount equal to the Company’s taxable income or loss for such year or period, determined in accordance with Code
Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments: 
 (i) Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Net Profits and Net
Losses pursuant to this subparagraph (i) shall be added to such taxable income or loss; 
  

 55 

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

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

	 	11.53	Non-Contributing Member 

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

	 	11.54	Nonrecourse Deductions 

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

	 	11.55	Operating Account 

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

 56 

	 	11.56	Operating Budget 

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

	 	11.57	Operating Member 

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

	 	11.58	Option Notice 

 The term “Option
Notice” is defined in Section 6.05(a). 
  

	 	11.59	Option Price 

 The term “Option
Price” is defined in Section 6.05(a). 
  

	 	11.60	Ordinary Cash Flow 

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

	 	11.61	Paladin 

 The term “Paladin”
means PRIP 500, LCC, a Delaware limited liability company. 
  

	 	11.62	Paladin REIT 

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

 57 

	 	11.63	Partially Adjusted Capital Account 

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

	 	11.64	Percentage Interest 

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

								
	Paladin:	  	97.5	%	 		  	
	Lippert Holdings:	  	1.5	%	 		  	
	Lippert Management:	  	1.0	%	 		  	

  

	 	11.65	Permitted Transferees 

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

	 	11.66	Person 

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

	 	11.67	Price Determination Notice 

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

	 	11.68	Preferred Return 

 The term
“Preferred Return” means, with respect to each Member, an amount calculated like interest and accrued on the balance standing from time to time in such Member’s Unrecovered Contribution Account at a simple interest rate equal
to nine 

  

 58 

 
percent (9%) per annum, non-compounded, and determined on a cumulative basis. For financial and income tax reporting purposes, neither accrual nor
payment of the Preferred Return shall be an expense of the Company nor be treated as a guaranteed payment under Section 707(c) of the Code. 
  

	 	11.69	Project 

 The term “Project”
is defined in Section 1.03. 
  

	 	11.70	Project Shortfall 

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

	 	11.71	Property Management Agreement 

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

	 	11.72	Property Manager 

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

	 	11.73	Purchase Option 

 The term “Purchase
Option” is defined in Section 6.05(a). 
  

	 	11.74	Purchasing Member 

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

	 	11.75	Qualified Appraiser 

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

 59 

	 	11.76	REIT 

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

	 	11.77	Removal Event 

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

	 	11.78	Removal Notice 

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

	 	11.79	Securities Act 

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

	 	11.80	Seller Loan 

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

	 	11.81	Selling Member 

 The term “Selling
Member” is defined in Section 7.05 
  

	 	11.82	Target Capital Account 

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

	 	11.83	Tax Matters Partner 

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

	 	11.84	Threshold Return 

 The term
“Threshold Return” means, with respect to each Member, aggregate cash distributions pursuant to Sections 5.01 and 5.02 which would produce a 12% IRR to such Member on all Capital Contributions made by such Member. 

 

 60 

	 	11.85	Third-Party Purchase Price 

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

	 	11.86	Transfer 

 The term
“Transfer” is defined in Section 6.01. 
  

	 	11.87	Treasury Regulation 

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

	 	11.88	Unanimous Written Consent 

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

	 	11.89	Unpaid Preferred Return 

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

	 	11.90	Unrecovered Contribution Account 

 The term
“Unrecovered Contribution Account” means, (i) with respect to Paladin, the amount of money or the agreed upon fair market value of any property contributed (or deemed contributed) by Paladin to the capital of the Company
pursuant to Section 3.01, Section 3.02 and Section 3.03, as the case may be (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to pursuant to
Section 752 of the Code), and decreased by the amount of money and the agreed upon fair market value of any property (net of liabilities secured by such distributed property that Paladin is considered to assume or take subject to under
Section 752 of the Code) distributed by the Company to Paladin pursuant to Section 5.02(c) and (ii) with respect to each Lippert Member, the amount of money or the agreed upon fair market value of any property contributed (or
deemed contributed) by such Lippert Member to the capital of the Company pursuant to Section 3.01, Section 3.02 and Section 3.03, 

