Document:

Exhibit 10.34

 

BR-NPT SPRINGING ENTITY, LLC, as
assignor

 

(Borrower)

 to

 

ARBOR COMMERCIAL MORTGAGE, LLC, as
assignee

 

(Lender)

 

ASSIGNMENT

OF LEASES AND RENTS

 

	 	Dated:	As of December 24, 2013
	 	 	 
	 	Location:	16500 North Park Drive, Southfield, Michigan

 

	 	Tax Parcel ID# 	24-36-128-001 through 24-36-128-331
	 	County:	Oakland

 

PREPARED BY AND UPON

RECORDATION RETURN TO:

 

Winston &
Strawn LLP

200 Park Avenue

New York, New York 10166

Attn: Corey Tessler, Esq.

 

    	 

    	 

    

 

ASSIGNMENT OF LEASES AND RENTS

 

THIS ASSIGNMENT
OF LEASES AND RENTS (this "Assignment") is made as of the 24th day of December, 2013 by BR-NPT SPRINGING
ENTITY, LLC, a Delaware limited liability company, as assignor, having its principal place of business at c/o Bluerock Real
Estate, L.L.C., 712 Fifth Avenue, 9th Floor, New York, New York 10019 ("Borrower"), to ARBOR COMMERCIAL
MORTGAGE, LLC, a New York limited liability company as assignee, having an address at 333 Earle Ovington Boulevard, Uniondale,
New York 11553 (together with its successors and/or assigns, "Lender").

 

WITNESSETH:

 

A.           This
Assignment is given in connection with a loan in the principal sum of ELEVEN MILLION FIVE HUNDRED THOUSAND AND N0/100 DOLLARS
($11,500,000.00) (the "Loan") made by Lender to Borrower pursuant to that certain Loan Agreement dated
as of the date hereof between Borrower and Lender (as the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time, the "Loan Agreement "), and evidenced by that certain Promissory Note dated the date
hereof made by Borrower to Lender (as the same may be amended, restated, replaced, supplemented or otherwise modified from time
to time, the "Note"). Capitalized terms used but not otherwise defined herein shall have the meanings
ascribed to such terms in the Loan Agreement.

 

B.            The
Note is secured by that certain Mortgage dated the date hereof made by Borrower for the benefit of Lender (as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to time, the "Mortgage"), encumbering,
as a first mortgage lien thereon, those certain units of the condominium regime set forth in Exhibit A attached hereto
and incorporated herein by this reference (collectively, the "Units") of North Park Towers, a condominium
in the County of Oakland, State of Michigan (the "Condominium Regime"), according to the Master Deed for
North Park Towers dated May 23, 1980 and recorded in Liber 7794, Page 337, Oakland County Records (as amended, supplemented and/or
modified, collectively, the "Condominium Declaration" ), together with appurtenant parking spaces and
undivided percentage interests in and to the Common Elements (as defined in the Condominium Declaration), and all other rights,
titles and hereditaments attributable to the Units, all as more particularly described on Exhibit A (collectively, the
"Premises"), and the buildings, structures, fixtures, additions, enlargements, extensions, modifications,
repairs, replacements and improvements now or hereafter erected or located on the Premises, including, without limitation any
such structures, buildings and improvements constituting the Units (collectively, the "Property").

 

C.            Borrower
has agreed to execute and deliver this Assignment to further secure the payment and performance of all of the Obligations under
the Note, the Loan Agreement and the other Loan Documents.

 

D.            This
Assignment is given pursuant to the Loan Agreement, and payment, fulfillment, and performance by Borrower of its obligations thereunder
and under the other Loan Documents is secured hereby, and each and every term and provision of the Loan Agreement and the Note,
including the rights, remedies, obligations, covenants, conditions, agreements, indemnities, representations and warranties therein,
are hereby incorporated by reference herein as though set forth in full and shall be considered a part of this Assignment.

 

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NOW THEREFORE,
in consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in
this Assignment:

 

ARTICLE 1

ASSIGNMENT

 

Section 1.1 Property
Assigned. Borrower hereby absolutely and unconditionally assigns and grants to Lender the following property, rights,
interests and estates, now owned or hereafter acquired by Borrower:

 

(a)          Leases.
All leases, subleases or subsubleases, lettings, licenses, concessions or other agreements (whether written or oral and whether
now or hereafter in effect) pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or
any portion of the Property, and every modification, amendment or other agreement relating to such leases, subleases, subsubleases,
or other agreements entered into in connection with such leases, subleases, subsubleases, or other agreements and every guarantee
of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party
thereto, heretofore or hereafter entered into, whether before or after the filing by or against Borrower of any petition for relief
under 11 U.S.C. §101 et seq., as the same may be amended from time to time (the "Bankruptcy Code") (collectively,
the "Leases"), together with any extension, renewal or replacement of same. This Assignment of existing
and future Leases and other agreements being effective without any further or supplemental assignment documents.

 

(b)          Rents.
All Rents, which term shall include Rents paid or accruing before or after the filing by or against Borrower of any petition for
relief under the Bankruptcy Code.

 

(c)          Bankruptcy
Claims. All of Borrower's claims and rights (the "Bankruptcy Claims") to the payment of damages
arising from any rejection by a lessee of any Lease under the Bankruptcy Code.

 

(d)          Lease
Guaranties. All of Borrower's right, title and interest in, and claims under, any and all lease guaranties, letters of credit
and any other credit support (individually, a "Lease Guaranty", and collectively, the "Lease
Guaranties") given by any guarantor in connection with any of the Leases or leasing commissions (individually, a
"Lease Guarantor", and collectively, the "Lease Guarantors") to Borrower.

 

(e)          Proceeds.
All proceeds from the sale or other disposition of the Leases, the Rents, the Lease Guaranties and/or the Bankruptcy Claims.

 

(f)           Other.
All rights, powers, privileges, options and other benefits of Borrower as the lessor under any of the Leases and the beneficiary
under any of the Lease Guaranties, including, without limitation, the immediate and continuing right to make claims for, and to
receive, collect and acknowledge receipt for all Rents payable or receivable under the Leases and all sums payable under the Lease
Guaranties or pursuant thereto (and to apply the same to the payment of the Debt or the Other Obligations), and to do all other
things which Borrower or any lessor is or may become entitled to do under any of the Leases or Lease Guaranties.

 

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(g)          Entry.
The right, subject to the provisions of the Loan Agreement, at Lender's option, upon revocation of the license granted herein,
to enter upon the Property in person, by agent or by court-appointed receiver, to collect the Rents.

 

(h)          Power
Of Attorney. Borrower's irrevocable power of attorney, coupled with an interest, to take any and all of the actions set forth
in Section 3.1 of this Assignment, and any or all other actions designated by Lender for the proper management and preservation
of the Property.

 

(i)           Other
Rights And Agreements. Any and all other rights of Borrower in and to the items set forth in subsections (a) through (h) above,
and all amendments, modifications, replacements, renewals and substitutions thereof.

 

ARTICLE 2

TERMS OF ASSIGNMENT

 

Section 2.1    
Present Assignment and License Back. It is intended by Borrower that this Assignment constitute a present, absolute
assignment of the Leases, Rents, Lease Guaranties and Bankruptcy Claims, and not an assignment for additional security only. Nevertheless,
subject to the terms of this Section 2.1 and the terms of the Loan Agreement and the Cash Management Agreement, Lender
grants to Borrower a revocable license to collect, receive, use and enjoy the Rents, as well as any sums due under the Lease Guaranties.
Borrower shall hold the Rents, as well as all sums received pursuant to any Lease Guaranty, or a portion thereof sufficient to
discharge all current sums due on the Obligations, in trust for the benefit of Lender for use in the payment of such sums.

 

Section 2.2     Notice
to Lessees. Borrower hereby authorizes and directs the lessees named in the Leases, any other future lessees or occupants
of the Property and all Lease Guarantors to pay over to Lender or to such other party as Lender directs all Rents and all sums
due under any Lease Guaranties, upon receipt from Lender of written notice to the effect that Lender 1s then the holder of this
Assignment; provided, however, Lender may only send such notices, and take such actions relative to such Rents and sums due under
any Lease Guaranties, as are expressly permitted relative thereto pursuant to the terms of the Loan Agreement and the Cash Management
Agreement. Such Rents shall be disbursed and/or applied in accordance with the terms of the Loan Agreement and the Cash Management
Agreement.

 

Section 2.3     Incorporation
by Reference. All representations, warranties, covenants, conditions and agreements contained in the Loan Agreement and
the other Loan Documents, as the same may be modified, renewed, substituted or extended from time to time, are hereby made a part
of this Assignment to the same extent and with the same force as if fully set forth herein.

 

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ARTICLE 3 

REMEDIES

 

Section 3.1    
Remedies of Lender. Upon or at any time after the occurrence and during the continuance of an Event of Default, the
license granted to Borrower in Section 2.1 of this Assignment shall automatically be revoked and Lender shall immediately
be entitled to possession of all Rents and all sums due under any Lease Guaranties, whether or not Lender enters upon or takes
control of the Property. In addition, Lender may, at its option, without waiving any Event of Default, without regard to the adequacy
of the security for the Obligations, either in person or by agent, nominee or attorney, with or without bringing any action or
proceeding, or by a receiver appointed by a court, dispossess Borrower and its agents and servants from the Property, without
liability for trespass, damages or otherwise and exclude Borrower and its agents or servants wholly therefrom, and take possession
of the Property and all books, records and accounts relating thereto, and have, hold, manage, lease and operate the Property on
such terms and for such period of time as Lender may deem proper and, either with or without taking possession of the Property,
in its own name, demand, sue for or otherwise collect and receive all Rents and all sums due under all Lease Guaranties, including,
without limitation, those past due and unpaid (with all such Rents and all sums due under any Lease Guaranties to be deposited
into the Clearing Account to the extent and as required by the terms of the Loan Agreement and the Clearing Account Agreement),
with full power to make from time to time all alterations, renovations, repairs or replacements thereto or thereof as Lender may
deem proper. In addition, upon the occurrence and during the continuance of an Event of Default, Lender, at its option, may (1)
complete any construction on the Property in such manner and form as Lender deems advisable, (2) exercise all rights and powers
of Borrower, including, without limitation, the right to negotiate, execute, cancel, enforce or modify Leases, obtain and evict
tenants, and demand, sue for, collect and receive all Rents from the Property and all sums due under any Lease Guaranties (with
all such Rents and all sums due under any Lease Guaranties to be deposited into the Clearing Account to the extent and as required
by the terms of the Loan Agreement and the Clearing Account Agreement), and/or (3) either (i) require Borrower to pay monthly
in advance to Lender or to any receiver appointed to collect the Rents the fair and reasonable rental value for the use and occupancy
of such part of the Property as may be in the possession of Borrower, or (ii) require Borrower to vacate and surrender possession
of the Property to Lender or to such receiver and, in default thereof, Borrower may be evicted by summary proceedings or otherwise.

