Document:

EX-10.31

 EXHIBIT 10.31 

EMPLOYMENT AGREEMENT 

This Employment Agreement (“Agreement”) is made as of July, 21 2014, between MabVax Therapeutics, Inc. (the
“Company”), and Paul Maffuid, Ph.D. (the “Executive”). 
 WHEREAS, the Company desires to employ the
Executive and the Executive desires to be employed by the Company on the terms contained in this Agreement. 
 NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 

 

	 	1.	Position and Duties. 

 (a) The Executive shall serve as the Company’s Vice President
of Pharmaceutical Development and Operations, reporting to the Company’s President and Chief Executive Officer (collectively, “CEO”). 

(b) The Executive shall perform those services customary to this office and such other lawful duties that the CEO may be reasonably assign to
him. The Executive shall devote all of his business time and best efforts to the performance of his duties under this Agreement and shall be subject to, and shall comply with the Company policies, practices and procedures and all codes of ethics or
business conduct applicable to his position, as in effect from time to time. Notwithstanding the foregoing, the Executive shall be entitled to (i) serve as a member of the board of directors of a reasonable number of companies, subject to the
advance approval of the CEO, which approval shall not be unreasonably withheld, (ii) serve on civic, charitable, educational, religious, public interest or public service boards, subject to the advance approval of the CEO, which approval shall
not be unreasonably withheld, and (iii) manage the Executive’s personal and family investments, in each case, to the extent such activities do not materially interfere, as determined by the CEO in good faith, with the performance of the
Executive’s duties and responsibilities hereunder. 
 2. Term. This Agreement and the Executive’s employment pursuant to
this Agreement shall be for a term of three (3) years commencing as of July 21, 2014 (the “Effective Date”) and ending on the third anniversary of the Effective Date (the “Expiration Date”), unless terminated
earlier by the Company or the Executive pursuant to Section 4 of this Agreement (the “Term”). In the event either party wishes to renew or extend this Agreement upon the Expiration Date, such party shall notify the other in writing at
least 60 days prior to the Expiration Date. 
  

	 	3.	Compensation and Related Matters. 

 (a) Base Salary. During the Term, the
Executive’s annual base salary shall be $225,000 (the “Base Salary”). The Base Salary shall be payable in accordance with the Company’s normal payroll procedures in effect from time to time and may be increased, but not
decreased, at the discretion of the Company. 
 (b) Annual Bonus. During the Term, the Executive shall be entitled to receive a bonus
(the “Annual Bonus”) for each calendar year, payable in cash in accordance with, and subject to the terms and conditions of, the Company’s then applicable short-term bonus or other cash incentive program (each, a “Bonus
Program”). The Executive’s aggregate target bonus award for each calendar year will be 75% of his then Base Salary (the “Target Annual Bonus”). The Executive’s actual Annual Bonus may range from a minimum amount of 0% to a
maximum of 75% of his Target Annual Bonus, which will be determined by the Company and will be contingent upon the attainment of performance goals reasonably established in good faith by the Company based upon the recommendations of the Executive no
later than 90 days after the commencement of each calendar year. Any Annual Bonus compensation payable to the Executive shall be payable by March 15 of the calendar year following the calendar year to which such Annual Bonus relates, subject to
the condition that the Executive remain employed by the Company through the date the Annual Bonus is paid, except as set forth in Section 6 herein. 

 (c) Equity. In consideration for his employment and subject to the approval of the Board,
the Company will recommend to its current Board that the Executive be granted a stock option to purchase up to 50,000 shares of Company’s common stock (the “Shares”) pursuant to the Company’s 2014 Employee, Director and
Consultant Equity Incentive Plan (the “Plan”). Subject to the approval of the Board, the Shares will be granted pursuant to a form of option agreement previously approved by the Board. 

(d) Business Expenses. During the Term, the Executive shall be entitled to receive prompt reimbursement for all reasonable business
expenses incurred by him in performing services hereunder, in accordance with the policies and procedures then in effect and established by the Company for its senior executive officers. 

(e) Other Benefits. During the Term and subject to any contribution therefor required of employees of the Company, the Executive shall
be entitled to participate in all equity, pension, savings and retirement plans, welfare and insurance plans, practices, policies, programs and perquisites of employment applicable generally to other senior executives of the Company, except to the
extent any employee benefit plan provides for benefits otherwise provided to the Executive hereunder (e.g., annual bonuses and severance). Such participation shall be subject to (i) requirements of applicable law, (ii) the terms of the
applicable plan documents, (iii) generally applicable Company policies, and (iv) the discretion of the Board or any administrative or other committee provided for under or contemplated by such plan. The Executive shall have no recourse
against the Company under this Agreement in the event that the Company should alter, modify, add to or eliminate any or all of its employee benefit plans. 

(f) Vacation; Holidays. During the Term, the Executive shall be entitled to take up to 30 days of paid time off per calendar year, to
be taken in accordance with the policies applicable to senior executives of the Company generally. The Executive shall also be entitled to paid holidays in accordance with the policies applicable to senior executives of the Company generally. 

4. Termination. The Executive’s employment may be terminated prior to the expiration of the Term hereof and this Agreement may be
terminated under the following circumstances: 
 (a) Death. The Executive’s employment shall terminate upon his death. 

(b) Disability. The Company may terminate the Executive’s employment if the Executive becomes subject to a Disability. For
purposes of this Agreement, “Disability” means the Executive is unable to perform the essential functions of his position, with or without a reasonable accommodation, for a period of 90 consecutive calendar days or 180 non-consecutive
calendar days within any rolling 12 month period. 
 (c) Termination by Company for Cause. The Company may terminate the
Executive’s employment for Cause. For purposes of this Agreement, “Cause” means (i) the Executive’s conviction of a felony or a crime of moral turpitude; (ii) the Executive’s commission of unauthorized acts
intended to result in the Executive’s personal enrichment at the material expense of the Company; or (iii) the Executive’s material violation of the Executive’s duties or responsibilities to the Company which constitute willful
misconduct or dereliction of duty, provided as to any termination pursuant to subsection (iii), a majority of the members of the Board shall first approve such “Cause” termination before the Company effectuates such termination of
employment. 
 (d) Termination by the Company without Cause. The Company may terminate the Executive’s employment at any time
without Cause upon 30 days prior written notice. 
 (e) Termination by the Executive. The Executive may terminate his employment at
any time for any reason other than a Good Reason, upon 30 days prior written notice. 
 (f) Termination by the Executive for Good
Reason. The Executive may terminate his employment for Good Reason. For purposes of this Agreement, “Good Reason” means the existence of any one or more of the following conditions without the Executive’s consent, provided
Executive submit written notice to the CEO within 45 days such condition(s) first arose specifying the condition(s): (i) a material change in or reduction of 

  
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the Executive’s authority, duties and responsibilities, or the assignment to the Executive of duties materially inconsistent with the Executive’s position with the Company; (ii) a
material reduction in the Executive’s then current Base Salary or Target Annual Bonus opportunity; or (iii) the requirement that Executive relocate to an office location more than fifty (50) miles from the San Diego, California area.
The Executive’s continued employment subsequent to an event that may constitute Good Reason shall not be deemed to be a waiver of his rights under this provision. Upon receipt of written notice from the Executive regarding a condition
constituting Good Reason, the Company shall then have 30 days to correct the condition (the “Cure Period”). If such condition is not corrected by the last day of the Cure Period, the Executive’s resignation for Good Reason shall
become effective on the 31st day following the written notice. 
 (g) Termination in connection with a Change in Control. In the
event of a Change in Control of the Company (as such term is defined in the Company’s 2014 Employee, Director and Consultant Equity Incentive Plan), for a period of sixty (60) days after the effective date of such Change in Control,
Executive shall be entitled to resign employment with the Company. This subsection shall also prohibit the termination of Executive’s employment without Cause once the Company enters into a letter of intent relating to a transaction that would
result in a Change in Control. 
 (h) Expiration. Executive’s employment shall terminate on the Expiration Date unless renewed
or extended pursuant to Section 2. 
 (i) Termination Date. The “Termination Date” means: (i) if the
Executive’s employment is terminated by his death under Section 4(a), the date of his death; (ii) if the Executive’s employment is terminated on account of his Disability under Section 4(b), the date on which the Company
provides the Executive a written termination notice; (iii) if the Company terminates the Executive’s employment for Cause under Section 4(c), the date on which the Company provides the Executive a written termination notice;
(iv) if the Company terminates the Executive’s employment without Cause under Section 4(d), 30 days after the date on which the Company provides the Executive a written termination notice; (v) if the Executive resigns his
employment without Good Reason under Section 4(e), 30 days after the date on which the Executive provides the Company a written termination notice, (vii) if the Executive resigns his employment with Good Reason under Section 4(f), the
31st day following the day the Executive provides the Company with written notice of the conditions constituting same, if the Company has not cured such conditions by the 30th day; (viii) if the Executive provides the Company with written
notice of his termination in connection with a Change in Control pursuant to Section 4(g), the 31st day following such written notice; and (ix) the Expiration Date if the
Executive’s employment terminates under Section 4(h). 
  

	 	5.	Compensation upon Termination. 

 (a) Termination by the Company for Cause or by the
Executive without Good Reason. If the Executive’s employment with the Company is terminated pursuant to Sections 4(c) or (e), the Company shall pay or provide to the Executive the following amounts through the Termination Date: any earned
but unpaid Base Salary, unpaid expense reimbursements, and any vested benefits the Executive may have under any employee benefit plan of the Company (the “Accrued Obligations”) on or before the time required by law but in no event more
than 30 days after the Executive’s Termination Date. 
 (b) Death. If, prior to the expiration of the Term, the Executive’s
employment terminates because of his death as provided in Section 4(a), then the Executive’s authorized representative or estate shall be entitled to the following subject to Section 6: 

(i) Accrued Obligations. The Company shall pay the Accrued Obligations earned through the Termination Date (payable at
the time provided for in Section 5(a)). 
 (ii) Unpaid Annual Bonus. The Company shall pay the Annual Bonus
awarded for the calendar year preceding the Termination Date that remains unpaid as of the Termination Date (payable at the time provided for in Section 3(b)). 

  
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 (iii) Pro-Rata Bonus. The Company shall pay a pro-rata portion of the
Executive’s Annual Bonus for the calendar year in which the Executive’s termination occurs based on the actual achievement of performance criteria for that year (determined by multiplying the amount of the Annual Bonus which would be due
for the full calendar year by a fraction, the numerator of which is the number of days during the calendar year of termination that the Executive is employed by the Company and the denominator of which is 365) (the “Pro-Rata Bonus”)
payable in accordance with Section 6. 
 (iv) Vesting Acceleration. The Company shall vest in full the Executive
on the Termination Date for any and all outstanding equity-incentive awards issued to the Executive and any options may be exercised by his authorized representative or estate for a period equal to the earlier of one year from and after the
Termination Date and the original expiration date of each option as set forth in the respective grant agreements unless a longer period of time is set forth in the grant agreement evidencing the options. 

(v) Continuation of Benefits. Subject to the Executive’s eligible dependents’ timely election of continuation
coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall contribute to the premium cost of the Executive’s participation and that of his eligible dependents’ in the
Company’s group health plan (to the extent permitted under applicable law and the terms of such plan) which covers the Executive (and the Executive’s eligible dependents) for a period of twelve (12) months, provided the
Executive pay the remainder of the premium cost of such participation by payroll deduction (if any) and, provided further that the Executive is eligible and remains eligible for COBRA coverage. If the reimbursement of any COBRA premiums would
violate the nondiscrimination rules or cause the reimbursement of claims to be taxable under the Patient Protection and Affordable Care Act of 2010, together with the Health Care and Education Reconciliation Act of 2010 (collectively, the
“Act”) or Section 105(h) of the Code, the Company paid premiums shall be treated as taxable payments and be subject to imputed income tax treatment to the extent, necessary to eliminate any discriminatory treatment or taxation
under the Act or Section 105(h) of the Code. If the Executive’s participation or that of his eligible dependents’ participation would give rise to penalties or taxes against the Company under the Act, as determined by the Company in
its sole discretion, the Company shall instead make cash payments to the Executive over the same period in monthly installments in an amount equal to the Company’s portion of the monthly cost of providing such benefits under its group health
plan for such period. 
 (c) Termination by the Company for Disability, or without Cause, by the Executive with Good Reason, for
Non-Renewal by the Company, or in connection with a Change in Control. If, prior to the expiration of the Term, the Executive’s employment is terminated as a result of Disability pursuant to Section 4(b), by the Company without Cause
pursuant to Section 4(d), the Executive terminates his employment for Good Reason pursuant to Section 4(f), the Executive terminates his employment in connection with a Change in Control pursuant to Section 4(g), or for the expiration
of the Term pursuant to Section 4(h) because the Company fails to renew the Agreement pursuant to Section 2, then the Executive shall be entitled to the following subject to Section 6: 

(i) The Company shall pay and provide the Executive with the benefits set forth in 5(b) (i) (Accrued Obligations),
5(b)(ii) (Unpaid Bonus), 5(b)(iii) (Pro-Rata Bonus), 5(b)(iv) (Vesting Acceleration), and the continuation of benefits for 12 months as set forth in Section 5(b)(v) (Continuation of Benefits) provided that if Executive obtains other employment
that offers group health benefits, such continued coverage by the Company under subsection (b)(v) (Continuation of Benefits) shall cease as of such coverage date; and 

(ii) The Company shall pay the Executive severance in an amount equal to one times the Base Salary at the rate in effect on the
Termination Date (but without giving effect to any reduction if one or all of the bases for the Executive’s resignation for Good Reason is a reduction in Base Salary) less, in the case of termination by the Company for Disability, the gross
proceeds paid to the Executive on account of Social Security or other similar benefits and Company-provided short-term and long-term disability plans, if any, which shall be payable in twelve (12) equal monthly installments commencing as set
forth in Section 6. 

  
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 6. Mutual Release; Payment. The payments and benefits provided for in Section 5 shall
be conditioned on (a) the Executive’s continued compliance with the obligations of the Executive under Sections 9 and 10 and (b) the Executive or, in the event of his death, his estate, executing and delivering to the Company a full
mutual release of all claims that the Executive, his heirs and assigns may have against the Company, its affiliates and subsidiaries and each of their respective directors, officers, employees and agents, and of all claims that the Company shall
have against the Executive, his heirs and assigns, in a form reasonably acceptable to the Company and the Executive (the “Release”). The Release must become enforceable and irrevocable on or before the sixtieth (60th) day
following the Termination Date. If the Executive (or his estate) fails to execute without revocation the Release, he shall be entitled to the Accrued Obligations only and no other benefits. The installments of severance provided under
Section 5(c)(ii) shall commence in the calendar month following the month in which the Release becomes enforceable and irrevocable. If, however, the sixty (60) day period in which the Release must become enforceable and irrevocable begins
in one year and ends in the following year, the Company shall commence payment of the severance installments in the second year in the later of January and the first calendar month following the month in which the Release becomes effective and
irrevocable. The first installment shall include, however, all amounts that would otherwise have been paid to the Executive between the Termination Date and the Executive’s receipt of the first installment, assuming the first installment would
otherwise have been paid in the month following the month in which the Termination Date occurs. The Pro-Rata Bonus payable in Section 5 shall be paid when annual bonuses are paid to other senior executives of the Company generally, but in no
event later than March 15 of the year following the year in which the Termination Date occurs. 
  

