Document:

Exhibit 10.39

 

Marquis at Cascade II

f/k/a The Mansions at The Cascades II

 

ASSIGNMENT OF MANAGEMENT AGREEMENT

 

This
ASSIGNMENT OF MANAGEMENT AGREEMENT (this "Assignment") dated as of June 9, 2017, is executed by and among
(i) BR CWS CASCADES II OWNER, LLC, a Delaware limited liability company ("Borrower"), (ii) FANNIE
MAE, a corporation duly organized under the Federal National Mortgage Association Charter Act, as amended, 12 U.S.C.
§1716 et seq. and duly organized and existing under the laws of the United States ("Lender"), and (iii) CWS
APARTMENT HOMES LLC, a Delaware limited liability company ("Manager").

 

RECITALS:

 

A.           Borrower
is the owner of a multifamily residential apartment project located in Tyler, Smith County, Texas (the "Mortgaged Property").

 

B.           Manager
is the managing agent of the Mortgaged Property pursuant to a Management Agreement dated as of June 9, 2017, between Borrower and
Manager (the "Management Agreement").

 

C.           Borrower
is assuming a loan from Lender in the original principal amount of Twenty-Three Million One Hundred Seventy-Five Thousand and 00/100
Dollars ($23,175,000.00) (the "Mortgage Loan"), pursuant to that certain Multifamily Loan and Security Agreement
dated May 27, 2014 ("Loan Agreement"), as evidenced by that certain Multifamily Note dated as of May 27, 2014,
executed by BRE MF Cascades II LLC, a Delaware limited liability
company, and made payable to Wells Fargo Bank, National Association, a national banking association, in the amount of the Mortgage
Loan (as amended, restated, replaced, supplemented, or otherwise modified from time to time, the "Note").

 

D.           In
addition to the Loan Agreement, the Mortgage Loan and the Note are also secured by, among other things, a certain Multifamily Mortgage,
Deed of Trust or Deed to Secure Debt dated as of May 27, 2014, which encumbers the Mortgaged Property (as amended, restated, replaced,
supplemented or otherwise modified from time to time, the "Security Instrument"; the Loan Agreement, the Note,
the Security Instrument, and all other documents evidencing or securing the Mortgage Loan, the "Loan Documents").

 

E.           Borrower
is willing to assign its rights under the Management Agreement to Lender as additional security for the Mortgage Loan.

 

F.           Manager
is willing to consent to this Assignment and to attorn to Lender upon receipt of notice of the occurrence of an Event of Default
(as hereinafter defined) by Borrower under the Loan Documents, and perform its obligations under the Management Agreement for Lender,
or its successors in interest, or to permit Lender to terminate the Management Agreement without liability.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound, Borrower, Lender and Manager agree as follows:

 

	Assignment of Management Agreement 	Form 6405	Page 1
	Fannie Mae	01-16	© 2016 Fannie Mae

 

     

     

    

 

AGREEMENTS:

 

Section 1.          Recitals.

 

The recitals
set forth above are incorporated herein by reference as if fully set forth in the body of this Assignment.

 

Section 2.          Assignment.

 

Borrower
hereby transfers, assigns and sets over to Lender, its successors and assigns, all right, title and interest of Borrower in and
to the Management Agreement. Manager hereby consents to the foregoing assignment. The foregoing assignment is being made by Borrower
to Lender as collateral security for the full payment and performance by Borrower of all of its obligations under the Loan Documents.
Although it is the intention of the parties that the assignment hereunder is a present assignment, until the occurrence of any
default or failure to perform or observe any obligation, condition, covenant, term, agreement or provision required to be performed
or observed by Borrower or any other party under any of the Loan Documents beyond any applicable grace or cure period provided
for therein (an "Event of Default"), Borrower may exercise all rights as
owner of the Mortgaged Property under the Management Agreement, except as otherwise provided in this Assignment. The foregoing
assignment shall remain in effect as long as the Mortgage Loan, or any part thereof, remains unpaid, but shall automatically terminate
upon the release of the Security Instrument as a lien on the Mortgaged Property.

 

Section 3.           Representations
and Warranties.

 

Borrower
and Manager represent and warrant to Lender that (a) the Management Agreement is unmodified and is in full force and effect,
(b) the Management Agreement is a valid and binding agreement enforceable against the parties in accordance with its terms,
and (c) neither party is in default in performing any of its obligations under the Management Agreement. Borrower further
represents and warrants to Lender that it has not executed any prior assignment of the Management Agreement, nor has it
performed any acts or executed any other instrument which might prevent Lender from operating under any of the terms and
conditions of this Assignment, or which would limit Lender in such operation. Manager further represents and warrants to
Lender that (1) Manager has not assigned its interest in the Management Agreement,
(2) Manager has no notice of any prior assignment, hypothecation or
pledge of Borrower's interest under the Management Agreement, (3) as of the date hereof, Manager has no counterclaim, right
of set-off, defense or like right against Borrower, and (4) as of the date hereof, Manager has been paid all amounts due
under the Management Agreement.

