Exhibit 10.6





 


SECOND AMENDED AND RESTATED


LIMITED LIABILITY COMPANY AGREEMENT


 


OF


 


BELL BR WATERFORD CROSSING JV, LLC


 


A DELAWARE LIMITED LIABILITY COMPANY


 




    	 



    	 



    

  


TABLE OF CONTENTS


 


	 	Page
	Section 1. Definitions	2
	Section 2. Organization of the Company	8
	2.1 Name	8
	2.2 Place of Registered Office; Registered Agent	8
	2.3 Principal Office	8
	2.4 Filings	8
	2.5 Term	8
	2.6 Expenses of the Company	8
	Section 3. Purpose	8
	Section 4. Reserved	9
	Section 5. Capital Contributions, Loans, Percentage Interests and Capital Accounts	9
	5.1 Capital Contributions	9
	5.2 Additional Capital Contributions	9
	5.3 Percentage Ownership Interest	10
	5.4 Return of Capital Contribution	10
	5.5 No Interest on Capital	11
	5.6 Capital Accounts	11
	5.7 New Members	12
	Section 6. Distributions	12
	6.1 Distribution of Distributable Funds	12
	6.2 Distributions in Kind	12
	Section 7. Allocations	12
	7.1 Allocation of Net Income and Net Losses Other than in Liquidation	12
	7.2 Allocation of Net Income and Net Losses in Liquidation	13
	7.3 U.S. Tax Allocations	13
	Section 8. Books, Records, Tax Matters and Bank Accounts	14
	8.1 Books and Records	14
	8.2 Reports and Financial Statements	14
	8.3 Tax Matters Member	15
	8.4 Bank Accounts	15
	8.5 Tax Returns	15
	8.6 Expenses	15
	Section 9. Management	15
	9.1 Management	15
	9.2 Affiliate Transactions	16
	9.3 Other Activities	16
	9.4 Operation in Accordance with REOC/REIT Requirements	17
	9.5 FCPA	19
	Section 10. Confidentiality	20
	Section 11. Representations and Warranties	21


 




    	 



    	 



    

  


	11.1 In General	21
	11.2 Representations and Warranties	21
	Section 12. Sale, Assignment, Transfer or other Disposition	24
	12.1 Prohibited Transfers	24
	12.2 Affiliate Transfers	24
	12.3 Admission of Transferee; Partial Transfers	25
	12.4 Withdrawals	26
	Section 13. Dissolution	26
	13.1 Limitations	26
	13.2 Exclusive Events Requiring Dissolution	27
	13.3 Liquidation	27
	13.4 Continuation of the Company	28
	Section 14. Indemnification	28
	14.1 Exculpation of Members	28
	14.2 Indemnification by Company	28
	14.3 General Indemnification by the Members	29
	Section 15. Sale Rights	29
	15.1 Push/Pull Rights	29
	15.2 Rights Upon Sale of TIC-2 Interest	31
	15.3 Enforcement	31
	Section 16. Miscellaneous	31
	16.1 Notices	31
	16.2 Governing Law	32
	16.3 Successors	33
	16.4 Pronouns	33
	16.5 Table of Contents and Captions Not Part of Agreement	33
	16.6 Severability	33
	16.7 Counterparts	33
	16.8 Entire Agreement and Amendment	33
	16.9 Further Assurances	33
	16.10 No Third Party Rights	34
	16.11 Incorporation by Reference	34
	16.12 Limitation on Liability	34
	16.13 Remedies Cumulative	34
	16.14 No Waiver	34
	16.15 Limitation On Use of Names	34
	16.16 Publicly Traded Partnership Provision	35
	16.17 Uniform Commercial Code	35
	16.18 No Construction Against Drafter	35


 




    	 



    	 



    

  


BELL BR WATERFORD CROSSING JV, LLC


 


SECOND AMENDED AND RESTATED LIMITED


LIABILITY COMPANY AGREEMENT


 


This SECOND AMENDED AND
RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) is adopted, executed and agreed to effective
on March 26, 2015, by and among BR Waterford JV Member, LLC, a Delaware limited liability company (“BR I”);
BR Waterford JV Minority Member, LLC, a Delaware limited liability company (“BR II”); Durant Holdings, LLC,
a North Carolina limited liability company (“Durant”); V BELLS LLC, a North Carolina limited liability company
(“VBells”); and Craig S. West, an individual (“West”), as Members (together, the “Members”),
and BR I, as Manager.


 


WITNESSETH :


 


WHEREAS, BR I and Bell
HNW Nashville Portfolio, LLC (“Bell”) entered into that certain Limited Liability Company/Joint Venture Agreement
of Bell BR Waterford Crossing JV, LLC, a Delaware limited liability company (the “Company”), on March 29, 2012,
as amended pursuant to that certain First Amendment to Limited Liability Company/Joint Venture Agreement for Bell BR Waterford
Crossing JV, LLC dated April 2, 2014 (the “Original LLC Agreement”);


 


WHEREAS, BR I assigned
a 0.1% Interest in the Company to BR II and BR II was admitted as a Member of the Company on December 3, 2014;


 


WHEREAS, pursuant to that
certain Redemption Agreement by and between Bell and the Company, among other parties, dated December 3, 2014, the Interest of
Bell was redeemed and Bell withdrew and ceased to be a Member of the Company and resigned as Manager of the Company;


 


WHEREAS, BR I and BR II
amended and restated the Original LLC Agreement in its entirety by virtue of that certain Amended and Restated Limited Liability
Company Agreement dated effective as of December 3, 2014 (the “Prior A&R Agreement”);


 


WHEREAS, the parties hereto
desire to amend, restate and replace the Prior A&R Agreement in its entirety and to enter into this Second Amended and Restated
Limited Liability Company Agreement to provide for, among other things, (i) the continuation of the Company, as reconstituted,
(ii) the admission of each of Durant, VBells and West as a member in exchange for their respective Capital Contributions as provided
herein, (iii) a restatement of the rights, obligations and duties of the Members to each other and to the Company, (iv) the allocation
of Net Income, Net Losses, credits and distribution of cash flow and other proceeds of the Company among the Members, (v) the respective
rights, obligations and interests of the Members to each other and to the Company, and (vi) certain other matters, all as hereinafter
provided; and


 


NOW, THEREFORE, in consideration
of the agreements and covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Members hereby covenant and agree that the Prior A&R Agreement is hereby amended and restated
in its entirety as follows:


 




    	 



    	 



    

  


Section 1.          Definitions. As
used in this Agreement:


 


“Act” shall mean the Delaware
Limited Liability Company Act (currently Chapter 18 of Title 6 of the Delaware Code), as amended from time to time.


 


“Adjusted Capital Account Deficit”
shall mean, with respect to any Member, the deficit balance, if any, in such Member’s Capital Account as of the end of the
applicable Fiscal Year after (i) crediting such Capital Account with any amounts which such Member is deemed to be obligated to
restore pursuant to Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), and (ii) debiting such Capital Account by the amount
of the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6). The foregoing definition of Adjusted Capital
Account Deficit is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted
consistently therewith.


 


“Advisor” shall mean any
accountant, attorney or other advisor retained by a Member.


 


“Affiliate” shall mean as
to any Person any other Person that directly or indirectly controls, is controlled by, or is under common control with such first
Person. For the purposes of this Agreement, a Person shall be deemed to control another Person if such Person possesses, directly
or indirectly, the power to direct or cause the direction of the management, policies and/or decision making of such other Person,
whether through the ownership of voting securities, by contract or otherwise. In addition, “Affiliate” shall include
as to any Person any other Person related to such Person within the meaning of Code Sections 267(b) or 707(b)(1).


 


“Agreed Upon Value” shall
mean the fair market value (net of any debt) agreed upon pursuant to a written agreement between the Members of property contributed
by a Member to the capital of the Company, which shall for all purposes hereunder be deemed to be the amount of the Capital Contribution
applicable to such property contributed.


 


“Agreement” shall mean this
Second Amended and Restated Limited Liability Company Agreement, as amended from time to time.


 


“Bankruptcy Code” shall
mean Title 11 of the United States Code, as amended, or any other applicable bankruptcy or insolvency statute or similar law.


 


“Bankruptcy/Dissolution Event”
shall mean, with respect to the affected party, (i) the entry of an Order for Relief under the Bankruptcy Code, (ii) the admission
by such party of its inability to pay its debts as they mature, (iii) the making by it of an assignment for the benefit of creditors
generally, (iv) the filing by it of a petition in bankruptcy or a petition for relief under the Bankruptcy Code or any other applicable
federal or state bankruptcy or insolvency statute or any similar law, (v) the expiration of sixty (60) days after the filing of
an involuntary petition under the Bankruptcy Code without such petition being vacated, set aside or stayed during such period,


 




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(vi) an application by such party for the appointment
of a receiver for the assets of such party, (vii) an involuntary petition seeking liquidation, reorganization, arrangement or readjustment
of its debts under any other federal or state insolvency law, provided that the same shall not have been vacated, set aside or
stayed within sixty (60) days after filing, (viii) the imposition of a judicial or statutory lien on all or a substantial part
of its assets unless such lien is discharged or vacated or the enforcement thereof stayed within sixty (60) days after its effective
date, (ix) an inability to meet its financial obligations as they accrue, or (x) a dissolution or liquidation.


 


“Bell Control Party” shall
mean any person holding a senior management position and ownership interest in Bell Partners Inc. at the time of a proposed Transfer
by Durant or VBells (or an entity that is wholly-owned by one or more of such senior management personnel).


 


“Beneficial Owner” shall
have the meaning provided in Section 5.7.


 


“BR I” shall have the meaning
set forth in the recitals.


 


“BR I Transferee” shall
have the meaning set forth in Section 12.2(b)(i).


 


“BR II” shall have the meaning
set forth in the recitals.


 


“BR II Transferee” shall
have the meaning set forth in Section 12.2(b)(ii).


 


“BRG” shall mean Bluerock
Residential Growth REIT, Inc., a Maryland corporation.


 


“Capital Account” shall
have the meaning provided in Section 5.6.


 


“Capital Contribution” shall
mean, with respect to any Member, the aggregate amount of (i) cash, and (ii) the Agreed Upon Value of other property contributed
by such Member to the capital of the Company net of any liability secured by such property that the Company assumes or takes subject
to.


 


“Cash Flow” shall mean,
for any period for which Cash Flow is being calculated, gross cash receipts of the Company (but excluding Capital Contributions),
less the following payments and expenditures: (i) all payments of operating expenses of the Company, (ii) all payments of principal
of, interest on and any other amounts due with respect to indebtedness, leases or other commitments or obligations of the Company
(and other loans by Members to the Company), (iii) all sums expended by the Company for capital expenditures, (iv) all prepaid
expenses of the Company, and (v) all sums expended by the Company which are otherwise capitalized.


 


“Certificate of Formation”
shall mean the Certificate of Formation of the Company, as amended from time to time.


 


“Code” shall mean the Internal
Revenue Code of 1986, as amended from time to time, including the corresponding provisions of any successor law.


 




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“Collateral Agreement” shall
mean any agreement, instrument, document or covenant concurrently or hereafter made or entered into under, pursuant to, or in connection
with this Agreement and any certifications made in connection therewith or amendment or amendments made at any time or times heretofore
or hereafter to any of the same.


 


“Company” shall mean Bell
BR Waterford Crossing JV, LLC, a Delaware limited liability company organized under the Act.


 


“Company Interest” shall
mean all of the Company’s interest in TIC-2, including its limited liability company interest and its managerial interest
therein.


 


“Company Minimum Gain” shall
have the meaning given to the term “partnership minimum gain” in Regulations Sections 1.704-2(b)(2) and 1.704-2(d).


