Document:

WAYPOINT ENDERS OWNER, LLC

 

AMENDED AND RESTATED LIMITED LIABILITY
COMPANY AGREEMENT

 

This AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of WAYPOINT ENDERS OWNER, LLC (the “Company”),
effective as of October 2, 2012, is made by and between WAYPOINT BLUEROCK ENDERS JV, LLC, a Delaware limited liability company
(“Managing Member”) and WAYPOINT ENDERS INVESTORS LP, a Delaware limited partnership (the “Non-Managing
Member”, and collectively with the Managing Member, the “Members”).

 

WHEREAS, the Company
was formed on May 21, 2012, pursuant to the Certificate of Formation (the “Certificate”) filed on May 21, 2012,
with the Secretary of State of the State of Delaware, pursuant to and in accordance with the Delaware Limited Liability Company
Act (6 Del. C. § 18-101, et sec), as amended from time to time (the “Act”);

 

WHEREAS, the Non-Managing
Member entered into that certain Limited Liability Company Agreement of the Company dated as of May 21, 2012 (the “Prior
LLC Agreement”); and

 

WHEREAS, the undersigned
Members and the Company desire to amend and restate the Prior LLC Agreement in its entirety as set forth herein in order to (i)
reflect the admission of the Managing Member as a Member of the Company and (ii) to govern the operations of the Company on and
after the date first above written.

 

NOW, THEREFORE, IT IS AGREED, as follows:

 

ARTICLE I

Organization

 

Section 1.1.          Name.
The name of the limited liability company continued hereby is WAYPOINT ENDERS OWNER, LLC.

 

Section 1.2.          Members.
The name and mailing addresses of the Members are as follows:

 

	Name 	Address
	 	 
	Waypoint Bluerock	c/o Bluerock Real Estate, LLC
	Enders JV, LLC	70 East 55th Street, Suite 9
	 	New York, New York 10022
	 	 
	Waypoint Enders	c/o Waypoint Residential LLC
	Investors LP	Three Pickwick Plaza, 4th Floor
	 	Greenwich, Connecticut 06830

 

    	 

    	 

    

 

Section 1.3.          Certificate
of Formation; Other Certificates. The Managing Member, as an authorized person within the meaning of the Act, may execute,
deliver and file, or cause the execution, delivery and filing of, any amendments to and/or restatements of the Certificate and
any other certificates (and any amendments thereto and/or restatements thereof) necessary for the Company to qualify to do business
in a jurisdiction in which the Company may wish to conduct business.

 

Section 1.4.          Purpose.
The Company's business and purpose (the “Purpose”) shall consist solely of the following:

 

(a)          To
acquire, own, lease, sell, demise, transfer, finance, refinance, operate and/or manage 198 units (the "Property")
of that certain 220 unit condominium project commonly known as Enders Place located at 4248 New Broad
Street, Orlando, Florida 32814 (the “Project”), and to acquire, own, lease, sell, demise, transfer, finance,
refinance, operate and/or manage additional condominium units at the Project, pursuant to and in accordance with the Certificate
and this Agreement; and

 

(b)          to
engage in such other lawful activities permitted to limited liability companies by the applicable laws and statutes for such entities
of the State of Delaware as are incidental, necessary or appropriate to the foregoing.

 

Capitalized terms used
but not defined in Article VIII shall have the meanings ascribed to them in the Loan Agreement (as defined herein).

 

Section 1.5.          Powers.
The Company shall have the power to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or
convenient for the furtherance and accomplishment of the Purpose, and for the protection and benefit of its business.

 

Section 1.6.          Registered
Agent and Office. The Company’s initial registered agent and office shall be Corporation Services Company, located at
2711 Centerville Road, Suite 400, in the City of Wilmington, Delaware 19808. The principal business office of the Company shall
be located at such location as may hereafter be determined by the Managing Member. The Managing Member may change such registered
office, registered agent or principle place of business from time to time. The Company may from time to time have such other place
or places of business within or outside the State of Delaware.

 

Section 1.7.          Fiscal
Year. The fiscal year of the Company shall end on December 31 of each calendar year unless the Members otherwise decide for
United States federal income tax purposes and for accounting purposes.

 

ARTICLE II

Capital Contributions

 

Section 2.1.          Capital
Contributions. The Members have made initial capital contributions on a pro rata basis in proportion to their respective percentage
interest in the Company (“Sharing Percentages”), as such Sharing Percentages and initial capital contributions
are set forth on Schedule A attached hereto. Any contribution of capital to the Company will be made on a pro rata basis
by the Members if, as, and when called by the Members as provided for in Section 2.3 below.

 

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Section 2.2.          No
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 defined on Exhibit C) until
the full and complete winding up and liquidation of the business of the Company.

 

Section 2.3           No
Interest. The Members shall not be entitled to interest on their capital contributions, and any interest actually received
by reason of investment of any part of the Company’s funds shall be included in the Company’s property.

 

Section 2.4.          Member
Loans.

 

(A)         Subject
to the limitations set forth under “Major Decisions” described in Schedule B of this Agreement, additional capital
contributions (“Additional Capital Contributions”) may be called for from the Members (each such capital call
an “Additional Capital Call”), by the Managing Member if the same is a Protective Capital Call (as defined below
in Section 2.3(C)), or as otherwise agreed to by the Members, by written notice to the Members from time to time as and to the
extent capital is necessary to effect expenditures relating to the Property or the Company that are Protective Capital Calls. 
Except as otherwise agreed by the Members, such Additional Capital Contributions to be funded by each Member shall be in an
amount equal to the amount of the aggregate Additional Capital Call in proportion to each Member’s Sharing Percentage. Such
Additional Capital Contributions shall be payable by the Members to the Company upon the earlier of (i) thirty (30) days after
written request, or (ii) the date when the Additional Capital Contribution is reasonably required if same is a Protective Capital
Call, as set forth in a written request.

 

(B)         If
a Member (a “Defaulting Member”) fails to make its
Additional Capital Contribution that is required within the time frame required therein (the amount of its failed contribution
and related loan shall be the “Default Amount”), the other Member shall have the following remedy as its sole
remedy (each, a “Protective Advance”):

 

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(i)          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 eighteen (18%) percent per annum, but in no event in excess of the highest
rate permitted by applicable laws (the “Default Loan Rate”), and shall be payable by the Defaulting Member on
a priority basis from all distributions otherwise due to the Defaulting Member under Section 5.1(B). 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 but shall only be payable from distributions. In furtherance thereof, upon the making of such Default Loan,
the Defaulting Member hereby pledges, assigns and grants a security interest in its membership interest in the Company 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
2.4(B)(i) 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 under Section 5.1(B) 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 under Section 5.1(B), and (y) any proceeds of
the sale of the Defaulting Member’s membership interest in the Company

 

No
payments or distributions under Section 5.1(B) shall be made to
the Defaulting Member until the other Member’s Protective Advances have been paid, with applicable interest thereon.

 

(C)         For
purposes of the foregoing, “Protective Capital Call” shall mean an Additional Capital Call reasonably necessary
(a) for the timely payment of real estate taxes or insurance premiums or condominium, owner or similar association fees, dues or
assessments due under the condominium, or to effectuate emergency repairs to the Property; (b) to prevent a default with respect
to any financing obtained by the Company (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) to provide 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.).

 

(D)         Notwithstanding
the foregoing provisions of this Section 2.4, 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 is a party or by which
the Company or any of its properties or assets is or may be bound, (ii) any other Member, the Company shall be insolvent or bankrupt
or in the process of liquidation, termination or dissolution, (iii) any other Member or the Company 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
would have a material adverse effect on such other Member and/or the Company and/or would substantially interfere with their ability
to perform their material obligations hereunder or under 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 Asset Management Agreement and Property Management Agreement) (each a “Collateral Agreement”), (iv) there
has been a material adverse change in (including, but not limited to, the financial condition of) any other Member (and/or its
Affiliates) which, in Member’s reasonable judgment, prevents such other Member (and/or its Affiliates from performing, or
substantially interferes with their ability to perform, their material obligations hereunder or under any Collateral Agreement.
If any of the foregoing events shall have occurred and any Member elects not to make a Capital Contribution on account thereof,
then any other Member which has made its pro rata share of such Capital Contribution shall be entitled to a return of such Capital
Contribution from the Company.

 

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ARTICLE III

Rights and Obligations of the Members

 

Section 3.1.          Management.

 

(A)         Except
as otherwise expressly provided for herein, in accordance with Section 18-402 of the Act, the management, control, and direction
of the Company and its operations, business, and affairs shall be vested exclusively in the Managing Member, who shall have the
right, power, and authority, acting solely by itself and without the necessity of approval by any other person, to carry out any
and all of the purposes of the Company and to perform or refrain from performing any and all acts that the Managing Member may
deem necessary, appropriate, desirable, or incidental thereto.

 

(B)         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 Managing
Member 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.

 

(C)         The
Members shall establish a management committee (the “Management Committee”) for the Company the purpose of considering
and approving actions that constitute Major Decisions (as defined on Schedule B attached hereto). 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) Managing Member shall be entitled to designate two (2) Representatives
to represent the Managing Member; and (ii) the Non-Managing Member shall be entitled to designate two (2) Representatives to represent
the Non-Managing Member. The initial members of the Management Committee are set forth on Exhibit A. The Representatives
shall be the same four individuals as constitute the management committee of the Managing Member.

 

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(D)         Each
member of the Management Committee, subject to Section 3.1(D) 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 Member with the right to
appoint and remove such vacating Representative shall appoint his/her 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 the Managing Member transfers
all or a portion of its membership interest to a transferee permitted by Section 7.3, such transferee shall automatically,
and without any further action or authorization by any Member, succeed to the rights and powers of the Managing Member under this
Article III as may be agreed to between the Managing Member which is transferring the membership interest, on the hand,
and the permitted transferee to which the membership interest is being transferred, on the other hand, including the shared or
unilateral right to appoint the Representatives that the Managing Member was theretofore entitled to appoint pursuant to Section
3.1(C). If the Non-Managing Member transfers all or a portion of its membership interest to a transferee permitted pursuant
to Section 7.3, such permitted transferee shall automatically, and without any further action or authorization by any Member,
succeed to the rights and powers of the Non-Managing Member under this Article III as may be agreed to between the Non-Managing
Member which is transferring the membership interest, on the hand, and the permitted transferee to which the membership interest
is being transferred, on the other hand, including the shared or unilateral right to appoint the Representatives that the Non-Managing
Member was theretofore entitled to appoint pursuant to Section 3.1(C).

 

(E)         The
Management Committee shall meet once every quarter (unless waived by mutual agreement of the Members). The only Representatives
required to constitute a quorum for a meeting of the Management Committee's shall be one (1) Representative appointed by Managing
Member and one (1) Representative appointed by Non-Managing Member; provided, however, that if Non-Managing Member or
Managing Member has not appointed at least one (1) Representative to the Management Committee at the time of such meeting
or a Representative of Non-Managing Member or Managing Member as applicable
does not appear after two (2) due notices of such meeting, then a quorum for a meeting of the Management Committee shall
be one (1) Representative appointed by Managing Member or Non-Managing
Member, as applicable.

 

(F)         Each
of the two (2) Representatives appointed by Managing Member shall be entitled to cast two (2) votes on any matter that comes before
the Management Committee and each of the Representatives appointed by Non-Managing Member 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 of at least a majority of the votes of the Representatives then in office voting at a duly held meeting of the
Management Committee. Major Decisions proposed to be taken by the Company shall require the approval of the Management Committee,
it being expressly agreed that any Major Decision of the Company not approved by the Non-Managing Member shall entitle Non-Managing
Member to exercise its rights under Section 3.8 hereof, subject to any applicable time-related lockout as provided in such Section
(hereinafter, a “Lockout”); provided, however, it is expressly agreed that during any such lock-out, the Major Decision
shall be deemed disapproved by the Members.

 

(G)         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 3.1(G) shall constitute presence in person at such meeting.

 

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(H)         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.

 

(I)         Except
as otherwise expressly provided in this Agreement, none of the Members or their Representatives (in their capacities as members
of the Management Committee), 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 3.1(I) shall not eliminate or
limit the liability of such Representatives or the Members (A) for acts or omissions that involve fraud or a knowing and culpable
violation of law, or (B) for any transaction not permitted or authorized under or pursuant to this Agreement 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 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 other Member.

 

Section 3.2.          Liability
of the Members. Except as otherwise provided by the Act, the debts, obligations and liabilities of the Company, whether arising
in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and the Members shall not
be obligated personally for any such debt, obligation or liability of the Company solely by reason of being the Member of the Company.

 

Section 3.3.          Officers.
The Managing Member may (i) appoint one or more officers of the Company with such titles as the Managing Member may deem necessary,
appropriate, or desirable, and (ii) delegate any or all of its rights, powers, and authority to one or more of such officers as
the Managing Member may from time to time determine.