 

Section 4.          Lender's Right
to Cure.

 

In the
event of any default by Borrower under the Management Agreement, Lender shall have the right, but not the obligation, upon notice
to Borrower and Manager and until such default is cured, to cure any default and take any action under the Management Agreement
to preserve the same. Borrower hereby grants to Lender the right of access to the Mortgaged Property for this purpose, if such
action is necessary. Borrower hereby authorizes Manager to accept the performance of Lender in such event, without question. Any
advances made by Lender to cure a default by Borrower under the Management Agreement shall become part of the indebtedness and
shall bear interest at the Default Rate under the Loan Agreement and shall be secured by the Security Instrument.

 

	Assignment of Management Agreement 	Form 6405	Page 2
	Fannie Mae	01-16	© 2016 Fannie Mae

 

     

     

    

 

Section
5.              Covenants.

 

(a)            Borrower
Covenants.

 

Borrower hereby covenants with Lender that, during
the term of this Assignment:

 

(1)         Borrower
shall not assign Borrower's interest in the Management Agreement or any portion thereof, or transfer the responsibility for management
of the Mortgaged Property from Manager to any other person or entity without the prior written consent of Lender;

 

(2)         Borrower
shall not cancel, terminate, surrender, modify or amend any of the terms or provisions of the Management Agreement without the
prior written consent of Lender;

 

(3)         Borrower
shall not forgive any material obligation of the Manager or any other party under the Management Agreement, without the prior written
consent of Lender;

 

(4)         Borrower
shall perform all obligations of Borrower under the Management Agreement in accordance with the provisions thereof, any failure
of which would constitute a default under the Management Agreement; and

 

(5)         Borrower
shall give Lender written notice of any notice or information that Borrower receives which indicates that Manager is terminating
the Management Agreement or that Manager is otherwise discontinuing its management of the Mortgaged Property.

 

Any of the foregoing acts done
or suffered to be done without Lender's prior written consent shall constitute an Event of Default.

 

(b)          Affiliated
Manager Subordination.

 

Manager agrees that:

 

(1)         (A)
any fees payable to Manager pursuant to the Management Agreement are and shall be subordinated in right of payment, to the extent
and in the manner provided in this Assignment, to the prior payment in full of the indebtedness described in the Loan Agreement,
and (B) the Management Agreement is and shall be subject and subordinate in all respects to the liens, terms, covenants and conditions
of the Security Instrument and the other Loan Documents and to all advances heretofore made or which may hereafter be made pursuant
to the Loan Documents (including all sums advanced for the purposes of (i) protecting or further securing the lien of the Security
Instrument, curing Events of Default by Borrower under the Loan Documents or for any other purposes expressly permitted by the
Loan Documents, or (ii) constructing, renovating, repairing, furnishing, fixturing or equipping the Mortgaged Property);

 

(2)         if,
by reason of its exercise of any other right or remedy under the Management Agreement, Manager acquires by right of subrogation
or otherwise a lien on the Mortgaged Prope1iy which (but for this Section 5(b)) would be senior to the lien of the Security Instrument,
then, in that event, such lien shall be subject and subordinate to the lien of the Security Instrument;

 

	Assignment of Management Agreement 	Form 6405	Page 3
	Fannie Mae	01-16	© 2016 Fannie Mae

 

     

     

    

 

(3)         until Manager receives notice (or otherwise acquires actual knowledge) of an Event
of Default, Manager shall be entitled to retain for its own account all payments made under or pursuant to the Management Agreement;

 

(4)         after
Manager receives notice (or otherwise acquires actual knowledge) of an Event of Default, it will not accept any payment of fees
under or pursuant to the Management Agreement without Lender's prior written consent;

 

(5)         if,
after Manager receives notice (or otherwise acquires actual knowledge) of an Event of Default, Manager receives any payment of
fees under the Management Agreement, or if Manager receives any other payment or distribution of any kind from Borrower or from
any other person or entity in connection with the Management Agreement which Manager is not permitted by this Assignment to retain
for its own account, such payment or other distribution will be received and held in trust for Lender and unless Lender otherwise
notifies Manager, will be promptly remitted, in cash or readily available funds, to Lender, properly endorsed to Lender, to be
applied to the principal of, interest on and other amounts due under the Loan Documents evidencing and securing the Loan in such
order and in such manner as Lender shall determine in its sole and absolute discretion. Manager hereby irrevocably designates,
makes, constitutes and appoints Lender (and all persons or entities designated by Lender) as Manager's true and lawful attorney
in fact with power to endorse the name of Manager upon any checks representing payments referred to in this Section 5(b), which
power of attorney is coupled with an interest and cannot be revoked, modified or amended without the written consent of Lender;

 

(6)         Manager
shall notify (via telephone or email, followed by written notice) Lender of Manager's receipt from any person or entity other than
Borrower of a payment with respect to Borrower's obligations under the Loan Documents, promptly after Manager obtains knowledge
of such payment; and

 

(7)         during
the term of this Assignment, Manager will not commence or join with any other creditor in commencing any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings with respect to Borrower, without Lender's prior written consent.

