Exhibit 10.54


 


 


AMENDED
AND RESTATED


 


LIMITED LIABILITY COMPANY AGREEMENT


 


OF


 


BR LANSBROOK JV MEMBER, LLC


 


A DELAWARE LIMITED LIABILITY COMPANY


 


DATED EFFECTIVE AS OF MAY 15, 2014


 





  






    	 



    	 



    

 




TABLE OF CONTENTS


 


	 	 	Page
	 	 	 
	Section 1.	Definitions	1
	 	 	 
	Section 2.	Organization of the Company	8
	 	 	 
	2.1	Name	8
	 	 	 
	2.2	Place of Registered Office; Registered Agent	9
	 	 	 
	2.3	Principal Office	9
	 	 	 
	2.4	Filings	9
	 	 	 
	2.5	Term	9
	 	 	 
	2.6	Expenses of the Company	9
	 	 	 
	Section 3.	Purpose	9
	 	 	 
	Section 4.	Conditions	9
	 	 	 
	4.1	BRG Conditions	9
	 	 	 
	4.2	SOIF II Conditions	10
	 	 	 
	4.3	SOIF III Conditions	10
	 	 	 
	Section 5.	Capital Contributions, Loans, Percentage Interests and Capital Accounts	10
	 	 	 
	5.1	Base Capital Contributions	10
	 	 	 
	5.2	Additional Capital Contributions	11
	 	 	 
	5.3	Percentage Ownership Interest	12
	 	 	 
	5.4	Return of Capital Contribution	13
	 	 	 
	5.5	No Interest on Capital	13
	 	 	 
	5.6	Capital Accounts	13
	 	 	 
	5.7	New Members	13
	 	 	 
	Section 6.	Distributions	14
	 	 	 
	6.1	Distribution of Distributable Funds	14


 




    	 



    	 



    

 


	6.2	Distributions in Kind	14
	 	 	 
	Section 7.	Allocations	14
	 	 	 
	7.1	Allocation of Net Income and Net Losses Other than in Liquidation	14
	 	 	 
	7.2	Allocation of Net Income and Net Losses in Liquidation	15
	 	 	 
	7.3	U.S. Tax Allocations	15
	 	 	 
	Section 8.	Books, Records, Tax Matters and Bank Accounts	15
	 	 	 
	8.1	Books and Records	15
	 	 	 
	8.2	Reports and Financial Statements	15
	 	 	 
	8.3	Tax Matters Member	16
	 	 	 
	8.4	Bank Accounts	17
	 	 	 
	8.5	Tax Returns	17
	 	 	 
	8.6	Expenses	17
	 	 	 
	Section 9.	Management	17
	 	 	 
	9.1	Management	17
	 	 	 
	9.2	Loans to Subsidiaries	18
	 	 	 
	9.3	Affiliate Transactions	18
	 	 	 
	9.4	Other Activities	18
	 	 	 
	9.5	Operation in Accordance with REOC/REIT Requirements	18
	 	 	 
	9.6	FCPA	21
	 	 	 
	Section 10.	Confidentiality	21
	 	 	 
	Section 11.	Representations and Warranties	22
	 	 	 
	11.1	In General	22
	 	 	 
	11.2	Representations and Warranties	22
	 	 	 
	Section 12.	Sale, Assignment, Transfer or other Disposition	25
	 	 	 
	12.1	Prohibited Transfers	25


 




    	 



    	 



    

 


	12.2	Affiliate Transfers	25
	 	 	 
	12.3	Admission of Transferee; Partial Transfers	26
	 	 	 
	12.4	Withdrawals	28
	 	 	 
	Section 13.	Dissolution	28
	 	 	 
	13.1	Limitations	28
	 	 	 
	13.2	Exclusive Events Requiring Dissolution	28
	 	 	 
	13.3	Liquidation	28
	 	 	 
	13.4	Continuation of the Company	29
	 	 	 
	Section 14.	Indemnification	29
	 	 	 
	14.1	Exculpation of Members	29
	 	 	 
	14.2	Indemnification by Company	29
	 	 	 
	14.3	General Indemnification by the Members	30
	 	 	 
	Section 15.	Mediation and Arbitration of Disputes	30
	 	 	 
	15.1	Events Giving Rise to Mediation or Arbitration	30
	 	 	 
	15.2	Selection of Arbitrators	31
	 	 	 
	15.3	Arbitration Hearing	31
	 	 	 
	15.4	Decision of the Arbitrators/Binding Effect	31
	 	 	 
	Section 16.	Miscellaneous	31
	 	 	 
	16.1	Notices	31
	 	 	 
	16.2	Governing Law	33
	 	 	 
	16.3	Successors	33
	 	 	 
	16.4	Pronouns	33
	 	 	 
	16.5	Table of Contents and Captions Not Part of Agreement	33
	 	 	 
	16.6	Severability	34
	 	 	 
	16.7	Counterparts	34


 