 


“Confidential Information”
shall have the meaning provided in Section 10(a). “Default Amount” shall have the meaning provided in Section 5.2(b).


 


“Defaulting Member” shall
have the meaning provided in Section 5.2(b).


 


“Delaware UCC” shall mean
the Uniform Commercial Code as in effect in the State of Delaware from time to time.


 


“Dissolution Event” shall
have the meaning provided in Section 13.2.


 


“Distributable Funds” with
respect to any month or other period, as applicable, shall mean (x) an amount equal to the Cash Flow of the Company for such month
or other period, as applicable, as reduced by (y) reserves for anticipated capital expenditures, future working capital needs and
operating expenses, contingent obligations and other purposes, the amounts of which shall be reasonably determined from time to
time by the Manager.


 


“Distributions” shall mean
the distributions payable (or deemed payable) to a Member (including, without limitation, its allocable portion of Distributable
Funds).


 


“ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended from time to time.


 


“Fiscal Year” shall mean
each calendar year ending December 31.


 


“Flow Through Entity” shall
have the meaning provided in Section 5.7.


 


“Foreign Corrupt Practices Act”
shall mean the Foreign Corrupt Practices Act of the United States, 15 U.S.C. Sections 78a, 78m, 78dd-1, 78dd-2, 78dd-3, and 78ff,
as amended, if applicable, or any similar law of the jurisdiction where the Property is located or where the Company or any of
its Subsidiaries transacts business or any other jurisdiction, if applicable.


 


“Imputed Closing Costs”
means an amount (not to exceed one and one quarter percent (1.25%) of the purchase price) that would normally be incurred by a
Subsidiary if the Property were sold for an amount specified in Section 15.1, for title insurance premiums, survey costs, brokerage
commissions, legal fees, and other commercially reasonable closing costs.


 




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“Income” shall mean the
gross income of the Company for any month, Fiscal Year or other period, as applicable, including gains realized on the sale, exchange
or other disposition of the Company’s assets.


 


“Indemnified Party” shall
have the meaning provided in Section 14.3(a).


 


“Indemnifying Party” shall
have the meaning provided in Section 14.3(a).


 


“Inducement Agreements”
shall have the meaning provided in Section 14.3(a).


 


“Interest” of any Member
shall mean the entire limited liability company interest of such Member in the Company, which includes, without limitation, any
and all rights, powers and benefits accorded a Member under this Agreement and the duties and obligations of such Member hereunder,
and “Interests” shall mean, collectively, the Interest of each Member of the


Company.


 


“Loan” shall mean that certain
mortgage loan in the original principal amount of approximately $26,705,000.00 borrowed by TIC-1 and TIC-2 from Walker & Dunlop,
LLC and assigned to Fannie Mae (together with its successors and assigns as the holder of the Loan, the “Lender”).


 


“Loan Documents” shall mean
that certain Multifamily Loan and Security Agreement and all related documents evidencing and securing the Loan.


 


“Loss” shall mean the aggregate
of losses, deductions and expenses of the Company for any month, Fiscal Year or other period, as applicable, including losses realized
on the sale, exchange or other disposition of the Company’s assets.


 


“Major Decision” means any
decision for the Company to take, or refrain from taking, any action or incurring any obligation with respect to the following
matters (or the effectuation of any such action or obligation), including in the Company’s capacity as a member and/or manager
of TIC-2 with respect to making or refraining to make a decision on the following matters to the extent the vote or approval of
the Company is required:


 


(i)        any merger, conversion
or consolidation involving the Company or any Subsidiary or the sale, lease, transfer, exchange or other disposition of all or
substantially all of the Company’s assets, including the Company Interest, or all of the Interests of the Members in the
Company, in one or a series of related transactions; provided, however, nothing herein shall require the consent of the Members
with respect to the sale of the Property or the sale of the TIC-2 Interest by TIC-2.


 


(ii)
      except as expressly provided in Section 12 with respect to Transfers (x) (i) by BR I
or a BR I Transferee to a BR I Transferee, or (ii) by BR II or a BR II Transferee to a BR II Transferee, or (y) by Durant or
VBells to any Bell Control Party, the admission or removal of any Member or the Company’s issuance to any third party
of any equity interest in the Company (including interests convertible into, or exchangeable for, equity interests in the
Company) that would dilute the Interests of the other Members;


 




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(iii)       except as provided
in Section 13, any liquidation, dissolution or termination of the Company;


 


(iv)       any material change
in the strategic direction of the Company or any material expansion of the business of the Company, whether into new or existing
lines of business or any change in the structure of the Company;


 


(v)        acquiring by purchase,
ground lease or otherwise, any real property or other material asset or the entry into of any agreement, commitment or assumption
with respect to any of the foregoing, or the making or posting of any deposit (refundable or non-refundable); or


 


(vi)       amendment
of the Company’s Certificate of Formation or this Agreement in a manner that materially and adversely affects the interests
of the Members (excluding BR I).


 


“Manager” shall mean BR
I, or any Person(s) that succeeds BR I in the capacity as manager of the Company.


 


“Member” and “Members”
shall mean BR I, BR II, Durant, VBells, West and any other Person admitted to the Company pursuant to this Agreement. For purposes
of the Act, the Members shall constitute a single class or group of members.


 


“Member in Question” shall
have the meaning provided in Section 16.12.


 


“Net Income” shall mean
the amount, if any, by which Income for any period exceeds Loss for such period.


 


“Net Loss” shall mean the
amount, if any, by which Loss for any period exceeds Income for such period.


 


“New York UCC” shall have
the meaning provided in Section 16.17.


 


“Offerees” shall have the
meaning provided in Section 15.1(b).


 


“Offeror” shall have the
meaning provided in Section 15.1(b).


 


“Percentage Interest” shall
have the meaning provided in Section 5.3.


 


“Person” shall mean any
individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any other legal entity.


 


“Property” shall have the
meaning set forth in Section 3 hereof.


 




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“Property Manager” shall
mean Bell Partners, Inc., so long as the Property Management Agreement is in full force and effect and thereafter, the entity performing
similar services with respect to the Property.


 


“Property Management Agreement”
shall mean that certain Property Management Agreement, as amended, by and between TIC-1, TIC-2Bluerock Property Management, LLC
and the Property Manager.


 


“Property Manager Reports”
shall have the meaning set forth in Section 8.2(c).


 


“Pursuer” shall have the
meaning provided in Section 10(c).


 


“Regulations” shall mean
the Treasury Regulations promulgated pursuant to the Code, as amended from time to time, including the corresponding provisions
of any successor regulations.


 


“REIT” shall mean a real
estate investment trust as defined in Code Section 856.


 


“REIT Member” shall mean
any Member, if such Member is a REIT or a direct or indirect subsidiary of a REIT.


 


“REIT Requirements” shall
mean the requirements for qualifying as a REIT under the Code and Regulations.


 


“Securities Act” shall mean
the Securities Act of 1933, as amended.


 


“Subsidiary” shall mean
any corporation, partnership, limited liability company or other entity of which fifty percent (50%) or more is owned by the Company
or of which at least a majority of the capital stock or other equity securities is owned by the Company.


 


“Tax Matters Member” shall
have the meaning provided in Section 8.3.


 


“TIC-1” shall mean BR Fox
Hills TIC-1, LLC, a Delaware limited liability company, or its successors as the holder of the TIC-1 Interest.


 


“TIC-1 Interest” shall mean
the undivided 19.07% tenant-in-common interest in the Property owned by TIC-1.


 


“TIC-2” shall mean BR Fox
Hills TIC-2, LLC, a Delaware limited liability company.


 


“TIC-2 Interest” shall mean
the undivided [80.6180.93%] tenant-in-common interest in the Property owned by TIC-2.


 


“Total Investment” shall
mean the sum of the aggregate Capital Contributions made by a Member.


 


“Transfer” means, as a noun,
any transfer, sale, assignment, exchange, charge, pledge, gift, hypothecation, conveyance, encumbrance or other disposition, voluntary
or involuntary, by operation of law or otherwise and, as a verb, voluntarily or involuntarily, by operation of law or otherwise,
to transfer, sell, assign, exchange, charge, pledge, give, hypothecate, convey, encumber or otherwise dispose of.


 




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“Valuation Amount” shall
have the meaning provided in Section 15.1(b).


 


Section 2.            Organization of the Company.


 


2.1           Name.
The name of the Company shall be “Bell BR Waterford Crossing JV, LLC”. The business and affairs of the Company
shall be conducted under such name or such other name as the Manager deems necessary or appropriate to comply with the requirements
of law in any jurisdiction in which the Company may elect to do business.


 


2.2           Place
of Registered Office; Registered Agent. The address of the registered office of the Company in the State of Delaware is Corporation
Trust Center, 1209 Orange St., Wilmington, Delaware 19801. The name and address of the registered agent for service of process
on the Company in the State of Delaware is The Corporation Trust Company, Corporation Trust Center, 1209 Orange St., Wilmington,
Delaware 19801. The Manager may at any time on five (5) days prior notice to all Members change the location of the Company’s
registered office or change the registered agent.


 


2.3           Principal
Office. The principal address of the Company shall be c/o Bluerock Real Estate, L.L.C., 712 Fifth Avenue, 9th Floor, New York,
New York 10019, or, in each case, at such other place or places as may be determined by the Manager from time to time.


 


2.4           Filings.
The Manager shall use its best efforts to take such other actions as may be reasonably necessary to perfect and maintain the status
of the Company as a limited liability company under the laws of Delaware. Notwithstanding anything contained herein to the contrary,
the Company shall not do business in any jurisdiction that would jeopardize the limitation on liability afforded to the Members
under the Act or this Agreement.


 


2.5           Term.
The Company shall continue in existence in perpetuity, unless and until the Company is dissolved as provided in Section 13.


 


2.6           Expenses of
the Company. Other than the reimbursements of costs and expenses as provided herein, no fees, costs or expenses shall be payable
by the Company to any Member (or its Affiliates).


 


Section 3.            Purpose.


 


The purpose of the Company,
subject in each case to the terms hereof, shall be to engage in the business of acquiring, owning, operating, developing, renovating,
repositioning, managing, leasing, selling, financing (including the borrowing of the Loan) and refinancing all or any portion (including,
without limitation, the TIC-2 Interest) of the real estate and any real estate related investments known as Fox Hill Apartments,
which is located at 8800 Highway 290 West, Austin, Texas, which is held by TIC-1 and TIC-2 as tenants in common (any property acquired
as aforesaid shall hereinafter be referred to as the “Property”), and all other activities reasonably necessary
to carry out such purposes. The Company shall possess and may exercise all of the powers and privileges granted by the Act, by
any other law or by this Agreement, together with any powers incidental thereto, including such powers and privileges as are necessary
or convenient to the conduct, promotion or attainment of the business, purposes or activities of the Company.


 




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Section 4.            Reserved.


 


Section 5.            Capital Contributions,
Loans, Percentage Interests and Capital Accounts.


 


5.1         Capital Contributions.
BR I and BR II have each previously made or been attributed Capital Contributions to the Company as reflected on the Company’s
books and as shown on Exhibit A attached hereto. On the date hereof, Durant, VBells and West have each made the Capital Contribution
to the Company shown on Exhibit A attached hereto in exchange for admission as a Member of the Company.


 


5.2           Additional Capital
Contributions.


 


 (a) Additional Capital
Contributions may be called for from the Members by the Manager from time to time as and to the extent capital is necessary in
connection with the Property. Except as otherwise agreed by the Members, such additional Capital Contributions shall be in an amount
for each Member equal to the product of the amount of the aggregate Capital Contribution called for multiplied by their respective
Percentage Interest. Such additional Capital Contributions shall be payable by the Members to the Company upon the earlier of (i)
twenty (20) days after written request from the Company, or (ii) the date when the Capital Contribution is required, as set forth
in a written request from the Company.