 

Section 6.              Lender's
Rights Upon an Event of Default.

 

(a)          Upon
receipt by Manager of written notice from Lender that an Event of Default has occurred and is continuing, Lender shall have the
right to exercise all rights as owner of the Mortgaged Property under the Management Agreement.

 

(b)          Borrower
agrees that after Borrower receives notice (or otherwise has actual knowledge) of an Event of Default, it will not make any payment
of fees under or pursuant to the Management Agreement without Lender's prior written consent.

 

Section 7.             Termination
of Management Agreement.

 

After
the occurrence and during the continuance of an Event of Default, Lender (or its nominee) shall have the right any time thereafter
to terminate the Management Agreement, without cause and without liability, by giving written notice to Manager of its election
to do so. Lender's notice shall specify the date of termination, which shall not be less than thirty (30) days after the date of
such notice.

 

	Assignment of Management Agreement 	Form 6405	Page 4
	Fannie Mae	01-16	© 2016 Fannie Mae

 

     

     

    

 

Section 8.             Books
and Records.

 

On the
effective date of termination of the Management Agreement, Manager shall turn over to Lender all books and records relating to
the Mortgaged Property (copies of which may be retained by Manager, at Manager's expense), together with such authorizations and
letters of direction addressed to tenants, suppliers, employees, banks and other parties as Lender may reasonably require. Manager
shall cooperate with Lender in the transfer of management responsibilities to Lender or its designee. A final accounting of unpaid
fees (if any) due to Manager under the Management Agreement shall be made within sixty (60) days after the effective date of termination,
but Lender shall not have any liability or obligation to Manager for unpaid fees or other amounts payable under the Management
Agreement which accrue before Lender (or its nominee) acquires title to the Mortgaged Property, or Lender becomes a mortgagee in
possession.

 

Section 9.              Notice.

 

(a)            Process of Serving Notice.

 

All notices under this Assignment shall be:

 

(1)           in
writing and shall be:

 

(A)         delivered,
in person;

 

(B)         mailed,
postage prepaid, either by registered or certified delivery, return receipt requested;

 

(C)         sent
by overnight courier; or

 

(D)         sent
by electronic mail with originals to follow by overnight couner;

 

(2)         addressed
to the intended recipient at its respective address set forth at the end of this Assignment; and

 

(3)         deemed
given on the earlier to occur of:

 

(A)         the
date when the notice is received by the addressee; or

 

(B)         if
the recipient refuses or rejects delivery, the date on which the notice is so refused or rejected, as conclusively established
by the records of the United States Postal Service or any express courier service.

 

(b)          Change
of Address.

 

Any party
to this Assignment may change the address to which notices intended for it are to be directed by means of notice given to the other
parties to this Assignment in accordance with this Section 9.

 

(c)          Default
Method of Notice.

 

Any required notice under this
Assignment which does not specify how notices are to be given shall be given in accordance with this Section 9.

 

	Assignment of Management Agreement 	Form 6405	Page 5
	Fannie Mae	01-16	© 2016 Fannie Mae

 

     

     

    

 

(d)          Receipt
of Notices.

 

Borrower,
Manager and Lender shall not refuse or reject delivery of any notice given in accordance with this Assignment. Each party is required
to acknowledge, in writing, the receipt of any notice upon request by the other party.

 

Section 10.           Counterparts.

 

This Assignment
may be executed in any number of counterparts, each of which shall be considered an original for all purposes; provided, however,
that all such counterparts shall constitute one and the same instrument.

 

Section 11.           Governing
Law; Venue and Consent to Jurisdiction; Waiver of Jury Trial.

 

(a)          Governing
Law.

 

This Assignment
shall be governed by the laws of the jurisdiction in which the Mortgaged Property is located (the "Property Jurisdiction"),
without regard to the application of choice of law principles.

 

(b)          Venue;
Consent to Jurisdiction.

 

Any controversy
arising under or in relation to this Assignment shall be litigated exclusively in the Property Jurisdiction without regard to conflicts
of laws principles. The state and federal courts and authorities with jurisdiction in the Property Jurisdiction shall have exclusive
jurisdiction over all controversies which shall arise under or in relation to this Assignment. 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.

 

(c)          WAIVER
OF TRIAL BY JURY.

