Document:

Exhibit 10.3

 

LIMITED LIABILITY COMPANY AGREEMENT

OF

BR-TBR WHETSTONE OWNER, LLC

 

This Limited Liability
Company Agreement (together with the schedules attached hereto, this “Agreement”) of BR-TBR WHETSTONE OWNER,
LLC, a Delaware limited liability company (the “Company”), is entered into by BR-TBR WHETSTONE VENTURE, LLC,
a Delaware limited liability company, as the sole member (the “Member”). Capitalized terms used and not otherwise
defined herein have the meanings set forth on Schedule A hereto.

 

The Member, by execution
of this Agreement, hereby forms the Company as a limited liability company pursuant to and in accordance with the Delaware Limited
Liability Company Act (6 Del. C. § 18-101 et
seq.), as amended from time to time (the “Act”), and this Agreement, and the Member hereby agrees as
follows:

 

Section 1.          Name.

 

The name of the limited
liability company formed hereby is BR-TBR Whetstone Owner, LLC.

 

Section 2.          Principal
Business Office.

 

The principal business
office of the Company shall be located at 1575 Northside Drive, Building 100, Suite 200, Atlanta, GA 30318 or such other location
as may hereafter be determined by the Member.

 

Section 3.          Registered
Office.

 

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

 

Section 4.          Registered
Agent.

 

The name and address
of the registered agent of the Company for service of process on the Company in the State of Delaware is National Registered Agents,
Inc., 160 Greentree Drive, Suite 101, Dover, DE 19904.

 

Section 5.          Member.

 

The mailing address
of the Member is set forth on Schedule B attached hereto. The Member was admitted to the Company as a member of the Company
upon its execution of a counterpart signature page to this Agreement.

 

    	 

    	 

    

  

Section 6.          Certificates.

 

Christopher Vohs is
hereby designated as an “authorized person” within the meaning of the Act, and has executed, delivered and filed the
Certificate of Formation of the Company with the Secretary of State of the State of Delaware. Upon the filing of the Certificate
of Formation with the Secretary of State of the State of Delaware, his powers as an “authorized person” ceased, and
the Member thereupon became the designated “authorized person” and shall continue as the designated “authorized
person” within the meaning of the Act. The Member shall execute, deliver and file any other certificates (and any amendments
and/or restatements thereof) necessary for the Company to qualify to do business in North Carolina and in any other jurisdiction
in which the Company may wish to conduct business. The existence of the Company as a separate legal entity shall continue until
cancellation of the Certificate of Formation as provided in the Act.

 

Section 7.          Purposes.

 

The sole purpose to
be conducted or promoted by the Company is to engage in the following activities: (a) to acquire, own, manage and operate the Property;
(b) to enter into and perform its obligations under the Loan Documents; (c) to refinance the Property in connection with a permitted
repayment of the Loan; and (d) to transact any lawful business permitted to be transacted by limited liability companies organized
under the laws of the State of Delaware that is related or incidental to and necessary, convenient or advisable for the accomplishment
of the above mentioned purposes.

 

Section 8.          Powers.

 

The Company, and the
Member on behalf of the Company, (a) shall have and exercise all powers necessary, convenient or incidental to accomplish its purposes
as set forth in Section 7 and (b) shall have and exercise all of the powers and rights conferred upon limited liability
companies formed pursuant to the Act.

 

Section 9.          Management.

 

The business and affairs
of the Company shall be managed by or under the direction of the Member. The Member shall have the power to do any and all acts
necessary, convenient or incidental to or for the furtherance of the purposes described herein, including all powers, statutory
or otherwise. Subject to Section 7, the Member has the authority to bind the Company.

 

Section 10.        Officers.

 

(a)      Officers.
The Company may have such officers, representatives or agents as are appointed from time to time by the Member (the “Officers”).
The initial Officers are hereby designated by the Member as listed on Schedule C hereto. The additional or successor Officers
shall be chosen by the Member and may consist of a President, a Secretary and a Treasurer. The Member may also choose one or more
Vice Presidents, Assistant Secretaries and Assistant Treasurers. Any number of offices may be held by the same person. The Member
may appoint such other Officers and agents as it shall deem necessary or advisable who shall hold their offices for such terms
as shall be determined from time to time by the Member. The salaries of all Officers and agents of the Company shall be fixed by
or in the manner prescribed by the Member. The Officers of the Company shall hold office until their successors are chosen and
qualified. Any Officer may be removed at any time, with or without cause, by the Member. Any vacancy occurring in any office of
the Company shall be filled by the Member.

 

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(b)       Powers
of the Officers. Notwithstanding anything else in this Agreement, the Officers shall have the authority to act on behalf of
and bind the Company only to the extent that the Member approves such action in each particular instance. For the sake of
clarity and without limiting the foregoing, the Officers shall not have the power and authority to take any action without the
specific approval or consent of the Member to take such action.

 

(c)       President.
The President shall be the chief executive officer of the Company, shall be responsible for the general and active management of
the business of the Company and, subject to Section 10(b), shall see that all specific orders and resolutions of the Member
are carried into effect. When expressly authorized by the Member, the President or any other Officer authorized by the President
or the Member shall execute all bonds, mortgages and other contracts, except where required or permitted by law or this Agreement
to be otherwise signed and executed.

 

(d)       Vice
President. In the absence of the President or in the event of the President’s inability to act, the Vice President, if
any (or in the event there be more than one Vice President, the Vice Presidents in the order designated by the Member, or in the
absence of any designation, then in the order of their election), shall perform the duties of the President expressly authorized
by the Member, and when so acting, shall have all the powers of and be subject to all the restrictions upon the President. In accordance
with Section 10(b), the Vice Presidents, if any, shall perform such other duties and have such other powers as the Member
may from time to time prescribe.

 

(e)       Secretary
and Assistant Secretary. The Secretary shall be responsible for filing legal documents and maintaining records for the Company.
The Secretary shall record all the proceedings of the meetings of the Company in a book to be kept for that purpose and shall perform
like duties for the standing committees when required. The Secretary shall give, or shall cause to be given, notice of all meetings
of the Member, if any, and, subject to Section 10(b), shall perform such other duties as may be prescribed by the Member
or the President, under whose supervision the Secretary shall serve. The Assistant Secretary, or if there be more than one, the
Assistant Secretaries in the order determined by the Member (or if there be no such determination, then in order of their election),
shall, in the absence of the Secretary or in the event of the Secretary’s inability to act, perform the duties and exercise
the powers of the Secretary and shall perform such other duties and have such other powers as the Member may from time to time
prescribe in accordance with Section 10(b).

 

(f)        Treasurer
and Assistant Treasurer. The Treasurer shall have the custody of the Company funds and securities and shall keep full and accurate
accounts of receipts and disbursements in books belonging to the Company and shall deposit all moneys and other valuable effects
in the name and to the credit of the Company in such depositories as may be designated by the Member. The Treasurer shall disburse
the funds of the Company as may be expressly ordered by the Member, taking proper vouchers for such disbursements, and shall render
to the President and to the Member an account of all of the Treasurer’s transactions and of the financial condition of the
Company. The Assistant Treasurer, or if there shall be more than one, the Assistant Treasurers in the order determined by the Member
(or if there be no such determination, then in the order of their election), shall, in the absence of the Treasurer or in the event
of the Treasurer’s inability to act, perform the duties and exercise the powers of the Treasurer and shall perform such other
duties and have such other powers as the Member may from time to time prescribe in accordance with Section 10(b).

 

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(g)       Officers
as Agents. The Officers, to the extent their powers are vested in them by specific action of the Member not inconsistent with
this Agreement, are agents of the Company for the purpose of the Company’s business and the actions of the Officers taken
in accordance with such powers shall bind the Company.

 

(h)       Duties
of Officers. Except to the extent otherwise provided herein, each Officer shall have a fiduciary duty of loyalty and care similar
to that of officers of business corporations organized under the General Corporation Law of the State of Delaware.

 

Section 11.        Limited
Liability.

 

Except as otherwise
expressly provided by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise,
shall be the debts, obligations and liabilities solely of the Company, and the Member shall not be obligated personally for any
such debt, obligation or liability of the Company solely by reason of being a Member of the Company.

 

Section 12.        Capital
Contributions.

 

The Member has contributed
to the Company property listed on Schedule B attached hereto.

 

Section 13.        Additional
Contributions.

 

The Member is not required
to make any additional capital contribution to the Company. However, the Member may make additional capital contributions to the
Company at any time upon the written consent of such Member. To the extent that the Member makes an additional capital contribution
to the Company, the Member shall revise Schedule B of this Agreement.

 

Section 14.        Allocation
of Profits and Losses.

 

The Company’s
profits and losses shall be allocated to the Member.

 

Section 15.        Distributions.

 

Distributions shall
be made to the Member at the times and in the aggregate amounts determined by the Member. Notwithstanding any provision to the
contrary contained in this Agreement, the Company shall not be required to make a distribution to the Member on account of its
interest in the Company if such distribution would violate Section 18-607 of the Act or any other applicable law or, until the
Loan is paid in full, any provision of the Loan Documents.

 

Section 16.        Books
and Records.

 

The Officers shall
keep or cause to be kept complete and accurate books of account and records with respect to the Company’s business. The books
of the Company shall at all times be maintained by the Officers. The Member and its duly authorized representatives shall have
the right to examine the Company books, records and documents during normal business hours. The Company’s books of account
shall be kept using the method of accounting determined by the Member. The Company’s independent auditor, if any, shall be
an independent public accounting firm selected by the Member.

 

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Section 17.        Other
Business.

 

The Member and any
Affiliate of the Member may engage in or possess an interest in other business ventures (unconnected with the Company) of every
kind and description, independently or with others notwithstanding any provision to the contrary at law or in equity. The Company
shall not have any rights in or to such independent ventures or the income or profits therefrom by virtue of this Agreement.

 

Section 18.        Exculpation
and Indemnification.

 

(a)       Neither
the Member nor any Officer, employee or agent of the Company nor any employee, representative, agent or Affiliate of the Member
(collectively, the “Covered Persons”) shall, to the fullest extent permitted by law, be liable to the
Company or any other Person that is a party to or is otherwise bound by this Agreement for any loss, damage or claim incurred by
reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner
reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement, except that a Covered
Person shall be liable for any such loss, damage or claim incurred by reason of such Covered Person’s gross negligence or
willful misconduct.

 

(b)       To
the fullest extent permitted by applicable law, a Covered Person shall be entitled to indemnification from the Company for any
loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person
in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on
such Covered Person by this Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any loss,
damage or claim incurred by such Covered Person by reason of such Covered Person’s gross negligence or willful misconduct
with respect to such acts or omissions; provided, however, that any indemnity under this Section 18 by the
Company shall be provided out of and to the extent of Company assets only, and the Member shall not have personal liability on
account thereof.

 

(c)       To
the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a Covered Person defending any claim,
demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition of such
claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered Person to
repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized in this Section
18.

