Document:

Exhibit 10.5

 

CONTRIBUTION AGREEMENT

 

THIS CONTRIBUTION AGREEMENT
(this “Agreement”) is made and entered into as of this 30th day of October, 2015, by and between
TRIBRIDGE CO-INVEST 29, LLC, a Georgia limited liability company (“Seller”) and BR-TBR LAKE BOONE
NC VENTURE, LLC, a Delaware limited
liability company (“Buyer”), and is joined in as to certain matters by TBR LAKE BOONE OWNER, LLC, A GEORGIA
LIMITED LIABILITY COMPANY, AS TRUSTEE UNDER THE TBR LAKE BOONE TRUST AGREEMENT DATED DECEMBER 20, 2012 (“Current Owner”).

 

WITNESSETH THAT:

 

WHEREAS, Current Owner
owns that certain real property described on Exhibit “A” attached hereto (the “Original Parcel”);

 

WHEREAS, TriBridge,
an affiliate of Current Owner and Seller, has applied to the City of Raleigh, North Carolina (the “City”) for
preliminary subdivision approval of the Original Parcel into legally permissible lots (the "Original Parcel Subdivision")
as depicted on the preliminary subdivision plat (the “Preliminary Plat”) set forth on Exhibit “B-1”
attached hereto, with the lots identified as Lot 5 and Lot 6 on such Preliminary Plat and as described by metes and bounds on Exhibit
“B-2” attached hereto being hereinafter collectively referred to as the "Land." The lots identified
as Lots 1 through 4 and Lots 7 through 12 in Exhibit "B-1" shall hereinafter collectively be referred to
as “Current Owner’s Retained Land.” For the avoidance of doubt, Current Owner’s Retained Land shall
be retained by Current Owner and is not included in the contribution as set forth herein;

 

WHEREAS, in connection
with the Original Parcel Subdivision, the City has granted approval (with conditions) to TriBridge’s subdivision plan (and
the Preliminary Plat) in accordance with that certain Official Notice of Preliminary Subdivision Plan Decision, dated May 18, 2015,
a copy of which is attached hereto as Exhibit "B-3" and by this reference made a part hereof ("Preliminary
Subdivision Approval");

 

WHEREAS, pursuant to
the Operating Agreement of Seller dated effective as of the Disbursement Closing Date (as defined below) (the “Seller
Operating Agreement”), on the Disbursement Closing Date, Current Owner’s beneficial owners shall contribute their
interests in the Property to Seller and shall cause the Property to be conveyed to Seller, on and subject to the terms and conditions
set forth therein; and

 

WHEREAS, upon the contribution
of the Property to Seller, Seller wishes in turn to immediately contribute all of its interest in the Property to Buyer and convey
the Property to BR-TBR Owner (as defined below), but only upon the terms and conditions hereinafter set forth. Notwithstanding
the use of the defined terms “Seller” and “Buyer,” the parties acknowledge and agree that the transaction
that is the subject of this Agreement is a contribution of property, rather than a purchase and sale.

 

     

     

    

 

NOW, THEREFORE, in
consideration of Ten Dollars ($10.00), the Earnest Money, the mutual covenants and agreements contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally
bound, do hereby agree as follows:

 

Section 1.  Definitions and
Exhibits.

 

1.1          Definitions.
For purposes of this Agreement, each of the following terms, when used herein with an initial capital letter, shall have the meaning
ascribed to it as follows:

 

Affiliate. Affiliate
means (i) in the case of an individual, any relative (by blood, adoption or marriage) of such Person; (ii) any Person, directly
or indirectly controlling, controlled by or under common control with the specified Person; (iii) any Person owning or controlling
ten percent (10%) or more of the membership interests or outstanding voting securities of such specified Person; (iv) any employee,
partner, officer, director, member or trustee of such specified Person; and (v) if any Person who is an Affiliate is an employee,
partner, officer, director, member or trustee of another Person, such other Person. For purposes of this definition, the term “controlling,”
“controlled by,” or “under common control with” shall mean the possession, direct or indirect on an exclusive
or non-exclusive basis, of the power to direct or cause the direction of the management and policies of a person or entity, whether
through the ownership of voting securities, by contract, or otherwise, subject to customary voting rights of majority interest
holders.

 

Agreement. This
Contribution Agreement.

 

Anti-Terrorism Law
means U.S. Executive Order 13224, as amended; the International Emergency Economic Powers Act, 50 U.S.C. Sections 1701-06 et
seq.; the Iraqi Sanctions Act, Pub.L. 101-513, 104 Stat. 2047-55; the United Nations Participation Act, 22 U.S.C. Section 287c;
the Antiterrorism and Effective Death Penalty Act Pub. L. 104-132, 110 Stat. 1214; the International Security and Development Cooperation
Act, 22 U.S.C. Section 2349 aa-9; the Terrorism Sanctions Regulations, 31 C.F.R. Part 595; the Terrorism List Governments Sanctions
Regulations, 31 C.F.R. Part 596; and the Foreign Terrorist Organizations Sanctions Regulations, 31 C.F.R. Part 597.

 

Bluerock Member
means BR Lake Boone JV Member, LLC, a Delaware limited liability company.

 

BR-TBR Owner means
BR-TBR Lake Boone NC Owner, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Buyer.

 

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Business Days.
Business Days are weekdays excluding Federal or State of North Carolina or State of New York official holidays.

 

Closing. The
closing and consummation of the contribution of the Property pursuant hereto, which shall occur at the Disbursement Closing. Unless
otherwise expressly referenced herein to the contrary, the term “Closing” shall mean the Disbursement Closing and not
the Dry Closing.

 

Closing Date.
The date on which the Dry Closing or the Disbursement Closing, as applicable, shall occur. Unless otherwise expressly referenced
herein to the contrary, the term “Closing Date” shall mean the date of the Disbursement Closing and not the date of
the Dry Closing.

 

Closing Documents.
Those documents listed in Section 8.3 hereof.

 

Contract Date.
The date upon which this Agreement shall be deemed effective, which shall be the date first above written.

 

Cost-Share Agreement
shall mean that certain Agreement Regarding Purchase and Sale Contract & Acquisition Loan Fees and Deposits, by and between
TriBridge and Bluerock Real Estate, L.L.C., a Delaware limited liability company (“Bluerock”).

 

Cost-Share Agreement
Amendment shall mean that certain First Amendment to Agreement Regarding Purchase and Sale Contract & Acquisition Loan
Fees and Deposits, by and among Seller, TriBridge, Bluerock, and Bluerock Member, and joined in by Current Owner to evidence Current
Owner’s obligation to honor the Right of First Refusal granted thereunder.

 

Current Owner’s
Retained Land ROFR shall mean that certain Right of First Refusal Agreement for Current Owner’s Retained Land to be executed
and delivered by Current Owner and TriBridge, in favor of Bluerock.

 

Deed. The Special
Warranty Deed to be executed by Seller in the form attached hereto as Exhibit “E”.

 

Developer. TriBridge
Residential Development, LLC, a Georgia limited liability company.

 

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Development/Entity
Conditions means collectively the following items:

 

		(i)	Buyer, through BR-TBR Owner, shall have finally negotiated
a Development Agreement with Developer and both BR-TBR Owner and Developer shall have executed and delivered same;

 

		(ii)	Buyer, through BR-TBR Owner, shall have finally negotiated
a Property Management Agreement with Property Manager, and both BR-TBR Owner and Property Manager shall have executed and delivered
same;

 

		(iii)	Buyer, through BR-TBR Owner, shall have approved a Guaranteed
Maximum Price general contract ("GMAX") for construction of the proposed new improvements on the Land (the “Proposed
Development”) on terms and conditions reasonably acceptable to Buyer and BR-TBR Owner; provided, however, that the following
shall constitute reasonably acceptable terms to Buyer and BR-TBR Owner: (i) the general contractor shall be Cambridge Swinerton
Builders, Inc., and (ii) the guaranteed maximum price in the GMAX shall not exceed $25,689,691.00 (all other aspects of the GMAX
are subject to the approval of Buyer and BR-TBR Owner in their reasonable discretion); and

 

		(iv)	Seller and Bluerock Member shall have finally negotiated,
executed and delivered a joint venture operating agreement for Buyer (the “Venture Agreement”).

 

		(v)	The Cost-Share Agreement Amendment shall have been finally
negotiated, executed and delivered by all necessary parties thereto.

 

		(vi)	The Current Owner’s Retained Land ROFR shall have
been finally negotiated, executed and delivered by all necessary parties thereto; and

 

		(vii)	Intentionally Omitted.

 

Disbursement Closing Outside
Date shall mean December 31, 2015.

 

Disclosures. The
disclosures described in Section 7 hereof.

 

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Earnest Money.
The amounts deposited by Bluerock Member in escrow with Escrow Agent as earnest money pursuant to the terms and conditions of Section
3 hereof, together with any interest earned thereon (which shall follow principal) and also together with any additional amounts
required to be deposited as additional earnest money pursuant to the terms hereof.

 

Environmental Laws.
The following, as the same may have been amended: the Comprehensive Environmental Response, Compensation and Liability Act of 1980,
42 U.S.C. § 9601, et seq.; the Resource Conservation Act of 1976, 42 U.S.C. § 6921, et seq.;
the Toxic Substance Control Act, 15 U.S.C. § 2601, et seq.; the Federal Insecticide, Fungicide and Rodenticide
Act, 7 U.S.C. § 136; the Federal Water Pollution Control Act, 33 U.S.C. § 1251, et seq.; the Hazardous
Materials Transportation Act, 49 U.S.C. § 1801, et seq.; the Federal Solid Waste Disposal Act. 42 U.S.C. §
6901, et seq.; the Clean Air Act, 42 U.S.C. § 7401, et seq.; and any other legislation or ordinance
of any Governmental Authority identified by its terms as pertaining to Hazardous Substances.

 

Escrow Agent.
Calloway Title & Escrow, L.L.C. acting pursuant to the terms and conditions of the Escrow Agreement and Section 3 hereof.

 

Escrow Agreement.
That certain Earnest Money and Document Escrow Agreement of even date herewith among Seller, Buyer, Bluerock Member, Current Owner
and Escrow Agent referred to in Section 3 hereof and attached hereto as Exhibit “C” and by this reference
made a part hereof.

 

Governmental Authority.
Governmental Authority means any federal, state, or municipal government, branch, authority, district, agency, court, tribunal,
department, officer, official, board, commission or other instrumentality.

 

Hazardous Substances.
Petroleum, including crude oil or any fraction thereof, asbestos, polychlorinated biphenyls, and any other substance the generation,
use, storage, or disposal of which is regulated by the Environmental Laws.

 

Inspection Period.
As defined in Section 6.3 hereof.

 

Intangibles
means all right, title, interest and estate of Seller in, to and under (a) all transferable Warranties, permits, licenses,
certificates of occupancy, approvals, utility rights, development rights and similar rights related to the Land, if any, whether
granted by governmental authorities or private persons; (b) other non-confidential and non-proprietary records assigned to Seller
by Current Owner and used in connection with the ownership of the Land; and (c) the non-exclusive right to use the name “Lake
Boone Trail” and derivatives thereof (for avoidance of doubt, Current Owner shall retain the right to also use the name "Lake
Boone Trail" and derivatives thereof). Intangibles shall not include the current internet address – www.thevillageslbt.com
- or website used in connection with the Original Parcel or any real or personal property used with respect to the ownership or
operation of Current Owner’s Retained Land.

 

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Land. All those
tracts or parcels of land described and depicted as Lots 5 and 6 on the Preliminary Plan attached as Exhibit “B-1”
hereto and further described on Exhibit “B-2” hereto.

 

Permitted Title
Exceptions. (i) Real estate taxes and governmental assessments, both general and special, not yet due and payable; (ii) applicable
zoning and building ordinances, subject to the terms of this Agreement; and (iii) matters shown on the title commitment obtained
by Buyer, other than Required Cure Items, which are not timely objected to by Buyer (or which are subject to objections by Buyer,
but such objections have either been cured by or on behalf of Seller, or Buyer has elected to close over notwithstanding Seller’s
refusal or inability to cure, or to cause Current Owner to cure, such objections pursuant to the process described in Section 5
of this Agreement).

 

Person.
An individual, corporation, partnership, association, limited liability company, joint stock company, trust or unincorporated organization.

 

Personalty means
all furniture, appliances, fixtures, equipment, machinery, building materials, supplies, inventory and other tangible personal
property owned by Seller, used in connection with the ownership, maintenance, use, leasing, service or operation of the Land or
Improvements, and located on the Land or to be located on the Land on the Closing Date, but specifically excluding (i) any
personal property owned, financed or leased by Current Owner associated with the use or ownership of Current Owner’s Retained
Land, or (ii) any tangible personal property owned by Property Manager.

 

Phase I Permit Entity
means LBT Apartment Phase I Owner, LLC, a North Carolina limited liability company.

 

Plans means all
site plans, surveys, as built plans and specifications, floor plans and soil and substrata studies in Current Owner’s or
Seller’s possession or control or in the possession or control of the Property Manager and which relate to the Property.

 

Property. All
of Seller’s right, title and interest in, to and under the following property:

 

		(i)	The Land; and

 

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		(ii)	All rights of way or use, licenses, tenements, hereditaments,
appurtenances and easements now or hereafter belonging or pertaining to any of the foregoing, except those, if any, reserved to
Current Owner or relating to and solely for the use of Current Owner’s Retained Land; and

 

		(iii)	All buildings and other improvements (collectively, “Improvements”)
located on the Land; and

 

		(iv)	the Personalty; and

 

		(v)	the Related Assets.

 

Property Management
Agreement means the Property Management Agreement between the Property Manager and BR-TBR Owner.

 

Property Manager
means TriBridge Residential Property Management Advisors, LLC, a Georgia limited liability company.

 

Recording Office
means the Register of Deeds Office for Wake County, North Carolina.

 

Related Assets
means all right, title, interest and estate of Seller in, to and under all Intangibles and all Plans.

 

Right of First Refusal
shall have the meaning ascribed to such term in Section 7(c) of the Cost-Share Agreement Amendment.

 

Subdivision. The
subdivision of the Original Parcel into separate lots in accordance with the Preliminary Subdivision Approval and the Preliminary
Plat.

 

Subdivision Plat.
The plat identifying the Subdivision which is to be recorded in the Recording Office in accordance with the Subdivision.

 

Title Insurer.
Calloway Title & Escrow, LLC.

 

TriBridge. TriBridge
Residential, LLC, a Georgia limited liability company.

 

Warranties means
the written warranties and guaranties in the possession or control of Seller or Property Manager covering all or a part of the
Property and the Improvements, and manufacturers’ warranties relating to any Personalty but expressly excluding therefrom
any portion of a warranty which may be applicable to Current Owner’s Retained Land.

 

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1.2          Exhibits.
All exhibits and other attachments hereto form an integral part of this Agreement, all of which are incorporated into this Agreement
as fully as if the contents thereof were set out in full herein at each point of reference thereto.

 

Section 2. Contribution Agreement.

 

Subject to and in accordance
with the terms and provisions hereof, Seller agrees to contribute all of its interest in the Property, and to convey the Property
to BR-TBR Owner, at the Disbursement Closing in exchange for a credit to Seller’s “Capital Account” (as such
term is defined in the Venture Agreement) under the Venture Agreement (the “Capital Account Credit”) in the
estimated amount of $1,200,000.00. Buyer acknowledges and agrees that, in addition to the Permitted Title Exceptions, such contribution
of the Property shall be made subject to the Existing Financing on the Property in the estimated allocated amount of $4,269,200.00
(the “Bluerock Member Acquisition Contribution Amount”). The actual amount of the Capital Account Credit and
the Bluerock Member Acquisition Contribution Amount at the Disbursement Closing shall be determined pursuant to the Venture Agreement;
provided, however, that under all circumstances the sum of the Capital Account Credit and the Bluerock Member Acquisition Contribution
Amount shall equal $5,469,200.00, and further provided, however, unless differing amounts for the Capital Account Credit appear
in the Venture Agreement with regard to the Capital Account Credit , the amounts set forth above shall be deemed final with respect
to the amount of the Capital Account Credit and the Bluerock Member Acquisition Contribution Amount. Notwithstanding the foregoing,
however, it shall be a condition precedent to Buyer’s obligations to accept the contribution of the Property hereunder (the
“Release Condition”) that the Existing Financing is satisfied and released from record title to the Property
at the Disbursement Closing upon the Bluerock Member’s funding of its initial capital contribution under the Venture Agreement
(same to be in the amount of the Bluerock Member Acquisition Contribution Amount), which amount shall be paid to Escrow Agent and
used for the sole purpose (when combined with other funds to be made available by Seller and Current Owner) of obtaining the release
of the Property from the Existing Financing.

 

Section 3. Earnest Money.

 

3.1          Earnest
Money. Contemporaneously with the Dry Closing, Bluerock Member, on behalf of Buyer, shall deposit with Escrow Agent the sum
of Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) (the "Earnest Money"). The Earnest Money shall
be held, invested and disbursed pursuant to the respective terms and provisions hereof and of the Escrow Agreement.

 

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3.2          Disbursement.
Whenever the Earnest Money is by the terms hereof to be disbursed by Escrow Agent, Current Owner, Seller, Buyer and Bluerock Member
agree promptly to execute and deliver such notice or notices as shall be necessary, if any, or, in the opinion of Escrow Agent,
appropriate to authorize Escrow Agent to make such disbursement. Notwithstanding the foregoing, in no event shall Current Owner
or Seller have any right to contest the return of the Earnest Money to Bluerock Member in connection with any termination of this
Agreement by Buyer on or prior to the expiration of the Inspection Period, and Escrow Agent is hereby authorized to return the
Earnest Money to Bluerock Member without instructions from Current Owner or Seller in connection with the same.

 

Section 4.              Reserved.

 

Section 5.              Title
to the Property & Zoning/Subdivision Issues.

 

5.1          Seller
shall convey fee simple title to the Property to BR-TBR Owner by the Deed, which shall expressly be made subject to the Permitted
Title Exceptions. Buyer shall have until November 25, 2015 to examine title to the Property and that certain boundary survey prepared
by The John R. McAdams Company, Inc. dated July 28, 2015 (as same may be updated prior to Closing, the “Survey”)
and to give written notice to Seller of any title or Survey objections which Buyer may have. If Buyer fails to give any notice
to Seller by such date, Buyer shall be deemed to have waived such right to object to any title exceptions or defects. If Buyer
does give Seller timely notice of objection to any other title exceptions or defects, Seller shall then have the right, but not
the obligation, for a period of five (5) days after such notice, to reasonably cure or satisfy, or to cause Current Owner (which
Current Owner agrees to do where Seller commits to Buyer that same will be done) to reasonably cure or satisfy by the Closing,
such objections and to notify Buyer in writing within such five (5) day period of the action so taken to cure or satisfy, or undertaken
to cure or satisfy such objections. If Seller fails to timely provide such written notice or if such objections are not so timely
and reasonably cured or satisfied or undertaken to be cured or satisfied by Seller or Current Owner (with the reasonable approval
of Buyer with regard to any such undertaking), then Buyer shall, within five (5) days after receipt by Buyer of such written notice
describing with reasonable specificity the action so taken to cure or satisfy and annexing thereto a copy of each document or instrument
proffered to correct such objection (or if no such written notice is given by Seller, then within five (5) days of the expiration
of Seller’s five (5) day response period), elect, by written notice to be received by Seller on or before the later to occur
of (1) such fifth (5th) day or (2) the expiration of the Inspection Period, either to (i) terminate this Agreement, in which case
the Earnest Money shall be promptly returned to Bluerock Member by Escrow Agent, and the parties shall have no further rights or
obligations hereunder, except for those which expressly survive any such termination; or (ii) waive its objections hereunder and
proceed with the transaction pursuant to the remaining terms and conditions of this Agreement.

 

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5.2          If
Buyer fails to give Seller notice of its election by such time, it shall be deemed to have elected the option contained in Section
5.1(ii) above. If Seller does so reasonably cure or satisfy in writing, or undertake in writing to reasonably cure or satisfy,
such objection, then this Agreement shall continue in full force and effect; provided however that in the event that any such defect
shall remain uncured as of the Disbursement Closing Date, then the terms and provisions of Section 9.2 shall apply.

 

5.3          Neither
Seller nor Current Owner shall further voluntarily alter or encumber in any way title to the Property after the Contract Date without
Buyer’s consent, which consent may be granted or withheld in Buyer’s sole and absolute discretion, but the response
shall not be unreasonably delayed. Seller shall give Buyer notice of any such proposed encumbrance and Buyer shall then have five
(5) days in which to elect, by written notice to be received by Seller on or before such fifth (5th) day, either to (i) consent
to the encumbrance (a “Consented Change”); or (ii) object thereto, in which event Buyer shall set forth and
deliver in writing to Seller its reasons for doing so. If Buyer has not given Seller notice of its election by the end of the fifth
(5th) day, Buyer shall be deemed to have elected to have provided its consent to the requested encumbrance. Notwithstanding anything
in this Agreement to the contrary, Seller and Current Owner shall in any event be obligated to cure and remove from record title
against the Property by the Disbursement Closing or in the alternative, cause the Title Insurer to affirmatively insure over such
matter in a manner satisfactory to Buyer in its reasonable discretion, regardless of whether Buyer includes same in a written objection
notice, all matters or items (collectively, the “Required Cure Items”): (i) that are mortgage, deed to secure
debt or deed of trust liens and related UCC security interests against the Property (provided that Seller shall not be required
to remove or cause the removal of UCC financing statements filed by tenants of the Property or other third parties as debtor thereunder),
including, without limitation, that certain deed of trust recorded in the Recording Office in Deed Book 15072, page 1858 (and any
UCC financing statements related thereto) (the “Existing Financing”), the satisfaction and release of the Existing
Financing at the Disbursement Closing being also the Release Condition; (ii) that are real estate tax liens (or personal property
tax liens with respect to the Personalty) against the Property, other than liens for taxes and assessments not yet delinquent;
(iii) that have arisen after the Contract Date and that are not Consented Changes or the result of Buyer’s actions; (iv)
that constitute a lis pendens against record title to the Land, including, without limitation, that certain letter issued
by the City on June 26, 2015 asserting violations of the City’s Housing Code that is recorded in the Recording Office as
Instrument #15R002984 (the “Housing Code Violation Notice”); and (v) that constitute monetary liens or judgments
or mechanic’s or materialmen’s lien claimants who performed work on the Property (unless done at the instance or on
behalf of Buyer or its agent) (each a “Lien Claimant”). Seller or Current Owner may cure any objection with
respect to a claim of lien by a Lien Claimant by recording a bond and causing the Title Insurer to insure against collection of
same out of the Property to the satisfaction of the Title Company and the reasonable satisfaction of Buyer. In the event that any
Required Cure Item shall remain uncured as of the date of the Disbursement Closing, then same shall constitute a default by Seller
and the terms and provisions of Section 9.2 shall apply thereto. Whether or not Buyer shall have furnished to Seller any notice
of title objections pursuant to the foregoing provisions of this Agreement, Buyer may, at or prior to the Disbursement Closing,
notify Seller in writing of any objections to title or survey matters and first identified by the Title Company or the Surveyor
to the extent such matters first arise between (a) the effective date of the title commitment or the Survey; and (b) the Disbursement
Closing Date; provided, however, that Buyer must notify Seller of any such objections within five (5) Business Days of Buyer’s
first receipt of the updated title commitment, updated Survey or other document, whichever first provides notice of the condition
giving rise to any such objection. With respect to any objections to title or survey matters set forth in such notice, Seller shall
have the same option to cure and Buyer shall have the same option to accept title subject to such matters or to terminate this
Agreement as those which apply to any notice of objections made by Buyer pursuant to Section 5.1 above.

 

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5.4          Buyer,
Current Owner and Seller covenant to work together in a commercially reasonable, good faith manner to agree upon the final form
of a Reciprocal Easement Agreement ("REA") to be delivered, to the extent possible, at the Disbursement Closing,
pursuant to which BR-TBR Owner shall have the right to use certain roadway improvements located upon Lots 2 through 4 of Current
Owner’s Retained Land (Lots 1 through 4 of Current Owner’s Retained Land being referred to collectively as the “Retail
Parcels”) and the right to connect sanitary sewer line(s) to a trunk line to be located on the Retail Parcels in the
manner shown on the Preliminary Plat and in the Pending Infrastructure Permit. The REA shall also include authorization for the
encroachment of the existing buildings on the Retail Parcels onto the Land and also authorization for the encroachment of the existing
buildings on the Land onto the Retail Parcels, until the earlier to occur of: 1 year after the Disbursement Closing or such time
as any such existing building has been demolished, with all parties to the REA being required to construct any new buildings or
improvements solely upon their own land and not to cause same to encroach upon the land of any other party. The REA shall also
provide for sharing of maintenance costs for the following common elements: lighting, signage and landscaping. Buyer, Current Owner
and Seller further covenant to work together in a commercially reasonable, good faith manner to agree upon the final form of a
limited parking easement to benefit Panera, LLC, the proposed lessee of Lot 1 of the Retail Parcels (the “Proposed Parking
Easement”), to be delivered, to the extent possible, at the Disbursement Closing (the REA and such Proposed Parking Easement
are hereinafter collectively referred to as the “Easements”). For the avoidance of doubt, the delivery of the
Easements shall not be a condition precedent to Buyer's or Seller's obligations to close hereunder; provided, however, Buyer, Current
Owner and Seller shall, to the extent same are not finalized prior to the Disbursement Closing, continue to negotiate in good faith
following the Disbursement Closing the final forms of the REA and the Proposed Parking Easement (Buyer agreeing to provide the
Proposed Parking Easement subject to finalizing the form and content of the same in the commercially reasonable and good faith
manner set forth above). Under no circumstances shall the REA or the Proposed Parking Easement be recorded against record title
to the Land (or the Original Parcel) prior to the Disbursement Closing without Buyer’s consent. This Section 5.4 shall survive
Closing.

