Exhibit 10.195


 





 



 


LIMITED LIABILITY COMPANY AGREEMENT


 


OF


 


BR
BERRY HILL MANAGING MEMBER II, LLC 


 


A DELAWARE LIMITED
LIABILITY COMPANY


 


DATED AS OF DECEMBER
9, 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         Reserved	9
	Section 5.        Capital Contributions, Loans, Percentage Interests and Capital Accounts	10
	 	 	 
	5.1	Capital Contributions	10
	 	 	 
	5.2	Additional Capital Contributions	10
	 	 	 
	5.3	Percentage Ownership Interest	12
	 	 	 
	5.4	Return of Capital Contribution	12
	 	 	 
	5.5	No Interest on Capital	12
	 	 	 
	5.6	Capital Accounts	12
	 	 	 
	5.7	New Members	13
	 	 	 
	Section 6.        Distributions	13
	 	 
	6.1 	Distribution of Distributable Funds	13


 




    	 



    	 



    

 


	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	14
	 	 	 
	7.3	U.S. Tax Allocations	14
	 	 	 
	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	16
	 	 	 
	8.5	Tax Returns	16
	 	 	 
	8.6	Expenses	16
	 	 	 
	Section 9.         Management	17
	 	 
	9.1	Management.	17
	 	 	 
	9.2	Affiliate Transactions	17
	 	 	 
	9.3	Other Activities	17
	 	 	 
	9.4	Operation in Accordance with REOC/REIT Requirements	18
	 	 	 
	9.10	FCPA	20
	 	 	 
	Section 10.        Confidentiality	21
	Section 11.        Representations and Warranties	22
	 	 
	11.1	In General	22


 




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	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	27
	 	 	 
	Section 13.        Dissolution	27
	 	 
	13.1	Limitations	27
	 	 	 
	13.2	Exclusive Events Requiring Dissolution	27
	 	 	 
	13.3	Liquidation	28
	 	 	 
	13.4	Continuation of the Company	28
	 	 	 
	Section 14.        Indemnification	29
	 	 
	14.1	Exculpation of Members	29
	 	 	 
	14.2	Indemnification by Company	29
	 	 	 
	14.3	General Indemnification by the Members	29
	 	 	 
	Section 15.        Sale Rights	30
	 	 
	15.1	Push /Pull Rights	30
	 	 	 
	15.2	Forced Sale Rights	32
	 	 	 
	Section 16        Mediation and Arbitration of Disputes.	33
	 	 
	16.1	Events Giving Rise to Mediation or Arbitration	33


 




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	16.2	Selection of Arbitrators	33
	 	 	 
	16.3	Arbitration Hearing	33
	 	 	 
	16.4	Decision of the Arbitrators/Binding Effect	34
	 	 	 
	Section 17        Miscellaneous.	34
	 	 
	17.1	Notices	34
	 	 	 
	17.2	Governing Law	35
	 	 	 
	17.3	Successors	35
	 	 	 
	17.4	Pronouns	35
	 	 	 
	17.5	Table of Contents and Captions Not Part of Agreement	35
	 	 	 
	17.6	Severability	35
	 	 	 
	17.7	Counterparts	35
	 	 	 
	17.8	Entire Agreement and Amendment	35
	 	 	 
	17.9	Further Assurances	35
	 	 	 
	17.10	No Third Party Rights	36
	 	 	 
	17.11	Incorporation by Reference 	36
	 	 	 
	17.12	Limitation on Liability	36
	 	 	 
	17.13	Remedies Cumulative	36
	 	 	 
	17.14	No Waiver	36


 




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	17.15	Limitation On Use of Names	36
	 	 	 
	17.16	Publicly Traded Partnership Provision	37
	 	 	 
	17.17	Uniform Commercial Code	37
	 	 	 
	17.18	Reserved	37
	 	 	 
	17.19	No Construction Against Drafter	37


 




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BR
BERRY HILL MANAGING MEMBER II, LLC


LIMITED
LIABILITY COMPANY AGREEMENT


 


This
Limited Liability Company Agreement (this “Agreement”) is adopted, executed, and agreed to effective on December
9, 2014, by and among Bluerock Special Opportunity + Income Fund III, LLC, a Delaware limited liability company (“SOIF
III”), and BEMT Berry Hill, LLC, a Delaware limited liability company (“BEMT”), as Members (together,
the “Members”), and BEMT, as Manager (the “Manager”).


