Document:

Limited Liability Company Agreement

Table of Contents

 Exhibit 10.3 

LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 GGT SPRING TOWN TX,
LLC 

Table of Contents

 LIMITED LIABILITY 

COMPANY AGREEMENT OF 
 GGT
SPRING TOWN TX, LLC, 
 A DELAWARE LIMITED LIABILITY COMPANY 

TABLE OF CONTENTS 
  

					
	 	  	Page	 
	 ARTICLE 1. DEFINITIONS
	  	 	1	  
	 1.1 Definitions
	  	 	1	  
	 1.2 Other Defined Terms
	  	 	9	  
	 1.3 Exhibits
	  	 	9	  
		
	 ARTICLE 2. THE COMPANY
	  	 	9	  
	 2.1 Organization
	  	 	9	  
	 2.2 Name of Company
	  	 	9	  
	 2.3 Purpose of Company
	  	 	9	  
	 2.4 Places of Business; Registered Office
	  	 	9	  
	 2.5 Further Assurances
	  	 	10	  
	 2.6 Expenses of Formation
	  	 	10	  
	 2.7 No Individual Authority
	  	 	10	  
	 2.8 Business Opportunities
	  	 	10	  
	 2.9 Neither Responsible for Other’s Commitments
	  	 	11	  
	 2.10 Affiliates
	  	 	11	  
	 2.11 Operations in Accordance With the Act; Ownership
	  	 	11	  
		
	 ARTICLE 3. TERM
	  	 	11	  
	 3.1 Term
	  	 	11	  
		
	 ARTICLE 4. CAPITAL CONTRIBUTIONS OF THE MEMBERS
	  	 	12	  
	 4.1 Capital Contributions of the Members
	  	 	12	  
	 4.2 No Other Contributions or Advances
	  	 	12	  
	 4.3 No Interest Payable
	  	 	12	  
	 4.4 No Withdrawals
	  	 	12	  
	 4.5 Additional Capital Contributions
	  	 	13	  
		
	 ARTICLE 5. MEMBER LOANS
	  	 	15	  
	 5.1 Member Loans
	  	 	15	  
	 5.2 Payment of Member Loans
	  	 	16	  
		
	 ARTICLE 6. MANAGEMENT OF THE COMPANY
	  	 	16	  
	 6.1 Management
	  	 	16	  
	 6.2 Major Decisions
	  	 	19	  
	 6.3 Bank Accounts
	  	 	23	  
	 6.4 Annual Budgets
	  	 	23	  
	 6.5 Insurance
	  	 	23	  
	 6.6 Consultation Regarding the Project
	  	 	24	  

  
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	 6.7 Termination of Delegation of Authority to MCR as Operating Member
	  	 	24	  
	 6.8 Development
	  	 	25	  
	 6.9 Management Agreement
	  	 	26	  
	 6.10 Contracts with Affiliates
	  	 	26	  
	 6.11 Indemnification of Members; Exculpation
	  	 	26	  
	 6.12 Leasing Guidelines
	  	 	27	  
		
	 ARTICLE 7. BOOKS AND RECORDS, AUDITS, TAXES, ETC.
	  	 	27	  
	 7.1 Books; Statements
	  	 	27	  
	 7.2 Where Maintained
	  	 	28	  
	 7.3 Audits
	  	 	28	  
	 7.4 Objections to Statements
	  	 	28	  
	 7.5 Tax Returns
	  	 	28	  
	 7.6 Tax Matters Partner
	  	 	29	  
	 7.7 Tax Policy
	  	 	29	  
	 7.8 Section 754 Election
	  	 	29	  
	 7.9 Capital Accounts
	  	 	29	  
		
	 ARTICLE 8. ALLOCATIONS
	  	 	30	  
	 8.1 Allocation of Net Income and Net Loss
	  	 	30	  
	 8.2 Loss Limitation
	  	 	30	  
	 8.3 Minimum Gain Chargebacks and Nonrecourse Deductions
	  	 	31	  
	 8.4 Qualified Income Offset
	  	 	31	  
	 8.5 Code Section 704(b) Allocations
	  	 	31	  
	 8.6 Other Allocation Provisions
	  	 	32	  
	 8.7 Distributions of Nonrecourse Liability Proceeds
	  	 	32	  
	 8.8 Taxable Year; Fiscal Year
	  	 	32	  
	 8.9 Recapture
	  	 	32	  
		
	 ARTICLE 9. DISTRIBUTIONS
	  	 	32	  
	 9.1 Percentage Interests in Company
	  	 	32	  
	 9.2 Certain Definitions
	  	 	33	  
	 9.3 Operating Cash Flow Distributions
	  	 	35	  
	 9.4 Extraordinary Cash Flow Distributions
	  	 	36	  
	 9.5 Loss of Promoted Interest
	  	 	37	  
	 9.6 No Distributions In Kind
	  	 	37	  
		
	 ARTICLE 10. ASSIGNMENT AND OFFER TO PURCHASE
	  	 	37	  
	 10.1 Transfers
	  	 	37	  
	 10.2 Assumption by Assignee
	  	 	38	  
	 10.3 Miscellaneous Provisions Related to Transfers
	  	 	38	  
	 10.4 Amendment of Certificate of Formation
	  	 	39	  
	 10.5 Upstream Transfers
	  	 	40	  
	 10.6 Right to Cause Sale of Project
	  	 	40	  
	 10.7 Buy-Sell
	  	 	42	  
	 10.8 Provisions Generally Applicable to Sales
	  	 	43	  
	 10.9 Compliance with ERISA
	  	 	46	  

  
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	 ARTICLE 11. DISSOLUTION OR BANKRUPTCY OF A MEMBER
	  	 	48	  
	 11.1 Dissolution or Merger
	  	 	48	  
	 11.2 Bankruptcy, etc.
	  	 	48	  
	 11.3 Reconstitution
	  	 	49	  
		
	 ARTICLE 12. CROSS-DEFAULT
	  	 	49	  
		
	 ARTICLE 13. DISSOLUTION
	  	 	49	  
	 13.1 Winding Up by Members
	  	 	49	  
	 13.2 Winding Up by Liquidating Member
	  	 	49	  
	 13.3 Offset for Damages
	  	 	50	  
	 13.4 Distributions of Operating Cash Flow
	  	 	51	  
	 13.5 Distributions of Proceeds of Liquidation
	  	 	51	  
	 13.6 Orderly Liquidation
	  	 	51	  
	 13.7 Financial Statements
	  	 	51	  
	 13.8 Restoration of Deficit Capital Accounts
	  	 	51	  
		
	 ARTICLE 14. NOTICES
	  	 	52	  
	 14.1 In Writing; Address
	  	 	52	  
	 14.2 IRS Notices
	  	 	53	  
	 14.3 Copies
	  	 	53	  
		
	 ARTICLE 15. MISCELLANEOUS
	  	 	53	  
	 15.1 Additional Documents and Acts
	  	 	53	  
	 15.2 Interpretation
	  	 	53	  
	 15.3 Entire Agreement
	  	 	53	  
	 15.4 References to this Agreement
	  	 	54	  
	 15.5 Headings
	  	 	54	  
	 15.6 Binding Effect
	  	 	54	  
	 15.7 Counterparts
	  	 	54	  
	 15.8 Confidentiality
	  	 	54	  
	 15.9 Amendments
	  	 	54	  
	 15.10 Exhibits
	  	 	54	  
	 15.11 Severability
	  	 	54	  
	 15.12 Qualification in Other States
	  	 	54	  
	 15.13 Forum
	  	 	54	  
	 15.14 No Brokerage
	  	 	55	  
	 15.15 Tax Compliance
	  	 	55	  
	 15.16 Waiver of Partition and Certain Other Rights
	  	 	55	  
	 15.17 Creditors Not Benefitted
	  	 	55	  

  
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 EXHIBITS 
  

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

  
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 LIMITED LIABILITY COMPANY AGREEMENT 

OF 
 GGT SPRING TOWN TX,
LLC 
 This Limited Liability Company Agreement of GGT Spring Town TX, LLC (this “Agreement”) is entered into and shall
be effective as of December 20, 2013, by and between MCRT Spring Town LLC, a Delaware limited liability company (“MCR”), and GGT Spring Town Holdings, LLC, a Delaware limited liability company (“CNL”), pursuant
to the provisions of the Act (as herein defined). 
 R E C I T A L S 

WHEREAS, GGT Spring Town TX, LLC (the “Company”) was formed on October 18, 2013, pursuant to the Act by filing a
Certificate of Formation with the Secretary of State of the State of Delaware (the “Certificate of Formation”). 
 WHEREAS,
reference is hereby made to that certain Real Estate Purchase Agreement with an effective date of March 18, 2013, by and between MCRT Investments, LLC, a Delaware limited liability company, as purchaser (“Purchaser”), and
Grand-Kuykendahl, Ltd., a Texas limited partnership, as seller (“Property Seller”) (as the same may have been amended, modified or supplemented, the “Land Contract”), whereby Purchaser has agreed to purchase from
Property Seller, and Property Seller has agreed to sell to Purchaser, the real property located on the corner of Northcrest and Spring Stuebner Roads in Harris County, Texas, as more particularly described in Exhibit B hereto, together with
certain appurtenances associated therewith (collectively, the “Property”). 
 WHEREAS, CNL and MCR desire to form the
Company for the purposes of acquiring the Property and constructing a Class A rental apartment community on the Property with 396 units, together with amenities and related improvements (the “Project”), and leasing and managing
the Project, but in any case the Project is intended to be held by the Company for investment and/or held for appreciation and subsequent sale. 

WHEREAS, contemporaneously with the execution of this Agreement, Purchaser has assigned its interest under the Land Contract to the Company.

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

ARTICLE 1. DEFINITIONS 

1.1 Definitions. The following terms shall have the following meanings when used herein: 

Acceptable Person. Any person who or which is not (i) a tax exempt organization as defined in Section 501(c) of the Code,
(ii) a person whose direct or indirect participation in the Company would result in a Plan Violation or (iii) in default or in breach, beyond any applicable grace period, of its obligations under any material written agreement with a
Member or any of its Affiliates. 

  
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 Act. The Delaware Limited Liability Company Act, 6 Delaware Code, Section 18-101 et.
seq. (or any corresponding provisions of succeeding law), as in effect at the time of the initial filing of the Certificate, and as thereafter amended from time to time. 

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

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

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

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

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

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

Adjusted Capital Account. As defined in Section 8.2. 

Affiliate. As to any person (i) any person directly or indirectly controlling, controlled by, or under common control with such
person and (ii) any holder of more than fifty percent (50%) of the voting interest of such person. For the purpose of this definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as used with respect to any person, means having, directly or indirectly, the power to direct or cause the direction of the management and policies of such person, whether through
the ownership of voting securities, by contract or otherwise. 
 Agreement. This Limited Liability Company Agreement, including all
Exhibits attached hereto, as it may be amended from time to time. 
 Appraisal Notice. As described in Section 13.2(b). 

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

Buy-Sell Deposit. As described in Section 10.7(b). 

Capital Account. As described in Section 7.9. 

Capital Budget. As described in Section 6.4. 

Capital Contribution. For each Member, the aggregate of sums contributed to the capital of the Company by such Member pursuant to
Article IV hereof. 

  
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 Cause. As defined in Section 6.7. 

Certificate of Formation. As described in the Recitals above. 

CFG. As defined in Section 10.1. 

CGP. As defined in Section 10.1. 

CNL. As described in the first paragraph above. 

CNL Consent. The written consent of CNL. 

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

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

CNL Maximum Initial Capital. As defined in Section 4.1. 

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

CNL Sale Deposit. As described in Section 10.6(c). 

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

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

Code Compliance Changes. As defined in the Development Agreement. 

Company. GGT Spring Town TX, LLC, a Delaware limited liability company. 

Company Financing. Financing that is provided to the Company. 

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

Completion. As defined in the Development Agreement. 

Construction Contract. The guaranteed maximum price construction contract for construction of the Project entered into between the
Company and the General Contractor. 
 Construction Lender. Synovus Bank, a Georgia state banking corporation. 

Construction Loan. That certain loan in the original principal amount of $32,060,000 provided by Construction Lender to finance the
costs of acquisition of the Property and construction of the Project. 

  
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 Development Agreement. That certain Development Agreement dated of even date herewith by
and between the Company and MCR providing for the development of the Project on the Property. 
 Development Fee. As described in
Section 6.8. 
 Disproportionate Capital. As described in Section 9.2(g). 

Effective Date. The date this Agreement shall be signed by CNL and MCR, as stated in the first paragraph above. 

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

ERISA. The Employee Retirement Income Security Act of 1974, as amended. 

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

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

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

Fair Market Value. As described in Section 13.2(c). 

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

Initial Capital Contributions. As defined in Section 4.1. 

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

Land Contract. As defined in the Recitals above. 

Leasing Guidelines. The leasing guidelines for the Project as approved (and amended) by the Members in accordance with
Section 6.12. 
 Liquidating Member. The Member in sole charge of winding up the Company and having the powers described in
Section 13.2. 
 Loan Closing. The closing of the Construction Loan. 

  
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 Loan Request Notice. As defined in Section 5.1. 

Major Capital Event. One or more of the following: (i) sale of all or any part of, or any interest in, Company property (including
the Project and the Property), exclusive of sales or other dispositions of tangible personal property not made as part of a sale including the Property; (ii) placement and funding of any indebtedness of the Company with respect to borrowed
money, whether or not secured by some or all of its assets, excluding unsecured borrowing (including trade payables) in the ordinary course of business; (iii) condemnation of all or any material part of, or any interest in, the Property or the
Project through the exercise of the power of eminent domain; or (iv) receipt of insurance proceeds as a result of any loss of Company property or any part thereof or interest therein by casualty, failure of title or otherwise. 

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

Management Agreement. As set forth in Section 6.9. 

Managing Member. CNL. 

MCR. As described in the first paragraph above. 

MCR Guarantor. MCRT West Assurance XIX LLC, a Delaware limited liability company. 

MCR Maximum Initial Capital. As defined in Section 4.1. 

MCR Principals. Means, collectively, William C. MacDonald, Darren Schackman, Jeb Cox and Alan E. Kolar. 

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

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

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

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

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

Members. The parties to this Agreement and any Person subsequently admitted to the Company as a substitute or additional Member in
accordance with the terms of this Agreement. Member means any of the Members. The initial Members are CNL and MCR. 
 Membership
Interest. The entire ownership interest of a Member in the Company, including the Member’s Capital Account, interest in profits and losses, the right to receive distributions from the Company and the rights, if any, to participate in the
management of the Company or consent to any actions by the Company. 
 Mill Creek. As defined in Section 10.1. 

  
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 Minor Field Changes. As defined in the Development Agreement. 

Net Income and Net Loss. For any period, an amount equal to the Company’s items of taxable income or loss, respectively,
for the period, determined in accordance with Section 703 of the Code, with the following adjustments: 
 (i) Any income of the Company
that is exempt from federal income tax and not otherwise taken into account as an item of Net Income or Net Loss pursuant to this definition will be added to taxable income or taxable loss. 

(ii) Any expenditure of the Company described in Section 705(a)(2)(B) of the Code, or treated as a Section 705(a)(2)(B) expenditure
pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account as an item of Net Income or Net Loss pursuant to this definition will be subtracted from taxable
income or taxable loss. 
 (iii) Gain or loss resulting from transfer of Company property with respect to which gain or loss is recognized
for federal income tax purposes will be computed by reference to the book values (as maintained by the Company pursuant to the capital account maintenance provisions of Treasury Regulations Section 1.704-1(b)(2)(iv)) of the property,
notwithstanding that the adjusted tax basis of the property differs from its book value. 
 (iv) Any increase or decrease to Capital
Accounts as a result of an adjustment to the book values (as maintained by the Company pursuant to the capital account maintenance provisions of Treasury Regulations Section 1.704-1(b)(2)(iv)) of Company property pursuant to Treasury Regulation
Section 1.704-1(b)(2)(iv)(f) will be an item of Net Income or Net Loss, as appropriate. 

(v) If the basis of Company property is adjusted pursuant to Treasury Regulation
Section 1.704-1(b)(2)(iv), depreciation computed in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(g) will be taken into account in lieu
of the depreciation, amortization and other cost recovery deductions otherwise allowed in computing taxable income or taxable loss. 

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

Nonrecourse Deductions. As described in Section 8.3(b) 

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

Operating Budget. As described in Section 6.4. 

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

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

  
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 Operating Shortfall. For any given period after Completion of the Project, if the
operating expenses of the Company in the normal course of business of the Company (including debt service under any Company Financing) for such period exceed or are expected to exceed the gross receipts for such period of the Company plus available
cash reserves, and the Company therefore is expected to suffer, or has suffered, a cash flow deficit. 
 Opportunity. As defined in
Section 2.8(b). 
 Out-of-Pocket Costs. Any costs or expenses incurred by the Managing Member or Operating Member or their
Affiliates acting within the scope of their respective authority under this Agreement (including travel costs and FedEx/mail charges), provided that such costs or expenses are necessary or beneficial for the Company’s business as described in
Section 2.3 and are consistent with the Project Budget or the then effective Operating Budget. 
 Percentage Interest. As
described in Section 9.1. 
 Permitted Leases. Leases of apartment units within the Project entered into pursuant to the
approved Leasing Guidelines in the ordinary course of the Project’s operations as an apartment community. 
 Person. The term
“person” includes individuals, partnerships, limited liability companies, corporations, trusts, and other associations. 
 Plan
Violation. A transaction, condition or event that would constitute a nonexempt prohibited transaction under ERISA. 
 Plans and
Specifications. As defined in the Development Agreement. 
 Pre-Development Costs. Those certain costs and expenses incurred by
MCR for the benefit of the Company as set forth on Exhibit H attached hereto and incorporated herein by reference, which shall be reimbursed to MCR in accordance with Section 4.1. 

Project. As described in the third paragraph of the Recitals. The Project includes the Property unless the context otherwise requires.

 Project Budget. The budget approved by Member Consent for the acquisition, construction, development, marketing and financing of
the Project, as amended from time to time. The initial Project Budget is attached hereto as Exhibit G. 
 Project Value.
As described in Section 10.7(a). 
 Property. As described in the second paragraph of the Recitals. 

Property Closing. The closing of the Company’s acquisition of the Property pursuant to the Land Contract. 

  
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 Property Manager. The property manager and any successor thereto selected by Member
Consent or, to the extent a Member has the unilateral right pursuant to this Agreement to select such successor, as selected by such Member. 

Proposer. As described in Section 10.7(a). 

Regulatory Allocations. As described in Section 8.5. 

Requirements. All state, federal and local laws, ordinances, rules, regulations, codes, requirements of governmental authorities,
permits, licenses, approvals, and the terms of all restrictions, easements and other arrangements of record in the real property records, in each case to the extent affecting all or any portion of the Project. 

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

REIT. A real estate investment trust as defined pursuant to Sections 856 through 860 of the Code and the Treasury Regulations
promulgated thereunder. 
 Sale Notice. As defined in Section 10.6(c). 

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

Stabilization Date. The later of (i) the last day of the first three consecutive calendar month period during which Operating Cash
Flow (calculated without reduction for debt service) is at least equal to the debt service on all Company Financing or (ii) Completion. 

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

Target Balance. With respect to any Member as of the close of any period for which allocations are made under Article 8, the
amount such Member would receive (or be required to contribute) in a hypothetical liquidation of the Company as of the close of such period, assuming for purposes of such hypothetical liquidation: (i) a sale of all of the assets of the Company
at prices equal to their then book values (as maintained by the Company pursuant to the capital account maintenance provisions of Treasury Regulations Sections 1.704-1(b)(2)(iv)); and (ii) the distribution of the net proceeds computed under
clause (i) above to the Members pursuant to Sections 4.5(d) and 9.4, after the payment of all actual Company indebtedness, including Member Loans, and any other liabilities related to the Company’s assets, limited, in the case of
nonrecourse liabilities, to the book values of the collateral securing or otherwise available to satisfy such liabilities. 
 Tax Matters
Partner. As described in Section 7.6. 
 Transfer. As described in Section 10.1. 

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

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

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

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

Value. As described in Section 10.7(e). 

The definitions in this Section 1.1 shall apply equally to both the singular and plural forms of the terms defined. Whenever the context
may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase
“,without limitation,”. 
 1.2 Other Defined Terms. Capitalized terms not defined in Section 1.1 shall have the
meanings set forth in the other sections of this Agreement. 
 1.3 Exhibits. The exhibits to this Agreement are incorporated herein
by reference as if fully set forth herein. 
 ARTICLE 2. THE COMPANY 

2.1 Organization. The Members shall operate the Company pursuant to the provisions of this Agreement and, to the extent not supplanted
by this Agreement, the Act. The terms and provisions hereof will be construed and interpreted in accordance with the Act. The provisions of this Agreement will supersede the provisions of the Act to the maximum extent permitted by the Act, it being
the intent of the Members that the Company will be governed by this Agreement rather than the Act to the maximum extent that the Act allows. In the event of a conflict between this Agreement and the Act, this Agreement will control except as to
matters that, under the terms of the Act, may not be changed by a written agreement among the Members. 
 2.2 Name of Company. The
name of the Company will be “GGT Spring Town TX, LLC”. The Managing Member may change the name of the Company at any time; provided, however, that MCR shall have the right to approve the use of any name that includes the word
“MCR” or “Mill Creek” or any variation thereof. 
 2.3 Purpose of Company. The purpose of the Company is to
directly or indirectly carry on the business of acquiring, owning, operating, managing, improving, repairing, renting, mortgaging, refinancing, selling, conveying and otherwise dealing with the Project and all activities reasonably related thereto.
In furtherance of such purpose, the Company shall have all such powers as may be exercised by a limited liability company under the laws of the State of Delaware. Except as permitted by this Section 2.3, the Company shall not engage in any
other business. The Company is authorized to take any legal measures which will assist it in accomplishing its purpose or benefit the Company. 

2.4 Places of Business; Registered Office. The Company may maintain offices and places of business in such locations as selected by the
Managing Member and, to the extent required by law and/or deemed necessary or desirable by the Managing Member, the Managing 

  
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Member shall qualify the Company as a foreign limited liability company in any jurisdiction in which it conducts business. The name and address of the registered agent of the Company in the State
of Delaware is National Registered Agents, Inc., 160 Greentree Drive, Suite 101, Dover, Delaware 19904. The Company’s registered agent and the Company’s registered office may be changed by the Managing Member in compliance with the
relevant requirements of the Act. Notification of any change in the Company’s registered agent or registered office shall be given to the other Member. 

2.5 Further Assurances. The parties hereto will execute whatever certificates and documents, and will file, record and publish such
certificates and documents, which are required to operate a limited liability company under the Act. The parties hereto will also execute and file, record and publish, as required, such certificates and documents as they, upon advice of counsel, may
deem necessary or appropriate to comply with other applicable laws governing the operation of a limited liability company. 
 2.6
Expenses of Formation. The expenses incurred by each of CNL and MCR in connection with its consideration of an investment in the Company and its acquisition of a Membership Interest in the Company, including the fees of any attorney,
financial advisor or other consultant, shall be paid and/or reimbursed by the Company to the extent set forth in the Project Budget and approved by Member Consent. The Members hereby approve payment of the expenses included in Exhibit H. A
Member will not unreasonably withhold its approval of additional expenses so long as the expenses are within the Project Budget. 
 2.7
No Individual Authority. Except as otherwise expressly provided in this Agreement, no Member, acting alone, shall have any authority to act for, undertake or assume any obligations or responsibility on behalf of the Company. No Member, acting
alone, shall have any authority to act for, undertake or assume any obligations or responsibility on behalf of any other Member. 
 2.8
Business Opportunities. 
 (a) Subject to the provisions of, and except as set forth in, subsection (b) of this
Section 2.8, nothing prohibits any Member or any Affiliate or any firm or corporation controlled by or controlling a Member or any other Affiliate of a Member from owning, operating, or investing in any real estate or real estate development
not owned or operated by the Company, wherever located, or otherwise competing with the Company. Each Member agrees that any other Member, any Affiliate of another Member or any director, officer, employee, partner or other person or entity related
to another Member or any of its Affiliates may engage in or possess an interest in another business venture or ventures of any nature and description, independently or with others, including the ownership, financing, leasing, operation, management,
syndication, brokerage and development of real property, whether or not such activities are in competition with the Company, and neither the Company nor the other Member shall have any rights by virtue of this Agreement or their relationship through
the Company in and to such independent ventures or to the income or profits derived therefrom. To the fullest extent permitted by applicable law, the Members hereby waive any obligation or duty which might otherwise be imposed or implied under any
so-called “business opportunity doctrine” or similar theory. 

  
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 (b) MCR covenants and agrees that, until Completion, in the event it proposes to undertake any
additional apartment development opportunities within a one (1) mile radius of the Property (each an “Opportunity”), other than developments existing as of the Effective Date, CNL and Affiliates of CNL Financial Group, LLC
(collectively, “CNL Entities”) shall have the right of first offer to participate in any such Opportunity. To the extent that no CNL Entity responds to an Opportunity within seven (7) days after such Opportunity is identified
to CNL by MCR, or to the extent a CNL Entity has not reached agreement with MCR (satisfactory to MCR) on the terms for participation in an Opportunity within thirty (30) days after such Opportunity is identified to CNL by MCR, MCR shall not be
required to continue to offer any CNL Entity the right to participate to any extent in such Opportunity and MCR (or an Affiliate of MCR) may proceed with the Opportunity, either alone or with other participants, on terms that MCR finds acceptable.

 2.9 Neither Responsible for Other’s Commitments. The Company shall not be responsible or liable for any indebtedness or
obligation of a particular Member incurred either before or after the execution of this Agreement, except as to those responsibilities, liabilities, debts or obligations designated pursuant to the terms of this Agreement. A Member shall not be
responsible or liable for any indebtedness or obligation of another Member incurred either before or after the execution of this Agreement. Each Member indemnifies and agrees to hold the other Member and the Company harmless from such personal
obligations and debts of the indemnifying Member, except as aforesaid. 
 2.10 Affiliates. Any and all activities to be performed by
CNL hereunder may be performed by officers or employees of one or more Affiliates of CNL, provided that all actions taken by such persons on behalf of CNL in connection with this Agreement shall be binding upon CNL. Any and all activities to be
performed by MCR hereunder may be performed by officers or employees of one or more Affiliates of MCR, provided that all actions taken by such persons on behalf of MCR in connection with this Agreement shall be binding upon MCR. 

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

ARTICLE 3. TERM 

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

(a) December 31, 2063; 
 (b)
The sale or other disposition of all or substantially all of the Project, other than to a nominee or trustee of the Company for financial or other business purposes; 

  
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 (c) Dissolution of the Company pursuant to the express provisions of Section 4.5(d)(iii) or
Articles 10, 11 or 13; or 
 (d) The entry of a decree of judicial dissolution of the Company under the Act. 