 


 (b)          If
a Member (a “Defaulting Member”) fails to make a Capital Contribution that is required as provided in Section
5.2(a) within the time frame required therein (the amount of the failed contribution and related loan shall be the “Default
Amount”), the other Members, provided that it has made the Capital Contribution required to be made by it, in addition
to any other remedies it may have hereunder or at law, but subject in all events to any restrictions contained in the Loan Documents,
shall have one or more of the following remedies:


 


(1)         [Intentionally
Omitted];


 


(2)         subject
to any applicable thin capitalization limitations on indebtedness of the Company, to treat its portion of such Capital Contribution
as a loan to the Company (rather than a Capital Contribution) and to advance to the Company as a loan to the Company an amount
equal to the Default Amount, which loan shall be evidenced by a promissory note in form reasonably satisfactory to the non-failing
Member(s) and which loan shall bear interest at the Default Loan Rate and be payable on a first priority basis by the Company from
available Cash Flow and prior to any Distributions made to the Defaulting Member. If each Member has loans outstanding to the Company
under this provision, such loans shall be payable to each Member in proportion to the outstanding balances of such loans to each
Member at the time of payment. Any advance to the Company pursuant to this Section 5.2(b)(2) shall not be treated as a Capital
Contribution made by the Defaulting Member. For purposes of this Agreement, the “Default Loan Rate” means a
twenty percent (20%) per annum interest rate, but in no event in excess of the highest rate permitted by applicable laws;


 




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(3)         in
lieu of the remedies set forth in subparagraphs (1) or (2), revoke its portion of such additional Capital Contribution, whereupon
the portion of the Capital Contribution made by the non-failing Member(s) shall be returned within ten (10) days with interest
computed at the Default Loan Rate by the Company.


 


 (c)          Notwithstanding
the foregoing provisions of this Section 5.2, no additional Capital Contributions shall be required from any Member if (i) the
Company or any other Person shall be in default (or with notice or the passage of time or both, would be in default) in any material
respect under any loan, indenture, mortgage, lease, agreement or instrument to which the Company or any of its Subsidiaries is
a party or by which the Company (or any of its Subsidiaries) or any of its properties or assets is or may be bound, (ii) any other
Member, the Company or any of its Subsidiaries shall be insolvent or bankrupt or in the process of liquidation, termination or
dissolution, (iii) any other Member, the Company or any of its Subsidiaries shall be subjected to any pending litigation (x) in
which the amount in controversy exceeds $500,000, (y) which litigation is not being defended by an insurance company who would
be responsible for the payment of any judgment in such litigation, and (z) which litigation if adversely determined could have
a material adverse effect on such other Member and/or the Company or any of its Subsidiaries and/or could interfere with their
ability to perform their obligations hereunder or under any Collateral Agreement, (iv) there has been a material adverse change
in (including, but not limited to, the financial condition of) any other Member (and/or its Affiliates) which, in Member’s
reasonable judgment, prevents such other Member (and/or its Affiliates) from performing, or substantially interferes with their
ability to perform, their obligations hereunder or under any Collateral Agreement. If any of the foregoing events shall have occurred
and any Member elects not to make a Capital Contribution on account thereof, then any other Member which has made its pro rata
share of such Capital Contribution shall be entitled to a return of such Capital Contribution from the Company.


 


 (d)          Notwithstanding
the terms of this Section 5.2, neither the Company nor the non-failing Members shall have the right to pursue any direct recourse
action against the Defaulting Member, their remedies being limited to those specifically set forth in Sections 5.2(b)(1), (2) and
(3) hereof.


 


5.3           Percentage
Ownership Interest. The Members shall have the initial percentage ownership interests (as the same are adjusted as provided
in this Agreement, a “Percentage Interest”) in the Company set forth on Exhibit A. Percentage Interests shall
not be adjusted by Distributions made (or deemed made) to a Member.


 


5.4           Return
of Capital Contribution. Except as approved by each of the Members, no Member shall have any right to withdraw or make a demand
for withdrawal of the balance reflected in such Member’s Capital Account (as determined under Section 5.6) until the full
and complete winding up and liquidation of the business of the Company.


 




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5.5          No
Interest on Capital. Interest earned on Company funds shall inure solely to the benefit of the Company, and no interest shall
be paid upon any Capital Contributions nor upon any undistributed or reinvested income or profits of the Company.


 


5.6          Capital
Accounts.


 


(a)          A
separate capital account (the “Capital Account”) shall be maintained for each Member in accordance with Section
1.704-1(b)(2)(iv) of the Regulations. Without limiting the foregoing, the Capital Account of each Member shall be increased by
(i) the amount of any Capital Contributions made by such Member, (ii) the amount of Income allocated to such Member and (iii) the
amount of income or profits, if any, allocated to such Member not otherwise taken into account in this Section 5.6. The Capital
Account of each Member shall be reduced by (i) the amount of any cash and the fair market value of any property distributed to
the Member by the Company (net of liabilities secured by such distributed property that the Member is considered to assume or take
subject to), (ii) the amount of Loss allocated to the Member and (iii) the amount of expenses or losses, if any, allocated to such
Member not otherwise taken into account in this Section 5.6.


 


(b)          The
Capital Accounts of the Members shall be adjusted pursuant to Regulations Section 1.704-1(b)(2)(iv)(f) to reflect a revaluation
of the Company’s assets on the Company’s books in connection with any contribution of money or other property to the
Company by new or existing Members. If any property other than cash is distributed to a Member, the Capital Accounts of the Members
shall be adjusted as if such property had instead been sold by the Company for a price equal to its fair market value, the gain
or loss allocated pursuant to Section 7, and the proceeds distributed in the manner set forth in Section 6.1 or Section 13.3(d)(iii).


 


(c)          The
Capital Accounts of the Members shall be adjusted to reflect any adjustments to the adjusted basis of such assets pursuant to Code
Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital
Accounts pursuant to Treas. Reg. § 1.704-1(b)(2)(iv)(m); provided, however, that no adjustment shall occur pursuant to this
Section 5.6(c) to the extent the Manager determines that an adjustment pursuant to Section 5.6(b) hereof is necessary or appropriate
in connection with a transaction that would otherwise result in an adjustment pursuant to this Section 5.6(c).


 


(d)          No
Member shall be obligated to restore any negative balance in its Capital Account. No Member shall be compensated for any positive
balance in its Capital Account except as otherwise expressly provided herein. The foregoing provisions and the other provisions
of this Agreement relating to the maintenance of Capital Accounts are intended to comply with the provisions of Regulations Section
1.704-1(b)(2) and shall be interpreted and applied in a manner consistent with such Regulations.


 




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5.7          New
Members. The Company may issue additional Interests and thereby admit a new Member or Members, as the case may be, to the Company,
only if such new Member (i) has delivered to the Company its Capital Contribution, (ii) has agreed in writing to be bound by the
terms of this Agreement by becoming a party hereto, and (iii) has delivered such additional documentation as the Company shall
reasonably require to so admit such new Member to the Company. Without the prior written consent of each then-current Member, a
new Member may not be admitted to the Company if the Company would, or may, have in the aggregate more than one hundred (100) members.
For purposes of determining the number of members under this Section 5.7 and under Section 12.3(b)(v), a Person (the “Beneficial
Owner”) indirectly owning an interest in the Company through a partnership, grantor trust or S corporation (as such terms
are used in the Code) (the “Flow-Through Entity”) shall be considered a member, but only if (i) substantially
all of the value of the Beneficial Owner’s interest in the Flow-Through Entity is attributable to the Flow-Through Entity’s
interest (direct or indirect) in the Company and (ii) in the sole discretion of the Manager, a principal purpose of the use of
the Flow-Through Entity is to permit the Company to satisfy the 100-member limitation.


 


Section 6.            Distributions.


 


6.1          Distribution
of Distributable Funds.


 


(a)          The
Manager shall calculate and determine the amount of Distributable Funds for each applicable period. Except as provided in Sections
5.2(b), 6.1(b) or 13.3 or otherwise provided hereunder, Distributable Funds, if any, shall be distributed to the Members, in proportion
to their Percentage Interests, on the 15th day of each month or from time to time as determined by the Manager.


 


(b) Any Distributions
otherwise payable to a Member under this Agreement shall be applied first to satisfy amounts due and payable on account of the
indemnity and/or contribution obligations of such Member under this Agreement and/or any other agreement delivered by such Member
to the Company or any other Member but shall be deemed distributed to such Member for purposes of this Agreement. 6.2 Distributions
in Kind. In the discretion of the Manager, Distributable Funds may be distributed to the Members in cash or in kind and the Members
may be compelled to accept a distribution of any asset in kind even if the percentage of that asset distributed to it exceeds a
percentage of that asset that is equal to the percentage in which such Member shares in distributions from the Company. In the
case of all assets to be distributed in kind, the amount of the distribution shall equal the fair market value of the asset distributed
as determined by the Manager. In the case of a distribution of publicly traded property, the fair market value of such property
shall be deemed to be the average closing price for such property for the thirty (30) day period immediately prior to the distribution,
or if such property has not yet been publicly traded for thirty (30) days, the average closing price of such property for the period
prior to the distribution in which the property has been publicly traded.


 


Section 7.            Allocations.


 


7.1          Allocation
of Net Income and Net Losses Other than in Liquidation. Except as otherwise provided in this Agreement, Net Income and Net
Losses of the Company for each Fiscal Year shall be allocated among the Members in a manner such that, as of the end of such Fiscal
Year and taking into account all prior allocations of Net Income and Net Losses of the Company and all distributions made by the
Company through such date, the Capital Account of each Member is, as nearly as possible, equal to the distributions that would
be made to such Member pursuant to Section 6.1 if the Company were dissolved, its affairs wound up and assets sold for cash equal
to their tax basis (or book value in the case of assets that have been revalued in accordance with Section 704(b) of the Code),
all Company liabilities were satisfied, and the net assets of the Company were distributed in accordance with Section 6.1 immediately
after such allocation.


 




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7.2          Allocation
of Net Income and Net Losses in Liquidation. Net Income and Net Losses realized by the Company in connection with the liquidation
of the Company pursuant to Section 13 shall be allocated among the Members in a manner such that, taking into account all prior
allocations of Net Income and Net Losses of the Company and all Distributions made by the Company through such date, the Capital
Account of each Member is, as nearly as possible, equal to the amount which such Member is entitled to receive pursuant to Section
13.3(d)(iii).


 


7.3          U.S.
Tax Allocations.


 


(a)          Standard
Allocation. Subject to Section 704(c) of the Code, for U.S. federal and state income tax purposes, all items of Company income,
gain, loss, deduction and credit shall be allocated among the Members in the same manner as the corresponding item of income, gain,
loss, deduction or credit was allocated pursuant to the preceding paragraphs of this Section 7.


 


(b)          Code
Section 704(c). In accordance with Code Section 704(c) and the Regulations promulgated thereunder, income and loss with respect
to any property contributed to the capital of the Company (including, if the property so contributed constitutes a partnership
interest, the applicable distributive share of each item of income, gain, loss, expense and other items attributable to such partnership
interest whether expressly so allocated or reflected in partnership allocations) shall, solely for U.S. federal income tax purposes,
be allocated among the Members so as to take account of any variation between the adjusted basis of such property to the Company
for U.S. federal income tax purposes and its Agreed Upon Value at the time of contribution.


 


(c) In the event the
Capital Accounts of the Members are adjusted pursuant to Section 5.6(b) or (c) to reflect a revaluation of the Company’s
assets on the Company’s books, subsequent allocations of income, gain, loss, and deduction with respect to such asset shall
take account of any variation between the adjusted basis of such asset for federal income tax purposes and its book value in the
same manner as under Code Section 704(c) and the Treasury Regulations thereunder.