    	 



    	 



    

 


	16.8	Entire Agreement and Amendment	34
	 	 	 
	16.9	Further Assurances	34
	 	 	 
	16.10	No Third Party Rights	34
	 	 	 
	16.11	Incorporation by Reference	34
	 	 	 
	16.12	Limitation on Liability	34
	 	 	 
	16.13	Remedies Cumulative	35
	 	 	 
	16.14	No Waiver	35
	 	 	 
	16.15	Limitation On Use of Names	35
	 	 	 
	16.16	Publicly Traded Partnership Provision	35
	 	 	 
	16.17	Public Announcements	35
	 	 	 
	16.18	Uniform Commercial Code	35
	 	 	 
	16.19	No Construction Against Drafter	35


 




    	 



    	 



    




 


BR LANSBROOK JV MEMBER, LLC

AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT


 


This Amended and Restated
Limited Liability Company Agreement (this “Agreement”) is adopted, executed, and agreed to be effective on May
15, 2014 (the “Effective Date”), by and among BRG Lansbrook, LLC, a Delaware limited liability company (“BRG”),
Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company (“SOIF II”), and Bluerock
Special Opportunity + Income Fund III, LLC, a Delaware limited liability company (“SOIF III”), as Members (together,
the “Members”), and BRG as Manager (the “Manager”).


 


WITNESSETH:


 


WHEREAS, BR Lansbrook
JV Member, LLC, a Delaware limited liability company (the “Company”), was formed on February 4, 2014, pursuant
to the Act;


 


WHEREAS, the Members
initially entered into the Limited Liability Company Agreement of the Company on February 4, 2014 (the “LLC Agreement”);
and


 


WHEREAS, the parties
now desire to amend and restate the LLC Agreement to admit BRG as a member of the Company and to amend the LLC Agreement in certain
respects.


 


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 parties hereto agree as follows:


 


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.


 


“Additional
Capital Contributions” shall have the meaning provided in Section 5.2(a).


 


“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). Notwithstanding
the foregoing, BRG, SOIF II and SOIF III shall not be considered to be “Affiliates” of one another.


 




    	 



    	 



    

 


“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 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.


 


“Base Capital
Contributions” shall mean, with respect to any Member, the Capital Contributions shown for that Member on the Exhibit
A attached to this Agreement as of the Effective Date (which has taken into account the Capital Contributions made pursuant
to Section 5.1 or otherwise accounted for by the provisions of Section 5.1) and which may be updated from time to
time to reflect Capital Contributions as of a particular date.


 


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


 


“BR Affiliate”
shall have the meaning provided in Section 9.5(a).


 


“BR Carroll
Lansbrook JV LLC Agreement” means the Limited Liability Company Agreement for BR Carroll Lansbrook JV, LLC dated as of
February 12, 2014.


 


“BRG”
shall have the meaning provided in the first paragraph of this Agreement.


 


“BRG Transferee”
shall have the meaning provided in Section 12.2(b)(iii).


 


“BR REIT”
shall have the meaning provided in Section 12.2(b)(i).


 


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


 


“Capital Contribution”
shall mean, with respect to any Member, the aggregate amount of: (A) cash contributed or deemed contributed in the form of Base
Capital Contributions; (B) cash contributed or deemed contributed in the form of Additional Capital Contributions; and (C) 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.


 




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


 


“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 have the meaning provided in the Recitals to this Agreement.


 


“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).


 


“Default Loan”
shall have the meaning provided in Section 5.2(b)(i).


 


“Default Loan
Rate” shall have the meaning provided in Section 5.2(b)(i).


 


“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 the sum of an amount equal to the Cash Flow
of the Company for such month or other period, as applicable, as reduced by 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).


 


“Effective Date”
shall have the meaning provided in the first paragraph of this Agreement.


 


“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.


 




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“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.


 


“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.


 


“LLC Agreement”
shall have the meaning provided in the Recitals to this Agreement.


 


“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
of BR Carroll Lansbrook JV, LLC 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 or any Subsidiary’s assets or all of the Interests of the Members
in the Company or of the Company’s interest in any Subsidiary, in one or a series of related transactions;


 


		(ii)	except as expressly provided in Section 12.2(b) hereof with respect to Transfers by SOIF
II or a SOIF II Transferee to a SOIF II Transferee and with respect to Transfers by SOIF III or a SOIF III Transferee to a SOIF
III Transferee and with respect to Transfers by BRG or a BRG Transferee to a BRG Transferee as permitted hereunder (or in Section
12 of the Limited Liability Company of BR Carroll Lansbrook JV, LLC, and with respect to Transfers by Carroll as permitted under
the Limited Liability Company Agreement for BR Carroll Lansbrook JV, LLC, as such defined terms are defined therein), each as permitted
thereunder, the admission or removal of any Member to the Company or to any Subsidiary or the Company’s or any Subsidiary’s
issuance to any third party of any equity interest in the Company or in such Subsidiary (including interests convertible into,
or exchangeable for, equity interests in the Company or such Subsidiary);



