Document:

Exhibit 10.219

 

 

 

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

BR CARROLL GRANDE LAKES JV,
LLC

 

A DELAWARE LIMITED LIABILITY
COMPANY

 DATED AS OF NOVEMBER 4, 2014

 

 

 

    	 

    	 

    

 

LIMITED LIABILITY COMPANY
AGREEMENT

 

OF

BR CARROLL GRANDE LAKES
JV, LLC 

 

THIS Limited Liability Company
Agreement of BR Carroll Grande Lakes JV, LLC ("JV" or "Company") is made and entered
into and is effective as of November 4, 2014, by and between BRG Grande Lakes, LLC, a Delaware limited liability
company ("Bluerock") and Carroll Co-Invest III Grande Lakes, LLC, a Georgia limited liability company
("Carroll") (this "Agreement"). Capitalized terms used herein shall have the meanings
ascribed to such terms in this Agreement.

 

Effective
as of November 4, 2014, the Members, by execution of this Agreement, hereby form the Company as a limited liability company pursuant
to and in accordance with the Delaware Limited Liability Company Act (6 Del. C. §18-101 et seq.), as amended from time to
time (the "Act"), and this Agreement; and the Members hereby agree as follows:

 

Section
1.          Definitions.
As used in this Agreement:

 

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

 

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

 

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

 

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

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

"Bluerock"
shall have the meaning provided in the first paragraph of this Agreement

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

"Carroll"
shall have the meaning provided m the first paragraph of this Agreement.

 

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

 

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

 

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

 

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

 

"Cash
Flow" shall mean, for any period for which Cash Flow is being calculated, gross cash receipts of the Company (but excluding
Capital Contributions), less the following payments and expenditures: (i) all payments of operating expenses of the Company (or
the Subsidiary owning the Property), (ii) all payments of principal of, interest on and any other amounts due with respect to indebtedness,
leases or other commitments or obligations of the Company (or the Subsidiary owning the Property) (including on loans by Members
to the Company), (iii) all sums expended by the Company (or any Subsidiary owning the Property) for capital expenditures, (iv)
all prepaid expenses of the Company (or any Subsidiary owning the Property), and (v) all sums expended by the Company (or any Subsidiary
owning the Property) which are otherwise capitalized.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

"Confidential
Information" shall have the meaning provided in Section 10.01. 

 

"Controllable
Expenses"shall mean all expenses, other than Uncontrollable Expenses, incurred by the Company or any Subsidiary of
the Company with respect to the Property.

 

"Cost
Sharing Agreement" shall mean the Agreement Regarding Purchase and Sale Contract &
Acquisition Loan Fees and Deposits entered into between BRG Grande Lakes, LLC, Carroll Co-Invest III Grande Lakes, LLC and
Carroll Acquisitions, LLC with respect to the Property.

 

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

 

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

 

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

 

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

 

    	-4-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

"Fiscal
Year" shall mean each calendar year ending December 31.

 

"Flow Through
Entity" shall have the meaning provided in Section 5.7.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-5-

    	 

    

 

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

 

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

 

"Loan"
shall mean the acquisition loan in the initial principal amount of Twenty Nine Million Four Hundred Forty Four Thousand and No/100
Dollars ($29,444,000.00) originally made by Walker & Dunlop, LLC for and on behalf of Fannie Mae, the assignee thereof, which
is secured by the Property.

 

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

 

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

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

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

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

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

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

 

    	-6-

    	 

    

 

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

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

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

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

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

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

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

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

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

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

 

    	-7-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-8-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

"Preferred
Return" shall mean, with regard to any and all Capital Contributions made by a Member the greater of (a) an Internal Rate
of Return equal to ten percent (10%) or (b) a return on such capital contributions equal to a 1.3 multiple thereof. The Preferred
Return shall be calculated from the date that any such Capital Contributions are made including, in the case of any amounts funded
pursuant to the Cost Sharing Agreement, the date such amounts are actually funded under the Cost Sharing Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-9-

    	 

    

 

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

 

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

 

"Response Period" shall
have the meaning provided in Section 15.2(b).

 

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

 

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

 

"Seller"
shall mean Panther Orlando/Venue, LLC, a Florida limited liability company.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section
2.            Organization
of the Company.

 

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

 

    	-10-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

Section
3.            Purpose.

 

The
purpose of the Company, subject in each case to the terms hereof, shall be to engage, directly or through a Subsidiary, in the
business of acquiring, owning, operating, developing, renovating, repositioning, managing, leasing, selling,
financing and refinancing the real estate and any real estate related investments (or portions
thereof) consisting of an approximately 306 unit multi-family complex located at 3701 Grande Wood Boulevard, Orlando, Florida 32837
and to be hereafter commonly known as Arium Grande Lakes Apartments, which will be owned by the Company or a Subsidiary of the
Company (any property acquired as aforesaid shall hereinafter be referred to as the "Property"), and all other activities
reasonably necessary to carry out such purpose.

 

Section
4.            Conditions.