 


WITNESSETH


 


WHEREAS,
BR Berry Hill Managing Member II, LLC, a Delaware limited liability company (the “Company”), was formed on October
23, 2014 pursuant to the Act;


 


WHEREAS,
pursuant to the terms of that certain Contribution and Distribution Agreement dated of even date herewith by and among the Company,
BR Berry Hill Managing Member I, LLC (“BR MM I”), SOIF III and BEMT (the “Contribution
Agreement”), SOIF III and BEMT, the sole members of BR MM I, have caused BR MM I
to assign a membership interest in Stonehenge Bluerock Berry Hill JV as contributions to the capital of the Company on behalf of
SOIF III and BEMT, and SOIF III and BEMT have received their respective Interests in the Company in exchange for such contributions;


 


WHEREAS,
BEMT and SOIF III now desire to provide for the operation and governance of the Company in accordance with the terms of this Agreement.


 


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:


 


Section 1.               Definitions. As
used in this Agreement:


 


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


 


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


 




    	 



    	 



    

 


“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)(l ).


 


“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 Limited Liability Company, as amended from time to time.


 


“Applicable
Adjustment Percentage”
shall have the meaning set forth in Section
5.2(b)(3).


 


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


 


“Bankruptcy/Dissolution
Event” shall
mean, with respect to the affected party, (i) the entry of an Order for Relief under the Bankruptcy Code, (ii) the admission by
such party of its inability to pay its debts as they mature, (iii) the making by it of an assignment for the benefit of creditors
generally, (iv) the filing by it of a petition in bankruptcy or a petition for relief under the Bankruptcy Code or any other applicable
federal or state bankruptcy or insolvency statute or any similar law, (v) the expiration of sixty (60) days after the filing of
an involuntary petition under the Bankruptcy Code without such petition being vacated, set aside or stayed during such period,
(vi) an application by such party for the appointment of a receiver for the assets of such party, (vii) an involuntary petition
seeking liquidation, reorganization, arrangement or readjustment of its debts under any other federal or state insolvency law,
provided that the same shall not have been vacated, set aside or stayed within sixty (60) days after filing, (viii) the imposition
of a judicial or statutory lien on all or a substantial part of its assets unless such lien is discharged or vacated or the enforcement
thereof stayed within sixty (60) days after its effective date, (ix) an inability to meet its financial obligations as they accrue,
or (x) a dissolution or liquidation.


 


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


 


“BEMT”
shall have the meaning set forth in the recitals.


 


“BEMT
Transferee” shall have the meaning set forth in Section l 2.2(b)(i). 


 


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


 




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


 


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


 


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


 


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


 


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


 


“Company”
shall mean BR Berry Hill Managing Member II, LLC a Delaware limited liability company organized under the Act.


 


“Company
Interest” shall
mean all of the Company’s interest in Stonehenge Bluerock Berry Hill JV, including its limited liability company interest
therein.


 


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



 


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


 


“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.


 




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“Developer”
shall mean Stonehenge Real Estate Group, LLC, a Georgia limited liability company.


 


“Development
Agreement” shall
mean that certain development agreement, as amended, between 23Hundred, LLC, a Delaware limited liability company, BGF Member and
Stonehenge SPE, as owners, and Developer, as developer, pursuant to which Developer provides certain development services for the
Properties.


 


“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 (x) 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).


 


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


 


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


 


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


 


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


 


“Imputed
Closing Costs” means
an amount (not to exceed one and one quarters percent (1.25%) of the purchase price) that would normally be incurred by a Subsidiary
if the Property were sold for an amount specified in Section 15.1 or
Section 15.2
(as applicable), for title insurance premiums, survey costs, brokerage commissions, legal fees, and other commercially reasonable
closing costs.


 


“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). 


 


“Initiating
Member” shall
have the meaning provided in Section 15.2(a).


 




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“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.