 

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5.5          The
following matters shall constitute “Consented Changes” (i.e. Buyer shall have no consent rights with regard to the
following): (i) the recordation of any instrument which is contemplated or otherwise required as a condition precedent to recording
the Subdivision Plat pursuant to the Preliminary Subdivision Approval, (ii) changes to the boundaries of the parcels from the boundaries
shown on the Preliminary Plat, which changes are required by the City as part of final approval of the Subdivision and Subdivision
Plat, and (iii) changes to the site plan, which site plan is a part of the Pending Zoning Case, which are necessary to obtain final
rezoning as contemplated in Section 7.18 below; provided, however, in all instances, Seller shall provide Buyer with prior written
notification of any such changes. Notwithstanding the foregoing to the contrary, to the extent any of the changes enumerated in
Section 5.5(i)-(iii) above result in: (i) a diminution in the unit count of BR-TBR Owner’s intended use of the Property as
a 245 multi-family project ("Intended Use"); (ii) impairment of any access to the Land or any appurtenant easement
associated with the Land; (iii) an increase in the total project budget of Buyer and BR-TBR Owner to develop the Intended Use by
$250,000.00 or more; (iv) a material delay (i.e. more than sixty (60) days) in the development schedule for the Proposed Development;
or (v) any change in the boundary lines of the Land that would result in a two percent (2%) or greater decrease in the total acreage
amount of either Lot 5 or Lot 6 (individually and collectively, as the context requires, hereinafter referred to as "Material
Impact to the Land"), then such changes shall not be deemed Consented Changes, and Seller and Current Owner covenant and
agree that they may only institute such changes with the prior written consent of Buyer, which consent may be withheld in Buyer’s
sole discretion.

 

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Section 6.              Limitation
on Warranties and Buyer’s Inspection.

 

6.1          Limitation
on Warranties.

 

Seller, Current Owner
and Buyer acknowledge that Buyer shall inspect the Property and shall examine, review and inspect the books and records relating
to the ownership and operation of the Property pursuant to the terms hereof. Except as expressly set forth in this Agreement or
in any instrument delivered by Seller or Current Owner to Buyer at Closing (collectively, “Seller’s/Current Owner’s
Representations”), Buyer, through BR-TBR Owner, shall acquire the Property “AS IS, WHERE IS” without any
obligation of Seller or Current Owner to perform any repairs, improvements, maintenance or other work to the Property or any part
thereof, and without, except as expressly set forth herein to the contrary, any warranties, express or implied, of any kind from
Seller, including, but not limited to, warranties of fitness, merchantability, fitness for a particular purpose, habitability,
tenantability or environmental condition. Seller expressly disclaims any representations and warranties with respect to the Property,
except for Seller’s/Current Owner’s Representations, including any representations by any brokers or salesmen, and
Buyer does hereby acknowledge that, by accepting the contribution of the Property, Buyer is relying only upon those representations
of Seller and Current Owner concerning the Property expressly set forth as such in this Agreement. Further, in the event BR-TBR
Owner acquires the Property, and subject to Seller’s/Current Owner’s Representations contained herein, Buyer, on behalf
of itself, BR-TBR Owner and their respective successors and assigns, waives its right to recover from, and forever releases and
discharges, Seller, Seller’s Affiliates (including Current Owner), the partners, trustees, beneficiaries, shareholders, members,
managers, directors, officers, employees and agents and representatives of each of them, and their respective heirs, successors,
personal representatives and assigns, from any and all demands, claims, legal or administrative proceedings, losses, liabilities,
damages, penalties, fines, liens, judgments, costs or expenses whatsoever (including, without limitation, court costs and attorneys’
fees and disbursements), whether direct or indirect, known or unknown, foreseen or unforeseen, that may arise on account of or
in any way be connected with (i) the physical condition of the Property including, without limitation, all structural and seismic
elements, all mechanical, electrical, plumbing, sewage, heating, ventilating, air conditioning and other systems, the environmental
condition of the Property and the presence of Hazardous Materials on, under or about the Property; or (ii) any law or regulation
applicable to the Property, including, without limitation, any Environmental Law and any other federal, state or local law. This
provision shall expressly survive the Closing.

 

    	-13-

     

    

 

Notwithstanding
the acknowledgements set forth in this Section 6.1, such provisions shall not apply to any finally adjudicated judgment with respect
to any fraudulent or intentional misrepresentation by Seller or Current Owner or other fraudulent action by Seller or Current Owner.
Further, notwithstanding anything in the foregoing to the contrary: (a) Buyer and BR-TBR Owner shall have the right to defend government
and third party claims by alleging that Seller or Current Owner (or someone acting on either such entity’s behalf, including
any Affiliate), not Buyer or BR-TBR Owner, is liable for such claims and Buyer has no obligation to indemnify Seller or Current
Owner for governmental or third party claims asserted before or after Closing as a result of any act or omission taken or failed
to be taken by or on Seller’s or Current Owner’s behalf prior to Closing; and (b) the provisions set forth in this
Section 6.1 shall not apply to third-party tort claims relating to the Property and occurring during Current Owner’s or Seller’s
ownership thereof. Additionally, Seller and Buyer hereby acknowledge and agree that the provisions set forth in this Section 6.1
are not intended to be and shall not be construed as a waiver of similar claims against the predecessors-in-title to Current Owner
and Seller with respect to the Property (“Predecessors”), or any such Predecessor’s officers, member,
managers, directors, partners, employees, agents or contractors, or any other person acting on behalf of any such Predecessors.
Notwithstanding any provision to the contrary in this Section 6.1, nothing in this Section 6.1 shall limit Seller’s or Current
Owner’s express covenants set forth in this Agreement or the documents delivered by Seller or Current Owner at Closing, or
Buyer’s right to enforce the same.

 

6.2          Buyer’s
Inspection. Subject to any rights or restrictions under any of the Permitted Title Exceptions, Buyer and its agents shall have
the right, from time to time prior to the Closing, to enter upon the Property to examine the same and the condition thereof, and
to conduct such surveys and to make such engineering and other inspections, tests and studies as Buyer shall determine to be reasonably
necessary, all at Buyer’s sole cost and expense; provided, however, Buyer shall not conduct any environmental investigations
of the Land beyond a Phase I environmental site assessment and a geotechnical survey to evaluate soil conditions (i.e. no sampling
or drilling or other physically intrusive testing) without first obtaining the prior written consent of Current Owner and Seller
(same not to be unreasonably withheld); any request for such consent shall be made in writing, and if not granted or denied in
a writing received by Buyer within five (5) days of Seller’s receipt of such request, then such request shall be deemed to
have been denied by Seller and Current Owner (if such consent is withheld, prior to the expiration of the Inspection Period, Buyer
shall have the right to terminate this Agreement and Bluerock Member shall receive a full refund of the Earnest Money). Current
Owner and Seller shall have the right to have their representative present with Buyer during all examinations or surveys of the
Property conducted by Buyer and Buyer agrees to give Current Owner and Seller reasonable advance notice (in no event less than
twenty-four (24) hours via telephone of such examinations or surveys to Stephen Broome at 404-367-6010) and to conduct such examinations
or surveys during normal business hours where feasible. Buyer agrees to conduct all examinations and surveys of the Property in
a manner that will not unreasonably harm or damage the Property, and agrees to restore the Property to substantially the same existing
condition immediately prior to such examinations if Closing does not occur. Buyer hereby indemnifies and holds Current Owner and
Seller harmless to the extent any claims for injury or death to persons, damage to property or other losses, damages or claims,
including, in each instance, attorneys’ fees and litigation costs, arising out of any action of any person or firm entering
the Property on Buyer’s behalf as aforesaid, which indemnity shall survive the Closing or any termination of this Agreement
without the Closing having occurred. Buyer shall maintain and shall ensure that Buyer’s consultants and contractors maintain
commercial general liability insurance in an amount not less than One Million and No/100 Dollars ($1,000,000), combined single
limit, and in form and substance adequate to insure against all liability of Buyer and its consultants and contractors, respectively,
and each of their respective agents, employees and contractors, arising out of inspections and testing of the Property or any part
thereof made on Buyer’s behalf. Buyer agrees to provide to Current Owner and Seller a certificate of insurance with regard
to each applicable liability insurance policy prior to any entry upon the Property by Buyer or its consultants or contractors,
as the case may be, pursuant to this Agreement. Notwithstanding the foregoing, in no event shall Buyer have any liability to Current
Owner or Seller, nor any obligation to indemnify, defend or hold Current Owner, Seller or their related parties harmless with respect
to (i) pre-existing conditions upon the Property, and/or (ii) the grossly negligent or willful actions of Current Owner, Seller
or parties under such entities’ control, and/or (iii) damage to the Improvements, but only to the extent BR-TBR Owner acquires
the Property.

 

    	-14-

     

    

 

6.3          Formal
Inspection Period. Notwithstanding Buyer’s right of inspection contained in Section 6.2 above, Buyer shall have the period
commencing on the Contract Date and expiring at 5:00 P.M., Atlanta, Georgia time on November 25, 2015 (the “Inspection
Period”) in which to make such investigations and studies with respect to the Property as Buyer deems appropriate. If
Buyer does not terminate this Agreement by written notice to be delivered to Seller on or before the expiration of the Inspection
Period, then Buyer’s rights under this Section 6.3 shall be deemed to have been waived by Buyer and this Agreement shall
remain in full force and effect without any longer being subject to this Section 6.3. If Buyer does terminate this Agreement by
written notice delivered to Seller on or before the expiration of the Inspection Period, the Earnest Money shall be promptly refunded
to Bluerock Member by Escrow Agent, and the parties shall have no further rights or obligations hereunder, except for those which
expressly survive any such termination. For the avoidance of doubt, the foregoing provisions of this Section 6.2 shall in no event
be a limitation on Buyer’s right to terminate this Agreement in accordance with Section 8.2 of this Agreement.

 

6.4          Survey.
The Deed to be delivered by Seller to BR-TBR Owner at the Closing (and the deed to be delivered by Current Owner to Seller) shall
contain a legal description of the Land as same is depicted on the Subdivision Plat which legal description shall be one and the
same as the metes and bounds description of the Land contained in Exhibit “B-2” attached hereto.

 

    	-15-

     

    

 

6.5          Delivery
of Information. Seller and Current Owner hereby represent and warrant that copies of all of the following materials, to the
extent in such entities’ possession, custody or control, have been made available to Buyer or the Bluerock Member prior to
the Contract Date: (i) environmental site assessments of the Property; (ii) engineering, geological or soils reports relating to
the Property; (iii) Current Owner’s title insurance policy relating to the Property; (iv) the most recently obtained boundary
surveys and topographical surveys of the Property; (v) all licenses, permits and subdivision or zoning reports, ordinances or approvals
relating to the Property; (vi) copies of all ad valorem tax statements for the Property for the current year and 2014; (vii) copies
of all architectural and engineered drawings provided by designers, engineers and architects, including any associated with the
planned redevelopment of the Property; (viii) copies of all leases and Service Contracts currently in effect for the Property;
(ix) all environmental reports, letters and any other items relating to any and all environmental issues on the Property; and (x)
to the extent not set forth above, those items set forth in Exhibit “J” attached hereto and incorporated
herein by reference (collectively, the “Property Information”).

 

6.6          Service
Contracts. Seller shall terminate or shall cause Current Owner (which Current Owner agrees to do) to terminate at Seller’s
sole expense all existing vendor agreements, equipment contracts and leases, maintenance and repair contracts, and all other contracts
and agreements relating to the leasing, management, maintenance, and operation of the Property in effect on the Contract Date (collectively,
the “Service Contracts”), and neither Seller nor Current Owner shall enter into any such new contracts during
the pendency of this Agreement without Buyer’s consent. Seller shall provide evidence of such terminations at Closing. Notwithstanding
the foregoing to the contrary, Seller and Current Owner shall cooperate with Buyer so that Buyer can obtain an assignment at Closing
of any assignable Service Contracts that are deemed necessary by Buyer for its operation of the Property after Closing. Notwithstanding
the foregoing, Buyer acknowledges that certain Service and Marketing Agreement dated December 1, 2009 by and between Time Warner
Entertainment Advance/Newhouse Partnership, d/b/a Time Warner Cable through its East Carolina Division, and PRG Landmark Associates,
LLC (the “Time Warner Agreement”), a copy of which has been delivered to Buyer, which presently encumbers the
Original Parcel. The Time Warner Agreement cannot be terminated, though its current term is to expire in December of 2016,
and Current Owner agrees that any extension of the Time Warner Agreement shall exclude the Property therefrom.  Following
Closing, each of Current Owner and BR-TBR Owner shall contribute its respective prorata share towards the expense of the Time Warner
Agreement, to be calculated monthly on a per unit basis for all units on the Original Parcel, to the extent any fees are due under
the Time Warner Agreement with respect to the Property after the Disbursement Closing. Current Owner agrees that the Time Warner
Agreement shall not be amended or modified in any manner that would negatively impact the Property without Buyer’s prior
consent, such consent not to be unreasonably withheld. This Section 6.6 shall survive Closing.

 

    	-16-

     

    

 

6.7          Operations.
Current Owner agrees that it will maintain its general liability insurance in effect as of the date of this Agreement with respect
to the Property (or, if such insurance is cancelled or expires, will obtain comparable insurance to the extent it is available
on commercially reasonable terms) until the earlier of (i) the Current Owner’s contribution of the Property to Seller, or
(ii) the termination by Current Owner or Seller of Current Owner’s obligation to contribute the Property to Seller. Unless
Buyer agrees otherwise in writing, no new leases or other rights of occupancy with regard to the Property shall be granted by Current
Owner or Seller while this Agreement remains in effect.

 

Section 7. Representations, Warranties
& Covenants.

 

Seller and Current
Owner hereby warrant, represent and, where applicable, covenant to Buyer and BR-TBR Owner as follows:

 

7.1          No
Litigation. Except as described in Exhibit “G” attached hereto and by this reference made a part
hereof, neither Current Owner nor Seller has received any written notice of any actual, pending or threatened litigation or proceeding
by any organization, person, individual or governmental agency against such entities with respect to the Property or against the
Property which, if adversely determined, would have a material adverse effect on the Property or Current Owner’s or Seller’s
ability to consummate the transactions herein described. There are no bankruptcy or other debtor relief proceedings currently pending
involving Current Owner or Seller.

 

7.2          No
Condemnation. Neither Current Owner nor Seller has any knowledge of any action or proceeding pending, instituted or threatened
(in writing) for condemnation or other taking of all or any part of the Property by friendly acquisition or statutory proceeding.

 

7.3          Authority.

 

7.3.1           Seller
is a validly formed limited liability company under the laws of the State of Georgia, is not subject to any involuntary proceeding
for dissolution or liquidation thereof, and has obtained all requisite authorizations and therefore has full unconditional authority
to enter into this Agreement with Buyer and to consummate and close the contribution of the Property pursuant hereto.

 

7.3.2           Current
Owner is a validly formed limited liability company under the laws of the State of Georgia, is not subject to any involuntary proceeding
for dissolution or liquidation thereof, and has obtained all requisite authorizations and therefore has full unconditional authority
to enter into this Agreement with Buyer, to perform its obligations hereunder, and to consummate and close the contribution of
the Property to Seller pursuant to the Seller Operating Agreement.

 

    	-17-

     

    

 

7.4          Environmental
Matters. Neither Current Owner nor Seller has received any written complaint, order, citation, or notice from any Governmental
Authority with regard to the presence of Hazardous Substances or other environmental problems or violations of Environmental Law
affecting the Property, nor does either of Current Owner or Seller have knowledge of any such violations of Environmental Law being
in existence with respect to the Property, except to the extent set forth in that certain Phase I Report delivered to Buyer by
Seller and Current Owner with respect to the Property.

 

7.5          Appeals
Assessments. Neither Current Owner nor Seller has received any notice or has any knowledge of any pending or threatened (in
writing) liens, special assessments, impositions or increases in assessed valuations to be made against the Property.

 

7.6          Service
Contracts. There are no material service, supply, development, construction, equipment rental or similar agreements in the
possession or control of Current Owner, Seller or Property Manager, to which Current Owner, Seller or Property Manager is a party
affecting the Property except the Service Contracts. Except as otherwise provided in Section 6.6 above, Seller shall terminate
at its sole expense or cause Current Owner to terminate at its sole expense (which Current Owner agrees to do) all Service Contracts
prior to Closing and provide evidence thereof to Buyer at (or prior to) Closing.

 

7.7          No
Violation. Neither Current Owner nor Seller has received written notice from any governmental authority alleging any violation
or breach of any law or municipal or county ordinances, with respect to Current Owner, Seller or the Property (or any part thereof)
or with respect to the existing use, occupancy, operation, maintenance or construction thereof. Seller and Current Owner shall
furnish Buyer with a copy of all written notices received by such entities from any governmental authority of any violation of
any law, statute, ordinance, regulation or order of any governmental or public authority relating to the Property within five (5)
Business Days following receipt thereof, but, if received by such date, in no event later than two (2) Business Days prior to the
Closing Date. Seller and Current Owner shall protect, indemnify, defend and hold Buyer (and Bluerock Member) and BR-TBR Owner harmless
of and from all claims by the City relating to the existing condition of the Improvements on the Property, including, without limitation,
claims identified in the Housing Code Violation Notice. Such obligation shall survive Closing for an unlimited duration.

 

    	-18-

     

    

 

7.8          No
Employees. There are no employees at the Property whose employment with Seller or Current Owner will survive the Closing Date.
Seller shall be responsible for paying or causing Current Owner to pay (which Current Owner agrees to do) any and all wages, benefits
and other amounts owing to such employees at the Property for periods prior to the Closing and shall hold Buyer, Bluerock Member
and BR-TBR Owner harmless from any liability arising from the same.

 

7.9          Possession
at Closing Free of All Tenancies. Seller shall deliver possession of the Property to BR-TBR Owner at Closing free of all occupants
and any rights of physical occupancy by any party other than Seller, subject in all instances to the rights of any easement holder
(or other parties in interest) under a Permitted Title Exception.

 

7.10        No
Pending Changes. As of the Contract Date, aside from the pending infrastructure site permit application filed by the Phase
I Permit Entity (the “Pending Infrastructure Permit”), the Subdivision and the Pending Zoning Case (as defined
below) or any previous re-zoning request which has been rescinded, neither Seller nor Current Owner has received written notice
of (a) any pending or contemplated change in any regulation, code, ordinance, law, or private restriction from any governmental
authority, or (b) any pending or threatened judicial or administrative action, applicable to the Property, or (c) any action pending
or threatened by adjacent land owners, other than Seller or Current Owner, any of which would result in any material change in
the condition of the Property, or any part thereof, or (d) would adversely limit or impede the operation of or public access to
the Property.

 

7.11        No
Banned Person. Neither Seller, nor Current Owner, nor any person holding a direct or indirect ownership interest in such entities,
is described in, covered by or specially designated pursuant to, or affiliated with any person described in, covered by or specially
designated pursuant to, any Anti-Terrorism Law or any list issued by any department or agency of the United States of America in
connection with any Anti-Terrorism Law.

 

7.12        Phase
I Permit Entity. Current Owner has formed the Phase I Permit Entity as a North Carolina limited liability company, and Current
Owner is the sole owner of 100% of the membership interests of the Phase I Permit Entity and owns said membership interests free
and clear of any lien, encumbrance, option, warrant or rights of purchase. The Phase I Permit Entity has applied for the following
permits and approvals with respect to the Property: the Pending Zoning Case and the Pending Infrastructure Permit.

 

    	-19-

     

    

 

7.13        FIRPTA.
Neither Current Owner nor Seller is a “foreign person” as defined in Section 1445 of the Internal Revenue Code of 1986,
as amended, and the Income Tax Regulations thereunder.

 

7.14        No
Adverse Claims.

 

7.14.1         Subject
to any matters of public record for which a lis pendens or other filing has been made against record title to the Property,
no party has any claim to the Property by reason of any purchase or contribution agreement (other than Seller and Buyer), option
to purchase, right of first refusal, land installment contract, lease or other similar agreement or instrument, entered into or
issued by Seller or Current Owner, that will survive following Closing hereunder.

 

7.14.2         The
execution and delivery of this Agreement by Seller and the performance by Seller of its obligations under this Agreement and the
completion of the contribution of the Property contemplated by this Agreement will not result in (1) a breach of, or a default
under, any contract, agreement, commitment or other document or instrument to which Seller is party or by which Seller or the Property
is bound or (2) a violation of any law, ordinance, regulation or rule of any governmental authority applicable to Seller or
any judgment, order or decree of any court or governmental authority that is binding on Seller.

 

7.14.3         The
execution and delivery of this Agreement by Current Owner and the performance by Current Owner of its obligations under this Agreement
and the completion of the contribution of the Property by Current Owner to Seller under the Seller Operating Agreement will not
result in (1) a breach of, or a default under, any contract, agreement, commitment or other document or instrument to which
Current Owner is party or by which Current Owner or the Property is bound or (2) a violation of any law, ordinance, regulation
or rule of any governmental authority applicable to Current Owner or any judgment, order or decree of any court or governmental
authority that is binding on Current Owner.

 

7.15        No
Mark-Up. $5,469,200.00 represents Seller’s cost in the Property, without any mark-up.

 

7.16        Abandonment
of Still Forest Place. Current Owner covenants that, prior to the Disbursement Closing, Still Forest Place shall be abandoned
as a public right-of-way and such instruments as are necessary to confirm the abandonment thereof by the City, and reversion of
title to the land within the Still Forest Place right-of-way back to Current Owner (if necessary, such that title to same will
be conveyed first to Seller and subsequently to BR-TBR Owner), shall be recorded in the Recording Office (the “Still Forest
Place Abandonment”).

 

    	-20-

     

    

 

7.17        Subdivision
Approval.

 

7.17.1         Current
Owner and the Phase I Permit Entity covenant to use commercially reasonable good faith efforts to, prior to the Disbursement Closing
Outside Date: (i) satisfy all conditions set forth in the Preliminary Subdivision Approval required in order to receive the City’s
authorization to record the Subdivision Plat; (ii) receive the City’s authorization to record the Subdivision Plat; and (iii)
cause the Subdivision Plat to be recorded in the Recording Office (collectively, the "Subdivision Conditions").
Neither Current Owner nor Phase I Permit Entity shall cause the Subdivision Plat to be recorded without first having provided a
copy thereof to Buyer for its review (subject to Current Owner’s right to make changes without Buyer’s approval as
set forth below or as set forth in Section 5.5). Current Owner and the Phase I Permit Entity further covenant to not modify or
amend the Preliminary Subdivision Approval or the Preliminary Plat in any manner that would constitute a Material Impact to the
Land (for avoidance of doubt, any modification that does not constitute a Material Impact to the Land is not subject to this sentence),
nor take any action to rescind the Preliminary Subdivision Approval or submit a new subdivision application to the City for all
or any portion of the Original Parcel that would constitute a Material Impact to the Land, without receiving Buyer’s prior
written consent, which consent may be withheld in Buyer’s sole discretion. Notwithstanding the foregoing, if any such modification
of the Preliminary Subdivision Approval or the Preliminary Plat is required by the City in connection with granting final approval
to record the Subdivision Plat, then Buyer’s consent shall not be required if such modification does not constitute a Material
Impact to the Land, but Current Owner and Seller shall provide notice to Buyer of the same if such modification would constitute
a Material Impact to the Land, and Buyer’s prior written consent thereto shall be required (which consent may be withheld
in Buyer’s sole discretion).

 

7.17.2         Current
Owner and the Phase I Permit Entity covenant to use commercially reasonable good faith efforts to satisfy all the Subdivision Conditions;
provided, however, failure to satisfy the Subdivision Conditions due to the City's failure to authorize or approve recording of
the Subdivision Plat or other third parties' failure to execute the requisite documents to fulfill the Subdivision Conditions,
after Current Owner and the Phase I Permit Entity have used commercially reasonable good faith efforts to fulfill any conditions
precedent pertaining thereto and used commercially reasonable good faith efforts to obtain such authorizations or approvals, shall
not constitute a default by Current Owner or Seller of any obligations in this Section 7.17.

 

    	-21-

     

    

 

7.17.3         Notwithstanding
the foregoing in this Section 7.17.3 to the contrary, Current Owner and the Phase I Permit Entity acknowledge that their respective
obligations pertaining to any Subdivision Conditions (or any applicable prerequisites thereunder) that can be satisfied by the
payment of any fees or other quantifiable amounts in accordance with published schedules (i.e. as opposed to a third party making
monetary demands to perform the act that would otherwise satisfy the Subdivision Condition) shall not be limited to commercially
reasonable good faith efforts but instead shall be affirmative covenants by each of Current Owner and the Phase I Permit Entity,
with the failure to timely perform or satisfy same constituting a default by Current Owner and Seller for which Buyer shall be
entitled to exercise the remedies provided in Section 9.2 below.

