Document:

Exhibit 10.52

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

SALE OF BR LANSBROOK JV MEMBER, LLC INTERESTS

 

FROM

 

BLUEROCK SPECIAL OPPORTUNITY + INCOME
FUND II, LLC AND

BLUEROCK SPECIAL OPPORTUNITY + INCOME
FUND III, LLC 

 

TO

 

BLUEROCK RESIDENTIAL HOLDINGS, L.P.

 

    	 

    	 

    

 

CONTENTS

 

	Clause	 	Page
	Article 1.	SCHEDULE; DEFINITIONS; CONSIDERATION	 	4
	 	 	 	 
	1.1	Schedule	 	4
	1.2	Definitions	 	5
	1.3	Consideration	 	5
	1.4	Reserved	 	5
	1.5	Descriptive Headings; Word Meaning	 	5
	 	 	 	 
	Article 2.	INSPECTION	 	5
	 	 	 	 
	2.1	Due Diligence; Inspection	 	5
	2.2	Sellers’ Delivery of Specified Documents	 	6
	2.3	Title and Survey	 	6
	2.4	Objection Notice	 	6
	 	 	 	 
	Article 3.	OPERATIONS AND RISK OF LOSS	 	7
	 	 	 	 
	3.1	Ongoing Operations	 	7
	3.2	Damage	 	8
	3.3	Condemnation	 	8
	3.4	Certain Tax Matters	 	8
	 	 	 	 
	Article 4.	CLOSING	 	9
	 	 	 	 
	4.1	Closing	 	9
	4.2	Conditions to the Parties’ Obligations to Close	 	9
	4.3	Sellers’ Deliveries	 	10
	4.4	REIT’s Deliveries	 	11
	4.5	Closing Statements	 	12
	 	 	 	 
	Article 5.	PRORATIONS; COSTS	 	12
	 	 	 	 
	5.1	Prorations	 	12
	5.2	Post-Closing Corrections	 	12
	5.3	Costs; Transfer Taxes	 	12
	5.4	Sales Commissions; Disposition Fee	 	12
	5.5	Excluded Obligations and Assets	 	12
	 	 	 	 
	Article 6.	REPRESENTATIONS AND WARRANTIES	 	12
	 	 	 	 
	6.1	Sellers’ Representations and Warranties as to each Seller	 	12
	6.2	SOIF II’s Representations and Warranties as to SOIF II Lansbrook Interest and the Companies 	 	14
	6.3	SOIF II’s Representations and Warranties as to the Property	 	15
	6.4	SOIF III’s Representations and Warranties as to SOIF III Lansbrook Interest and the Companies	 	
        17

	6.5	SOIF III’s Representations and Warranties as to the Property	 	18
	6.6	REIT’s Representations and Warranties	 	19
	6.7	Limitations; Definition of Knowledge	 	21
	6.8	Survival of Representations and Warranties	 	22
	 	 	 	 
	Article 7.	DEFAULT AND REMEDIES	 	22

 

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	7.1	Seller’s Default	 	22
	7.2	REIT’s Default	 	22
	 	 	 	 
	Article 8.	INDEMNIFICATION AND LIMITATION ON LIABILITY	 	22
	 	 	 	 
	8.1	Indemnification of REIT by SOIF II	 	22
	8.2	Limitation on SOIF II’s Liability	 	22
	8.3	Indemnification of REIT by SOIF III	 	22
	8.4	Limitation on SOIF III’s Liability	 	23
	8.5	Pledge Agreement	 	23
	8.6	Indemnification of the SOIF Parties by REIT	 	24
	8.7	Limitation on REIT’s Liability	 	24
	8.8	SOIF Parties’ Loan Guarantees	 	24
	8.9	Survival	 	24
	 	 	 	 
	Article 9.	MISCELLANEOUS	 	24
	 	 	 	 
	9.1	Parties Bound	 	24
	9.2	Headings; Entirety; Amendments	 	24
	9.3	Invalidity and Waiver	 	25
	9.4	Governing Law; Calculation of Time Periods; Time	 	25
	9.5	No Third Party Beneficiary	 	25
	9.6	Confidentiality	 	25
	9.7	Enforcement Expenses	 	25
	9.8	Notices	 	25
	9.9	Construction	 	26
	9.10	Execution in Counterparts	 	26
	9.11	Further Assurances	 	26
	9.12	Waiver of Jury Trial; Forum	 	26
	9.13	Mutual Execution	 	26
	9.14	Cooperation	 	26
	9.15	Exclusivity	 	26

 

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MEMBERSHIP INTEREST PURCHASE AGREEMENT

SCHEDULE OF EXHIBITS AND APPENDICES

 

	Schedule 1.1	 	-	 	Sellers, Acquiror, Interest to be Acquired and Allocated Purchase Price
	Exhibit A	 	-	 	Property Description
	Exhibit B	 	-	 	Org Chart
	Exhibit C	 	-	 	Form of Pledge Agreement
	 	 	 	 	 
	Appendix 1.2	 	-	 	Defined Terms

 

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MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

This Membership Interest
Purchase Agreement (this “Agreement”) is made as of the Effective Date (defined below), by and among BLUEROCK
SPECIAL OPPORTUNITY + INCOME FUND II, LLC, a Delaware limited liability company (“SOIF II”), BLUEROCK SPECIAL
OPPORTUNITY + INCOME FUND III, LLC, a Delaware limited liability company (“SOIF III”) (collectively, SOIF II
and SOIF III shall be referred to herein as the “SOIF Parties” or the “Sellers,” and individually,
each is a “Seller”) and BLUEROCK RESIDENTIAL HOLDINGS, L.P., a Delaware limited partnership (“REIT”).

 

RECITALS

 

A.           SOIF II
is a co-manager of, and the owner and holder of a 40% limited liability company interest in, BR Lansbrook JV Member, LLC, a Delaware
limited liability company (“BR Lansbrook JV Member”). SOIF III is a co-manager of, and the owner of a 60%
limited liability company interest in BR Lansbrook JV Member.

 

B.           BR
Lansbrook JV Member is the owner and holder of a 90% limited liability company interest in BR Carroll Lansbrook JV, LLC, a Delaware
limited liability company (“Lansbrook JV”) which owns a 100% limited liability company interest in BR Carroll
Lansbrook, LLC, a Delaware limited liability company (“Lansbrook Titleholder”), which is the fee simple owner
and holder of the Lansbrook Property (as defined in Appendix 1.2).

 

C.           Carroll
Lansbrook JV Member, LLC, a Georgia limited liability company (“Carroll”), which is unrelated to BR Lansbrook
JV Member and Sellers, is the owner and holder of a 10% non-managing limited liability company interest in Lansbrook JV.

 

D.           The
Lansbrook Property is managed on a day-to-day basis by Carroll Management Group, LLC, a Georgia limited liability company (“Property
Manager”), an affiliate of Carroll. Carroll and Property Manager are sometimes referred to collectively as the “Carroll
Entities”.

 

E.           SOIF
II desires to sell, and REIT desires to purchase from SOIF II, 32.67% of SOIF II’s 40% limited liability company interest
in the BR Lansbrook JV Member, free and clear of Encumbrances (the “SOIF II Lansbrook Interest”), and SOIF
III desires to sell, and REIT desires to purchase from SOIF III, 52.67% of SOIF III’s 60% limited liability company
interest in the BR Lansbrook JV Member, free and clear of Encumbrances (the “SOIF III Lansbrook Interest”)
(collectively, the SOIF II Lansbrook Interest and the SOIF III Lansbrook Interest shall be referred to herein as the “Lansbrook
Interests”), and the parties desire to amend the management structure of BR Lansbrook JV Member in connection therewith
(SOIF II and SOIF III shall each retain a 7.33% ownership interest in BR Lansbrook JV Member).

 

F.           Through
the aforesaid transfers, and in accordance with the other terms and conditions of this Agreement, REIT intends to acquire the Lansbrook
Interests by directing the SOIF Parties to convey the Lansbrook Interests to the REIT’s wholly owned subsidiary, BRG Lansbrook,
LLC, a Delaware limited liability company (“BRG Lansbrook”), in consideration for which REIT shall pay cash
consideration to the SOIF Parties, as provided herein.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Sellers and REIT agree as follows:

 

ARTICLE 1. SCHEDULE; DEFINITIONS; CONSIDERATION

 

1.1 Schedule.
Schedule 1.1 and the following basic terms are made a part of this Agreement:

 

	Consideration:	 	For the Lansbrook Interests, REIT shall deliver to SOIF II and SOIF III the consideration more fully set forth in Section 1.3, subject to adjustment for prorations and other adjustments as elsewhere provided herein.
	 	 	 
	Effective Date:	 	May 15, 2014.

 

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	Due Diligence Period:	 	The period ending at 5:30 p.m. (New York, NY time) on May 19, 2014.
	 	 	 
	Closing Date:	 	Such date which has been mutually agreed upon by the REIT, SOIF II and SOIF III (collectively, the “Parties,” individually each a “Party”), subject to an outside closing date of July 31, 2014, unless extended by mutual agreement of the Parties.
	 	 	 
	Notice Addresses:	 	See Section 9.8 herein.

 

1.2 Definitions.
Certain terms, capitalized but not defined in the body of this Agreement or otherwise designated in Section 1.1 hereof,
shall have the meanings ascribed to them on Appendix 1.2 attached hereto.

 

1.3 Consideration.
In accordance with the Recitals set forth above, which Recitals are incorporated into this Agreement and made a part hereof, the
Sellers agree to sell, and the REIT agrees to purchase, the Lansbrook Interests for the consideration set forth below (the “Consideration”)
and on the terms and conditions otherwise contained in this Agreement.

 

(a)          At
Closing, provided all conditions precedent set forth herein have been satisfied, including, but not limited to, the Transaction
Conditions, the SOIF Parties shall sell, transfer, assign, convey and deliver to REIT, absolutely and unconditionally, and free
and clear of all Liens except as otherwise set forth herein, all of their respective rights, title and interests in the Lansbrook
Interests. The purchase and assumption of the Lansbrook Interests shall be evidenced by the Assignment of Interests (as hereinafter
defined).

 

(b)          REIT
shall pay a sum equal to $14,193,315.071, as allocated in Schedule 1.1 hereof, in U.S. currency, by wire transfer
of immediately available funds, to SOIF II and SOIF III into accounts to be designated by them respectively in writing prior to
Closing.

 

1.4 Reserved.

 

1.5 Descriptive
Headings; Word Meaning. The descriptive headings of the paragraphs of this Agreement are inserted for convenience only
and shall not control or affect the meaning or construction of any provisions of this Agreement. Words such as “herein,”
“hereinafter,” “hereof” and “hereunder” when used in reference to this Agreement, refer to
this Agreement as a whole and not merely to a subdivision in which such words appear, unless the context otherwise requires. The
singular shall include the plural and the masculine gender shall include the feminine and neuter, and vice versa, unless the context
otherwise requires. The word “including” shall not be restrictive and shall be interpreted as if followed by the words
“without limitation.”

 

ARTICLE 2. INSPECTION

 

2.1 Due Diligence;
Inspection. REIT shall have the Due Diligence Period in which to examine and inspect the Lansbrook Interests, the Companies
and the Property to determine, in its sole discretion, whether the Lansbrook Interests, the Companies and the Property are satisfactory
to the REIT. The REIT and other parties designated by it (collectively, “REIT’s Representatives”) shall
have reasonable access to all books and records for the Property and the Companies that are in Sellers’ possession or control
for the purpose of conducting due diligence and shall, subject to the rights of tenants under Leases, be able to conduct and complete
such surveys, inspections and tests (including reasonable intrusive inspection and sampling), as may be required by the REIT, subject
to the limitations set forth herein. In the course of its investigations, but subject to the provisions of Section 9.6,
the REIT may make inquiries to third parties, including, without limitation, municipal, local and other government representatives.

 

 

1 The
REIT’s payment of $14,193,315.07 assumes a closing of May 23, 2014. See Schedule 1.1 hereof for additional details.

 

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If any inspection or
test damages the Property, REIT will promptly restore at its sole expense the Property to its condition immediately prior to any
such inspection or test. Notwithstanding the foregoing, REIT shall not conduct any soil borings, core samples or other invasive
testing without the prior written consent of Sellers (and also without the prior written consent of the Carroll Entities to the
extent Sellers determine such consent must be obtained), which consent by Sellers will not be unreasonably withheld, delayed or
conditioned and which shall be deemed given by Sellers unless the Sellers provide written notice of objection to REIT, specifying
the basis for such objection, within three (3) days after submission by REIT of a written request for such testing. REIT shall
indemnify, defend and hold Sellers, Lansbrook Titleholder and the Carroll Entities harmless from any liens arising out of its inspections
as well as any claims asserted by third parties against Sellers, Lansbrook Titleholder or the Carroll Entities (other than those
arising out of the gross negligence or willful misconduct of Sellers, Lansbrook Titleholder or the Carroll Entities or any of their
respective Affiliates (other than REIT, its Subsidiaries and its Manager) to recover for personal injury or property damage as
a result of REIT’s or REIT’s Representatives’ entry onto the Property; provided, however, the indemnity shall
not extend to protect Sellers, Lansbrook Titleholder or the Carroll Entities from any pre-existing liabilities for matters merely
discovered by REIT (i.e., latent environmental contamination) so long as REIT’s actions do not intentionally exacerbate such
pre-existing liability. REIT shall procure and continue in force from and after the date REIT and REIT’s Representatives
first enter the Property, and continuing throughout the term of this Agreement, liability insurance of not less than $1,000,000.
Prior to entering the Property, REIT shall provide to Sellers a certificate of insurance evidencing such coverage and naming Lansbrook
Titleholder and Property Manager as additional insured parties. REIT’s obligations under this Section 2.1 shall
survive the termination of this Agreement for a period of twelve (12) months.

 

2.2 Sellers’
Delivery of Specified Documents. Upon REIT’s written request, Sellers or their agents shall provide, subject to the
provisions of Section 9.6, the REIT with access to a virtual data room containing any reasonable information sought
by REIT (and not otherwise already in REIT’s possession) with respect to the Lansbrook Interests, the Companies and the Property.
Information concerning the Property shall collectively be referred to herein as the “Property Information”,
and information concerning the Lansbrook Interests and the Companies shall collectively be referred to herein as the “Company
Information”. During the pendency of this Agreement, (i) Sellers shall post in the virtual data room any document
described above as and when it comes into Sellers’ possession or control or is produced by Sellers, after the initial delivery
of the Property Information; and (ii) Sellers shall endeavor to keep REIT reasonably informed as to the material operation
of the Property, and at the written request of the REIT, shall post in such virtual data room copies of leasing status reports,
operating statements and other management reports with respect to the Property prepared in the ordinary course of business. Without
limiting the foregoing, Sellers shall make all other documents, files and information requested by REIT (and not otherwise already
in REIT’s possession) concerning the Property and the Companies in the possession or control of Sellers available for REIT’s
inspection in such virtual data room or such other location as the parties may reasonably agree.

 

2.3 Title and
Survey. REIT, at its own expense, may, during the Due Diligence Period, order (i) any owner lien searches (or other
title updates) with respect to the Property, (ii) such surveys or updates to existing surveys with respect to the Property
as it desires and (iii) such UCC, judgment, and tax lien searches with respect to Sellers, the Companies and the Property
as it desires. Sellers shall cooperate and shall cause other parties to cooperate with REIT’s inspections under this Section.

 

2.4 Objection
Notice. If REIT is not satisfied in its sole discretion with any of its inspections, reviews or with any other matter concerning
the Property or the Companies, REIT may, either (i) on or prior to the expiration of the Due Diligence Period, terminate this
Agreement by notice to the Sellers, in which event no party shall have further obligations hereunder, except for the payment of
certain expenses pursuant to Section 5.3 and except with respect to the indemnity and defense provisions of Section 2.1,
or (ii) on or prior to May 19, 2014, raise certain objections by providing notice to Sellers in writing (the “Objection
Notice”), which Objection Notice may, at REIT’s option, specify in reasonable detail which matters (collectively,
the “Objections”) REIT does not find satisfactory with respect to the Property and the Companies.

 

If REIT timely provides
an Objection Notice, then the applicable Seller shall have two (2) Business Days after receipt of such Objection Notice to notify
REIT in writing as to whether it intends to remove, or cause to be corrected to REIT’s reasonable satisfaction prior to Closing,
any of such Objections, and removal or correction of any such Objections which the applicable Seller elects to remove or correct
(or is obligated to remove or correct hereunder) shall be a condition to REIT’s obligation to close (collectively, “Mandatory
Cure Items”). Anything herein to the contrary notwithstanding, Sellers shall not have any obligation to remove or correct
any Objections other than voluntary Encumbrances of the Lansbrook Interests or the Property (but not including liens and security
interests securing the Loans), or any other Objections which any Seller elects to cure as provided above, all of which shall be
removed by such Seller on or before Closing. The Closing Date may be extended if needed to allow sufficient time for Sellers to
remove or cure such Mandatory Cure Items. The foregoing notwithstanding, Sellers shall be required to (i) remove any mechanic’s
or material liens encumbering the Property or (ii) cause such liens to be bonded over or secured to REIT’s reasonable
satisfaction.

 

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If Sellers do not elect
in writing within such two (2) Business Day period to remove or correct any Objection to REIT’s reasonable satisfaction,
then REIT (i) shall elect by written notice to Sellers, on or prior to the expiration of the Due Diligence Period, to terminate
this Agreement and neither party shall have any further obligations hereunder, except for the payment of certain expenses pursuant
to Section 5.3 and except with respect to the indemnity and defense provisions of Section 2.1, or (ii) shall
accept and purchase the Lansbrook Interests and the Property subject to any Objections (other than Mandatory Cure Items), and proceed
to close as to all of the Lansbrook Interests, with the further right to deduct from the Consideration amounts required to remove
any Mandatory Cure Items that are liens of an ascertainable amount and that are not removed by Sellers on or before Closing.

 

If this Agreement is
not terminated on or prior to the expiration of the Due Diligence Period, then REIT shall proceed to close under this Agreement
subject only to the satisfaction of REIT’s closing conditions set forth in Section 4.2 of this Agreement.

 

ARTICLE 3. OPERATIONS AND RISK OF LOSS

 

3.1 Ongoing Operations.
From the Effective Date through the Closing Date:

 

(a)          Operation
of Property. Sellers shall use Commercially Reasonable Efforts to cause Lansbrook Titleholder to maintain the Property in substantially
its current condition, subject to ordinary wear and tear, natural deterioration and obsolescence between the Effective Date and
the Closing Date, and in material compliance with all applicable Laws. Except as necessary to comply with the preceding sentence
or to make the Real Property suitable for use by new tenants, Sellers shall not make or permit any material alterations to the
Property or any portion thereof without REIT’s prior written consent, which shall not be unreasonably withheld, conditioned
or delayed. Sellers will use Commercially Reasonable Efforts to cause each Company to perform its material obligations under all
Leases, Service Contracts and other agreements that may affect it or the Property or the Lansbrook Interests. Sellers will not
remove or permit the removal of any Personal Property except as may be required for necessary repair or replacement, and repair
and replacement shall be of equal quality and quantity as existed as of the time of its removal. Sellers and their respective employees,
agents or contractors, shall not knowingly or intentionally take or permit to be taken any action that causes such Seller’s
representations or warranties hereunder to become materially untrue or that causes one or more of REIT’s conditions to Closing
to be unsatisfied or knowingly or intentionally fail to take any action within its actual control that is required to cause such
Seller’s representations and warranties hereunder to be true in all material respects.

 

(b)          New
Contracts and Exclusivity. Sellers shall not, and shall not knowingly or intentionally cause or permit any of Companies to,
(i) without REIT’s prior written consent (which may be withheld in REIT’s reasonable discretion through to the
expiration of the Due Diligence Period and in REIT’s sole discretion after the end of the Due Diligence Period), amend, grant
concessions or waivers regarding or under, or enter into any material contract or other agreement that will be an obligation affecting
any of the Companies or the Property after Closing or binding on any of the Companies after Closing, except Leases or Service Contracts
in the ordinary course of business consistent with past practices (and consistent with then-current concessions and parameters)
and contracts terminable by any of the Companies without penalty on no later than sixty (60) days’ notice, or (ii) list
the Lansbrook Interests or the Property with any broker or otherwise solicit, negotiate or accept any offers to sell all or any
part of the Lansbrook Interests or the Property or any interest therein or in any of the Subsidiaries. If REIT fails to respond
to a request of any Seller for consent required by Section 3.1(b)(i) within five (5) days after REIT’s receipt of
such Seller’s written request and all information reasonably required in order to make an informed decision, REIT shall (A)
prior to the expiration of the Due Diligence Period, be deemed to have consented to Seller taking such proposed action and (B)
after the expiration of the Due Diligence Period, be deemed to have objected to such proposed action.

 

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(c)          Maintenance
of Permits and Insurance. Sellers shall use Commercially Reasonable Efforts to cause each of the Companies to maintain in existence
all licenses, permits and approvals necessary or reasonably appropriate to the ownership, operation or improvement of their own
legal status and the Property as well as all insurance currently affecting the Property.

 

(d)          Leasing.
Sellers shall not, and shall not knowingly or intentionally, cause or permit the Companies to enter into any Leases, or grant any
lease concessions, incentives or waivers, except in the ordinary course of business consistent with past practices.

 

(e)          Loan
Documents. Sellers will use Commercially Reasonable Efforts to cause the Companies to timely comply with all of the terms and
conditions of the Loan Documents. Except for any amendments expressly contemplated hereby or unless necessary to avoid or cure
any default thereunder or unless required by any Lender, Sellers shall not knowingly or intentionally cause or permit any of the
Companies to amend or terminate the Loan Documents without REIT’s prior written consent (which may be withheld in REIT’s
reasonable discretion prior to the expiration of the Due Diligence Period and in REIT’s sole discretion after the end of
the Due Diligence Period).

 

(f)          Property
Encumbrances. Except for any liens and security interests securing the Loans or any liens resulting from REIT’s (or REIT’s
Representatives’) activities at or on the Property pursuant to this Agreement, Sellers shall not create or acquiesce to the
creation of, and shall not knowingly or intentionally permit Lansbrook Titleholder to create or acquiesce to the creation of, any
Encumbrances to title with respect to the Property other than the Existing Title Exceptions with respect to the Property, without
in each case the prior written consent of REIT, which consent may not be unreasonably withheld, conditioned or delayed prior to
the expiration of the Due Diligence Period, but which may be withheld in REIT’s sole discretion following the expiration
of the Due Diligence Period.

 

(g)          Ownership
Interests. Sellers shall not, and shall not knowingly or intentionally permit the Companies to, sell, assign, convey, transfer,
pledge, hypothecate or otherwise Encumber any membership or partnership interest in any of the Companies, other than the assignment
of the Lansbrook Interests pursuant to this Agreement. Any such action taken by the Carroll Entities shall be outside of the scope
of this Agreement.

 

3.2 Damage.
Risk of loss up to and including the Closing Date shall be borne by Sellers. Sellers shall promptly give REIT written notice of
any damage to the Property, describing such damage, stating whether such damage and loss of rents is covered by insurance and the
estimated cost of repairing such damage. In the event of any “Material Damage” (described below) to the Property, REIT
may, at its option, by written notice to Sellers given within three (3) Business Days after Sellers have provided the above described
notice (and if necessary the Closing Date shall be extended to give REIT the full three (3) Business Day period to make its election)
to: (i) terminate this Agreement, or (ii) proceed under this Agreement and receive a credit at Closing for Sellers’ applicable
interest of any applicable deductible amount under any insurance policies. If REIT fails to timely make such election, REIT shall
be deemed to have elected to terminate this Agreement. If the Property is not Materially Damaged, then (x) REIT shall not have
the right to terminate this Agreement and (y) at Closing, REIT shall receive a credit for Sellers’ applicable interest of
any applicable deductible amount under said insurance policies and any uninsured loss. “Material Damage” and
“Materially Damaged” means, with respect to the Property, damage which in REIT’s and Sellers’ reasonable
estimation (based on a third party report, prepared by a qualified third party, that is mutually acceptable to REIT and Sellers,
each acting in its reasonable discretion) exceeds $100,000 to repair. Such third party report shall not be required where it is
evident that such damage will not exceed $100,000 to repair.

 

3.3 Condemnation.
In the event any proceedings in eminent domain are threatened in writing or instituted against any portion of the Property by any
Governmental Authority having the power of eminent domain, this Agreement shall automatically terminate.

 

3.4 Certain Tax
Matters.

 

(a)          Between
the Effective Date and the Closing Date, Sellers shall give, subject to the provisions of Section 9.6 below, REIT and
REIT’s Representatives full access at their own expense to all books, records and tax returns of or relating to the Lansbrook
Interests, whether in possession of Sellers or any of their Affiliates or any third-party professional advisor or representative
of Sellers, in order that REIT may have full opportunity to make such investigations as they shall desire to make of the Lansbrook
Interests for tax purposes. Sellers shall use Commercially Reasonable Efforts to cause all of their respective third-party advisors
and representatives, including without limitation accountants and attorneys, to fully cooperate and be available to REIT (at its
sole expense) in connection with such investigation.

 

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(b)          The
Parties will account for the transactions contemplated hereby for all purposes (including GAAP and tax accounting) as a sale by
the Sellers of the respective membership interests in BR Lansbrook JV Member set forth herein to the REIT in a taxable transaction
for U.S. federal income tax purposes.

 

ARTICLE 4. CLOSING

 

4.1 Closing.
The Closing shall occur on the Closing Date. The transactions described herein shall be closed by means of concurrent delivery
of the documents of title, transfer of interest and the Consideration. Closing shall take place at the offices of Kaplan Voekler
Cunningham & Frank, PLC, 1401 East Cary Street, Richmond, Virginia 23219, or such place as the Parties hereto may agree upon.
If the Closing has not occurred on or before July 31, 2014 (except as such date may be further extended by mutual agreement
of the Parties), this Agreement shall expire and terminate with no further action required, subject only to the provisions hereto
which expressly survive termination.

 

4.2 Conditions
to the Parties’ Obligations to Close.

 

(a)  Transaction
Conditions.

 

A.           As
a condition to REIT’s obligation to close, any notice to the Lender to the conveyance of the Lansbrook Interests as a permitted
transfer required under any of the Loan Documents shall have been delivered to Lender in accordance with the applicable Loan Documents,
and any terms and conditions imposed by any such Lender in connection with the conveyance shall be satisfactory to the REIT in
its sole discretion.

 

B.           As
a condition to REIT’s obligation to close, the REIT or REIT Parent (or both) may be obligated to assume personal liability
for certain undertakings under the Loan Documents, as reasonably required by Lender as a condition to granting its consent to the
proposed transfer. However, none of the REIT or any of its direct or indirect owners or REIT Parent shall be obligated to assume
any liabilities directly related to the Lansbrook Interests, and at Closing all of the Lansbrook Interests will be free from third-party
loans and security interests, including without limitation any lien arising under the KeyBank Line of Credit, but will remain subject
to the Loans and all liens and security interests associated therewith.

 

C.           As
a condition to REIT’s obligation to close, as of the Closing Date, there shall not exist any uncured event of default under
the Loan Documents and Lansbrook Titleholder shall have paid in full all interest and other amounts (including, without limitation,
installments of principal and interest and any applicable fees, charges or penalties) that are then due and payable under the Loan
Documents to which it is a party at or prior to Closing.

 

D.           As
a condition to REIT’s obligation to close, as of the Closing Date, Sellers shall have agreed to modify the terms and conditions
of the BR Lansbrook JV Member’s limited liability company agreement (the “BR Lansbrook JV Member Operating
Agreement”) relative to control of the entity to the satisfaction of the REIT in its sole discretion.

 

The conditions precedent set forth in this
Section 4.2(a), are referred to collectively in this Agreement as the “Transaction Conditions”. If REIT
does not exercise its right to terminate this Agreement on or before the expiration of the Due Diligence Period pursuant to Section
2.4, following the expiration of the Due Diligence Period, Sellers shall use Commercially Reasonable Efforts to cause the Transaction
Conditions to be satisfied and REIT agrees to cooperate in good faith and with reasonable diligence with such efforts. At Closing,
REIT shall pay to Sellers (or reimburse Sellers, as applicable, with respect to) (i) any and all payments required to be made to
or on behalf of any Lender in order to procure its consent to this transaction and (ii) any and all of the reasonable legal fees
of counsel incurred in connection with satisfaction of the Transaction Conditions in Section 4.2(a)(A). REIT shall have
the right to participate with Sellers in respect to negotiation with each Lender concerning satisfaction of the Transaction Conditions.

 

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(b)          Title.
It shall be a condition to REIT’s obligation to close that title to the Property is vested of record in Lansbrook Titleholder
on the Closing Date, subject only to the Permitted Exceptions and any liens resulting from REIT’s (or REIT’s Representatives’)
activities at or on the Property pursuant to this Agreement.

 

(c)          Mutuality
of Obligations to Close. The obligation of each Party to consummate the Closing shall be contingent upon the satisfaction of
all conditions precedent to such Party’s obligation to close.

 

(d)          Performance
Conditions. The obligation of Sellers to consummate the Closing shall be contingent upon the following: (i) the REIT’s
representations and warranties contained herein shall be true and correct in all material respects as of the date of this Agreement
and the Closing Date, except to the extent the inaccuracy of which would not have a Material Adverse Effect, without giving effect
to any knowledge based qualifications; (ii) as of the Closing Date, the REIT shall have performed its obligations hereunder
that are to be performed on or prior to the Closing Date and all deliveries to be made at or prior to the Closing Date (including,
without limitation, delivery of the Consideration) shall have been tendered; and (iii) the Closing Date shall be no later
than July 31, 2014, unless such date is mutually extended by the Parties. The obligation of REIT to consummate the Closing
shall be contingent upon the following: (x) the Sellers’ representations and warranties contained herein shall be true and
correct in all material respects as of the date of this Agreement and the Closing Date, except to the extent the inaccuracy of
which would not have a Material Adverse Effect, without giving effect to any knowledge based qualifications; and (y) as of the
Closing Date, Sellers shall have performed their obligations hereunder that are to be performed on or prior to the Closing Date
and all deliveries to be made at or prior to the Closing Date shall have been tendered (other than the failure by Sellers to provide
or make available any immaterial document or information in accordance with Section 2.2).

 

(e)          Other
Mutual Conditions. The obligation of the Sellers, on the one hand, and the REIT, on the other hand, to consummate the Closing
shall be contingent upon the following: (i) there shall exist no actions, suits, arbitrations, claims, attachments, proceedings,
assignments for the benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings pending against any other
Party that would have Material Adverse Effect on the operation or value of the Property (or with respect to REIT’s obligation
to close, any of the Companies) or the other Party’s ability to perform its obligations under this Agreement; and (ii) all
other conditions set forth in this Agreement to the other Party’s obligation to close shall have been satisfied or waived
in writing by such other Party.

 

(f)          Uncured
Violations. As a condition to REIT’s obligation to close, there shall be no notice issued after the expiration of the
Due Diligence Period of any material violation or alleged material violation of any applicable Law, with respect to the Property
or any of the Companies, which has not been corrected to the reasonable satisfaction of REIT.

 

(g)          Failure
of Condition. So long as a Party is not in default hereunder beyond any applicable notice and cure periods, if any condition
to such Party’s obligation to proceed with the Closing set forth in this Agreement has not been satisfied as of the Closing
Date (as it may have been mutually extended by the Parties), such Party may, in its sole discretion, (i) terminate this Agreement
in whole by delivering written notice to the other Party on or before the Closing Date, or (ii) elect on or before the Closing
Date to effect the Closing, notwithstanding the non-satisfaction of such condition, in which event such Party shall be deemed to
have waived any such condition. Any failure of a Party to make an election on or before the Closing Date under clauses (i) or (ii)
above, shall be deemed an election under clause (i) above.

 

4.3 Sellers’
Deliveries. On or before the Closing Date, the Sellers shall deliver or cause to be delivered directly to REIT the following,
each such document being duly executed and, where appropriate, in recordable form and notarized:

 

(a)          Assignment
of Interest. Two counterparts of an assignment of the SOIF II Lansbrook Interest and the SOIF III Lansbrook Interest in form
reasonably satisfactory to REIT, executed by the Sellers and BR Lansbrook JV Member, which assignment shall include, but not be
limited to, all ownership and possession of and all voting rights and interests in the capital, profits and losses of the Lansbrook
Interests plus any property distributable therefrom (the “Assignment of Interests”);

 

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(b)          FIRPTA.
The certification of the Sellers as to non-foreign status (the “FIRPTA Certificate”);

 

(c)          Authority.
Evidence of the existence, organization and authority of the Sellers and of the authority of the persons executing documents on
behalf of the Sellers reasonably satisfactory to REIT;

 

(d)          Transaction
Condition Documents. Such documents and deliveries from or on behalf of Sellers, Lansbrook JV or Lansbrook Titleholder or any
Affiliate of any of them as may be reasonably required to satisfy the Transaction Conditions;

 

(e)          Bring-Down
Certificate. A written certification by the Sellers to REIT certifying that the Sellers’ representations and warranties
in Article 6 of this Agreement are true and correct in all material respects as of the Closing Date, except as expressly
disclosed in such certificate and except to the extent the inaccuracy of which would not have a Material Adverse Effect;

 

(f)          Amended
Operating Agreement. An amended BR Lansbrook JV Member Operating Agreement in accordance with Section 4.2(a)(D)
above, duly executed by the SOIF Parties and BRG Lansbrook;

 

(g)          Updated
Rent Roll and Schedule of Service Contracts. An updated Rent Roll and updated schedule of Service Contracts, dated not earlier
than ten (10) days prior to the Closing Date;

 

(h)          Pledge
Agreement. The Pledge Agreement (as hereinafter defined), executed by or on behalf of each of the SOIF Parties, substantially
in the form attached hereto as Exhibit C; and

 

(i)          Other
Deliveries. Such other documents, certificates and instruments reasonably necessary in order to effectuate the transactions
described herein, including without limitation, transfer tax declarations, broker lien waivers, and any other Closing deliveries
required to be made by or on behalf of the Sellers.