 

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

 

    	-11-

    	 

    

 

(a)          Subject
to the terms of the Cost Sharing Agreement, Carroll shall deposit in the Company's bank account or the designated escrow account
of Chicago Title Insurance Company ("Title Company") the aggregate amount of its initial Capital Contribution
set forth on Exhibit A hereto;

 

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

 

(c)          The
Cost Sharing Agreement has been executed and Carroll and its affiliates are in full compliance with the terms thereof;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(c)          The
Cost Sharing Agreement has been executed and Bluerock and its affiliates are in full compliance with the terms thereof;

 

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

 

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

 

    	-12-

    	 

    

 

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

 

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

 

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

 

5.1           Initial
Capital Contributions. (i) Subject to satisfaction of the conditions set forth in Section 4, upon execution of this Agreement,
Bluerock and Carroll shall each make an initial Capital Contribution to the Company of cash in an amount equal to the respective
amounts set forth in Exhibit A attached hereto; provided, however, any funds advanced by Bluerock or Carroll (or their respective
affiliates) pursuant to the terms of the Cost Sharing Agreement shall be credited against the applicable Member's obligation and
provided, further, in the case of Carroll, its initial Capital Contribution to the Company shall be credited with $300,000
for the agreed value of certain contractual rights and intangibles contributed to the Company, including the assignment of the
purchase agreement to acquire the Property to the Company or its Subsidiary. The initial Capital Contribution of the Members to
the Company may include amounts for working capital.

 

5.2           Additional
Capital Contributions .

 

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

 

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

 

    	-13-

    	 

    

 

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

 

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

 

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

 

    	-14-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

    	-15-

    	 

    

 

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

 

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

 

    	-16-

    	 

    

 

Section
6.            Distributions.

 

6.1           Distribution
of Distributable Funds

 

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

 

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

 

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

 

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

 

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

 

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

 

		b.	if a Carroll Change Event has not occurred, such Distributable
Funds shall be distributed as follows: (A) first, an amount equal to twenty-five percent (25%) of such Distributable Funds shall
be distributed to Carroll and an amount equal to seventy-five percent (75%) of such Distributable Funds shall be distributed to
Bluerock until Bluerock shall have actually realized and received through Distributions a fifteen percent (15%) Internal Rate
of Return and (B) thereafter, an amount equal to thirty-five percent (35%) of such Distributable Funds shall be distributed to
Carroll and an amount equal to sixty-five percent (65%) of such Distributable Funds shall
be distributed to Bluerock.

 

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

 

    	-17-

    	 

    

 

Section
7.            Allocations.

 

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

 

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

 

7.3           U.S.
Tax Allocations.

 

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

 

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

 

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

 

    	-18-

    	 

    

 

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

 

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

 

8.2          Reports
and Financial Statements.

 

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

 

(1)         An
unaudited balance sheet of the Company;

 

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

 

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

 

(b)          Within
fifteen (15) days of the end of each quarter of each Fiscal Year, and provided that any such request was made prior to the end
of the quarter, the Property Manager shall cause to be furnished to Bluerock such information as requested by Bluerock as is necessary
for any reporting requirements of the SOIFs or BR Growth (to the extent any of such affiliates of Bluerock are hereafter a Member
or direct or indirect owner of a Member of the Company) and any reporting requirements of any REIT Member (whether a direct or
indirect owner) to determine its qualification as a REIT and its compliance with REIT Requirements as shall be reasonably requested
by Bluerock. Further, the Property Manager shall cooperate in a reasonable manner at the request of any Member to work in good
faith with any designated accountants or auditors of such Member or its Affiliates so that such Member or its Affiliate is able
to comply with its public reporting, attestation, certification and other requirements under the Securities Exchange Act of 1934,
as amended, applicable to such entity, and to work in good faith with the designated accountants or auditors of the Member or any
of its Affiliates in connection therewith, including for purposes of testing internal controls and procedures of such Member or
its Affiliates.

 

    	-19-

    	 

    

 

(c)          The
Members acknowledge that the Property Manager is obligated to perform Property-related accounting and furnish Property-related
accounting statements under the terms of the Management Agreement (the "Property Manager Reports"). Manager shall
be entitled to rely on the Property Manager Reports with respect to its obligations under this Section 8, and the Members
acknowledge that the reports to be furnished shall be based on the Property Manager Reports, without any duty on the part of the
Manager to further investigate the completeness, accuracy or adequacy of the Property Manager Reports.

 

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

 

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

 

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

 

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

 

    	-20-

    	 

    

 

Section
9.            Management
and Operations.

 

9.1          Management.

 

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

 

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

 

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

 

9.2          Management
Committee.

 

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

 

    	-21-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

    	-22-

    	 

    

 

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

 

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

 

9.3           Annual
Business Plan. (a) No later than thirty (30) days prior to the end of the then current Fiscal Year (except for the 2014 Annual
Business Plan, as agreed to by the Members, a copy of which is attached hereto as Exhibit D), Property Manager shall prepare
(or cause to be prepared) and shall deliver to the Members for their unanimous approval the annual business plan for the next Fiscal
Year. A plan approved by the Members is referred to herein as the "Annual Business Plan." If
final approval of a proposed annual business plan by all Members has not been given by the beginning
of the Fiscal Year to which such proposed annual business plan relates, Property Manager shall operate the Property on the basis
of an Annual Business Plan determined by (i) assuming that the revenue from the Property will increase to 103% of the revenues
collected in the prior Fiscal Year, (ii) assuming that the Controllable Expenses will increase to 103% of the amount of the actual
Controllable Expenses incurred in the prior Fiscal Year, (iii) increasing all Uncontrollable Expenses by any anticipated or known
increases in such Uncontrollable Expenses, and (iv) including any expenses for a threatened or existing emergency event that could
cause or is causing material damage to the Property. If a Member fails either to approve or disapprove of any proposed annual business
plan within thirty (30) days after receipt of written request for such approval, such Member shall be deemed to have approved of
such proposed annual business plan. No material changes or departures from any item in an Annual Business Plan approved in accordance
with the terms herein shall be made by Property Manager without the prior unanimous approval of the Members. The Property Manager
shall provide quarterly updates to the Annual Business Plan, solely
for informational purposes. Each Annual Business Plan shall include the information set forth in Exhibit B.