 

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

 

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

 

(f)        The
foregoing provisions of this Section 18 shall survive any termination of this Agreement.

 

Section 19.        Assignments.

 

Subject to any transfer
restrictions contained in the Loan Documents, the Member may assign its limited liability company interest in the Company. If the
Member transfers all of its limited liability company interest in the Company pursuant to this Section 19, the transferee
shall be admitted to the Company as a member of the Company upon its execution of an instrument signifying its agreement to be
bound by the terms and conditions of this Agreement, which instrument may be a counterpart signature page to this Agreement. Such
admission shall be deemed effective immediately prior to the transfer and, immediately following such admission, the transferor
Member shall cease to be a member of the Company.

 

Section 20.        Admission
of Additional Members.

 

One or more additional
members of the Company may be admitted to the Company with the written consent of the Member. Notwithstanding the foregoing, until
the Loan is paid in full, the Company shall only have one member at any time.

 

Section 21.        Dissolution.

 

(a)       The
Company shall be dissolved, and its affairs shall be wound up upon the first to occur of the following: (i) the termination of
the legal existence of the last remaining member of the Company or the occurrence of any other event which terminates the continued
membership of the last remaining member of the Company in the Company unless the Company is continued without dissolution in a
manner permitted by this Agreement or the Act or (ii) the entry of a decree of judicial dissolution of the Company under Section
18-802 of the Act. Upon the occurrence of any event that causes the last remaining member of the Company to cease to be a member
of the Company or that causes the Member to cease to be a member of the Company, to the fullest extent permitted by law, the personal
representative of such member is hereby authorized to, and shall, within 90 days after the occurrence of the event that terminated
the continued membership of such member in the Company, agree in writing (i) to continue the existence of the Company and (ii)
to the admission of the personal representative or its nominee or designee, as the case may be, as a substitute member of the Company,
effective as of the occurrence of the event that terminated the continued membership of the last remaining member of the Company
or the Member in the Company.

 

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

 

(c)       In
the event of dissolution, the Company shall conduct only such activities as are necessary to wind up its affairs (including the
sale of the assets and property of the Company in an orderly manner), and the assets and property of the Company shall be applied
in the manner, and in the order of priority, set forth in Section 18-804 of the Act.

 

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

 

Section 22.        No
Third-Party Rights.

 

Nothing in this Agreement
shall be deemed to create any right in any Person (other than Covered Persons) not a party hereto, and this Agreement shall not
be construed in any respect to be a contract in whole or in part for the benefit of any third Person.

 

Section 23.        Severability
of Provisions.

 

Each provision of this
Agreement shall be considered severable and if for any reason any provision or provisions herein are determined to be invalid,
unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall not impair the
operation of or affect those portions of this Agreement which are valid, enforceable and legal.

 

Section 24.        Entire
Agreement.

 

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

 

Section 25.        Governing
Law.

 

This Agreement shall
be governed by and construed under the laws of the State of Delaware (without regard to conflict of laws principles), all rights
and remedies being governed by said laws.

 

Section 26.        Amendments.

 

This Agreement may
be modified, altered, supplemented or amended pursuant to a written agreement executed and delivered by the Member.

 

Section 27.        Counterparts.

 

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This Agreement may
be executed in any number of counterparts, each of which shall be deemed an original of this Agreement and all of which together
shall constitute one and the same instrument.

 

Section 28.        Notices.

 

Any notices required
to be delivered hereunder shall be in writing and personally delivered, mailed or sent by telecopy, electronic mail or other similar
form of rapid transmission, and shall be deemed to have been duly given upon receipt (a) in the case of the Company, to the Company
at its address in Section 2, (b) in the case of the Member, to the Member at its address as listed on Schedule B
attached hereto and (c) in the case of either of the foregoing, at such other address as may be designated by written notice to
the other party.

 

Section 29.        Effectiveness.

 

Pursuant to Section
18-201 (d) of the Act, this Agreement shall be effective as of the time of the filing of the Certificate of Formation with the
Office of the Delaware Secretary of State on April 10, 2015.

 

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IN WITNESS WHEREOF,
the undersigned, intending to be legally bound hereby, has duly executed this Limited Liability Company Agreement as of the 20th
day of May, 2015.

 

	 	MEMBER:
	 	 
	 	BR-TBR WHETSTONE VENTURE, LLC, a Delaware limited liability company

 

	 	By:	BR WHETSTONE MEMBER, LLC, a Delaware limited liability company, its co-Manager

 

	 	 	By:	Bluerock Special Opportunity + Income Fund III, LLC, a Delaware limited liability company, its Manager

 

	 	 	By:	BR SOIF III Manager, LLC, a Delaware limited liability company, its Manager

 

	 	 	By: 	/s/ Jordan Ruddy
	 	 	 	      Jordan Ruddy,
	 	 	 	      Authorized Signatory

 

	 	By:	TRIBRIDGE CO-INVEST 27, LLC, a Georgia limited liability company, its co-Manager

 

	 	 	By:	TriBridge Investments II, LLC,
	 	 	 a Georgia limited liability company,
	 	 	its Managing Member

 

	 	 	By:	/s/ Robert West
	 	 	Name:	Robert West
	 	 	Its:	Authorized Signatory

 

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SCHEDULE A

 

Definitions

A.           Definitions

 

When used in this Agreement,
the following terms not otherwise defined herein have the following meanings:

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly Controlling or Controlled by or under direct or indirect
common Control with such Person.

 

“Agreement”
means this Limited Liability Company Agreement of the Company, together with the schedules attached hereto, as amended, restated
or supplemented or otherwise modified from time to time.

 

“Bankruptcy”
means, with respect to any Person, if such Person (i) makes an assignment for the benefit of creditors, (ii) files a voluntary
petition in bankruptcy, (iii) is adjudged bankrupt or insolvent, or has entered against it an order for relief, in any bankruptcy
or insolvency proceedings, (iv) files a petition or answer seeking for itself any reorganization, arrangement, composition,
readjustment, liquidation or similar relief under any statute, law or regulation, (v) files an answer or other pleading admitting
or failing to contest the material allegations of a petition filed against it in any proceeding of this nature, (vi) seeks,
consents to or acquiesces in the appointment of a trustee, receiver or liquidator of the Person or of all or any substantial part
of its properties, or (vii) if 120 days after the commencement of any proceeding against the Person seeking reorganization,
arrangement, composition, readjustment, liquidation or similar relief under any statute, law or regulation, if the proceeding has
not been dismissed, or if within 90 days after the appointment without such Person’s consent or acquiescence of a trustee,
receiver or liquidator of such Person or of all or any substantial part of its properties, the appointment is not vacated or stayed,
or within 90 days after the expiration of any such stay, the appointment is not vacated. The foregoing definition of “Bankruptcy”
is intended to replace and shall supersede and replace the definition of “Bankruptcy” set forth in Sections 18-101(1)
and 18-304 of the Act.

 

“Certificate
of Formation” means the Certificate of Formation of the Company filed with the Secretary of State of the State of Delaware,
as amended or amended and restated from time to time.

 

“Company”
means BR-TBR Whetstone Owner, LLC, a Delaware limited liability company.

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities or general partnership or managing member interests, by contract or
otherwise. “Controlling” and “Controlled” shall have correlative meanings. Without limiting the generality
of the foregoing, a Person shall be deemed to Control any other Person in which it owns, directly or indirectly, a majority of
the ownership interests.

 

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“Lender”
means KeyBank National Association, and its successors and assigns of the Loan.

 

“Loan”
has the meaning assigned to that term in the Loan Agreement.

 

“Loan Agreement”
means that certain Loan Agreement dated as of May 20, 2015 by and between Lender and the Company, as amended, restated, supplemented
or otherwise modified from time to time.

 

“Loan Documents”
has the meaning assigned to that term in the Loan Agreement.

 

“Member”
means BR-TBR Whetstone Venture, LLC, a Delaware limited liability company, as the initial member of the Company, and includes any
Person admitted as an additional member of the Company or a substitute member of the Company pursuant to the provisions of this
Agreement, each in its capacity as a member of the Company.

 

“Officers”
means the officers, representatives or agents appointed from time to time by the Member pursuant to Section 10(a).

 

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

 

“Property”
has the meaning assigned to that term in the Loan Agreement.

 

B.            Rules
of Construction

 

Definitions in this
Agreement apply equally to both the singular and plural forms of the defined terms. The words “include” and “including”
shall be deemed to be followed by the phrase “without limitation.” The terms “herein,” “hereof”
and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section,
paragraph or subdivision. The Section titles appear as a matter of convenience only and shall not affect the interpretation of
this Agreement. All Section, paragraph, clause, Exhibit or Schedule references not attributed to a particular document shall be
references to such parts of this Agreement.

  

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SCHEDULE B

 

Member

 

	Name	 	Mailing Address	 	Capital Contribution	 	 	Membership
 Interest	 
	BR-TBR

 Whetstone

 Venture, LLC	 	1575 Northside Drive, 

Building 100, Suite 200,

Atlanta, GA 30318	 	$	13,435,208.16	 	 	 	100	%

 

    	 

    	 

    

 

SCHEDULE C

 

	OFFICERS	 	TITLE
	 	 	 
	Jordan Ruddy	 	President
	Christopher Vohs	 	Treasurer
	Michael Konig	 	Secretary
	James Babb	 	Vice President
	James Schroder	 	Vice President
	Bobby West	 	Vice President
	Lee Walker	 	Vice PresidentExhibit 10.4

 

PROPERTY MANAGEMENT AGREEMENT

 

This PROPERTY MANAGEMENT AGREEMENT
(the “Agreement”), entered into as of this 20th day of May, 2015, by BR-TBR WHETSTONE OWNER, LLC, a Delaware limited
liability company (“Owner”) and TRIBRIDGE RESIDENTIAL PROPERTY MANAGEMENT ADVISORS, LLC, a Georgia limited liability
company (“Manager”).

 

IN CONSIDERATION of the mutual
covenants and promises each to the other made herein, the Owner does hereby engage Manager exclusively as an independent contractor,
and the Manager does hereby accept the engagement, to rent, lease, operate, repair and manage the property more particularly described
below (the “Project”) upon the following terms and conditions.