 

Section 3.4.          Reimbursement
of Expenses. The Company shall promptly reimburse the Members and their affiliates for all reasonable costs and other obligations
paid or incurred by them on behalf of the Company.

 

Section 3.5.          Other
Business. The Members may engage in or possess an interest in other business ventures of every kind and description, independently
or with others. The Company shall not have any rights in or to such independent ventures or the income or profits therefrom by
virtue of this Agreement.

 

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Section 3.6.          Tax
Matters Member. Managing Member is hereby designated as the Tax Matters Member. The “Tax Matters Member”
is authorized and required to represent the Company in connection with all tax audits, examinations and investigations of the affairs
of the Company by any federal, state or local tax authorities, including any resulting administrative and judicial proceedings,
and to expend funds of the Company for professional services and costs associated therewith. All expenses incurred in connection
with any such tax audit, examination or investigation shall be borne by the Company. The Tax Matters Member shall keep all Members
fully informed of the progress of any such examination, audit or other proceeding. The Tax Matters Member shall not settle or otherwise
compromise any such examination, audit or other proceeding without the consent of the Non-Managing Member. Each Member agrees to
cooperate with the Tax Matters Member and to do or refrain from doing any and all things reasonably required by the Tax Matters
Member in connection with the conduct of such proceedings. The Company hereby indemnifies and holds harmless the Managing Member
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, provided that any such action or failure to act does not constitute
gross negligence or willful misconduct.

 

Section 3.7.          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 the Management Committee. 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 the Managing Member shall be required prior to the use of the name “Bluerock”
in connection with any matter or transaction, and the written approval of Waypoint shall be required prior to the use of the name
“Waypoint” in connection with any matter or transaction. Notwithstanding the foregoing, the Members agree that the
initial Property Management Agreement and the initial Asset Management Agreement, each dated as of the date of this Agreement,
are hereby approved.

 

Section 3.8           Deadlock;
Buy-Sell. 

 

(A)         At
any time after (i)(a) the first anniversary of the date of the closing of the Property under that certain Real Estate Contract
of Sale dated as of June 4, 2012 between Enders Holdings LLC, as seller, and the Company, as purchaser (the “Closing Date”),
and (b) the Members are unable to agree unanimously on any Major Decision (other than with respect to a Refinancing Event (as defined
on Schedule B) that is not in connection with the termination of the condominium regime of the Property), or (ii)(x) the
second anniversary of the Closing Date, and (y) the Members are unable to agree unanimously on a Major Decision with respect to
a Refinancing Event, and, in either case of (i) or (ii) above, such failure to agree has continued for thirty (30) days after written
notice from one Member to the other Member indicating an intention to exercise rights under this buy-sell provision to
break the deadlock (the “Buy/Sell”), either Member may exercise its right to initiate the provisions
of the Buy/Sell. Prior to the expiration of the periods described in subsections (A)(i)(a) and (A)(i)(b) respectively, each a Lockout
Period, neither Member may initiate the provisions of the Buy/Sell.

 

(B)         The
Member wishing to exercise its rights pursuant to the Buy/Sell (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 the Buy/Sell,
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, free and clear of all liabilities.

 

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(C)         After
receipt of such notice, the Offeree shall elect to either (i) sell its entire interest in the Company 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 Buy/Sell Closing Date
(defined below) and the Company had immediately paid all Company liabilities and customary closing costs (which
expressly shall not include any loan defeasance, yield maintenance and/or pre-payment costs) and distributed the net proceeds
of sale to the Members in satisfaction of their interests in the Company, 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 Buy/Sell Closing Date and the Company had
immediately paid all Company liabilities and customary closing costs (which
expressly shall not include any loan defeasance, yield maintenance and/or pre-payment costs) and distributed the net proceeds
of the sale to the Members in satisfaction of their Interests. The Offeree shall have sixty (60) 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 within
such time period to acquire the Offeror’s Interest, the Offeree shall be deemed to have elected to sell its Interest to the
Offeror as provided in subsection (i) above. If Managing Member is the acquiring party, it shall also acquire from Non-Managing
Member the entire interest of Waypoint in the Managing Member or its designee for an amount Waypoint would have been entitled to
receive if the Company has sold all of its assets for the Valuation Amount on the Buy/Sell
Closing Date and Company had immediately paid all Company liabilities and customary closing costs
(which expressly shall not include any loan defeasance, yield maintenance and/or pre-payment costs) and distributed Managing
Member’s share of the net proceeds to Managing Member and then Managing Member further distributed such net proceeds to the
Members of the Managing Member. For purposes of clarification, if Non-Managing Member is the acquiring Member then Non-Managing
Member is still entitled to the amounts that are to be distributed to it (which shall occur on the Buy-Sell Closing Date) as a
Member of the Managing Member.

 

(D)         Within
five (5) business days after an election has been made or deemed made, the acquiring Member shall deposit with a mutually acceptable
third-party escrow agent a non-refundable earnest money deposit in the amount of five percent (5%) of the Valuation
Amount, which amount shall be applied to the purchase price at the
closing of the Buy-Sell Transfer (the “Buy-Sell Closing
Date”). 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 customary closing costs
(which expressly shall not include any loan defeasance, yield maintenance
and/or pre-payment costs) and distributed the net proceeds of the sale to the Members in satisfaction of their Interests,
in which case, the Buy-Sell 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 Valuation Amount in connection with such future election.

 

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(E)         The
Buy-Sell Closing Date of an acquisition shall be not later than
ninety (90) days after an election has been made or deemed made. At such closing, the following shall occur:

 

(1)         The
selling Member (and Waypoint GP, to the extent the selling Member is the Non-Managing Member) shall assign to the acquiring Member
or its designee the selling Member’s interest in the Company (and Managing Member, as applicable), and shall execute and
deliver to the acquiring Member all documents which may be reasonably 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 (and pay to Waypoint GP, as to its portion, to the extent the selling Member is
the Non-Managing Member) the consideration therefor in cash.

 

(F)         It
is expressly agreed that the remedy at law for breach of the obligations of the Members under this Agreement 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.

 

(G)         

 

(1)         Notwithstanding
anything to the contrary set forth herein, in the event that the acquiring Member is not Non-Managing Member or its affiliate,
then as a condition precedent to the Buy-Sell Closing Date, Managing Member shall procure either a release of Robert Rohdie
as a non-recourse carve-out guarantor and environmental indemnitor under the Loan in form and substance reasonably acceptable
to Mr. Rohdie, or Bluerock shall obtain at its sole cost and expense a
waiver from Mr. Rohdie of this obligation subject to Rohdie’s approval in his sole and absolute discretion.

 

(2)         Notwithstanding
anything to the contrary set forth herein, in the event that the acquiring Member is not Managing Member or its affiliate, then
as a condition precedent to the Buy-Sell Closing Date, Non-Managing Member shall procure either a release of Bluerock Special Opportunity
+ Income Fund III, LLC (“SOIF III”) as a non-recourse carve-out guarantor and environmental indemnitor under
the Loan in form and substance reasonably acceptable to SOIF III, or Waypoint
shall obtain at its sole cost and expense a waiver from SOIF III of this obligation subject to SOIF III’s approval in his
sole and absolute discretion.

 

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Section 3.9           Operation
in Accordance with REOC/REIT Requirements.

 

(a)          The Members acknowledge
that the Managing Member or one or more of its Affiliates (an “MM 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 shall at Managing Member’s
sole cost and expense be operated in a manner that will enable the Managing Member and any such MM Affiliate to so qualify. Notwithstanding
anything herein to the contrary, the Company shall not take, or refrain from taking, any action that would result in the Managing
Member or an MM Affiliate from failing to qualify as a REOC. The Members acknowledge and agree that the Managing Member may assign
any or all of its rights or powers under this Agreement as Managing Member to designate committee representatives, to provide consents
and approvals, or any other rights or powers to one or more of its MM Affiliates as it deems appropriate, and the exercise of any
such rights or powers by an MM Affiliate shall have full force and effect under this Agreement without the need for any further
consent or approval. The Non-Managing Member (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 requirements
specified by the Managing Member in order to ensure compliance with this Section 3.9.

 

(b)          Notwithstanding
anything in this Agreement to the contrary, unless specifically agreed to by the Management Committee in writing, the Company shall
not 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 (as hereafter
defined) Sections 511 through 514. All consents shall be filed with the minutes of the proceedings of the Management Committee.

 

(c)          Unless
specifically agreed to by the Management Committee in writing and subject to Article III and prior to the expiration of any applicable
Lockout Period, 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. Notwithstanding anything to
the contrary contained in this Agreement, during the time any REIT or direct or indirect subsidiary of a REIT (a “REIT
Member”) is a Member of the Company, neither the Company nor any
direct or indirect Subsidiary 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 one of the following REIT Prohibited Transactions by the Company or any direct
or indirect Subsidiary 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);

 

    	- 11 -

    	 

    

 

(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 the Property or 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, provided, that, this Section
3.9(c)(viii) shall in no way be read to increase the Lockout Period or affect the Buy/Sell rights of Non-Managing Member, 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.

 

    	- 12 -

    	 

    

 

(d)          Notwithstanding
the foregoing provisions of this Section 3.9 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 3.9. For purposes of this Section 3.9, “REIT Prohibited Transactions”
shall mean any of the actions specifically set forth in this Section 3.9. REIT shall mean a real estate investment trust
as defined in Section 856 of the Internal Revenue Code of 1986, as amended (the “Code”).

 

(e)          Managing
Member shall indemnify and hold harmless the Non-Managing Member from and against any loss, expense, or liability, including any
tax liability, incurred by the Non-Managing Member arising solely from the Company’s or the Managing Member’s compliance
with this Section 3.9.

 

Section 3.10         FCPA.

 

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

 

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

 

(B)         Each
Member agrees to notify promptly 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.

 

    	- 13 -

    	 

    

 

(C)         “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.

 

Section 3.11.         Condominium
Board. Subsequent to the acquisition of the Property, the Company shall own 90.0% of the condominium units in the Project.
As soon as is practicable following the acquisition of the Property, the Managing Member shall cause the Company to (i) nominate
the persons set forth on Exhibit D attached hereto to replace the existing board members of the owner’s association
of the Project; and (ii) call a meeting to elect such persons to the board of the Project’s owner’s association. These
new members of the board of the Project’s owner’s association shall be elected with the express purpose of effectuating
the intention of the Members and the Company to operate the Property as an apartment complex, and the Members and Company shall
direct the new board members to take all actions reasonably necessary to effectuate such purpose.

 

Section 3.12.         Prohibited
Actions. The following action shall not be taken by either Member,
without the prior written consent of the other Member:

 

(i)          The
admission, withdrawal or removal of any Member or the transfer of an interest of the Member in the Company where same would result
in a change of control of the entity holding such Member’s interest; provided, however, a transfer of an interest of a Member
may be made without the consent of the other Member (subject to any required Lender consent) if the Member remains indirectly controlled
by Waypoint Residential LLC (“Waypoint”) or Bluerock Real Estate, LLC (“Bluerock”), as applicable;

 

(ii)         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;

 

(iv)        any
Additional Capital Call from September 7, 2012 to the second anniversary of the Closing Date;

 

(v)         (A)
the sale of the Property prior to the first anniversary of the Closing Date, or (B) the sale of individual condominium units prior
to the second anniversary of the Closing Date; and

 

(vi)        material
increases from the approved annual operating budget in the amount of reserves for the Managing Member, Company and/or Property,
or material changes in the nature thereof from the approved annual operating budget.

 

    	- 14 -

    	 

    

 

ARTICLE IV

 Exculpation and Indemnification

 

Section 4.1.          Exculpation.
The Members shall not be liable to the Company or any other person or entity who has an interest in the Company for any loss, damage
or claim incurred by reason of any act or omission performed or omitted by the Members in good faith on behalf of the Company and
in a manner reasonably believed to be within the scope of the authority conferred on the Members in accordance with this Agreement.

 

Section 4.2.          Indemnification
by Company. The Company hereby indemnifies, holds harmless and defends the Members, the Managing Member, Representatives, the
officers and each of their respective agents, officers, directors, members, partners, shareholders and employees from and against
any loss, expense, damage or injury suffered or sustained by them (including but not limited to any judgment, award, settlement,
reasonable attorneys’ fees and other costs or expenses incurred in connection with the defense of any actual or threatened
action, proceeding or claim) by reason of or arising out of (i) their activities on behalf of the Company or in furtherance of
the interests of the Company, (ii) their status as Members, Managing Members, representatives, employees or officers of the Company,
or (iii) the Company’s assets, property, business or affairs (including, without limitation, the actions of any officer,
director, member or employee of the Company or any of its Subsidiaries), if the acts or omissions were not performed or omitted
fraudulently or as a result of gross negligence by the indemnified party or as a result of the willful breach of any obligation
under this Agreement by the indemnified party and only to the extent such actions or omissions do not accelerate any loan (including
the Loan) or trigger liability thereunder. For the purposes of this Section4.2, officers, directors, employees and other
representatives of Affiliates of a Member who are functioning as representatives of such Member in connection with this Agreement
shall be considered representatives of such Member for the purposes of this Article IV. 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.