 

7.18        Zoning
Approvals.

 

7.18.1         Current
Owner and the Phase I Permit Entity covenant to use commercially reasonable good faith efforts to prosecute to successful completion,
prior to the Disbursement Closing Outside Date, that certain (i) Administrative Site Review Application currently pending with
the City [entitled “Villages at Lake Boone Trail Phase I, SR-9-2015”] (the “Pending Zoning Case”),
and (ii) the Pending Infrastructure Permit, such that at the Disbursement Closing the Property shall be properly zoned for use
as multi-family residential apartments and all City approvals necessary for the Proposed Development (aside from building &
other “vertical” development-related permits) shall have been obtained (collectively, the “Required Zoning
Conditions”). Neither Current Owner nor the Phase I Permit Entity shall cause the Pending Zoning Case to be finalized
by the City without first having provided a copy of the proposed approvals/conditions thereunder to Buyer for its review (subject
to Current Owner’s right to make changes without Buyer’s approval as set forth below or as set forth in Section 5.5).
Except for the Pending Zoning Case, there shall be no pending applications or proceedings that could change the zoning status of
the Property. Current Owner and the Phase I Permit Entity covenant and agree (i) not to withdraw the Pending Zoning Case without
Buyer’s prior written consent, and (ii) not modify or amend the Pending Zoning Case in any manner that would constitute a
Material Impact to the Land without receiving Buyer’s prior written consent, which consent may be withheld in Buyer’s
sole discretion. Notwithstanding the foregoing, if any such modification of the Pending Zoning Case is required by the City to
obtain final approval from the City thereof, then Buyer’s consent shall not be required if such modification does not Materially
Impact the Land, but Current Owner and Seller shall provide notice to Buyer of the same if such modification would constitute a
Material Impact to the Land, and Buyer’s prior written consent thereto shall be required (same may be withheld in Buyer’s
sole discretion).

 

7.18.2         Current
Owner and the Phase I Permit Entity covenant to use commercially reasonable good faith efforts to satisfy the Required Zoning Conditions;
provided, however, failure to satisfy the Required Zoning Conditions due to the lack of required cooperation from the City or other
third parties, after Current Owner and the Phase I Permit Entity have used commercially reasonable good faith efforts to fulfill
any conditions precedent pertaining thereto and used commercially reasonable good faith efforts to obtain such cooperation, shall
not constitute a default by Current Owner or Seller under this Section 7.18.

 

    	-22-

     

    

 

7.18.3         Notwithstanding
the foregoing in this Section 7.18.3 to the contrary, Current Owner and the Phase I Permit Entity acknowledge that their respective
obligations pertaining to any Required Zoning Conditions (or any applicable prerequisites thereunder) that can be satisfied by
the payment of any fees or other quantifiable amounts in accordance with published schedules (i.e. as opposed to a third party
making monetary demands to perform the act that would otherwise satisfy the Required Zoning Conditions ) shall not be limited to
commercially reasonable good faith efforts but instead shall be affirmative covenants by each of Current Owner and the Phase I
Permit Entity, with the failure to timely perform or satisfy same constituting a default for which Buyer shall be entitled to exercise
the remedies provided in Section 9.2 below.

 

7.19        Remedies
& Survival. The representations made by Seller, Current Owner and/or the Phase I Permit Entity in this Agreement are true
and correct, and the warranties, covenants and agreements made by such entities are in full force and effect and binding on such
entities as of the Contract Date, and shall be true and correct in all material respects, and in full force and effect, and shall
be deemed to have been reaffirmed and restated by such entities, subject to modifications which do not constitute a breach of a
representation or warranty when the same was made on the Contract Date, as of the Disbursement Closing Date. During the pendency
of this Agreement, Seller and Current Owner shall have the right to disclose to Buyer in writing, promptly upon obtaining actual
knowledge of, changes in any such entities’ representations and warranties made hereunder (each a “Disclosure”
and collectively, the “Disclosures”), which Disclosures shall thereafter be updated by Seller and Current Owner
to the Disbursement Closing Date. If any Disclosure would constitute a material adverse claim to the Property, Seller or Buyer
or if any covenant made by Current Owner, Seller or the Phase I Permit Entity shall be determined to be untrue or unsatisfied as
of the Disbursement Closing Date, then Buyer, at its sole option, and as its sole remedy (except as otherwise provided in this
Section 7.19), may either (a) close and consummate the transactions contemplated by this Agreement, without reduction in the amount
of the Capital Account Credit; or (b) terminate this Agreement by written notice to Seller, whereupon Escrow Agent shall return
the Earnest Money to Bluerock Member, and the parties shall have no rights or obligations hereunder, except for those which expressly
survive any such termination. Those representations and warranties made herein by Current Owner or Seller which are qualified to
knowledge or to the best of such entities’ knowledge are made based upon the actual (i.e. not constructive or imputed) knowledge
of Stephen Broome; provided, however, Current Owner and Seller represent and warrant that such individual is in the best position
to have knowledge regarding the subject matter of the representations made herein. Notwithstanding the foregoing, no representation,
warranty, covenant or agreement made in this Agreement by any of Seller, Current Owner or the Phase I Permit Entity shall survive
the Disbursement Closing relative to any matters known to Buyer to be untrue or incorrect at the Disbursement Closing. The representations,
warranties and covenants made by Seller, Current Owner and the Phase I Permit Entity in this Agreement shall survive the Disbursement
Closing for nine (9) months after the Disbursement Closing Date (the “Survival Period”) and shall terminate
thereafter, unless a suit is filed thereupon in a court of competent jurisdiction on or before the nine (9) month anniversary of
the Disbursement Closing Date, in which event same shall terminate after a final resolution in court (after expiration of all appeal
periods without a successful appeal) or other final settlement. Notwithstanding the foregoing, in no event shall the foregoing
operate to excuse Seller, Current Owner or the Phase I Permit Entity from breaching any representation or warranty when made or
breaching any covenant made by any of such entities hereunder, in which event the terms of Section 9.2 shall govern and control.

 

    	-23-

     

    

 

Section 8. Closing.

 

8.1          Time
and Place. The parties shall conduct the Closing in two stages. The first stage of the Closing (the "Dry Closing")
shall occur on November 25, 2015, subject to the extension rights below (the “Dry Closing Date”). At the Dry
Closing, the parties shall place into escrow all Closing deliveries as described below in Sections 8.3 and 8.4 (and with regard
to the Closing Statement, counterpart signature pages which will be affixed to the final Closing Statement to be completed at the
Disbursement Closing described in the following sentence). The second stage of the Closing (the "Disbursement Closing")
shall occur on the date which is five (5) Business Days following the recordation of the Subdivision Plat (the “Disbursement
Closing Date”), but in all instances on or before the Disbursement Closing Outside Date. On the Disbursement Closing,
Escrow Agent shall release all items from escrow for recordation and disbursement in accordance with the final Closing Statement
(same to be completed at such Disbursement Closing).

 

Each Closing shall be
handled through escrow with the Escrow Agent or at such other location mutually agreed to by Seller and Buyer, by 4:00 p.m. local
time. The parties agree that Closing may be conducted by escrow through the Escrow Agent, subject to the terms of this Agreement
and the Escrow Agreement.

 

8.2          Buyer’s
Conditions to Closing. In addition to any other conditions set forth in this Agreement, the obligation of Buyer to close hereunder
shall in all respects be conditioned upon the satisfaction of each of the following conditions precedent prior to or simultaneously
with Closing (except as otherwise noted below):

 

    	-24-

     

    

 

8.2.1           Seller’s
and Current Owner’s representations and warranties contained herein shall be true and correct in all material respects at
each of the Dry Closing and the Disbursement Closing, without regard to any knowledge-based qualifications except those expressly
set forth herein;

 

8.2.2           Seller,
Current Owner and the Phase I Permit Entity shall have complied with their respective obligations set forth herein, including,
without limitation, delivery by Seller and Current Owner, as applicable, of all documents at the Dry Closing and satisfaction of
all Required Cure Items by the Disbursement Closing;

 

8.2.3           All
of the Development/Entity Conditions shall have been satisfied by the Dry Closing Date;

 

8.2.4           The
Title Insurer shall issue at the Disbursement Closing, or is unconditionally committed at the Disbursement Closing to issue, to
BR-TBR Owner an ALTA standard coverage owner's title policy (the "Title Policy") in accordance with the title
commitment approved by Buyer, insuring BR-TBR Owner’s title to the Land in the amount of $5,469,200.00, subject only to the
standard exceptions and exclusions from coverage contained in such Title Policy (other than those that can be removed by Seller’s
delivery of the Closing Documents) and the Permitted Title Exceptions. This condition shall only be deemed satisfied if the Title
Insurer is prepared to issue (i) a subdivision endorsement, which may include the ALTA 26-06 - Subdivision (Adopted 10-16-08) (the
"Subdivision Endorsement") and (ii) a non-imputation endorsement protecting against denials of coverage based
on the imputed knowledge of Seller, each to be issued at the time of the Disbursement Closing.

 

8.2.5           The
Still Forest Place Abandonment shall have been completed, and evidence confirming same shall be provided to Buyer, prior to the
Disbursement Closing.

 

8.2.6           Current
Owner shall have conveyed fee simple title to the Property to Seller by the Disbursement Closing, subject only to the Permitted
Title Exceptions and the Existing Financing (but only as to the Bluerock Member Acquisition Contribution Amount, and no greater
amount), and the Release Condition shall be satisfied at the Disbursement Closing.

 

8.2.7           The
Subdivision Conditions shall have been satisfied by the Disbursement Closing.

 

8.2.8           The
Required Zoning Conditions shall have been satisfied by the Disbursement Closing.

 

    	-25-

     

    

 

8.2.9           If
the Development/Entity Conditions are not satisfied by the Dry Closing, Buyer may (a) waive such Development/Entity Conditions
and proceed to the Dry Closing on the Dry Closing Date, or (b) extend (by written notice delivered prior to the then scheduled
Dry Closing Date) the Dry Closing Date for one (1) week for four (4) successive periods (i.e., the total extension will not exceed
four (4) weeks) to attempt to satisfy such Development/Entity Conditions. If Buyer (or Seller pursuant to Section 8.6 below) has
extended the Dry Closing Date but the Development/Entity Conditions have not been satisfied by the extended Dry Closing Date, then
Buyer may (a) waive such Development/Entity Conditions and proceed to the Dry Closing or (b) terminate this Agreement by delivery
of written notice to Escrow Agent and Seller, in which event the Earnest Money shall be returned to Bluerock Member and thereafter
the parties hereto shall have no further rights or obligations hereunder, except for those which expressly survive such termination.
If any of the other closing conditions in this Section 8.2 expressly applicable to the Dry Closing (aside from the Development/Entity
Conditions, same being addressed above) are not met at the Dry Closing, Buyer may (a) waive such condition and proceed to the Dry
Closing on the Dry Closing Date or (b) terminate this Agreement by delivery of written notice to Escrow Agent and Seller, in which
event the Earnest Money shall be returned to Bluerock Member and thereafter the parties hereto shall have no further rights or
obligations hereunder, except for those which expressly survive such termination. Nothing in this Section 8.2.9 shall limit Buyer’s
remedies set forth in Section 9.2 below where the applicable closing condition for the Dry Closing is not satisfied due to the
default of Seller (or Current Owner or the Phase I Permit Entity, as applicable).

 

8.2.10         If
the closing conditions set forth in this Section 8.2 applicable to the Disbursement Closing (collectively, the “Disbursement
Closing Conditions”) are not met at the Disbursement Closing, Buyer may (a) waive such condition and proceed to the Disbursement
Closing on the Disbursement Closing Date (unless the unsatisfied condition is (1) the recordation of the Subdivision Plat, in which
case the Disbursement Closing shall occur on the fifth (5th) Business Day following Buyer’s waiver of such condition,
or (2) the conditions set forth in Section 8.2.6 hereof, in which case the Disbursement Closing shall occur on the date on which
such Section 8.2.6 conditions can be satisfied (subject to the Disbursement Outside Closing Date)), or (b) extend (by written notice
delivered prior to the then scheduled Disbursement Closing Date) the Disbursement Closing Date for one (1) week for four (4) successive
periods (i.e., the total extension will not exceed four (4) weeks); provided, however, in no event shall the Disbursement Closing
be extended beyond the Disbursement Closing Outside Date. If Buyer (or Seller pursuant to Section 8.6 below) has extended the Disbursement
Closing Date but the Disbursement Closing Conditions have not been satisfied by the earlier of the extended Disbursement Closing
Date or the Disbursement Closing Outside Date, then Buyer may (a) waive such condition and proceed to the Disbursement Closing
or (b) terminate this Agreement by delivery of written notice to Escrow Agent and Seller, in which event (x) the Earnest Money
shall be returned to Bluerock Member; and (y) the parties hereto shall have no further rights or obligations hereunder, except
for those which expressly survive such termination. Nothing in this Section 8.2.10 shall limit Buyer’s remedies set forth
in Section 9.2 below where any Disbursement Closing Condition is not satisfied due to the default of Seller (or as applicable,
the Phase I Permit Entity or Current Owner).

 

    	-26-

     

    

 

8.2.11         Notwithstanding
the foregoing in this Section 8.2 to the contrary, if the conditions set forth in Section 8.2.6 above are not satisfied, then Closing
cannot occur hereunder unless and until such conditions have been satisfied, and if same have not been satisfied by the Disbursement
Closing Outside Date, then same shall constitute an automatic termination of this Agreement and an automatic default by Seller
hereunder for which Buyer shall be entitled to exercise its remedies set forth in Section 9.2 below.

 

8.3          Closing
Documents. At the Dry Closing (except as otherwise noted below), Seller shall deliver to Escrow Agent the following documents
(all of which shall be duly executed and witnessed by Seller, Current Owner and/or Phase I Permit Entity, as applicable, which
documents Buyer agrees to cause BR-TBR Owner to execute where required):

 

8.3.1           A
Deed, in the form attached as Exhibit "E" hereto and by this reference made a part hereof, conveying
to BR-TBR Owner all of Seller’s right, title and interest in and to the Property. The deed to be delivered by Current Owner
to Seller (the “Current Owner Deed”) shall be on the same form attached as Exhibit "E"
hereto, with only transaction-specific changes being made thereto, and same shall be executed by Current Owner and delivered into
escrow at the Dry Closing.

 

8.3.2           An
Affidavit of Title, in the form attached as Exhibit "F" hereto and by this reference made a part hereof,
same to be updated by Seller at the Disbursement Closing. Current Owner shall execute an affidavit of title on the same form attached
as Exhibit "F" hereto, with only transaction-specific changes being made thereto, and same shall be
delivered into escrow at the Dry Closing and updated by Current Owner at the Disbursement Closing.

 

8.3.3           Such
evidence as Buyer and the Title Insurer shall reasonably require as to the authority of the parties acting on behalf of Seller
to enter into this Agreement and to discharge the obligations of Seller pursuant hereto, same to be updated by Seller at the Disbursement
Closing. Similar evidence as to Current Owner shall also be provided by Current Owner at the Disbursement Closing.

 

    	-27-

     

    

 

8.3.4           Signature
pages for the Closing Statement (the Closing Statement shall be updated by the parties on the Disbursement Closing Date to reflect
updated amounts).

 

8.3.5           A
Non-Foreign Affidavit in the form attached as Exhibit "H" hereto and by this reference made a part
hereof. Current Owner shall execute a Non-Foreign Affidavit on the same form attached as Exhibit "H"
hereto, with only transaction-specific changes being made thereto, and same shall be delivered into escrow at the Dry Closing.

 

8.3.6           A
1099 certificate.

 

8.3.7           A certificate
(“Closing Certificate”), dated as of the Dry Closing Date, and to
be updated at the Disbursement Closing, and duly executed by Seller, Current Owner and Phase I Permit Entity,
in the form of Exhibit "I" attached hereto, stating that the representations
and warranties of Seller, Current Owner and Phase I Permit Entity contained in Section
7 of this Agreement are true and correct in all
material respects as of the Closing Date (with appropriate modifications
to reflect any changes therein or identifying any representation
or warranty which is not, or no longer is, true and
correct and explaining the state of facts giving rise to
the change). The inclusion of any change or exception in such certificate shall not prejudice Buyer’s rights under
this Agreement with respect to the subject matter of such change or exception, and shall not excuse Seller or Current Owner for
breaching any representation or warranty when made as of the Contract Date.

 

8.3.8           A
bill of sale and assignment for the Personalty and the Related Assets. Current Owner shall execute a similar bill of sale and assignment
for the Personalty and the Related Assets, with only transaction-specific changes being made thereto, and same shall be delivered
into escrow at the Dry Closing.

 

8.3.9           At
the Disbursement Closing, the Easements, to the extent in final form, but not otherwise.

 

8.3.10         All
documents required to satisfy the Release Condition and to cause the Existing Financing deed of trust and any Uniform Commercial
Code financing statements against Current Owner or Seller to be released from record title or terminated, as applicable (collectively,
the “Release Condition Documents”).

 

8.3.11         Such
additional documents as shall be reasonably required by Title Insurer to issue the Title Policy or complete the conveyance of the
Property contemplated by this Agreement to BR-TBR Owner, including a gap indemnity if required by the Title Insurer.

 

    	-28-

     

    

 

Simultaneously with the
Disbursement Closing and if not previously delivered to BR-TBR Owner or located at the Property, Seller will deliver to BR-TBR
Owner, outside of the Closing escrow, originals or, if originals are not in the possession or control of Current Owner, Seller
or the Property Manager, copies (if in Seller’s, Current Owner’s or Property Manager's possession or control) of (i) all
Related Assets, and (ii) all manufacturer’s warranties and manuals relating to any Personalty that is part of the Property.

 

8.4           Deliveries
at Closing.  At the applicable Closing:

 

8.4.1           Escrow
Agent shall deliver the Closing Documents to BR-TBR Owner at the Disbursement Closing, other than the Deed, the Current Owner Deed
and the Release Condition Documents, all of same to be recorded in the Recording Office (or other appropriate recording/filing
office).

 

8.4.2           Buyer
shall cause BR-TBR Owner to deliver to Escrow Agent: a counterpart to the Closing Statement at the Dry Closing; if a signatory
to the Easements, to the extent in final form, but not otherwise, the Easements at the Disbursement Closing; and a counterpart
to the bill of sale and assignment at the Dry Closing. All documents delivered by Buyer or BR-TBR Owner at the Dry Closing shall
be held in escrow by the Escrow Agent and either (i) returned to Buyer if the Disbursement Closing does not occur or (ii) released
from escrow at the Disbursement Closing on the terms set forth herein.

 

8.4.3           Buyer
shall deliver to Escrow Agent at the Disbursement Closing immediately available funds in the Bluerock Member Acquisition Contribution
Amount.

 

8.4.4           Escrow
Agent shall release the Earnest Money to the Bluerock Member upon consummation of the Disbursement Closing.

 

8.4.4           Seller
and Current Owner shall deliver such additional documents as shall be reasonably required by Title Insurer to issue the Title Policy
or complete the transfer of the Property to BR-TBR Owner.

 

    	-29-

     

    

 

8.5           Costs.

 

8.5.1       Reimbursement
of RE Taxes. Seller or Current Owner shall cause all state, county, city or other ad valorem property taxes and assessments
on the Property (“RE Taxes”) to be paid for the tax period in which the Disbursement Closing occurs, and for
any period prior to the current tax period, at or prior to the Disbursement Closing. At the Disbursement Closing, Buyer shall reimburse
Current Owner in an amount equal to BR-TBR Owner’s pro rata share of RE Taxes for those days in such tax period during which
BR-TBR Owner will own the Property (such pro rata share to be based on the Land’s acreage compared to the Original Parcel’s
total acreage if the Property is not separately assessed at Closing). Notwithstanding anything to the contrary contained herein,
if the RE Taxes are reduced for any period subsequent to the Disbursement Closing, Seller agrees that any such reduction shall
belong to Buyer and Buyer shall have no obligation to prorate the same in favor of Seller. If the RE Taxes are increased for the
tax period after Closing due to improvements to the Property made by Buyer, the increased portion of such RE Taxes shall be the
obligation of Buyer.

 

8.5.1.1        To
the extent the Property is not separately assessed for RE Taxes at the Disbursement Closing, (i) Current Owner, Seller and BR-TBR
Owner shall work cooperatively after the Disbursement Closing to cause the Property to be separately assessed for RE Taxes; (ii)
Current Owner and Seller shall remain obligated to pay all RE Taxes as and when same are owing attributable to the Property until
the Property is separately assessed for RE Taxes, with BR-TBR Owner to reimburse Current Owner or Seller, as applicable (or BR-TBR
Owner to make a contribution in anticipation of Current Owner or Seller paying the same), in either case within thirty (30) days
of demand for a proportionate share of RE Taxes based on the acreage of the Land compared to total acreage of the Current Owner’s
Retained Land and the value of the Improvements compared to the total value of all improvements on the Current Owner’s Retained
Land at the time RE Taxes are assessed. Should BR-TBR Owner fail to pay to Current Owner or Seller BR-TBR Owner’s portion
of such RE Taxes in the time period set forth above, either Current Owner or Seller shall have the right, but not the obligation,
to pay same on BR-TBR Owner’s behalf, and BR-TBR Owner shall reimburse such entity for such payments no later than thirty
(30) days after demand by such entity, and, if such reimbursement is not then timely made, then (x) such amounts shall bear interest
at a rate equal to ten percent (10%) per annum until such time as all such amounts are paid in full and (y) Current Owner and Seller
shall have the right to impose and enforce a lien against the Land for payment of such overdue amounts (and interest thereon as
aforesaid).

 

8.5.1.2        Should
Current Owner and Seller fail to pay such RE Taxes as and when same are owing, BR-TBR Owner shall have the right, but not the obligation,
to pay same on such entities’ behalf, and Seller shall reimburse BR-TBR Owner for such payments no later than thirty (30)
days after demand by BR-TBR Owner, and, if such reimbursement is not then timely made, then (x) such amounts shall bear interest
at a rate equal to ten percent (10%) per annum until such time as all such amounts are paid in full and (y) BR-TBR Owner shall
have the right to impose and enforce a lien against Current Owner’s Retained Land for payment of such overdue amounts (and
interest thereon as aforesaid).

 

    	-30-

     

    

 

8.5.2           Other
Closing Costs. At the Disbursement Closing, Seller and Buyer shall pay their own respective costs incurred with respect to
the consummation of the contribution of the Property as contemplated herein, including, without limitation, attorneys’ fees.
Notwithstanding the foregoing, it is expressly agreed that Seller shall pay any and all transfer taxes incident to the conveyance
of title to the Property to BR-TBR Owner and the cost of the Survey, and Buyer shall cause BR-TBR Owner to pay the cost of recording
the Deed, the costs of examination of title to the Property and owner's title insurance therefor, any mortgage recording or intangibles
tax and all other taxes, costs, fees or expenses relating to BR-TBR Owner’s financing of the Property. All costs associated
with recording the Subdivision Plat (and obtaining the City’s approval to record same) shall be borne by Current Owner. All
costs associated with preparing and recording the deed from Current Owner to Seller for the Property shall be borne by Seller.
Sanitary sewer taxes and other utility charges, if any, with respect to the Property shall be prorated between Seller and Buyer
at the Disbursement Closing. All expenses associated with obtaining the release of the Existing Financing and obtaining and recording
the Release Condition Documents shall be borne by Seller. None of the expenditures made by Seller pursuant to this Section 8.5
shall be credited to Seller’s Capital Account under the Venture Agreement unless approved by Bluerock Member.

 

8.6          Seller’s
Closing Conditions.

 

8.6.1           Intentionally
Omitted.

 

8.6.2           The
Subdivision Conditions and the Required Zoning Conditions shall have been satisfied by Current Owner and the Phase I Permit Entity.

 

8.6.3           Current
Owner shall have conveyed the Property to Seller as of the Disbursement Closing, subject only to the Permitted Title Exceptions
and the Existing Financing (but only as to the Bluerock Member Acquisition Contribution Amount, and no greater amount).

 

8.6.4           If
the closing condition set forth in Section 8.6.1 is not met at the Disbursement Closing, Seller may, subject to Buyer’s rights
under Section 8.2 above, (a) waive such condition and proceed to Closing on the Disbursement Closing Date, or (b) extend (by written
notice delivered prior to the then scheduled Disbursement Closing Date) the Disbursement Closing Date for one (1) week for four
(4) successive periods (i.e., the total extension will not exceed four (4) weeks); provided, however, in no event shall the Disbursement
Closing be extended beyond the Disbursement Closing Outside Date. If Seller (or Buyer pursuant to Section 8.2 above) has extended
the Disbursement Closing Date but the closing condition set forth in Section 8.6.1 has not been satisfied by the extended Disbursement
Closing Date, then Seller may (a) waive such condition and proceed to the Disbursement Closing or (b) terminate this Agreement
by delivery of written notice to Escrow Agent and Buyer, in which event (x) the Earnest Money shall be returned to Bluerock Member
and (y) the parties hereto shall have no further rights or obligations hereunder, except for those which expressly survive such
termination. Nothing in this Section 8.6.4 shall limit Seller’s remedies set forth in Section 9.1 below where the closing
condition set forth in Section 8.6.1 is not satisfied due solely to the default of Buyer.

 

    	-31-

     

    

 

8.6.5           If
the closing conditions set forth in Section 8.6.2 above are not met at the Disbursement Closing, Seller have no right to terminate
this Agreement as a result thereof, but Seller may, subject to Buyer’s rights under Section 8.2 above, (a) waive such condition
and proceed to the Disbursement Closing on the Disbursement Closing Date (unless the unsatisfied condition is the recordation of
the Subdivision Plat, in which case the Disbursement Closing shall occur on the fifth (5) Business Day following Buyer’s
waiver of such condition) or (b) extend (by written notice delivered prior to the then scheduled Disbursement Closing Date) the
Disbursement Closing Date for one (1) week for four (4) successive periods (i.e., the total extension will not exceed four (4)
weeks) so as to allow additional time to satisfy such condition; provided, however, in no event shall the Disbursement Closing
be extended beyond the Disbursement Closing Outside Date. If Seller (or Buyer pursuant to Section 8.2 above) has extended the Disbursement
Closing Date but the closing conditions set forth in Section 8.6.2 above have not been satisfied by the earlier of the extended
Disbursement Closing Date or the Disbursement Closing Outside Date, then Seller may (a) waive such condition and proceed to the
Disbursement Closing or (b) terminate this Agreement by delivery of written notice to Escrow Agent and Buyer, in which event the
Earnest Money shall be returned to Bluerock Member and thereafter the parties hereto shall have no further rights or obligations
hereunder, except for those which expressly survive such termination. Nothing in this Section 8.6.5 shall limit Seller’s
remedies set forth in Section 9.1 below where the closing conditions set forth in Section 8.6.2 are not satisfied due solely to
the default of Buyer.