  

 61 

 
as the case may be (net of liabilities secured by such contributed property that the Company is considered to assume or take subject to pursuant to
Section 752 of the Code), and decreased by the amount of money and the agreed upon fair market value of any property (net of liabilities secured by such distributed property that such Lippert Member is considered to assume or take
subject to under Section 752 of the Code) distributed (or deemed distributed) by the Company to such Lippert Member pursuant to Section 5.02(f). 
 [Signatures Commence on Next Page] 
  

 62 

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

							
	“Paladin”
	
	 PRIP 500, LLC, a Delaware limited liability
 company

		
	By:	 	 Paladin Realty Income Properties, L.P., a
 Delaware limited partnership

			
		 	By:	 	 Paladin Realty Income Properties,
 Inc., a
Maryland corporation, its
 general partner

				
		 		 	By:	 	 /s/ William K. Dunbar

		 		 	Name:	 	William K. Dunbar
		 		 	Title:	 	Chief Investment Officer

 [Signatures Continue on Next Page] 
  

 63 

 [Signatures Continued From Previous Page] 
  

			
	“Lippert Holdings”
	
	 JLT HOLDINGS, LLC,
 a Missouri limited
liability company

		
	By:	 	 /s/ James E. Lippert

	Name:	 	James E. Lippert
	Title:	 	Managing Member
	
	“Lippert Management”
	
	 JLT MANAGEMENT, INC.,
 a Missouri
corporation

		
	By:	 	 /s/ James E. Lippert

	Name:	 	James E. Lippert
	Title:	 	President

  

 64Assumption Agreement

 EXHIBIT 10.19 
 ASSUMPTION AGREEMENT 
 THIS ASSUMPTION AGREEMENT is made effective as of the 13th day of
September, 2007, by and among Pinehurst Associates, LLC, a Florida limited liability company (“Original Borrower”); KC Pinehurst Associates, LLC, a Delaware limited liability company (“New Borrower”); and the FEDERAL HOME
LOAN MORTGAGE CORPORATION (“Noteholder”), and is acknowledged and consented to by Robert E. Spielman (“Original Guarantor”). 
 RECITALS 
  

	A.	Original Borrower obtained a mortgage loan (the “Loan”) from NorthMarq Capital, Inc., a corporation organized and existing under the laws of Minnesota
(“Original Lender”), which loan is secured by certain Land and Improvements (the “Property”), located in Kansas City, Clay County, Missouri. The Land is more particularly described in Exhibit A, attached
to this Agreement. 

  

	B.	Original Borrower executed a promissory note evidencing the Loan, dated December 6, 2005, in the original principal amount of $4,900,000.00, payable to Original Lender (the
“Note”). The Original Guarantor guaranteed payment of certain amounts due under the Note by executing Guaranty dated December 6, 2005 (the “Original Guaranty”). 

  

	C.	To secure repayment of the Loan, Original Borrower executed and delivered to Original Lender a Multifamily Deed of Trust, Assignment of Rents and Security Agreement (the
“Security Instrument”) of even date with the Note, which is recorded in the Official Records in the County of Clay, State of Missouri (the “Land Records”) on December 7, 2005 as Instrument No. 2005059479
at Book 5229, Page 160. Any capitalized terms used in this Agreement and not defined shall have the meaning ascribed to them in the Security Instrument. 

  

	D.	The Note, Security Instrument and any other document executed by Original Borrower in connection with the Loan that will be assumed by New Borrower, all as listed on Exhibit
B to this Agreement, are referred to collectively in this Agreement as the “Loan Documents”. 

  

	E.	Original Lender endorsed the Note to the order of the Noteholder and by instrument dated December 6, 2005 filed for record on December 7, 2005 in the Land Records as
Instrument No. 2005059480 at Book 5229, Page 161 sold, assigned and transferred all right, title and interest of the Original Lender in and to the Security Instrument and the Loan Documents to the Noteholder. The Noteholder is now the owner and
holder of the Note and the Loan is serviced by NorthMarq Capital, Inc. (the “Servicer”). 