 


(d) Such allocation shall
be made in accordance with any permissible method set forth in Regulations Section1.704-3, as reasonably determined by the Manager
and approved by VBells, in its reasonable discretion. Any other elections or other decisions relating to such allocations shall
be made by the Manager in any manner that reasonably reflects the purpose and intention of this Agreement. Allocations pursuant
to this Section 7.3 are solely for purposes of U.S. federal, state and local income taxes and shall not affect, or in any way be
taken into account in computing, any Member’s share of Net Income, Net Loss, other items or distributions pursuant to any
provisions of this Agreement.


 




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Section 8.            Books, Records, Tax Matters
and Bank Accounts.


 


8.1          Books
and Records. The books and records of account of the Company shall be maintained in accordance with industry standards and
shall be based on the Property Manager Reports. The books and records shall be maintained at the Company’s principal office
or at a location designated by the Manager, and all such books and records (and the dealings and other affairs of the Company and
its Subsidiaries) shall be available to any Member at such location for review, investigation, audit and copying, at such Member’s
sole cost and expense, during normal business hours on at least twenty-four (24) hours prior notice.


 


8.2          Reports
and Financial Statements.


 


(a)          Within
thirty (30) days of the end of each Fiscal Year, the Manager shall cause each Member to be furnished with two sets of the following
additional annual reports computed as of the last day of the Fiscal Year:


 


(i) An unaudited balance
sheet of the Company and TIC-2;


 


(ii) An unaudited statement
of profit and loss for the Company and TIC-2; and


 


(iii) A statement of the
Members’ Capital Accounts and changes therein for such Fiscal Year.


 


(b)          Within
fifteen (15) days of the end of each quarter of each Fiscal Year, the Manager shall cause to be furnished to any REIT Member such
information as requested by any REIT Member as is necessary for such REIT Member to determine its qualification as a REIT and its
compliance with REIT Requirements.


 


(c)          The
Members acknowledge that the Property Manager is obligated to perform Property-related accounting and furnish Property-related
accounting statements under the terms of the Property Management Agreement (and any future property manager for the Property shall
be required to do the same) (collectively, the “Property Manager Reports”). The Manager shall be entitled to
rely on the Property Manager Reports with respect to its obligations under this Section 8, and the Members acknowledge that the
reports to be furnished hereunder shall be based on the Property Manager Reports, without any duty on the part of the Manager to
further investigate the completeness, accuracy or adequacy of the Property Manager Reports.


 


(d)          The
Manager will use its commercially best efforts to obtain such financial statements (audited or unaudited), information and attestations
as may be required by any Member or any of its Affiliates in connection with public reporting, attestation, certification and other
requirements under the Securities Exchange Act of 1934, as amended, and the Sarbanes-Oxley Act of 2002, as amended, applicable
to such entity, and work in good faith with the designated accountants or auditors of any Member or any of its Affiliates in connection
therewith, including for purposes of testing internal controls and procedures of any Member or any of its Affiliates.


 




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8.3           Tax
Matters Member. BR I is hereby designated as the “tax matters partner” of the Company and the Subsidiaries, as
defined in Section 6231(a)(7) of the Code (the “Tax Matters Member”) and shall prepare or cause to be prepared
all income and other tax returns of the Company and the Subsidiaries pursuant to the terms and conditions of Section 8.5. Except
as otherwise provided in this Agreement, all elections required or permitted to be made by the Company and the Subsidiaries under
the Code or state tax law shall be timely determined and made by BR I. The Members intend that the Company be treated as a partnership
for U.S. federal, state and local tax purposes, and the Members will not elect or authorize any person to elect to change the status
of the Company from that of a partnership for U.S. federal, state and local income tax purposes. In addition, upon the request
of any Member, the Company and each Subsidiary shall make an election pursuant to Code Section 754 to adjust the basis of the Company’s
property in the manner provided in Code Sections 734(b) and 743(b). The Company hereby indemnifies and holds harmless BR I from
and against any claim, loss, expense, liability, action or damage resulting from its acting or its failure to take any action as
the “tax matters partner” of the Company and the Subsidiaries, provided that any such action or failure to act does
not constitute gross negligence or willful misconduct.


 


8.4           Bank
Accounts. All funds of the Company are to be deposited in the Company’s name in such bank account or accounts as may
be designated by the Manager and shall be withdrawn on the signature of such Person or Persons as the Manager may authorize.


 


8.5           Tax
Returns. The Manager shall cause to be prepared all income and other tax returns of the Company and the Subsidiaries (and TIC-2,
if applicable) required by applicable law. No later than the due date or extended due date thereof, the Manager shall deliver or
cause to be delivered to each Member a copy of the tax returns for the Company and such Subsidiaries (and TIC-2, if applicable)
with respect to such Fiscal Year, together with such information with respect to the Company and such Subsidiaries (and TIC-2,
if applicable) as shall be necessary for the preparation by such Member of its U.S. federal and state income or other tax and information
returns.


 


8.6           Expenses.
Notwithstanding any contrary provision of this Agreement, the Members acknowledge and agree that the reasonable expenses and charges
incurred directly or indirectly by or on behalf of the Manager in connection with its obligations under this Section 8 will be
reimbursed by the Company to the Manager.


 


Section 9.             Management.


 


9.1          Management.


 


(a)          The
Company shall be managed by one manager. BR I shall have the power and authority to appoint the Manager without any further action
or approval by any other Member, and BR I hereby appoints BR I as the Manager. To the extent that BR I or a BR I Transferee Transfers
all or a portion of its Interest in accordance with Section 12 to a BR I Transferee, such BR I Transferee may be appointed as the
Manager under this Section 9.1(a) by BR I or a BR I Transferee then holding all or a portion of an Interest without any further
action or authorization by any other Member. The Manager may not be removed by the Members other than for an act or omission related
to the Company constituting gross negligence or fraud.


 




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(b)          The
Manager, acting alone, shall have the authority to exercise all of the powers and privileges granted by the Act, any other law
or this Agreement, together with any powers incidental thereto, and to take any other action not prohibited under the Act or other
applicable law, so far as such powers or actions are necessary or convenient or related to the conduct, promotion or attainment
of the business, purposes or activities of the Company, except that any Major Decision shall require the express and unanimous
approval of the Members.


 


(c)          Manager
shall substantially participate in the management of the Property, and in all decision-making with respect to the development of
the Property, both directly and through the control Manager maintains and exercises over Company Subsidiaries (and the Company
maintains and exercises over TIC-2). In furtherance of such management and decision-making authority, the Manager shall meet with
the Property Manager on no less than a quarterly basis to discuss issues and make decisions related to the management and operation
of the Property.


 


(d)          The
Manager may appoint individuals to act on behalf of the Company with such titles and authority as determined from time to time
by the Manager. Each of such individuals shall hold office until his or her death, resignation or replacement by the Manager.


 


9.2          Affiliate
Transactions. No agreement shall be entered into by the Company or any Subsidiary with a Member or any Affiliate of a Member
and no decision shall e made in respect of any such agreement (including, without limitation, the enforcement or termination thereof)
unless such agreement or related decision shall have been approved in writing by the Manager and, if the terms of any such agreement
are other than on commercially reasonably market terms, with the unanimous consent of the Members.


 


9.3          Other
Activities.


 


(a)          Right
to Participation in Other Member Ventures. Neither the Company nor any Member (or any Affiliate of any Member) shall have any
right by virtue of this Agreement either to participate in or to share in any other now existing or future ventures, activities
or opportunities of the Manager (or its Affiliates) or any of the other Members or their Affiliates, or in the income or proceeds
derived from such ventures, activities or opportunities. Neither the Company nor any Member (or any Affiliate of any Member) shall
have any right by virtue of this Agreement either to participate in or to share in any other now existing or future ventures, activities
or opportunities of the Manager (or its Affiliates) or any of the other Members or their Affiliates, or in the income or proceeds
derived from such ventures, activities or opportunities.


 


(b)          Limitation
on Actions of Members; Binding Authority. No Member shall take any action on behalf of, or in the name of, the Company, or
enter into any contract, agreement, commitment or obligation binding upon the Company, or, in its capacity as a Member or Manager
of the Company, perform any act in any way relating to the Company or the Company’s assets, except in a manner and to the
extent consistent with the provisions of this Agreement.


 




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9.4          Operation
in Accordance with REOC/REIT Requirements.


 


(a)          The
Members acknowledge that one or more Affiliates of the Members (a “BR Affiliate”) intends to qualify as a “real
estate operating company” or “venture capital operating company” within the meaning of U.S. Department of Labor
Regulation 29 C.F.R. §2510.3-101 (a “REOC”), and agree that the Company and its Subsidiaries shall be operated
in a manner that will enable each BR Affiliate to so qualify. Notwithstanding anything herein to the contrary, the Company and
its Subsidiaries shall not take, or refrain from taking, any action that would result in a BR Affiliate from failing to qualify
as a REOC. No Member shall fund any Capital Contribution with the “plan assets” of any “employee benefit plan”
within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, or any “plan”
as defined by Section 4975 of the Internal Revenue Code of 1986, as amended. The Members and the Manager shall comply with any
requirements specified by a BR Affiliate in order to ensure compliance with this Section 9.4.


 


(b)          Notwithstanding
anything in this Agreement to the contrary, unless specifically agreed to by the Manager in writing, neither the Company nor its
Subsidiaries shall hold any investment, incur any indebtedness or otherwise take any action that would cause any Member of the
Company (or any Person holding an indirect interest in the Company through an entity or series of entities treated as partnerships
for U.S. federal income tax purposes) to realize any “unrelated business taxable income” as such term is defined in
Code Sections 511 through 514 (“UBTI”). No Manager or Member shall be liable for any income or other taxes,
damages, costs or expenses incurred by the Company or any Member by reason of the recognition by the Company of UBTI, unless caused
by its own willful misconduct or gross negligence and not related to the Property.