 

8.6.6           In
the event of any termination of this Agreement pursuant to Sections 8.2.9, 8.2.10, 8.2.11, 8.6.4 or 8.6.5 above, absent a default
by Buyer hereunder, the Right of First Refusal shall be applicable (and shall survive the termination of this Agreement) (same
being incorporated herein by this reference as if it were set out in full in this Agreement), and Seller and Current Owner hereby
covenant and agree to honor same.

 

8.6.7           Current
Owner acknowledges and agrees that no additional conditions exist that will need to be satisfied in order to release the Closing
Documents from escrow at the Disbursement Closing or as a prerequisite to Current Owner’s obligation to complete the conveyance
of the Property to Seller aside from the Disbursement Closing Conditions.

 

    	-32-

     

    

 

Section 9.  Default
and Remedies.

 

9.1          Buyer’s
Default. In the event of a default by Buyer under the terms of this Agreement, Escrow Agent shall disburse the Earnest Money
to Current Owner (and not to Seller), and Seller and Current Owner shall be entitled, as their sole and exclusive remedy hereunder,
to have Current Owner retain the Earnest Money as full liquidated damages for such default of Buyer, whereupon this Agreement shall
terminate and the parties shall have no further rights or obligations hereunder, except for those which expressly survive any such
termination. It is hereby agreed that Seller’s and Current Owner’s damages in the event of a default by Buyer hereunder
are uncertain and difficult to ascertain, and that the Earnest Money constitutes a reasonable liquidation of such damages and is
intended not as a penalty, but as full liquidated damages. Buyer covenants not to bring any action or suit challenging the amount
of liquidated damages provided hereunder in the event of such default. Notwithstanding anything to the contrary contained herein,
this provision shall in no way affect or impair Seller’s or Current Owner’s right of recovery under any indemnity given
by Buyer in favor of Seller or Current Owner under this Agreement. This provision shall expressly survive the termination of this
Agreement.

 

9.2          Seller’s
Default. If the contribution of the Property as contemplated hereunder is not consummated due to a default by Seller, Current
Owner or the Phase I Permit Entity hereunder (including, but not limited to a breach of any representation, warranty or covenant
by Seller, Current Owner or the Phase I Permit Entity contained herein), then Buyer shall be entitled, as its sole remedy for such
default, either (a) to terminate the Agreement, in which case Buyer shall be entitled to receive (i) from Seller and/or Current
Owner, jointly and severally (and to bring an action against such entities if they fail to comply) for reimbursement of Buyer’s
direct third party out-of-pocket costs and expenses actually incurred in connection with this Agreement (collectively, “Buyer’s
Expenses”), including reasonable attorneys’ fees, and the inspection, acquisition and financing of the Property,
including, without limitation, any forfeited good faith and/or rate lock deposits, in a maximum amount not to exceed an aggregate
of Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00), plus (ii) the return of the Earnest Money to Bluerock Member, payment
of both of which shall operate to terminate this Agreement and release Seller, Current Owner and the Phase I Permit Entity from
any and all further liability hereunder other than with respect to the Right of First Refusal (same shall be applicable and shall
survive the termination of this Agreement, and Current Owner covenants and agrees to honor same under such circumstances), (b)
to waive the default by Seller or Current Owner and close the contribution notwithstanding the default by Seller or Current Owner,
or (c) to enforce specific performance of Seller’s and Current Owner’s obligations to execute and deliver the
documents and perform their respective obligations as contained hereunder (for the sake of clarity, Buyer shall be entitled to
pursue a claim for specific performance against Current Owner for the direct conveyance of the Property to Buyer, and/or a claim
for specific performance of Current Owner’s stated obligation to convey the Property to Seller), provided such suit for specific
performance be brought within three (3) months of the Disbursement Closing Outside Date or shall otherwise be deemed void; provided,
however, in the event specific performance is unavailable as a remedy to Buyer because of Seller’s or Current Owner’s
intentional acts (such as conveying the Property to a third party prior to Closing), then Buyer shall be entitled to bring an action
against Seller and Current Owner, jointly and severally, for its actual damages (i.e. for the benefit of Buyer’s bargain).
Notwithstanding anything to the contrary contained herein, this Section 9.2 shall in no way affect or impair Buyer’s
right of recovery under any indemnity expressly given by Seller or Current Owner in favor of Buyer under this Agreement or Buyer’s
ability to recover amounts due to Buyer or BR-TBR Owner under other agreements relating to the Property, including, without limitation,
the Cost Share Agreement (as amended by the Cost-Share Agreement Amendment) or the Venture Agreement. This provision shall expressly
survive the termination of this Agreement.

 

    	-33-

     

    

 

9.3          Misrepresentation
or Breach by or on Behalf of Seller. In the event of a misrepresentation or breach of a warranty or covenant by Seller, Current
Owner or the Phase I Permit Entity, which is first discovered by Buyer during the Survival Period, Buyer shall notify Seller and
Current Owner, in writing, of the specifics of such default, and Buyer’s sole recourse shall be to file an action or proceeding
against Seller or Current Owner, jointly and severally, for the actual damages (to the exclusion of any consequential or punitive
damages) suffered by Buyer as a direct result of such default. No action or proceeding thereon of any kind whatsoever shall be
valid or enforceable, at law or in equity, if not commenced in the appropriate jurisdiction within the Survival Period. The representations
and warranties of Seller and Current Owner set forth herein, as same may be updated by the Closing Certificate, shall survive Closing
for the Survival Period.  Except with respect to a fraudulent misrepresentation or other default by Seller or Current Owner
for which the Agreement is terminated under Section 9.2, in which event Section 9.2 shall apply, no claim for a breach of any representation
or warranty of Seller or Current Owner shall be actionable or payable (a) if the breach in question results from or is based on
a condition, state of facts or other matter which was known to Buyer prior to the Disbursement Closing, (b) unless the valid claims
for all such breaches collectively aggregate Twenty-Five Thousand and No/100 Dollars ($25,000.00) or more, in which event the full
amount of such valid claims shall be actionable, up to but not exceeding the amount of the Cap (as defined below), and (c) unless
written notice containing a description of the specific nature of such breach shall have been given by Buyer to Seller and Current
Owner prior to the expiration of the Survival Period and an action shall have been commenced by Buyer against Seller or Current
Owner within the Survival Period.  In the event of any breach by Seller or Current Owner of its respective representations,
warranties or covenants contained herein which Buyer first discovers after Closing and provides timely notice as aforesaid, Seller
and Current Owner, jointly and severally, shall indemnify and hold Buyer harmless from and against any and all loss, damage, cost
or expense resulting therefrom up to but not exceeding the Cap.  Seller and Current Owner shall not be liable to Buyer to
the extent Buyer’s claim is satisfied from any insurance policy. As used herein, the term "Cap" shall mean
the total aggregate amount of Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00).  In no event shall Seller’s
and Current Owner’s aggregate liability to Buyer for any and all breaches of any representation or warranty of such entities
in this Agreement (as same may be updated in the Closing Certificate) exceed the amount of the Cap, and Buyer hereby waives and
disclaims any right to damages or compensation for any and all such breaches in excess of the Cap; provided, however, nothing herein
shall limit Buyer’s rights or remedies under Section 9.2 above in connection with Buyer exercising its rights pursuant to
such Section 9.2 (as contemplated in the fourth sentence of this Section 9.3). 

 

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Section 10. Condemnation.

 

10.1        Condemnation.
If, prior to the Disbursement Closing, all or any material part (including, without limitation, any portion thereof which would
result in increased design costs, any diminution in unit count, access or overall layout with regard to the Proposed Development)
of any improvement or acreage of the Property is subject to a bona fide threat of condemnation by a body having the power of eminent
domain, or is taken by eminent domain or condemnation, or sale in lieu thereof, then Buyer, by written notice to Seller, to be
received within thirty (30) calendar days of Buyer’s receiving Seller’s notice of such threat, condemnation or taking,
or by the Disbursement Closing Date, whichever is earlier, may elect to terminate this Agreement. If this Agreement is so terminated,
Bluerock Member shall be entitled to receive a refund of the Earnest Money from Escrow Agent, whereupon the parties shall have
no further rights or obligations hereunder, except for those which expressly survive any such termination.

 

10.2        Awards.
If Buyer does not elect to terminate this Agreement following any notice of a threat of taking or taking by condemnation, as provided
above, this Agreement shall remain in full force and effect and the conveyance of the Property contemplated herein, less any interest
taken by eminent domain or condemnation, or sale in lieu thereof, shall be effected with no further adjustments. At the Disbursement
Closing, Seller and Current Owner shall each assign, transfer and set over to Buyer all of their respective right, title and interest
in and to any awards, payments or proceeds for the actual value of the property subject to condemnation, up to but not in excess
of $5,469,200.00, that have been or may thereafter be made for any such taking or sale in lieu thereof, to the extent such awards,
payments or proceeds shall not have theretofore been used for restoration of the Property pursuant to a plan of restoration approved
in writing by Buyer. To the extent Buyer elects to not terminate this Agreement pursuant to Section 10.1, neither Current Owner
nor Seller shall accept, settle or finalize any award with regard to any taking without Buyer’s prior written consent.

 

    	-35-

     

    

 

Section 11.
Assignment.

 

11.1        Assignment
by Buyer. Except as herein expressly provided, Buyer shall not, without the prior written consent of Seller, which Seller may
withhold in its sole and absolute discretion, assign any of Buyer’s rights hereunder or any part thereof to any person, firm,
partnership, corporation or other entity. If any assignment is made with the consent of Seller, then the sale contemplated by this
Agreement shall be consummated in the name of, and by and through the authorized officials of, any such assignee but Buyer shall
remain liable hereunder. Notwithstanding the foregoing, Buyer shall have the right to assign this Agreement without Seller's consent
to one (1) or more Affiliates of Buyer or Bluerock. Buyer shall give Seller written notice of the assignment of this Agreement
to the Affiliate and shall provide Seller with a copy of the fully-executed assignment agreement. The Affiliate shall assume the
obligations of Buyer under this Agreement, provided, however, that such assignment shall not relieve Buyer of its obligations under
this Agreement unless and until Closing occurs.

 

11.2        Assignment
by Seller or Current Owner.

 

11.2.1         From
and after the Contract Date, Seller shall not, without the prior written consent of Buyer, which consent Buyer may withhold in
its sole discretion, assign, transfer, convey, hypothecate or otherwise directly or indirectly dispose of all or any part of its
right, title and interest in the Property.

 

11.2.2         From
and after the Contract Date, Current Owner shall not, without the prior written consent of Buyer, which consent Buyer may withhold
in its sole discretion, assign, transfer, convey, hypothecate or otherwise directly or indirectly dispose of all or any part of
its right, title and interest in the Property, other than the contribution and conveyance of the Property contemplated under the
Seller Operating Agreement and this Agreement.

 

Section 12.
Cooperation with Future Development/Sharing of Amenities.

 

12.1        Current
Owner and the Phase I Permit Holder hereby covenant and agree that each shall cooperate, fully and in good faith and at their own
expense (provided that any application or other fees attributable solely to the Property shall be paid by Buyer and not Current
Owner), with Buyer after the Disbursement Closing to facilitate the Proposed Development, including, without limitation, taking
the following actions as and when requested by Buyer or required by the City:

 

    	-36-

     

    

 

		·	Assist Buyer in completing any requirements imposed under the Original Parcel Subdivision that
also involve Current Owner’s Retained Land adjoining the Property, including dedicating to the City any land or easements
required as part of the Original Parcel Subdivision and recording any declarations or cross access easements associated therewith;

		·	Complete infrastructure construction plans for shared stormwater devices (if any) and have same
approved by the City, construct any required infrastructure items, the cost thereof to be prorated between the parties as specified
in the REA, and make any required payments to the City’s stormwater facility replacement fund;

		·	Assist Buyer in completing any requirements imposed under the Pending Zoning Case or City Zoning
Ordinance No. (2013) 238ZC693, and any amendments thereto (“Zoning Ordinance”), that also involve Current Owner’s
Retained Land, including dedicating to the City any easements required as part of the Pending Zoning Case or the Zoning Ordinance
and recording any declarations or restrictive covenants associated therewith;

		·	Perform all obligations under Condition #10 of the Zoning Ordinance (Current Owner hereby confirms
that Conditions #6 & #7 of the Zoning Ordinance have been completed, and Buyer shall not be obligated to pay any portion of
the contribution to the City referenced in such Condition #7);

		·	Grant easements over Current Owner’s Retained Land as contemplated by the REA for access
to Lake Boone Trail or provision of utility services to the Land or to comply with applicable drainage/stormwater disposal requirements.

 

12.2        Current
Owner represents and warrants that 245 dwelling units shall be the allowable residential density of the Property, and covenants
that Current Owner shall not allow development on Current Owner’s Retained Land that would reduce such stated allowable residential
density of the Property.

 

12.3        The
provisions of this Section 12 shall survive Closing for an indefinite period and shall be enforceable by Buyer by all available
legal remedies. Buyer shall be entitled to recover its attorneys’ fees and litigation costs in any successful action to enforce
Current Owner’s or the Phase I Permit Holder’s requirements under this Section 12.

 

Section 13.
Brokerage Commissions. Current Owner, Buyer and Seller each warrant and represent to the others that it has not employed
a real estate broker or agent in connection with the transactions contemplated hereby. Each party agrees to indemnify and hold
the others harmless from any loss or cost suffered or incurred by it as a result of such other entity’s representation herein
being untrue. This Section 13 shall expressly survive the Closing hereunder.

 

    	-37-

     

    

 

Section 14. Notices.

 

Wherever any notice
or other communication is required or permitted hereunder, such notice or other communication shall be in writing and shall be
delivered by hand, by nationally-recognized overnight express delivery service, by U. S. registered or certified mail, return
receipt requested, postage prepaid, or by electronic transfer (by e-mail of a letter in “pdf” format) to the addresses
set out below or at such other addresses as are specified by written notice delivered in accordance herewith:

 

	Seller:	tribridge co-invest 29, llc
	 	c/o TriBridge Residential
	 	1575 Northside Drive NW
	 	Suite 200, Building 100
	 	Atlanta, GA 30318
	 	Attn:  Bobby West
	 	Telephone: 404-784-3454
	 	E-mail:  bobbyw@tribridgeresidential.com
	 	 
	With a copy to:	Nelson Mullins Riley &
	 	Scarborough LLP
	 	201 17th Street, Suite 1700
	 	Atlanta, Georgia  30363
	 	Attn:  Eric R. Wilensky, Esq.
	 	Telephone:  404-322-6469
	 	E-mail:  eric.wilensky@nelsonmullins.com
	 	 
	Current Owner:	TBR LAKE BOONE OWNER, LLC, AS

 TRUSTEE UNDER THE TBR LAKE BOONE

 TRUST AGREEMENT DATED DECEMBER 20, 2012
	 	c/o TriBridge Residential
	 	1575 Northside Drive NW
	 	Suite 200, Building 100
	 	Atlanta, GA 30318
	 	Attn:  Bobby West
	 	Telephone: 404-784-3454
	 	E-mail:  bobbyw@tribridgeresidential.com

 

    	-38-

     

    

 

	With a copy to:	Nelson Mullins Riley &
	 	Scarborough LLP
	 	201 17th Street, Suite 1700
	 	Atlanta, Georgia  30363
	 	Attn:  Eric R. Wilensky, Esq.
	 	Telephone:  404-322-6469
	 	E-mail:  eric.wilensky@nelsonmullins.com
	 	 
	Buyer:	Br-TBR Lake boone venture, llc
	 	1575 Northside Drive NW
	 	Suite 200, Building 100
	 	Atlanta, GA  30318
	 	Attn:  Bobby West
	 	Telephone: 404-784-3454
	 	E-mail:  bobbyw@tribridgeresidential.com
	 	 
	With a copy to:	Nelson Mullins Riley &
	 	Scarborough LLP
	 	201 17th Street, Suite 1700
	 	Atlanta, Georgia  30363
	 	Attn:  Eric R. Wilensky, Esq.
	 	Telephone:  404-322-6469
	 	E-mail:  eric.wilensky@nelsonmullins.com
	 	 
	With a copy to:	BLUEROCK REAL ESTATE, L.L.C.
	 	712 Fifth Avenue, 9th Floor
	 	New York, New York  10019
	 	Attn:  Michael Konig, Esq.
	 	Telephone:  908-415-8869
	 	E-mail:  mkonig@bluerockre.com

 

Any notice or other
communication mailed as hereinabove provided shall be deemed effectively given (a) on the date of delivery, if delivered by hand;
(b) on the date mailed if sent by overnight express delivery or if sent by U.S. mail; or (c) on the date of transmission, if sent
by electronic transfer device. If any notice mailed is properly addressed but returned for any reason, such notice shall be deemed
to be effective notice and to be given on the date of mailing. Any notice sent by the law firm representing a party hereto, shall
be deemed to be a notice sent by the party represented by said law firm.

 

    	-39-

     

    

 

Section 15. Miscellaneous.

 

15.1        Governing
Law; Headings; Rules of Construction. This Agreement shall be governed by and construed in accordance with the internal laws
of the State of North Carolina, without reference to the conflicts of laws or choice of law provisions thereof. The titles of sections
and subsections herein have been inserted as a matter of convenience of reference only and shall not control or affect the meaning
or construction of any of the terms or provisions herein. All references herein to the singular shall include the plural, and vice
versa. The parties agree that this Agreement is the result of negotiation by the parties, each of whom was represented by counsel,
and thus, this Agreement shall not be construed against the maker thereof. Each party hereby covenants that it has the power to
enter into this Agreement, to perform its obligations under this Agreement and to complete the contribution of the Property as
outlined herein. Each party covenants that it has taken all action necessary to authorize the execution and delivery of this Agreement,
the performance by it of its obligations under this Agreement and the completion of the contribution of the Property as outlined
herein. Each party covenants that the person signing this Agreement on its behalf is authorized to do so.

 

15.2        No
Waiver. Neither the failure of either party to exercise any power given such party hereunder or to insist upon strict compliance
by the other party with its obligations hereunder, nor any custom or practice of the parties at variance with the terms hereof
shall constitute a waiver of either party's right to demand exact compliance with the terms hereof.

 

15.3        Entire
Agreement. This Agreement and the documents and agreements incorporated herein (including the Venture Agreement and the Cost-Share
Agreement (as amended by the Cost-Share Agreement Amendment)) contain the entire agreement of the parties hereto with respect to
the Property, and no representations, inducements, promises or agreements, oral or otherwise, between the parties not embodied
herein or incorporated herein by reference shall be of any force or effect. Except as specifically provided herein to the contrary,
all disclaimers, waivers, releases, covenants, undertakings and obligations under this Agreement will survive the Disbursement
Closing, and all representations and warranties contained in this Agreement will survive the Disbursement Closing for the Survival
Period, and will not be merged into the Deed or other documents delivered pursuant to this Agreement.

 

15.4        Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, legal representatives, successors and assigns (subject to Section 11 above).

 

    	-40-

     

    

 

15.5        Amendments.
No amendment to this Agreement shall be binding on any of the parties hereto unless such amendment is in writing and is executed
by the party against whom enforcement of such amendment is sought.

 

15.6        Possession.
Vacant possession of the Property shall be granted by Seller to BR-TBR Owner no later than the Disbursement Closing Date, subject
only to the Permitted Title Exceptions.

 

15.7        Date
For Performance. If the time period or date by which any right, option or election provided under this Agreement must be exercised,
or by which any act required hereunder must be performed, or by which the Closing must be held, expires on a Saturday, Sunday or
legal or bank holiday in the State where the Land is located or of the Federal Government, then such time period shall be automatically
extended through the close of business on the next regularly scheduled Business Day.

 

15.8        Recording.
Seller and Buyer agree that they will not record this Agreement and that they will not record a short form of this Agreement, except
that Buyer or BR-TBR Owner may record a lis pendens in connection with a suit for special performance timely brought pursuant to
Section 9.2.

 

15.9        Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which,
when taken together, shall constitute but one and the same instrument.

 

15.10      Time
of the Essence. Time shall be of the essence of this Agreement and each and every term and condition hereof.

 

15.11      Severability.
This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances,
rules and regulations, and is intended, and shall for all purposes be deemed to be, a single, integrated document setting forth
all of the agreements and understandings of the parties hereto, and superseding all prior negotiations, understandings and agreements
of such parties. If any term or provision of this Agreement or the application thereof to any person or circumstance shall for
any reason and to any extent be held to be invalid or unenforceable, then such term or provision shall be ignored, and to the maximum
extent possible, this Agreement shall continue in full force and effect, but without giving effect to such term or provision.

 

15.12      No
Offer Until Executed. The submission of this Agreement to Buyer for examination or consideration does not constitute an offer
to contribute the Property, and this Agreement shall become effective, if at all, only upon the full execution and delivery thereof
by Buyer, Seller, Current Owner, Phase I Permit Entity, TriBridge and Bluerock Member.

 

    	-41-

     

    

 

15.13      Cooperation
with Exchange. Buyer agrees to reasonably cooperate with Current Owner and Seller by executing such documents or taking such
action as such entities reasonably request in connection with any tax deferred exchange pursuant to Section 1031 of the Internal
Revenue Code of 1986, as amended, provided that (i) the transaction contemplated by this Agreement shall not be conditioned upon
completion of such exchange; (ii) neither Buyer nor BR-TBR Owner shall be required to take title to any real property in connection
with any such exchange; and (iii) neither Buyer nor BR-TBR Owner shall incur any costs or liability by reason of any such exchange.
Current Owner and Seller agree to reasonably cooperate with Buyer by executing such documents or taking such action as Buyer (or
BR-TBR Owner) reasonably requests in connection with any tax deferred exchange pursuant to Section 1031 of the Internal Revenue
Code of 1986, as amended, provided that (i) the transaction contemplated by this Agreement shall not be conditioned upon completion
of such exchange; (ii) Seller shall not be required to take title to any real property in connection with any such exchange; and
(iii) Current Owner and Seller shall not incur any costs or liability by reason of any such exchange.

 

15.14      Attorneys’
Fees. Should either party employ attorneys to enforce any of the provisions hereof, the party against whom any final judgment
is entered agrees to pay the prevailing party all reasonable costs, charges, and expenses, including attorneys’ fees, expended
or incurred in connection therewith.

 

15.15      Further
Cooperation. In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered by
either party at Closing, each party agrees to perform, execute and deliver, but without any obligation to incur any additional
liability or expense, on or after the Closing any further deliveries and assurances as may be reasonably necessary to consummate
the transactions contemplated hereby or to further perfect the contribution and conveyance of the Property to BR-TBR Owner.

 

15.16      Permits and
Approvals. In connection with the Proposed Development upon the Property, TriBridge and the Phase I Permit Entity have made
application for certain zoning approvals and land use permits that Buyer and BR-TBR Owner will need to complete the Proposed Development
upon the Property. The table below contains the specific permit or approval and the party who made application for the same (or
if having made application, has been granted the same) (collectively, the “Existing/Pending Approvals”:

 

    	-42-

     

    

 

	Permit/Approval/Application	 	Party who has made

application/secured approval	 	Approval Affects
	Preliminary Subdivision Approval	 	TriBridge	 	Original Parcel
	Pending Zoning Case (Site Plan Approval)	 	Phase I Permit Entity	 	Lots 1-6
	Pending Infrastructure Permit	 	Phase I Permit Entity	 	Lots 1-6

 

TriBridge and the Phase
I Permit Entity join in the execution of this Agreement to evidence their agreement to cooperate with Buyer and BR-TBR Owner following
the Closing Date to allow BR-TBR Owner to avail itself of the Existing/Pending Approvals. To the extent an Existing/Pending Approval
is assignable and only affects the Land (i.e. rather than an area that includes the Land as well as other portions of Current Owner’s
Retained Land), then TriBridge or the Phase I Permit Entity, as applicable, shall assign the same to BR-TBR Owner at the Disbursement
Closing. To the extent an Existing/Pending Approval is not assignable or otherwise affects an area that includes the Land as well
as other portions of Current Owner’s Retained Land, then TriBridge or the Phase I Permit Entity, as applicable, shall take
all steps necessary (at such entity’s sole expense) to ensure that BR-TBR Owner may avail itself of such Existing/Pending
Approval after the Disbursement Closing in connection with the Proposed Development of the Property, but shall have no obligation
to assign to BR-TBR Owner such Existing/Pending Approval. This Section 15.16 shall survive the Closing for an indefinite period
and shall be enforceable by Buyer or BR-TBR Owner by all available legal remedies. Buyer shall be entitled to recover its attorneys’
fees and litigation costs in any successful action to enforce TriBridge’s or the Phase I Permit Holder’s requirements
under this Section 15.16.

 

15.17      Joint
and Several Liability. Seller and Current Owner hereby acknowledge and agree that Current Owner and Seller shall be jointly
and severally liable for the indemnities, obligations and liabilities under and pursuant to Sections 7.7, 7.8, 9.2, 9.3 and 13
hereof.

 

[SIGNATURES PROVIDED ON THE FOLLOWING PAGES]

 

    	-43-

     

    

 

IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be executed and sealed by its authorized signatory, effective as of the
Contract Date.

 

	 	SELLER:
	 	 
	 	TRIBRIDGE CO-INVEST 29, LLC,
	 	a Georgia limited liability company
	 	 	 
	 	By:	TriBridge Investments II, LLC, a Georgia limited liability company, its Manager and Class B Member
	 	 	 
	 	 	By:	/s/ Robert H. West
	 	 	 	Name:	Robert H. West
	 	 	 	Title:	Authorized Signatory

 

Current Owner hereby
joins in the execution of this Agreement with respect to its representations and warranties set forth in Section 7 (and elsewhere)
of this Agreement, and to evidence its agreement to perform its covenants and obligations as identified in the Agreement.

