Common use of Purpose and Scope of the Company Clause in Contracts

Purpose and Scope of the Company. The Company was formed primarily to acquire (or enter into co-investments in), hold, operate, and dispose of investment real estate properties (the “Properties”) and to engage or participate in any other lawful related activities in which limited liability companies formed in the State of Delaware may engage or participate, as may be determined in the sole and absolute discretion of the Manager. It is the intent of the Members that the Company shall be at all times taxable as a REIT and thus shall be primarily engaged in the investment and reinvestment of its funds and other assets in real property, interests in real property, mortgages secured by real property, leasehold interests in real property, and interests in mortgages on real property. If, however, the Manager is of the opinion that investment in real estate assets at any particular time is not prudent because of market or economic conditions, the Trust’s assets may be maintained in cash or government securities, or both or any other investments which will not result in the Company losing its status as a REIT as now enacted or hereinafter amended. The Company shall not be primarily engaged in investing, reinvesting, or trading in securities. Notwithstanding the foregoing, the Members consent to the Manager revoking the Company’s status as a REIT and electing for the Company to be taxed as an Association if the Manager believes such action is appropriate in the Manager’s sole discretion.