 

Section 3.2     Other
Remedies. Nothing contained in this Assignment and no act done or omitted by Lender pursuant to the power and rights granted
to Lender hereunder shall be deemed to be a waiver by Lender of its rights and remedies under the Loan Agreement, the Note, the
Mortgage or the other Loan Documents, and this Assignment is made and accepted without prejudice to any of the rights and remedies
possessed by Lender under the terms thereof. The right of Lender to collect the Obligations and to enforce any other security
therefor held by it may be exercised by Lender either prior to, simultaneously with, or subsequent to any action taken by it hereunder.
Borrower hereby absolutely, unconditionally and irrevocably waives any and all rights to assert any setoff, counterclaim or crossclaim
of any nature whatsoever with respect to the Obligations of Borrower under this Assignment, the Loan Agreement, the Note, the
other Loan Documents or otherwise with respect to the Loan in any action or proceeding brought by Lender to collect same, or any
portion thereof, or to enforce and realize upon the lien and security interest created by this Assignment, the Loan Agreement,
the Note, the Mortgage or any of the other Loan Documents (provided, however, that the foregoing shall not be deemed a
waiver of Borrower's right to assert any compulsory counterclaim if such counterclaim is compelled under local law or rule of
procedure, nor shall the foregoing be deemed a waiver of Borrower's right to assert any claim which would constitute a defense,
setoff, counterclaim or crossclaim of any nature whatsoever against Lender in any separate action or proceeding).

 

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Section 3.3     Other
Security. Lender may (i) take or release other security for the payment and performance of the Obligations, (ii) release
any party primarily or secondarily liable therefor, and/or (iii) apply any other security held by it to the payment and performance
of the Obligations, in each instance, without prejudice to any of its rights under this Assignment.

 

Section 3.4     Non-Waiver.
The exercise by Lender of the option granted it in Section 3.1 of this Assignment and the collection of the Rents and the
sums due under the Lease Guaranties and the application thereof as provided in the Loan Documents shall not be considered a waiver
of any Default or Event of Default by Borrower under the Note, the Loan Agreement, the Mortgage, this Assignment or the other
Loan Documents. The failure of Lender to insist upon strict performance of any term hereof shall not be deemed to be a waiver
of any term of this Assignment. Borrower shall not be relieved of Borrower's obligations hereunder by reason of (a) the failure
of Lender to comply with any request of Borrower or any other party to take any action to enforce any of the provisions hereof
or of the Loan Agreement, the Note or the other Loan Documents, (b) the release, regardless of consideration, of the whole or
any part of the Property, or (c) any agreement or stipulation by Lender extending the time of payment or otherwise modifying or
supplementing the terms of this Assignment, the Loan Agreement, the Note or the other Loan Documents. Lender may resort for the
payment and performance of the Obligations to any other security held by Lender in such order and manner as Lender, in its sole
discretion, may elect. Lender may take any action to recover the Obligations, or any portion thereof, or to enforce any covenant
hereof without prejudice to the right of Lender thereafter to enforce its rights under this Assignment. The rights of Lender under
this Assignment shall be separate, distinct and cumulative and none shall be given effect to the exclusion of the others. No act
of Lender shall be construed as an election to proceed under any one provision herein to the exclusion of any other provision.

 

Section 3.5     Bankruptcy.

 

(a)         Upon
or at any time after the occurrence and during the continuance of an Event of Default, Lender shall have the right to proceed in
its own name or in the name of Borrower in respect of any claim, suit, action or proceeding relating to the rejection of any Lease,
including, without limitation, the right to file and prosecute, to the exclusion of Borrower, any proofs of claim, complaints,
motions, applications, notices and other documents, in any case in respect of the lessee under such Lease under the Bankruptcy
Code.

 

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(b)          If
there shall be filed by or against Borrower a petition under the Bankruptcy Code, and Borrower, as lessor under any Lease, shall
determine to reject such Lease pursuant to Section 365(a) of the Bankruptcy Code, then Borrower shall give Lender not less than
ten (10) days' prior notice of the date on which Borrower shall apply to the bankruptcy court for authority to reject such Lease.
Lender shall have the right, but not the obligation, to serve upon Borrower within such ten (10) day period a notice stating that
(i) Lender demands that Borrower assume and assign the Lease to Lender pursuant to Section 365 of the Bankruptcy Code, and (ii)
Lender covenants to cure or provide adequate assurance of future performance under the Lease. If Lender serves upon Borrower the
notice described in the preceding sentence, Borrower shall not seek to reject the Lease and shall comply with the demand provided
for in clause (i) of the preceding sentence within thirty (30) days after Lender's notice shall have been given, subject to the
performance by Lender of the covenant provided for in clause (ii) of the preceding sentence.

 

ARTICLE 4

NO LIABILITY, FURTHER ASSURANCES

 

Section 4.1     No
Liability of Lender. This Assignment shall not be construed to bind Lender to the performance of any of the covenants,
conditions or provisions contained in any Lease or Lease Guaranty or otherwise impose any obligation upon Lender. Lender shall
not be liable for any loss sustained by Borrower resulting from Lender's failure to let the Property after an Event of Default
or from any other act or omission of Lender in managing the Property after an Event of Default unless such loss is caused by the
willful misconduct or bad faith of Lender. Lender shall not be obligated to perform or discharge any obligation, duty or liability
under the Leases or any Lease Guaranties or under or by reason of this Assignment and Borrower shall indemnify Lender for, and
hold Lender harmless from, (a) any and all liability, loss or damage which may or might be incurred under the Leases, any Lease
Guaranties or under or by reason of this Assignment, and (b) any and all claims and demands whatsoever, including the defense
of any such claims or demands which may be asserted against Lender by reason of any alleged obligations and undertakings on its
part to perform or discharge any of the terms, covenants or agreements contained in the Leases or any Lease Guaranties, unless
caused by the willful misconduct or bad faith of Lender. Should Lender incur any such liability, the amount thereof, including
costs, expenses and reasonable attorneys' fees and costs, shall be secured by this Assignment and by the Mortgage and the other
Loan Documents and Borrower shall reimburse Lender therefor immediately upon demand and upon the failure of Borrower so to do
Lender may, at its option, declare the Obligations to be immediately due and payable. This Assignment shall not operate to place
any obligation or liability for the control, care, management or repair of the Property upon Lender, nor for the carrying out
of any of the terms and conditions of the Leases or any Lease Guaranties; nor shall it operate to make Lender responsible or liable
for any waste committed on the Property by the tenants or any other parties, or for any dangerous or defective condition of the
Property, including, without limitation, the presence of any Hazardous Substances (as defined in the Environmental Indemnity),
or for any negligence in the management, upkeep, repair or control of the Property resulting in loss or injury or death to any
tenant, licensee, employee or stranger.

 

Section 4.2     No
Mortgagee In Possession. Nothing herein contained shall be construed as constituting Lender a "mortgagee in possession"
in the absence of the taking of actual possession of the Property by Lender. In the exercise of the powers herein granted Lender,
no liability shall be asserted or enforced against Lender, all such liability being expressly waived and released by Borrower.

 

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Section 4.3     Further
Assurances. Borrower will, at the cost of Borrower, and without expense to Lender, do, execute, acknowledge and deliver
all and every such further acts, conveyances, assignments, notices of assignments, transfers and assurances as Lender shall, from
time to time, reasonably require for the better assuring, conveying, assigning, transferring and confirming unto Lender the property
and rights hereby assigned or intended now or hereafter so to be, or which Borrower may be or may hereafter become bound to convey
or assign to Lender, or for carrying out the intention or facilitating the performance of the terms of this Assignment or for
filing, registering or recording this Assignment and, on demand, will execute and deliver, and hereby authorizes Lender to execute
in the name of Borrower to the extent Lender may lawfully do so, one or more financing statements, chattel mortgages or comparable
security instruments, to evidence more effectively the lien and security interest hereof in and upon the Leases.

 

ARTICLE
5

MISCELLANEOUS
PROVISIONS

 

Section 5.1     Conflict
of Terms. In case of any conflict between the terms of this Assignment and the terms of the Loan Agreement, the terms
of the Loan Agreement shall prevail.

 

Section 5.2     No
Oral Change. This Assignment and any provisions hereof may not be modified, amended, waived, extended, changed, discharged
or terminated orally, or by any act or failure to act on the part of Borrower or Lender, but only by an agreement in writing signed
by the party(ies) against whom the enforcement of any modification, amendment, waiver, extension, change, discharge or termination
is sought.

 

Section 5.3     General
Definitions. Unless the context clearly indicates a contrary intent or unless otherwise specifically provided herein,
words used in this Assignment may be used interchangeably in the singular or plural form, and the word "Borrower"
shall mean "each Borrower and any subsequent owner or owners of the Property or any part thereof or interest therein,"
the word "Lender" shall mean "Lender and any subsequent holder of the Note,'' the word "Note"
shall mean "the Note and any other evidence of indebtedness secured by the Loan Agreement,'' the word "Property"
shall include any portion of the Property and any interest therein, and the phrases "attorneys' fees", "legal
fees" and "counsel fees" shall include any and all attorneys', paralegal and law clerk fees and disbursements,
including, but not limited to, fees and disbursements at the pre-trial, trial and appellate levels, incurred or paid by Lender
in protecting its interest in the Property, the Leases and/or the Rents and/or in enforcing its rights hereunder. Whenever the
context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms.

 

Section 5.4     Inapplicable
Provisions. If any provision of this Assignment is held to be illegal, invalid or unenforceable under present or future
laws effective during the term of this Assignment, such provision shall be fully severable and this Assignment shall be construed
and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Assignment, and the remaining
provisions of this Assignment shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable
provision or by its severance from this Assignment, unless such continued effectiveness of this Assignment, as modified,
would be contrary to the basic understandings and intentions of the parties as expressed herein.

 

 

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Section 5.5     Governing
Law; Jurisdiction; Service of Process. WITH RESPECT TO MATTERS RELATING TO THE CREATION, PERFECTION AND PROCEDURES RELATING
TO THE ENFORCEMENT OF THIS ASSIGNMENT, THIS ASSIGNMENT SHALL BE GOVERNED BY, AND BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, EXCEPT AS EXPRESSLY SET FORTH ABOVE IN THIS PARAGRAPH AND TO
THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
SHALL GOVERN ALL MATTERS RELATING TO THIS ASSIGNMENT AND THE OTHER LOAN DOCUMENTS AND ALL OF THE INDEBTEDNESS OR OBLIGATIONS ARISING
HEREUNDER OR THEREUNDER. ALL PROVISIONS OF THE LOAN AGREEMENT INCORPORATED HEREIN BY REFERENCE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES, AS SET FORTH IN THE GOVERNING
LAW PROVISION OF THE LOAN AGREEMENT.