 


“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 the Stonehenge Bluerock Berry Hill JV with respect to making or refraining to make a decision on the following matters to the
extent the vote or approval of the Company is required:


 


		(i)	any merger, conversion or consolidation involving the Company or
any Subsidiary or the sale, lease, transfer, exchange or other disposition of all or substantially all of the Company’s assets,
including the Company Interest, or all of the Interests of the Members in the Company, in one or a series of related transactions;



 


		(ii)	except
as expressly provided in Sect
ion 12
with respect to Transfers.by
SOIF III or a SOIF III Transferee to a SOIF III Transferee and with respect to Transfers by BEMT or a BEMT Transferee to a BEMT
Transferee as permitted thereunder, the admission or removal of any Member or the Company’s issuance to any third party of
any equity interest in the Company (including interests convertible into, or exchangeable for, equity interests in the Company);



 


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



 


		(iv)	the incurrence by the Company, in an amount in excess of US $25,000,
of any indebtedness for borrowed money or any capitalized lease obligation or the entry into of any agreement, commitment, assumption
or guarantee with respect to any of the foregoing;



 


		(v)	expenditures or distributions of cash or property by the Company,
in an amount in excess of US $25,000, which are not otherwise provided for in this Agreement or the establishment of any reserves;



 


		(vi)	entering into any material agreement, including without limitation
any management agreement or development agreement, contract, license or lease that could result in an obligation or liability of
the Company in excess of US $25,000;



 


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



 


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



 




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		(x)	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;



 


		(xi)	selling, conveying, refinancing or effecting any material asset of the Company, including the Company
Interest, or any portion thereof or the entering into of any agreement, commitment or assumption with respect to any of the foregoing;



 


		(xii)	confessing a judgment against the Company (or any Subsidiary), submitting a Company claim to arbitration
or engaging, terminating and/or replacing counsel to defend or prosecute on behalf of the Company any action or proceeding;



 


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



 


		(xiv)	taking any action by the Company that is reasonably likely to result in any Member or any of its
Affiliates 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;



 


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



 


		(xvi)	amendment of the Company’s Certificate of Formation or this Agreement.



 


“Member”
and “Members” shall mean SOIF III, BEMT 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 17.12. 


 


“Member Minimum Gain”
shall mean an amount, determined in accordance with Regulations Section 1.704-2(i)(3) with respect to each Member Nonrecourse Debt,
equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability.


 


“Member Nonrecourse
Debt” shall have the meaning given the term “partner nonrecourse debt” in Regulations Section 1.704-2(b)(4).


 


“Member Nonrecourse
Deductions” shall have the meaning given the term “partner nonrecourse deductions” in Regulations Section
1.704-2(i).


 


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


 




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“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 17.17.


 


“Non-Initiating
Member” shall
have the meaning provided in Section l 5.2(a). 


 


“Nonrecourse
Deduction” shall have the meaning given such term in Regulations


Section l.704-2(b)(l ).


 


“Nonrecourse
Liability” shall
have the meaning given such term in Regulations Section l.704-2(b)(3).


 


“Offer”
shall have the meaning provided in Section l 5.2(a). 


 


“Offeree ‘
shall have the meaning provided in Section 15.l(b). 


 


“Offeror” shall have
the meaning provided in Section 15.l(b).


 


“Ownership
Entity” shall
have the meaning provided in Section 15.2(a). 


 


“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 Stonehenge Bluerock Berry Hill Operating Agreement.


 


“Property Manager”
shall mean Matrix Residential.


 


“Property
Management Agreement” shall mean that certain Property Management Agreement, as amended, by and between Company Subsidiary,
BGF Member and Stonehenge SPE.


 


“Property
Manager Reports” shall
have the meaning set forth in Section 8.2(c). “Pursuer”
shall have the meaning provided in Section 10(c).


 


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


 


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


 


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


 




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


 


“Representatives”
shall mean the representatives of the Management Committee. “Response Period” shall
have the meaning provided in Section 15.2(b).


 


“Sale
Notice” shall have the meaning provided in Section l
5.2(a). 


 


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


 


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


 


“SOIF
III Transferee” shall have the meaning provided in Section l 2.2(b)(i).


 


“Stonehenge
Bluerock Berry Hill JV”
shall mean BR Stonehenge 23Hundred JV, LLC, a Delaware limited liability company.


 


“Stonehenge
Bluerock Berry Hill JV Operating Agreement”
shall mean the Limited Liability Company Agreement of BR Stonehenge 23Hundred JV, as amended
from time to time.