 

4.4 REIT’s
Deliveries. On or before the Closing Date, REIT shall deliver or cause to be delivered to the Sellers the following, each
such document being duly executed and, where appropriate, in recordable form and notarized:

 

(a)          Assignment
of Interests. Two counterparts of the Assignment of Interests;

 

(b)          Authority.
Evidence of the existence, organization and authority of REIT and of the authority of the persons executing documents on behalf
of REIT reasonably satisfactory to the Sellers;

 

(c)          Transaction
Condition Documents. Such documents and deliveries from or on behalf of REIT, REIT Parent, BRG Lansbrook or Affiliate of any
of them as may be reasonably required to satisfy the Transaction Conditions;

 

(d)          Bring-Down
Certificate. A written certification by REIT to the Sellers certifying that REIT’s representations and warranties in
Article 6 of this Agreement are true and correct in all material respects as of the Closing Date, except as expressly
disclosed in such certificate and except to the extent the inaccuracy of which would not have a Material Adverse Effect;

 

(e)          Consideration.
The Consideration for the Lansbrook Interests, plus or minus applicable prorations and adjustments as provided herein;

 

(f)          Joinder.
The Joinder (as defined below), executed by the REIT Parent;

 

(g)          Pledge
Agreement. The Pledge Agreement (as hereinafter defined), executed by or on behalf of the REIT, substantially in the form attached
hereto as Exhibit C; and

 

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(h)          Other
Deliveries. Such other documents, certificates and instruments reasonably necessary in order to effectuate the transactions
described herein, including without limitation, transfer tax declarations, broker lien waivers, and any other Closing deliveries
required to be made by or on behalf of REIT.

 

4.5 Closing Statements.
On or before the Closing Date, the Sellers and REIT shall execute closing statements consistent with this Agreement.

 

ARTICLE 5. PRORATIONS; COSTS

 

5.1 Prorations.
REIT and Sellers agree to use customary commercially reasonable practices to determine all prorations and adjustments to be made
between REIT and Sellers at Closing. Sellers shall be entitled to all income, and be liable for all expenses, associated with the
Lansbrook Interests arising prior to the Closing. REIT shall be entitled to all income, and be liable for all expenses, associated
with the Lansbrook Interests arising on or after the Closing.

 

5.2 Post-Closing
Corrections. Either Party shall be entitled to a post-Closing adjustment for any incorrect proration or adjustment, provided
such adjustment is claimed by such Party within twelve months after Closing. The provisions of this Section 5.2 shall survive
the Closing.

 

5.3 Costs; Transfer
Taxes. In addition to the other costs and expenses specified herein, REIT shall pay (i) the cost of any updated title reports,
(ii) the costs of any survey updates or new surveys obtained by REIT, (iii) other costs associated with REIT’s due diligence
activities and (iv) any Transfer Taxes due and payable with respect to the conveyance of the Lansbrook Interests. In addition to
the other costs and expenses specified herein, Sellers shall pay the cost of removing any Encumbrances directly on the Lansbrook
Interests. Except as provided in Section 4.2(a), Section 7.1, Section 7.2, Section 8.1, Section
8.3, Section 8.6 and Section 9.7 of this Agreement, or in any other document or instrument executed pursuant
to this Agreement, each Party shall be responsible for their own attorneys’ and other professional fees. Sellers and REIT
shall execute any required city, county and state Transfer Tax or other declarations.

 

5.4 Sales Commissions;
Disposition Fee. Sellers and REIT represent and warrant each to the other that they have not dealt with any real estate
broker or sales person in connection with this transaction. In the event of any claim for broker’s or finder’s fees
or commissions in connection with the negotiation, execution or consummation of this Agreement or the transactions contemplated
hereby, each Party shall indemnify, defend and hold harmless the other Party from and against any such claim based upon any actual
or alleged statement, representation or agreement of the indemnifying party.

 

5.5 Excluded
Obligations and Assets.

 

(a)          Seller
Obligations. Neither REIT nor any of its direct or indirect owners or Subsidiaries shall be obligated to assume any liabilities
directly related to the Lansbrook Interests (other than any obligations applicable to the owner of the Lansbrook Interests under
the Charter Documents of BR Lansbrook JV Member from and after the Closing Date), and at Closing all of such Lansbrook Interests
will be free from third-party loans and security interests, including without limitation any lien arising under the KeyBank Line
of Credit, but will remain subject to the Loans and all liens and security interests associated therewith.

 

(b)          Survival.
The provisions of this Section 5.5 shall survive Closing indefinitely and shall not be subject to the limitations set forth
in Section 6.8 or Article 8.

 

ARTICLE 6. REPRESENTATIONS AND WARRANTIES

 

6.1 Sellers’
Representations and Warranties as to each Seller. As a material inducement to REIT to execute this Agreement and consummate
the Closing, each Seller represents and warrants to REIT with respect to itself, and only itself except as otherwise noted, that:

 

(a)          Seller
has been duly formed or organized as a limited liability company, is validly existing and is in good standing in the State of Delaware,
and is authorized to exercise all its limited liability company powers, rights and privileges.

 

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(b)          Seller
has the power and authority, under its Charter Documents, to own and operate its assets, to carry on its business as now conducted,
and to enter into and perform its obligations under this Agreement.

 

(c)          All
manager, member, or other action on the part of Seller necessary for Seller’s authorization, execution and delivery of this
Agreement, and the performance of all obligations of Seller hereunder and the completion of the Closing pursuant hereto, has been
taken or will be taken prior to the Closing. This Agreement constitutes a legally binding and valid obligation of Seller, enforceable
against Seller in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity, including
principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding
at law or in equity).

 

(d)          The
execution and delivery of this Agreement by Seller and the performance by Seller and the Companies of their respective obligations
pursuant hereto will not result in any material violation of, be in conflict with, or constitute a material default under, with
or without the passage of time or the giving of notice: (x) any provision of Seller’s or the Companies’ Charter Documents
as such documents exist immediately prior to the Closing; (y) any provision of any judgment, decree or order to which Seller or
any of the Companies is a party or by which any of them or their respective property or assets are bound; or (z) any statute, rule
or governmental regulation applicable to Seller or the Companies, or their respective property or assets.

 

(e)          The
execution and delivery of this Agreement by Seller and the performance by Seller of its obligations pursuant hereto will not result
in any material violation of, be in material conflict with, or constitute a material default under, with or without the passage
of time or the giving of notice, any material contract or agreement to which Seller is a party or by which it is bound, assuming
the satisfaction of the Transaction Conditions.

 

(f)          The
execution, delivery and performance by Seller of this Agreement does not require the consent, approval, notice, clearance, waiver,
order or authorization of any Person or Governmental Authority that has not been obtained or given, except as related to
the satisfaction of the Transaction Conditions (or in the case of General Electric Capital Corporation, will be obtained prior
to Closing or the need for such consent of General Electric Capital Corporation will be rendered moot as of Closing).

 

(g)          There
is no action, suit, proceeding or investigation pending or, to the knowledge of Seller, threatened in writing against Seller that
challenges the validity of this Agreement or the right of Seller to enter into this Agreement, or that might result, either individually
or in the aggregate, in Seller’s inability to perform its obligations under this Agreement. There is no material judgment,
decree or order of any court, arbitrator, tribunal or governmental or similar authority in effect against Seller or any of the
Companies, and neither Seller nor any of the Companies is in material default with respect to any order or any court, arbitrator,
tribunal or governmental or similar authority binding upon Seller or any of the Companies or by which any of them or their respective
property or assets are bound, that would prevent Seller from performing its obligations under this Agreement.

 

(h)          Seller
is not acting on behalf of (i) an “employee benefit plan” within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), (ii) a “plan” within the meaning of Section 4975
of the Internal Revenue Code of 1986, as amended or (iii) an entity deemed to hold “plan assets” within the meaning
of 29 C.F.R. §2510.3-101 of any such employee benefit plan or plans.

 

(i)          Seller
is not acting, directly or to its knowledge indirectly for, or on behalf of, any person, group, entity or nation named by any Executive
Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism) or the United States Treasury Department as a terrorist, “Specially Designated
National and Blocked Person,” or other banned or blocked person, entity, or nation pursuant to any Law that is enforced or
administered by the U.S. Office of Foreign Assets Control, and is not engaging in the transactions described herein, directly or
to its knowledge indirectly, on behalf of, or instigating or facilitating the transactions described herein, directly or to its
knowledge indirectly, on behalf of, any such person, group, entity or nation.

 

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(j)          Seller
is not insolvent and will not become insolvent by executing or performing its obligations under this Agreement or the documents
to be executed in connection herewith.

 

6.2 SOIF II’s
Representations and Warranties as to SOIF II Lansbrook Interest and the Companies. As a material inducement to REIT to
execute this Agreement and consummate the Closing, SOIF II represents and warrants to REIT with respect to the SOIF II Lansbrook
Interest and the Companies that:

 

(a)          Each
of the Companies is duly formed as a limited liability company, is validly existing and is in good standing under the laws of the
State of Delaware and is authorized to exercise all of its limited liability company powers, rights and privileges.

 

(b)          Lansbrook
Titleholder is qualified to do business in and is in good standing in the state where the Property is located.

 

(c)          SOIF
II is the owner and holder of 40% of the limited liability company interests in BR Lansbrook JV Member. BR Lansbrook JV Member
is the owner and holder of a 90% limited liability company interest in Lansbrook JV, which is the sole member of Lansbrook Titleholder,
which is the fee simple owner and holder of the Lansbrook Property. Each of BR Lansbrook JV Member, Lansbrook JV, Lansbrook Titleholder
and the Lansbrook Property are free and clear of any lien or security interest, subject only to restrictions on transfer imposed
under applicable U.S. federal and state securities Laws, the Charter Documents of the Companies and the Loan Documents; and each
of the Companies has not conveyed, transferred, assigned, pledged or hypothecated any interests in Lansbrook Property, in whole
or in part, or granted any rights, options or rights of first refusal or first offer to purchase any of such interests or any portion
thereof (except for any such existing rights granted under the BR Lansbrook JV Member Operating Agreement or the operating agreement
of Lansbrook JV and for the rights of the REIT under this Agreement with respect to the SOIF II Lansbrook Interest). The SOIF II
Lansbrook Interest has been duly and validly issued and, except as contemplated by this Agreement or the Charter Documents of the
Companies, there exists no agreement, arrangement or obligation (actual or contingent) to issue, transfer, redeem, repay or repurchase
any of the SOIF II Lansbrook Interest or any portion thereof.

 

(d)          Other
than as provided in the Charter Documents of BR Lansbrook JV Member, Lansbrook JV and Lansbrook Titleholder, there are no options,
warrants, stock appreciation rights, calls, pre-emptive rights, subscriptions, contribution rights, convertible securities, or
other rights or other agreements or commitments of any character whatsoever which are an obligation of SOIF II or any of the Companies
to issue, transfer or sell any securities exercisable for, or otherwise evidencing a right to acquire, any interests of any kind
in any of the Companies (except the rights of REIT under this Agreement).

 

(e)          The
organizational chart attached to this Agreement as Exhibit B is correct and correctly shows the percentage of ownership
interest of each holder of limited liability company interests in BR Lansbrook JV Member, Lansbrook JV and Lansbrook Titleholder
immediately prior to the Closing hereunder.

 

(f)          SOIF
II has delivered or made available to REIT complete and correct copies, as amended to date, of the Charter Documents of each of
the Companies and Tax information filings and returns of such entities, including all amendments thereto since the initial formation
of such entities.

 

(g)          None
of the Companies owns assets or property, or any interests therein (whether direct or indirect), except the Property and interests
in the other Companies as shown on the Org Chart, or engages or will engage in any business or activity other than in connection
with its ownership of the Property and interests in the other Companies.

 

(h)          The
books and records of the Companies required to be kept by Law are current and have been maintained in all material respects in
accordance with all applicable Laws on a proper and consistent basis and contain complete and accurate records, in all material
respects, of all matters required by applicable Laws to be dealt with in such books and records and all such books and records
are in the possession and control of SOIF II, BR Lansbrook JV Member, Lansbrook JV or Lansbrook Titleholder.

 

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(i)          The
financial statements of the Companies (collectively the “Financial Statements”) provided to REIT in the Due
Diligence Materials are complete and correct in all material respects, have been prepared in accordance with generally accepted
accounting principles, consistently applied, present fairly in all material respects the financial position and results of operations
of the applicable Companies, at the dates and for the periods to which they relate and show all material liabilities, absolute
or contingent, of the Companies; provided, however, that any Financial Statements for periods other than the fiscal
year end of the Companies are subject to modification resulting from the absence of footnotes thereto and ordinary course fiscal
year-end audit adjustments. Except as set forth in the Financial Statements, the Companies have no liabilities, debts, or other
obligations, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business of the Lansbrook Titleholder
subsequent to the respective dates of the Financial Statements, (ii) obligations under contracts and commitments incurred in the
ordinary course of business of the Lansbrook Titleholder and not required under generally accepted accounting principles to be
reflected in the Financial Statements, which, individually and in the aggregate, are immaterial in amount, (iii) obligations under
Leases and Service Contracts incurred in the ordinary course of business, not including any breach of such Leases or Service Contracts,
and (iv) liabilities identified and prorated pursuant to Section 5.1.

 

(j)          The
Companies have not had any employees and will not have any employees from the date hereof through the Closing Date.

 

(k)          There
is no claim, litigation, arbitration or other proceeding pending or, to the knowledge of SOIF II, threatened, in writing, against
the Companies, except as set forth on the Disclosure Schedule.

 

(l)          All
books, files and records delivered by or on behalf of SOIF II to REIT, or made available by SOIF II to REIT for review, are the
complete and unaltered copies, in all material respects, of such books, files and records in SOIF II’s possession or control.
All books, files and records related to the Companies in SOIF II’s possession or control have been, or will be during the
Due Diligence Period, delivered or made available to REIT for review.

 

(m)         With
respect to the following Tax matters, to SOIF II’s knowledge: All Tax or information filings and returns required to be filed
by each of the Companies have been properly prepared and duly filed, and, except with respect to appeals of the Property’s
real estate Tax assessments or any other Tax assessments that are being contested in good faith in the ordinary course of business,
all Taxes required to be paid by any of the Companies have been paid in full. There are no (A) pending audits, actions, proceedings
or examinations of any of the Companies or of any of the Tax or information returns of the Companies, as applicable, being conducted
by any federal, state, local, or foreign taxing authority, (B) pending or threatened claims or disputes relating to any Taxes allegedly
owed by any of the Companies or (C) outstanding agreements or waivers extending the statutory limitations period applicable to
the payment of any Taxes by or on behalf of any of the Companies with respect to any filed returns. The Due Diligence Materials
contain true, correct and complete copies, in all material respects, of all Tax returns of the Companies since the formation of
each, including copies of all Schedules K-1 issued or received by any limited liability company. Each
of the Companies is treated for U.S. federal income tax purposes as either (i) an entity disregarded from its sole owner or (ii)
a partnership and not as an association or publicly traded partnership taxable as a corporation.

 

6.3 SOIF II’s
Representations and Warranties as to the Property. As a material inducement to REIT to execute this Agreement and consummate
the Closing, SOIF II represents and warrants to REIT with respect to the Lansbrook Property that:

 

(a)          The
most current Rent Roll for the Lansbrook Property delivered to REIT as part of the Property Information is the Rent Roll relied
upon by SOIF II in the ordinary course of business.

 

(b)          To
SOIF II’s knowledge, Lansbrook Titleholder has complied in all material respects with its obligations under each of the Leases
in effect with respect to its Property.

 

(c)          The
list of Service Contracts included in the Due Diligence Materials is true and correct in all material respects as of the date of
its preparation. Other than the Service Contracts delivered to REIT as part of the Property Information, there are, to SOIF II’s
knowledge, no other property or asset management contracts or other arrangements, contracts and agreements to which any of the
Companies is a party affecting the ownership, repair, maintenance, leasing or operation of the Property, and the copies of such
documents delivered to REIT are true and correct in all material respects. To SOIF II’s knowledge, neither Lansbrook Titleholder
nor any other party to any of the Service Contracts is in default thereunder beyond any applicable notice or cure period.

 

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(d)          There
are no pending or, to SOIF II’s knowledge, threatened in writing (a) eminent domain proceedings for the condemnation of any
portion of the Property or (b) litigation against Lansbrook Titleholder or any of the Companies in respect of the Property which,
if decided adversely to Lansbrook Titleholder or any of the Companies, would have a Material Adverse Effect.

 

(e)          Except
as set forth on a Disclosure Schedule: (a) all material licenses or permits necessary to operate the Property in material compliance
with applicable Laws and otherwise as presently operated have been obtained and are in full force and effect and (b) to SOIF II’s
knowledge, Lansbrook Titleholder is in compliance in all material respects with each such license and permit.

 

(f)          Except
as set forth on a Disclosure Schedule, Lansbrook Titleholder has received no written notice from any Governmental Authority or
agency having jurisdiction over the Property that the Property or its use is in material violation of any Law that would have a
Material Adverse Effect.

 

(g)          To
SOIF II’s knowledge, and except as may be disclosed on a Disclosure Schedule or in the environmental reports made available
to REIT as a part of the Property Information, no Hazardous Materials have, during the period of Lansbrook Titleholder’s
ownership of the Property, existed or currently exist in, on or under, or have been or are being disposed of or released from,
the Property in quantities that exceed reportable concentrations under current applicable Environmental Laws; and, to SOIF II’s
knowledge, no well or wells, underground storage tank or tanks (whether existing or abandoned) exist or have, during the period
of Lansbrook Titleholder’s ownership of the Property, existed on or under the Property.

 

(h)       Copies of the
Property Information and all documents containing information material to the ownership or operation of the Property have been
delivered to REIT and are true, correct and complete copies; and SOIF II is not aware of any material inaccuracy or omission
in such information.

 

(i)          The
Loan Documents delivered to REIT as part of the Property Information include true, accurate and complete copies of all of the material
documents and instruments in effect with respect to the Loans, including all amendments, modifications and supplements thereto.
To SOIF II’s knowledge, no material default or breach exists under any Loan Document beyond any applicable cure period, nor
does there exist any material default or breach, or any material event or circumstance, which, with the giving of notice or passage
of time, or both, would constitute a material default or breach by Lansbrook Titleholder or any other party under any of the Loan
Documents.

 

(j)          Lansbrook
Titleholder is the owner of its Personal Property free and clear of all Encumbrances other than the Permitted Exceptions, and has
not previously assigned its rights in and to its Personal Property except for security interests granted as security for the Loans.
Except as set forth in the Property Information, Lansbrook Titleholder does not lease any equipment or other personal property
in connection with the ownership or operation of the Property.

 

(k)          To
SOIF II’s knowledge, all vacant rental units at the Property are substantially in rent ready condition, except for units
vacant for routine cleaning or maintenance as is customarily performed by Lansbrook Titleholder in the ordinary course of business
consistent with current practices.

 

(l)           Except
as set forth in a Disclosure Schedule, SOIF II has not received written notice of any uncured violation of any declaration of covenants,
conditions and restrictions, reciprocal easement agreements or similar instrument governing or affecting the use, operation, maintenance,
management or improvement of all of any portion of the Property (collectively “CCRs”), and to SOIF II’s
knowledge Lansbrook Titleholder is not in material default under, and the Property is in compliance in all material respects with,
all applicable CCRs. Without limiting the foregoing, to SOIF II’s knowledge, Lansbrook Titleholder is not in default with
respect to payment of any material contributions or assessments payable by Lansbrook Titleholder under any CCRs.

 

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6.4 SOIF III’s
Representations and Warranties as to SOIF III Lansbrook Interest and the Companies. As a material inducement to REIT to
execute this Agreement and consummate the Closing, SOIF III represents and warrants to REIT with respect to the SOIF III Lansbrook
Interest and the Companies that:

 

(a)          Each
of the Companies is duly formed as a limited liability company, is validly existing and is in good standing under the laws of the
State of Delaware and is authorized to exercise all of its limited liability company powers, rights and privileges.

 

(b)          Lansbrook
Titleholder is qualified to do business in and is in good standing in the state where the Property is located.

 

(c)          SOIF
III is the owner and holder of 60% of the limited liability company interests in BR Lansbrook JV Member. BR Lansbrook JV Member
is the owner and holder of a 90% limited liability company interest in Lansbrook JV, which is the sole member of Lansbrook Titleholder,
which is the fee simple owner and holder of the Lansbrook Property. Each of BR Lansbrook JV Member, Lansbrook JV, Lansbrook Titleholder
and the Lansbrook Property are free and clear of any lien or security interest, subject only to restrictions on transfer imposed
under applicable U.S. federal and state securities Laws, the Charter Documents of the Companies and the Loan Documents; and each
of the Companies has not conveyed, transferred, assigned, pledged or hypothecated any interests in Lansbrook Property, in whole
or in part, or granted any rights, options or rights of first refusal or first offer to purchase any of such interests or any portion
thereof (except for any such existing rights granted under the BR Lansbrook JV Member Operating Agreement or the operating
agreement of Lansbrook JV and for the rights of the REIT under this Agreement with respect to the SOIF III Lansbrook Interest).
The SOIF III Lansbrook Interest has been duly and validly issued and, except as contemplated by this Agreement or the Charter Documents
of the Companies, there exists no agreement, arrangement or obligation (actual or contingent) to issue, transfer, redeem, repay
or repurchase any of the SOIF III Lansbrook Interest or any portion thereof.

 

(d)          Other
than as provided in the Charter Documents of BR Lansbrook JV Member, Lansbrook JV and Lansbrook Titleholder, there are no options,
warrants, stock appreciation rights, calls, pre-emptive rights, subscriptions, contribution rights, convertible securities, or
other rights or other agreements or commitments of any character whatsoever which are an obligation of SOIF III or any of the Companies
to issue, transfer or sell any securities exercisable for, or otherwise evidencing a right to acquire, any interests of any kind
in any of the Companies (except the rights of REIT under this Agreement).

 

(e)          The
organizational chart attached to this Agreement as Exhibit B is correct and correctly shows the percentage of ownership
interest of each holder of limited liability company interests in BR Lansbrook JV Member, Lansbrook JV and Lansbrook Titleholder
immediately prior to the Closing hereunder.

 

(f)          SOIF
III has delivered or made available to REIT complete and correct copies, as amended to date, of the Charter Documents of each of
the Companies and Tax information filings and returns of such entities, including all amendments thereto since the initial formation
of such entities.

 

(g)          None
of the Companies owns assets or property, or any interests therein (whether direct or indirect), except the Property and interests
in the other Companies as shown on the Org Chart, or engages or will engage in any business or activity other than in connection
with its ownership of the Property and interests in the other Companies.

 

(h)          The
books and records of the Companies required to be kept by Law are current and have been maintained in all material respects in
accordance with all applicable Laws on a proper and consistent basis and contain complete and accurate records, in all material
respects, of all matters required by applicable Laws to be dealt with in such books and records and all such books and records
are in the possession and control of SOIF III, BR Lansbrook JV Member, Lansbrook JV or Lansbrook Titleholder.

 

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(i)          The
Financial Statements provided to REIT in the Due Diligence Materials are complete and correct in all material respects, have been
prepared in accordance with generally accepted accounting principles, consistently applied, present fairly in all material respects
the financial position and results of operations of the applicable Companies, at the dates and for the periods to which they relate
and show all material liabilities, absolute or contingent, of the Companies; provided, however, that any Financial
Statements for periods other than the fiscal year end of the Companies are subject to modification resulting from the absence of
footnotes thereto and ordinary course fiscal year-end audit adjustments. Except as set forth in the Financial Statements, the Companies
have no liabilities, debts, or other obligations, contingent or otherwise, other than (i) liabilities incurred in the ordinary
course of business of the Lansbrook Titleholder subsequent to the respective dates of the Financial Statements, (ii) obligations
under contracts and commitments incurred in the ordinary course of business of the Lansbrook Titleholder and not required under
generally accepted accounting principles to be reflected in the Financial Statements, which, individually and in the aggregate,
are immaterial in amount, (iii) obligations under Leases and Service Contracts incurred in the ordinary course of business,
not including any breach of such Leases or Service Contracts, and (iv) liabilities identified and prorated pursuant to Section 5.1.

 

(j)          The
Companies have not had any employees and will not have any employees from the date hereof through the Closing Date.

 

(k)          There
is no claim, litigation, arbitration or other proceeding pending or, to the knowledge of SOIF III, threatened, in writing, against
the Companies, except as set forth on the Disclosure Schedule.

 

(l)          All
books, files and records delivered by or on behalf of SOIF III to REIT, or made available by SOIF III to REIT for review,
are the complete and unaltered copies, in all material respects, of such books, files and records in SOIF III’s possession
or control. All books, files and records related to the Companies in SOIF III’s possession or control have been, or
will be during the Due Diligence Period, delivered or made available to REIT for review.

 

(m)         With
respect to the following Tax matters, to SOIF III’s knowledge: All Tax or information filings and returns required to be
filed by each of the Companies have been properly prepared and duly filed, and, except with respect to appeals of the Property’s
real estate Tax assessments or any other Tax assessments that are being contested in good faith in the ordinary course of business,
all Taxes required to be paid by any of the Companies have been paid in full. There are no (A) pending audits, actions, proceedings
or examinations of any of the Companies or of any of the Tax or information returns of the Companies, as applicable, being conducted
by any federal, state, local, or foreign taxing authority, (B) pending or threatened claims or disputes relating to any Taxes allegedly
owed by any of the Companies or (C) outstanding agreements or waivers extending the statutory limitations period applicable to
the payment of any Taxes by or on behalf of any of the Companies with respect to any filed returns. The Due Diligence Materials
contain true, correct and complete copies, in all material respects, of all Tax returns of the Companies since the formation of
each, including copies of all Schedules K-1 issued or received by any limited liability company.

 

6.5 SOIF III’s
Representations and Warranties as to the Property. As a material inducement to REIT to execute this Agreement and consummate
the Closing, SOIF III represents and warrants to REIT with respect to the Lansbrook Property that:

 

(a)          The
most current Rent Roll for the Lansbrook Property delivered to REIT as part of the Property Information is the Rent Roll relied
upon by SOIF III in the ordinary course of business.

 

(b)          To
SOIF III’s knowledge, Lansbrook Titleholder has complied in all material respects with its obligations under each of the
Leases in effect with respect to its Property.

 

(c)          The
list of Service Contracts included in the Due Diligence Materials is true and correct in all material respects as of the date of
its preparation. Other than the Service Contracts delivered to REIT as part of the Property Information, there are, to SOIF III’s
knowledge, no other property or asset management contracts or other arrangements, contracts and agreements to which any of the
Companies is a party affecting the ownership, repair, maintenance, leasing or operation of the Property, and the copies of such
documents delivered to REIT are true and correct in all material respects. To SOIF III’s knowledge, neither Lansbrook Titleholder
nor any other party to any of the Service Contracts is in default thereunder beyond any applicable notice or cure period.

 

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(d)          There
are no pending or, to SOIF III’s knowledge, threatened in writing (a) eminent domain proceedings for the condemnation of
any portion of the Land or (b) litigation against Lansbrook Titleholder or any of the Companies in respect of the Property which,
if decided adversely to Lansbrook Titleholder or any of the Companies, would have a Material Adverse Effect.

 

(e)          Except
as set forth on a Disclosure Schedule: (a) all material licenses or permits necessary to operate the Property in material compliance
with applicable Laws and otherwise as presently operated have been obtained and are in full force and effect, and (b) to SOIF III’s
knowledge, Lansbrook Titleholder is in compliance in all material respects with each such license and permit.

 

(f)          Except
as set forth on a Disclosure Schedule, Lansbrook Titleholder has received no written notice from any Governmental Authority or
agency having jurisdiction over the Property that the Property or its use is in material violation of any Law that would have a
Material Adverse Effect.

 

(g)          To
SOIF III’s knowledge, and except as may be disclosed on a Disclosure Schedule or in the environmental reports made available
to REIT as a part of the Property Information, no Hazardous Materials have, during the period of Lansbrook Titleholder’s
ownership of the Property, existed or currently exist in, on or under, or have been or are being disposed of or released from,
the Property in quantities that exceed reportable concentrations under current applicable Environmental Laws; and, to SOIF III’s
knowledge, no well or wells, underground storage tank or tanks (whether existing or abandoned) exist or have, during the period
of Lansbrook Titleholder’s ownership of the Property, existed on or under the Property.

 

(h)          
Copies of the Property Information and all documents containing information material to the ownership or operation of the Property
have been delivered to REIT and are true, correct and complete copies; and SOIF III is not aware of any material inaccuracy or
omission in such information.

 

(i)          The
Loan Documents delivered to REIT as part of the Property Information include true, accurate and complete copies of all of the material
documents and instruments in effect with respect to the Loans, including all amendments, modifications and supplements thereto.
To SOIF III’s knowledge, no material default or breach exists under any Loan Document beyond any applicable cure period,
nor does there exist any material default or breach, or any material event or circumstance, which, with the giving of notice or
passage of time, or both, would constitute a material default or breach by Lansbrook Titleholder or any other party under any of
the Loan Documents.

 

(j)          Lansbrook
Titleholder is the owner of its Personal Property free and clear of all Encumbrances other than the Permitted Exceptions, and has
not previously assigned its rights in and to its Personal Property except for security interests granted as security for the Loans.
Except as set forth in the Property Information, Lansbrook Titleholder does not lease any equipment or other personal property
in connection with the ownership or operation of the Property.

 

(k)          To
SOIF III’s knowledge, all vacant rental units at the Property are substantially in rent ready condition, except for units
vacant for routine cleaning or maintenance as is customarily performed by Lansbrook Titleholder in the ordinary course of business
consistent with current practices.

 

(l)          Except
as set forth in a Disclosure Schedule, SOIF III has not received written notice of any uncured violation of any CCRs, and to SOIF
III’s knowledge Lansbrook Titleholder is not in material default under, and the Property is in compliance in all material
respects with, all applicable CCRs. Without limiting the foregoing, to SOIF III’s knowledge, Lansbrook Titleholder is not
in default with respect to payment of any material contributions or assessments payable by Lansbrook Titleholder under any CCRs.

 

6.6 REIT’s
Representations and Warranties. As a material inducement to Sellers to execute this Agreement and consummate the Closing,
REIT represents and warrants to each respective Seller that:

 

(a)          REIT
has been duly formed or organized as a limited partnership, is validly existing and, as of Closing, will be in good standing in
the state of its formation or organization, and is authorized to exercise all of its powers, rights and privileges.

 

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(b)          REIT
has the power and authority, under its Charter Documents, to own and operate its property and assets, to carry on its business
as now conducted, and to enter into and perform its obligations under this Agreement.

 

(c)          All
action on the part of the REIT and its general or limited partners, owners, members, managers, officers, directors and shareholders
necessary for the authorization, execution and delivery of this Agreement, the performance of all obligations of REIT hereunder
and completion of the transactions hereunder, has been taken or will be taken prior to the Closing. This Agreement constitutes
a legally binding and valid obligation of REIT enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to
general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity).

 

(d)          The
execution and delivery of this Agreement by REIT and the performance by REIT of its obligations pursuant hereto will not result
in any material violation of, be in conflict with, or constitute a material default under, with or without the passage of time
or the giving of notice: (x) any provision of REIT’s Charter Documents as such documents exist immediately prior to the Closing;
(y) any provision of any judgment, decree or order to which REIT is a party or by which it or its property or assets are bound;
or (z) any statute, rule or governmental regulation applicable to REIT or its property or assets.

 

(e)          The
execution and delivery of this Agreement by REIT and the performance by REIT of its obligations pursuant hereto will not result
in any material violation of, be in material conflict with, or constitute a material default under, with or without the passage
of time or the giving of notice, any material contract or agreement to which REIT is a party or by which it is bound, assuming
the satisfaction of the Transaction Conditions.

 

(f)          There
is no action, suit, proceeding or investigation pending or, to the knowledge of REIT, threatened in writing against REIT that challenges
the validity of this Agreement or the right of REIT to enter into this Agreement, or that might result, either individually or
in the aggregate, in REIT’s inability to perform its obligations under this Agreement. There is no material judgment, decree
or order of any court, arbitrator, tribunal or governmental or similar authority in effect against REIT, and the REIT is not in
material default with respect to any order of any court, arbitrator, tribunal or governmental or similar authority binding upon
REIT or by which it or its property or assets are bound that would prevent the REIT from performing its obligations under this
Agreement.

 

(g)          REIT
is not acting, directly or indirectly for, or on behalf of, any person, group, entity or nation named by any Executive Order (including
the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit,
or Support Terrorism) or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked
Person,” or other banned or blocked person, entity, or nation pursuant to any Law that is enforced or administered by the
U.S. Office of Foreign Assets Control, and is not engaging in the transactions described herein, directly or indirectly, on behalf
of, or instigating or facilitating the transactions described herein, directly or indirectly, on behalf of, any such person, group,
entity or nation.

 

(h)          REIT
is acquiring the Lansbrook Interests for its own account or those of its subsidiaries and Affiliates, for investment purposes only
and not with a view to the distribution (as such term is used in Section 2(11) of the Securities Act) thereof. REIT understands
that the Lansbrook Interests have not been registered under the Securities Act and cannot be sold unless subsequently registered
under the Securities Act or an exemption from such registration is available.

 

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6.7 Limitations;
Definition of Knowledge.

 

(a)          Except
for the representations and warranties contained in Sections 6.1-6.5 (as modified by any matters noted as exceptions on
any schedules attached hereto (collectively, the “Exception Matters”), Appendices and Schedules hereto), or
any documents delivered to REIT at Closing in connection with this Agreement (collectively, “Sellers’ Reps”),
neither Seller nor any other Person (including, for the avoidance of doubt, any equity holder of Sellers) makes any other express
or implied representation or warranty in respect of any of the Lansbrook Interests, the Companies, the Property or the transactions
contemplated hereby, and Sellers disclaim all other representations or warranties, whether made by any of the Companies or any
of their respective Affiliates, officers, directors, employees, agents or representatives. Except for Sellers’ Reps, Sellers
hereby disclaim all liability and responsibility for any representation, warranty, projection, forecast, statement, or information
made, communicated, or furnished (orally or in writing) to REIT or its Affiliates or REIT’s Representatives (including any
opinion, information, projection or advice that may have been or may be provided to REIT by any director, officer, employee, agent,
consultant or representative of any of the Companies or any of their respective Affiliates). The disclosure of any matter or item
in any schedule hereto shall not be deemed to constitute an acknowledgment that any such matter is required to be disclosed. EXCEPT
FOR AND SUBJECT ONLY TO SELLERS’ REPS, SELLERS MAKE NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS, IMPLIED OR STATUTORY,
RELATING TO THE LANSBROOK INTERESTS, THE COMPANIES, THE PROPERTY OR ANY PORTION THEREOF, OR THE CONDITION OF OR MATERIALS RELATING
TO THE LANSBROOK INTERESTS, THE COMPANIES, THE PROPERTY, IN WHOLE OR IN PART, OR ANY OTHER MATTER, ALL SUCH REPRESENTATIONS AND
WARRANTIES BEING HEREBY EXPRESSLY DISCLAIMED. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, AND EXCEPT AS EXPRESSLY SET FORTH
IN THIS AGREEMENT AND SUBJECT ONLY TO SELLERS’ REPS, REIT IS PURCHASING THE LANSBROOK INTERESTS “AS IS”
AND “WITH ALL FAULTS”. EXCEPT FOR SELLERS’ REPS, SELLERS MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT
TO, AND REIT IS NOT RELYING ON ANY REPRESENTATIONS WITH RESPECT TO: (a) environmental matters relating to the Property or any portion
thereof, including the presence of any Hazardous Materials on the Property; (b) the presence of mold or other microbial agents
in the Property; (c) geological or seismic conditions, including, without limitation, subsidence, subsurface conditions, water
table, underground water reservoirs, and limitations regarding the withdrawal of water therefrom, and faulting; (d) whether or
not and the extent to which the Property or any portion thereof is affected by any stream (surface or underground), body of water,
flood prone area, flood plain, floodway, or special flood hazard; (e) drainage and soil conditions of the Property; (f) the existence
of or availability of any development rights; (g) zoning requirements (including any special use permits) to which the Property
or any portion thereof may be subject or the status of compliance with such requirements; (h) the availability of any utilities
to the Property or any portion thereof including, without limitation, water, sewage, gas and electricity; (i) usages of any adjoining
property; (j) access to the Property or any portion thereof; (k) the value, compliance with specifications, size, location, age,
use, merchantability, quality, description, or condition of the Property or any portion thereof, or suitability of the Property
or any portion thereof for REIT’s purposes, or fitness for any use or purpose whatsoever; (l) the compliance of the Property
with applicable building codes, fire codes, land use or access laws or ordinances including, without limitation, the Americans
with Disabilities Act (and the local equivalent thereof) or any similar Laws, including Environmental Laws; (m) enforceability
of any Lease or Service Contract; (n) whether Sellers will continue to own or operate any property adjacent to or in proximity
to the Property, (o) the square footage or leaseable area of the Improvements and/or the Land, or (p) the credit-worthiness of
any tenant under any of the Leases. The disclaimer expressed in this Section 6.7(a) shall survive Closing.