  

			
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	F.	Original Borrower has transferred or has agreed to transfer all of its right, title, and interest in and to the Property to New Borrower (the “Transfer”).

  

	G.	New Borrower has agreed to assume all of Original Borrower’s rights, obligations, and liabilities created or arising under the Loan Documents, with certain modifications, if
any, as set forth in Exhibit C to this Agreement (the “Assumption”). 

  

	H.	Subject to the full satisfaction of all conditions set forth below, the Noteholder has agreed to consent to New Borrower’s Assumption . 

  

	I.	Original Borrower desires to be released by the Noteholder from any and all obligations and liabilities under the terms and provisions of the Loan Documents, and Noteholder has
agreed to release Original Borrower from further liability (except as provided in Section 14 of this Agreement). 

 NOW,
THEREFORE, in consideration of these premises, the mutual covenants contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 
  

	1.	Assumption of Obligations. New Borrower covenants, promises and agrees that New Borrower, jointly and severally if more than one, will unconditionally assume and be bound by
all terms, provisions, and covenants of the Loan Documents set forth in Exhibit B to this Agreement, as if New Borrower had been the original maker of the Loan Documents. New Borrower will pay all sums to be paid and perform each and every
obligation to be performed by Original Borrower under and in accordance with the terms and conditions of the Loan Documents. 

  

	2.	Affirmation by New Borrower. New Borrower agrees that the Loan Documents set forth in Exhibit B to this Agreement are and will be and remain in full force and effect,
enforceable against New Borrower in accordance with their terms, except as modified by Exhibit C to this Agreement. The Property will remain subject to the lien, charge and encumbrance of the Security Instrument. Nothing contained in this
Agreement or done pursuant to this Agreement will affect or be construed to affect the lien, charge, and encumbrance of the Security Instrument or the priority of the Security Instrument over other liens, charges and encumbrances. Nothing contained
in this Agreement or done pursuant to this Agreement will release or be construed to release or affect the liability of any party or parties who may now or after the date of this Agreement be liable under or on account of the Note and the Security
Instrument, except as expressly provided in this Agreement. New Borrower will be liable for the payment of all sums and the performance of every obligation required under the Loan Documents to the extent set forth in the Loan Documents as modified
by this Agreement. 

  

			
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	3.	Subordination of Rights of Original Borrower and New Borrower. Any indebtedness of Original Borrower to New Borrower, or of New Borrower to Original Borrower, now or existing
after the date of this Agreement, together with any interest on such debt, is hereby subordinated to any indebtedness of Original Borrower or New Borrower to the Noteholder under the Loan Documents. Any collection or receipts with respect to any
such indebtedness of Original Borrower to New Borrower, or of New Borrower to Original Borrower, will be collected, enforced and received by New Borrower or Original Borrower (as applicable) in trust for the benefit of the Noteholder, and will be
paid over to the Noteholder on account of the indebtedness of Original Borrower and New Borrower to the Noteholder, but without impairing or affecting in any manner the liability of Original Borrower or New Borrower under the other provisions of the
Loan Documents and this Agreement. However, until the occurrence of an Event of Default under the Security Instrument, Original Borrower or New Borrower (as applicable) will be entitled to retain for its own account all payments made on account of
the principal of and interest on any such indebtedness; provided no such payment is made more than ten (10) days in advance of the due date. 

  

	4.	Modification of Note and Security Instrument. New Borrower and Noteholder agree that the provisions of the Loan Documents are modified as set forth on Exhibit C to
this Agreement. 