 

TO THE
MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER, LENDER, AND MANAGER (i) COVENANTS AND AGREES NOT TO ELECT A TRIAL
BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS ASSIGNMENT, OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER, LENDER,
AND MANAGER, THAT IS TRIABLE OF RIGHT BY A JURY, AND (ii) 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 WAIYER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY
AND VOLUNTARILY, WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

 

Section 12.           Severability;
Amendments.

 

The invalidity
or unenforceability of any provision of this Assignment shall not affect the validity or enforceability of any other provision
of this Assignment, all of which shall remain in full force and effect. This Assignment contains the complete and entire agreement
among the parties as to the matters covered, rights granted and the obligations assumed in this Assignment. This Assignment may
not be amended or modified except by written agreement signed by the parties hereto.

 

	Assignment of Management Agreement 	Form 6405	Page 6
	Fannie Mae	01-16	© 2016 Fannie Mae

 

     

     

    

 

Section 13.           Construction.

 

(a)          The
captions and headings of the sections of this Assignment are for convenience only and shall be disregarded in construing this Assignment.

 

(b)          Any
reference in this Assignment to an "Exhibit" or "Schedule" or a "Section" or an "Article"
shall, unless otherwise explicitly provided, be construed as referring, respectively, to an exhibit or schedule attached to this
Assignment or to a Section or Article of this Assignment. All exhibits and schedules attached to or referred to in this Assignment,
if any, are incorporated by reference into this Assignment.

 

(c)          Any
reference in this Assignment to a statute or regulation shall be construed as referring to that statute or regulation as amended
from time to time.

 

(d)          Use
of the singular in this Assignment includes the plural and use of the plural includes the singular.

 

(e)          As
used in this Assignment, the term "including" means "including, but not limited to" or "including, without
limitation," and is for example only and not a limitation.

 

(f)          Whenever
Borrower's knowledge is implicated in this Assignment or the phrase "to Borrower's knowledge" or a similar phrase is
used in this Assignment, Borrower's knowledge or such phrase(s) shall be interpreted to mean to the best of Borrower's knowledge
after reasonable and diligent inquiry and investigation.

 

(g)          Unless
otherwise provided in this Assignment, if Lender's approval, designation, determination, selection, estimate, action or decision
is required, permitted or contemplated hereunder, such approval, designation, determination, selection, estimate, action or decision
shall be made in Lender's sole and absolute discretion.

 

(h)          All
references in this Assignment to a separate instrument or agreement shall include such instrument or agreement as the same may
be amended or supplemented from time to time pursuant to the applicable provisions thereof.

 

(i)          "Lender
may" shall mean at Lender's discretion, but shall not be an obligation.

 

[Remainder of Page Intentionally Blank]

 

	Assignment of Management Agreement 	Form 6405	Page 7
	Fannie Mae	01-16	© 2016 Fannie Mae

 

     

     

    

 

IN
WITNESS WHEREOF, Borrower, Lender and Manager have signed and delivered this Assignment under seal (where applicable)
or have caused this Assignment to be signed and delivered under seal (where applicable), each by its duly authorized representative.
Where applicable law so provides, Borrower, Lender and Manager intend that this Assignment shall be deemed to be signed and delivered
as a sealed instrument.

 

	 	BORROWER:
	 	 
	 	BR CWS CASCADES II OWNER, LLC, a
	 	Delaware limited liability company
	 	 	 	 	 	 	 
	 	By: 	BR CWS 2017 Portfolio JV, LLC, a Delaware limited liability company, its sole member
	 	 	 	 	 	 	 
	 	 		By:	BR CWS Portfolio Member, LLC, a Delaware limited liability company, its manager
	 	 	 	 	 	 	 
	 	 	 	 		By:	/s/ Jordan Ruddy
	 	 	 	 	 	 	Jordan Ruddy
	 	 	 	 	 	 	Authorized Signatory

 

	 	 	Address:	c/o Bluerock Real Estate, L.L.C.
	 	 	 	712 Fifth Avenue, 9th Floor 
	 	 	 	New York, New York 10019 
	 	 	 	Attention:  Jordan B. Ruddy
	 	 	 	 
	 	 	with a copy to:	 
	 	 	 	CWS Capital Partners LLC
	 	 	 	14 Corporate Plaza, Suite 210
	 	 	 	Newport Beach, CA 92660

 

	Assignment of Management Agreement 	Form 6405	Page S-1
	Fannie Mae	01-16	© 2016 Fannie Mae

 

     

     

    

 

	 	LENDER:
	 	 	 	 	 
	 	FANNIE MAE
	 	 	 	 	 
	 	By: 	Wells Fargo Bank, National Association, a national banking association, its Attorney-in-Fact
	 	 	 	 	 
	 	 		By:	/s/ Christian Adrian
	 	 	 	 	Christian Adrian
	 	 	 	 	Managing Director

 