 

THE PROJECT: Located in the City
of Durham, County of Durham, State of North Carolina and being known to consist of 204 multi-family residential units, and more
particularly described as:

 

Whetstone Apartments, 501 Willard St, Durham,
NC 27701

 

SECTION 1: DEFINITIONS

 

1.01 TERM

The term of this Agreement
shall commence on the date hereof and shall, subject to the provisions hereof, terminate on December 31, 2015. This Agreement
will automatically renew on a year to year basis thereafter until and unless terminated in accordance with the terms hereof under
Section 7.06; provided, however, as long as the Project has met the Projected Financial Metrics during the initial term expiring
on December 31, 2015, the Owner will, subject to the absence of any “for cause” events described in Section 7.06,
not terminate this Agreement on December 31, 2015 and the term will automatically extend for an additional one year period to
December 31, 2016. For purposes hereof, “Projected Financial Metrics” shall mean (i) the Project is 60% leased as
of November 20, 2015, and 70% occupied as of December 31, 2015, (ii) the controllable operating expenses for the Project (i.e.,
all expenses other than taxes, insurance and utilities and expenses arising out of a casualty or condemnation) have not exceeded
the budgeted expenses in the aggregate as set forth in the approved Budget and (iii) for the month ending December 31, 2015, the
Project has generated Gross Receipts that, if annualized, would equal $2,300,000 in annual Gross Receipts for calendar year 2015,
provided that the calculation of Gross Receipts for purposes of this Section 1.01(iii) shall exclude non-recurring concessions
associated with the lease-up of the Project.

 

1.02
FEES

The management
fee (“Base Management Fee”) payable each month by Owner to Manager hereunder shall be an amount
equal to the greater of (a) $5,000 per month and (b) three percent
(3%) of the Gross Receipts from the Project including any partial month in which Manager accepts engagement; provided, however,
once the Project initially reaches Stabilization, the $5,000 minimum Base Management Fee shall no longer be applicable. For purposes
hereof, Stabilization is defined as the Project being at least 90% leased.

 

If additional services not
outlined herein are required by the Owner or Manager, Owner shall pay Manager for such additional services under the terms and
conditions to be agreed upon by the parties. Manager shall be under no obligation to provide such additional services unless and
until the parties have entered into a written agreement reflecting the terms and conditions thereof.

 

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1.03
DEPOSITORY

An FDIC insured bank located
in the United States of America, designated by Manager
and approved by Owner. The initial Depository is
Wells Fargo Bank.

 

1.04 FISCAL YEAR

The year beginning January
1st and ending December 31st.

 

1.05 BUDGET

A composite of (i) an operations
Budget, which shall be an estimate of receipts and expenditures for the full and complete operation (inclusive of all maintenance,
repairs and alterations) of the Project during a Fiscal Year, including a schedule of expected apartment rentals (excluding security
deposits) for the period stated herein and a schedule of expected special repairs and maintenance projects, (ii) a capital
Budget, which shall be an estimate of capital replacements, substitutions of, and additions to, the Project for the Fiscal
Year.

 

1.06 GROSS RECEIPTS

The entire amount of all receipts,
determined on a cash basis, from (a) tenant rentals, parking rent
and other charges collected pursuant to tenant leases for each month during the term hereof; provided, however, that there
shall be excluded from tenant rentals any refundable tenant security deposits (except as provided below); (b) cleaning, tenant
security and damage deposits forfeited by tenants in such period; (c) tenant reimbursements for utilities (gas, electric, water
and sewer); (d) video (cable), data (internet), local or long-distance services (voice), laundry and vending machine income and
other ancillary revenue generated as a percentage of gross receipts; (e) any and all receipts from the operation of the Project
received and relating to such period; (f) proceeds from rental interruption insurance; and (g) any other sums and charges collected
in connection with termination of the tenant leases. Gross Receipts do not include the proceeds of (i) any sale, exchange, refinancing,
condemnation, or other disposition of all or any part of the Project, (ii) any loans to the Owner whether or not secured by all
or any part of the Project, (iii) any capital contributions to the Owner, (iv) any insurance (other than rental interruption insurance)
maintained with regard to the Project, or (v) proceeds of casualty insurance or damage claims as a result of damage or loss to
the Project.

 

1.07 PROJECT EMPLOYEES

Those persons employed by
Manager and located on-site as a management staff; e.g.,
senior manager, manager, assistant managers, leasing agents, maintenance personnel, courtesy officers, and other personnel necessary
to be directly employed by the Manager in order to maintain and operate the Project.

 

SECTION 2: DUTIES AND RIGHTS OF MANAGER

 

2.01 APPOINTMENT OF
MANAGER

During the term
of this Agreement, Manager agrees, for and in consideration
of the compensation provided in Section 1.02, and Owner hereby grants to Manager the sole and exclusive right, to supervise and
direct the leasing, management, repair, maintenance and operation of the Project as per the authority granted herein. All services
performed by Manager under this Agreement shall be done as an independent contractor of Owner. All obligations or expenses incurred
hereunder, including the pro rata portion used in connection with, or for the benefit of the Project for all purchases, contracts,
sales or services in bulk or volume which Manager may obtain for discount or convenience in connection thereof shall be for the
account of, on behalf of, and at the expense of, Owner except as otherwise specifically provided.

 

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Owner shall designate up to
two people to serve as Owner’s representative (“Owner’s Representative”) in all dealings with Manager
hereunder. Whenever the approval, consent, or other action of Owner is called hereunder, such approval, consent or action shall
be binding on Owner if specified in writing via email, facsimile, or written correspondence and approved by Owner’s Representative.
The initial Owner’s Representative is Laurance Kaufman. Manager shall be entitled to rely on all instruction of the Owner’s
Representative pending further notification by Owner. The Owner’s Representative may be changed at the discretion of Owner.

 

All obligations or expenses
incurred hereunder, including the pro rata portion used in connection with, or for the benefit of, the Project for all purchases,
contracts, sales or services in bulk or volume which Manager may obtain for discount or convenience in connection thereof shall
be for the account of, on behalf of, and at the expense of, Owner except as otherwise specifically provided. Owner shall be obligated
to reimburse Manager for all reasonable customary expenses of Manager incurred specifically for the Project, which were authorized
in the Budget or otherwise approved in writing by the Owner.

 

2.02 GENERAL OPERATION

Manager shall operate the
Project in the same manner as is customary and usual in the operation of comparable facilities, and shall provide such services
as are customarily provided by operators of apartment projects of comparable class and standing consistent with the Project's
facilities, subject, however, in all events to the limitations
of the Budget. In addition to the other obligations of Manager set forth herein, Manager shall render the following services
and perform the following duties for Owner in a timely, faithful, diligent and efficient manner: (a) coordinate the plans of tenants
for moving their personal effects into the Project or out of it, with a view toward scheduling such movements so that there shall
be a minimum of inconvenience to other tenants; (b) maintain businesslike relations with tenants whose service requests shall
be received, considered and recorded in systematic fashion in order to show the action taken with respect to each; (c) use its
commercially reasonable efforts to collect all monthly
rents due from tenants and rent for users or lessees of other non-dwelling facilities in the Project, if any; request, demand,
collect, receive and receipt for any and all charges or rents which become due to Owner, and at Owner's expense, take such legal
action as may be necessary or desirable to evict tenants delinquent in payment of monthly rental, other charges (security deposits,
late charges, etc.); (d) prepare or cause to be prepared for execution and filing by the Manager as an independent contractor
all forms, reports and returns required by all federal, state or local laws in connection with the unemployment insurance, workers'
compensation insurance, disability benefits, Social Security and other similar taxes now in effect or hereafter imposed, and also
any other requirements relating to the employment of personnel; (e) advertise when necessary, at Owner's expense and approval,
the availability for rental for the Project units using commercially reasonable business strategies in connection with the use
of promotional materials, market outreach efforts, internet and web-based marketing and display "for rent" or other
similar signs upon the Project, it being understood that Manager may install one or more signs on or about the Project stating
that same is under management of Manager and may use in a tasteful manner Manager's name and logo in any display advertising which
may be done on behalf of the Project; and (f) sign, renew and cancel tenant leases for the Project, write apartment leases for
terms approved by Owner (or on a month to month basis following the expiration of the initial term of a tenant lease) to bona
fide individuals based upon Manager's recommendations. Manager shall exercise its commercially
reasonable efforts to include the Project in signage advertising rentals available to be placed at the Project during
any lease-up period.

 

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Security Services. It is understood
and agreed that Manager is not in the business of, and will not be providing alarm systems, guards, patrols and/or similar services
(the “Security Services”) to the Project as a part of its management services. Should Owner choose to do so, Owner
may separately contract with a company (a “Security Company”) providing Security Services.

 

2.03 BUDGET

(a) Attached hereto as Exhibit
A is the Budget approved by Owner for the stated portion of the current Fiscal Year. For subsequent Fiscal Years, Manager
shall submit the Budget for the ensuing Fiscal Year for Owner's approval no later than November 1. The Budget shall be reasonably
approved by Owner prior to December 31, or, if Owner does not disapprove the Budget by such date, shall be deemed approved by
Owner. In the event Owner disapproves the Budget, in whole or in part, Owner will provide edits for the Manager to make as
may be reasonably practicable. Until a complete new Budget is approved, Manager shall operate on the Budget or part thereof which
is approved and the disapproved items shall be governed by the like item approved for the prior Fiscal Year, with
the exception of expenses for personnel which may be reasonably increased based on existing competitive conditions unless the
increase for personnel is the item that is being disputed, in which case expenses for personnel will not be increased. The approved
Budget shall constitute an authorization from Owner for Manager to expend money to operate and manage the Project and Manager
may do so without further approval of Owner, as long as Manager does not exceed budgeted expenditures over and above the maximums
set forth in Section 2.03(b) hereof.

 

(b) The Budget shall reflect
the schedule of monthly rents for the applicable Fiscal Year. It shall also constitute a major control under which Manager shall
operate the Project, and Manager shall make commercially reasonable efforts to ensure there are no substantial variances therefrom
except for the variations which are in compliance with Section 2.07(a)(ii). Consequently, no expenses may be incurred or commitments
made by Manager in connection with the management or operation of the Project which exceed (or would cause the total expenses
to exceed) by more than five percent (5%) for the “line item” amount allocated for such category of expense provided
for in the approved Budget; provided, however, the foregoing limitation with respect to incurring any expense not covered by the
Budget shall not apply to expenses relating to taxes, insurance or utilities. Manager makes no guaranty, warranty or representation
whatsoever in connection with the Budgets or the operational results
of owning the Project, such being intended as estimates only. Manager will use its commercially
reasonable efforts to develop the Budget and manage the Project in accordance with the Budget.

 

(c)
In the event there shall be substantial variances (expenses greater than 5% of any “line item” amount allocated for
such category of expense, or Gross Receipts less than 95%, of projection) between the actual results of operations for any month
and the estimated results of operations for such month as set forth in the Budget, Manager shall also furnish to Owner, within
fifteen (15) days after the expiration of such month, a written explanation concerning the variances and the steps being taken
by Manager to rectify the variances. If after a Budget has been approved substantial variations have occurred, or are anticipated
by Manager during the course of the Fiscal Year, Manager shall promptly notify Owner and, upon Owner's request, shall prepare
and submit to Owner a revised forecast of annual income and expenses for the remainder of the Fiscal Year based on actual year-to-date
income and expenses and Manager's forecast of income and expenses for the remainder of the Fiscal Year. Such forecast shall not
constitute a replacement Budget.