ARTICLE 4. CAPITAL CONTRIBUTIONS OF THE MEMBERS 

4.1 Capital Contributions of the Members. Upon or following the execution of this Agreement, CNL and MCR shall contribute their pro
rata shares (based upon their respective Percentage Interests) of all amounts payable by the Company at the Property Closing and the Loan Closing, including amounts necessary to reimburse MCR for its Pre-Development Costs and costs to be
reimbursed pursuant to Section 2.6. Such initial capital contribution by CNL shall constitute a portion of “CNL’s Initial Capital”. Such initial capital contribution by MCR shall constitute a portion of “MCR’s
Initial Capital”. MCR’s Initial Capital and CNL’s Initial Capital shall collectively be called the “Initial Capital Contributions”. Such Initial Capital Contributions are reflected on Exhibit A attached
hereto. The amount of cash and the fair market value, as agreed to by Member Consent, of other property contributed by a Member (whether as Initial Capital Contributions or otherwise) shall be credited to such Member’s Capital Account. Without
the express written approval of CNL, in no event shall the aggregate amount of CNL’s Initial Capital exceed Thirteen Million Fifty-Three Thousand Dollars ($13,053,000) plus any increase to such amount as is approved by CNL (such amount being
referred to herein as the “CNL Maximum Initial Capital”), and, without the express written approval of MCR, in no event shall the aggregate amount of MCR’s Initial Capital exceed Six Hundred Eighty-Seven Thousand Dollars
($687,000) plus any increase to such amount as is approved by MCR (such amount being referred to herein as the “MCR Maximum Initial Capital”). Any Construction Cost Overruns (as defined in the Development Agreement) funded by MCR
shall not be treated as a contribution by MCR to the Company or in any manner construed so as to increase MCR’s Capital Account or MCR’s Initial Capital under this Agreement, shall not be treated as Additional Capital of MCR under this
Agreement, shall not be treated as a Member Loan by MCR to the Company and shall not entitle MCR to any interest on or, except as provided in the Development Agreement, any refund of any amounts so advanced and, except as provided in the Development
Agreement, shall not entitle MCR or to any other rights or remedies against the Company or any Member. 
 4.2 No Other Contributions or
Advances. Except as expressly required by this Article 4, neither Member shall have any obligation to make any capital contribution to the Company nor to advance any funds to the Company. Except as expressly provided in this Agreement, neither
Member shall have any right to make any capital contribution or advance of funds to the Company. 
 4.3 No Interest Payable. No
Member shall receive any interest on any of its Capital Contributions. The Operating Return shall not be deemed interest. 
 4.4 No
Withdrawals. No Capital Contribution shall be withdrawn except as hereinafter expressly stipulated. 

  
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 4.5 Additional Capital Contributions. 

(a) When the Operating Member determines in its good faith business judgment that capital is needed by the Company to pay for (i) costs
provided in the Project Budget for which Capital Contributions have not been previously made by the Members and that are not being paid for out of Company Financing or (ii) costs of development or construction of the Project in excess of the
Project Budget, which costs have been approved by Member Consent (and for which each of CNL and MCR has approved an increase in the CNL Maximum Initial Capital and the MCR Maximum Initial Capital, respectively, as provided in Section 4.1)
(collectively, the “Additional Initial Capital”), then the Operating Member shall cause notice to be delivered to the Members setting forth the purposes and amounts of such Additional Initial Capital. Each such notice
delivered to the Members shall constitute an “Additional Initial Capital Funding Notice” pursuant to this Section 4.5(a). All amounts funded by MCR pursuant to this Section 4.5(a) shall constitute a portion of MCR’s
Initial Capital. All amounts funded by CNL pursuant to this Section 4.5(a) shall constitute a portion of CNL’s Initial Capital. Within ten (10) Business Days following the date of delivery of an Additional Initial Capital Funding
Notice (in each case, the “Additional Initial Capital Request Date”), CNL and MCR shall contribute to the Company, in proportion to their Percentage Interests, as Additional Initial Capital, the amount so required, up to the CNL
Maximum Initial Capital, in the case of CNL, and up to the MCR Maximum Initial Capital, in the case of MCR. If a Member fails to fund any of its Additional Initial Capital when and as required by this Section 4.5(a), the Non-Failing Member
shall have an option to purchase the Failing Member’s Entire Interest for a purchase price equal to the Failing Member’s Unreturned Initial Capital and the outstanding principal balance of any Member Loans and Failing Member Loans made by
the Failing Member by providing the Failing Member not less than ten (10) days’ prior, written notice of intent to exercise such option. If the Failing Member fails to cure such failure prior to the expiration of such ten (10)-day notice
period, and the Non-Failing Member exercises such option, the Failing Member will cease to have any interest in the Company or the Project, its Membership Interest in the Company thereafter representing only the right to receive the purchase price
due it, and the Failing Member shall deliver its Entire Interest to the Non-Failing Member within ten (10) days against payment by the Non-Failing Member of the purchase price for the Failing Member’s Entire Interest. 

(b) If the Operating Member determines in its good faith business judgment that additional funds (other than amounts required to be funded
under Section 4.5(a) above) are needed by the Company to fund any Operating Shortfall, or to reimburse the Members or their Affiliates for Out-of-Pocket Costs incurred on behalf of the Company (other than Out-of-Pocket Costs related to or
arising out of the development and construction of the Project to the extent MCR is responsible for such Out-of-Pocket Costs under the Development Agreement), or to pay other debts, liabilities or obligations of the Company (other than items related
to or arising out of the development and construction of the Project to the extent MCR is responsible for such items under the Development Agreement), or to repay or pay down Company Financing when and as required by the terms thereof, then
Operating Member shall cause notice to be delivered to the Members setting forth the purposes and amounts of such additional funds. Each such notice delivered to the Members shall constitute an “Additional Funding Notice”. All
amounts funded by CNL pursuant to this Section 4.5(b) shall constitute a portion of CNL’s Additional Capital, and all amounts funded by MCR pursuant to this Section 4.5(b) shall constitute a portion of MCR’s Additional Capital.
Within ten (10) Business Days following the date of delivery of an 

  
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Additional Funding Notice (in each case, the “Additional Capital Request Date”), each of CNL and MCR may (but shall have no obligation to) contribute to the Company, in
proportion to its Percentage Interest, as Additional Capital, its share of the amount so required. 
 (c) Any and all funds contributed by
the Members pursuant to this Section 4.5 shall be credited to their Capital Accounts in the Company and shall constitute Additional Capital (in the case of contribution of Additional Capital) or Additional Initial Capital (in the case of
contribution of Additional Initial Capital), as the case may be, for all purposes of this Agreement. 
 (d) If a Member (the
“Failing Member”) fails to contribute an amount equal to the entire amount requested of it pursuant to Section 4.5(a) or 4.5(b) within the applicable period after the Additional Initial Capital Request Date or the Additional
Capital Request Date, as applicable, and if any other Member (the “Non-Failing Member”) makes its requested contribution within such applicable time period pursuant to Section 4.5(a) or 4.5(b) and, thereafter, so notifies any
Failing Member of its intention as to the election by the Non-Failing Member to exercise one of its options set forth in this Section 4.5(d) (the “Notice of Intention”), and such Failing Member fails to fully remedy its failure
to contribute such requested capital within ten (10) days after the giving of such Notice of Intention, then one or more of the following may occur, at the option and election of the Non-Failing Member,
which election shall be specified prospectively in the Notice of Intention: (i) the Non-Failing Member may require the Company to repay immediately to the Non-Failing Member the Capital Contribution it made pursuant to Section 4.5(a) or
4.5(b); (ii) the Non-Failing Member may, but need not, make an additional Capital Contribution to the Company not in excess of the amount such Failing Member failed to contribute pursuant to Section 4.5(a) or 4.5(b), in which case
(A) the balance of the Non-Failing Member’s Capital Account and Unreturned Additional Capital or Unreturned Initial Capital, as applicable, shall be increased by $1.15 for each $1.00 not funded by
such Failing Member in response to the applicable Additional Capital Funding Notice or Additional Initial Capital Funding Notice and funded by the Non-Failing Member in accordance with the terms of this Section 4.5 (which adjustment shall be
treated as a further amount of Additional Capital or Additional Initial Capital, as applicable, contributed by such Non-Failing Member), (B) each of such Failing Member’s distribution percentages pursuant to Sections 9.4(g), 9.4(h) and
9.4(i) (other than the percentages for MCR’s promoted interest) shall be reduced by one percent (1%) for every $20,000 of Additional Capital or Additional Initial Capital such Failing Member failed to contribute to the Company pursuant to
this Section 4.5 and Unreturned the Non-Failing Member Unreturned in accordance with the terms of this Section 4.5 and, in turn, each of the Non-Failing Member’s distribution percentages under Sections 9.4(g), 9.4(h) and 9.4(i) (other
than the percentages for MCR’s promoted interest) shall be increased by the equivalent percentage, and (C) any adjustments to the Members’ Capital Account balances to give effect to the foregoing shall be treated as liquidated damages
for tax purposes; (iii) the Non-Failing Member may cause the Company to be dissolved, in which case such Non-Failing Member will be the Liquidating Member and will have the right to cause the Project and other Company assets to be sold or
otherwise liquidated in accordance with Section 13.2; or (iv) the Non-Failing Member may elect to loan to such Failing Member (“Failing Member Loan”), which Failing Member Loan shall
be disbursed to the Company and treated as Additional Capital or Additional Initial Capital, as applicable, contributed to the Company by such Failing Member, an amount equal to the amount such Failing Member failed to contribute pursuant to
Section 4.5(a) 

  
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or 4.5(b), which Failing Member Loan made by the Non-Failing Member to the Failing Member shall bear interest at a rate of 18% per annum (compounded annually) from the date of the advance
until such Failing Member Loan is paid to the Non-Failing Member in full. Payments with respect to such Failing Member Loan shall be made to the Non-Failing Member out of distributions or proceeds from purchase of the Failing Member’s
Membership Interest in the Company that would otherwise have been payable to such Failing Member under this Agreement until fully repaid (which payments will be applied first to accrued interest on the outstanding principal balance and then to the
outstanding principal balance of such Failing Member Loan). Any such Failing Member Loan made to replace Additional Capital shall be nonrecourse to such Failing Member, shall be secured by such Failing Member’s Membership Interest in the
Company and proceeds thereof, and shall be satisfied only out of distributions in respect of the Failing Member’s Membership Interest in the Company and proceeds from purchase of the Failing Member’s Membership Interest in the Company as
provided above in this Section 4.5(d). Any such Failing Member Loan made to replace Additional Initial Capital shall be recourse to such Failing Member, shall be secured by such Failing Member’s Membership Interest in the Company and
proceeds thereof and shall be payable out of distributions in respect of the Failing Member’s Membership Interest in the Company and proceeds from purchase of the Failing Member’s Membership Interest in the Company as provided above in
this Section 4.5(d), but satisfaction of such Failing Member Loan shall not be limited to distributions in respect of the Failing Member’s Membership Interest in the Company or proceeds from purchase of the Failing Member’s Membership
Interest in the Company, and the Non-Failing Member shall retain all rights available at law of in equity to collect such Failing Member Loan. A Failing Member Loan is prepayable at any time or from time to time. If not sooner paid in full, a
Failing Member Loan made to replace Additional Capital shall mature upon the liquidation of the Company; if not sooner paid in full, a Failing Member Loan made to replace Additional Initial Capital shall mature upon the earlier of liquidation of the
Company or demand of the Non-Failing Member that holds such Failing Member Loan. The rights under this Section 4.5(d) shall constitute the sole and exclusive remedies of the Company and the other Member in the event of a failure of any Member
to fund a request for Additional Capital. In the event of a failure of any Member to fund a request for Additional Initial Capital, the Company and the other Member shall have, in addition to the rights under this Section 4.5(d), all other
rights and remedies available at law of in equity to compel funding of such Additional Initial Capital. 
 ARTICLE 5. MEMBER LOANS

 5.1 Member Loans. No Member shall be obligated to lend any money to the Company. If the Operating Member determines that it is
necessary or appropriate for the Company to borrow money from any of the Members, then the Operating Member shall cause notice (a “Loan Request Notice”) to be sent to each of the Members, setting forth the amount proposed to be
borrowed from the Members and the purpose of the proposed Member Loan. Each of the Members shall have the right, but not the obligation, to lend to the Company the amount to be borrowed as set forth in such Loan Request Notice multiplied by its
respective Percentage Interest, which shall be exercisable by notice given to the Company and the other Member within forty-five (45) days of receipt of the Loan Request Notice from the Operating Member or by such earlier date as shall have
been determined to be appropriate by the Operating Member, as set forth in the Loan Request Notice. If any of the Members does not lend the full amount set forth for it in the Loan Request Notice, the other Member shall have the option to

  
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lend the balance. If any Member(s) shall lend any money to the Company, such Member Loan shall not constitute a Capital Contribution by such Member(s) or entitle it to any increase in its share
of the distributions of the Company. Each Member Loan shall be an obligation of the Company, and no Member shall be personally obligated to repay the Member Loan and the Member Loan shall be payable or collectible only out of the assets of the
Company. All such Member Loans shall be on commercially reasonable terms as determined by Member Consent and shall bear interest at a rate of 2% per annum above the prime rate (or the average thereof if published as a range) in each case as
published from time to time in The Wall Street Journal (or if The Wall Street Journal is no longer published, the prime rate as published in a publication of national circulation selected by Member Consent), compounded annually,
adjusted as of the date of each prime rate change published, but in no event shall the rate of interest exceed the highest rate permitted by law for the obligor which, if exceeded, could subject the lending Member to penalties or forfeiture of all
or any part of the interest or principal associated with such Member Loan. 
 5.2 Payment of Member Loans. Member Loans shall be
repaid in accordance with the terms as agreed to by Member Consent. Unless the terms of the Member Loans provide otherwise, if more than one of the Members have outstanding Member Loans, amounts paid in respect of Member Loans shall be paid pro rata
to the Members in accordance with the total principal and interest amounts of Member Loans then outstanding. All amounts received on Member Loans made by a particular Member shall be applied to repay those Member Loans in the chronological order in
which they were made. 
 ARTICLE 6. MANAGEMENT OF THE COMPANY 

6.1 Management. 
 (a) The
day-to-day ordinary and customary business and affairs of the Company shall be managed by Managing Member in its capacity as managing member of the Company, subject to and in accordance with the terms hereof. The Members hereby appoint CNL as the
initial Managing Member of the Company. 
 (b) Subject to approval by Member Consent of Major Decisions under Section 6.2(a) and other
matters requiring Member Consent hereunder, approval by CNL Consent of CNL Decisions under Section 6.2(b), and the other restrictions on authority and express approval rights otherwise provided in this Agreement, the Managing Member shall have
full and complete authority, power and discretion to manage and control the day-to-day affairs and business of the Company and shall have such power as is necessary, convenient or appropriate to carry out the purposes of the Company and to conduct
the day-to-day business of the Company consistent with the terms of this Agreement. Except as otherwise expressly provided in this Agreement, any Member acting alone (other than Managing Member acting in its capacity as managing member of the
Company in accordance with and subject to the terms of this Agreement or Operating Member acting in accordance with the authority delegated to Operating Member in accordance with and subject to the terms of this Agreement) shall have no right, power
or authority to act for or on behalf of, or otherwise bind, the Company. Managing Member agrees to devote to the Company’s business such time as reasonably shall be necessary in connection with its duties and responsibilities hereunder.
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conduct the business and affairs of the Company (i) in accordance with the then effective Project Budget or Operating Budget and Capital Budget, as the case may be, (ii) following
Completion, in a first-class and prudent manner, and (iii) in compliance in all material respects with all Company Financing, all material agreements affecting the Project or the Company, all applicable Requirements and any court orders.
Subject to Section 6.2 and other provisions of this Agreement requiring Member Consent or CNL Consent, as applicable, and the other restrictions on authority and express approval rights otherwise provided in this Agreement, the Managing Member
shall have the rights and authority to act on behalf of the Company with respect to: 
 (i) managing the Company’s operations so as to
preserve the REIT status of the CNL owner and/or prevent the imposition of a prohibited transaction tax, and as may be required for REIT purposes, maintaining tax books and tax records and all other financial statements and records; 

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

(iii) the acquisition, development, maintenance, preservation and operation of the Project in accordance with the provisions of the approved
Plans and Specifications, this Agreement and applicable Requirements; 
 (iv) procurement of such insurance as may be appropriate or
necessary for the prudent development and operation and management of the Project as set forth in this Agreement; 
 (v) collection of
revenues generated by the Company and payment of all expenses of the Company; 
 (vi) establishment, maintenance and drawing upon checking,
savings and other accounts in the name of the Company; 
 (vii) oversight and management of litigation filed on behalf of or against the
Company as set forth in this Agreement 
 (viii) providing to the other Members any notices received by the Managing Member or its
Affiliates regarding any violations of Requirements and any notices received with respect to the Construction Loan or any other Company Financing; 

(ix) maintenance of all accounting and tax records for the Company as set forth in this Agreement, including maintaining all tax books and
tax records and all other financial statements and records in accordance with GAAP and as may be required for REIT purposes; 
 (x)
preparation or oversight of the Company’s independent accountants in the preparation of all federal, state and local tax returns of the Company; 

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

(xii) delivery of, or causing delivery of, to the Company and the members of the Company of all documentation and calculations necessary for
the Company’s independent accountants to prepare the Company’s U.S. income tax return and related Schedule K-1’s; 
 (xiii)
monitoring of compliance with all loan and lender requirements and performing loan covenant testing and loan compliance reporting with respect to the Construction Loan and other Company Financing; 

(xiv) monitoring and oversight of the Property Manager, and delivery to the Members such reports and information as are required of the
Property Manager pursuant to the Management Agreement; 
 (xv) monitoring and management of Company’s cash management functions and
annual independent audit, including maintenance of a system of cash management to comply with lender cash management requirements (including payment of vendors, maintenance of bank accounts, performance of bank reconciliations and the making of debt
service payments); 
 (xvi) maintenance of Capital Accounts for the Members of the Company in accordance with the terms of this Agreement;

 (xvii) implementation of Major Decisions and CNL Decisions as approved and on the terms set forth by Member Consent or CNL Consent, as
applicable; 
 (xviii) making all distributions of Operating Cash Flow and Extraordinary Cash Flow in accordance with the terms of this
Agreement; and 
 (xix) maintaining a system of internal controls necessary for CNL to complete CNL’s Sarbanes-Oxley certifications,
as requested by CNL; provided, however, that to the extent the testing of the Company’s internal controls or the implementation of internal controls as a result of such testing causes the Company to incur non de minimus expenses,
CNL shall bear the responsibility for such expenses. 
 (c) The Managing Member shall have the right to delegate any of the above
responsibilities and authority to any other Member of the Company, subject to the acceptance by such Member of such delegation. The Managing Member hereby designates MCR as Operating Member and delegates to MCR, subject to the right of the Managing
Member to terminate such delegation in accordance with Section 6.7, the foregoing authority of the Managing Member described in subparagraphs (ii) through (xviii) of Section 6.1(b). Until termination of such delegation of
authority, MCR shall have full authority, power, responsibility and discretion to operate the Company in accordance with such delegated authority, responsibilities and duties. MCR hereby accepts such delegation by CNL as Managing Member and agrees
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authority, power and discretion delegated to it as part of such delegation in accordance with the standard of care required under Section 6.1 of this Agreement as if it was the Managing
Member of the Company. CNL acknowledges that MCR shall have no responsibilities or obligations to perform the duties of Managing Member of the Company (including any of the functions enumerated in subparagraphs (ii) through (xviii) of
Section 6.1(b)) except to the extent expressly set forth in other provisions of this Agreement. 
 6.2 Major Decisions. 

(a) Notwithstanding anything to the contrary, without prior written Member Consent in each instance (each, a “Major
Decision”), the Company, Managing Member and the Operating Member shall not: 
 (i) Adopt, modify or supplement the Plans and
Specifications, except for Minor Field Changes and Code Compliance Changes as permitted under the Development Agreement; 
 (ii) Enter into
any contract or transaction with, or pay any amount to, a Member or any Affiliate of a Member, except as expressly provided in this Agreement, the Development Agreement or the Construction Contract; 

(iii) Authorize or enter into any agreement, transaction or action on behalf of the Company that is unrelated to its purpose set forth in
Section 2.3, including acquiring any real property other than the Project and easements and similar interests necessary for the Project; 

(iv) Subject to the terms of Article 10, sell, lease, encumber, assign, convey, exchange or otherwise dispose of, in each case directly or
indirectly, any interest in any asset of the Company, except in the case of (A) the sale of personal property which is not necessary for the operation of the Project (or if necessary, which is replaced by sufficient substitute property) for a
sales price of not more than $25,000, (B) Permitted Leases, (C) easements and similar encumbrances necessary to provide services to the Project or (D) liens for a replacement Company Financing proposed by MCR in accordance with
paragraph (x) below; 
 (v) Modify the Project Budget, other than to reallocate demonstrated line item savings to demonstrated line
item overruns or to provide for use of amounts from the contingency line item, so long as each Member shall be given notice thereof promptly following such action; 

(vi) Voluntarily dissolve or liquidate the Company, except as provided for in this Agreement; 

(vii) Authorize or effect a merger or consolidation of the Company with or into one or more entities, redomicile the Company, or convert the
form of the Company to other than a limited liability company; 
 (viii) Make any call for capital contributions from the Members, except
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 (ix) Select any Property Manager for the management of the Project or, for so long as the
Property Manager is not in default beyond any applicable cure period under the terms of the Management Agreement, terminate the Management Agreement or replace the Property Manager, or amend, modify, supplement, assign or grant any material consents
or waivers under the Management Agreement; provided, however, that if the Property Manager is MCR or an Affiliate of MCR and is in default beyond any applicable cure period under the terms of the Management Agreement, only the consent
of CNL shall be required to terminate the Management Agreement or replace the Property Manager or otherwise amend, modify, supplement or grant any material consents or waivers under the terms of the Management Agreement; 

(x) Except for the Construction Loan, cause the Company to incur any Company Financing or modify, supplement or refinance any Company
Financing; provided, however, that not earlier than thirty (30) days before the maturity of the Construction Loan or any other then-existing Company Financing that has been guaranteed in whole or in part by MCR or any of its
Affiliates (including the MCR Guarantor), if new Company Financing, the proceeds of which will be used to repay the Construction Loan or such other matured Company Financing, has been presented, in good faith, by MCR and is not approved by Member
Consent, then MCR shall be authorized, without Member Consent, to close on such replacement Company Financing presented by MCR, in an amount not more than the then-outstanding balance of the Construction Loan or other matured Company Financing plus
transaction costs to complete the closing on the new Company Financing, and to encumber any or all of the Company’s property (including the Project) as security for such new Company Financing, unless within thirty (30) days after MCR
presents the proposed replacement Company Financing, CNL provides the Company with a commitment for replacement Company Financing for at least as great a principal amount as the replacement Company Financing proposed by MCR, with no requirement for
a guaranty by MCR or its Affiliates (other than a guaranty on terms no more onerous to MCR or its Affiliates than proposed by MCR as part of the replacement Company Financing proposed by MCR) and otherwise on terms at least as favorable to the
Company as the replacement Company Financing proposed by MCR; 
 (xi) Confess a judgment against the Company in excess of $50,000, file or
fail to contest any bankruptcy for the Company as debtor, seek or permit a receivership against the Company, make a general assignment by the Company for the benefit of its creditors or take any similar action for the benefit of creditors of the
Company; 
 (xii) Possess any Company property, or assign the rights of the Company in specific Company property, for other than a Company
purpose; 
 (xiii) Cause the Company to loan funds to any Person or issue any guaranty of obligations of another Person; 

(xiv) Commingle Company funds with the funds of any other Person; 

(xv) Modify the Development Fee or otherwise amend, modify, supplement, assign or grant any material consents or waivers under the
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of the Development Agreement, only the consent of CNL shall be required to terminate the Development Agreement, replace or permit the replacement of MCR as developer under the Development
Agreement or otherwise amend, modify, supplement or grant any material consents or waivers under the terms of the Development Agreement; 

(xvi) Terminate the Construction Contract or otherwise amend, modify, supplement, assign or grant any material consents or waivers requiring
owner consent under the Construction Contract; provided, however, that if MCR is in default beyond any applicable cure period under the terms of the Construction Contract, only the consent of CNL shall be required to terminate the Construction
Contract, replace or permit the replacement of MCR as the General Contractor under the Construction Contract or otherwise amend, modify, supplement or grant any material consents or waivers requiring owner consent under the terms of the Construction
Contract; 
 (xvii) Amend this Agreement or the Certificate of Formation; 

(xviii) Issue any Membership Interest in the Company or admit any Person as an additional member in the Company, except as expressly
permitted by Article 10; 
 (xix) After Completion, determine whether and to what extent the Project should be repaired or restored
following casualty or condemnation, other than as required by Company Financing; 
 (xx) Appoint any substitute Managing Member or delegate
any responsibilities of Managing Member other than as set forth in Section 6.1(b); 
 (xxi) Threaten, file or settle any claim
involving the Company, other than (A) eviction proceedings in the ordinary course of business, (B) claims that are insured (subject to any applicable deductible) and claims involving amounts less than $25,000, individually or in the
aggregate for related claims and (C) in the case of action by MCR, during the construction period, claims related to development or construction of the Project that are within the scope of MCR’s Construction Cost Overrun responsibility
under the Development Agreement; provided that MCR shall provide CNL prior written notice of any such claim and MCR’s proposed response thereto; 

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

(xxiii) hire any employee for the Company; or 

(xxiv) Designate a bank for the deposit of funds of the Company. 

(b) Notwithstanding anything to the contrary, without prior CNL Consent in each instance, the Company, the Managing Member and the Operating
Member shall not do any of the following (each, a “CNL Decision”): 
 (i) Adopt an Operating Budget or a Capital Budget or,
except as expressly provided in another provision of this Agreement, cause the Company to pay or incur any expense not provided for in the Project Budget, an Operating Budget or a Capital Budget; provided, however, that CNL shall not
unreasonably withhold its consent to any proposed expenditure that MCR has advised CNL that MCR considers such expenditure to be necessary to achieve Completion of the Project; 

  
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 (ii) Modify any Operating Budget, except to allow annual variances in line items that do not
exceed in the aggregate in any fiscal year the greater of (A) $5,000 and (B) ten percent (10%) of the line item and that, when taken together with all other variances in the Operating Budget in such fiscal year, do not increase the
total amount provided in the applicable Operating Budget by more than ten percent (10%) in the aggregate; 
 (iii) Modify any Capital
Budget, except to allow an annual aggregate variance not in excess of $50,000 after taking all line item variances into account; and 

(iv) Enter into any contract or agreement that obligates the Company to pay more than $50,000 or that is not terminable on no more than
thirty (30) days’ notice without penalty or charge; provided, however, that subject to the other provisions of Section 6.2(a) and 6.2(b), such restriction shall not restrict the authority of the Managing Member or the
Operating Member to enter into such contracts or agreements with non-Affiliate third parties in the ordinary course of business of operating the Project as an apartment community on such terms as are commercially reasonable in the context of a
“Class A” garden apartment community in the greater Houston, Texas market. 
 CNL will use good faith efforts to consult with MCR on matters
constituting CNL Decisions; provided, however, that CNL shall have no obligation to implement or otherwise be subject to any information or input offered by MCR in connection therewith, except as otherwise provided by this Agreement.