	 	Address:	Attention: Multifamily Operations - Asset Management
	 	 	Drawer AM
	 	 	3900 Wisconsin Avenue, N.W. 
	 	 	Washington, DC 20016

 

	Assignment of Management Agreement 	Form 6405	Page S-2
	Fannie Mae	01-16	© 2016 Fannie Mae

 

     

     

    

 

	 	MANAGER:
	 	 
	 	CWS APARTMENT HOMES LLC, a Delaware
	 	limited liability company
	 	 	 	 
	 	By:	/s/ Gary Carmell
	 	 	Name: Gary Carmell
	 	 	Title: President
	 	 	 	 
	 	Address:	c/o CWS Capital Partners, LLC
	 	 	 	14 Corporate Plaza, Suite 210
	 	 	 	Newport Beach, California 92660

 

	Assignment of Management Agreement 	Form 6405	Page S-3
	Fannie Mae	01-16	© 2016 Fannie MaeExhibit 10.40

 

LIMITED LIABILITY COMPANY AGREEMENT OF

BRG CWS PORTFOLIO, LLC

 

March 9, 2017

 

THIS LIMITED LIABILITY
COMPANY AGREEMENT of BRG CWS PORTFOLIO, LLC, a Delaware limited liability company (the “Company”), as amended
from time to time, (the "Agreement") is entered into by Bluerock Residential Holdings, LP, a Delaware limited
partnership, the sole member of the Company (the "Member").

 

RECITALS

 

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

 

B.           The
undersigned desires to execute this Agreement to set forth the terms and conditions under which the management, business, and financial
affairs of the Company will be conducted.

 

C.           Definitions
for this Agreement are set forth in Article XI.

 

AGREEMENT

 

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

 

ARTICLE I

PURPOSE AND POWERS OF COMP ANY

 

1.1           Purpose.
The Company's business and purpose shall consist solely of (x) the acquisition, ownership, operation, management, financing and
disposition of the multi-family real estate projects located at (i) 24345 Wilderness Oak, San Antonio, TX 78258, (ii) 4055 Hogan
Drive, Tyler, TX 75709, (iii) 4085 Hogan Drive, Tyler, TX 75709, (iv) 5505 TPC Parkway, San Antonio, TX 78261, and (v) 18385 Babcock
Road, San Antonio, TX 78255, and respectively commonly known as (i) Canyon Springs Apartments, (ii) Orion at the Cascades Apartments,
(iii) Orion at the Cascades II Apartments, (iv) Cibolo Canyon Apartment Homes, and (v) Crown Ridge Apartment Homes (collectively,
the “Properties”), which will be owned by a Subsidiary, (y) the ownership and management of five Subsidiaries
in connection with the Properties and (z) such activities as are necessary, incidental or appropriate in connection therewith.

 

1.2           Powers.
The Company shall have all powers of a limited liability company formed under the Act and not prohibited by the Act or this Agreement.

 

1.3           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 shall have any ownership interest in any Company property in its individual name or right, and each
Member's Membership Interest shall be personal property for all purposes.

 

     

     

    

 

1.4           Term.
This Agreement shall not terminate until the Company is terminated in accordance with this Agreement.

 

1.5           Registered
Office and Registered Agent. The Company's initial registered office and initial registered agent shall be as provided in the
Certificate of Formation. The registered office and registered agent may be changed from time to time by filing the address of
the new registered office and/or the name of the new registered agent pursuant to the Act.

 

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

 

ARTICLE II

MEMBERS

 

Initial Member

 

(a)          The
name, address and initial Membership Interest of the initial Member is as follows:

 

	Name	 	Membership Interest	 
	Bluerock Residential Holdings, LP	 	 	100	%
	c/o Bluerock Real Estate, L.L.C.	 	 	 	 
	712 Fifth Avenue, 9th Floor	 	 	 	 
	New York, NY 10019	 	 	 	 

 

(b)          The
Member was admitted to the Company as a member of the Company upon its execution of a counterpart signature page to this Agreement.

 

ARTICLE III

MANAGEMENT BY MEMBER

 

3.1           In
General. The powers of the Company shall be exercised by, or under the authority of, the Member. In addition, the business
and affairs of the Company shall be ·managed under the direction of the Member. Subject to the limitations set forth in
this Agreement, the Member shall be entitled to make all decisions and take all actions for the Company.

 

3.2           Management
by Member. Except as otherwise limited by this Agreement, the Member shall have the power to do any and all acts necessary,
convenient or incidental to or for the furtherance of the purposes described herein, including all powers, statutory or otherwise;
provided, however, that the Company may, at its election, appoint one or more officers to exercise its rights under this Agreement.
The Member shall be entitled to make all decisions and take all actions for the Company, and the Member has the authority to bind
the Company.