 

Section
4.3           Indemnification by Members for Misconduct

 

(A)         Non-Managing
Member hereby indemnifies, defends and holds harmless the Company, the Managing Member, each permitted transferee of the Managing
Member and each of their subsidiaries and their agents, officers, directors, members, 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 (i) any fraud or gross negligence on the part of, or by, the Non-Managing Member, Asset Manager or any Representative
appointed by the Non-Managing Member, or (ii) the acts or omissions of the Non-Managing Member or any of its Affiliates attributable
solely to Non-Managing Member (or its Affiliate) that accelerate any loan (including the Loan) or trigger liability thereunder.

 

    	- 15 -

    	 

    

 

(B)         The
Managing Member hereby indemnifies, defends and holds harmless the Company, the Non-Managing Member, each permitted transferee
of the Non-Managing Member and each of their subsidiaries and their agents, officers, directors, members, 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 or gross negligence on the part of, or by, the Managing Member or any Representative
appointed by the Managing Member, or (ii) the acts or omissions of the Managing Member or any of its Affiliates attributable solely
to Managing Member (or its Affiliate) that accelerate any loan (including the Loan) or trigger liability thereunder

 

(C)         For
purposes of this Section 4.4, the action or omission to act by Waypoint Enders GP, LLC shall be considered an action or omission
of the Non-Managing Member and not the Managing Member.

 

Section
4.4           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, 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
4.4 shall be limited to such Indemnifying Party’s membership interest in the Company.

 

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

 

Section
4.5           Pledges of Membership Interests

 

(a)          As
of the date on which the Loan is paid off or such other date on which the restrictions on transfer of membership interests in the
Company become inapplicable (the “Pledge Date”), each Member shall execute and deliver to the other Member a
certain Pledge Agreement (the “Pledge Agreement”) and related documents pursuant to which each Member grants
to the other Member a lien upon and a continuing interest in its membership interest in the Company and such other rights pledged
under the Pledge Agreement (collectively, the “Indemnity Collateral”) as security for the indemnity obligations
of the Non-Managing Member under Section 4.3(A), on the one hand, and as security for the indemnity obligations of the Managing
Member under Section 4.3(B), on the other hand. Any transfer by a Member of its membership interest subsequent to the Pledge
Date shall be subject to the lien and security interest granted hereby until and unless such lien and security interest is released
by the applicable Member.

 

    	- 16 -

    	 

    

 

(b)          Each
Member shall, on the Pledge Date, have prepared and filed UCC financing statements and such other documents and have taken such
other action necessary to grant to the other Member a fully perfected first priority security interest in all of such Member’s
membership interest in the Company. From and after the Pledge Date, each Indemnified Party shall have all of the rights then or
thereafter existing under applicable law, and all rights as a secured creditor under the Uniform Commercial Code in all relevant
jurisdictions, with respect to the Indemnity Collateral, and each Member agrees to take all such actions as may be reasonably requested
of it by an Indemnified Party to ensure that the Indemnified Parties can realize on such security interest.

 

Section 4.6.          Limitation
on Liability. Except as set forth in Section 4 and with respect to a Default Loan as set forth in Section 2.4(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 Article II. Except as set forth in Section
4.3 and with respect to a Default Loan as set forth in Section 2.4(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 in the Company, 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 6.3(d) hereof. Except as
set forth in Section 4.3 and with respect to a Default Loan as set forth in Section 2.4(B), any right to proceed
against any other assets of the Member in Question is hereby irrevocably and unconditionally waived. Any right to proceed against
any agent, officer, director, member, partner, shareholder or employee of the Member in Question or the assets of any such Person,
as a result of such a claim against the Member in Question arising under this Agreement or otherwise is hereby irrevocably and
unconditionally waived.

ARTICLE V

Distributions

 

Section 5.1.          Distributions.
Distributable Funds (as defined in Section 5.2 below) shall be distributed to the Members, no less often than on a monthly basis,
at the times determined by the Managing Member, as follows:

 

(A)         First,
to the Managing Member in an amount equal to any Special Management Incentive Fee Allocation; and

 

(B)         Second,
to the Members in proportion to their respective Sharing Percentages.

 

    	- 17 -

    	 

    

 

Section 5.2.          Definition
of Distributable Funds. For purposes of this Agreement, “Distributable Funds” shall mean, with respect to
any month or other period, as applicable, as reasonably determined by Non-Managing Member (subject to any material change in reserves
triggering a Prohibited Action (as defined in Section 5.3 below), the sum of (1) (x) an amount equal to the net cash flow of the
Company for such month or other period, as applicable, as reduced by (y) reserves for anticipated capital expenditures, future
working capital needs and operating expenses, contingent obligations and other purposes, the amounts of which shall be determined
pursuant to the approved annual operating budget, and (2) any extraordinary cash flow proceeds from the sale, refinance or other
liquidation of the property after full payment of any mortgage debt and related closing costs and reserves for contingent obligations.

 

Section 5.3.          Definition
of Special Management Incentive Fee Allocation. “Special Incentive Management Fee Allocation” means an amount
equal to any portion of that certain incentive fee set forth in Section 1.02(b) of the Property Management Agreement between the
Company and Bridge Real Estate Group, LLC (D/B/A Waypoint Management) (the “Property Manager”), which is not
paid to the Property Manager because the performance hurdle is not met and thus becomes payable to BR Enders Managing Members,
LLC.

 

ARTICLE VI

Dissolution and Termination

 

Section 6.1.          Dissolution.
The Company shall dissolve and its affairs shall be wound up upon the first to occur of the following: (i) the unanimous written
consent of all of the Members; or (ii) the entry of a decree of judicial dissolution under Section 18-802 of the Act.

 

Section 6.2.          Intentionally
Omitted.

 

Section 6.3           Liquidation.
In the event of dissolution, 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 6.3,
as promptly as practicable thereafter, and each of the following shall be accomplished:

 

(a)          The
Managing Member 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 on Exhibit C. 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 Exhibit C and the amount of the distribution shall be considered to be such fair market value
of the asset.

 

    	- 18 -

    	 

    

 

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

 

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

 

(ii)         the
balance, if any, to the Members in accordance with Section 5.1.

 

Section 6.4.          Termination.
The liquidation and winding up of the Company shall be completed when all of its debts, liabilities, and obligations have been
paid and discharged or reasonably adequate provision therefor has been made, and all of the remaining assets and properties of
the Company have been distributed to the Members in accordance with Section 6.3 above. Upon the completion of the liquidation and
winding up of the Company, a certificate of cancellation of the Company shall be filed with the Secretary of State of Delaware
and the legal existence of the Company shall terminate.

 

Section 6.5.          No
Negative Capital Account Obligation. Notwithstanding any other provision of this Agreement to the contrary, in no event shall
any Member if it has a negative capital account upon final distribution of all cash and other property of the Company be required
to restore such negative capital account to zero.

 

Section 6.6.         No
Other Cause for Dissolution. The Company shall not be dissolved, or its legal existence terminated, for any reason whatsoever
except as expressly provided in this Article VI.

 

ARTICLE VII

Miscellaneous

 

Section 7.1.          Taxes.
For U.S. federal income tax purposes, the Company shall be treated as a partnership. Exhibit C attached hereto provides
the parties agreement with respect to certain tax matters.

 

Section 7.2.          Amendment.
No change, modification, or amendment of this Agreement shall be valid or binding unless such change, modification, or amendment
shall be in writing and duly executed by all of the Members.

 

Section 7.3.          Assignment.
The Members may not at any time sell, assign, or otherwise transfer in whole, or in part, their membership interests in the Company
without the prior written approval of the other Member. Notwithstanding the foregoing, the Members may transfer their interests
in the Company without the consent of the other Member only in the event such transferring Member remains directly or indirectly
controlled by either Waypoint or Bluerock, as applicable. Upon any such transfer, the transferee shall succeed to the rights and
obligations of such Member in respect of the interest in the Company so transferred and shall become a Member of the Company in
respect of such interest. Upon such transfer of a Member’s entire interest in the Company, such Member shall be entitled
to be deemed to have automatically resigned and withdrawn as a Member of the Company without any further action on the part of
any other person.         

 

    	- 19 -

    	 

    

 

Section 7.4.          Entire
Agreement. This Agreement constitutes the entire agreement of the Members with respect to the subject matter hereof.

 

Section 7.5.          Severability.
Each provision of this Agreement shall be considered separable, and if for any reason any provision or provisions herein are determined
to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall
not impair the operation of or affect those portions of this Agreement that are valid, enforceable and legal.

 

Section 7.6.          Governing
Law. This Agreement shall be governed by, and construed under, the internal laws of the State of Delaware (without regard to
the conflict of laws principles thereof), all rights and remedies being governed by said laws. Each of the parties hereto irrevocably
submits to the jurisdiction of the New York State courts and the Federal courts sitting in the State of New York and agree that
all matters involving this Agreement shall be heard and determined in such courts. Each of the parties hereto waives irrevocably
any objection it may have based on venue and 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.

 

Section 7.7.          Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of the Members and their successors and assigns.

 

Section 7.8.          Headings.
The section and article headings in this agreement are for convenience of reference only and shall not be deemed to alter or affect
the meaning or interpretation of any provision hereof.

 

Section 7.9.         Other Terms.
All references to “Articles” and “Sections” contained in this Agreement are, unless specifically indicated
otherwise, references to Articles and Sections of this Agreement. Whenever in this Agreement the singular number is used, the same
shall include the plural where appropriate (and vice versa), and words of any gender shall included each other gender where appropriate.
As used in this Agreement, the following words or phrases shall have the meanings indicated: (i) “or” means
“and/or”; (ii) “day” means a calendar day; (iii) “include,” “including,”
or their derivatives means “including without limitation”; (iv) “laws” means statutes, regulations,
rules, judicial orders, and other legal pronouncements having the effect of law; and (v) “person” means any
individual, corporation, general or limited partnership, limited liability company, joint venture, trust, unincorporated association,
or other form of business or legal entity or governmental entity.

 

Section 7.10.         Sole
Benefit of the Members. The provisions of this Agreement are intended solely to benefit the Members, and, to the fullest extent
permitted by applicable law, shall not be construed as conferring any benefit upon any creditor of the Company (and no such creditor
shall be a third-party beneficiary of this Agreement), and the Members shall not have any duty or obligation to any creditor of
the Company to make any contributions or payments to the Company.

 

    	- 20 -

    	 

    

 

Section 7.11.         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 Managing Member:

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

Heron Tower

70 East 55th Street, 9th
Floor

New York, New York 10022

Attention: James G. Babb, III

 

with a copy to:

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

Heron Tower

70 East 55th Street, 9th Floor

New York, New York 10022

Attention: Michael Konig, Esq.

Telephone: (646) 278-4230

Facsimile:

E-mail: mkonig@bluerockre.com

 

If to Non-Managing
Member:

c/oWaypoint Residential

555 North Point Center East, Suite
408

Alpharetta, Georgia 30022

Attention: Eric Hade, Esq.

 

with a copy to:

Reed Smith

599 Lexington Avenue

22nd Floor

New York, New York

Attention: Thomas G. Maira, Esq.

Telephone: (212) 205-6110

Facsimile:

E-mail: tmaira@reedsmith.com

 

(B)         Each
such notice shall be deemed delivered (a) on the date delivered if by hand delivery or overnight courier service or facsimile,
and (b) on the date upon which the return receipt is signed or delivery is refused or the notice is designated by the postal authorities
as not deliverable, as the case may be, if mailed (provided, however, if such actual delivery occurs after 5:00 p.m. (local time
where received), then such notice or demand shall be deemed delivered on the immediately following business day after the actual
day of delivery).

 

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(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.

 

Section 7.12         Public
Announcements. The terms and conditions of this Agreement are confidential and are not to be disclosed by the Managing Member
or the Non-Managing Member to anyone outside such party other than to legal counsel and other professional advisors who need to
know such information in connection with the transactions contemplated herein. The Managing Member and the Non-Managing Member
shall be permitted to make any disclosure required by law, including such disclosures as may be required under Federal or state
securities law. Non-Managing Member may disclose the terms and conditions of this letter and materials related hereto to Robert
Rohdie and its other potential partners , investors, or members, and its potential joint venture partners, financing sources, legal
counsel and other agents and representatives who need to know such information in connection with the transactions contemplated
herein.