	 	7.	Section 409A Compliance. 

 (a) All in-kind benefits provided and expenses eligible
for reimbursement under this Agreement shall be provided by the Company or incurred by the Executive during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively practicable, but in no event shall
any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind
benefits to be provided or the expenses eligible for reimbursement in any other taxable year. Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 

(b) To the extent that any of the payments or benefits provided for in Section 5 are deemed to constitute non-qualified deferred
compensation benefits subject to Section 409A of the United States Internal Revenue Code (the “Code”), the following interpretations apply to Section 5: 

(i) Any termination of the Executive’s employment triggering payment of benefits under Section 5 must constitute a
“separation from service” under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. § 1.409A-l(h) before distribution of such benefits can commence. To the extent that the termination of the Executive’s employment does not
constitute a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A- 1(h) (as the result of further services that are reasonably anticipated to be provided by the Executive to the Company or any of its
parents, subsidiaries or affiliates at the time the Executive’s employment terminates), any benefits payable under Section 5(b) or (c) that constitute deferred compensation under Section 409A of the Code shall be delayed until
after the date of a subsequent event constituting a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h). For purposes of clarification, this Section 7(b)(i) shall not cause any forfeiture of
benefits on the Executive’s part, but shall only act as a delay until such time as a “separation from service” occurs. 

(ii) Because the Executive is a “specified employee” (as that term is used in Section 409A of the Code and
regulations and other guidance issued thereunder) on the date his separation from service becomes effective, any benefits payable under Section 5(b) or (c) that constitute non-qualified deferred compensation under Section 409A of the
Code shall be delayed until the earlier of (A) the business day following the six-month anniversary of the date his separation from service becomes effective, and (B) the date of the Executive’s death, but only to the extent necessary
to avoid such penalties under Section 409A of the Code. On the earlier of (A) the business day following the six-month anniversary of the date his separation from service becomes effective, and (B) the Executive’s death, the
Company shall pay the Executive in a lump sum the aggregate value of the non-qualified deferred compensation that the Company otherwise would have paid the Executive prior to that date under Section 5 of this Agreement. 

  
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 (iii) It is intended that each installment of the payments and benefits provided
under Section 5 of this Agreement shall be treated as a separate “payment” for purposes of Section 409A of the Code. In particular, the installment severance payments set forth in Section 7(b)(ii) of this Agreement shall be
divided into two portions. That number of installments commencing on the first payment date set forth in Section 7 of this Agreement that are in the aggregate less than two times the applicable compensation limit under Section 401(a)(17)
of the Code for the year in which the Termination Date occurs (provided the termination of the Executive’s employment is also a separation from service) shall be payable in accordance with Treas. Reg. § 1.409A-l(b)(9)(iii) as an
involuntary separation plan. The remainder of the installments shall be paid in accordance with Sections 7(b)(i) and (ii) above. 
  

	 	8.	Certain Reductions in Payments. 

 (a) Anything in this Agreement to the contrary
notwithstanding, in the event that the Accounting Firm (as defined below) determines that receipt of all Payments (as defined below) would subject the Executive to the tax under Section 4999 of the Code, the Accounting Firm shall determine
whether to reduce any of the Agreement Payments (as defined below) to the Executive so that the Parachute Value (as defined below) of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount (as defined below).
Agreement Payments shall be so reduced (the “Reduced Payments”) only if the Accounting Firm determines that the Executive would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so
reduced. If the Accounting Firm determines that the Executive would not have a greater Net After-Tax Receipt of aggregate Payments if the Agreement Payments were so reduced, the Executive shall receive all Agreement Payments to which the Executive
is entitled hereunder. 
 (b) If the Accounting Firm determines that the aggregate Agreement Payments to the Executive should be reduced so
that the Parachute Value of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount, the Company shall promptly give the Executive notice to that effect and a copy of the detailed calculation thereof. All
determinations made by the Accounting Firm under this Section 8 shall be binding upon the Company and the Executive and shall be made as soon as reasonably practicable and in no event later than 15 days following the date that there has been an
Agreement Payment that would subject the Executive to the tax under Section 4999 of the Code (the “Excise Tax”). 
 (c) For
purposes of reducing the Agreement Payments to the Executive so that the Parachute Value of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount, only Agreement Payments (and no other Payments) shall be reduced.
The reduction contemplated by this Section 8, if applicable, shall be made by reducing payments and benefits (to the extent such amounts are considered Payments) under the following sections in the following order: (i) any Payments under
Section 5(b)(v) (Continuation of Benefits), (ii) any Payments under Section 5(b)(iii) (Pro-Rata Bonus), (iii) any Payments under Section 5(b)(ii) (Unpaid Bonus), (iv) any Payments under Section 5(b)(iv)
(Acceleration of Vesting), and (iv) any other cash Agreement Payments that would be made upon a termination of the Executive’s employment, beginning with payments that would be made last in time. 

(d) As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that, under circumstances where the initial determination resulted in Reduced Payments, the Internal Revenue Service may later determine such reduction was not large enough to avoid the Excise Tax on the
Payments (making the Net After-Tax Receipt of aggregate Payments less than if no reduction had occurred). Under such circumstances, in the event that the Internal Revenue Service or a court, as applicable, finally and in a decision that has become
unappealable or a decision which is nonfinal but which the Company elects not to appeal, determines that the Payments are subject to the Excise Tax, the amount of the Reduced Payments shall be paid or distributed by the Company to or for the benefit
of the Executive within 30 days of such final determination; provided that (i) the Executive shall not initiate any proceeding or other contests regarding these matters, other than at the direction of the Company, and shall provide notice to
the Company of any proceeding or other contest regarding these matters initiated by the Internal Revenue Service and (ii) the Company shall be entitled to direct and control all such proceedings and other contests, if it commits to do so, it
shall pay all fees (including without limitation legal and other professional fees) associated therewith. 

  
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 (e) In connection with making determinations under this Section 8, the Accounting Firm shall
take into account the value of any reasonable compensation for services to be rendered by the Executive before or after the change in control, including the non-competition provisions applicable to the Executive under Section 9(d) and any other
non-competition provisions that may apply to the Executive, and the Company shall cooperate in the valuation of any such services, including any non-competition provisions. 

(f) All fees and expenses of the Accounting Firm in implementing the provisions of this Section 8 shall be borne by the Company. 

(g) In the event of any controversy with the Internal Revenue Service (or other taxing authority) with regard to the Agreement Payments, the
Executive shall permit the Company to control issues related to the Agreement Payments or any excise tax thereon, provided that such issues do not potentially materially adversely affect the Executive. If the Company commits to control such issues,
it shall pay all fees (including without limitation legal and other professional fees) associated therewith. In the event of any conference with any taxing authority as to the Agreement Payments, any excise tax thereon, or associated income taxes,
the Executive shall permit the representative of the Company to accompany the Executive, and the Executive and any representative of the Executive shall cooperate with the Company and its representative. 

(h) Definitions. The following terms shall have the following meanings for purposes of this Section 8. 

(i) “Accounting Firm” shall mean a nationally recognized certified public accounting firm or other professional
organization that is a certified public accounting firm recognized as an expert in determinations and calculations for purposes of Section 280G of the Code that is selected by the Executive and reasonably acceptable to the Company for purposes
of making the applicable determinations hereunder. 
 (ii) “Agreement Payment” shall mean a Payment paid or payable
pursuant to this Agreement including, for the avoidance of doubt, any acceleration of vesting of equity awards. 
 (iii)
“Net After-Tax Receipt” shall mean the Present Value of a Payment net of all taxes imposed on the Executive with respect thereto under Code Sections 1 and 4999 and under applicable state, local, and foreign laws, determined by applying the
applicable highest marginal rate . 
 (iv) “Parachute Value” of a Payment shall mean the present value as of the
date of the change in control for purposes of Code Section 280G of the portion of such Payment that constitutes a “parachute payment” under Code Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining
whether and to what extent the excise tax under Code Section 4999 will apply to such Payment. 
 (v) A
“Payment” shall mean any payment or distribution in the nature of compensation (within the meaning of Code Section 280G(b)(2)) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise.

 (vi) “Present Value” of a Payment shall mean the economic present value of a Payment as of the date of the
change in control for purposes of Code Section 280G, as determined by the Accounting Firm using the discount rate required by Code Section 280G(d)(4). 

(vii) “Safe Harbor Amount” means (x) 3.0 times the Executive’s “base amount,” within the meaning
of Code Section 280G(b)(3), minus (y) $1.00. 

  
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	 	9.	Confidentiality and Restrictive Covenants. 

 (a) The Executive acknowledges that: 

(i) the Company (which, for purposes of this Section 9 shall include the Company and each of its subsidiaries and
affiliates) is engaged in the pharmaceutical development business with a focus on the development and testing of monovalent and polyvalent vaccines targeted at cancer for eventual commercialization (the “Business”); 

(ii) the Company is dependent on the efforts of a certain limited number of persons who have developed, or will be responsible
for developing the Company’s Business; 
 (iii) the Company’s Business is national in scope; 

(iv) the Business in which the Company is engaged is intensely competitive and that Executive’s employment by the Company
will require that he have access to and knowledge of nonpublic confidential information of the Company and the Company’s Business, including, but not limited to, certain/all of the Company’s products, plans for creation, acquisition or
disposition of products or publications, strategic and expansion plans, formulas, research results, marketing plans, financial status and plans, budgets, forecasts, profit or loss figures, distributors and distribution strategies, pricing
strategies, improvements, sales figures, contracts, agreements, then existing or then prospective suppliers and sources of supply and customer lists, undertakings with or with respect to the Company’s customers or prospective customers, and
patient information, product development plans, rules and regulations, personnel information and trade secrets of the Company, all of which are of vital importance to the success of the Company’s business (collectively, “Confidential
Information”); 
 (v) the direct or indirect disclosure of any Confidential Information would place the Company at a
serious competitive disadvantage and would do serious damage, financial and otherwise, to the Company’s business; 

(vi) by his training, experience and expertise, the Executive’s services to the Company will be special and unique; 

(vii) the covenants and agreements of the Executive contained in this Section 9 are essential to the business and goodwill
of the Company; and 
 (viii) if the Executive leaves the Company’s employ to work for a competitive business, in any
capacity, it would cause the Company irreparable harm. 
 (b) Covenant Against Disclosure. All Confidential Information relating to
the Business is, shall be and shall remain the sole property and confidential business information of the Company, free of any rights of the Executive. The Executive shall not make any use of the Confidential Information except in the performance of
his duties hereunder and shall not disclose any Confidential Information to third parties, without the prior written consent of the Company. 

(c) Return of Company Documents. On the Termination Date or on any prior date upon the Company’s written demand, the Executive
will return all memoranda, notes, lists, records, property and other tangible product and documents concerning the Business, including all Confidential Information, in his possession, directly or indirectly, that is in written or other tangible form
(together with all duplicates thereof) and that he will not retain or furnish any such Confidential Information to any third party, either by sample, facsimile, film, audio or video cassette, electronic data, verbal communication or any other means
of communication. 

  
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 (d) Further Covenant. During the Term and through the second anniversary of the
Termination Date, the Executive shall not, directly or indirectly, take any of the following actions, and, to the extent the Executive owns, manages, operates, controls, is employed by or participates in the ownership, management, operation or
control of, or is connected in any manner with, any business, the Executive will use his best efforts to ensure that such business does not take any of the following actions: 

(i) Use the Company’s Confidential Information to persuade or attempt to persuade any customer of the Company to cease
doing business with the Company, or to reduce the amount of business any customer does with the Company; 
 (ii) in a manner
that competes with the Company’s business, use the Company’s Confidential Information to solicit for himself or any entity the business of a customer of the Company or the business of a former customer of the Company within twelve
(12) months prior to the termination of the Executive’s employment; or 
 (iii) persuade or attempt to persuade any
employee or independent contractor of the Company to leave the service of the Company, or hire or engage, directly or indirectly, any individual who was an employee or independent contractor of the Company within one (1) year prior to the
Executive’s Termination Date. 
 (e) Enforcement. The Executive acknowledges and agrees that any breach by him of any of the
provisions of this Section 9 (the “Restrictive Covenants”) would result in irreparable injury and damage for which money damages would not provide an adequate remedy. Therefore, if the Executive breaches or threatens to commit
a breach of any of the provisions of Section 9, the Company shall have the ability to seek the following rights and remedies, each of which rights and remedies shall be independent of the other and severally enforceable, and all of which rights
and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity (including, without limitation, the recovery of damages): (i) the right and remedy to have the Restrictive
Covenants specifically enforced (without posting bond and without the need to prove damages) by any court having equity jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions
(preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or not then continuing, of such covenants; and (ii) the right and remedy to require the Executive to account for and pay over to the Company
all compensation, profits, monies, accruals, increments or other benefits (collectively, “Benefits”) derived or received by him as the result of any transactions constituting a breach of the Restrictive Covenants, and the Executive
shall account for and pay over such Benefits to the Company and, if applicable, its affected subsidiaries and/or affiliates. The Executive agrees that in any action seeking specific performance or other equitable relief, he will not assert or
contend that any of the provisions of this Section 9 are unreasonable or otherwise unenforceable. Other than a material breach of this Agreement, the existence of any claim or cause of action by the Executive, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement of the Restrictive Covenants. 
  

	 	10.	Intellectual Property. 

 (a) Works for Hire. All creations, inventions, ideas,
designs, software, copyrightable materials, trademarks, and other technology and rights (and any related improvements or modifications), whether or not subject to patent or copyright protection (collectively, “Creations”), relating
to any activities of the Company which were, are, or will be conceived by the Executive or developed by the Executive in the course of his employment or other services with the Company, whether conceived alone or with others and whether or not
conceived or developed during regular business hours, and if based on Confidential Information, after the termination of the Executive’s employment, shall be the sole property of the Company and, to the maximum extent permitted by applicable
law, shall be deemed “works made for hire” as that term is used in the United States Copyright Act. The Executive agrees to assign and hereby does assign to the Company all Creations conceived or developed from the start of this employment
with the Company through to the Termination Date, and after the Termination Date if the Creation incorporates or is based on any Confidential Information. 

(b) Assignment. To the extent, if any, that the Executive retains any right, title or interest with respect to any Creations delivered
to the Company or related to his employment with the Company, the Executive hereby grants to the Company an irrevocable, paid-up, transferable, sub-licensable, worldwide right and license: (i) to modify all or any portion of such Creations,
including, without limitation, the making of additions to or deletions from such Creations, regardless of the medium (now or hereafter known) into which such Creations 

  
 -9- 

 
may be modified and regardless of the effect of such modifications on the integrity of such Creations; and (ii) to identify the Executive, or not to identify his, as one or more authors of
or contributors to such Creations or any portion thereof, whether or not such Creations or any portion thereof have been modified. The Executive further waives any “moral” rights, or other rights with respect to attribution of authorship
or integrity of such Creations that he may have under any applicable law, whether under copyright, trademark, unfair competition, defamation, right of privacy, contract, tort or other legal theory. 

Notwithstanding the foregoing, pursuant to California Labor Code Section 2870, the foregoing shall not apply to an invention that
Executive developed entirely on his own time without using the Company’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 

 

	 	•	 	Relate at the time of conception or reduction to practice of the invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company; or 

 

	 	•	 	Result from any work performed by the Executive for the Company. 

 (c) Disclosure. The
Executive will promptly inform the Company of any Creations he conceives or develops during the Term. The Executive shall (whether during his employment or after the termination of his employment) execute such written instruments and do other such
acts as may be necessary in the opinion of the Company or its counsel to secure the Company’s rights in the Creations, including obtaining a patent, registering a copyright, or otherwise (and the Executive hereby irrevocably appoints the
Company and any of its officers as his attorney in fact to undertake such acts in his name). The Executive’s obligation to execute written instruments and otherwise assist the Company in securing its rights in the Creations will continue after
the termination of his employment for any reason, the Company shall reimburse the Executive for any out-of-pocket expenses (but not attorneys’ fees) he incurs in connection with his compliance with this Section 10(c). 

11. Indemnification. During the Term and thereafter, the Company shall indemnify the Executive to the fullest extent provided in the
Company’s bylaws and/or Certificate of Incorporation. The Company shall purchase, and at all times maintain in effect, a policy of directors and officer’s insurance coverage. 