 

    	-23-

    	 

    

 

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

 

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

 

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

 

9.6           Other
Activities.

 

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

 

(b)           Limitation
on Actions of Members; Binding Authority. No Member shall, without the prior written consent of the other Members, take any
action on behalf of, or in the name of, the Company, or enter into any contract, agreement,
commitment or obligation binding upon the Company, or, in its capacity as a Member or Manager of the Company, perform any act in
any way relating to the Company or the Company's assets, except in a manner and to the extent consistent with the provisions of
this Agreement.

 

    	-24-

    	 

    

 

9.7          Management
Agreement.

 

(a)          Independent
Contractor. CMG, as Property Manager, has agreed to provide management services to the Company (or a Subsidiary of the Company)
with respect to the Property on the terms set forth in the Management Agreement; and it is agreed that Property Manager shall provide
such management services to the Company (or a Subsidiary of the Company) as an independent contractor.

 

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

 

(c)         Termination
of Management Agreement.

 

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

 

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

 

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

 

    	-25-

    	 

    

 

9.8          Operation
in Accordance with REOC/REIT Req uirements.

 

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

 

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

 

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

    	-26-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

    	-27-

    	 

    

 

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

 

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

 

(ix)         Failing
to make current cash distributions to REIT Member each year in an amount which does not at least equal the taxable income allocable
to REIT Member for such year; provided, however, any such cash distributions shall be made in accordance with the priorities set
forth in Section 6.l (c).

 

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

 

9.9          FCPA.

 

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

 

    	-28-

    	 

    

 

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

 

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

 

Section
10.          Confidentiality.

 

10.l         Any information relating to a Member's business, operation or finances which are proprietary to, or considered proprietary by,
a Member are hereinafter referred to as "Confidential Information". All Confidential Information in tangible form (plans,
writings, drawings, computer software and programs, etc.) or provided to or conveyed orally or visually to a receiving Member,
shall be presumed to be Confidential Information at the time of delivery to the receiving Member. All such Confidential Information
shall be protected by the receiving Member from disclosure with the same degree of care with which the receiving Member protects
its own Confidential Information from disclosure. Each Member agrees: (i) not to disclose such Confidential Information to any
Person except to those of its employees or representatives who need to know such Confidential Information in connection with the
conduct of the business of the Company and who have agreed to maintain the confidentiality of such Confidential Information and
(ii) neither it nor any of its employees or representatives will use the Confidential Information for any purpose other than in
connection with the conduct of the business of the Company; provided that such restrictions shall not apply if such Confidential
Information is or hereafter becomes public, other than by breach of this Agreement; was already in the receiving Member's possession
prior to any disclosure of the Confidential Information to the receiving Member by the divulging Member; or has been or is hereafter
obtained by the receiving Member from a third party not bound by any confidentiality obligation with respect to the Confidential
Information; provided, further, that nothing herein shall prevent any Member from disclosing any portion of such Confidential
Information (1) to the Company and allowing the Company to use such Confidential Information in connection with the Company's business,
(2) pursuant to judicial order or in response to a governmental inquiry, by subpoena or other legal process, but only to the extent
required by such order, inquiry, subpoena or process, and only after reasonable notice to the original divulging Member, (3) as
necessary or appropriate in connection with or to prevent the audit by a governmental agency of the accounts of Carroll or Bluerock,
(4) in order to initiate, defend or otherwise pursue legal proceedings between the parties regarding this Agreement, (5) necessary
in connection with a Transfer of an Interest permitted hereunder or (6) to a Member's respective attorneys or accountants or other
representatives.

 

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

 

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

 

Section
11.          Representations
and Warranties.

 

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

 

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

 

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

 

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

 

    	-30-

    	 

    

 

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

 

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

 

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

 

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

 

    	-31-

    	 

    

 

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

 

(h)          Securities
Matters.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-32-

    	 

    

 

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

 

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

 

12.1        Prohibited
Transfers. Except as otherwise provided in this Section 12, Sections 5.2(b), 15.l and 15.2, or
as approved by the Management Committee, no Member shall Transfer all or any part of its Interest, whether legal or beneficial,
in the Company, and any attempt to so Transfer such Interest (and such Transfer) shall be null and void and of no effect. Notwithstanding
the foregoing, either Member shall have the right, with the consent of the other Member, at any time to pledge to a lender or creditor,
directly or indirectly, all or any part of its Interest in the Company for such purposes as it deems necessary in the ordinary
course of its business and operations.

 

12.2        Affiliate
Transfers.

 

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

 

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

 

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

 

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

 

    	-33-

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-34-

    	 

    

 

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

 

(4)         if
as a result of such Transfer the aggregate value of Interests held by "benefit plan investors" including at least one
benefit plan investor that is subject to ERISA, could be "significant" (as such terms are defined in U.S. Department
of Labor Regulation 29 C.F.R. 2510.3-101(f)(2)) with the result that the assets of the Company could be deemed to be "plan
assets" for purposes of ERISA;

 

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

 

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

 

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

 

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

 

Section 13.        Dissolution.

 

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

 

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

 

    	-35-

    	 

    

 

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

 

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

 

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

 

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

 

(e)          the
Purchase Agreement has not been closed by November 28, 2014.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	-36-

    	 

    

 

Section 14.          Indemnification.