 




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		(iii)	except upon the occurrence of any Dissolution Event hereunder (or under the Limited Liability Company
Agreement for BR Carroll Lansbrook, LLC), any liquidation, dissolution or termination of the Company or any Subsidiary;



 


		(iii)	doing any act which would make it impossible or unreasonably burdensome to carry on the business
of the Company;



 


		(iv)	giving, granting or undertaking any options, rights of first refusal, deeds of trust, mortgages,
pledges, ground leases, security or other interests in or encumbering the Property, any portion thereof or any other material assets;



 


		(v)	any material change in the strategic direction of the Company or any material expansion of the
business of the Company;



 


(vi)        selling, conveying
or effecting any other direct or indirect transfer of the Property, any Subsidiary or other material asset of the Company or any
Subsidiary or any portion thereof or the entering into of any agreement, commitment or assumption with respect to any of the foregoing;


 


		(vii)	other than with respect to the Property, acquiring, directly or through any Subsidiaries, 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); and



 


(viii)      taking
any action by the Company or any Subsidiary that is reasonably likely to result in any Member or any of its Affiliates (including
any Member of BR Carroll Lansbrook JV, LLC) having individual liability under any so called “bad boy” guaranties or
similar agreements provided to third party lenders in respect of financings relating to the Company, the Subsidiaries or any of
their assets which provide for recourse as a result of willful misconduct, fraud or gross negligence or failure to comply with
the covenants or any other provisions of such “bad boy” guaranties;


 


(ix)         institute
or settle any Company or Subsidiary legal claims in excess of $50,000;


 


(x)          employ,
enter into any contract with (or materially modify any contract with), or otherwise compensate, directly or indirectly, the Manager
or any Affiliate of the Manager;


 


(xi)         amend,
modify, recast, refinance or replace any financing to which the Company or a Subsidiary is a party or which encumbers the Property;


 


(xii)        incur
on behalf of the Company or a Subsidiary during any year any capital expenditures in excess of $50,000 in the aggregate unless
pursuant to the Annual Business Plan approved by the Company under the Limited Liability Company Agreement for BR Carroll Lansbrook
JV, LLC;


 




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(xiii)       make
any loan to any Member (or any member of any Subsidiary), except as expressly provided for in this Agreement or in the Limited
Liability Company Agreement for BR Carroll Lansbrook JV, LLC);


 


(xiv)      cause
or permit the Company or a Subsidiary to file for or fail to contest a bankruptcy proceeding, or seek or permit a receivership
or make an assignment for the benefit of its creditors;


 


(xv)       terminate
the Property Management Agreement or issue a notice of default pursuant to the Property Management Agreement; provided, however,
that (A) such termination shall be subject to the terms of the Property Management Agreement and (B) in the event of a default
by Property Manager under the Property Management Agreement, which default is not cured in any available cure period, only the
Company shall be authorized to take any action with respect to any remedies on behalf of the Company or any Subsidiary, including
the right to terminate the Property Management Agreement, and to solicit bids for, and enter into any replacement Property Management
Agreement with, any replacement manager thereunder;


 


(xvi)      cause
or permit any of the organizational documents, including this Agreement, of the Company or of any Subsidiary of the Company to
be amended in any manner, other than any amendment (A) required by (1) a lender to the Company or any Subsidiary of the Company
or (2) that is required in order for a REIT Member to qualify as a “real estate investment trust” under the Code, in
each case, to the extent such amendment referenced in clauses (1) and (2) of this subparagraph does not result in the dilution
of any Member hereof or of any member in BR Carroll Lansbrook JV, LLC, does not adversely affect any Member’s right to Distributions
pursuant to Section 6 hereof or the rights of any member thereof to distributions payable to any member in BR Carroll Lansbrook
JV, LLC and does not otherwise have a materially adverse effect on the rights of any Member or of any member in BR Carroll Lansbrook
JV, LLC, or (B) that is solely ministerial in nature to reflect or implement this Agreement or the Limited Liability Company Agreement
of BR Carroll Lansbrook JV, LLC under its express terms (such as, for example, to periodically update the Members’ respective
Capital Contribution amounts, Percentage Interests or Management Committee representatives).


 


(xvii)     make
distributions to the Members (or the members of BR Carroll Lansbrook JV, LLC), except in accordance with Section 6 of this
Agreement (and the Limited Liability Company Agreement for BR Carroll Lansbrook JV, LLC).


 


(xviii)    appointment
and removal of the Company’s Representatives on the Management Committee for BR Carroll Lansbrook JV, LLC;


 


(xix)       the
amount of, whether and when to make, contributions to the Company (other than the contributions under Section 5.1 made contemporaneously
with the execution of this Agreement) and Distributions by the Company;


 


(xx)        amendment
of the Company’s Certificate of Formation or this Agreement, except as may be required to conform this Agreement with the
commercially reasonable requirements of a third party lender; or


 




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(xxi)       to
the extent not covered by the foregoing, any matter defined as a Major Decision under the BR Carroll Lansbrook JV LLC Agreement.