 

(b)          As
used herein, “SOIF II’s knowledge,” “known to SOIF II” or similar phrases means the actual knowledge
of SOIF II, BR Lansbrook JV Member, Lansbrook JV or Lansbrook Titleholder or the officers of any of such entities who have reason
to know such information, as applicable (by virtue of such officers’ positions with such entities).

 

(c)          As
used herein, “SOIF III’s knowledge”, “known to SOIF III” or similar phrases means the actual knowledge
of SOIF III, BR Lansbrook JV Member, Lansbrook JV or Lansbrook Titleholder or the officers of any of such entities who have reason
to know such information, as applicable (by virtue of such officers’ positions with such entities).

 

(d)          As
used herein, “REIT’s knowledge”, “known to REIT” or similar phrases means the actual knowledge of
the REIT, REIT Parent, Manager, BRG Lansbrook or the officers of any of such entities who have reason to know such information,
as applicable (by virtue of such officers’ positions with such entities).

 

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6.8 Survival
of Representations and Warranties. The representations and warranties set forth in this Article 6 are made as of
the Effective Date and each of Sellers and REIT shall be deemed to have remade all of their respective representations and warranties
as of the Closing Date. Such representations and warranties shall not be deemed to be merged into or waived by the instruments
of Closing, but shall survive the Closing for a period of 12 months (the “Limitation Period”); provided
that (a) the representations set forth in Section 6.1(a), (b), (c) and (d), Section 6.2(a), (b), (c), (d) and (e),
Section 6.4(a), (b), (c), (d) and (e) and Section 6.6(a), (b), (c) and (d) (the “Title and Authority Warranties”)
shall survive the Closing indefinitely and (b) the representations set forth in Section 6.2(m) and Section 6.4(m)
(the “Tax Warranties”) shall survive the Closing for a period ending sixty (60) days after the expiration of
the applicable statute of limitations (including extensions thereof). Each Seller and REIT shall have the right to bring
an action for breach of such representations and warranties if they give the other Parties written notice of the circumstances
giving rise to the alleged breach within the survival period specified therefore in this Section 6.8.

 

ARTICLE 7. DEFAULT AND REMEDIES

 

7.1 Seller’s
Default. If the Closing fails to occur due to the default of a Seller, REIT shall be entitled to recover from the applicable
defaulting Seller any out-of-pocket expenses reasonably incurred by REIT specifically incurred in connection with this Agreement.

 

7.2 REIT’s
Default. If, after the expiration of the Due Diligence Period, the Closing fails to occur due to the default of the REIT,
the Sellers shall be entitled to recover from the REIT or BRG Lansbrook any out-of-pocket expenses reasonably incurred by said
Sellers specifically incurred in connection with this Agreement.

 

ARTICLE 8. INDEMNIFICATION AND LIMITATION
ON LIABILITY

 

8.1 Indemnification
of REIT by SOIF II. SOIF II shall indemnify, defend and hold REIT, REIT Parent, their successors, assigns and Affiliates,
including but not limited to BRG Lansbrook (each a “REIT Indemnified Party,” and collectively, the “REIT
Indemnified Parties”) harmless from any liability, claim, demand, loss, expense or damage that is: (a) suffered by, or
asserted by any third party against, a REIT Indemnified Party arising from any act or omission of SOIF II, its agents, employees
or contractors or otherwise arising out of the ownership or operation of the SOIF II Lansbrook Interest first arising or occurring
prior to the Closing; (b) arising out of the breach or inaccuracy of any of SOIF II’s representations and warranties set
forth herein; or (c) except as provided in Article 7, arising out of any failure by SOIF II to perform any covenant or obligation
set out in this Agreement.

 

8.2 Limitation
on SOIF II’s Liability. Notwithstanding any other provision of this Article 8 to the contrary, (a) SOIF II
shall not have any indemnification obligations for claims under Section 8.1 unless and until the aggregate amount of such
claims exceeds the lesser of $50,000 or one percent (1%) of the Consideration paid to SOIF II hereunder (provided that, once
the amount of such claims exceeds such threshold, SOIF II shall pay damages from the first dollar of damages) and (b) in no event
shall SOIF II’s aggregate liability for claims under Section 8.1 of this Agreement exceed ten percent (10%) of the
Consideration paid to SOIF II hereunder; provided, however, that the limitations on liability set forth in this Section
8.2 shall not apply to any loss or liability arising from any breach of any of SOIF II’s Title and Authority Warranties,
SOIF II’s intentional misconduct or fraudulent conduct or to SOIF II’s obligations with respect to sales commissions
and brokerage fees under Section 5.2, which liability and obligations shall not be credited against the foregoing cap. Except
as provided in Article 7, the provisions of this Article 8 shall be the sole and exclusive remedy of REIT with respect
to matters which are subject to indemnification by SOIF II under Section 8.1 of this Agreement, all other remedies with
respect to such matters being hereby waived.

 

8.3 Indemnification
of REIT by SOIF III. SOIF III shall indemnify, defend and hold the REIT Indemnified Parties harmless from any liability,
claim, demand, loss, expense or damage that is: (a) suffered by, or asserted by any third party against, any REIT Indemnified Party
arising from any act or omission of SOIF III, its agents, employees or contractors or otherwise arising out of the ownership or
operation of the SOIF III Lansbrook Interest first arising or occurring prior to the Closing; (b) arising out of the breach or
inaccuracy of any of SOIF III’s representations and warranties set forth herein; or (c) except as provided in Article
7, arising out of any failure by SOIF III to perform any covenant or obligation set out in this Agreement.

 

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8.4 Limitation
on SOIF III’s Liability. Notwithstanding any other provision of this Article 8 to the contrary, (a) SOIF III
shall not have any indemnification obligations for claims under Section 8.3 unless and until the aggregate amount of such
claims exceeds the lesser of $50,000 or one percent (1%) of the Consideration paid to SOIF III hereunder (provided that, once
the amount of such claims exceeds such threshold, SOIF III shall pay damages from the first dollar of damages) and (b) in no event
shall SOIF III’s aggregate liability for claims under Section 8.3 of this Agreement exceed ten percent (10%)
of the Consideration paid to SOIF III hereunder; provided, however, that the limitations on liability set forth in
this Section 8.4 shall not apply to any loss or liability arising from any breach of any of SOIF III’s Title and Authority
Warranties, SOIF III’s intentional misconduct or fraudulent conduct or to SOIF III’s obligations with respect to sales
commissions and brokerage fees under Section 5.2, which liability and obligations shall not be credited against the foregoing
cap. Except as provided in Article 7, the provisions of this Article 8 shall be the sole and exclusive remedy of
REIT with respect to matters which are subject to indemnification by SOIF III under Section 8.3 of this Agreement, all other
remedies with respect to such matters being hereby waived.

 

8.5 Pledge Agreement.

 

(a)          On
or before the Closing Date, the SOIF Parties shall each execute and deliver a pledge agreement, substantially in the form attached
hereto as Exhibit C, pursuant to which each SOIF Party’s indemnity obligations contained in Section 8.1 and
Section 8.3 hereof shall be secured by a pledge of the cash equal to 10% of the consideration paid to each such SOIF Party
hereunder, and which pledge will be in full satisfaction of any indemnification obligations of each respective SOIF Party contained
in Section 8.1 and Section 8.3 hereof (each, a “Pledge Agreement,” and collectively, the “Pledge
Agreements”).

 

(b)          Each
of the REIT Indemnified Parties by accepting the benefits of this Agreement hereby designates and appoints REIT as its agent under
the Pledge Agreement, and hereby irrevocably authorizes REIT to take such action or to refrain from taking such action on its behalf
under the provisions of the Pledge Agreement and to exercise such powers as are set forth therein, together with such other powers
as are reasonably incidental thereto. REIT is authorized and empowered to amend, modify or waive any provisions of the Pledge Agreement
on behalf of the REIT Indemnified Parties. REIT agrees to act as such on the express conditions contained in this Section 8.5.
The provisions of this Section 8.5 are solely for the benefit of REIT and the REIT Indemnified Parties, and the SOIF Parties
shall have no obligations under or rights as a third party beneficiary of any of the provisions hereof. In performing its functions
and duties under the Pledge Agreement, REIT shall act solely as an administrative representative of the REIT Indemnified Parties
and does not assume and shall not be deemed to have assumed any obligation toward or relationship of agency or trust with or for
the REIT Indemnified Parties, by or through its agents or employees.

 

(c)          REIT
shall have no duties, obligations or responsibilities to the REIT Indemnified Parties except those expressly set forth in this
Section 8.5 or in the Pledge Agreements. Neither REIT nor any of its officers, directors, employees or agents shall be liable
to any REIT Indemnified Party for any action taken or omitted by them under this Section 8.5 or under the Pledge Agreements,
or in connection with this Section 8.5 or the Pledge Agreements, except that REIT shall be obligated on the terms set forth
in this Section 8.5 for performance of its express obligations under the Pledge Agreements. In performing its functions
and duties under the Pledge Agreements, REIT shall exercise the same care which it would exercise in dealing with a security interest
in collateral held for its own account, but REIT shall not be responsible to any REIT Indemnified Party for any recitals, statements,
representations or warranties in the Pledge Agreements or for the execution, effectiveness, genuineness, validity, enforceability
or sufficiency of the Pledge Agreements or the collateral or the transactions contemplated thereby. REIT shall not be required
to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of the Pledge
Agreements.

 

(d)          REIT
shall be entitled to rely upon any written notices, statements, certificates, orders or other documents or any telephone message
or other communication (including any writing, telex, telecopy or telegram) believed by it in good faith to be genuine and correct
and to have been signed, sent or made by the proper person, and with respect to all matters pertaining to this Section 8.5
and the Pledge Agreements and its duties under this Section 8.5 or the Pledge Agreements, upon advice of counsel selected
by it. REIT shall be entitled to rely upon the advice of legal counsel, independent accountants, and other experts selected by
REIT in its sole discretion.

 

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8.6 Indemnification
of the SOIF Parties by REIT. REIT and BRG Lansbrook shall jointly and severally indemnify, defend and hold the SOIF Parties,
their successors, assigns and Affiliates (each a “SOIF Indemnified Party,” and collectively, the “SOIF
Indemnified Parties”) harmless from any liability, claim, demand, loss, expense or damage that is: (a) suffered by, or
asserted by any third party against, a SOIF Indemnified Party arising from any act or omission of the REIT, its assigns (including,
but not limited to, BRG Lansbrook), its agents, employees or contractors or REIT Parent or otherwise arising out of the ownership
or operation of the Lansbrook Interests first arising from and after the Closing; (b) arising out of the breach or inaccuracy
of any of the REIT’s representations and warranties set forth herein; or (c) except as provided in Article 7,
arising out of any failure by REIT to perform any covenant or obligation set out in this Agreement.

 

8.7 Limitation
on REIT’s Liability. Notwithstanding any other provision of this Article 8 to the contrary, (a) neither
REIT nor BRG Lansbrook shall have any indemnification obligations for claims under Section 8.6 unless and until the aggregate
amount of such claims exceeds the lesser of $50,000 or one percent (1%) of the Consideration (provided that, once the amount of
such claims exceeds such threshold, REIT shall pay damages from the first dollar of damages), and (b) in no event shall the
collective aggregate liability for claims under Section 8.6 of this Agreement exceed ten percent (10%) of the Consideration;
provided, however, that the limitations on liability set forth in this Section 8.7 shall not apply to any
loss or liability arising from any breach of any of REIT’s Title and Authority Warranties, REIT’s intentional misconduct
or fraudulent conduct or to REIT’s obligations with respect to sales commissions and brokerage fees under Section 5.2,
which liability and obligations shall not be credited against the foregoing cap. Except as provided in Article 7, the
provisions of this Article 8 shall be the sole and exclusive remedy of the SOIF Parties with respect to matters which
are subject to indemnification by REIT and BRG Lansbrook under Section 8.6 of this Agreement, all other remedies with respect
to such matters being hereby waived.

 

8.8 REIT
Parent Guaranty Joinder. The SOIF Parties have advised the REIT and REIT Parent that, in connection with the transaction
identified herein, the Loan Documents governing Lansbrook Titleholder’s Loan shall require that REIT Parent deliver to Lender
an instrument (“Joinder”) pursuant to which REIT Parent shall guaranty payment and performance of the Loan.
Delivery by REIT Parent to Lender of the executed Joinder at Closing shall be a condition precedent to the SOIF Parties’
obligations hereunder.

 

8.9 Survival.
The provisions of this Article 8 shall survive the Closing; provided that claims under clause (a) or (b) of Section 8.1,
clause (a) or (b) of Section 8.3 or clause (a) or (b) of Section 8.6, shall be subject to the time limitations set
forth in Section 6.8. For the avoidance of doubt, the Parties acknowledge that, notwithstanding that claims under clause
(a) of Section 8.1, clause (a) of Section 8.3 or clause (a) of Section 8.6 may not arise out of a breach or
inaccuracy of the indemnifying party’s representations or warranties, such claims are nonetheless subject to the Limitation
Period. Any claim for indemnification under Section 8.1(a) or (b), Section 8.3(a) or (b) or Section 8.6(a)
or (b) not made on or prior to the expiration of the Limitation Period set forth in Section 6.8 shall be irrevocably
and unconditionally waived and released.

 

ARTICLE 9. MISCELLANEOUS

 

9.1 Parties Bound.
No Party may assign this Agreement without the prior written consent of the other Parties, and any such prohibited assignment shall
be void; provided that the REIT may assign all of its rights and duties to an affiliated company, including but not limited to
BRG Lansbrook, without the written consent of the Sellers. This Agreement shall be binding upon and inure to the benefit of the
respective legal representatives, successors, permitted assigns, heirs, and devises of the Parties.

 

9.2 Headings;
Entirety; Amendments. The article and paragraph headings of this Agreement are for convenience only and in
no way limit or enlarge the scope or meaning of the language hereof. All exhibits, schedules and appendices attached to this Agreement
are incorporated herein as if fully set forth in this Agreement and shall be deemed to be a part of this Agreement. This Agreement
embodies the entire agreement between the Parties and supersedes all prior agreements and understandings between the Parties relating
to the Lansbrook Interests, the Companies or the Property (other than the Charter Documents of the Companies). This Agreement may
be amended or supplemented (except as noted in the preceding sentence) only by an instrument in writing executed by the Party against
whom enforcement is sought.

 

    	24

    	 

    

 

9.3 Invalidity
and Waiver. If any portion of this Agreement is held invalid or inoperative, then so far as is reasonable and possible
the remainder of this Agreement shall be deemed valid and operative, and, to the greatest extent legally possible, effect shall
be given to the intent manifested by the portion held invalid or inoperative. The failure by a Party to enforce against another
Party any term or provision of this Agreement shall not be deemed to be a waiver of such Party’s right to enforce against
the other Party the same or any other such term or provision in the future.

 

9.4 Governing
Law; Calculation of Time Periods; Time. This Agreement shall, in all respects, be governed and enforced in accordance with
the laws of the state of New York. Unless otherwise specified, in computing any period of time described herein, the day of the
act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed
is to be included, unless such last day is a Saturday, Sunday or legal holiday for national banks in New York, New York, in which
event the period shall run until the end of the next day which is neither a Saturday, Sunday, or legal holiday. The last day of
any period of time described herein shall be deemed to end at 5:30 p.m. New York, New York time. Time is of the essence in the
performance of this Agreement.

 

9.5 No Third
Party Beneficiary. This Agreement is not intended to give or confer any benefits, rights, privileges, claims, actions,
or remedies to any person or entity as a third party beneficiary, decree, or otherwise, other than the indemnified parties referenced
in Section 2.1 pursuant to and for purposes of Section 2.1, in Section 8.1 pursuant to and for purposes
of Section 8.1, in Section 8.3 pursuant to and for purposes of Section 8.3 and in Section 8.6 pursuant
to and for purposes of Section 8.6, all of whom shall be express third party beneficiaries hereof solely for purposes of
Section 2.1, Section 8.1, Section 8.3 or Section 8.6, as applicable.

 

9.6 Confidentiality.
With the exception of any disclosures concerning the transactions described herein which are made by REIT Parent in connection
with its public company disclosure obligations, no Party shall make a public announcement or other disclosure of this Agreement
or any information related to this Agreement to outside brokers or third parties, before or after the Closing, without the prior
written specific consent of the other, which consent may not be unreasonably conditioned, delayed or withheld so long as such public
disclosure is otherwise in compliance with this Agreement; provided, however, that without the consent of the other Party, a Party
may make (i) any public disclosure it reasonably believes is required by applicable Law, rule or regulation (in which event
such Party shall use reasonable efforts to advise the other Party prior to the making of such disclosure); (ii) such disclosure
as may be reasonably necessary to enforce any provision of this Agreement; (iii) any disclosure to any lender or prospective
lender, creditor, officer, employee, agent, current or prospective investor and their advisors, current or prospective financial
partner, or Affiliate as necessary to perform its obligations under this Agreement or (iv) any public disclosure that is deemed
advisable by such Party or its counsel to be disclosed in connection with financial reporting, securities disclosures or other
legal, tax or financial requirements or guidelines applicable to such Party or any Affiliate thereof, including any disclosures
to the Securities and Exchange Commission and any press release required by the Securities and Exchange Commission in connection
therewith.

 

9.7 Enforcement
Expenses. Should any Party employ attorneys or arbitrators to bring an action or arbitration to enforce any of the provisions
hereof, the non-prevailing Party in such action or arbitration shall pay the prevailing Party all reasonable costs, charges, and
expenses, including attorneys’ fees and costs, expended or incurred in connection therewith (not to exceed, in the aggregate,
$50,000). The limitations set forth in Section 8.2, Section 8.4 and Section 8.7 shall not apply with respect
to this Section 9.7.

 

9.8 Notices.
All notices required or permitted hereunder shall be in writing and shall be served on the following parties:

 

	If to REIT:	 	c/o BRG Manager, LLC
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, NY 10019
	 	 	Attn:  R. Ramin Kamfar
	 	 	 
	If to BRG Lansbrook:	 	c/o BRG Manager, LLC
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, NY 10019
	 	 	Attn:  R. Ramin Kamfar

 

    	25

    	 

    

 

	If to SOIF II:	 	c/o BR SOIF II Manager
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, NY 10019
	 	 	Attn: Jordan B. Ruddy
	 	 	 
	If to SOIF III:	 	c/o BR SOIF III Manager
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, NY 10019
	 	 	Attn: Jordan B. Ruddy

 

9.9 Construction.
The Parties acknowledge that the Parties and their counsel have reviewed and revised this Agreement and the documents to be executed
on or prior to the Closing Date and agree that the normal rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this Agreement, the documents to be delivered on or prior
to the Closing Date or any exhibits or amendments thereto.

 

9.10 Execution
in Counterparts. This Agreement may be executed in any number of counterparts, and by each Party hereto on separate counterparts,
each of which shall be deemed to be an original, and all of such counterparts shall constitute one Agreement. To facilitate execution
of this Agreement, the Parties may execute and exchange by facsimile or email counterparts of the signature pages which shall be
deemed original signatures for all purposes.

 

9.11 Further
Assurances. In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered
by either Party on or prior to the Closing Date, each Party agrees to perform, execute and deliver, but without any obligation
to incur any additional liability or expense, on or after the Closing any further deliveries and assurances as may be reasonably
necessary to consummate the transactions contemplated hereby or to further perfect the conveyance, transfer and assignment of the
Lansbrook Interests to REIT, BRG Lansbrook or their assigns.

 

9.12 Waiver of
Jury Trial; Forum. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH
PARTY SHALL BRING ANY ACTION AGAINST THE OTHER IN CONNECTION WITH THIS AGREEMENT IN A FEDERAL OR STATE COURT LOCATED IN NEW YORK,
NEW YORK, CONSENTS TO THE JURISDICTION OF SUCH COURTS, AND WAIVES ANY RIGHT TO HAVE ANY PROCEEDING TRANSFERRED FROM SUCH COURTS
ON THE GROUND OF IMPROPER VENUE OR INCONVENIENT FORUM.

 

9.13 Mutual Execution.
Until this Agreement has been duly executed by all Parties hereto and a fully executed copy has been delivered to each Party hereto
(which may occur by facsimile transmission or e-mail), this Agreement shall not be legally binding against the Parties.

 

9.14 Cooperation.
Subject to the provisions of this Agreement, the Parties agree to cooperate and use Commercially Reasonable Efforts to consummate
the transactions contemplated hereby.

 

9.15 Exclusivity.
From and after the Effective Date, Sellers and their respective agents, representatives and employees shall immediately cease all
marketing of the Lansbrook Interests, any and all interests in BR Lansbrook JV Member, any and all interests in Lansbrook JV, any
and all interests in Lansbrook Titleholder and any and all interests in the Lansbrook Property until such time as this Agreement
is terminated and Sellers shall not directly or indirectly make, accept, negotiate, entertain or otherwise pursue any offers for
the sale of the foregoing. Notwithstanding the foregoing, Sellers shall not be liable to REIT nor responsible in any manner for
any action taken by the Carroll Entities (or their respective agents, representatives and employees) in contravention of the prohibition
set forth in this Section 9.15; provided, however, to the extent possible, Sellers shall use their reasonable efforts to
ensure such parties’ compliance with this Section 9.15 and shall inform such parties of the prohibition set forth
herein if necessary.

 

    	26

    	 

    

 

[Signature Pages Follow]

 

    	27

    	 

    

 

IN WITNESS WHEREOF, the Parties hereto have
duly executed and delivered this Agreement effective on the Effective Date.

 

	 	SOIF II:
	 	 
	 	Bluerock special opportunity + income
	 	fund ii, llc,
	 	a Delaware limited liability company

 

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

 

	 	 	By:	Bluerock Real Estate, L.L.C., a Delaware
	 	 	 	limited liability company, its sole member

 

	 	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Name:      Jordan Ruddy
	 	 	 	Title:       Authorized Signatory

 

    	28

    	 

    

 

	 	SOIF III:
	 	 
	 	Bluerock special opportunity + income
	 	fund iiI, llc,
	 	a Delaware limited liability company

 

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

 

	 	 	By:	Bluerock Real Estate, L.L.C., a Delaware
	 	 	 	limited liability company, its sole member

 

	 	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Name:      Jordan Ruddy
	 	 	 	Title:       Authorized Signatory

 

    	29

    	 

    

 

	 	REIT:
	 	 
	 	Bluerock Residential Holdings, L.P.,
	 	a Delaware limited partnership

 

	 	By:	Bluerock Residential Growth REIT, Inc.,
	 	 	a Maryland corporation, its general partner

 

	 	 	By:	/s/ Michael L. Konig
	 	 	Name:     Michael L. Konig
	 	 	Title:       Secretary, Chief Operating Officer
	 	 	                and General Counsel

 

    	30

    	 

    

 

	 	BRG LANSBROOK joins hereby for the limited purposes
	 	set forth in Sections 8.6 and 8.8 hereof.
	 	 
	 	BRG LANSBROOK, LLC,
	 	a Delaware limited liability company

 

	 	By:	  Bluerock Residential Holdings, L.P.,
	 	 	  a Delaware limited partnership, its sole member

 

	 	 	By:	Bluerock Residential Growth REIT, Inc.,
	 	 	 	a Maryland corporation, its general partner

 

	 	 	By: 	/s/ Michael L. Konig
	 	 	Name:     Michael L. Konig
	 	 	Title:       Secretary, Chief Operating Officer
	 	 	                and General Counsel

 

    	31

    	 

    

 

Schedule 1.1

 

	Seller	 	Acquiror	 	Interest	 	Allocated 
Consideration ($)	 
	 	 	 	 	 	 	 	 
	SOIF II	 	REIT, for subsequent contribution to BRG Lansbrook	 	32.67% limited liability company interest in BR Lansbrook JV Member, LLC	 	$	5,433,590.94	 
	 	 	 	 	 	 	 	 	 
	SOIF III	 	REIT, for subsequent contribution to BRG Lansbrook	 	52.67% limited liability company interest in BR Lansbrook JV Member, LLC	 	$	8,759,724.13	 

 

*The stated Consideration of $14,193,315.07 (as is allocated
to each of SOIF II and SOIF III, respectively, in this Schedule 1.1) assumes a closing date of May 23, 2014. The REIT is paying
8% annual interest on $14,000,000 from March 21, 2014 through the Closing Date to the collective of SOIF II and SOIF III. The interest
earned is being allocated between SOIF II and SOIF III in proportion to their (pre-transfer) percentage interests in BR Lansbrook
JV Member. To the extent Closing is delayed past May 23, 2014, additional accrued interest will adjust the Consideration to be
paid by the REIT for the Lansbrook Interests.

 

    	32

    	 

    

 

Exhibit A

Property Description

 

[To Be Attached]

 

    	33

    	 

    

 

EXHIBIT A

 

The units described on Schedule A in LANSBROOK VILLAGE CONDOMINIUM,
a Condominium according to the Declaration of Condominium thereof, as recorded in O.R. Book 14696, Pages 673 through 874, inclusive
and according to the Plat thereof recorded in Condominium Book 139, Pages 42 through 62, inclusive and all amendments thereof,
of the Public Records of Pinellas County, Florida, together with an undivided interest in the common elements.

 

    	34

    	 

    

 

Schedule
A

 

Cambridge
Village "C" Units

 

C1-101
C1-103 C1-104 C1-106 C1-201 C1-202 C1-205 C1-206

C2-101
C2-103 C2-104 C2-201 C2-202 C3-101 C3-102 C3-104 C3-105

C3-106
C3-201 C3-202 C3-203 C3-204 C3-205 C4-101 C4-102 C4-103

C4-104
C4-201 C4-203 C4-204 C5-104 C5-105 C5-106 C5-202 C5-203

C5-205
C5-206 C6-101 C6-102 C6-103 C6-104 C6-201 C6-203 C6-204

C7-104
C7-105 C7-106 C7-201 C7-202 C7-204 C7-206 C8-101 C8-104

C8-201
C8-203 C8-204 C9-101 C9-102 C9-103 C9-104 C9-201 C9-202

C9-203
C9-204 C10-102 C10-103 C10-104 C10-105 C10-106 C10-201 C10-202

C10-203
C10-205 C10-206 C11-101 C11-102 C11-103 C11-201 C11-202 C11-203

C12-101
C12-104 C12-201 C12-203 C13-101 C13-102 C13-104 C13-201 C13-203

C13-204
C14-102 C14-104 C14-201 C14-202 C14-204 C15-101 C15-102 C15-104

C15-201
C15-202 C15-204 C16-101 C16-102 C16-104 C16-201 C16-202 C16-203

C16-204
C17-103 C17-104 C17-201 C17-202 C17-203 C17-204 C18-101 C18-102

C18-103
C18-104 C18-201 C18-202 C18-203 C18-204 C19-104 C19-201 C19-203

C19-204
C20-101 C20-104 C20-201 C20-204 C21-101 C21-102 C21-103 C21-104

C21-201
C21-202 C21-203 C22-103 C22-104 C22-105 C22-106 C22-204 C22-205

C22-206
C23-101 C23-102 C23-103 C23-104 C23-105 C23-106 C23-201 C23-202

C23-203
C23-204 C23-205 C23-206 C24-101 C24-102 C24-103 C24-201 C24-203

C24-204
C25-101 C25-102 C25-104 C25-105 C25-201 C25-203 C25-204 C25-205

C25-206
C26-101 C26-102 C26-104 C26-201 C26-203 C26-204

 

Hampton
Village "H" Units

 

H1-102
H1-103 H1-104 H1-106 H1-107 H1-108 H2-101 H2-103 H2-104

H2-105
H2-106 H2-108 H3-103 H3-104 H3-105 H3-106 H3-107 H4-101

H4-106
H5-103 H5-104 H6-101 H6-102 H6-107 H6-108 H6-201 H6-202

H6-203
H6-204 H6-207 H6-208 H6-301 H6-302 H6-303 H6-304 H6-305

H6-306
H6-307 H6-308 H7-102 H7-103 H8-101 H8-103 H9-102 H9-103

H9-104
H9-105 H9-106 H9-107 H9-108 H10-101 H10-102 H10-103 H10-106

H10-107
H10-108 H10-203 H10-204 H10-205 H10-206 H10-207 H10-301 H10-302

H10-304
H10-306 H10-307 H10-308 H11-103 H11-105 H11-106 H11-107 H11-108

H11-109
H12-101 H12-102 H12-103 H12-104 H12-105 H12-106 H12-107 H12-108

H12-201
H12-202 H12-203 H12-205 H12-206 H12-207 H12-208 H12-301 H12-302

H12-304
H12-305 H12-306 H13-103 H13-104 H13-105 H14-101 H14-102 H14-104

H14-105
H15-101 H15-106 H15-108 H16-104 H16-105 H16-106 H16-107 H16-108

H16-201
H16-202 H16-203 H16-204 H16-205 H16-206 H16-207 H16-208 H16-301

H16-302
H16-304 H16-306 H16-307 H16-308 H17-102 H17-104 H17-105 H17-106

H17-107
H18-101 H18-102 H18-103 H18-104 H18-105 H18-106 H18-108 H19-102

H19-103
H19-104 H19-105 H19-106 H20-101 H20-102 H20-103 H20-104 H20-105

H21-103
H21-105 H21-107 H21-108 H21-109 H21-110 H22-103 H22-104 H22-106

H22-107
H22-108 H22-109 H22-110 H23-101 H23-102 H23-103 H23-104 H23-105

H23-106
H24-101 H24-102 H24-103 H24-105 H24-108 H23-109

 

Windsor
Village "W" Units

 

W1-101
W1-204 W2-104 W2-201 W2-203 W3-101 W3-201 W3-202 W3-203

W3-204
W4-102 W4-104 W4-204 W5-101 W5-104 W6-101 W6-102 W6-104

W6-203
W6-204 W7-101 W7-103 W7-104 W7-201 W7-202 W7-203 W7-204

W8-101
W8-102 W8-104 W8-201 W8-202 W8-204 W9-104 W9-105 W10-101

W10-103
W10-105 W11-104 W11-106 W12-101 W12-103 W12-104 W12-105 W12-106

 

    	35

    	 

    

 

W13-102
W13-105 W13-106 W14-102 W14-103 W14-104 W15-101 W15-102 W15-103

W15-104
W15-105 W15-106 W16-102 W16-103 W16-104 W16-105 W17-101 W17-103

W18-101
W18-102 W18-103 W18-104 W18-201 W18-202 W18-203 W18-204 W19-101

W19-201
W19-204 W20-102 W20-103 W20-104 W20-203 W21-101 W21-102 W21-103

W21-201
W21-202 W21-204 W22-101 W22-102 W22-103 W22-104 W22-202 W22-203

W22-204
W23-101 W23-102 W23-104 W23-202 W23-203 W24-101 W24-102 W24-103

W24-104
W24-202 W24-203 W24-204 W25-101 W25-102 W25-103 W25-104 W25-203

W26-101
W26-102 W26-103 W26-104 W26-201 W26-202 W27-202 W28-102 W28-103

W28-202
W28-203 W29-102 W29-103 W30-101 W30-102 W30-201 W31-101 W31-103

W31-104
W32-101 W32-103 W33-101 W33-104 W34-101 W34-105 W35-101 W35-102

W35-104
W35-105 W35-106 W36-103 W36-106 W37-101 W37-102 W34-103 W37-104

W37-105
W38-101 W38-104 W38-106 W39-101 W39-105 W40-101 W41-101 W41-102

W41-103
W41-104

 

C19-102
C8-202 C20-103 C25-103 C5-204 C8-103 C10-101 C12-102 C12-202

C19-103

 

H6-206
H10-201 H10-303 H11-110 H15-102 H15-104 H15-110 H16-305 H22-105

H1-105
H5-101 H6-104 H16-103 H6-106 H17-103 H22-101

 

W3-102
W1-201 W5-201 W5-204 W7-102 W10-104 W12-102 W16-101 W19-102

W19-104
W21-104 W27-203 W28-101 W28-104 W28-204 W29-204 W30-103 W11-101

W10-102
W36-105 W26-204 W27-201 W36-102 W8-203 W20-101 W33-106 W25-204

W27-102

 

C1-102
H10-105 W1-102 W2-102 W10-106 W25-201

H3-101
H23-107 W1-103 W4-203 W21-203 W29-104 W33-103 W34-102 W36-101

 

W2-204

   

    	36

    	 

    

   

Exhibit B

Org Chart

 

[SEE ATTACHMENT] 

    	37

    	 

    

 

 

 

    	38

    	 

    

  

Exhibit C

Form of Pledge Agreement

 

[TO BE ATTACHED] 

 

    	39

    	 

    

 

Pledge Agreement

 

THIS PLEDGE AGREEMENT
(this “Agreement”), dated as of ____________, 2014, is entered into by and between BLUEROCK RESIDENTIAL HOLDINGS,
L.P., a Delaware limited partnership (the “Pledgee”), and Bluerock Special Opportunity + Income Fund II, LLC,
a Delaware limited liability company (the “Pledgor”). Capitalized terms used herein but not otherwise defined
herein shall have the meanings assigned to such terms in the Membership Interest Purchase Agreement (as defined below).