 

	 	TBR LAKE BOONE OWNER, LLC,
	 	A GEORGIA LIMITED LIABILITY COMPANY, AS TRUSTEE UNDER THE TBR LAKE BOONE TRUST AGREEMENT, DATED DECEMBER 20, 2012
	 	 	 
	 	By:	TriBridge Co-Invest 10, LLC,
	 	 	a Georgia limited liability company, its Sole Member
	 	 	 
	 	 	By:	JLC Southeast Investments, LLC, as its Manager
	 	 	 
	 	 	By:	/s/ Robert H. West
	 	 	Name:	Robert H. West
	 	 	Title:	Authorized Signatory

 

     

     

    

 

	 	BUYER:
	 	 
	 	BR-TBR LAKE BOONE NC VENTURE, LLC,

 a Delaware limited liability company
	 	 
	 	By:	BR LAKE BOONE JV MEMBER, LLC,  a Delaware limited liability company.  its co-Manager
	 	 
	 	 	By:	Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company, its Manager
	 	 	 	 
	 	 	 	By:	BR SOIF II Manager, LLC, a Delaware limited liability company, its Manager
	 	 	 	 	 
	 	 	 	 	By:	/s/ Michael Konig
	 	 	 	 	Name:	Michael Konig
	 	 	 	 	Title:	Authorized Signatory
	 	 	 	 
	 	By:	TRIBRIDGE CO-INVEST 29, LLC, a Georgia limited liability company, its co-Manager
	 	 
	 	 	By:	TriBridge Investments II, LLC, a Georgia limited liability company, its Manager and Class B Member
	 	 	 	 
	 	 	 	By:	/s/ Robert H. West
	 	 	 	Name:	Robert West
	 	 	 	Title:	Authorized Signatory

 

     

     

    

 

Bluerock Member hereby
joins in the execution of this Agreement with respect to its rights and obligations hereunder as to the Earnest Money.

 

	 	BR LAKE BOONE JV MEMBER, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company, its Manager
	 	 	 
	 	 	By:	BR SOIF II Manager, LLC, a Delaware limited liability company, its Manager
	 	 	 
	 	 	 	By:	/s/ Michael Konig
	 	 	 	Name:	Michael Konig
	 	 	 	Title:	Authorized Signatory

 

     

     

    

 

TriBridge and the Phase I Permit Entity
hereby join in the execution of this Agreement to evidence their agreement to perform their respective covenants and obligations
as identified in the Agreement, including, without limitation, those set forth in Sections 7.17, 7.18, 12 and 15.16 herein.

 

	TRIBRIDGE RESIDENTIAL, LLC,	 
	a Georgia limited liability company	 
	 	 	 
	By:	/s/ Robert H. West	 
	Name:	Robert West	 
	Title:	Authorized Signatory	 
	 	 	 
	LBT APARTMENT PHASE I OWNER, LLC,	 
	a North Carolina limited liability company	 
	 	 	 
	By:	TriBridge Residential, LLC, a Georgia limited liability company, its sole member	 
	 	 	 
	 	By:	/s/ Robert H. West	 
	 	Name:	Robert West	 
	 	Title:	Authorized Signatory	 

 

     

     

    

 

EXHIBIT A

 

LEGAL DESCRIPTION OF ORIGINAL PARCEL

 

     

     

    

 

EXHIBIT B-1

 

PRELIMINARY SUBDIVISION PLAT

 

     

     

    

 

EXHIBIT B-2

 

METES AND BOUNDS LEGAL DESCRIPTION
OF LOTS 5 & 6

 

LOT 5

 

Beginning at the intersection of the common
property line of Lot 2 and Lot 5 and the proposed western right of way of Landmark drive for the Point of Beginning; thence with
said common property line North 90°00'00" West a distance of 206.82 feet to a point; thence South 42°51'56" West
a distance of 53.07 feet to a point; thence South 42°51'56" West a distance of 11.70 feet to a point; thence South 90°00'00"
West a distance of 167.04 feet to a point; thence North 90°00'00" West a distance of 148.75 feet to a point on the common
property line of Rex Hospital, Inc.; thence with said common property line North 02°02'27" West a distance of 123.67 feet
to a point; thence North 01°27'47" East a distance of 67.99 feet to a point; thence North 01°46'30" East a distance
of 229.73 feet to a point; thence leaving said common line North 89°41'51" East a distance of 191.82 feet to a point;
thence North 60°48'38" East a distance of 5.84 feet to a point; thence North 73°01'16" East a distance of 6.77
feet to a point; thence North 89°12'09" East a distance of 3.91 feet to a point; thence North 88°22'36" East
a distance of 2.52 feet to a point; thence North 72°01'11" East a distance of 7.90 feet to a point; thence North 71°41'16"
East a distance of 2.53 feet to a point; thence North 61°01'39" East a distance of 26.49 feet to a point; thence North
37°58'10" East a distance of 13.14 feet to a point; thence North 44°40'07" East a distance of 1.30 feet to a
point; thence North 66°56'39" East a distance of 8.53 feet to a point; thence North 88°37'38" East a distance
of 19.21 feet to a point; thence North 59°35'06" East a distance of 43.12 feet to a point; thence North 88°42'05"
East a distance of 29.61 feet to a point; thence North 69°11'56" East a distance of 11.97 feet to a point; thence North
58°48'14" East a distance of 6.44 feet to a point; thence North 54°24'57" East a distance of 8.12 feet to a point;
thence North 60°36'33" East a distance of 32.51 feet to a point; thence North 38°25'21" East a distance of 4.45
feet to a point; thence North 24°19'31" East a distance of 7.67 feet to a point; thence South 83°46'51" East
a distance of 9.55 feet to a point; thence North 83°26'13" East a distance of 21.80 feet to a point; thence North 82°45'29"
East a distance of 16.12 feet to a point; thence North 74°15'03" East a distance of 2.78 feet to a point; thence North
51°04'07" East a distance of 15.01 feet to a point; thence North 89°50'43" East a distance of 12.92 feet to a
point; thence South 54°59'54" East a distance of 17.05 feet to a point; thence South 18°25'25" East a distance
of 5.90 feet to a point; thence South 05°29'37" West a distance of 8.08 feet to a point; thence South 43°32'19"
East a distance of 7.58 feet to a point; thence North 77°37'40" East a distance of 3.09 feet to a point; thence North
70°21'51" East a distance of 11.09 feet to a point; thence North 81°04'41" East a distance of 12.50 feet to a
point; thence North 76°21'01" East a distance of 18.23 feet to a point; thence North 79°21'31" East a distance
of 39.37 feet to a point; thence South 02°48'05" West a distance of 58.07 feet to a point; thence South 87°13'57"
East a distance of 5.00 feet to a point on the proposed western right of way of Landmark Drive; thence with said proposed right
of way South 02°46'03" West a distance of 416.99 feet to the Point of Beginning, containing 258,505 square feet or 5.93
acres.

 

     

     

    

 

LOT 6

 

Beginning at the intersection of the common
property line of Lot 1 and Lot 6 and the proposed eastern right of way of Landmark Drive for the Point of Beginning; thence with
said proposed right of way North 02°46'03" East a distance of 344.92 feet to a point; thence leaving said proposed right
South 87°13'57" East a distance of 5.00 feet to a point; thence North 02°46'03" East a distance of 70.52 feet
to a point; thence South 87°00'00" East a distance of 139.41 feet to a point on the common property line of Meredith Partners
LLC.; thence with said common property line South 02°47'30" West a distance of 415.46 feet to a point on the common property
line of Lot 1; thence with said common property line North 87°00'00" West a distance of 144.24 feet to the Point of Beginning,
containing 59,607 square feet or 1.37 acres.

 

     

     

    

 

EXHIBIT B-3

 

SUBDIVISION APPROVAL FROM CITY OF
RALEIGH

 

     

     

    

 

EXHIBIT C

 

FORM OF EARNEST MONEY AND DOCUMENT
ESCROW AGREEMENT

 

See attached.

 

     

     

    

 

EXHIBIT D

 

RESERVED

 

     

     

    

 

EXHIBIT E

 

FORM OF DEED

 

 

 

	Excise
Tax  $_____ 	Recording
Time, Book and Page

 

Parcel Identifier No. _____________

Verified by __________ County on the ___
 day of  , 2015; By: ___________________________________ 

 

 

Mail after recording to Grantee

This instrument was prepared by: 

 

	Brief Description for the index 	 

 

NORTH CAROLINA SPECIAL WARRANTY DEED

 

THIS DEED made this ____ day of
_________, 20______, by and between

 

	
        GRANTOR

         

        ______________________

         

        Mailing Address:

        ______________________

        ______________________

         

         
	
        GRANTEE

         

        ______________________

         

        Mailing Address:

        ______________________

        ______________________

         

	Enter in appropriate block for each party: name, address, and, if appropriate, character of entity, e.g., corporation or partnership.

 

The designation Grantor and Grantee as
used herein shall include said parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine
or neuter as required by context.

 

WITNESSETH, that the Grantor, for a valuable
consideration paid by the Grantee, the receipt of which is hereby acknowledged, has and by these presents does grant, transfer,
bargain, sell and convey unto the Grantee in fee simple all that certain lot or parcel of land situated in the city of ___________,
_____________ County, North Carolina and more particularly described as follows (the “Property”):

 

SEE ATTACHED EXHIBIT A FOR
LEGAL DESCRIPTION

 

     

     

    

 

A map showing the parcel described above
in Map Book _______, Page ______, of the ___________ County Public Registry.

 

The Property herein conveyed does not include
the primary residence of a Grantor.

 

The Property hereinabove described was
acquired by Grantor by instrument recorded in Book _____ at Page ______, _________________ County Public Registry.

 

TO HAVE AND TO HOLD the aforesaid Property
and all privileges and appurtenances thereto belonging to the Grantee in fee simple forever.

 

And the Grantor covenants with the Grantee
that Grantor is seized of the Property in fee simple, has the right to convey the same in fee simple and has done nothing to impair
such title as Grantor received, and Grantor will warrant and defend the title against the lawful claims of all persons claiming
by, under or through Grantor.

 

This conveyance is SUBJECT TO all restrictions,
conditions, reservations, easements and other matters of record and ad valorem taxes for the current and subsequent years.

 

IN WITNESS WHEREOF, the Grantor has duly executed the foregoing
as of the day and year first above written.

 

	_______________________	 
	 	 
	By: 	 	 
	Name: 	 	 
	Title: 	 	 

 

 

 

State of __________________ – County
of _________________

 

I, the undersigned, a Notary Public of
the County and State aforesaid, certify that _______________________, personally appeared before me this day and acknowledged that
he is the __________ of _________________, a _____________________, and that by authority duly given and as the act of the limited
partnership, he executed of the foregoing instrument.

 

Witness my hand and official seal, this the _____ day of ____________,
20___.

 

	 	 
	Notary Public	 
	 	 
	 	 
	printed name of Notary	 

 

	My Commission Expires:   	 

 

     

     

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

     

     

    

 

EXHIBIT F

 

FORM OF AFFIDAVIT OF TITLE

 

OWNER AFFIDAVIT
AND INDEMNITY AGREEMENT

 

(NO RECENT IMPROVEMENTS)

 

PARTIES: All parties identified
in this section must execute this Agreement.

 

Owner:

(NOTE: There can be more than
one Owner if the Property has been owned by multiple parties or has been conveyed within the 120-Day Lien Period. A separate
Agreement is required for each successive owner in the 120-Day Lien Period.)

 

PROPERTY:
See Exhibit A attached hereto.

 

DEFINITIONS: The following capitalized terms as
used in this Agreement shall have the following meanings:

 

		·	Improvement: All
or any part of any building, structure, erection, alteration, demolition, excavation, clearing, grading, filling, trees and shrubbery,
driveways, and private roadways on the Property as defined below.

		·	Labor, Services or
Materials: Labor or professional design (including architectural, engineering, landscaping) or surveying services or materials
or rental equipment for which a lien can be claimed under NCGS Chapter 44A, Article 2.

		·	Contractor: Any person
or entity who has performed or furnished or has contracted to perform or furnish Labor, Services or Materials pursuant to a contract,
either express or implied, with the Owner of real property for the making of an Improvement thereon. (Note that services by architects,
engineers, landscapers, surveyors, furnishers of rental equipment and contracts for construction on Property of Improvements are
often provided before there is visible evidence of construction.)

		·	120-Day Lien Period:
The 120 days immediately preceding the date of this Agreement.

		·	Owner: Any person
or entity, as defined in NCGS Chapter 44A, Article 2, who has or has had any interest in the Property within the 120-Day
Lien Period. For the purposes of this Agreement, the term Owner includes: (i) a landlord of the Property; (ii) a person
with rights to purchase the Property under a contract and for whom an Improvement is made and who ordered the Improvement to be
made; and (iii) the Owner’s successors in interest and agents of the Owner acting within their authority.

		·	Company: The title
insurance company providing the title policy for the transaction contemplated by the parties herein.

		·	Property: The real
estate described above and on Exhibit A and any leaseholds, tenements, hereditaments, and improvements placed thereon.

		·	Land: The parcel
or parcels of real property on which the Improvements are located and known as: _______________.

		·	All defined terms
shall include the singular or plural as required by context.

 

AGREEMENT: For good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and as an inducement to the purchase of the Property
by _____________________ and the issuance of a title insurance policy or policies by Company insuring title to the Property without
exception to liens for Labor, Services or Materials; Owner first being duly sworn, deposes, says and agrees:

 

1.          Certifications:
Owner certifies that at no time during the 120-Day Lien Period have any Labor, Services or Materials been furnished in connection
with a contract with Owner, express or implied, for Improvements to the Property (including architectural, engineering, landscaping
or surveying services or materials or rental equipment that have not been paid for which a lien can be claimed under NCGS Chapter 44A)
nor have any Labor, Services or Materials been furnished on the Property prior to the 120-Day Lien Period that will or may be completed
after the date of this affidavit other than repairs and/or alterations to pre-existing Improvements have been made and Owner certifies
such repairs and/or alterations have been completed and those providing Labor, Services or Materials for the repairs have been
paid in full. The Owner further certifies that no Mechanics Lien Agent has been appointed.

 

     

     

    

 

2.          Reliance
and Indemnification: This Agreement may be relied upon by the purchaser in the purchase of the Property, a lender to make a
loan secured by a deed of trust encumbering the Property and the Company in issuance of a title insurance policy or policies insuring
title to the Property without exception to matters certified in this Agreement. The provisions of this Agreement shall survive
the closing of this transaction and shall be binding upon Owner and anyone claiming by, through or under Owner.

 

3.          Entire
Agreement: This Agreement and any attachments hereto represent the entire agreement between the Owner and the Company, and
no prior or contemporaneous agreement or understanding inconsistent herewith (whether oral or written) pertaining to such matters
is effective.

 

No modification of this Agreement, and no waiver of any of its
terms or conditions, shall be effective unless made in writing and approved by the Company.

 

4.          As
to possession: Owner certifies that there are no tenants in possession of the Property.

 

THIS AFFIDAVIT IS EXPRESSLY LIMITED TO THOSE CLAIMS ARISING
OUT OF OR RELATED TO SERVICES, LABOR, OR MATERIALS REQUESTED BY OR CONTRACTED FOR BY THE OWNER AND SHALL SPECIFICALLY EXCLUDE CLAIMS
ARISING OUT OF OR RELATED TO ACTS OF OR DIRECTED BY TENANTS OR PURCHASER OR ITS AGENTS OR CONTRACTORS.

 

[SIGNATURE AND NOTARIAL ACKNOWLEDGMENT PAGE
FOLLOWS]

 

	PROVIDING
    A FALSE AFFIDAVIT IS A CRIMINAL OFFENSE
	EXECUTION
    BY OWNER
	 	 	(Affix
    Official/Notarial Seal)
	_______________________,
    a ________________________	State
    of _____________ County of _______________	 
	 	Signed
    and sworn to (or affirmed) before me this day by	 
	By: 
    _____________________________________________	____________________________________________	 
	Printed
    or Typed Name/Title: _________________________	____________________
    [insert name(s) of principal(s)].	 
	 	Date:
    __________________________	 
	By: 
    _____________________________________________	 	 
	Printed
    or Typed Name/Title: _________________________	_________________________________,
    Notary Public	 
	 	My
    Commission Expires: ________________________	 
	 	 	 

 

     

     

    

 

Exhibit A to Title Affidavit

 

Legal Description

 

     

     

    

 

EXHIBIT G

 

LITIGATION AFFECTING THE PROPERTY

 

     

     

    

 

EXHIBIT H

 

FORM OF NON-FOREIGN AFFIDAVIT

 

NON-FOREIGN AFFIDAVIT

 

The undersigned deponent
(the “Deponent”), having personally appeared before the undersigned notary public and first having been duly
sworn according to law, deposes and says under oath as follows:

 

1.            Deponent
is presently a ____________ of ____________________, a _______________________________
(the “Seller”).

 

2.            In
such capacity, the Deponent has personal knowledge of the facts sworn to in this affidavit and such facts are true and correct.

 

3.            The
Seller is the owner of certain real estate, a description of which is set forth on Exhibit A attached hereto and made
a part hereof, together with all fixtures, improvements, easements and appurtenances related thereto (collectively, the “Property”).

 

4.            Deponent
understands that Section 1445 of the United States Internal Revenue Code of 1986 (as amended, the “Code”), provides
that a transferee of a U.S. real property interest must withhold tax if the transferor is a “foreign person” (as defined
in the Code). For U.S. tax purposes (including Section 1445), the owner of a disregarded entity (which has legal title to
a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity. To inform
[BUYER Name: ______________________, a ____________________ (the “Transferee”)
that withholding of tax is not required upon the disposition of a U.S. real property interest by the Seller, Deponent hereby certifies
the following:

 

(a)          The
Seller is not a “non-resident alien” for purposes of United States income taxation or otherwise a “foreign person,”
as defined in Section 1445 of the Code.

 

(b)          The
Seller is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations issued under the
Code.

 

(c)          The
Seller’s United States taxpayer identification number is ______________________.

 

(d)          The
address (and, if different, the mailing address) of the Seller is ____________________________.

 

(e)          The
Seller owns 100% of the aforesaid Property.

 

     

     

    

 

(f)          Deponent
is making this Affidavit pursuant to the provisions of Section 1445 of the Code in connection with the conveyance of the real property
described on Exhibit A, attached hereto and incorporated herein by reference, by the Seller to Transferee, which conveyance
constitutes the disposition by the Seller of a United States real property interest, for the purpose of establishing that Transferee
is not required to withhold tax pursuant to Section 1445 of the Code in connection with such disposition.

 

(g)          Deponent
acknowledges that this Affidavit may be disclosed to the Internal Revenue Service by Transferee, that this Affidavit is made under
penalty of perjury, and that any false statement made herein could be punished by fine, imprisonment or both.

 

5.             Under
penalty of perjury, I declare that I have examined the foregoing Affidavit and hereby certify that it is true, correct and complete
and I further declare that I have the authority to make this affidavit and the certifications contained herein on behalf of the
Seller.

 

	Certified, sworn to and subscribed before 

me this ___ day of ____________, 2015.
	 	 	 
	 	 	 
	Notary Public	 	Name:	 
	 	 	 
	My Commission Expires:	 	 
	 	 	 
	 	 	 
	 	 	 
	(NOTARIAL SEAL)	 	 

 

     

     

    

 

EXHIBIT I

 

FORM OF CLOSING CERTIFICATE

 

Closing Certificate of Current Owner,
Seller and Phase I Permit Entity

 

THIS CLOSING CERTIFICATE
is made as of _________________ ___, 2015 by each of TBR Lake Boone Owner, LLC, a Georgia limited liability company, as Trustee
under the TBR Lake Boone Trust Agreement dated December 20, 2012 (“Current Owner”), TriBridge Co-Invest 29,
LLC, a Georgia limited liability company (“Seller”) and LBT Apartment Phase I Owner, LLC, a North Carolina limited
liability company (“Phase I Permit Entity”), in favor of BR-TBR Lake Boone NC Venture, LLC and BR-TBR Lake
Boone NC Owner, each a Delaware limited liability company (collectively, the “Buyer”).

 

Current Owner and Seller
each hereby certifies to Buyer that the representations and warranties of each of Current Owner and Seller set forth in Sections
7, 12.2, and 13 of that certain Contribution Agreement between Seller and Buyer (the “Agreement”) dated as of October
30, 2015, are true and correct in all material respects as of the date hereof, except as to the following:

 

[Update at Disbursement
Closing]

 

Phase I Permit Entity
hereby certifies to Buyer that the representations and warranties of Phase I Permit Entity set forth in Sections 7, 12.2 and 15.15
of the Agreement are true and correct in all material respects as of the date hereof, except as to the following:

 

[Update at Disbursement
Closing]

 

The representations
and warranties set forth in Section 7 of the Agreement, as updated by this Closing Certificate, will survive for the periods set
forth in the Agreement.

 

This certificate is
delivered pursuant to Section 8.3.7 of the Agreement.

 

[SIGNATURES ON FOLLOWING
PAGES]

 

     

     

    

 

	 	CURRENT OWNER:
	 	 
	 	
        TBR LAKE BOONE OWNER, LLC,

        A GEORGIA LIMITED LIABILITY COMPANY,

        AS TRUSTEE UNDER THE TBR LAKE BOONE

        TRUST AGREEMENT, DATED DECEMBER 20, 2012

	 	 	 
	 	By:	TriBridge Co-Invest 10, LLC, a Georgia limited liability company, its Sole Member
	 	 	 
	 	 	By:	JLC Southeast Investments, LLC, as its Manager
	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 
	 	SELLER:
	 	 
	 	TRIBRIDGE CO-INVEST 29, LLC,
	 	a Georgia limited liability company
	 	 	 
	 	By:	TriBridge Investments II, LLC, a Georgia limited liability company, its Manager and Class B Member
	 	 	 
	 	 	By	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

     

     

    

 

	 	PHASE I PERMIT ENTITY:
	 	 
	 	LBT APARTMENT PHASE I OWNER, LLC,
	 	a North Carolina limited liability company
	 	 	 
	 	By:	TriBridge Residential, LLC, a Georgia limited liability company, its sole member
	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

     

     

    

 

EXHIBIT J

 

Supplement
to SELLER AND CURRENT OWNER DeliVeries

 

		·	Survey – boundary

		·	Survey – topography

		·	Survey -  tree

		·	Environmental – phase 1, asbestos

		·	Environmental – all other environmental information regarding the property, no further action letter, etc

		·	Geotech reports, test pit reports and other Geological reports

		·	The most recently obtained boundary surveys and topographical surveys of the Property

		·	Zoning ordinance or zoning confirmation letter

		·	Utility availability letters (water, sewer, electricity, gas)

		·	Copies of all ad valorem tax statements for the Property for the current year; and

		·	Copies of all architectural and engineered drawing provided by designers, engineers and architects

		·	Copies of easements on propertyExhibit 10.6

 

DEVELOPMENT AGREEMENT

 

THIS DEVELOPMENT AGREEMENT,
made and entered into as of this 30th day of October, 2015, by and between BR-TBR LAKE BOONE NC OWNER, LLC,
a Delaware limited liability company (hereinafter referred to as “Owner”), and TRIBRIDGE RESIDENTIAL
DEVELOPMENT, LLC, a Georgia limited liability company (hereinafter referred to as “Developer”).

 

WITNESSETH:

 

WHEREAS, Owner is the
owner of those certain tracts or parcels of land located lying and being in the City of Raleigh, Wake County, North Carolina being
more particularly described on Schedule "A" attached hereto and by this reference made a part hereof (the
“Property”);

 

WHEREAS, Owner is desirous
of engaging Developer as an independent contractor for the purpose of performing the Development Work (defined herein) upon the
terms, conditions and covenants herein described; and

 

WHEREAS, Developer
is desirous of performing the Development Work as an independent contractor of Owner.

 

NOW, THEREFORE, for
and in consideration of the above premises, the sum of Ten Dollars ($10.00) in hand paid by each party to the other, and the mutual
promises, obligations and agreements contained herein, Owner and Developer, intending to be legally bound, do hereby agree as follows:

 

ARTICLE 1

DEFINITIONS

 

As used herein, the
following terms shall have the following meanings:

 

“Affiliate”
means with respect to any Person, (i) any relative of the Person in question, if such Person is an individual, or (ii) any other
Person directly or indirectly controlled by, controlling or under common control with the Person in question (whether directly
or indirectly through one or more intermediaries), or (iii) any shareholder, member or partner of any Person described in (ii)
above. For the purpose of this definition, “control” means the possession, directly or indirectly, of the power to
decide, affirmatively (by direction) or negatively (by veto), management and policies, whether through the ownership of voting
securities or by contract or otherwise.

 

“Agreement”
shall mean this Development Agreement, together with all amendments hereto, all exhibits attached hereto and all other instruments
and documents incorporated herein by reference.

 

“Architect”
shall mean the architect engaged by Owner in connection with the design and construction of the Project.

 

     

     

    

 

“Architect’s
Contract” shall mean the architect’s contract entered into by Owner and Architect providing for the plans, drawings,
specifications, contract administration and related materials necessary or appropriate for the construction of the Project.

 

“BR
Investor” shall mean BR Lake Boone JV Member, LLC, a Delaware limited liability company.

 

“Budget
Category” shall mean the line item categories of costs and/or expenses set forth on Exhibit A attached
hereto and by this reference made a part hereof.

 

“Business
Day” means a day which is not a Saturday or Sunday or a legally recognized public holiday in the United States of America,
the State of New York or the State of North Carolina.