 

ARTICLE VIII

SPE Requirements

 

Section 8.1.       Limitations/Separateness
Covenants. Notwithstanding any other provision of this Agreement and any provision of law that otherwise so empowers the Company,
so long as any portion of the Loan (hereinafter defined) remains outstanding, the Company:

 

(i)          shall
not engage in any business or activity, other than the ownership, leasing, sale, financing, operation and/or maintenance of the
Property and activities incidental thereto;

 

(ii)         shall
not acquire, own, hold, lease, operate, manage, maintain, develop or improve any assets other than the Property and such personalty
as may be necessary for the operation of the Property and shall conduct and operate its business as presently conducted and operated;

 

(iii)        shall
preserve its existence as an entity duly organized, validly existing and in good standing (if applicable) under the laws of the
jurisdiction of its formation or organization and shall do all things necessary to observe organizational formalities;

 

(iv)        shall
not merge or consolidate with any other Person;

 

    	- 22 -

    	 

    

 

(v)         shall
not take any action to dissolve, wind-up, terminate or liquidate in whole or in part; to sell, transfer or otherwise dispose of
all or substantially all of its assets; to change its legal structure; transfer or permit the direct or indirect transfer of any
partnership, membership or other equity interests, as applicable, other than Transfers permitted under the Loan Agreement (as hereinafter
defined); issue additional partnership, membership or other equity interests, as applicable; or seek to accomplish any of the foregoing;

 

(vi)        shall
not, without the prior unanimous written consent of all of the Company’s partners, members, or shareholders, as applicable,
and, if applicable, the prior unanimous written consent of 100% of the members of the board of directors or of the board of managers
of the Company or any SPE Equity Owner (as defined in the Loan Agreement):

 

(A)         file
any insolvency, or reorganization case or proceeding, to institute proceedings to have the Company or any SPE Equity Owner be adjudicated
bankrupt or insolvent,

 

(B)         institute
proceedings under any applicable insolvency law,

 

(C)         seek
any relief under any law relating to relief from debts or the protection of debtors,

 

(D)         consent
to the filing or institution of bankruptcy or insolvency proceedings against the Company or any SPE Equity Owner,

 

(E)         file
a petition seeking, or consent to, reorganization or relief with respect to the Company or any SPE Equity Owner under any applicable
federal or state law relating to bankruptcy or insolvency,

 

(F)         seek
or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian, or any similar official for
the Company or a substantial part of its property or any SPE Equity Owner or a substantial part of its property,

 

(G)         make
any assignment for the benefit of creditors of the Company,

 

(H)         admit
in writing the Company’s or any SPE Equity Owner’s inability to pay its debts generally as they become due, or

 

(I)         take
action in furtherance of any of the foregoing;

 

(vii)       shall
not amend or restate its organizational documents if such change would cause the provisions set forth in the organizational documents
not to comply with the requirements set forth in Section 6.13 of the Loan Agreement (the “Loan Agreement”) executed
by Company in favor of Lender (as hereinafter defined) in connection with the Loan (as hereinafter defined);

 

(viii)      shall
not own any subsidiary or make any investment in, any other Person;

 

    	- 23 -

    	 

    

 

(ix)         shall
not commingle its assets with the assets of any other Person and shall hold all of its assets in its own name;

 

(x)          shall
not incur any debt, secured or unsecured, direct or contingent (including, without limitation, guaranteeing any obligation), other
than, (A) the loan from Jones Lang LaSalle (the “Lender”) in the amount of $17,500,000.00 (the “Loan”)
(and any further indebtedness as described in Section 11.11 of the Loan Agreement with regard to supplemental financing) and (B)
customary unsecured trade payables incurred in the ordinary course of owning and operating the Property provided the same are not
evidenced by a promissory note, do not exceed, in the aggregate, at any time a maximum amount of two percent (2%) of the original
principal amount of the Indebtedness and are paid within sixty (60) days of the date incurred;

 

(xi)         shall
maintain its records, books of account, bank accounts, financial statements, accounting records and other entity documents separate
and apart from those of any other Person and shall not list its assets as assets on the financial statement of any other Person;
provided, however, that the Company’s assets may be included in a consolidated financial statement of its Affiliate provided
that (A) appropriate notation shall be made on such consolidated financial statements to indicate the separateness of the Company
from such Affiliate and to indicate that the Company’s assets and credit are not available to satisfy the debts and other
obligations of such Affiliate or any other Person and (B) such assets shall also be listed on the Company’s own separate
balance sheet;

 

(xii)        except
for capital contributions or capital distributions permitted under the terms and conditions of its organizational documents, shall
only enter into any contract or agreement with any general partner, member, shareholder, principal or Affiliate of Company or any
guarantor, or any general partner, member, principal or Affiliate thereof, upon terms and conditions that are commercially reasonable
and substantially similar to those that would be available on an arm’s-length basis with third parties;

 

(xiii)       shall
not maintain its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual
assets from those of any other Person;

 

(xiv)      shall
not assume or guaranty (excluding any guaranty that has been executed and delivered in connection with the Loan) the debts or obligations
of any other Person, hold itself out to be responsible for the debts of another Person, pledge its assets to secure the obligations
of any other Person or otherwise pledge its assets for the benefit of any other Person, or hold out its credit as being available
to satisfy the obligations of any other Person;

 

    	- 24 -

    	 

    

 

(xv)       shall
not make or permit to remain outstanding any loans or advances to any other Person except for those investments permitted under
the Loan Documents and shall not buy or hold evidence of indebtedness issued by any other Person (other than cash or investment-grade
securities);

 

(xvi)      shall
file its own tax returns separate from those of any other Person, except to the extent that the Company is treated as a “disregarded
entity” for tax purposes and is not required to file tax returns under applicable law, and shall pay any taxes required to
be paid under applicable law;

 

(xvii)     shall
hold itself out to the public as a legal entity separate and distinct from any other Person and conduct its business solely in
its own name, shall correct any known misunderstanding regarding its separate identity and shall not identify itself or any of
its Affiliates as a division or department of any other Person;

 

(xviii)    shall
maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light
of its contemplated business operations and shall pay its debts and liabilities from its own assets as the same shall become due;
provided, however, the aforementioned shall not be deemed to require any Member of the Company to contribute additional capital
to the Company;

 

(xix)       shall
allocate fairly and reasonably shared expenses with Affiliates (including, without limitation, shared office space) and use separate
stationery, invoices and checks bearing its own name;

 

(xx)        shall
pay (or cause the Property Manager to pay on behalf of the Company from the Company’s funds) its own liabilities (including,
without limitation, salaries of its own employees) from its own funds;

 

(xxi)       shall
not acquire obligations or securities of its partners, members, shareholders, or Affiliates, as applicable;

 

(xxii)      except
as contemplated or permitted by the property management agreement with respect to the Property Manager, shall not permit any Affiliate
or constituent party independent access to its bank accounts;

 

(xxiii)     shall
maintain a sufficient number of employees (if any) in light of its contemplated business operations and pay the salaries of its
own employees, if any, only from its own funds;

 

(xxiv)    Company
shall be formed and organized under Delaware law.

 

Section 8.2.        Title to Company
Property. All property owned by the Company shall be owned by the Company as an entity and, insofar as permitted by applicable
law, no member or manager shall have any ownership interest in any company property in its individual name or right and, each membership
or other ownership interest in the Company shall be personal property for all purposes.

 

    	- 25 -

    	 

    

 

Section 8.3.         Effect of Bankruptcy,
Death or Incompetency of a Member. The bankruptcy, death, dissolution, liquidation, termination or adjudication of incompetency
of a Member shall not cause the termination or dissolution of the Company and the business of the Company shall continue. Upon
any such occurrence, the trustee, receiver, executor, administrator, committee, guardian or conservator of such Member shall have
all the rights of such Member for the purpose of settling or managing its estate or property, subject to satisfying conditions
precedent to the admission of such assignee as a substitute Member. The transfer by such trustee, receiver, executor, administrator,
committee, guardian or conservator of any membership interest in the Company shall be subject to all of the restrictions, hereunder
to which such transfer would have been subject if such transfer had been made by such bankrupt, deceased, dissolved, liquidated,
terminated or incompetent Member. Each Member waives any right it may have to agree in writing to dissolve the Company upon the
bankruptcy of any Member or the occurrence of an event that causes any Member to cease to be members in the Company.

 

Section 8.4.          Subordination
of Indemnities. All indemnification obligations of the Company are fully subordinated to any obligations relative to the Loan
or respecting the Property and such indemnification obligations shall in no event constitute a claim against the Company if cash
flow in excess of amounts necessary to pay obligations under the Loan is insufficient to pay such indemnification obligations.

 

Section 8.5.          Non-Dissolution.
Notwithstanding any other provision of this Agreement, the bankruptcy of the Members shall not cause the Members to cease to be
a member of the Company and upon the occurrence of such an event, the Company shall continue without dissolution. Notwithstanding
any other provision of this Agreement, each of the Members and waives any right it might have to agree in writing to dissolve the
Company upon the bankruptcy of the Members, or the occurrence of an event that causes the Members to cease to be a member of the
Company.

 

ARTICLE IX

Representations and Warranties

 

Section 9.1.          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 9.2. Such representations and warranties shall survive the execution or the termination
of this Agreement.

 

A.           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.

 

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(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.

 

    	- 27 -

    	 

    

 

(e)          Investigation.
Such Member is acquiring its membership 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.
Other than Jones Lang LaSalle, 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. The Company shall be obligated to pay an amount up to $75,000
of the equity fee payable to Jones Lang LaSalle, and Bluerock shall be required to pay for any excess amount attributable to such
fee.

 

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

 

(h)          Securities
Matters.

 

(i)          None
of the membership 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.

 

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

 

(iii)        Such
Member is unaware of, and in no way relying on, any form of general solicitation or general advertising in connection with the
offer and sale of the membership interests, and no Member has taken any action which could give rise to any claim by any person,
other than Jones Lang LaSalle, for brokerage commissions, finders’ fees or the like relating to the transactions contemplated
hereby.

 

    	- 28 -

    	 

    

 

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

 

(v)         Such
Member understands that the membership 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 membership interests
in violation of this Agreement.

 

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

 

(vii)       Such
Member is knowledgeable about investment considerations and has a sufficient net worth to sustain a loss of such Member’s
entire investment in the Company in the event such a loss should occur. The investment in the membership interests is suitable
for such Member.

 

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

 

Each Member’s Capital Contributions have been raised in
compliance with the Securities Act of 1933, as amended, and applicable state securities laws.

 

ARTICLE X

 Confidentiality

 

Section
10.1         Confidential Information;
Disclosure. 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:

 

    	- 29 -

    	 

    

 

(x)          is
or hereafter becomes public, other than by breach of this Agreement;

 

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

 

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

 

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

 

Section 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.

 

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

 

ARTICLE XI

Books, Records and
Bank Accounts

 

Section 11.1         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 Asset Manager Reports. The books and records shall be maintained at the Company’s principal office
or at a location designated by the Managing Member, 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 Waypoint Residential, LLC (the “Asset 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 Asset Manager in respect of the Company or any of its subsidiaries.

 

    	- 30 -

    	 

    

 

Section
11.2          Reports and Financial Statements.

 

(A)         Within
fifteen (15) days of the end of each Fiscal Year, the Managing Member shall cause each Member to be furnished with two sets of
the following additional annual reports computed as of the last day of the Fiscal Year:

 

(i)          An
unaudited balance sheet of the Company;

 

(ii)         An
unaudited statement of the Company’s profit and loss; and

 

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

 

(B)         Within
fifteen (15) days of the end of each quarter of each Fiscal Year, the Asset Manager shall cause to be furnished to the Managing
Member such information as requested by the Managing Member as is necessary for any REIT Member to determine its qualification
as a REIT and its compliance with REIT Requirements as shall be requested by the Managing Member. Further, the Asset 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. Notwithstanding the foregoing, Managing
Member (and further, BR Enders Managing Member, LLC), and not Waypoint Investors LP or the Company, shall bear the cost of any
audit or other accounting procedure required to be performed because of Bluerock’s public company reporting requirements
or REIT Requirements or REOC requirements or otherwise pursuant to Section 3.9.

 

(C)          The
Members acknowledge that the Asset Manager is obligated to perform Project-related accounting and furnish Project-related accounting
statements under the terms of the Asset Management Agreement (the “Asset Manager Reports”). The Managing Member
shall be entitled to rely on the Asset Manager Reports with respect to its obligations under this Article XI, and the Members
acknowledge that the reports to be furnished shall be based on the Asset Manager Reports, without any duty on the part of the Manager
to further investigate the completeness, accuracy or adequacy of the Asset Manager Reports.

 

Section 11.3         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 Managing Member and shall be withdrawn on the signature of such Person or Persons as the Managing Member may
authorize.

 

    	- 31 -

    	 

    

 

Section 11.4         Tax
Returns. The Managing Member 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
ten (10) 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, the Managing Member 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.

 

Section 11.5         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 Managing Member in connection with its obligations under this Article
XI will be reimbursed by the Company to the Managing Member.

 

[Remainder
of page intentionally left blank]

 

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IN WITNESS WHEREOF,
the undersigned, intending to be legally bound hereby, have duly executed this Agreement as of the date first written above.