  

	5.	Replacement Reserve. New Borrower and Noteholder agree that a Replacement Reserve Account will be established with Servicer with payments to be made by New Borrower to such
account in the initial amount of Two Thousand One Hundred Thirty and 00/100 Dollars ($2,130.00) per month, in accordance with the terms and provisions of the Replacement Reserve Agreement to be executed by New Borrower and Noteholder on the same
date as this Agreement. The failure of New Borrower to comply with the additional obligations contained in this Section will constitute an Event of Default under the Security Instrument, and the Noteholder will be entitled to exercise all
remedies available to it under the terms of the Loan Documents. Original Borrower acknowledges and agrees that by executing this Agreement it relinquishes all right, title and interest it has or may have in the Replacement Reserve Account.

  

	6.	Repairs. No Repair Escrow is required. Original Borrower acknowledges and agrees that Noteholder is not holding any funds pursuant to the Repair Escrow, if any, executed by
Original Borrower. 

  

	7.	Tax and Insurance Escrow. On or prior to the execution of this Agreement, to ensure that sufficient funds are available for the payment of real estate taxes and hazard and
other insurance premiums, an escrow account will be established with Servicer, with payments to be made by New Borrower to such account in the amount required by Noteholder and/or Servicer. By execution of this Agreement, Original Borrower
acknowledges and agrees that it relinquishes any right, title or interest it has or may have in any escrow account held by Servicer in connection with the Property. 

  

			
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	8.	Guaranty Requirements. On the date of execution of this Agreement, James E. Lippert (jointly and severally if more than one, “New Guarantor”) will execute and
deliver to Noteholder the appropriate version of the Guaranty (the “Guaranty”) under which the New Guarantor guarantees the full and punctual payment when due of the “Guaranteed Obligations” (as such term is defined in the
Guaranty). The Guaranty will provide that New Guarantor is personally liable for zero percent (0%) of the outstanding principal balance of the Loan. New Guarantor automatically will become liable for one hundred percent (100%) of all amounts
payable under the Loan Documents upon the occurrence of certain events more specifically set forth in the Guaranty. 

  

	9.	Ratification of Original Guaranty. By signing the Acknowledgment and Consent to this Agreement where indicated below, the Original Guarantor: 

  

	 	a)	ratifies the guaranty under which it guaranteed payments of certain amounts under the Loan Documents (the “Original Guaranty”) only to the extent that it guaranties
payments of the Borrower’s liability under Section 18 (ENVIRONMENTAL HAZARDS) of the Security Instrument arising out of conditions existing on or before the date of this Agreement (“Preexisting Conditions”); and

  

	 	b)	agrees that Section 18 (ENVIRONMENTAL HAZARDS) of the Security Instrument as assumed by New Borrower and modified by this Agreement will continue to be guaranteed by the
Original Guarantor as and to the full extent provided in the Original Guaranty for such Preexisting Conditions. 

  

	 	c)	Noteholder hereby releases Original Guarantor from any and all liability under the Original Guaranty except to the extent that the Original Guaranty guarantees payment of the
Original Borrower’s liability under Section 18 of the Security Instrument arising out of Preexisting Conditions. 

  

	10.	Representations. Original Borrower represents and warrants to Noteholder: 

  

	 	a)	As of the date of this Agreement, the amount of the unpaid indebtedness under the Note is Four Million Seven Hundred Ninety-five Thousand Seven Hundred Sixty-two and 90/100 Dollars
($4,795,762.90). 

  

	 	b)	Interest at the rate set forth in the Note has been paid to Noteholder in full through and including August 31, 2007. 

  

			
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	 	c)	All of the representations and warranties in the Loan Documents are true as of the date on which Original Borrower executes this Agreement. 

  

	 	d)	No Event of Default (or event which, with the giving of notice or the passage of time or both, would be an Event of Default) has occurred or is continuing under the Security
Instrument. 

  

	 	e)	Original Borrower has no claims, offsets, defenses, or counterclaims of any kind to its performance under, or Noteholder’s enforcement of, the Note and the other Loan
Documents; and to the extent any such counterclaims, setoffs, defenses or other causes of action may exist, whether known or unknown, Original Borrower waives all such items. Original Borrower acknowledges that all of Noteholder’s actions in
connection with the Loan have been in compliance with the terms of the applicable Loan Documents, and Original Borrower acknowledges and agrees that Noteholder has not breached or failed to perform any duty or obligation that Noteholder may owe
Original Borrower. 