 


“Management
Committee” shall mean the management committee of BR Carroll Lansbrook JV, LLC.


 


“Manager”
shall have the meaning provided in the first paragraph of this Agreement.


 


“Member”
and “Members” shall mean SOIF II, SOIF III, BRG 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 16.18.


 


“Operating Partnership”
shall mean Bluerock Residential Holdings, L.P., a Delaware limited partnership.


 


“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 provided in the BR Carroll Lansbrook JV LLC Agreement.


 


“Property Management
Agreement” shall mean that certain management agreement attached hereto as Exhibit B entered into between BR Carroll
Lansbrook, LLC, a Delaware limited liability company, as owner, and Property Manager, as property manager, pursuant to which Property
Manager will provide certain asset management services for the Property.


 


“Property Manager”
shall mean Carroll Management Group, LLC, a Georgia limited liability company.


 


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


 


“Property Owner”
means BR Carroll Lansbrook, LLC, a Delaware limited liability company.


 




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“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 Prohibited
Transactions” shall mean, for purposes of Section 9.5(c), any of the actions specifically set forth in Section
9.5(c).


 


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


 


“REOC” shall
have the meaning provided in Section 9.5(a).


 


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


 


“SOIF II”
shall have the meaning provided in the first paragraph of this Agreement.


 


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


 


“SOIF III”
shall have the meaning provided in the first paragraph of this Agreement.


 


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


 


“Subsidiary”
shall mean any corporation, partnership, limited liability company or other entity of which least a majority of the capital stock
or other equity securities is owned, directly or indirectly, by the Company.


 


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


 


“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.


 


Organization
of the Company. 


 


Name. The name
of the Company shall be “BR Lansbrook JV Member, 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.


 




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Place of Registered
Office; Registered Agent. The address of the registered office of the Company in the State of Delaware is 2711 Centerville
Road, Wilmington, Delaware 19808. The name and address of the registered agent for service of process on the Company in the State
of Delaware is Corporation Service Company, 2711 Centerville Road, Wilmington, Delaware 19808. 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.


 


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.


 


Filings. On or
before execution of this Agreement, an authorized person within the meaning of the Act shall have duly filed or caused to be filed
the Certificate of Formation of the Company with the office of the Secretary of State of Delaware, as provided in Section 18-201
of the Act, and the Members hereby ratify such filing. 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.


 


Term. The Company
shall continue in existence from the date hereof until December 31, 2064, unless extended by the Members, or until the Company
is dissolved as provided in Section 13, whichever shall occur earlier.


 


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).


 


Purpose.


 


The Company is organized
for the purpose of engaging in any lawful business, purpose or activity that may be undertaken by a limited liability company organized
under and governed by the Act. 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.


 


Conditions.


 


BRG Conditions.
The obligation of BRG to consummate the transactions contemplated herein and to make the initial Capital Contributions under Section
5.1 is subject to fulfillment of all of the following conditions on or prior to the date hereof:


 




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(a)          SOIF
II and SOIF III shall each execute and deliver to BRG all assignments of interest and any other documents necessary for the consummation
of the purchase by BRG of a portion of their respective interests in the Company, as more fully set forth in that certain Membership
Interest Purchase Agreement by and between Operating Partnership, SOIF II and SOIF III dated effective May 15, 2014 (the “MIPA”);
and


 


(b)          All
of the representations and warranties of SOIF II and SOIF III contained in this Agreement shall be true and correct as of the date
hereof.


SOIF II Conditions.
The obligation of SOIF II to consummate the transactions contemplated herein is subject to fulfillment of all of the following
conditions on or prior to the date hereof:


 


(a)          BRG
shall deposit into a designated escrow account the amount of its Base Capital Contribution set forth in Section 5.1 and
shall execute and deliver to SOIF II all assignments of interest and other documents required pursuant to the MIPA; and


 


(b)          All
of the representations and warranties of BRG and SOIF III contained in this Agreement shall be true and correct as of the date
hereof.


 


4.3           SOIF
III Conditions. The obligation of SOIF III to consummate the transactions contemplated herein is subject to fulfillment of
all the following conditions on or prior to the date hereof:


 


(a)          BRG
shall deposit into a designated escrow account the amount of its Base Capital Contribution set forth in Section 5.1 and
shall execute and deliver to SOIF III all assignments of interest and other documents required pursuant to the MIPA; and


 


(b)          All
of the representations and warranties of BRG and SOIF II contained in this Agreement shall be true and correct as of the date hereof.


 


Capital Contributions,
Loans, Percentage Interests and Capital Accounts.


 


Base Capital Contributions.