 

	 	MANAGING MEMBER:
	 	 
	 	WAYPOINT BLUEROCK ENDERS JV, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: BR Enders Managing Member, LLC,
	 	a Delaware limited liability company
	 	Its: Managing Member
	 	 
	 	By: Bluerock Special Opportunity + Income III, LLC
	 	a Delaware limited liability company
	 	Its: Manager
	 	 
	 	By: BR SOIF III Manager, LLC
	 	a Delaware limited liability
	 	Its: Manager
	 	 
	 	By:	/s/ Jordan B. Ruddy
	 	Name:  Jordan B. Ruddy
	 	Its:  President
	 	 
	 	NON-MANAGING MEMBER:
	 	 
	 	WAYPOINT ENDERS INVESTORS LP,
	 	a Delaware limited partnership
	 	 
	 	By:	/s/ Linda Lewis
	 	 	Name: Linda Lewis
	 	 	Title: Authorized Signatory
	 	 	 	 

 [Signature Page to Amended and Restated
Limited Liability Company Agreement of Waypoint Enders Owner, LLC]

 

    	- 33 -

    	 

    

 

SCHEDULE A

 

SHARING PERCENTAGES

 

	MEMBER	 	ADDRESS	 	SHARING 

PERCENTAGE	 	 	INITIAL CAPITAL 

CONTRIBUTION	 
	Waypoint

 Bluerock Enders

 JV, LLC	 	c/o Bluerock Real Estate, LLC
 70 East 55th Street, Suite 9
 New York, New York 10022	 	 	51.00	%	 	$	4,685,880	 
	 	 	 	 	 	 	 	 	 	 	 
	Waypoint Enders

 Investors LP	 	c/o Waypoint Residential LLC
 Three Pickwick Plaza, 4th Fl.
 Greenwich, Connecticut 06830	 	 	49.00	%	 	$	4,502,120	 
	TOTAL	 	 	 	 	100.00	%	 	$	9,188,000	 

 

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SCHEDULE B

 

MAJOR DECISIONS

 

“Major Decision” shall
mean 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)          hiring
or terminating any property manager or asset manager or entering into any property management agreement or asset management agreement
for the Property, provided, however, that in the event that trailing six (6) months net operating income falls below the budget
(exclusive of Uncontrollable Expenses (as defined below) and using the Base Property Management Fee
of 3.3675% per annum)
by more than 7.5%, then Managing Member shall have the option upon thirty (30) days’ notice to cause the then pending property
manager to be terminated as the property manager and Non-Managing Member shall then promptly select a replacement property manager,
subject to the consent of Managing Member, not to be unreasonably withheld;

 

(ii)         approval
of the annual (i) operating budget, provided however that (a) the annual operating budget for the balance of 2012 and for 2013
has been agreed by Managing Member and Non-Managing Member as of September 7, 2012 (the “Go Forward Date”),
(b) that in the event the parties do not agree on a 2014 operating budget, the 2014 operating budget will be deemed to be the 2013
operating budget subject to increases (i) for CPI on labor costs, and (ii) for the actual cost of real estate taxes, insurance,
utilities, condominium, owner and similar association fees (collectively, “Uncontrollable Expenses”)), and (c)
the approval of the annual operating budget for the year 2015 and any year thereafter shall be a Major Decision and (ii) capital
budget for the Property, provided, however the amount of $693,000 in the aggregate established at Closing as the Renovation/Upfront
Capital Reserve shall be the aggregate capital budget for the years 2012, 2013 and 2014, and the approval of the annual capital
budget for 2015 and any year thereafter shall be a Major Decision;

 

(iii)        any
merger, conversion, consolidation or exchange involving (i) the
Company or the (ii) 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;

 

(iv)        refinancing,
giving, granting or undertaking any deeds of trust, mortgages, pledges, ground leases, security or other interests in or encumbering
the Property, any portion thereof or any other material assets or the entering into of any agreement, commitment or assumption
with respect to any of the foregoing (specifically including the selection of the lender/counterparty and approval of all terms
and conditions of the relevant agreement), other than pursuant to the Loan (collectively, a “Refinancing Event”);

 

    	- 35 -

    	 

    

 

(v)         selling
or conveying (i) the Property, any subsidiary or other material asset of the Company or the entering into of any agreement or commitment
with respect to any of the foregoing, after the first anniversary of the Closing Date, or (ii) individual condominium units after
the second anniversary of the Closing Date, or the entering into of any agreement or commitment with respect to such sales (with
either such acts described in (i) and (ii) above prior to such respective anniversaries being Prohibited Actions as set forth in
Section 5.4);

 

(vi)        acquiring
by purchase, ground lease or otherwise, any real property (other than the Property) or other material asset or the entry into 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 material action with respect to any condominium or owner’s association affecting the Property, including without limitation
any material vote as a member of the condominium or owner’s association or collapsing the condominium;

 

(viii)      filing
or consenting to any bankruptcy or insolvency or similar action, or taking any action by the Company that is reasonably
likely to result in any Member or any of its affiliates or Robert Rohdie having individual liability under any so called non-recourse
carve-out guaranties, environmental indemnities or similar agreements provided to third party lenders (including Lender) in respect
of financings relating to the Company, its subsidiaries or any of their assets; and

 

(ix)         making
any Additional Capital Calls after the second anniversary of the Closing Date, other than (i) Capital Calls for the $693,000 initial
capital budget, and (ii) Protective Capital Calls, with such Capital Calls described in (i) and (ii) above being able to be made
by either Member as a non-Major Decision prior to the second anniversary of the Closing Date.

 

    	- 36 -

    	 

    

 

Exhibit C

 

1.          Tax
Definitions. As used in this Agreement:

 

(a)          “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)(1) and 1.704-2(i)(5), and (ii) debiting
such Capital Account by the amount of the items described in Regulations Sections 1.704-1(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.

 

(b)          “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.

 

(c)          “Capital
Account” shall have the meaning set forth in Section 2 of this Exhibit C.

 

(d)          “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).

 

(e)          “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.

 

(f)          “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.

 

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

 

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

 

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

 

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

 

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

 

(l)          “Nonrecourse
Deduction” shall have the meaning given such term in Regulations Section 1.704-2(b)(1).

 

(m)          “Nonrecourse
Liability” shall have the meaning given such term in Regulations Section 1.704-2(b)(3).

 

    	- 37 -

    	 

    

 

(n)          “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.

 

2.          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.
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. The Capital Accounts of the Members shall not be increased or
decreased pursuant to Regulations Section 1.704-1(b)(2)(iv)(f) to reflect a revaluation of the Company’s assets on the Company’s
books in connection with any contribution of money or other property to the Company pursuant to ARTICLE II 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 5.1 or Section 6.3. 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.

 

3.          Allocations

 

(a)          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 5.1 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 5.1
immediately after such allocation.

 

(b)          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 6.3 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 6.3

 

    	- 38 -

    	 

    

 

(c)          U.S.
Tax Allocations.

 

(1)         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.

 

(2)         Code
Section 704(c). In accordance with Code Section 704(c) and the Treasury regulations promulgated thereunder, income and loss
with respect to any property contributed to the capital of the Company (including, if the property so contributed constitutes a
partnership interest, the applicable distributive share of each item of income, gain, loss, expense and other items attributable
to such partnership interest whether expressly so allocated or reflected in partnership allocations) shall, solely for U.S. federal
income tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such property
to the Company for U.S. federal income tax purposes and its Agreed Upon Value at the time of contribution. Such allocation shall
be made in accordance with such method set forth in Regulations Section 1.704-3(b) as the Manager in its reasonable discretion
approves.

 

(3)         
Any elections or other decisions relating to such allocations shall be made by the Managing Member 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.

 

    	- 39 -Freddie Mac Loan Number: 708272169

Property Name: Enders Place at Baldwin Park

 

MULTIFAMILY NOTE

(CME)

 

MULTISTATE
– FIXED RATE 

DEFEASANCE

 

(Revised 2-2-2012)

 

	US $17,500,000.00	Effective Date: October
    2, 2012

 

FOR VALUE RECEIVED, WAYPOINT ENDERS OWNER, LLC, a Delaware
limited liability company (together with such party’s or parties’ successors and assigns, “Borrower”)
jointly and severally (if more than one) promises to pay to the order of JONES LANG LASALLE OPERATIONS, L.L.C., an Illinois limited
liability company, the principal sum of $17,500,000.00, with interest on the unpaid principal balance, as hereinafter provided.

 

1.          Defined
Terms.

 

(a)          As
used in this Note:

 

“Base Recourse” means a portion
of the Indebtedness equal to 0.00% of the original principal balance of this Note.

 

“Business Day” means any day other
than a Saturday, a Sunday or any other day on which Lender or the national banking associations are not open for business.

 

“Cut-off Date” means the 12th
Installment Due Date.

 

“Defeasance Date” means the 2nd
anniversary of the “startup date” of the last REMIC within the meaning of Section 860G(a)(9) of the Tax
Code which holds all or any portion of the Loan.

 

“Default Rate” means an annual interest
rate equal to 4 percentage points above the Fixed Interest Rate. However, at no time will the Default Rate exceed the Maximum
Interest Rate.

 

“Defeasance Period” is the period
beginning the day after the Defeasance Date until but not including the first day of the Window Period. The Defeasance Period
only applies if this Note is assigned to a REMIC trust prior to the Cut-off Date.

 

“Fixed Interest Rate” means the
annual interest rate of 3.970%.

 

	Multifamily Multistate Fixed
    Rate Note (CME)

    	Defeasance	 

    	 

    

 

“Installment Due Date” means, for
any monthly installment of interest-only or principal and interest, the date on which such monthly installment is due and payable
pursuant to Section 3 of this Note. The “First Installment Due Date” under this Note is December
1, 2012.

 

“Lender” means the holder from time
to time of this Note.

 

“Loan” means the loan evidenced
by this Note.

 

“Loan Agreement” means the Multifamily
Loan and Security Agreement entered into by and between Borrower and Lender, effective as of the effective date of this Note,
as amended, modified or supplemented from time to time.

 

“Lockout Period” means the period
beginning on the day that this Note is assigned to a REMIC trust until and including the Defeasance Date. The Lockout Period only
applies if this Note is assigned to a REMIC trust prior to the Cut-off Date.

 

“Maturity Date” means the
earlier of (i)  November 1, 2022 (“Scheduled Maturity Date”), or (ii) the
date on which the unpaid principal balance of this Note becomes due and payable by acceleration or otherwise pursuant to the Loan
Documents or the exercise by Lender of any right or remedy under any Loan Document; provided, however, that if the unpaid principal
balance of this Note becomes due and payable by acceleration but such acceleration is rendered null and void and of no further
force and effect by operation of law or agreement by Lender, such acceleration will have no effect on the Maturity Date.

 

“Maximum Interest Rate” means the
rate of interest which results in the maximum amount of interest allowed by applicable law.

 

“Prepayment Premium Period” means
the period during which, if a prepayment of principal occurs, a prepayment premium will be payable by Borrower to Lender. The
Prepayment Premium Period is the period from and including the date of this Note until but not including (i) the day that this
Note is assigned to a REMIC trust, if this Note is assigned to a REMIC trust prior to the Cut-off Date, or (ii) the first day
of the Window Period, if this Note is not assigned to a REMIC trust or if this Note is assigned to a REMIC trust on or after the
Cut-off Date.

 

“Security Instrument” means the
multifamily mortgage, deed to secure debt or deed of trust effective as of the effective date of this Note, from Borrower to or
for the benefit of Lender and securing this Note, as amended, modified or supplemented from time to time.

 

“Window Period” means the 3 consecutive
calendar month period prior to the Scheduled Maturity Date.

 

	Multifamily Multistate Fixed
    Rate Note (CME)

    	Defeasance	Page 2

    	 

    

 

“Yield Maintenance Expiration Date”
means May 1, 2022.

 

“Yield Maintenance Period” means
the period from and including the date of this Note until but not including (i) the day that this Note is assigned to a REMIC
trust, if this Note is assigned to a REMIC trust prior to the Cut-off Date, or (ii) the Yield Maintenance Expiration Date, if
this Note is not assigned to a REMIC trust or if this Note is assigned to a REMIC trust on or after the Cut-off Date.

 

(b)          Other
capitalized terms used but not defined in this Note will have the meanings given to such terms in the Loan Agreement.

 

2.           Address
for Payment. All payments due under this Note will be payable at 3344 Peachtree Road, N.E., Suite 1200, Atlanta, Georgia 30326,
or such other place as may be designated by Notice to Borrower from or on behalf of Lender.

 

3.           Payments.

 

(a)          Interest
will accrue on the outstanding principal balance of this Note at the Fixed Interest Rate, subject to the provisions of Section 8
of this Note.