12. Integration. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements between the parties concerning such subject matter, including, without limitation, the Prior Employment Agreement. 

13. Successors. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal representatives,
executors, administrators, heirs, distributees, devisees and legatees. In the event of the Executive’s death after his termination of employment but prior to the completion by the Company of all payments due him under this Agreement, the
Company shall continue such payments to the Executive’s beneficiary designated in writing to the Company prior to his death (or to his estate, if the Executive fails to make such designation). The Company shall require any successor to the
Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. 

14. Enforceability. If any portion or provision of this Agreement (including, without limitation, any portion or provision of any
section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 

15. Survival. The provisions of this Agreement shall survive the termination of this Agreement and/or the termination of the
Executive’s employment to the extent necessary to effectuate the terms contained herein. 
 16. Waiver. No waiver of any
provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement,
shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach. 

  
 -10- 

 17. Notices. Any notices, requests, demands and other communications provided for by this
Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the
Executive has filed in writing with the Company or, in the case of the Company, at its main offices, attention of the Board. 
 18.
Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company. 

19. Governing Law. This is a California contract and shall be construed under and be governed in all respects by the laws of California
for contracts to be performed in that State and without giving effect to the conflict of laws principles of California or any other State. In the event of any alleged breach or threatened breach of this Agreement, the Executive hereby consents and
submits to the jurisdiction of the federal and state courts in and of the State of California. 
 20. Counterparts. This Agreement
may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute one and the same document. 

IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date and year first above written. 

 

			
	MabVax Therapeutics, Inc.
		
	By:	 	 /s/ J. David Hansen

	Name:	 	J. David Hansen
	Title:	 	President and Chief Executive Officer
	
	 /s/ Paul Maffuid

	Executive

  
 -11-Exhibit 10.161

 

LIMITED LIABILITY COMPANY AGREEMENT

  

OF

 

BR T&C BLVD JV MEMBER, LLC

 

A DELAWARE LIMITED LIABILITY COMPANY

 

    	 

    	 

    

  

LIMITED LIABILITY COMPANY AGREEMENT 

 

OF

 

BR T&C BLVD JV MEMBER, LLC

 

A DELAWARE LIMITED LIABILITY COMPANY

 

THE UNITS HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR UNDER THE SECURITIES LAWS OF ANY STATE AND ARE BEING
OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE UNITS HAVE
NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION, OR ANY OTHER REGULATORY
AUTHORITY. ACCORDINGLY, THESE SECURITIES MAY NOT BE RESOLD OR OTHERWISE TRANSFERRED OR CONVEYED IN THE ABSENCE OF REGISTRATION
OF THE SAME PURSUANT TO THE APPLICABLE SECURITIES LAWS UNLESS AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY IS FIRST OBTAINED
THAT SUCH REGISTRATION IS NOT THEN NECESSARY. ANY TRANSFER CONTRARY HERETO SHALL BE VOID.

 

THIS LIMITED LIABILITY COMPANY AGREEMENT
OF BR T&C BLVD JV MEMBER, LLC (herein referred to as the "Agreement"), is made and entered into as of the Effective
Date (as hereinafter defined), by and among BRG T&C BLVD Houston, LLC, a Delaware limited liability company, as the Class A
Member ("BRG"), and Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company ("SOIF
II"), Bluerock Special Opportunity + Income Fund III, LLC, a Delaware limited liability company ("SOIF III"),
and Bluerock Growth Fund, LLC, a Delaware limited liability company ("BGF"), as the Class B Members(BRG, SOIF
II, SOIF III and BGF, together with any additional members hereinafter admitted, are referred to as the "Members").

 

RECITALS

 

A.           The
Company was formed as a Delaware limited liability company in accordance with the Delaware Limited Liability Company Act, as amended
from time to time (the "Act") on June 23, 2014.

 

B.           The
Company was formed to hold a membership interest in the Company Subsidiary (as defined below) (the "Subsidiary Interest").

 

C.           The
Company Subsidiary holds legal title to the Property (as defined below).

 

D.           The
Members desire to set forth their agreement and understanding with respect to the operation of the Company as a Delaware limited
liability company from and after the date hereof.

 

    	1

    	 

    

  

NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual promises, covenants, and conditions herein contained, the receipt and sufficiency
of which are hereby acknowledged, the undersigned Members hereby covenant and agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

For purposes of this Agreement, the following
terms have the meanings set forth below:

 

1.1           "Accountant"
shall mean the certified public accounting firm that, from time to time, represents the Company.

 

1.2           "Act"
has the meaning set forth in the preamble to this Agreement.

 

1.3           "Additional
Capital Contributions" shall have the meaning set forth in Section 5.3.

 

1.4           "Adjustment
Period" shall mean a period of time as follows: The first Adjustment Period shall commence on the date hereof and each
succeeding Adjustment Period shall commence on the date immediately following the last day of the immediately preceding Adjustment
Period; each Adjustment Period shall end on the earliest to occur after the commencement of such Adjustment Period of (i) the last
day of each Fiscal Year as now exists or as may, from time to time, be selected by the Manager, (ii) a Capital Date, (iii) the
day immediately preceding the date of the "liquidation" of a Member's Membership Interest in the Company (within the
meaning of Section l .704-l(b)(2)(ii)(g) of the Treasury Regulations), (iv) the day immediately preceding the date of an increase
in the Membership Interest of a Member, or (v) the date on which the Company is terminated under Article 3 or Section 12.1 of this
Agreement.

 

1.5           "Affiliate"
shall mean (i) any Entity more than five percent (5%) of the issued and outstanding stock of which, or more than five percent (5%)
interest in which, is owned, directly or indirectly, by any Member or (ii) any Entity that now or hereafter owns, directly or indirectly,
more than a ten percent (10%) interest in the Company or in any Member or (iii) any Entity who is an agent, trustee, officer, director,
employee, member or shareholder or member of the family (or any member of the family of any agent, trustee, officer, director,
employee, partner, member or shareholder) of the Company or of any Member or (iv) any Entity that, directly or indirectly, through
one or more intermediaries, controls, or is controlled by, or is under common control with, the Company or any Member. The term
"control" (including the terms "controlled by" and "under common control with") means the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of an Entity, whether through
the ownership of voting securities, by contract or otherwise. The term "family" shall be deemed to include spouses, children,
parents, brothers and sisters, and the spouse, children, parents, brothers and sisters of such spouse's children, parents, brothers
and sisters.

 

    	2

    	 

    

  

1.6           “Agreement"
shall mean this Limited Liability Company Agreement of BR T&C BLVD JV Member, LLC, as it now exists and as it may from time
to time hereafter be amended, restated or supplemented or otherwise modified from time to time.

 

1.7           “Annual
Financial Statements" shall have the same meaning as set forth m Section 13.3 hereof.

 

1.8           “Bankruptcy"
means, with respect to any Person, if such Person (i) makes an assignment for the benefit of creditors, (ii) files a voluntary
petition in bankruptcy, (iii) is adjudged a bankrupt or insolvent, or has entered against it an order for relief, in any bankruptcy
or insolvency proceedings, (iv) files a petition or answer seeking for itself any reorganization, arrangement, composition, readjustment,
liquidation or similar relief under any statute, law or regulation, (v) files an answer or other pleading admitting or failing
to contest the material allegations of a petition filed against it in any proceeding of this nature, (vi) seeks, consents to or
acquiesces in the appointment of a trustee, receiver or liquidator of the Person or of all or any substantial part of its properties,
or (vii) if one hundred twenty (120) days after the commencement of any proceeding against the Person seeking reorganization, arrangement,
composition, readjustment, liquidation or similar relief under any statute, law or regulation, if the proceeding has not been dismissed,
or if within ninety (90) days after the appointment without such Person's consent or acquiescence of a trustee, receiver or liquidator
of such Person or of all or any substantial part of its properties, the appointment is not vacated or stayed, or within ninety
(90) days after the expiration of any such stay, the appointment is not vacated.

 

1.9           "Basic
Documents" means the documents executed by the Company Subsidiary in favor of the Lender on or about July 1, 2014 and
listed as Exhibit F of the Company Subsidiary LLC Agreement, and all documents and certificates contemplated thereby or delivered
in connection therewith.

 

1.10         "Benefit
Plan Investor" means (i) any "employee benefit plan" as defined by the Employee Retirement Income Security Act
of 1974, as amended ("ERISA"), regardless of whether it is subject to ERISA, (ii) any plan as defined in Section 4975
of the Code, and (iii) any entity deemed for any purpose of ERISA or Section 4975 of the Code to hold assets of any such employee
benefit plan or plan due to investments made in such entity by such employee benefit plans and plans.

 

1.11         "BGF"
shall have the meaning set forth in the introductory paragraph above.

 

1.12         "BRG"
shall have the meaning set forth in the introductory paragraph above.

 

1.13         "Budgeted
Development Capital Calls" shall have the meaning as set forth in Section 5.3(a).

 

1.14         "Capital
Accounts" shall mean the capital accounts established by the Company for each Member pursuant to Article 5.5 hereof. Capital
Accounts shall be determined and maintained throughout the full term of the Company for each Member in accordance with the rules
of this definition. The balance of each Member's Capital Account, as of any particular date, shall be an amount equal to the sum
of the following:

 

    	3

    	 

    

  

(a)          The
cumulative amount of cash and the value of all other property that has been contributed to the capital of the Company by such Member
as a Capital Contribution; plus

 

(b)          The
cumulative amount of the Company's Net Profit and Gain that has been allocated to such Member hereunder; minus

 

(c)          The
cumulative amount of the Company's Net Loss and Loss that has been allocated to such Member hereunder; and minus

 

(d)          The
cumulative amount of cash and the agreed upon value of all other property that has been distributed by the Company to such Member
(other than in repayment of any loans).

 

A Member's Capital Account shall also be
increased or decreased to reflect any items described in Section l.704-l(b)(2)(iv) of the Treasury Regulations that are required
to be reflected in such Member's Capital Account and that are not otherwise taken into account in computing such Capital Account
under this definition.

 

1.15         "Capital
Contributions" shall mean all amounts paid by a Member for its Membership Interests and any Additional Capital Contributions
or Class A Priority Capital Contributions made by a Member.

 

1.16         "Capital
Date" means the date on which any Gain or Loss is recognized by the Company.

 

1.17         "Capital
Transaction" shall mean any (i) direct or indirect sale or other disposition of the Property or substantially all of the
assets of the Company {including the Subsidiary Interest or the Property) outside the ordinary and customary course of business,
(ii) payment, on account of a casualty, for the Property or Subsidiary Interest, or substantially all of the assets of the Company
or Company Subsidiary to the extent such assets are not replaced or repaired, (iii) refinancing of any indebtedness incurred by
the Company or the Company Subsidiary, including the Obligations, and (iv) similar items or transactions relating to the Property
or the Subsidiary Interest, or substantially all of the assets of the Company or the Company Subsidiary, the proceeds of which
under generally accepted accounting principles are deemed attributable to capital.

 

1.18         "Cash
Flow From Operations" shall mean, for a given period, the amount of cash distributed by Company Subsidiary minus administrative
expenses of the Company, all determined in accordance with cash basis accounting principles, consistently applied.

 

1.19         "Certificate
of Formation" means the Certificate of Formation of the Company filed with the Secretary of State of the State of Delaware
on June 23, 2014, as amended or amended and restated from time to time.

 

1.20         "Class
A Capital Commitment" shall mean the amount of the Capital Contribution committed to be made by the Class A Member (including
the projected amount of the Class A Preferred Reserve that will be required of the Company), exclusive of any Class A Priority
Capital Contribution, as set forth on Schedule I. The Class A Capital Commitment represents the total amount of projected capital,
together with the Class B Members' initial Capital Contributions, that will be required of the Company by the Company Subsidiary
to develop and lease-up the Project, as estimated under the Project Budget.

 

    	4

    	 

    

  

1.21         "Class
A Capital Contributions" shall mean the amount of the Capital Contribution made by a Class A Member (including any Class
A Preferred Reserve), but exclusive of any Class A Priority Capital Contribution.

 

1.22         "Class
A Mandatory Redemption Date" shall mean that date which is the earlier of six (6) months following the maturity date of
the Loan (including the exercise of any extensions, but not any refinancings thereof), or any earlier acceleration or due date
thereof.

 

1.23         "Class
A Member" means BRG and, with respect to those Units transferred from a Class A Member, any Person who has been admitted
as a Substitute Member. An Assignee of a Membership Interest who receives Units from a Class A Member shall not be considered a
Class A Member.

 

1.24         "Class
A Membership Interest" means with respect to any Class A Member the membership interest allocated to such Class A Member,
which membership interest will be determined by using a fraction in which the number of Units owned by a Class A Member is the
numerator and the aggregate number of Units that are then owned by all Class A Members is the denominator. The foregoing determination
is also referred to as "Pro Rata as to the Class A Membership Interest".

 

1.25         "Class
A Preferred Reserve" shall have the meaning set forth in Section 5.2.

 

1.26         "Class
A Priority Capital Contribution" shall have the meaning set forth in Section 5.3.

 

1.27         "Class
A Sinking Fund" shall have the meaning set forth in Section 6.6(a).

 

1.28         "Class
A Units" means the Units held by the Class A Members.

 

1.29         "Class
A Unit Redemption Amount" shall mean, as of the date of redemption of the Class A Units pursuant to Section 10.5, the
sum of (i) the aggregate Net Capital Contributions of the Class A Members plus (ii) the accrued but unpaid Current Class A Return
and the accrued but unpaid Priority Class A Return of the Class A Members.

 

1.30         "Class
B Member" means each of SOIF II, SOIF III and BGF, and, with respect to those Units transferred from a Class B Member,
any Person who has been admitted as a Substitute Member. An Assignee of a Membership Interest who receives Units from a Class B
Member shall not be considered a Class B Member.

 

1.31         "Class
B Membership Interest" means with respect to any Class B Member the membership interest allocated to such Class B Member,
which membership interest will be determined by using a fraction in which the number of Units owned by a Class B Member is the
numerator and the aggregate number of Units that are then owned by all Class B Members is the denominator. The foregoing determination
is also referred to as "Pro Rata as to the Class B Membership Interest".

 

    	5

    	 

    

  

1.31         "Class
B Units" means the Units held by the Class B Members.

 

1.32         "Company"
shall refer to BR T&C BLVD JV Member, LLC, a Delaware limited liability company, as it may from time to time be constituted.

 

1.33         "Company
Subsidiary" shall refer to BR T&C BLVD., LLC, a Delaware limited liability company, as it may from time to time be
constituted.

 

1.34         "Company
Subsidiary LLC Agreement" shall refer to the Operating Agreement of Company Subsidiary dated as of June 30, 2014, as may
be amended or restated from time to time.

 

1.36         "Conversion
Date" shall have the meaning set forth in Section 10.4.

 

1.37         "Conversion
Period" shall mean the six (6) month period of time that commences on the Conversion Trigger Date.

 

1.38         "Conversion
Right" shall mean the Class A Member's right to convert its Class A Units to Class B Units, as provided in Section 10.4.

 

1.39         "Conversion
Trigger Date" shall mean the date on which seventy percent (70%) of the Project's apartments have been leased.

 

1.40         "Current
Class A Return" means an amount equal to the product of fifteen percent (15.0%) per annum, determined on the basis of
365 or 366 days, as the case may be, for the actual number of days in the period for which the Current Class A Return is being
determined, times the sum of the Net Class A Capital Contributions, commencing on the date the initial Class A Capital Contribution
is made.

 

1.41         "Default
Event" shall have the meaning as set forth in Section 8.6(c).

 

1.42         "Entity"
shall mean any Person or other business entity, other than an individual.

 

1.43         "Fiscal
Year" shall mean the fiscal year of the Company as set forth in Section 13.2 hereof.