 

Section 5.6    Termination
of Assignment. Upon the termination or reconveyance of the Mortgage, this Assignment shall become and be void and of no
effect.

 

Section 5.7     Notices.
All notices or other written communications hereunder shall be delivered in accordance with Section 10.6 of the Loan Agreement.

 

Section 5.8     WAIVER
OF TRIAL BY JURY. BORROWER HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND FOREVER
WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST, WITH REGARD TO THIS ASSIGNMENT,
THE NOTE, THE MORTGAGE OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH.
THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY
EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE
A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER.

 

Section 5.9     Exculpation.
The provisions of Section 10.1 of the Loan Agreement are hereby incorporated by reference into this Assignment to the same
extent and with the same force as if fully set forth herein.

 

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Section
5.10   Successors and Assigns. This Assignment shall be binding upon and shall inure to the benefit of Borrower
and Lender and their respective successors and permitted assigns forever. Lender shall have the right to assign or transfer its
rights under this Assignment in connection with any assignment of the Loan and the Loan Documents. Any assignee or transferee
of Lender shall be entitled to all the benefits afforded to Lender under this Assignment. Borrower shall not have the right to
assign or transfer its rights or obligations under this Assignment without the prior written consent of Lender, as provided in
the Loan Agreement, and any attempted assignment without such consent shall be null and void.

 

Section 5.1    Headings,
Etc. The headings and captions of the various paragraphs of this Assignment are for convenience of reference only and
are not to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.

 

Section 5.12   Recitals.
The recitals hereof are a part hereof, form a basis for this Assignment and shall be considered prima facie evidence of
the facts and documents referred to therein.

 

ARTICLE 6

STATE-SPECIFIC PROVISIONS

 

Section 6.1
In the event of any inconsistencies between the terms and conditions of this Article 6 and the other terms and provisions of this
Assignment, the terms and conditions of this Article 6 shall control and be binding.

 

Section 6.1     Recording
Statute. The provisions set forth in this Assignment are not intended to evidence an additional recordable event, as may
be proscribed by Act 459 of the Public Acts of Michigan of 1996, but rather are included in this Assignment for purposes of complying
with applicable law. Notwithstanding the title of this document to the contrary, it is acknowledged by Borrower that this document
grants to Lender an assignment of leases and rents as provided herein, Borrower recognizing and acknowledging that under the recording
statute of the State of Michigan MCLA §565.201(3), a document to be recorded with a Register of Deeds in the State of Michigan
shall not purport to evidence more than one recordable event. All references in any other Loan Document to either an "Assignment
of Leases and Rents" or an "Assignment of Leases" shall be deemed a reference to this Assignment.

 

Section 6.2     Lender's
Rights. Lender shall also be entitled to all the rights and remedies conferred by Act No. 210 of the Michigan Public Acts
of 1953, as amended by Act N o. 151 of the Michigan Public Acts of 1966 (MCLA §554.231, et seq.), and Act No. 228 of the
Public Acts of Michigan of 1925 (MCLA §554.211, et seq.), and Act No. 66 of the Michigan Public Acts of 1956 (MCLA §565.81,
et seq.).

 

Section 6.3     Notice
of Absolute Assignment. BORROWER ACKNOWLEDGES AND AGREES THAT THE ASSIGNMENT OF RENTS TO LENDER UNDER THIS ASSIGNMENT
IS AND IS INTENDED TO BE AN ABSOLUTE PRESENT ASSIGNMENT OF RENTS PURSUANT TO AND TO THE EXTENT PERMITTED BY MCLA §554.231
ET SEQ., MCLA §565.81 ET SEQ., AND, TO THE EXTENT APPLICABLE, MCLA §554.211 ET SEQ.

 

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IN WITNESS WHEREOF,
Borrower has executed this Assignment the day and year first above written.

 

	 	BORROWER:
	 	 
	 	BR-NPT SPRINGING ENTITY, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	BR-North Park Towers, LLC,
	 	 	a Delaware limited liability company, 
	 	 	its manager
	 	 	 
	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Name: Jordan Ruddy
	 	 	 	Title: Authorized Signatory

 

Signature page to Assignment of Leases and Rents
- North Park Towers

 

    	 

    	 

    

 

	State of New York                     	)
	 	)ss
	County of New York                 	)

 

The foregoing instrument was acknowledged
before me this 23rd day of  December , 2013,

by Jordan Ruddy, an individual, who is
an authorized signatory of BR-North Park Towers, LLC,

a Delaware limited liability company, which
is the manager of BRT-NPT Springing Entity, LLC,

a Delaware limited liability company.

 

	 	 	/s/ Dale Pozzi		, Notary Public
	 	 	 	New York	County,	 NY		 

 

My Commission Expires:

 

	DALE POZZI	 
	NOTARY PUBLIC-STATE OF NEW YORK.	 
	No. 01 P06275397	 
	Qualified In New York County	 
	My Commission Expires January 28, 2017	 
	 	 
	DALE POZZI	 
	NOTARY PUBLIC-STATE OF NEW YORK.	 
	No. 01 P06275397	 
	Qualified In New York County	 
	My Commission Expires January 28, 2017	 

 

Notary page to Assignment of Leases and Rents - North
Park Towers

 

    	 

    	 

    

 

EXHIBIT A

 

LEGAL DESCRIPTION
OF PROPERTY

 

All that certain lot,
piece or parcel of land, with the buildings and improvements thereon erected, situate, lying and being in the City of Southfield,
County of Oakland, State of Michigan.

 

Units 1 through 331,
both inclusive, being all of the Units of North Park Towers Condominium, according to the Master Deed recorded in Liber 7794 on
Pages 337 through 412, inclusive, Oakland County Records, and designated as Oakland County Condominium Subdivision Plan No. 305,
together with rights in General Common Elements, and Limited Common Elements as set forth in the above Master Deed and as described
in Act 229 of the Public Acts of 1963, and Act 59 of the Public Acts of 1978, as amended.

 

NOTE: Being Parcel
No. 24-36-128-001 thru 24-36-128-331, of the City of Southfield, County of Oakland. Commonly known by street address 16500 North
Park Drive, Southfield, Michigan.Exhibit 10.35

 

ASSIGNMENT OF MANAGEMENT AGREEMENT 

AND SUBORDINATION OF MANAGEMENT FEES

 

THIS ASSIGNMENT OF
MANAGEMENT AGREEMENT AND SUBORDINATION OF MANAGEMENT FEES (this "Assignment") is made as of the 24th
day of December, 2013, by BR-NPT SPRINGING ENTITY, LLC, a Delaware limited liability company, having its principal place
of business at c/o Bluerock Real Estate, L.L.C., 712 Fifth Avenue, 9th Floor, New York, New York 10019 ("Borrower")
to ARBOR COMMERCIAL MORTGAGE, LLC, a New York limited liability company, having an address at 333 Earle Ovington Boulevard,
Uniondale, New York 11553 (together with its successors and/or assigns, "Lender"), and is consented and
agreed to by BLUEROCK PROPERTY MANAGEMENT, LLC, a Michigan limited liability company, having its principal place of business
at 27777 Franklin Road, Suite 900, Southfield, Michigan 48034 ("Manager").

 

RECITALS:

 

A.           Borrower
by its Promissory Note of even date herewith given to Lender (as the same may be amended, restated, replaced, supplemented, or
otherwise modified from time to time, the "Note") is indebted to Lender in the principal sum of $11,500,000.00
(the "Loan") advanced pursuant to that certain Loan Agreement of even date herewith between Borrower and
Lender (as the same may be amended, restated, replaced, supplemented, or otherwise modified from time to time, the "Loan
Agreement").

 

B.           The
Loan is secured by, among other things, a Mortgage (as the same may be amended, restated, replaced, supplemented, or otherwise
modified from time to time, the "Mortgage"), dated as of the date hereof, which grants Lender a first priority
lien on the property encumbered thereby (the "Property"). The Note, the Loan Agreement, the Mortgage, this
Assignment and any of the other documents evidencing or securing the Loan or executed or delivered in connection therewith are
collectively referred to as the "Loan Documents".

 

C.           Pursuant
to that certain Property Management Agreement, dated April 30, 2013, between Borrower and Manager (the "Management Agreement")
(a true and correct copy of such Management Agreement is attached hereto as Exhibit A), Borrower employed Manager
exclusively to rent, lease, operate and manage the Property and Manager is entitled to certain management fees (the "Management
Fees") thereunder.

 

D.           Lender
requires as a condition to the making of the Loan that Borrower assign the Management Agreement and that Manager subordinate its
interest under the Management Agreement in lien and payment to the Loan Agreement and the other Loan Documents as set forth below.

 

AGREEMENT

 

For good and valuable consideration the parties
hereto agree as follows:

 

1.          Assignment
and Subordination of Management Agreement.

 

    	 

    	 

    

 

(a)          As
additional collateral security for the Loan, Borrower hereby conditionally transfers, sets over and assigns to Lender all of Borrower's
right, title and interest in and to the Management Agreement, said transfer and assignment to automatically become a present, unconditional
assignment, at Lender's option, upon an Event of Default by Borrower under the Loan Agreement or any of the other Loan Documents.

 

(b)          The
Management Agreement and any and all liens, rights and interests (whether choate or inchoate and including, without limitation,
all mechanic's and materialmen's liens under applicable law) owed, claimed or held, by Manager in and to the Property, are and
shall be in all respects subordinate and inferior to the liens and security interests created, or to be created, for the benefit
of Lender, and securing the repayment of the Note and the performance of the obligations under the Loan Agreement and the other
Loan Documents, and all renewals, extensions, increases, supplements, amendments, modifications or replacements thereof.

 

2.          Subordination
of Management Fees. The Management Fees and all rights and privileges of Manager to the Management Fees are hereby, and
shall at all times continue to be, subject and unconditionally subordinate in all respects in lien and payment to the lien and
payment of the Mortgage, the Note, the Loan Agreement and the other Loan Documents and to any renewals, extensions, modifications,
assignments, replacements or consolidations thereof and the rights, privileges and powers of Lender thereunder.

 

3.          Termination.
At such time as the Loan is paid in full and the Mortgage is released or assigned of record, this Assignment and all of Lender's
right, title and interest hereunder with respect to the Management Agreement shall terminate.