 

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2.04 PROJECT EMPLOYEES
AND OTHER PERSONNEL

(a) Manager shall investigate,
hire, employ, instruct, pay, promote, direct, discharge and supervise the work of the Project Employees
and shall supervise, through the Project Employees,
the firing, promotion, discharge and work of all other operating and service employees performing services in, for or about the
Project, all in the name of Manager. All necessary and appropriate training and training-related costs may be included in the
Budget and paid accordingly. Manager shall be solely responsible for legal compliance concerning the foregoing activities and
shall indemnify and hold harmless Owner from employee claims and violations of law
by Manager in respect to employment matters. To the extent that some of the Project Employees
may be required to reside at the Project and be available on a full-time basis in order to perform properly the duties
of his/her employment, it is further understood and agreed that to the extent contemplated in the Budget and with Owner’s
prior written approval, such Project Employees (including
spouses or significant others and dependent children), in addition to salary and fringe benefits, may receive up to a 20% discount,
or rental concession on the normal rental rates for any unit such employee is required to occupy; provided that the Community
Manager and Service Manager for the Project shall each be entitled to a rental concession of up to $800.00 per month.

 

(b) At all times, all Project
Employees shall be deemed solely employees of Manager, and not of Owner. Owner nevertheless agrees to reimburse Manager, consistent
with the Budget, bi-weekly for the total aggregate Budgeted compensation, including salary and fringe benefits, payable with respect
to the Project Employees and any temporary employees performing duties at the Project. The term "fringe" benefits, as
used herein, shall mean and include the employee's and employer’s contribution of FICA, unemployment compensation and other
employment taxes, workers' compensation, group life, accident and health insurance premiums, performance bonuses provided for
in the Budget and approved by Owner, disability, vacation, holiday, and sick leave, 401(k) contributions and other similar benefits
paid or payable to employees on other projects operated by Manager. Any 401(k) employee or employer contributions forfeited by
the employee remain with the plan. The cost of such Project Employees’ base salaries and fringe benefits shall be separately
and specifically scheduled within the Payroll line item of the Budget. The compensation, payroll taxes, employee benefits, insurance,
payroll and administrative costs of such employees shall be considered a normal operating expense and shall be paid as a Project
expense, as provided and to the extent permitted in the Budget.

 

2.05 CONTRACTS AND
SUPPLIES

Subject to the Budget, the
Manager shall, in the name of and on behalf of Owner and at Owner's expense, consummate arrangements with unrelated third party
concessionaires, licensees, tenants or other intended users of the facilities of the Project, shall enter into contracts for furnishing
to the Project electricity, gas, water, steam, telephone, cleaning, vermin exterminators, furnace and air-conditioning maintenance,
security protection, pest control, landscaping, solid waste removal and any other utilities, services and concessions which are
provided in connection with the maintenance and operation of apartment projects
which are comparable to the Project and in accordance with standards comparable to those prevailing in other comparable
apartment projects, and shall place purchase orders for such equipment, tools, appliances, materials and supplies as are
reflected in the Budget and
necessary to maintain the Project. Manager will make a reasonable attempt to make all contracts cancelable without
penalty with (30) days written notice.

 

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In the event that utility
or power companies require a surety bond or other form of security in order to provide utilities, electrical or other services
to the Project, the Manager is authorized to obtain such bond at Owner’s sole expense. Manager may, in its sole discretion,
elect to guarantee, indemnify, defend and hold harmless those parties supplying such bonds or other form of security (the “Surety”)
for any premiums, liabilities, losses, costs, damages, attorney fees and other expenses, including interest, which the Surety
may sustain or incur by reason of, or in connection with, the issuance, renewal or continuation of such bonds or other form of
security. In such event, Owner will reimburse and indemnify Manager pursuant to Section 6.03 with regard to the same.

 

2.06 MANAGER'S SERVICES

In the performance of its
duties under this Agreement, it is agreed that Manager
may enter into any contract on behalf of Owner with subsidiaries and affiliates of Manager for the furnishing of supplies and
services to the Project, including but not limited to the purchasing of furniture, operating equipment, operating supplies, maintenance
and landscaping services, and advertising, provided, however, that the net cost of such supplies and services to Owner is competitive
with such similar services or supplies customarily used in the industry, whose services or supplies are reasonably available to
the industry and whose services or supplies are reasonably available to the Project.

 

2.07 ALTERATIONS,
REPAIRS AND MAINTENANCE

(a) (i) To the extent adequate
funds are made available to Manager by Owner, Manager shall make or install, or cause to be made and installed at Owner's expense
and in the name of Owner, all necessary or desirable repairs, interior and exterior cleaning, painting and decorating, plumbing,
alterations, replacements, improvements and other normal maintenance and repair work on and to the Project as are customarily
made by Manager in the operation of apartment projects or are required by any lease; and (ii) Manager may make emergency repairs
involving manifest danger to life or property which are immediately necessary for the preservation of the safety of the Project,
or for the safety of the tenants, or are required to avoid the suspension of any necessary service to the Project, in which event
such reasonable expenditures may be made by the Manager without prior approval and irrespective of the cost limitations imposed
by the Budget, provided that Owner or its successor in interest is notified in a timely manner and thereafter given written notice
of such situation and such costs incurred.

 

(b)
In accordance with the terms of the Budget, by Manager’s recommendation or upon Owner demand and/or approval (except in
the case of emergency), Manager shall, at Owner's expense, from time to time during the term hereof, make all required capital
replacements or repairs to the Project (“Capital Project”). For any Capital Projects, including but not limited to
Project improvements and rehab/renovation projects that cost more than $20,000 on an individual basis, Owner shall pay Manager
a fee to supervise such Capital Projects equal to 5% of the total cost of the completed work, including both hard and soft costs.
The foregoing notwithstanding, Manager shall not be entitled to receive any supervision fee in connection with the construction
of the Parking Improvements (as such term is defined in that certain Operating Agreement for BR-TBR Whetstone Venture, LLC (the
“Venture Agreement”)).

 

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(c) In connection with this
Agreement, Manager shall provide construction management services and supervision to restore or repair physical damage to the
Project resulting from fortuitous loss or acts of God, including but not limited to, fire, wind, hail and flood (“Casualty
Projects”). Manager shall be paid a construction oversight management oversight fee of five percent (5%) based upon the
total cost of the Casualty Project work, including hard and soft costs.

 

The construction oversight
management fee shall be paid to Manager by Owner as soon as practical, either at the earlier of as draws are paid, or at the completion
of the Casualty Project work.

 

Manager shall where applicable
make reasonable efforts to secure at least three (3) bids for all insurance loss claims and casualty work estimated to cost more
than $50,000.

 

(d) Manager’s responsibilities
with respect to the Casualty Projects shall be performed with the professional skill and care of first-class construction managers
in the geographic area in which the Project is located. The services to be provided will include, but not be limited to, the following:
coordination of space planning; providing a detailed scope of work; coordination of acquisition of city approvals and permits
to be obtained by the general contractor for the work; acquisition of competitive bids from contractors where required by this
Agreement; bid summary and recommendations for review by Owner; negotiation of construction contracts; handling relations with
tenants of the Project; coordination of change orders; securing and recording conditional and unconditional lien releases (whether
partial or final) from all contractors, subcontractors, material men, suppliers and the like prior to or concurrent with the making
of any payments, and providing for such other arrangements as may be reasonably prudent under the circumstances to assure the
appropriate application of construction funds; inspection of construction to ensure quality and completion prior to payment; timely
filing or recording of notices of completion and posting of notices of non-responsibility on behalf of Owner (if applicable) as
well as otherwise taking all steps necessary to comply with all laws and procedures relating to keeping the Project free of liens;
preparation of a final punch list, and supervising the completion of any punch list items of remaining or defective work; coordination
of inspections upon completion; securing certificates of occupancy; obtaining final lien waivers; review, approval, and submittal
to Owner of all payment applications; ensuring that all contractors, subcontractors, material men, suppliers and the like carry
sufficient insurance; and, such other services as are reasonable and necessary in connection with completion of the work. Manager
shall make available to Owner the advice, consultation and expertise of Manager’s technical staff, and render such periodic
progress reports to Owner as it shall reasonably request.

 

2.08 LICENSES AND PERMITS

Manager shall, in a timely
manner, apply for, and thereafter use commercially reasonable
efforts to obtain and maintain in the name and at the expense of Owner all licenses and permits (including deposits and
bonds) required of Owner or Manager in connection with the management and operation of the Project. Owner agrees to execute and
deliver any and all applications and other documents and to otherwise cooperate to the fullest extent with Manager in applying
for, obtaining and maintaining such licenses and permits.

 

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2.09 COMPLIANCE WITH LAWS

 Manager, at Owner's
expense, and to the extent that Manager has knowledge of such requirements and that funds are made available by Owner for same,
shall use its commercially reasonable efforts to cause
all acts and duties to be done in and about the Project to comply with all laws, regulations and requirements of any federal,
state, regional, county or municipal government, having jurisdiction respecting the use or manner of use of the Project or the
maintenance, alteration or operation thereof. Notwithstanding the foregoing, Manager shall not be obligated to take any action
which might result in any penalty or fine being imposed upon Manager, or which requires special licensing as a business or a profession
in which Manager is not licensed.

 

Owner shall use its commercially
reasonable efforts to cause all acts and duties to be done in and about the Project to comply with all laws, regulations
and requirements of any federal, state, regional, county or municipal government having jurisdiction over the use or manner of
use of the Project or the maintenance, alteration or operation thereof.

 

2.10 LEGAL PROCEEDINGS

Manager shall institute, in
its own name or in the name of Owner, but in any event at the expense of Owner, any and all legal actions or proceedings which
Manager deems reasonable to collect charges, rent or other income from the Project, or to dispossess tenants or other persons
in possession, or to cancel or terminate any lease, license or concessions agreement for the breach thereof, or default thereunder
by any tenant, licensee or concessionaire, provided, that the legal fees and related costs in connection with such proceeding
do not exceed the associated amount set forth in the approved Budget.

 

2.11 DEBTS OF OWNER

In the performance of its
duties as Manager, Manager shall act solely as the representative of the Owner. All debts and liabilities to third persons incurred
by Manager in the course of its operation and management of the Project shall be the debts and liabilities of the Owner only,
and Manager shall not be liable for any such debts or liabilities.

 

SECTION 3: MANAGEMENT FEES

 

3.01 BASE MANAGEMENT
FEE

The Owner shall pay to Manager,
during the term hereof, the Base Management Fee and other
fees and costs due hereunder for the previous month on or before the tenth (10th) day of each subsequent month; provided, however
that with respect to the Base Management Fee due
for the last month of the term hereof, such Base Management Fee
shall be payable on the last day of such month. Manager
shall have the right to withdraw the monthly fee from the Operating Account established by Manager. 

 

In the event
Manager is owed past due Base Management Fee earned by Manager in performance of its duties under this Agreement or Owner fails
to timely reimburse Manager for employee expenses as referenced in this Agreement, Manager in its sole discretion may terminate
this Agreement with 72 hours written notice to Owner.