 


“Stonehenge
SPE” shall
mean SH 23Hundred TIC, LLC.


 


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


 


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


 


“TIC
Agreement” shall mean that certain Tenant in Common Agreement by and between Company Subsidiary, BGF Member and Stonehenge
SPE.


 


“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.


 


“Valuation
Amount” shall have the meaning provided in Section 15.l(b).


 


Section 2.             Organization of the
Company.


 


2.1               Name.
The name of the Company shall be “BR Berry Hill Managing Member II, 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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2.2               Place
of Registered Office; Registered Agent. The address of the registered office of the Company in the State of Delaware is 160
Greentree Drive, Suite 101, Dover, Delaware 19904. The name and address of the registered agent for service of process on the Company
in the State of Delaware is National Registered Agents, Inc., 160 Greentree Drive, Suite 101, Dover, Delaware 19904. The Manager
may at any time on five (5) days prior notice to all Members change the location of the Company’s registered office or change
the registered agent.


 


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


 


2.4               Filings.
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.


 


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


 


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


 


Section 3.             Purpose.


 


The
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.


 


Section 4.             Reserved.


 




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


 


5.1               Capital
Contributions. SOIF III and BEMT have each previously made or been attributed Capital Contributions
to the Company as reflected on the Company’s books.


 


5.2               Additional
Capital Contributions.


 


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


 


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


 


(1)
               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-failing 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 twenty (20%) percent 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-failing
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-failing Member and agrees to promptly execute such documents and statements reasonably requested
by the non-failing Member to further evidence and secure such security interest. Any advance by the non-failing Member on behalf
of a Defaulting Member pursuant to this Section 5.2(b)(l) 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-failing 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;


 




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(2)                subject
to any applicable thin capitalization limitations on indebtedness of the Company, to treat its portion of such Capital Contribution
as a loan to the Company (rather than a Capital Contribution) and to advance to the Company as a loan to the Company an amount
equal to the Default Amount, which loan shall be evidenced by a promissory note in form reasonably satisfactory to the non-failing
Member and which loan shall bear interest at the Default Loan Rate and be payable on a first priority basis by the Company from
available Cash Flow and prior to any Distributions made to the Defaulting Member. If each Member has loans outstanding to the Company
under this provision, such loans shall be payable to each Member in proportion to the outstanding balances of such loans to each
Member at the time of payment. Any advance to the Company pursuant to this Section 5.2(b)(2)
shall not be treated as a Capital Contribution made by the Defaulting Member;


 


(3)                to
make an additional Capital Contribution to the Company equal to the Default Amount whereupon the Percentage Interests of the Members
shall be recalculated to (i) increase the non-defaulting Member’s Percentage Interest by the percentage (“Applicable
Adjustment Percentage”) determined
by dividing one hundred fifty percent (150%) of the Default Amount by the sum of the Members’ Total Investment (taking into
account the actual amount of such additional Capital Contribution) and by increasing its Capital Account by one and one-half of
the amount of the Default Amount, and (ii) to reduce the Defaulting Member’s Percentage Interest by the Applicable Adjustment
Percentage and by decreasing its Capital Account by one-half of the amount of the Default Amount; or


 


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


 


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


 




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5.3               Percentage
Ownership Interest. The Members shall have the initial percentage ownership interests (as the same are adjusted as provided
in this Agreement, a “Percentage Interest”) in
the Company set forth on Exhibit A immediately following
the Capital Contributions provided for in Section 5.1. 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, as the same may be further adjusted pursuant to Section 5.2(b)(3). Percentage
Interests shall not be adjusted by distributions made (or deemed made) to a Member.


 


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


 


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


 


5.6               Capital
Accounts. A separate capital account (the “Capital Account”)
shall be maintained for each Member in accordance with Section l.704-l(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 Section 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(e)(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 l.704-l(b)(2) and shall be interpreted and applied in a manner consistent
with such Regulations.


 




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


 


Section 6.             Distributions.


 


6.1               Distribution
of Distributable Funds


 


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


 


(b)               Any
distributions otherwise payable to a Member under this Agreement shall be applied first to satisfy amounts due and payable on account
of the indemnity and/or contribution obligations of such Member under this Agreement and/or any other agreement delivered by such
Member to the Company or any other Member but shall be deemed distributed to such Member for purposes of this Agreement.