 


Subject to the conditions set forth in Section
4, upon execution of this Agreement, BRG, SOIF II and SOIF III shall each make, have made or be credited with a Base Capital
Contribution to the Company in the following amounts:


 


	BRG	 	$	14,000,000.00	 
	SOIF II	 	$	1,202,076.92	 
	SOIF III	 	$	1,202,076.92	 



 




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Additional Capital
Contributions.


 


Additional Capital Contributions
(“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. Such Additional Capital Contributions shall be requested in an amount for each Member equal
to the product of the amount of the aggregate Capital Contribution called for multiplied by that Member’s Percentage Interest,
as defined in Section 5.3. Such Additional Capital Contributions, if payable, 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”), then the other Members, provided that they have each made the Capital Contribution required to be made by it,
in addition to any other remedies each may have hereunder or at law, shall have one or more of the following remedies:


 


(i)          to
advance to the Company on behalf of, and as a loan to the Defaulting Member, an amount equal to the Default Amount to be evidenced
by a promissory note in form reasonably satisfactory to the non-defaulting Member (each such loan, a “Default Loan”).
The Capital Account of the Defaulting Member shall be credited with the amount of such Default Amount attributable to a Capital
Contribution and the aggregate of such amounts shall constitute a debt owed by the Defaulting Member to the non-failing Member.
Any Default Loan shall bear interest at the rate of eighteen percent (18%) per annum, but in no event in excess of the highest
rate permitted by applicable laws (the “Default Loan Rate”), and shall be payable by the Defaulting Member on
demand from the non-defaulting Member and from any Distributions due to the Defaulting Member hereunder. Interest on a Default
Loan to the extent unpaid, shall accrue and compound on a quarterly basis. A Default Loan shall be prepayable, in whole or in part,
at any time or from time to time without penalty. Any such Default Loans shall be with full recourse to the Defaulting Member and
shall be secured by the Defaulting Member’s interest in the Company including, without limitation, such Defaulting Member’s
right to Distributions. In furtherance thereof, upon the making of such Default Loan, the Defaulting Member hereby pledges, assigns
and grants a security interest in its Interest to the non-defaulting Member and agrees to promptly execute such documents and statements
reasonably requested by the non-defaulting Member to further evidence and secure such security interest. Any advance by the non-defaulting
Member on behalf of a Defaulting Member pursuant to this Section 5.2(b)(i) shall be deemed to be a Capital Contribution
made by the Defaulting Member except as otherwise expressly provided herein. All Distributions to the Defaulting Member hereunder
shall be applied first to payment of any interest due under any Default Loan and then to principal until all amounts due thereunder
are paid in full. While any Default Loan is outstanding, the Company shall be obligated to pay directly to the non-defaulting Member,
for application to and until all Default Loans have been paid in full, the amount of (x) any Distributions payable to the Defaulting
Member, and (y) any proceeds of the sale of the Defaulting Member’s Interest in the Company; or


 




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(ii)         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-defaulting
Member 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)(ii) shall not be treated as a
Capital Contribution made by the Defaulting Member; or


 


(iii)        in
lieu of the remedies set forth in subparagraphs (i) or (ii), revoke its portion of such Additional Capital Contribution, whereupon
the portion of the Additional Capital Contribution made by the non-defaulting Member shall be returned by the Company within ten
(10) days with interest computed at the Default Loan Rate (such interest to be paid by the Defaulting Member).


 


(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 any 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.


 


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 as shall be set forth on Exhibit A immediately following
the Base Capital Contributions provided for in Section 5.1 having been made. The Percentage Interests of the Members in
the Company shall be adjusted monthly so that the respective Percentage Interests of the Members at any time shall be in proportion
to their respective cumulative Total Investment made (or deemed to be made) pursuant to Sections 5.1 and 5.2. Percentage
Interests shall not be adjusted by distributions made (or deemed made) to a Member.


 




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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.


 


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.


 


Capital Accounts.
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. The Capital Accounts of the Members shall not be increased
or decreased 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 pursuant to Sections 5.1
and 5.2 by 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). 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.


 


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, 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. Notwithstanding anything herein to the contrary, contemporaneously
with this Agreement, BRG has been admitted to the Company as a Member.


 




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Distributions.


 


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.


 


(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.


 


Distributions in Kind.
In the discretion of the Manager, Distributable Funds may be distributed to the Members in cash or in kind and 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.


 


Allocations


 


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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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).


 


U.S. Tax Allocations.


 


(a)          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 Treasury 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. Such allocation shall
be made in accordance with such method set forth in Regulations Section 1.704-3(b) as the Manager in its reasonable discretion
approves.


 


Any 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.


 


Books,
Records, Tax Matters and Bank Accounts.


 


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,
including BR Carroll Lansbrook JV, LLC and BR Carroll Lansbrook, LLC) 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.


 


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:


 




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(i)          An
unaudited balance sheet of the Company;


 


(ii)         An
unaudited statement of the Company’s profit and loss; 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 any REIT Member to determine its qualification as a REIT and its
compliance with REIT Requirements as shall be requested by any REIT Member.