 

1.44         "Gain"
shall mean the gain recognized by the Company for federal income tax purposes in any Adjustment Period by reason of a Capital Transaction.

 

1.45         "IRC''
shall mean the Internal Revenue Code of 1986, Title 26 of the United States Code, as the same may now or hereafter be amended.

 

1.46         "Lender"
shall mean Compass Bank, and its successors and/or assigns.

 

1.47         "Liquidating
Trustee" shall have the meaning as set forth in Section 12.4.

 

    	6

    	 

    

  

1.48         "Loan"
shall refer to that certain construction loan in the amount of $57,000,000.00 and more specifically described in the Basic Documents,
including any successor in interest to the Loan.

 

1.49         "Loss"
shall mean the loss recognized by the Company for federal income tax purposes in any Adjustment Period by reason of a Capital Transaction.

 

1.50         "Majority"
means a collection of Members owning, in the aggregate, more than 50% of the Membership Interests of all Members and, in the context
of voting, means a collection of Members who approve, consent to, or vote in favor of a matter before the Members and who own,
in the aggregate, more than 50% of the Membership Interests of all Members entitled to vote on thereon. When used in the context
of a class of Membership Interests, "Majority" shall mean a collection of those class Members owning, in the aggregate,
more than 50% of the Membership Interests of all Members of that class, and, in the context of voting, means a collection of class
Members who approve, consent to, or vote in favor of a matter before the class Members and who own, in the aggregate, more than
50% of the class Membership Interests of all class Members entitled to vote thereon.

 

1.51         "Management
Committee" means the management committee of the Company Subsidiary as more fully described in the Company Subsidiary
LLC Agreement.

 

1.52         "Manager"
or "Managers" shall mean the Person or Persons selected to be the manager or managers of the Company from time to time
by either a Majority of the Class B Members or pursuant to Section 7.4 herein. The initial Managers are SOIF II, SOIF III and BGF.
A Member simply by virtue of its status as a member in the Company shall 1101 be a Manager of the Company unless so selected by
a Majority of the Class B Members or pursuant to Section 7.4 herein. A Manager does not have to be a Member of the Company. The
term "Manager" as used herein shall specifically mean all of the then incumbent Managers of the Company where the context
requires.

 

1.53         "Material
Action" means to file any insolvency, or reorganization case or proceeding, to institute proceedings to have the Company
be adjudicated bankrupt or insolvent, to institute proceedings under any applicable insolvency law, to seek any relief under any
law relating to relief from debts or the protection of debtors, or consent to the institution of bankruptcy or insolvency proceedings
against the Company or file a petition seeking, or consent to, reorganization or relief with respect to the Company under any applicable
federal or state law relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator
(or other similar official) of the Company or a substantial part of its property, or make any assignment for the benefit of creditors
of the Company, or admit in writing the Company's inability to pay its debts generally as they become due, or take action in furtherance
of any such action.

 

1.54         "Member"
or "Members" shall refer to the Persons listed above as Members and any other Persons who shall subsequently
be admitted as Substitute Members in the Company, each in its capacity as a Member of the Company, including both Class A Members
and Class B Members.

 

    	7

    	 

    

  

1.55         “Membership
Interest" means with respect to any Member the membership interest allocated to such Member, which membership interest
will be determined by using a fraction in which the number of Units owned by a Member is the numerator and the aggregate number
of Units that are then outstanding is the denominator.

 

1.56         "Minimum
Gain'' shall mean, as of any particular date, an amount determined with respect to the Company on such date in accordance with
Section l.704-l(b)(4)(ii)(c) of the Treasury Regulations interpreting the IRC.

 

1.57         “Mortgage"
means any deed to secure debt, mortgage, deed of trust, security agreement or other similar instrument at any time and from time
to time constituting a lien upon, security interest in or security title to any of the assets of the Company Subsidiary.

 

1.58         "Mortgagee"
shall mean the holder of a Mortgage.

 

1.59         "Net
Cash Proceeds" shall mean the proceeds from a Capital Transaction less (i) any amounts retained by a Mortgagee and (ii)
any costs incurred by the Company or the Company Subsidiary in connection with such Capital Transaction not paid to an Affiliate
of a Member.

 

1.60         "Net
Class A Capital Contributions'' means the Class A Capital Contributions, less all distributions made to the Class A Members
under Section 6.8(f).

 

1.61         "Net
Class A Priority Capital Contributions" means the Class A Priority Capital Contributions, less all distributions made
to the Class A Members under Section 6.8(d).

 

1.62         "Net
Capital Contributions" means, with respect to any Member, its aggregate Capital Contributions less any distributions delineated
as return of Capital Contributions.

 

1.63         "Net
Profit" or "Net Loss" shall mean, for each Adjustment Period, the Company's taxable income or taxable
loss for such Adjustment Period, as determined under Section 703(a) of the IRC and Section 1.703-1 of the Treasury Regulations
interpreting the IRC (for this purpose, all items of income, gain, loss or deduction are required to be stated separately pursuant
to Section 703(a)(l ) of the IRC and shall be included in taxable income or taxable loss), with the following adjustments:

 

(a)          any
tax-exempt income, as described in Section 705(a)(1 )(B) of the IRC, realized by the Company during such Adjustment Period shall
be taken into account in computing such Net Profit or Net Loss as if it were taxable income;

 

(b) any expenditures
of the Company described in Section 705(a)(2)(B) of the IRC for such Adjustment Period, including any items treated under Section
l.704-l (b)(2)(iv)(i) of the Treasury Regulations interpreting the IRC as items described in Section 705(a)(2)(B) of the IRC, shall
be taken into account in computing such Net Profit or Net Loss as if they were deductible items;

 

    	8

    	 

    

  

(c)          any
items of income, deduction, gain or loss that are specially allocated pursuant to Sections 6.4, 6.5 and 6.9 shall not be taken
into account in computing Net Profit or Net Loss;

 

(d)          if
the Company's taxable income or taxable loss for such Adjustment Period, as adjusted in the manner provided above, is a positive
amount, such amount shall be the Company's Net Profit for such Adjustment Period, and if negative, such amount shall be the Company's
Net Loss for such Adjustment Period.

 

1.64         "Obligation"
shall mean the indebtedness, liabilities and obligations of the Company or Company Subsidiary under or in connection with the Basic
Documents or any related document in effect as of any date of determination.

 

1.65         "Person"
means any individual, corporation, partnership, joint venture, limited liability company, limited liability partnership, association,
joint stock company, trust, unincorporated organization or other organization, whether or not a legal entity, and any governmental
authority.

 

1.66         "Priority
Class A Return" shall have the meaning set forth in Section 5.3(b).

 

1.67         "Project"
means an approximately 340-unit Class A rental apartment complex to be constructed upon the Property by Company Subsidiary.

 

1.68         "Project
Budget" means the Total Project Budget as that term is used in the Company Subsidiary LLC Agreement.

 

1.69         "Property"
shall mean that certain real property located in Houston, Texas and more fully described in the Company Subsidiary LLC Agreement
to which legal title is held by and upon which Company Subsidiary intends to develop the Project.

 

1.70         "Proposed
Annual Budget" shall have the meaning set forth in Section 13.7.

 

1.71         "Representative"
means a representative to the Management Committee.

 

1.72         "SOIF
II" shall have the meaning set forth in the introductory paragraph above.

 

1.73         "SOlF
III" shall have the meaning set forth in the introductory paragraph above.

 

1.74         "Subsidiary
Interest" shall have the meaning set forth in the preambles to this Agreement.

 

1.75         "Substitute
Member" shall mean a transferee of a Member's Membership Interest who has complied with the requirements under Article
10 of this Agreement and is a Member of the Company.

 

1.76         "Tax
Rate" shall mean, for any Fiscal Year, the sum of (i) the highest then marginal income tax rate for individual taxpayers
as set forth in the IRC and (ii) the highest then marginal income tax rate for individual taxpayers in effect in the State of Delaware.

 

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1.77         "Taxing
Jurisdiction'' means the federal, state, local, or foreign government that collects tax, interest, or penalties, however designated,
on any Member's share of the income or gain attributable to the Company.

 

1.78         "Treasury
Regulations" shall mean the Income Tax Regulations promulgated under the IRC, as such regulations may be amended from
time to time including corresponding provisions of succeeding regulations.

 

1.79         "Unit"
means one or more of the units of limited liability company interest, or fractional portions thereof, representing a Member's ownership
rights in the Company, classified as Class A or Class B.

 

ARTICLE 2

 

NAME, OFFICE, REGISTERED AGENT, 

AND MEMBER' S NAMES AND MAILING ADDRESSES

 

2.1           Name:
The name of the limited liability company is:

 

"BR T&C BLVD JV Member, LLC"

 

2.2           Principal
Business Office. The address of the principal business office of the Company shall be located at 712 Fifth Avenue, 9th Floor,
New York, New York 10019, and shall also be at such other place or places as the Manager may hereafter determine.

 

2.3           Registered
Office. The address of the registered office of the Company in the State of Delaware is c/o National Registered Agents, Inc.,
160 Greentree Dr., Suite 101, Dover, Delaware 19904.

 

2.4           Registered
Agent. The name and address of the registered agent of the Company for service of process on the Company in the State of Delaware
is National Registered Agents, Inc., 160 Greentree Dr., Suite I 01, Dover, Delaware 19904.

 

2.5           Members'
Names and Number of Units. The names and addresses of the Members, number of Class A and Class 8 Units owned by each Member,
Membership Interests, Class A Membership Interests, and Class 8 Membership Interests are set forth on Schedule I.

 

ARTICLE 3

 

DURATION

 

The term of the Company
shall commence on the date of the filing of a Certificate of Formation with the Office of the Secretary of State of the State of
Delaware, and its duration shall be perpetual. The existence of the Company as a separate legal entity shall continue until cancellation
of the Certificate of Formation.

 

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ARTICLE 4

 

PURPOSE

 

The Company is organized
for the purpose of: (i) acquiring, owning, holding, financing, hypothecating, pledging and disposing of the Subsidiary Interest;
and (ii) 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.

 

ARTICLE 5

 

CAPITAL CONTRIBUTIONS, MEMBERSHIP
INTERESTS, ETC.

 

5.1           Admission
of Member. The Members are admitted to the Company as the sole equity members of the Company upon their respective execution
and delivery of a counterpart signature page to this Agreement.

 

5.2           Capital
Contribution of the Members; Payment. The Members have made their respective initial Capital Contributions to the Company as
set forth on Schedule I, and shall contribute such additional amounts of capital as provided in this Agreement. The Members agree
that the Class A Member's initial Capital Contributions, and each subsequent Capital Contribution pursuant to its Class A Capital
Commitment, shall include an interest reserve calculated at a seven percent (7%) annual interest rate which shall be segregated
by the Company from all other Capital Contributions made by the Class A Member pursuant to its Class A Capital Commitment, and
from all other funds held by the Company, and shall be solely used to establish a specific reserve to the benefit of the Class
A Member (the "Class A Preferred Reserve"). Except as otherwise provided in Sections 6.7 and 10.4(b), the funds on deposit
in the Class A Preferred Reserve shall be earmarked and used specifically for the monthly draw and payment of a portion of the
Current Class A Return equivalent to a 7% annualized return on all Class A Capital Contributions, and the Manager shall not have
the authority to use the funds in the Class A Preferred Reserve for any other purpose without the prior written approval of the
Class A Member (or if there is more than one Class A Member, Members owning a Majority of the Class A Membership Interests). Until
such time as the Class A Units are redeemed or converted to Class B Units as provided in Section 10.4, the Company must at all
times maintain not less than three (3) months' worth of payments in the Class A Preferred Reserve.

 

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5.3           Additional
Contributions.

 

(a)          To
the extent necessary and as required of the Company by the Company Subsidiary to develop and lease-up the Project under the Project
Budget, the Manager may call for additional capital from the Members, and, until such time as the Class A Member has fully funded
the Class A Capital Commitment, the Class A Member shall be obligated to fund its share of all such capital calls ("Budgeted
Development Capital Calls"). If Class A Member fails to fund its share of any Budgeted Development Capital Calls within ten
(10) days of written notification of the need therefor, its Current Class A Return shall be as of that date reduced to seven percent
(7%) per annum. All other capital calls shall be made as and in the amount determined by the Manager, including but not limited
to for the funding of any Current Class A Return after payments thereon are drawn from the Class A Preferred Reserve, Priority
Class A Return, or if additional funds are required by or called for pursuant to the Company Subsidiary LLC Agreement (all such
additional funds, other than Budgeted Development Capital Calls, are referred to as "Additional Capital Contribution(s)").
For the avoidance of doubt, to the extent that Cash Flow From Operations is insufficient to allow the Company, after taking into
account any draws from the Class A Preferred Reserve as provided in Section 6.7, to pay the Class A Return and Priority Class A
Return in full on a monthly basis as required under Sections 6.6(b) and (c), Manager shall be obligated to make a call for Additional
Capital Contributions in such amount as are necessary in order to allow the Company to do so, and all such capital called for that
purpose shall be distributed as provided in Sections 6.6(b) and (c). Additional Capital Contributions shall be solely the obligation
of the Class B Members, and the Class A Member shall have no obligation to make Additional Capital Contributions. All additional
funds contributed by the Class B Members shall be contributed as additional capital to the Company by the Class B Members Pro Rata
as to the Class B Membership Interest (or in any such other percentages as they shall agree) within ten (10) days of written notification
of the need therefor; provided, that no Additional Capital Contributions funded shall be distributed to the Members without the
prior written consent of the Class A Member. Any Additional Capital Contributions made by the Class B Members will be treated on
the same basis and parity as the initial Capital Contributions of the Class B Members made in accordance with Section 5.2 above.

 

(b)          If
the Class B Members fail to contribute all of their share of any Budgeted Development Capital Call or to make all of an Additional
Capital Contribution , the Class A Member may, but shall not be obligated to, contribute as additional capital to the Company (if
there is more than on Class A Member, Pro Rata as to the Class A Membership Interest (or in any such other percentages as they
shall agree)) all or a portion of the amount that the Class B Members failed to fund. Any such Capital Contributions made by the
Class A Member shall be referred to as the "Class A Priority Capital Contributions ." Any Class A Priority Capital Contributions
made by the Class A Member will be treated on the same basis as its prior Capital Contributions of the Class A Member made in accordance
with Section 5.2 above, except that the Current Class A Return on such Class A Priority Capital Contributions shall be twenty percent
(20%) per annum (the "Priority Class A Return") and the Class A Member shall have a priority return of its Priority Class
A Return and Class A Priority Capital Contributions in Distributions from Capital Transactions and Liquidations, as set forth in
Section 6.8.

 

(c)          Additional
Capital Contributions shall be made in cash unless the Manager and Class A Member agree otherwise.

 

(d)          Except
as provided in Sections 5.2, 5.3(a) and 5.3(b), no Capital Contributions may be made to the Company without the prior written consent
of the Class A Member.

 

    	12

    	 

    

  

5.4           Return
of Capital Contributions; Interest on Capital Contributions.

 

(a)          No
Member shall have the right to withdraw his Capital Contributions or demand or receive the return of his Capital Contributions
or any part thereof, except as provided in Section l 0.5 with respect to the Class A Member and as otherwise provided in this Agreement.

 

(b)          The
Manager shall not be liable for the return of the Capital Contributions of the Members. If and to the extent that any such return
is required, such return shall be made solely from the assets of the Company.

 

  (c)          The
Company shall not pay interest on the Capital Contributions of any Member, except as otherwise provided in this Agreement.

 

5.5           Capital
Accounts. The Capital Accounts of the Company shall be established and maintained for each Member hereunder in accordance with
the federal income tax accounting practices and rules established under Section 704(b) of the IRC and the Treasury Regulations
thereunder.

 

5.6           Membership
Interests. The Class A Membership Interests and Class B Membership Interests in the Company are set forth on Schedule I.