 


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


 




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Section 7.             Allocations.


 


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


 


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


 


7.3               U.S. Tax Allocations.


 


(a)               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 1.7043(b) as
the Manager in its reasonable discretion approves.


 


Any
elections or other decisions relating to such allocations shall be made by BEMT in any manner that reasonably reflects the purpose
and intention of this Agreement. Allocations pursuant to this Section 7.3
are solely for purposes of U.S. federal, state and local income taxes and
shall not affect, or in any way be taken into account in computing, any Member’s share of Net Income, Net Loss, other items or distributions
pursuant to any provisions of this Agreement.


 




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


 


 


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


 


8.2           Reports
and Financial Statements.


 


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


 


(i)               An
unaudited balance sheet of the Company;


 


(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 BEMT or any REIT Member
such information as requested by BEMT or any REIT Member as is necessary for BEMT or any REIT Member to determine its qualification
as a REIT and its compliance with REIT Requirements as shall be requested by BEMT or any REIT Member.


 


(c)           The
Members acknowledge that the Developer is obligated to perform Project-related accounting and furnish Project-related accounting
statements under the terms of the Development Agreement and that the Property Manager is obligated to perform Property- related
accounting and furnish Property-related accounting statements under the terms of the Property Management Agreement (and any future
property manager for the Property shall be required to do the same) (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.


 




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


 


8.3               Tax
Matters Member. BEMT is hereby designated as the “tax matters partner” of the Company and the Subsidiaries, as
defined in Section 6231(a)(7) of the Code (the “Tax Matters Member ‘) and
shall prepare or cause to be prepared all income and other tax returns of the Company and the Subsidiaries pursuant to the terms
and conditions of Section 8.5. Except as otherwise provided in this Agreement, all elections required or permitted to be made by
the Company and the Subsidiaries under the Code or state tax law shall be timely determined and made by SOIF III. 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. SOIF III agrees to consult with BEMT 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 SOIF III from and against any claim, loss, expense, liability, action or damage resulting from its acting or
its failure to take any action as the “tax matters partner” of the Company and the Subsidiaries, provided
that any such action or failure to act does not constitute gross negligence or willful
misconduct.


 


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


 


8.5               Tax
Returns. The Manager shall cause to be prepared all income and other tax returns of the Company and the Subsidiaries 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.


 




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Section
9.             Management.


 


9.1               Management.


 


(a)               The
Company shall be managed by BEMT (the “Manager”). To the extent that BEMT or a BEMT Transferee Transfers all
or a portion of its Interest in accordance with Section 12 to a BEMT Transferee, such BEMT Transferee may be appointed as an additional
Manager under this Section 9.l (a) by BEMT or a BEMT Transferee then holding all or a portion of an Interest without any further
action or authorization by any Member. The Manager may not be removed by the Members other than for an act or omission related
to the Company constituting gross negligence or fraud.


 


(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. Notwithstanding any provision herein to the contrary, only BEMT, and
not any other Member of the Company, shall have the power and authority to exercise the powers and privileges of the Company as
manager of the Stonehenge Bluerock Berry Hill JV.


 


(c)               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 any Manager.


 


9.2              Affiliate
Transactions. No agreement shall be entered into by the Company or any Subsidiary with a Member or any Affiliate of a Member
and no decision shall 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.


 


9.3              Other Activities.


 


(a)               Right
to Participation in Other Member Ventures. Neither the Company nor any Member (or any Affiliate of any Member) shall have any
right by virtue of this Agreement either to participate in or to share in any other now existing or future ventures, activities
or opportunities of 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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9.4           Operation
in Accordance with REOC/REIT Requirements.


 


(a)            The
Members acknowledge that one or more Affiliates of the Members (an “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 such BR Affiliate to so qualify.
Notwithstanding anything herein to the contrary, the Company and its Subsidiaries shall not take, or refrain from taking, any
action that would result in a BR Affiliate from failing to qualify as a REOC. No Member shall fund any Capital Contribution
“with the ‘plan assets’ of any ‘employee benefit plan’ within the meaning of Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended or any
‘plan’ as defined by Section 4975 of the Internal Revenue Code of 1986, as amended.