 (c) Each Member shall use good faith efforts to provide the other Member with not less than thirty (30) days’ advance notice of
any proposed decision that requires the approval of such other Member under Section 6.2(a) or 6.2(b); provided, however, that in the event of an emergency or other circumstance that does not reasonably permit such advance notice,
a Member may call upon the other Member to respond within a shorter, reasonable period of time (but in no event less than two (2) Business Days’ advance notice). Member Consent or CNL Consent, as applicable, may be by written consent or
may occur pursuant to a meeting or by conference call with the results confirmed in writing, and such written consent or written confirmation may be delivered in the form of facsimile, electronic mail, telex, telecopy or telegraph. An agenda for
each meeting shall be prepared in advance by the Members in consultation with each other. Approval by Member Consent or CNL Consent, as applicable, of the matter being considered shall be binding on the Company and the Members for all matters. Upon
the request of any of the Members, the Operating Member shall cause written minutes to be prepared of all actions taken by the Members at meetings to consider Major Decisions and/or CNL Decisions and shall deliver a copy thereof to each of the
Members within seven (7) days after the date of the meeting. 
 (d) The authority of both the Managing Member and the Operating Member
to designate a bank for the deposit of Company funds shall be subject to Section 6.3 below. 

  
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 6.3 Bank Accounts. The Company will maintain separate bank accounts in such banks as the
Members by Member Consent may designate or any lender of the Company may require, which accounts shall be exclusively for the deposit and disbursement of funds of the Company. All funds of the Company shall be promptly deposited in such accounts.
The Operating Member may designate representatives of Operating Member to be authorized signatories for such accounts from time to time, provided that a representative of MCR shall at all times be an authorized signatory on all Company bank accounts
without the requirement of any co-signatory for such accounts. All signatories shall be insured by fidelity bonds or employee dishonesty insurance on terms reasonably acceptable to CNL. 

6.4 Annual Budgets. No later than sixty (60) days before Completion, the Operating Member shall prepare or cause to be prepared by
the Property Manager for the Project, for CNL’s review and approval, a proposed operating budget and a proposed capital budget, each for the portion of the then-current calendar year remaining after Completion, in a form reasonably satisfactory
to CNL. The Operating Member shall consult with CNL with respect to such proposed operating budget and proposed capital budget. Once approved by CNL, the applicable final proposed operating budget shall become the “Operating Budget”
hereunder, and, once approved by CNL, the applicable final proposed capital budget shall become the “Capital Budget” hereunder. Thereafter, no later than November 1st of each
calendar year, the Operating Member shall prepare or cause to be prepared by the Property Manager for the Project, for CNL’s review and approval, a proposed operating budget and a proposed capital budget for the upcoming calendar year. The
Operating Member shall consult with CNL with respect to such proposed operating budget and proposed capital budget with the goal that CNL and MCR agree on each such proposed budget on or before December 1st of each calendar year. If approved by CNL, the final proposed operating budget for such subsequent calendar year shall become the then operative “Operating Budget” hereunder for
such calendar year. If approved by CNL, the final proposed capital budget for such subsequent calendar year shall become the then operative “Capital Budget” hereunder for such calendar year. If, as of the commencement of any
calendar year, all or any portion of a proposed Operating Budget has not been approved by CNL, the Operating Member shall be authorized to operate the Company in accordance with those portions of the prior calendar year’s Operating Budget that
pertain to the portions of the proposed Operating Budget that have not been so approved. Notwithstanding the foregoing, until a new Operating Budget for a calendar year is approved by CNL, the Operating Member may make expenditures for real estate
taxes, scheduled debt service payments, insurance premiums for insurance maintained in accordance with the terms of this Agreement, common area expenses, fulfillment of obligations to tenants under Permitted Leases and utilities, regardless of the
amounts permitted therefore in the prior calendar year’s Operating Budget. 
 6.5 Insurance. The Operating Member shall cause
the Company to obtain and maintain all insurance described on Exhibit D to the extent that such required coverages are available on commercially reasonable terms. If the Operating Member determines that any of such insurance coverages are not
available on commercially reasonable terms, then the Operating Member shall notify the Members and, subject to the last sentence of this Section 6.5, the Members shall agree upon the coverages to be maintained and the means of placing the
related insurance. Nothing in this Section 6.5 requires the Operating Member to obtain insurance coverage that it is unable to arrange on commercially reasonable terms. CNL will have the right to place any insurance coverage listed in Exhibit D
that the Operating Member advises it is unable to obtain so long as the cost and terms for such coverage arranged by CNL are commercially reasonable. 

  
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 6.6 Consultation Regarding the Project. CNL, as Managing Member, directly or through its
agents or Affiliates, notwithstanding the delegation of authority granted to the Operating Member, shall have the right to consult with and provide comments to the Operating Member on significant issues relating to the management and business of the
Company and development of the Project, and, if requested by CNL, each of the Company and the Operating Member will make available its officers and representatives of its accountants to meet with CNL or its agents or Affiliates from time to time
during each year at mutually agreeable times for such consultation and to review the management, progress and conditions (financial and otherwise) of the Project and the management of the Company. Notwithstanding anything to the contrary in this
Agreement, the rights of CNL to provide such consultation shall include: (a) the right to discuss, and provide advice with respect to, the Company’s business (including the management of the Project) with the Operating Member and the
Company’s officers, employees, managers and agents and the right to consult with and advise the Operating Member on matters materially affecting the Company (including the Project); (b) the right to submit business proposals or suggestions
relating to the Company (including the Project) to the Operating Member and the Company’s management from time to time with the requirement that one or more members of the Operating Member’s management discuss such proposals or suggestions
with CNL or its agent or Affiliate, as applicable, within a reasonable period after such submission and the right to call a meeting with the Operating Member’s management in order to discuss such proposals or suggestions; and (c) the right
(i) to visit the Company’s business premises and the Project during normal business hours, (ii) to receive financial statements, operating reports, budgets or other financial reports of the Company (including those relating to the
Project) on a regular basis describing the financial performance, significant proposals and other material aspects of the Company (including the Project), (iii) to examine the books and records of the Company (including those relating to the
Project) and (iv) to request such other information relating to the Company (including the Project) at reasonable times and intervals in light of the Company’s normal business operations concerning the general status of the Company’s
business, financial condition and operations (including the Project) but only to the extent such information is reasonably available to the Company and in a format consistent with how the Company maintains such information. 

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

(a) CNL shall have the right, without the concurrence of MCR, to terminate the delegation of authority to MCR as Operating Member, and remove
MCR as Operating Member, (i) before Completion, if Cause exists or (ii) after Completion, at any time with or without Cause. For the avoidance of doubt, any termination by CNL and removal of MCR as Operating Member shall not affect
MCR’s right to approve Major Decisions or any other matters requiring Member Consent under this Agreement. 
 (b) For purposes of this
Agreement, termination of MCR as Operating Member for “Cause” shall mean termination due to any one or more of the following: (i) any material breach or default by MCR in its obligations as Operating Member as delegated by the
Managing Member under this Agreement, which breach or default, if the same may be cured by 

  
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the payment of money, has not been cured within fifteen (15) days after written notice to MCR, or if the same may not be cured by the payment of money, has not been cured within thirty
(30) days after written notice to MCR (provided, however, that MCR shall have an additional ninety (90) days to cure such breach if such breach is not curable within such thirty (30) day period, so long as MCR has commenced cure
within such initial thirty (30) day period and continues to prosecute to completion with diligence and continuity the curing thereof within such additional ninety (90) day period); (ii) any act by MCR that MCR knows to be beyond the
scope of its authority under this Agreement when the act is taken; (iii) in the event of any fraud, gross negligence or willful misconduct by MCR against CNL or the Company in connection with MCR’s activities as Operating Member;
(iv) the Project not Completed by the date required under the Development Agreement (except in the case of an Event of Force Majeure as defined in the Development Agreement); (v) MCR’s termination as developer pursuant to the terms of
the Development Agreement prior to Completion; and (vi) prior to Completion, none of the MCR Principals (or a replacement individual reasonably acceptable to CNL) is involved in management of the day-to-day operations of MCR. Such removal and
termination of authority shall be effective upon delivery of written notice thereof to MCR and, upon MCR’s removal and termination, CNL shall have the right to become the substitute Operating Member, directly or through an Affiliate, or, if
termination of MCR is for Cause, to appoint and delegate authority to another person as substitute Operating Member, who shall have such rights and obligations of the Operating Member as may be delegated by the Managing Member. 

(c) As a condition to terminating the delegation of authority of MCR as Operating Member, and removing MCR as Operating Member, without Cause,
CNL must cause the Construction Loan and any other Company Financing for which MCR or any MCR Affiliate (including the MCR Guarantor) has any personal liability to be paid in full and satisfied. MCR’s removal as Operating Member without Cause
shall in no form or fashion affect MCR’s economic interest as a Member of the Company pursuant to this Agreement or the right of MCR Development to receive the Development Fee provided in the Development Agreement. Furthermore, in the event of
removal of MCR as Operating Member for Cause, such removal shall not in any form or fashion affect or the right of MCR Development to receive the Development Fee provided in the Development Agreement (unless the Development Agreement is also
terminated) or MCR’s economic interest as a member of the Company pursuant to this Agreement unless such removal for Cause is a result of one of the matters specified in Section 9.5 of this Agreement, and then the economic interest of MCR
as a Member of the Company shall be effected by such removal only to the extent provided in Section 9.5 below. 
 6.8
Development. The Company shall retain MCR as the developer for the Project, to act as the Company’s sole and exclusive agent to coordinate and supervise the management and administration of the development of the Project and the
construction of the improvements comprising the Project. The Company and MCR are simultaneously with execution of this Agreement entering into the Development Agreement. MCR will cause Completion of the Project for a cost not to exceed the
Guaranteed Price (as defined in the Development Agreement). MCR shall cause MCR Guarantor to provide all guaranties required in connection with the Construction Loan, including any completion guaranty, cost guaranty and/or construction warranty as
required by the Construction Lender. As compensation for MCR’s development services, the Company agrees to pay MCR a development fee (the “Development Fee”) equal to three percent (3%) of the aggregate costs in the Project
Budget. 

  
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 6.9 Management Agreement. The Company will enter into a management agreement (the
“Management Agreement”) with the Property Manager to manage the Project, pursuant to which, as compensation for the services described therein, Property Manager shall be paid a property management fee as set forth in the Management
Agreement. The initial Property Manager will be an Affiliate of MCR designated by MCR, which initial Property Manager shall be paid a property management fee of 2.50% of gross receipts from the Project with a monthly floor of $8,000. The Members
shall negotiate the terms of the Management Agreement with the initial Property Manager in good faith. The MCR Affiliated Property Manager shall not be terminated by the Company unless (i) MCR is removed as the Operating Member in accordance
with Section 6.7 or (ii) the MCR Affiliated Property Manager is in default under the Management Agreement beyond any applicable cure periods. Should the Management Agreement with the initial Property Manager terminate for any reason, the
Company will enter into a replacement Management Agreement for management of the Project subject to, and in accordance with, the terms of Section 6.2. 

6.10 Contracts with Affiliates. Notwithstanding anything to the contrary, CNL shall have the authority to enforce the remedies of the
Company, and the sole and exclusive right to grant any waiver of performance, under any contract with MCR or an Affiliate of MCR, including the Development Agreement, the Construction Contract and the Management Agreement with the initial Property
Manager pursuant to Section 6.8. 
 6.11 Indemnification of Members; Exculpation. The Company shall hold harmless, indemnify and
defend each of the Managing Member and the Operating Member and each of their respective Affiliates from and against any and all claims, suits, actions, and other proceedings, and all loss, cost, damage, expense or liability (including fees and
expenses of attorneys and other professional advisors and court costs) arising out of or relating to (i) the status as a Member of the Company or its relationship with the Company or, to the extent related to the Company, another Member or
(ii) any action taken, omitted or suffered by the Managing Member or the Operating Member in the performance of their respective duties as Managing Member or Operating Member hereunder, or otherwise in their capacity as the Managing Member or
Operating Member, as to any Member or its Affiliates provided that such decision or action taken, omitted or suffered by such Managing Member or Operating Member, as applicable, was done so in the reasonable and good faith belief that such decision
or action was in the best interest of the Company and within the authority of such Managing Member or Operating Member, as applicable and did not involve or result from (x) fraud, bad faith, gross negligence or willful misconduct on the part of
the Member or any of its Affiliates, (y) the breach of any covenant, agreement or obligation of the Member or its Affiliates contained in this Agreement or, in the case of MCR, the Development Agreement, the Construction Contract or the
Management Agreement with MCR’s Affiliated Property Manager or (z) the knowing breach of any representation or warranty made by the Member in this Agreement. A Member will not be liable or accountable, in damages or otherwise, to the
Company or the other Member for anything the Member may do or refrain from doing in managing the business, properties and affairs of the Company provided that such decision or action taken, omitted or suffered by such Member was done so in the
reasonable and good faith belief that such decision or action was in the best interest of the Company and did not involve or result from (a) fraud, bad faith, gross negligence or willful misconduct on the part of the Member or (b) actions
that the Member knows to be outside the scope of its authority as allowed by this Agreement when taken. MCR’s responsibility in respect of design and construction of the Project is as provided in the Development Agreement, and MCR will have no
greater responsibility solely in respect of design and construction of the Project than as provided in the Development Agreement. 

  
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 6.12 Leasing Guidelines. The Members shall negotiate in good faith to develop and agree
upon initial Leasing Guidelines for the lease up of the Project as an apartment community following the execution of this Agreement and prior to the execution of any lease within the Project. The Members shall negotiate in good faith to amend the
Leasing Guidelines as may be necessary from time to time. All Leasing Guidelines shall be approved by Member Consent. 
 ARTICLE 7.
BOOKS AND RECORDS, AUDITS, TAXES, ETC. 
 7.1 Books; Statements. 

(a) In addition to the establishment and maintenance of Capital Accounts pursuant to Section 7.9, the Company shall keep all books and
records required under the Act and such other books and records as shall be necessary, as determined by the Managing Member. All financial statements of the Company provided for below shall be prepared in accordance with GAAP, consistently applied.

 (b) Following the Effective Date: 

(i) following a tenant’s occupancy of any portion of the Project, Operating Member shall prepare or cause to be prepared a statement
setting forth the calculation of Operating Cash Flow for each month for which the Company is to make periodic distributions of Operating Cash Flow as provided in Section 9.3, and the Company shall furnish a copy of such cash flow statement to
each Member within twenty-one (21) days after the end of such month; 
 (ii) no later than the seventh (7th) day after each month-end, Operating Member shall prepare and submit or cause to be prepared and submitted to each Member an unaudited balance sheet of the Company dated as of the end of such
month, together with a profit and loss statement and statement of cash flows for such month and for the portion of the fiscal year then ended and a statement of change in each Member’s capital for the month; and 

(iii) no later than the seventh (7th) day of each January, April, July and October
during the term of this Agreement, Operating Member shall prepare and submit or cause to be prepared and submitted to each Member a profit and loss statement for the calendar quarter immediately preceding with a cumulative fiscal year accrual basis
profit and loss statement to date and a statement of change in each Member’s capital for the quarter and the fiscal year to date; and 

(c) As soon as practicable following the end of each fiscal year of the Company, an annual audit shall be conducted by independent certified
public accountants of recognized standing, selected by CNL in accordance with Section 7.6 and retained by the Company, which audit shall cover the assets, properties, liabilities and net worth of the Company, and its dealings, transactions and
operations during such fiscal year, and all matters and things customarily included in such audits, and a full, detailed certified financial statement 

  
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shall be furnished to each Member within sixty (60) days after the end of such fiscal year, showing on an accrual basis in accordance with GAAP the financial condition of the Company at the
end of such fiscal year and the results of operations of the Company for such fiscal year and, if applicable, a full and complete report of the audit scope and audit findings in the form of a management audit report with an internal control
memorandum. 
 (d) In its preparation of the financial statements set forth in this Section 7.1, the Operating Member shall maintain a
system of internal controls necessary for CNL to complete CNL’s Sarbanes-Oxley certifications, as requested by CNL; provided, however, that to the extent the testing of the Company’s internal controls or the implementation of
internal controls to satisfy CNL’s standards causes the Company or the Operating Member to incur non de minimus expenses, CNL shall bear the responsibility for such expenses. CNL shall from time to time advise the Operating Member of the
requirements necessary to meet CNL’s Sarbanes-Oxley standards so as to allow the Operating Member to implement appropriate internal controls. 

7.2 Where Maintained. The books, accounts and records of the Company shall be at all times maintained at the offices of MCR or as
otherwise specified in the Management Agreement in effect with respect to the Project from time to time, and available to the Members for review and copying. 

7.3 Audits. In addition to the annual audit of the Company as required under Section 7.1(c), any Member may, at its option and at
its own expense, conduct internal audits of the books, records and accounts of the Company. Audits may be on either a continuous or a periodic basis or both and may be conducted by employees of any Member, or an Affiliate of any Member, or by
independent auditors retained by any Member. 
 7.4 Objections to Statements. Following Completion, any Member shall have the right
to object to any of the statements described in Section 7.1(b) and 7.1(c) by giving notice to the other Members within forty-five (45) days after such statement is received by each Member indicating in reasonable detail the objections of
such Member and the basis for such objections. If any Member shall fail to give such notice within said forty-five (45) day period, such statement and the contents thereof shall, in the absence of fraud or willful misconduct by the Member or
the independent certified public accountants preparing the statements, be deemed conclusive and binding upon such Member so failing to give such notice subject, in the case of the statements provided for in Section 7.1(b) to the audit provided
for in Section 7.1(c). Objections to any statement and any disputes concerning the findings of, and questions raised as the result of, audits of the Company’s books shall be settled by Member Consent. 

7.5 Tax Returns. The Company shall elect to be treated and shall file its tax returns as a partnership for federal and, to the maximum
extent allowed, state, municipal and other governmental income tax purposes. The Company shall prepare or cause to be prepared, on an accrual basis, all federal, state, municipal and other governmental partnership income tax returns required to be
filed. Unless otherwise determined by Member Consent, such tax returns shall be prepared by independent certified public accountants selected pursuant to Section 7.6, who shall sign such returns as preparers. The Company shall submit
(i) draft returns to each Member for review and approval no later than ninety (90) days after the close of the Company’s taxable year and (ii) final returns to each Member for review and approval no later than five and one-half
(5 1⁄2) months after the close of the Company’s taxable year. Each Member shall notify the other Member(s) upon receipt of any notice of tax examination
of the Company by federal, state or local authorities. 

  
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 7.6 Tax Matters Partner. CNL is hereby appointed the “Tax Matters
Partner” of the Company for all purposes pursuant to Sections 6221-6231 of the Code, with respect to operations conducted by the Company during the period that CNL is a Member. The Tax Matters Partner shall comply with the requirements of
Section 6221 through 6232 of the Code. The Tax Matters Partner shall have the authority, in its reasonable discretion, to select and appoint, from time to time, independent certified public accountants to prepare tax returns and annual audited
financial statements for the Company, the expense of which shall be borne by the Company. Notwithstanding the foregoing, the Tax Matters Partner shall have no authority to bind the Company or any other Member. 

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

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

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

ARTICLE 8. ALLOCATIONS 

8.1 Allocation of Net Income and Net Loss. After application of Section 8.3 and Section 8.4, and subject to Section 8.2,
any remaining Net Income or Net Loss for a taxable year (or other period for which the Treasury Regulations requires an allocation to be made) shall be allocated among the Members and to their Capital Accounts as may be required to cause the
balances of the Members’ Capital Accounts (in the case of each Member, increased by (i) such Member’s obligation to restore a deficit balance in its Capital Account, including any deemed obligation pursuant to the penultimate
sentences of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), and (ii) the share of Company Minimum Gain and Member Nonrecourse Debt Minimum Gain allocable to the Member, as determined
pursuant to Treasury Regulation Section 1.704-2) to be as nearly equal to their Target Balances as possible, consistent with the provisions of Section 8.5. To the extent the allocation of Net Income or Net Loss does not cause the Capital
Account of each Member (as so adjusted) to equal its Target Balance, items of income or gain (including items of gross income) will be reallocated to any Member with a Capital Account (as so adjusted) which is less than its Target Balance, and items
of loss, deduction or expense will be reallocated to any Member with a Capital Account (as so adjusted) that is greater than its Target Balance, in each case in such manner as to reduce, to the greatest extent possible, the aggregate differences
between Target Balances and Capital Accounts (as so adjusted). 
 8.2 Loss Limitation. Net Loss allocated pursuant to
Section 8.1 shall not exceed the maximum amount of Net Loss that can be allocated without causing or increasing a deficit balance in a Member’s Adjusted Capital Account. A Member’s “Adjusted Capital Account” balance
shall mean such Member’s Capital Account balance increased by such Member’s obligation to restore a deficit balance in its Capital Account, including any deemed obligation pursuant to the penultimate sentences of Treasury Regulations
Sections 1.704-2(g)(1) and 1.704-2(i)(5), and decreased by the amounts described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4),
(5) or (6). In the event that one but not all of the Members would have a deficit balance in its Adjusted Capital Account as a consequence of an allocation of Net Loss pursuant to Section 8.1 in excess of the amount, if any,
permitted under the first sentence of this Section 8.2, the limitation set forth in this Section 8.2 shall be applied by allocating 100% of the remaining Net Loss to the other Members, pursuant to Section 8.1 (subject to the limit in
this Section 8.2), until the Adjusted Capital Account of each such other Member is zero. 

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

(b) Nonrecourse Deductions. Subject to Section 8.2, Nonrecourse Deductions shall be allocated to the Members pro rata in
accordance with their Percentage Interests. For purposes of this Agreement, the term “Nonrecourse Deductions” shall have the meaning set forth in Treasury Regulations
Section 1.704-2(b)(1). This Section 8.3(b) is intended to comply with Treasury Regulations Section 1.704-2(e) and shall be interpreted and applied in a manner consistent therewith. 

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

8.5 Code Section 704(b) Allocations. The allocations set forth in Sections 8.3(a), 8.3(b), 8.3(c) and 8.4 (the “Regulatory
Allocations”) are intended to comply with the requirements of Treasury Regulations Sections 1.704-1(b) and 1.704-2. Notwithstanding any other provisions of this
Article 8 (other than the Regulatory Allocations), if any Regulatory 

  
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Allocation is made, income, gain, loss and deduction shall thereafter be reallocated to the extent that such reallocation causes the net aggregate amount of allocations of income, gain, deduction
and loss to each Member to be equal to as closely as possible the net aggregate amount of such items that would have been allocated to each Member if the Regulatory Allocations had not occurred. This Section 8.5 shall be interpreted and applied
in such a manner and to such extent as is reasonably necessary to eliminate, as quickly as possible, distortions that would otherwise occur as a consequence of the Regulatory Allocations in the absence of this Section 8.5. 

8.6 Other Allocation Provisions. The Managing Member shall make all applicable elections, determinations and other decisions under the
Code and applicable Treasury Regulations (including, without limitation, the deductibility of a particular item of expenses and the positions to be taken on the Company’s tax return). 

8.7 Distributions of Nonrecourse Liability Proceeds. If the Company makes a distribution to any Member that may be allocable to an
increase in Company Minimum Gain pursuant to Treasury Regulations Section 1.704 2(h), then the Company shall, to the extent permitted by Treasury Regulations Section 1.704 2(h), minimize the amount of such distribution that is allocable to
an increase in Company Minimum Gain. 
 8.8 Taxable Year; Fiscal Year. The taxable year of the Company shall be the calendar year,
unless otherwise required by the Code or, subject to obtaining consent of the Internal Revenue Service, the Members determine otherwise by Member Consent. The fiscal year of the Company shall be the calendar year unless the Members determine
otherwise by Member Consent. 
 8.9 Recapture. Any recapture of depreciation, amortization and other cost recovery deductions shall
be allocated among the Members in proportion to the respective amounts of depreciation, amortization and cost recovery deductions allocated to each Member; provided, however, that this provision addresses only the character of the Net Income
allocated to a Member, and the recapture amount allocated to any Member shall not exceed the total Net Income allocated to such Member for the applicable period. 

ARTICLE 9. DISTRIBUTIONS 

9.1 Percentage Interests in Company. The percentage interest of the respective Members in the Company (“Percentage
Interest”) shall be: 
  

					
	 CNL:
	  	 	95	% 
	 MCR:
	  	 	5	% 

 The Percentage Interest of each Member is subject to the preferred and priority rights provided for herein and adjustment
pursuant to the terms of Section 4.5(d). 

  
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 9.2 Certain Definitions. The following terms shall have the following meanings when used
herein: 
 (a) “Operating Cash Flow” shall mean, for any period, the net income or net loss of the Company for such period,
as determined in accordance with GAAP, consistently applied, and adjusted as follows or as otherwise determined by Member Consent: 
 (i)
Additions. There shall be added to such net income or subtracted from such net loss, without duplication, the following items: (1) the amount charged for depreciation, amortization or any other deduction not involving a cash expenditure
during such period, (2) the amount of Capital Contributions to the Company during such period, (3) the proceeds of short-term borrowings of the Company in the ordinary course of business (including
Member Loans) received during such period, (4) interest received during such period on non-cash consideration received by the Company pursuant to a Major Capital Event, (5) any amount by which cash
reserves, which were previously established prior to the period in order to retain sufficient working capital in the Company or to properly reserve for actual or contingent obligations of the Company or improvements to the Project, have been reduced
during such period (other than through the payment of expenses), (6) the proceeds of business interruption insurance received during such period to the extent not otherwise included in determining net income or net loss, (7) cash
expenditures paid out of cash reserves during such period to the extent such expenditures were deducted in determining net income or net loss, (8) rental receipts, collection of receivables and other cash receipts received during such period
which were included (whether or not received) in determining net income or net loss in a prior period, (9) the costs and expenses incurred by the Company during such period in connection with a Major Capital Event to the extent deducted in the
determination of net income or net loss, except to the extent that net receipts of the Company from such Major Capital Event were insufficient to pay such costs and expenses, and (10) expenditures during such period for items deducted in
determining net income or net loss of the Company, to the extent paid from proceeds of a Major Capital Event. 
 (ii) Deductions.
There shall be subtracted from such net income or added to such net loss, without duplication, the following items: (1) the amount of payments made during such period on account of principal upon mortgage loans secured by Company property and
any other loans made to the Company, including Member Loans, in each case, to the extent not paid from the proceeds of a Major Capital Event, (2) funds disbursed during such period for capital expenditures, leasing commissions, tenant finish or
any other expenses not deducted in determining net income or net loss of the Company, except to the extent paid from proceeds of a Major Capital Event that were not included in the determination of net income or net loss, (3) any amount to
establish or increase cash reserves during such period pursuant to a determination by Member Consent that such reserve and the amount thereof is necessary or appropriate in order to retain sufficient working capital in the Company or to properly
reserve for other actual or contingent obligations of the Company or improvements to the Project, (4) any amount included in net income or net loss but not received in cash by the Company during such period, (5) the proceeds during such
period of a Major Capital Event to the extent included in determining net income or loss, (6) any amounts distributed during such period to the Members in payment of any guaranteed payment within the meaning of Section 707(c) of the Code,
and any amounts distributed to a Member during such period for services rendered other than in its capacity as a member of the Company within the meaning of Section 707(a) of the Code, to the extent not previously taken into account as a
deduction in determining net income or net loss, and (7) the costs and expenses incurred by the Company during such period in connection with a Major Capital Event to the extent that net receipts of the Company from such Major Capital Event
were insufficient to pay such costs and expenses and such costs and expenses were not deducted in determining net income or loss. 