 

5.7           Admission
of Additional Members. The Company shall not be permitted to admit additional Members hereunder without consent of: (1) the
Manager and (2)(a) the Members owning a Majority of the Membership Interests and (b) the Class A Membership Interest, to the extent
outstanding. Except as expressly permitted in this Agreement, no other Person shall be admitted as a Member of the Company, and
no additional interest in the Company shall be issued, without such approval of a Majority of the Membership Interests and the
Class A Membership Interest.

  

ARTICLE 6

 

ALLOCATION AND DISTRIBUTION OF CERTAIN
ITEMS

 

6.1           Net
Profit. After giving effect to the special allocations set forth in Sections 6.4, 6.5, 6.6 and 6.9, all Net Profit shall be allocated
to the Members' Capital Accounts in the following manner and order of priorities:

 

(a)          After
giving effect to the allocations contained in Section 6.l(b), the Company's Net Profit shall be allocated one hundred percent to
the Class B Members' Capital Accounts.

 

(b)          To
the extent Net Loss was allocated to the Members' Capital Accounts pursuant to Section 6.2(a), then prior to making the allocations
under Section 6.1(a), Net Profit shall be allocated to the Members' Capital Accounts in an amount equal to and in the reverse order
that such Net Loss was allocated.

 

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6.2           Net
Loss. After giving effect to the special allocations set forth in Sections 6.4, 6.5, and 6.9, all Net Loss shall be allocated
to the Members' Capital Accounts in the following manner and order of priorities:

 

(a)          After
giving effect to the allocations contained in Section 6.2(b), the Company's Net Loss shall be allocated in the following manner
and order of priorities:

 

(i)          First,
one hundred percent (100%) to the Class B Members' Capital Accounts until the cumulative Net Loss allocated to the Class B Members'
Capital Accounts pursuant to this Section 6.2(a)(i) equals the amount of the Class B Members' capital contributions to the Company;

 

(ii)         Second,
one hundred percent (100%) to the Class A Members' Capital Accounts until the cumulative Net Loss allocated to the Class A Members'
Capital Accounts pursuant to this Section 6.2(a)(ii) equals the amount of the Class A Members' capital contributions to the Company;
and

 

(iii)        Third,
the balance, to the Members who bear the risk of such loss or if no Members bears the risk of loss, one hundred percent (100%)
to the Class B Members' Capital Accounts.

 

(b)          To
the extent Net Profit was allocated to the Members' Capital Accounts pursuant to Section 6.1(a), then prior to making any allocations
of Net Loss under Section 6.2(a), Net Loss shall be allocated to the Members' Capital Accounts in an amount equal to and in the
reverse order that such Net Profit were allocated.

 

6.3           Composition
of Special Allocation Items. Except as required otherwise under the IRC or the Regulations issued thereunder, all special allocations
of income, gain or deduction made pursuant to Sections 6.4, 6.5 and 6.9 shall consist of a proportionate part of each item of gross
income, gain or deduction, as the case may be, that the Company recognizes in the year such allocation is to be made.

 

6.4           Special
Current Class A Return Allocations. Prior to the allocations contained in Sections 6.1 and 6.2, items of income and Gain shall
be specially allocated to the Class A Members in proportion to and to the extent of the excess, if any, of (i) the cumulative Current
Class A Return distributed to each Member pursuant to Sections 6.6(b), 6.7(a) and 6.8(e) hereof from the commencement of the Company
to a date thirty (30) days after the end of such Adjustment Period, over (ii) the cumulative items of income and Gain allocated
to such Member pursuant to this Section 6.4 for all prior Adjustment Periods.

 

6.5           Special
Priority Class A Return Allocations. Prior to the allocations contained in Sections 6.1 and 6.2, items of income and Gain
shall be specially allocated to the Class A Members in proportion to and to the extent of the excess, if any, of (i) the cumulative
Priority Class A Return distributed to each Member pursuant to Sections 6.6(c), 6.7(b) and Section 6.8(c) hereof from the commencement
of the Company to a date thirty (30) days after the end of such Adjustment Period, over (ii) the cumulative items of Gain allocated
to such Member pursuant to this Section 6.5 for all prior Adjustment Periods.

 

    	14

    	 

    

  

6.6           Distributions
of Cash Flow From Operations. Distributions of Cash Flow From Operations shall be made monthly. Distributions made pursuant
to this Section shall be made monthly to the Members in the following order of priority:

 

(a)          On
and after the Class A Mandatory Redemption Date, to the Class A Members until such Class A Members have received distributions
in an amount equal to the Class A Unit Redemption Amount; provided, that, if distributions of Cash Flow From Operations to be made
under this Section 6.6(a) are insufficient to fully satisfy the Class A Unit Redemption Amount, all Cash Flow From Operations shall
be segregated in a separate account of the Company (the "Class A Sinking Fund'') until such time as distributions to be made
under this Section 6.6(a) plus the amounts in the Class A Sinking Fund are sufficient, and are used, to fully satisfy the Class
A Unit Redemption Amount;

 

(b)          Second,
to the Class A Members (to be shared among them, pro rata, according to their respective unpaid Current Class A Return) until such
Class A Members have received distributions in an amount equal to their respective unpaid Current Class A Return (as may be modified
by Section 6.14) until it is paid in full pursuant to this Section 6.6(b), Section 6.7(a) and Section 6.8(e);

 

(c)          Third,
to the Class A Members (to be shared among them, pro rata, according to their respective unpaid Priority Class A Return) until
such Class A Members have received distributions in an amount equal to their respective unpaid Priority Class A Return (as may
be modified by Section 6.14) until it is paid in full pursuant to this Section 6.6(c), Section 6.7(b) and Section 6.8(c);
and

 

(d)          Fourth,
to the Class B Members pro rata, m accordance with their respective Class B Membership Interests.

 

For the avoidance of doubt, to the extent
that Cash Flow From Operations is insufficient to allow the Company, after taking into account any draws from the Class A Preferred
Reserve as provided in Section 6.7, to pay the Class A Return and Priority Class A Return in full on a monthly basis, Manager
shall be obligated to make a call for Additional Capital Contributions in such amount as are necessary in order to allow the Company
to do so, and all such capital called for that purpose shall be distributed as provided in subsections (b) and (c) above.

 

6.7           Distributions
from Class A Preferred Reserve. The Manager shall cause distributions to be made from the Class A Preferred Reserve on a monthly
basis as necessary in order to pay a portion of the unpaid Current Class A Return equivalent to a 7% annualized return on all Class
A Capital Contributions; provided however, from and after the occurrence of a Default Event, the Manager shall cause distributions
to be made from the Class A Preferred Reserve on a monthly basis as necessary in order to pay any unpaid Current Class A Return
and all unpaid Priority Class A Return, in the following order of priority:

 

    	15

    	 

    

  

(a)          To
the Class A Members (to be shared among them, pro rata, according to their respective unpaid Current Class A Return) until such
Class A Members have received distributions in an amount equal to their respective unpaid Current Class A Return (as may be modified
by Section 6.14) until it is paid in full pursuant to Section 6.6(b), this Section 6.7(a) and Section 6.8(e); and

 

(b)          Second,
to the Class A Members (to be shared among them, pro rata, according to their respective unpaid Priority Class A Return) until
such Class A Members have received distributions in an amount equal to their respective unpaid Priority Class A Return (as may
be modified by Section 6.14) until it is paid in full pursuant to Section 6.6(c), this Section 6.7(b) and Section 6.8(c).

 

6.8           Distributions
From Capital Transactions and on Liquidations. Net Cash Proceeds in connection with Capital Transactions and/or in connection
with the liquidation of the Company shall be distributed within thirty (30) days of the completion of the applicable event. Distributions
made pursuant to this Section shall be made in the following amounts and order of priority:

 

(a)          To
discharge the debts and obligations of the Company;

 

(b)          To
fund reasonable and necessary reserves as determined in good faith by the Manager and approved by the Class A Members;

 

(c)          To
the Class A Members (to be shared among them, pro rata, according to their respective unpaid Priority Class A Return) until such
Class A Members have received distributions of Net Cash Proceeds in an amount equal to their respective unpaid Priority Class A
Return until it is paid in full pursuant to this Section 6.8(c), Section 6.7(b) and Section 6.6(c);

 

(d)          To
the Class A Members (to be shared among them, pro rata, according to their respective Net Class A Priority Capital Contributions)
until such Class A Members have received distributions of Net Cash Proceeds in an amount equal to their respective Net Class A
Priority Capital Contributions until it is paid in full pursuant to this Section 6.8(d);

 

(e)          To
the Class A Members (to be shared among them, pro rata, according to their respective unpaid Current Class A Return) until such
Class A Members have received distributions of Net Cash Proceeds in an amount equal to their respective unpaid Current Class A
Return until it is paid in full pursuant to this Section 6.8(e), Section 6.7(a) and Section 6.6(b);

 

(f)           o the Class A
Members (to be shared among them, pro rata, according to their respective aggregate Net Class A Capital Contributions), until such
Class A Members have received distributions of Net Cash Proceeds in the amount equal to their respective aggregate Net Class A
Capital Contributions until they are repaid in full pursuant to this Section 6.8(t);

 

(g)          To
the Class B Members pro rata, in accordance with their respective positive Capital Accounts; and

 

(h)          To
the Class B Members pro rata, in accordance with their respective Class 8 Membership Interests.

 

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6.9           Special
Tax Allocations. The allocations in this Section 6.9 shall be given effect before giving effect to the allocations contained
in Sections 6.1 through Section 6.5:

 

(a)          Notwithstanding
any provision contained herein to the contrary, if the amount of Net Loss and Loss for any Adjustment Period that would otherwise
be allocated to a Member hereunder would cause or increase a deficit balance in such Member's Capital Account to an amount in excess
of the sum of such Member's share of Minimum Gain as of the last day of such Adjustment Period, then a proportionate part of such
Net Loss and Loss equal to such excess shall be allocated proportionately first to the other Members in an amount up to, but not
in excess of, the amount that would cause or increase a deficit balance in each of such Member's Capital Accounts to an amount
equal to the sum of their respective shares of Minimum Gain as of the last day of such Adjustment Period. For purposes of this
Section 6.9(a), each Member's Capital Account shall be computed as of the last day of such Adjustment Period in the manner provided
in the definition of Capital Account, but shall be reduced for the items described in Section 1.704-l(b)(2)(ii)-(d)(4), (5) and
(6) of the Treasury Regulations interpreting the IRC.

 

(b)          Notwithstanding
any provision in this Agreement to the contrary, if any of the Members, as of the last day of any Adjustment Period, has a deficit
balance in its Capital Account that exceeds the sum of its share of Minimum Gain as of such last day, then all items of income
and gain of the Company (consisting of a prorata portion of each item of Company income, including gross income and Gain) for such
Adjustment Period shall be allocated to such Members in the amount and in the proportions required to eliminate such excess as
quickly as possible. For purposes of this Section, a Member's Capital Account shall be computed as of the last day of an Adjustment
Period in the manner provided in the definition of Capital Account, but shall be increased by any allocation of income to such
Member for such Adjustment Period under Section 6.9(c).

 

(c)          Notwithstanding
any provision in this Agreement to the contrary, if there is a net decrease in the Minimum Gain during any Adjustment Period, then
all items of gross income and Gain of the Company for such Adjustment Period (and, if necessary, for subsequent Adjustment Periods)
shall be allocated to each Member in proportion to, and to the extent of, an amount equal to the greater of (i) the portion of
such Member' s share of the net decrease that is allocable to the disposition of Company property subject to one or more nonrecourse
liabilities of the Company or {ii) the deficit balance in such Member's Capital Account (determined before any allocation for such
Adjustment Period) in excess of the sum of such Member's share of the Minimum Gain as of the close of such Adjustment Period. The
items required to be allocated to the Members under this Section 6.9(c) shall be determined in accordance with Section l.704-2(f)
of the Treasury Regulations.

 

(d)          Notwithstanding
any other prov1S1on contained herein, any item of Company loss, deduction or IRC Section 705(a)(2){B) expenditure that is
attributable to a nonrecourse liability of the Company for which any Member bears the economic risk of loss (e.g., a Member or
an Affiliate makes the nonrecourse loan to the Company) shall be allocated to the Member or Members who bear the economic risk
of loss with respect to such liability to the extent required in Section 1.704-2(i) of the Treasury Regulations interpreting
the Code.

 

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6.10         Curative
Allocations. The allocations set forth in Section 6.9 (the "Regulatory Allocations") are intended to comply with
the requirements of the Treasury Regulations. The Regulatory Allocations may not be consistent with the manner in which the Members
intend to divide Company distributions. Accordingly, notwithstanding any other provision of this Article (other than the Regulatory
Allocations), the Manager may make such offsetting special allocations of income, gain, loss, or deduction in whatever manner it
determines appropriate to so as to prevent the Regulatory Allocations from distorting the manner in which the Company's distributions
would otherwise be divided among the Members. In general, the Members anticipate that this will be accomplished by specially allocating
other profit, losses, gain, and deductions among the Members so that, after such offsetting special allocations are made, the amount
of each Member's Capital Account will be, to the extent possible, equal to the Capital Account balance such Member would have had
if the Regulatory Allocations were not a part of this Agreement and all Company items had been allocated to the Members solely
pursuant to Sections 6.1 through 6.5.

 

6.11         IRC
Section 704(c) Tax Allocations. In accordance with IRC Section 704(c) the Treasury Regulations thereunder, income, gain, loss,
and deduction with respect to any property contributed to the capital of the Company shall, solely for 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 federal
income tax purposes and its fair market value. Any elections or other decisions relating to such allocations shall be made by the
Manager in its sole discretion.

 

6.12         Distribution
Limitations. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not be required to
make a distribution to the Members on account of their interests in the Company if such distribution would violate the Act or any
other applicable law or would constitute a default under any Basic Document.

 

6.13         Amounts
Withheld for Taxes or Paid on Composite Returns. All amounts withheld pursuant to the IRC or any provision of any state or
local tax law with respect to any payment, distribution or allocation to the Company or one or more of the Members shall be treated
as amounts paid or distributed, as the case may be, to the Members for whom such amounts were withheld pursuant to this Article
for all purposes under this Agreement. The Manager may allocate any such amount among the Members in any manner that is in accordance
with applicable law. The Company is authorized to withhold from payments and distributions to one or more Members, or with respect
to allocations to one or more Members, and to pay over to any federal, state or local government, any amounts so withheld under
this Agreement, the Code or any provisions of any other federal, state, or local law, and shall allocate any such amounts to the
Members for whom such amounts were withheld. To the extent required by any provision of any state or local tax law, the Company
shall file a composite tax return on behalf of one or more of its Members and shall report and pay income taxes required by law
to be paid with such composite tax returns to any Taxing Jurisdiction, and any such amounts shall be treated as a Distribution
to the Member for whom such composite tax return is filed. The Company shall have the power and authority to determine (a) whether
a Member should be included in a composite tax return required to be filed by any provision of any applicable tax law, and (b)
whether the Member is subject to withholding, pursuant to this Section, on payments, distributions or allocations from the Company.
A Member shall be limited to an action against the applicable Taxing Jurisdiction(s) with respect to any claims based on over-withholding
or over-payment on a composite tax return, and neither the Company, nor the Managers shall have any liability to any Member with
respect to any withholding or composite tax return filings or payments made pursuant to this Section.

 

    	18

    	 

    

  

6.14         Timing
of Distributions of Current Class A Return and Priority Class A Return. Distributions of Current Class A Return under Section
6.6(b) or Section 6.8(e) and Priority Class A Return under Section 6.6(c) or Section 6.8(c) will be made on a monthly basis on
or before the 10th day of each calendar month following the calendar month to which the Current Class A Return or Priority
Class A Return relates. If a distribution of Current Class A Return or Priority Class A Return is not made on or before the 10th
day of a calendar month (a "Delayed Distribution"), the Current Class A Return and the Priority Class A Return (if any)
shall be calculated by increasing the annual percentage rate therein by 3.5% from the 11th day of such calendar month
until such time as all Delayed Distributions are made.