 


(c)          The
Company (and any direct or indirect Subsidiary of the Company) may not engage in any activities or hold any assets that would constitute
or result in the occurrence of a REIT Prohibited Transaction (as defined below). Notwithstanding anything to the contrary contained
in this Agreement, during the time a REIT Member is a Member of the Company, neither the Company nor TIC-2, nor any direct or indirect
Subsidiary of the Company or TIC-2, nor any Manager or Member of the Company, shall take or refrain from taking any action which,
or the effect of which, would constitute or result in the occurrence of a REIT Prohibited Transaction by the Company or TIC-2 or
any direct or indirect Subsidiary thereof, including, without limiting the generality of the foregoing, but in amplification thereof:


 


(i)          Entering
into any lease, license, concession or other agreement or permitting any sublease, license, concession or other agreement that
provides for rent or other payment based in whole or in part on the income or profits of any person, excluding for this purpose
a lease that provides for rent based in whole or in part on a fixed percentage or percentages of gross receipts or gross sales
of any person without reduction for any costs of the lessee (and in the case of a sublease, without reduction for any sublessor
costs);


 


(ii)         Leasing,
as a lessor, personal property, excluding for this purpose a lease of personal property that is entered into in connection with
a lease of real property where the rent attributable to the personal property is less than 15% of the total rent provided for under
the lease;


 




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(iii)        Acquiring
or holding any debt investments, excluding for these purposes “debt” solely between wholly-owned Subsidiaries of the
Company, unless (I) the amount of interest income received or accrued by the Company under such loan does not, directly or indirectly,
depend in whole or in part on the income or profits of any person, and (II) the debt is fully secured by mortgages on real property
or on interests in real property. Notwithstanding anything to the contrary herein, in the case of debt issued to the Company by
a Subsidiary which is treated as a “taxable REIT subsidiary” of the REIT Member, such debt shall be secured by a mortgage
or similar security interest, or by a pledge of the equity ownership of a subsidiary of such taxable REIT subsidiary;


 


(iv)        Acquiring
or holding, directly or indirectly, more than 10% of the outstanding securities of any one issuer (by vote or value) other than
an entity which either (i) is taxable as a partnership or a disregarded entity for United States federal income tax purposes, (ii)
has properly elected to be a taxable REIT subsidiary of the REIT Member by jointly filing with the associated REIT, IRS Form 8875,
or (iii) has properly elected to be a real estate investment trust for U.S. federal income tax purposes;


 


(v)         Entering
into any agreement where the Company receives amounts, directly or indirectly, for rendering services to the tenants of any property
that is owned, directly or indirectly, by the Company other than (i) amounts received for services that are customarily furnished
or rendered in connection with the rental of real property of a similar class in the geographic areas in which the Property is
located where such services are either provided by (A) an Independent Contractor (as defined in Section 856(d)(3) of the Code)
who is adequately compensated for such services and from which the Company or REIT Member do not, directly or indirectly, derive
revenue or (B) a taxable REIT subsidiary of REIT Member who is adequately compensated for such services or (ii) amounts received
for services that are customarily furnished or rendered in connection with the rental of space for occupancy only (as opposed to
being rendered primarily for the convenience of the Property’s tenants);


 


(vi)        Entering
into any agreement where a material amount of income received or accrued by the Company under such agreement, directly or indirectly,
does not qualify as either (i) “rents from real property” or (ii) “interest on obligations secured by mortgages
on real property or on interests in real property,” in each case as such terms are defined in Section 856(c) of the Code;


 


(vii)       Holding
cash of the Company available for operations or distribution in any manner other than a traditional bank checking or savings account;


 


(viii)      Selling
or disposing of any property, subsidiary or other asset of the Company prior to (i) the completion of a two (2) year holding period
with such period to begin on the date the Company acquires a direct or indirect interest in such property and begins to hold such
property, subsidiary or asset for the production of rental income, and (ii) the satisfaction of any other requirements under Section
857 of the Code necessary for the avoidance of a prohibited transaction tax on the REIT; or


 




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(ix)         Failing
to make current cash distributions to REIT Member each year in an amount which does not at least equal the taxable income allocable
to REIT Member for such year. Notwithstanding the foregoing provisions of this Section 9.4(c), the Company may enter into a REIT
Prohibited Transaction if it receives the prior written approval of the REIT Member specifically acknowledging that the REIT Member
is approving a REIT Prohibited Transaction pursuant to this Section 9.4(c). For purposes of this Section 9.4(c), “REIT
Prohibited Transactions” shall mean any of the actions specifically set forth in this Section 9.4(c).


 


9.5          FCPA.


 


(a)          In
compliance with the Foreign Corrupt Practices Act, each Member will not, and will ensure that its officers, directors, employees,
shareholders, members, agents and Affiliates, acting on its behalf or on the behalf of the Company or any of its Subsidiaries or
Affiliates do not, for a corrupt purpose, offer, directly or indirectly, promise to pay, pay, promise to give, give or authorize
the paying or giving of anything of value to any official representative or employee of any government agency or instrumentality,
any political party or officer thereof or any candidate for office in any jurisdiction, except for any facilitating or expediting
payments to government officials, political parties or political party officials the purpose of which is to expedite or secure
the performance of a routine governmental action by such government officials or political parties or party officials. The term
“routine governmental action” for purposes of this provision shall mean an action which is ordinarily and commonly
performed by the applicable government official in (i) obtaining permits, licenses, or other such official documents which such
Person is otherwise legally entitled to; (ii) processing governmental papers; (iii) providing police protection, mail pick-up and
delivery or scheduling inspections associated with contract performance or inspections related to transit of goods across country;
(iv) providing phone service, power and water supply, loading and unloading of cargo, or protecting perishable products or commodities
from deterioration; or (v) actions of a similar nature. The term “routine governmental action” does not include any
decision by a government official whether, or on what terms, to award new business to or to continue business with a particular
party, or any action taken by an official involved in the decision making process to encourage a decision to award new business
to or continue business with a particular party. (b) Each Member agrees to notify immediately the Manager and the other Members
of any request that such Member or any of its officers, directors, employees, shareholders, members, agents or Affiliates, acting
on its behalf, receives to take any action that may constitute a violation of the Foreign Corrupt Practices Act.


 




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Section 10.           Confidentiality.


 


(a)          Any
information relating to a Member’s business, operation or finances which are proprietary to, or considered proprietary by,
a Member are hereinafter referred to as “Confidential Information”. All Confidential Information in tangible
form (plans, writings, drawings, computer software and programs, etc.) provided to or conveyed orally or visually to a receiving
Member shall be presumed to be Confidential Information at the time of delivery to the receiving Member. All such Confidential
Information shall be protected by the receiving Member from disclosure with the same degree of care with which the receiving Member
protects its own Confidential Information from disclosure. Each Member agrees: (i) not to disclose such Confidential Information
to any Person except to those of its employees or representatives who need to know such Confidential Information in connection
with the conduct of the business of the Company and who have agreed to maintain the confidentiality of such Confidential Information
and (ii) neither it nor any of its employees or representatives will use the Confidential Information for any purpose other than
in connection with the conduct of the business of the Company; provided that such restrictions shall not apply if such Confidential
Information:


 


(x)          is
or hereafter becomes public, other than by breach of this Agreement;


 


(y)          was
already in the receiving Member’s possession prior to any disclosure of the Confidential Information to the receiving Member
by the divulging Member; or


 


(z)          has
been or is hereafter obtained by the receiving Member from a third party not bound by any confidentiality obligation with respect
to the Confidential Information;


 


provided, further, that nothing herein shall
prevent any Member from disclosing any portion of such Confidential Information (1) to the Company and allowing the Company to
use such Confidential Information in connection with the Company’s business, (2) pursuant to judicial order or in response
to a governmental inquiry, by subpoena or other legal process, but only to the extent required by such order, inquiry, subpoena
or process, and only after reasonable notice to the original divulging Member, (3) as necessary or appropriate in connection with
or to prevent the audit by a governmental agency of the accounts of any Member, (4) in order to initiate, defend or otherwise pursue
legal proceedings between the parties regarding this Agreement, (5) necessary in connection with a Transfer of an Interest permitted
hereunder or (6) to a Member’s respective attorneys or accountants or other representative.


 


(b)          The
Members and their Affiliates shall each act to safeguard the secrecy and confidentiality of, and any proprietary rights to, any
non-public information relating to the Company and its business, except to the extent such information is required to be disclosed
by law or reasonably necessary to be disclosed in order to carry out the business of the Company. Each Member may, from time to
time, provide the other Members written notice of its non-public information which is subject to this Section 10(b).


 


(c)          Without
limiting any of the other terms and provisions of this Agreement, to the extent a Member (the “Pursuer”) provides the
other Members with information relating to a possible investment opportunity then being actively pursued by the Pursuer on behalf
of the Company, the other Members receiving such information shall not use such information to pursue such investment opportunity
for their own account to the exclusion of the Pursuer so long as the Pursuer is actively pursuing such opportunity on behalf of
the Company and shall not disclose any Confidential Information to any Person (except as expressly permitted hereunder) or take
any other action in connection therewith that is reasonably likely to cause damage to the Pursuer.


 




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Section 11.          Representations and Warranties.


 


11.1        In
General. As of the date hereof, each of the Members hereby makes each of the representations and warranties applicable to such
Member as set forth in Section 11.2. Such representations and warranties shall survive the execution of this Agreement.


 


11.2        Representations
and Warranties. Each Member hereby represents and warrants that:


 


(a)          Due
Incorporation or Formation; Authorization of Agreement. Each Member that is an entity (an “Entity Member”)
is a corporation duly organized or a partnership or limited liability company duly formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation and has the corporate, partnership or company power and authority
to own its property and carry on its business as owned and carried on at the date hereof and as contemplated hereby. Each Entity
Member is duly licensed or qualified to do business and in good standing in each of the jurisdictions in which the failure to be
so licensed or qualified would have a material adverse effect on its financial condition or its ability to perform its obligations
hereunder. Each Entity Member has the corporate, partnership or company power and authority to execute and deliver this Agreement
and to perform its obligations hereunder, and the execution, delivery and performance of this Agreement has been duly authorized
by all necessary corporate, partnership or company action. This Agreement constitutes the legal, valid and binding obligation of
each Member.


 


(b)          No
Conflict with Restrictions; No Default. Neither the execution, delivery or performance of this Agreement nor the consummation
by such Member (or any of its Affiliates) of the transactions contemplated hereby (i) does or will conflict with, violate or result
in a breach of (or has conflicted with, violated or resulted in a breach of) any of the terms, conditions or provisions of any
law, regulation, order, writ, injunction, decree, determination or award of any court, any governmental department, board, agency
or instrumentality, domestic or foreign, or any arbitrator, applicable to such Member or any of its Affiliates, (ii) does or will
conflict with, violate, result in a breach of or constitute a default under (or has conflicted with, violated, resulted in a breach
of or constituted a default under) any of the terms, conditions or provisions of the articles of incorporation, bylaws, partnership
agreement or operating agreement of any Entity Member or any of its Affiliates or of any material agreement or instrument to which
such Member or any of its Affiliates is a party or by which such Member or any of its Affiliates is or may be bound or to which
any of its properties or assets is subject, (iii) does or will conflict with, violate, result in (or has conflicted with, violated
or resulted in) a breach of, constitute (or has constituted) a default under (whether with notice or lapse of time or both), accelerate
or permit the acceleration of (or has accelerated) the performance required by, give (or has given) to others any material interests
or rights or require any consent, authorization or approval under any indenture, mortgage, lease, agreement or instrument to which
such Member or any of its affiliates is a party or by which such Member or any of its Affiliates or any of their properties or
a sets is or may be bound or (iv) does or will result (or has resulted) in the creation or imposition of any lien upon any of the
properties or assets of such Member or any of its Affiliates.


 




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(c)          Governmental
Authorizations. Any registration, declaration or filing with, or consent, approval, license, permit or other authorization
or order by, or exemption or other action of, any governmental, administrative or regulatory authority, domestic or foreign, that
was or is required in connection with the valid execution, delivery, acceptance and performance by such Member under this Agreement
or consummation by such Member (or any of its Affiliates) of any transaction contemplated hereby has been completed, made or obtained
on or before the date hereof.


 


(d)          Litigation.
There are no actions, suits, proceedings or investigations pending, or, to the knowledge of such Member or any of its Affiliates,
threatened against or affecting such Member or any of its Affiliates or any of their properties, assets or businesses in any court
or before or by any governmental department, board, agency or instrumentality, domestic or foreign, or any arbitrator which could,
if adversely determined (or, in the case of an investigation could lead to any action, suit or proceeding which if adversely determined
could) reasonably be expected to materially impair such Member’s ability to perform its obligations under this Agreement
or to have a material adverse effect on the consolidated financial condition of such Member; such Member or any of its Affiliates
has not received any currently effective notice of any default, and such Member or any of its Affiliates is not in default, under
any applicable order, writ, injunction, decree, permit, determination or award of any court, any governmental department, board,
agency or instrumentality, domestic or foreign, or any arbitrator which could reasonably be expected to materially impair such
Member’s (or any of its Affiliate’s) ability to perform its obligations under this Agreement or to have a material
adverse effect on the consolidated financial condition of such Member.