  

	 	f)	There are no suits or actions threatened or pending against Original Borrower which affect the enforcement or validity of the Note, the Security Instrument and/or the Loan
Documents. 

  

	11.	Additional Transfers. Notwithstanding the Noteholder’s consent to the Transfer of the Property to New Borrower, New Borrower understands and agrees that such consent
will in no way limit or operate as a waiver of the Noteholder’s continuing rights under Section 21 of the Security Instrument. 

  

	12.	Continuing Obligations. New Borrower will execute, acknowledge and deliver a Moisture Management Plan, a Moisture Management Plan Compliance Certificate and such other
documents as Noteholder, or Servicer may require to document the Assumption described in this Agreement and to more fully effectuate the provisions of this Agreement. The failure of New Borrower to comply with the additional obligations contained in
this Section will constitute an Event of Default under the Security Instrument, and the Noteholder will be entitled to exercise all remedies available to it under the terms of the Loan Documents. 

  

	13.	Additional Obligations. 

  

	 	a)	To induce the Noteholder to consent to New Borrower’s Assumption, in addition to the covenants and agreements set forth in the Loan Documents, New Borrower agrees that it will
comply with the Additional Obligations set forth on Exhibit D to this Agreement, if applicable. 

  

	 	b)	The failure of New Borrower to comply with the Additional Obligations, if applicable, will constitute an Event of Default under the Security Instrument, and the Noteholder will be
entitled to exercise all remedies available to it under the terms of the Loan Documents. 

  

			
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	14.	Release of Original Borrower; Rights of Noteholder. 

  

	 	a)	In reliance upon Original Borrower’s representations and warranties, the Noteholder releases Original Borrower from any and all obligations under the terms and provisions of
the Loan Documents; provided, however, that Original Borrower is not released from any liability pursuant to Section 18 (ENVIRONMENTAL HAZARDS) of the Security Instrument arising out of conditions existing on or before the date of this
Agreement (“Preexisting Conditions”). 

  

	 	b)	If any material element of Original Borrower’s representations and warranties are materially false or misleading, this release will be canceled and Original Borrower will
remain obligated under the Loan Documents as though there had been no release. 

  

	 	c)	If at any time all or any part of any payment by Original Borrower which has been applied by the Noteholder to payment of the Loan on or prior to the date of this Agreement is or
must be rescinded, repaid or returned by the Noteholder for any reason whatsoever (including, without limitation, the application of any bankruptcy, insolvency or other law), for purposes of this Agreement, to the extent that such payment is or must
be rescinded, repaid or returned, such payment will be deemed to have continued to be due and payable, notwithstanding such application by the Noteholder and this Agreement will continue to be effective as to such payment as though such application
by the Noteholder had not been made. Original Borrower and New Borrower will each remain liable to the Noteholder for the amount so rescinded, repaid, or returned to the same extent as if such amount had never originally been received by the
Noteholder, notwithstanding any cancellation of the Note, release or satisfaction of the Security Instrument, or the cancellation of any other Loan Document. 

  

	15.	Expenses. New Borrower’s execution of this Agreement will constitute New Borrower’s agreement to pay all expenses incurred by the Noteholder in connection with this
Assumption, including without limitation the payment of any title endorsement costs, legal costs (including in-house legal costs) attorney’s fees, and assumption fees required by the Noteholder. 

  

			
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	16.	Miscellaneous. 

  

	 	a)	This Agreement will be binding upon and will inure to the benefit of the parties to the Agreement and their respective heirs, successors and permitted assigns.