 

3.02 PLACE OF PAYMENT

All sums payable by Owner
to Manager hereunder shall be payable to Manager at its notice address set forth below, unless the Manager shall, from time to
time, specify a different address in writing.

 

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SECTION 4: PROCEDURE FOR HANDLING RECEIPTS
AND OPERATING CAPITAL

 

4.01 BANK DEPOSITS

All monies received by Manager
for or on behalf of Owner shall be deposited by Manager with the Depository. Manager shall maintain separate accounts for such
funds consistent with the system of accounting of the Project. All funds on deposit shall be managed by Manager subject to the
terms hereof. All monies of Owner held by Manager pursuant to the terms hereof shall be held by Manager in trust for the benefit
of Owner to be held and disbursed as herein provided and shall not, unless Owner otherwise has agreed or directed, be commingled
with the funds of any other person, including Manager or any affiliate of Manager.
In no event shall Manager be responsible for any loss to amounts on deposit caused by the insolvency or other similar event or
occurrence with respect to the Depository. 

 

4.02 SECURITY DEPOSIT
ACCOUNT

Manager shall comply with
all applicable laws with respect to security deposits paid by
tenants. All security deposit funds held by Manager shall at all times be the property of Owner, subject to all applicable
laws with respect thereto. Upon commencement of this Agreement, the Owner authorizes the Manager to make withdrawals therefrom
for the purpose of returning them as required by the lease or by existing law.

 

4.03 OPERATING ACCOUNT

Manager shall deposit all
gross receipts from the operations of the property into an Operating Account, on which both Manager and Owner shall be signatories
and pay the normal operating expenses of the property, including Manager’s fees, debt and taxes as directed.

 

4.04 DISBURSEMENT
OF DEPOSITS

(a) Manager shall disburse
and pay all funds on deposit on behalf of and in the name of Owner, in such amounts and at such times as the same are required
in connection with the ownership, maintenance and operation of the Project on account of all taxes, assessments and charges of
every kind imposed by any governmental authority having jurisdiction over the Project, and all costs and expenses of maintaining,
operating and supervising the operation of the Project, including, but not limited to,
the Base Management Fee due hereunder, salaries, fringe benefits and expenses of the Project Employees,
insurance premiums, debt service, legal and accounting fees and the cost and expense of utilities, services, marketing, advertising
and concessions. 

 

(b)
To the extent there are insufficient funds to pay all of such costs and expenses, Manager shall promptly notify Owner of same,
and Manager shall pay such of the foregoing items in the order and manner selected by Manager. Manager shall then submit
to Owner a statement of all remaining costs and expenses, and Owner shall without undue delay (and in no event in more than ten
(10) days) provide sufficient funds to pay any unpaid expenses payable by Owner, in accordance with the approved Budget then in
effect. Manager shall not be liable to Owner for any failure or action on Manager’s part arising out of or in conjunction
with the approved Budget not being sufficient to operate the Project in the manner described herein. Nothing in this Agreement
shall require the Manager to advance money on the Owner’s behalf.

 

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4.05 AUTHORIZED SIGNATURES

Any persons from time to time
designated by Manager and agreed to in writing by Owner shall be authorized signatories on all bank accounts established by Manager
hereunder and shall have authority to make disbursements from such accounts to the extent permitted in this Section 4. Funds may
be withdrawn from all bank accounts established by Manager, in accordance with this Section 4, only upon the signature of an individual
who has been granted that authority by Owner. Owner may at any time and at Owner's sole discretion direct Manager to withdraw
funds and make disbursements from such accounts, except all persons who are authorized signatories or who in any way handle funds
for the Project shall be bonded or covered by dishonesty insurance in the minimum amount of $100,000 per employee. At the beginning
of each year and as new persons shall be designated authorized signatories, Manager shall provide Owner with evidence of such
bonding. Any expenses relating to such bond for on-site employees and for off-site employees shall be borne by Manager. Owner’s
designated agents shall be added as authorized signatories at Owner’s request.

 

SECTION
5: ACCOUNTING

 

5.01 BOOKS AND RECORDS

Manager,
on behalf of Owner, shall keep all books and accounts pertaining to the Project in accordance with Generally Accepted Accounting
Principles in the U.S. The cutoff date of the accounting period shall be the last day of each calendar month. Manager,
on behalf of Owner, shall also supervise and direct the keeping of a comprehensive system of office
records, books and accounts pertaining to the Project. Such records shall be subject to examination at the office where they are
maintained by Owner or its authorized agents, attorneys and accountant at all reasonable business
hours and upon reasonable, advance notice to Manager. In connection with the foregoing, the capitalization and expense
policy of the BR Member , as in effect from time to time, shall be adhered to by Manager. A copy of the current policy is attached
hereto and incorporated herein as Exhibit D and the BR Member shall be responsible, on behalf of the Owner, for
hereafter providing any changes thereto to Manager as and when any such changes are adopted.

 

On or about the end of each
calendar quarter of each year, Manager shall cause to be furnished to Owner such information as reasonably requested in writing
by BR Whetstone Member, LLC (“BR Member”), the member of BR-TBR Whetstone Venture LLC associated with Bluerock Residential
Growth REIT, Inc. as is necessary for any reporting requirements of any direct or indirect members of Owner or for any reporting
requirements of any REIT Member (as defined in the Venture Agreement) (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 Venture Agreement) as shall be
reasonably requested by BR Member. Further, the Manager shall cooperate in a reasonable manner at the request of Owner and any
direct or indirect member of Owner to work in good faith with any designated accountants or auditors of such party or its affiliates
so that such party or its affiliate is able to comply with its 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 party or any of its affiliates in connection therewith, including for purposes of testing internal
controls and procedures of such party or its Affiliates.

 

5.02 PERIODIC STATEMENTS

(a) On or before ten (10)
days following the end of each calendar month, Manager shall deliver or cause to be delivered to Owner its standard financial
reports customarily provided the owners of properties it manages, a list of which is set forth on Exhibit B. On
or before ten (10) days following the end of each calendar month, Manager shall also deliver or cause to be delivered to Owner
the financial reports set forth on Exhibit C. The reports are subject to change from time to time by Owner or Manager
provided Manager shall not substantively decrease the quality of the information provided.

 

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(b) Within ten (10) days after
the end of such Fiscal Year, Manager will deliver to the Owner, an income and expense statement as of Fiscal Year end, and the
results of operation of the Project during the preceding Fiscal Year (anything contained herein to the contrary notwithstanding,
however, Manager shall not be obligated to prepare any of Owner's state or federal income tax returns).

 

(c)Manager shall also
prepare and provide to Owner such reports and information as required by Owner to prepare the reports and tax returns required
under (i) the Venture Agreement and (ii) the Loan Documents that evidence and secure any loan secured by the Project from time
to time, including, but not limited to the bridge loan with KeyBank National Association. Such reports and information under clause
(i) shall not exceed in scope or frequency as Manager routinely provides other owners for which Manager is providing property
management services.

 

(d)
In the event that Owner or Owner's mortgagee(s) requires an audit, the Manager shall cooperate with the auditors in a timely manner
to complete the audit engagement. Also, Manager shall cooperate in a reasonable manner at the request of any indirect owner of
Owner and shall work in good faith with its designated representatives, accountants or auditors to enable compliance with its
public reporting, attestation, certification and other requirements under applicable securities laws and regulations, including
for testing internal controls and procedures.

 

(e) Owner may request and
Manager shall provide when available such monthly, quarterly and/or annual leasing and management reports that relate to the operations
of the Project as deemed reasonable by the parties.

 

5.03 EXPENSES

All costs and expenses incurred
in connection with the preparation of any statements, budgets, schedules, computations and other reports required under this Section
5, or under any other provisions of this Agreement,
shall be borne by the Manager. Any costs and expenses incurred in connection with the preparation of any statement or report
not a part of the Manager’s standard reporting package, a list of which is set forth on Exhibit B, shall be
borne by Owner.

 

SECTION 6: GENERAL COVENANTS OF OWNER
AND MANAGER

 

6.01 OPERATING EXPENSES

The Owner shall be solely
liable for, and shall pay, all costs and expenses of managing and operating the Project that have been incurred by Owner or by
Manager in accordance with the provisions of this Agreement, and shall pay, or Manager shall pay on Owner's behalf, all such costs
and expenses, including, without limitation, the salaries of all Project Employees, provided however, Owner shall have no direct
obligations to Project Employees for salaries or fringe benefits, as all Project Employees are employed solely by Manager and
not by Owner. Owner covenants to advance to Manager such sums that are in excess of Gross Receipts required to operate the Project,
upon written notice and demand from Manager within ten (10) days
after receipt of written notice. Nothing in this Agreement shall require Manager to advance funds on Owner’s behalf, however
if funds are advanced by Manager in the operation, or management of the Project, these funds will be reimbursed by the Owner within
ten (10) days of submitting itemized invoices to the Owner. Interest shall accrue on any amounts so advanced by Manager,
from the date of notice of the advance is given to Owner by Manager until the date repaid to Manager, at a rate of ten percent
(10%) per annum.  Owner further recognizes that the Project may
be operated in conjunction with other projects and that costs may be allocated or shared between such projects on a more efficient
and less expensive method of operation. In such regard, Owner consents to the allocation of costs and/or the sharing of any expenses
in an effort to save costs and operate the Project in a more efficient manner to be allocated in a manner not prejudicial to Owner,
so long as all allocations are clearly indicated and approved in the Budget.

 

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6.02 OWNER'S RIGHT
OF INSPECTION AND REVIEW

Owner and Owner's accountants,
attorneys and agents have the right to enter upon any part of the Project at any reasonable time during the Term for the purpose
of examining or inspecting the Project or examining or making copies of books and records of the Project. Any inspection shall
be done with as little disruption to the business of the Project as possible. Books and records of the Project shall be kept,
as of the commencement date, at the Project or at the location where any central accounting and bookkeeping services are performed
by Manager but at all times shall be the property of Owner.

 

6.03 INDEMNIFICATION
BY OWNER

Except to the extent of the
gross negligence, willful misconduct or criminal actions of Manager or its
employees, directors, officers, agents or representatives in connection with its performance under this Agreement, Owner
shall indemnify, hold harmless, and defend Manager (and Manager's partners, directors, shareholders, officers, employees, and
agents), from and against any and all liabilities, claims, causes of action, suits,
losses, demands and expenses whatsoever including, but not limited to reasonable legal fees and expenses arising out of
or in the connection with the ownership, maintenance or operation of the Project or this Agreement or
the performance of Manager's agreements hereunder (collectively
"Claims"), including but not limited to, Claims alleging bodily injury or property damage, and/or the loss of use of
property following and resulting from damage or destruction. The indemnification by Owner contained in this Section 6.03 is in
addition to any other indemnification obligations of Owner contained in this Agreement,
and is not limited by or to Owner's Liability Insurance. It is the intent of the parties hereto, however, to look first to Owner’s
Liability Insurance with respect to all Claims hereunder. 