 


(b)           Notwithstanding
anything in this Agreement to the contrary, unless specifically agreed to by the Manager in writing, neither the Company nor its
Subsidiaries shall hold any investment, incur any indebtedness or otherwise take any action that would cause any Member of the
Company (or any Person holding an indirect interest in the Company through an entity or series of entities treated as partnerships
for U.S. federal income tax purposes) to realize any “unrelated business taxable income” as such term is defined in
Code Sections 511 through 514.


 


(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;


 




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


 


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


 


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


 


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


 


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


 


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


 




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


 


9.5           FCPA.


 


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


 


The
term routine governmental action does not include any decision by a government official whether, or on what terms, to award new
business to or to continue business with a particular party, or any action taken by an official involved in the decision making
process to encourage a decision to award new business to or continue business with a particular party.


 


(b)               Each
Member agrees to notify immediately the other Member of any request that such Member or any of its officers, directors, employees,
shareholders, members, agents or Affiliates, acting on its behalf, receives to take any action that may constitute a violation
of the Foreign Corrupt Practices Act.


 




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Section
10.           Confidentiality.


 


(a)
          Any information relating to a Member’s business, operation or finances which are proprietary to, or considered proprietary
by, a Member are hereinafter referred to as “Confidential Information”. All Confidential Information in tangible form
(plans, writings, drawings, computer software and programs, etc.) 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;


 


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


 


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


 


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


 


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


 


(c)               Without
limiting any of the other terms and provisions of this Agreement, to the extent a Member (the “Pursuer”) provides the
other Member 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.


 




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Section 11.           Representations
and Warranties.


 


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


 


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


 


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


 




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


 


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


 


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


 


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


 


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


 


(h)          Securities
Matters.


 


		(i)	None of the Interests are registered under
the Securities Act or any state securities laws. Such Member understands that the offering, issuance and sale of the Interests
are intended to be exempt from registration under the Securities Act, based, in part, upon the representations, warranties and
agreements contained in this Agreement. Such Member is an “accredited investor” as such term is defined in Rule
501 of Regulation D promulgated under the Securities Act.



 




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



 


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



 


		(iv)	Such Member is not relying on the Company 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.



 




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


 


12.1        Prohibited
Transfers. Except as otherwise provided in this Section 12, Sections
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, either Member shall have the right, with the consent of the other Member, at any time to pledge to a lender or creditor,
directly or indirectly, all or any part of its Interest in the Company for such purposes as it deems necessary in the ordinary
course of its business and operations.


 


12.2        Affiliate
Transfers.


 


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


 


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


 


(i)               Any
Transfer by SOIF III or a SOIF III Transferee of up to one hundred percent (100%) of its Interest to any Affiliate of SOIF III,
including but not limited to (A) BRG or any Person that is directly or indirectly owned by BRG; (B) Bluerock Special Opportunity
+ Income Fund, LLC (“SOIF”) or any Person that is directly or indirectly owned by SOIF; (C) Bluerock Special
Opportunity + Income Fund II, LLC (“SOIF II”) or any Person that is directly or indirectly owned by SOIF II;
(D) Bluerock Special Opportunity + Income Fund III, LLC (“SOIF III”) or any Person that is directly or indirectly
owned by SOIF III; and/or (E) Bluerock Growth Fund, LLC (“BGF”) or any Person that is directly or indirectly
owned by BGF (collectively, a “ SOIF III Transferee”);


 


(ii)             Any
Transfer by BEMT or a BEMT Transferee of up to one hundred percent (100%) of its Interest to any Affiliate of BEMT, including
but not limited to (A) BRG or any Person that is directly or indirectly owned by BRG; (B) SOIF or any Person that is directly
or indirectly owned by SOIF; (B) SOIF II or any Person that is directly
or indirectly owned by SOIF II; (C) SOIF III or any Person that is directly
or indirectly owned by SOIF III; and/or (D) BGF or any Person that is directly or indirectly owned by BGF;


 




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provided
however, as to subparagraphs (b)(i) and (b)(ii), and as to subparagraph (a), no Transfer shall be permitted and shall be void
ab initio if it shall violate any “Transfer” provision of any applicable Collateral Agreement with third party
lenders.