 

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

 

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

 

    	-37-

    	 

    

 

14.3        Indemnification
by Members for Misconduct.

 

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

 

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

 

14.4        General
Indemnification by the Members.

 

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

 

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

 

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

 

14.5         [Intentionally
Omitted]

 

14.6         [Intentionally
Omitted]

 

    	-38-

    	 

    

 

Section
15.          Sale
Rights.

 

15.1        Push
I Pull Rights.

 

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

 

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

 

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

 

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

 

    	-39-

    	 

    

 

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

 

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

 

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

 

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

 

15.2       Forced
Sale Rights.

 

(a)          Offers.
If, at any time following the second anniversary of the date that the Property is initially
acquired, either Member (i) desires to offer the Property for sale on specified terms, or (ii) receives from an unaffiliated purchaser
a bonafide written cash offer (i.e., not seller financed) for the purchase of the Property
at a price in excess of the then-pending balance due under the Loan and otherwise on terms that such Member desires for the Company,
or any Subsidiary that owns the Property (individually or collectively, the "Ownership Entity") to accept (such
specified terms or bona fide offer being herein called the "Offer"),
then the Member desiring to make or accept the Offer (the "Initiating Member") shall provide written notice of
the terms of such Offer (the "Sale Notice") to the other Member (the "Non-Initiating Member").

 

(b)          Response.
The Non-Initiating Member shall have thirty (30) days from the date of the Sale Notice (the "Response Period")
to provide written notice to the Initiating Member of whether the Ownership Entity should make
or accept the Offer; the failure to timely deliver such notice shall be deemed to constitute an election to accept the Offer and
sell such Property on the terms of the Offer.

 

    	-40-

    	 

    

 

(c)          Offer
Unacceptable.

 

(1)         If
the Non-Initiating Member does not wish for the Company, or the Ownership Entity, to make or accept the Offer, the Initiating Member
may elect to sell its Interest to the Non-Initiating Member, in which case the Non-Initiating Member must purchase the Initiating
Member's Interest for an amount equal to the amount that would be distributable to the Initiating Member if the Company had accepted
the Offer, closed the sale pursuant to such Offer and wound up its affairs pursuant to Section 13.

 

(2)         For
purposes of the foregoing calculations, the purchase price for a sale shall be reduced by Imputed Closing Costs therefor. The
Initiating Member must exercise this option, if at all, by delivering written notice thereof to the Non-Initiating Member
within twenty (20) days after the end of the Response Period. The Non-Initiating Member shall pay the Company cash for each
Ownership Entity or the Initiating Member cash for its Interest, as the case may be. Closing shall take place on or before
the date specified in the Sale Notice, but if the Non-Initiating Member is purchasing the Initiating Member's Interest or one
or more Ownership Entities, the Non-Initiating Member shall have until 120 days after the Sale Notice in which to close. If
the Initiating Member or the Non-Initiating Member defaults at closing, the non-defaulting party shall have the right to
bring suit for damages, for specific performance, or exercise any other remedy available at law or in equity. Upon payment at
closing, the Initiating Member shall execute and deliver all documents reasonably required to transfer the interest being
sold.

 

(d)          Offer
Acceptable. If the Non-Initiating Member consents (or is deemed to have consented) to the Company or the Ownership Entities
selling the Property on the terms of the Offer, then the Initiating Member shall be allowed to sell the Property for cash on the
terms of the Offer for a period of up to one hundred eighty (180) days following the expiration of the Response Period. If the
Initiating Member obtains a bona fide third party contract to sell the Property on the terms of the offer within such one
hundred eighty (180) day period, the Initiating Member shall have an additional period of ninety (90) days after the date of such
contract (that is, not to exceed 270 days after the expiration of the Response Period) in which to consummate the sale. If after
having received the consent (or deemed consent) of the Non-Initiating Member to the sale of such Property on the terms of the Offer,
the Initiating Member is unable to obtain a bona fide contract within such one hundred eighty (180) day period, or if after
having obtained such bona fide contract, the Initiating Member is unable to consummate such sale within 270 days after the
expiration of the Response Period, then the Initiating Member must again submit an Offer to the Non-Initiating Member under the
terms of this Section 15.2 before it may sell such Property.

 

    	-41-

    	 

    

 

Section
16.          Miscellaneous.

 

16.1        Notices.

 

(a)          All
notices, requests, approvals, authorizations, consents and other communications required or permitted under this Agreement shall
be in writing and shall be (as elected by the Person giving such notice) hand delivered by messenger or overnight courier service,
mailed (airmail, if international) by registered or certified mail (postage prepaid), return receipt requested, or sent via facsimile
(provided such facsimile is immediately followed by the delivery of an original copy of same via one of the other foregoing delivery
methods) addressed to:

 

If
to Bluerock:

 

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

712 Fifth Avenue, 9th Floor

New York, New York 10019

Attention: James G. Babb, III

Facsimile No. (646) 278-4220

 

with copies to:

 

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

712 Fifth Avenue, 9th Floor

New York, New
York 10022

Attention: Michael
Konig, Esq.

Facsimile No.
(646) 278-4220

 

and

 

Hirschler Fleischer

2100 East Cary Street

Richmond, VA 23223

Attention: S. Edward Flanagan, Esq.

Facsimile No. (804) 644-0957

 

If
to Carroll:

 

c/o Carroll Organization, LLC 3340

Peachtree Road, Suite 1620

Atlanta, Georgia
30326

Attention:
M. Patrick Carroll

Facsimile
No. (404) 523-9372

 

    	-42-

    	 

    

 

With a copy to:

 

Morris, Manning &
Martin LLP

1600 Atlanta Financial Center

3343 Peachtree Road, NE

Atlanta,
Georgia 30326

Attention:
Corey 

B. May, Esq.

Facsimile: (404) 365-9532

 

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

 

(c)          By
giving to the other parties at least fifteen (15) days written notice thereof, the parties hereto and their respective successors
and assigns shall have the right from time to time and at any time during the term of this Agreement to change their respective
addresses.