  

	 	b)	Except as expressly modified by this Agreement, the Note, the Security Instrument and all other Loan Documents will be unchanged and remain in full force and effect, and are hereby
expressly approved, ratified and confirmed. No provision of this Agreement that is held to be inoperative, unenforceable or invalid will affect the remaining provisions, and to this end all provisions of this Agreement are declared to be severable.

  

	 	c)	Time is of the essence of this Agreement. 

  

	 	d)	This Agreement may not be changed orally, but only by an agreement in writing, signed by the party against whom enforcement of any waiver, change, modification or discharge is
sought. 

  

	 	e)	This Agreement will be construed in accordance with the laws of the jurisdiction in which the Property is located. 

  

	 	f)	This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same document.

  

	 	g)	All notices given pursuant to the Agreement must be in writing and will be effectively given if personally delivered or, if mailed, postage prepaid, certified or registered mail,
return receipt requested, to the addresses of the parties set forth below or to such other address as any party subsequently may designate in writing. 

  

	17.	Executed Originals. An executed original of this Agreement will be (i) attached permanently to the Note as an amendment to the Note, and (ii) recorded in the Land
Records as a modification to the Security Instrument. 

  

	18.	State Specific Requirements. N/A. 

 ATTACHED
EXHIBITS. The following Exhibits are attached to this Instrument: 
  

			
	[X] Exhibit A	  	Legal Description of the Land (required).
		
	[X] Exhibit B	  	List of Loan Documents (required).
		
	[X] Exhibit C	  	Modifications to Note and Security Instrument, (required).
		
	[X] Exhibit D	  	Additional Obligations of New Borrower, check if applicable.

  

			
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	[X] Exhibit E	  	Modification to Assumption Agreement, check if applicable.

 [The remainder of this page is intentionally left blank. Signature pages follow.] 
  

			
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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written above. 
  

			
	ORIGINAL BORROWER:
	
	Pinehurst Associates, LLC,
	a Florida limited liability company
		
	By:	 	 /s/ Robert E. Spielman

		 	Robert E. Spielman, Manager
		
	Date:	 	September 10, 2007
	
	Address for Notice to Original Borrower:
	c/o Robert E. Spielman
	9000 SW 65 Ct
	Miami, Florida 33165

  

			
	 /s/ Edgar Lewis

	Witness	 	
	
	 /s/ Ann Abascal

	Witness	 	
		
	STATE OF FLORIDA	 	)
		 	) ss.
	COUNTY OF MIAMI-DADE	 	)

 The foregoing instrument was acknowledged before me this 10th day of September, 2007, by
Robert E. Spielman, as Manager for Pinehurst Associates, LLC, a Florida limited liability company. 
  

	
	 /s/ Encarnacion Abascal (SEAL)

	Signature of Notary Public – State of Florida

  

			
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	NEW BORROWER:
	
	KC Pinehurst Associates, LLC,
	a Delaware limited liability company
		
	By:	 	JTL Asset Management, Inc., a Missouri corporation
	Its:	 	Operating Member
		
	By:	 	 /s/ James E. Lippert

	Name:	 	James E. Lippert
	Its:	 	President
	
	Tax identification number for New Borrower:
	35-2305010
	
	Address for Notice to New Borrower:
	2300 Main, Suite 910
	Kansas City, Missouri 64108

  

			
	STATE OF MISSOURI	 	)
		 	) ss.
	COUNTY OF Jackson	 	)

 On this 12 day of September in the year 2007, before me, a Notary Public in and for said
state, personally appeared James E. Lippert, the President of JTL Asset Management, Inc., a Missouri corporation, as Operating Member of KC Pinehurst Associates, LLC, a Delaware limited liability company, known to me to be the person who executed
the within instrument in behalf of said limited liability company and acknowledged to me that he executed the same for the purposes therein stated. 
  