 

ARTICLE 7

 

APPOINTMENT OF MANAGER; OBLIGATIONS,
REPRESENTATIONS 

AND WARRANTIES OFTHE MANAGER

 

7.1           Appointment
of the Manager. Subject to Section 8.6, the business and affairs of the Company shall be managed by or under the direction
of the Manager. The Manager shall hold office until such Manager's earlier dissolution, death, resignation, expulsion or removal.
Any successor Manager shall be appointed by a Majority of the Class 8 Membership Interest prior to the Conversion Date and by a
Majority of the Membership Interest on and after the Conversion Date, unless otherwise provided in this Agreement. A Manager need
not be a Member. A Member shall not be deemed to be a Manager simply by virtue of being a Member in the Company. The initial Managers
designated by the Class 8 Members are SOIF II, SOIF III and BGF.

 

7.2           Compensation
of Manager; Removal of Manager. The Manager shall receive no compensation for serving as the Manager of the Company. The Manager
shall be reimbursed for all reasonable expenses incurred in managing the Company. The Manager and Affiliates of a Member or the
Manager may provide services to the Company, Company Subsidiary and the Property in addition to those contemplated to be provided
by a manager and receive additional compensation therefor; provided that any fee paid by the Company or Company Subsidiary for
such services shall be at rates customarily charged for similar services by Persons engaged in the same or substantially similar
activities in the relevant geographical area and the provisions of each such contract shall be at least as favorable to the Company
as the terms reasonably expected by the Manager to be available in an arm's-length transaction with an independent third party
and, provided further, that any such contract with an Affiliate of the Manager, Class 8 Members and/or their Affiliates must be
approved by the Class A Members, which approval will not be unreasonably withheld, conditioned or delayed. Unless otherwise restricted
by law or the Basic Documents, the Manager may resign by written notice to the Company and may be removed or expelled at any time
by the written consent of the Class A Members owning a Majority of the Class A Membership Interests, and any vacancy may be filled
by the written consent of the Members owning a Majority of the Class A Membership Interests. Notwithstanding the foregoing and
except as provided in Section 7.4, a Manager may not be removed or expelled as the Manager and no additional Manager may be appointed
unless there is cause for removal. For purposes hereof, "cause for removal" shall mean (i) a collection action has been
instituted by the Lender, (ii) the assertion by the Class A Members that any action by the Manager constitutes fraud against the
Company, the Company Subsidiary, the Class A Members, or the Project, (iii) the good faith assertion by the Class A Members that
any action or failure to act by the Manager constitutes gross negligence, willful misconduct, bad faith or a material violation
of law in the performance of its duties to the Company, (iv) the assertion by the Class A Members of a violation by the Manager
of its fiduciary obligations to the Company, and (v) the good faith assertion by the Class A Members of any material breach by
the Manager of the material terms of this Agreement; provided, however, that such alleged breach of this Agreement by the Manager
described in subpart (v) has not been cured by the Manager within sixty (60) days after such time as it may be demonstrated that
the Manager had actual knowledge of such alleged material breach; provided, however that if such breach cannot reasonably be cured
within such sixty (60) day period and the Manager is diligently pursuing such cure, the sixty (60) day period shall be extended
to ninety (90) days.

 

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In the event that a
"cause for removal" described in the definition of "cause for removal" above occurs, upon the giving of written
notice by the Class A Members to the Manager that the Manager is replaced, then the current Manager shall be replaced by the Manager
designated in such notice (the "Class A Manager") and the Class A Manager shall be the sole Manager of the Company with
all powers of the Manager of the Company and the initial Manager shall have no further rights as and shall immediately cease to
act as Manager of the Company, and notwithstanding anything in this Agreement to the contrary, such Class A Manager may not thereafter
be removed without the consent of the Class A Members.

 

7.3           Manager
as Agent. To the extent of its powers set forth in this Agreement and subject to Section 8.6, the Manager is an agent of the
Company for the purpose of the Company's business, and the actions of the Manager taken in accordance with such powers set forth
in this Agreement shall bind the Company.

 

7.4           Manager
Following Class A Conversion Date. As of the date of closing of BRG's exercise of its Conversion right as provided in Section
10.4 (the "Conversion Date"), SOIF II, SOIF III, BGF and any then current Manager shall each and all be deemed to have
automatically resigned as Managers and cease to be Managers of the Company, whereupon BRG shall become the sole Manager of the
Company. Notwithstanding Section 7.2, on and after the Conversion, the Manager may only be removed by a Majority Vote of the Members
for an act or omission by the Manager related to the Company constituting gross negligence or fraud causing a material diminution
of value in the Company or the Subsidiary Interest.

 

ARTICLE 8

 

STATUS OF THE MANAGER'S POWERS 

AND TRANSFERABILITY OF INTERESTS

 

8.1           Control
and Responsibility. Except as otherwise expressly provided herein, the Manager shall be responsible for the management of the
Company business and shall have all powers conferred by law as well as those that are necessary, advisable or consistent in connection
therewith. Except as otherwise provided in Section 8.6(f) as to the Class A Member, any note, contract, management agreement, deed,
bill of sale, assignment, conveyance, mortgage, lease or other commitment purporting to bind the Company or any third party to
any action shall be executed and delivered by the Manager on behalf of the Company and no other signature whatsoever shall be required.

 

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8.2           Status
of Manager's Interests. The Manager shall not have the right to transfer or assign the interests it holds as Manager in the
Company; provided, however, to the extent that BRG or a BRG Transferee Transfers all or a portion of its Interest in accordance
with Section 10 to a BRG Transferee, such BRG Transferee may be appointed as an additional Manager under this Section 7.1
by BRG or a BRG Transferee then holding all or a portion of an Interest without any further action or authorization by any Member.

 

8.3           No
Right to Partition. To the fullest extent permitted by law, neither the Members nor the Manager shall have the right to bring
an action for partition or any sale for division against the Company or any of its properties. Except as otherwise expressly provided
in this Agreement, to the fullest extent permitted by law, each of the Members hereby irrevocably waives any right or power that
such Person might have to cause the Company or any of its assets to be partitioned, to cause the appointment of a receiver for
all or any portion of the assets of the Company, to compel any sale of all or any portion of the assets of the Company pursuant
to any applicable law or to file a complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation,
winding up or termination of the Company. To the fullest extent permitted by law, each of the Members hereby irrevocably waives
any right or power that such Person might have to reject this Agreement in any bankruptcy or insolvency proceedings relating to
such Person. The Members shall not have any interest in any specific assets of the Company, and the Members shall not have the
status of a creditor with respect to any distribution pursuant to Agreement. The interest of the Members in the Company is personal
property.

 

8.4           Extent
of Obligation. The Manager shall devote such time to the business and affairs of the Company as the Manager shall reasonably
deem necessary to conduct properly such business and affairs in accordance with this Agreement and applicable law.

 

8.5           Rights
and Powers. In addition to any other rights and powers that it may possess under applicable law or by virtue of this Agreement,
but in any event subject to Section 8.6 hereof and the Basic Documents to the contrary, the Manager shall have the full and
absolute power and authority to bind the Company and take any and all actions and do anything and everything it deems necessary
or appropriate in performing its duties hereunder and shall have all rights and powers required or appropriate to its management
of the Company business (and indirectly the business of the Company Subsidiary), including, but not limited to, the following specific
rights and powers. If there is more than one Manager at any time, any action taken by the Managers must be agreed to by each Manager.

 

8.6           Limitations
on Authority of the Manager.

 

(a)          It
is expressly understood that the Manager shall not do or perform any of the following acts on behalf of the Company without first
obtaining the approval of the Members holding more than a Majority of the Membership Interests:

 

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(i)          any
act in contravention of this Agreement;

 

(ii)         any
act that would make it impossible to carry on the ordinary business of the Company, the Company Subsidiary or owner;

 

(iii)        confess
a judgment against the Company;

 

(iv)        possess
Company (or Company Subsidiary) property or assign the rights of the Company (or Company Subsidiary) in specific Company (or Company
Subsidiary) property for other than Company (or Company Subsidiary) purposes;

 

(v)         admit
a Person as a Manager, except as provided in Section 7.2;

 

(vi)        admit
a Person as a Member except as otherwise provided herein;

 

(vii)       continue
the business of the Company in contravention of Section 12.1 hereof; or

 

(viii)      cause
or permit the Company to extend credit to or to make any loans or become surety, guarantor, endorser, or accommodation endorser
for any Entity.

 

(b)          It
is expressly understood that, without first obtaining the approval of a Majority of the Class A Membership Interests, in their
sole and absolute discretion, and subject to the Basic Documents, the Manager shall not undertake or perform any of the actions
set forth in Section 8.6(a) if doing so would cause any dilution of or material adverse economic effect upon the Class A Member's
Membership Interest or its rights under this Agreement or the Company Subsidiary LLC Agreement, nor may the Manager undertake or
perform any of the following acts on behalf of the Company without first obtaining the approval of a Majority of the Class A Membership
Interests, in their sole and absolute discretion, subject to the Basic Documents:

 

(i)          cause
the Company to approve any Major Decision (as defined in Section 7.07 of the Company Subsidiary LLC Agreement, or any successor
section thereto), or any action that would have been a Major Decision but for the operation of the final paragraph of Section 7.07
of the Company Subsidiary LLC Agreement, or any successor section thereto;

 

(ii)         cause
the Company to approve any amendment to the Company Subsidiary LLC Agreement;

 

(iii)        file
or consent to any filing any reorganization, receivership, insolvency, bankruptcy or other similar proceedings as to the Company
or the Company Subsidiary pursuant to any federal or state law affecting debtor and creditor rights;

 

(iv)        to
the fullest extent permitted by law, dissolve or liquidate the Company;

 

    	22

    	 

    

  

(v)         distribute
any cash or property of the Company other than as provided in this Agreement;

 

(vi)        merge
or consolidate with any other Entity;

 

(vii)       amend,
modify or alter this Agreement, except as otherwise provided herein; or

 

(viii)      cause
the Company to consent to any REIT Prohibited Transaction, as defined in the Company Subsidiary LLC Agreement.

 

(c)          Any
action or failure to act by the Manager to comply with the provisions of Sections 8.6(a) or (b), or any other breach of this
Agreement by the Manager or any Class B Member shall constitute a "Default Event."

 

(d)          Notwithstanding
any prov1s1on herein to the contrary, on and after the Conversion Date (if applicable), any decision to be made by the Company
or its Representatives on the Management Committee, or pursuant to Sections 7.07 or 12.6 of the Company Subsidiary LLC Agreement,
shall only require the approval of and be subject to the direction of BRG and not any other Member of the Company; provided, further,
that on and after the Conversion Date (if applicable) only BRG, 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 Company Subsidiary.

 

ARTICLE 9

 

STATUS OF MEMBERS

 

9.1           Liability.
Except as otherwise provided by the Act, a Member shall not be bound by, or be personally liable for, the expenses, liabilities
or obligations of the Company, solely by reason of being a member of the Company.

 

9.2           Business
of the Company. Except as otherwise provided herein, a Member shall take no part in the conduct or control of the business
of the Company and shall have no right or authority to act for or to bind the Company in any manner whatsoever. Whenever this Agreement
provides for the approval or action of the Class B Members, unless specifically stated otherwise, such approval or action shall
be made by the Class B Members owning a Majority of the Class B Membership Interest. Whenever this Agreement provides for the approval
or action of the Class A Members, unless specifically stated otherwise, such approval or action shall be made by the Class A Member
(or if there is more than one Class A Member, the Class A Members owning a Majority of the Class A Membership Interest).

 

9.3           Status
of Member's Interest. Except as otherwise provided in this Agreement, a Member's Membership Interest shall be fully paid and
non-assessable. No Member shall have the right to withdraw or reduce its Capital Contribution to the Company except as a result
of (i) the dissolution and termination of the Company or (ii) as otherwise provided in this Agreement and in accordance with applicable
law.

 

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ARTICLE 10

 

TRANSFER OF MEMBERSHIP INTEREST; CLASS
A CONVERSION RIGHT AND REDEMPTION

 

10.1         Sale,
Assignment, Transfer or Other Disposition of Membership Interest.

 

(a)          Prohibited
Transfers. Except as otherwise provided in this Section 10, or as approved by the Manager, no Member shall have the right to sell,
transfer, assign, pledge or encumber (''Transfer") all or any part of its Membership Interest, whether legal or beneficial,
in the Company, and any attempt to so Transfer such Membership Interest (and such Transfer) shall be null and void and of no effect.
Notwithstanding the foregoing, any Member shall have the right, with the consent of the other Members, at any time to pledge to
a lender or creditor, directly or indirectly, all or any part of its Membership Interest in the Company for such purposes as it
deems necessary in the ordinary cause of its business and operations.

 

(b)          Affiliate
Transfers.

 

(i)          Subject
to the provisions of Section 10.1(b)(ii) 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 Membership 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 Membership Interest. If such Affiliate shall thereafter cease being an Affiliate of such Member while such Affiliate
holds such Membership 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 the Basic Documents.

 

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

 

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

 

		(b)	Any Transfer by SOIF III or a SOIF III Transferee of
up to one hundred percent (100%) of its Membership 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) SOIF II or any Person that is directly or indirectly owned by SOIF
II; (C) BGF or any Person that is directly or indirectly owned by BGF; and/or (D) BGF II or any Person that is directly or indirectly
owned by BGF II (collectively, a "SOIF III Transferee");

 

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		(c)	Any Transfer by BGF or a BGF Transferee of up to one
hundred percent (100%) of its Membership Interest to any Affiliate of BGF, including but not limited to (A) BRG or any Person
that is directly or indirectly owned by BRG; (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 II or any Person that is directly or indirectly
owned by BGF II (collectively, a "BGF Transferee");

 

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

 

provided however, as to subparagraphs (b)(ii)(a),
(b), (c) and (d), and as to subparagraph (b)(i), no Transfer shall be permitted and shall be void ab initio if it shall
violate any "Transfer" provision of the Basic Documents. Upon the execution by any such SOIF II Transferee, SOIF III
Transferee, BGF Transferee or BRG Transferee of such documents necessary to admit such party into the Company and to cause the
SOIF II Transferee, SOIF III Transferee, BGF Transferee or BRG Transferee (as applicable) to become bound by this Agreement, the
SOIF II Transferee, SOIF III Transferee, BGF Transferee or BRG Transferee (as applicable) shall become a Member, without any further
action or authorization by any Member.

 

(c)          Admission
of Transferee: Partial Transfers. Notwithstanding anything in this Section IO to the contrary, no Transfer of Membership Interests
in the Company shall be permitted unless the potential transferee is admitted as a Member under this Section 10.l(c):

 

(i)          If
a Member Transfers all or any portion of its Membership 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

 

(ii)         Notwithstanding
the foregoing, any Transfer or purported Transfer of any Membership 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
Membership Interest, if the Manager determines in its sole discretion that:

 

    	25

    	 

    

  

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

 

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

 

(c)          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;

 

(d)          if
as a result of such Transfer the aggregate value of Membership 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. 2510.3-10 I (f)(2)) with the result that the assets of the Company could be deemed to be "plan
assets" for purposes of ERISA;

 

(e)          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
10.l(c)(ii)(e), 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

 

(f)           the
transferor failed to comply with the provisions of Sections10.1(b)(i) or (ii).

 

The Manager may require the provision of
a certificate as to the legal nature and composition of a proposed transferee of an Membership 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 10.l(c).

 

10.2         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 Membership 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
Article 12. No Member shall be entitled to receive any distribution or otherwise receive the fair market value of its Membership
Interest in compensation for any purported resignation or withdrawal not in accordance with the terms of this Agreement.