 

“Completion
Date” shall mean, with respect to the Development Work, the date upon which the last of the following shall have occurred:
(i) the construction and equipping of the Project shall have been substantially completed in accordance with the Architect’s
Contract and the Construction Contract (inclusive of landscaping plans, to the extent that landscaping can feasibly be installed
due to the season), including completion of all punch list items, as evidenced by a certificate to such effect from the Architect
and the Specialists and Consultants (exclusive, however, of any interior designer), provided, however, that punch list items which
in the aggregate do not exceed $100,000 (exclusive of seasonal landscaping work) shall be deemed completed for the purpose of this
requirement, (ii) all required utilities are available, (iii) all permits for the construction and equipping of the Project have
been issued, and (iv) a certificate of occupancy has been issued with respect to the Project by the appropriate governmental authority.

 

“Construction
Contract” shall mean that certain Construction Agreement, as may be modified, between the Owner and Contractor for the
construction of the Project in a form to be approved by and executed by Owner.

 

“Construction
Lender” shall mean any lender making a Construction Loan.

 

"Construction
Loan" shall mean that certain loan, by and between Owner and any lender, secured by the Project, for the purpose of financing
the Project.

 

“Contractor”
shall mean such general contractor(s) as may be recommended by Developer and approved and retained by Owner from time to time to
construct the Project.

 

“Developer”
shall have the meaning set forth in the Preamble.

 

“Development
Budget” shall mean the final budget, approved by Owner and the Construction Lender for the Project, of all expenses estimated
and projected to be incurred with respect to the planning, design, development and construction of the Development Work, as such
initial budget may, from time to time, be amended in accordance with this Agreement. A preliminary budget is attached hereto as
Exhibit D; provided, however, the preliminary budget is for illustrative purposes only and shall not govern with
respect to this Agreement.

 

    	 	2	 

     

    

 

“Development
Consultant” shall mean the development consultant to the extent selected by BR Investor to the extent contemplated in
the LLC Agreement to monitor and review, on behalf of Owner at Owner’s expense, the construction and development of the Project.
For avoidance of doubt, if BR Investor fails to select a Development Consultant, then there shall be no Development Consultant.

 

“Development
Costs” shall mean all costs set forth on the Development Budget and incurred in connection with the Development Work.

 

“Development
Fee” shall mean the fee payable by Owner to Developer pursuant to the provisions of Section 11.1 of this Agreement with
respect to the Development Functions.

 

“Development
Functions” shall mean those obligations, responsibilities and functions of Developer set forth in this Agreement.

 

“Development
Period” shall mean the period commencing on the date hereof and terminating on the date upon which Final Completion is
achieved.

 

“Development
Work” shall mean the work described on Exhibit B attached hereto and by reference made a part hereof.

 

“Development
Work Control Report” shall have the meaning set forth in Section 6.2 hereof.

 

“Draw
Request” shall have the meaning set forth in Section 6.2 hereof.

 

“Event
of Default” shall mean any one or more of the events described in Section 12.4 of this Agreement.

 

“Final
Completion” shall have the meaning set forth in the Construction Contract, or if such term is not defined in the Construction
Contract, the corresponding definition in the Construction Contract applicable to the satisfaction of all construction related
obligations and meeting the requirements for the final release of all retainage thereunder.

 

“Force
Majeure” shall mean acts of God, war, riots, civil insurrections, hurricanes, tornados, floods, earthquakes, epidemics
or plagues, acts or campaigns of terrorism or sabotage, interruptions to domestic or international transportation, trade restrictions,
delays caused by any governmental or quasi-governmental entity, shortages of materials, natural resources or labor, labor strikes,
governmental prohibitions or regulations including administrative delays in obtaining building permits, inability to obtain materials,
delay by any utility provider to install or restore utility services at the Project, or any other cause beyond the reasonable control
of the Developer.

 

“Key
Persons” shall have the meaning set forth in Section 3.3 hereof.

 

    	 	3	 

     

    

 

“LLC
Agreement” shall mean that certain Operating Agreement of Venture dated on or about the date hereof, as the same may
be amended from time to time.

 

“Members”
shall mean the members of the Venture as defined in the LLC Agreement.

 

“Monthly
Draw Package” shall have the meaning set forth in Section 6.2.1 hereof.

 

“Monthly
Financial Reporting Package” shall have the meaning set forth in Section 6.2 hereof.

 

“Monthly
Reports” shall have the meaning set forth in Section 6.2 hereof.

 

“Owner”
shall have the meaning set forth in the Preamble.

 

“Person”
shall mean an individual, partnership, corporation, limited liability company, trust, real estate investment trust, unincorporated
association, joint stock company or other entity or association.

 

“Plans
and Specifications” shall mean the plans and specifications with respect to the Project approved in writing by Owner,
including, without limitation, the plans and specifications more particularly described on Exhibit C attached hereto
and by reference made a part hereof.

 

“Prime
Rate” shall mean the rate of interest published in The Wall Street Journal from time to time as the “Prime Rate”
and, if such prime rate is not available, a rate of interest which is a reasonable substitute therefor as mutually agreed to by
Owner and Developer.

 

“Project”
shall mean the demolition of the existing buildings and construction of the apartment project and associated site work intended
to be completed upon the Property as a result of the Development Work.

 

“Project
Development Schedule” shall have the meaning set forth in Section 3.2.1(m) hereof.

 

“Property”
shall have the meaning set forth in the Recitals.

 

“Property
Manager” shall mean the management agent selected by the Owner to provide property management services in respect of
the Project.

 

“Specialists
and Consultants” shall have the meaning set forth in Section 3.2.1(b) hereof.

 

“Term”
shall have the meaning set forth in Section 12.1 hereof.

 

    	 	4	 

     

    

 

"Venture"
shall mean BR-TBR LAKE BOONE NC VENTURE, LLC, a Delaware limited liability company.

 

ARTICLE 2

ENGAGEMENT OF DEVELOPER

 

2.1         Engagement.
Owner hereby engages Developer as the exclusive development manager with respect to the Development Work during the Term of this
Agreement as provided herein, for the purpose of managing, arranging, supervising and coordinating the planning, design, permitting,
scheduling, construction and completion of the Development Work, all in accordance with and subject to the terms, conditions and
limitations herein set forth. Developer hereby accepts such engagement and hereby agrees to diligently perform its duties and the
Development Functions hereunder, which performance shall be carried out in a manner at least equal to the standard of care and
quality of services rendered by the leading and most reputable companies performing the same or similar type professional services
in connection with institutional grade multifamily apartments in the area of the Property. Developer further agrees to apply commercially
reasonable business practices in the performance of its duties hereunder, and to comply with all laws and regulations applicable
thereto.

 

2.2         Relationship.
With respect to Owner, Developer shall at all times be an independent contractor. No provision hereof shall be construed to constitute
Developer or any of its officers or employees as an employee or employees of Owner, nor shall any provision of this Agreement be
construed as creating a partnership or joint venture between Developer and Owner. Neither Owner nor Developer shall have the power
to bind the other party except pursuant to the terms of this Agreement. This Agreement is not intended to provide or create any
agency relationship between Owner and Developer, and Developer shall have no right or authority, express or implied, to commit
or otherwise obligate Owner in any manner whatsoever, except as expressly provided herein, and Developer agrees that it shall not
hold itself out as having authority to act on behalf of Owner in any manner, except as expressly provided herein.

 

ARTICLE 3

RESPONSIBILITIES OF DEVELOPER

 

3.1         General Responsibility.
Developer’s general responsibility hereunder as Owner’s development manager shall be to manage, arrange, supervise
and coordinate, in all respects, the planning, design, construction, leasing, and completion of the Development Work.

 

3.2         Development
Functions. In discharging its general responsibility hereunder with respect to the Development Work, Developer shall perform
and discharge the specific responsibilities set forth in this Section 3.2, subject to the terms of this Agreement.

 

3.2.1         Pre-Development
Phase. During the pre-development phase of the Development Work, Developer’s responsibilities will include, without limitation,
the following:

 

    	 	5	 

     

    

 

(a)         Preparing
and refining the Development Budget, the initial draft of which is attached to this Agreement as Exhibit D and which
shall be finalized prior to the Closing of the Construction Loan and approved by the Construction Lender. The final Development
Budget shall be that version attached to the executed Construction Loan Agreement between Owner and the Construction Lender. The
Development Budget shall be broken down into such major categories as Owner may request of Developer, including without limitation,
estimated costs of procuring and maintaining entitlements and other permits, design costs, demolition costs, construction costs
(both hard and soft costs), marketing costs, project administration costs, financing costs and contingencies, but in all respects
separated as between the items constituting “hard costs” and the items constituting “soft costs”, as the
same is approved by the Construction Lender. Developer shall be responsible for arranging a commercially reasonable guaranteed
maximum price contract for the Project, subject to BR Investor’s consent, same not to be unreasonably withheld, and consent
of any Construction Lender.

 

(b)         Recommending
to Owner planning, architectural, engineering, demolition, interior design and other specialists and consultants for the Development
Work (collectively, the “Specialists and Consultants”), coordinating the process for the selection by Owner
of such Specialists and Consultants for the Development Work (including a competitive bidding process), reviewing and analyzing
proposals from such Specialists and Consultants, and, following approval thereof by Owner, preparation and/or review and evaluation
of proposed contracts between Owner and such Specialists and Consultants, and the negotiation of such proposed contracts (it being
understood that all contracts shall be signed by Owner and, therefore, are subject to Owner’s prior approval);

 

(c)         Assisting
Owner in establishing the design criteria of the Development Work;

 

(d)         Supervising
the preparation of boundary and topographic surveys of the Property or applicable portions thereof;

 

(e)         Supervising
the preparation of environmental site assessments and geotechnical reports of the Property to the extent not yet prepared by or
on behalf of Owner by Developer;

 

(f)         Supervising
the preparation of site plans showing the location of roads, utilities, buildings, parking areas and other improvements to be constructed
in connection with the Development Work;

 

(g)         Supervising
the preparation of preliminary drawings and specifications in accordance with the approved design criteria;

 

(h)         Defining
the concept for the proposed Project including, without limitation, uses, sizes, physical arrangements and utility requirements;

 

    	 	6	 

     

    

 

(i)          Analyzing
the entitlements required for the proposed Project including zoning, parking requirements, traffic studies, site plan approvals,
wetlands permits, DOT access permits, resubdivision requirements, offsite improvements, environmental approvals, etc.;

 

(j)          If applicable,
analyzing major tenant restrictions in the supplemental agreements, leases, and other documents pertaining to the Project;

 

(k)         Assessing
the potential tenants, rents, leasing pace, tenant concessions, and other enticements to tenants;

 

(l)          Preparing
preliminary financial analyses of the proposed Project and recommending whether the proposed Project has sufficient probability
of a successful implementation to warrant continuing with the Development Work; and

 

(m)        Prepare
for Owner’s and Construction Lender’s review and approval a detailed project development schedule for the Project (“Project
Development Schedule”), including subcategories for permitting, design, demolition and construction of the Project. The
Project Development Schedule shall be reviewed by Developer and updated on a regular basis by the Contractor and any revisions
will be promptly submitted to Owner and the Construction Lender for review and approval.

 

3.2.2         Design
Development Phase. During the design development phase of the Development Work, which shall continue after commencement of
the construction phase as to those elements of the Development Work for which final Plans and Specifications, final Development
Budget items, and final changes to the Construction Contract have not then been approved by Owner, Developer shall coordinate with
Owner, Development Consultant and with the Architect and the Specialists and Consultants, to obtain final drawings and specifications
(including mock-ups and color samples) acceptable to Owner, and Developer’s responsibilities will include, without limitation,
the following:

 

(a)         Securing,
on Owner’s behalf, the necessary entitlements and any easements or rights required over adjoining property from the owner(s)
thereof to construct (and operate) the proposed Project (all such easements, entitlements and terms thereof are subject to Owner’s
prior written approval);

 

(b)         Cooperating
and coordinating with the Property Manager;

 

(c)         Confirming
leasing assumptions, construction costs, offsite improvement costs, and other costs to implement the Project;

 

(d)         Preparing
a recommendation to proceed or not proceed with the construction phase of the Development Work;

 

(e)         Reviewing,
commenting on and coordinating changes in preliminary design and working drawings, specifications and site plans that are requested
by Owner or Development Consultant;

 

    	 	7	 

     

    

 

(f)          Working
with Owner, Development Consultant and with the Architect and the other Specialists and Consultants to enhance compatibility of
architectural drawings with other elements of the Development Work such as interior design;

 

(g)         Preparing
a description of standard interior finishes for the interior of the Development Work, together with a proposed budget for the installation
of such finishes, for Owner’s approval;

 

(h)         Obtaining
cost estimates from Specialists and Consultants and/or contractors and preparing revisions to the Development Budget for the construction
phase in light of design development;

 

(i)          Advising
Owner and Development Consultant with respect to preferred construction methods;

 

(j)          With
the Architect and other appropriate Specialists and Consultants, undertaking cost analysis, value engineering and constructability
reviews for the Project and evaluating design alternatives;

 

(k)         Coordinating
the finalization and approval by Owner of final drawings and specifications, including landscaping plans, mechanical and electrical
drawings, architectural appearance, and interior design schemes for common areas;

 

(l)          Preparing
and/or reviewing and evaluating agreements with Contractor, which agreements may require Contractor or specified major subcontractors
to furnish payment and performance bonds for work on the Development Work, if such requirement is requested in writing by Owner
or Development Consultant, and, if requested by Owner or Development Consultant, negotiating such agreements (it being understood
that all agreements with the Contractor shall be signed by Owner and, therefore, subject to Owner’s prior approval);

 

(m)        Administering
and overseeing the selection by Contractor of major subcontractors and others as appropriate for construction of any improvements
Owner authorizes to be constructed on the Development Work;

 

(n)         Obtaining,
through Contractor and Developer and on behalf of Owner, all building, development, demolition and other permits and governmental
approvals necessary to commence construction of the Development Work.

 

3.2.3         Construction
Phase. Once construction of the Development Work commences, Developer will serve as a general construction consultant, and
Developer’s responsibilities with respect to the Development Work will include, without limitation, the following:

 

    	 	8	 

     

    

 

(a)         Making
visits to the job site as and when necessary to perform its obligations pursuant to, and in accordance with, the terms of this
Agreement to review the work and progress of construction with Contractor and with the Architect and the other Specialists and
Consultants, including, without limitation, observing Contractor’s final testing, start-up and initial operation, which initial
operation shall be in good working order, of all utilities, operational systems and equipment. Developer shall oversee the testing
and delivery of all building systems in consultation with Owner to ensure complete working operation prior to acceptance by the
Owner;

 

(b)         Consulting
with Owner and Development Consultant regarding proposed changes and modifications to the Plans and Specifications which are material
in nature (i.e. which will result in increases to the Development Budget of more than $75,000 per change, and $350,000 in the aggregate,
provided, however, that for any changes and modifications that do not reach such levels Developer may implement such changes at
its discretion), obtaining Owner’s written approval, subject to Section 4.1, as a condition of implementation of any changes
and modifications, coordinating issuance of change orders if and when changes as described above are approved in writing by Owner,
Contractor, and other necessary parties;

 

(c)         Responding
promptly (and in writing if requested) to any questions from Owner and/or Development Consultant regarding the work or progress
of construction, construction methods, scheduling, and the like;

 

(d)         Coordinating
the turnover of portions of the Development Work as and when the same are appropriately completed, including performing walk-throughs
to identify punch list items and timely ensuring the follow through completion of all such punch list items;

 

(e)         Coordinating,
overseeing and managing in a commercially reasonable and efficient manner all efforts by all appropriate parties to complete the
Development Work in accordance with the Plans and Specifications thereof and within the Project Development Schedule, as the same
may be amended from time to time with the approval of all necessary parties, such efforts to include, without limitation, assisting
in the scheduling of inspections and the preparation and timely disposition of all punch lists;

 

(f)          Coordinating,
overseeing and managing in a commercially reasonable and efficient manner all efforts by all appropriate parties to timely complete
the punch list items identified by Development Consultant, Owner, Architect, Specialists and Consultants, Contractor and Developer;

 

(g)         Managing
compliance by Contractor with the Construction Contract, including, without limitation, monitoring insurance certificates of the
Contractor and all subcontractors, submission of applications for payment and supporting documentation;

 

    	 	9	 

     

    

 

(h)         Causing
the Contractor to maintain at the Project site for Owner and Development Consultant one record copy of all contracts, drawings,
specifications, addenda, change orders and other modifications, in good order and marked currently in readable form to record changes
and selections made during construction, and in addition, approved shop drawings, product data, samples and similar required submittals.
Developer shall further cause the Contractor to maintain records, in duplicate, of principal building layout lines, elevations
of the bottom of the footings, floor levels and key site elevations certified by a qualified surveyor or professional engineer.
All such, and all other, project and construction related documents shall be always available to Owner for inspection and shall
be copied for Owner by Developer at Owner’s expense on reasonable written notice;

 

(i)          Arranging
for the delivery, storage, protection and security of Owner-purchased materials, systems and equipment that are a part of the Project
until such items are incorporated into the Project;

 

(j)          Facilitating
and implementing in a commercially reasonable and expedient manner all close-out duties to complete the Development Work;

 

(k)         Obtaining,
or causing the Contractor to obtain, on behalf of Owner, a permanent certificate of occupancy (or other appropriate and necessary
governmental permission to occupy) with respect to the portions of the Development Work which will require the same;

 

(l)          Obtaining
all final warranties (and all related documentation), to the extent provided for in the Construction Contract from Contractor and
any subcontractors with respect to the Development Work and construction of the Project and all materials provided in connection
therewith for the benefit of Owner, and using commercially reasonable efforts to obtain from Architect certified documentation
that construction of all Development Work has been completed in accordance with the Plans and Specifications; and

 

(m)        Subject
in all cases to the approval of the Owner and the Construction Lender under the Construction Loan, facilitating and implementing
the process of submitting Draw Requests for approvals, collecting and providing all applicable back up and documentation necessary
for such Draw Requests to be processed by the Construction Lender in accordance with the terms of the Construction Loan and overseeing
the proper expenditure or distribution of all such funds to the parties entitled thereto once released by the Construction Lender
or Owner for purposes of paying such related expenses. Developer shall be responsible for all associated accounting and record
keeping on behalf of Owner with respect to any Draw Requests and fund disbursements, and in connection therewith shall provide
contemporaneous notices to the Owner of any Draw Requests submitted in connection with the Development Work and the construction
of the Project along with copies of all documentation submitted in connection with any Draw Request and any disbursements from
the Construction Lender related thereto. Developer will further cooperate with Owner in providing complete access (upon reasonable
written notice) to all associated records of Developer in connection therewith, at Owner’s cost.

 

    	 	10	 

     

    

 

3.2.4         All
Phases. During all phases of the Development Work, Developer’s responsibilities will include, without limitation, the
following:

 

(a)         Providing
Owner and Development Consultant with the Monthly Reports as provided in Section 6.2 hereof so as to keep Owner fully apprised
of the progress of development;

 

(b)         Preparing
and submitting to Owner and Development Consultant supplements and refinements to the Development Budget for Owner’s approval
as development of the Development Work moves through its various phases to completion;

 

(c)         Monitoring
the Project Development Schedule and the progress of development and construction of the Project in comparison thereto;

 

(d)         Notifying
Owner and Development Consultant of any actual or anticipated change in the Project Development Schedule of which Developer becomes
aware, including promptly advising Owner of any delays in the Project Development Schedule and the reasons for any such delay;

 

(e)         Recommending
to Owner and Development Consultant any application of contingency (which application of contingency shall be subject to Owner’s
prior written approval);

 

(f)         Advising
Owner with respect to obtaining any variances or rezoning of such portion of the land included within the Development Work as are
necessary or appropriate to cause the Development Work to be in compliance with applicable codes, laws, regulations and ordinances.
Upon receipt of Owner’s written approval, make or agree to any changes to the site-plan, subdivision or zoning of the Development
Work or any portion thereof;

 

(g)         Advising
Owner with respect to (1) all dealings with all governmental authorities who have control over the development of the Development
Work and the construction of all improvements, and (2) the contest by Owner of any law, regulation or rule which Owner deems to
adversely affect the Development Work;

 

(h)         Coordinating
and managing the performance of Contractor, the Architect and the other Specialists and Consultants under their respective contracts
with Owner and giving or making Owner’s instructions, requirements and approvals provided for in such contracts after obtaining
Owner’s written approval with respect thereto;

 

    	 	11	 

     

    

 

(i)          Using
commercially reasonable and diligent efforts to resolve and settle any conflict among Contractor, the Architect and the Specialists
and Consultants and keeping Owner and Development Consultant fully informed with respect to such conflicts and settlement discussions;

 

(j)          Assisting
Owner and Development Consultant with respect to Owner’s negotiations with all applicable utility companies, whether governmental
or otherwise, for the installation of all applicable utility services to the Project on a timely basis, with Owner bearing the
cost of all required utility deposits and costs of installation;

 

(k)         Organizing
and coordinating a schedule of monthly draw meetings or teleconferences to be attended by Developer, Owner and Development Consultant,
which such schedule shall set forth the dates on which the monthly draw meetings will be held;

 

(l)          Reviewing
applications for payment submitted by Contractor and other Specialists and Consultants and preparing documentation for all requests
for payments from Owner, in form and content sufficient to permit Owner and Development Consultant to determine the appropriateness
of such payments;

 

(m)        Coordinating
the performance of any tests and inspections required by any Construction Lender or governmental authority;

 

(n)         Subject
to the terms of this Agreement, taking whatever actions are appropriate to accomplish completion of the Development Work in accordance
with the Project Development Schedule, within the approved Development Budget, and in accordance with standards and specifications
approved by Owner and in compliance with the Plans and Specifications and applicable law;

 

(o)         Subject
to the terms of this Agreement, using reasonable efforts to comply or cause compliance by the appropriate party with the Owner’s
obligations relating to the development of the Project undertaken by Owner in any written agreement (including loan agreements,
mortgages and leases) and notifying Owner and Development Consultant promptly in the event Developer becomes aware of any noncompliance;

 

(p)         In addition
to, and in furtherance of, the obligations under subparagraph 3.2.3 (m) above, sending to Owner and Development Consultant the
Monthly Draw Package and, at Owner's request, copies of all notices received by Developer from the Architect, Contractor, the Specialists
and Consultants and governmental authorities;

 

(q)         Advising
Owner with respect to any master planning issues relating to the Development Work, including, but not limited to, traffic planning
issues, historic preservation issues, aesthetic issues relating to buildings and sites, and building occupancy criteria issues;

 

    	 	12	 

     

    

 

(r)          Timely
filing on behalf of, and as agent for, Owner any notices of completion required or permitted to be filed and taking such action
as may be required to obtain required licenses or permits;

 

(s)         Recording
and reporting to Owner and Development Consultant the progress of the construction of the Development Work, which reports shall
be made on a monthly basis in accordance with Section 6.2;

 

(t)          Causing
complete and accurate files, books of account and other records of all development and construction costs and expenses of the Development
Work incurred by Owner to be prepared and maintained;

 

(u)         Cooperating
in all respects with Owner, the Members of the Owner, and their respective agents and representatives (including, without limitation,
Development Consultant) in connection with construction of the Project and the performance of the Development Work; and

 

(v)         Performing
generally such other acts and things as may be required in accordance with this Agreement for the full and complete supervision
and coordination of the planning, design, development and construction of the Development Work and advising and consulting with
Owner and Development Consultant with respect thereto.

 

No delegation by Developer
of any of its obligations hereunder (except pursuant to Owner-approved agreements with Specialists and Consultants) shall be permitted
without the prior written consent of Owner in its sole discretion and no such delegation shall relieve Developer of any responsibility
or liability with respect to such obligations hereunder.

 

3.2.5         Completion
of the Development Work. Developer hereby agrees to diligently use its commercially reasonable efforts and shall devote sufficient
time and personnel to cause the Development Work to be completed in compliance with the time parameters established therefor by
Owner as herein provided and in compliance with such contractual obligations of Owner, including obligations under loan agreements,
mortgages and leases, and to cause the construction of those improvements approved by Owner within the Development Work to be completed
on or before the projected completion date of the Development Work (as determined from the Project Development Schedule), in accordance
with the Development Budget (as the same may be revised as contemplated herein) for the Development Work, and in compliance with
applicable law and the Plans and Specifications, to the extent the Owner has provided funds therefore to the extent required under
this Agreement, but in all instances, subject to delays caused by Force Majeure, no later than twenty four (24) months as determined
by the issuance of a final certificate of occupancy for the Project, measured from Effective Date.

 

    	 	13	 

     

    

 

3.3         Employees.
Developer shall have in its employ at all times a sufficient number of capable employees to enable Developer to properly perform
its duties and obligations under this Agreement including, without limitation, managing, arranging, supervising and coordinating
activities necessary to achieve completion of the Development Work in accordance with the Project Development Schedule. Except
as expressly included in the Development Budget, or as otherwise provided in Section 11.2 hereof, Developer shall be responsible
out of Developer’s own funds for all costs and expenses related to the employment of such personnel. All persons employed
by Developer in the performance of its responsibilities hereunder shall be the employees of Developer and not of Owner (provided
that any independent contractors shall not be deemed employees of either Developer or Owner), and shall be exclusively controlled
by Developer and not by Owner, and Owner shall have no liability, responsibility or authority with respect thereto. The identity
of the “Development Manager” and other key personnel involved in the development of the Development Work are listed
on Exhibit E attached hereto (“Key Persons”) and by reference made a part hereof.