 


(e)          Investigation.
Such Member is acquiring its Interest based upon its own investigation, and the exercise by such Member of its rights and the performance
of its obligations under this Agreement will be based upon its own investigation, analysis and expertise. Such Member is a sophisticated
investor possessing an expertise in analyzing the benefits and risks associated with acquiring investments that are similar to
the acquisition of its Interest.


(f)          Broker.
No broker, agent or other person acting as such on behalf of such Member was instrumental in consummating this transaction and
that no conversations or prior negotiations were had by such party with any broker, agent or other such person concerning the transaction
that is the subject of this Agreement.


 


(g)          Investment
Company Act. Neither such Member nor any of its Affiliates is, nor will the Company as a result of such Member holding an Interest
therein be, an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940,
as amended.


 


(h)           Securities
Matters.


 


(i)          None
of the Interests are registered under the Securities Act or any state securities laws. Such Member understands that the offering,
issuance and sale of the Interests are intended to be exempt from registration under the Securities Act, based, in part, upon the
representations, warranties and agreements contained in this Agreement.


 




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Such Member is an “accredited investor”
as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act.


 


(ii)          Neither the Securities
and Exchange Commission nor any state securities commission has approved the Interests or passed upon or endorsed the merits of
the offer or sale of the Interests. Such Member is acquiring the Interests solely for such Member’s own account for investment
and not with a view to resale or distribution thereof in violation of the Securities Act.


 


(iii)         Such Member is
unaware of, and in no way relying on, any form of general solicitation or general advertising in connection with the offer and
sale of the Interests, and no Member has taken any action which could give rise to any claim by any person for brokerage commissions,
finders’ fees (without regard to any finders’ fees payable by the Company directly) or the like relating to the transactions
contemplated hereby.


 


(iv)        Such Member is not
relying on the Company, the Manager or any of their respective officers, directors, employees, advisors or representatives with
regard to the tax and other economic considerations of an investment in the Interests, and such Member has relied on the advice
of only such Member’s advisors.


 


(v)         Such Member understands
that the Interests may not be sold, hypothecated or otherwise disposed of unless subsequently registered under the Securities Act
and applicable state securities laws, or an exemption from registration is available. Such Member agrees that it will not attempt
to sell, transfer, assign, pledge or otherwise dispose of all or any portion of the Interests in violation of this Agreement.


 


(vi)        Such Member has
adequate means for providing for its current financial needs and anticipated future needs and possible contingencies and emergencies
and has no need for liquidity in the investment in the Interests. (vii) Such Member is knowledgeable about investment considerations
and has a sufficient net worth to sustain a loss of such Member’s entire investment in the Company in the event such a loss
should occur. Such Member’s overall commitment to investments which are not readily marketable is not excessive in view of
such Member’s net worth and financial circumstances and the purchase of the Interests will not cause such commitment to become
excessive. The investment in the Interests is suitable for such Member.


 


(viii)       Such Member represents
to the Company that the information contained in this subparagraph (h) and in all other writings, if any, furnished to the Company
with regard to such Member (to the extent such writings relate to its exemption from registration under the Securities Act) is
complete and accurate and may be relied upon by the Company in determining the availability of an exemption from registration under
federal and state securities laws in connection with the sale of the Interests.


 




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Section 12.           Sale,
Assignment, Transfer or other Disposition.


 


12.1 Prohibited Transfers.
Except as otherwise provided in this Section 12, Section 5.2(b) or as approved by the Manager, no Member shall Transfer all or
any part of its Interest, whether legal or beneficial, in the Company, and any attempt to so Transfer such Interest (and such Transfer)
shall be null and void and of no effect. Notwithstanding the foregoing, and subject in all events to the terms of the Loan Documents,
either or both of BR I and BR II shall have the right, with the consent of the Manager, at any time to pledge to a lender or creditor,
directly or indirectly, all or any part of its Interest in the Company for such purposes as it deems necessary in the ordinary
course of its business and operations.


 


12.2        Affiliate
Transfers.


 


(a)          Subject
to the provisions of Section 12.2(b) hereof, and subject in each case to the prior written approval of each Member (such approval
not to be unreasonably withheld), any Member may Transfer all or any portion of its Interest in the Company at any time to an Affiliate
of such Member, provided that such Affiliate shall remain an Affiliate of such Member at all times that such Affiliate holds such
Interest. If such Affiliate shall thereafter cease being an Affiliate of such Member while such Affiliate holds such Interest,
such cessation shall be a non-permitted Transfer and shall be deemed void ab initio, whereupon the Member having made the
Transfer shall, at its own and sole expense, cause such putative transferee to disgorge all economic benefits and otherwise indemnify
the Company and the other Members against loss or damage under any Collateral Agreement.


 


(b)          Notwithstanding
anything to the contrary contained in this Agreement, the following Transfers shall not require the approval set forth in Section
12.2(a):


 


(i)        Any Transfer by
BR I or a BR I Transferee of up to one hundred percent (100%) of its Interest to any Affiliate of BR I, including but not limited
to (A) BRG or any Person that is directly or indirectly owned by BRG; (B) Bluerock Residential Holdings, L.P. (“BR REIT
LP”) or any Person that is directly or indirectly owned by BR REIT LP; (C) Bluerock Growth Fund, LLC (“BGF”)
or any Person that is directly or indirectly owned by BGF; (D) BR II or any Person that is directly or indirectly owned by BR II;
and/or (E) Bluerock Real Estate, L.L.C. (“Bluerock”) or any Person that is directly or indirectly owned by Bluerock
(collectively, a “BR I Transferee”);


 


(ii)       Any Transfer by
BR II or a BR II Transferee of up to one hundred percent (100%) of its Interest to any Affiliate of BR II, including but not limited
to (A) BRG or any Person that is directly or indirectly owned by BRG; (B) BR REIT LP or any Person that is directly or indirectly
owned by BR REIT LP; (C) BGF or any Person that is directly or indirectly owned by BGF; (D) BR I or any Person that is directly
or indirectly owned by BR I; and/or (E) Bluerock or any Person that is directly or indirectly owned by Bluerock (collectively,
a “BR II Transferee”);


 


(iii)       Any Transfer
by Durant of up to one hundred percent (100%) of its Interest to any Bell Control Party, provided that (i) same does not require
any approval by Lender (if approval thereof by Lender is required, then such approval must be obtained as a prerequisite to any
such Transfer by Durant) and (ii) satisfactory evidence is provided to Manager confirming the status of such Bell Control Party.
Any fees owing to Lender or incurred by Manager relating to such Transfer shall be paid solely by Durant. The Transfer right provided
in this Section 12.2(iii) shall not be exercisable if the Property Management Agreement is terminated for any reason.


 




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(iv)       Any Transfer by
VBells of up to one hundred percent (100%) of its Interest to any Bell Control Party, provided that (i) same does not require any
approval by Lender (if approval thereof by Lender is required, then such approval must be obtained as a prerequisite to any such
Transfer by VBells) and (ii) satisfactory evidence is provided to Manager confirming the status of such Bell Control Party. Any
fees owing to Lender or incurred by Manager relating to such Transfer shall be paid solely by VBells. The Transfer right provided
in this Section 12.2(iv) shall not be exercisable if the Property Management Agreement is terminated for any reason. provided however,
as to subparagraphs (b)(i) and (b)(ii), and as to subparagraph (a), no Transfer shall be permitted and shall be void ab initio
if it shall violate any “Transfer” provision of any applicable Collateral Agreement with third party lenders.


 


(c)          Upon
the execution by any such BR I Transferee or BR II Transferee or Bell Control Party of such documents necessary to admit such party
into the Company and to cause the BR I Transferee or BR II Transferee or Bell Control Party (as applicable) to become bound by
this Agreement, the BR I Transferee or BR II Transferee or Bell Control Party (as applicable) shall become a Member, without any
further action or authorization by any other Member.


 


12.3        Admission
of Transferee; Partial Transfers. Notwithstanding anything in this Section 12 to the contrary and except as provided in Section
5.2(b), no Transfer of Interests in the Company shall be permitted unless the potential transferee is admitted as a Member under
this Section 12.3:12.3.


 


(a)          If
a Member Transfers all or any portion of its Interest in the Company, such transferee may become a Member if (i) such transferee
executes and agrees to be bound by this Agreement, (ii) the transferor and/or transferee pays all reasonable legal and other fees
and expenses incurred by the Company in connection with such assignment and substitution and (iii) the transferor and transferee
execute such documents and deliver such certificates to the Company and the remaining Members as may be required by applicable
law or otherwise advisable; and


 


(b)          Notwithstanding the
foregoing, any Transfer or purported Transfer of any Interest, whether to another Member or to a third party, shall be of no effect
and void ab initio, and such transferee shall not become a Member or an owner of the purportedly transferred Interest, if
the Manager determines in its sole discretion that:


 


(i)        the Transfer would
require registration of any Interest under, or result in a violation of, any federal or state securities laws;


 




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(ii)        the Transfer would
result in a termination of the Company under Code Section 708(b);


 


(iii)       as a result of
such Transfer the Company would be required to register as an investment company under the Investment Company Act of 1940, as amended,
or any rules or regulations promulgated thereunder;


 


(iv)        if as a result
of such Transfer the aggregate value of Interests held by “benefit plan investors” including at least one benefit plan
investor that is subject to ERISA, could be “significant” (as such terms are defined in U.S. Department of Labor Regulation
29 C.F.R. 2510.3-101(f)(2)) with the result that the assets of the Company could be deemed to be “plan assets” for
purposes of ERISA;


 


(v)       as a result of
such Transfer, the Company would or may have in the aggregate more than one hundred (100) members and material adverse federal
income tax consequences would result to a Member. For purposes of determining the number of members under this Section 12.3(b)(v),
a Beneficial Owner indirectly owning an interest in the Company through a Flow-Through Entity shall be considered a member, but
only if (i) substantially all of the value of the Beneficial Owner’s interest in the Flow-Through Entity is attributable
to the Flow-Through Entity’s interest (direct or indirect) in the Company and (ii) in the sole discretion of the Manager,
a principal purpose of the use of the Flow-Through Entity is to permit the Company to satisfy the 100-member limitation; or


 


(vi)        the transferor
failed to comply with the provisions of Sections 12.2(a) or (b).


 


The Manager may require
the provision of a certificate as to the legal nature and composition of a proposed transferee of an Interest of a Member and from
any Member as to its legal nature and composition and shall be entitled to rely on any such certificate in making such determinations
under this Section 12.3.


 


12.4      Withdrawals.
Each of the Members does hereby covenant and agree that it will not withdraw, resign, retire or disassociate from the Company,
except as a result of a Transfer of its entire Interest in the Company permitted under the terms of this Agreement and that it
will carry out its duties and responsibilities hereunder until the Company is terminated, liquidated and dissolved under Section
13. No Member shall be entitled to receive any distribution or otherwise receive the fair market value of its Interest in compensation
for any purported resignation or withdrawal not in accordance with the terms of this Agreement.


 


Section 13.         Dissolution.


 


13.1      Limitations.
The Company may be dissolved, liquidated and terminated only pursuant to the provisions of this Section 13, and, to the fullest
extent permitted by law but subject to the terms of this Agreement, the parties hereto do hereby irrevocably waive any and all
other rights they may have to cause a dissolution of the Company or a sale or partition of any or all of the Company’s assets.


 




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13.2        Exclusive Events
Requiring Dissolution. The Company shall be dissolved only upon the earliest to occur of the following events (each a “Dissolution
Event”): (a) the expiration of the specific term set forth in Section 2.5; (b) at any time at the election of the Manager
in writing; (c) at any time there are no Members unless otherwise continued in accordance with the Act); or (d) the entry of a
decree of judicial dissolution pursuant to Section 18-802 of the Act.