 


(c)          The
Members acknowledge that the Property Manager is obligated to perform Project-related accounting and furnish Project-related accounting
statements to BR Carroll Lansbrook, LLC under the terms of the Property Management Agreement (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 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)          At
the expense and cost of the REIT Member, the Manager will use its commercially best efforts to obtain such financial statements
(audited or unaudited), information and attestations as may be required by the REIT 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 the REIT Member or any of its Affiliates in connection therewith, including for purposes of testing internal controls
and procedures of the REIT Member or any of its Affiliates.


 


8.3           Tax
Matters Member. BRG is hereby designated as the “tax matters partner” of the Company and any 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 any 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 any Subsidiaries
under the Code or state tax law shall be timely determined and made by BRG. 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.
BRG agrees to consult with each other Member with respect to any written notice of any material tax elections and
any material inquiries, claims, assessments, audits, controversies or similar events received from any taxing authority. 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 BRG 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 any Subsidiaries, provided
that any such action or failure to act does not constitute gross negligence or willful misconduct.


 




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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 any Subsidiaries 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 with respect to such Fiscal Year, together with
such information with respect to the Company and such Subsidiaries 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.


 


Management.


 


Management.


 


(a)          The
Company shall be managed by one manager. BRG shall have the power and authority to appoint the Manager without any further action
or approval by any Member, and BRG hereby appoints BRG as its initial Manager. Neither SOIF II nor SOIF III shall have the power
to appoint or remove any Manager. To the extent that BRG or a BRG Transferee Transfers all or a portion of its Interest in accordance
with Section 12 to a BRG Transferee, such BRG Transferee may be appointed as the Manager under this Section 9.1(a)
by BRG or the BRG Transferee then holding all or a portion of BRG’s Interest without any further action or authorization
by any other Member.


 


(b)          The
Manager 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 or other matter submitted by the Manager to the Members shall
require the express and unanimous approval of the Members.


 


(c)          The
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 Subsidiaries of the Company. 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 development of the Property.


 




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(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 Manager.


 


(c)          Notwithstanding
any other provision herein, BRG shall have the sole right to appoint the representatives of the Company to the Management Committee
pursuant to the BR Carroll Lansbrook JV LLC Agreement.


 


9.2           Loans
to Subsidiaries. Notwithstanding anything in this Agreement to the contrary, the Company may, but will have no obligation to,
make loans to any direct or indirect Subsidiary for development, improvement, leasing or marketing of the Property or otherwise
in furtherance of the purposes of this Agreement to maximize the value of the Property.


 


9.3           Affiliate
Transactions. Except as expressly provided in Section 9.2 with respect to loans by the Company to a Subsidiary, 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 be 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 unanimously in writing by the Members.


 


9.4           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 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 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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9.5           Operation
in Accordance with REOC/REIT Requirements.


 


(a)          The
Members acknowledge that SOIF II and SOIF III or one or more of their Affiliates (each, 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 SOIF II and SOIF III and such SOIF II Affiliate and/or SOIF III
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 SOIF II or SOIF III or a SOIF II Affiliate and/or a SOIF III 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". Each Member shall comply with any requirements specified
by BRG in order to ensure compliance with this Section 9.5.


 


(b)          [Reserved]


 


(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 herein. Notwithstanding anything to the
contrary contained in this Agreement, during the time a REIT Member is a Member of the Company, neither the Company, any
direct or indirect Subsidiary of the Company, nor any 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 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
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;


 


(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;


 




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(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 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


 


(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 9.5(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 9.5(c). For purposes of this Section 9.5(c), “REIT Prohibited Transactions” shall mean
any of the actions specifically set forth in this Section 9.5(c).


 




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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 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.


 


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.) or 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;


 




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(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 the Members, (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 (including, without limitation, Section 9.6), 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 Member receiving such information shall not use
such information to pursue such investment opportunity for its 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.


 


Representations
and Warranties.


 


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.


 


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


 




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(a)          Due
Incorporation or Formation; Authorization of Agreement. Such 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. Such 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. Such 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 such 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 such 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
assets 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.


 


(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.


 




    	23



    	 



    

 


(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. 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.


  




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(iv)        Such
Member is not relying on the Company or any of its 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.


 


Sale,
Assignment, Transfer or other Disposition.


 


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, any Member shall have the right, with the
consent of the other Members, 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 cause of its business and operations.


 


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 Member(s) against loss or damage under any Collateral Agreement.