 

16.2         Governing
Law. This Agreement and the rights of the Members hereunder shall be governed by, and interpreted in accordance with, the laws
of the State of Delaware. Each of the parties hereto irrevocably submits to the jurisdiction of the New York State courts and the
Federal courts sitting in the State of New York and agrees that all matters involving this Agreement shall be heard and determined
in such courts. Each of the parties hereto waives irrevocably the defense of inconvenient forum to the maintenance of such action
or proceeding. Each of the parties hereto designates CT Corporation System, 1633 Broadway, New York, New York 10019, as its agent
for service of process in the State of New York, which designation may only be changed on not less than ten (10) days' prior notice
to all of the other parties.

 

16.3         Successors.
This Agreement shall be binding upon, and inure to the benefit of, the parties and their successors and permitted assigns. Except
as otherwise provided herein, any Member who Transfers its Interest as permitted by the terms of this Agreement shall have no further
liability or obligation hereunder, except with respect to claims arising prior to such Transfer.

 

16.4         Pronouns.
Whenever from the context it appears appropriate, each term stated in either the singular or the plural shall include the singular
and the plural, and pronouns stated in either the masculine, the feminine or the neuter gender shall include the masculine, feminine
and neuter.

 

16.5         Captions
Not Part of Agreement. The captions contained in this Agreement are inserted only as a matter of convenience and in no way
define, limit or extend the scope or intent of this Agreement or any provisions hereof.

 

    	-43-

    	 

    

 

16.6         Severability.
If any provision of this Agreement shall be held invalid, illegal
or unenforceable in any jurisdiction or in any respect, then the validity, legality and enforceability
of the remaining provisions contained herein shall not in any way be affected or impaired, and the Members shall use their best
efforts to amend or substitute such invalid, illegal or unenforceable provision with enforceable and valid provisions which would
produce as nearly as possible the rights and obligations previously intended by the Members without renegotiation of any material
terms and conditions stipulated herein.

 

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

 

16.8         Entire
Agreement and Amendment. This Agreement and the other written agreements described herein between the parties hereto entered
into as of the date hereof, constitute the entire agreement between the Members relating to the subject matter hereof. In the event
of any conflict between this Agreement and such other written agreements, the terms and provisions of this Agreement shall govern
and control. No amendment or waiver by a party shall be enforceable against that party unless it is in writing and duly executed
by such party.

 

16.9         Further
Assurances. Each Member agrees to execute and deliver any and all additional instruments and documents and do any and all acts
and things as may be necessary or expedient to effectuate more fully this Agreement or any provisions hereof or to carry on the
business contemplated hereunder.

 

16.10        No
Third Party Rights. The provisions of this Agreement are for the exclusive benefit of the Members and the Company, and no other
party (including, without limitation, any creditor of the Company) shall have any right or claim against any Member by reason of
those provisions or be entitled to enforce any of those provisions against any Member.

 

16.11        Incorporation
by Reference. Every Exhibit and Annex attached to this Agreement is incorporated in this Agreement by reference.

 

16.12        Limitation
on Liability. Except as set forth in Section 14 and with respect to a Default Loan as set forth in Section 5.2(b),
the Members shall not be bound by, or be personally liable for, by reason of being a Member, a judgment, decree or order of a court
or in any other manner, for the expenses, liabilities or obligations of the Company, and the liability of each Member shall be
limited solely to the amount of its Capital Contributions as provided under Section 5. Except as set forth in Section
14.3 and with respect to a Default Loan as set forth in Section 5.2(b), any claim against any Member (the "Member
in Question") which may arise under this Agreement shall be made only against, and shall be limited to, such Member in
Question's Interest, the proceeds of the sale by the Member in Question of such Interest or the undivided interest in the assets
of the Company distributed to the Member in Question pursuant to Section 13.3(d) hereof. Except as set forth in Section
14.3 and with respect to a Default Loan as set forth in Section 5.2(b), any right to proceed against (i) any other assets
of the Member in Question or (ii) any agent, officer, director, member, manager, partner, shareholder or employee of the Member
in Question or the assets of any such Person, as a result of such a claim against the Member in Question arising under this Agreement
or otherwise, is hereby irrevocably and unconditionally waived.

 

    	-44-

    	 

    

 

16.13         Remedies
Cumulative. The rights and remedies given in this Agreement and by law to a Member shall be deemed cumulative, and the exercise
of one of such remedies shall not operate to bar the exercise of any other rights and remedies reserved to a Member under the provisions
of this Agreement or given to a Member by law. In the event of any dispute between the parties hereto, the prevailing party shall
be entitled to recover from the other party reasonable attorney's fees and costs incurred in connection therewith.

 

16.14         No
Waiver. One or more waivers of the breach of any provision of this Agreement by any Member shall not be construed as a waiver
of a subsequent breach of the same or any other provision, nor shall any delay or omission by a Member to seek a remedy for any
breach of this Agreement or to exercise the rights accruing to a Member by reason of such breach be deemed a waiver by a Member
of its remedies and rights with respect to such breach.