 


(c)               Upon
the execution by any such BEMT Transferee or SOIF III Transferee of such documents necessary to admit such party into the Company
and to cause the BEMT Transferee or SOIF III Transferee (as applicable) to become bound by this Agreement, the BEMT Transferee
or SOIF III Transferee (as applicable) shall become a Member, without any further action or authorization by any Member.


 


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


 


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


 


(b)              Notwithstanding
the foregoing, any Transfer or purported Transfer of any Interest, whether to another Member or to a third party, shall be of no
effect and void ab initio, and such transferee shall not become a Member or an owner of the purportedly transferred Interest,
if the Management Committee 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;


 




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(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 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; or


 


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


 


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


 


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


 


Section 13.           Dissolution.


 


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


 


13.2         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


 




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(d)
          the entry of a decree of judicial dissolution pursuant to Section
18-802 of the Act 


 


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


 


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


 


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


 


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


 


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


 


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


 


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


 


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


 


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


 




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Section 14.           Indemnification.


 


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


 


14.2            Indemnification
by Company. The Company hereby indemnifies, holds harmless and defends the Members, the Manager, the officers and each of their
respective agents, officers, directors, members, partners, shareholders and employees from and against any loss, expense, damage
or injury suffered or sustained by them (including but not limited to any judgment, award, settlement, reasonable attorneys’
fees and other costs or expenses incurred in connection with the defense of any actual or threatened action, proceeding or claim)
by reason of or arising out of (i) their activities on behalf of the Company or in furtherance of the interests of the Company,
including, without limitation, the provision of guaranties to third party lenders in respect of financings relating to the Company
or any of its assets (but specifically excluding from such indemnity by the Company any so called “bad boy” guaranties
or similar agreements which provide for recourse as a result of failure to comply with covenants, willful misconduct or gross negligence,
(ii) their status as Members, Manager, representatives, employees or officers of the Company, or (iii) the Company’s assets,
property, business or affairs (including, without limitation, the actions of any officer, director, member 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.


 


14.3             General
Indemnification by the Members.


 


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


 




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(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.


 


Section
15.           Sale Rights


 


15.1         Push /Pull
Rights.


 


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


 


(b)               Exercise.
The Member wishing to exercise its rights pursuant to this Section 15.1
(the “Offeror”) shall do so by giving notice to the other
Member (the “Offeree”) setting forth a statement of intent to invoke its rights under this Section 15.l, stating
therein the aggregate dollar amount (the “Valuation Amount”)
that the Offeror would be willing to pay for the assets of the Company as
of the Closing Date (as defined below) free and clear of all liabilities, and setting forth all oral or written offers and inquiries
received by the Offeror during the previous twelve-month period relating to the financing, disposition or leasing of any Company
property.


 


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


 




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


 


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


 


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


 


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


 


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


 




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15.2            Forced
Sale Rights.


 


(a)               Offers.
If, at any time, (i) either Member desires to offer the Company Interest for sale on specified terms, or (ii) receives from an
unaffiliated purchaser a bona fide written cash offer (i.e., not seller financed) for the purchase of such Company Interest
on terms that such Member desires for the Company to accept (such specified terms or bona fide offer being herein called
the “Offer”), then the Member desiring to make or accept the Offer (the “Initiating
Member”) shall
provide written notice of the terms of such Offer (the “Sale Notice”)
to the other Member (the “Non-Initiating Member”).


 


(b)               Response.
The Non-Initiating Member shall have thirty (30) days from the date of the Sale Notice (the
“Response Period”) to provide written notice to the Initiating Member of whether the Company should make or
accept the Offer; the failure to timely deliver such notice shall be deemed to constitute an election to accept the Offer and sell
such Company Interest on the terms of the Offer.


 


(c)                Offer
Unacceptable. If
the Non-Initiating Member does not wish for the Company to make or accept the Offer, the Initiating Member may elect to sell its
Interest to the Non-Initiating Member, in which case the Non-Initiating Member must purchase the Initiating Member’s Interest
for an amount equal to the amount that would be distributable to the Initiating Member if the Company had accepted the Offer, closed
the sale pursuant to such Offer and wound up its affairs pursuant to Section 13.