  
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 (b) “Extraordinary Cash Flow” shall mean the cash receipts of the Company from a
Major Capital Event as reduced (to the extent not deducted in determining Operating Cash Flow (or deducted in determining Operating Cash Flow but added back pursuant to paragraph (a)(1) above)) by (i) the costs and expenses incurred by the
Company in connection with such Major Capital Event, including title, survey, appraisal, recording, escrow, transfer tax and similar costs, brokerage expense and attorneys, and other professional fees, (ii) funds deposited in reserves pursuant
to a determination by Member Consent that such reserves and the amount thereof are required or appropriate to provide for actual or contingent obligations of the Company or improvements to the Project, (iii) funds applied to pay or prepay any
indebtedness of the Company ((including interest and principal payable on Member Loans in accordance with their terms) in connection with such Major Capital Event and (iv) any portion of such cash receipts spent on reconstruction or repair. To
the extent that any amount received pursuant to a Major Capital Event has been set aside as a reserve pursuant to item (ii) above in this definition and the Members thereafter determine by Member Consent that all or a portion of such amount is
not required for such purposes, such amount shall be included in Extraordinary Cash Flow when the Members determine by Member Consent that it is no longer necessary or appropriate to retain such amount as a reserve. Any principal payments on non-cash consideration received pursuant to a Major Capital Event, including promissory notes or deferred payment obligations, shall be deemed to be included in Extraordinary Cash Flow when received in cash by the
Company. 
 (c) “Operating Return” shall mean a cumulative return, compounded monthly, equal to ten percent (10%) per
annum on each Member’s Unreturned Additional Capital and/or Unreturned Initial Capital, as the case may be. One-twelfth of the annual Operating Return payable for the current fiscal year of the Company shall accrue at the time of each monthly
distribution of Operating Cash Flow (or at the time that such distribution would be made if Operating Cash Flow were available for distribution). 

(d) “Unreturned Additional Capital” shall mean, for each Member, its Additional Capital, reduced by (i) any
distributions of Extraordinary Cash Flow made to such Member pursuant to Section 9.4(f) hereof and (ii) to the extent that such distributions exceed the amount of such Member’s Disproportionate Capital attributable to Unreturned
Initial Capital at the time, any distributions of Extraordinary Cash Flow made to such Member pursuant to Section 9.4(f) hereof. 
 (e)
“Unreturned Operating Return” shall mean, for each Member, its Operating Return computed with respect to Unreturned Initial Capital or Unreturned Additional Capital, as the case may be, reduced as follows: 

(i) in the case of the Operating Return computed with respect to Unreturned Initial Capital, by (A) distributions of Operating Return
made to such Member pursuant to Sections 9.3(a) and 9.4(a) hereof and (B) distributions of Extraordinary Cash Flow made to such Member pursuant to Sections 9.4(f) and 9.4(f) hereof to the extent that such distributions do not exceed the amount
of such Member’s Operating Return on Unreturned Initial Capital that is attributable to Disproportionate Capital; and 

  
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 (ii) in the case of the Operating Return computed with respect to Unreturned Additional Capital,
by (A) distributions of Operating Return pursuant to Sections 9.3(d) and 9.4(d) hereof and (B) to the extent that such distributions exceed the amount of such Member’s Operating Return on Unreturned Initial Capital that is
attributable to Disproportionate Capital, any distributions of Extraordinary Cash Flow made to such Member pursuant to Sections 9.4(f) and 9.4(f) hereof. 

(f) “Unreturned Initial Capital” shall mean, for each Member, its Initial Capital Contributions, reduced by (i) any
distributions of Extraordinary Cash Flow made to such Member pursuant to Section 9.4(e) hereof and (ii) distributions of Extraordinary Cash Flow made to such Member pursuant to Section 9.4(f) hereof to the extent that such
distributions do not exceed the amount of such Member’s Disproportionate Capital attributable to Unreturned Initial Capital at the time. 

(g) “Disproportionate Capital” shall mean, as to any Member at any time, the amount by which (i) the aggregate
Unreturned Additional Capital and Unreturned Initial Capital of the Member at the time exceeds (ii) the Member’s proportionate share (based on Percentage Interests) of the aggregate Unreturned Additional Capital and Unreturned Initial
Capital of all Members at the time. 
 9.3 Operating Cash Flow Distributions. Subject to the terms of Section 4.5(d) hereof, the
Company shall distribute Operating Cash Flow for each month during the term of the Company in which there is Operating Cash Flow (such distribution to be made monthly, within twenty-one (21) days after
the end of each such month) to the Members, as follows: 
 (a) First, if any Member has Disproportionate Capital, to the Members with
Disproportionate Capital, pari passu, in accordance with the respective outstanding balance of Disproportionate Capital of each Member, until each Member’s Disproportionate Capital has been reduced to zero; 

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

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

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

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

 Notwithstanding the foregoing, no Operating Cash Flow will be distributed by the Company before the Stabilization Date unless both Members concludes that
there is adequate sources of funds from which the Company may satisfy its obligations and liabilities without a call for Additional Capital. Any Operating Cash Flow accumulated pursuant to the preceding sentence may be used to satisfy any obligation
or liability of the Company. After the Stabilization Date or at such earlier time as both Members conclude that adequate funds are available to satisfy the Company’s obligations and liabilities, the Company will distribute in accordance with
this Section 9.3 all accumulated Operating Cash Flow that has not been expended for other Company purposes prior to such time. 
 9.4
Extraordinary Cash Flow Distributions. Subject to the terms of Section 4.5(d) hereof, the Company shall distribute Extraordinary Cash Flow (within five (5) Business Days following a Major Capital Event generating Extraordinary Cash
Flow) to the Members, as follows: 
 (a) First, if any Member has Disproportionate Capital, to the Members with Disproportionate Capital,
pari passu, in accordance with the respective outstanding balance of Disproportionate Capital of each Members, until each Member’s Disproportionate Capital has been reduced to zero; 

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

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

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

(e) Fifth, to the Members, pari passu, in proportion to their respective Unreturned Initial Capital, until each Member’s Unreturned
Initial Capital has been reduced to zero; 
 (f) Sixth, to the Members, pari passu, in proportion to their respective Unreturned Additional
Capital, until each Member’s Unreturned Additional Capital has been reduced to zero; 

  
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 (g) Seventh, eighty percent (80%) to the Members, pari passu, in proportion to their
respective Percentage Interests, and twenty percent (20%) to MCR, until CNL achieves a 15% IRR on its aggregate Capital Contributions; 

(h) Eighth, seventy-five percent (75%) to the Members, pari passu, in proportion to their respective Percentage Interests, and
twenty-five percent (25%) to MCR, until CNL achieves a 20% IRR on its aggregate Capital Contributions; and 
 (i) Thereafter, Forty
percent (40%) to the Members, pari passu, in proportion to their respective Percentage Interests and sixty percent (60%) to MCR. 

9.5 Loss of Promoted Interest. Notwithstanding the provisions of Section 9.4, MCR shall no longer have the right to distributions
with respect to its so-called “promoted interest” (i.e. the portion of distributions allocated specifically to MCR, as opposed to all Members in accordance with their Percentage Interests), as such distributions are set forth in
Sections 9.4(g), 9.4(h) and 9.4(i), in the event that MCR is terminated as developer pursuant to the terms of the Development Agreement prior to Completion of the Project. Upon the loss of MCR’s promoted interests set forth in Sections 9.4(g),
9.4(h) and 9.4(i), such Sections 9. 9.4(g), 9.4(h) and 9.4(i) shall be deemed revised to provide that all distributions thereunder shall be made to the Members (including MCR) pro rata in accordance with their Percentage Interests, and MCR shall no
longer be entitled to any distributions under Section 9.4(g), 9.4(h) and 9.4(i) in excess of a distribution based on its Percentage Interest. Without limiting the foregoing, if CNL terminates and removes MCR as the Operating Member in
accordance with Section 6.7 other than as a result of MCR’s termination as developer pursuant to the terms of the Development Agreement, such termination and removal shall not cause MCR to lose the promoted interests set forth in Sections
9.4(g), 9.4(h) and 9.4(i); provided, however, that such promoted interest shall remain subject to dilution as provided in Section 4.5(d). 

9.6 No Distributions In Kind. A Member may require that all distributions be made in cash, and no Member shall be obligated to accept
any distribution in kind from the Company. 
 ARTICLE 10. ASSIGNMENT AND OFFER TO PURCHASE 

10.1 Transfers. Except as expressly provided in this Article 10, no Member, or any assignee or successor in interest of a Member, may
sell, assign, give, pledge, hypothecate, encumber or otherwise transfer (each a “Transfer,” and including, where the context so requires, the correlative noun form of such terms), or permit the Transfer of all or any portion of its
Membership Interest in the Company, or in any Member Loans made by it, whether by operation of law or otherwise. Any purported Transfer of all or any portion of a Member’s Membership Interest in the Company or any Member Loans made by it not
otherwise expressly permitted by this Article 10 shall be null and void and of no force or effect whatsoever. Subject to compliance with Sections 10.2 and 10.3, a Transfer by CNL of all or a portion of its Entire Interest to an Affiliate of CNL
Financial Group, LLC (“CFG”) from time to time, or in connection with any corporate merger, acquisition or other combination CNL Growth Properties, Inc. (“CGP”) or the sale or transfer of all or substantially all of
the assets of CGP, shall be permitted under this Article 10, and CNL shall not be required to obtain the consent of any other Member nor offer all or any portion of its Entire Interest to be so Transferred to any other Member. Subject to 

  
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compliance with Sections 10.2 and 10.3, no Transfers of any direct or indirect interest in CNL, or of CNL’s interest in the Company, among funds sponsored or advised by CFG or its Affiliates
shall be restricted in any way. Subject to compliance with Sections 10.2 and 10.3, a Transfer by MCR of all or a portion of its Entire Interest to Mill Creek Residential Trust LLC (“Mill Creek”) or an Affiliate of Mill Creek from
time to time, or in connection with any corporate merger, acquisition or other combination of Mill Creek or the sale or transfer of all or substantially all of its assets, shall be permitted under this Article 10, and MCR shall not be required to
obtain the consent of any other Member nor offer all or any portion of its Entire Interest to be so Transferred to any other Member. Except as otherwise expressly provided herein, no permitted assignment shall terminate the Company. 

10.2 Assumption by Assignee. Any assignment of all or any portion of an Entire Interest permitted under this Article 10 shall be in
writing, and shall be an assignment and transfer of all of the assignor’s rights and obligations hereunder with respect to the portion of the Entire Interest transferred, and the assignee shall expressly agree in writing to be bound by all of
the terms of this Agreement and assume and agree to perform all of the assignor’s agreements and obligations under this Agreement existing or arising at the time of and subsequent to such assignment to the extent related to the Entire Interest
so transferred. Upon any such permitted assignment of all or any portion of an Entire Interest, and after such assumption, the assignor shall be relieved of its agreements and obligations hereunder performable after such assignment with respect to
the Entire Interest transferred and, in the case of a transfer of a 100% of a Member’s then existing Membership Interest in the Company, the assignee shall become a Member in place of the assignor. An executed counterpart of each such
assignment of all or any portion of an Entire Interest and assumption of a Member’s obligations shall be delivered to each Member and to the Company. 

10.3 Miscellaneous Provisions Related to Transfers. 

(a) The assignee or assignor of an Entire Interest or part thereof shall pay all expenses incurred by the Company and the other Member in
connection with the Transfer of the Entire Interest or part thereof and in admitting the assignee as a Member, if applicable. 
 (b) As a
condition to any assignment of all or any portion of an Entire Interest, the transferor shall obtain such consents as may be required from third parties, if any, or waivers thereof. The other Member shall use reasonable efforts to cooperate with the
transferor in obtaining such consents or waivers, so long as the transferor reimburses them for costs that they incur in so doing. 
 (c) No
Member, or any assignee or successor in interest of a Member, may Transfer an Entire Interest or part thereof if, under the terms of any contract binding on the Company or on the Property or the Project, such proposed Transfer would result in a
breach or default by the Company or would give any other person a termination right in respect of the contract or a right of acceleration in respect of the time for payment or performance of indebtedness or obligations of the Company, unless the
resulting breaches, defaults, terminations and accelerations (assuming that all rights of termination and acceleration were exercised) in the aggregate are not material to the business, affairs, prospects, operations or results of operations of the
Company or the proposed transferor would take such action, by cure or otherwise, 

  
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including by payment of any Company Financing, as is necessary to cause such breaches, defaults, terminations or accelerations to be immaterial. For such purposes, “contract” includes
bonds, promissory notes, other evidences of indebtedness, loan agreements, loan commitments, mortgages, deeds of trust, other security instruments, leases, reciprocal operating agreements, restrictive covenant, easements and like instruments. 

(d) No Member, or any assignee or successor in interest of a Member, may Transfer an Entire Interest or part thereof unless the sale,
assignment, gift, pledge, hypothecation, encumbrance or transfer is made pursuant to an effective registration statement or exemption from registration under the Securities Act of 1933, as amended, and all applicable state securities laws. The
Company will have no obligation to effect the registration of an Entire Interest or part thereof under the Securities Act of 1933, as amended, or any state securities laws or, if the Company or an Entire Interest or part thereof is registered under
any securities law (including the Securities Act of 1933, as amended, or the Securities and Exchange Act of 1934, as amended), to continue such registration. Each transferor of an Entire Interest or part thereof shall indemnify, defend and hold
harmless the Company, the other Member and the Affiliates of the other Member against any and all claims, suits and other proceedings, losses, costs, damages, expenses and liability (including fees and expenses of attorneys and other professional
advisors and court costs) incurred by any of them by reason of any violation of securities laws (whether by the transferor, the Company or another person) that occurs in connection with any Transfer by the transferor of an Entire Interest or part
thereof. 
 (e) No Member, or any assignee or successor in interest of a Member, may Transfer an Entire Interest or part thereof if
(i) the proposed Transfer would result in termination of the Company for federal income tax purposes under Section 708 of the Code, (ii) the proposed Transfer would cause the Company to become subject to the Investment Company Act of
1940, as amended, or require the Company to file any report under the Securities and Exchange Act of 1934, as amended, (iii) the proposed Transfer would cause the Company to be treated for federal income tax purposes as an entity other than a
partnership. 
 (f) None of the Company or the Members will be required to recognize any Transfer of an Entire Interest or part thereof
until all Members have received written notice of such proposed Transfer from the transferor. None of the Company or the Members will be required to recognize any Transfer of an Entire Interest or part thereof in violation of this Article 10. 

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

  
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 10.5 Upstream Transfers. 

(a) Without limiting the terms of Section 10.1, but subject to Section 10.5(c), any Member that is an incorporated or unincorporated
business entity, and any permitted assignee of all or any portion of an Entire Interest that is an incorporated or unincorporated business entity, shall not permit, without prior Member Consent, which consent may be withheld in the sole and
uncontrolled discretion of any Member, the admission of any new equity or other beneficial interest holder in such entity, or the issuance to any person or entity, who is not now an equity or other beneficial interest holder in such entity or an
Affiliate of such an equity interest holder, of any kind of ownership interest whatsoever in such entity. 
 (b) Without limiting the terms
of Section 10.1, but subject to Section 10.5(c), any Member that is an incorporated or unincorporated business entity, and any permitted assignee of all or any portion of an Entire Interest that is an incorporated or unincorporated
business entity, shall not permit, without prior Member Consent, which consent may be withheld in the sole and uncontrolled discretion of any Member, the issuance or Transfer of any ownership interest in such entity or in the holder of any direct or
indirect equity or other beneficial interest in such entity, or any instruments convertible into any ownership interest in such entity or in the holder of any direct or indirect equity or other beneficial interest in such entity, or any right to
vote any ownership interest in such entity or in the holder of any direct or indirect equity or other beneficial interest in such entity. 

(c) Sections 10.5(a) and 10.5(b) shall not prohibit (i) any Transfer of any equity or other beneficial interest, to (A) an Affiliate
of CFG or any entity that is a participant in any corporate merger, acquisition or other combination in which CFG or CGP is a participant or to which CFG or CGP sells or transfers all or substantially all of its assets, or (B) Mill Creek or an
Affiliate of Mill Creek or any entity that is a participant in any corporate merger, acquisition or other combination in which Mill Creek is a participant or to which Mill Creek sells or transfers all or substantially all of its assets,
(ii) any Transfer of any direct or indirect equity or other beneficial interest in Global Growth, LP or CGP or issuance of any equity or other beneficial interest in Global Growth, LP or CGP, (iii) any Transfer of any direct or indirect
equity or other beneficial interest in Mill Creek or issuance of any equity or other beneficial interest in Mill Creek or (iv) so long as after such transaction, Mill Creek continues to own, directly or indirectly, more than 50% of the equity
or other beneficial interest in such subsidiary, any Transfer of direct or indirect equity or other beneficial interest in any direct or indirect subsidiary of Mill Creek (other than MCR) or issuance of any equity or other beneficial interest in any
direct or indirect subsidiary of Mill Creek (other than MCR). 
 10.6 Right to Cause Sale of Project. 

(a) CNL may, at any time after the date that is twenty-four (24) months after Completion of the Project, cause the sale by the Company of
the Project, subject to the terms of this Section 10.6. MCR shall cooperate with any such sale. 
 (b) Prior to the exercise of its
right as set forth in Section 10.6(a), CNL must give notice (the “Sale Notice”) to MCR (i) of CNL’s intention to pursue the sale of the Project at a specified cash price (the “Stated Price”) and all
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contemplated sale and (ii) offering to sell its Entire Interest to MCR at a specified price equal to the amount (the “CNL Price”) that would be distributable or payable to
CNL under Section 4.5(d) and Section 9.4 and in payment of all Member Loans to the Company from CNL, if the Project were sold for an amount equal to the Stated Price, all debts, liabilities and expenses were paid and the remaining amounts
were paid out by the Company. CNL shall have the right to obtain, at the Company’s expense, a tax opinion from recognized tax counsel as to the federal income tax consequences of any such proposed sale. 

(c) If CNL has forwarded a copy of the Sale Notice to MCR, MCR shall, within forty-five (45) days after receiving a copy of the Sale
Notice, elect one of the following options: 
 (i) notify CNL in writing that MCR has no objection to CNL marketing the Project, in which
case CNL may cause the Company to market and sell the Project, provided that (A) the price obtained for the Project is at least the Stated Price and the sale complies with all other material terms and conditions stated in the Sale Notice,
(B) the contract to acquire the Project is executed within four (4) months following CNL’s receipt of MCR’s response under this item (i) or any deemed election not to purchase CNL’s Entire Interest pursuant to item
(ii) below and (C) the outside closing date under such contract is no later than ninety (90) days after the date of execution of such contract; or 

(ii) notify CNL in writing of MCR’s election to purchase CNL’s Entire Interest for the CNL Price. Such notification shall be
accompanied by an escrow deposit with a nationally recognized title insurance company in an amount equal to two percent (2%) of the CNL Price (such amount, together with any interest earned thereon, being hereinafter called the “CNL
Sale Deposit”), which amount shall be non-refundable, unless the purchase and sale pursuant to this Section 10.6(c)(ii) does not close due to the default of CNL or an event described in Section 10.8(e). Notice of MCR’s
election to purchase shall be addressed to CNL and shall set forth the place of closing which, unless the Members shall otherwise agree, shall be at the office of the Company, during usual business hours on a date specified by MCR within sixty
(60) days after the date of the giving of the applicable notice of election to CNL. The CNL Sale Deposit shall be credited against the CNL Price. If the closing shall fail to occur because of a default by MCR, CNL shall have the right to elect,
as its sole and exclusive remedy, (i) to retain the CNL Sale Deposit as liquidated damages, it being agreed that in such instance CNL’s actual damages would be difficult, if not impossible, to ascertain or (ii) to exercise its rights
under Section 10.8. If MCR shall not have given notice to CNL of its election to purchase CNL’s Entire Interest within the forty-five (45) day notice period, MCR shall be deemed to have exercised the option provided in subsection
(i) above. 
 (d) In connection with the sale of CNL’s Entire Interest to MCR pursuant to this Section 10.6, the provisions
of Section 10.8 shall be applicable to such sale. Each Member shall pay a portion of any transfer or similar taxes due in connection with the sale of an Entire Interest under this Section 10.6 in proportion to their respective Percentage
Interest. 
 (e) If a proposed sale of the Project is not consummated in accordance with the terms of this Section 10.6, all the
provisions of this Section 10.6 shall apply to any subsequent proposed sale of the Project. 

  
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 10.7 Buy-Sell. 

(a) Any time after the date that is twenty-four (24) months after Completion of the Project, either MCR or CNL (the initiator being the
“Proposer”) may make an offer to purchase the other Member’s Entire Interest or to sell its Entire Interest to the other Member for such purchase price (which shall be payable in cash at the closing of any such transaction) and
on such terms as such Proposer may propose in a notice (the “Sale Proposal”) to the other Member (the “Responding Member”). The Sale Proposal shall include a statement as to the total purchase price for the Project
(“Property Value”) that formed the basis for the stated purchase price for each Entire Interest, which purchase price shall be calculated from the Property Value on the same basis as provided in Section 10.8(a). 

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

(i) that the Responding Member is agreeable to the sale of its Entire Interest to the Proposer in accordance with the terms set forth in the
Sale Proposal; or 
 (ii) that the Responding Member elects to purchase the Entire Interest of the Proposer at the Reply Price (as defined
below) determined in accordance with Section 10.8(a) and otherwise in accordance with the terms set forth in the Sale Proposal, as modified in accordance with Section 10.8(a). 

Such notification shall be in addressed to the Proposer. Failure of the Responding Member to respond to the Sale Proposal within the forty-five
(45) period set forth in this Section 10.7(b) shall be deemed an election by the Responding Member to sell its Entire Interest under Section 10.7(b)(i). 

(c) Notification of election by the Responding Member shall be delivered to the Proposer. Upon delivery of such notification, the Member
obligated to purchase shall, within five (5) days, make an escrow deposit with a nationally recognized title insurance company in an amount equal to one percent (1%) of the Property Value (such amount, together with any interest earned
thereon, being hereinafter called the “Buy-Sell Deposit”), which amount shall be non-refundable unless the purchase and sale pursuant to this Section 10.7 does not close due to the
default of the Member obligated to purchase or an event described in Section 10.8(h). 
 (d) Unless otherwise agreed by the Members,
closing shall be at the office of the Company, during usual business hours on a date specified by the Member obligated to purchase within sixty (60) days after the date of the giving of the notice of election under Section 10.7(b) or, if
no such notice is given, expiration of the forty-five (45) period referenced in Section 10.7(b). The Buy-Sell Deposit shall be credited against the total purchase price for the Entire Interest being
purchased pursuant to this Section 10.7; provided, however, that, if the closing shall fail to occur because of a default by the Member obligated to purchase, subject to the provisions of Section 10.7(b) above concerning
refundability of the deposit, the Member obligated to sell shall have the right to retain the Buy-Sell Deposit as liquidated damages, it being agreed that in such instance the actual damages of the Member
obligated to sell would be difficult, if not impossible, to ascertain. The provisions of Section 10.8 shall be applicable to any sale in accordance with this Section 10.7. Each Member shall pay a portion of any transfer or similar taxes
due in connection with the sale of an Entire Interest under this Section 10.7 in proportion to their respective Percentage Interest. 

  
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 (e) If the Responding Member elects to purchase the Entire Interest of the Proposer and if the
Responding Member subsequently defaults in its obligation to buy the Entire Interest of the Proposer when and as required by this Section 10.7, then (i) the Proposer may retain the Buy-Sell Deposit as liquidated damages (as provided in
Section 10.7(d) above), it being agreed that in such instance the Proposer’s actual damages would be difficult, if not impossible, to ascertain, and (ii) for a period of up to seven months after such default, the Proposer may proceed
to market the Project for sale on behalf of the Company. Marketing of the Project shall be conducted in a commercially reasonable manner (which shall include engaging a third party broker) on the terms and conditions set forth in the Sale Proposal,
to the extent applicable to a sale to a third party purchaser, and sell the Project for a price not less than ninety-five percent (95%) of the Property Value, payable only in cash, and on such terms as were set forth in the Sale Proposal. The
Proposer shall obtain the Responding Member’s prior consent, which consent shall not be unreasonably withheld to the selection of a third party purchaser to purchase the Project; provided, however, that if the Responding Member unreasonably
withholds its consent to the selection of the third party purchaser, then the Proposer shall have the right to purchase the Responding Member’s Entire Interest as if Responding Member had elected to sell its Entire Interest to the Proposer
under 10.7(b)(i), with the closing to occur on a date designated by the Proposer not later than sixty (60) days after delivery of the notice of the Proposer’s election to buy. If the foregoing conditions are not met, and the buy-sell
process of this Section 10.7 is again initiated by a Member, such Member shall be required to comply with the provisions of this Section 10.7. 

(f) Notwithstanding anything to the contrary stated herein, if CNL has delivered a Sale Notice under Section 10.6, no Member shall have
the right to deliver a Sale Proposal under this Section 10.7 unless and until a proposed sale of the Project is not consummated in accordance with the terms of Section 10.6. 

10.8 Provisions Generally Applicable to Sales. The following provisions shall be applicable to sales under Sections 10.6, 10.7 and/or
13.2, and, with respect to 10.8(c), Section 4.5(a), as indicated: 
 (a) If under the provisions of Section 10.7, either Party (the
“Offering Party”) makes an offer the (“10.7 Offer”) to the other party (the “Other Party”) to purchase its Entire Interest, the purchase price (the “Reply Price”) payable by the
Other Party to the Offering Party, if the Other Party exercise its election to purchase the Entire Interest of the Offering Party, shall be determined as follows: 

(i) In the event this Section 10.8(a) is triggered in the context of Section 10.7, there shall be determined the
“Value” of the Company, after payment of debts, liabilities and expenses, based upon the amount of the 10.7 Offer. The Value shall equal the total amount which would have been available for distribution and payment by the Company to
all of the Members after payment of debts, liabilities and expenses under Section 13.5 as if the Company was being liquidated and the Project sold for the Property Value set forth in the 10.7 Offer. 

  
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 (ii) After determining the Value, there shall then be determined the amount which would have
been distributable and payable to the Offering Party under Sections 4.5(d) and 9.4 and in payment of Member Loans made by the selling Member if the Value had been paid out by the Company to the Members. Such amount which would have been
distributable and/or payable to the Offering Party equals the Reply Price. 
 (b) For purposes of any sale of an Entire Interest of a
Member, the purchase price associated with such sale shall be adjusted to reflect (i) assets and liabilities of the Company reflected in the Company’s financial statements and not otherwise taken into account in calculation of the purchase
price for the Entire Interest and (ii) assets and liabilities of the Company known to either Member and not reflected in the Company’s financial statements available to all Members at the time of closing for transfer of the Entire
Interest. The purchase price, as so adjusted, shall be determined ten (10) Business Days prior to closing and shall be subject to such post-closing adjustments as the circumstances may require. The
purchase price, as so adjusted, shall be paid, at the selling Member’s option, in cash, by certified check drawn to the order of the selling Member, or by wire transfer of immediately available funds to the selling Member’s account. All
prorations of real estate taxes, rents and other items to be prorated shall be made as of the date of closing of the sale of the Entire Interest. All title insurance policies, surveys and recording fees shall be paid for by the party usually charged
with such payment under local custom. 
 (c) On purchase of an Entire Interest, the purchasing Member shall, at its option, either
(i) deliver a release of the selling Member and each of its Affiliates (including if MCR is the selling Member, the MCR Guarantor) from all liability, direct or contingent, by all holders of all Company debts, obligations or claims against the
Company for which the Member or any of its Affiliates is or may be personally liable, except for any debts, obligations or claims which are fully insured by public liability insurer(s) acceptable to the selling Member, or (ii) cause all such
debts, obligations or claims to be paid in full at the closing. On purchase of an Entire Interest, including for purposes of this sentence, a purchase of an Entire Interest pursuant to Section 4.5(a), the purchasing Member must agree to
indemnify, defend and hold harmless the selling Member and its Affiliates against any claim, suit, action or other proceeding and all related loss, damages, judgments, settlements, obligations, liabilities, debts, damages and costs and expenses
(including fees and disbursements of attorneys and other professionals and court costs) incurred by the selling Member or any of its Affiliates on account of liabilities or obligations of the Company incurred following the closing (except to the
extent related to or arising from defaults by the seller Member or its Affiliates under this Agreement, the Construction Contract, the Development Agreement, the Management Agreement, or other agreements between the Company and such Member or its
Affiliates) and agreements relating to any Company Financing. On purchase of an Entire Interest, including for the purposes of this sentence, a purchase pursuant to Section 4.5(a), the selling Member must agree to indemnify, defend and hold
harmless the purchasing Member and its Affiliates and the Company against any claim, suit, action or other proceeding and all related loss, damages, judgments, settlements, obligations, liabilities, debts, damages and costs and expenses (including
fees and disbursements of attorneys and other professionals and court costs) incurred by the purchasing Member or any 

  
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of its Affiliates or the Company on account of liabilities or obligations of the Company incurred prior to the closing of such purchase to the extent related to or arising from defaults by the
seller Member or its Affiliates under this Agreement, the Construction Contract, the Development Agreement, the Management Agreement, or other agreements between the Company and such Member or its Affiliates. 