 

WHEREAS, pursuant to
that certain Membership Interest Purchase Agreement, dated effective as of May 15, 2014, by and between the Pledgee, the Pledgor
and SOIF III (the “Membership Interest Purchase Agreement”), the Pledgor is contributing the SOIF II
Lansbrook Interest to the Pledgee in exchange for cash;

 

WHEREAS, pursuant to
the Membership Interest Purchase Agreement, the Pledgor has agreed to indemnify the Pledgee, its successors, assigns and Affiliates,
including, but not limited to, BRG Lansbrook (each, an “Indemnified Party” and, together, the “Indemnified
Parties”), for certain losses described in Section 8.1 of the Membership Interest Purchase Agreement (but subject to
the limitations expressed in Section 8.2 of the Membership Interest Purchase Agreement) (the “Losses”) and asserted
during the Survival Period (as hereinafter defined). The Pledgor’s obligations (i) so to indemnify the Indemnified Parties
for Losses in accordance with Section 8.1 of the Membership Interest Purchase Agreement, and (ii) to perform its obligations hereunder
are referred to herein collectively as the “Secured Obligations”; and

 

WHEREAS, in order to
secure the full and timely performance of the Secured Obligations pursuant to the Membership Interest Purchase Agreement, the Pledgor
has agreed to pledge and grant to the Pledgee, as security for the Secured Obligations, a lien and security interest in, to and
under ten percent (10%) of the cash consideration received by Pledgee under the Membership Interest Purchase Agreement (collectively
the “Pledged Interests”), such pledge, lien and security interest to remain in effect during the Pledge Period
(as defined below) subject to the terms hereof.

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements herein contained, and for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Grant
of Security Interest. As collateral security for the payment, performance and observance of the Secured Obligations, now existing
or hereafter arising, absolute or contingent, the Pledgor pledges to the Pledgee, for its own benefit and for the benefit of each
Indemnified Party subject to the limitations set forth herein, and grants to the Pledgee, for its own benefit and the benefit of
each Indemnified Party subject to the limitations set forth herein, a security interest in the following property (collectively,
the “Collateral”):

 

(a)          the
Pledged Interests;

 

(b)          any
equity securities of the Pledgee (“Additional Interests”) and/or obligations of the Pledgee in respect of the
Pledged Interests that may hereafter be acquired by the Pledgor during the Pledge Period and, if any, the certificates or other
instruments or documents evidencing the same;

 

(c)          all
rights of Pledgor in and to all distributions in kind declared in respect of any or all of the foregoing during the Pledge Period;

 

(d)          any
cash received by Pledgee pursuant to Section 8 below during the Pledge Period;

 

(e)          any
cash or cash equivalent (the “Cash Collateral”) substituted by Pledgor for the Pledged Interests and/or the
Additional Interests (or any portion thereof) pursuant to the terms hereof; and

 

    	40

    	 

    

 

(f)          all
proceeds and profits of any or all of the foregoing.

 

Pledgor and Pledgee do hereby acknowledge
and agree that Pledgor shall be entitled, at any time during the Pledge Period, to substitute Cash Collateral for all or any portion
of the Pledged Interests and/or the Additional Interests. Any Cash Collateral shall be held in a segregated account in the name
of both Pledgor and Pledgee (at an institution designated by Pledgee) and shall be released from such account only upon instructions
given by Pledgor and Pledgee, which instructions shall conform with the provisions of this Agreement.

 

2.          Delivery
of Certificates and Instruments. The Pledgor shall deliver to the Pledgee: (a) the original certificates or other instruments
or documents evidencing the Pledged Interests, if any, concurrently with the execution and delivery of this Agreement, and (b)
the original certificates or other instruments or documents evidencing all other Collateral (except for Collateral that this Agreement
specifically permits the Pledgor to retain) within ten (10) days after Pledgor’s receipt thereof. All Collateral that is
certificated securities shall be in bearer form or, if in registered form, shall be reflected as being subject to this Agreement
on the books of the transfer agent.

 

3.          Pledgor
Remain Liable. Notwithstanding anything herein to the contrary: (a) the Pledgor shall remain obligated, to the extent
set forth in the agreements (including, without limitation, the Pledgee’s Charter Documents) under which it has received,
or has rights or obligations in respect of its ownership of, any shares of the REIT Parent (“REIT Shares”) (“Related
Agreements”) to perform its duties and obligations thereunder to the same extent as if this Agreement had not been executed;
(b) the exercise by the Pledgee of any of its rights hereunder shall not release the Pledgor from any of its duties or obligations
under the Related Agreements, except to the extent that such duties and obligations may have been terminated by reason of a sale,
transfer or other disposition of the Collateral pursuant hereto; and (c) the Pledgee shall not by reason of this Agreement
have any obligations or liabilities under the Related Agreements (beyond those imposed directly on the Pledgee by the express terms
therein), nor shall the Pledgee be obligated to perform any of the obligations or duties of the Pledgor under the Related Agreements
or to take any action to collect or enforce any claim for payment assigned hereunder.

 

4.          Representations,
Warranties and Covenants.

 

(a)          The
Pledgor represents, warrants and covenants, as of the date hereof (for itself and not jointly or jointly and severally with any
other Person), as follows:

 

(1)         Pledgor
owns, directly or indirectly, all of such Pledged Interests, free and clear of all claims, mortgages, pledges, liens, encumbrances
and security interests of every nature whatsoever created (or allowed to be created) by Pledgor, except in favor of the Pledgee.
All other Collateral hereafter delivered by the Pledgor to the Pledgee will be owned, directly or indirectly, by the Pledgor free
and clear of all claims, mortgages, pledges, liens, encumbrances and security interests of every nature whatsoever, except in favor
of the Pledgee.

 

(2)         With
respect to the Pledgor, the address of its chief executive office and principal place of business, and the location of its books
and records relating to the Collateral, is set forth in Section 21 hereof. Pledgor will not change said address or location, or
merge or consolidate with any person or change its name during the Pledge Period, without at least fifteen (15) days’ prior
written notice to the Pledgee, and with respect to any such change in address or name or merger or consolidation, Pledgor shall
execute and deliver to the Pledgee such documents and take such actions as the Pledgee reasonably deems necessary to perfect and
protect the Pledgee’s security interests in and to the Collateral.

 

(3)         During
the Pledge Period (and, if and to the extent applicable, any Extended Pledge Period (as defined below)), the Pledgor will not create,
incur, assume or permit to exist any security interest in the Collateral (or during such Extended Pledge Period, the Retained Collateral
(as defined below)) other than the security interest created pursuant to this Agreement or sell, transfer, assign, pledge or grant
a security interest in the Collateral (or during such Extended Pledge Period, the Retained Collateral) to any Person other than
the Pledgee (provided that Pledgor shall be entitled to consent to the sale of the Pledged Interests or the Additional Interests
during the Pledge Period (and, if and to the extent applicable, the Extended Pledge Period) so long as such sale is not binding
or consummated until the Pledge Period has expired).

 

    	41

    	 

    

 

(4)         The
Pledged Interests that are Collateral hereunder are fully paid and are not subject to any options to purchase or similar rights
of any kind granted by the Pledgor in favor of any Person, except pursuant to the terms of the Pledgee’s Charter Documents.

 

(5)         The
Pledgor has the power and authority to own its properties and to carry on its business as currently conducted.

 

(6)         The
Pledgor has the requisite power and authority to execute and deliver, and to perform its obligations under, this Agreement, and
has taken all necessary action to authorize such execution, delivery and performance.

 

(7)         This
Agreement constitutes the legal, valid and binding obligation of the Pledgor, enforceable against the Pledgor in accordance with
its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors or by the application of general equitable principles.

 

(8)         The
Pledgor’s execution, delivery and performance of this Agreement will not violate (as applicable) any law or regulation, or
any order or decree of any court or governmental instrumentality binding on Pledgor, or any provision of the Pledgor’s Charter
Documents, or any securities issued by, the Pledgor, and will not conflict with, or result in the breach of, or constitute a default
under, any indenture, mortgage, deed of trust, agreement or other instrument to which the Pledgor is a party or by which it is
bound, and will not result in the creation or imposition of any lien, charge or encumbrance upon any of the property of the Pledgor
pursuant to the provisions of any of the foregoing.

 

(9)         No
consent of any other Person (including, without limitation, as applicable, members and creditors of the Pledgor) and no consent,
license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with,
any governmental instrumentality is required in connection with the execution, delivery, performance, validity or enforceability
of this Agreement, except for (x) any of same necessary to issue, certificate or register any REIT Shares or (y) the filing of
any financing statements required or contemplated hereunder.

 

(10)        The
pledge of the Collateral pursuant to this Agreement creates a valid and perfected first priority security interest in such Collateral
to the extent a security interest can be created therein pursuant to the New York Uniform Commercial Code, subject to any filings,
agreements or actions required pursuant to the New York Uniform Commercial Code or otherwise.

 

(11)        During
the Pledge Period (and any Extended Pledge Period, if and to the extent applicable), the Pledgor will take commercially reasonable
actions to defend the Pledgee’s security interest in the Collateral (or, during such Extended Pledge Period, the Retained
Collateral) against the claims and demands of all Persons whomsoever (other than Affiliates of Pledgee).

 

(12)        During
the Pledge Period (and any Extended Pledge Period, if and to the extent applicable), the Pledgor will take any and all commercially
reasonable actions necessary to maintain its status as a stockholder of the Pledgee and the shares of Pledgee’s Class “A”
common stock represented by the Pledged Interests (if any).

 

(13)        During
the Pledge Period, the Pledgor will not enter into or assume any other agreement containing a negative pledge with respect to the
Collateral (or, during any Extended Pledge Period, if and to the extent applicable, with respect to the Retained Collateral).

 

(b)          The
Pledgee represents, warrants and covenants, as of the date hereof (for itself and not jointly or jointly and severally with any
other Person), as follows:

 

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(1)         During
the Pledge Period (and, if and to the extent applicable, any Extended Pledge Period (as defined below)), the Pledgee will not sell,
transfer, assign or the Collateral (or during such Extended Pledge Period, the Retained Collateral) to any Person or allow any
lien to be placed on or otherwise encumber the Collateral.

 

(2)         The
Pledged Interests and the Additional Interests that are Collateral hereunder will not be made subject to any options to purchase
or similar rights of any kind granted by the Pledgee in favor of any Person, except pursuant to the terms of the Pledgee’s
Charter Documents.

 

(3)         The
Pledgee has the power and authority to own its properties and to carry on its business as currently conducted.

 

(4)         The
Pledgee has the requisite power and authority to execute and deliver, and to perform its obligations under, this Agreement, and
has taken all necessary action to authorize such execution, delivery and performance.

 

(5)         This
Agreement constitutes the legal, valid and binding obligation of the Pledgee, enforceable against the Pledgee in accordance with
its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors or by the application of general equitable principles.

 

(6)         The
Pledgee’s execution, delivery and performance of this Agreement will not violate (as applicable) any law or regulation, or
any order or decree of any court or governmental instrumentality binding on Pledgee, or any provision of the Pledgee’s Charter
Documents, or any securities issued by, the Pledgee, and will not conflict with, or result in the breach of, or constitute a default
under, any indenture, mortgage, deed of trust, agreement or other instrument to which the Pledgee is a party or by which it is
bound, and will not result in the creation or imposition of any lien, charge or encumbrance upon any of the property of the Pledgee
pursuant to the provisions of any of the foregoing.

 

(7)         No
consent of any other Person (including, without limitation, as applicable, stockholders and creditors of the Pledgee) and no consent,
license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with,
any governmental instrumentality is required in connection with the execution, delivery, performance, validity or enforceability
of this Agreement, except for (x) any of same necessary to issue, certificate or register any REIT Shares or (y) the filing of
any financing statements required or contemplated hereunder.

 

5.          Registration.
If any Claim (as defined below) remains unresolved thirty (30) days after the date of issuance of the applicable Claim Notice (as
defined below), and provided Pledgee has notified Pledgor in writing of its intention to take any of the actions specified in this
Section 5 and further provided Pledgor has not within three (3) business days from receipt of such written notification substituted
Cash Collateral in the amount of such Outstanding Claim (as defined below) for all (or an applicable portion) of the Pledged Interests
(and/or the Additional Interests), then Pledgee may cause all or any of the Collateral to be transferred to or registered in its
name or the name of its nominee or nominees. Notwithstanding anything contained herein to the contrary, Pledgee shall not be entitled
to take any action under this Agreement with respect to the Pledged Interests (or the Additional Interests) that is prohibited
by the terms, or would cause a breach or violation, any Lock-Up Agreement or Registration Rights Agreement to which Pledgor and
Pledgee (or REIT Parent) are parties.

 

6.          Claims;
Value of Collateral.

 

(a)          Any
claims by an Indemnified Party for indemnification under the Membership Interest Purchase Agreement shall be made in accordance
with Section 8.1 of the Membership Interest Purchase Agreement. On or prior to the first (1st) anniversary of the Closing (the
“Survival Period”), an Indemnified Party may give written notice (each a “Claim Notice”)
to the Pledgor of any Loss that is subject to indemnification under Section 8.1 of the Membership Interest Purchase Agreement (each
a “Claim”). Pledgor and Pledgee shall use commercially reasonable efforts to resolve any Claim within thirty
(30) days of issuance of the applicable Claim Notice. Any Claim that has not been resolved to the mutual satisfaction of Pledgor
and Pledgee shall be referred to hereunder as an “Outstanding Claim”. The amount required to satisfy any Claim
shall be disclosed in the Claims Notice, as estimated by the Independent Directors (as defined below) in their reasonable discretion,
and same shall be binding on Pledgor unless manifestly erroneous (such amount(s) being referred to, individually and collectively,
as the “Estimated Claims Amount”).

 

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(b)          The
value of Collateral (the “Value”) shall be determined as follows: (i) with respect to Collateral consisting
of the REIT Shares, an amount equal to ten percent (10%) of the aggregate monetary value of the REIT Shares (determined by the
share price on the Closing Date); (ii) for all other non-cash (or non-cash equivalent) Collateral, the fair market value of such
Collateral as determined by the independent directors of the REIT Parent who meet the New York Stock Exchange standards of independence
for directors, as determined by the board of directors of the REIT Parent (the “Independent Directors”).

 

7.          Voting
Rights and Certain Payments Prior to Occurrence of Secured Obligations and Other Events.

 

(a)          Unless
and until a Claim Notice has been properly issued, the Pledgor shall be entitled to exercise, in its sole discretion but not inconsistent
with the terms hereof, the voting power with respect to any such Collateral, and for that purpose the Pledgee shall (if such Collateral
shall be registered in the name of the Pledgee or its nominee in strict compliance with the terms hereof) execute, or cause to
be executed, from time to time such proxies or other instruments in favor of the Pledgor or its nominee in such form and for such
purposes as shall be reasonably required and specified in writing by the Pledgor, to enable the Pledgor to exercise such voting
power with respect to such Collateral. If a Claim Notice has been properly issued by Pledgee, then the rights granted under this
Paragraph 7(a) shall be exercisable by Pledgee, rather than Pledgor, with respect to Collateral having a Value equal to the Estimated
Claims Amount (the “Claims Pending Collateral”), with Pledgor retaining the rights granted hereunder relating
to all other Collateral.

 

(b)          Unless
and until a Claim Notice has been properly issued, the Pledgor shall be entitled to receive and retain for its own account any
and all regular cash distributions (but not distributions in the form of Additional Interests or other securities, distributions
in kind or liquidating distributions, all of which shall be delivered and applied in accordance with Section 8 hereof) and interest
at any time and from time to time paid upon any of such Collateral, and the Pledgee shall have no rights in or to same by virtue
of this Agreement. Any of such regular cash distributions or interest paid while any Outstanding Claim exists shall be deemed part
of the Collateral under this Agreement and thereafter subject to the terms hereof relating to such Collateral.

 

8.          Extraordinary
Payments and Distributions. In case, upon the dissolution or liquidation (in whole or in part) of the Pledgee, any sum shall
be paid as a liquidating distribution or otherwise upon or with respect to any of the Collateral during the Pledge Period, such
sum shall be paid over to the Pledgee promptly, and in any event within ten (10) days after receipt thereof, to be held by the
Pledgee as additional Collateral hereunder and all of the same shall constitute Collateral for all purposes hereof. Any such payment
made following the expiration of the Pledge Period shall belong solely to the Pledgor, and the Pledgee shall have no rights in
or to same by virtue of this Agreement, except to the extent any Retained Collateral remains held by Pledgee, in which case any
such payment applicable to such Retained Collateral shall be deemed part of such Retained Collateral under this Agreement and thereafter
subject to the terms hereof relating to such Retained Collateral. In case, during the Pledge Period, any distribution of Additional
Interests shall be made with respect to the Collateral, or Additional Interests or fractions thereof shall be issued pursuant to
any split involving any of the Collateral, or any distribution of capital shall be made on any of the Collateral, or any shares,
obligations or other property shall be distributed upon or with respect to the Collateral pursuant to a recapitalization or reclassification
of the capital of the Pledgee, or pursuant to the dissolution, liquidation (in whole or in part), bankruptcy or reorganization
of the Pledgee, or pursuant to the merger or consolidation of the Pledgee with or into another entity, the shares, obligations
or other property so distributed shall be delivered to the Pledgee promptly, and in any event within ten (10) days after receipt
thereof, to be held by the Pledgee as additional Collateral hereunder, and all of the same shall constitute Collateral for all
purposes hereof. Any such distribution made following the expiration of the Pledge Period shall belong solely to the Pledgor, and
the Pledgee shall have no rights in or to same by virtue of this Agreement, except to the extent any Retained Collateral remains
held by Pledgee, in which case any such distribution applicable to such Retained Collateral shall be deemed part of such Retained
Collateral under this Agreement and thereafter subject to the terms hereof relating to such Retained Collateral.

 

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9.          Pledgor
Obligations Not Affected. The obligations of the Pledgor hereunder shall remain in full force and effect and shall not be impaired
by:

 

(a)          any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of the Pledgor;

 

(b)          any
amendments to or modifications of any instrument (other than this Agreement) securing any of the Secured Obligations provided that
the Pledgor has consented to same (such consent not to be unreasonably conditioned, delayed or denied);

 

(c)          the
taking of additional security for, or any guaranty of, any of the Secured Obligations or the release or discharge or termination
of any security or guaranty for any of the Secured Obligations; or

 

(d)          the
lack of enforceability of any of the Secured Obligations against the Pledgor or any other person, whether or not the Pledgor shall
have notice or knowledge of any of the foregoing.

 

10.         Voting
Rights and Certain Payments After Occurrence of Claim Notice and Certain Other Events.

 

(a)          From
and after the issuance of any Claim Notice, all rights of the Pledgor to exercise, or refrain from exercising, all voting power
with respect to, and to otherwise exercise all ownership rights arising from, the Claims Pending Collateral shall cease, and thereupon
the Pledgee shall be entitled to exercise all voting power with respect to such Claims Pending Collateral and otherwise exercise
such ownership rights as though the Pledgee were the outright owner of such Claims Pending Collateral (Pledgor shall retain such
voting power with respect to all other Collateral). If the Independent Directors reasonably determine that the Estimated Claims
Amount equals or exceeds the Value of the Collateral then available to satisfy such Outstanding Claims, then the Pledgor shall
no longer be the owner of such Collateral for tax purposes and all rights of the Pledgor to receive and retain the distributions
and interest which it would otherwise be authorized to receive and retain pursuant to Section 7 hereof shall cease, and thereupon
the Pledgee shall be entitled to receive and retain, as additional Collateral hereunder, any and all distributions and interest
at any time and from time to time paid upon any of such Collateral, provided that, concurrent with making such determination, the
Pledgee gives notice thereof to the Pledgor.

 

(b)          All
payments, distributions or other property or assets that are received by the Pledgor contrary to the provisions of paragraph (a)
of this Section 10 shall be received and held in trust for the benefit of the Pledgee, shall be segregated from other funds of
the Pledgor and shall be forthwith paid over to the Pledgee.

 

11.         Application
of Cash Collateral. Any cash received and retained by the Pledgee as additional Collateral pursuant to Section 8 hereof may
at any time and from time to time be applied (in whole or in part) by the Pledgee, at its option, in strict accordance with the
terms and conditions hereof, to the payment of the Secured Obligations which such Collateral secures (in the order described in
paragraph 12 below), but only if and to the extent any such payment is required hereunder.

 

12.         Application
of Proceeds. Except as otherwise expressly provided herein, any cash received and retained pursuant to Section 8 hereof shall
be applied by the Pledgee: first to the payment in full of the Secured Obligations, but only if and to the extent any such payment
is required hereunder; and then, to the payment to the Pledgor, or its successors or assigns or as a court of competent jurisdiction
may direct, of any surplus then remaining.

 

13.         Remedies
With Respect to the Collateral.

 

(a)          If
any Claim remains unresolved thirty (30) days after the date of receipt of the applicable Claim Notice, then Pledgee, without obligation
to resort to other security, shall have the right at any time and from time to time thereafter to apply, after three (3) business
days’ prior written notice to Pledgor (each an “Application Notice”), Collateral with a Value equal to
the Estimated Claims Amount, in one or more parcels at the same or different times, and to receive all right, title and interest,
claim and demand therein and right of redemption thereof, same to be applied by Pledgee to payment of such Outstanding Claims.

 

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(b)          Notwithstanding
anything to the contrary in this Agreement or the Membership Interest Purchase Agreement, the sole recourse of the Pledgee against
the Pledgor for the Secured Obligations is limited to the rights of the Pledgor in any Collateral that is applied by the Pledgee
in strict accordance with the terms and conditions hereof to satisfy such Secured Obligations.

 

(c)          No
demand, advertisement or notice, all of which are hereby expressly waived, shall be required in connection with any transfer of
Collateral to the Pledgee in strict accordance with the terms and conditions of this Agreement.

 

(d)          Subject
to the provisions of Section 13(b) above, the remedies provided herein in favor of the Pledgee relating to the Collateral shall
not be deemed exclusive, but shall be cumulative, and shall be in addition to all other remedies in favor of the Pledgee relating
to the Collateral existing at law or in equity.

 

14.         Care
of Collateral. The Pledgee shall have no duty as to the collection or protection of the Collateral or any income thereon or
as to the preservation of any rights pertaining thereto, beyond the safe custody of any thereof actually in its possession. With
respect to any maturities, calls, conversions, exchanges, redemptions, offers, tenders or similar matters relating to any of the
Collateral (herein called “events”), the Pledgee’s duty shall be fully satisfied if (i) the Pledgee exercises
reasonable care to ascertain the occurrence and to give reasonable written notice to the Pledgor of any events applicable to any
Collateral which are registered and held in the name of the Pledgee or its nominee, (ii) the Pledgee gives the Pledgor reasonable
written notice of the occurrence of any events, of which the Pledgee has actual knowledge, as to any securities which are in bearer
form or are not registered and held in the name of the Pledgee or its nominee (the Pledgor agreeing to give the Pledgee reasonable
written notice of the occurrence of any events applicable to any securities Collateral in the possession of the Pledgor of which
the Pledgor has received knowledge), and (iii) (a) the Pledgee endeavors to take such action with respect to any of the events
as the Pledgor may reasonably and specifically request in writing in sufficient time for such action to be evaluated and taken
or (b) if the Pledgee reasonably determines that the action requested might adversely affect the value of the Collateral, the collection
of the Secured Obligations, or otherwise prejudice the interests of the Pledgee, the Pledgee gives reasonable written notice to
the Pledgor that any such requested action will not be taken and if the Pledgee makes such determination or if the Pledgor fails
to make such timely request, the Pledgee takes such other action as it deems advisable in the circumstances. Except as hereinabove
specifically set forth, the Pledgee shall have no further obligation, under this Agreement only, to ascertain the occurrence of,
or to notify the Pledgor with respect to, any events and shall not be deemed to assume any such further obligation as a result
of the establishment by the Pledgee of any internal procedures with respect to any Collateral in its possession.

 

15.         Power
of Attorney. The Pledgor hereby appoints the Pledgee to act during the Pledge Period (and, if and to the extent applicable,
any Extended Pledge Period) as the Pledgor’s attorney-in-fact for the purpose of carrying out the provisions of this Agreement
and taking any action and executing any instrument that the Pledgee reasonably may deem necessary or advisable to accomplish the
purposes hereof, provided that Pledgee has given Pledgor prior reasonable written notice of Pledgee’s intention to exercise
such attorney-in-fact rights. Without limiting the generality of the foregoing, at any time while an Outstanding Claim exists,
the Pledgee shall have the right and power (a) with respect to any Claims Pending Collateral to satisfy a Secured Obligation in
strict accordance with the terms and conditions herein, to receive, endorse and collect all checks and other orders for the payment
of money made payable to the Pledgor representing any interest or other distribution payable in respect of such Claims Pending
Collateral or any part thereof and to give full discharge for the same, and (b) to execute endorsements, assignments or other instruments
of conveyance or transfer with respect to all or any of the Claims Pending Collateral; provided, that the Pledgee shall provide
reasonable written notice to the Pledgor prior to taking any such action under the foregoing clauses (a) and (b). For purposes
of this Section 15 and Section 14 above, “reasonable written notice” shall mean written notice given within five (5)
days of the occurrence of the event, issue or at least five (5) days prior to the date on which such requisite action will be taken.

 

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16.         Further
Assurances. The Pledgor shall, at its sole cost and expense, upon reasonable request of the Pledgee, duly execute and deliver,
or cause to be duly executed and delivered, to the Pledgee such further instruments and documents and take and cause to be taken
such further actions as may be necessary or proper in the reasonable opinion of the Pledgee to carry out more effectually the provisions
and purposes of this Agreement; provided that none of the same will materially affect Pledgor’s or Pledgee’s rights
hereunder or materially increase their obligations hereunder.

 

17.         No
Waiver. No failure on the part of the Pledgee to exercise, and no delay on the part of the Pledgee in exercising, any of its
options, powers, rights or remedies hereunder during the Pledge Period, or partial or single exercise thereof, shall constitute
a waiver thereof or preclude any other or further exercise thereof or the exercise of any other option, power, right or remedy
during the Pledge Period.

 

18.         Security
Interest Absolute. All rights of the Pledgee hereunder, grant of a security interest in the Collateral and all obligations
of the Pledgor hereunder, shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the
Membership Interest Purchase Agreement, any of the Secured Obligations or any other agreement or instrument relating thereto, (b)
any change in any term of all or any of the Secured Obligations or any other amendment or waiver of, or any consent to any departure
from, the Membership Interest Purchase Agreement or any other agreement or instrument or (c) any other circumstance that might
otherwise constitute a defense available to, or a discharge of the Pledgor in respect of the Secured Obligations or in respect
of this Agreement.

 

19.         Expenses.
Pledgor agrees to pay the Pledgee all reasonable out-of-pocket expenses of the Pledgee (including reasonable expenses for legal
services of every kind) of, or incident to the enforcement of, any provisions of this Agreement. Pledgee agrees to pay the Pledgor
all reasonable out-of-pocket expenses of the Pledgor (including reasonable expenses for legal services of every kind) of, or incident
to the enforcement of, any obligations of Pledgee hereunder.

 

20.         End
of Pledge Period; Return of Collateral.

 

(a)          For
purposes of this Agreement, the “Pledge Period” means the period beginning on the date hereof and ending on
the six (6) month anniversary of the date hereof; provided, that, if there are any Outstanding Claims at the time
of termination of the Pledge Period, the Pledgee shall have the right to retain, pending resolution of such Outstanding Claim(s)
pursuant to Section 8.1 of the Membership Interest Purchase Agreement, and at all times subject to the terms hereof, Collateral
equal in Value to the Estimated Claims Amount (“Retained Collateral”). Solely with respect to such Retained
Collateral, the Pledge Period shall be deemed to continue (an “Extended Pledge Period”) until the earlier to
occur of (i) the ten (10) month anniversary of the date hereof or (ii) the resolution pursuant to Section 8.1 of the Membership
Interest Purchase Agreement, of the Outstanding Claim(s) to which such Retained Collateral relates; provided, however, if any Outstanding
Claims remain in existence on the ten (10) month anniversary of the date hereof, then Pledgor shall be required to deliver Replacement
Collateral (as defined below) to Pledgee before the Extended Pledge Period may end. Following the expiration of the Pledge Period,
the Pledgor shall be required to maintain for the balance of the Survival Period a minimum net worth of not less than $10,000,000.00.

 

(b)          Upon
the termination of the Pledge Period (or the Extended Pledge Period, if and to the extent applicable), the Pledgor shall be entitled
to, and the Pledgee promptly shall effect, the return to the Pledgor of all of the Collateral (and all other cash or other items
held as additional Collateral hereunder) that has not been used or applied toward the payment of the Secured Obligations in strict
accordance with the terms hereof (it being understood, for the sake of clarity, that Collateral not so used or applied shall become
subject to the foregoing return obligation on and as of the last day of the Pledge Period, except for any Retained Collateral,
which shall become subject to the foregoing return obligation on and as of the date determined in accordance with Section 20(a)
above). The Pledgee shall take all necessary actions to effect and evidence the return of Collateral under this Section 20, including,
without limitation, the filing of UCC termination statements with respect to, and the return to the Pledgor of certificates, if
any, representing the Pledged Interests (or Additional Interests) comprising, such Collateral.

 

(c)          The
assignment by the Pledgee to the Pledgor of such Collateral shall be without representation or warranty of any nature whatsoever
except as otherwise provided in Paragraph 4(b) above. Pledgor shall be entitled to exercise any and all rights or remedies available
to it at law or in equity concerning Pledgee’s performance of its obligations hereunder (or any breach of the representations
or warranties made by Pledgee hereunder).

 

    	47

    	 

    

 

(d)          Notwithstanding
anything to the contrary in this Agreement, the Pledgor shall have the right to substitute Cash Collateral for (i) any Pledged
Interests or Additional Interests that are subject to application by Pledgee following issuance of an Application Notice or (ii)
any Pledged Interests (or Additional Interests) constituting Retained Collateral (“Replacement Collateral”)
by depositing such Replacement Collateral with the Pledgee (same to be held subject to the Cash Collateral provisions set forth
in Section 1 and elsewhere herein) and instructing the Pledgee to release the Pledged Interests (or Additional Interests) for which
they are substituted; provided, that as of the date of such substitution, the Value of the Replacement Collateral
shall be equal to or greater than the Estimated Claims Amount. Upon replacement of the Pledged Interests (or Additional Interests)
with Replacement Collateral meeting the requirements stated above, the Pledgee’s security interest in the replaced Pledged
Interests (or Additional Interests) shall terminate and be released and the Pledgee shall take all necessary actions to effect
and evidence the return of the Pledged Interests (or Additional Interests), including, without limitation, the filing of UCC termination
statements with respect to such Pledged Interests (or Additional Interests), and the prompt delivery of the original certifications,
if any, or other instruments or documents evidencing the Pledged Interests (or Additional Interests). The continuing lien and perfected
security interest granted by the Pledgor to the Pledgee shall automatically apply and attach to and be granted with respect to
the Replacement Collateral and Pledgor shall execute and deliver to the Pledgee such documents and take such actions as the Pledgee
reasonably deems necessary to perfect and protect the Pledgee’s security interests in and to the Replacement Collateral.

 

21.         Notices.
All notices and other communications in connection with this Agreement shall be made in writing and delivered by hand, recognized
overnight delivery service or by certified or registered mail, postage prepaid, with return receipt requested:

 

		If to Pledgee:	c/o BRG Manager, LLC

712 Fifth Avenue, 9th Floor 

New York, NY 10019 

Attn: R. Ramin Kamfar

 

		If to Pledgor:	c/o BR SOIF II Manager

712 Fifth Avenue, 9th Floor 

New York, NY 10019 

Attn: Jordan B. Ruddy

 

22.         Amendments
and Waivers. No amendment or waiver of any provision of this Agreement shall in any event be effective unless the same shall
be in writing and signed by the Pledgee and the Pledgor.

 

23.         Governing
Law. This Agreement and the rights and obligations of the Pledgee and the Pledgor hereunder shall be construed in accordance
with and governed by the law of the State of New York (without giving effect to the conflict-of-laws principles thereof).

 

24.         [Reserved].

 

25.         Transfer
or Assignment. Except with respect to any assignment or transfer by the Pledgee to an Affiliate (which shall not require the
Pledgor’s consent, but as to which the Pledgee will give prior written notice to the Pledgor), none of the Pledgor or Pledgee
may assign or transfer any of their respective rights under and interests in this Agreement without the prior written consent of
the Pledgor (if the assignor/transferee is the Pledgee) or of the Pledgee (if the assignor/transferee is the Pledgor), which consent
shall not be unreasonably withheld, conditioned or delayed; provided, however, that no consent of the
Pledgor is required hereunder for (a) the assignment or transfer by the Pledgee of any of its rights under and interests in the
Membership Interest Purchase Agreement to any permitted assignee under the Membership Interest Purchase Agreement or (b) the Pledgee
to act hereunder as agent on behalf of any Person who becomes a Indemnified Party. Upon receipt of such consent (if required under
this Section 25), the Pledgee may deliver the Collateral or any portion thereof to its assignee/transferee who shall thereupon,
to the extent provided in the instrument of assignment, have all of the rights and obligations of the Pledgee hereunder with respect
to the Collateral, and the Pledgee shall thereafter be fully discharged from any responsibility with respect to the Collateral
so delivered to such assignee/transferee provided that such assignee/transferee has expressly assumed in writing all duties and
obligations of the Pledgee hereunder to the reasonable satisfaction of Pledgor. However, no such assignment or transfer shall relieve
such assignee/transferee of those duties and obligations of the Pledgee specified hereunder.

 

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26.         Benefit
of Agreement. This Agreement shall be binding upon and inure to the benefit of the Pledgor and the Pledgee and their respective
successors and permitted assigns, and all subsequent holders of the Secured Obligations.

 

27.         Counterparts.
This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original and all of which shall together constitute one and the same agreement.

 

28.         Captions.
The captions of the sections of this Agreement have been inserted for convenience only and shall not in any way affect the meaning
or construction of any provision of this Agreement.

 

29.         Complete
Agreement. This Agreement and the Membership Interest Purchase Agreement, as applicable, constitute the entire agreement of
the parties with respect to the subject matter hereof and supersede all other understandings, oral or written, with respect to
the subject matter hereof.

 

30.         Severability.
In case any one or more of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired
provided that the parties retain all of the material rights afforded to them herein notwithstanding the removal of such invalid,
illegal or unenforceable provision.

 

31.         No
Third-Party Beneficiaries. Except as may be expressly provided or incorporated by reference herein, no provision of this Agreement
is intended, nor shall it be interpreted, to provide or create any third party beneficiary rights or any other rights of any kind
in any customer, affiliate, stockholder, partner, member, director, officer or employee of any party hereto or any other Person
or entity.