 

(b)          Interest
under this Note will be computed, payable and allocated on the basis of an actual/360 interest calculation schedule (interest
is payable for the actual number of days in each month, and each month’s interest is calculated by multiplying the unpaid
principal amount of this Note as of the first day of the month for which interest is being calculated by the Fixed Interest Rate,
dividing the product by 360, and multiplying the quotient by the number of days in the month for which interest is being calculated).
The portion of the monthly installment of principal and interest under this Note attributable to principal and the portion attributable
to interest will vary based upon the number of days in the month for which such installment is paid. Each monthly payment of principal
and interest will first be applied to pay in full interest due, and the balance of the monthly installment payment paid by Borrower
will be credited to principal.

 

			

(c)          Unless
disbursement of principal is made by Lender to Borrower on the first day of a calendar month, interest for the period beginning
on the date of disbursement and ending on and including the last day of such calendar month will be payable by Borrower simultaneously
with the execution of this Note. If disbursement of principal is made by Lender to Borrower on the first day of a calendar month,
then no payment will be due from Borrower at the time of the execution of this Note. The Installment Due Date for the first monthly
installment payment under Section 3(d) of interest-only or principal and interest, as applicable, will be the First Installment
Due Date set forth in Section 1(a) of this Note. Except as provided in this Section 3(c), Section 10 and in Section 11,
accrued interest will be payable in arrears.

 

	Multifamily Multistate Fixed
    Rate Note (CME)

    	Defeasance	Page 3

    	 

    

 

(d)          (i)          Beginning
on the First Installment Due Date, and continuing until and including the monthly installment due on November 1, 2014,
accrued interest-only will be payable by Borrower in consecutive monthly installments due and payable on the first day of each
calendar month. The amount of each monthly installment of interest-only payable pursuant to this Section 3(d)(i) on an Installment
Due Date will vary, and will equal $1,929.86111 multiplied by the number of days in the month prior to the Installment
Due Date.

 

(ii)         Beginning
on December 1, 2014, and continuing until and including the monthly installment due on the Maturity Date, principal
and accrued interest will be payable by Borrower in consecutive monthly installments due and payable on the first day of each
calendar month. The amount of the monthly installment of principal and interest payable pursuant to this Section 3(d)(ii)
on an Installment Due Date will be $83,245.29.

 

(e)          All
remaining Indebtedness, including all principal and interest, will be due and payable by Borrower on the Maturity Date.         

 

(f)          All
payments under this Note must be made in immediately available U.S. funds.

 

(g)          Any
regularly scheduled monthly installment of interest-only or principal and interest payable pursuant to this Section 3 that
is received by Lender before the date it is due will be deemed to have been received on the due date for the purpose of calculating
interest due.

 

(h)          Any
accrued interest remaining past due for 30 days or more, at Lender’s discretion, may be added to and become part of the
unpaid principal balance of this Note and any reference to “accrued interest” will refer to accrued interest which
has not become part of the unpaid principal balance. Any amount added to principal pursuant to the Loan Documents will bear interest
at the applicable rate or rates specified in this Note and will be payable with such interest upon demand by Lender and absent
such demand, as provided in this Note for the payment of principal and interest.

 

4.            Application
of Partial Payments. If at any time Lender receives, from Borrower or otherwise, any amount applicable to the Indebtedness
which is less than all amounts due and payable at such time, Lender may apply the amount received to amounts then due and payable
in any manner and in any order determined by Lender, in Lender’s discretion. Borrower agrees that neither Lender’s
acceptance of a payment from Borrower in an amount that is less than all amounts then due and payable nor Lender’s application
of such payment will constitute or be deemed to constitute either a waiver of the unpaid amounts or an accord and satisfaction.

 

	Multifamily Multistate Fixed
    Rate Note (CME)

    	Defeasance	Page 4

    	 

    

 

5.           Security.
The Indebtedness is secured by, among other things, the Security Instrument and reference is made to the Security Instrument
and Loan Agreement for other rights of Lender as to collateral for the Indebtedness.

 

6.           Acceleration.
If an Event of Default has occurred and is continuing, the entire unpaid principal balance, any accrued interest, any prepayment
premium payable under Section 10 and Section 11, and all other amounts payable under this Note and any other Loan Document,
will at once become due and payable, at the option of Lender, without any prior Notice to Borrower (except if notice is required
by applicable law, then after such notice). Lender may exercise this option to accelerate regardless of any prior forbearance.
For purposes of exercising such option, Lender will calculate the prepayment premium as if prepayment
occurred on the date of acceleration. If prepayment occurs thereafter, Lender will recalculate the prepayment premium as of the
actual prepayment date.

 

7.           Late
Charge.

 

(a)          If
any monthly installment of interest or principal and interest or other amount payable under this Note or under the Loan Agreement
or any other Loan Document is not received in full by Lender within 10 days after the installment or other amount is due, counting
from and including the date such installment or other amount is due (unless applicable law requires a longer period of time before
a late charge may be imposed, in which event such longer period will be substituted), Borrower must pay to Lender, immediately
and without demand by Lender, a late charge equal to 5% of such installment or other amount due (unless applicable law requires
a lesser amount be charged, in which event such lesser amount will be substituted). If the Loan is not fully amortizing, the late
charge will not be due on the final payment of principal owed on the Maturity Date if such payment is not timely made.

 

(b)          Borrower
acknowledges that its failure to make timely payments will cause Lender to incur additional expenses in servicing and processing
the Loan and that it is extremely difficult and impractical to determine those additional expenses. Borrower agrees that the late
charge payable pursuant to this Section represents a fair and reasonable estimate, taking into account all circumstances existing
on the date of this Note, of the additional expenses Lender will incur by reason of such late payment. The late charge is payable
in addition to, and not in lieu of, any interest payable at the Default Rate pursuant to Section 8.

 

8.            Default
Rate.

 

(a)          So
long as (i) any monthly installment under this Note remains past due for 30 days or more or (ii) any other Event
of Default has occurred and is continuing, then notwithstanding anything in Section 3 of this Note to the contrary, interest
under this Note will accrue on the unpaid principal balance from the Installment Due Date of the first such unpaid monthly installment
or the occurrence of such other Event of Default, as applicable, at the Default Rate.

 

	Multifamily Multistate Fixed
    Rate Note (CME)

    	Defeasance	Page 5

    	 

    

 

(b)          From
and after the Maturity Date, the unpaid principal balance will continue to bear interest at the Default Rate until and including
the date on which the entire principal balance is paid in full.

 

(c)          Borrower
acknowledges that (i) its failure to make timely payments will cause Lender to incur additional expenses in servicing and
processing the Loan, (ii) during the time that any monthly installment under this Note is delinquent for 30 days or more,
Lender will incur additional costs and expenses arising from its loss of the use of the money due and from the adverse impact
on Lender’s ability to meet its other obligations and to take advantage of other investment opportunities, and (iii) 
it is extremely difficult and impractical to determine those additional costs and expenses. Borrower also acknowledges that, during
the time that any monthly installment under this Note is delinquent for 30 days or more or any other Event of Default has occurred
and is continuing, Lender’s risk of nonpayment of this Note will be materially increased and Lender is entitled to be compensated
for such increased risk. Borrower agrees that the increase in the rate of interest payable under this Note to the Default Rate
represents a fair and reasonable estimate, taking into account all circumstances existing on the date of this Note, of the additional
costs and expenses Lender will incur by reason of the Borrower’s delinquent payment and the additional compensation Lender
is entitled to receive for the increased risks of nonpayment associated with a delinquent loan.

 

9.          Limits
on Personal Liability.

 

(a)          Except
as otherwise provided in this Section 9, Borrower will have no personal liability under this Note, the Loan Agreement or
any other Loan Document for the repayment of the Indebtedness or for the performance of or compliance with any other obligations
of Borrower under the Loan Documents and Lender’s only recourse for the satisfaction of the Indebtedness and the performance
of such obligations will be Lender’s exercise of its rights and remedies with respect to the Mortgaged Property and to any
other collateral held by Lender as security for the Indebtedness. This limitation on Borrower’s liability will not limit
or impair Lender’s enforcement of its rights against any Guarantor of the Indebtedness or any Guarantor of any other obligations
of Borrower.

 

(b)          Borrower
will be personally liable to Lender for the amount of the Base Recourse, plus any other amounts for which Borrower has personal
liability under this Section 9.

 

(c)          In
addition to the Base Recourse, Borrower will be personally liable to Lender for the repayment of a further portion of the Indebtedness
equal to any loss or damage suffered by Lender as a result of the occurrence of any of the following events:

 

	Multifamily Multistate Fixed
    Rate Note (CME)

    	Defeasance	Page 6

    	 

    

 

(i)          Borrower
fails to pay to Lender upon demand after an Event of Default all Rents to which Lender is entitled under Section 3 of the
Security Instrument and the amount of all security deposits collected by Borrower from tenants then in residence. However, Borrower
will not be personally liable for any failure described in this Section 9(c)(i) if Borrower is unable to pay to Lender all
Rents and security deposits as required by the Security Instrument because of a valid order issued in a bankruptcy, receivership,
or similar judicial proceeding.

 

(ii)         Borrower
fails to apply all Insurance proceeds and Condemnation proceeds as required by the Loan Agreement. However, Borrower will not
be personally liable for any failure described in this Section 9(c)(ii) if Borrower is unable to apply Insurance or Condemnation
proceeds as required by the Loan Agreement because of a valid order issued in a bankruptcy, receivership, or similar judicial
proceeding.

 

(iii)        Either
of the following occurs:

 

(A)         Borrower
fails to deliver the statements, schedules and reports required by Section 6.07 of the Loan Agreement and Lender exercises its
right to audit those statements, schedules and reports.

 

		(B)	If an Event of Default has occurred and is continuing, Borrower
                                                               fails to deliver all books and records relating to the Mortgaged
                                                               Property or its operation in accordance with the provisions of
                                                               Section 6.07 of the Loan Agreement.

 

(iv)        Borrower
fails to pay when due in accordance with the terms of the Loan Agreement the amount of any item below marked “Deferred”;
provided however, that if no item is marked “Deferred”, this Section 9(c)(iv) will be of no force or effect.

 

		[Collect]	Hazard Insurance premiums or other Insurance premiums

		[Collect]	Taxes or payments in lieu of taxes (PILOT)

		[Deferred]	water and sewer charges (that could become a lien on the
                                                                    Mortgaged Property)

		[N/A]	Ground Rents

		[Deferred]	assessments or other charges (that could become a lien
                                                                    on the Mortgaged Property)

 

(v)         Borrower
engages in any willful act of material waste of the Mortgaged Property.

 

	Multifamily Multistate Fixed
    Rate Note (CME)

    	Defeasance	Page 7

    	 

    

 

(vi)        Borrower
fails to comply with any provision of Section 6.13(a)(iii) through (xxvi) of the Loan Agreement or any SPE Equity Owner
fails to comply with any provision of Section 6.13(b)(iii) through (v) of the Loan Agreement (subject to possible full
recourse liability as set forth in Section 9(f)(ii)).

 

(vii)       Any
of the following Transfers occurs:

 

(A)         Any
Person that is not an Affiliate creates a mechanic’s lien or other involuntary lien or encumbrance against the Mortgaged
Property and Borrower has not complied with the provisions of the Loan Agreement.

 

(B)         A
Transfer of property by devise, descent or operation of law occurs upon the death of a natural person and such Transfer does not
meet the requirements set forth in the Loan Agreement.

 

(C)         Borrower
grants an easement that does not meet the requirements set forth in the Loan Agreement.

 

(D)         Borrower
executes a Lease that does not meet the requirements set forth in the Loan Agreement.

 

(d)          In
addition to the Base Recourse, Borrower will be personally liable to Lender for all of the following:

 

(i)          Borrower
will be personally liable for the performance of and compliance with all of Borrower’s obligations under Sections 6.12
and 10.02(b) of the Loan Agreement (relating to environmental matters).

 

(ii)         Borrower
will be personally liable for the costs of any audit under Section 6.07 of the Loan Agreement.

 

(iii)        Borrower
will be personally liable for any costs and expenses incurred by Lender in connection with the collection of any amount for which
Borrower is personally liable under this Section 9, including Attorneys’ Fees and Costs and the costs of conducting
any independent audit of Borrower’s books and records to determine the amount for which Borrower has personal liability.

 

(e)          All
payments made by Borrower with respect to the Indebtedness and all amounts received by Lender from the enforcement of its rights
under the Loan Agreement and the other Loan Documents will be applied first to the portion of the Indebtedness for which Borrower
has no personal liability.

 

(f)          Notwithstanding
the Base Recourse, Borrower will become personally liable to Lender for the repayment of all of the Indebtedness upon the occurrence
of any of the following Events of Default:

 

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(i)          Borrower
fails to comply with Section 6.13(a)(i) or (ii) of the Loan Agreement or any SPE Equity Owner fails to comply with Section
6.13(b)(i) or (ii) of the Loan Agreement.

 

(ii)         Borrower
fails to comply with any provision of Section 6.13(a)(iii) through (xxvi) of the Loan Agreement or any SPE Equity Owner
fails to comply with any provision of Section 6.13(b)(iii) through (v) of the Loan Agreement and a court of competent
jurisdiction holds or determines that such failure or combination of failures is the basis, in whole or in part, for the substantive
consolidation of the assets and liabilities of Borrower or any SPE Equity Owner with the assets and liabilities of a debtor pursuant
to Title 11 of the Bankruptcy Code.