(d) The Company shall provide the Members such tax information and reporting as may be required by the Members in connection with such sale
within a reasonable period following such sale. 
 (e) All Members (including the selling Members) shall be entitled to any distributions of
Operating Cash Flow from the Company accrued through the closing of the sale of an Entire Interest. The right of a selling Member to receive Operating Cash Flow (to the extent it is not distributed prior to transfer of its Entire Interest) will
survive transfer of the Entire Interest as a debt of the Company owed to the selling Member and payable as soon as the amount due can be calculated. 

(f) If the Project is damaged by fire or other casualty, or if any entity possessing the right of eminent domain shall give notice of an
intention to take or acquire a substantial part of the Project, and such damage occurs, or such notice is given, between the date a Sale Notice, a Sale Proposal or an Appraisal Notice is given and the closing date of the purchase of an Entire
Interest, the following shall apply: 
 (i) If the Project is damaged by an insured casualty not to exceed $500,000)(or an uninsured
casualty not resulting in damage in excess of $50,000) or if the taking or acquisition shall not result in a substantial (in excess of two percent (2%)) reduction in the income producing capacity of the Project, then the purchasing Member shall
be required to complete the transaction. 
 (ii) If the Project is damaged by an uninsured casualty resulting in damage in excess of
$50,000, or if the taking or acquisition shall result in a substantial (in excess of two percent (2%)) reduction in the income producing capacity of the Project, or if there is an insured casualty in excess of $500,000, then the purchasing
Member shall have the option (to be exercised within thirty (30) days from the date of the occurrence of the casualty or receipt of the notice of condemnation) to cancel the purchase and, in the case of a transaction under Section 10.6 or
Section 10.7, have the CNL Sale Deposit or the Buy-Sell Deposit, as applicable, returned. 
 In the event that the purchase is canceled by the
purchasing Member pursuant to the above provisions, the terms of this Agreement shall remain in effect and continue to be binding on the parties. 

(g) At the closing of the sale of the Entire Interest of a Member, the selling Member shall execute an assignment of its Membership Interest
in the Company and its interest in all Member Loans and Failing Member Loans made by it, free and clear of all liens, encumbrances and adverse claims (except those created by this Agreement and liens in connection with the Company Financing), which
assignment shall be in form and substance reasonably satisfactory to the purchasing Member, and such other instruments as the purchasing 

  
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Member shall reasonably require to assign the Entire Interest of the selling Member to such person or entity as the purchasing Member may designate. For any sale or transfer under this Article 10
or Section 13.2, the purchasing Member may designate the assignee of the Entire Interest, which assignee need not be an Affiliate of the purchasing Member, subject to the other Member’s reasonable consent. 

(h) It is the intent of the parties to this Agreement that the requirements or obligations, if any, of one Member to sell its Entire Interest
to another Member shall be enforceable by an action for specific performance of a contract relating to the purchase of real property or an interest therein. In the event that the selling Member shall have created or suffered any unauthorized liens,
encumbrances or other adverse interests against either the Project or the selling Member’s Entire Interest, the purchasing Member shall be entitled either to an action for specific performance to compel the selling Member to have such defects
removed, in which case the closing shall be adjourned for such purpose, or, at the purchasing Member’s option, to an appropriate offset against the purchase price. In addition, the purchasing Member shall be entitled to recover all reasonable
costs associated with enforcement under this Section 10.8(h). 
 (i) In the case of a transaction under Section 10.6 or
Section 10.7, the purchase price of an Entire Interest will be decreased by all distributions (except distributions of Operating Cash Flow) made on or after the date of the Sale Notice or Sale Proposal, as applicable, to the extent allocable to
the selling Member’s Membership Interest, and increased by all Capital Contributions made by the selling Member on or after the date of the Sale Notice or Sale Proposal, as applicable. 

(j) Each Member will be responsible for all legal, accounting and similar fees incurred by it in connection with any transfer of an Entire
Interest pursuant to Section 10.6, 10.7 or 13.2. 
 (k) Failing Member Loans will be taken into account in setting the CNL Price, the
Reply Price or the price due under Section 13.2, with the consequence that the amount payable to the selling Member will be increased (up to the amount of the distributions that would be paid the other Member in the assumed liquidation
calculation) if the selling Member is the holder of any Failing Member Loan or decreased (up to the amount of distributions in the assumed liquidation redirected toward repayment of any Failing Member Loan) if the selling Member is the obligor on
any Failing Member Loan. 
 10.9 Compliance with ERISA. 

(a) Not less than five (5) Business Days before each transfer of a direct interest in MCR, MCR shall cause the proposed transferee to
deliver to CNL a certification in substantially the form of Exhibit E attached hereto and made a part hereof. 
 (b) On the closing
or consummation of a Member Loan or Failing Member Loan, (i) MCR shall deliver to CNL a certification in substantially the form of Exhibit E and (ii) CNL shall deliver to MCR a certification in substantially the form of Exhibit
F. 

  
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 (c) If there is a proposed sale of the Project pursuant to Section 10.6 and a Member buys
the Project, (i) MCR shall deliver to CNL a certification in substantially the form of Exhibit E and (ii) CNL shall deliver to MCR a certification in substantially the form of Exhibit F. 

(d) If there is a proposed sale of an Entire Interest pursuant to Section 10.6, 10.7 or 13.2, (i) MCR shall deliver to CNL a
certification in substantially the form of Exhibit E and (ii) CNL shall deliver to MCR a certification in substantially the form of Exhibit F. 

(e) Anything else in this Agreement contained to the contrary notwithstanding, CNL may, following the receipt by it of a certification by MCR
or a proposed transferee provided for in this Section 10.9, to notify MCR that it has determined that the proposed transaction would result in a transfer of a Membership Interest in the Company to a person other than an Acceptable Person and/or
in a Plan Violation. If CNL notifies MCR that any such proposed transaction would constitute a Plan Violation, then the proposed transaction shall not be consummated and any attempt to do so shall be void. If CNL notifies MCR that it has determined
that no Plan Violation will result from the proposed transaction, or if CNL fails to respond within five (5) Business Days, then the proposed transaction may be consummated; provided, however, that such transaction must be
consummated no later than (i) the twentieth (20th) day after the delivery to MCR by CNL of a notice that it has determined the proposed transaction will not result in a Plan Violation or
the expiration of such five (5) Business Days with no response from CNL or (ii) if Section 10.6 is applicable and provides for a closing that is later than such twenty (20) day period, the latest day that such Section 10.6
permits such closing to occur. 
 (f) MCR shall indemnify CNL and defend and hold CNL harmless from and against all loss, cost, damage and
expense that CNL may incur, directly or indirectly, as a result of a (i) default by MCR under this Section 10.9, (ii) a breach of a representation or warranty given by MCR under this Section 10.9, or (iii) any material
misstatement or omission in a certification by MCR or proposed transferee of MCR which is given to CNL pursuant to this Section 10.9. The liability, excise taxes, penalties, interest, loss, cost, damage and expense will include attorney’s
fees and costs incurred in the investigation, defense and settlement of claims and losses incurred in (i) correcting any Plan Violation, (ii) the sale of a prohibited Company interest, or (ii) obtaining any individual exemption for a
Plan Violation that may be required in CNL’s sole discretion. This indemnity shall survive (x) the sale of the Project or MCR’s Entire Interest and (y) termination of this Agreement. 

(g) The Company will not enter into any agreement or transaction that CNL determines, in its reasonable judgment, would result in a Plan
Violation. CNL shall deliver a written notice of each such determination to MCR together with an explanation of the reasons for the determination. 

(h) Upon any Member’s reasonable request, the Members agree to cooperate with each other’s efforts to discover and correct Plan
Violations. 

  
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 ARTICLE 11. DISSOLUTION OR BANKRUPTCY OF A MEMBER 

11.1 Dissolution or Merger. If MCR shall be dissolved, or merged with or consolidated into another corporation or other entity, or if
all or substantially all of its assets shall be sold or transferred, then unless such dissolution, merger, consolidation, sale or transfer is expressly permitted under Article 10, such dissolution, merger, consolidation, sale or transfer shall, at
CNL’s election, be a dissolution of the Company, and CNL shall be the Liquidating Member in the dissolution of the Company. If CNL shall be dissolved, or merged with or consolidated into another corporation or other entity, or if all or
substantially all of its assets shall be sold or transferred, then unless such dissolution, merger, consolidation, sale or transfer is expressly permitted under Article 10, such dissolution, merger, consolidation, sale or transfer shall, at
MCR’s election, be a dissolution of the Company, and MCR shall be the Liquidating Member in the dissolution of the Company. 
 11.2
Bankruptcy, etc. In the event: 
 (a) any Member shall file a voluntary petition in bankruptcy or shall be adjudicated a bankrupt or
seek any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief for itself under the present or any future federal bankruptcy code or any other present or future applicable federal, state, or other
statute or law relative to bankruptcy, insolvency, or other relief for debtors, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver, conservator or liquidator of said Member or its Membership Interest in the Company
(the term “acquiesce” includes but is not limited to the failure to file a petition or motion to vacate or discharge any order, judgment or decree providing for such appointment within sixty (60) days after the appointment); or

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

(c) a court of competent jurisdiction shall enter an order, judgment or decree approving a petition filed against any Member seeking any
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the present or any future federal bankruptcy code or any other present or future applicable federal, state or other statute or law relating to
bankruptcy, insolvency, or other relief for debtors, and said Member shall acquiesce in the entry for such order, judgment or decree (the term “acquiesce” includes but is not limited to the failure to file a petition or motion to
vacate or discharge such order, judgment or decree within sixty (60) days after the entry of the order, judgment or decree) or such order, judgment or decree shall remain unvacated and unstayed for an aggregate of ninety (90) days (whether
or not consecutive) from the date of entry thereof, or any trustee, receiver, conservator or liquidator of said Member or of all or any substantial part of said Member’s property or its Membership Interest in the Company shall be appointed
without the consent or acquiescence of said Member and such appointment shall remain unvacated and unstayed for an aggregate of ninety (90) days (whether or not consecutive); or 

(d) any Member shall give notice to any governmental body of insolvency, or pending insolvency, or suspension or pending suspension of
operations; or 

  
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 (e) any Member shall make an assignment for the benefit of creditors or take any other similar
action for the protection or benefit of creditors; 
 then such event shall, at the election of any other Member, cause the dissolution of the Company and
such electing Member shall be the Liquidating Member. 
 11.3 Reconstitution. Notwithstanding the provisions of Section 11.1 and
11.2, the remaining Member may, within ninety (90) days of any event described in this Article 11, elect to continue the Company. An appropriate amendment to or cancellation of the Certificate of Formation and all other filings required by law
shall be made in accordance with any action taken pursuant to this Section 11.3. 
 ARTICLE 12. CROSS-DEFAULT 

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

ARTICLE 13. DISSOLUTION 

13.1 Winding Up by Members. Upon dissolution of the Company by expiration of the term hereof, by operation of law, by any provision of
this Agreement or by agreement between the Members, the Company’s business shall be wound up and all its assets distributed in liquidation. In such dissolution, except as otherwise expressly provided in Section 13.2 or Article 11, the
Members shall be co-liquidating Members and shall act by Member Consent. In such event the Members shall have rights acting by Member Consent to wind up the Company and shall proceed to cause the
Company’s property to be sold and to distribute the proceeds of sale as provided in Section 13.5. 
 13.2 Winding Up by
Liquidating Member. 
 (a) In a dissolution pursuant to either Section 4.5(d)(iii) or Article 11, the Liquidating Member shall be
as therein provided and such Liquidating Member shall have the right to: 
 (i) Wind up the Company and cause the Company’s assets to
be sold and the proceeds of sale distributed as provided in Section 13.5; or 
 (ii) Notwithstanding anything to the contrary
contained in this Agreement, cause the assets of the Company to be appraised in accordance with Section 13.2(c) and, at its option, purchase the Entire Interest of the other Member in accordance with Section 13.2(b). 

  
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 (b) The Liquidating Member, within thirty (30) days after the commencement of the
dissolution of the Company may give notice (the “Appraisal Notice”) to the other Member electing to have the Fair Market Value of the Company’s assets determined by appraisal pursuant to Section 13.2(c). The fees and
expenses of such appraisers shall be borne by the Company. The Liquidating Member shall have the option, by notice given to the other Member within thirty (30) days after receipt of the determination of Fair Market Value pursuant to
Section 13.2(c), to purchase the other Member’s Entire Interest at a price equal to the amount which would have been distributable and payable to the other Member under Section 4.5(d) and Section 9.4 and in payment of all Member
Loans to the Company made by the other Member if all of the Company’s assets had been sold for an amount equal to such Fair Market Value, all debts, liabilities and expenses of the Company were paid and the Company were liquidated. If after the
receipt of the determination of Fair Market Value pursuant to Section 13.2(c), the Liquidating Member elects not to exercise the option to purchase the other Member’s Entire Interest pursuant to this Section 13.2(b), then the
Liquidating Member shall have all of its rights under this Agreement as if the Appraisal Notice had not been given. All of the provisions of Section 10.8 shall apply to a purchase under this Section 13.2(b). 

(c) If the fair market value (the “Fair Market Value”) of the assets of the Company is required for purposes of
Section 13.2(b), such Fair Market Value, if not otherwise agreed upon by the Members, shall be determined as set forth in this Section 13.2(c). All appraisers referred to herein shall be real estate appraisers which are members of the
Chapter of the American Institute of Real Estate Appraisers for the state in which the Property is located for at least seven (7) years. As used herein, Fair Market Value is the fair market value of all the assets of the Company. Each of CNL
and MCR shall select one (1) appraiser. In the event that either party fails to select an appraiser within thirty (30) days after notice of the exercise of an option or election requiring a valuation, then such party’s appraiser shall
be selected by the other Member. After the selection, each appraiser shall independently determine the gross fair market value of the assets of the Company and, if they agree on the Fair Market Value, such decision shall be conclusive and binding on
all Members. If the separate appraisals differ, the Members shall have a period of ten (10) days after receipt of the appraisals to agree on the Fair Market Value and, if they agree on the Fair Market Value, such decision shall be conclusive
and binding on all Members. In the event the Members cannot agree on the Fair Market Value in accordance with the preceding sentence, the two appraisers referred to therein shall within ten (10) days after the expiration of the ten
(10) day period described in the preceding sentence select a third appraiser. In the absence of such a selection, the third appraiser shall be selected by the Chapter of the American Institute of Real Estate Appraisers for the state in which
the Property is located on application of either Member. The third appraiser shall decide which of the two appraisals established by the appraisers in accordance with this Section 13.3(c) is closer to the gross fair market value of the assets
of the Company, and such decision shall be conclusive and binding on all Members. 
 13.3 Offset for Damages. In the event of
dissolution resulting from an event described in Article 11, the Liquidating Member shall be entitled to deduct from the amount payable to the other Member pursuant to Section 13.2(a) or 13.2(b), Section 13.4 or Section 13.5, the
amount of damages, including reasonable attorneys’ fees and disbursements, incurred by the Liquidating Member proximately resulting from any such event, but only if and as established by a court order. 

  
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 13.4 Distributions of Operating Cash Flow. Subject to Section 13.5 as to proceeds of
liquidation, upon the dissolution of the Company for any reason, during the period of liquidation and until termination of the Company, the Members shall continue to receive the Operating Cash Flow and to share Net Income and Net Loss for all tax
and other purposes as provided elsewhere in this Agreement. 
 13.5 Distributions of Proceeds of Liquidation. The proceeds of
liquidation shall be applied in the following order of priority: 
 (a) First. To the payment of (i) debts and liabilities of the
Company, including Member Loans, and (ii) expenses of liquidation. 
 (b) Second. To the setting up of any reserves which the
Liquidating Member or Members, whichever is in control of the liquidation, may deem necessary for any contingent or unforeseen liabilities or obligations of the Company. Such reserves may be deposited by the Company in a bank or trust company
acceptable to the Liquidating Member or Members, whichever is in control of the liquidation, to be held by it for the purpose of disbursing such reserves in payment of any of the aforementioned liabilities or obligations, and at the expiration of
such period as the Liquidating Member or Members, whichever is in control of the liquidation, shall deem advisable, distributing the balance, if any, thereafter remaining, in a manner hereinafter provided. 

(c) Third. Any balance remaining shall be paid and distributed as provided in Section 9.4. 

13.6 Orderly Liquidation. A reasonable time shall be allowed for the orderly liquidation of the assets of the Company and the discharge
of liabilities to creditors so as to enable the Members to minimize the losses normally attendant upon a liquidation. 
 13.7 Financial
Statements. During the period of winding up, all the financial statements provided for in Section 7.1 shall be prepared and furnished to each of the Members, until complete liquidation is accomplished. 

13.8 Restoration of Deficit Capital Accounts. At no time, including on dissolution of the Company or liquidation by a Member of its
Membership Interest in the Company, shall a Member with a deficit balance in its Capital Account have any obligation to the Company or to another Member or to any other person to restore such deficit balance. 

  
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 ARTICLE 14. NOTICES 

14.1 In Writing; Address. All notices, elections, offers, acceptances and demands (collectively “notices”) provided
for in, permitted under, required under or to be effective under, this Agreement shall be in writing and shall be given to CNL or MCR at the address set forth below or at such other address as the party may hereafter specify in writing. 

 

			
	 CNL:
	  	 GGT Spring Town Holdings, LLC
 CNL Center at
City Commons
 450 South Orange Avenue
 Orlando, Florida
32801
 Attention: Rosemary Q. Mills, Chief Financial Officer

Attention: Scott Hall
 Facsimile No.: (407) 540-2546

E-mail: Rosemary.Mills@cnl.com

		
		  	with a copy to each of:
		
		  	 GGT Spring Town Holdings, LLC
 CNL Center at
City Commons
 450 South Orange Avenue
 Orlando, Florida
32801
 Attention: Holly J. Greer, Esq., General Counsel

Facsimile No.: (407) 540-2648
 E-mail:
Holly.Greer@cnl.com

		
		  	 Lowndes, Drosdick, Doster, Kantor & Reed, P.A.

450 South Orange Avenue, Suite 200
 Orlando, Florida 32801

Attention: Joaquin E. Martinez, Esq.
 Facsimile No.: (407)
843-4444
 E-mail: Joaquin.Martinez@lowndes-law.com

		
	 MCR:
	  	 MCRT Spring Town LLC
 5225 Katy Freeway,
Suite 103
 Houston, TX 77007
 Attention: Jeb Cox

Facsimile No.: (713) 888-3933
 E-mail:
JCox@MCRTrust.com

		
		  	with a copy to each of:
		
		  	 MCRT Spring Town LLC
 949 South Coast Drive,
Suite 400
 Costa Mesa, California 92626
 Attention: Eric
Lezak
 Facsimile No.: (714) 966-79353
 E-mail:
Elezak@MCRTrust.com

  
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		  	 Michael K. Ording
 Jones Day

If by USPS: P.O. Box 165017, Columbus, Ohio 43216-5017
 Other: 325
John H. McConnell Blvd., Suite 600, Columbus, Ohio 43215
 Facsimile No.: (614) 461-4198

E-mail: mkording@jonesday.com

 All notices hereunder shall be in writing to be deemed effective and shall be deemed sufficiently given or served for all
purposes (i) if by personal service or courier service, on the date when signed for or, if refused, when refused at the address specified in this Section 14.1, (ii) if by nationally-recognized
overnight courier that produces a receipt of delivery, when signed for or, if refused, when refused at the address specified in this Section 14.1, (iii) if mailed by United States registered or certified mail, return receipt requested,
postage prepaid, when signed for or, if refused, when refused at the address specified in this Section 14.1 and (iv) if sent by electronic transmission (including fax or e-mail), when received. If a notice is sent by electronic
transmission (including fax or e-mail), confirmation of transmission generated by the sender’s equipment will be prima facie evidence of receipt. For purposes hereof, notices may be given by the parties hereto or by their attorneys identified
above. 
 14.2 IRS Notices. A copy of any notice or any written communication from the Internal Revenue Service to the Company or a
Member shall be given to each Member at the addresses provided for above. 
 14.3 Copies. A copy of any notice, service of process,
or other document in the nature thereof, received by either Member from anyone other than the other Member and pertaining to the Company or the Project, shall be delivered by the receiving Member to the other Member as soon as practicable if such
notice, service of process, or other document is outside the ordinary course of the Company’s business. 
 ARTICLE 15.
MISCELLANEOUS 
 15.1 Additional Documents and Acts. In connection with this Agreement, as well as all transactions
contemplated by this Agreement, each Member agrees to execute and deliver such additional documents and instruments, and to perform such additional acts, as may be necessary or appropriate to effectuate, carry out and perform all of the terms,
provisions and conditions of this Agreement and all such transactions. All approvals of either party hereunder shall be in writing. 
 15.2
Interpretation. This Agreement and the rights and obligations of the Members hereunder shall be interpreted in accordance with the laws of the State of Delaware. 

15.3 Entire Agreement. This instrument contains all of the understandings and agreements of whatsoever kind and nature existing between
the parties hereto with respect to the subject matter of this Agreement and the rights, interests, understandings, agreements and obligations of the respective parties pertaining to such subject matter. 

  
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 15.4 References to this Agreement. Numbered or lettered articles, sections and subsections
herein contained refer to articles, sections and subsections of this Agreement unless otherwise expressly stated. 
 15.5 Headings.
All headings herein are inserted only for convenience and ease of reference and are not to be considered in the construction or interpretation of any provision of this Agreement. 

15.6 Binding Effect. Except as herein otherwise expressly stipulated to the contrary, this Agreement shall be binding upon and inure to
the benefit of the parties signatory hereto and their respective permitted successors and assigns. 
 15.7 Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall for all purposes constitute one agreement which is binding on all of the parties hereto. 

15.8 Confidentiality. No publicity, media communications, press releases or other public announcements concerning the terms and
provisions of this Agreement or the transactions contemplated hereby shall be issued or made by any Member without the prior written consent of the other Member, which consent shall not be unreasonably withheld, conditioned or delayed, except if a
Member is required to make a public announcement or disclosure under applicable law, in which case such Member shall provide the other Member with the form and content of such public announcement or disclosure within a reasonable amount of time
prior to its release (to the extent possible under the circumstances) and shall consider in good faith all comments provided by the other Member; provided, however, that CNL shall not be required to provide copies of disclosures to be
made or proposed to be made by CNL in periodic reports and other filings required by the applicable federal securities laws. 
 15.9
Amendments. This Agreement may not be amended, altered or modified except by a written instrument signed by all parties. 
 15.10
Exhibits. All exhibits and schedules annexed hereto are expressly made a part of this Agreement, as fully as though completely set forth herein, and all references to this Agreement herein or in any of such exhibits or schedules shall be
deemed to refer to and include all such exhibits or schedules. 
 15.11 Severability. Each provision hereof is intended to be
severable and the invalidity or illegality of any portion of this Agreement shall not affect the validity or legality of the remainder. 

15.12 Qualification in Other States. In the event the business of the Company is carried on or conducted in any locations in addition
to the states of Delaware and Texas, then the Members agree to execute such other and further documents as may be required or requested by either Member in order that the Members legally may qualify the Company in such locations to the extent
necessary. 

  
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 15.13 Forum. Any action by one or more Members or the Company against one or more of the
others which arises under or in any way relates to this Agreement, or actions taken or failed to be taken or determinations made or failed to be made by the Members under this Agreement, or relating to the Company, including transactions permitted
hereunder or otherwise related in any way to the Company, may be brought only in the state courts of the State of Florida sitting in Orange County, Florida or the United States District Court for the Middle District of Florida. Each Member hereby
consents to the jurisdiction of such courts to decide any and all such actions and to such venue. 
 15.14 No Brokerage. Each Member
represents and warrants to the other Member that it has not dealt with any brokers, investment bankers, consultants or other third parties in the negotiation of this Agreement and the transactions contemplated herein, except for dealings with
Apartment Realty Advisors related to purchase of the Property. Each Member further agrees to indemnify, defend and hold the other Member harmless from and against any liability, claim, damage, cost or expense (including reasonable attorney’s
fees) arising out of or in connection with the claims for commissions or any other fees due in connection with this Agreement and the transactions contemplated herein arising from such Member’s actions, except compensation due Apartment Realty
Advisors related to purchase of the Property. 
 15.15 Tax Compliance. MCR represents and warrants that (i) MCR is wholly-owned
by MCRT North Florida LLC; (ii) MCR is a disregarded entity for U.S. income tax purposes, and (iii) for U.S. income tax purposes, MCR’s activities are reported under U.S. taxpayer identification number 27-2868228. CNL represents and
warrants that (i) CNL is wholly-owned by Global Growth, LP; (ii) CNL is a disregarded entity for U.S. income tax purposes, and (iii) for U.S. income tax purposes, CNL’s activities are reported under U.S. taxpayer identification
number 80-0956540. 
 15.16 Waiver of Partition and Certain Other Rights. Each Member irrevocably waives any right or power that it
might have (i) to cause the Company or any of its assets to be partitioned, (ii) to compel any transfer of all or any portion of the assets of the Company, except as expressly authorized by this Agreement, (iii) to cause the
appointment of a receiver for all or any portion of the assets of the Company, (iv) to cause the dissolution or liquidation of the Company, except in accordance with Article 13, or (v) to require an accounting of the Company’s
affairs, except in connection with the winding up of the Company. Each Member has been induced to enter into this Agreement in reliance upon the waivers set forth in this Section 15.16 and, without those waivers, none of the Members would have
entered into this Agreement. 
 15.17 Creditors Not Benefitted. Nothing contained in this Agreement will benefit any creditor of a
Member or the Company. No creditor of a Member or the Company may require a contribution to the capital of the Company to be solicited or a distribution to be made by the Company, nor may any creditor of a Member or the Company enforce the
obligation of a Member under this Agreement, including any obligation of a Member to make a contribution to the capital of the Company. A person extending credit to the Company may never claim that it did so in reliance on an obligation to
contribute capital to the Company within the meaning of Section 18-502(b) of the Act. 
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blank) 

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

			
	 MCRT SPRING TOWN LLC,

a Delaware limited liability company

		
	 By:
	 	 /s/ Eric Lezak

	 Name:
	 	 Eric J. Lezak

	 Title:
	 	 Managing Director

	
	 GGT SPRING TOWN HOLDINGS, LLC,

a Delaware limited liability company

		
	 By:
	 	 /s/ Andrew Hyltin

	 Name:
	 	 Andrew A. Hyltin

	 Title:
	 	 President

Table of Contents

 EXHIBIT A 

MEMBERS’ PERCENTAGE INTEREST 
  

									
	 Names of Members
	  	Percentage
Interests	 	 	Maximum Initial Capital
Contributions	 
	 GGT Spring Town Holdings, LLC
	  	 	95	% 	 	$	13,053,000	  
	 MCRT Spring Town LLC
	  	 	5	% 	 	$	687,000	  
	 Totals:
	  	 	100	% 	 	$	13,740,000	  

  
 A-1 

Table of Contents

 EXHIBIT B 

DESCRIPTION OF LAND 

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

EXHIBIT C 

[INTENTIONALLY OMITTED] 

EXHIBIT D 

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

MEMBER ERISA CERTIFICATE 

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

Table of Contents

 EXHIBIT F 

CNL ERISA CERTIFICATE 

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

EXHIBIT G 

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

 Exhibit 10.4 

LOAN AGREEMENT 

THIS LOAN AGREEMENT (this “Agreement”), dated as of December 20, 2013, between GGT SPRING TOWN TX, LLC, a
Delaware limited liability company (“Borrower”), and SYNOVUS BANK, a Georgia state banking corporation (“Lender”). 