 

4.          Estoppel.
Manager represents and warrants that (a) the Management Agreement is in full force and effect and has not been modified, amended
or assigned other than pursuant to this Assignment, (b) neither Manager nor Borrower is in default in any material respect under
any of the terms, covenants or provisions of the Management Agreement and Manager knows of no event which, but for the passage
of time or the giving of notice or both, would constitute an event of default under the Management Agreement, (c) neither Manager
nor Borrower has commenced any action or given or received any notice for the purpose of terminating the Management Agreement and
(d) the Management Fees and all other sums due and payable to the Manager under the Management Agreement as of the date hereof
have been paid in full.

 

5.          Agreement
by Borrower and Manager. Borrower and Manager hereby agree that upon the occurrence of an Event of Default under the Loan
Documents during the term of this Assignment or upon the occurrence of any event which would entitle Lender to terminate, or cause
the termination of, the Management Agreement in accordance with the terms of the Loan Documents (a) Manager shall, at the request
of Lender, continue to perform all of Manager's obligations under the terms of the Management Agreement with respect to the Property
or (b) at the option of Lender exercised by written notice to Borrower and Manager, Borrower and Manager shall immediately terminate
the Management Agreement and Manager shall transfer its responsibility for the management of the Property to a manager selected
by Lender.

 

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6.          Receipt
of Management Fees. Borrower and Manager hereby agree that Manager shall not be entitled to receive any Management Fees
or other fee, commission or other amount payable to Manager under the Management Agreement for and during any period of time that
any Event of Default has occurred and is continuing; provided, however, that notwithstanding anything to the contrary (a) Manager
shall not be obligated to return or refund to Lender any Management Fee or other fee, commission or other amount already received
by Manager prior to the occurrence of the Event of Default, and to which Manager was entitled under this Assignment and (b) in
the event Borrower loses possession of the Property in connection with exercise by Lender of its rights or remedies pursuant to
this Assignment, the Note, the Mortgage, the Loan Agreement or the other Loan Documents, Manager shall be entitled to collect any
Management Fee or other fee, commission or other amount accrued but unpaid prior to the occurrence of the Event of Default, and
to which Manager was entitled under this Assignment. Further, Borrower and Manager hereby agree that, notwithstanding any provisions
to the contrary set forth herein or in the Management Agreement, during the term of the Loan, Borrower shall not pay and Manager
shall not be entitled to receive compensation for its services conducted in connection with the Property in excess of (a) an aggregate
management fee (inclusive of any management fees, any so-called "Property Sub Manager Fee" or any other fees due under
Section 4.1 of the Management Agreement) in the amount of four percent (4%) of monthly Gross Revenue (which definition of Gross
Revenue shall, solely for purposes of this section, include Insurance Proceeds but only to the extent Lender elects to treat such
Insurance Proceeds as business or rental interruption Insurance Proceeds pursuant to Section 5.4(f) of the Loan Agreement),
and (b) asset management fees payable to Manager under section 4.2 of the Management Agreement ("Asset Management Fees"),
not to exceed two (2%) percent of monthly Gross Revenue (which definition of Gross Revenue shall, solely for purposes of this
section, include Insurance Proceeds but only to the extent Lender elects to treat such Insurance Proceeds as business or rental
interruption Insurance Proceeds pursuant to Section 5.4(f) of the Loan Agreement), which Asset Management Fees shall only
be payable out of Available Cash and only if no Trigger Period is then in effect.

 

7.          Consent
and Agreement by Manager. Manager hereby acknowledges and consents to this Assignment and the terms and provisions of Section
4.14 of the Loan Agreement (a copy of which has been received by Manager). Manager agrees that it will act in conformity with
the provisions of this Assignment, such provisions of the Loan Agreement and Lender's rights hereunder or otherwise related to
the Management Agreement. In the event that the responsibility for the management of the Property is transferred from Manager in
accordance with the provisions hereof, Manager shall, and hereby agrees to, fully cooperate in transferring its responsibility
to a new management company and effectuate such transfer no later than thirty (30) days from the date the Management Agreement
is terminated. Further, Manager hereby agrees (a) not to contest or impede the exercise by Lender of any right it has under or
in connection with this Assignment; (b) that it shall, in the manner provided for in this Assignment, give at least thirty (30)
days prior written notice to Lender of its intention to terminate the Management Agreement or otherwise discontinue its management
of the Property and (c) not amend any of the terms or provisions of the Management Agreement without the prior consent of Lender
not to be unreasonably withheld or delayed.

 

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8.          Lender's Agreement. So long as an Event of Default has not occurred and is continuing, Lender
agrees to permit any sums due to Borrower under the Management Agreement to be paid directly to Borrower.

 

9.          Further
Assurances. Manager further agrees to (a) execute such affidavits and certificates as Lender shall reasonably require to
further evidence the agreements herein contained, (b) on request from Lender, furnish Lender with copies of such information as
Borrower is entitled to receive under the Management Agreement and (c) cooperate with Lender's representative in any inspection
of all or any portion of the Property. Manager hereby acknowledges that some, or all, permits, licenses and authorizations necessary
for the use, operation and maintenance of the Property (collectively, the "Permits") may be held by, or
on behalf of, the Manager. By executing this Agreement, Manager (i) agrees that it is holding or providing all such Permits for
the benefit of Borrower and (ii) agrees that as security for the repayment of the Obligations by Borrower in accordance with the
Loan Agreement, to the extent permitted by applicable law, Manager hereby grants to Lender a security interest in and to the Permits.
Moreover, Manager hereby agrees that, upon an Event of Default, it will assign the Permits to Lender if such Permits are assignable
or otherwise continue to hold such Permits for the benefit of Lender until such time as Lender can obtain such Permits in its own
name or the name of a nominee.

 

10.         Assignment
of Proceeds. Manager acknowledges that, as further security for the Note, (a) Borrower has executed and delivered to Lender
an Assignment of Leases and Rents, dated as of the date hereof (as the same may be amended, restated, replaced, supplemented, or
otherwise modified from time to time, the "Assignment of Leases"), assigning to Lender, among other things,
all of Borrower's right, title and interest in and to all of the revenues of the Property and (b) Borrower and Lender, among others,
have entered into that certain Cash Management Agreement of even date herewith (as the same may be amended, restated, replaced,
supplemented, or otherwise modified from time to time, the "Cash Management Agreement"), pursuant to which
Borrower has agreed that any Rents, and other income and proceeds from the Property are to be deposited directly into an account
of the Lender established pursuant to the Cash Management Agreement.

 

11.         Manager
Not Entitled to Rents. Manager acknowledges and agrees that it is collecting and processing the Rents solely as the agent
for the Borrower and Manager has no right to, or title in, the Rents. Notwithstanding anything to the contrary in the Management
Agreement, the Manager acknowledges and agrees that the Rents are the sole property of the Borrower, encumbered by the lien of
the Mortgage and other Loan Documents in favor of Lender. In any bankruptcy, insolvency or similar proceeding the Manager, or any
trustee acting on behalf of the Manager, waives any claim to the Rents other than as such Rents may be used to pay the fees and
compensation of the Manager pursuant to the terms and conditions of the Management Agreement.

 

12.         Governing
Law. This Assignment shall be governed, construed, applied and enforced in accordance with Section 10.4 of the Loan
Agreement.

 

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13.         Notices.
All notices, consents, approvals and requests required or permitted hereunder shall be delivered in accordance with Section
10.6 of the Loan Agreement and the following:

 

	Ifto Manager:	27777 Franklin Road, Suite 900
	 	Southfield, Michigan 48034

 

14.         SPE.
Manager agrees that it shall not perform its duties under the Management Agreement or otherwise act in a manner that would result
in Borrower's failure to be a "Special Purpose Bankruptcy Remote Entity" as defined in the Loan Agreement (a copy of
which definition has been received by Manager).

 

15.         Cash
Management. Manager hereby agrees that, notwithstanding any provision to the contrary set forth herein or in the Management Agreement,
(i) Manager shall comply, to the extent applicable, with the provisions of the Loan Agreement and the Cash Management Agreement,
final copies of which Manager acknowledges receiving, and (ii) in the event of a conflict between the terms hereof and/or of the
Management Agreement, on the one hand, and the terms of the Loan Agreement and/or the Cash Management Agreement, on the other
hand, the terms of the Loan Agreement and/or the Cash Management Agreement shall govern.

 

16.         No
Oral Change. This Assignment may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any
act or failure to act on the part of Borrower, Lender or Manager, but only by an agreement in writing signed by the party against
whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought.

 

17.         Liability.
This Assignment shall be binding upon and inure to the benefit of Borrower, Manager and Lender and their respective successors
and assigns forever. Lender shall have the right to assign or transfer its rights under this Assignment in connection with any
assignment of the Loan and the Loan Documents. Any assignee or transferee of Lender shall be entitled to all the benefits afforded
to Lender under this Assignment. Neither Borrower nor Manager shall have the right to assign or transfer its rights or obligations
under this Assignment without the prior written consent of Lender, as provided in the Loan Agreement, and any attempted assignment
without such consent shall be null and void.

 

18.         Inapplicable Provisions. If
any term, covenant or condition of this Assignment is held to be invalid, illegal or unenforceable in any respect, this Assignment
shall be construed without such provision.

 

19.         Headings,
etc. The headings and captions of various paragraphs of this Assignment are for convenience of reference only and are not
to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.

 

20.         Duplicate
Originals, Counterparts. This Assignment may be executed in any number of duplicate originals and each duplicate original
shall be deemed to be an original. This Assignment may be executed in several counterparts, each of which counterparts shall be
deemed an original instrument and all of which together shall constitute a single Assignment. The failure of any party hereto to
execute this Assignment, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.

 

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21.         Number
and Gender. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine
or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa.

 

22.         Miscellaneous.

 

(a)          Wherever
pursuant to this Assignment (i) Lender exercises any right given to it to approve or disapprove, (ii) any arrangement or term is
to be satisfactory to Lender or (iii) any other decision or determination is to be made by Lender, the decision of Lender to approve
or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and all other decisions and determinations
made by Lender, shall be in the sole and absolute discretion of Lender and shall be final and conclusive, except as may be otherwise
expressly and specifically provided herein.

 

(b)          Wherever
pursuant to this Assignment it is provided that Borrower shall pay any costs and expenses, such costs and expenses shall include,
but not be limited to, reasonable legal fees and disbursements of Lender, whether retained firms, the reimbursement for the expenses
of in-house staff or otherwise.