 

    	 	2	 

     

    

 

3.3           Required
Approval. Any provision in this Agreement that requires the approval of the Members, but does not specify the particular percentage
interests or number of Members required for such approval, shall be interpreted to require the affirmative vote of the Member holding
a majority of the total Membership Interests from time to time, and specifically shall not be interpreted to require unanimous
consent of the Member.

 

3.4           Action
By Member. In exercising the voting or other approval rights as provided herein, the Member may act through meetings and/or
written consents.

 

3.5           Authorization.
The Company shall possess and may exercise all of the powers and privileges granted by the Act, and the Company is hereby authorized
to do any act, enter into any agreement, contract or other instrument, and otherwise to engage in any activity and to do any action
not prohibited under the Act or other applicable law which is necessary, useful, desirable or convenient to the conduct, promotion
and attainment of the business and purposes of the Company.

 

ARTICLE IV

[INTENTIONALLY OMITTED]

V

ARTICLE V

[INTENTIONALLY OMITTED]

 

ARTICLE VI

EFFECT OF BANKRUPTCY. DEATH OR INCOMPETENCY
OF A MEMBER

 

6.1          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 Company Interest 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. The foregoing shall apply to the extent permitted
by applicable law. Notwithstanding any other provision of the Certificate of Formation or this Agreement, no member of the Company
shall have any right under Section 18-801(b) of the Act to agree in writing to dissolve the Company upon the bankruptcy of a member
of the Company or the occurrence of any event that causes a member of the Company to cease to be a member of the Company. The existence
of the Company as a separate legal entity shall continue until the cancellation of its Certificate of Formation as provided in
the Act.

 

    	 	3	 

     

    

 

ARTICLE VII

CONTRIBUTIONS TO THE COMPANY AND DISTRIBUTIONS

 

7.1           Member
Capital Contributions. Upon execution of this Agreement, the Member shall contribute as the Member's initial Capital Contribution,
$100 in cash.

 

7.2           [Intentionally
Omitted]

 

7.3           Distributions
and Allocations. All distributions of cash or other property (except upon the Company's dissolution, which shall be governed
by the applicable provisions of the Act and Article IX hereof) and all allocations of income, profits, and loss shall be made 100%
to the Member in accordance with its Membership Interest. All amounts withheld pursuant to the Code or any provisions of state
or local tax law with respect to any payment or distribution to the Member from the Company shall be treated as amounts distributed
to the Member pursuant to this Section 7.3. Notwithstanding any provision to the contrary contained in this Agreement, the Company
shall not be required to make a distribution to the Member on account of its interest in the Company if such distribution would
violate Section 18-607 of the Act or any other applicable law.

 

ARTICLE VIII

ASSIGNMENTS AND RESIGNATIONS

 

8.1           Assignment,
Resignation and Admission Generally.

 

(a)          Assignments.
The Member may assign in whole or in part its Membership Interest in the Company. If the Member transfers all of its Membership
Interest pursuant to this Section 8.1, the transferee shall be admitted to the Company as a member of the Company upon its execution
of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement, which instrument may be a
counterpart signature page to this Agreement. Such admission shall be deemed effective immediately prior to the transfer and, immediately
following such admission, the Member shall cease to be a member of the Company. Notwithstanding anything in this Agreement to the
contrary, any successor to the Member by merger or consolidation shall, without further act, be the Member hereunder, and such
merger or consolidation shall not constitute an assignment for purposes of this Agreement and the Company shall continue without
dissolution.

 

(b)          Resignation.
The Member is permitted to resign. If the Member is permitted to resign pursuant to this Section 8.l (b), an additional member
of the Company shall be admitted to the Company upon its execution of an instrument signifying its agreement to be bound by the
terms and conditions of this Agreement, which instrument may be a counterpart signature page to this Agreement. Such admission
shall be deemed effective immediately prior to the resignation and, immediately following such admission, and the resigning Member
shall cease to be a member of the Company.

 

(c)          Admission
of Additional Members. One or more additional members may be admitted to the Company with the written consent of the Member.

 

8.2           Absolute
Prohibition. Notwithstanding any other provision in this Article VIII, the Membership Interest of the Member, in whole or in
part, or any rights to distributions therefrom, shall not be sold, exchanged, conveyed, transferred, pledged, hypothecated, subjected
to a security interest, or otherwise assigned or encumbered, if such action would result in a violation of federal or state securities
laws in the opinion of counsel for the Company.

 

    	 	4	 

     

    

 

8.3           Additional
Requirements. In addition to all requirements imposed in this Article VIII, any admission of a member or assignment of a Membership
Interest shall be subject to all restrictions relating thereto expressly imposed by the Act.

 

8.4           Effect
of Prohibited Action. Any assignment in violation of this Article VIII shall be, to the fullest extent permitted by law, void
and of no force or effect whatsoever.