WHEREAS, Borrower has applied to Lender for a loan to be used for the purposes hereinafter described, and Lender has agreed to make
such loan on the terms and conditions herein contained. 
 ARTICLE I 

DEFINITIONS 
 The
following terms shall have the meanings set forth below: 
 Affiliate: With respect to any Person, (a) each Person that
controls, is controlled by or is under common control with such Person, and (b) each Person that, directly or indirectly, owns or controls, whether beneficially or as a trustee, guardian or other fiduciary, any of the stock of such Person. 

Assignment: The Assignment of Rents and Leases from Borrower to Lender of even date herewith, as the same may be amended,
assigning to Lender all leases and rents with respect to the Project. 
 Assignment of Deposit: The Assignment of Deposit
Account from Guarantor to Lender of even date herewith, as the same may be amended. 
 Cost Budget: The cost budget for the
Project, initially in the form of Exhibit B attached hereto, as the same may be amended from time to time with Lender’s written consent, which consent shall not be unreasonably withheld, conditioned or delayed. 

Default: The occurrence of any event or condition which would, with the giving of any required notice, lapse of any applicable
grace or cure period, or both, would constitute an Event of Default. 
 Distributions: Has the meaning set forth in Section
5.21. 
 Equity Requirement: A total equity contribution of $13,740,000.00 (or 30% of total costs pursuant to the Cost
Budget, if greater), subject to adjustment as expressly provided in this Agreement. 
 Event of Default: Has the meaning given
in Article VI hereof. 
 Force Majeure Event: Strikes, lock-outs, war, civil disturbance, natural disaster, acts of terrorism
or, acts of God, governmental regulation of the sale of materials and supplies or the transportation thereof, shortages of material or labor resulting directly from general market shortages, governmental control or diversion, delays in governmental
authorities conducting inspections, issuing licenses or permits or requiring additional approvals or imposing additional restrictions not reasonably foreseeable based on laws in existence as of the date hereof and other causes beyond Borrower’s
reasonable control, other than shortage of funds, which cause a delay in Borrower’s performance of an obligation related to construction of the Project. 

  
 Loan Agreement - Page 1

 General Construction Contract: The guaranteed maximum price general construction
contract dated December 20, 2013, between Borrower and General Contractor, with such change orders and amendments permitted thereunder that are either expressly permitted by this Agreement or approved in writing by Lender. 

General Contractor: MCRT Gulf Coast/Southwest Construction LLC, a Delaware limited liability company, as general contractor for
the Project, or any replacement general contractor selected by Borrower, subject to Lender’s approval, which approval shall not be unreasonably withheld, conditioned or delayed. 

Guarantor: MCRT West Assurance XIX LLC, a Delaware limited liability company, and its successors and assigns; provided, however,
that in the event that Guarantor is unable to perform its obligations under the Guaranty or that Investor exercises its rights under the operating agreement for Borrower, Investor is hereby approved by the Lender as a substitute Guarantor to act in
place of Guarantor, provided that Investor is at the date of substitution a similarly (or better) capitalized entity that can comply with the financial obligations in the Guaranty, complies with the Assignment of Deposit and agrees in writing to be
bound by the terms, conditions, and provisions of the Guaranty, the Indemnity, and any other Loan Documents to which the Guarantor is, or may be hereafter become, a party. 

Guaranty: The Payment and Performance Guaranty Agreement from Guarantor to Lender of even date herewith, as the same may be
amended, guaranteeing repayment of the Loan, with interest thereon, and other obligations in connection therewith, and performance of Borrower’s obligations pursuant to the Loan Documents, all to the extent set forth therein. 

In Balance: The comparison of (a) the cost reasonably estimated by Lender to complete the Project, including payment of
both hard costs and soft costs of the types set forth in subcategories under the “Construction Related Items” of the Cost Budget, plus Retainage that has been withheld from prior advances of the Loan to the extent not included in
such costs (but without duplication) to (b) the remaining unadvanced Loan funds in such subcategories, including Retainage withheld from prior Loan advances, plus amounts that Borrower has placed on deposit with Lender pursuant to
Section 5.7. For purposes of such comparison, the unexpended amount budgeted under the subcategories under “Non-Construction Items and Interest” (unless and until reallocated to another category, with Lender’s approval to
the extent required by this Agreement) and the anticipated accrual of interest and anticipated operating deficits shall be excluded from the calculations of both (a) and (b). 

Indemnity: The Indemnity Agreement from Borrower and Guarantor to Lender of even date herewith, as the same may hereafter be
amended, with respect to violations of laws, rules and regulations relating to the environment. 
 Inspector: The
individual or firm from time to time designated by Lender to serve as such hereunder. 

  
 Loan Agreement - Page 2

 Investor: GGT Spring Town Holdings, LLC, a Delaware limited liability company,
which is directly or indirectly Controlled (as defined in the definition of Permitted Transfers) by CNL Growth Properties, Inc., a Maryland corporation. 

Loan: Loan of up to $32,060,000.00 from Lender to Borrower to be made pursuant to this Agreement, but not more than 70% of costs
pursuant to the approved Cost Budget. 
 Loan Documents: This Agreement, the Note, the Mortgage, the Assignment, the
Assignment of Deposit, the Indemnity and the Guaranty, together with all other documents executed and delivered by Borrower or Guarantor to Lender as security for the Loan. 

Manager: Either a management company affiliated with Mill Creek Residential Trust LLC, Westwood Residential or Greystar, as the
property manager and leasing agent for the Project (or other property manager approved by Lender, which approval shall not be unreasonably withheld, conditioned or delayed). 

Mill Creek Member: MCRT Spring Town LLC, a Delaware limited liability company. 

Mortgage: That certain Deed of Trust, Security Agreement and Fixture Filing of even date herewith, as the same may hereafter be
modified or amended, granting to Lender a first lien upon the Property and the Project. 
 Mortgaged Property: Has the meaning
set forth in the Mortgage. 
 Net Cash Flow: Income from the rental of the units of the Project in the ordinary course of
business less expenses of ownership and operation of the Project and Property, including, without limitation, debt service payments then due with respect to the Loan, management fees and expenses reimbursable to Manager and reasonable reserves for
future payment obligations of the Borrower (including, without limitation, reasonable reserves for maintenance and repair, ad valorem taxes and assessments, insurance premiums and other expenses that may not be payable on a monthly basis). 

Note: That certain Promissory Note of even date herewith evidencing Borrower’s promise to repay the Loan together with
interest, as the same may hereafter be modified or amended. 
 Optional Note Rate: Has the meaning set forth in
Section 2.6 hereof. 
 Permitted Exceptions: (i) those matters listed on Schedule B of the
mortgagee’s policy of title insurance delivered to Lender in connection with the closing of the Loan and such other title exceptions as are approved by Lender in writing, (ii) real property leases permitted by the Loan Documents and leases
of furnishings for model units, office equipment and facilities for cable televisions, telephone, internet, security systems and similar systems, (iii) non-consensual liens or encumbrances that are being contested as permitted by and in
accordance with the Loan Documents, (iv) liens, security interests or encumbrances created under the Loan Documents, (v) liens for real estate taxes on the Property and Project not yet due and payable or that are being contested in
accordance with the Loan Documents, (vi) other liens or encumbrances approved by Lender or expressly permitted under the Loan Documents, and (vii) customary and usual easements and rights of way with respect to the Property and Project for
water and sewer lines,  

  
 Loan Agreement - Page 3

 
telephone and internet lines, electric and gas lines or other utilities or for other similar purposes related to the construction, operation and occupancy of the improvements within the Project
that are either (A) existing and set forth in Lender’s policy of title insurance or (B) requested by Borrower and approved by Lender in connection with the Project, not to be unreasonably withheld. 

Permitted Transfers: 

(i) any transfers of equity interests in a publicly-traded company, or public company, or change in control of a publicly-traded company or
public company; 
 (ii) a transfer to an immediate family member (i.e., any child, grandchild, parent, spouse or sibling) or a
transfer by a natural person to a revocable inter vivos trust having such natural person as a trustor or trustee of such trust and one or more immediate family members of such natural person as beneficiaries of such trust or a transfer by devise or
descent or by operation of law upon the death of a natural person; 
 (iii) any transfer of unit of participation or interest by any
pension plan, pension fund or collective investment fund or trust containing pension funds; 
 (iv) any transfers of direct or indirect
equity interests in Mill Creek Residential Trust LLC; 
 (v) any transfer of direct or indirect interests in Investor; 

(vi) any transfer of direct or indirect interests in Borrower by and between the Mill Creek Member and Investor; 

(vii) any transfer of direct or indirect interests in Borrower by the Mill Creek Member and/or Investor to any Affiliate thereof; 

(viii) any transfer of any interest in Borrower to a Person approved by Lender, such approval not to be unreasonably withheld, conditioned or
delayed, so long as the Mill Creek Member, Investor and/or any Affiliate thereof shall continue to have control of the Borrower following such transfer; and 

(ix) transfers of direct and/or indirect equity interests in Borrower, provided that: 

(a) no Event of Default exists; 

(b) if such transfer is from a Person that is not a Qualified Equityholder, except as (1) may be otherwise prohibited by applicable law
or (2) a transfer or transfers of publicly traded stock, and issuances of stock to the public which is the subject of or is exempt from filing(s) with the U.S. Securities and Exchange Commission, Borrower shall provide not less than ten
(10) days prior written notice to Lender if such transfer is to a Person other than a Qualified Equityholder or an Affiliate thereof or two (2) days prior written notice if such transfer is to a Qualified Equityholder or an Affiliate
thereof; and 
 (c) no such transfer shall result in a Change of Control (as defined below). 

  
 Loan Agreement - Page 4

 For the avoidance of doubt, equity transfers of interests in Borrower among CNL Affiliates (as
defined below) shall be permitted without the consent of Lender subject to the other terms set forth herein. For purposes of subsection (ix) in the definition of Permitted Transfers and this Section, the following defined terms shall have the
meanings set forth below: 
 “CNL Affiliates” means any Person directly or indirectly in Control of or Controlled by, or
under direct or indirect common Control with, CNL. 
 “Change of Control” means the occurrence of the failure of Borrower
to be Controlled by one or more Qualified Equityholders. 
 “CNL” means CNL Growth Properties, Inc., a Maryland corporation

 “Control” of any entity means the ownership, directly or indirectly, of at least 51% of the equity interests in, and the
right to at least 51% of the distributions from, such entity and the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such entity, whether through the ability to exercise voting
power, by contract or otherwise (subject, however, to such customary veto and/or voting approval rights as may be granted to any other direct or indirect equityholders of such entity) (“Controlled” and “Controlling” each having
the meaning correlative thereto). 
 “Governmental Authority” means any federal, state, county, regional, local or
municipal government, any bureau, department (including any state department of health), agency or political subdivision thereof and any Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative functions of
or pertaining to government (including any court). 
 “Qualified Equityholder” means CNL and successor entities to CNL
resulting from a public offering, sale of publicly-traded shares, “privatization”, merger, reverse merger or similar event. 

Provided that in each case an Affiliate of Mill Creek Residential Trust LLC or Investor is the managing member of the Borrower, and no sale,
conveyance, transfer or assignment of any interest in the Borrower (whether owned directly or indirectly) shall constitute a Permitted Transfer if it would result in neither Mill Creek Residential Trust LLC, Investor or their Affiliates having
direct or indirect control of the Borrower. 
 Person: A natural person, partnership, limited partnership, corporation,
limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature, or any fiduciary acting in such capacity on behalf of the foregoing. 

Plans and Specifications: The Plans and Specifications for the Project, as the same may be amended from time to time with
Lender’s prior written consent or that are otherwise permitted by this Agreement. 
 Project: The 396-unit class
“A” apartment project to be constructed on the Property in all material respects in accordance with the Plans and Specifications. 

  
 Loan Agreement - Page 5

 Property: The real estate located in Harris County, Texas, containing approximately
19.5 acres, as described in Exhibit A attached hereto and made a part hereof. 
 Required Completion Date: Not
later than thirty (30) months from the date of this Agreement, as extended by the number of days of delay due to a Force Majeure Event. 

Retainage: The greater of (a) 10% of each draw for payment of the costs under the General Construction Contract until
the Project is 50% complete, at which date one-half the Retainage will be released and 5% retainage shall be required on each draw for payment of costs under the General Construction Contract thereafter, such that, at substantial completion, prior
to release of Retainage, there is an aggregate Retainage of 5%; however, (i) no retainage will be withheld for the General Contractor fee, general condition costs, materials purchased directly by contractors (including General Contractor), soft
costs and the following items: lumber, drywall material, doors, millwork, finish hardware, windows, floor coverings, cabinetry, granite countertops, appliances, elevators, electrical fixtures, wood trusses and concrete; and (ii) Lender will
agree to release Retainage for subcontractors whose contracts are fully complete upon receipt of evidence of completion and their final conditional lien waivers (conditioned only upon release of the retainage to such subcontractor), with final
unconditional lien waivers delivered within fifteen (15) days of such contractor’s receipt of Retainage; or (b) the retainage required under the General Construction Contract. For purposes of clarification, the 10% or 5% Retainage, as
the case may be, shall be calculated without regard to the items for which no retainage is required under item (i) above and the items under item (ii) above for which retainage has been released. 

Security Documents: The Mortgage and the Assignment. 

Single Purpose Entity: A Person which complies with the requirements of Section 5.14 hereof. 

Stored Materials: Those materials which are to be used at a future date in the construction of the Project and are to meet the
requirements of Section 2.1(G) hereof. 
 Title Company: Fidelity National Title Agency, Inc. 

ARTICLE II 

DISBURSEMENT OF THE LOAN 

2.1 Disbursement Procedure: Lender agrees on the terms and conditions and relying on the representations set forth
herein to lend to Borrower, and Borrower agrees to borrow from Lender, an amount not to exceed the Loan amount. Subject to compliance by Borrower with all of the provisions of this Agreement, the Loan shall be disbursed in several advances at such
times and in such amounts as Lender shall determine in accordance with the following procedures: 
 (A) Not less ten (10) days
before the date on which Borrower desires an advance from the Loan, Borrower shall submit to Lender (1) a signed cover letter, indicating the amount requested to be disbursed, and whether interest on the Loan is to be paid from the draw,
(2) for amounts to be disbursed for costs pursuant to the General Construction Contract, an AIA G702/703 draw request form satisfactory to Lender, properly executed, with certification by 

  
 Loan Agreement - Page 6

 
Borrower, General Contractor and Borrower’s architect that such draw request is for payment or reimbursement of actual costs incurred for construction of the Project, which must also be
consistent with the Cost Budget, (3) for amounts to be disbursed for other costs, an itemization in accordance with the Cost Budget, and, if specifically requested by Lender, invoices or other satisfactory evidence of such costs, (4) lien
releases from the General Contractor and, if requested by Lender, from subcontractors receiving proceeds from the current draw or preceding draws for which such a lien release has not been furnished, and (5) a date-down endorsement to
Lender’s title insurance policy confirming no intervening liens or change in status of title (excluding Permitted Exceptions) or lien priority of the Mortgage. The cost breakdown for costs pursuant to the General Construction Contract shall
also show the percentage of completion of each line item on the Cost Budget, and the accuracy of the cost breakdown shall be certified by Borrower and by the General Contractor. Borrower appoints Darren Schackman and Jeb Cox (if more than one, any
one may sign) as its agent to make disbursement requests. Borrower may hereafter by written notice to Lender appoint one or more other agents or change agents to make disbursement requests, provided any such notice is not effective until actually
received by Lender. 
 (B) The completed construction and the draw request form and cost itemization will be reviewed by the Inspector who
will confirm to Lender its professional opinion of the cost of completed construction, percentage of completion and compliance in all material respects with the Plans and Specifications. The Borrower will coordinate site inspections with the
Inspector in a timely manner so that (i) all payment applications by the General Contractor, whether or not to be funded from the Loan, will be submitted to the Inspector, and the Inspector will have the opportunity to review all work in place
that is included in each such payment application; and (ii) the Inspector will be notified of the timing of substantial completion of key elements of the Project in order to allow review of footings, foundations and structural components while
visible. Borrower acknowledges and agrees that all inspections by or on behalf of Lender shall be solely for the benefit of Lender, and Borrower shall have no rights to (i) rely on any information, materials or opinions of Inspector with
respect to the Project of any kind, however evidenced or communicated; or (ii) claim any loss or damage against Lender or Inspector arising from any alleged negligence (excluding Lender’s gross negligence or willful misconduct) or failure
to perform such inspections, failure to monitor loan disbursements or the progress or quality of construction, or failure to otherwise properly administer the construction aspects of the Loan. Nothing herein is intended to release Inspector for its
employees’ actions which directly cause bodily injuries or death or property damage while on the Property. 
 (C) The maximum advance
will be allowable disbursements from the Cost Budget for Project costs other than costs pursuant to the General Construction Contract, as determined by Lender, including any unpaid Loan fees and expenses and interest accrued on the Loan, plus the
actual cost of work and labor done on the Project pursuant to the General Construction Contract, including General Contractor fees and Stored Materials that are submitted to and approved by Lender, which approval shall not be unreasonably withheld,
conditioned or delayed, subject to Borrower’s right to reallocate contingency and cost savings in accordance with the terms of this Agreement. The advance to be made will be the maximum allowable advance less: (x) the Retainage and
(y) the amounts previously advanced by Lender. Except as otherwise provided in the definition of “Retainage” in Article I, the Lender will be obligated to advance Retainage only after satisfactory completion of all construction work
(subject to punch list items for which a holdback reasonably acceptable to Lender shall have been established if required by Lender) and 

  
 Loan Agreement - Page 7

 
the furnishing to Lender of evidence reasonably satisfactory to Lender that such completion is free of all mechanics’ and materialmen’s liens and that appropriate governmental
authorities have approved the Project in its entirety for permanent occupancy. Lender will not be obligated to advance for any duplication of work, work which does not conform in all material respects to the Plans and Specifications or work which is
unsatisfactory in the opinion of Inspector because the work does not comply with applicable laws or codes or is defective in any material respect. 

(D) Notwithstanding the foregoing, Lender shall not be required to advance more than once each month except that Borrower may request one
additional monthly advance with respect to the following items: site work, shell, framing, drywall, trim, paint, stucco, landscaping, mechanical, electrical and plumbing services and fire alarms. Lender reserves the right to limit the total amount
advanced on the Loan at any time to an amount which, when deducted from the total amount of the Loan (leaves the Loan, together with any additional funds then held by Lender as a result of a deposit by Borrower as described in
Section 5.7 hereof), In Balance, all as determined by Lender in its reasonable discretion from time to time. Subject to the other conditions of this Agreement, the General Contractor fee of up to six percent (6%) of total
construction hard cost will be allowed and will be advanced in monthly increments over the construction period based upon percentage of completion. Subject to the other conditions of this Agreement, an overhead/development fee of up to three
percent (3%) of total Project cost will be advanced as follows: twenty percent (20%) as of the date hereof (or upon satisfaction of the Equity Requirement, if later), sixty percent (60%) in increments over the construction period
based upon percentage of completion and the remaining twenty percent (20%) upon completion and issuance of final, unconditional certificates of occupancy for the Project. Except for such advances of the developer fee, General Contractor fee,
amounts due for payment of costs under the General Construction Contract, and line items for leasing, marketing, management or similar expenses to any Affiliate serving as Manager or leasing agent, Lender shall not be obligated to make any advances
for fees, overhead or other amounts to Borrower, Guarantor, or any Affiliate of Borrower or Guarantor. 
 (E) Borrower will be required to
inject into the Project, as cash equity, a sum in the amount of the Equity Requirement. Lender requires and Borrower agrees that the balance of the Equity Requirement, to the extent not funded at closing by Borrower for items set forth on the
closing statement, will be advanced by Borrower for costs pursuant to the Cost Budget and evidence thereof furnished to Lender prior to any request for advance under the Loan. Borrower will provide Lender with the same items as set forth in
Section 2.1(A)(1) through (4) as evidence of advances of the funds satisfying the Equity Requirement. 
 (F) A reallocation among
line items of the Cost Budget may be made upon Borrower’s written request, provided any such reallocation must be approved by Lender, which approval shall not unreasonably be withheld so long as Borrower provides evidence satisfactory to Lender
of verifiable cost savings in the category from which budgeted amounts are being reallocated and that the amount remaining unadvanced in such category is sufficient to complete such category. Notwithstanding the foregoing, (i) no advances from
hard cost categories to soft cost categories or from interest reserve to other categories shall be permitted except in Lender’s sole discretion, and except that after the Project is complete and all costs from the hard cost categories of the
Cost Budget are paid, the unused balance may be transferred to the interest reserve or contingency categories, and (ii) Lender shall allow Borrower to reallocate funds from the contingency line item to any other hard cost line item without
Lender’s approval and to 

  
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reallocate funds from soft cost categories that have verifiable cost savings (of which Borrower has provided satisfactory evidence) to hard cost categories, but Borrower shall contemporaneously
notify Lender of any such reallocation and such reallocation shall be subject to the limitations of Section 5.16. 
 (G) Lender shall
not be obligated to advance for Stored Materials unless the Stored Materials for which Borrower desires an advance are titled in Borrower and either (1) stored in a bonded warehouse approved by Lender, which approval shall not be unreasonably
withheld, delayed or conditioned, and available for inspection by Inspector, or (2) stored at the Property or in a locked and otherwise secure storage arrangement reasonably acceptable to Lender, available to Inspector for inspection and
insured in an amount reasonably acceptable to Lender. In no event will Lender be required to make advances to pay for Stored Materials more than one hundred twenty (120) days prior to the date such Stored Materials are to be used in the
construction of the Project. Borrower shall provide Lender with a description of and invoices for all Stored Materials. 
 (H) The Cost
Budget includes an interest reserve, which will be advanced by Lender to pay interest on the Loan as it becomes due, unless Borrower pays interest when due from other than Loan funds. Interest will be payable by Borrower to Lender on that portion of
the interest reserve actually disbursed by Lender. The Lender will be obligated to advance interest accrued on the Loan only to the extent that cash flow from the Project, after payment of expenses of ownership and operation of the Project and
Property, is insufficient to do so. In the event that, prior to the time when cash flow from the Project is sufficient to pay interest, the interest reserve is reduced to an amount less than the estimated amount of interest to accrue until such
time, Borrower will, within twenty (20) days of written notice from Lender to do so, deposit with Lender such sum as may be necessary to increase the interest reserve to an amount sufficient to pay the estimated amount of interest to accrue
until cash flow from the Project is anticipated to be adequate to pay interest. So long as no Default or Event of Default exists, at such time as the Project is completed in accordance in all material respects with the Plans and Specifications, all
costs thereof have been paid, and the cash flow from the Project is sufficient to pay all debt service payments and operating expenses, then upon Borrower’s written request, Lender will advance to the Borrower any unadvanced portion of the Loan
and will release to the Borrower the amount deposited pursuant to the preceding sentence that has not been used to pay interest. 
 (I) The
Cost Budget includes a contingency reserve, which shall be disbursed by Lender upon Borrower’s request as provided by and in accordance with Section 2.1(F) above or as otherwise approved by Lender. Interest will be payable by Borrower to
Lender only on that portion of the contingency reserve actually disbursed by Lender. 
 Notwithstanding the foregoing, the provisions of
this Section 2.1, Lender may make one or more advances to Borrower upon written or oral disbursement requests not complying with the requirements of this Section 2.1, and such advances will, in the absence of bad faith by Lender, be
conclusively deemed to be advances to Borrower hereunder. 
 2.2 Advances by Lender. Regardless of whether Borrower has
submitted a requisition therefor, Lender may from time to time upon prior written notice to Borrower advance amounts which become due for construction and non-construction expenses for which Borrower is responsible for payment, including but not
limited to interest on the Loan, if 

  
 Loan Agreement - Page 9

 
Borrower has not timely paid such expenses. Such advances may be made either directly to parties to whom such amounts are due, made by depositing the same into Borrower’s checking account
with Lender and debiting such account, or paid to Lender to reimburse Lender for sums due to it. All such advances and advances to parties other than Borrower shall be deemed advances to Borrower hereunder and shall be secured by the Security
Documents to the same extent as if they were made directly to Borrower. 
 2.3 Representations and
Warranties. Each submission by Borrower to Lender of a requisition for an advance of the Loan shall constitute Borrower’s representation and warranty to Lender that: (a) all completed construction is constructed in all
material respects in accordance with the Plans and Specifications, and (b) all construction and nonconstruction costs for the payment of which Lender has previously advanced funds have in fact been paid. 

2.4 Additional Information. If Lender or the Title Company shall so require, Borrower will submit with its
requisitions for advances lien waivers in form reasonably satisfactory to Lender and the Title Company, showing amounts paid and amounts due to all Persons furnishing labor or materials in connection with the completion of the Project. If the title
insurance policy insuring the Mortgage is not written so as to insure any and all disbursements of the Loan up to the face amount of the Mortgage, or if Lender shall so require, Borrower shall arrange to have the Title Company deliver to Lender a
date-down endorsement confirming the advance being requisitioned and insuring Lender as to the priority of such advance under the policy insuring the Mortgage without additional exceptions. 

2.5 Delivery of Funds. Except for any initial advance funded through the Title Company or its approved attorney or
agent, Lender will make advances of the Loan by depositing the same to Borrower’s account with Lender, which account shall be used by Borrower only for the purpose of paying the costs and expenses contemplated by this Agreement. The making of
an advance by Lender shall not constitute Lender’s approval or acceptance of the construction theretofore completed. Lender’s inspection and approval of the Plans and Specifications, the construction of the Project, or the workmanship and
materials used therein, shall impose no liability of any kind on Lender, the sole obligation of Lender as the result of such inspection and approval being to make the advances if, and to the extent, required by this Agreement. 