 

(c)          Without
limiting the generality of any other provisions contained herein or in the other Loan Documents, no failure on the part of the
Lender to exercise, and no delay in exercising, any right hereunder or under any of the other Loan Documents shall operate as a
waiver thereof, nor shall any single or partial exercise of any right preclude any other or further exercise thereof or the exercise
of any other right. The rights and remedies of the Lender provided herein and in the other Loan Documents are cumulative and are
in addition to, and are not exclusive of, any rights or remedies provided by law or in equity.

 

(d)          The
provisions of Section 10.1 of the Loan Agreement are incorporated herein by reference with the same force and effect as if fully
set forth herein.

 

23.         Defined
Terms. Any capitalized terms not otherwise defined herein shall be defined as set forth in the Loan Agreement.

 

[NO FURTHER TEXT ON THIS PAGE]

 

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IN WITNESS WHEREOF, the undersigned
have executed this Assignment as of the date and year first written above.

 

	 	BORROWER:
	 	 	 	 
	 	BR-NPT SPRINGING ENTITY, LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	BR-North Park Towers, LLC,
	 	 	a Delaware limited liability company, its manager
	 	 	 	 
	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Name: Jordan Ruddy
	 	 	 	Title: Authorized Signatory

 

[SIGNATURE APPEARS ON FOLLOWING
PAGE]

 

Signature page to
Assignment of Management Agreement - North Park Towers

 

    	 

    	 

    

 

	 	LENDER:
	 	 	 
	 	ARBOR COMMERCIAL MORTGAGE, LLC,
	 	a New York limited liability company
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

 

[SIGNATURE APPEARS ON FOLLOWING PAGE]

 

Signature page to Assignment of Management
Agreement - North Park Towers

 

    	 

    	 

    

 

                      MANAGER:

 

	 	BLUEROCK PROPERTY MANAGEMENT, LLC,
	 	a Michigan limited liability company
	 	 	 	 
	 	By:	Bluerock Real Estate, L.L.C.,
	 	 	a Delaware limited liability company,
	 	 	its manager
	 	 	 	 
	 	 	By:	/s/ R. Ramin Kamfar
	 	 	 	Name: R. Ramin Kamfar
	 	 	 	Title: Authorized Signatory

 

Signature page to Assignment of Management
Agreement - North Park Towers

 

    	 

    	 

    

 

EXHIBIT A

 

Management Agreement

 

(Attached)

 

    	EXH. A-1

    	 

    

 

PROPERTY MANAGEMENT AGREEMENT

 

THIS PROPERTY MANAGEMENT
AGREEMENT (the “Agreement”) made this 30th day of April, 2013, by and between BR
– NPT SPRINGING ENTITY, LLC, a Delaware limited liability company (“Owner”), and BLUEROCK PROPERTY MANAGEMENT,
LLC, a Michigan limited liability company (“Property Manager”).

 

A.           WHEREAS,
Property Manager has been managing that certain condominium apartment project located at 16500 North Park Drive, Southfield, Michigan
(the “Project”) pursuant to a Property Management Agreement dated December 8, 2005 (the “Prior Management Agreement”)
between Property Manager and BR - North Park Towers Leaseco, LLC (“Master Tenant”), which Prior Management Agreement
previously expired by its terms.

 

B.           WHEREAS,
the Master Lease Agreement dated December 8, 2005 (the “Master Lease”) between BR - North Park Towers, DST (the “Trust”)
and Master Tenant previously expired in accordance with its terms. Notwithstanding the expiration of the Master Lease and the Prior
Management Agreement, the Property Manager has continued to manage the Project. In connection with the transfer of ownership of
the Project from the Trust to Owner, the Owner desires to establish an alternative management relationship with respect to the
Project in lieu of, and in the place of, the Master Lease and the Prior Management Agreement.

 

C.           WHEREAS,
the Owner desires to employ Property Manager in the management and operation of the Project by turning over to Property Manager
the operation, direction, management and supervision of the Project, subject to and in accordance with the terms and condition
set forth in this Agreement, and Property Manager desires to assume such duties upon the terms and conditions set forth in this
Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the mutual promises and covenants herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Owner and Property Manager agree as follows:

 

Article
I APPOINTMENT

 

Owner hereby grants
to Property Manager, as an independent contractor, the sole and exclusive right to manage and operate the Project, subject to the
terms and provisions of this Agreement. During the term of this Agreement, Owner shall not participate in the day-to-day operation
of the Project and shall at no time directly order or instruct any employees or other personnel engaged in the day-to-day management
and operation of the Project. The foregoing shall not restrict the right of Owner to direct any questions, orders or instructions
regarding operations of the Project to the Property Manager.

 

Article
II TERM OF AGREEMENT

 

2.1           Term.
Subject to Sections 2.2 and 2.3 hereof, the initial term of this Agreement shall be 12 months, commencing on [March] __, 2013,
and expiring on March 31, 2014, but it will be automatically renewed thereafter on a year-to-year basis unless terminated by one
of the parties (the “Term”).

 

    	 

    	 

    

 

2.2           Effect
of Expiration or Termination. Any expiration or termination of this Agreement shall in no way affect or impair any rights or
obligations which have accrued to either party pursuant to this Agreement prior to such expiration or termination, including, without
limitation, the rights of Property Manager to receive payments provided for hereunder, without set-off, recoupment or similar withholding
of payment by Owner. In the event of any termination of this Agreement, Property Manager shall use commercially reasonable efforts
to effect an orderly transition of the management and operation of the Project to Owner or an agent designated by Owner and to
cooperate with Owner or such agent.

 

Upon any termination
or expiration of this Agreement, and provided all payments due Property Manager have been paid in full, including the Termination
Fee (as defined below), if applicable, Property Manager shall:

 

(a)          account
for and deliver to Owner all receipts, charges and income from the Project (including, without limitation, tenant security deposits)
and other monies of Owner in Property Manager’s actual possession or control;

 

(b)          deliver
to Owner any monies due Owner under this Agreement received after such termination;

 

(c)          deliver
to Owner, or to such other person as Owner shall designate, all materials, supplies, equipment, keys, contracts, documents, books
and records (including, without limitation, accounts payable, financial records and accounting records) pertaining to this Agreement
and/or the Project;

 

(d)          assign
any then existing contracts and permits in the name of Property Manager, as agent for Owner, relating to the Project to Owner or
to such party as Owner shall designate;

 

(e)          within
45 days after the effective date of expiration or termination of this Agreement, cause to be furnished to Owner a statement similar
in form and content to its monthly statement covering the period from the date of the last such previous statement to the date
of the termination of this Agreement; and

 

(f)          Within
90 days following such expiration or termination, Property Manager shall deliver to Owner a final accounting, in writing, with
respect to the operations of the Project. Subsections 2.2(e) and 2.2(f) shall survive the expiration or termination of this Agreement.

 

2.3           Assumption
of Obligations. Upon the expiration or termination of this Agreement, Owner shall assume the obligations of any contract executed,
and the responsibility for payment of all unpaid bills incurred, by Property Manager in accordance with this Agreement for and
on behalf of Owner.

 

2.4           Termination
Fee. In the event this Agreement is terminated, other than through the expiration of the Term hereof, by the action of the
Owner or the Owner’s default hereunder, Owner shall pay to Property Manager a termination fee in a lump-sum amount equal
to the sum of (i) any Accrued Fees (as defined below) not previously paid (or forgiven by Property Manager) and (ii) the Management
Fee that would accrue from and after the date upon which such termination shall become effective, over the remainder of the stated
Term of this Agreement (the “Termination Fee”). For this purpose, the monthly Management Fee for the remainder of the
stated Term shall be presumed to be the same as that of the last month prior to termination. Property Manager acknowledges that
its right to receive payment of a Termination Fee is personal to the Owner and does not extend to any obligations Owner may have
to any Lender (as hereafter defined), and that such Termination Fee is subordinate to any obligations Owner may have to such Lender.

 

    	2

    	 

    

 

Article
III MANAGEMENT

 

3.1           General
Management Duties. Subject to the availability of funds provided under the Budget (as defined in Section 3.3 hereof) and in
the Operating Account (as defined in Section 5.1 hereof), Property Manager shall manage and operate the Project in a manner consistent
with the management and operation of comparable properties in Southfield, Michigan, shall provide such services as are customarily
provided by a manager of properties of comparable class and standing, and shall consult with Owner and keep Owner advised as to
all material or extraordinary matters and decisions affecting the Project. Specifically, Property Manager shall perform, without
limitation, the following services and duties for Owner in a faithful, diligent and efficient manner:

 

(a)          Maintain
businesslike relations with residents of the Project whose service requests shall be received, considered, and recorded in systematic
fashion in order to show the action taken with respect to each request. Complaints of a serious nature shall, after thorough investigation,
be reported to Owner with appropriate recommendations for addressing such complaints;

 

(b)          Use
good faith efforts to collect all rents and other sums and charges due from residents, subresidents, licensees, and concessionaires
of the Project and all other receipts, if any, derived from the operation of the Project;

 

(c)          Prepare
or cause to be prepared for execution and filing by Owner all forms, reports, and returns, if any, required by all federal, state,
or local laws in connection with unemployment insurance, workmen’s compensation insurance, disability benefits, Social Security,
and other similar taxes now in effect or hereafter imposed, and also any other requirements relating to the employment of personnel
for the Property Manager; however, Property Manager shall not be obligated to prepare any of Owner’s local, state, or federal
income tax returns;

 

(d)          Subject
to the limitations of the approved Budget adopted pursuant to Section 3.3 hereof, pay prior to delinquency all real estate taxes,
personal property taxes, and assessments levied against the Project, or any part thereof; and

 

(e)          Subject
to the limitations of the approved Budget adopted pursuant to Section 3.3 hereof, perform such other acts as are reasonable, necessary,
and proper in the discharge of its duties under this Agreement.

 

3.2           Leasing.

 

(a)          Exclusive
Agency. Property Manager shall be the sole rental agent for the Project, and Owner may not employ any outside rental agent
or broker without the prior written consent of Property Manager. The Property Manager shall exercise commercially reasonable efforts
to obtain and keep financially responsible tenants of the Project. All inquiries concerning any leases or renewals or agreements
for the rental of any tenant space in the Project shall be referred to Property Manager. The Property Manager shall conduct and
coordinate the negotiation and execution and delivery of leases and renewals, modifications, and cancellations thereof. All leases
are to be prepared by Property Manager in accordance with the standard form lease established by Property Manager and approved
by Owner. Property Manager may execute tenant leases on behalf of Owner in the ordinary course of business on the standard lease
form approved by Owner for the Project. Leases and other agreements with tenants shall be executed and delivered by the Property
Manager as agent of Owner. All other leases shall be subject to the prior specific written approval of Owner.