	
	 /s/ Amanda McCurley

	Official Signature
	
	 (SEAL)

	Official Seal

  

			
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	CONSENTED TO BY NOTEHOLDER:
	
	FEDERAL HOME LOAN MORTGAGE
	CORPORATION
		
	By:	 	 /s/ Ed Gagermeier

	Name:	 	Ed Gagermeier
	Title:	 	Manager – Multifamily Portfolio Services

  

					
	Address for Notice to Noteholder:
	Federal Home Loan Mortgage Corporation
	8100 Jones Branch Drive, MS B-4F
	McLean, VA 22102
	Attn: Director of Multifamily Portfolio Services
		
	COMMONWEALTH OF VIRGINIA	 	)
		 		 	) ss.
	COUNTY OF	 	 Fairfax
	 	)

 The foregoing instrument was acknowledged
before me this September 11th , 2007, by Ed Gagermeier, the Manager of P3 of Federal Home
Loan Mortgage Corporation, on behalf of the corporation. 
  

	
	 /s/ Arlene Lora (SEAL)

	Signature of Person Taking Acknowledgment
	
	 Notary Public

	Title or Rank
	
	 368315

	Serial Number, if any

  

			
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	ACKNOWLEDGED AND CONSENTED TO:
	
	ORIGINAL GUARANTOR:
	
	 /s/ Robert E. Spielman

	Robert E. Spielman
	
	Address for Notice to Original Guarantor:
	9000 SW 65 Ct
	Miami, Florida 33165

  

			
	 /s/ Edgar Lewis

	Witness
	
	 /s/ Ann Abascal

	Witness
		
	STATE OF FLORIDA	 	)
		 	) ss.
	COUNTY OF MIAMI-DADE	 	)

 The foregoing instrument was acknowledged
before me this 10th day of September, 2007 by Robert E. Spielman. 
  

	
	 /s/ Encarnacion Abascal (SEAL)

	Signature of Notary Public – State of Florida

  

			
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	NEW GUARANTOR:
	
	 /s/ James E. Lippert

	James E. Lippert
	
	Address for Notice to New Guarantor:
	2300 Main, Suite 910
	Kansas City, MO 64108

  

			
	STATE OF MISSOURI	 	)
		 	)ss.
	COUNTY OF Jackson	 	)

 On this 12 day of September, 2007, before me, personally appeared James E. Lippert, to me
personally known, who, being by me duly sworn (or affirmed), acknowledged to me that he signed the foregoing instrument as the free and voluntary act and deed, for the uses and purposes therein mentioned. 
  

	
	 /s/ Amanda McCurley (SEAL)

	Signature
	
	 Notary

	Title

  

			
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 EXHIBIT A 
 REQUIRED 
 (Legal Description of Land) 
 Lots 1 and 2, PINEHURST, a subdivision in Kansas City, Clay County, Missouri, according to the recorded plat thereof. 
  

			
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 EXHIBIT B 
 REQUIRED 
 (List of Loan Documents that will be Assumed) 
  

	1.	Multifamily Note dated as of December 6, 2005, in the original principal amount of $4,900,000.00, executed by Original Borrower and payable to the Original Lender.

  

	2.	Multifamily Deed of Trust, Assignment of Rents and Security Agreement dated as of December 6, 2005, executed by Original Borrower in favor of Original Lender.

  

			
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 EXHIBIT C 
 REQUIRED 
 (Changes to Loan Documents) 
 I. Modifications to all Loan Documents: 
  

	1.	As used in the Loan Documents, all reference to Borrower will be deemed to refer to New Borrower. 

 II. Modifications to Security Instrument: 
  

	1.	In order to correct a scrivener’s error, the reference to “Jackson County” is hereby deleted and replaced with “Clay County” in the second paragraph on Page
1 of the Security Instrument. 

  

	2.	Subsection 7(a) of the Security Instrument is deleted and replaced in its entirety with the following: 

 “(a) Unless this requirement is waived in writing by Lender, which waiver may be contained in this Section 7(a), Borrower shall
deposit with Lender on the day monthly installments of principal or interest, or both, are due under the Note (or on another day designated in writing by Lender), until the Indebtedness is paid in full, an additional amount sufficient to accumulate
with Lender the entire sum required to pay, when due, the items marked “Collect” below. Lender will not require the Borrower to make Imposition Deposits with respect to the items marked “Deferred” below. 
  