 

16.15         Limitation
On Use of Names. Notwithstanding anything contained in this Agreement or otherwise to the contrary, each of Bluerock and Carroll
as to itself agree that neither it nor any of its Affiliates, agents, or representatives is granted a license to use or shall use
the name of the other under any circumstances whatsoever, except such name may be used in furtherance of the business of the Company
but only as and to the extent unanimously approved by the Members. Any change in the name of the Property must be approved by the
Management Committee.

 

16.16         Publicly
Traded Partnership Provision. Each Member hereby severally covenants and agrees with the other Members for the benefit of such
Members, that (a) it is not currently making a market in Interests in the Company and will not in the future make such a market
and (b) it will not Transfer its Interest on an established securities market, a secondary market or an over-the-counter market
or the substantial equivalent thereof within the meaning of Code Section 7704 and the Regulations, rulings and other pronouncements
of the U.S. Internal Revenue Service or the Department of the Treasury thereunder. Each Member further agrees that it will not
assign any Interest in the Company to any assignee unless such assignee agrees to be bound by this Section 16.16 and to
assign such Interest only to such Persons who agree to be similarly bound.

 

16.17         Uniform
Commercial Code. The interest of each Member in the Company shall be an "uncertificated security" governed by Article
8 of the Delaware UCC and the UCC as enacted in the State of New York (the "New York UCC"), including, without
limitation, (i) for purposes of the definition of a "security" thereunder, the interest of each Member in the Company
shall be a security governed by Article 8 of the Delaware UCC and the New York UCC and (ii) for purposes of the definition of an
"uncertificated security" thereunder.

 

16.18         Public
Announcements. Neither Carroll nor any of its Affiliates shall, without the prior approval of Bluerock, issue any press releases
or otherwise make any public statements with respect to the Company or the transactions contemplated by this Agreement, except
as may be required by applicable law or regulation or by obligations pursuant to any listing agreement with any national securities
exchange so long as Carroll or such Affiliate has used reasonable efforts to obtain the approval of Bluerock prior to issuing such
press release or making such public disclosure.

 

    	-45-

    	 

    

 

16.19         No
Construction Against Drafter. This Agreement has been negotiated and prepared by Bluerock and Carroll and their respective
attorneys and, should any provision of this Agreement require judicial interpretation, the court interpreting or construing such
provision shall not apply the rule of construction that a document is to be construed more strictly against one party.

 

Section
17.         Insurance. During the Term, Property Manager, pursuant to the terms of the Management Agreement, shall procure and
maintain insurance as is determined to be appropriate by the Management Committee (in form and with endorsements, waivers and deductibles
and with insurance companies, designated or approved by Bluerock) naming the Company (and the Subsidiary owning the Property),
Bluerock and Carroll as insureds thereunder.

 

[SIGNATURES ON FOLLOWING PAGES]

 

    	-46-

    	 

    

 

IN WITNESS WHEREOF,
this Agreement is executed by the Members, effective as of the date first set forth above.

 

	 	BRG GRANDE LAKES, LLC,
	 	a Delaware limited liability company
	 	 	 	 	 
	 	By:	Bluerock Residential Holdings, L.P., a Delaware limited partnership, its sole member
	 	 	 	 	 
	 	 	By:	Bluerock  Residential  Growth REIT,  Inc.,  a Maryland corporation,  its general partner
	 	 	 	 	 
	 	 	 	By:	/s/ R. Ramin
    Kamfar
	 	 	 	Name: 	R. Ramin
    Kamfar
	 	 	 	Title:	Authorized Signatory

 

    	-47-

    	 

    

 

	 	CARROLL CO-INVEST III GRANDE LAKES, LLC, a Georgia limited liability company
	 	 	 
	 	By: 	/s/ M. Patrick Carroll
	 	Name: 	M. Patrick Carroll
	 	Title: 	Authorized Signatory
	 	 	 
	 	For purposes of Sections 8.2(b), 9.3, 9.4, 9.7 and 17 only, and only for the term Carroll Management Group, LLC is Property Manager under the Management Agreement.
	 	 	 
	 	CARROLL MANAGEMENT GROUP, LLC
	 	 	 
	 	By: 	/s/ Josh Champion
	 	Name: 	Josh
    Champion
	 	Title: 	President

 

    	-48-

    	 

    

 

EXHIBIT
A

 

Initial Capital Contributions and Percentage
Interests

 

	Member Name	 	Capital Contributions	 	 	Percentage Interest	 
	 	 	 	 	 	 	 
	BRG Grande Lakes, LLC	 	$	14,441,140.53	 	 	 	95	%
	 	 	 	 	 	 	 	 	 
	Carroll Co-Invest III Grande Lakes, LLC	 	$	760,060.03	 	 	 	5	%

 

Management Committee Representatives

 

Bluerock:

 

James G. Babb, III

Jordan B. Ruddy

 

Carroll:

 

Patrick Carroll

Joshua Champion

 

    	 

    	 

    

 

EXHIBIT B

 

Annual Business Plan Information

 

		1.	a narrative description of any acquisitions or sales
that are planned and any other activities proposed to be undertaken;

 

		2.	a projected annual income statement (accrual basis) on
a quarter-by-quarter basis;

 

		3.	a projected balance sheet as of the end of the next Fiscal
Year;

 

		4.	a schedule of projected operating cash flow (including
itemized operating revenues, project costs and project expenses) for such Fiscal Year on a quarter-by-quarter basis, including
a schedule of projected operating deficits, if any;

 

		5.	a marketing plan indicating the portions of the Property
that Property Manager recommends be made available for sale or lease and the proposed terms and conditions relating thereto;

 

		6.	a detailed budget reflecting on a line by line basis
all projected operating expenses and any proposed construction and capital expenditures for the Property, including projected
dates for commencement and completion of the foregoing;

 

		7.	a description of the proposed investment of any funds
of the Company which are (or are expected to become) available for investment;

 

		8.	a description, including the identity of the recipient
(if known) and the amount and purpose, of all fees and other payments proposed, expected or projected to be paid for professional
services and, if a fee or payment exceeds $25,000, for other services rendered to or on behalf of the Company by third parties;

 

		9.	a projection of the amount of any anticipated additional
Capital Contributions which may be called for pursuant to Section 5.2(a) and the purposes for which such additional Capital
Contributions may be used; and

 

		10.	such
other information requested from time to time by any Member.