 

    	3

    	 

    

 

(b)          Advertising;
Promotion. Owner agrees that Property Manager may use the services of any third party rental or leasing agency, including any
apartment locator services in the area where the Project is located, and the fees payable for such services shall be expenses of
Owner, payable out of the Operating Account for the Project. The Property Manager may also prepare and use at Owner’s expense
reasonable advertising plans and promotional material to further rentals. Property Manager shall not use Owner’s name in
any advertising or promotional material without Owner’s prior written approval.

 

3.3           Budget.

 

(a)          Budget
Approval Process. Property Manager shall submit for approval of Owner not later than 30 days after the date of this Agreement
a proposed detailed, written estimate or projection of all receipts and expenditures for the operation of the Project for first
full or partial Fiscal Year (as hereinafter defined), including, without limitation, all estimated rentals and all estimated repairs,
maintenance and capital projects (the “Budget”) for such Fiscal Year. In addition, Property Manager shall submit a
Budget for each ensuing Fiscal Year for the approval of Owner not later than thirty (30) days prior to the expiration of the Fiscal
Year immediately preceding the Fiscal Year to which such Budget relates. A “Fiscal Year” is a calendar year, all or
part of which falls within the Term of this Agreement. In the event Owner, in Owner’s sole judgment, disapproves of any proposed
Budget submitted by Property Manager, Owner shall give Property Manager written notice of the line items that have been disapproved,
in which event Property Manager and Owner shall work in good faith to establish mutually-acceptable amounts for such line items.
Until Owner has approved the revised Budget, Property Manager may (i) pay the Management Fee (as hereinafter defined) and all expenses
relating to taxes, insurance and utilities, (ii) operate pursuant to those portions of the Budget which have been approved, and
(iii) with respect to line items that have not been approved, continue to operate pursuant to the corresponding line items in the
last approved Budget. In the absence of any written notice from Owner of disapproval within 30 days after delivery of the proposed
Budget to Owner, the proposed Budget shall be deemed to have been approved by Owner.

 

(b)          Payment
of Budgeted Expenses. Property Manager shall have the right to pay all expenses according to the approved Budget, including
the Management Fee. Notwithstanding any other provision in this Agreement, without the prior written consent of Owner, Property
Manager shall not incur or permit to be incurred expenses under this Agreement (excluding only utility expenses, general real estate
taxes, insurance premiums, financing costs and emergency expenses) that exceed 10% of the applicable line item in the Budget. Property
Manager shall promptly notify Owner whenever Property Manager determines that the Budget or any line item in the Budget is insufficient
to cover the expenses of operating the Project or the applicable expense category.

 

3.4           Reimbursable
Costs. All costs incurred by Property Manager in the performance of its duties under this Agreement that are in accordance
with the approved Budget, including, but not limited to, postage, copying, courier charges, bank charges, long distance telephone
and other such costs as would normally be incurred in the operation of the Project at both the Project and corporate offices, shall
be reimbursed by Owner, in addition to the Management Fee and other payments due hereunder.

 

3.5           Project
Personnel. Property Manager may, at Owner’s expense and in accordance with the approved Budget, either itself or through
an entity (hereinafter referred to as the “PM Entity”) wholly owned by or affiliated with Property Manager, hire, employ,
supervise and discharge all employees required in connection with the operation and management of the Project. Property Manager
or the PM Entity, as the case may be, shall provide and maintain, at Owner’s expense so long as this Agreement is in force,
workmen’s compensation insurance in full compliance with all applicable state and federal laws and regulations.

 

    	4

    	 

    

 

Employees of the Property
Manager or the PM Entity, as the case may be, may include the following:

 

(a)          Property
Manager. A full-time person who is experienced in the administration and operation of condominium apartment projects of the
size, character, and quality of the Project;

 

(b)          Others.
Such other personnel to manage, operate and maintain the Project, including, but not limited to, an assistant property manager,
leasing consultant, maintenance manager, administrative personnel, accounting personnel, grounds keepers, janitorial and custodial
persons, and courtesy personnel, as Property Manager reasonably deems necessary or consistent with the level of service provided
by other similar properties. All such personnel shall, except to the extent provided in the approved Budget, spend 100% of their
work time on the operation and maintenance of the Project.

 

3.6           Contracts
and Supplies. Property Manager shall, at Owner’s expense, at the lowest cost as in its judgment is consistent with good
quality, workmanship and service standards, enter into contracts in its own name as agent for Owner for the furnishing to the Project
of required utility services, heating and air-conditioning services and other maintenance, pest control, and any other services
and concessions which are reasonably required in connection with the maintenance and operation of the Project; provided, however,
(i) that any contracts entered into by Property Manager, whenever practicable, shall be terminable at Property Manager’s
or Owner’s sole discretion within 30 days by written notice unless Property Manager receives the prior written consent of
Owner to the contrary, (ii) if the amount payable monthly or for any given month pursuant to such contract exceeds $10,000,
Property Manager shall obtain Owner’s written approval thereof prior to entering into such contract (such approval shall
be deemed granted if not disapproved in writing by Owner within five (5) days of Property Manager’s request for approval)
and (iii) if the contract is with an affiliate the relationship must be disclosed to the Owner and the terms must be as favorable
as those that would be obtained if the transaction were at arm’s length. Each of such contracts shall state that Property
Manager is acting as a special limited agent of Owner having only the express powers that are delegated and authorized pursuant
to this Agreement. When taking bids, Property Manager shall use all reasonable efforts to secure for, and credit to Owner, any
discounts, commissions or rebates obtainable as a result of such purchases or services. Property Manager shall use all reasonable
efforts to make purchases and (where necessary or desirable) let bids for necessary labor and materials at the lowest possible
cost as in its judgment is consistent with good quality, workmanship and service standards. In addition, Property Manager shall
use reasonable efforts to purchase goods and services through Property Manager’s or, if so directed by Owner, Owner’s
national purchasing agreements, where applicable.

 

3.7           Alterations,
Repairs and Maintenance.

 

(a)          Budgeted
Repairs/Emergency Repairs. Property Manager shall, at Owner’s expense, perform or cause to be performed all necessary
or desirable repairs, maintenance, cleaning, painting and decorating, alterations, replacements and improvements in and to the
Project as are customarily made by property managers in the operation of properties of the kind, size and quality of the Project;
provided, however, that no unbudgeted alterations, additions or improvements involving a fundamental change in the character of
the Project or constituting a major new construction program shall be made without the prior written approval of Owner. In addition,
no unbudgeted expenditure in excess of $25,000 per item or a total of $75,000 in any Fiscal Year shall be made for such purposes
without the prior written approval of Owner. However, emergency repairs involving manifest danger to life or property, or immediately
necessary for the preservation or the safety of the Project, or for the safety of the residents of the Project, or required to
avoid the suspension of any necessary service to the Project, or required by any judicial or governmental authority having jurisdiction,
may be made by the Property Manager without prior approval and regardless of the cost limitations imposed by this Section 3.7(a).
Property Manager shall as soon as practicable give written notice to Owner of any such emergency repairs for which prior approval
is not required.

 

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(b)          Capital
Improvements. In accordance with the terms of the approved Budget or upon written request and approval of Owner, Property Manager
shall, from time to time during the Term hereof, at Owner’s expense, supervise the performance of all required capital improvements,
replacements or repairs to the Project but nothing herein shall be deemed to require Property Manager to serve as a construction
manager or general contractor for such improvements or repairs or replacements nor shall Property Manager have any responsibility
for any of the work performed in connection with such improvements or repairs or replacements. If Property Manager is required
to perform extraordinary services in connection with such improvements, repairs or replacements, Property Manager shall be entitled
to a Capital Improvement management fee in an amount to be negotiated in good faith by the parties hereto at such time.

 

(c)          Defects
and Warranties. Property Manager shall give Owner written notice of any material defect, casualty or a taking in the Project
and all parts thereof known to Property Manager promptly after any of the foregoing comes to Property Manager’s attention,
including, without limitation, material defects in the roof, foundation or walls of the Project or in the sewer, water, electrical,
structural, plumbing, heating, ventilation or air conditioning systems. Property Manager shall make periodic visual inspections
of the Project consistent with its on-site employees’ expertise.

 

3.8           Licenses
and Permits. Property Manager shall, at Owner’s expense, obtain and maintain in the name of Owner all licenses and permits
required of Owner or Property Manager in connection with the management and operation of the Project. Owner agrees to execute and
deliver any and all applications and other documents and to otherwise cooperate with Property Manager in applying for, obtaining
and maintaining such licenses and permits.

 

3.9           Compliance
with Laws. Property Manager shall comply with all applicable laws, regulations and requirements of any federal, state or municipal
government having jurisdiction with respect to the maintenance or operation of the Project by Property Manager in accordance with
its obligations under this Agreement.

 

3.10         Legal
Proceedings. Property Manager may, to the extent permitted by law, terminate a lease, lock out a tenant, and institute proceedings
for recovery of possession, in the ordinary course of business, without the prior written approval of Owner. Property Manager may
institute suit for rent or damages against a tenant without the prior written approval of Owner. All such suits or proceedings
shall, to the extent permitted by law, be brought in the name of Property Manager, as agent for Owner, and shall be handled as
determined by Property Manager. Owner shall pay all expenses incurred by Property Manager, including, but not limited to, reasonable
attorney’s fees and any liability, fines, penalties or the like, in connection with any claim, proceeding, or suit involving
an action against a tenant or an alleged violation by the Property Manager or Owner, or both, of any law pertaining to fair employment,
fair credit reporting, environmental protection, rent control, taxes, or fair housing, including, but not limited to, any law prohibiting
or making illegal discrimination on the basis of race, sex, family status, creed, color, religion, national origin, or mental or
physical handicap; provided, however, that Owner shall not be responsible to Property Manager for any such expenses in the event
Property Manager is finally adjudged to have violated any such law. Nothing contained in this Agreement shall obligate Property
Manager to employ legal counsel to represent Owner in any such proceeding or suit. Owner shall pay reasonable expenses incurred
by Property Manager in obtaining legal advice required in Property Manager’s reasonable discretion.

 

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3.11         Inventory.
Property Manager shall maintain a current inventory of all equipment, supplies, furnishings, furniture and all other items of personal
property now or hereafter owned by Owner and located upon or used, or useful for, or necessary or adapted for the operation and
maintenance of the Project.

 

3.12         Signs.
Owner agrees to allow Property Manager to place one or more signs on or about the Project stating that Property Manager is the
management and leasing agent for the Project. All such signs and locations thereof shall be subject to Owner’s prior approval,
not to be unreasonably withheld.

 

3.13         Property
Manager’s Offices. Owner shall provide to Property Manager, at Owner’s expense, an office in the Project of a size
and in a location appropriate for the conduct of Property Manager’s duties under this Agreement.