 

[SIGNATURES ON FOLLOWING PAGE]

 

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IN WITNESS WHEREOF,
the parties hereto have duly executed and delivered this Agreement on the day and year written below.

 

	 	Pledgor:
	 	 
	 	BLUEROCK SPECIAL OPPORTUNITY+ INCOME
	 	FUND II, LLC, a Delaware limited liability company
	 	 	 	 	 
	 	By:	BR SOIF II Manager, LLC,
	 	 	a Delaware limited liability company, its manager
	 	 	 	 	 
	 	 	By:	Bluerock Real Estate, L.L.C.,
	 	 	 	a Delaware limited liability company,
	 	 	 	its sole member
	 	 	 	 	 
	Dated: ____________________, 2014	 	 	By: 	 
	 	 	 	Name:	R. Ramin Kamfar
	 	 	 	Title:	Chief Executive Officer
	 	 	 	 	 
	 	Pledgee:	 	 	 
	 	 	 	 	 
	 	BLUEROCK RESIDENTIAL HOLDINGS, L.P.,
	 	a Delaware limited partnership
	 	 	 	 	 
	 	By:	Bluerock Residential Growth REIT, Inc.,
	 	 	a Maryland corporation, its general partner
	 	 	 	 	 
	Dated: ____________________, 2014	 	By: 	 	 
	 	 	Name:	Michael L. Konig
	 	 	Title:	Secretary, Chief Operating Officer and
	 	 	 	General Counsel

 

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Pledge Agreement

 

THIS PLEDGE AGREEMENT
(this “Agreement”), dated as of ____________, 2014, is entered into by and between BLUEROCK RESIDENTIAL HOLDINGS,
L.P., a Delaware limited partnership (the “Pledgee”), and Bluerock Special Opportunity + Income Fund III, LLC,
a Delaware limited liability company (the “Pledgor”). Capitalized terms used herein but not otherwise defined
herein shall have the meanings assigned to such terms in the Membership Interest Purchase Agreement (as defined below).

 

WHEREAS, pursuant to
that certain Membership Interest Purchase Agreement, dated effective as of May 15, 2014, by and between the Pledgee, the Pledgor
and SOIF II (the “Membership Interest Purchase Agreement”), the Pledgor is contributing the SOIF III
Lansbrook Interest to the Pledgee in exchange for cash;

 

WHEREAS, pursuant to
the Membership Interest Purchase Agreement, the Pledgor has agreed to indemnify the Pledgee, its successors, assigns and Affiliates,
including, but not limited to, BRG Lansbrook (each, an “Indemnified Party” and, together, the “Indemnified
Parties”), for certain losses described in Section 8.3 of the Membership Interest Purchase Agreement (but subject to
the limitations expressed in Section 8.4 of the Membership Interest Purchase Agreement) (the “Losses”) and asserted
during the Survival Period (as hereinafter defined). The Pledgor’s obligations (i) so to indemnify the Indemnified Parties
for Losses in accordance with Section 8.3 of the Membership Interest Purchase Agreement, and (ii) to perform its obligations
hereunder are referred to herein collectively as the “Secured Obligations”; and

 

WHEREAS, in order to
secure the full and timely performance of the Secured Obligations pursuant to the Membership Interest Purchase Agreement, the Pledgor
has agreed to pledge and grant to the Pledgee, as security for the Secured Obligations, a lien and security interest in, to and
under ten percent (10%) of the cash consideration received by Pledgee under the Membership Interest Purchase Agreement (collectively
the “Pledged Interests”), such pledge, lien and security interest to remain in effect during the Pledge Period
(as defined below) subject to the terms hereof.

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements herein contained, and for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Grant
of Security Interest. As collateral security for the payment, performance and observance of the Secured Obligations, now existing
or hereafter arising, absolute or contingent, the Pledgor pledges to the Pledgee, for its own benefit and for the benefit of each
Indemnified Party subject to the limitations set forth herein, and grants to the Pledgee, for its own benefit and the benefit of
each Indemnified Party subject to the limitations set forth herein, a security interest in the following property (collectively,
the “Collateral”):

 

(a)          the
Pledged Interests;

 

(b)          any
equity securities of the Pledgee (“Additional Interests”) and/or obligations of the Pledgee in respect of the
Pledged Interests that may hereafter be acquired by the Pledgor during the Pledge Period and, if any, the certificates or other
instruments or documents evidencing the same;

 

(c)          all
rights of Pledgor in and to all distributions in kind declared in respect of any or all of the foregoing during the Pledge Period;

 

(d)          any
cash received by Pledgee pursuant to Section 8 below during the Pledge Period;

 

(e)          any
cash or cash equivalent (the “Cash Collateral”) substituted by Pledgor for the Pledged Interests and/or the
Additional Interests (or any portion thereof) pursuant to the terms hereof; and

 

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(f)          all
proceeds and profits of any or all of the foregoing.

 

Pledgor and Pledgee do hereby acknowledge
and agree that Pledgor shall be entitled, at any time during the Pledge Period, to substitute Cash Collateral for all or any portion
of the Pledged Interests and/or the Additional Interests. Any Cash Collateral shall be held in a segregated account in the name
of both Pledgor and Pledgee (at an institution designated by Pledgee) and shall be released from such account only upon instructions
given by Pledgor and Pledgee, which instructions shall conform with the provisions of this Agreement.

 

2.          Delivery
of Certificates and Instruments. The Pledgor shall deliver to the Pledgee: (a) the original certificates or other instruments
or documents evidencing the Pledged Interests, if any, concurrently with the execution and delivery of this Agreement, and (b)
the original certificates or other instruments or documents evidencing all other Collateral (except for Collateral that this Agreement
specifically permits the Pledgor to retain) within ten (10) days after Pledgor’s receipt thereof. All Collateral that is
certificated securities shall be in bearer form or, if in registered form, shall be reflected as being subject to this Agreement
on the books of the transfer agent.

 

3.          Pledgor
Remain Liable. Notwithstanding anything herein to the contrary: (a) the Pledgor shall remain obligated, to the extent set forth
in the agreements (including, without limitation, the Pledgee’s Charter Documents) under which it has received, or has rights
or obligations in respect of its ownership of, any shares of the REIT Parent (“REIT Shares”) (“Related
Agreements”) to perform its duties and obligations thereunder to the same extent as if this Agreement had not been executed;
(b) the exercise by the Pledgee of any of its rights hereunder shall not release the Pledgor from any of its duties or obligations
under the Related Agreements, except to the extent that such duties and obligations may have been terminated by reason of a sale,
transfer or other disposition of the Collateral pursuant hereto; and (c) the Pledgee shall not by reason of this Agreement have
any obligations or liabilities under the Related Agreements (beyond those imposed directly on the Pledgee by the express terms
therein), nor shall the Pledgee be obligated to perform any of the obligations or duties of the Pledgor under the Related Agreements
or to take any action to collect or enforce any claim for payment assigned hereunder.

 

4.          Representations,
Warranties and Covenants.

 

(a)          The
Pledgor represents, warrants and covenants, as of the date hereof (for itself and not jointly or jointly and severally with any
other Person), as follows:

 

(1)         Pledgor
owns, directly or indirectly, all of such Pledged Interests, free and clear of all claims, mortgages, pledges, liens, encumbrances
and security interests of every nature whatsoever created (or allowed to be created) by Pledgor, except in favor of the Pledgee.
All other Collateral hereafter delivered by the Pledgor to the Pledgee will be owned, directly or indirectly, by the Pledgor free
and clear of all claims, mortgages, pledges, liens, encumbrances and security interests of every nature whatsoever, except in favor
of the Pledgee.

 

(2)         With
respect to the Pledgor, the address of its chief executive office and principal place of business, and the location of its books
and records relating to the Collateral, is set forth in Section 21 hereof. Pledgor will not change said address or location, or
merge or consolidate with any person or change its name during the Pledge Period, without at least fifteen (15) days’ prior
written notice to the Pledgee, and with respect to any such change in address or name or merger or consolidation, Pledgor shall
execute and deliver to the Pledgee such documents and take such actions as the Pledgee reasonably deems necessary to perfect and
protect the Pledgee’s security interests in and to the Collateral.

 

(3)         During
the Pledge Period (and, if and to the extent applicable, any Extended Pledge Period (as defined below)), the Pledgor will not create,
incur, assume or permit to exist any security interest in the Collateral (or during such Extended Pledge Period, the Retained Collateral
(as defined below)) other than the security interest created pursuant to this Agreement or sell, transfer, assign, pledge or grant
a security interest in the Collateral (or during such Extended Pledge Period, the Retained Collateral) to any Person other than
the Pledgee (provided that Pledgor shall be entitled to consent to the sale of the Pledged Interests or the Additional Interests
during the Pledge Period (and, if and to the extent applicable, the Extended Pledge Period) so long as such sale is not binding
or consummated until the Pledge Period has expired).

 

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(4)         The
Pledged Interests that are Collateral hereunder are fully paid and are not subject to any options to purchase or similar rights
of any kind granted by the Pledgor in favor of any Person, except pursuant to the terms of the Pledgee’s Charter Documents.

 

(5)         The
Pledgor has the power and authority to own its properties and to carry on its business as currently conducted.

 

(6)         The
Pledgor has the requisite power and authority to execute and deliver, and to perform its obligations under, this Agreement, and
has taken all necessary action to authorize such execution, delivery and performance.

 

(7)         This
Agreement constitutes the legal, valid and binding obligation of the Pledgor, enforceable against the Pledgor in accordance with
its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors or by the application of general equitable principles.

 

(8)         The
Pledgor’s execution, delivery and performance of this Agreement will not violate (as applicable) any law or regulation, or
any order or decree of any court or governmental instrumentality binding on Pledgor, or any provision of the Pledgor’s Charter
Documents, or any securities issued by, the Pledgor, and will not conflict with, or result in the breach of, or constitute a default
under, any indenture, mortgage, deed of trust, agreement or other instrument to which the Pledgor is a party or by which it is
bound, and will not result in the creation or imposition of any lien, charge or encumbrance upon any of the property of the Pledgor
pursuant to the provisions of any of the foregoing.

 

(9)         No
consent of any other Person (including, without limitation, as applicable, members and creditors of the Pledgor) and no consent,
license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with,
any governmental instrumentality is required in connection with the execution, delivery, performance, validity or enforceability
of this Agreement, except for (x) any of same necessary to issue, certificate or register any REIT Shares or (y) the filing of
any financing statements required or contemplated hereunder.

 

(10)        The
pledge of the Collateral pursuant to this Agreement creates a valid and perfected first priority security interest in such Collateral
to the extent a security interest can be created therein pursuant to the New York Uniform Commercial Code, subject to any filings,
agreements or actions required pursuant to the New York Uniform Commercial Code or otherwise.

 

(11)        During
the Pledge Period (and any Extended Pledge Period, if and to the extent applicable), the Pledgor will take commercially reasonable
actions to defend the Pledgee’s security interest in the Collateral (or, during such Extended Pledge Period, the Retained
Collateral) against the claims and demands of all Persons whomsoever (other than Affiliates of Pledgee).

 

(12)        During
the Pledge Period (and any Extended Pledge Period, if and to the extent applicable), the Pledgor will take any and all commercially
reasonable actions necessary to maintain its status as a stockholder of the Pledgee and the shares of Pledgee’s Class “A”
common stock represented by the Pledged Interests (if any).

 

(13)        During
the Pledge Period, the Pledgor will not enter into or assume any other agreement containing a negative pledge with respect to the
Collateral (or, during any Extended Pledge Period, if and to the extent applicable, with respect to the Retained Collateral).

 

(b)          The
Pledgee represents, warrants and covenants, as of the date hereof (for itself and not jointly or jointly and severally with any
other Person), as follows:

 

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(1)         During
the Pledge Period (and, if and to the extent applicable, any Extended Pledge Period (as defined below)), the Pledgee will not sell,
transfer, assign or the Collateral (or during such Extended Pledge Period, the Retained Collateral) to any Person or allow any
lien to be placed on or otherwise encumber the Collateral.

 

(2)         The
Pledged Interests and the Additional Interests that are Collateral hereunder will not be made subject to any options to purchase
or similar rights of any kind granted by the Pledgee in favor of any Person, except pursuant to the terms of the Pledgee’s
Charter Documents.

 

(3)         The
Pledgee has the power and authority to own its properties and to carry on its business as currently conducted.

 

(4)         The
Pledgee has the requisite power and authority to execute and deliver, and to perform its obligations under, this Agreement, and
has taken all necessary action to authorize such execution, delivery and performance.

 

(5)         This
Agreement constitutes the legal, valid and binding obligation of the Pledgee, enforceable against the Pledgee in accordance with
its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors or by the application of general equitable principles.

 

(6)         The
Pledgee’s execution, delivery and performance of this Agreement will not violate (as applicable) any law or regulation, or
any order or decree of any court or governmental instrumentality binding on Pledgee, or any provision of the Pledgee’s Charter
Documents, or any securities issued by, the Pledgee, and will not conflict with, or result in the breach of, or constitute a default
under, any indenture, mortgage, deed of trust, agreement or other instrument to which the Pledgee is a party or by which it is
bound, and will not result in the creation or imposition of any lien, charge or encumbrance upon any of the property of the Pledgee
pursuant to the provisions of any of the foregoing.

 

(7)         No
consent of any other Person (including, without limitation, as applicable, stockholders and creditors of the Pledgee) and no consent,
license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with,
any governmental instrumentality is required in connection with the execution, delivery, performance, validity or enforceability
of this Agreement, except for (x) any of same necessary to issue, certificate or register any REIT Shares or (y) the filing of
any financing statements required or contemplated hereunder.

 

5.          Registration.
If any Claim (as defined below) remains unresolved thirty (30) days after the date of issuance of the applicable Claim Notice (as
defined below), and provided Pledgee has notified Pledgor in writing of its intention to take any of the actions specified in this
Section 5 and further provided Pledgor has not within three (3) business days from receipt of such written notification substituted
Cash Collateral in the amount of such Outstanding Claim (as defined below) for all (or an applicable portion) of the Pledged Interests
(and/or the Additional Interests), then Pledgee may cause all or any of the Collateral to be transferred to or registered in its
name or the name of its nominee or nominees. Notwithstanding anything contained herein to the contrary, Pledgee shall not be entitled
to take any action under this Agreement with respect to the Pledged Interests (or the Additional Interests) that is prohibited
by the terms, or would cause a breach or violation, any Lock-Up Agreement or Registration Rights Agreement to which Pledgor and
Pledgee (or REIT Parent) are parties.

 

6.          Claims;
Value of Collateral.

 

(a)          Any
claims by an Indemnified Party for indemnification under the Membership Interest Purchase Agreement shall be made in accordance
with Section 8.3 of the Membership Interest Purchase Agreement. On or prior to the first (1st) anniversary of the Closing (the
“Survival Period”), an Indemnified Party may give written notice (each a “Claim Notice”)
to the Pledgor of any Loss that is subject to indemnification under Section 8.3 of the Membership Interest Purchase Agreement (each
a “Claim”). Pledgor and Pledgee shall use commercially reasonable efforts to resolve any Claim within thirty
(30) days of issuance of the applicable Claim Notice. Any Claim that has not been resolved to the mutual satisfaction of Pledgor
and Pledgee shall be referred to hereunder as an “Outstanding Claim”. The amount required to satisfy any Claim
shall be disclosed in the Claims Notice, as estimated by the Independent Directors (as defined below) in their reasonable discretion,
and same shall be binding on Pledgor unless manifestly erroneous (such amount(s) being referred to, individually and collectively,
as the “Estimated Claims Amount”).

 

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(b)          The
value of Collateral (the “Value”) shall be determined as follows: (i) with respect to Collateral consisting
of the REIT Shares, an amount equal to ten percent (10%) of the aggregate monetary value of the REIT Shares (determined by the
share price on the Closing Date); (ii) for all other non-cash (or non-cash equivalent) Collateral, the fair market value of such
Collateral as determined by the independent directors of the REIT Parent who meet the New York Stock Exchange standards of independence
for directors, as determined by the board of directors of the REIT Parent (the “Independent Directors”).

 

7.          Voting
Rights and Certain Payments Prior to Occurrence of Secured Obligations and Other Events.

 

(a)          Unless
and until a Claim Notice has been properly issued, the Pledgor shall be entitled to exercise, in its sole discretion but not inconsistent
with the terms hereof, the voting power with respect to any such Collateral, and for that purpose the Pledgee shall (if such Collateral
shall be registered in the name of the Pledgee or its nominee in strict compliance with the terms hereof) execute, or cause to
be executed, from time to time such proxies or other instruments in favor of the Pledgor or its nominee in such form and for such
purposes as shall be reasonably required and specified in writing by the Pledgor, to enable the Pledgor to exercise such voting
power with respect to such Collateral. If a Claim Notice has been properly issued by Pledgee, then the rights granted under this
Paragraph 7(a) shall be exercisable by Pledgee, rather than Pledgor, with respect to Collateral having a Value equal to the Estimated
Claims Amount (the “Claims Pending Collateral”), with Pledgor retaining the rights granted hereunder relating
to all other Collateral.

 

(b)          Unless
and until a Claim Notice has been properly issued, the Pledgor shall be entitled to receive and retain for its own account any
and all regular cash distributions (but not distributions in the form of Additional Interests or other securities, distributions
in kind or liquidating distributions, all of which shall be delivered and applied in accordance with Section 8 hereof) and interest
at any time and from time to time paid upon any of such Collateral, and the Pledgee shall have no rights in or to same by virtue
of this Agreement. Any of such regular cash distributions or interest paid while any Outstanding Claim exists shall be deemed part
of the Collateral under this Agreement and thereafter subject to the terms hereof relating to such Collateral.

 

8.          Extraordinary
Payments and Distributions. In case, upon the dissolution or liquidation (in whole or in part) of the Pledgee, any sum shall
be paid as a liquidating distribution or otherwise upon or with respect to any of the Collateral during the Pledge Period, such
sum shall be paid over to the Pledgee promptly, and in any event within ten (10) days after receipt thereof, to be held by the
Pledgee as additional Collateral hereunder and all of the same shall constitute Collateral for all purposes hereof. Any such payment
made following the expiration of the Pledge Period shall belong solely to the Pledgor, and the Pledgee shall have no rights in
or to same by virtue of this Agreement, except to the extent any Retained Collateral remains held by Pledgee, in which case any
such payment applicable to such Retained Collateral shall be deemed part of such Retained Collateral under this Agreement and thereafter
subject to the terms hereof relating to such Retained Collateral. In case, during the Pledge Period, any distribution of Additional
Interests shall be made with respect to the Collateral, or Additional Interests or fractions thereof shall be issued pursuant to
any split involving any of the Collateral, or any distribution of capital shall be made on any of the Collateral, or any shares,
obligations or other property shall be distributed upon or with respect to the Collateral pursuant to a recapitalization or reclassification
of the capital of the Pledgee, or pursuant to the dissolution, liquidation (in whole or in part), bankruptcy or reorganization
of the Pledgee, or pursuant to the merger or consolidation of the Pledgee with or into another entity, the shares, obligations
or other property so distributed shall be delivered to the Pledgee promptly, and in any event within ten (10) days after receipt
thereof, to be held by the Pledgee as additional Collateral hereunder, and all of the same shall constitute Collateral for all
purposes hereof. Any such distribution made following the expiration of the Pledge Period shall belong solely to the Pledgor, and
the Pledgee shall have no rights in or to same by virtue of this Agreement, except to the extent any Retained Collateral remains
held by Pledgee, in which case any such distribution applicable to such Retained Collateral shall be deemed part of such Retained
Collateral under this Agreement and thereafter subject to the terms hereof relating to such Retained Collateral.

 

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9.          Pledgor
Obligations Not Affected. The obligations of the Pledgor hereunder shall remain in full force and effect and shall not be impaired
by:

 

(a)          any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of the Pledgor;

 

(b)          any
amendments to or modifications of any instrument (other than this Agreement) securing any of the Secured Obligations provided that
the Pledgor has consented to same (such consent not to be unreasonably conditioned, delayed or denied);

 

(c)          the
taking of additional security for, or any guaranty of, any of the Secured Obligations or the release or discharge or termination
of any security or guaranty for any of the Secured Obligations; or

 

(d)          the
lack of enforceability of any of the Secured Obligations against the Pledgor or any other person, whether or not the Pledgor shall
have notice or knowledge of any of the foregoing.

 

10.         Voting
Rights and Certain Payments After Occurrence of Claim Notice and Certain Other Events.

 

(a)          From
and after the issuance of any Claim Notice, all rights of the Pledgor to exercise, or refrain from exercising, all voting power
with respect to, and to otherwise exercise all ownership rights arising from, the Claims Pending Collateral shall cease, and thereupon
the Pledgee shall be entitled to exercise all voting power with respect to such Claims Pending Collateral and otherwise exercise
such ownership rights as though the Pledgee were the outright owner of such Claims Pending Collateral (Pledgor shall retain such
voting power with respect to all other Collateral). If the Independent Directors reasonably determine that the Estimated Claims
Amount equals or exceeds the Value of the Collateral then available to satisfy such Outstanding Claims, then the Pledgor shall
no longer be the owner of such Collateral for tax purposes and all rights of the Pledgor to receive and retain the distributions
and interest which it would otherwise be authorized to receive and retain pursuant to Section 7 hereof shall cease, and thereupon
the Pledgee shall be entitled to receive and retain, as additional Collateral hereunder, any and all distributions and interest
at any time and from time to time paid upon any of such Collateral, provided that, concurrent with making such determination, the
Pledgee gives notice thereof to the Pledgor.

 

(b)          All
payments, distributions or other property or assets that are received by the Pledgor contrary to the provisions of paragraph (a)
of this Section 10 shall be received and held in trust for the benefit of the Pledgee, shall be segregated from other funds of
the Pledgor and shall be forthwith paid over to the Pledgee.

 

11.         Application
of Cash Collateral. Any cash received and retained by the Pledgee as additional Collateral pursuant to Section 8 hereof may
at any time and from time to time be applied (in whole or in part) by the Pledgee, at its option, in strict accordance with the
terms and conditions hereof, to the payment of the Secured Obligations which such Collateral secures (in the order described in
paragraph 12 below), but only if and to the extent any such payment is required hereunder.

 

12.         Application
of Proceeds. Except as otherwise expressly provided herein, any cash received and retained pursuant to Section 8 hereof shall
be applied by the Pledgee: first to the payment in full of the Secured Obligations, but only if and to the extent any such payment
is required hereunder; and then, to the payment to the Pledgor, or its successors or assigns or as a court of competent jurisdiction
may direct, of any surplus then remaining.

 

13.         Remedies
With Respect to the Collateral.

 

(a)          If
any Claim remains unresolved thirty (30) days after the date of receipt of the applicable Claim Notice, then Pledgee, without obligation
to resort to other security, shall have the right at any time and from time to time thereafter to apply, after three (3) business
days’ prior written notice to Pledgor (each an “Application Notice”), Collateral with a Value equal to
the Estimated Claims Amount, in one or more parcels at the same or different times, and to receive all right, title and interest,
claim and demand therein and right of redemption thereof, same to be applied by Pledgee to payment of such Outstanding Claims.

 

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(b)          Notwithstanding
anything to the contrary in this Agreement or the Membership Interest Purchase Agreement, the sole recourse of the Pledgee against
the Pledgor for the Secured Obligations is limited to the rights of the Pledgor in any Collateral that is applied by the Pledgee
in strict accordance with the terms and conditions hereof to satisfy such Secured Obligations.

 

(c)          No
demand, advertisement or notice, all of which are hereby expressly waived, shall be required in connection with any transfer of
Collateral to the Pledgee in strict accordance with the terms and conditions of this Agreement.

 

(d)          Subject
to the provisions of Section 13(b) above, the remedies provided herein in favor of the Pledgee relating to the Collateral shall
not be deemed exclusive, but shall be cumulative, and shall be in addition to all other remedies in favor of the Pledgee relating
to the Collateral existing at law or in equity.

 

14.         Care
of Collateral. The Pledgee shall have no duty as to the collection or protection of the Collateral or any income thereon or
as to the preservation of any rights pertaining thereto, beyond the safe custody of any thereof actually in its possession. With
respect to any maturities, calls, conversions, exchanges, redemptions, offers, tenders or similar matters relating to any of the
Collateral (herein called “events”), the Pledgee’s duty shall be fully satisfied if (i) the Pledgee exercises
reasonable care to ascertain the occurrence and to give reasonable written notice to the Pledgor of any events applicable to any
Collateral which are registered and held in the name of the Pledgee or its nominee, (ii) the Pledgee gives the Pledgor reasonable
written notice of the occurrence of any events, of which the Pledgee has actual knowledge, as to any securities which are in bearer
form or are not registered and held in the name of the Pledgee or its nominee (the Pledgor agreeing to give the Pledgee reasonable
written notice of the occurrence of any events applicable to any securities Collateral in the possession of the Pledgor of which
the Pledgor has received knowledge), and (iii) (a) the Pledgee endeavors to take such action with respect to any of the events
as the Pledgor may reasonably and specifically request in writing in sufficient time for such action to be evaluated and taken
or (b) if the Pledgee reasonably determines that the action requested might adversely affect the value of the Collateral, the collection
of the Secured Obligations, or otherwise prejudice the interests of the Pledgee, the Pledgee gives reasonable written notice to
the Pledgor that any such requested action will not be taken and if the Pledgee makes such determination or if the Pledgor fails
to make such timely request, the Pledgee takes such other action as it deems advisable in the circumstances. Except as hereinabove
specifically set forth, the Pledgee shall have no further obligation, under this Agreement only, to ascertain the occurrence of,
or to notify the Pledgor with respect to, any events and shall not be deemed to assume any such further obligation as a result
of the establishment by the Pledgee of any internal procedures with respect to any Collateral in its possession.

 

15.         Power
of Attorney. The Pledgor hereby appoints the Pledgee to act during the Pledge Period (and, if and to the extent applicable,
any Extended Pledge Period) as the Pledgor’s attorney-in-fact for the purpose of carrying out the provisions of this Agreement
and taking any action and executing any instrument that the Pledgee reasonably may deem necessary or advisable to accomplish the
purposes hereof, provided that Pledgee has given Pledgor prior reasonable written notice of Pledgee’s intention to exercise
such attorney-in-fact rights. Without limiting the generality of the foregoing, at any time while an Outstanding Claim exists,
the Pledgee shall have the right and power (a) with respect to any Claims Pending Collateral to satisfy a Secured Obligation in
strict accordance with the terms and conditions herein, to receive, endorse and collect all checks and other orders for the payment
of money made payable to the Pledgor representing any interest or other distribution payable in respect of such Claims Pending
Collateral or any part thereof and to give full discharge for the same, and (b) to execute endorsements, assignments or other instruments
of conveyance or transfer with respect to all or any of the Claims Pending Collateral; provided, that the Pledgee shall provide
reasonable written notice to the Pledgor prior to taking any such action under the foregoing clauses (a) and (b). For purposes
of this Section 15 and Section 14 above, “reasonable written notice” shall mean written notice given within five (5)
days of the occurrence of the event, issue or at least five (5) days prior to the date on which such requisite action will be taken.

 

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16.         Further
Assurances. The Pledgor shall, at its sole cost and expense, upon reasonable request of the Pledgee, duly execute and deliver,
or cause to be duly executed and delivered, to the Pledgee such further instruments and documents and take and cause to be taken
such further actions as may be necessary or proper in the reasonable opinion of the Pledgee to carry out more effectually the provisions
and purposes of this Agreement; provided that none of the same will materially affect Pledgor’s or Pledgee’s rights
hereunder or materially increase their obligations hereunder.

 

17.         No
Waiver. No failure on the part of the Pledgee to exercise, and no delay on the part of the Pledgee in exercising, any of its
options, powers, rights or remedies hereunder during the Pledge Period, or partial or single exercise thereof, shall constitute
a waiver thereof or preclude any other or further exercise thereof or the exercise of any other option, power, right or remedy
during the Pledge Period.

 

18.         Security
Interest Absolute. All rights of the Pledgee hereunder, grant of a security interest in the Collateral and all obligations
of the Pledgor hereunder, shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the
Membership Interest Purchase Agreement, any of the Secured Obligations or any other agreement or instrument relating thereto, (b)
any change in any term of all or any of the Secured Obligations or any other amendment or waiver of, or any consent to any departure
from, the Membership Interest Purchase Agreement or any other agreement or instrument or (c) any other circumstance that might
otherwise constitute a defense available to, or a discharge of the Pledgor in respect of the Secured Obligations or in respect
of this Agreement.

 

19.         Expenses.
Pledgor agrees to pay the Pledgee all reasonable out-of-pocket expenses of the Pledgee (including reasonable expenses for legal
services of every kind) of, or incident to the enforcement of, any provisions of this Agreement. Pledgee agrees to pay the Pledgor
all reasonable out-of-pocket expenses of the Pledgor (including reasonable expenses for legal services of every kind) of, or incident
to the enforcement of, any obligations of Pledgee hereunder.

 

20.         End
of Pledge Period; Return of Collateral.

 

(a)          For
purposes of this Agreement, the “Pledge Period” means the period beginning on the date hereof and ending on
the six (6) month anniversary of the date hereof; provided, that, if there are any Outstanding Claims at the time
of termination of the Pledge Period, the Pledgee shall have the right to retain, pending resolution of such Outstanding Claim(s)
pursuant to Section 8.3 of the Membership Interest Purchase Agreement, and at all times subject to the terms hereof, Collateral
equal in Value to the Estimated Claims Amount (“Retained Collateral”). Solely with respect to such Retained
Collateral, the Pledge Period shall be deemed to continue (an “Extended Pledge Period”) until the earlier to
occur of (i) the ten (10) month anniversary of the date hereof or (ii) the resolution pursuant to Section 8.3 of the Membership
Interest Purchase Agreement, of the Outstanding Claim(s) to which such Retained Collateral relates; provided, however, if any Outstanding
Claims remain in existence on the ten (10) month anniversary of the date hereof, then Pledgor shall be required to deliver Replacement
Collateral (as defined below) to Pledgee before the Extended Pledge Period may end. Following the expiration of the Pledge Period,
the Pledgor shall be required to maintain for the balance of the Survival Period a minimum net worth of not less than $10,000,000.00.

 

(b)          Upon
the termination of the Pledge Period (or the Extended Pledge Period, if and to the extent applicable), the Pledgor shall be entitled
to, and the Pledgee promptly shall effect, the return to the Pledgor of all of the Collateral (and all other cash or other items
held as additional Collateral hereunder) that has not been used or applied toward the payment of the Secured Obligations in strict
accordance with the terms hereof (it being understood, for the sake of clarity, that Collateral not so used or applied shall become
subject to the foregoing return obligation on and as of the last day of the Pledge Period, except for any Retained Collateral,
which shall become subject to the foregoing return obligation on and as of the date determined in accordance with Section 20(a)
above). The Pledgee shall take all necessary actions to effect and evidence the return of Collateral under this Section 20, including,
without limitation, the filing of UCC termination statements with respect to, and the return to the Pledgor of certificates, if
any, representing the Pledged Interests (or Additional Interests) comprising, such Collateral.

 

(c)          The
assignment by the Pledgee to the Pledgor of such Collateral shall be without representation or warranty of any nature whatsoever
except as otherwise provided in Paragraph 4(b) above. Pledgor shall be entitled to exercise any and all rights or remedies available
to it at law or in equity concerning Pledgee’s performance of its obligations hereunder (or any breach of the representations
or warranties made by Pledgee hereunder).

 

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(d)          Notwithstanding
anything to the contrary in this Agreement, the Pledgor shall have the right to substitute Cash Collateral for (i) any Pledged
Interests or Additional Interests that are subject to application by Pledgee following issuance of an Application Notice or (ii)
any Pledged Interests (or Additional Interests) constituting Retained Collateral (“Replacement Collateral”)
by depositing such Replacement Collateral with the Pledgee (same to be held subject to the Cash Collateral provisions set forth
in Section 1 and elsewhere herein) and instructing the Pledgee to release the Pledged Interests (or Additional Interests) for which
they are substituted; provided, that as of the date of such substitution, the Value of the Replacement Collateral
shall be equal to or greater than the Estimated Claims Amount. Upon replacement of the Pledged Interests (or Additional Interests)
with Replacement Collateral meeting the requirements stated above, the Pledgee’s security interest in the replaced Pledged
Interests (or Additional Interests) shall terminate and be released and the Pledgee shall take all necessary actions to effect
and evidence the return of the Pledged Interests (or Additional Interests), including, without limitation, the filing of UCC termination
statements with respect to such Pledged Interests (or Additional Interests), and the prompt delivery of the original certifications,
if any, or other instruments or documents evidencing the Pledged Interests (or Additional Interests). The continuing lien and perfected
security interest granted by the Pledgor to the Pledgee shall automatically apply and attach to and be granted with respect to
the Replacement Collateral and Pledgor shall execute and deliver to the Pledgee such documents and take such actions as the Pledgee
reasonably deems necessary to perfect and protect the Pledgee’s security interests in and to the Replacement Collateral.

 

21.         Notices.
All notices and other communications in connection with this Agreement shall be made in writing and delivered by hand, recognized
overnight delivery service or by certified or registered mail, postage prepaid, with return receipt requested:

 

		If to Pledgee:	c/o BRG Manager, LLC

712 Fifth Avenue, 9th Floor 

New York, NY 10019 

Attn: R. Ramin Kamfar

 

		If to Pledgor:	c/o BR SOIF III Manager

712 Fifth Avenue, 9th Floor 

New York, NY 10019 

Attn: Jordan B. Ruddy

 

22.         Amendments
and Waivers. No amendment or waiver of any provision of this Agreement shall in any event be effective unless the same shall
be in writing and signed by the Pledgee and the Pledgor.

 

23.         Governing
Law. This Agreement and the rights and obligations of the Pledgee and the Pledgor hereunder shall be construed in accordance
with and governed by the law of the State of New York (without giving effect to the conflict-of-laws principles thereof).

 

24.         [Reserved].