 

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10.3         Death,
Incapacity or Dissolution of a Member.

 

(a)          The
death, insanity or incompetency of a Member who is an individual shall not, in and of itself, cause the termination or dissolution
of the Company. Thereafter, the legally authorized personal representative of such Member shall have all the rights of a Member
for the purpose of settling or managing his estate, and shall have such power as such party possessed to make an assignment of
his interest in the Company in accordance with the terms hereof and to join with such assignee in making application to substitute
such assignee as a Member, provided all of the provisions of this Agreement are complied with by the holder of such Member's interest.

 

(b)          The
dissolution or other cessation to exist as a legal entity of any Member that is not an individual shall not, in and of itself,
cause the termination or dissolution of the Company. Thereafter, the authorized representative of such entity, possessed of the
rights of such Member for the purpose of winding up, in any orderly fashion, and disposing of the business of such entity, shall
have such power as such entity possessed to make an assignment of its interest in the Company in accordance with the terms hereof
and to join with such assignee in making application to substitute such assignee as a Member, provided all of the provisions of
this Agreement are complied with by the holder of such Member's interest.

 

10.4         BRG
Class A Conversion Right. During the Conversion Period and for so long as BRG holds Class A Units in the Company, BRG shall
have the right to convert all, but not less than all, of its Class A Units into Class B Units in accordance with this Section 10.4.

 

(a)          During
the Conversion Period, and so long as BRG then holds a Majority of the Class A Membership Interests, BRG may deliver a notice to
the Company (a "Conversion Notice") indicating that BRG is exercising its conversion right under this Section
10.4. From and after the date of the Company's receipt of the Conversion Notice (the "Receipt Date"), Current
Class A Return and Priority Class A Return shall cease to accrue on BRG's Net Capital Contributions to the Company; however, BRG
shall retain all other rights of a Class A Member until the Conversion Date.

 

(b)          Within
ten (10) days of the date of the receipt of the Conversion Notice, the Company shall issue to BRG a number of Class B Units equal
to the Conversion Amount, as determined in accordance with Section 10.4(c) below (the "Conversion Units"), cancel
all of BRG's Class A Units, and return to BRG any remaining funds in the Class A Preferred Reserve. The date of such issuance,
cancellation and return of funds shall be referred to in this Agreement as the "Conversion Date." From and after the
Conversion Date, BRG shall cease to be a Class A Member and, if not previously admitted as a Class B Member, shall be admitted
as a Class B Member with no further action required by the Company, the Manager or the Members. The Manager shall amend Schedule I
as of the Conversion Date to reflect the conversion.

 

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(c)          The
number of Conversion Units to be issued to BRG on the Conversion Date shall equal the number of Class B Units that would cause
the Class B Membership Interest acquired by BRG pursuant to this Section 10.4 to hold a proportional eighteen and one-half percent
(18.5%) Class B Membership Interest and a Capital Account in an amount equal to the same proportion. The foregoing conversion ratio
assumes the Members have fully funded the irrespective initial Capital Contributions, that the Class A Capital Commitment has been
fully funded, that the Project was developed, leased-up and funded as provided in the Project Budget, that Additional Capital Contributions
have been made by the Class B Members as projected, and that all Current Class A Returns and Priority Class A Returns have been
paid. In the event that the Class B Members' Capital Contributions were substantially more than projected, the Members will confer
and in good faith determine a commensurate conversion ratio.

 

10.5         Class
A Mandatory Redemption.

 

(a)          Notwithstanding
the restrictions on Transfer contained in this Article 10, but subject to the Basic Documents, the Company shall redeem all, but
not less than all, of the Class A Units on the Class A Mandatory Redemption Date for payment of the Class A Unit Redemption Amount
in immediately available funds to the Class A Members, unless prohibited by law, and in such event, on the earliest practicable
date such redemption would not be prohibited by law; provided, however, this Section 10.5 shall not be applicable to the extent
the Class A Member has exercised its Conversion Right under Section 10.4 prior to the Class A Mandatory Redemption Date.

 

(b)          Subjection
to Section 10.5(a), on the Class A Mandatory Redemption Date (or earliest practicable date), upon receipt of the Class A Unit Redemption
Amount, the Class A Member shall transfer its Class A Units free and clear of any and all liens, encumbrances or other restrictions
and execute and acknowledge a written instrument of assignment, together with such other instruments as the Manager, in its reasonable
discretion, may deem necessary or desirable to effect the Transfer of the Class A Units, all in form and substance reasonably satisfactory
to the Manager.

 

(c)          Without
limiting the generality of any other provision of this Agreement, following the redemption of the Class A Units, the Class A Members
shall have no rights in the Company.

 

(d)          To
the extent the Company does not redeem the Class A Units on the Class A Mandatory Redemption Date, the Class A Units shall continue
to accrue the Current Class A Return except that the Current Class A Return shall be twenty percent (20%) per annum on and after
the Class A Mandatory Redemption Date until and through the date the Class A Unit Redemption Amount is paid in full.

  

ARTICLE 11

 

CESSATION OF A MEMBER

 

A Member shall cease
to be a Member of the Company upon the assignment of all of the Member's Membership Interest in the Company.

 

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ARTICLE 12

 

DISSOLUTION AND TERMINATION OFTHE
COMPANY

 

12.1         Dissolution
and Termination. The Company shall be dissolved, and its affairs shall be wound up upon the first to occur of the following:
(i) the decision of the Manager, with the written concurrence of the Members owning more than fifty percent (50%) of the Membership
Interests, that it would be in the best interest of the Company to dissolve; (ii) the termination of the legal existence of the
last remaining member of the Company or the occurrence of any other event that terminates the continued membership of the last
remaining member of the Company in the Company unless the Company is continued without dissolution in a manner permitted by this
Agreement or the Act; (iii) the entry of a decree of judicial dissolution under § 6.02 of the Act; or (iv) the filing
by the Secretary of State of a Certificate of Dissolution. Upon the occurrence of any event that causes the last remaining member
of the Company to cease to be a member of the Company or that causes the Member to cease to be a member of the Company (other than
upon continuation of the Company without dissolution upon (i) an assignment by the Member of all of its Membership Interest in
the Company and the admission of the transferee pursuant to Article 10, or (ii) the resignation of the Member and the admission
of an additional member of the Company pursuant to Article I0), to the fullest extent permitted by law, the personal representative
of such member is hereby authorized to, and shall, within ninety (90) days after the occurrence of the event that terminated the
continued membership of such member in the Company, agree in writing (i) to continue the Company and to the admission of the personal
representative or its nominee or designee, as the case may be, as a substitute member of the Company, effective as of the occurrence
of the event that terminated the continued membership of such member in the Company.

 

(a)          Notwithstanding
any other provision of this Agreement, the Bankruptcy of a Member shall not cause such Member to cease to be a member of the Company
and upon the occurrence of such an event, the Company shall continue without dissolution.

 

(b)          In
the event of dissolution, the Company shall conduct only such activities as are necessary to wind up its affairs (including the
sale of the assets of the Company in an orderly manner), and the assets of the Company shall be applied in the manner, and in the
order of priority, set forth in Section 12.2.

(c)          The
Company shall terminate when (i) all of the assets of the Company, after payment of or due provision for all debts, liabilities
and obligations of the Company, shall have been distributed to the Members in the manner provided for in this Agreement and (ii)
the Certificate of Formation shall have been canceled in the manner required by the Act.

 

12.2         Distribution
Upon Dissolution. Upon the dissolution of the Company, the Manager shall take full account of the Company assets and liabilities,
the assets shall be liquidated as promptly as is consistent with obtaining fair value thereof, and the proceeds therefrom, to the
extent sufficient therefor, after payment of or due provision for all debts, liabilities and obligations of the Company as required
by the Act and applicable law, shall be applied and distributed in accordance with Section 6.8 hereof. In the event it becomes
necessary or desirable, in the sole discretion of the Manager, to make a distribution of the Company property in kind, then such
property shall be transferred and conveyed to the Members, or their assigns, so as to vest in each of them as a tenant-in-common,
a percentage interest in the whole of said property equal to the percentage interest he or she would have received had the aforesaid
property not been distributed in kind.

 

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12.3         Time.
A reasonable time, as determined by the Manager, from the date of an event of dissolution, shall be allowed for the orderly liquidation
of the assets of the Company and the discharge of Company liabilities.

 

12.4         Liquidating
Trustee. In the event of a dissolution of the Company, liquidation of the assets of the Company and discharge of its liabilities
may, in the sole discretion of the Manager, be carried out by a liquidation trustee or receiver, who shall be selected by the Manager
and shall be a bank or trust company or other person or firm having experience in managing, liquidating or otherwise handling property
of the type then owned by the Company. This trustee (the "Liquidating Trustee") shall not be personally liable
for the debts of the Company but otherwise shall have such obligations and authorities as are given the Manager pursuant to this
Agreement.

 

12.5         Statement
of Termination. The Members shall be furnished by the Manager with a statement prepared, at Company expense, by the Accountant
that shall set forth the assets and liabilities of the Company as of the date of complete liquidation and distribution as herein
provided. Such statement shall also schedule the receipts and disbursements made with respect to the termination hereunder.

 

ARTICLE 13

 

ACCOUNTING AND REPORTS

 

13.1         Books
and Records.

 

(a)          The
Manager shall maintain full and accurate books of the Company, showing all receipts and expenditures, assets and liabilities, profits
and losses, and all other records necessary for recording the Company's business and affairs, including those sufficient to record
the allocations and distributions provided for in Article 6 and Section 12.2 hereof. Such books and records shall be open for the
inspection and examination by any Member, in person or by its duly authorized representative, at reasonable times at the offices
of the Company upon prior written notice.

 

(b)          The
Company books and records shall be kept in accordance with Generally Accepted Accounting Principles and any change in method shall
be made by the Manager in its sole discretion.

 

13.2         Fiscal
Year. The annual accounting period of the Company shall be the calendar year. The cutoff date of the accounting period shall
be the last day of the calendar month.

 

13.3         Reports.
The Company shall create an internally prepared annual statement showing the revenue and expenses of the Company, the balance sheet
thereof and a statement of change in cash flow at the end of each Fiscal Year (the "Annual Financial Statements").
The Annual Financial Statements shall be mailed to each Member within fifteen (15) days following the end of the Fiscal Year for
which such statements were prepared. Each Member's Schedule K-1 will be mailed to the Member no later than thirty (30) days after
the end of each Fiscal Year of the Company. The Company shall transmit all reports received under Section 11.03(b) of the Company
Subsidiary LLC Agreement to the Class A Members immediately upon the Company's receipt of such reports.

 

    	30

    	 

    

  

13.4         Bank
Accounts. All funds of the Company shall be deposited in its name in such checking and savings accounts or time certificates
as shall be designated by the Manager. Withdrawals therefrom shall be made upon such signature(s) as the Manager may designate.

 

13.5         Tax
Returns. In addition to the Alll1ual Financial Statements, the Manager shall, at Company expense, cause all tax returns for
the Company to be timely prepared and filed with the appropriate authorities.

 

13.6         Tax
Matters. SOIF III is hereby charged with the responsibility for all tax-related matters affecting the Company and is hereby
designated as the "Tax Matters Representative". It shall, within ten (10) days of receipt thereof, forward to
each Member a photocopy of any relevant correspondence relating to the Company received from any Federal and/or State taxing authority
(the "Taxing Authority"). It shall, within five (5) days thereof, advise each Member in writing of the substance
of any material conversation held with any representative of a Taxing Authority. Any reasonable costs incurred by the Tax Matters
Representative for retaining accountants and/or attorneys on behalf of the Company in connection with any Taxing Authority audit
of the Company shall be expenses of the Company. The Tax Matters Representative shall, if applicable, comply with all requirements
concerning the registration of tax shelters pursuant to Section 6111 of the IRC and the Treasury Regulations thereunder, and Form
8264 (or any successor thereto), including, but not limited to, registering the Company with the Taxing Authority and furnishing
to each Member any identification numbers assigned by any Taxing Authority to the Company. .

 

ARTICLE 14

 

SPECIAL LIMITED POWER OF ATTORNEY

 

14.1         Grant
of Power.

 

(a)          Each
Member does hereby irrevocably constitute and appoint the Manager as its true and lawful attorney, in its name, place and stead,
to make, execute, sign, acknowledge, swear to (where appropriate), and file or record:

 

(i)          any
articles, certificates, documents or instruments (including this Agreement) that may be required to be filed by the Company under
applicable laws of any jurisdiction(s) to the extent that the Manager deems such filing(s) to be necessary or required;

 

(ii)         any
and all amendments or modifications of the instruments described in subparagraph (a)(i) above; provided, that such amendments or
modifications are necessary to effect the terms and intent of this Agreement, including, for example, but not limited to, the substitution
of a Member, and to evidence or effect the consent, approval or acceptance of the Member to any action approved by the Member where
this Agreement provides that such consent, approval or acceptance by the Member binds the Member with regard thereto;

 

    	31

    	 

    

  

(iii)        all
certificates and other instruments that may be required to effect the dissolution and termination of the Company pursuant to the
terms of this Agreement; and

 

(iv)        any
and all consents or other instruments deemed necessary or desirable by the Manager for the admission of the Member and Substitute
Members, pursuant to the terms of this Agreement;

 

(b)          It
is expressly understood and intended by the Members that the grant of the foregoing powers of attorney are coupled with an interest
and are irrevocable.

 

(c)          The
foregoing powers of attorney are durable powers of attorney and shall not be affected by the disability, incompetency, and/or incapacity
of the principal. Furthermore, the foregoing powers of attorney shall survive the death of any Member who shall die during the
term of the Company.

 

(d)          The
foregoing powers of attorney may be exercised by the Manager acting for any Member individually.

 

14.2         Limitation
on Powers. To the fullest extent permitted by law, the foregoing power of attorney shall in no way cause a Member to be liable
in any manner for the acts or omissions of the Manager.

 

14.3         Substitute
Members. Each Substitute Member, upon admission to the Company, shall be deemed to have appointed, ratified and reaffirmed
the appointment of the Manager as its true and lawful attorney for the purposes and on the same terms as set forth in Article 14
hereof.

 

ARTICLE 15

 

AMENDMENTS

 

(a)          Except
as otherwise provided herein, this Agreement may only be amended by the unanimous written consent of all Members.

 

(b)          This
Agreement shall be amended by the Manager without the consent of the Members whenever:

 

(i)          to
reflect the transfer of Units, the admission of a Member, the change in any Unit, the change in the Membership Interests, or any
other alteration in the matters set forth on Schedule I; and

 

(ii)         it
is necessary or appropriate, in the opinion of counsel to Company, to satisfy the requirements of the IRC, Treasury Regulations
thereunder or administrative guidelines or interpretations relating thereto, to maintain the status of partnership taxation or
to satisfy the requirements of federal and/or state securities laws.

 

(c)          Notwithstanding
anything herein to the contrary, no amendment shall be made in this Agreement that, in the opinion of counsel for the Company:

 

    	32

    	 

    

  

(i)          is
in violation of the provisions of applicable law; or

 

(ii)         would
result in the Company being treated as other than a partnership for federal income tax purposes.

 

ARTICLE 16

 

INVESTMENT REPRESENTATION

 

Each of the Members,
by executing this Agreement, represents and warrants to the Company and the Manager as follows:

 

(a)          Each
Member or individual executing this Agreement on behalf of an Entity that is a Member hereby represents and warrants that such
Member has acquired such Member's Membership Interest in the Company for investment solely for such Member's own account with the
intention of holding such Membership Interest for investment, without any intention of participating directly or indirectly in
any distribution of any portion of such Membership Interest, including an economic interest, and without the financial participation
of any other Person in acquiring such Membership Interest in the Company.