 




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(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 SOIF II or a SOIF II Transferee of up to one hundred percent (100%) of its Interest to (A) any Affiliate of SOIF II,
or (B) SOIF III or any Person that is directly or indirectly owned by SOIF III or (C) Bluerock Residential Growth REIT, Inc. (“BR
REIT”) or BRG or any Person that is directly or indirectly owned by BR REIT or BRG (including Operating Partnership)
(collectively, a “SOIF II Transferee”);


 


(ii)         Any
Transfer by SOIF III or a SOIF III Transferee of up to one hundred percent (100%) of its Interest to (A) any Affiliate of SOIF
III, or (B) SOIF II or any Person that is directly or indirectly owned by SOIF II or (B) BR REIT or BRG or any Person that is directly
or indirectly owned by BR REIT or BRG (including Operating Partnership) (collectively, a “SOIF III Transferee”);


 


(iii)        Any
Transfer by BRG or a BRG Transferee of up to one hundred percent (100%) of its Interest to (A) any Affiliate of BRG, or (B) BR
REIT or BRG or any Person that is directly or indirectly owned by BR REIT or BRG (including Operating Partnership), or (C) SOIF
II or any Person that is directly or indirectly owned by SOIF II or (D) SOIF III or any Person that is directly or indirectly owned
by SOIF III (collectively, a “BRG Transferee”);


 


provided however, as to subparagraphs (b)(i),
(b)(ii) or b(iii), 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 SOIF II Transferee, SOIF III Transferee or BRG Transferee of such documents necessary to admit such party
into the Company and to cause the SOIF II Transferee, SOIF III Transferee or BRG Transferee (as applicable) to become bound by
this Agreement, the SOIF II Transferee, SOIF III Transferee or BRG Transferee (as applicable) shall become a Member, without any
further action or authorization by any other Member.


 


Admission of Transferee;
Partial Transfers. Notwithstanding anything in this Section 12 to the contrary and except as provided in Section
5.2(b) and/or Section 5.7, no Transfer of Interests in the Company shall be permitted unless the Transfer is only a
pledge of the economic interests of the transferor or the potential transferee is admitted as a Member under this Section 12.3:


 




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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


 


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;


 


(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.


 




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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.


 


Dissolution.


 


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.


 


Exclusive Events Requiring
Dissolution. The Company shall be dissolved only upon the earliest to occur of the following events (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.


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 such fair market
value of the asset.


 




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(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.


 


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.


 


Indemnification.


 


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.


 


Indemnification by
Company. The Company hereby indemnifies, holds harmless and defends the Members, the Manager, the officers and each of their
respective agents, officers, directors, members, managers, 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, representatives, Manager, 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 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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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 Company and each of their subsidiaries and their agents, officers, directors, members, managers, 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), assets, agreements, rights or other interests
conveyed, assigned, contributed or otherwise transferred to the Company or Property Owner (collectively, the “Inducement
Agreements”).


 


(b)          Except
as otherwise provided herein or in any other agreement, recourse for the indemnity obligation 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.


 


Mediation
and Arbitration of Disputes.


 


Events Giving Rise
To Mediation or Arbitration. In the event that there is a dispute between the Members as to any action or issue, or in the
event of a deadlock between the Members, then and in such event all of the Members agree, upon the written request of any one Member,
to submit to mediation within ten (10) days of receipt of the request for mediation for the purpose of resolving the dispute. If
mediation is not successful in resolving the dispute, one or more of the Members may elect to have the dispute submitted to binding
arbitration as provided in this Article 15 by giving written notice to each of the Members of such Member’s election to require
arbitration of such dispute. Said written notice shall set forth (i) the action or issue in dispute and (ii) a brief description
of the position of the electing Member with respect to such dispute.


 




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Selection of Arbitrators.
 Within ten (10) days of the date upon which the notice is sent pursuant to Section 15.1, the Members shall meet
for the purpose of selecting three (3) persons to act as arbitrators for the Company for such dispute. In the event that the Members
are unable to agree upon the selection of the arbitrators at such meeting, then within ten (10) days following such meeting, the
Member(s) requesting such arbitration shall select one (1) person to serve as an arbitrator and the remaining Member(s) shall select
one (1) person to serve as an arbitrator and, within five (5) days of the date of their selection, the two persons so selected
shall select a third person to serve as the third and final arbitrator. In the event that the Member(s) requesting such arbitration
select one such person within such ten (10) day period, but the remaining Member(s) fails to select one such person within such
ten (10) day period, or vice versa, then the person selected shall serve as the sole arbitrator and shall make the determination
required hereunder. In the event the two selected arbitrators are unable to agree upon the identity of the person to serve as the
third and final arbitrator, such determination shall be made by the American Arbitration Association in accordance with its then-existing
rules and regulations. No person selected by the Members and/or by the arbitrators may be employed by, doing substantial business
with or otherwise affiliated with any of the Members (including, but not limited to, acting as an attorney or accountant for any
one or more of the Members or for the Company).


 


Arbitration Hearing.
Not later than fifteen (15) days following the selection of the third arbitrator, a hearing shall be convened by the arbitrators
at a mutually agreeable site. At such hearing, each Member shall be entitled to present arguments in favor of and call witnesses
in support of such Member’s position with respect to the item in dispute; provided, however, that absent a written agreement
of the Members to the contrary, presentation and/or arguments (including the direct testimony of any witnesses called by a Member)
of each side of the dispute shall be limited to three (3) hours.