 

25.         Transfer
or Assignment. Except with respect to any assignment or transfer by the Pledgee to an Affiliate (which shall not require the
Pledgor’s consent, but as to which the Pledgee will give prior written notice to the Pledgor), none of the Pledgor or Pledgee
may assign or transfer any of their respective rights under and interests in this Agreement without the prior written consent of
the Pledgor (if the assignor/transferee is the Pledgee) or of the Pledgee (if the assignor/transferee is the Pledgor), which consent
shall not be unreasonably withheld, conditioned or delayed; provided, however, that no consent of the
Pledgor is required hereunder for (a) the assignment or transfer by the Pledgee of any of its rights under and interests in the
Membership Interest Purchase Agreement to any permitted assignee under the Membership Interest Purchase Agreement or (b) the Pledgee
to act hereunder as agent on behalf of any Person who becomes a Indemnified Party. Upon receipt of such consent (if required under
this Section 25), the Pledgee may deliver the Collateral or any portion thereof to its assignee/transferee who shall thereupon,
to the extent provided in the instrument of assignment, have all of the rights and obligations of the Pledgee hereunder with respect
to the Collateral, and the Pledgee shall thereafter be fully discharged from any responsibility with respect to the Collateral
so delivered to such assignee/transferee provided that such assignee/transferee has expressly assumed in writing all duties and
obligations of the Pledgee hereunder to the reasonable satisfaction of Pledgor. However, no such assignment or transfer shall relieve
such assignee/transferee of those duties and obligations of the Pledgee specified hereunder.

 

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26.         Benefit
of Agreement. This Agreement shall be binding upon and inure to the benefit of the Pledgor and the Pledgee and their respective
successors and permitted assigns, and all subsequent holders of the Secured Obligations.

 

27.         Counterparts.
This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original and all of which shall together constitute one and the same agreement.

 

28.         Captions.
The captions of the sections of this Agreement have been inserted for convenience only and shall not in any way affect the meaning
or construction of any provision of this Agreement.

 

29.         Complete
Agreement. This Agreement and the Membership Interest Purchase Agreement, as applicable, constitute the entire agreement of
the parties with respect to the subject matter hereof and supersede all other understandings, oral or written, with respect to
the subject matter hereof.

 

30.         Severability.
In case any one or more of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired
provided that the parties retain all of the material rights afforded to them herein notwithstanding the removal of such invalid,
illegal or unenforceable provision.

 

31.         No
Third-Party Beneficiaries. Except as may be expressly provided or incorporated by reference herein, no provision of this Agreement
is intended, nor shall it be interpreted, to provide or create any third party beneficiary rights or any other rights of any kind
in any customer, affiliate, stockholder, partner, member, director, officer or employee of any party hereto or any other Person
or entity.

 

[SIGNATURES ON FOLLOWING PAGE]

 

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IN WITNESS WHEREOF,
the parties hereto have duly executed and delivered this Agreement on the day and year written below.

 

	 	Pledgor:
	 	 
	 	BLUEROCK SPECIAL OPPORTUNITY+ INCOME
	 	FUND III, LLC, a Delaware limited liability company
	 	 	 	 	 
	 	By:	BR SOIF III Manager, LLC,
	 	 	a Delaware limited liability company, its manager
	 	 	 	 	 
	 	 	By:	Bluerock Real Estate, L.L.C.,
	 	 	 	a Delaware limited liability company,
	 	 	 	its sole member
	 	 	 	 	 
	Dated: May 15, 2014	 	 	By: 	/s/ R. Ramin Kamfar
	 	 	 	Name:	R. Ramin Kamfar
	 	 	 	Title:	Chief Executive Officer
	 	 	 	 	 
	 	Pledgee:
	 	 
	 	BLUEROCK RESIDENTIAL HOLDINGS, L.P.,
	 	a Delaware limited partnership
	 	 	 	 	 
	 	By:	Bluerock Residential Growth REIT, Inc.,
	 	 	a Maryland corporation, its general partner
	 	 	 	 	 
	Dated: May 15, 2014	 	By: 	/s/ 	Michael L. Konig
	 	 	Name:	Michael L. Konig
	 	 	Title:	Secretary, Chief Operating Officer and
	 	 	 	General Counsel

 

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APPENDIX 1.2

 

Defined Terms

 

“Affiliate”
shall mean: (a) an entity that directly or indirectly controls, is controlled by or is under common control with the party in question;
or (b) an entity at least a majority of whose economic interest is owned by the party in question; and the term “control”
means the power to direct the management of such entity through voting rights, ownership or contractual obligations.

 

“Agreement”
shall have the meaning given to it in the preamble to this Agreement.

 

“Assignment
of Interests” shall have the meaning given to it in Section 4.3(a) hereof.

 

“BRG Lansbrook” shall
have the meaning given to it in the Recitals to this Agreement.

 

“BR Lansbrook
JV Member” shall have the meaning given to it in the Recitals to this Agreement.

 

“BR Lansbrook
JV Member Operating Agreement” shall have the meaning given to it in Section 4.2(a) hereof.

 

“Business
Day” shall mean a day other than a Saturday, Sunday or other day on which commercial banks are authorized or required
to close under applicable laws, or are in fact closed, in New York, New York.

 

“Carroll”
shall have the meaning given to it in the Recitals to this Agreement.

 

“CCRs”
shall have the meaning given to it in Section 6.3(l) hereof.

 

“Charter Documents”
shall mean, with respect to any entity, its articles of incorporation, declaration of trust, bylaws, partnership agreement, statement
of partnership, certificate of limited partnership, limited liability company agreement, limited liability company certificate
or articles, or other charter or governing or organizational documents, and all applicable amendments or supplements to any of
the foregoing.

 

“Closing”
shall mean the occurrence of the following: (i) the satisfaction of all conditions precedent set forth herein, including, but not
limited to, the Transaction Conditions (or the waiver in writing of such condition by the Party entitled to the benefit of such
condition) and (ii) the execution and delivery of the other documents and items to be executed and delivered pursuant to Article
4 and the other provisions hereof; and (iii) the consummation of the contribution of the Lansbrook Interests for the Consideration
as provided in this Agreement.

 

“Closing Date”
shall mean the date on which the Closing occurs.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

“Commercially
Reasonable Efforts” shall mean, whenever there is imposed on any Party such standard, that such Party shall be required
to exert those efforts or diligence only to the extent they are economically feasible, practicable and reasonable under the circumstances
and shall not impose upon such Party material financial or other burdens or require any Party to institute any legal action.

 

“Companies”
shall mean each of BR Lansbrook JV Member, Lansbrook JV, and Lansbrook Titleholder.

 

“Company Information”
shall have the meaning given to it in Section 2.2 hereof.

 

“Consideration”
shall have the meaning given to it in Section 1.3 hereof.

 

“Disclosure Schedule” shall mean the schedule annexed to this Agreement which lists
any exceptions to the applicable representations, warranties or disclosures made in the main text of the Agreement. If there is
no Disclosure Schedule annexed to this Agreement, there shall be no such exceptions.

 

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“Due Diligence
Materials” shall mean the Property Information, the Company Information and any other reports, financial statements or
written materials delivered or made available to REIT by or on behalf of Sellers prior to the end of the Due Diligence Period.

 

“Encumber”
shall mean to voluntarily or involuntarily create, or permit to suffer the creation of, any Encumbrances.

 

“Encumbrances”
shall mean any and all security interests, pledges, liens, charges, easements, encroachments, claims, purchase options or other
encumbrances or restrictions of any kind on title to any asset, including, without limitation, any restriction on the use, transfer,
receipt of income or other exercise of any attribute of ownership of such asset (not including applicable Laws).

 

“Environmental
Laws” shall mean, without limitation, the Resource Conservation and Recovery Act and the Comprehensive Environmental
Response Compensation and Liability Act and other federal, state, county, municipal and other local laws governing or relating
to Hazardous Materials or the environment together with their implementing regulations, ordinances and guidelines.

 

“ERISA”
shall mean Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended.

 

“Exception
Matters” shall have the meaning given to it in Section 6.7(a) hereof.

 

“Existing
Title Exceptions” shall mean as to the Existing Title Policy, the exceptions set forth in such Existing Title Policy.

 

“Existing
Title Policy” shall mean the most recent owner’s title insurance policy insuring Lansbrook Titleholder, a copy
of which (together with copies of all exception documents) has been or will be delivered to REIT as part of the Property Information.

 

“Financial
Statements” shall have the meaning given to it in Section 6.2(i) hereof.

 

“FIRPTA Certificate”
shall have the meaning given to it in Section 4.3(b) hereof.

 

“Governmental
Authority” and “Governmental Authorities” shall mean any governmental authority having jurisdiction
over any of the Property, REIT, Sellers, the Companies or any of their respective Affiliates, including, without limitation, the
United States of America, the state, county and municipality where the Property is located, and any court, agency, department,
commission, board, bureau, utility district, flood control district, improvement district or similar district, or other instrumentality
of any of them.

 

“Hazardous
Materials” shall mean, without limitation, polychlorinated biphenyls, urea formaldehyde, radon gas, lead paint, radioactive
matter, asbestos, petroleum products, including crude oil or any fraction thereof, natural gas, natural gas liquids, liquefied
natural gas, or synthetic gas usable for fuel (or mixtures of natural gas or such synthetic gas), and any substance, material,
waste, pollutant or contaminant listed or defined as hazardous, infectious or toxic under any Environmental Law.

 

“Improvements”
shall mean, as to the Property, all buildings, fixtures, structures, parking areas, landscaping and other improvements located
on the applicable Land.

 

“Intangible Property” shall mean, as to the Property, all right, title and interest
of Lansbrook Titleholder in and to all intangible personal property owned by Lansbrook Titleholder and now or hereafter used in
connection with the operation, ownership, maintenance, management, or occupancy of the Lansbrook Property, including, without limitation,
any and all trade names and trademarks associated with such Lansbrook Property; the plans and specifications for the applicable
Improvements, including as-built plans; unexpired warranties, guarantees, indemnities and claims against third parties; contract
rights related to the construction, operation, repair, renovation, ownership or management of the Lansbrook Property; pending permit
or approval applications as well as existing permits, approvals and licenses (to the extent assignable); insurance proceeds and
condemnation awards; and books and records relating to the Lansbrook Property.

 

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“Interests”
shall mean the Lansbrook Interests.

 

“Joinder”
shall have the meaning given to it in Section 8.8 hereof.

 

“KeyBank Line
of Credit” shall mean that certain revolving line of credit lending facility provided by KeyBank, N.A., and its Affiliates
to Sellers and certain of their Affiliates.

 

“Land”
shall mean, for the Property, the land owned by Lansbrook Titleholder, as described in the Existing Title Policy insuring such
Lansbrook Titleholder, and all rights, benefits, privileges, easements, tenements, hereditaments, and appurtenances in anywise
appertaining to the land, including any and all mineral rights, development rights, water rights and the like; and all right, title,
and interest of Lansbrook Titleholder in and to all strips and gores and any land lying in the bed of any street, road or alley,
open or proposed, adjoining the land.

 

“Lansbrook
Interests” shall have the meaning given to it in the Recitals to this Agreement.

 

“Lansbrook
JV” shall have the meaning given to it in the Recitals to this Agreement.

 

“Lansbrook Property”
or “Property” shall mean that certain multi-family apartment complex containing approximately 570 units known
as Lansbrook Village located in Palm Harbor, Florida, as specifically set forth and identified by Exhibit A, and shall include
the Real Property, the Leases, the Rents, the Personal Property, and the Intangible Property.

 

“Lansbrook Titleholder”
shall have the meaning given to it in the Recitals to this Agreement.

 

“Laws”
shall mean all applicable federal, state and local laws, rules, ordinances, regulations and codes, including without limitation,
all zoning, building, health and safety, environmental, land use and persons with disabilities requirements.

 

“Leases”
shall mean, as to the Property, all leases, subleases or other occupancy agreements pursuant to which any person has the right
to occupy space in the Improvements.

 

“Lender”
shall mean any lender, and its successors and assigns, identified under each Loan.

 

“Limitation
Period” shall have the meaning given to it in Section 6.8 hereof.

 

“Loan”
and “Loans” shall mean, individually and collectively as applicable, the mortgage loans encumbering the Property.

 

“Loan Documents”
shall mean the documents and instruments evidencing and securing each of the Loans.

 

“Manager”
shall mean BRG Manager, LLC, a Delaware limited liability company, as manager to the REIT Parent.

 

“Mandatory
Cure Items” shall have the meaning given to it in Section 2.4 hereof.

 

“Material Adverse Effect” shall mean any circumstance, change or effect that (a) is
materially adverse to the business, assets, property, results of operations or financial condition of any of the Companies or the
Property, individually or in the aggregate, or (b) materially impedes the ability of the Sellers to consummate the transactions
contemplated hereby; provided, however, a Material Adverse Effect shall exclude any circumstance, change or effect resulting
from any one or more of the following: (i) any change in the United States or foreign economies or securities or financial markets
in general, that does not materially disproportionately affect the business, assets, property, results of operations or financial
condition of the Companies taken as a whole as compared to other similarly situated Persons in the industries in which the Companies
operate, (ii) any change that generally affects any industry in which any of the Companies operates, that does not materially disproportionately
affect the business, assets, property, results of operations or financial condition of the Companies taken as a whole as compared
to other similarly situated Persons in the industries in which the Companies operate; (iii) any change arising in connection with
hostilities, acts of war, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities,
acts of war, sabotage or terrorism or military actions existing or underway as of the date hereof; (iv) any action taken by
REIT, BRG Lansbrook or REIT Parent in respect of the transactions contemplated hereby or in respect of the applicable Companies;
(v) any changes in applicable Laws or accounting rules, which do not materially disproportionately affect the Companies taken as
a whole as compared to other similarly situated Persons in the industries in which the Companies operate; or (vi) any effect resulting
from the public announcement of this Agreement, compliance with terms of this Agreement or the consummation of the transactions
contemplated hereby.

 

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“Material
Damage” and “Materially Damaged” shall have the meaning given to them in Section 3.2 hereof.

 

“Objection
Notice” shall have the meaning given to it in Section 2.4 hereof.

 

“Objections”
shall have the meaning given to it in Section 2.4 hereof.

 

“Org Chart”
shall mean the organizational chart attached to this Agreement as Exhibit B.

 

“Permitted
Exceptions” shall mean, the Existing Title Exceptions, any additional exceptions approved or deemed approved by REIT
pursuant to Section 2.4 of this Agreement, documents and instruments securing any Loan, real estate Taxes not yet due and
payable and the rights of tenants in possession as tenants only under the Leases without any option to purchase or right of first
refusal with respect to the Property.

 

“Person”
shall mean a corporation, partnership, limited liability company, business trust or individual.

 

“Personal
Property” shall mean as to the Real Property, all right, title and interest of the Lansbrook Titleholder in and to all
tangible personal property now or hereafter used in connection with the operation, ownership, maintenance, management, or occupancy
of such Real Property, including, without limitation, all equipment, machinery, heating, ventilating and air conditioning units,
furniture, art work, furnishings, trade fixtures, office equipment and supplies, and, whether stored on or off-site, all tools
and maintenance equipment, supplies, and construction and finish materials not yet incorporated in the Improvements but held for
repairs and replacements.

 

“Pledge Agreement”
shall have the meaning given to it in Section 8.5 hereof.

 

“Property”
shall have the meaning given to it in the definition of “Lansbrook Property”.

 

“Property
Information” shall have the meaning given to it in Section 2.2 hereof.

 

“Property
Manager” shall have the meaning given to it in the Recitals to this Agreement.

 

“Real Property”
shall mean, the Land and the Improvements.

 

“REIT”
shall have the meaning given to it in the preamble to this Agreement.

 

“REIT Indemnified
Party” and “REIT Indemnified Parties” shall have the meaning given to them in Section 8.1 hereof.

 

“REIT Parent”
shall mean Bluerock Residential Growth REIT, Inc., a Maryland corporation.

 

“REIT’s
Representatives” shall have the meaning given to it in Section 2.1 hereof.

 

“Rent Roll”
shall mean the rent roll for the Property delivered to REIT as part of the Property Information.

 

“Rents”
shall mean, for the Property, all income from the applicable Real Property, including without limitation, all fixed or base rent,
percentage rent, additional rent or other amounts payable by tenants under Leases with respect to operating expenses, Taxes or
other charges under the Leases.

 

“Seller” and “Sellers” shall have the meaning given to them in the
preamble to this Agreement.

 

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“Sellers’
Reps” shall have the meaning given to it in Section 6.7(a) hereof.

 

“Service Contracts”
shall mean, all service contracts and other contracts, agreements or instruments relating to the ownership, use, management or
operation of the Property, including equipment leases or any other lease in which Lansbrook Titleholder is lessee, but excluding
the Leases, which are not cancellable upon less than ninety (90) days prior notice or which are valued in excess of fifty thousand
dollars ($50,000) annually.

 

“SOIF II” shall have
the meaning given to it in the preamble to this Agreement.

 

“SOIF II Lansbrook Interest”
shall have the meaning given to it in the Recitals to this Agreement.

 

“SOIF III”
shall have the meaning given to it in the preamble to this Agreement.

 

“SOIF III Lansbrook Interest”
shall have the meaning given to it in the Recitals to this Agreement.

 

“SOIF Indemnified Party”
and “SOIF Indemnified Parties” shall have the meaning given to them in Section 8.6 hereof.

 

“SOIF Parties” shall
have the meaning given to it in the preamble to this Agreement.

 

“Subsidiary”
and “Subsidiaries” shall mean, individually and collectively, each of the limited liability companies owned
directly or indirectly by each of the Companies, as shown on the Org Chart attached to this Agreement as Exhibit B.

 

“Tax”
and “Taxes” shall mean, individually and collectively, all federal, state, local, foreign, and other taxes,
including, without limitation, income taxes, estimated taxes, alternative minimum taxes, excise taxes, sales taxes, use taxes,
value-added taxes, gross receipts taxes, bulk sales taxes, transient occupancy taxes, franchise taxes, capital stock taxes, employment
and payroll-related taxes, withholding taxes, stamp taxes, Transfer Taxes and property taxes, whether or not measured in whole
or in part by net income, and all deficiencies or other additions to taxes, including interest, fines and penalties.

 

“Tax Warranties”
shall have the meaning given to it in Section 6.8 hereof.

 

“Title and
Authority Warranties” shall have the meaning given to it in Section 6.8 hereof.

 

“Transaction
Conditions” shall have the meaning given to it in Section 4.2(a) hereof.

 

“Transfer
Taxes” shall mean any and all taxes on the transfer, or deemed transfer, of the Property as a result of the conveyance
of the Lansbrook Interests pursuant to this Agreement payable pursuant to applicable Laws, but if and only to the extent that the
conveyance of the Lansbrook Interests pursuant to this Agreement is deemed to constitute a transfer of the Property that is subject
to such tax, but not including real estate taxes or income taxes.

 

    	66Exhibit 10.53

 

 

 

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

BR CARROLL LANSBROOK JV, LLC

 

A DELAWARE LIMITED LIABILITY COMPANY

 

DATED AS OF FEBRUARY 12, 2014

  

 

 

    	 

    	 

    

  

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

BR CARROLL LANSBROOK JV, LLC

 

THIS LIMITED LIABILITY
COMPANY AGREEMENT of BR CARROLL LANSBROOK JV, LLC ("JV" or "Company") is made and entered
into and is effective as of February 12, 2014, by and between BR Lansbrook JV Member, LLC, a Delaware limited liability
company ("Bluerock") and Carroll Lansbrook JV Member, LLC, a Georgia limited liability company ("Carroll")
(this "Agreement"). Capitalized terms used herein shall have the meanings ascribed to such terms in this Agreement.

 

Effective as of February
12, 2014, the Members, by execution of this Agreement, hereby form 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 Members hereby agree as follows:

 

Section 1.          Definitions.
As used in this Agreement:

 

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

 

"Additional Condo
Units" shall have the meaning provided in Section 5.1(b).

 

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

 

"Advisor”
shall mean any accountant, attorney or other advisor retained by a Member.

 

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

 

    	 

    	 

    

  

"Agreed Upon
Value" shall mean the fair market value (net of any debt) agreed upon pursuant to a written agreement between the Members
of property contributed by a Member to the capital of the Company, which shall for all purposes hereunder be deemed to be the amount
of the Capital Contribution applicable to such property contributed.

 

"Agreement"
shall mean this Limited Liability Company Agreement, as amended from time to time.

 

"Annual Business
Plan" shall mean the business plan for a Fiscal Year of the Company prepared by Property Manager and approved by the Members
as further described in Section 9.3.

 

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

 

"Backstop Agreement"
shall mean that certain agreement providing for the allocation of liability and contribution for losses arising from any "bad
boy" guaranties constituting part of the Loan Documents.

 

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

 

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

 

"Beneficial Owner"
shall have the meaning provided in Section 5.7.

 

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

 

"Bluerock Transferee"
shall have the meaning set forth in Section 12.2(b)(2).

 

“BR REIT”
shall mean Bluerock Residential Growth REIT, Inc., a Maryland corporation.

 

"BR Growth"
shall mean Bluerock Growth Fund, LLC, a Delaware limited liability company.

 

"BR SOIF II"
shall mean Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company.

 

"BR SOIF III"
shall mean Bluerock Special Opportunity + Income Fund III, LLC, a Delaware limited liability company.

 

    	 

    	 

    

 

"Capital Account"
shall have the meaning provided in Section 5.6.

 

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

 

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

 

"Carroll Parent"
shall mean MPC Partnership Holdings LLC, a Georgia limited liability company.

 

"Carroll Change
Event" shall mean (i) gross negligence, willful misconduct, fraud or bad faith by Carroll or any of its Affiliates in
connection with or relating to the Company or the Property; (ii) a Bankruptcy/Dissolution Event shall have occurred with respect
to Carroll or Property Manager; or (iii) failure to satisfy the Carroll Ownership/Control Requirement.

 

"Carroll Ownership/Control
Requirement" as of any particular date means that each of the following conditions is satisfied: (i) at least one of the
Key Individuals is not then dead, insane as determined by a qualified physician, incapacitated as determined by a qualified physician,
or the subject of a Bankruptcy/Dissolution Event; and (ii) at least one of the Key Individuals is actively involved in the operation
and management of (a) Carroll or Carroll Parent and (b) CMG.

 

"Carroll Transferee"
shall have the meaning set forth in Section 12.2(b)(l).

 

"Cash Flow"
shall mean, for any period for which Cash Flow is being calculated, gross cash receipts of the Company (but excluding Capital Contributions),
less the following payments and expenditures: (i) all payments of operating expenses of the Company (or the Subsidiary owning the
Property) including, but not limited to, any charges, assessments, reserve requirements or pass-throughs of any kind originated
by the Project's condominium home owners association, (ii) all payments of principal of, interest on and any other amounts due
with respect to indebtedness, leases or other commitments or obligations of the Company (or the Subsidiary owning the Property)
(including on loans by Members to the Company), (iii) all sums expended by the Company (or any Subsidiary owning the Property)
for capital expenditures, (iv) all prepaid expenses of the Company (or any Subsidiary owning the Property), and (v) all sums expended
by the Company (or any Subsidiary owning the Property) which are otherwise capitalized.

 

"Cause"
shall mean gross negligence, willful misconduct, fraud, bad faith or a Bankruptcy/Dissolution Event, or a termination of the Management
Agreement by or at the behest of a third-party lender under an applicable Collateral Agreement.

 

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

 

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

 

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

 

"Collateral Agreement"
shall mean any agreement, instrument, document or covenant concurrently or hereafter made or entered into under, pursuant to, or
in connection with this Agreement and any certifications made in connection therewith or amendment or amendments made at any time
or times heretofore or hereafter to any of the same (including, without limitation, the Management Agreement).

 

    	 

    	 

    

  

"Company"
shall mean BR Carroll Lansbrook JV, LLC a Delaware limited liability company organized under the Act.

 

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

 

"Confidential
Information" shall have the meaning provided in Section 10.01. "Controllable Expenses" shall mean
all expenses, other than Uncontrollable Expenses, incurred by the Company or any Subsidiary of the Company with respect to the
Property.

 

"Default Amount"
shall have the meaning provided in Section 5.2(b).

 

"Default Loan"
shall have the meaning provided in Section 5.2(b)(1).

 

"Default Loan
Rate" shall have the meaning provided in Section 5.2(b)(1).

 

"Defaulting Member"
shall have the meaning provided in Section 5.2(b).

 

"Delaware UCC"
shall mean the Uniform Commercial Code as in effect in the State of Delaware from time to time.

 

"Dissolution
Event" shall have the meaning provided in Section 13.2.

 

"Distributable
Funds" with respect to any month or other period, as applicable, shall mean an amount equal to the Cash Flow of the Company
for such month or other period, as applicable, as reduced by reserves for anticipated capital expenditures, future working capital
needs and operating expenses, contingent obligations and other purposes of the Company or any Subsidiary, the amounts of which
shall be reasonably determined from time to time by the Management Committee.

 

"Distributions"
shall mean the distributions payable (or deemed payable) to a Member (including, without limitation, its allocable portion of Distributable
Funds).

 

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

 

"Fiscal Year"
shall mean each calendar year ending December 31. "Flow Through Entity" shall have the meaning provided in Section
5.7.

 

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

 

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

 

    	 

    	 

    

  

"Income"
shall mean the gross income of the Company for any month, Fiscal Year or other period, as applicable, including gains realized
on the sale, exchange or other disposition of the Company's assets.

 

"Indemnified
Party" shall have the meaning provided in Section 14.4(a).

 

"Indemnifying
Party" shall have the meaning provided in Section 14.4(a).

 

"Inducement Agreements"
shall have the meaning provided in Section 14.4(a).

 

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

 

"Interest"
of any Member shall mean the entire limited liability company interest of such Member in the Company, which includes, without limitation,
any and all rights, powers and benefits accorded a Member under this Agreement and the duties and obligations of such Member hereunder.

 

"Internal Rate
of Return" and "IRR" shall mean, as of any date, the internal rate of return on the Total Investment
of a Member to such date, calculated to be that discount rate (expressed on a percent per annum basis) which, when divided by twelve
(12), compounded annually and applied to such Total Investment and the corresponding Distributions with respect thereto, causes
the net present value, as of such date, of such Distributions and Total Investment to equal zero (calculated with the "XIRR"
function in Microsoft Excel and using the latest version Microsoft Excel available as of the date hereof). For this purpose, Capital
Contributions and Distributions shall be assumed to have occurred as of the end of the month in which such Capital Contribution
or Distributions take place. For purposes of determining the Internal Rates of Return hereunder, calculations shall be on a portfolio-wide
basis (crossed) and denominated and calculated in US Dollars.

 

"Key Individual"
shall mean Patrick Carroll and Joshua Champion.

 

"Loan"
shall mean the acquisition loan in the initial principal amount of Forty Two Million and No/100 Dollars ($42,000,000.00) originally
made by General Electric Capital Corporation, which is secured by the Property, which Loan is subject to periodic increases, in
connection with the acquisition by the Company or any Subsidiary of the Company of additional condominium units, to the maximum
principal amount of Forty Seven Million Five Hundred Thousand and No/100 Dollars ($47,500,000.00).

 

"Loss"
shall mean the aggregate of losses, deductions and expenses of the Company for any month, Fiscal Year or other period, as applicable,
including losses realized on the sale, exchange or other disposition of the Company's assets.

 

"Major Decision"
means any decision for the Company to take, or refrain from taking, any action or incurring any obligation with respect to the
following matters (or the effectuation of any such action or obligation):

 

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

 

		(ii)	except as expressly provided in Section 12 with respect to
Transfers by Bluerock or a Bluerock Transferee to a Bluerock Transferee and with respect to Transfers by Carroll as permitted thereunder,
the admission or removal of any Member or the Company's issuance to any third party of any equity interest in the Company (including
interests convertible into, or exchangeable for, equity interests in the Company);

 

    	 

    	 

    

  

		(iii)	except upon the occurrence of any Dissolution Event, any liquidation,
dissolution or termination of the Company or any Subsidiary;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		(xi)	incur on behalf of the Company or a Subsidiary during any year any
capital expenditures in excess of $50,000 in the aggregate unless pursuant to the Annual Business Plan approved by the Members;

 

		(xii)	make any loan to any Member, except as expressly provided for in
this Agreement;

 

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

 

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

 

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

 

    	 

    	 

    

  

		(xvi)	make distributions to the Members, except in accordance with Section
6 hereof. 

 

“Management
Agreement” shall mean that certain property management agreement attached hereto as Exhibit C to be entered into
between the Company (or any Subsidiary of the Company), as owner, and Property Manager, as manager, pursuant to which Property
Manager will provide certain management services for the Property.

 

"Management Committee"
shall have the meaning provided in Section 9.2(a).

 

"Manager"
shall have the meaning provided in Section 9.1(a).

 

"Member"
and "Members" shall mean Bluerock, Carroll and any other Person admitted to the Company pursuant to this Agreement.
For purposes of the Act, the Members shall constitute a single class or group of members.

 

"Member in Question"
shall have the meaning provided in Section 16.12.

 

"Member Minimum
Gain" shall mean an amount, determined in accordance with Regulations Section l.704-2(i)(3) with respect to each Member
Nonrecourse Debt, equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a Nonrecourse
Liability.

 

"Member Nonrecourse
Debt" shall have the meaning given the term "partner nonrecourse debt" in Regulations Section l.704-2(b)(4).

 

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

 

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

 

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

 

"New York UCC"
shall have the meaning set forth in Section 16.17.

 

"Non-Initiating
Member" shall have the meaning provided in Section l 5.2(a). "Nonrecourse Deduction" shall have
the meaning given such term in Regulations Section l.704-2(b)(l ).

 

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

 

    	 

    	 

    

  

"Offer"
shall have the meaning provided in Section 15.2(a).

 

"Offeror"
shall have the meaning provided in Section 15.1(b).

 

"Offeree"
shall have the meaning provided in Section 15.1(b).

 

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

 

"Percentage Interest"
shall have the meaning provided in Section 5.3.

 

"Person"
shall mean any individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company,
trust, unincorporated organization, government or any agency or political subdivision thereof or any other legal entity.

 

"Preferred Return"
shall mean, with regard to both the initial Capital Contributions of a Member set forth in Exhibit A attached hereto and
all Condo Acquisition Capital Contributions of such Member attributable to the acquisition of additional condominium units as contemplated
hereunder, the greater of (a) an Internal Rate of Return equal to ten percent (10%) or (b) a return on such capital contributions
equal to a 1.3 multiple thereof.

 

"Project"
shall mean the multi-family complex located in Palm Harbor, Florida and commonly known as Lansbrook Village, within which the Property
is located.

 

"Property"
shall have the meaning provided in Section 3.

 

"Property Management
Fee" shall have the meaning provided in Section 9.7.

 

"Property Manager"
shall mean CMG so long as the initial Management Agreement is in full force and effect and, thereafter, the entity performing similar
services for the Company (or any Subsidiary that owns the Property) with respect to the Property.

 

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

 

"Protective Capital
Call" shall mean a Capital Call necessary or advisable to (a) protect the Company's (or any Subsidiary's) interest in
the Property (e.g., payment of taxes, repair of the Property following uninsured damage thereto, payment of insurance premiums,
etc.); (b) to prevent a default with respect to any financing obtained by the Company or any Subsidiary (e.g., payment of debt
service following an operating shortfall, reserves required by the lender, a reduction in principal required by the lender to meet
loan to value requirements); or (c) funds required to refinance the Property when the current financing has matured or will mature
in the near future (e.g., commitment fees, loan application fees, equity infusions to meet market loan to value requirements, etc.).

 

"Pursuer"
shall have the meaning provided in Section 10.3.

 

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

 

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

 

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

 

    	 

    	 

    

  

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

 

"Representatives"
shall have the meaning provided in Section 9.2(a).

 

"Response Period"
shall have the meaning provided in Section l 5.2(b).

 

“Sale Notice"
shall have the meaning provided in Section 15.2(a).

 

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

 

"Seller"
shall mean Waterton Lansbrook Venture, L.L.C., a Delaware limited liability company

 

"SOIFs"
shall mean, collectively, BR SOIF II and BR SOIF III.

 

"Subsidiary"
shall mean, with respect to any Person, any corporation, partnership, limited liability company or other entity of which at least
a majority of the capital stock or other equity securities is owned by such Person.

 

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

 

"Total Investment"
shall mean the sum of the aggregate Capital Contributions made by a Member.

 

"Transfer"
means, as a noun, any transfer, sale, assignment, exchange, charge, pledge, gift, hypothecation, conveyance, encumbrance or other
disposition, voluntary or involuntary, by operation of law or otherwise and, as a verb, voluntarily or involuntarily, by operation
of law or otherwise, to transfer, sell, assign, exchange, charge, pledge, give, hypothecate, convey, encumber or otherwise dispose
of.

 

"Uncontrollable
Expenses" shall mean the following expenses with respect to the Company or Subsidiary: taxes and insurance; licenses;
HOA assessments; utilities; unanticipated material repairs that are essential to preserve or protect the Property; debt service;
and costs due to a change in law.

 

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

 

Section 2.            Organization
of the Company.

 

2.1           Name.
The name of the Company shall be "BR Carroll Lansbrook JV, LLC". The business and affairs of the Company shall
be conducted under such name or such other name as the Members deem necessary or appropriate to comply with the requirements of
law in any jurisdiction in which the Company may elect to do business.

 

2.2           Place
of Registered Office; Registered Agent. The address of the registered office of the Company in the State of Delaware is 160
Greentree Drive, Suite 101, Dover, Delaware 19904. The name and address of the registered agent for service of process on the Company
in the State of Delaware is National Registered Agents, Inc., 160 Greentree Drive, Suite 101, Dover, Delaware 19904. The Management
Committee may at any time on five (5) days prior notice to all Members change the location of the Company's registered office or
change the registered agent.

 

    	 

    	 

    

  

2.3           Principal
Office. The principal address of the Company shall be c/o Bluerock Real Estate, L.L.C., 712 Fifth Avenue, 9th Floor, New York,
New York 10019 and the principal office of Property Manager shall be c/o Carroll Organization, LLC, 3340 Peachtree Road, Suite
1620, Atlanta, Georgia, 30326 , or, in each case, at such other place or places as may be determined by the Management Committee
from time to time.

 

2.4           Filings.
On or before execution of this Agreement, an authorized person within the meaning of the Act shall have duly filed or caused to
be filed the Certificate of Formation of the Company with the office of the Secretary of State of Delaware, as provided in Section
18-201 of the Act, and the Members hereby ratify such filing. The Manager shall use its best efforts to take such other actions
as may be reasonably necessary to perfect and maintain the status of the Company as a limited liability company under the laws
of Delaware. Notwithstanding anything contained herein to the contrary, the Company shall not do business in any jurisdiction that
would jeopardize the limitation on liability afforded to the Members under the Act or this Agreement.

 

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

 

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

 

Section 3.            Purpose.

 

The purpose of the Company,
subject in each case to the terms hereof, shall be to engage, directly or through a Subsidiary, in the business of acquiring, owning,
operating, developing, renovating, repositioning, managing, leasing, selling, financing and refinancing the real estate and any
real estate related investments (or portions thereof) consisting of an approximately 572 condominium unit (subject to increase
based on future acquisitions of additional condominium units) multi-family complex located in Palm Harbor, Florida and commonly
known as Lansbrook Village, which will be owned by the Company or a Subsidiary of the Company (any property acquired as aforesaid
shall hereinafter be referred to as the "Property"), and all other activities reasonably necessary to carry out such
purpose.