 

ARTICLE IX

DISSOLUTION AND TERMINATION

 

9.1           Dissolution.
Subject to the other provisions of this Agreement, the Company shall be dissolved upon the first to occur of the following: (a)
the termination of the legal existence of the last remaining member of the Company or the occurrence of any other event which terminates
the continued membership of the last remaining member of the Company unless the Company is continued without dissolution in a manner
permitted by this Agreement or the Act or (b) the entry of a decree of judicial dissolution under Section 18-802 of the Act. Upon
the occurrence of any event that causes the last remaining member of the Company to cease to be a member of the Company or that
causes the Member to cease to be a member of the Company (other than upon continuation of the Company without dissolution upon
(i) an assignment by the Member of all of its Membership Interest and the admission of the transferee pursuant to Section 8.1,
or (ii) the resignation of the Member and the admission of an additional member of the Company pursuant to Section 8.1), to the
fullest extent permitted by law, the personal representative of such member is hereby authorized to, and shall, within ninety (90)
days after the occurrence of the event that terminated the continued membership of such member in the Company, agree in writing
(x) to continue the Company and (y) to admit the personal representative or its nominee or designee, as the case may be, as a substitute
member of the Company, effective as of the occurrence of the event that terminated the continued membership of the last remaining
member of the Company.

 

9.2           Liquidation.
Upon its dissolution, the Company shall wind up its affairs and distribute its assets in accordance with Section 9.4 below and
the Act by either or a combination of the following methods as the Member (or the Person carrying out the liquidation) shall determine:

 

(a)          selling
the Company's assets and, after the satisfaction of Company liabilities, distributing the net proceeds therefrom to the Member;
and/or

 

(b)          subject
to the satisfaction of Company liabilities, distributing the Company's assets to the Member in kind, with the Member accepting
an undivided interest in the Company's assets in satisfaction of its Membership Interest.

 

9.3           Orderly
Liquidation. A reasonable time as determined by the Member (or the Person carrying out the liquidation) shall be allowed for
the orderly liquidation of the assets of the Company and the discharge of liabilities to the creditors so as to minimize any losses
attendant upon dissolution.

 

    	 	5	 

     

    

 

9.4           Distributions.
Upon dissolution, the Company's assets (including any cash on hand) shall be distributed in the following order and in accordance
with the following priorities:

 

(a)          first,
to the satisfaction of all debts and liabilities of the Company (whether by payment or the making of reasonable provision for payment
thereof) and the expenses of liquidation, including a sales commission to the selling agent, if any; then

 

(b)          second,
to the Member.

 

9.5           Termination.
The Company shall terminate when (i) all of the assets of the Company, after payment of or due provision for all debts, liabilities
and obligations of the Company, shall have been distributed to the Member in the manner provided for in this Agreement and (ii)
the Certificate of Formation shall have been canceled in the manner required by the Act. The existence of the Company as a separate
legal entity shall continue until cancellation of the Certificate of Formation as provided in the Act.

 

ARTICLE X

MISCELLANEOUS PROVISIONS

 

10.1         Governing
Law. This Agreement shall be construed, enforced, and interpreted in accordance with the laws of the State of Delaware, without
regard to conflicts of law provisions and principles thereof.

 

10.2         Indemnity.
The Company shall indemnify and hold harmless any person who was or is a party to any proceeding, including any proceeding brought
by a member in the right of the Company or brought by or on behalf of any member of the Company, by reason of the fact that he
is or was an officer of the Company, against any liability incurred by him in connection with such proceedings unless he engaged
in willful misconduct or knowing violation of the criminal law or any federal or state securities laws. Furthermore, in any such
proceedings brought by or on behalf of the Company or bought by or on behalf of the members of the Company, no officer shall be
liable to the Company or its members for any monetary damages with respect to any transaction, occurrence, course of conduct or
otherwise, except for liability resulting from such officer's having engaged in willful misconduct or a knowing violation of the
criminal law or any federal or state securities laws.

 

10.3         Integrated
and Binding Agreement; Amendment. This Agreement contains the entire understanding and agreement among the parties hereto with
respect to the subject matter hereof, and there are no other agreements, understandings, representations or warranties among the
parties hereto other than those set forth herein. This Agreement may be amended only by written agreement of the Member and only
as provided in this Agreement. Notwithstanding any other provision of this Agreement, the parties hereto agree that this Agreement
constitutes a legal, valid and binding agreement, and is enforceable against each of them in accordance with its terms.

 

    	 	6	 

     

    

 

10.4         Construction.
Whenever the singular number is used in this Agreement and when required by the context, the same shall include the plural, and
the masculine gender shall include the feminine and neuter genders, and vice versa.

 

10.5         Headings.
The headings in this Agreement are inserted for convenience only and are in no way intended to describe, interpret, define, or
limit the scope, extent, or intent of this Agreement or any provision hereof.