 

(iii)        A
Transfer that is an Event of Default under Section 7.02 of the Loan Agreement occurs other than a Transfer set forth in Section 9(c)(vii)
above (for which Borrower will have personal liability for Lender’s loss or damage); provided, however, that Borrower will
not have any personal liability for a Transfer consisting solely of the involuntary removal or involuntary withdrawal of a general
partner in a limited partnership or a manager in a limited liability company).

 

(iv)        There
was fraud or written material misrepresentation by Borrower or any officer, director, partner, member or employee of Borrower
in connection with the application for or creation of the Indebtedness or there is fraud in connection with any request for any
action or consent by Lender.

 

(v)         Borrower
or any SPE Equity Owner voluntarily files for bankruptcy protection under the Bankruptcy Code.

 

(vi)        Borrower
or any SPE Equity Owner voluntarily becomes subject to any reorganization, receivership, insolvency proceeding, or other similar
proceeding pursuant to any other federal or state law affecting debtor and creditor rights.

 

(vii)       The
Mortgaged Property or any part of the Mortgaged Property becomes an asset in a voluntary bankruptcy or becomes subject to any
voluntary reorganization, receivership, insolvency proceeding, or other similar voluntary proceeding pursuant to any other federal
or state law affecting debtor and creditor rights.

 

(viii)      An
order of relief is entered against Borrower or any SPE Equity Owner pursuant to the Bankruptcy Code or other federal or state
law affecting debtor and creditor rights in any involuntary bankruptcy proceeding initiated or joined in by a Related Party.

 

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(ix)         An
involuntary bankruptcy or other involuntary insolvency proceeding is commenced against Borrower or any SPE Equity Owner (by a
party other than Lender) but only if Borrower or such SPE Equity Owner has failed to use commercially reasonable efforts to dismiss
such proceeding or has consented to such proceeding. “Commercially reasonable efforts” will not require any direct
or indirect interest holders in Borrower or any SPE Equity Owner to contribute or cause the contribution of additional capital
to Borrower or any SPE Equity Owner.

 

(g)          For
purposes of Section 9(f) the term “Related Party” will include all of the following:

 

(i)          Borrower,
any Guarantor or any SPE Equity Owner.

 

(ii)         Any
Person that holds, directly or indirectly, any ownership interest (including any shareholder, member or partner) in Borrower,
any Guarantor or any SPE Equity Owner or any Person that has a right to manage Borrower, any Guarantor or any SPE Equity Owner.

 

(iii)        Any
Person in which Borrower, any Guarantor or any SPE Equity Owner has any ownership interest (direct or indirect) or right to manage.

 

(iv)        Any
Person in which any partner, shareholder or member of Borrower, any Guarantor or any SPE equity Owner has an ownership interest
or right to manage.

 

(v)         Any
Person in which any Person holding an interest in Borrower, any Guarantor or any SPE Equity Owner also has any ownership interest.

 

(vi)        Any
creditor of Borrower that is related by blood, marriage or adoption to Borrower, any Guarantor or any SPE Equity Owner.

 

(vii)       Any
creditor of Borrower that is related to any partner, shareholder or member of, or any other Person holding an interest in, Borrower,
any Guarantor or any SPE Equity Owner.

 

(h)          If
Borrower, any Guarantor, any SPE Equity Owner or any Related Party has solicited creditors to initiate or participate in any proceeding
referred to in Section 9(f), regardless of whether any of the creditors solicited actually initiates or participates in the
proceeding, then such proceeding will be considered as having been initiated by a Related Party.

 

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(i)          To
the extent that Borrower has personal liability under this Section 9, Lender may, to the fullest extent permitted by applicable
law, exercise its rights against Borrower personally without regard to whether Lender has exercised any rights against the Mortgaged
Property or any other security, or pursued any rights against any Guarantor, or pursued any other rights available to Lender under
this Note, the Loan Agreement, any other Loan Document or applicable law. To the fullest extent permitted by applicable law, in
any action to enforce Borrower’s personal liability under this Section 9, Borrower waives any right to set off the
value of the Mortgaged Property against such personal liability.

 

10.         Voluntary
and Involuntary Prepayments During the Prepayment Premium Period (Section Applies unless and until Loan is Assigned to REMIC Trust
Prior to the Cut-off Date).

 

(a)          This
Section 10 will apply unless and until this Note is assigned to a REMIC trust prior to the Cut-off Date.

 

(b)          Any
receipt by Lender of principal due under this Note prior to the Maturity Date, other than principal required to be paid in monthly
installments pursuant to Section 3, constitutes a prepayment of principal under this Note. Without limiting the foregoing,
any application by Lender, prior to the Maturity Date, of any proceeds of collateral or other security to the repayment of any
portion of the unpaid principal balance of this Note constitutes a prepayment under this Note.

 

(c)          During
the Prepayment Premium Period, Borrower may voluntarily prepay all of the unpaid principal balance of this Note on an
Installment Due Date so long as Borrower designates the date for such prepayment in a Notice from Borrower to Lender given
at least 30 days prior to the date of such prepayment. Unless Lender has previously notified Borrower of the expiration of the
Prepayment Premium Period, upon receipt of such Notice from Borrower, Lender will notify Borrower if the Note has been assigned
to a REMIC trust prior to the Cut-off Date and the Prepayment Premium Period has expired. If an Installment
Due Date (as defined in Section 1(a)) falls on a day which is not a Business Day, then with respect to payments
made under this Section 10 only, the term “Installment Due Date” will mean the Business Day immediately preceding
the scheduled Installment Due Date.

 

(d)          Notwithstanding
Section 10(c), Borrower may voluntarily prepay all of the unpaid principal balance of this Note on a Business Day other than
an Installment Due Date if Borrower provides Lender with the Notice set forth in Section 10(c) above and meets the other
requirements set forth in this Section 10(d). Borrower acknowledges that Lender has agreed that Borrower may prepay principal
on a Business Day other than an Installment Due Date only because Lender will deem any prepayment received by Lender on any day
other than an Installment Due Date to have been received on the Installment Due Date immediately following such prepayment and
Borrower will be responsible for all interest that would have been due if the prepayment had actually been made on the Installment
Due Date immediately following such prepayment.

 

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(e)          Unless
otherwise expressly provided in the Loan Documents, Borrower may not voluntarily prepay less than all of the unpaid principal
balance of this Note. In order to voluntarily prepay all of the principal of this Note, Borrower must pay to Lender, together
with the amount of principal being prepaid, (i) all accrued and unpaid interest due under this Note, plus (ii) all other
sums due to Lender at the time of such prepayment, plus (iii) any prepayment premium calculated pursuant to Section 10(f).

 

(f)          Except
as provided in Section 10(g), a prepayment premium will be due and payable by Borrower in connection with any prepayment
of principal under this Note during the Prepayment Premium Period. The prepayment premium will be computed as follows:

 

(i)          For
any prepayment made during the Yield Maintenance Period, the prepayment premium will be whichever is the greater of subsections (A)
and (B) below:

 

			(A)         1.0%
                                                            of the amount of principal being prepaid; or

 

			(B)         the product
                                                            obtained by multiplying:

 

			(1)         the amount
                                                            of principal being prepaid or accelerated,

			by

			(2)         the excess
                                                          (if any) of the Monthly Note Rate over the Assumed Reinvestment Rate,

			

			by

			(3)         the Present
                                                            Value Factor.

 

For purposes of Section 10(f)(i)(B), the following
definitions will apply:

 

Monthly Note Rate: 1/12 of the Fixed Interest
Rate, expressed as a decimal calculated to 5 digits.

 

Prepayment Date: in the case of a voluntary
prepayment, the date on which the prepayment is made; in the case of the application by Lender of collateral or security to a
portion of the principal balance, the date of such application.

 

Assumed Reinvestment Rate: 1/12 of the yield
rate expressed as a decimal to 2 digits, as of the close of the trading session which is 5 Business Days before the Prepayment
Date, found among the Daily Treasury Yield Curve Rates, commonly known as Constant Maturity Treasury (“CMT”)
rates, with a maturity equal to the remaining Yield Maintenance Period, as reported on the U.S. Department of the Treasury website.

 

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If no published CMT maturity matches the remaining
Yield Maintenance Period, Lender will interpolate as a decimal to 2 digits the yield rate between (a) the CMT with a maturity
closest to, but shorter than, the remaining Yield Maintenance Period, and (b) the CMT with a maturity closest to, but longer
than, the remaining Yield Maintenance Period, as follows:

 

 

		A = 	yield rate for the CMT with a maturity shorter
than the remaining Yield Maintenance Period

		B =	 yield rate for the CMT with a maturity longer than
the remaining Yield Maintenance Period

		C =	number of months to maturity for the CMT maturity
shorter than the remaining Yield Maintenance Period

		D =	number of months to maturity for the CMT maturity
longer than the remaining Yield Maintenance Period

		E =	number of months remaining in the Yield Maintenance
Period

 

In the event the U.S. Department of the Treasury
ceases publication of the CMT rates, the Assumed Reinvestment Rate will equal the yield rate on the first U.S. Treasury security
which is not callable or indexed to inflation and which matures after the expiration of the Yield Maintenance Period.

 

The Assumed Reinvestment Rate may be a positive number,
a negative number or zero.

 

If the Assumed Reinvestment Rate is a positive number
or a negative number, Lender will calculate the prepayment premium using such positive number or negative number, as appropriate,
as the Assumed Reinvestment Rate in 10(f)(i)(B)(2) and in the calculation of the Present Value Factor.

 

			If the Assumed Reinvestment Rate is zero, Lender will calculate
                                                          the prepayment premium twice as set forth in (I) and (II) below and
                                                          will average the results to determine the actual prepayment premium.

 

(I)          Lender
will calculate the prepayment premium using an Assumed Reinvestment Rate of one basis point (+0.01%) in Section 10(f)(i)(B)(2)
and in the calculation of the Present Value Factor.

 

(II)         Lender
will calculate the prepayment premium using an Assumed Reinvestment Rate of negative one basis point (-0.01%) in Section 10(f)(i)(B)(2)
and in the calculation of the Present Value Factor.

 

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Present Value Factor: the factor that discounts
to present value the costs resulting to Lender from the difference in interest rates during the months remaining in the Yield
Maintenance Period, using the Assumed Reinvestment Rate as the discount rate, with monthly compounding, expressed numerically
as follows:

 

 

n = the number of months remaining in Yield
Maintenance Period; provided, however, if a prepayment occurs on an Installment Due Date, then the number of months remaining
in the Yield Maintenance Period will be calculated beginning with the month in which such prepayment occurs and if such
prepayment occurs on a Business Day other than an Installment Due Date, then the number of months remaining in the Yield Maintenance
Period will be calculated beginning with the month immediately following the date of such prepayment.

 

ARR = Assumed Reinvestment Rate

 

(ii)         For
any prepayment made after the expiration of the Yield Maintenance Period but during the remainder of the Prepayment Premium Period,
the prepayment premium will be 1.0% of the amount of principal being prepaid.

 

(g)          Notwithstanding
any other provision of this Section 10, no prepayment premium will be payable with respect to (i) any prepayment made
during the Window Period, or (ii) any prepayment occurring as a result of the application of any Insurance proceeds or Condemnation
award under the Loan Agreement.

 

(h)          Unless
Lender agrees otherwise in writing, a permitted or required prepayment of less than the unpaid principal balance of this Note
will not extend or postpone the due date of any subsequent monthly installments or change the amount of such installments.

 

(i)          Borrower
recognizes that any prepayment of any of the unpaid principal balance of this Note, whether voluntary or involuntary or resulting
from an Event of Default by Borrower, will result in Lender’s incurring loss, including reinvestment loss, additional expense
and frustration or impairment of Lender’s ability to meet its commitments to third parties. Borrower agrees to pay to Lender
upon demand damages for the detriment caused by any prepayment, and agrees that it is extremely difficult and impractical to ascertain
the extent of such damages. Borrower therefore acknowledges and agrees that the formula for calculating prepayment premiums set
forth in this Note represents a reasonable estimate of the damages Lender will incur because of a prepayment. Borrower further
acknowledges that the prepayment premium provisions of this Note are a material part of the consideration for the Loan, and that
the terms of this Note are in other respects more favorable to Borrower as a result of the Borrower’s voluntary agreement
to the prepayment premium provisions.

 

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11.         Voluntary
and Involuntary Prepayments During the Lockout Period and During the Defeasance Period (Section Applies if Loan is Assigned to
REMIC Trust Prior to the Cut-off Date).

 

(a)          This
Section 11 will apply in the event this Note is assigned to a REMIC trust prior to the Cut-off Date. This Section 11
will be of no effect if this Note is assigned to a REMIC trust on or after the Cut-off Date or if this Note is not assigned to
a REMIC trust.