 

3.4         Information.
Developer shall use reasonable efforts to keep Owner and Development Consultant fully informed on an up-to-date basis of the progress
of the development, design and construction of any work to be accomplished in connection with this Agreement, including (a) all
scheduled meetings to be held with governmental officials, (b) all meetings of the Development Work construction team, which may
include Owner and Development Consultant and the contractors, architects and engineers engaged in connection therewith, and (c)
any defaults, or potential defaults, of any material nature under this Agreement or any of the agreements entered into in connection
with this Agreement (including, without limitation, loan agreements, mortgages and leases). All notices, Monthly Reports, documents
and other such information required to be delivered by Developer to Owner under this Agreement shall be delivered to the parties
set forth in Section 13.7 hereof.

 

3.5         Mechanic’s
Liens. If any mechanic’s lien or other encumbrance shall be filed against the Project or the Property or any portion
thereof because of any negligence or willful misconduct by Developer, whether or not arising from the development of the Project
or subsequent repair, maintenance, alteration or otherwise, unless such lien shall be filed as a result of Owner’s breach
of its obligations hereunder or Owner's negligence or willful misconduct, Developer shall, at its own cost and expense, cause the
same to be discharged of record, bonded over (as provided under applicable laws of the state in which the Project is located and
subject to any additional requirements of any Construction Lender) and/or insured over (in form and amount as required by any Construction
Lender) by the title insurer for the benefit of Owner and/or any Construction Lender, within thirty (30) days after the filing
of any such mechanic’s lien or such earlier period required under any applicable loan documents. So long as Developer complies
with the preceding sentence, Developer may contest any such lien or encumbrance so long as such contest does not create an imminent
danger of foreclosure of such lien or encumbrance. If Developer fails to comply with the foregoing provisions, Owner shall have
the option, on ten (10) Business Days’ prior notice to Developer, to discharge, bond or insure over any such lien, charge,
order or encumbrance, and Developer shall reimburse Owner for all reasonable costs and expenses thereof, including reasonable attorneys’
fees and costs (provided that Owner may, at its option, elect to offset such sums against the next installment of the Development
Fee that may be due and payable to Developer under this Agreement).

 

    	 	14	 

     

    

 

3.6         Warranties
and Guarantees. Developer shall secure in the name of Owner all warranties and guarantees of the work by the Contractor, suppliers
and manufacturers of components of the Project (including using commercially reasonable efforts to cause all Contractors and subcontractors
to warrant their work for twelve (12) months after final certificate of occupancy has been issued and to obtain the right to assign
such warranties to any subsequent owner of the Property). Such warranties shall be assigned to Owner. After final completion of
the Project and during the period of time which any particular warranty survives, Developer shall assist Owner with enforcing any
warranties or guarantees with respect to the Project upon request and shall be reimbursed for its reasonable out-of-pocket costs
in connection therewith. If there is an opportunity to purchase extended warranties or guarantees from the Contractor or any subcontractor,
manufacturer or supplier with respect to the mechanical systems, roof or structural components of the Project, Developer shall
present such opportunity to Owner promptly upon Developer being made aware of the availability thereof. If Owner so elects, Developer
shall purchase such extended warranty or guaranty at Owner’s cost for Owner’s benefit and Owner shall reimburse Developer
for the cost of such extended warranty.

 

ARTICLE 4

DEVELOPMENT BUDGET

 

4.1         Implementation
of Development Budget. Developer is hereby authorized and directed to implement the Development Work in compliance with the
Development Budget and as otherwise provided in this Agreement. Developer may, subject to the terms of this Agreement, make any
expenditures and incur any obligations provided for in the Development Budget, as it may be revised from time to time as provided
herein. Developer shall use prudence and diligence and shall employ its commercially reasonable efforts to ensure that the actual
costs incurred for each Budget Category as set forth in the Development Budget shall not exceed such category in the Development
Budget. Developer shall advise Owner in Monthly Reports if it appears that the total costs in any Budget Category specified in
the Development Budget is reasonably expected to exceed the amount budgeted therefor. All expenses shall be charged to the proper
Budget Category in the Development Budget, and no expenses may be classified or reclassified for the purpose of avoiding an excess
in the budgeted amount of a Budget Category without Owner’s prior written approval. The Developer shall be permitted to make
any reallocations among line items and/or to apply savings and contingency amounts under the Development Budget without Owner’s
prior approval to the extent TriBridge Co-Invest 29, LLC has such rights in the LLC Agreement. Developer shall secure Owner’s
prior written approval before incurring and paying any cost which exceeds the budgeted amount therefor in the Development Budget.

 

4.2         Revision
of Development Budget. If Developer at any time determines that the Development Budget for the Development Work is not compatible
with the then-prevailing status of the Development Work and does not or is not reasonably expected to adequately provide for the
completion of the Development Work under the remaining and unspent portion of the applicable categories of the Development Budget,
Developer shall promptly prepare and submit to Owner and Development Consultant an appropriate revision of the Development Budget
for Owner’s consideration. Any such revision shall require the prior written approval of Owner (not to be unreasonably withheld,
conditioned or delayed) and consent of the Construction Lender as provided in the Construction Loan documents, and if Owner objects
to any such revision or if any required authorization from the Construction Lender has not been obtained, then the Developer will
not have the authority to incur any cost or expense reflected in the proposed revision.

 

    	 	15	 

     

    

 

4.3         Emergencies.
Notwithstanding any limitations herein provided, but subject in all events to the terms of the Construction Loan, Developer may
spend funds in reasonable amounts or incur reasonable expenses on behalf of Owner in circumstances which Developer reasonably and
in good faith believes constitute an Emergency (any circumstance in which immediate harm to person or property is present an "Emergency").
Developer shall, in any case, notify Owner and Development Consultant as soon as reasonably practicable, both orally and in writing,
of the existence of such Emergency, of the action taken by Developer with respect thereto and the related cost thereof.

 

ARTICLE 5

AUTHORITY OF DEVELOPER

 

5.1         General Authority.
Developer shall carry out and discharge the responsibilities and obligations of Developer under this Agreement (including, without
limitation, all of the responsibilities imposed upon Developer under Article 3 hereof); provided, however, that Developer shall
have no right or authority, express or implied, to commit or otherwise obligate Owner in any manner whatsoever except to the extent
specifically provided herein or otherwise specifically authorized in writing by Owner or any agent or manager of Owner to whom
such approval authority may, from time to time, have been delegated.

 

5.2         Execution
of Documents and Agreements. Owner agrees to review any contracts or agreements submitted by Developer to Owner for Owner’s
signature and to execute any such contracts or agreements approved by Owner so as to not cause any undue delay in the Project Development
Schedule.

 

5.3         Certain Owner
Approvals. Notwithstanding any provisions of this Agreement (including, without limitation, Section 4.1 hereof), but without
limiting the other restrictions on Developer’s authority contained herein, Developer shall not take any action, expend any
sum, make any decision, give any consent, approval or authorization, enter into any agreement or incur any obligation with respect
to any of the following matters unless and until the same have been approved in writing by Owner (which approvals Owner shall grant
or withhold within three (3) Business Days after receipt of a written request, provided that if any Construction Lender’s
consent or approval is required therefor under the Construction Loan documents or under the LLC Agreement, then such three (3)
Business Day period shall be tolled until any Construction Lender’s or Owner's consent or approval, as the case may be, is
granted):

 

(a)         Entering
into any construction or architectural contracts or any contract with any Specialists or Consultants or any other contract related
to, or in connection with, the Development Work or any amendments to such contracts, or taking any action, omitting to take action
or giving any notice, the taking, omission or giving of which will (i) result in the release or discharge of any party to any such
contract, or (ii) consent to any other party to any contract to assign or otherwise transfer its rights or obligations thereunder.

 

(b)         Authorizing
the preparation of any architectural plans, specifications and drawings which materially affect design of the Development Work.

 

    	 	16	 

     

    

 

(c)         Subject
to Section 3.2.3(b) of this Agreement, authorizing or approving any proposed change in construction or in the Plans and Specifications
therefor as previously approved by Owner or in the cost thereof, or any other change which would materially affect design, value
or quality of the Development Work.

 

(d)         Entering
into or amending any agreement or other arrangement for the furnishing to or by Owner of goods or services, to the extent Owner’s
obligation under such agreement or arrangement exceeds, in any calendar year, Thirty Thousand Dollars ($30,000).

 

(e)         Commence,
settle or otherwise compromise any litigation for or on behalf of Owner.

 

(f)          Except
as expressly provided in this Agreement, commit or otherwise obligate Owner in any manner with any party including, without limitation,
any governmental authority, utility company, lender, tenant, Specialist or Consultant, Contractor or Architect.

 

ARTICLE 6

ACCOUNTING AND REPORTS

 

6.1         Books of
Account. Developer shall maintain or cause to be maintained for a period of not less than two (2) years after the Completion
Date of the Development Work, proper and complete records and books of account which shall fully and accurately reflect the planning,
design, permitting, scheduling, construction, leasing and completion of the Development Work. All entries to such books of account
shall be supported by sufficient documentation to permit Owner, the Members of Owner, Development Consultant and any of their respective
auditors to ascertain that said entries are properly and accurately recorded. Such books of account shall be located at Developer’s
principal office and shall be maintained in accordance with Developer's standard accounting methods consistently applied. Developer
shall keep vouchers, statements, receipted bills and invoices and all other records covering all collections, if any, disbursements
and other data prior to final completion of construction. During the requisite two (2) year period, at Owner’s request the
originals of all such accounts and records, including all correspondence, shall be delivered to Owner without charge therefor.
Records and accounts shall be maintained on a basis sufficient to permit the preparation therefrom of financial statements in accordance
with generally accepted accounting principles and shall be adequate to provide Owner, the Members of Owner and their respective
representatives with all financial information as may reasonably be needed by any of the foregoing. Upon the expiration of the
requisite two (2) year period or later, if Developer seeks to destroy such records, Developer shall provide BR Investor and
Owner with the opportunity to copy or maintain the original records and accounts at no additional cost. This Section 6.1 shall
survive any termination of this Agreement.

 

6.2         Monthly Reports.
On a date to be specified by Owner for each calendar month during the Development Period for the Development Work, Developer shall
prepare a “Draw Request,” a “Development Work Control Report” and a “Monthly Financial
Reporting Package” with respect to the Development Work, and shall cause the same to be delivered to Owner and Development
Consultant certified by Developer as true, complete and correct (collectively, the “Monthly Reports”).

 

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6.2.1         Draw
Request; Monthly Draw Package. The Draw Request for the month shall include a Development Work cost summary spreadsheet which
shall be a static financial account of all costs incurred (hard and soft) substantially in the form of the monthly draw package
attached hereto as Exhibit F (as the same may be modified by any requirements of any Construction Lender that is
disbursing such funds on behalf of Owner) and with which Developer shall submit (or cause the Contractor to submit) AIA documents
G 702 Application for Payment (approved and notarized, where applicable, by the Architect) and G 703 Continuation Sheet for each
direct contract in place, along with completed lien waivers (the “Monthly Draw Package”) and statement of any
funding required from Owner.

 

6.2.2         Development
Work Control Report. The Development Work Control Report shall include an updated Project Development Schedule, and a comparison
of the amount of actual costs incurred as of the effective date of such report to the budgeted costs as of such date, shown on
a line item basis using the same categories or line items set forth in the applicable Development Budget. The Development Work
Control Report shall also include information with respect to the status of claims, contractor defaults, Force Majeure events or
other such problems encountered during the Development Period, and shall otherwise be in a form and contain types of information
satisfactory to Owner. Any written reports received by Developer from the Contractor, Architect or the Specialists or Consultants
shall be shared with Owner upon Owner's written request.

 

6.2.3         Monthly
Financial Reporting Package. The Monthly Financial Reporting Package shall include the following statements: (i) a balance
sheet as of the twenty-fifth (25th) day of the preceding calendar month, (ii) the Draw Request as of the twenty-fifth (25th) day
of the preceding calendar month, (iii) a reconciliation between the Draw Request and the Development Budget as of the twenty-fifth
(25th) day of the preceding calendar month, reflecting a comparison of the amount of actual costs incurred as of such date to the
budgeted costs as set forth in the Development Budget and (iv) a monthly bank statement and reconciliation. All documents shall
be type written and shall not have any handwritten changes to dollar values. Any handwritten changes of a non-dollar nature shall
be initialed and dated by the person who made the change. Each such report shall be certified by an officer of Developer. Neither
the giving of notice by Developer to Owner of excess expenditures in any month nor the payment of such excess expenditures, shall
act to amend or otherwise modify the Development Budget unless such modification is specifically approved by Owner in writing.
Developer shall provide the reports set forth in this Section 6.2.3 on or before the twenty-fifth (25th) day of the
month following the month for which reporting is being provided.

 

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6.3         Examination
of Books and Records. Owner, the Members of Owner, and their respective agents and representatives, at Owner’s expense,
shall have the right at all reasonable times during normal business hours and upon at least twenty-four (24) hours’ advance
notice, to audit, examine, and make copies of or extracts from the books of account and records maintained by Developer with respect
to the Development Work. If Owner shall notify Developer of either weaknesses in internal controls or errors in record keeping,
Developer shall correct such weaknesses and errors as soon as possible after they are disclosed to Developer. Developer shall notify
Owner in writing of the actions taken to correct such weaknesses and errors. If any such audit shall disclose any overpayment by
Owner to Developer, written notice of such overpayment shall be provided to Developer and the amount of such overpayment shall
be promptly reimbursed by Developer to Owner together with interest at the Prime Rate plus one percent (1%) from the date of overpayment
by Owner until the date repaid by Developer. This Section 6.3 shall survive any termination of this Agreement.

 

6.4         REIT Compliance.
Within fifteen (15) days of the end of each quarter of each fiscal year of Venture, upon receipt of a written request therefor,
Developer shall cause to be furnished to Venture (or any member of Venture making the request) such information as reasonably requested
by such party, and to the extent not readily available, which may be reasonably prepared by the Developer at the expense of the
requesting party, as is necessary for any such party (whether a direct or indirect owner) to determine its qualification as a Real
Estate Investment Trust and its compliance with REIT Requirements (as defined in the LLC Agreement) as shall be requested by the
requesting party. Further, the Developer shall cooperate in a reasonable manner at the request of Venture (or any member of Venture
making the request), at the expense of the requesting party, to work in good faith with any designated accountants or auditors
of such requesting party or its affiliates so that such requesting party or its affiliate is able to comply with any public reporting,
attestation, certification and other requirements under the Securities Exchange Act of 1934, as amended, applicable to such entity,
and to work in good faith with the designated accountants or auditors of such requesting party or any of its affiliates in connection
therewith, including for purposes of testing internal controls and procedures of such requesting party or its affiliates.

 

ARTICLE 7

DEVELOPMENT COSTS

 

7.1         Payment of
Costs. Except as otherwise provided in this Agreement and the LLC Agreement, all costs and expenses incurred in connection
with the development of the Development Work shall be the sole responsibility of Owner.

 

7.2         Method of
Payment of Development Costs. On a date to be specified by Owner for each month (in no event earlier than the 10th
day of any month in question), Developer shall deliver to Owner and Development Consultant the Monthly Report detailing the Development
Costs incurred prior to the twenty-fifth (25th) day of the preceding month and the amounts that need to be paid. Owner shall, subject
to the provisions of Section 8.2 below, within fifteen (15) calendar days (or such longer period as necessary to obtain Construction
Lender’s approval or consent and to obtain the corresponding disbursement of loan proceeds under the Construction Loan, as
applicable, or as otherwise approved by Owner), advance the funds to Developer necessary for payment and Developer shall promptly
thereafter make such payments, or Owner may elect to make such payments directly.

 

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ARTICLE 8

OWNER’S FUNDS

 

8.1         Separate
Accounts. Payments made by Owner (and the Construction Lender under the Construction Loan, if applicable) pursuant to an approved
Monthly Report may be made, at Owner’s (or any such Construction Lender’s) discretion, directly to the parties to whom
payment is owed or may be made to an account of Owner over which Developer has signature authority for further disbursement to
the Architect(s), Contractor, the Specialists and Consultants, suppliers, tenants and other creditors. Such account or accounts
shall be subject to withdrawal only upon the signature or signatures of individuals approved by Owner. Owner shall have the right
at any time to terminate Developer’s authority with respect to such accounts. Such account or accounts shall be maintained
by Owner in such financial institutions as may be selected by Owner. All such funds shall be and shall remain the property of Owner
and shall be disbursed by Developer in payment of the obligations of Owner incurred in connection with the development and construction
of the Project and the performance of the Development Work, or, subject to the provisions of Section 8.2 below, shall be disbursed
to Owner at Owner’s request. Developer shall not commingle Owner’s funds with the funds of any other Person and shall
disburse Owner’s funds only in accordance with Draw Requests approved by Owner and, if applicable, the Construction Lender
under the Construction Loan.

 

8.2         Owner’s
Duty to Provide Funds. Except as otherwise provided herein, Owner agrees that Owner will provide, as and when necessary, all
such amounts as are required to pay when due all current obligations of Owner in connection with the development and construction
of the Project and the performance of the Development Work, including all obligations of Owner to Developer hereunder. Lien waivers
will be accepted not more than one (1) month in arrears. In addition to the actual lien waivers, a “lien waiver summary spreadsheet”
shall be supplied by either Contractor or Developer such that a Development Work-to-date review of lien waivers submitted can be
reviewed. Developer shall promptly notify Owner with a reasonably detailed explanation if there are insufficient funds in the account
described in Section 8.1 above. Provided Developer has delivered the Monthly Draw Package in accordance with the provisions of
Article 7 and Owner and any applicable Construction Lender has approved same, the Development Costs set forth in such Monthly Draw
Package shall be payable as provided in Section 7.2.

 

8.3         Investment
of Owner’s Funds. If at any time there are in the bank account or accounts established pursuant to Section 8.1 above,
funds of Owner, from whatever sources, temporarily exceeding the immediate cash needs of the Development Work, Developer shall
promptly advise Owner of the existence of such excess funds, and Developer may (and at the direction of Owner shall) invest such
excess funds in such savings accounts, certificates of deposit, United States Treasury obligations, commercial paper, money market
accounts, repos, and the like, as Owner shall direct, provided that the form of any such investment shall be consistent with Developer’s
need to be able to liquidate any such investment to meet the cash needs of the Development Work from time to time. All interest
or other income resulting from such investment shall be the property of Owner and shall be held and disbursed by Developer in accordance
with this Article 8.

 

    	 	20	 

     

    

 

ARTICLE 9

INDEMNITY; LIABILITY; PLANS

 

9.1         Indemnity
of Owner. Developer hereby agrees to indemnify, defend and hold harmless Owner and its respective officers, directors, shareholders,
partners, managers, members, parents, subsidiaries, trustees, beneficiaries, investment advisors, licensees, agents, employees
and successors and assigns (each, an “Indemnified Party”), to the extent of any and all claims, demands, losses,
liabilities, actions, lawsuits and other proceedings, judgments and awards, and costs and expenses (including without limitation
reasonable and actual attorneys’ fees and court costs incurred in connection with the enforcement of this indemnity or otherwise),
suffered or incurred by such Indemnified Party to the extent of (i) fraud, gross negligence or willful misconduct of Developer
in connection with this Agreement or Developer’s services or work hereunder, (ii) Developer acting outside the scope of its
duties or authority hereunder, (iii) any Event of Default, or (iv) any violation by Developer of applicable law. Developer shall
have the right to defend, and shall defend, at its expense and by counsel of its own choosing (subject to the applicable Indemnified
Party’s approval of such counsel, not to be unreasonably withheld), against any claim or liability to which the indemnity
agreement set forth in this Section 9.1 would apply. Any settlement of any such claim or liability by Developer shall be subject
to the reasonable approval of the applicable Indemnified Party. The right of any Indemnified Party to be defended hereunder, to
defend or settle any such claim shall be limited to those cases where Developer has failed or refused to defend after written notice
to Developer or to where any Indemnified Party to be defended hereunder reasonably determines that a conflict of interest exists.
Developer or Owner, as applicable, shall regularly apprise the other of the status of all proceedings.

 

9.2         Survival
of Indemnity. The provisions of Section 9.1 hereof shall survive the completion of Developer’s services hereunder or
any termination of this Agreement.

 

9.3         No Obligation
to Third Parties. Except as otherwise provided in Section 9.1 hereof, none of the responsibilities and obligations of Developer
or Owner under this Agreement shall in any way or in any manner be deemed to create any liability of Developer or Owner to, or
any rights in, any Person other than Owner or Developer.

 

9.4         Ownership
of Plans. As between Owner and Developer, all plans, drawings and specifications prepared for Owner pursuant to this Agreement
shall remain the property of Owner whether or not the Development Work is completed, and Developer shall not make use of any of
such plans, drawings or specifications for any other Development Work or for any other purpose.

 

9.5         Nature of
Developer’s Duties and Responsibilities. Owner hereby acknowledges that Developer’s duties and responsibilities
hereunder with respect to the development and construction of the Project and the performance of the Development Work consist only
in managing, arranging, supervising and coordinating the planning, design, permitting, scheduling, construction, and completion
of the Development Work and the performance of the other Development Functions and duties under this Agreement which relate to
the Development Work, all in accordance with, and subject to the limitations of, the terms of this Agreement; that Developer is
not itself preparing any architectural or engineering plans, designs, specifications or performing any construction required for
the development or completion of the Development Work; and that Developer is not responsible for, and will not be liable for, any
work, act, omission, negligence, gross negligence or intentional misconduct of any other party (other than parties affiliated with
Developer) employed by Owner or performing work for Owner in connection with the Development Work. Nothing in this Section 9.5
shall be deemed to relieve Developer from any responsibility or liability it may have for fraud, gross negligence, willful misconduct
or a breach by Developer of its obligations under this Agreement.

 

    	 	21	 

     

    

 

ARTICLE 10

INSURANCE

 

10.1         Insurance
Requirements. Throughout the Term of this Agreement, insurance with respect to the Development Work shall be carried and maintained
in force in accordance with the provisions contained in Exhibit G attached hereto and incorporated herein by this
reference, with the premiums and other costs and expenses for such required insurance to be borne as provided in Exhibit
G attached hereto. A copy of a certificate of insurance in force, issued by the insurer as provided in Exhibit G
attached hereto, shall be delivered by the party required to maintain such insurance to the other party on or before the commencement
of development activities on the Property, and with respect to renewal or replacement policies, not less than thirty (30) calendar
days prior to the expiration of the policy being renewed or replaced.

 

10.2         Waiver of
Subrogation. Each insurance policy maintained by Owner and Developer with respect to the Development Work shall contain a waiver
of subrogation clause, so that no insurer shall have any claim over or against Owner or Developer, as the case may be, by way of
subrogation or otherwise, with respect to any claims which are insured under any such policy.

 

ARTICLE 11

COMPENSATION OF DEVELOPER

 

11.1         Development
Fee for the Development Work.

 

(a)         For
and in consideration of the services rendered by Developer with respect to the Development Work, Owner shall, subject to and in
accordance with the terms and provisions of this Agreement and the Construction Loan, pay to Developer during each month of the
Term, the Development Costs for the applicable month together with the applicable monthly installment of the Development Fee. The
Development Fee shall be three percent (3%) of the total Development Budget (less the Development Fee, land acquisition costs and
any financing fee or acquisition fee paid to Developer or its Affiliate).

 

    	 	22	 

     

    

 

(b)         The
Development Fee shall be deemed earned and payable, subject to any lender requirements under the Construction Loan, as follows:
thirty percent (30%) upon closing of the Construction Loan (the "30% Draw") with the balance paid in equal monthly
installments over the remainder of the Development Period reflected in the Project Development Schedule, payable together with
the Development Costs for the applicable month in accordance with the provisions of Section 7.2. Owner agrees to use commercially
reasonable efforts to negotiate terms in the Construction Loan documents to reflect the payment schedule set forth in this Section
11.1(b). To the extent the Construction Loan provides for a different schedule for the funding and payment of the Development Fee,
the payment provisions set forth herein shall be deemed automatically modified and amended to comply with the terms of the Construction
Loan, including any modification to the timing of the payment of any unpaid amount of the Development Fee not disbursed through
the Monthly Draws under the Construction Loan until Final Completion as provided for in the Construction Loan. Notwithstanding
the foregoing, until the closing of the Construction Loan, Developer shall be entitled to take draws of the Development Fee in
the following manner:

 

1. On a monthly
basis, Developer shall be entitled to draw an amount equal to the full Development Fee divided by twenty-four (24) (the "Pre-Construction
Loan Closing Draw").

 

2. At such
time as the Construction Loan closes, Developer shall be entitled to draw for the 30% Draw less an amount equal to the sum of all
Pre-Construction Loan Closing Draws paid to Developer.

 

3. From and
after the closing of the Construction Loan, the Developer shall be entitled to draw the remaining unpaid portion of the Development
Fee in monthly installments over the course of the over the remainder of the Development Period reflected in the Project Development
Schedule, payable together with the Development Costs for the applicable month in accordance with the provisions of Section 7.2.

 

(c)         The
Development Fee shall not exceed the amount listed in the Development Budget annexed hereto as Exhibit D as the “Development
Fee”, nor the amount listed in the final Development Budget approved by Owner at the time of the Construction Loan closing
and commencement of construction, provided, however, that if there is material change in the scope of the Development Work, Developer
and Owner shall negotiate in good faith to adjust, upward or downward, as applicable the Development Fee to reflect the increase
or decrease in the Development Budget resulting from such change in scope.

 

11.2        Reimbursement
of Advances. Developer shall not be required to advance any of its own funds for the payment of any costs and expenses incurred
by or on behalf of Owner in connection with the Development Work, but if Developer, pursuant to authority granted to Developer
by Owner in writing, advances Developer’s own funds in payment of any of such costs and expenses covered by the Development
Budget or that Developer is permitted to incur hereunder, Owner agrees to reimburse Developer for such costs and expenses. The
amounts to be reimbursed by Owner to Developer pursuant to this Section 11.2 shall be paid monthly, within thirty (30) calendar
days after receipt by Owner of a bill therefor accompanied by supporting statements, invoices, documents or, if such bill and supporting
documentation is not available due to the nature of the cost or expense incurred, an explanation in reasonable detail from Developer
of the costs and expenses to be reimbursed.