 

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

 

10.7         Severability.
If any provision of this Agreement or the application thereof to any Person or circumstance shall be invalid, illegal, or unenforceable
to any extent, the remainder of this Agreement and the application thereof shall not be affected and shall be enforceable to the
fullest extent permitted by law.

 

10.8         Notices.
All notices under this Agreement shall be in writing and shall be given to the party entitled thereto by personal service or by
mail, posted to the address maintained by the Company for such person or at such other address as he may specify in writing.

 

10.9         Rights
and Remedies Cumulative; Waivers. The rights and remedies provided by this Agreement are cumulative and the use of any one
right or remedy by any party shall not preclude or waive the right to use any or all other remedies, and are given in addition
to any other rights the parties may have by law, statute, ordinance, or otherwise. The failure of any party to seek redress for
violation of or to insist upon the strict performance of any covenant or condition of this Agreement shall not prevent a subsequent
act, which would have originally constituted a violation, from having the effect of an original violation.

 

10.10         Heirs.
Successors, and Assigns. Each and all of the covenants, terms, provisions, and agreements herein contained shall be binding
upon, and inure to the benefit of, the parties hereto and, to the extent permitted by this Agreement, their respective heirs, legal
representatives, successors, and assigns.

 

10.11         Partition.
Each member agrees that the assets of the Company are not and will not be suitable for partition. Accordingly, each member hereby
irrevocably waives (to the fullest extent permitted by law) any and all rights that he may have, or may obtain, to maintain any
action for partition of any of the assets of the Company.

 

10.12         Tax
Status. It is the intention of the Member that the Company be a disregarded entity for federal income tax purposes under Section
7701 of the Code and the Treasury Regulations promulgated pursuant thereto.

 

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

 

    	 	7	 

     

    

 

ARTICLE XI

DEFINITIONS

 

In addition to any other
defined terms herein, the following terms used in this Agreement shall have the following meanings (unless otherwise expressly
provided herein):

 

(a)          "Affiliate"
shall mean any Person controlling or controlled by or under common control with the Company, including, without limitation (i)
any person who has a familial relationship, by blood, marriage or otherwise with any Member or employee of the Company, or any
Affiliate thereof and (ii) any Person which receives compensation for administrative, legal or accounting services from the Company,
or any of its Affiliates. For purposes of this definition, "control" when used with respect to any specified Person,
means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative
to the foregoing.

 

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

 

(c)          "Capital
Contribution" shall mean any contribution to the capital of the Company by the Member in cash, property, or services, or a
binding obligation to contribute cash, property, or services, whenever made.

 

(d)          "Certificate
of Formation" shall mean the Certificate of Formation of the Company, as amended and in force from time to time.

 

(e)          “Company
Interest” shall mean any equity interest in the Company, direct or indirect.

 

(f)          "Code"
shall mean the Internal Revenue Code of 1986, as amended, or corresponding provisions of subsequent superseding federal revenue
laws and the rules and regulations promulgated thereunder.

 

(g)          “Company
shall mean BRG CWS PORTFOLIO, LLC.

 

    	 	8	 

     

    

 

(h)          "Entity"
shall mean any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business
trust, cooperative, association or other entity.

 

(i)          "Member"
shall mean the Person identified in Article II hereof and includes any Person admitted as an additional member or a substitute
member of the Company pursuant to the provisions of this Agreement, each in its capacity as a member of the Company.

 

(j)          "Membership
Interest" shall mean the Member's limited liability company interest in the Company and the other rights and obligations with
respect thereto as set forth in this Agreement. The Membership Interest is set forth beside the Member's name in Article II of
this Agreement.

 

(k)          "Person"
shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company,
trust (including any beneficiary thereof), unincorporated organization, or government or any agency or political subdivision thereof.

 

(l)          “Property”
is defined in Section 1.1 of this Agreement.

 

(m)          “Subsidiary”
shall mean any Entity in which the Company owns, directly or indirectly, a membership or other equity interest equal to 50% or
more of the outstanding equity in that Entity.

 

[REMAINDER OF THIS PAGE
INTENTIONALLY LEFT BLANK]

 

    	 	9	 

     

    

 

The undersigned hereby
agrees, acknowledges, and certifies that the foregoing constitutes the sole and entire Limited Liability Company Agreement of the
Company.

 

	 	Member:	Bluerock Residential Holdings, LP
	 	 	a Delaware limited partnership
	 	 	 	 	 
	 	 	By:	Bluerock Residential Growth REIT, Inc., a Maryland corporation, its general partner
	 	 	 	 	 
	 	 	 	By: 	/s/ Michael Konig
	 	 	 	Name: 	Michael Konig
	 	 	 	Title: 	Authorized Signatory

 

    	 	10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}]]