 

    	 

    	 

    

 

EXHIBIT C

 

Management Agreement

 

[TO COME]

 

    	 

    	 

    

  

CARROLL

MANAGEMENT GROUP

 

 

 

PROPERTY
MANAGEMENT AGREEMENT

 

dated
as of November 4, 2014

between

BR
CARROLL ARIUM GRANDE LAKES OWNER, LLC

Owner
and

CARROLL
MANAGEMENT GROUP, LLC

Manager

  

 

  

    	 

    	 

    

  

PROPERTY MANAGEMENT AGREEMENT

 

THIS
PROPERTY MANAGEMENT AGREEMENT (this “Agreement”) is made as of November 4, 2014, by and between BR CARROLL
ARIUM GRANDE LAKES OWNER, LLC, a Delaware limited liability company (“Owner”), and CARROLL MANAGEMENT
GROUP, LLC, a Georgia limited liability company (“Manager”).

 

RECITALS:

 

A.
          Owner is the owner of certain real property more particularly described in Exhibit "A" attached hereto
and incorporated herein by this reference, upon which certain improvements consisting of approximately 306 multifamily apartment
units located in Orlando, Florida and commonly known as [Grande Lakes Apartments], and related amenities, landscaping, parking
facilities and other common areas have been constructed (collectively, the "Project").

 

B.           Manager
has represented to Owner that Manager is experienced in the management, leasing, operation, bookkeeping, reporting, marketing,
maintenance and repair of projects similar to the Project;

 

C.           Owner
hereby appoints Manager as sole and exclusive agent of Owner to manage the Project on the terms herein and Manager accepts such
appointment on the terms herein and agrees to use diligent efforts to conduct and enhance the management of the Project, subject
to the terms herein; and

 

D.           The
relationship of Manager to Owner shall be that of an independent contractor. Nothing herein shall be construed as creating a partnership,
joint venture, or any other relationship between the parties hereto;

 

NOW,
THEREFORE, in consideration of the premises and the sum of TEN AND N0/100 DOLLARS ($10.00) paid by Owner to Manager, and for
other valuable consideration, including the mutual covenants hereinafter set forth, the receipt, adequacy, and sufficiency of which
are acknowledged by the parties hereto, Owner and Manager covenant and agree as follows:

 

1.          Definitions.

 

"Affiliate"
means any person that directly or indirectly, through one or more intermediaries, controls or is controlled by or is under
common control with a designated Person.

 

"Annual
Business Plan" shall mean, with respect to calendar year 2014 , the Annual Business Plan for the management
and operation of the Project attached hereto as Exhibit "
B" and incorporated herein by this reference, and for all other years during the term
of this Agreement, the Annual Business Plan for such year established pursuant to Section 5(e) below.

 

"Applicable
Law" shall mean all building codes, zoning ordinances, laws, orders, writs, ordinances, rules and regulations of any Federal,
state, county, city, borough, or municipality, or of any division, agency, bureau, court, commission or department or of any division,
agency, bureau, court, commission or department thereof, or of any public officer or official, having jurisdiction over or with
respect to the Project.

 

    	1

    	 

    

 

"Approved
Operating Expenses" shall mean, with respect to calendar year 2014 , the expenses set forth in the Annual
Business Plan attached hereto as Exhibit "B" and incorporated herein by this reference, and for all other years
during the term of this Agreement, the expenses contained in the Annual Business Plan for such year established pursuant to Section
5(e) below, together with all other operating expenses with respect to the Project which are otherwise approved by Owner or
permitted pursuant to the express terms of this Agreement.

 

"Cause"
shall have the meaning set forth in the Operating Agreement.

 

"Claims"
shall have the meaning set forth in Section 9(a) below.

 

"Code"
means the Internal Revenue Code of 1986, as amended from time to time, or any corresponding provision or provisions of succeeding
law.

 

"Confidential
Information" shall mean the books, records, business practices, methods of operations, computer software, financial models,
financial information, policies and procedures, and all other information relating to Owner and the Project (including any such
information relating to the Project generated by Manager), which is not available to the public.

 

"Controllable
Expenses" shall mean all expenses, other than Uncontrollable Expenses, with respect to the Project.

 

"Depository
Accounts" shall have the meaning set forth in Section 5(c) below.

 

"Emergency"
shall mean an event requiring action to be taken prior to the time that approval could reasonably be obtained from Owner,
(i) in order to comply with Applicable Law, any insurance requirement or this Agreement, or to preserve the Project (or any part
thereof), or (ii)         for the safety of any Tenants, occupants, customers or
invitees thereof, or (iii) to avoid the suspension of any services necessary to the Tenants, occupants, licensees or invitees
thereof.

 

"Emergency
Expenditures" shall have the meaning set forth in Section 5(j) below.