2.6 Optional Note Rate; Tranches. So long as no Event of Default exists, Borrower may from time to time select up to four
tranches of the outstanding Loan balance to bear interest at a rate other than the Standard Note Rate (as defined in the Note). Each such tranche in an amount designated by Borrower in its written notice to Lender will bear interest at a rate of
interest quoted by Lender (based upon rates obtained by Lender from Thomson Reuters or such other reliable third-party provider of rate quotes as Lender may from time to time select) from time to time as the sum of (a) the London Interbank
Offered Rate (the “LIBOR”) for deposits in U.S. Dollars, at approximately 9:00 a.m. (Birmingham, Alabama time), for a period of 30, 60, 90 or 180 days (each a “LIBOR Period”), divided by one (1) minus the Reserve Percentage,
plus (b) 225 basis points. Each such rate (an “Optional Note Rate”) will initially be established as of the date specified in Borrower’s written election (which must be at least two (2) business days in advance) and will
expire and be reset at the end of each LIBOR Period. Similarly, Borrower must give written notice of its election to Lender at least two (2) business days prior to the date on which the Optional Note Rate will expire and be reset to either
(i) change to a different  

  
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Optional Note Rate based on a different LIBOR Period, (ii) revert to the Standard Note Rate, or (iii) continue with a new Optional Note Rate with the same LIBOR Period. If no election
is timely made, the Borrower will be deemed to have elected for such tranche to bear interest as provided in (iii) above at new Optional Note Rate with the same LIBOR Period as the Optional Note Rate then expiring. No selection shall be made of
a LIBOR Period which extends beyond the Maturity Date. In the event the use of LIBOR for any reason should become prohibited or unavailable to Lender, or, if in Lender’s good faith judgment, it is not possible or practical for Lender to set or
determine the LIBOR, or if LIBOR does not in Lender’s commercially reasonable judgment reflect its cost of making or maintaining loans, then the Standard Note Rate (as it changes from time to time pursuant to the Note) shall apply until Lender
notifies Borrower that such condition no longer exists. 
 2.7 Post-Closing Items. Notwithstanding any provision herein
to the contrary, Lender will be under no obligation to fund any advances of the Loan until Borrower has complied with the provisions of Schedule 2.7 regarding Post-Closing Items. 

ARTICLE III 

CONDITIONS TO THE LOAN 

Lender’s obligation to make the Loan or any advance thereof shall be effective only upon fulfillment of the following conditions: 

3.1 Payment of Fees. Payment by Borrower of a commitment fee of one-half percent (1/2%) of the maximum Loan (which is
deemed fully earned upon the date of this Agreement and non-refundable), and all other actual, out-of-pocket fees and expenses of Lender required by this Agreement which are then due and payable within ten (10) business days of receipt of
written request by Lender to Borrower. 
 3.2 Documents. Execution, delivery and, when appropriate, recording or
filing, of this Agreement, the Note, the other Loan Documents, and all other documents evidencing or securing the Loan, and all other documents required by this Agreement, all in form and content satisfactory to Lender and Borrower; the accuracy of
all representations and warranties in all material respects herein and therein; and the absence of any Default hereunder or thereunder. Lender may elect in its discretion to refuse to fund all or any part of a requested advance of the Loan if an
Event of Default exists or a monetary Default exists. Lender may also elect to refuse to fund all or any part of a requested advance of the Loan if any non-monetary Default exists, which does not yet constitute an Event of Default due to a stated
cure period not having expired, if the Lender in its discretion, acting in good faith, considers such non-monetary Default to be material and so notifies Borrower. 

3.3 Title Insurance. Issuance of the title insurance policy satisfactory to Lender and receipt by Lender of an
endorsement to the title policy insuring the priority of such advance and confirming that there has been no change in the status of the title to the Property, creation of any new encumbrance thereon (except Permitted Exceptions), or occurrence of
any event that could in Lender’s reasonable opinion impair the priority of the lien of the Mortgage as of the time of each advance. 

  
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 3.4 Survey. Delivery of a survey acceptable to Lender and the Title Company,
and, within thirty (30) days after completion of the foundations of all buildings in the Project, if requested by Lender, delivery of an updated survey showing the construction of the foundations as within the boundaries of the Property and in
compliance with all applicable setback and other location requirements required by applicable law, regulation or recorded covenant, and showing no change in conditions which could materially, adversely affect the Property or the Project as
collateral for the Loan. 
 3.5 Initial Advance. As a condition of the initial advance from the Loan, Borrower
will provide evidence reasonably satisfactory to Lender that all of the Equity Requirement has been injected into costs set forth in the Cost Budget. 

In the event Lender, at its option, elects to make one or more advances prior to receipt and approval of all items required by this Article
III, such election shall not obligate Lender to make any subsequent advance. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 

Borrower represents and warrants to Lender, knowing that Lender will rely on such representations and warranties as incentive to make the
Loan, that: 
 4.1 Borrower’s Existence. Borrower is a duly organized and existing Delaware limited liability
company, having full power and authority to consummate the transactions contemplated by this Agreement. Borrower is owned and managed by the Persons having the ownership percentages and management rights set forth in Schedule 4.1. Borrower is
a Single Purpose Entity whose sole purpose is to construct, own, operate and lease the Project, and Borrower has no other material assets and no other indebtedness for borrowed money, either as a primary obligor or as a surety or guarantor.

 4.2 Violations or Actions Pending. There are no actions, suits, or proceedings pending or, to the best of
Borrower’s knowledge, threatened, which might materially adversely affect the financial condition of Borrower or which might materially and adversely affect the Project. Borrower is not in violation of any agreement the violation of which might
reasonably be expected to have a material adverse effect on Borrower’s business or assets, and Borrower is not in violation of any order, judgment, or decree of any court, or any statute or governmental regulation to which Borrower is subject
which might reasonably be expected to have a material adverse effect on Borrower’s business or assets. Neither the execution and performance of this Agreement and other Loan Documents by Borrower will result in any breach of any mortgage, deed
of trust, lease, credit or loan agreement or any other material instrument which may bind or affect Borrower. 
 4.3
Financial Statements. All financial statements of Borrower heretofore given and hereafter to be given to Lender are and will be true and complete in all material respects as of their respective dates and prepared in accordance with
generally accepted accounting principles consistently applied to the extent required under Section 5.12, and fairly represent the financial condition of Borrower. 

  
 Loan Agreement - Page 12

 4.4 Compliance with Laws and Regulations. All necessary action has been
taken and all building permits (or will be received prior to funding the initial advance of the Loan) and other permits have been received (or will be received prior to funding the advance of the Loan related to such stage of construction) and all
concurrency requirements have been or will be satisfied to allow construction of the Project in all material respects in accordance with the Plans and Specifications and use of the Project for its intended purpose under applicable laws, ordinances,
and regulations, including, without limitation, zoning, subdivision and environmental laws. When completed according to the Plans and Specifications, the Project will comply with all applicable laws and regulations, including, without limitation,
the Fair Housing Act and the Americans with Disabilities Act, and applicable regulations thereunder. 
 4.5 Roads and
Utilities. All utility, water and sanitary sewer services necessary at, and for the construction of the Project and use of the Project upon completion are or will be available to the Property. All roads necessary for the use of the Project
for its intended purposes have been or will be completed and are or will be public roads maintained by the state, county or municipality, or the necessary rights-of-way therefor have been or will be acquired or dedicated, and all necessary steps
have been or will be taken to insure the completion thereof and acceptance and maintenance by the state, county or municipality. 

4.6 Priority of Mortgage. The Mortgage, when duly executed, delivered, and recorded, will constitute a first lien against
the Property, prior to all other liens and encumbrances, including those which may hereafter accrue, except for such matters as shall have been excepted with Lender’s approval on the initial title insurance policy issued by the Title Company
insuring the Mortgage and any other Permitted Exceptions. Review and approval by Lender of a plat of the Property to be recorded after Closing and Lender’s subordination of its Mortgage lien to the plat will not be unreasonably withheld.

 4.7 Condemnation. There are no proceedings pending, or, to the best of Borrower’s knowledge, threatened, to
exercise any power of condemnation or eminent domain with respect to the Property, or any interest therein, or to enjoin or similarly prevent the construction or use of the Project. 

4.8 Accuracy of Documents. All documents furnished to Lender by or on behalf of Borrower as part of or in support of the
Loan application or pursuant to this Agreement are true, correct, complete and accurately represent in all material respects the matters to which they pertain. 

4.9 Equity. Borrower has, prior to or simultaneously with any advance from the Loan and in addition to the Loan, paid
costs of acquisition of the Property, related closing costs and other costs set forth in the Cost Budget, and will satisfy the Equity Requirement prior to the initial draw from the Loan. 

4.10 Continuing Effectiveness. All representations and warranties contained herein shall be deemed continuing and in effect at
all times while Borrower remains indebted to Lender and shall be deemed to be incorporated by reference as being true and correct to Borrower’s knowledge in all material respects in each requisition for advance by Borrower unless Borrower
specifically notifies Lender in writing of any change therein. If Borrower notifies Lender of any such change, Lender shall not be obligated to make any further advance unless (i) the change does not, in Lender’s opinion, materially and
adversely affect the Property, the Project or the financial condition of Borrower or Guarantor, or (ii) the change is cured, discharged, insured or bonded off by Borrower in a manner reasonably satisfactory to Lender. 

  
 Loan Agreement - Page 13

 ARTICLE V 

COVENANTS OF BORROWER 

Borrower covenants and agrees, from the date of this Agreement and as long as Borrower remains indebted to Lender: 

5.1 Construct Project. To commence the construction of the Project within ninety (90) days of the date hereof;
to cause the Project to be constructed on the Property and in all material respects in accordance with the Plans and Specifications, and in compliance with all applicable regulations including zoning and setback requirements, the Fair Housing Act
and Americans with Disabilities Act, and applicable regulations thereunder, and so as not to encroach upon or overhang any easement or right-of-way; to cause such construction to proceed continuously; and to complete construction of the Project by
the Required Completion Date subject to extension for any Force Majeure Event, time being of the essence. Borrower will promptly notify Lender of any Force Majeure Event that it anticipates will materially affect the Required Completion Date.

 5.2 Use of Proceeds. To use the proceeds of the Loan solely and exclusively for the purposes set forth in
the Cost Budget and to pay such fees, closing costs, and other nonconstruction expenses relating to the Loan, the construction of the Project, or the discharge of Borrower’s obligations under this Agreement as Lender has approved or may from
time to time approve. 
 5.3 Liens and Encumbrances. To keep the Property and Project and all other assets of
Borrower free from all liens and encumbrances except Permitted Exceptions; to pay promptly all Persons supplying work or materials for engineering or architectural services with respect to the Project and any construction of the Project; and to
promptly discharge by bond or otherwise, or make other arrangements acceptable to Lender with respect to, any mechanic’s, materialman’s or other lien filed against the Property or Borrower subject to Borrower’s rights to contest such
lien in accordance with the Loan Documents.  
 5.4 Taxes. To pay promptly when due and before the accrual of
penalties thereon all taxes, including all real and personal property taxes and assessments levied or assessed against Borrower or the Property, and all required contributions pursuant to applicable development approvals and to provide Lender with
receipted bills therefor if requested by Lender. Borrower may request advances from the Loan to pay such taxes, assessments and required contributions to the extent of the line item therefor in the Cost Budget. 

5.5 Insurance. To procure and maintain in effect for the benefit of Borrower and Lender (a) during the period of
construction, builder’s risk coverage in an amount not less than the full replacement cost of the Project (but not less than the guaranteed maximum price pursuant to the General Construction Contract), which shall be provided prior to the
earlier of delivery of building materials for, or construction of vertical portions of the buildings comprising part of the improvements within the Project; (b) at all times while Borrower is indebted to Lender, liability 

  
 Loan Agreement - Page 14

 
insurance in an amount reasonably acceptable to Lender and customarily provided for similar properties; (c) upon completion of the Project (or any building thereof) insurance on the Project
(or completed portion thereof) with an ISO Special Cause of Loss form, or its equivalent, for full replacement cost, without co-insurance, and business interruption insurance (including loss of rents) sufficient to provide proceeds to cover the
“Actual Loss Sustained” during restoration of any portion of the Project. Actual Sustained Loss shall mean projected gross revenues (less non-recurring expenses) for a period not less than twelve (12) months, as projected by Borrower,
subject to the commercially reasonable approval of Lender, and containing a 90-day extended period of indemnity endorsement; and (d) if any buildings located on the Property lie within a “special flood hazard area” as identified by
the Federal Emergency Management Agency (or successor governmental agency or authority performing such identification functions), flood insurance in an amount acceptable to Lender up to replacement cost (which in no event shall be less than the
coverage and maximum insurance amount available under the National Flood Insurance Program); and to name Lender as mortgagee and lender loss payee in all policies of fire and extended coverage, including business interruption coverage, and as an
additional insured under all liability policies relating to the Property and the Project. All policies must provide at least thirty (3) days prior written notice of cancellation to Lender (except in the case of nonpayment of premium, in which
case not less than ten (10) days’ prior written notice). At least ten (10) days prior to the expiration date of all such policies, Borrower shall provide Lender certificates evidencing such renewals thereof satisfactory to Lender;
however, in the event Borrower is then negotiating for an extension or replacement and so notifies Lender, no Default shall occur and no forced placement of insurance will be imposed by Lender so long as Borrower provides reasonably satisfactory
evidence during the period of such negotiation that all required coverages remain in effect. Borrower shall deliver to Lender receipts evidencing the payment of all such insurance policies and renewals. All providers shall have a long-term senior
debt rating of at least “A” by Standard and Poor’s Rating Service or an AM Best rating of AX (or better), unless (i) otherwise approved by Lender in its reasonable discretion or (ii) providers with such ratings are
unattainable in the then current insurance market in which case providers with ratings reasonably attainable in such market may be utilized during the period that such rated providers are unavailable, provided such lesser-rated providers will be
submitted to Lender for its approval, not to be unreasonably withheld. Except as otherwise provided in this Agreement, proceeds of any fire and extended coverage insurance shall be applied toward the repair or restoration of the Project or to the
payment of Borrower’s indebtedness to Lender, at Lender’s option. At all times Borrower will maintain with Lender satisfactory evidence of current coverage complying with the terms hereof, consisting of Acord 28 and Acord 25 forms, or,
upon Lender’s request, copies of policies. If Lender requests a copy of any policy, it will provide reasonable notice to Borrower and initially only the lead policy of any multi-tiered insurance coverage will be required unless Lender in its
reasonable discretion, upon review of the lead policy, requests any other policy in order to confirm that the required coverages are in effect or the terms and conditions of such coverages. Borrower hereby authorizes Lender to make any claim for,
receive payment for, and execute and endorse any documents, checks or other instruments in payment for loss, theft, or damage under any such insurance policy subject to the provisions of the Mortgage. 

5.6 Fees. To pay a commitment fee to Lender of one-half percent (1/2%) of the maximum Loan amount, which fee is due
and fully earned upon the date of this Agreement, and all other customary out-of-pocket loan and inspection fees of Lender, all fees and charges of the Inspector and all expenses involved in perfecting the lien status or priority of the Mortgage and
 

  
 Loan Agreement - Page 15

 
all other out-of-pocket expenses of Lender directly related to the Loan or the protection and preservation of the Property or Project or the enforcement of any provision of this Agreement,
including, without limitation, recording fees and taxes, intangibles taxes, documentary stamp taxes, tax, title and lien search charges, title insurance charges, architect’s, engineers’ and reasonable attorneys’ fees (including
reasonable attorneys’ fees at trial and on any appeal by either Borrower or Lender), real property taxes and insurance premiums, and to indemnify against, and hold Lender harmless from, any loss, or liability on account of any claim by any
party arising out of the Loan or Lender’s interest in or lien upon the Property or the Project, unless such claim results from the gross negligence or willful misconduct of Lender. WITHOUT LIMITATION, THE FOREGOING INDEMNITY APPLIES TO
MATTERS WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE NEGLIGENCE OF LENDER BUT NOT TO THE EXTENT THAT THE SUBJECT OF THE INDEMNIFICATION IS CAUSED BY OR ARISES OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LENDER. 

5.7 Deficiencies. If Lender reasonably determines that the Loan is not In Balance, Lender may require that Borrower
bring the Loan In Balance within ten (10) business days of Lender’s written demand by either (i) expending an amount of Borrower’s funds for items included in the Cost Budget sufficient to bring the Loan In Balance and provide
evidence reasonably satisfactory to Lender of such expenditures, or (ii) depositing with Lender sufficient funds to bring the Loan In Balance. Lender shall be under no obligation to make any further advances until the Loan is In Balance.

 5.8 Reports and Notices. To furnish promptly to Lender such information as Lender may reasonably require
concerning costs, progress of construction, marketing, and such other factors as Lender may reasonably require with respect to the Project; to notify Lender promptly in writing of any litigation instituted or overtly threatened in writing against
Borrower, any liens filed by the Internal Revenue Service against Borrower or the Property, any audits of any Federal or state tax return of Borrower, and the results of any such audit; to notify Lender promptly in writing of any condemnation or
similar proceedings with respect to all or any part of the Property or Project, or any proceeding seeking to enjoin the intended use of the Property or construction of the Project, and of all changes in governmental requirements pertaining to the
Property or the Project, utility availability, anticipated costs of the Project, and any other matters which could reasonably be expected to materially adversely affect Borrower’s ability to perform its obligations under this Agreement, as any
such matters become known to Borrower. 
 5.9 Books and Records. To maintain complete and accurate account books
and records with respect to the Loan, the Property and the construction of the Project, which books and records shall reflect the consistent application of accepted accounting methods, and to make such books and records available at reasonable times
for inspection and copying by Lender or its agent, with Lender paying its own expenses of inspection and copying. 
 5.10
Access and Promotion. To permit Lender and its agents to have access to and the right to inspect the Property and the Project during normal business hours upon reasonable notice to Borrower and to name Lender on any construction
signage at the Property identifying Lender as providing construction financing for the Project, if requested by Lender and permitted under local sign ordinances. 

  
 Loan Agreement - Page 16

 5.11 Indebtedness. To duly and promptly pay all Borrower’s indebtedness
to Lender according to the terms of this Agreement and the other Loan Documents, to duly and promptly pay all other indebtedness of Borrower, and to incur no other indebtedness in any manner secured in whole or in part by the Property, the Project
or any income to be derived therefrom. 
 5.12 Future Financial and Operating Statements. To furnish to Lender the
following financial information: 
 (a) Within ninety (90) days of the end of each calendar year, a balance sheet and a
statement of income and expenses of Borrower, prepared in accordance with generally accepted accounting principles (or other approved accounting method acceptable to Lender), consistently applied, which statements shall be certified by Borrower as
true and correct in all material respects. 
 (b) Within ninety (90) days of the end of each calendar year, a balance
sheet of Guarantor, prepared in accordance with tax basis accounting principles (or other approved accounting method acceptable to Lender), consistently applied, which statements shall be certified by Guarantor as true and correct in all material
respects. 
 (c) Within forty-five (45) days of the end of each calendar quarter, after commencement of leasing of the
Project, a current operating statement and rent roll for the Project, in form reasonably satisfactory to Lender, certified by Borrower. 

(d) Within ten (10) business days of filing, the current federal income tax return of Borrower (or its Affiliate with
which Borrower’s income is included), including all schedules. 
 (e) Within forty-five (45) days of the end of
each calendar quarter, any available quarterly update of the Mill Creek Residential Trust, LLC portfolio status report. 
 5.13
Maintain Existence. To maintain its existence and good standing in each state in which its business or assets makes qualification necessary; not to permit any change in ownership or management of Borrower, or in other Persons owning
Borrower directly or indirectly, from that set forth in Schedule 4.1 except for Permitted Transfers; not to convey, transfer, or lease any substantial part of its property, assets, or business to any other Person except in the normal course
of its business; not to engage in any business enterprise other than ownership and leasing of the Property and construction of the Project as provided in this Agreement; not to incur any debt for borrowed money, either as a primary obligor or as a
guarantor or surety, except for the Loan; not to merge or consolidate, or permit any such constituent entity to merge or consolidate, with or into any other firm or corporation or enter into any partnership or joint venture with any other Person
except with Lender’s prior written consent; and not to make any loans or advances to any other Person, except extensions of credit in the normal course of business (including to Manager or General Contractor in connection with the Project).
Notwithstanding the foregoing, all Permitted Transfers will be allowed without Lender’s consent, and Investor will have the right to remove and replace the Mill Creek Member as the operating member of Borrower with either Investor or an
operating member owned and controlled by Investor in accordance with the terms and conditions of Borrower’s operating agreement, upon prior written notice to Lender.  

  
 Loan Agreement - Page 17

 5.14 Maintain Single Purpose Entity Status. Borrower shall not: 

(A) Engage in any business or activity other than the ownership, leasing, operation and maintenance of the Mortgaged Property and the Project
and activities incidental thereto; 
 (B) Acquire or own any material assets other than (i) the Mortgaged Property and (ii) such
incidental machinery, equipment, fixtures and other personal property as may be necessary for the operation of the Mortgaged Property; 

(C) Merge into or consolidate with any Person or dissolve, terminate or liquidate in whole or in part, transfer or otherwise dispose of all or
substantially all of its assets (except as permitted in the Loan Documents) or change its legal structure (except for Permitted Transfers or as otherwise permitted under the Loan Documents), without in each case Lender’s consent; 

(D) Fail to preserve its existence as a limited liability company validly existing and in good standing under the laws of the jurisdiction of
its organization or formation, or without the prior written consent of Lender, amend, modify, terminate or fail to comply with the provisions of its articles of organization, as same may be further amended or supplemented, if such amendment,
modification, termination or failure to comply would adversely affect its ability to perform its obligations under any Loan Document; 
 (E)
Own any subsidiary or make any investment in, any Person without the consent of Lender, except for any investments in investment-grade securities; 

(F) Commingle its funds or assets with the assets of any of its members or Affiliates or with the assets of any other Person or entity,
excluding any distributions or other payments made to its members or Affiliates in accordance with the Loan Documents; 
 (G) Incur any
debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than the Loan, trade payables incurred in the ordinary course of business, guarantees in connection with the construction of the improvements,
obligations for taxes paid when due and any indemnity required by the Title Company in connection with the Loan, the mortgagee title policy or endorsements required hereunder or the construction of the Project; 

(H) Fail to maintain its records, books of account and bank accounts separate and apart from those of its members and Affiliates, the
Affiliates of any of its members, and any other Person or entity; 
 (I) Except for the General Construction Contract, any management
agreement with Manager or the development agreement with the Mill Creek Member, enter into any contract or agreement with any of its members or Affiliates, or the Affiliates of any of its members, except upon terms and conditions that are
intrinsically fair and substantially similar to those that would be available on an arms-length basis with third parties; 

(J) Seek its dissolution or winding up in whole, or in part; 

  
 Loan Agreement - Page 18

 (K) Maintain its assets in such a manner that it will be costly or difficult to segregate,
ascertain or identify its individual assets from those of any of its members and Affiliates, the Affiliates of any of its members, or any other person or entity; 

(L) Hold itself out to be responsible for the debts of another person or entity, except for any guaranties, sureties or bonds provided by
Borrower in connection with the construction of the Project; 
 (M) Make any loans or advances to any third party, including any of its
members or Affiliates, or the Affiliates of any of its members (except for General Contractor or any Manager); 
 (N) Fail to file its own
tax returns except to the extent the Borrower is a member of a consolidated taxpayer group that files such returns and Borrower reconciles and pays its own tax liabilities directly or by reimbursement to the group; 

(O) Agree to, enter into or consummate any transaction which would render it unable to confirm that (i) it is not an “employee
benefit plan” as defined in Section 3(32) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) it is not subject to state statutes regulating
investments and fiduciary obligations with respect to governmental plans; and (iii) less than twenty-five percent (25%) of each of its outstanding class of equity interests are held by “benefit plan investors” within the meaning
of 29 C.F.R. § 2510.3-101(f)(2), as modified by Section 3(42) of ERISA; 
 (P) Fail either
to hold itself out to the public as a legal entity separate and distinct from any other person or entity or to conduct its business solely in its own name, in order not (i) to mislead others as to the identity with which such other party is
transacting business, or (ii) to suggest that it is responsible for the debts of any third party (including any of its members or Affiliates, or any general partner, principal or Affiliate thereof); or 

(Q) Make distributions to members such as would result in the failure to maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its contemplated business operations. 
 5.15 Changes to
Property. To authorize or permit no changes to the Property or the zoning or subdivision thereof that would be inconsistent with the Project without the prior written consent of Lender and not consent to the formation of any district that
would impose any additional assessments upon the Property (an “Assessment District”) without the prior written consent of Lender. Nothing herein is intended to result in a breach by Borrower if the Assessment District can be and is imposed
upon Borrower and the Property without the necessity of Borrower’s consent. Lender’s consent shall not be unreasonably withheld, conditioned or delayed to an Assessment District if any additional costs are adequately supported by projected
operating income from the Project and does not materially decrease the value of the Project. 
 5.16 Changes to Plans and
Specifications or General Construction Contract. To authorize or permit no changes to the Plans and Specifications or General Construction Contract (which shall include any change in the amount of any guaranteed maximum cost, or any
increase due to the floating nature of such guaranteed maximum amount that would result in the 

  
 Loan Agreement - Page 19

 
maximum cost, including the General Contractor fee, exceeding $34,589,731) without the prior written consent of Lender, which shall not be unreasonably withheld, conditioned or delayed, and all
governmental authorities having jurisdiction to the extent such approval is required by law or regulation. Notwithstanding the foregoing, Lender’s approval shall not be required for a change order so long as the Loan remains In Balance for any
change order (i) involving less than $50,000 in cost, as long as the aggregate value of all change orders made without Lender’s consent (including the change order under consideration) has not exceeded $500,000, and the requested change
does not materially alter the scope or quality of the Project, (ii) required by governmental authorities, or (iii) that does not result in an increase in the guaranteed maximum amount of the General Construction Contract (including the
General Contractor fee) above $34,589,731. Borrower will promptly provide Lender a copy of each change order. If the change order would result in the Loan not being In Balance, Borrower will bring the Loan In Balance as provided in
Section 5.7. 
 5.17 Comply with Other Loan Documents. To perform all its obligations under the Note and
other Loan Documents. 
 5.18 List of Contractors, Subcontractors, and Materialmen. To notify Lender promptly upon
Lender’s written request of the names and addresses of all contractors, subcontractors and materialmen who are employed in connection with the construction of the Project, and whose names and addresses were not heretofore supplied to Lender.
Lender shall have the right to approve any subcontractor having any contract or contracts for the Project with an aggregate cost of $1,000,000 or more; provided that Lender has approved the subcontractors identified on Schedule 5.18 as of the
date hereof. Upon request by the Lender, the General Contractor must provide a report satisfactory to Lender analyzing all subcontractors with contracts of $1,000,000 or more, performed by the McGladrey Firm. Lender shall have no approval rights
over subcontractors with subcontracts of less than $1,000,000. 
 5.19 Completion. Within one hundred twenty
(120) days after completion of the Project, Borrower will provide Lender with an ALTA/ACSM as-built survey (with such Table A items as shall be designated by Lender) and photographs of the completed Project, its architect’s certificate of
substantial completion in all material respects in accordance with the Plans and Specifications, copies of certificates of occupancy, copies of all licenses, permits and other authorizations as may be necessary for the intended use, leasing and
occupancy of the Project, a copy of its form tenant lease (which shall thereafter following Lender’s approval be used for all leases unless any material change to such form is first submitted to and approved by Lender, which approval shall not
be unreasonably withheld, conditioned or delayed), and a final lien waiver from the General Contractor and its affidavit that it has fully paid all subcontractors, laborers and materialmen, and such other lien waivers as Lender may request.