 

6.04 INDEMNIFICATION
BY MANAGER

Manager shall indemnify, defend
and hold Owner harmless from and against all Claims for bodily
injury and property damage or for financial loss to the extent that same (i) arise out of or are a result of the gross
negligence, willful misconduct or criminal actions of Manager except where
attributable to actions or policies approved in writing or required in writing by Owner and (ii) result in a claim against
Owner arising out of the Manager’s gross negligence, willful misconduct or criminal actions. The indemnification by Manager
contained in this Section 6.04 is in addition to any other indemnification obligations of Manager contained in this Agreement,
and is not limited by or to Manager's Insurance. It is the intent of the parties hereto, however, to look first to Manager’s
Insurance, where applicable, as set forth herein.

 

6.05 SURVIVAL OF INDEMNITY
OBLIGATIONS

The indemnification and hold
harmless obligations of the parties in Sections 6.03 and 6.04
shall survive the expiration or earlier termination of this Agreement with respect to any act or occurrence preceding such
expiration or termination.

 

    	12

    	 

    

 

 

SECTION 7: DEFAULTS AND TERMINATION
RIGHTS

 

7.01 DEFAULT BY MANAGER 

Manager shall be deemed to
be in default hereunder in the event Manager shall fail to keep, observe or perform any material covenant, agreement, term or
provision of this Agreement to be kept, observed or performed by Manager, and such default shall (i) result from Manager's grossly
negligent acts or omissions or willful misconduct; (ii) involve Manager's misappropriation or intentional misapplication of funds
received or held by Manager hereunder; or (iii) continue for a period of ten (10) days after written notice thereof by Owner to
Manager as to any default in payment of money or thirty (30) days after notice thereof by Owner to Manager as to any non-monetary
default, or, if such non-monetary default cannot be cured within thirty (30) days, then such additional period as shall be reasonable
provided that Manager is capable of curing same and has continuously attempted to cure such default.

 

7.02 REMEDIES OF OWNER

Upon the occurrence of an
event of default by Manager as specified in Section 7.01 hereof, Owner shall have the right to pursue any remedy it may have at
law or in equity (provided that in no event shall Manager ever
be liable to Owner for, and Owner hereby waives all rights to receive, punitive, consequential or exemplary damages), it
being expressly understood that although Owner has no further obligation to pay any fee
due hereunder, Manager shall remain liable for any losses suffered as a result of Manager's default and the resulting termination
of this Agreement. Upon such termination, Manager shall
deliver to Owner any funds, books and records of Owner then in the possession or control of Manager and all accounts established
by Manager for security deposits.

 

7.03 DEFAULTS BY OWNER

Owner shall be deemed to be
in default hereunder in the event Owner shall fail to keep, observe or perform any material covenant, agreement, term or provision
of this Agreement to be kept, observed or performed by Owner, and such default shall continue for a period of,
in the case of any default which can be cured by the payment of a liquidated sum of money, ten (10) days and, in the case of all
other defaults, thirty (30) days after notice thereof by Manager to Owner but, if such non-monetary default cannot be cured
within thirty (30) days, then such additional period as shall be reasonable provided that Owner is capable of curing same and
has continuously attempted to cure such default.

 

7.04 REMEDIES OF MANAGER

Upon the occurrence of an
event of default by Owner as specified in Section 7.03 hereof, Manager shall be entitled to terminate this Agreement, and upon
any such termination by Manager pursuant to this Section 7.04, Manager shall have the right to pursue any remedy it may have at
law or in equity (provided that in no event shall Owner ever be
liable to Manager for, and Manager hereby waives all rights to receive, punitive, consequential or exemplary damages), except
that, in addition to any other remedies pursued by Manager, Owner shall pay Manager a termination fee for the month in which this
Agreement is terminated equal to the Base Management Fee paid for the last full calendar month preceding the month in which the
Agreement was terminated.

 

7.05 EXPIRATION OF
TERM

Upon the expiration of the
Term hereof pursuant to Section 1.01 hereof, unless sooner terminated pursuant to the terms of this Agreement, Manager shall deliver
to Owner all funds, including tenant security deposits, books and records of Owner then in possession or control of Manager, save
and except such sums as are then due and owing to Manager hereunder. In addition, within sixty (60) days following expiration
or termination of this Agreement, Manager shall deliver to Owner a final accounting, in writing, with respect to the operations
of the Project, which obligation shall survive termination.

 

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7.06 TERMINATION WITHOUT
CAUSE

This Agreement
shall be terminable by either party at any time without cause upon thirty (30) days prior written notice, in the case of
the termination of the Agreement by Owner, and upon ninety (90) days prior written notice, in the case of the termination of the
Agreement by Manager. Owner acknowledges Manager shall incur substantial expenses in the initial set-up of the management of the
Project. In the event Owner terminates this Agreement without cause for any reason, including but not limited to, the sale or
transfer of the Project’s ownership or assignment of property management services to another property manager within 120
days of commencement, in addition to payments and reimbursable expenses due Manager through the date of termination, Owner agrees
to pay Manager an additional amount equal to one month’s Base Management Fee.

 

7.07 EFFECT OF TERMINATION

Upon termination of this Agreement
for any reason, neither the Owner, nor the Manager, have any further rights or obligations under this Agreement other than obligations
accrued prior to the termination or by the express terms surviving this Agreement.

 

SECTION 8: INSURANCE AND INDEMNIFICATION

 

8.01 OWNER’S INSURANCE:
Owner shall obtain and maintain the following insurance (the specifications for which may be changed from time to time by Owner)
necessary to protect the interest of Owner as it relates to the Project, at Owner's sole cost and expense, from authorized insurance
companies with an AM Best rating of A IX or higher.

 

		a.	PROPERTY INSURANCE: Hazard insurance
                                         in the amount of the full replacement cost of the Project, and such other property insurance
                                         as Owner may elect, at Owner's expense.

 

		b.	LIABILITY INSURANCE: Commercial
                                         general liability insurance including contractual liability for insured contracts, on
                                         an "occurrence" basis, naming Manager as an additional insured, with limits
                                         of not less than three million dollars ($3,000,000.00) per occurrence (the "Owner's
                                         Liability Insurance"). This limit may be satisfied by a combination of CGL and umbrella/excess
                                         liability insurance. The Owner's Liability Insurance shall include coverage for losses
                                         arising from the ownership, management, and operation of the Project. This insurance
                                         shall be primary for Owner and Manager with respect to the Project.

 

		c.	CERTIFICATE OF INSURANCE: Owner
                                         shall provide to Manager a certificate of insurance evidencing such coverage from an
                                         insurance carrier with an A.M. Best Rating of A VIII or higher reflecting that the Owner's
                                         Liability Insurance is effective in accordance with this section and that the Owner's
                                         Liability Insurance will not be canceled without at least thirty (30) days prior written
                                         notice to Manager.

 

		d.	INDEMNITY. In addition to, and
                                         not in lieu of, the indemnity described in Section 6.03 hereof, but subject in all events
                                         to the limitations set forth in Section 6.03 with respect to the gross negligence, willful
                                         misconduct or criminal actions of Manager, Owner shall indemnify Manager and hold Manager
                                         harmless from any amounts not covered or paid under any such insurance policies as a
                                         result of deductible limits as approved by Owner.

 

8.02 MANAGER'S INSURANCE: Manager
shall obtain and maintain the following insurance (the specifications for which may be changed from time to time by Owner) necessary
to protect the interest of Owner as it relates to Manager's operations hereunder, at Manager's sole cost and expense, from authorized
insurance companies approved by Owner rated by Best's Rating at A IX or higher.

 

    	14

    	 

    

  

		a.	COMMERCIAL GENERAL LIABILITY INSURANCE:
                                         Commercial general liability insurance for the benefit of Manager and Owner in the amount
                                         of $1,000,000 per occurrence and $2,000,000 in the aggregate covering claims for bodily
                                         injury, property damage, personal and advertising injury, products and completed operations
                                         (the "Manager's Liability Insurance").

 

		1.	Coverage on an occurrence form.

		2.	Coverage for liability assumed
                                         in an insured contract regarding the indemnification section of this agreement.

		3.	“Additional
                                         Insured – Owners, Lessees or Contractors – (FORM B), CG 20 10 04 13”
                                         or its equivalent providing coverage for both ongoing and completed operations and naming
                                         Owner as an additional insured.

		4.	Reserved.

		5.	Manager shall continue to name
                                         Owner as an additional insured for a period of three years following the termination
                                         of the Agreement. Manager shall provide Owner with an original certificate of insurance
                                         not less than fifteen days prior to each renewal date during this three-year period.

		6.	Reserved.

		7.	The pollution exclusion must be
                                         modified to include coverage for pollution claims related to a hostile fire as well as
                                         pollutants that are released from the building’s heating equipment or equipment
                                         used to heat water.

		8.	A separation of insured clause.

 

		b.	UMBRELLA OR EXCESS LIABILITY: limits
                                         of $5,000,000: Providing follow-form coverage over the Commercial General Liability,
                                         Automobile Liability and Employers’ Liability policies.

 

		c.	AUTO
                                         LIABILITY INSURANCE: Manager, at its expense which is not reimbursable, shall carry and
                                         maintain business auto liability insurance covering owned, non-owned and hired vehicles
                                         with a limit of not less than $1,000,000 combined single limit. 

 

		d.	WORKERS’ COMPENSATION AND
                                         EMPLOYERS’ LIABILITY INSURANCE:

 

		1.	Workers’ compensation –
                                         Statutory limits of insurance covering employees, including principals. In the event
                                         the principal has waived coverage for himself/herself, it is hereby agreed by all parties
                                         that the principal may not perform any work under this contract. In the event that the
                                         Manager uses an employee leasing company, the leasing company will obtain an alternate
                                         employer endorsement to its workers compensation policy.

		2.	Employers’ liability limits.

(A) $1,000,000 for bodily
injury caused by accident, each accident.

(B) $1,000,000 for bodily
injury caused by disease, each employee.

(C)$1,000,000 for
bodily injury caused by disease, policy limit.

 

		e.	PROPERTY MANAGER’S ERRORS
                                         AND OMISSIONS LIABILITY:

		1.	Limits of Insurance: $1,000,000
                                         per occurrence, $2,000,000 aggregate

 

    	15

    	 

    

  

		2.	If coverage is on a claims-made
                                         basis, the retroactive date must be a date that is not later than the date on which Manager
                                         began performing services on behalf of the Owner.

		3.	Contingent bodily injury and property
                                         damage coverage.

		4.	Coverage shall be maintained for
                                         a period of three years after the termination of services. Manager shall provide Owner
                                         with an original certificate of insurance on or before each renewal date during this
                                         three-year period.