			
	[Collect]	  	Hazard Insurance premiums or other insurance premiums required by Lender under Section 19,
	[Collect]	  	Taxes,
	[Deferred]	  	water and sewer charges (that could become a lien on the Mortgaged Property),
	[N/A]	  	ground rents,
	[Deferred]	  	assessments or other charges (that could become a lien on the Mortgaged Property)

 The amounts deposited under the preceding sentence are collectively referred to in this Instrument
as the “Imposition Deposits.” The obligations of Borrower for which the Imposition Deposits are required are collectively referred to in this Instrument as “Impositions.” The amount of the Imposition Deposits shall be sufficient
to enable Lender to pay each Imposition before the last date upon which such payment may be made without any penalty or interest charge being added. Lender shall maintain records 

  

			
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indicating how much of the monthly Imposition Deposits and how much of the aggregate Imposition Deposits held by Lender are held for the purpose of paying
Taxes, insurance premiums and each other Imposition.” 
  

	3.	Section 21(c)(vii)(F)(3) shall be deleted in its entirety and replaced with the following: 

  

	 	“(3)	either directly or indirectly, James E. Lippert shall at all times retain a managing interest in the Borrower unless and until such time as the managing member entity of the
Borrower (i.e., JTL Asset Management, Inc., which is wholly owned and controlled by James E. Lippert and Teresa Lippert) is removed as operating member and replaced by PRIP 500, LLC, a Delaware limited liability company (“PRIP”) (a current
non-managing member of Borrower), in strict accordance with PRIP’s rights under the limited liability company agreement of Borrower in effect as of September 13, 2007, provided the following conditions are satisfied:

  

	 	(A)	Such replacement managing member must be acceptable to Lender in its reasonable discretion; 

  

	 	(B)	Such replacement managing member must execute and deliver a replacement Guaranty on Lender’s standard form and which is otherwise acceptable to Lender in its reasonable
discretion; 

  

	 	(C)	Borrower shall provide Lender with prior written Notice of the proposed Transfer, which Notice must be accompanied by a non-refundable review fee in the amount of $3,000;

  

	 	(D)	Lender shall not be entitled to collect a transfer fee as a result of such Transfer; and 

  

	 	(E)	Lender shall be entitled to collect all costs, including the cost of all title searches, title insurance and recording costs, and all Attorneys’ Fees and Costs.

  

	4.	Section 21(c) of the Security Instrument will be amended by adding the following: 

  

			
	“(viii)	 	A Transfer of shares in that certain real estate investment trust that has a Controlling Interest in PRIP or the Transfer of limited partnership interests in the operating partnership controlled
by such real estate investment trust, which operating partnership is the sole member of PRIP.

  

			
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 III. Modifications to Note: 
  

	1.	Subsection 9(c)(iv) of the Note is deleted and replaced in its entirety with the following: 

  

	 	“(iv)	Borrower fails to pay when due in accordance with the terms of the Security Instrument the amount of any item below marked “Deferred”; provided however, that if no item is
marked “Deferred”, this Section 9(c)(iv) shall be of no force or effect. 

  

			
	[Collect]	  	Hazard Insurance premiums or other insurance premiums,
	[Collect]	  	Taxes,
	[Deferred]	  	water and sewer charges (that could become a lien on the Mortgaged Property),
	[N/A]	  	ground rents,
	[Deferred]	  	assessments or other charges (that could become a lien on the Mortgaged Property)”

  

			
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 EXHIBIT D 
 APPLICABLE          
 NOT APPLICABLE
    X     
 (Additional Obligations of New Borrower) 
  

			
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 EXHIBIT E 
 APPLICABLE          
 NOT APPLICABLE
    X     
 (Modification to Assumption Agreement) 
  

			
	ASSUMPTION AGREEMENT	  	Page E-1

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