 

(b)          Any
receipt by Lender of principal due under this Note prior to the Maturity Date, other than principal required to be paid in monthly
installments pursuant to Section 3, constitutes a prepayment of principal under this Note. Without limiting the foregoing,
any application by Lender, prior to the Maturity Date, of any proceeds of collateral or other security to the repayment of any
portion of the unpaid principal balance of this Note constitutes a prepayment under this Note.

 

(c)          Borrower
may not voluntarily prepay any portion of the principal balance of this Note during the Lockout Period or during the Defeasance
Period; provided, however, any prepayment occurring as a result of the application of any Insurance proceeds or Condemnation award
under the Loan Agreement will be permitted during the Lockout Period and during the Defeasance Period. If any portion of the principal
balance of this Note is prepaid during the Lockout Period or during the Defeasance Period by reason of the application by Lender
of any proceeds of collateral or other security to any portion of the unpaid principal balance of this Note or following a determination
that the prohibition on voluntary prepayments during the Lockout Period or during the Defeasance Period is in contravention of
applicable law, then Borrower must also pay to Lender upon demand by Lender, a prepayment premium equal to 5.0% of the amount
of principal being prepaid.

 

(d)          Notwithstanding
any other provision of this Section 11, no prepayment premium will be payable with respect to (i) any prepayment made
during the Window Period, or (ii) any prepayment occurring as a result of the application of any Insurance proceeds or Condemnation
award under the Loan Agreement.

 

(e)          After
the expiration of the Lockout Period and the Defeasance Period, Borrower may voluntarily prepay all of the unpaid principal balance
of this Note on an Installment Due Date so long as Borrower designates the date for such prepayment in a Notice from Borrower
to Lender given at least 30 days prior to the date of such prepayment. If an Installment Due Date (as
defined in Section 1(a)) falls on a day which is not a Business Day, then with respect to payments made under
this Section 11 only, the term “Installment Due Date” will mean the Business Day immediately preceding the scheduled
Installment Due Date.

 

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(f)          Notwithstanding
Section 11(e) above, following the end of the Lockout Period and the Defeasance Period, Borrower may voluntarily prepay all
of the unpaid principal balance of this Note on a Business Day other than an Installment Due Date if Borrower provides Lender
with the Notice set forth in Section 11(e) and meets the other requirements set forth in this Section 11(f). Borrower acknowledges
that Lender has agreed that Borrower may prepay principal on a Business Day other than an Installment Due Date only because Lender
will deem any prepayment received by Lender on any day other than an Installment Due Date to have been received on the Installment
Due Date immediately following such prepayment and Borrower will be responsible for all interest that would have been due if the
prepayment had actually been made on the Installment Due Date immediately following such prepayment.

 

(g)          Unless
otherwise expressly provided in the Loan Documents, Borrower may not voluntarily prepay less than all of the unpaid principal
balance of this Note. In order to voluntarily prepay all of the principal of this Note, Borrower must also pay to Lender, together
with the amount of principal being prepaid, (i) all accrued and unpaid interest due under this Note, plus (ii) all
other sums due to Lender at the time of such prepayment.

 

(h)          Unless
Lender agrees otherwise in writing, a permitted or required prepayment of less than the unpaid principal balance of this Note
will not extend or postpone the due date of any subsequent monthly installments or change the amount of such installments.

 

(i)          Borrower
recognizes that any prepayment of any of the unpaid principal balance of this Note, whether voluntary or involuntary or resulting
from an Event of Default by Borrower, will result in Lender’s incurring loss, including reinvestment loss, additional expense
and frustration or impairment of Lender’s ability to meet its commitments to third parties. Borrower agrees to pay to Lender
upon demand damages for the detriment caused by any prepayment, and agrees that it is extremely difficult and impractical to ascertain
the extent of such damages. Borrower therefore acknowledges and agrees that the formula for calculating prepayment premiums set
forth in Section 11(c) of this Note represents a reasonable estimate of the damages Lender will incur because of a prepayment.
Borrower further acknowledges that the lockout and prepayment premium provisions of this Note are a material part of the consideration
for the Loan, and that the terms of this Note are in other respects more favorable to Borrower as a result of the Borrower’s
voluntary agreement to the prepayment premium provisions.

 

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(j)          If,
after the expiration of the Lockout Period, Borrower defeases the Loan as described in Section 11.12 of the Loan Agreement
during the Defeasance Period, Borrower will not have the right to voluntarily prepay any of the principal of this Note at any
time.

 

12.         Defeasance
(Section Applies if Loan is Assigned to REMIC Trust Prior to the Cut-off Date).

 

(a)          This
Section 12 will apply in the event this Note is assigned to a REMIC trust prior to the Cut-off Date. This Section 12
will be of no effect if this Note is assigned to a REMIC trust on or after the Cut-off Date or if this Note is not assigned to
a REMIC trust.

 

(b)          Section 5
of this Note is amended by adding a new paragraph at the end of the Section as follows:

			If Borrower obtains a release of the Mortgaged Property from the
                                                            lien of the Security Instrument pursuant to Section 11.12 of
                                                            the Loan Agreement, the Indebtedness will be secured by the Pledge
                                                            Agreement and reference will be made to the Pledge Agreement for other
                                                            rights of Lender as to collateral for the Indebtedness.

 

(c)          Section 9
of this Note is amended by adding a new paragraph at the end thereof as follows:

 

If Borrower obtains a release
of the Mortgaged Property from the lien of the Security Instrument pursuant to Section 11.12 of the Loan Agreement, Borrower
will have no personal liability under this Note or the Pledge Agreement for the repayment of the Indebtedness or for the performance
of any other obligations of Borrower under this Note or the Pledge Agreement (other than any liability under Section 6.12
or Section 10.02 of the Loan Agreement for events that occur prior to the Defeasance Closing Date, whether discovered before or
after the Defeasance Closing Date), and Lender’s only recourse for the satisfaction of the Indebtedness and the performance
of such obligations will be Lender’s exercise of its rights and remedies with respect to the collateral held by Lender under
the Pledge Agreement as security for the Indebtedness.         

 

(d)          Section 21(a)
of this Note is amended by adding a new paragraph at the end of that subsection as follows:

 

			If Borrower obtains a release of the Mortgaged Property from the
                                                            lien of the Security Instrument pursuant to Section 11.12 of
                                                            the Loan Agreement, all Notices, demands and other communications
                                                            required or permitted to be given pursuant to this Note will be given
                                                            in accordance with the Pledge Agreement.

 

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13.         Costs
and Expenses. To the fullest extent allowed by applicable law, Borrower must pay all expenses and costs, including Attorneys’
Fees and Costs incurred by Lender as a result of any default under this Note or in connection with efforts to collect any amount
due under this Note, or to enforce the provisions of any of the other Loan Documents, including those incurred in post-judgment
collection efforts and in any bankruptcy proceeding (including any action for relief from the automatic stay of any bankruptcy
proceeding) or judicial or non-judicial foreclosure proceeding. Borrower acknowledges and agrees that, in connection with each
request by Borrower under this Note or any Loan Document, Borrower must pay all reasonable Attorneys’ Fees and Costs and
expenses incurred by Lender, including any fees charged by the Rating Agencies, regardless of whether the matter is approved,
denied or withdrawn.

 

14.         Forbearance.
Any forbearance by Lender in exercising any right or remedy under this Note, the Loan Agreement, or any other Loan Document
or otherwise afforded by applicable law, will not be a waiver of or preclude the exercise of that or any other right or remedy.
The acceptance by Lender of any payment after the due date of such payment, or in an amount which is less than the required payment,
will not be a waiver of Lender’s right to require prompt payment when due of all other payments or to exercise any right
or remedy with respect to any failure to make prompt payment. Enforcement by Lender of any security for Borrower’s obligations
under this Note will not constitute an election by Lender of remedies so as to preclude the exercise of any other right or remedy
available to Lender.

 

15.         Waivers.
Borrower and all endorsers and Guarantors of this Note and all other third party obligors waive presentment, demand, notice
of dishonor, protest, notice of acceleration, notice of intent to demand or accelerate payment or maturity, presentment for payment,
notice of nonpayment, grace, and diligence in collecting the Indebtedness.

 

16.         Loan
Charges. Neither this Note nor any of the other Loan Documents will be construed to create a contract for the use, forbearance
or detention of money requiring payment of interest at a rate greater than the Maximum Interest Rate. If any applicable law limiting
the amount of interest or other charges permitted to be collected from Borrower in connection with the Loan is interpreted so
that any interest or other charge provided for in any Loan Document, whether considered separately or together with other charges
provided for in any other Loan Document, violates that law, and Borrower is entitled to the benefit of that law, that interest
or charge is hereby reduced to the extent necessary to eliminate that violation. The amounts, if any, previously paid to Lender
in excess of the permitted amounts will be applied by Lender to reduce the unpaid principal balance of this Note. For the purpose
of determining whether any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower
has been violated, all Indebtedness that constitutes interest, as well as all other charges made in connection with the Indebtedness
that constitute interest, will be deemed to be allocated and spread ratably over the stated term of this Note. Unless otherwise
required by applicable law, such allocation and spreading will be effected in such a manner that the rate of interest so computed
is uniform throughout the stated term of this Note.

 

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17.         Commercial
Purpose. Borrower represents that Borrower is incurring the Indebtedness solely for the purpose of carrying on a business
or commercial enterprise, and not for personal, family, household, or agricultural purposes.

 

18.         Counting
of Days. Any reference in this Note to a period of “days” means calendar days, not Business Days except where
otherwise specifically provided.

 

19.         Governing
Law. This Note will be governed by the law of the Property Jurisdiction.

 

20.         Captions.
The captions of the Sections of this Note are for convenience only and will be disregarded in construing this Note.

 

21.         Notices;
Written Modifications.

 

(a)          All
Notices, demands and other communications required or permitted to be given pursuant to this Note will be given in accordance
with Section 11.03 of the Loan Agreement.

 

(b)          Any
modification or amendment to this Note will be ineffective unless in writing and signed by the party sought to be charged with
such modification or amendment; provided, however, in the event of a Transfer under the terms of the Loan Agreement that requires
Lender’s consent, any or some or all of the Modifications to Multifamily Note set forth in Exhibit A to this
Note may be modified or rendered void by Lender at Lender’s option, by Notice to Borrower and the transferee, as a condition
of Lender’s consent.

 

22.         Consent
to Jurisdiction and Venue. Borrower agrees that any controversy arising under or in relation to this Note may be litigated
in the Property Jurisdiction. The state and federal courts and authorities with jurisdiction in the Property Jurisdiction will
have jurisdiction over all controversies that will arise under or in relation to this Note. Borrower irrevocably consents to service,
jurisdiction, and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue
of domicile, habitual residence or otherwise. However, nothing in this Note is intended to limit any right that Lender may have
to bring any suit, action or proceeding relating to matters arising under this Note in any court of any other jurisdiction.

 

23.         WAIVER
OF TRIAL BY JURY. BORROWER AND LENDER EACH (a) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING
OUT OF THIS NOTE OR THE RELATIONSHIP BETWEEN THE PARTIES AS LENDER AND BORROWER THAT IS TRIABLE OF RIGHT BY A JURY AND (b) WAIVES
ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER
OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

 

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24.         State-Specific
Provisions. N/A.

 

25.         Attached
Riders. The following Riders are attached to this Note: None.

 

26.         Attached
Exhibit. The following Exhibit, if marked with an “X” in the space provided, is attached to this Note:

 

S            Exhibit A             Modifications to
Multifamily Note

 

{Signatures on next page.}

 

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IN WITNESS WHEREOF, and in consideration of the Lender’s
agreement to lend Borrower the principal amount set forth above, Borrower has signed and delivered this Note under seal or has
caused this Note to be signed and delivered under seal by its duly authorized representative.

 

	 	BORROWER:
	 	 
	 	WAYPOINT ENDERS OWNER, LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Scott Lawlor	(Seal)
	 	Name:     Scott Lawlor
	 	Title:       President
	 	 
	 	Taxpayer ID No.: 45-5360427

 

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EXHIBIT A

 

MODIFICATIONS TO MULTIFAMILY NOTE

 

The following modifications are made to the text of the Note
that precedes this Exhibit.

 

1.          Section
9(c) of the Note is hereby amended to add the following new subsections:

 

“(viii)     the
Borrower loses access to and/or the use of the community recreational facilities that make up Baldwin Park (including the parks,
trails, community centers, and village center) pursuant to the terms of that certain Amended and Restated Declaration of Covenants,
Conditions, and Restrictions for Baldwin Park Residential Properties recorded at Book 9372, page 1303, as amended, for the benefit
of the entities listed in the aforementioned agreement, including the Borrower.

 

(ix)         Borrower
fails to comply with Section 6.21 of the Loan Agreement.”

 

	Multifamily Multistate Fixed
    Rate Note (CME)

    	Defeasance	Page A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]