 

(b)          Each
Member hereby acknowledges that such Member is aware that such Member's Membership Interest in the Company has not been registered
(i) under the Securities Act of 1933, as amended (the "Securities Act"), (ii) under applicable Delaware securities laws
or under any other state securities laws. Each Member further understands and acknowledges that his representations and warranties
contained in this Section are being relied upon by the Company as the basis for the exemption of the Members' Membership Interests
in the Company from the registration requirements of the Securities Act and from the registration requirements of applicable state
securities laws. Each Member further acknowledges that the Company will not and has no obligation to recognize any sale, transfer,
or assignment of all or any part of such Member's Membership Interest, including an economic interest in the Company to any Person
unless and until the provisions of this Agreement hereof have been fully satisfied.

 

(c)          Each
Member hereby acknowledges that prior to its execution of this Agreement, such Member received a copy of this Agreement and that
such Member has examined this Agreement or caused this Agreement to be examined by such Member's representative or attorney. Each
Member hereby further acknowledges that such Member or such Member's representative or attorney is familiar with this Agreement
and with the Company's business plans. Each Member acknowledges that such Member or such Member's representative or attorney has
made such inquiries and requested, received, and reviewed any additional documents necessary for such Member to make an informed
investment decision and that such Member does not desire any further information or data relating to the Company. Each Member hereby
acknowledges that such Member understands that the purchase of such Member's Membership Interest in the Company is a speculative
investment involving a high degree of risk and hereby represents that such Member has a net worth sufficient to bear the economic
risk of such Member's investment in the Company and to justify such Member's investing in a highly speculative venture of this
type.

 

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ARTICLE 17

 

MISCELLANEOUS

 

17.1         Meetings.
Meetings of the Company may be called by the Manager and shall be called by the Manager upon the written request of the Members
holding at least twenty-five (25%) percent of the Membership Interests of the Company.

 

17.2         Members'
Action by Consent in Lieu of Meeting. Any action required by law to be taken at any annual or special meeting of Members, or
any action which may be taken at a meeting of the Members, may be taken without a meeting, without prior notice and without a vote,
if a consent in writing, setting forth the action so taken is signed by the Members having not less than the Membership Interests
that would be necessary to authorize such action at a meeting at which all Members entitled to vote thereon were present and voted.
Such consents shall have the same force and effect as the unanimous consent of the Members at a meeting duly held. Such consents
shall be filed with the minutes of the meetings of the Members.

 

17.3         Other
Ventures. Notwithstanding any duty otherwise existing at law or in equity, except as otherwise provided in this Agreement to
the contrary, any of the Members, the Manager, BRG's direct and indirect parents, SOIF II's members, SOIF Ill's member, BGF's members
or any of their Affiliates may engage in or possess an interest in other profit-seeking or business ventures of every nature and
description, independently or with others, including those that may compete with the Company without any obligation to share any
profits therefrom with the Company or the Members. The doctrine of corporate opportunity or any analogous doctrine, shall not apply
to any Member, Manager, member of a Member or Manager, direct or indirect parent of BRG, member of SOIF II, SOIF III or BGF, or
any of their Affiliates. No Member, Manager, member of a Member or Manager, direct or indirect parent of BRG, member of SOIF II,
SOIF III or BGF, or any of their Affiliates who acquires knowledge of a potential transaction, agreement, arrangement or other
matter that may be an opportunity for the Company shall have any duty to communicate or offer such opportunity to the Company,
and such Member, Manager, member of a Member or Manager, direct or indirect parent of BRG, member of SOIF II, SOIF III or BGF,
or Affiliate shall not be liable to the Company or to the other Members for breach of any fiduciary or other duty by reason of
the fact that such Member, Manager, member of a Member or Manager, direct or indirect parent of BRG, member of SOIF II, SOIF III
or BGF, or Affiliate pursues or acquires for, or directs such opportunity to, another Person or does not communicate such opportunity
or information to the Company. Neither the Company nor any Member shall have any rights or obligations by virtue of this Agreement
or the relationship created hereby in or to such independent ventures or the income or profits or losses derived therefrom, and
the pursuit of such ventures, even if competitive with the activities of the Company, shall not be deemed wrongful or improper.

 

Nothing in this Agreement
shall be deemed to preclude any Member, Manager, member of a Member or Manager, direct or indirect parent of BRG, member of SOIF
II, SOIF III or BGF, or any Affiliate of any Member, Manager, member of a Member or Manager, direct or indirect parent of BRG,
or member of SOIF II, SOIF III or BGF, from conducting its business in any manner it may elect, including, without limitation,
entering into any transaction with any Person affiliated in any way with such Person, provided that no such conduct of its business
shall result in a breach by such Member or Manager of its obligations under this Agreement.

 

    	34

    	 

    

  

17.4         Exculpation
and Indemnification.

 

(a)          To
the fullest extent permitted by applicable law, neither the Members, the Manager, SOIF II, SOIF III, BGF, BRG, direct or indirect
parent of BRG, the members of SOIF II, SOIF III or BGF, nor any officer, manager, director, employee, agent or Affiliate of the
foregoing (collectively, the "Covered Persons") shall be liable to the Company or any other Person who is bound
by this Agreement for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Covered
Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred
on such Covered Person by this Agreement, except that a Covered Person shall be liable for any such loss, damage or claim incurred
by reason of such Covered Person's gross negligence or willful misconduct.

 

(b)          To
the fullest extent permitted by applicable law, a Covered Person shall be entitled to indemnification from the Company for any
loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person
in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on
such Covered Person by this Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any loss,
damage or claim incurred by such Covered Person by reason of such Covered Person's gross negligence or willful misconduct with
respect to such acts or omissions; provided, however, that any indemnity under this Section by the Company shall be provided out
of and to the extent of Company assets only, and the Members and the Manager shall not have personal liability on account thereof;
and provided, further, that so long as any Obligation is outstanding, no indemnity payment from funds of the Company {as distinct
from funds from other sources, such as insurance) of any indemnity under this Section shall be payable from amounts allocable to
any other Person pursuant to the Basic Documents.

 

(c)          To
the fullest extent permitted by applicable law, expenses (including reasonable legal fees) incurred by a Covered Person defending
any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition
of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered
Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized in
this Section.

 

(d)          A
Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions,
reports or statements presented to the Company by any Person as to matters the Covered Person reasonably believes are within such
other Person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company,
including information, opinions, reports or statements as to the value and amount of the assets, liabilities, or any other facts
pertinent to the existence and amount of assets from which distributions to the Members might properly be paid.

 

    	35

    	 

    

  

(e)           To
the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto
to the Company or any other Member, any Covered Person acting under this Agreement or otherwise shall not be liable to the Company
or any Member for its good faith reliance on the provisions of this Agreement. The provisions of this Agreement, to the extent
that they restrict or eliminate the duties and liabilities of a Covered Person to the Company or its members otherwise existing
at law or in equity, are agreed by the parties hereto to replace such other duties and liabilities of such Covered Person.

 

(f)           Any
liability of the Company shall be satisfied out of the income or assets of the Company (including the proceeds of any insurance
that the Company may recover) and no Member shall have any liability with respect thereto.

 

(g)          Notwithstanding
the foregoing provisions, any indemnification set forth herein shall be fully subordinate to the Loan, and to the fullest extent
permitted by law, shall not constitute a claim against the Company in the event that the Company's Cash Flow From Operations (including
any additional capital contributions by the Members, if any) are insufficient to pay all of its monthly obligations to creditors.

 

(h)          The
foregoing provisions of this Section shall survive any termination of this Agreement.

 

17.5        Notices.
All notices under this Agreement shall be in writing, duly signed by the party giving such notice, and transmitted by registered
or certified mail (and such notice shall be deemed delivered three (3) business days after deposit in the mail) or by a national
overnight delivery service, such as Federal Express (and such notice will be deemed delivered the next business day after it is
deposited with such delivery service) addressed as follows:

 

(a)           If
given to the Company:

 

BR T&C BLVD JV Member, LLC

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

712 Fifth Avenue, 9th Floor

New York, NY 10019

 

(b)           If
given to the Manager :

 

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

712 Fifth Avenue, 9th Floor

New York, NY 10019

 

(c)           If
given to any Member, at the address set forth on Schedule I, or at such other address as any Member may hereafter designate
by notice to the Company and all other Members.

 

Any party to this Agreement
may change the address to which notices are to be sent in accordance with this Section by notifying the other parties hereto in
writing of such new address.

 

    	36

    	 

    

  

17.6         Captions.
Article and Section titles or captions contained in this Agreement are inserted only as a matter of convenience and for reference
and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof.

 

17.7         Identification.
Whenever the singular number is used in the Agreement and when required by the context, the same shall include the plural, and
vice versa; and the masculine gender shall include the feminine and neuter genders, and vice versa. The words "include"
and "including" shall be deemed to be followed by the phrase "without limitation."The terms "herein,"
"hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any
particular Section, paragraph or subdivision.

 

17.8         Counterparts.
This Agreement may be executed in any number of counterparts and all of such counterparts shall be deemed an original and for all
purposes constitute one agreement binding on the parties hereto, notwithstanding that all parties are not signatory to the same
counterpart.

 

17.9         Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard
to principles of conflict of laws.

 

17.10       Members'
Competence. Anything in this Agreement to the contrary notwithstanding, no Member, or any Assignee of the Membership Interest
thereof, shall be a person or organization prohibited by law from becoming such. Any assignment of an interest in the Company to
any Person not meeting such standard shall be, to the fullest extent permitted by law, void and ineffectual and shall not bind
the Company.

 

17.11       Binding
Agreement. Except as otherwise provided herein to the contrary, this Agreement shall be binding upon and inure to the benefit
of the parties hereto, their personal representatives, successors and assigns, and shall be enforceable in accordance with its
terms.

 

17.12       Severability.
If any provision of this Agreement shall be declared invalid or unenforceable, the remainder of this Agreement will continue in
full force and effect so far as the intent of the parties can be carried out, and the parties further understand and agree that
any non-waivable provision of the Act shall supersede any provision of the Agreement.

 

17.13       Entire
Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof.

 

17.14       Benefits
of Agreement; No Third-Party Rights. Except for the Lender with respect to the Special Purpose Provisions, (i) none of the
provisions of this Agreement shall be for the benefit of or enforceable by any creditor of the Company or by any creditor of the
Members and (ii) nothing in this Agreement shall be deemed to create any right in any Person (other than Covered Persons) not a
party hereto, and this Agreement shall not be construed in any respect to be a contract in whole or in part for the benefit of
any third Person (other than Covered Persons).

 

    	37

    	 

    

  

17.15       Member's
Rights. In addition to all other rights and remedies that a Member may have at law and in equity, including, but not limited
to, under the Act, a Member may bring any action against the Manager, another Member and/or the Company to enforce the terms and
provisions of this Agreement, to obtain a judgment for damages for a breach of this Agreement, and/or to cause the Manager and/or
a Member to perform its obligations under this Agreement.

 

17.16       Jurisdiction
and Venue. Regardless of what venue would otherwise be permissive or required, the Members and Managers stipulate that all
actions arising under or affecting this Agreement shall be brought in the appropriate city and/or county courts in the City of
New York, State of New York (the "State Courts") or the United States District Court for the Southern District
of New York in the State of New York (the "Federal Court"), the Members and Managers agreeing that such forums
are mutually convenient and bear a reasonable relationship to this Agreement.

 

17.17       Consent
to Jurisdiction and Service of Process. The parties irrevocably submit to the jurisdiction of the State Courts and the Federal
Court for the purpose of any suit, action, or other proceeding arising under or affecting this Agreement. In addition to all other
proper forms of service of process, the Members and Managers hereby agree that service of process may be accomplished by providing
such service in accordance with the notice provisions of Section 17.5.

 

17.18       Attorneys'
Fees. In any action or suit arising out of this Agreement, the prevailing party, as determined by the trier of fact, shall
be entitled to recover from the other party its reasonable attorneys' fees and costs incurred in such action or suit. Reasonable
attorneys' fees shall be based upon such fees actually incurred at the customary hourly rates of attorneys in the New York, New
York area for the expertise required and shall not be based upon any statutory presumptions or rates.

 

 

17.19       Waiver
of Right to Jury Trial. The Manager and Members do each hereby waive to the fullest extent of the law their right to a jury
trial in regard to any matter, issue, dispute or other claim which arises out of this Agreement or the transactions contemplated
by this Agreement. The Manager and each Member represent to one another that each has sought the advice of legal counsel in waiving
its right to a jury trial and makes such waiver willingly and freely.

 

(SIGNATURES APPEAR ON THE IMMEDIATELY
FOLLOWING PAGES]

 

    	38

    	 

    

 

COMPANY AND MANAGER SIGNATURES

 

The Company and the
Manager, agreeing to be bound by the foregoing, execute this Agreement as of the 1st day of July, 2014.

 

	 	COMPANY:
	 	 
	 	BR T&C BLVD JV Member, LLC
	 	 
	 	By:  Bluerock Special Opportunity + Income
    Fund II, LLC,
	 	its Manager
	 	 
	 	By: 	/s/ Jordan Ruddy	 
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory
	 	 
	 	By: Bluerock  Special Opportunity + Income
    Fund III,
	 	LLC, its Manager
	 	 
	 	By: 	/s/ Jordan Ruddy	 
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory
	 	 
	 	By: Bluerock  Growth Fund, LLC, its Manager
	 	 
	 	By: 	/s/ Jordan Ruddy	 
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory
	 	 
	 	MANAGERS:
	 	 
	 	Bluerock Special Opportunity + Income Fund II, LLC,
    its Manager
	 	 
	 	By:	/s/ Jordan Ruddy	 
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory

 

    	39

    	 

    

  

	 	Bluerock Special Opportunity + Income Fund III, LLC, its Manager
	 	 
	 	By: 	/s/ Jordan Ruddy	 
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory
	 	 
	 	Bluerock Growth Fund, LLC, its Manager
	 	 
	 	By: 	/s/ Jordan Ruddy	 
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory

 

    	40

    	 

    

  

MEMBER SIGNATURE

 

The undersigned Member,
agreeing to be bound by the foregoing executes this Agreement as of the 1st day of July, 2014.

 

	 	CLASS A MEMBER:
	 	 
	 	Bluerock Residential Growth REIT, Inc., a Maryland
	 	corporation
	 	 
	 	By:	/s/ Michael
Konig	 
	 	Name: Michael Konig
	 	Title: Authorized Signatory
	 	 
	 	CLASS B MEMBERS:
	 	 
	 	Bluerock Special Opportunity + Income Fund II, LLC, its Manager
	 	 
	 	By: 	/s/ Jordan Ruddy	 
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory
	 	 
	 	Bluerock Special Opportunity + Income Fund III, LLC, its Manager
	 	 
	 	By: 	/s/ Jordan Ruddy	 
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory
	 	 
	 	Bluerock Growth Fund, LLC, its Manager
	 	 
	 	By: 	/s/ Jordan Ruddy	 
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory

 

    	41

    	 

    

  

SCHEDULE I

 

Class A Member: BR T&C BLVD Houston, LLC

 

Class A Capital Commitment: $6,564,557.00
(inclusive of $1,378,557 for projected Class A Preferred Reserve)

 

Class A Initial Capital Contribution: $$4,382,973.95
(inclusive of $459,519 funded into the Class A Preferred Reserve)

 

Class B Members

 

	Member	 	Class B
 Membership	 	 	Initial Capital
 Contribution	 
	 	 	Interest	 	 	(cash)	 
	Bluerock Special Opportunity + Income Fund II, LLC	 	 	36.62	%	 	$	5,302,502.61	 
	Bluerock Special Opportunity + Income Fund III, LLC	 	 	25.45	%	 	$	3,684,875.90	 
	Bluerock Growth Fund, LLC	 	 	37.93	%	 	$	5,439,507.64	 
	Total	 	 	100.00	%	 	$	14,480,886.15	 

 

    	42

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