 

Section 4.            Conditions.

 

4.1           Bluerock
Conditions. The obligation of Bluerock to consummate the transactions contemplated herein and to make the initial Capital Contributions
under Section 5.1(a)(ii) is subject to fulfillment of all of the following conditions on or prior to the closing
date under the Purchase Agreement for the Property:

 

(a)           Carroll
shall deposit in the Company's bank account or the designated escrow account of Old Republic Title Insurance Company ("Title
Company") the aggregate amount of its initial Capital Contribution set forth on Exhibit A hereto;

 

(b)           The
Purchase Agreement for the Property shall have been assigned to the Company (or a Subsidiary of the Company);

 

(c)           Intentionally
Omitted;

 

(d)           The
Management Agreement shall have been executed by the Company (or a Subsidiary of the Company) and Property Manager;

 

    	 

    	 

    

  

(e)           All
of the representations and warranties of Carroll and Property Manager contained in this Agreement and the Collateral Agreements
shall be true and correct as of the date hereof;

 

(f)            The
Company (or a Subsidiary of the Company) shall have borrowed (or be concurrently borrowing) the Loan, as contemplated by the loan
documents (the "Loan Documents"); and

 

(g)           The
form of Backstop Agreement shall have been approved by, and executed by, the applicable parties and delivered to Bluerock.

 

4.2           Carroll
Conditions. The obligation of Carroll to consummate the transactions contemplated herein and to make the initial Capital Contributions
under Section 5. l(a)(ii) is subject to fulfillment of all of the following conditions on or prior to the closing date under
the Purchase Agreement for the Property:

 

(a)           Bluerock
shall deposit into the Company's bank account or Title Company's designated escrow account the amount of its aggregate initial
Capital Contribution set forth on Exhibit A hereto;

 

(b)           The
Purchase Agreement for the Property shall have been assigned to the Company (or a Subsidiary of the Company);

 

(c)           Intentionally
Omitted;

 

(d)           The
Company (or a Subsidiary of the Company) shall have borrowed (or be concurrently borrowing) the Loan contemplated by the Loan Documents;

 

(e)           The
Management Agreement shall have been executed between the Company (or a Subsidiary of the Company) and Property Manager;

 

(f)            All
of the representations and warranties of Bluerock contained in this Agreement and the Collateral Agreements shall be true and correct
as of the date hereof; and

 

(g)           The
form of Backstop Agreement shall have been approved by, and executed by, the applicable parties and delivered to Carroll.

 

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

 

5.1          Initial
Capital Contributions.

 

(a)          (i)
Upon execution of this Agreement, Bluerock and Carroll shall each make an initial Capital Contribution to the Company of cash in
an amount equal to $900,000.00 for Bluerock and $100,000.00 for Carroll, with such cash to be used to fund the deposit required
under the Purchase Agreement for the Property, and (ii) subject to the conditions set forth in Section 4, Bluerock and Carroll
shall each make a supplemental, initial Capital Contribution to the Company of cash in the amounts set forth in Exhibit A attached
hereto (inclusive of the initial Capital Contributions required under subsection (i) above and, in the case of Carroll, inclusive
of an initial Capital Contribution to the Company of certain contractual rights and intangibles, including the assignment of the
purchase agreement to acquire the Property to the Company or its Subsidiary valued at $225,000. The initial Capital Contribution
of the Members to the Company may include amounts for working capital.

 

    	 

    	 

    

  

(b)          In
addition to the initial Capital Contributions set forth on Exhibit A, the Company intends to require additional Capital Contributions
from the Members in order for the Company to directly or indirectly acquire additional condominium units at the Property (the "Additional
Condo Units") as such units become available for acquisition and are approved by the lender under the Loan for inclusion
as additional collateral for, and for additional advances under, the Loan Documents (any such capital contributions, the "Condo
Acquisition Capital Contributions"). If the purchase price for any particular Additional Condo Unit does not exceed $100.00
per square foot, the Management Committee shall have the authority to approve the acquisition of any such Additional Condo Units.
However, if the purchase price for any Additional Condo Unit exceeds $100.00 per square foot, the Members must unanimously approve
the acquisition of any such Additional Condo Units, unless the price in excess of $100.00 per square foot is (i) applicable to
no more than ten (10) Additional Condo Units and (ii) if purchased, would allow the Company to directly or indirectly own at least
ninety percent (90%) of the condominium units in the Project, in which case, if subsections (i) and (ii) are both satisfied, then
the Management Committee shall have the sole authority to approve the acquisition of those Additional Condo Units. Upon approval
of the acquisition of any such additional condominium units by the Members or the Management Committee as required in accordance
with this Section 5.1(b), and receipt of the applicable approvals under the Loan Documents, the Manager shall issue a call to the
Members for the Condo Acquisition Capital Contributions in an amount necessary to acquire such additional units and to pay all
applicable lender and acquisition related expenses. Upon receipt of any such demands, the Members shall be obligated to remit their
share of the Condo Acquisition Capital Contributions to the Company, 90% by Bluerock and 10% by Carroll.

 

5.2           Additional
Capital Contributions.

 

(a)           Additional
Capital Contributions may be called for from the Members (i) by either Member if the same is a Protective Capital Call, or (ii)
as reasonably determined by the Management Committee, by written notice to the Members from time to time as and to the extent capital
is necessary to effect an investment or expenditures for the Property or the Company other than with respect to Condo Acquisition
Capital Contributions described in Section 5.l(b) or (iii) in accordance with the requirements of Section 5.l (b) above. Except
as otherwise agreed by the Members (including with respect to the alternative percentages set forth for the Condo Acquisition Capital
Contributions described in Section 5.l (b) above), such additional Capital Contributions shall be in an amount for each Member
equal to the product of the amount of the aggregate Capital Contribution called multiplied by each Member's then current Percentage
Interest. Such additional Capital Contributions shall be payable by the Members to the Company upon the earlier of (i) twenty (20)
days after written request from the Company, or (ii) the date when the Capital Contribution is required, as set forth in a written
request from the Company.

 

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

 

    	 

    	 

    

  

(1)
to advance to the Company on behalf of, and as a loan to the Defaulting Member, an amount equal to the Default Amount to be evidenced
by a promissory note in form reasonably satisfactory to the non-failing Member (each such loan, a "Default Loan").
The Capital Account of the Defaulting Member shall be credited with the amount of such Default Amount attributable to a Capital
Contribution and the aggregate of such amounts shall constitute a debt owed by the Defaulting Member to the non-failing Member.
Any Default Loan shall bear interest at the rate of twenty percent (20%) per annum, but in no event in excess of the highest rate
permitted by applicable laws (the "Default Loan Rate"), and shall be payable by the Defaulting Member on demand
from the non-failing Member and from any Distributions due to the Defaulting Member hereunder. Interest on a Default Loan, to the
extent unpaid, shall accrue and compound on a quarterly basis. A Default Loan shall be prepayable, in whole or in part, at any
time or from time to time without penalty. Any such Default Loans shall be with full recourse to the Defaulting Member and shall
be secured by the Defaulting Member's interest in the Company including, without limitation, such Defaulting Member's right to
Distributions. In furtherance thereof, upon the making of such Default Loan, the Defaulting Member hereby pledges, assigns and
grants a security interest in its Interest to the non-failing Member and agrees to promptly execute such documents and statements
reasonably requested by the non-failing Member to further evidence and secure such security interest. Any advance by the non-failing
Member on behalf of a Defaulting Member pursuant to this Section 5.2(b)(1) shall be deemed to be a Capital Contribution
made by the Defaulting Member except as otherwise expressly provided herein. All Distributions to the Defaulting Member hereunder
shall be applied first to payment of any interest due under any Default Loan and then to principal until all amounts due thereunder
are paid in full. While any Default Loan is outstanding, the Company shall be obligated to pay directly to the non-failing Member,
for application to and until all Default Loans have been paid in full, the amount of (x) any Distributions payable to the Defaulting
Member, and (y) any proceeds of the sale of the Defaulting Member's Interest in the Company;

   

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

 

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

 

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

 

    	 

    	 

    

  

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

 

5.3           Percentage
Ownership Interest. The Members shall have the initial percentage ownership interests (as the same are adjusted as provided
in this Agreement, a "Percentage Interest") in the Company set forth on Exhibit A immediately following
the Capital Contributions provided for in Section 5.1 (a). The Percentage Interests of the Members in the Company shall
be adjusted monthly, and if appropriate to reflect any pending adjustments that have been determined but not yet effected, prior
to any request for Additional Capital Contributions pursuant to Section 5.2 or any distributions to Members pursuant to Section
6.1, so that the respective Percentage Interests of the Members at any time shall be in proportion to their respective cumulative
Total Investment made (or deemed to be made) pursuant to Sections 5.1 and 5.2, as the same may be further adjusted
pursuant to Section 5.2(b)(3). Percentage Interests shall not be adjusted by distributions made (or deemed made) to a Member.

 

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

 

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

 

5.6           Capital
Accounts. A separate capital account (the "Capital Account") shall be maintained for each Member in accordance
with Section 1.704-1(b)(2)(iv) of the Regulations. Without limiting the foregoing, the Capital Account of each Member shall be
increased by (i) the amount of any Capital Contributions made by such Member, (ii) the amount of Income allocated to such Member
and (iii) the amount of income or profits, if any, allocated to such Member not otherwise taken into account in this Section
5.6. The Capital Account of each Member shall be reduced by (i) the amount of any cash and the fair market value of any property
distributed to the Member by the Company (net of liabilities secured by such distributed property that the Member is considered
to assume or take subject to), (ii) the amount of Loss allocated to the Member and (iii) the amount of expenses or losses, if any,
allocated to such Member not otherwise taken into account in this Section 5.6. The Capital Accounts of the Members shall
not be increased or decreased pursuant to Regulations Section 1.704-l(b)(2)(iv)(f) to reflect a revaluation of the Company's assets
on the Company's books in connection with any contribution of money or other property to the Company pursuant to Section 5.2
by existing Members. If any property other than cash is distributed to a Member, the Capital Accounts of the Members shall be adjusted
as if such property had instead been sold by the Company for a price equal to its fair market value, the gain or loss allocated
pursuant to Section 7, and the proceeds distributed in the manner set forth in Section 6.1 or Section 13.3(d)(3).
No Member shall be obligated to restore any negative balance in its Capital Account. No Member shall be compensated for any positive
balance in its Capital Account except as otherwise expressly provided herein. The foregoing provisions and the other provisions
of this Agreement relating to the maintenance of Capital Accounts are intended to comply with the provisions of Regulations Section
1.704-1(b)(2) and shall be interpreted and applied in a manner consistent with such Regulations.

 

    	 

    	 

    

  

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

 

Section 6.             Distributions.

 

6.1           Distribution
of Distributable Funds

 

(a)           The
Management Committee shall calculate and determine the amount of Distributable Funds for each applicable period. Except as provided
in Sections 5.2(b), 6.1 or 13.3 or otherwise provided hereunder, Distributable Funds, if any, shall be distributed
to the Members, on a monthly basis based on a calendar year, so long as the Loan is outstanding. Thereafter, such distributions
shall be made on the 15th day of each month or from time to time as determined by the Management Committee.

 

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

 

(c)           Distributable
Funds shall be distributed in the following order and priority:

 

(1)           First,
to the Members in proportion to their respective Percentage Interests until each Member shall realize through Distributions and
actually receive the Preferred Return; and

 

(2)           Second,
the balance, if any, of such Distributable Funds remaining after the distributions pursuant to (1) above shall be distributed as
follows:

 

a. if
a Carroll Change Event has occurred, such Distributable Funds shall be distributed to the Members in proportion to their Percentage
Interests; and

 

b.
if a Carroll Change Event has not occurred, such Distributable Funds shall be distributed as follows: (A) first, an amount
equal to thirty percent (30%) of such Distributable Funds shall be distributed to Carroll and an amount equal to seventy percent
(70%) of such Distributable Funds shall be distributed to Bluerock until Bluerock shall have actually realized and received through
Distributions a fifteen percent (15%) Internal Rate of Return and (B) thereafter, an amount equal to forty percent (40%) of such
Distributable Funds shall be distributed to Carroll and an amount equal to sixty percent (60%) of such Distributable Funds shall
be distributed to Bluerock.

 

    	 

    	 

    

  

6.2           Distributions
in Kind. In the discretion of the Management Committee, Distributable Funds may be distributed to the Members in cash or in
kind and Members may be compelled to accept a distribution of any asset in kind even if the percentage of that asset distributed
to it exceeds a percentage of that asset that is equal to the percentage in which such Member shares in distributions from the
Company. In the case of all assets to be distributed in kind, the amount of the distribution shall equal the fair market value
of the asset distributed as determined by the Management Committee. In the case of a distribution of publicly traded property,
the fair market value of such property shall be deemed to be the average closing price for such property for the thirty (30) day
period immediately prior to the distribution, or if such property has not yet been publicly traded for thirty (30) days, the average
closing price of such property for the period prior to the distribution in which the property has been publicly traded.

 

Section 7.             Allocations.

 

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

 

7.2           Allocation
of Net Income and Net Losses in Liquidation. Net Income and Net Losses realized by the Company in connection with the liquidation
of the Company pursuant to Section 13 shall be allocated among the Members in a manner such that, taking into account all prior
allocations of Net Income and Net Losses of the Company and all distributions made by the Company through such date, the Capital
Account of each Member is, as nearly as possible, equal to the amount which such Member is entitled to receive pursuant to Section
13.3(d)(3).

 

7.3           U.S.
Tax Allocations.

 

(a)           Subject
to Section 704(c) of the Code, for U.S. federal and state income tax purposes, all items of Company income, gain, loss, deduction
and credit shall be allocated among the Members in the same manner as the corresponding item of income, gain, loss, deduction or
credit was allocated pursuant to the preceding paragraphs of this Section 7.

 

(b)           In
accordance with Code Section 704(c) and the Treasury regulations promulgated thereunder, income and loss with respect to any property
contributed to the capital of the Company (including, if the property so contributed constitutes a partnership interest, the applicable
distributive share of each item of income, gain, loss, expense and other items attributable to such partnership interest whether
expressly so allocated or reflected in partnership allocations) shall, solely for U.S. federal income tax purposes, be allocated
among the Members so as to take account of any variation between the adjusted basis of such property to the Company for U.S. federal
income tax purposes and its Agreed Upon Value at the time of contribution. Such allocation shall be made in accordance with the
"traditional method" set forth in Regulations Section l.704-3(b) unless the Members unanimously agree to another permissible
method under such Regulations.

 

    	 

    	 

    

  

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

 

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

 

8.1           Books
and Records. The books and records of account of the Company shall be maintained in accordance with industry standards and
shall be based on the Property Manager Reports. The books and records shall be maintained at the Company's principal office or
at a location designated by the Management Committee, and all such books and records (and the dealings and other affairs of the
Company and its Subsidiaries) shall be available to any Member at such location for review, investigation, audit and copying, at
such Member's sole cost and expense, during normal business hours on at least twenty-four (24) hours prior notice. In connection
with such review, investigation or audit, such Member (and its representatives and agents) shall have the unfettered right to meet
and consult with any and all employees of Property Manager (or any of their respective Affiliates) and to attend meetings and independently
meet and consult with any and all third parties having dealings or any other relationship with the Company or any of its Subsidiaries
or with Property Manager in respect of the Company or any of its Subsidiaries.

 

8.2           Reports
and Financial Statements.

 

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

 

(1)           An
unaudited balance sheet of the Company;

 

(2)           An
unaudited statement of the Company's profit and loss; and

 

(3)           A
statement of the Members’ Capital Accounts and changes therein for such Fiscal Year.

 

(b)          Within
fifteen (15) days of the end of each quarter of each Fiscal Year, and provided that any such request was made prior to the end
of the quarter, the Property Manager shall cause to be furnished to Bluerock such information as requested by Bluerock as is necessary
for any reporting requirements of the SOIFs or BR Growth or for any reporting requirements of any REIT Member (whether a direct
or indirect owner) to determine its qualification as a REIT and its compliance with REIT Requirements as shall be reasonably requested
by Bluerock. Further, the Property 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.

 

    	 

    	 

    

  

(c)           The
Members acknowledge that the Property Manager is obligated to perform Property-related accounting and furnish Property-related
accounting statements under the terms of the Management Agreement (the "Property Manager Reports"). Manager shall
be entitled to rely on the Property Manager Reports with respect to its obligations under this Section ' and the Members acknowledge
that the reports to be furnished shall be based on the Property Manager Reports, without any duty on the part of the Manager to
further investigate the completeness, accuracy or adequacy of the Property Manager Reports.

 

8.3           Tax
Matters Member. Bluerock is hereby designated as the "tax matters partner" of the Company and the Subsidiaries, as
defined in Section 6231(a)(7) of the Code (the "Tax Matters Member") and shall prepare or cause to be prepared
all income and other tax returns of the Company and its Subsidiaries pursuant to the terms and conditions of Section 8.5.
Except as otherwise provided in this Agreement, all elections required or permitted to be made by the Company and its Subsidiaries
under the Code or state tax law shall be timely determined and made by Bluerock after consultation with Carroll. The Members intend
that the Company be treated as a partnership for U.S. federal, state and local tax purposes, and the Members will not elect or
authorize any person to elect to change the status of the Company from that of a partnership for U.S. federal, state and local
income tax purposes. Bluerock agrees to consult with Carroll with respect to any written notice of any material tax elections and
any material inquiries, claims, assessments, audits, controversies or similar events received from any taxing authority. In addition,
upon the request of any Member, the Company and each of its Subsidiaries shall make an election pursuant to Code Section 754 to
adjust the basis of the Company's property in the manner provided in Code Sections 734(b) and 743(b). The Company hereby indemnifies
and holds harmless Bluerock from and against any claim, loss, expense, liability, action or damage resulting from its acting or
its failure to take any action as the "tax matters partner" of the Company and its Subsidiaries, provided that
any such action or failure to act does not constitute gross negligence or willful misconduct by Bluerock.

 

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

 

8.5           Tax
Returns. Bluerock shall cause to be prepared all income and other tax returns of the Company and its Subsidiaries required
by applicable law and shall submit such returns to the Management Committee for its review, comment and approval at least twenty
(20) days prior to the due date or extended due date thereof and shall thereafter cause the same to be filed in a timely manner
(including extensions). No later than the due date or extended due date, Manager shall deliver or cause to be delivered to each
Member a copy of the tax returns for the Company and such Subsidiaries with respect to such Fiscal Year, together with such information
with respect to the Company and such Subsidiaries as shall be necessary for the preparation by such Member of its U.S. federal
and state income or other tax and information returns.

 

8.6           Expenses.
Notwithstanding any contrary provision of this Agreement, the Members acknowledge and agree that the reasonable expenses and charges
incurred directly or indirectly by or on behalf of the Manager, Bluerock, Carroll or the Property Manager in connection with its
obligations under this Section 8 will be reimbursed by the Company to the applicable party. Further, it is expressly understood
and agreed that all reasonable expenses of Bluerock, Carroll and their principals and Affiliates associated with the Company or
the Property, along with all accounting and administrative expenses for Carroll, shall be reimbursed by the Company, including
without limitation, filing fees, tax returns, closing costs, due diligence and travel.

 

    	 

    	 

    

  

Section 9.             Management
and Operations.

 

9.1           Management.

 

(a)           The
Company shall be managed by Bluerock ("Manager"), who shall have the authority to exercise all of the powers and
privileges granted by the Act, any other law or this Agreement, together with any powers incidental thereto, and to take any other
action not prohibited under the Act or other applicable law, so far as such powers or actions are necessary or convenient or related
to the conduct, promotion or attainment of the business, purposes or activities of the Company. Manager shall manage the operations
and affairs of the Company, subject to the oversight of the Management Committee. To the extent that Bluerock or a Bluerock Transferee
Transfers all or a portion of its Interest in accordance with Section 12 to a Bluerock Transferee, such Bluerock Transferee
may be appointed as the Manager under this Section 9. l(a) by Bluerock or a Bluerock Transferee then holding all or a portion
of an Interest without any further action or authorization by any Member.

 

(b)           The
Management Committee may appoint individuals to act on behalf of the Company with such titles and authority as determined from
time to time by the Management Committee.

 

(c)           Notwithstanding
the foregoing, all Major Decisions shall require the consent of both Members.

 

9.2           Management
Committee.

 

(a)           Bluerock
and Carroll hereby establish a management committee (the "Management Committee"). The Management Committee shall
consist of four (4) individuals appointed to act as "representatives" of the Member that appointed him or her (the "Representatives")
as follows: (i) Bluerock shall be entitled to designate two (2) Representatives to represent Bluerock; and (ii) Carroll shall be
entitled to designate two (2) Representatives to represent Carroll. The initial members of the Management Committee are set forth
on Exhibit A. Bluerock and Carroll each represents, warrants and covenants that the Representatives designated by them on
Exhibit A have, and shall at all times have, the full power and authority to make decisions and vote as a member of the
Management Committee, and that such Representatives' votes as members of the Management Committee will be binding on each of them
and any transferee of all or a portion of their Interest; unless and until such time as Bluerock or Carroll or their transferee
notifies the other Member of a change in a Representative, after which time this sentence shall apply only with respect to the
replacement Representative.

 

(b)           Each
member of the Management Committee shall hold office until death, resignation or removal at the pleasure of the Member that appointed
him or her. If a vacancy occurs on the Management Committee, the Person with the right to appoint and remove such vacating Representative
shall appoint his or her successor. A Member shall lose its right to have Representatives on the Management Committee, and its
Representatives on the Management Committee shall be deemed to be automatically removed, as of the date on which such Member ceases
to be a Member or as otherwise provided in this Agreement. If Bluerock or a Bluerock Transferee Transfers all or a portion of its
Interest to a Bluerock Transferee pursuant to Section 12.2, such Bluerock Transferee shall automatically, and without any
further action or authorization by any Member, succeed to the rights and powers of Bluerock under this Section 9 as may
be agreed to between Bluerock or the Bluerock Transferee which is transferring the Interest, on the one hand, and the Bluerock
Transferee to which the Interest is being transferred, on the other hand, including the shared or unilateral right to appoint the
Representatives that Bluerock was theretofore entitled to appoint pursuant to Section 9.2(a).

 

    	 

    	 

    

  

(c)           The
Management Committee shall meet once every quarter (unless waived by mutual agreement of the Members) and at such other times as
may be necessary for the conduct of the Company's business on at least five (5) days prior written notice of the time and place
of such meeting given by any Representative. Notice of regular meetings of the Management Committee is not required. Representatives
may waive in writing the requirements for notice before, at or after a special meeting, and attendance at such a meeting without
objection by a Representative shall be deemed a waiver of such notice requirement.

 

(d)           The
Management Committee shall have the right, but not the obligation, to elect one of the Representatives or another person to serve
as Secretary of the Management Committee. Such person shall hold office until his or her death, resignation or removal by a vote
of the Management Committee. The Secretary or a person designated by him or her shall take written minutes of the proceedings of
the meetings of the Management Committee, and such minutes shall be filed with the records of the Company.

 

(e)           The
only Representatives required to constitute a quorum for a meeting of the Management Committee shall be one (1) Representative
appointed by Bluerock and one (1) Representative appointed by Carroll; provided, however, that if Carroll has not appointed at
least one (1) Representative to the Management Committee at the time of such meeting (for example, if each Carroll Representative
has been removed and not replaced), then a quorum for a meeting of the Management Committee shall be one (I) Representative appointed
by Bluerock. Each of the two (2) Representatives appointed by Bluerock shall be entitled to cast two (2) votes on any matter that
comes before the Management Committee and each of the Representatives appointed by Carroll shall be entitled to cast one (1) vote
on any matter that comes before the Management Committee. Approval by the Management Committee of any matter shall require the
affirmative vote (including votes cast by proxy) of at least a majority of the votes of the Representatives then in office voting
at a duly held meeting of the Management Committee.

 

(f)            Any
meeting of the Management Committee may be held by conference telephone call, video conference or through similar communications
equipment by means of which all persons participating in the meeting can communicate with each other. Participation in a telephonic
and/or video conference meeting held pursuant to this Section 9 shall constitute presence in person at such meeting.

 

(g)           Any
action required or permitted to be taken at a meeting of the Management Committee may be taken without a meeting, without prior
notice and without a vote if a consent or consents in writing, setting forth the action so taken, shall be signed by the Representatives
having not less than the minimum of votes that would be necessary to authorize or take such action at a meeting at which all Representatives
entitled to vote thereon were present and voted. All consents shall be filed with the minutes of the proceedings of the Management
Committee.

 

(h)           Except
as otherwise expressly provided in this Agreement, none of the Members or their Representatives (in their capacities as members
of the Management Committee) only, shall have any duties or liabilities to the Company or any other Member (including any fiduciary
duties), whether or not such duties or liabilities otherwise arise or exist in law or in equity, and each Member hereby expressly
waives any such duties or liabilities; provided, however, that this Section 9.2(h) shall not eliminate or
limit the liability of such Representatives or the Members (A) for acts or omissions that involve fraud, intentional misconduct
or a knowing and culpable violation of law, or (B) for any transaction not permitted or authorized under or pursuant to this Agreement
from which such Representative or Member derived a personal benefit unless the Management Committee has approved in writing such
transaction in accordance with this Agreement; provided, further, however, that the duty of care of each of
such Representatives and the Members is to not act with fraud, intentional misconduct or a knowing and culpable violation of law.
Except as provided in this Agreement, whenever in this Agreement a Representative of a Member and/or a Member is permitted or required
to make a decision affecting or involving the Company, any Member or any other Person, such Representative and/or such Member shall
be entitled to consider only such interests and factors as he, she or it desires, including a particular Member's interests, and
shall, to the fullest extent permitted by applicable law, have no duty or obligation to give any consideration to any interest
of or factors affecting the Company or any Member.

 

    	 

    	 

    

  

9.3           Annual
Business Plan. (a) No later than thirty (30) days prior to the end of the then current Fiscal Year (except for the 2014 Annual
Business Plan, as agreed to by the Members, a copy of which is attached hereto as Exhibit D), Property Manager shall prepare
(or cause to be prepared) and shall deliver to the Members for their unanimous approval the annual business plan for the next Fiscal
Year. A plan approved by the Members is referred to herein as the "Annual Business Plan." If final approval of
a proposed annual business plan by all Members has not been given by the beginning of the Fiscal Year to which such proposed annual
business plan relates, Property Manager shall operate the Property on the basis of an Annual Business Plan determined by (i) assuming
that the revenue from the Property will increase to 103% of the revenues collected in the prior Fiscal Year, (ii) assuming that
the Controllable Expenses will increase to 103% of the amount of the actual Controllable Expenses incurred in the prior Fiscal
Year, (iii) increasing all Uncontrollable Expenses by any anticipated or known increases in such Uncontrollable Expenses, and (iv)
including any expenses for a threatened or existing emergency event that could cause or is causing material damage to the Property.
In the event that the number of condominium units has increased from the prior Fiscal Year, the Annual Business Plan established
pursuant to the preceding sentence would be further adjusted as follows: (1) the amount of revenues determined in accordance with
clause (i) above in this Section 9.3 shall be calculated on a per-unit basis based on the type of condominium unit ("Per Unit
Revenue"); such Per Unit Revenue shall be applied on a consistent basis to the newly acquired condominium units based on the
type of condominium unit; and the amount of revenues in the Annual Business Plan shall be increased by the revenues associated
with the newly acquired condominium units as determined pursuant to this sentence; (2) the amount of Controllable Expenses determined
in accordance with clause (ii) above in this Section 9.3 shall be calculated on a per-unit basis based on the type of condominium
unit ("Per Unit Controllable Expenses"); such Per Unit Controllable Expenses shall be applied on a consistent basis to
the newly acquired condominium units based on the type of condominium unit; and the amount of Controllable Expenses in the Annual
Business Plan shall be increased by the Controllable Expenses associated with the newly acquired condominium units as determined
pursuant to this sentence; (3) items referenced in clauses (iii) and (iv) above in this Section 9.3 shall likewise apply to the
newly acquired condominium units. If a Member fails either to approve or disapprove of any proposed annual business plan within
thirty (30) days after receipt of written request for such approval, such Member shall be deemed to have approved of such proposed
annual business plan. No material changes or departures from any item in an Annual Business Plan approved in accordance with the
terms herein shall be made by Property Manager without the prior unanimous approval of the Members. The Property Manager shall
provide quarterly updates to the Annual Business Plan, solely for informational purposes. Each Annual Business Plan shall include
the information set forth in Exhibit B.

 

(b) Notwithstanding subsection
(a) above, (i) the Annual Business Plan may, at any time, be amended upon unanimous approval by the Members, (ii) failure on
the part of the Members to agree on any such Annual Business Plan (or any amendment thereto) shall not constitute the failure of
a Major Decision and shall not entitle either Member to exercise the rights under Section 15 applicable to a failure to obtain
agreement on Major Decisions, (iii) if Property Manager fails to timely deliver a proposed annual business plan for the forthcoming
Fiscal Year, the Management Committee shall solely have the right to prepare and propose it for review and approval solely by the
Management Committee and (iv) if the Members are unable to agree on an Annual Business Plan for two consecutive years, the Management
Committee shall solely have the right to prepare and propose it for the third year, for review and approval solely by the Management
Committee.

 

    	 

    	 

    

  

9.4           Implementation
of Plan by Property Manager. Property Manager shall, subject to the limitations contained herein, the availability of operating
revenues and other cash flow and any other matters outside of the reasonable control of Property Manager, implement and shall not
vary or modify the then applicable Annual Business Plan without the prior written approval of the Management Committee. Property
Manager shall promptly advise and inform the Management Committee of any transaction, notice, event or proposal directly relating
to the management and operation of the Property, other assets of the Company or the Company or any Subsidiary of the Company which
does or is likely to significantly affect, either adversely or favorably, such Property, other assets of the Company or the Company
or such Subsidiary or cause a significant deviation from the Annual Business Plan. Nothing contained herein shall in any way diminish
the obligations or duties of Property Manager hereunder.

 

9.5           Affiliate
Transactions. No agreement shall be entered into by the Company or any Subsidiary with a Member or any Affiliate of a Member
and no decision shall be made in respect of any such agreement (including, without limitation, the enforcement or termination thereof)
unless such agreement or related decision shall have been approved in writing by both Members. Without limiting the foregoing,
any such agreement shall be on arm's length terms and conditions, be terminable on fifteen (15) days' notice without penalty and
the terms and conditions of such agreement shall be disclosed to all Representatives prior to the execution and delivery thereof.
Further, the written approval of Bluerock shall be required prior to the use of the name "Bluerock" in connection with
any matter or transaction.

 

9.6           Other
Activities.

 

(a)           Right
to Participation in Other Member Ventures. Neither the Company nor any Member (or any Affiliate of any Member) shall have any
right by virtue of this Agreement either to participate in or to share in any other now existing or future ventures, activities
or opportunities of any of the other Members or their Affiliates, or in the income or proceeds derived from such ventures, activities
or opportunities.

 

(b)           Limitation
on Actions of Members; Binding Authority. No Member shall, without the prior written consent of the other Members, take any
action on behalf of, or in the name of, the Company, or enter into any contract, agreement, commitment or obligation binding upon
the Company, or, in its capacity as a Member or Manager of the Company, perform any act in any way relating to the Company or the
Company's assets, except in a manner and to the extent consistent with the provisions of this Agreement. Notwithstanding any provision
in this Agreement to the contrary and without the need for any additional consent from any Person, the Company is hereby authorized
to execute, deliver and perform that certain Consent and Agreement of the Company attached to any Pledge Agreement.

 

9.7           Management
Agreement.

 

(a)           Independent
Contractor. CMG, as Property Manager, has agreed to provide management services to the Company (or a Subsidiary of the
Company) on the terms set forth in the Management Agreement; and it is agreed that Property Manager shall provide such management
services to the Company (or a Subsidiary of the Company) as an independent contractor. In addition, the Company shall also use
good faith efforts to have CMG appointed as the manager of the community association (on terms acceptable to the Company and the
community association) for purposes of managing the common elements related to the Property; provided, however, that the Company's
failure to accomplish such appointment shall not constitute a breach or default under, or the failure of a condition to the effectiveness
of, this Agreement.

 

    	 

    	 

    

  

(b)           Management
and Oversight Fees. The Company (or a Subsidiary of the Company) has entered into the Management Agreement for the Property
with Property Manager (which Management Agreement shall be updated and supplemented from time to time) pursuant to which Property
Manager will provide the development and management services described therein to the Company (or a Subsidiary of the Company).
Pursuant to the Management Agreement and subject to the terms of the Loan Documents, Property Manager will be entitled to receive
a net property management fee equal to 2.75% of Gross Receipts (as defined in the Management Agreement) (the "Property
Management Fee"). CMG, as Property Manager, shall also be entitled to a construction management fee of five percent (5.0%)
of the rehabilitation and renovation expenses for the Property, as set forth in the Annual Business Plan. If CMG has been terminated
as the Property Manager for Cause, then Bluerock will be entitled to retain a new Property Manager and receive an oversight fee
equal to 1.0% of the Gross Receipts (the "Oversight Fee"). It is understood that if CMG is terminated as the Property
Manager without Cause, Bluerock shall not be entitled to the Oversight Fee, unless Bluerock purchases the Interest of Carroll pursuant
to Section 15 or otherwise by agreement of the parties. The foregoing shall not be deemed to imply that Bluerock will have
any unilateral right to purchase the Interest of Carroll solely on account of the termination of CMG as Property Manager.

 

(c)           Termination
of Management Agreement.

 

(1)           The
Management Agreement shall be terminable as provided under its terms and conditions by the Company or Bluerock or, as long as the
Property Manager is CMG, by Property Manager.

 

(2)           Notwithstanding
anything to the contrary in this Section 9.7(c), no termination of the Management Agreement or buyout of the other party's Interest
in the Company shall be permitted unless permitted or approved under any applicable Collateral Agreement or under the Loan Documents.

 

(d)           Delegation.
Any delegation of the responsibilities of Property Manager or the subcontracting for such services will be subject to the prior
written consent of the Management Committee. Separate agreements may also be entered into with Carroll, Bluerock, their respective
Affiliates, or with third parties for certain services to be provided to the Company, including leasing, construction management,
property management, asset management, technology services, etc. Such arrangements shall be at market rates, and shall be entered
into only with the prior written approval of the Management Committee, consistent with an approved budget and business plan for
each asset. Unless otherwise agreed, all such contracts will be payable on a monthly basis and will be terminable upon thirty (30)
days' notice for any reason or no reason.