 

3.14         Limitation
of Liability. Property Manager assumes no liability whatsoever for any acts or omissions of Owner, or any previous owners of
the Project, or any previous management or other agent of either (other than Property Manager and affiliates of Property Manager).
Property Manager assumes no liability for any failure of, or default by, any tenant in the payment of any rent or other charges
due Owner or in the performance of any obligations owed by any tenant to Owner pursuant to any lease or otherwise. Except to the
extent resulting from the gross negligence or willful act or omission of Property Manager, Property Manager assumes no liability
for any violations of environmental or other regulations which may occur during the period this Agreement is in effect. Any such
regulatory violations or hazards discovered by Property Manager shall be promptly brought to the attention of Owner in writing.

 

Article
IV FEES

 

4.1           Management
Fee. As consideration for the performance by Property Manager of its services under this Agreement, Owner agrees to pay to
Property Manager for each month during the Term of this Agreement a property management fee (the “Management Fee”)
equal to four (4%) percent [VERIFY] of Gross Receipts for such month. If at any time during the Term, the Property
Manager elects to subcontract all day to day, on site management, leasing and related functions for the Project (the “Property
Sub Manager”), then the Management Fee to be payable to Property Manager thereafter shall be equal to the Property Sub Manager
Fee (as defined below), plus an override equal to one (1%) percent of Gross Receipts for such month. Thus, under such circumstances,
all Management Fees shall be payable to Property Manager, from which the Property Manager shall be responsible to pay the Property 
Sub Manager a market rate monthly fee based on the Gross Receipts for such month (the “Property Sub Manager Fee”).
The Property Manager will enter into a written contract with its Property Sub Manager, through which the Property Manager may delegate
some or all of its duties under this Agreement.

 

The term “Gross
Receipts” shall mean and include all gross receipts derived from the operation of the Project, including, without limitation,
all rent and other sums and charges received from all prospective tenants, tenants and lessees and payments made in consideration
of the cancellation of any tenant leases or damages by reason of any default, security deposits to the extent applied to rent,
tenant application fees, the proceeds from rental interruption insurance, receipts from vending machines, concessions and other
commercial operations conducted on the Project, and income derived from interest on investments. “Gross Receipts” shall
not include sums which, under normal accounting practice, are attributable to capital, proceeds of claims on account of insurance
policies other than rental interruption or similar insurance, the abatement of taxes, awards arising out of taking by eminent domain,
discounts and dividends on insurance policies, or any sums received by Property Manager as reimbursement or recovery of items of
expense charged to the Owner, such as court costs paid by defaulting tenants, utility rebates, security deposits (to the extent
applied to damage) and the like, all of which shall be applied as offsets against the corresponding items of expense. The Owner
hereby acknowledges that the Management Fee is fair and reasonable for the services to be performed by Property Manager under this
Agreement.

 

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4.2           Payment
of Management Fee. Provided that Property Manager is not in default under this Agreement, Property Manager shall be entitled
to pay itself the monthly Management Fee from the bank accounts referred to in Section 5.1 hereof. However, in the event
of a default under that certain Loan Agreement with the Owner’s secured lender (“Lender”) and any other documents
entered into in connection with the Loan Agreement (together with the Loan Agreement, the “Loan Documents”), Lender
may have the right to compel the Owner to suspend payment of the Management Fee. If such suspension of payments occurs, the Property
Manager shall have the right to immediately terminate this Agreement.

 

4.3           Accrual
of Management Fee. Notwithstanding anything herein to the contrary, Property Manager may elect (but shall not be required to
do so), upon request by Owner, to allow Owner to forego making the monthly Management Fee payments owing hereunder for a mutually-agreeable
period, without same constituting a default by Owner hereunder. Any Management Fees not paid when owing under such circumstances
shall accrue as an obligation of Owner hereunder (collectively, the “Accrued Fees”) unless Property Manager elects
in writing to allow same to not accrue but rather to be forgiven.

 

4.4           Additional
Compensation. In addition to the compensation provided to the Property Manager in this Section 4, Property Manager shall be
entitled to compensation for such specific additional services as may be agreed upon, including, without limitation, adjustment
of fire claims, condemnation claims and construction services beyond the normal course of business.

 

4.5           Disposition
Fee. If following the date hereof the Project is sold, then the Property Manager shall receive a disposition fee (herein, the
“Disposition Fee”) at the closing of such sale, in cash, in an amount equal to three percent (3%) [VERIFY] of
the gross purchase price paid in connection with such sale; provided, however, that no such Disposition Fee (or other fee) shall
be owing in the event of any foreclosure sale, any acquisition of the Project by the Lender (or any designee of Lender) or any
subsequent sale after such foreclosure sale or acquisition by Lender (or Lender’s designee). If there is a broker fee paid
to a third-party broker in connection with a sale, exchange or other disposition of the Project, the payment to the third-party
broker will be paid in addition to the Disposition Fee paid to the Property Manager, but in no event may the aggregate of such
third-party brokerage fee and the Disposition Fee exceed 4.5% of the gross purchase price paid in connection with such sale.
At the completion of such sale, exchange or other disposition, this Agreement shall automatically terminate.

 

Article
V PROCEDURE FOR

HANDLING RECEIPTS

 

5.1           Receipts
and Disbursements. All monies received by Property Manager for or on behalf of Owner in connection with the operation or management
of the Project shall be promptly deposited by Property Manager in a bank account or accounts established by Property Manager (collectively,
the “Operating Account”). Property Manager shall withdraw and pay from the Operating Account such amounts at such times
as the same are required in connection with the management and operation of the Project in accordance with the provisions of this
Agreement. All monies in the Operating Account are the property of Owner, to be held by Property Manager in trust for Owner in
an account designated as “Agent for Owner” and disbursed in accordance with this Agreement. A separate account for
tenant security deposits shall be established if required by applicable law or Owner.

 

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5.2           Authorized
Signatories. Designated officers and representatives of Property Manager shall be authorized signatories on the Operating Account
and shall have authority to make withdrawals from the Operating Account, subject to the terms of this Agreement. Property Manager
shall maintain insurance under a policy acceptable to Owner for employee errors, omissions and fidelity coverage (covering, without
limitation, losses due to theft or embezzlement) for not less than $1,000,000 per occurrence and crime coverage for not less than
$1,000,000 per occurrence. Any changes in such insurance must be approved by Owner.

 

Article
VI ACCOUNTING

 

6.1           Books
and Records. Property Manager shall maintain on a modified cash basis at the corporate office of Property Manager, a comprehensive
system of office records, books and accounts pertaining to the Project. On 48 hours’ prior written notice to Property Manager,
all books and records relating to the Project shall be available for examination and copying by Owner and its agents, accountants
and attorneys during regular business hours. Property Manager shall preserve all records, books and accounts for the period required
by applicable law and at the end of such period shall deliver or make available to Owner such records. All such records (including,
without limitation, rent rolls and other revenue reports, accounts payable, financial statements, and related accounting records)
shall, at all times, be the property of Owner.

 

6.2           Periodic
Statements; Audits.

 

(a)          Monthly
Statements. On or before the 25th day of each calendar month, Property Manager shall deliver or cause to be delivered to Owner
(i) reports for the prior calendar month and for the Fiscal Year-to-date, and (ii) such other reports as Owner may reasonably request.

 

(b)          Audit.
In the event that Owner requires an audit, it will be at Owner’s expense. The Property Manager shall reasonably cooperate
with the auditors.

 

(c)          Other
Statements. Owner may request, and Property Manager shall provide, such weekly, monthly, quarterly and/or annual leasing and
management reports that relate to the operations of the Project as Owner may reasonably request in writing.

 

Article
VII INSURANCE

 

7.1           Insurance
and Indemnities.

 

(a)          Coverages.
Property Manager shall, at its own expense, procure and keep in effect during the Term of this Agreement, property and casualty
insurance, comprehensive general liability insurance and other insurance coverages as required (and with limits as required) by
Lender as provided in the Loan Documents, which insurance shall be primary in all instances. Owner shall be included as a party
to be given copies of all notices under the liability insurance policies. Owner will be covered as an additional insured in the
comprehensive general liability insurance policies maintained with respect to the Project.

 

Property Manager will
provide the Owner with certificates of insurance or other satisfactory documentation, which evidence that the insurance required
under this Agreement is in full force and effect at all times. All policies required under this Agreement must be endorsed to provide
that 30 days’ advance notice of cancellation (10 days’ advance notice for non-payment of premium) or material change
will be given to Owner. All insurance required hereunder shall: (i) be written with companies acceptable to Owner, which companies
shall be licensed to do business in the state in which the Project is located, and (ii) include a clause providing that the insurer
waives all rights of subrogation against Owner with respect to losses payable under such policies.

 

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The Owner shall furnish
whatever information is reasonably requested by Property Manager for the purpose of establishing the placement of insurance coverages
described herein and shall aid and cooperate in every reasonable way with respect to such insurance and any loss thereunder. Property
Manager shall include in its property and casualty insurance policy covering the Project, the personal property, fixtures, and
equipment located thereon (whether owned by Property Manager or Owner), appropriate clauses pursuant to which the insurance carriers
shall waive the rights of subrogation with respect to losses payable under such policies.

 

(b)          Property
Manager Indemnity. The Property Manager shall indemnify, defend (with counsel reasonably satisfactory to Owner) and save Owner
harmless from and against any and all claims arising from Property Manager’s and its officers’, directors’, members’,
managers’, shareholders’, agents’, contractors’, representatives’ or employees’ intentional
or willful acts or gross negligence in performing its responsibilities hereunder and from and against all costs, reasonable attorneys’
fees, expenses and liabilities incurred in the defense of any claim or any action or proceeding brought as a result of any such
claim.

 

(c)          Owner
Indemnity. Property Manager agrees:

 

(i)          to
notify Owner within five (5) business days after Property Manager receives notice of any loss, damage, or injury occurring
on or about the Project;

 

(ii)         to
take no action (such as admission of liability) which bars Owner from obtaining any protection afforded by any insurance policy
Owner may hold (or under which Owner can make a claim); and

 

(iii)        that
Owner shall have the exclusive right to conduct the defense to any claim, demand, or suit within limits prescribed by such policy
or policies of insurance.

 

Provided Property Manager
complies with the provisions of this paragraph (c), Owner shall indemnify, defend and save Property Manager harmless from all loss,
damage, cost, expense (including attorneys’ fees), liability, or claims for personal injury or property damage incurred or
occurring in, on, or about the Project, except for any losses brought about by the intentional or willful acts or gross negligence
on the part of the Property Manager, its officers, directors, members, managers, shareholders, agents, contractors, representatives
or employees.