		5.	The policy shall include a separation
                                         of insureds clause.

 

		f.	COMMERCIAL CRIME INSURANCE:

		1.	Limits of Insurance: $1,000,000
                                         employee dishonesty, $1,000,000 forgery or alteration, $1,000,000 computer fraud, $1,000,000
                                         wire funds transfer fraud, $1,000,000 money and securities on and off premises

		2.	Third party coverage.

		3.	No limitation or exclusion related
                                         to acts of collusion.

		4.	Reserved.

		5.	Coverage shall be included for
                                         theft of Owner’s property by Manager’s owners, directors and officers.

		6.	The definition of employee shall
                                         include leased employees if the Manager utilizes the services of an employee leasing
                                         firm.

 

		g.	EMPLOYMENT PRACTICES LIABILTIY
                                         INSURANCE:

Employment Practices Liability
insurance with limits of $1,000,000 per occurrence/aggregate, including third party coverage for sexual harassment, discrimination
and other coverable employment-related torts.

 

		h.	CERTIFICATES OF INSURANCE: Manager
                                         shall not begin performing services hereunder until original certificates of insurance
                                         showing evidence of the coverages outlined below have been furnished to and approved
                                         by Owner. Each policy shall provide for thirty (30) days' advance written notice of cancellation
                                         or material change by mail to Owner from the insurance company (or, with respect to cancellation
                                         for non-payment of premium, ten (10) days’ advance written notice), and this provision
                                         shall be evidenced on the certificates. Manager shall endeavor to have its insurers provide
                                         such notice to Owner as well, but if any insurer will not provide such notice to Owner
                                         then Manager agrees to immediately notify Owner upon receipt of any such notice. Evidence
                                         of renewal or replacement coverages shall be furnished to Owner not less than ten (10)
                                         days prior to expiration but in no event later than the renewal date itself.

 

8.04 OWNER'S LIABILITY INSURANCE
PRIMARY AND NON-CONTRIBUTORY

In connection with claims
by third parties, as between Owner's Liability Insurance and Manager's Liability Insurance, Owner's Liability Insurance shall
for all purposes be deemed the primary and non-contributory coverage. No claim shall be made by Owner or its insurance company
under or with respect to any insurance maintained by Manager except in the event such claim is caused by gross negligence (except
actions or policies specifically approved or required by Owner), willful misconduct (except actions or policies specifically approved
or required by Owner) or criminal actions on the part of Manager or Manager's employees.

 

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8.05 RENTER’S INSURANCE

If at the direction of the
Owner, Manager implements a renter’s insurance program at the Project whether it is a limited liability, or limited liability
and personal contents coverage policy, any such policy held by the resident shall not remove, replace, reduce, or in any way modify
the parties’ indemnification obligations herein or the requirements of Owner or Manager to provide insurance and indemnification
in accordance with Sections 6 and 8. Manager agrees to use best efforts to insure compliance on the part of Project residents.
Manager assumes no responsibility, liability or reduction in payment of its Base Management Fee as a result of any expense incurred
by Owner, including but not limited to payment by Owner of any insurance deductible amount, cause by the failure of a resident
to have renter’s insurance in place. This exclusion of liability on Manager’s part applies whether the resident failed
to procure renter’s insurance at the time of initial lease signing, at the time the resident’s renter’s insurance
policy came up for renewal, or at any other time.

 

8.06 VENDOR INSURANCE COMPLIANCE

At no cost to the Owner, Owner
agrees to utilize a Vendor Compliance Management Services Company to establish and manage vendor’s insurance agreeable to
Owner and Manager and approved by Manager. Utilizing such a company to manage vendor Liability Insurance Certificates and
provide related services shall not remove, replace, reduce, or in any way modify the parties’ indemnification obligations
herein or the requirements of Owner or Manager to provide insurance and indemnification in accordance with Sections 6 and 8. Manager
assumes no responsibility, liability or reduction in payment of its Base Management Fee, for property loss, personal injury (including
death) or denial of claims based on the status of a vendor’s policy whether its policy is amended, changed or lapsed. Further,
Manager assumes no responsibility for the Vendor Compliance Management Services Company beyond that required under this Agreement.

 

8.06 WAIVER OF SUBROGATION

Each insurance policy maintained
by Owner or by Manager with respect to the Project shall contain a waiver of subrogation clause, so that no insurers shall have
any claim over or against Owner or Manager, as the case may be, by way of subrogation or otherwise, with respect to any claims
that are insured under such policy. All insurance relating to the Project shall be only for the benefit of the party securing
said insurance and all others named as insureds. Notwithstanding
any contrary provision of this Agreement, Owner and Manager hereby
release each other from and waive all rights of recovery
and claims under or through subrogation or otherwise for
any and all losses and damages to property to the extent
caused by a peril insured or insurable under the policies of
insurance required to be maintained under this Agreement by the
waiving party and agree that no insurer shall have a right to recover any amounts paid with respect to any claim against
Owner or Manager by subrogation, assignment or otherwise.

 

8.07 HANDLING CLAIMS

Manager shall report within
a reasonable amount of time to Owner all accidents and claims of which it is aware for damage and injury relating to the ownership,
operation, and maintenance of the Project and any damage or destruction to the Project coming to the attention of Manager and
will assist Owner in Owner's attempts to comply with all
reporting and cooperation provisions in all applicable policies. Manager is authorized to settle on Owner's behalf any and all
claims against property insurers not in excess of $7,500, which includes authority for the execution of proof of loss, the adjustment
of losses, signing of receipts, and the collection of money. If the claim is greater than $7,500, Manager shall act only with
the prior written approval of Owner.

 

8.08 AUTOMOBILE INSURANCE.
INTENTIONALLY OMITTED

 

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8.09 WORKERS'
COMPENSATION INSURANCE. INTENTIONALLY OMITTED

 

8.10 DISHONESTY INSURANCE.
INTENTIONALLY OMITTED

 

8.11 ENVIRONMENTAL
INDEMNIFICATION

Owner agrees to defend, indemnify,
and hold harmless Manager and Manager's partners, directors, shareholders, officers, and agents, against and from any and all
actions, administrative proceedings, causes of action, charges, claims, commissions, costs, damages, decrees, demands, duties,
expenses, fees, fines, judgments, liabilities, losses, obligations, orders, penalties, recourses, remedies, responsibilities,
rights, suits, and undertakings of every nature and kind whatsoever, including, but not limited to, attorneys' fees and litigation
expenses, from the presence of Hazardous Substances (as defined below) on, under or about the Project. Without limiting the generality
of the foregoing, the indemnification provided by this paragraph shall specifically cover costs incurred in connection with any
investigation of site conditions or any remediation, removal or restoration work required by any federal, state or local governmental
agency because of the presence of Hazardous Substances in, on, under or about the Project, except to the extent that the Hazardous
Substances are present as a result of gross negligence, criminal activity, or any willful misconduct of Manager or its employees.
For purposes of this section, "Hazardous Substances" shall mean all substances defined as hazardous materials, hazardous
wastes, hazardous substances, or extremely hazardous waste under any federal, state or local law or regulation.

 

SECTION 9: MISCELLANEOUS PROVISIONS

 

9.01 GOVERNING LAW

This Agreement shall be governed
by and construed and interpreted in accordance with the laws of the State of North Carolina. Manager represents that it has qualified
to do business in the State of North Carolina in connection with all actions based on or arising out of this Agreement.

 

9.02 NOTICES

All notices, demands, requests
or other communications required or permitted to be given hereunder must be sent by (i) personal delivery, (ii) FedEx or a similar
nationally recognized overnight courier service, or (iii) certified mail, return receipt requested. Any such notice, request,
demand, tender or other communication shall be deemed to have been duly given: (a) if served in person, when served; (b) if by
overnight courier, on the first Business Day after delivery to the courier; or (c) if by certified mail, return receipt requested,
upon receipt. Rejection or other refusal to accept, or inability to deliver because of changed address or facsimile number of
which no notice was given, shall be deemed to be receipt of such notice, request, demand, tender or other communication. Any party
hereto may at any time by giving ten (10) days written notice to the other party hereto designate any other address in substitution
of the foregoing address to which such notice or communication shall be given.

 

	 	OWNER:	BR-TBR Whetstone Owner, LLC
	 	 	c/o Bluerock Real Estate
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, NY 10019
	 	 	Attention: Jordan Ruddy

  

    	18

    	 

    

 

	 	COPY TO:	Bluerock Real Estate
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, NY 10019
	 	 	Attention: Michael L. Konig, Esq.
	 	 	 
	 	MANAGER:	TriBridge Residential Property
    Management Advisors, LLC
	 	 	c/o TriBridge Residential, LLC 
	 	 	1575 Northside Drive
	 	 	Building 100, Suite 200
	 	 	Atlanta, GA 30318

 

9.03 SEVERABILITY

If any term, covenant or condition
of this Agreement or the application thereof to any person
or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement
or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder
of this Agreement or such other documents, or the
application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and each term, covenant or condition of this Agreement or such other documents shall
be valid and shall be enforced to the fullest extent permitted by law.

 

9.04
NO JOINT VENTURE OR PARTNERSHIP

Owner
and Manager hereby agree that nothing contained herein or in any document executed in connection herewith shall be construed as
making Manager and Owner joint venturers or partners. In no event shall Manager have any obligation or liability whatsoever with
respect to any debts, obligations or liabilities of Owner or vice versa, except as set forth herein or as set forth in any separate
agreement signed by Manager.

 

9.05 MODIFICATION
TERMINATION

This Agreement
terminates any and all prior management agreements between Owner and Manager relating to the Project, and any amendment,
modification, termination or release hereof may be effected only by a written document executed by Manager and Owner.

 

9.06 ATTORNEYS' FEES

Should either party be required
to employ an attorney or attorneys to enforce any of the provisions hereof or to protect its interest in any manner arising under
this Agreement, or to recover damages for the breach of
this Agreement, the non-prevailing party in any actions
(the finality of which is not legally contested) agrees to pay to the prevailing party all reasonable costs, damages and expenses,
including attorneys' fees expended or incurred in connection therewith.

 

9.07 TOTAL AGREEMENT

This Agreement
is a total and complete integration of any and all undertakings existing between Manager and Owner and supersedes any prior
oral or written agreements, promises or representations between them regarding the
subject matter hereof.

 

9.08 APPROVALS AND
CONSENTS

If any provision hereof requires
the approval or consent of Owner or Manager to any act or omission, such approval or consent shall not be unreasonably withheld
or delayed.

 

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9.09 CASUALTY

In the event that the Project,
or any portion thereof, is substantially or totally damaged or destroyed by fire, tornado, windstorm, flood or other casualty
during the term of this Agreement, Manager or Owner may terminate this Agreement upon giving the other party written notice of
termination on or before the date which is thirty (30) days after the date of such casualty. In the event of termination pursuant
to this Section 9.09, neither party hereto shall have any further liability hereunder, except for those obligations that by their
terms survive termination of this Agreement.