 

    	 	23	 

     

    

 

11.3         Late Payments.
Any amounts or sums due from Owner to Developer under this Agreement which are not paid when due (where such non-payment continues
for sixty (60) calendar days after written notice from Developer to Owner specifying the payment Owner has failed to make) shall
bear interest at the Prime Rate plus one percent (1%) from the date such payment was due.

 

11.4         Duplicate
Payments. Any particular fees payable or expenses or costs reimbursed to Developer under this Agreement shall not be paid or
reimbursable to Developer or any Affiliate of Developer under any other agreement, and any fees payable or expense or cost reimbursed
to Developer or any Affiliate of Developer under any other agreement shall not be paid or reimbursed to Developer under this Agreement,
it being the intention and agreement of the parties that Developer and its Affiliates shall be paid or reimbursed only once for
any particular fee or reimbursable expense or cost.

 

ARTICLE 12

TERM AND TERMINATION

 

12.1         Term.
The term of this Agreement (the “Term”) shall commence on the date of this Agreement and shall continue until
the date upon which Final Completion is achieved, unless this Agreement is earlier terminated pursuant to the provisions contained
in this Agreement.

 

12.2         Intentionally
Omitted.

 

12.3         Termination
Upon Sale; Change in Control. This Agreement shall be terminable by Owner upon written notice to Developer of (a) the sale
by Owner of all of its right, title and interest in and to the entire Property (including any sale by assignment, foreclosure,
deed in lieu of foreclosure, foreclosure or sale of all of the ownership interests in Owner, or otherwise); or (b) the sale by
Owner of all of its right, title and interest in and to the entire Project (including any sale by assignment, foreclosure, deed
in lieu of foreclosure, foreclosure or sale of all of the ownership interests in Owner, or otherwise), (c) the sale or other transfer
of the membership interest held by TriBridge Co-Invest 29, LLC in Venture (other than to an affiliate thereof as permitted under
the LLC Agreement) or (d) any sale or transaction or series of transactions which results in a TriBridge Change of Control, as
defined in the LLC Agreement.

 

12.4         Developer
Default. Upon the happening of any Event of Default by Developer, Owner shall have the absolute unconditional right, in addition
to all other rights and remedies available to Owner at law or in equity, to terminate this Agreement by giving written notice of
such termination to Developer. Any one or more of the following events shall constitute an “Event of Default”
by Developer under this Agreement:

 

    	 	24	 

     

    

 

(a)         If Developer
shall fail to observe, perform or comply with any term, covenant, agreement or condition of this Agreement which is to be observed,
performed or complied with by Developer under the provisions of this Agreement, and such failure shall continue uncured for thirty
(30) calendar days after the giving of written notice thereof by Owner to Developer specifying the nature of such failure, unless
such failure can be cured but is not susceptible of being cured within said thirty (30) calendar day period, in which event such
a failure shall not constitute an Event of Default if Developer commences curative action within said thirty (30) calendar day
period, and thereafter prosecutes such action to completion with all due diligence and dispatch and completes such cure within
one hundred fifty (150) calendar days after the giving of such notice;

 

(b)         If Developer
shall make a general assignment for the benefit of creditors;

 

(c)         If any
petition shall be filed by or against Developer in any court, whether or not pursuant to any statute of the United States or of
any State, in any bankruptcy, reorganization, dissolution, liquidation, composition, extension, arrangement or insolvency proceedings,
and Developer files, consents to or directly or indirectly acquiesces to such petition;

(d)         If,
in any proceeding, a receiver, trustee, liquidator or similar court-appointed agent be appointed for all or a substantial portion
of the property or assets of Developer, and same shall not be discharged within thirty (30) calendar days after such appointment;

 

(e)         If (i)
Developer shall intentionally fail or willfully refuse, in bad faith, to perform any of its duties or obligations hereunder, (ii)
Developer shall misappropriate any funds of Owner or the Construction Lender in the possession or control of Developer (unless
such misappropriation is caused by an employee of Developer and such employee's employment is immediately terminated and the misappropriated
funds are restored within five (5) Business Days of such misappropriation), (iii) Developer shall commit willful misconduct, gross
negligence or an act of fraud against Owner or otherwise in connection with the Construction Loan, the Project or the Development
Work, or (iv) if TriBridge Co-Invest 29, LLC is removed as a "manager" of the Venture; or

 

(f)          Failure
to achieve the Completion Date by the date of completion required by Owner's Construction Lender under the applicable loan documents
governing Owner's Construction Loan, subject to the following sentence. Such date shall be adjourned to the extent the failure
to achieve the Completion Date by such date is caused by Force Majeure and Developer promptly notifies Owner of the delay arising
from said Force Majeure, to the extent such failure is not otherwise a default (i.e. beyond applicable grace periods, including,
without limitation, any applicable "force majeure" provisions) under the Construction Loan.

 

    	 	25	 

     

    

 

12.5         Default
of Owner. If Owner fails to comply with or perform in any respect any of the material terms and provisions to be complied with
or any of the obligations to be performed by Owner under this Agreement, and such failure continues uncured for a period of thirty
(30) calendar days after written notice to Owner specifying the nature of such default (or such longer period of time as may be
needed in the exercise by Owner of due diligence to effect a cure of any non-monetary default), then Developer shall have the right,
in addition to all other rights and remedies available to Developer at law or in equity, at its option, to terminate this Agreement
by giving written notice thereof to Owner, in which event Owner shall promptly pay to Developer, in cash, the sums payable to Developer
upon termination as provided in Section 12.6 hereof, and upon the payment of such amounts, subject to Sections 3.6, 6.1, 6.3, 9.2
and 12.7 hereof, Owner and Developer shall have no further rights, duties, liabilities or obligations whatsoever under this Agreement
(Developer hereby waiving all other rights and remedies that may be available under applicable law).

 

12.6         Obligation
for Fees and Expenses Upon Termination. Upon any termination of this Agreement pursuant to Sections 12.3 or 12.5 herein, Owner
shall pay to Developer all amounts due to Developer as of the date of termination pursuant to the terms of this Agreement (including,
without limitation, any earned but unpaid installments of the Development Fee), and upon the payment of all such amounts payable
under this Section, subject to Sections 3.6, 6.1, 6.3, 9.2 and 12.7 hereof, Owner and Developer shall have no further rights, duties,
liabilities or obligations whatsoever under this Agreement (unless such termination is effective only as to a portion of the Development
Work). The foregoing notwithstanding, unpaid portions of the Development Fee otherwise payable to Developer shall not be payable
to Developer in the event that this Agreement has terminated as a result of acts that are the subject of Subsections (c) and (d)
of Section 12.3 or if the Project is foreclosed or transferred pursuant to a deed in lieu as a result of the acts or omissions
of Developer or its Affiliates.

 

12.7         Actions
Upon Termination. Upon any termination of this Agreement, Developer shall promptly account for and deliver to Owner any monies
due Owner under this Agreement, whether received before or after such termination, and shall deliver to Owner or to such other
Person as Owner shall designate in writing, all materials, supplies, equipment, keys, contracts, documents and books and records
pertaining to this Agreement or the development of the Property within the possession or control of Developer. Developer shall
also furnish all such information, take all such other action and shall cooperate with Owner as Owner shall reasonably require
in order to effectuate an orderly and systematic termination of Developer’s duties and activities hereunder and an orderly
and systematic transfer of duties to Developer’s successor. This Section 12.7 of this Agreement shall survive any termination
of this Agreement.

 

ARTICLE 13

MISCELLANEOUS

 

13.1         Governing
Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the state in which the Project
is located. Each party hereby consents to the exclusive venue and jurisdiction of any state or federal court located within New
York, waives personal service of any and all process upon such party, consents to service of process by registered mail directed
to such party at the address stated in Section 13.7, and acknowledges that service so made shall be deemed to be completed upon
actual delivery thereof (whether accepted or refused). In addition, each party consents and agrees that venue of any action instituted
under this Agreement or any agreement executed in connection herewith shall be proper only in New York, and each party hereby waives
any objection to venue.

 

    	 	26	 

     

    

 

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

 

13.3         Entire Agreement.
This Agreement contains the entire understanding among the parties and supersedes any prior understanding and agreements between
them respecting the within subject matter, subject only to the LLC Agreement. There are no representations, agreements, arrangements
or understandings, oral or written, between or among the parties hereto relating to the subject matter of this Agreement which
are not fully expressed herein.

 

13.4         Severability.
This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances,
rules and regulations. If any provision of this Agreement, or the application thereof to any Person or circumstance, shall, for
any reason and to any extent, be invalid or unenforceable, the remainder of this Agreement and the application of such provision
to other Persons or circumstances shall not be affected thereby, but rather shall be enforced to the greatest extent permitted
by law.

 

13.5         Section
Headings. The section headings are inserted only as a matter of convenience and for reference and in no way define, limit or
describe the scope or intent of this Agreement or in any way affect this Agreement.

 

13.6         No Partnership;
Competition. Owner shall not and does not by this Agreement in any way or for any purpose become a partner of Developer in
the conduct of its business, or otherwise, or a joint venturer of or a member of a joint enterprise with Developer, but rather
Developer is and shall, for all purposes of this Agreement and the development of the Development Work, be deemed an “independent
contractor” of Owner. It is expressly understood and agreed by the parties hereto that either party may engage in any other
business or investment, including the ownership of, or investment in, real estate and the development, operation, leasing and management
of office, retail and residential apartment units and buildings and that the other party hereto shall have no rights in and to
any such business or investment or the income or profit derived therefrom.

 

13.7         Notices.
All notices or other communications required or permitted hereunder shall be in writing and shall be delivered or sent, as the
case may be, by any of the following methods: (a) personal delivery with signed receipt; (b) nationally recognized overnight commercial
carrier or delivery service providing a receipt of delivery; (c) registered or certified mail (with postage prepaid and return
receipt requested); or (d) by electronic mail, provided that confirmation of delivery thereof is received and a confirmation copy
is delivered within one (1) Business Day thereafter by one of the methods set forth in clauses (a), (b) or (c) of this Section
13.7. The effective date of any such notice or other communication shall be deemed to be the earlier of (i) if personally delivered,
the date of delivery to the address of the party to receive such notice; (ii) if delivered by overnight commercial carrier or delivery
service, one (1) Business Day following the receipt of such communication by such carrier or service from the sender, as shown
on the sender’s delivery invoice from such carrier or service, as the case may be; (iii) if mailed, three (3) Business Days
after the date of posting as shown on the sender’s registry or certification receipt; or (iv) if delivered by electronic
mail, upon the date of transmission (provided a notice of transmission failure is not received by the sender (for avoidance of
doubt, an "automatic out-of office reply" shall not constitute a notice of transmission failure), provided such additional
notice is given as described in clause (d) of this Section 13.7. Any reference herein to the date of receipt, delivery, or giving,
as the case may be, of any notice or other communication shall refer to the date such communication becomes effective under the
terms of this Section 13.7. The addresses for purposes of the giving of notices hereunder are:

 

    	 	27	 

     

    

 

	 	If to Developer:
	 	 
	 	TriBridge Residential Development, LLC
	 	1575 Northside Drive NW
	 	Suite 200, Building 100
	 	Atlanta, GA 30318
	 	Attn: Bobby West 
	 	Email: bobbyw@tribridgeres.com
	 	 
	 	With a copy to:
	 	 
	 	TriBridge Residential Development, LLC
	 	1575 Northside Drive NW
	 	Suite 200, Building 100
	 	Atlanta, GA 30318
	 	Attn: Katherine Mosley 
	 	Email: katherinem@tribridgeres.com
	 	 
	 	With a copy to:
	 	 
	 	Nelson Mullins Riley & Scarborough LLP
	 	201 17th Street NW, Suite 1700
	 	Atlanta, GA 30363 
	 	Attn:  Eric R. Wilensky
	 	Email: eric.wilensky@nelsonmullins.com
	 	 
	 	If to Owner:
	 	 
	 	TriBridge Residential, LLC
	 	1575 Northside Drive NW
	 	Suite 200, Building 100
	 	Atlanta, GA 30318
	 	Attn: Bobby West 
	 	Email: bobbyw@tribridgeres.com

 

    	 	28	 

     

    

 

	 	With a copy to:
	 	 
	 	Bluerock Real Estate, L.L.C.
	 	712 Fifth Avenue
	 	9th Floor
	 	New York, NY 10019
	 	Attn: James Babb and Michael Konig, Esq.
	 	Email: jbabb@bluerockre.com and mkonig@bluerockre.com  
	 	 
	 	and
	 	 
	 	Nelson Mullins Riley & Scarborough LLP
	 	201 17th Street NW, Suite 1700
	 	Atlanta, GA 30363 
	 	Attn:  Eric R. Wilensky
	 	Email: eric.wilensky@nelsonmullins.com
	 	 
	 	and
	 	 
	 	Kaplan Voekler Cunningham & Frank PLC
	 	1401 East Cary Street
	 	Richmond, VA 23219
	 	Attn: Robert G. Boyle, Jr.
	 	Email: rboyle@kv-legal.com

 

13.8         Assignment.

 

(a)         Except
as otherwise provided in Section 13.8(b) below, neither party hereto shall have the right to assign this Agreement or any of its
rights hereunder without the prior written consent of the other party, and any such assignment in the absence of such written consent
shall for all purposes be deemed null and void.

 

(b)         Notwithstanding
the provisions of Section 13.8(a) hereof, Owner shall have the absolute right and privilege, at its sole option and in its sole
discretion, at any time and from time to time, to assign Owner’s rights and interests under this Agreement, subject to the
provisions hereof and all of the rights of Developer hereunder, in whole or in part, to any Affiliate of Owner or to any person
or entity owning an interest in or participating with Owner in the acquisition, ownership or development of all or any portion
of the Property, Project or Development Work. Owner may also assign this Agreement to a Lender as collateral in connection with
any related Construction Loan procured by Owner and, in any such case, Developer will execute any Construction Lender required
documentation in connection therewith.

 

    	 	29	 

     

    

 

13.9         Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Whenever the terms “Owner” and “Developer” are used herein, they shall
be deemed to mean and include Owner and Developer and their respective successors and permitted assigns in the same manner and
to the same extent as if specified each time said terms appear herein.

 

13.10         Estoppel
Certificates. Each party hereto shall, from time to time, upon not less than fifteen (15) calendar days notice from the other
party, execute and deliver to the other party a certificate stating that this Agreement is unmodified and in full force and effect,
or, if modified, that this Agreement is in full force and effect as modified, and stating the modifications and stating whether
or not, to the best of the certifying party’s knowledge, the other party is in default in any respect under this Agreement,
and, if in default, specifying the nature and character of such default.

 

13.11         Amendment.
This Agreement may not be amended, altered or modified except by an instrument in writing and signed by the parties hereto. The
foregoing notwithstanding, the Developer and Owner agree to modify and amend this Agreement in the manner and to the extent reasonably
required by any Construction Lender (or any prospective lender) under the Construction Loan in order to obtain the Construction
Loan or in order to obtain satisfactory terms, in Owner’s reasonable discretion, under the Construction Loan.

 

13.12         Construction.
The parties agree that they have both participated equally in the negotiation and preparation of this Agreement and no court construing
this Agreement or the rights of the parties hereunder shall be prejudiced toward either party by reason of the rule of construction
that a document is to be construed more strictly against the party or parties who prepared the same.

 

13.13         No Waiver.
No waiver by either party of any default of any other party or of any event, circumstance or condition permitting a party to terminate
this Agreement shall constitute a waiver of any other default of the other party or of any other event, circumstance or condition,
permitting such termination, whether of the same or of any other nature or type and whether preceding, concurrent or succeeding;
and no failure on the part of either party to exercise any right it may have by the terms hereof or by law upon the default of
the other party and no delay in the exercise of such right shall prevent the exercise thereof by the non-defaulting party at any
time when the other party may continue to be so in default, and no such failure or delay and no waiver of default shall operate
as a waiver of any other default, or as a modification in any respect of the provisions of this Agreement. The subsequent acceptance
of any payment or performance pursuant to this Agreement shall not constitute a waiver of any preceding default by a defaulting
party or of any preceding event, circumstance or condition permitting termination hereunder, other than default in the payment
of the particular payment or the performance of the particular matter so accepted, regardless of the non-defaulting party’s
knowledge of the preceding default or the preceding event, circumstance or condition, at the time of accepting such payment or
performance, nor shall the non-defaulting party’s acceptance of such payment or performance after termination constitute
a reinstatement, extension or renewal of this Agreement or revocation of any notice or other act by the non-defaulting party.

 

    	 	30	 

     

    

 

13.14         Attorneys’
Fees. Should any litigation be commenced between the parties hereto or their representatives concerning any provision of this
Agreement or the rights and duties of any Person in relation thereto, the party or parties prevailing in such litigation shall
be entitled, in addition to such other relief as may be granted, to an award of all actual attorneys’ fees and costs incurred
in such litigation, without regard to any schedule or rule of court purporting to restrict such an award, including, without limitation,
actual attorneys’ fees, costs and expenses incurred in connection with (a) enforcing, perfecting and executing such judgment,
(b) post-judgment motions; (c) contempt proceedings; (d) garnishment, levee, and debtor and third-party examinations; (e) discovery;
and (f) bankruptcy litigation.

 

13.15         Mutual
Waivers of Jury Trial. Developer and Owner each hereby expressly, irrevocably, fully and forever releases, waives and relinquishes
any and all rights to trial by jury in any claim, demand, action, suit, proceeding or cause of action in which Developer or Owner
is a party, which in any way (directly or indirectly) arises out of, results from or relates to any of the following, in either
case whether now existing or hereafter arising and whether based on contract or tort or any other legal basis: (a) this Agreement,
any past, present or future act, omission, conduct or activity with respect to this Agreement; (b) any transaction, event or occurrence
contemplated by this Agreement; (c) the performance of any obligation or the exercise of any right under this Agreement; or (d)
the enforcement of this Agreement. Developer and Owner each understands that trial by jury is a federal and state constitutional
right and Developer and Owner each acknowledge that it is their intent to waive such rights herein. Developer and Owner each further
acknowledge that the consideration specified in this Agreement includes consideration for waivers of trial by jury by Developer
and Owner.

 

13.16         Equitable
Remedies. Each party hereto shall, in addition to all other rights provided herein or as may be provided by law, and subject
to the limitations set forth herein, be entitled to all equitable remedies including those of specific performance and injunction,
to enforce such party’s rights hereunder.

 

13.17         Remedies
Cumulative. Each right, power, and remedy provided for herein or now or hereafter existing at law, in equity, by statute or
otherwise shall be cumulative and concurrent and shall be in addition to every other right, power, or remedy provided for herein
or now or hereafter existing at law, in equity, by statute or otherwise, and the exercise or beginning of the exercise or the forbearance
of exercise by any party of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise
by such party of any or all of such other rights, powers or remedies.

 

[Signature Pages Follow]

 

    	 	31	 

     

    

 

IN WITNESS WHEREOF,
Owner and Developer have caused this Agreement to be executed on the day, month and year first above dated.

 

	OWNER:	 
	 	 
	BR-TBR LAKE BOONE NC OWNER, LLC, a Delaware limited liability company	 
	 	 
	By:	/s/ Michael Konig  	 

	Name:	Michael Konig	 

	Title:	Authorized Signatory	 

 

[Signature Page to Development Agreement]

 

     

     

    

 

	DEVELOPER:	 
	 	 
	TRIBRIDGE RESIDENTIAL DEVELOPMENT, LLC, a Georgia limited liability company 	 
	 	 
	By:	/s/ Robert West	 

	Name:	Robert West	 

	Title:	Authorized Signatory	 

 

[Signature Page to Development Agreement]

 

     

     

    

 

Schedule "A"

Legal Description

 

LOT 5

 

Beginning at the intersection of the common
property line of Lot 2 and Lot 5 and the proposed western right of way of Landmark drive for the Point of Beginning; thence with
said common property line North 90°00'00" West a distance of 206.82 feet to a point; thence South 42°51'56" West
a distance of 53.07 feet to a point; thence South 42°51'56" West a distance of 11.70 feet to a point; thence South 90°00'00"
West a distance of 167.04 feet to a point; thence North 90°00'00" West a distance of 148.75 feet to a point on the common
property line of Rex Hospital, Inc.; thence with said common property line North 02°02'27" West a distance of 123.67 feet
to a point; thence North 01°27'47" East a distance of 67.99 feet to a point; thence North 01°46'30" East a distance
of 229.73 feet to a point; thence leaving said common line North 89°41'51" East a distance of 191.82 feet to a point;
thence North 60°48'38" East a distance of 5.84 feet to a point; thence North 73°01'16" East a distance of 6.77
feet to a point; thence North 89°12'09" East a distance of 3.91 feet to a point; thence North 88°22'36" East
a distance of 2.52 feet to a point; thence North 72°01'11" East a distance of 7.90 feet to a point; thence North 71°41'16"
East a distance of 2.53 feet to a point; thence North 61°01'39" East a distance of 26.49 feet to a point; thence North
37°58'10" East a distance of 13.14 feet to a point; thence North 44°40'07" East a distance of 1.30 feet to a
point; thence North 66°56'39" East a distance of 8.53 feet to a point; thence North 88°37'38" East a distance
of 19.21 feet to a point; thence North 59°35'06" East a distance of 43.12 feet to a point; thence North 88°42'05"
East a distance of 29.61 feet to a point; thence North 69°11'56" East a distance of 11.97 feet to a point; thence North
58°48'14" East a distance of 6.44 feet to a point; thence North 54°24'57" East a distance of 8.12 feet to a point;
thence North 60°36'33" East a distance of 32.51 feet to a point; thence North 38°25'21" East a distance of 4.45
feet to a point; thence North 24°19'31" East a distance of 7.67 feet to a point; thence South 83°46'51" East
a distance of 9.55 feet to a point; thence North 83°26'13" East a distance of 21.80 feet to a point; thence North 82°45'29"
East a distance of 16.12 feet to a point; thence North 74°15'03" East a distance of 2.78 feet to a point; thence North
51°04'07" East a distance of 15.01 feet to a point; thence North 89°50'43" East a distance of 12.92 feet to a
point; thence South 54°59'54" East a distance of 17.05 feet to a point; thence South 18°25'25" East a distance
of 5.90 feet to a point; thence South 05°29'37" West a distance of 8.08 feet to a point; thence South 43°32'19"
East a distance of 7.58 feet to a point; thence North 77°37'40" East a distance of 3.09 feet to a point; thence North
70°21'51" East a distance of 11.09 feet to a point; thence North 81°04'41" East a distance of 12.50 feet to a
point; thence North 76°21'01" East a distance of 18.23 feet to a point; thence North 79°21'31" East a distance
of 39.37 feet to a point; thence South 02°48'05" West a distance of 58.07 feet to a point; thence South 87°13'57"
East a distance of 5.00 feet to a point on the proposed western right of way of Landmark Drive; thence with said proposed right
of way South 02°46'03" West a distance of 416.99 feet to the Point of Beginning, containing 258,505 square feet or 5.93
acres.

 

    	 	A-1	 

     

    

 

LOT 6

 

Beginning at the intersection of the common
property line of Lot 1 and Lot 6 and the proposed eastern right of way of Landmark Drive for the Point of Beginning; thence with
said proposed right of way North 02°46'03" East a distance of 344.92 feet to a point; thence leaving said proposed right
South 87°13'57" East a distance of 5.00 feet to a point; thence North 02°46'03" East a distance of 70.52 feet
to a point; thence South 87°00'00" East a distance of 139.41 feet to a point on the common property line of Meredith Partners
LLC.; thence with said common property line South 02°47'30" West a distance of 415.46 feet to a point on the common property
line of Lot 1; thence with said common property line North 87°00'00" West a distance of 144.24 feet to the Point of Beginning,
containing 59,607 square feet or 1.37 acres.

 

    	 	A-2	 

     

    

 

EXHIBIT A

 

BUDGET CATEGORIES

 

Purchase Price

Closing Costs

Project Feasibility Costs

Design Costs

Legal Costs

Real Estate Taxes

Insurance Costs

Financing Costs

Government Costs

Misc. Direct Costs

Construction Costs (to include specifically):

		·	Lumber

		·	Copper

		·	Steel

		·	concrete

		·	drywall

		·	FF&E Costs

 

Lease-Up Period Operating Costs

Capitalized Development Fee

Development Contingency

Marketing Costs

 

    	 	A-3	 

     

    

 

EXHIBIT B

 

DESCRIPTION OF THE DEVELOPMENT WORK

 

		1.	Acquisition of the Property;

 

		2.	Engineering and Design,

 

		3.	Permits, approvals and entitlements,

 

		4.	Demolition of existing buildings

 

		5.	Construction of Project, and

 

		6.	Delivery/Turnover of units to Property Manager.

 

    	 	B-1	 

     

    

 

EXHIBIT C

 

PLANS AND SPECIFICATIONS

 

[see attached]

 

    	 	C-1	 

     

    

 

EXHIBIT D

 

DEVELOPMENT BUDGET

 

 

    	 	D-1	 

     

    

 

EXHIBIT E

 

KEY PERSONS

 

 

 

    	 	E-1	 

     

    

 

EXHIBIT F

 

SAMPLE MONTHLY DRAW PACKAGE

 

[see attached]

 

    	 	F-1	 

     

    

 

EXHIBIT G

 

INSURANCE REQUIREMENTS

 

[To be attached upon Closing of Construction
Loan, but in all events shall include applicable worker’s compensation coverage, which Developer shall cause to be carried
by the Contractor]

 

    	 	G-1

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