 

Owner does hereby agree,
to the fullest extent permitted by law, to indemnify, defend and save Property Manager harmless from and against any injuries to
person (including, without limitation, death) occurring at any time, any loss, damage, and expense to property (including, without
limitation, loss of use thereof), and any claim, cost, penalty, fine, order of injunctive relief, expense or liability of any nature
(including, without limitation, actual attorneys’ fees, fees of environmental consultants and laboratory fees, and any other
costs incurred in the investigation, defense and settlement of claims, and natural resource damages) caused by, arising out of,
resulting from or occurring in connection with, wholly or in part, and whether in time prior to, after or the date of this Agreement,
the alleged exposure to or alleged presence, disposal, release or threatened release of any Regulated Substance (as hereinafter
defined) from, at or about the Project or attributable, in whole or in part, to Owner’s action or inaction or the action
or inaction of Owner’s employees, agents, contractors, lessees or invitees or trespassers (other than the Property Manager)
and any condition caused by or which may be attributable to any Regulated Substance, other than those caused by the gross negligence
or willful act or omission of Property Manager, its officers, directors, members, managers, shareholders, agents, contractors,
representatives or employees.

 

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The term “Regulated
Substance” as used herein means (a) any substance, material, or waste that is regulated under any federal, state, or local
statute, regulation, ordinance, guidance, or order pertaining to environmental protection or the protection of the public health,
safety and/or welfare, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act
of 1980,42 U.S.C. § 9601 et seq. the Solid Waste Disposal Act, 42 U.S.C. § 6901 et seq.;
the Clean Air Act, 42 U.S.C. § 7401 et seq. the Federal Water Pollution Control Act, 33 U.S.C. § 125 1-1387;
the Emergence Planning and Community Right-to-Know Act, 42 U.S.C. § 1101 et seq. the Hazardous Materials Transportation Act,
49 U.S.C. § 1801 et seq. the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § l36-136y;
and the Toxic Substances Control Act, 15 U.S.C. § 2601-2692; and such statute, regulation, ordinance, or order as now amended
or hereafter may be amended; and (b) any substance whatsoever that may pose, now or hereafter, a threat of risk of harm to human
health, the environment, or the soils, geologic materials, air, surface water, or groundwater, including, without limitation, the
presence or release of radon, noxious or nuisance gases or particles, asbestos or asbestos-containing material, equipment or material
containing or consisting of poly- or mono-chlorinated biphenyls, fiberglass, formaldehyde, urea formaldehyde foam, lead, petroleum
and petroleum products, or natural gas or natural gas products.

 

7.2           Survival.
The provisions of this Article 7 shall survive any cancellation, termination or expiration of this Agreement and shall remain in
full force and effect until such time as the applicable statute of limitations shall have expired for all demands, claims, actions,
damages, losses, liabilities or expenses which are the subject of the provisions of this Article 7.

 

Article
VIII DEFAULT; TERMINATION

 

8.1           Default.
Upon the occurrence of any default under this Agreement by a party (“defaulting party”), and after giving notice of
default and opportunity to cure as provided below, the non-defaulting party shall be entitled to terminate this Agreement immediately
in addition to any remedy such party may have at law or in equity. A defaulting party shall be entitled to cure (i) a monetary
default within five (5) days after receipt of written notice of such default, or, (ii) a non-monetary default within fifteen (15)
days after receipt of written notice of such default, provided that the defaulting party proceeds to diligently cure such default
upon receipt of such notice.

 

8.2           Bankruptcy,
Insolvency.

 

(a)          If
either party shall file a petition in bankruptcy or for a reorganization or arrangement or other relief under the United States
Bankruptcy Code or any similar statute, or if any such proceeding shall be filed against either party and is not dismissed or vacated
within 60 days after its filing, or if a court having jurisdiction shall issue an order or decree appointing a receiver, custodian
or liquidator for a substantial part of the property of either party which decree or order remains in force undischarged and unstayed
for a period of 60 days, or if either party shall make an assignment for the benefit of creditors or shall admit in writing its
inability to pay its debts as they become due, the other party may terminate this Agreement upon 5 days written notice.

 

(b)          Owner
and Property Manager have entered into this Agreement in reliance upon the unique knowledge, experience and expertise of the other
party and in reliance upon the duties of loyalty and confidentiality which each party hereby agrees to undertake. Except as otherwise
expressly provided in this Agreement, neither party shall be required to accept performance under this Agreement from any person,
including, without limitation, Owner or Property Manager, as the case may be, should it become a debtor in possession under the
United States Bankruptcy Code, or any trustee of either appointed under the United States Bankruptcy Code and any assignee of such
party or trustee, other than the other party hereto.

 

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8.3           Sale
of Project. This Agreement shall automatically terminate upon any sale of the Project.

 

Article
IX SUBORDINATION TO MORTGAGES

 

9.1           Subordination.
This Agreement and Property Manager’s interest and rights hereunder are and shall be subject and subordinate at all times
to the lien of any mortgage, whether now existing or hereafter created on or against the Project, and all amendments, restatements,
renewals, modifications, consolidations, refinancings, assignments and extensions thereof (“Security Documents”) without
the necessity of any further instrument or act on the part of the Property Manager. Property Manager agrees, at the election of
the holder of any such Security Documents (the “Secured Party”), to attorn to the Secured Party. The term “mortgage”
as used herein shall be deemed to include deeds of trust, security assignments and any other similar encumbrances, and any reference
to the “holder” of a Security Document shall be deemed to include the beneficiary under a deed of trust. Notwithstanding
the foregoing, nothing herein shall obligate the Property Manager to continue its performance under this Agreement unless it has
been paid, and continues to be paid, in accordance with the terms of this Agreement. As provided above, Property Manager acknowledges
and agrees, without limitation, that Lender is a Secured Party and that the Loan Documents to which the Owner is a party constitutes
one of the Security Documents. 

 

9.2           Rights
after Events of Default. Upon an Event of Default (as such term is defined in any Security Document), and provided that it
continues to be paid in accordance with the terms of this Agreement, the Property Manager shall continue to perform its obligations
under this Agreement until the earlier to occur of (a) the termination of this Agreement with respect to the Project or the termination
of this Agreement in accordance with the terms hereof, or (b) the Secured Party’s (or its assignee’s or nominee’s)
acquisition of title to the Project through foreclosure, a deed-in-lieu thereof, or otherwise. On and after an Event of Default,
there shall be no material changes in the terms and conditions of this Agreement without the prior written consent of the Secured
Party.

 

Article
X MISCELLANEOUS PROVISIONS

 

10.1         Notices.
All notices, demands, requests or other communications which may be or are required to be given, served or sent by either party
to the other hereunder, shall be in writing and delivered personally or by recognized national courier service, return receipt
requested or certified mail, return receipt requested, with postage prepaid, to the Property Manager, and to the Owner, at the
addresses set forth below with copies addressed as set forth below:

 

	if to the Owner, to:	BR – NPT Springing Entity, LLC
	 	c/o Bluerock Real Estate, L.L.C.
	 	Heron Tower
	 	70 East 55th Street, 9th Floor
	 	New York, NY 10022
	 	Attn:  R. Ramin Kamfar
	 	 
	if to the Property Manager, to:	Bluerock Property Management, LLC
	 	27777 Franklin Road
	 	Suite 900
	 	Southfield, Michigan 48034
	 	Attn:  Ms. Patricia Anderson

 

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The parties may change the name and/or
address provided above by written notice given as aforesaid. Notices shall be deemed effective upon receipt (with refusal of delivery
being deemed a receipt). In emergency situations, the Property Manager shall endeavor to also fax notices to the addresses set
forth above, but any such faxed notice shall not constitute an effective notice under this Agreement.

 

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

 

10.3         No
Joint Venture or Partnership. Owner and Property Manager hereby renounce the existence of any joint venture or partnership
between them and agree that nothing contained herein or in any document executed in connection herewith shall be construed as making
Property Manager and Owner joint venturers or partners. Property Manager acknowledges and agrees that Property Manager is engaged
only as an independent contractor in the business of managing multifamily projects.

 

10.4         Entire
Agreement and Amendment. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject
matter hereof. This Agreement may be amended or modified only by a written instrument executed by Property Manager and Owner.

 

10.5         Article
and Section Headings. Article and Section headings contained in this Agreement are for reference only and shall not be deemed
to have any substantive effect or to limit or define the provisions contained herein.

 

10.6         Successors
and Assigns. This Agreement shall be binding on the parties hereto, and their successors and permitted assigns. Neither party
may assign or otherwise transfer its interest hereunder without the prior written consent of the other party, which consent may
be withheld in such party’s sole discretion.

 

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

 

10.8         Governing
Law. This Agreement shall be construed in accordance with the internal laws of the State where the Project is located.

 

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

 

10.10         Confidentiality.
Property Manager shall maintain the confidentiality of all matters pertaining to this Agreement and all operations and transactions
relating to the Project.

 

10.11         Time.
Time is of the essence in the performance of this Agreement.

 

    	13

    	 

    

 

10.12         Corporate
Authority of Property Manager. Property Manager represents and warrants that (a) Property Manager is a limited liability company
duly organized and validly existing and is in good standing under the laws of the State of Michigan; and (b) Property Manager has
full power, authority and legal right to execute, deliver and perform this Agreement and to perform all of its obligations hereunder.

 

10.13         Corporate
Authority of Owner. Owner represents and warrants that (a) Owner is a limited liability company, duly organized and validly
existing and is in good standing under the laws of the State of Delaware and (b) Owner has full power, authority and legal right
to execute, deliver and perform this Agreement and to perform all of its obligations hereunder.

 

IN WITNESS WHEREOF,
this Agreement has been duly executed and delivered as of the date first above written.

 

	 	PROPERTY MANAGER
	 	 	 	 
	 	BLUEROCK PROPERTY MANAGEMENT, LLC,
	 	a Michigan limited liability company
	 	 	 	 
	 	By:	Bluerock Real Estate, L.L.C.,
	 	 	a Delaware limited liability company, its Manager
	 	 	 	 
	 	 	By: 	/s/ Jordan Ruddy
	 	 	Name: 	Jordan Ruddy
	 	 	Title:  	Authorized Signatory
	 	 	 	 
	 	OWNER:
	 	 	 	 
	 	BR – NPT SPRINGING ENTITY, LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	BR – North Park Towers, LLC,
	 	 	a Delaware limited liability company, its Manager
	 	 	 	 
	 	 	By:	/s/ Jordan Ruddy
	 	 	Name:	Jordan Ruddy
	 	 	Title:	Authorized Signatory

 

    	14

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