 


For purposes
of the foregoing calculations, the purchase price for a sale shall be reduced by Imputed Closing Costs therefor. The Initiating
Member must exercise this option, if at all, by delivering written notice thereof to the Non-Initiating Member within twenty (20)
days after the end of the Response Period. The Non-Initiating Member shall pay the Initiating Member cash for its Interest, as
the case may be. Closing shall take place on or before the date specified in the Sale Notice, but if the Non-Initiating Member
is purchasing the Initiating Member’s Interest, the Non-Initiating Member shall have until 120 days after the Sale Notice
in which to close. If the Initiating Member or the Non-Initiating Member defaults at closing, the non-defaulting party shall have
the right to bring suit for damages, for specific performance, or exercise any other remedy available at law or in equity. Upon
payment at closing, the Initiating Member shall execute and deliver all documents reasonably required to transfer the interest
being sold.


 


(d)               Offer
Acceptable. If the Non-Initiating Member consents
(or is deemed to have consented) to the Company selling the Company Interest on the terms of the Offer, then the Initiating Member
shall be allowed to sell the Company Interest for cash on the terms of the Offer for a period of up to one hundred eighty (180)
days following the expiration of the Response Period. If the Initiating Member obtains a bonafide third party contract to
sell the Company Interest on the terms of the offer within such one hundred eighty (180) day period, the Initiating Member shall
have an additional period of ninety (90) days after the date of such contract (that is, not to exceed 270 days after the expiration
of the Response Period) in which to consummate the sale. If after having received the consent (or deemed consent) of the Non- Initiating
Member to the sale of such Company Interest on the terms of the Offer, the Initiating Member
is unable to obtain a bona fide contract within such one hundred eighty (180) day period, or if after having obtained such
bona fide contract, the Initiating Member is unable to consummate such sale within 270 days after the expiration of the
Response Period, then the Initiating Member must again submit an Offer to the Non-Initiating Member under the terms of this Section
15.2 before it may sell such Company Interest.


 




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Section
16.           Mediation and Arbitration of Disputes .


 


16.1            Events
Giving Rise To Mediation or Arbitration. In
the event that there is a dispute between the Manager or 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 10 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.


 


16.2           Selection
of Arbitrators. Within ten (10) days of the date upon which the notice is sent pursuant to Section
10.1, 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).


 


16.3            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.


 




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16.4             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 10.3
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.


 


Section 17.           Miscellaneous.


 


17.1             Notices.


 


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


 


If to SOIF III:


 


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


712 Fifth Avenue, 9th Floor


New York, New
York 10019


Attn: Michael
L. Konig, Esq.


 


If to BEMT:


 


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


712 Fifth Avenue,
9th Floor


New York, New
York 10019


Attn: Michael
L. Konig, Esq.


 


(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.


 




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17.2             Governing
Law. This Agreement and the rights of the Members hereunder shall be
governed by, and interpreted in accordance with, the laws of the State of Delaware. 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.


 


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


 


17.4             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.


 


17.5             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.


 


17.6             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.


 


17.7             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.


 


17.8             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.


 


17.9             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.


 




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17.10           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.


 


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


 


17.12           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.


 


17.13           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.


 


17.14            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.


 


17.15            Limitation
On Use of Names. Notwithstanding anything contained in this Agreement or otherwise to the contrary, each of SOIF III and BEMT
as to itself agree 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 approved by the Manager.


 




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17.16           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.


 


17.17           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.


 


17.18           Reserved.
Reserved.


 


17.19           No
Construction Against Drafter. This Agreement has been negotiated and prepared by SOIF III
and BEMT 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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IN WITNESS WHEREOF, the
Members have executed this Limited Liability Company


Agreement as of the date set forth above.


 


	 	MEMBERS:
	 	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:	President
	 	 	 
	 	BEMT Berry Hill, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Bluerock Residential Holdings, LP
	 	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:  	Senior Vice President and Chief Operating Officer


 


[Signature Page to Limited
Liability Company Agreement of BR Berry Hill Managing Member


II,
LLC]


 




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EXHIBIT A


 


Percentage Interests


 


	 	 	Percentage	 
	Member Name	 	Interest	 
	 	 	 	 
	Bluerock Special Opportunity +	 	 	53.0522	%
	Income Fund III, LLC	 	 	 	 
	 	 	 	 	 
	BEMT Berry Hill, LLC	 	 	46.9478	%