 


13.3        Liquidation.
Upon the occurrence of a Dissolution Event, the business of the Company shall be continued to the extent necessary to allow an
orderly winding up of its affairs, including the liquidation of the assets of the Company pursuant to the provisions of this Section
13.3, as promptly as practicable thereafter, and each of the following shall be accomplished:


 


(a)        The Manager shall
cause to be prepared a statement setting forth the assets and liabilities of the Company as of the date of dissolution, a copy
of which statement shall be furnished to all of the Members.


 


(b)        The property and
assets of the Company shall be liquidated or distributed in kind under the supervision of the Manager as promptly as possible,
but in an orderly, businesslike and commercially reasonable manner.


 


(c)        Any gain or loss
realized by the Company upon the sale of its property shall be deemed recognized and allocated to the Members in the manner set
forth in Section 7.2. To the extent that an asset is to be distributed in kind, such asset shall be deemed to have been sold at
its fair market value on the date of distribution, the gain or loss deemed realized upon such deemed sale shall be allocated in
accordance with Section 7.2 and the amount of the distribution shall be considered to be the fair market value of such asset.


 


(d)        The proceeds of sale
and all other assets of the Company shall be applied and distributed as follows and in the following order of priority:


 


(i)         to the satisfaction
of the debts and liabilities of the Company (contingent or otherwise) and the expenses of liquidation or distribution (whether
by payment or reasonable provision for payment), other than liabilities to Members or former Members for distributions;


 


(ii)        to the satisfaction
of loans made pursuant to Section 5.2(b) in proportion to the outstanding balances of such loans at the time of payment;


 


(iii)        the balance,
if any, to the Members in accordance with Section 6.1.


 




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13.4    Continuation
of the Company. Notwithstanding anything to the contrary contained herein, the death, retirement, resignation, expulsion, bankruptcy,
dissolution or removal of a Member shall not in and of itself cause the dissolution of the Company, and the Members are expressly
authorized to continue the business of the Company in such event, without any further action on the part of the Members.


 


Section 14.        Indemnification.


 


14.1     Exculpation
of Members. No Member, Manager, representative or officer of the Company shall be liable to the Company or to the other Members
for damages or otherwise with respect to any actions or failures to act taken or not taken relating to the Company, except to the
extent any related loss results from fraud, gross negligence or willful or wanton misconduct on the part of such Member, Manager,
representative or officer or the willful breach of any obligation under this Agreement.


 


14.2     Indemnification
by Company. The Company hereby indemnifies, holds harmless and defends the Members, the Manager, any officers and each of their
respective agents, officers, directors, managers, members, partners, shareholders and employees from and against any loss, expense,
damage or injury suffered or sustained by them (including but not limited to any judgment, award, settlement, reasonable attorneys’
fees and other costs or expenses incurred in connection with the defense of any actual or threatened action, proceeding or claim)
by reason of or arising out of (i) their activities on behalf of the Company or in furtherance of the interests of the Company,
including, without limitation, the provision of guaranties to third party lenders in respect of financings relating to the Company
or any of its assets (but specifically excluding from such indemnity by the Company any so called “bad boy” guaranties
or similar agreements which provide for recourse as a result of failure to comply with covenants, willful misconduct or gross negligence),
(ii) their status as Members, Manager, representatives, employees or officers of the Company, or (iii) the Company’s assets,
property, business or affairs (including, without limitation, the actions of any officer, director, member, manager or employee
of the Company or any of its Subsidiaries), if the acts or omissions were not performed or omitted fraudulently or as a result
of gross negligence or willful or wanton misconduct by the indemnified party or as a result of the willful breach of any obligation
under this Agreement by the indemnified party. For the purposes of this Section 14.2, officers, directors, employees and other
representatives of affiliates of a Member who are functioning as representatives of such Member in connection with this Agreement
shall be considered representatives of such Member for the purposes of this Section 14. Reasonable expenses incurred by the indemnified
party in connection with any such proceeding relating to the foregoing matters shall be paid or reimbursed by the Company in advance
of the final disposition of such proceeding upon receipt by the Company of (x) written affirmation by the Person requesting indemnification
of its good faith belief that it has met the standard of conduct necessary for indemnification by the Company and (y) a written
undertaking by or on behalf of such Person to repay such amount if it shall ultimately be determined by a court of competent jurisdiction
that such Person has not met such standard of conduct, which undertaking shall be an unlimited general obligation of the indemnified
party but need not be secured.


 




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14.3       General Indemnification
by the Members.


 


(a)      Notwithstanding any
other provision contained herein, each Member (the “Indemnifying Party”) hereby indemnifies and holds harmless
the other Members, the Manager, the Company and each of their Subsidiaries and their agents, officers, directors, managers, members,
partners, shareholders and employees (each, an “Indemnified Party”) from and against all losses, costs, expenses,
damages, claims and liabilities (including reasonable attorneys’ fees) as a result of or arising out of (i) any breach of
any obligation of the Indemnifying Party under this Agreement, or (ii) any breach of any obligation by or any inaccuracy in or
breach of any representation or warranty made by the Indemnifying Party, whether in this Agreement or in any other agreement, with
respect to the conveyance, assignment, contribution or other transfer of the Property (or interests therein, including the TIC-2
Interest), assets, agreements, rights or other interests conveyed, assigned, contributed or otherwise transferred to the Company
(collectively, the “Inducement Agreements”).


 


(b)       Except as otherwise
provided herein or in any other agreement, recourse for the indemnity obligations of the Members under this Section 14.3 shall
be limited to such Indemnifying Party’s Interest in the Company.


 


(c)       The indemnities,
contributions and other obligations under this Agreement shall be in addition to any rights that any Indemnified Party may have
at law, in equity or otherwise. The terms of this Section 14 shall survive termination of this Agreement.


 


Section 15.          Sale Rights.


 


15.1       Push/Pull Rights.


 


(a)         Availability
of Rights. At any time that the Members are unable to agree on a Major Decision and such failure to agree has continued for
fifteen (15) days after written notice from one Member to the other Members indicating an intention to exercise rights under this
Section 15.1, any Member may exercise its right to initiate the provisions of this Section 15.1.


 


(b)         Exercise.
The Member wishing to exercise its rights pursuant to this Section 15.1 (the “Offeror”) shall do so by giving
notice to the other such Members (individually and collectively the “Offerees”) setting forth a statement of
intent to invoke its rights under this Section 15.1, stating therein the aggregate dollar amount (the “Valuation Amount”)
that the Offeror would be willing to pay for the assets of the Company as of the Closing Date (as defined below) free and clear
of all liabilities, and setting forth all oral or written offers and inquiries received by the Offeror during the previous twelve-month
period relating to the financing, disposition or leasing of any Company property (including the TIC-2 Interest).


 




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(c)          
Offeree Response. After receipt of such notice, each of the Offerees shall elect to either (i) sell its entire Interest
to the Offeror for an amount equal to the amount such Offeree would have been entitled to receive if the Company had sold its assets
for the Valuation Amount on the Closing Date and the Company had immediately paid all Company liabilities and Imputed Closing Costs
and distributed the net proceeds of sale to the Members in satisfaction of their Interests pursuant to Section 13.3, or (ii) purchase
the entire Interest of the Offeror (or if more than one Offeree elects to purchase the Interest of the Offeror, its prorata share
thereof) for an amount equal to the amount the Offeror would have been entitled to receive if the Company had sold all of its assets
for the Valuation Amount on the Closing Date and the Company had immediately paid all Company liabilities and Imputed Closing Costs
and distributed the net proceeds of the sale to the Members in satisfaction of their Interests pursuant to Section 13.3. Each Offeree
shall have thirty (30) days from the giving of the Offeror’s notice in which to exercise either of its options by giving
written notice to the Offeror. If any Offeree does not elect to acquire the Offeror’s Interest within such time period, the
Offeree shall be deemed to have elected to sell its Interest to the Offeror (or if applicable, the other Offerees) as provided
in subsection (i) above.


 


(d)         Earnest Money.
Within five (5) business days after an election has been made or deemed made under Section 15.1(c), the acquiring Members shall
deposit with a mutually acceptable third-party escrow agent a non-refundable earnest money deposit in the amount of five percent
(5%) of the amount the selling Members are entitled to receive for their Interest under this Section 15.1, which amount shall be
applied to the purchase price for such Interest at closing. If the acquiring Members should thereafter fail to consummate the transaction
for any reason other than a default by the selling Members or a refusal by any lender of the Company or any Subsidiary who has
a right under its loan documents to consent to such transfer to so consent, (i) (A) the earnest money deposit shall be distributed
from escrow to the selling Members (on a pro rata basis), free of all claims of the acquiring Members, as liquidated damages and
constituting the sole and exclusive remedy available to the selling Members because of a default by the acquiring Members or (B)
the selling Members may, by delivering to the acquiring Members written notice thereof, elect to buy the acquiring Members’
entire Interest for an amount equal to the amount the acquiring Members would have been entitled to receive if the Company had
sold all of its assets for the Valuation Amount and the Company had immediately paid all Company liabilities and Imputed Closing
Costs and distributed the net proceeds of the sale to the Members in satisfaction of their Interests pursuant to Section 13.3,
in which case, the Closing Date therefor shall be the date specified in the selling Members’ notice, and (ii) if the acquiring
Members were an Offeror, the non-refundable earnest money deposit for any future election by such acquiring Members to buy the
selling Members’ Interest shall be twenty percent (20%) of the amount the selling Members are entitled to receive for their
respective Interest in connection with such future election.


 


(e)          Closing.
The closing of an acquisition pursuant to this Section 15.1 shall be held at the principal place of business of the Company on
a mutually acceptable date (the “Closing Date”) not later than sixty (60) days (or, if any Offeree is the acquiring
Member, ninety (90) days) after an election has been made or deemed made under Section 15.1(c). At such closing, the following
shall occur:


 


(i)      The selling Members
shall assign to the acquiring Members or their designees the selling Members’ Interest in accordance with the instructions
of the acquiring Members, and shall execute and deliver to the acquiring Members all documents which may be required to give effect
to the disposition and acquisition of such Interests, in each case free and clear of all liens, claims, and encumbrances, with
covenants of general warranty; and


 




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(ii)         The
acquiring Members shall pay to the selling Members the consideration therefor in cash.


 


15.2       
Rights Upon Sale of TIC-2 Interest. Upon any sale of the TIC-2 Interest that is not accompanied by a Dissolution Event,
each of Durant, VBells and West (for purposes of this Section 15.2, each a “Takeout Member”) shall have the
right (the “Takeout Right”) to require BR I to acquire its respective Interest by delivering written notice
to BR I exercising such right within fifteen (15) days following completion of the sale of the TIC-2 Interest. Provided such Takeout
Right has been timely exercised by a Takeout Member, BR I shall be obligated under such circumstances (and only under such circumstances)
to purchase the Interest of such Takeout Member. The purchase price for the Interest of such Takeout Member shall be the amount
that such Takeout Member would have received had a Dissolution Event occurred immediately after the sale of the TIC-2 Interest.
The closing of the acquisition by BR I of the Interest of such Takeout Member shall be handled in accordance with the provisions
of Sections 15.1(d) and (e) above.


 


15.3       
Enforcement.
It is expressly agreed that the remedy at law for breach of the obligations of the Members set forth in this Section 15 is inadequate
in view of (i) the complexities and uncertainties in measuring the actual damage to be sustained by reason of the failure of a
Member to comply fully with such obligations, and (ii) the uniqueness of the Company’s business and the Members’ relationships.
Accordingly, each of such obligations shall be, and is hereby expressly made, enforceable by an order of specific performance.


 


Section 16.         
Miscellaneous.