 

9.10 SPECIAL
AGREEMENTS

Notwithstanding
Manager’s review of and recommendations in respect to capital repairs and replacements for the Project, Owner acknowledges
that Manager is not an architect or engineer, and that all capital repairs, replacements and other construction in the Project
will be designed and performed by independent architects, engineers and contractors. Accordingly, Manager does not guarantee or
warrant that the construction documents for such work will comply with applicable law or will be free from errors or omissions,
nor that any such work will be free from defects, and Manager will have no liability therefor. In the event of such errors, omissions,
or defects, Manager will use reasonable efforts to cooperate in any action Owner desires to bring against such parties. Notwithstanding
any contrary provision hereof, Owner agrees that no partner, agent, director, member, officer, shareholder, or affiliate of Manager
shall be personally liable to Owner or anyone claiming by, through or under Owner, by reason of any default by Manager under this
Agreement, any obligation of Manager to Owner, or for any amount that may become due to Owner by Manager under the terms of this
Agreement otherwise. 

 

9.11
COMPETITIVE PROJECTS

Manager may, individually or
with others, provide management services in regard to and
possess an interest in any other projects and ventures of every nature and description, including, but not limited to, the ownership,
financing, leasing, operation, management, brokerage, development and sale of real property and apartment projects other than
the Project, whether or not such other ventures or projects are competitive with the Project, and Owner shall not have any right
to the income or profits derived therefrom.

 

9.12
SUCCESSORS AND ASSIGNS

Owner has entered into this
Agreement with Manager based on Manager's abilities and, accordingly, Manager may not assign this Agreement without the prior
written consent of Owner. Subject to this limitation on assignment, this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their permitted successors and assigns. Either Manager or Owner may assign this Agreement upon
obtaining the other party's prior written consent, provided that no consent shall be required for assignment to Owner's mortgagee(s).

 

9.13 WAIVER
OF JURY TRIAL.

Owner and Manager hereby knowingly,
voluntarily and intentionally, to the extent permitted by law, waive the right to a trial by jury in respect of any litigation
based on, arising out of, under or in connection with this Agreement or any documents contemplated to be executed in connection
herewith or any course of conduct, course of dealings, statements (whether oral or written) or actions of either party arising
out of or related in any manner to the Project (including, without limitation, any action to rescind or cancel this Agreement
or any claims or defenses asserting that this Agreement was fraudulently induced or is otherwise void or voidable). This waiver
is a material inducement for the Owner to enter into and accept this Agreement.

 

    	20

    	 

    

 

9.14 SUBORDINATION; LIEN WAIVER.

This Agreement and the rights
of the Manager hereunder shall be expressly subject and subordinate to the rights of KeyBank National Association under the Loan
Documents evidencing and securing the bridge loan obtained by Owner from KeyBank National Association to acquire the Project and,
to the extent required by the associated lender, any refinancing thereof. Further, Manager hereby expressly waives any and all
available lien rights that Manager might otherwise have with respect to the Project as a result of the services rendered under
this Agreement, including with respect to any lien rights that may otherwise exist as a result of any failure of the Owner to
pay any Base Management Fee or other fees due Manager hereunder.

 

Signatures on following pages

 

    	21

    	 

    

 

SECTION 11: SIGNATURES

 

IN WITNESS WHEREOF, the parties
hereto have executed this Management Agreement as of the day and year first above written.

 

	MANAGER: 	 
	 	 
	TRIBRIDGE RESIDENTIAL PROPERTY 	 
	MANAGEMENT ADVISORS, LLC, a Georgia	 
	limited liability company	 
	 	 
	By:	/s/ Robert H.
    West 	 
	 	Name: Robert H. West	 
	 	Title: Authorized Signatory	 
	 	 
	OWNER:	 
	 	 
	BR-TBR WHETSTONE OWNER, LLC,	 
	a Delaware limited liability company	 
	 	 
	By:	/s/ Robert H. West 	 
	 	Name: Robert H. West	 
	 	Title: Authorized Signatory	 

 

    	22

    	 

    

 

EXHIBIT A

 

2015 BUDGET

 

 

Whetstone Stabilized Operating Budget

 

	G&A	 	$	62,000	 
	Advertising	 	 	60,000	 
	Salaries & Rel.	 	 	320,000	 
	M&R	 	 	51,600	 
	Water/Sewer	 	 	82,000	 
	Utilities	 	 	59,000	 
	Cable Contract	 	 	125,000	 
	Turnkey	 	 	33,000	 
	Grounds/Pest/Trash	 	 	70,500	 
	Insurance	 	 	49,200	 
	Taxes	 	 	395,000	 
	CapEx Reserve	 	 	42,000	 
	Management Fee (3%)	 	 	105,000	 
	Operating Expenses Budget Total	 	$	1,454,800	 

 

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EXHIBIT B

REPORTS

 

		I.	Monthly Reports

 

1.        Balance
Sheet, including monthly comparison and comparison to year end (if applicable).

2.        Budget
Comparison(1), including month-to-date and year-to-date variances.

3.        Detailed
Income Statement, including prior 12 months.

4.        Trial
Balance that includes mapping of the accounts to the financial statements.

5.        Account
reconciliations for each balance sheet account within the trial balance.

6.        Detailed
support for each account reconciliation including the following:

a.     Detail
Accounts Payable Aging Listing: 0-30 days, 31-60 days, 61-90 days and over 90 days.

b.     Detail
Accounts Receivable/Delinquency Aging Report: 0-30 days, 31-60 days, 61-90 days, over 90 days and prepayments.

c.     Fixed
asset roll-forward and support (invoices and checks) for any new acquisition/additions and/or support for any disposals to fixed
assets. Purchases will be accounted for using Bluerock's capitalization policy.

 7.       Security
Deposit Activity

 8.       Mortgage
Statement

 9.       Monthly
Base Management Fee Calculation

 10.     Monthly
Distribution Calculation

 11.     General
Ledger, with description and balance detail

 12.     Monthly
Check Register including copies of all checks disbursed and copies of cancelled checks.

 13.     Rent
Roll

 14.     Monthly
Reporting and evidence of withdrawal, if any, of any operating reserve accounts and capital expense reserve accounts, including,
but not limited to, any calculations evidencing shortfalls payable thereunder.

 15.     Other
reasonable reporting at Owner’s expense, as requested and approved in writing by Owner at Owner’s expense

 

		II.	Quarterly
                                         Reports

 

16.     Within
five (5) business days of the end of each quarter, Manager shall furnish to Owner such information as requested by Owner or its
Members or affiliates as is necessary for any REIT Member of Owner (whether a direct or indirect owner) to determine its qualification
as a real estate investment trust (a “REIT”) and its compliance with any requirements for qualifying as a REIT (the
“REIT Requirements”) as shall be requested by Owner or its Members. Further, Manager shall cooperate in a reasonable
manner at the request of any Member to work in good faith with any designated accountants or auditors of such Member or its Affiliates
so that such Member or its Affiliate is able to comply with its 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 the Member or any of its Affiliates in connection therewith, including for purposes of testing internal
controls and procedures of such Member or its Affiliates. The requesting Member shall bear the cost of any information or reports
provided to such Member pursuant to this Exhibit.

 

 (1) Budget Comparison shall include (i) an unaudited income and expense statement showing the results of operation of the Project for the preceding calendar month and the Fiscal Year to-date; (ii) a comparison of monthly line item actual income and expenses with the monthly line item income and expenses projected in the Budget. The balance sheet will show the cash balances for reserves and operating accounts as of the cut-off date for such month.

 

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EXHIBIT C

VARIANCE REPORTS

 

		1.	Variance Report, including the following:

a.     Cap
Ex Summary and Commentary

b.     Monthly
Income/Expense Variance with notes

c.     Yearly
Income/Expense Variance with notes

d.     Occupancy
Commentary

e.     Market/Competition
Commentary

f.     Rent
Movement/Concessions Commentary

g.     Crime
Commentary

h.     Staffing
Commentary

i.      Operating
Summary, with leasing and traffic reporting 

j.      Other
reasonable reporting, as requested (e.g. Renovation/Rehab report) 

		2.	Budget Comparison(1), including month-to-date and year-to-date
                                         variances with narrative for any large fluctuations compared to Budget.

		3.	Market Survey, including property comparison, trends, and
                                         concessions.

 

(1) Budget Comparison shall include (i) an unaudited
income and expense statement showing the results of operation of the Project for the preceding calendar month and the Fiscal Year
to-date; (ii) a comparison of monthly line item actual income and expenses with the monthly line item income and expenses projected
in the Budget. The balance sheet will show the cash balances for reserves and operating accounts as of the cut-off date for such
month.

 

    	25

    	 

    

 

EXHIBIT D

 

CAPITALIZATION
AND EXPENSE POLICY

 

Capex are funds spent on acquiring, enhancing,
or upgrading physical assets, such as building improvements, land improvements, furniture and fixtures, machinery and equipment.
Capital items add value to the operations of the property and extend the useful life of the assets. Capitalization guidelines
are discussed below.

 

	 	·	A purchase will be capitalized
    if it is expected to yield a future benefit.  Future benefit can come from an increase in productive efficiency, enhanced
    revenues, or an extension of the original productive life.
	 	·	Capitalized items must have a life
    greater than one year, with the exception of certain intangible assets, which are amortized over their determined useful life.
    
	 	·	An asset acquisition with a useful
    life expectancy of greater than one year and individual item cost that exceeds $1,000. This threshold will be applied to the
    individual unit dollar amount, not the total amount of units purchased or the invoice total.

 

Recurring Capex 

	 	·	Carpet, vinyl or flooring
    costs are capitalized and considered recurring capex. 
	 	·	Appliances will be capitalized, which
    include ranges, dishwashers, washers and dryers, microwaves and water heaters that are typically below the $1,000 threshold.
    However, for non-typical appliance purchases Bluerock will review to determine the future benefits and if capitalization for
    the item is appropriate.

 

The following exceptions to the above
guidelines apply:

 

Major expenses are items that relate to the improvement
of the property but do not meet the definition of a “capitalized asset.” Major expenses may have a shorter life and
are less expensive than a capitalized asset.  They do not extend the useful life of the asset beyond the contemplated life
when the asset was placed in service.

 

Repairs & Maintenance are
repairs that are recurring and “typical” to maintain the asset’s current condition and do not extend the useful
life of the asset. These included any repairs due to damages and the general maintenance or upkeep of the apartment buildings.
As these do not increase the value of the asset, these costs will be expensed as incurred. To the degree that a repair increases
the life or value of the asset the repair and maintenance will be capitalized if the value is greater than $1,000 threshold.

 

Rehabilitation/Construction in Process
(CIP)

Capitalized assets can be the result of
rehabilitation of the property which will be placed into the rehab or construction in process account. Some specific guidelines
for these accounts include the following:

	 	·	Any marketing costs associated
    to rehabilitation of a property will be expensed and not capitalized.
	 	·	Once the asset is placed into service
    depreciation will commence.
	 	·	The cost associated to a website will
    only be capitalized if the website has a dual purpose (residents are able to pay rent, etc.) and the website is not strictly
    marketing oriented.

 

    	26

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