 5.20 Construction Accounts. To establish and maintain the Borrower’s construction account, being the
account from which all amounts under the Cost Budget are to be paid. 
 5.21 Dividends, Distributions and
Redemptions. Not declare or pay any distributions to its members or managers, as applicable, or purchase, redeem, retire, or otherwise acquire for value, any ownership interests in Borrower now or hereafter outstanding, return any capital to
its members or managers, as applicable, or make any distribution of assets to its members or managers, as applicable (any of the foregoing, a “Distribution”), unless, at the time  

  
 Loan Agreement - Page 20

 
of any Distribution, no Event of Default exists that has not been cured, the Project has been completed in all material respects in accordance with the Plans and Specifications and all
construction and related costs thereof have been paid and leasing has commenced, and such Distribution is made solely from Net Cash Flow that has not previously been distributed. 

5.22 Further Assurances. At Lender’s request, to execute and deliver to Lender all further documents and
perform all other acts which Lender reasonably deems necessary or appropriate to perfect or protect its security for the Loan so long as such documents and/or acts do not increase Borrower’s obligations or limit the rights of Borrower under the
Loan Documents. 
 ARTICLE VI 

EVENTS OF DEFAULT 

The occurrence of any of the events listed in this Article shall constitute an Event of Default under this Agreement: 

6.1 Nonpayment of Indebtedness. Failure of Borrower to make (a) any payment of interest or principal due
pursuant to the Note within ten (10) days following the date due, or (b) any payment of any other sum due pursuant to the Loan Documents as and when due and such failure (as to payment of sums other than principal or interest) is not cured
within ten (10) days following written notice from Lender, all whether the payment is due by acceleration or otherwise under the terms of the Note, Mortgage, this Agreement, or any other Loan Documents. 

6.2 Assignment or Conveyance. Assignment by Borrower of this Agreement, any rights hereunder, or any advance to be
made hereunder, or the conveyance, lease, mortgage, or any other alienation or encumbrance of the Property or the Project or any interest therein (other than Permitted Exceptions or as expressly authorized herein or in any of the other Loan
Documents) without the prior written consent of Lender. 
 6.3 Foreclosures or Liens. The institution of a
foreclosure action against the Property or the Project or any part thereof, or the filing of a lien against the Property or the Project or any part thereof, which is not being contested in accordance with the Loans Documents or removed of record,
bonded off, or dismissed within thirty (30) days after Borrower is notified in writing by Lender or otherwise of such filing.  

6.4 Misrepresentation. If any written certificate, statement, representation or warranty heretofore or hereafter
furnished by or on behalf of Borrower or Guarantor pursuant to or in connection with this Agreement, any other Loan Document (including, without limitation, representations and warranties contained herein, but subject, in the case of any
reaffirmation deemed made as of each Loan advance, to the provisions of Section 4.10 hereof) or as an inducement to Lender to extend any credit to Borrower proves to have been false in any material respect at the time as of which the facts
therein set forth were stated or certified or to have omitted any material fact (including, without limitation, any substantial contingent or unliquidated liability or claim or any fact necessary to make such information not materially
misleading. 

  
 Loan Agreement - Page 21

 6.5 Failure to Complete Project. Failure by Borrower to complete
construction of the Project, and obtain a certificate of occupancy or other final governmental approval required for the Project, on or before the Required Completion Date (as extended as a result of a Force Majeure Event). 

6.6 Failure to Insure. Failure or refusal by the Title Company, by reason of any matter affecting title to the Property
or the Project, to insure any Loan advance as giving rise to a valid first lien, subject only to those exceptions previously approved by Lender, which failure is not cured within ninety (90) days following written notice from Lender to
Borrower. 
 6.7 Failure to Perform Obligations. Failure by Borrower to perform, in any material respect, any
term, condition or covenant herein or in any other Loan Document (other than as specified in Sections 6.1 through 6.6 above), which failure is not cured within thirty (30) days after written notice thereof from Lender to Borrower; provided,
however, that if such failure is not reasonably capable of cure within such thirty (30) days but within such period the Borrower commences a cure and provides written notice thereof to Lender and thereafter diligently pursues a cure, the period
will be extended for so long as Borrower is diligently pursuing a cure but not longer than ninety (90) days from such original written notice. 

6.8 Voluntary Insolvency Proceeding. The filing by Borrower or Guarantor of a voluntary petition, or the adjudication of
Borrower or Guarantor, or the filing by Borrower or Guarantor of any petition or answer seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself under any present or
future federal, state or other statute, law or regulation relating to bankruptcy, insolvency or other relief for debtors, or if Borrower or Guarantor should seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator
for itself or of all or any substantial part of its property or of any or all of the rents, revenues, issues, earnings, profits or income thereof, or the mailing of any general assignment for the benefit of creditors, or the admission in writing by
either Borrower or Guarantor of its inability to pay its debts generally as they become due. 
 6.9 Involuntary
Insolvency Proceeding. The entry by a court of competent jurisdiction of an order, judgment, or decree approving a petition filed against Borrower or Guarantor which petition seeks any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any present or future federal, state or other statute, law or regulation relating to bankruptcy, insolvency, or other relief for debtors, which order, judgment or decree remains unvacated and unstayed
for an aggregate of ninety (90) days (whether or not consecutive) from the date of entry thereof, or the seeking or consenting to the appointment of any trustee, receiver or liquidator of Borrower or Guarantor or of all or any substantial part
of its properties or of any or all of the rents, revenues, issues, earnings, profits or income thereof which appointment shall remain unvacated and unstayed for an aggregate of ninety (90) days (whether or not consecutive). 

6.10 Post-Closing Requirements. Any failure to timely provide the Post-Closing Items in form and content reasonably
satisfactory to Lender. 
 6.11 Event of Default. Any Event of Default as defined in any other Loan Documents. 

  
 Loan Agreement - Page 22

 Borrower has requested that Lender send to Investor a copy of any notice of Default or Event of
Default at the address of Investor set forth in this Agreement. Investor may elect to cure or attempt to cure such Default or Event of Default within the same period as allowed Borrower pursuant to this Agreement, but shall not be obligated to do
so. Lender will accept performance by Investor under this Section as if performed by Borrower. Upon the timely cure in accordance with the terms of this Section, the Loan shall be fully reinstated. 

ARTICLE VII 
 REMEDIES
UPON DEFAULT 
 Lender may elect in its discretion to refuse to fund all or any part of a requested advance of the Loan if an Event
of Default exists or a monetary Default exists. Lender may also elect to refuse to fund all or any part of a requested advance of the Loan if any non-monetary Default exists, which does not yet constitute an Event of Default due to a stated cure
period not having expired, if the Lender in its discretion, acting in good faith, considers such non-monetary Default to be material and so notifies Borrower. Upon the occurrence and during the continuance of any Event of Default, Lender shall also
have the absolute right in its sole discretion to exercise alternatively or cumulatively any or all of the remedies set forth in this Article. 

7.1 Termination. Cancel Lender’s obligations to make further advances pursuant to this Agreement by written notice
to Borrower. Upon the occurrence of any event in Sections 6.8 or 6.9 such cancellation shall occur automatically without notice. 

7.2 Specific Performance. Institute appropriate proceedings to specifically enforce performance of the terms and
conditions of this Agreement. 
 7.3 Taking of Possession. To the extent permitted by applicable law, take
immediate possession of the Property and the Project as well as all other Mortgaged Property as is necessary to fully complete all on-site and off-site improvements required by the Plans and Specifications and complete the construction and equipping
of the Project and do anything in its sole judgment to fulfill the obligations of Borrower hereunder, including availing itself of and procuring performance of existing contracts, amending the same, or entering into new contracts with the same
contractors or others and employment of watchmen to protect the Property and the Project from injury. Without restricting the generality of the foregoing and for the purposes aforesaid, Borrower hereby authorizes Lender to complete construction and
equip the Project, to use unadvanced Loan funds or funds which Borrower may have deposited with Lender pursuant to this Agreement, or to advance funds in excess of the Loan amount (and Borrower agrees to reimburse Lender for any expenses of such
completion which exceed undisbursed Loan funds reasonably necessary or appropriate to complete the Project in substantially the manner contemplated by the Plans and Specifications) to complete the Project; to pay all taxes and assessments on the
Property or the Project not paid by Borrower when due and to add the amounts of any such payments to the amount of indebtedness secured by the Security Documents; to make changes in the Plans and Specifications which shall be reasonably necessary or
appropriate to complete the Project in substantially the manner contemplated by the Plans and Specifications; to retain or employ new general contractors, subcontractors, architects, engineers and inspectors as shall be required for said purposes;
to pay, settle, or compromise all bills and claims, which may be incurred in connection with constructing and equipping the Project; to purchase any fixtures, equipment, machinery, furniture or any other personal property 

  
 Loan Agreement - Page 23

 
as may be necessary or desirable for the completion of the construction and equipping of the Project or for the clearance of title; to execute all applications and certificates in the name of
Borrower which may be required; to prosecute and defend all actions or proceedings in connection with the Property or the Project, fixtures, equipment, machinery, furniture or any other personal property; and to do any act which Borrower might do in
its own behalf relating to the Property or the Project. WITHOUT LIMITATION, THE FOREGOING REIMBURSEMENT OBLIGATION APPLIES TO MATTERS WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE NEGLIGENCE OF LENDER BUT NOT TO THE EXTENT THAT THE
SUBJECT OF THE INDEMNIFICATION IS CAUSED BY OR ARISES OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LENDER. 
 7.4
Receivership. After giving such notice to Borrower as may be required by applicable law, appoint or seek appointment of a receiver, without further notice and without regard to the solvency of Borrower or the adequacy of the
security, for the purpose of preserving the Property and the Project, preventing waste to the Project, and to protect all rights accruing to Lender by virtue of this Agreement and the Mortgage, and expressly to make any and all further improvements,
whether on-site or off-site, as Lender may determine to be necessary to complete the development and construction of the Project. All expenses incurred in connection with the appointment of such receiver, or in protecting, preserving, or improving
the Property, shall be charged against Borrower and shall be secured by the Mortgage and enforced as a lien against the Property and the Project. 

7.5 Acceleration. Accelerate maturity of the Note and any other indebtedness of Borrower to Lender, and demand
payment of the principal sum due thereunder, with interest, advances, actual, out-of-pocket costs, and reasonable attorneys’ fees, and enforce collection of such payment by foreclosure of the Mortgage or the enforcement of any other Loan
Documents. 
 7.6 Other. Exercise any other right, privilege or remedy available to Lender as may be
provided by the Loan Documents or under applicable law. 
 ARTICLE VIII 

MISCELLANEOUS 

8.1 Conflicting Provisions. In the event of a conflict between any of the provisions of the Mortgage, Note, or any
other document evidencing or securing the Loan, and this Agreement, the provisions of this Agreement shall control. 
 8.2
Exclusiveness. This Agreement, the Note and the other Loan Documents are made for the sole protection of Borrower and Lender, and their permitted successors and assigns, and no other Person shall have any right of action
hereunder. 
 8.3 Notice. All notices provided for herein shall be given personally, by mail or by
overnight courier service, addressed to the appropriate party at the address hereafter designated for such party, or such other address as the party who is to receive such notice may designate in writing. Notice by mail shall be by certified mail,
addressed to the party with the proper amount of postage affixed thereto and shall be deemed received three (3) days after the date sent in the manner aforesaid. Notice by overnight courier shall be sent prepaid and shall be deemed received on
the business day after the date sent. Actual receipt of notice shall not be required to effect notice hereunder. 

  
 Loan Agreement - Page 24

 If to Borrower: 

GGT Spring Town TX, LLC 
 c/o Mill
Creek Residential Trust LLC 
 5225 Katy Freeway, Suite 103 

Houston, Texas 77007 
 Attention:
Mr. Jeb Cox 
 with copies to: 

GGT Spring Town TX, LLC 
 c/o Mill
Creek Residential Trust, LLC 
 949 South Coast Drive, Suite 400 

Costa Mesa, California 92626 

Attention: Mr. Eric Lezak 

GGT Spring Town TX, LLC 
 c/o
Mill Creek Residential Trust LLC 
 200 East Robinson Street 

Suite 210 
 Orlando, Florida 32801

 Attention: Mr. Alan Kolar 

Michelle R. Brown, Esq. 
 Jones
Day 
 2727 North Harwood Street 

Dallas, Texas 75201 
 and with a
copy to Investor of any notice of Default or Event of Default to: 
 GGT Spring Town Holdings, LLC 

c/o CNL Center at City Commons 

450 South Orange Avenue 
 Orlando,
Florida 32801 
 Attention: Rosemary Q. Mills, Chief Financial Officer 

Attention: Scott Hall 
 GGT
Spring Town Holdings, LLC 
 c/o CNL Center at City Commons 

450 South Orange Avenue 
 Orlando,
Florida 32801 
 Attention: Holly J. Greer, Esq., General Counsel 

Lowndes, Drosdick, Doster, Kantor & Reed, P.A. 

450 South Orange Avenue, Suite 200 

Orlando, Florida 32801 

  
 Loan Agreement - Page 25

 Attention: Joaquin E. Martinez, Esq. 

and with a copy to Guarantor of any notice of Default or Event of Default to: 

GGT Spring Town TX, LLC 
 c/o
Mill Creek Residential Trust, LLC 
 949 South Coast Drive, Suite 400 

Costa Mesa, California 92626 

Attention: Mr. Eric Lezak 

MCRT West Assurance XIX LLC 
 200
East Robinson Street 
 Suite 210 

Orlando, Florida 32801 

Attention: Mr. Alan Kolar 

If to Lender: 
 Synovus Bank

 800 Shades Creek Parkway, Suite 325 

Birmingham, Alabama 35209 

Attention: Andy Hudson 
 With a
copy to: 
 Dwight L. Mixson, Jr. 

Burr & Forman LLP 
 420
North 20th Street 
 Suite 3400 

Birmingham, Alabama 35203 

8.4 Governing Law and Jurisdiction. This Agreement, the Note and other Loan Documents, and the rights and
obligations of the parties thereto, shall be construed and interpreted in accordance with the laws of the State of Texas. Borrower consents to the jurisdiction of the federal and state courts presiding in Harris County, Texas in any action to
enforce this Agreement or any other Loan Documents. Nothing herein shall limit the jurisdiction of any other court. 
 8.5
Modification and Waiver. No provisions of this Agreement shall be amended, waived or modified except by an instrument in writing signed by the party to be bound. 

8.6 Materiality. All representations and warranties made herein and in the Loan Documents shall be deemed to have
been material and relied on by Lender and shall survive the execution and delivery of the Note and the Loan Documents and the disbursements and advances of funds made pursuant to this Agreement. 

8.7 Headings. All descriptive headings of articles and sections in this Agreement are inserted for convenience only,
and shall not affect the construction or interpretation hereof. 

  
 Loan Agreement - Page 26

 8.8 Severability. Inapplicability or unenforceability of any provisions
of this Agreement shall not limit or impair the operation or validity of any other provision of this Agreement. 
 8.9
Counterparts. This Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be an original, but such counterparts shall together constitute one and the same instrument. 

8.10 Assignability. Neither this Agreement, nor any rights or obligations hereunder, nor any advance to be made
hereunder, is assignable by Borrower. Borrower will not convey or encumber the Property or Project, or any part thereof, by mortgage or other lien (other than Permitted Exceptions or as expressly authorized in this Agreement or any of the other Loan
Documents) without the prior written consent of Lender. The rights of Lender under this Agreement are assignable in part or wholly in connection with the sale of the Loan with the prior written consent of Borrower, and any assignee of Lender shall
succeed to and be possessed of the rights of Lender hereunder to the extent of the assignment made, including the right to make advances to Borrower or any approved assignee of Borrower in accordance with this Agreement. If Loan is only sold in
part, Lender shall remain as the servicer of the Loan. Notwithstanding the foregoing, nothing herein shall restrict Lender’s right to sell the Loan without consent of Borrower in whole or part to any purchaser if (i) the Loan is fully
funded, (ii) an Event of Default has occurred and continues to exists, or (iii) Lender is required to sell the Loan (or part thereof) by any regulatory authority having jurisdiction over Lender. No sale of the Loan shall release Lender
from its obligation to fund the Loan in accordance with and subject to the conditions of the Loan Documents or obligate Borrower for any increase in obligations or additional expenses. 

8.11 No Agency Relationship. Lender is not the agent or representative of Borrower and this Agreement shall not make
Lender liable to materialmen, contractors, craftsmen, laborers or others for goods delivered to or services performed by them upon the Property, or for debts or claims accruing to such parties against Borrower and there is no contractual
relationship, either expressed or implied, between Lender and any materialmen, subcontractors, craftsmen, laborers, or any other Person supplying any work, labor or materials for the Project or the Property. 

8.12 Waiver. No course of dealing and no delay or omission by Lender in exercising any right or remedy hereunder or
with respect to any indebtedness of Borrower to Lender shall operate as a waiver thereof or of any other right or remedy and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise of any other
right or remedy. Lender may remedy any default by Borrower to Lender or any other Person in any manner without waiving the default remedied and without waiving any other prior or subsequent default by Borrower in the event that Borrower shall fail
to remedy such default and shall be reimbursed for any and all of its reasonable out-of-pocket expenses in so remedying such default, together with interest from the date of written notice for reimbursement from Lender to Borrower until repaid at a
rate equal to the Default Rate, as set forth in the Note. All rights and remedies of Lender hereunder are cumulative. 

  
 Loan Agreement - Page 27

 8.13 Collateral Assignment. Borrower hereby collaterally assigns to
Lender all Borrower’s right, title, and interest in: 
 (A) The Plans and Specifications, 

(B) Borrower’s books and records relating to the Property or construction of the Project, 

(C) To the extent assignable without the consent of a third party that has not been obtained, all applications, licenses, permits, water and
sewer allocations or rights, and other rights and commitments now in existence or hereafter made or issued relating to the Property or the Project or any future refinancing thereof, and 

(D) To the extent assignable without the consent of a third party that has not been obtained, all contracts now or hereafter made by Borrower
relating to the Property or the construction, equipping, marketing, management, sale or lease of all or any part of the Property or the Project, including, without limitation, architectural, engineering and construction contracts. 

Borrower agrees that, upon any Event of Default under this Agreement, Lender shall have the absolute right to exercise its remedies that are or may be
available under the Uniform Commercial Code and to complete or allow others to complete the Project, and, as to any such property which is also the subject of a security agreement or financing statement in favor of Lender, that Lender will not be
limited to remedies available under the Uniform Commercial Code, but may at its option avail itself of the rights granted herein in addition to or in substitution for its Uniform Commercial Code remedies to the extent available under applicable law.
Such collateral assignment shall not restrict Borrower’s use thereof to complete the Project. 
 8.14 Termination of
Commitment. Any commitment letter or term sheet shall terminate upon the execution of this Agreement. Without limiting the foregoing, to the extent any provision of any commitment letter or term sheet shall conflict with the terms of
this Agreement or other Loan Documents, this Agreement and the other Loan Documents shall control. 
 8.15 Participation
and/or Syndication. Lender may sell one or more participation or syndication interests in all or any part of the Loan as determined by Lender in its discretion to one or more banks or financial institutions upon terms acceptable to Lender;
provided that (a) Lender shall remain solely responsible to Borrower for the performance of its original obligations under the Loan Documents, (b) Borrower shall continue to deal solely and directly with Lender in connection with
Lender’s rights and obligations under the Loan Documents, and (c) such participants shall have no right of set-off. Notwithstanding the foregoing, nothing herein shall restrict Lender’s right to sell the Loan in whole or part to any
purchaser if (i) the Loan is fully funded, (ii) an Event of Default has occurred and continues to exists, or (iii) Lender is required to sell the Loan (or part thereof) by any regulatory authority having jurisdiction over Lender. No
sale of the Loan shall release Lender from its obligation to fund the Loan in accordance with and subject to the conditions of the Loan Documents or result in increased obligations or expenses to Borrower. 

  
 Loan Agreement - Page 28

 8.16 Restoration and Repair of Property Damaged or Taken. Lender agrees that, upon
Borrower’s written request, the net proceeds of insurance or condemnation paid and received by Lender with respect to a casualty or taking of the Property or Project (after payment of Lender’s actual, out-of-pocket costs and expenses in
obtaining such proceeds) shall be deposited into an account with Lender and shall be made available to Borrower for repair or restoration of the Project, provided the following conditions are met: 

(a) At the time of such loss or damage and at all times thereafter while Lender is holding any portion of such proceeds, there
shall exist no Event of Default; 
 (b) The property, buildings, improvements and fixtures so damaged must be capable of
being restored to substantially their pre-existing condition and utility (with a value equal to or greater than prior to such loss or damage), not later than the later of the Required Completion Date or two hundred ten (210) days following the
date of the casualty or taking; 
 (c) Within one hundred twenty (120) days following the date of such loss or damage
and prior to any proceeds being disbursed to Borrower, Borrower shall have confirmed to Lender if Lender so requests that Borrower intends to restore the Project and shall have provided to Lender all of the following (to the extent not waived in
writing by Lender): 
 (i) copies of complete plans and specifications for restoration of the property, buildings,
improvements and fixtures damaged or taken to substantially the same condition and utility prior to such loss or damage, 

(ii) construction contract (which may be substantially similar to the General Construction Contract), providing for repair or
restoration of the improvements so damaged or taken, with a contractor (which may be the General Contractor) and on terms reasonably satisfactory to Lender, 

(iii) payment and performance bonds with respect to such contract (unless the contractor is General Contractor), on standard
AIA forms, naming Lender as obligee to the extent required by Lender for a material casualty or condemnation, 
 (iv)
builder’s risk insurance or property insurance for the full cost of construction with Lender named under a standard mortgagee loss-payable clause, 

(v) such additional funds as in Lender’s reasonable opinion are necessary to complete the repair and restoration as may be
required under Section 8.16(g), and 
 (vi) copies of all permits and licenses necessary to commence the work in
accordance with the plans and specifications; 
 (d) Lender may, at Borrower’s expense, retain an independent inspector
to review plans and specifications and completed construction and to certify all requests for disbursement; 
 (e) Borrower
shall be pursuing such work to completion; 

  
 Loan Agreement - Page 29

 (f) Each disbursement by Lender of such proceeds and deposits shall be funded in
accordance with and subject to the disbursement procedures and conditions set forth in this Agreement that apply to disbursement of the Loan; and 

(g) If, at any time during the course of such work, amounts held by Lender should be insufficient, in the reasonable judgment
of Lender, to pay for all remaining costs of the work, Borrower will within ten (10) business days of written notice from Lender either (i) deposit with Lender the amount of such estimated deficiency, such funds to be held and disbursed as
provided in this Agreement, or (ii) expend an amount of Borrower’s funds for the estimated deficiency and provide evidence reasonably satisfactory to Lender of such expenditures. 

In the event Borrower fails to timely make such election or having made such election fails to timely comply with the terms and conditions set forth herein,
Lender shall be entitled with notice but without consent from Borrower to apply such proceeds or the balance thereof at Lender’s option either (i) to the full or partial payment or prepayment of the indebtedness under the Note and other
Loan Documents in such order and manner as Lender may elect or (ii) to the repair and/or restoration of the property, buildings, improvements or fixtures damaged or taken. 

8.17 Non-Recourse Parties. Notwithstanding anything to the contrary contained in this Agreement, any other Loan
Documents, or otherwise, Lender shall have no recourse upon or against any property or assets of Mill Creek Residential Trust LLC, the Mill Creek Member, Investor or any of their past, present or future, direct or indirect, shareholders, partners,
members, managers, principals, directors, officers, agents, incorporators, affiliates (other than Borrower or Guarantor) or representatives (collectively, the “Non-Recourse Parties”) or any of their respective assets for payment or
collection of any amount, judgment, judicial process, arbitral award, fee or cost or for any other obligation or claim arising out of or based upon this Agreement or the Loan Documents. The Non-Recourse Parties shall not be subject to levy, lien,
execution, attachment or other enforcement procedure for the satisfaction of any of Lender’s rights or remedies under or with respect to this Agreement or the Loan Documents, in equity or otherwise. Lender shall not seek enforcement of any
judgment, award, right or remedy against any asset of any of the Non-Recourse Parties. The provisions of this Section 8.17 shall survive the termination of the Loan, this Agreement or the Loan Documents. The provisions of this Section 8.17
are hereby incorporated into all Loan Documents. 
 [Remainder of page left intentionally blank] 

  
 Loan Agreement - Page 30

 IN WITNESS WHEREOF, the manager of Borrower has caused this Agreement to be executed by
its duly authorized officer in the capacity of manager and on behalf of Borrower, and Lender has caused this Agreement to be executed by its duly authorized officer, as of the date first set forth above. 

 

			
	 SYNOVUS BANK, a Georgia state banking

corporation

		
	BY:	 	/s/ Andy Hudson
	Its	 	Andy Hudson

 [Signatures Continue on Following Page] 

  
 Loan Agreement -
Signature Page 

 
					
	BORROWER:
	
	 GGT SPRING TOWN TX, LLC,

a Delaware limited liability company

		
	BY: 	 	 MCRT Spring Town LLC,
 a Delaware
limited liability company,
 its operating member

			
		 	BY:	 	/s/ Eric Lezak
		 	Name:	 	Eric J. Lezak
		 	Its	 	Managing Director

 [End of Signatures] 

  
 Loan Agreement -
Signature Page 

 EXHIBITS 

A—Legal Description 
 B—Cost Budget 

SCHEDULES 
 2.7—Post-Closing Items 

4.1—Ownership and Management 
 5.18—Approved Major
Subcontractors 

  
 Loan Agreement - Exhibit
List Page 

 EXHIBIT A 

Legal Description 

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

 EXHIBIT B 

Cost Budget 
  

					
	 Cost Item
	  	Total	 
	 Construction Hard Costs
	  	$	32,671,444.00	  
	 General Contractor (GC) Fee
	  	 	1,918,287.00	  
	 Land
	  	 	5,096,520.00	  
	 Taxes
	  	 	200,000.00	  
	 Legal
	  	 	300,000.00	  
	 Closing Costs
	  	 	200,000.00	  
	 Financing
	  	 	330,218.00	  
	 Municipal Fees
	  	 	364,308.00	  
	 Architect
	  	 	700,000.00	  
	 Engineering and Surveying
	  	 	200,000.00	  
	 Preleasing
	  	 	150,000.00	  
	 Marketing
	  	 	700,000.00	  
	 Construction Interest
	  	 	616,410.00	  
	 Broker Fee
	  	 	76,448.00	  
	 Miscellaneous/Other
	  	 	25,000.00	  
	 Leaseup Operating Deficit
	  	 	528,605.00	  
	 Overhead/Development Fee
	  	 	1,333,981.00	  
	 Soft Cost Contingency
	  	 	388,780.00	  
		  	  
	  
	 
	 Total Project Cost
	  	$	45,800,000.00	  
		  	  
	  
	 

 SCHEDULE 2.7 

Post-Closing Items 

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

 SCHEDULE 4.1 

Ownership and Management 

Ownership 
  

					
	 GGT Spring Town Holdings, LLC
	  	 	95	% 
	 MCRT Spring Town LLC
	  	 	5	% 

 Management 
  

			
	Managing Member:	  	GGT Spring Town Holdings, LLC with day-to-day operations delegated to MCRT Spring Town LLC as Operating Member

 SCHEDULE 5.18 

Approved Contractors 

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

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