 

9.8          Operation
in Accordance with REOC/REIT Requirements.

 

(a)           The
Members acknowledge that Bluerock or one or more of its Affiliates (a "BR Affiliate") intends to qualify as a
"real estate operating company" or "venture capital operating company" within the meaning of U.S. Department
of Labor Regulation 29 C.F.R. §2510.3-101 (a "REOC"), and agree that the Company and its Subsidiaries shall be operated
in a manner that will enable Bluerock and such BR Affiliate to so qualify. Notwithstanding anything herein to the contrary, the
Company and its Subsidiaries shall not take, or refrain from taking, any action that Bluerock notifies the Company would result
in Bluerock or a BR Affiliate from failing to qualify as a REOC. The Members acknowledge and agree that Bluerock may assign any
or all of its rights or powers under this Agreement as Manager, to designate committee representatives, to provide consents and
approvals, or any other rights or powers to one or more of its BR Affiliates as it deems appropriate, and the exercise of any such
rights or powers by a BR Affiliate shall have full force and effect under this Agreement without the need for any further consent
or approval. Except as disclosed to Bluerock, Carroll (a) shall not fund any Capital Contribution "with the 'plan assets'
of any 'employee benefit plan' within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
or any 'plan' as defined by Section 4975 of the Internal Revenue Code of 1986, as amended", and (b)
shall comply with any reasonable requirements specified by Bluerock in order to ensure compliance
with this Section 9.8.

 

    	 

    	 

    

  

(b)           Except
for the Property, neither the Company nor its Subsidiaries shall hold any investment, incur any indebtedness or otherwise take
any action that would cause any Member of the Company (or any Person holding an indirect interest in the Company through an entity
or series of entities treated as partnerships for U.S. federal income tax purposes) to realize any "unrelated business taxable
income" as such term is defined in Code Sections 511 through 514, unless specifically agreed to by the Manager in writing.
No Manager or Member shall be liable for any income or other taxes, damages, costs or expenses incurred by the Company or any Member
by reason of the recognition by the Company of UBTI.

 

(c)           The
Company (and any direct or indirect Subsidiary of the Company) may not engage in any activities or hold any assets that would constitute
or result in the occurrence of a REIT Prohibited Transaction as defined herein. Notwithstanding anything to the contrary contained
in this Agreement, during the time a REIT Member is a Member of the Company, neither the Company, any direct or indirect Subsidiary
of the Company, nor any Member of the Company shall take or refrain from taking any action which, or the effect of which, would
constitute or result in the occurrence of a REIT Prohibited Transaction by the Company or any direct or indirect Subsidiary thereof,
including without limiting the generality of the foregoing, but in amplification thereof:

 

(i)            Entering
into any lease, license, concession or other agreement or permitting any sublease, license, concession or other agreement that
provides for rent or other payment based in whole or in part on the income or profits of any person, excluding for this purpose
a lease that provides for rent based in whole or in part on a fixed percentage or percentages of gross receipts or gross sales
of any person without reduction for any costs of the lessee (and in the case of a sublease, without reduction for any sublessor
costs);

 

(ii)           Leasing
personal property, excluding for this purpose a lease of personal property that is entered into in connection with a lease of real
property where the rent attributable to the personal property is less than 15% of the total rent provided for under the lease;

 

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

 

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

 

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

 

    	 

    	 

    

  

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

 

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

 

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

 

(ix)           Failing
to make current cash distributions to REIT Member each year in an amount which does not at least equal the taxable income allocable
to REIT Member for such year; provided, however, any such cash distributions shall be made in accordance with the priorities set
forth Section 6.1(c).

 

Notwithstanding the
foregoing prov1s1ons of this Section 9.8(c), the Company may enter into a REIT Prohibited Transaction if it receives the prior
written approval of the REIT Member specifically acknowledging that the REIT Member is approving a REIT Prohibited Transaction
pursuant to this Section 9.8(c). For purposes of this Section 9.8(c), "REIT Prohibited Transactions" shall mean any of
the actions specifically set forth in Sections 9.8(c)(i) through (c)(ix) as well as any action of which the Company receives notice
from Bluerock or a REIT Member that such action would result in a REIT Member losing its REIT status under IRC Section 856 or would
cause such REIT Member to be subject to any punitive taxation pursuant to IRC Section 857(b)(6). The Loan or any loan contemplated
by Section 5.2(b) shall not be considered a REIT Prohibited Transaction.

 

9.9           FCPA.

 

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

 

    	 

    	 

    

  

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

 

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

 

Section 10.          Confidentiality.

 

10.1         Any
information relating to a Member's business, operation or finances which are proprietary to, or considered proprietary by, a Member
are hereinafter referred to as "Confidential Information". All Confidential Information in tangible form (plans, writings,
drawings, computer software and programs, etc.) or provided to or conveyed orally or visually to a receiving Member, shall be presumed
to be Confidential Information at the time of delivery to the receiving Member. All such Confidential Information shall be protected
by the receiving Member from disclosure with the same degree of care with which the receiving Member protects its own Confidential
Information from disclosure. Each Member agrees: (i) not to disclose such Confidential Information to any Person except to those
of its employees or representatives who need to know such Confidential Information in connection with the conduct of the business
of the Company and who have agreed to maintain the confidentiality of such Confidential Information and (ii) neither it nor any
of its employees or representatives will use the Confidential Information for any purpose other than in connection with the conduct
of the business of the Company; provided that such restrictions shall not apply if such Confidential Information:

 

(a)           is
or hereafter becomes public, other than by breach of this Agreement; was already in the receiving Member's possession prior to
any disclosure of the Confidential Information to the receiving Member by the divulging Member; or has been or is hereafter obtained
by the receiving Member from a third party not bound by any confidentiality obligation with respect to the Confidential Information;
provided, further, that nothing herein shall prevent any Member from disclosing any portion of such Confidential Information (1)
to the Company and allowing the Company to use such Confidential Information in connection with the Company's business, (2) pursuant
to judicial order or in response to a governmental inquiry, by subpoena or other legal process, but only to the extent required
by such order, inquiry, subpoena or process, and only after reasonable notice to the original divulging Member, as necessary or
appropriate in connection with or to prevent the audit by a governmental agency of the accounts of Carroll or Bluerock, (4) in
order to initiate, defend or otherwise pursue legal proceedings between the parties regarding this Agreement, (5) necessary in
connection with a Transfer of an Interest permitted hereunder or (6) to a Member's respective attorneys or accountants or other
representatives.

 

10.2         The
Members and their Affiliates shall each act to safeguard the secrecy and confidentiality of, and any proprietary rights to, any
non-public information relating to the Company and its business, except to the extent such information is required to be disclosed
by law or reasonably necessary to be disclosed in order to carry out the business of the Company. Each Member may, from time to
time, provide the other Members written notice of its non- public information which is subject to this Section 10.2.

 

    	 

    	 

    

  

10.3         Without
limiting any of the other terms and provisions of this Agreement (including, without limitation, Section 9.6), to the extent
a Member (the "Pursuer") provides the other Member with information relating to a possible investment opportunity
then being actively pursued by the Pursuer on behalf of the Company, the other Member receiving such information shall not use
such information to pursue such investment opportunity for its own account to the exclusion of the Pursuer so long as the Pursuer
is actively pursuing such opportunity on behalf of the Company and shall not disclose any Confidential Information to any Person
(except as expressly permitted hereunder) or take any other action in connection therewith that is reasonably likely to cause damage
to the Pursuer.

 

Section 11.          Representations
and Warranties.

 

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

 

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

 

(a)           Due
Incorporation or Formation; Authorization of Agreement. Such Member is a corporation duly organized or a partnership or limited
liability company duly formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or
formation and has the corporate, partnership or company power and authority to own its property and carry on its business as owned
and carried on at the date hereof and as contemplated hereby. Such Member is duly licensed or qualified to do business and in good
standing in each of the jurisdictions in which the failure to be so licensed or qualified would have a material adverse effect
on its financial condition or its ability to perform its obligations hereunder. Such Member has the corporate, partnership or company
power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and the execution, delivery
and performance of this Agreement has been duly authorized by all necessary corporate, partnership or company action. This Agreement
constitutes the legal, valid and binding obligation of such Member.

 

(b)           No
Conflict with Restrictions; No Default. Neither the execution, delivery or performance of this Agreement nor the consummation
by such Member (or any of its Affiliates) of the transactions contemplated hereby (i) does or will conflict with, violate or result
in a breach of (or has conflicted with, violated or resulted in a breach of) any of the terms, conditions or provisions of any
law, regulation, order, writ, injunction, decree, determination or award of any court, any governmental department, board, agency
or instrumentality, domestic or foreign, or any arbitrator, applicable to such Member or any of its Affiliates, (ii) does or will
conflict with, violate, result in a breach of or constitute a default under (or has conflicted with, violated, resulted in a breach
of or constituted a default under) any of the terms, conditions or provisions of the articles of incorporation, bylaws, partnership
agreement or operating agreement of such Member or any of its Affiliates or of any material agreement or instrument to which such
Member or any of its Affiliates is a party or by which such Member or any of its Affiliates is or may be bound or to which any
of its properties or assets is subject, (iii) does or will conflict with, violate, result in (or has conflicted with, violated
or resulted in) a breach of, constitute (or has constituted) a default under (whether with notice or lapse of time or both), accelerate
or permit the acceleration of (or has accelerated) the performance required by, give (or has given) to others any material interests
or rights or require any consent, authorization or approval under any indenture, mortgage, lease, agreement or instrument to which
such Member or any of its Affiliates is a party or by which such Member or any of its Affiliates or any of their properties or
assets is or may be bound or (iv) does or will result (or has resulted) in the creation or imposition of any lien upon any of the
properties or assets of such Member or any of its Affiliates.

 

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

 

    	 

    	 

    

  

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

 

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

 

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

 

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

 

(f)            Securities
Matters.

 

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

 

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

 

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

 

(4)           Such
Member is not relying on the Company or any of its officers, directors, employees, advisors or representatives with regard to the
tax and other economic considerations of an investment in the Interests, and such Member has relied on the advice of only such
Member's advisors.

 

    	 

    	 

    

  

(5)           Such
Member understands that the Interests may not be sold, hypothecated or otherwise disposed of unless subsequently registered under
the Securities Act and applicable state securities laws, or an exemption from registration is available. Such Member agrees that
it will not attempt to sell, transfer, assign, pledge or otherwise dispose of all or any portion of the Interests in violation
of this Agreement.

 

(6)           Such
Member has adequate means for providing for its current financial needs and anticipated future needs and possible contingencies
and emergencies and has no need for liquidity in the investment in the Interests.

 

(7)           Such
Member has significant prior investment experience, including investment in non-listed and non-registered securities. Such Member
is knowledgeable about investment considerations and has a sufficient net worth to sustain a loss of such Member's entire investment
in the Company in the event such a loss should occur. Such Member's overall commitment to investments which are not readily marketable
is not excessive in view of such Member's net worth and financial circumstances and the purchase of the Interests will not cause
such commitment to become excessive. The investment in the Interests is suitable for such Member.

 

(8)           Such
Member represents to the Company that the information contained in this subparagraph (h) and in all other writings, if any, furnished
to the Company with regard to such Member (to the extent such writings relate to its exemption from registration under the Securities
Act) is complete and accurate and may be relied upon by the Company in determining the availability of an exemption from registration
under federal and state securities laws in connection with the sale of the Interests.

 

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

 

12.1         Prohibited
Transfers. Except as otherwise provided in this Section 12, Sections 5.2(b), 15.1 and 15.2, or as approved
by the Management Committee, no Member shall Transfer all or any part of its Interest, whether legal or beneficial, in the Company,
and any attempt to so Transfer such Interest (and such Transfer) shall be null and void and of no effect. Notwithstanding the foregoing,
either Member shall have the right, with the consent of the other Member, at any time to pledge to a lender or creditor, directly
or indirectly, all or any part of its Interest in the Company for such purposes as it deems necessary in the ordinary course of
its business and operations.

 

12.2         Affiliate
Transfers.

 

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

 

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

 

    	 

    	 

    

  

(1)           Any
Transfer by Carroll of up to one hundred percent (100%) of its Interest to any Affiliate of Carroll Parent (a "Carroll
Transferee"), it being expressly understood and agreed that transfers of ownership interests in Carroll shall not be prohibited
as long as at least one of the Key Individuals (collectively or individually) remains actively involved in the operation
and management of Carroll (to the extent that it continues to hold, or control, any interest in the Company), Carroll Parent and
any Carroll Transferee; and

 

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

 

provided however,
as to subparagraphs (b)(l ) and (b)(2), and as to subparagraph (a), no Transfer shall be permitted and shall be void ab initio
if it shall violate any "Transfer" provision of the Loan Documents or any applicable Collateral Agreement with third
party lenders.

 

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

 

(d)           The
Transfer of any interest in Manager and any transferee of an interest in Manager shall be recognized and permitted under this Agreement
and by the Members, without any further action or authorization by any Member.

 

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

 

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

 

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

 

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

 

    	 

    	 

    

  

(2)           the
Transfer would result in a termination of the Company under Code Section 708(b); provided, however, that any such determination
under this Section 12.3(b)(2) shall require the reasonable determination and approval of at least one (1)
Representative appointed by Carroll.

 

(3)           as
a result of such Transfer the Company would be required to register as an investment company under the Investment Company Act of
1940, as amended, or any rules or regulations promulgated thereunder;

 

(4)           if
as a result of such Transfer the aggregate value of Interests held by "benefit plan investors" including at least one
benefit plan investor that is subject to ERISA, could be "significant" (as such terms are defined in U.S. Department
of Labor Regulation 29 C.F.R. 2510.3-10l (f)(2)) with the result that the assets of the Company could be deemed to be "plan
assets" for purposes of ERISA;

 

(5)           as
a result of such Transfer, the Company would or may have in the aggregate more than one hundred (100) members and material adverse
federal income tax consequences would result to a Member. For purposes of determining the number of members under this Section
12.3(b)(5), a Person (the "beneficial owner") indirectly owning an interest in the Company through a partnership,
grantor trust or S corporation (as such terms are used in the Code) (the "flow-through entity") shall be considered
a member, but only if (i) substantially all of the value of the beneficial owner's interest in the flow-through entity is attributable
to the flow-through entity's interest (direct or indirect) in the Company and (ii) in the sole discretion of the Management Committee,
a principal purpose of the use of the flow-through entity is to permit the Company to satisfy the 100-member limitation; or

 

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

 

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

 

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

 

Section 13.          Dissolution.

 

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

 

13.2         Exclusive
Events Requiring Dissolution. The Company shall be dissolved only upon the earliest to occur of the following events (a "Dissolution
Event"):

 

    	 

    	 

    

  

(a)           the
expiration of the specific term set forth in Section 2.5;

 

(b)           at
any time at the election of all of the Members in writing;

 

(c)           at
any time there are no Members (unless otherwise continued in accordance with the Act);

 

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

 

(e)           the
Purchase Agreement has not been closed by April 30, 2014.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(3)           the
balance, if any, to the Members in accordance with Section 6.1.

 

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

 

    	 

    	 

    

  

Section 14.          Indemnification.

 

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

 

14.2         Indemnification
by Company. The Company hereby indemnifies, holds harmless and defends the Members, the Manager, the Representatives, the officers
and each of their respective agents, officers, directors, members, managers, partners, shareholders and employees from and against
any loss, expense, damage or injury suffered or sustained by them (including but not limited to any judgment, award, settlement,
reasonable attorneys' fees and other costs or expenses incurred in connection with the defense of any actual or threatened action,
proceeding or claim) by reason of or arising out of (i) their activities on behalf of the Company or in furtherance of the interests
of the Company, including, without limitation, the provision of guaranties to third party lenders in respect of financings relating
to the Company or any of its assets (but specifically excluding from such indemnity by the Company any so called "bad boy"
guaranties or similar agreements which provide for recourse as a result of failure to comply with covenants, willful misconduct
or gross negligence), (ii) their status as Members, Managers, Representatives, employees or officers of the Company, or (iii) the
Company's assets, property, business or affairs (including, without limitation, the actions of any officer, director, member, manager
or employee of the Company or any of its Subsidiaries), if the acts or omissions were not performed or omitted fraudulently or
as a result of gross negligence or willful or wanton misconduct by the indemnified party or as a result of the willful breach of
any obligation under this Agreement by the indemnified party. For the purposes of this Section 14.2, officers, directors,
members, managers, employees and other representatives of Affiliates of a Member who are functioning as representatives of such
Member in connection with this Agreement shall be considered representatives of such Member for the purposes of this Section
14. Reasonable expenses incurred by the indemnified party in connection with any such proceeding relating to the foregoing
matters shall be paid or reimbursed by the Company in advance of the final disposition of such proceeding upon receipt by the Company
of (x) written affirmation by the Person requesting indemnification of its good faith belief that it has met the standard of conduct
necessary for indemnification by the Company and (y) a written undertaking by or on behalf of such Person to repay such amount
if it shall ultimately be determined by a court of competent jurisdiction that such Person has not met such standard of conduct,
which undertaking shall be an unlimited general obligation of the indemnified party but need not be secured.

 

14.3         Indemnification
by Members for Misconduct.

 

(a)           Carroll
hereby indemnifies, defends and holds harmless the Company, Bluerock, each Bluerock Transferee and each of their subsidiaries and
their agents, officers, directors, members, managers, partners, shareholders and employees from and against all losses, costs,
expenses, damages, claims and liabilities (including reasonable attorneys' fees) as a result of or arising out of any fraud, gross
negligence or willful or wanton misconduct on the part of, or by, Carroll, the Key Individual, any entity controlled directly or
indirectly by the Key Individual that directly or indirectly controls Carroll, or any Representative appointed by Carroll.

 

(b)           Bluerock
hereby indemnifies, defends and holds harmless the Company, Carroll, each Carroll Transferee and each of their subsidiaries and
their agents, officers, directors, members, managers, partners, shareholders and employees from and against all losses, costs,
expenses, damages, claims and liabilities (including reasonable attorneys' fees) as a result of or arising out of any fraud, gross
negligence or willful or wanton misconduct on the part of, or by, Bluerock or any entity controlled directly or indirectly by Bluerock,
or any Representative appointed by Bluerock.

 

    	 

    	 

    

  

14.4         General
Indemnification by the Members.

 

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

 

(b)           Except
as otherwise provided herein or in any other agreement, recourse for the indemnity obligation of the Members under this Section
14.4 shall be limited to such Indemnifying Party's Interest in the Company; provided, however, that recourse against either
Member under its indemnity obligations under this Agreement or otherwise shall be further limited to an aggregate amount equal
to the value of such Member's Interest as determined by and being limited to the then current liquidation value of such Member's
Interest assuming the Company were liquidated in an orderly fashion and all net proceeds thereof were distributed in accordance
with Section 6.

 

(c)           The
indemnities, contributions and other obligations under this Agreement shall be in addition to any rights that any Indemnified Party
may have at law, in equity or otherwise. The terms of this Section 14 shall survive termination of this Agreement.

 

14.5         [Intentionally
Omitted]

 

14.6         [Intentionally
Omitted]

 

Section 15.          Sale
Rights.

 

15.1         Push/Pull
Rights.

 

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

 

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

 

    	 

    	 

    

  

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

 

(d)           Earnest
Money. Within five (5) business days after an election has been made or deemed made under Section 15.l (c), the acquiring
Member shall deposit with a mutually acceptable third-party escrow agent a non-refundable earnest money deposit in the amount of
two percent (2%) of the amount the selling Member is entitled to receive for its Interest under this Section 15.1, which
amount shall be applied to the purchase price at closing. If the acquiring Member should thereafter fail to consummate the transaction
for any reason other than a default by the selling Member or a refusal by any lender of the Company who has a right under its loan
documents to consent to such transfer to so consent, (i) (A) the earnest money deposit shall be distributed from escrow to the
selling Member, free of all claims of the acquiring Member, as liquidated damages and constituting the sole and exclusive remedy
available to the selling Member because of a default by the acquiring Member or (B) the selling Member may, by delivering to the
acquiring Member written notice thereof, elect to buy the acquiring Member's entire Interest for an amount equal to the amount
the acquiring Member would have been entitled to receive if the Company had sold all of its assets for the Valuation Amount and
the Company had immediately paid all Company liabilities and Imputed Closing Costs and distributed the net proceeds of the sale
to the Members in satisfaction of their Interests pursuant to Section 13.3, in which case, the Closing Date therefor shall
be the date specified in the selling Member's notice, and (ii) if the acquiring Member was the Offeror, the non-refundable earnest
money deposit for any future election by the acquiring Member to buy the selling Member's Interest shall be twenty percent (20%)
of the amount the selling Member is entitled to receive for its Interest in connection with such future election.

 

(e)           Closing.
The closing of an acquisition pursuant to this Section 15.1 shall be held on a mutually acceptable date (the "Closing
Date") not later than sixty (60) days (or, if the Offeree is the acquiring Member, ninety (90) days) after an election
has been made or deemed made under Section 15.l (c). At such closing, the following shall occur:

 

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

 

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

 

(f)            Enforcement.
It is expressly agreed that the remedy at law for breach of the obligations of the Members set forth in this Section 15.1
is inadequate in view of (i) the complexities and uncertainties in measuring the actual damage to be sustained by reason of the
failure of a Member to comply fully with such obligations, and (ii) the uniqueness of the Company's business and the Members' relationships.
Accordingly, each of such obligations shall be, and is hereby expressly made, enforceable by an order of specific performance.

 

    	 

    	 

    

  

15.2         Forced
Sale Rights.

 

(a)           Offers.
If, at any time following the second anniversary of the date that the Property is initially acquired, either Member (i) desires
to offer the Property for sale on specified terms, or (ii) receives from an unaffiliated purchaser a bonafide written cash
offer (i.e., not seller financed) for the purchase of the Property at a price in excess of the then-pending balance due under the
Loan and otherwise on terms that such Member desires for the Company, or any Subsidiary that owns the Property (individually or
collectively, the "Ownership Entity") to accept (such specified terms or bona fide offer being herein called
the "Offer"), then the Member desiring to make or accept the Offer (the "Initiating Member")
shall provide written notice of the terms of such Offer (the "Sale Notice") to the other Member (the "Non-Initiating
Member"). For the avoidance of doubt, Section 15.2 only applies in connection with the sale of the entire Property, not
for any portion thereof such as in connection with sale of individual condominium units.

 

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

 

(c)           Offer
Unacceptable.

 

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

 

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

 

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

 

    	 

    	 

    

  

Section 16.          Miscellaneous.

 

16.1         Notices.

 

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

 

If to Bluerock:

 

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

712 Fifth Avenue, 9th Floor

New York,
New York 10019

Attention:
James G. Babb, III

 

Facsimile No. (646) 278-4220 with

 

copies to:

 

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

712 Fifth Avenue, 9th Floor

New York,
New York 10022

Attention:
Michael Konig, Esq.

 

Facsimile
No. (646) 278-4220 and

 

Hirschler Fleischer 2100

East Cary Street

Richmond, VA 23223

Attention: S. Edward Flanagan,
Esq.

 

Facsimile No. (804) 644-0957

 

If to Carroll:

 

c/o Carroll Organization, LLC 3340

Peachtree Road, Suite 1620

Atlanta, Georgia
30326 Attention:

M. Patrick
Carroll

 

Facsimile No. (404) 523-9372

 

    	 

    	 

    

  

With a copy to:

 

Morris, Manning
& Martin LLP

1600 Atlanta
Financial Center 3343

Peachtree Road,
NE Atlanta,

Georgia 30326

Attention: Gerald V. Thomas II,
Esq.

Facsimile: (404) 365-9532

 

(b)           Each
such notice shall be deemed delivered (i) on the date delivered if by hand delivery or overnight courier service or facsimile,
and (ii) on the date upon which the return receipt is signed or delivery is refused or the notice is designated by the postal authorities
as not deliverable, as the case may be, if mailed (provided, however, if such actual delivery occurs after 5:00 p.m. (local time
where received), then such notice or demand shall be deemed delivered on the immediately following business day after the actual
day of delivery).

 

(c)           By
giving to the other parties at least fifteen (15) days written notice thereof, the parties hereto and their respective successors
and assigns shall have the right from time to time and at any time during the term of this Agreement to change their respective
addresses.

 

16.2         Governing
Law. This Agreement and the rights of the Members hereunder shall be governed by, and interpreted in accordance with, the laws
of the State of Delaware. Each of the parties hereto irrevocably submits to the jurisdiction of the New York State courts and the
Federal courts sitting in the State of New York and agrees that all matters involving this Agreement shall be heard and determined
in such courts. Each of the parties hereto waives irrevocably the defense of inconvenient forum to the maintenance of such action
or proceeding. Each of the parties hereto designates CT Corporation System, 1633 Broadway, New York, New York 10019, as its agent
for service of process in the State of New York, which designation may only be changed on not less than ten (10) days' prior notice
to all of the other parties.

 

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

 

16.4         Pronouns.
Whenever from the context it appears appropriate, each term stated in either the singular or the plural shall include the singular
and the plural, and pronouns stated in either the masculine, the feminine or the neuter gender shall include the masculine, feminine
and neuter.

 

16.5         Captions
Not Part of Agreement. The captions contained in this Agreement are inserted only as a matter of convenience and in no way
define, limit or extend the scope or intent of this Agreement or any provisions hereof.

 

16.6         Severability.
If any provision of this Agreement shall be held invalid, illegal or unenforceable in any jurisdiction or in any respect, then
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired,
and the Members shall use their best efforts to amend or substitute such invalid, illegal or unenforceable provision with enforceable
and valid provisions which would produce as nearly as possible the rights and obligations previously intended by the Members without
renegotiation of any material terms and conditions stipulated herein.

 

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

 

    	 

    	 

    

  

16.8         Entire
Agreement and Amendment. This Agreement and the other written agreements described herein between the parties hereto entered
into as of the date hereof, constitute the entire agreement between the Members relating to the subject matter hereof. In the event
of any conflict between this Agreement and such other written agreements, the terms and provisions of this Agreement shall govern
and control. No amendment or waiver by a party shall be enforceable against that party unless it is in writing and duly executed
by such party.

 

16.9         Further
Assurances. Each Member agrees to execute and deliver any and all additional instruments and documents and do any and all acts
and things as may be necessary or expedient to effectuate more fully this Agreement or any provisions hereof or to carry on the
business contemplated hereunder.

 

16.10       No
Third Party Rights. The provisions of this Agreement are for the exclusive benefit of the Members and the Company, and no other
party (including, without limitation, any creditor of the Company) shall have any right or claim against any Member by reason of
those provisions or be entitled to enforce any of those provisions against any Member.

 

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

 

16.12       Limitation
on Liability. Except as set forth in Section 14 and with respect to a Default Loan as set forth in Section 5.2(b),
the Members shall not be bound by, or be personally liable for, by reason of being a Member, a judgment, decree or order of a court
or in any other manner, for the expenses, liabilities or obligations of the Company, and the liability of each Member shall be
limited solely to the amount of its Capital Contributions as provided under Section 5. Except as set forth in Section
14.3 and with respect to a Default Loan as set forth in Section 5.2(b), any claim against any Member (the "Member
in Question") which may arise under this Agreement shall be made only against, and shall be limited to, such Member in
Question's Interest, the proceeds of the sale by the Member in Question of such Interest or the undivided interest in the assets
of the Company distributed to the Member in Question pursuant to Section 13.3(d) hereof. Except as set forth in Section
14.3 and with respect to a Default Loan as set forth in Section 5.2(b), any right to proceed against (i) any other assets
of the Member in Question or (ii) any agent, officer, director, member, manager, partner, shareholder or employee of the Member
in Question or the assets of any such Person, as a result of such a claim against the Member in Question arising under this Agreement
or otherwise, is hereby irrevocably and unconditionally waived.

 

16.13       Remedies
Cumulative. The rights and remedies given in this Agreement and by law to a Member shall be deemed cumulative, and the exercise
of one of such remedies shall not operate to bar the exercise of any other rights and remedies reserved to a Member under the provisions
of this Agreement or given to a Member by law. In the event of any dispute between the parties hereto, the prevailing party shall
be entitled to recover from the other party reasonable attorney's fees and costs incurred in connection therewith.

 

16.14       No
Waiver. One or more waivers of the breach of any provision of this Agreement by any Member shall not be construed as a waiver
of a subsequent breach of the same or any other provision, nor shall any delay or omission by a Member to seek a remedy for any
breach of this Agreement or to exercise the rights accruing to a Member by reason of such breach be deemed a waiver by a Member
of its remedies and rights with respect to such breach.

 

    	 

    	 

    

  

16.15       Limitation
On Use of Names. Notwithstanding anything contained in this Agreement or otherwise to the contrary, each of Bluerock and Carroll
as to itself agree that neither it nor any of its Affiliates, agents, or representatives is granted a license to use or shall use
the name of the other under any circumstances whatsoever, except such name may be used in furtherance of the business of the Company
but only as and to the extent unanimously approved by the Members. Any change in the name of the Property must be approved by the
Management Committee.

 

16.16       Publicly
Traded Partnership Provision. Each Member hereby severally covenants and agrees with the other Members for the benefit of such
Members, that (a) it is not currently making a market in Interests in the Company and will not in the future make such a market
and (b) it will not Transfer its Interest on an established securities market, a secondary market or an over-the-counter market
or the substantial equivalent thereof within the meaning of Code Section 7704 and the Regulations, rulings and other pronouncements
of the U.S. Internal Revenue Service or the Department of the Treasury thereunder. Each Member further agrees that it will not
assign any Interest in the Company to any assignee unless such assignee agrees to be bound by this Section 16.16 and to
assign such Interest only to such Persons who agree to be similarly bound.

16.17       Uniform
Commercial Code. The interest of each Member in the Company shall be an "uncertificated security" governed by Article
8 of the Delaware UCC and the UCC as enacted in the State of New York (the "New York UCC"), including, without
limitation, (i) for purposes of the definition of a "security" thereunder, the interest of each Member in the Company
shall be a security governed by Article 8 of the Delaware UCC and the New York UCC and (ii) for purposes of the definition of an
"uncertificated security" thereunder.

 

16.18       Public
Announcements. Neither Carroll nor any of its Affiliates shall, without the prior approval of Bluerock, issue any press releases
or otherwise make any public statements with respect to the Company or the transactions contemplated by this Agreement, except
as may be required by applicable law or regulation or by obligations pursuant to any listing agreement with any national securities
exchange so long as Carroll or such Affiliate has used reasonable efforts to obtain the approval of Bluerock prior to issuing such
press release or making such public disclosure.

 

16.19       No
Construction Against Drafter. This Agreement has been negotiated and prepared by Bluerock and Carroll and their respective
attorneys and, should any provision of this Agreement require judicial interpretation, the court interpreting or construing such
provision shall not apply the rule of construction that a document is to be construed more strictly against one party.

 

Section 17. Insurance.
During the Term, Property Manager, pursuant to the terms of the Management Agreement, shall procure and maintain insurance as is
determined to be appropriate by the Management Committee (in form and with endorsements, waivers and deductibles and with insurance
companies, designated or approved by Bluerock) naming the Company (and the Subsidiary owning the Property), Bluerock and Carroll
as insureds thereunder.

 

[SIGNATURES ON FOLLOWING PAGES]

 

    	 

    	 

    

  

IN WITNESS WHEREOF,
this Agreement is executed by the Members, effective as of the date first set forth above.

 

	 	BR LANSBROOK JV MEMBER, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company,
	 	 	its co-manager

 

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

 

	 	By:	/s/ Jordan Ruddy
	 	Name:	Jordan Ruddy
	 	Title:	Authorized Signatory

 

	 	By:	Bluerock Special Opportunity + Income Fund Ill, LLC, a Delaware limited liability company,
	 	 	its co-manager

 

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

 

	 	By:	/s/ Jordan Ruddy
	 	Name:	Jordan Ruddy
	 	Title:	Authorized Signatory

 

    	 

    	 

    

  

	 	CARROLL LANSBROOK JV MEMBER, LLC,
	 	 	a Georgia limited liability company
	 	 	 
	 	By: 	MPC Lansbrook Investments, LLC, a Georgia limited liability company, its Manager

 

	 	By:	/s/ M. Patrick Carroll
	 	 	Name:	M. Patrick Carroll
	 	 	Title:	President

 

	 	For purposes of Sections 8.2(b), 9.3, 9.4, 9.7 and 17 only, and only for the term Carroll Management Group, LLC is Property Manager under the Management Agreement.
	 	 
	 	CARROLL MANAGEMENT GROUP, LLC

 

	 	By:	/s/ M. Patrick Carroll
	 	 	Name:	M. Patrick Carroll
	 	 	Title:	President

 

    	 

    	 

    

  

EXHIBIT A

 

Initial Capital Contributions and Percentage
Interests

 

	 	 	Capital	 	 	 	 
	Member Name	 	Contributions	 	 	Percentage Interest	 
	 	 	 	 	 	 	 
	BR Lansbrook JV Member, LLC	 	$	16,948,579.26	 	 	 	90	%
	 	 	 	 	 	 	 	 	 
	Carroll Lansbrook JV Member, LLC	 	$	1,883,175.47	 	 	 	10	%

 

Management Committee Representatives

 

Bluerock:

 

James G.
Babb, III

Jordan
B. Ruddy

 

Carroll:

 

Patrick
Carroll

Joshua
Champion

 

    	 

    	 

    

  

EXHIBIT B

 

Annual Business Plan Information

 

		1.	a narrative description of any acquisitions or sales that are planned
and any other activities proposed to be undertaken;

 

		2.	a projected annual income statement (accrual basis) on a quarter-by-quarter
basis;

 

		3.	a projected balance sheet as of the end of the next Fiscal Year;

 

		4.	a schedule of projected operating cash flow (including itemized operating
revenues, project costs and project expenses) for such Fiscal Year on a quarter- by-quarter basis, including a schedule of projected
operating deficits, if any;

 

		5.	a marketing plan indicating the portions of the Property that Property
Manager recommends be made available for sale or lease and the proposed terms and conditions relating thereto;

 

		6.	a detailed budget reflecting on a line by line basis all projected
operating expenses and any proposed construction and capital expenditures for the Property, including projected dates for commencement
and completion of the foregoing;

 

		7.	a description of the proposed investment of any funds of the Company
which are (or are expected to become) available for investment;

 

		8.	a description, including the identity of the recipient (if known)
and the amount and purpose, of all fees and other payments proposed, expected or projected to be paid for professional services
and, if a fee or payment exceeds $25,000, for other services rendered to or on behalf of the Company by third parties;

 

		9.	a projection of the amount of any anticipated additional Capital
Contributions which may be called for pursuant to Section 5.2(a) and the purposes for which such additional Capital Contributions
may be used; and

 

		10.	such other information requested from time to time by any Member.

 

    	 

    	 

    

  

EXHIBIT C

 

Management Agreement

 

[TO COME]

 

    	 

    	 

    

  

Initial Annual Business Plan

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