 


Decision of the Arbitrators/Binding
Effect. The arbitrators shall render their decision regarding the matter in dispute within ten (10) days following the date
of the hearing set forth in Section 15.3 hereinabove and said decision shall be final and binding upon the Members and the
Company. Each of the Members hereby covenant and agree that they shall comply with the decision of the arbitrators.


 


Miscellaneous.


 


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:


 




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If to BRG:


 


c/o BRG Manager, LLC


712 Fifth Avenue, 9th
Floor


New York, New York 10019


Attn: R.
Ramin Kamfar


 


With a copy to:


 


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


712 Fifth Avenue, 9th
Floor


New York, New York 10019


Attn: Michael L. Konig, Esquire


 


If to SOIF II:


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


712 Fifth Avenue, 9th
Floor


New York, New York 10019


Attn: R.
Ramin Kamfar


 


With a copy to:


 


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


712 Fifth Avenue, 9th
Floor


New York, New York 10019


Attn: Michael L. Konig, Esquire


 


If to SOIF III:


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


712 Fifth Avenue, 9th
Floor


New York, New York 10019


Attn: R.
Ramin Kamfar


 


With a copy to:


 


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


712 Fifth Avenue, 9th
Floor


New York, New York 10019


Attn: Michael L. Konig, Esquire


 




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with a copy, in any case, to:


 


Hirschler Fleischer


2100 East Cary Street


Richmond, Virginia 23223 


Attention: S. Edward
Flanagan, Esquire


 


(b)          Each
such notice shall be deemed delivered (a) on the date delivered if by hand delivery or overnight courier service or facsimile,
and (b) 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
addresses.


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. 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.
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.


 


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.


 


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.


 


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.


 




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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.


 


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.


 


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.


 


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.


 


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.


 


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


 


Limitation on Liability.
Except as set forth in Section 14 and with respect to a Default Loan 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 with respect to a Default Loan 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 with respect to a Default Loan 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, 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.


 


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 shall be entitled
to recover from the other party reasonable attorney’s fees and costs incurred in connection therewith.


 




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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.


 


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 the
other 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 unanimously approved by the Members.


 


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 and to assign such Interest only to
such Persons who agree to be similarly bound.


 


Public Announcements.
No Member nor any of its Affiliates shall, without the prior approval of the other Members, issue any press releases or otherwise
make any public statements with respect to the Company or the transactions contemplated by this Agreement, except as may be required
by applicable law or regulation or by obligations pursuant to any listing agreement with any national securities exchange so long
as such Member or such Affiliate has used reasonable efforts to obtain the approval of the other Members prior to issuing such
press release or making such public disclosure.


 


Uniform Commercial
Code. The interest of each Member in the Company shall be a “certificated 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 a “certificated
security” thereunder.


 


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.


 




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REMAINDER OF PAGE INTENTIONALLY LEFT BLANK


 




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


 


	 	MEMBERS:
	 	 	 	 	 
	 	BRG LANSBROOK, 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:	Secretary, Chief Operating Officer
	 	 	 	 	and General Counsel
	 	 	 	 	 
	 	BLUEROCK SPECIAL OPPORTUNITY + INCOME FUND II, LLC, a Delaware limited liability company
	 	 	 	 	 
	 	By:	BR SOIF II Manager, LLC,
	 	 	a Delaware limited liability
	 	 	Its: Manager
	 	 	 	 	 
	 	 	By:	/s/ Jordan B. Ruddy
	 	 	Name:	Jordan B. Ruddy
	 	 	Its:	Authorized Signatory
	 	 	 	 	 
	 	BLUEROCK SPECIAL OPPORTUNITY + INCOME FUND III, LLC, a Delaware limited liability company
	 	 	 	 	 
	 	By:	BR SOIF III Manager, LLC,
	 	 	a Delaware limited liability
	 	 	Its: Manager
	 	 	 	 	 
	 	 	By:	/s/ Jordan B. Ruddy
	 	 	Name:	Jordan B. Ruddy
	 	 	Its:	Authorized Signatory


 




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Exhibit A


 


Capital Contributions and Percentage
Interests


 


	Member Name	 	Capital
 Contribution	 	 	Percentage Interest	 
	 	 	 	 	 	 	 
	BRG Lansbrook, LLC	 	$	14,000,000	 	 	 	85.34	%
	 	 	 	 	 	 	 	 	 
	Bluerock Special Opportunity + Income Fund II, LLC	 	$	1,202,076.92	 	 	 	7.33	%
	 	 	 	 	 	 	 	 	 
	Bluerock Special Opportunity + Income Fund III, LLC	 	$	1,202,076.92	 	 	 	7.33	%



 




    	 



    	 



    

 


Exhibit B


Property Management Agreement


[SEE ATTACHED]