 


16.1        Notices.


 


(a) All notices, requests,
approvals, authorizations, consents and other communications required or permitted under this Agreement shall be in writing and
shall be (as elected by the Person giving such notice) hand delivered by messenger or overnight courier service, mailed (airmail,
if international) by registered or certified mail (postage prepaid), return receipt requested, or sent via facsimile (provided
such facsimile is immediately followed by the delivery of an original copy of same via one of the other foregoing delivery methods)
addressed to:


 


If to BR I:


 


c/o Bluerock Real Estate, L.L.C.


712 Fifth Avenue, 9th Floor


New York, New York 10019


Attn: Jordan B. Ruddy and Michael L. Konig,
Esq.


Facsimile: (646) 278-4220


 




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If to BR II:


 


c/o Bluerock Real Estate, L.L.C.


712 Fifth Avenue, 9th Floor


New York, New York 10019


Attn: Jordan B. Ruddy and Michael L. Konig,
Esq.


Facsimile: (646) 278-4220


 


If to Durant or VBells:


 


c/o Bell Partners Inc.


300 North Greene Street, Suite 1500


Greensboro, North Carolina 27401


Attn: E. Durant Bell


Facsimile: ______________


 


If to West:


 


Craig S. West


Managing Director| Multifamily Finance


Walker & Dunlop


1050 Crown Pointe Parkway, Suite 600


Atlanta, GA 30338


 


(b)         
Each such notice
shall be deemed delivered (i) on the date delivered if by hand delivery or overnight courier service or facsimile, and (ii) on
the date upon which the return receipt is signed or delivery is refused or the notice is designated by the postal authorities as
not deliverable, as the case may be, if mailed (provided, however, if such actual delivery occurs after 5:00 p.m. (local time where
received), then such notice or demand shall be deemed delivered on the immediately following business day after the actual day
of delivery).


 


(c)         
By giving to the
other parties at least fifteen (15) days written notice thereof, the parties hereto and their respective successors and assigns
shall have the right from time to time and at any time during the term of this Agreement to change their respective notice addresses.


 


16.2       Governing Law.
This Agreement and the rights of the Members hereunder shall be governed by, and interpreted in accordance with, the laws of the
State of Delaware. The Company and each Member agree that any dispute among or between them concerning the Company or this Agreement
shall be litigated in the state or federal courts sitting in the City of New York, State of New York. Each of the parties hereto
irrevocably submits to the jurisdiction of the New York State courts and the Federal courts sitting in the State of New York and
agree that all matters involving this Agreement shall be heard and determined in such courts. Each of the parties hereto waives
irrevocably the defense of inconvenient forum to the maintenance of such action or proceeding. To the fullest extent permitted
by applicable law, in any such suit, action or proceeding, the Company and each of the Members irrevocably and unconditionally
waive any right it may have to a trial by jury. Each of the parties hereto designates CT Corporation System, 1633 Broadway, New
York, New York 10019, as its agent for service of process in the State of New York, which designation may only be changed on not
less than ten


(10) days’ prior notice to all of the
other parties.


 




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16.3    Successors.
This Agreement shall be binding upon, and inure to the benefit of, the parties and their successors and permitted assigns. Except
as otherwise provided herein, any Member who Transfers its Interest as permitted by the terms of this Agreement shall have no further
liability or obligation hereunder, except with respect to claims arising prior to such Transfer.


 


16.3     Pronouns.
Whenever from the context it appears appropriate, each term stated in either the singular or the plural shall include the singular
and the plural, and pronouns stated in either the masculine, the feminine or the neuter gender shall include the masculine, feminine
and neuter.


 


16.4     Table of Contents
and Captions Not Part of Agreement. The table of contents and captions contained in this Agreement are inserted only as a matter
of convenience and in no way define, limit or extend the scope or intent of this Agreement or any provisions hereof.


 


16.5     Severability.
If any provision of this Agreement shall be held invalid, illegal or unenforceable in any jurisdiction or in any respect, then
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired,
and the Members shall use their best efforts to amend or substitute such invalid, illegal or unenforceable provision with enforceable
and valid provisions which would produce as nearly as possible the rights and obligations previously intended by the Members without
renegotiation of any material terms and conditions stipulated herein.


 


16.6      Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same instrument.


 


16.7     Entire Agreement
and Amendment. This Agreement and the other written agreements described herein between the parties hereto entered into as
of the date hereof, constitute the entire agreement between the Members relating to the subject matter hereof. In the event of
any conflict between this Agreement or such other written agreements, the terms and provisions of this Agreement shall govern and
control.


 


16.8     Further Assurances.
Each Member agrees to execute and deliver any and all additional instruments and documents and do any and all acts and things as
may be necessary or expedient to effectuate more fully this Agreement or any provisions hereof or to carry on the business contemplated
hereunder.


 


16.9     No Third Party
Rights. The provisions of this Agreement are for the exclusive benefit of the Members and the Company, and no other party (including,
without limitation, any creditor of the Company) shall have any right or claim against any Member by reason of those provisions
or be entitled to enforce any of those provisions against any Member.


 




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16.10        Incorporation
by Reference. Every Exhibit and Annex attached to this Agreement is incorporated in this Agreement by reference.


 


16.11         Limitation
on Liability. Except as set forth in Section 14 or as set forth in Section 5.2(b), the Members shall not be bound by, or be
personally liable for, by reason of being a Member, a judgment, decree or order of a court or in any other manner, for the expenses,
liabilities or obligations of the Company, and the liability of each Member shall be limited solely to the amount of its Capital
Contributions as provided under Section 5. Except as set forth in Section 5.2(b), any claim against any Member (the “Member
in Question”) which may arise under this Agreement shall be made only against, and shall be limited to, such Member in
Question’s Interest, the proceeds of the sale by the Member in Question of such Interest or the undivided interest in the
assets of the Company distributed to the Member in Question pursuant to Section 13.3(d) hereof. Except as set forth in Section
5.2(b), any right to proceed against (i) any other assets of the Member in Question or (ii) any agent, officer, director, member,
manager, partner, shareholder or employee of the Member in Question or the assets of any such Person, as a result of such a claim
against the Member in Question arising under this Agreement or otherwise, is hereby irrevocably and unconditionally waived.


 


16.12        Remedies Cumulative.
The rights and remedies given in this Agreement and by law to a Member shall be deemed cumulative, and the exercise of one of such
remedies shall not operate to bar the exercise of any other rights and remedies reserved to a Member under the provisions of this
Agreement or given to a Member by law. In the event of any dispute between the parties hereto, the prevailing party(ies) shall
be entitled to recover from the other party reasonable attorney’s fees and costs incurred in connection therewith.


 


16.13        No Waiver.
One or more waivers of the breach of any provision of this Agreement by any Member shall not be construed as a waiver of a subsequent
breach of the same or any other provision, nor shall any delay or omission by a Member to seek a remedy for any breach of this
Agreement or to exercise the rights accruing to a Member by reason of such breach be deemed a waiver by a Member of its remedies
and rights with respect to such breach.


 


16.14        Limitation
On Use of Names. Notwithstanding anything contained in this Agreement or otherwise to the contrary, each Member as to itself
agrees that neither it nor any of its Affiliates, agents or representatives is granted a license to use or shall use the name of
any other Member under any circumstances whatsoever, except such name may be used in furtherance of the business of the Company
but only as and to the extent approved by the Manager.


 


16.15        Publicly Traded
Partnership Provision. Each Member hereby severally covenants and agrees with the other Members for the benefit of such Members,
that (i) it is not currently making a market in Interests in the Company and will not in the future make such a market and (ii)
it will not Transfer its Interest on an established securities market, a secondary market or an over-the-counter market or the
substantial equivalent thereof within the meaning of Code Section 7704 and the Regulations, rulings and other pronouncements of
the U.S. Internal Revenue Service or the Department of the Treasury thereunder. Each Member further agrees that it will not assign
any Interest in the Company to any assignee unless such assignee agrees to be bound by this Section 16.16 and to assign such Interest
only to such Persons who agree to be similarly bound.


 




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16.16        Uniform Commercial
Code. The interest of each Member in the Company shall be an “uncertificated security” governed by Article 8 of
the Delaware UCC and the UCC as enacted in the State of New York (the “New York UCC”), including, without limitation,
(i) for purposes of the definition of a “security” thereunder, the interest of each Member in the Company shall be
a security governed by Article 8 of the Delaware UCC and the New York UCC and (ii) for purposes of the definition of an “uncertificated
security” thereunder. By their execution of this Agreement, the Members and Manager expressly revoke any prior election of
the Company to “certificate” the membership interests in the Company and any existing certificates outstanding with
respect to the membership interests are expressly withdrawn, terminated and cancelled and, for all purposes, deemed null and void.


 


16.17        No Construction
Against Drafter. This Agreement has been negotiated and prepared by the Members and their respective attorneys and, should
any provision of this Agreement require judicial interpretation, the court interpreting or construing such provision shall not
apply the rule of construction that a document is to be construed more strictly against one party.


 


[Remainder of Page Intentionally Left Blank]


 




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IN WITNESS WHEREOF, the
Members have executed this Second Amended and Restated Limited Liability Company Agreement as of the date set forth above.


 


	 	MEMBERS:
	 	 
	 	BR Waterford JV Member, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Jordan Ruddy
	 	 	Jordan Ruddy, Authorized Signatory
	 	 	 
	 	BR Waterford JV Minority Member, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	Bluerock Residential Holdings, L.P.,
	 	 	a Delaware limited partnership
	 	Its:	Sole Member
	 	 	 
	 	By:	Bluerock Residential Growth REIT , Inc.,
	 	 	a Maryland corporation
	 	Its:	General Partner
	 	 	 
	 	By:	/s/ Michael L. Konig
	 	Name: 	Michael L. Konig
	 	Its:	Chief Operating Officer, Secretary
	 	 	and General Counsel


 


[Signature Page to Second Amended and Restated
Limited Liability Company Agreement of Bell BR Waterford Crossing JV, LLC]


 




    	 



    	 



    

  


	 	V BELLS LLC,
	 	a North Carolina limited liability company
	 	 	 
	 	By: 	/s/ Steven D. Bell
	 	Name: Steven D. Bell 
	 	Title: Member


 


[Signature Page to Second Amended and Restated
Limited Liability Company


Agreement of Bell BR Waterford Crossing JV,
LLC]


 




    	 



    	 



    




 


	 	DURANT HOLDINGS, LLC,
	 	a North Carolina limited liability company
	 	 	 
	 	By: 	/s/ E. Durant Bell
	 	Name: E. Durant Bell
	 	Title: Sole Member


 


[Signature Page to Second Amended and Restated
Limited Liability Company


Agreement of Bell BR Waterford Crossing JV,
LLC]


 




    	 



    	 



    

  


	 	/s/ Craig S. West
	 	Craig S. West


 


[Signature Page to Second Amended and Restated
Limited Liability Company


Agreement of Bell BR Waterford Crossing JV,
LLC]


 




    	 



    	 



    

  


EXHIBIT A


 


Capital Contributions and Percentage Interests


 


		 	Initial Capital	 	 	 	 
	Member Name	 	Contribution	 	 	Percentage Interest	 
	 	 	 	 	 	 	 
	BR Waterford JV Member, LLC	 	$	9,086,370.49	 	 	 	94.20	%
	 	 	 	 	 	 	 	 	 
	BR Waterford JV Minority Member, LLC	 	$	9,095.47	 	 	 	0.09	%
	 	 	 	 	 	 	 	 	 
	Durant Holdings, LLC	 	$	125,000.00	 	 	 	1.30	%
	 	 	 	 	 	 	 	 	 
	V BELLS LLC	 	$	325,000.00	 	 	 	3.37	%
	 	 	 	 	 	 	 	 	 
	Craig S. West	 	$	100,000.00	 	 	 	1.04	%