 

"Excluded
Items" means:

 

(a)          capital
contributions by Owner or any interest therein;

 

(b)          the
refinancing of any loan or any voluntary conversion, sale, exchange or other disposition of the Project or any portion thereof;

 

(c)          casualty
insurance proceeds;

 

(d)          proceeds
of condemnation awards;

 

(e)          any
deposits including rental, security, damage, or cleaning deposits;

 

(f)          interest
on investments or otherwise;

 

    	2

    	 

    

 

(g)          abatement
of taxes;

 

(h)          any
utility reimbursements received from Tenants for amounts actually paid by Owner or Manager directly to the utility companies (Owner
acknowledging and agreeing that any revenues, fees, mark-ups and overhead charges received from Tenants in excess of amounts actually
paid to the utility companies shall be included in Monthly Gross Receipts);

 

(i)          discounts
and dividends on insurance policies; and

 

(j)          other
income not directly derived from Manager's management of the Project.

 

"Leases" shall have the meaning
set forth in Section 5(f)(ii) below.

 

"Loan
Documents" shall mean any and all documents evidencing or securing any indebtedness obtained by Owner and secured by the
Project with respect to which Manager has received written notice from Owner, as same shall be amended, replaced, refinanced or
otherwise modified from time to time during the Term of this Agreement. Manager acknowledges receipt of the Loan Documents of even
date herewith evidencing and securing that certain Loan in the original maximum principal amount of $29,444,000, more or less,
from Walker & Dunlop,
LLC, for and on behalf of Fannie Mae, the assignee thereof ("Lender") to Owner.

 

"Management
Fee" shall have the meaning set forth in Section 4(a).

 

"Manager
Indemnitees" shall have the meaning set forth in Section 9(b) below. 

 

"Manager's Event of Default"
shall have the meaning set forth in Section 10(a) below .

 

"Master
Insurance Program" shall have the meaning set forth in Section 6(b) below.

 

"Monthly
Gross Receipts" shall include the entire amount of all Rental Income and additional revenues derived from the Project
other than the Excluded Items, including all receipts, determined on a cash basis, from:

 

		(a)	Rental Income;

 

		(b)	Owner's share of vendor income proceeds from vending machines and concessions; and

 

		(c)	All other income and cash receipts attributable to or derived from the Project other than the Excluded
Items.

 

"Operating
Agreement" shall mean that certain Limited Liability Company Agreement for BR Carroll Grande Lakes JV, LLC, dated November
4, 2014.

 

"Owner lndemnitees"
shall have the meaning set forth in Section 9(a) below.

 

"Owner's Event
of Default" shall have the meaning set forth in Section 10(c) below.

 

    	3

    	 

    

 

"Person"
means any individual, partnership, corporation, trust, limited liability company or other entity.

 

"Project"
shall have the meaning set forth in the recitals above.

 

 "Reimbursable
Expenses" shall have the meaning set forth in Section 4(b) below.

 

 "Rental
Income" means all rent and other charges due from Tenants, from users of garage spaces, storage closets, parking charges,
and from any other lessees of other non-dwelling facilities, if any, in the Project, from concessionaires in consequence of the
authorized operation of facilities in the Project maintained primarily for the benefit of Tenants, and all other rental fees and
other charges otherwise due Owner and collected by Manager with respect to the Project.

 

  "Security
Account" shall have the meaning set forth in Section 5(d) below.

 

 "Tenants"
shall have the meaning set forth in Section 5(d) below.

 

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

 

2.           Appointment
of Manager. On and subject to the terms and conditions of this Agreement, Owner hereby retains Manager commencing on November
4, 2014 (the "Commencement Date") to manage and lease the Project.

 

3.           Term.
This Agreement shall commence on the Commencement Date and shall continue for ·
a term of forty-eight (48) months (the "Initial Term") or
until Manager is terminated pursuant to Section 11 of
this Agreement.

 

4.           Management
Fee; Other Fees; Reimbursement of Expenses. In consideration of the performance by Manager of its duties and obligations
hereunder:

 

(a)          Owner
agrees to pay to Manager a fee computed and payable monthly in arrears in an amount equal to two and seventy five hundredths percent
(2.75%) of Monthly Gross Receipts (the "Management Fee"). The Management
Fee shall be deducted each month from the Monthly Gross Receipts to be paid to Owner pursuant to this Agreement.

 

(b)          Subject
to the Annual Business Plan, Owner agrees to reimburse Manager for the aggregate expenses incurred by Manager in connection with
or arising from the ownership, operation, management, repair, replacement, maintenance and use or occupancy of the Project, including,
without limitation, those costs expressly set forth in Exhibit "C" attached hereto and incorporated herein by
this reference (all items to be reimbursed pursuant to this Section 4(b) are referred to herein as "Reimbursable
Expenses"). If
any such Reimbursable Expenses are a part of the Approved Operating Expenses and are paid by Manager and not from Monthly
Gross Receipts on hand, then Owner agrees to reimburse such amounts to Manager. All other Reimbursable Expenses which are not a
part of Approved Operating Expenses and not contained in the list set forth in Exhibit " C" attached hereto must
be approved by Owner in advance, such approval not to be unreasonably withheld, conditioned or delayed. Manager shall submit to
Owner an invoice detailing the calculation of such Reimbursable Expenses no later than the fifteenth (15th) day of each month for
the immediately preceding month. The Reimbursable Expenses then owed shall be deducted each month from the Monthly Gross Receipts
to be paid to Owner pursuant to this Agreement.

 

    	4

    	 

    

 

(c)          Intentionally
Omitted.

 

(d)          A
construction management fee in the amount of five percent (5.0%) of the rehabilitation and renovation expenses for the Project,
as set forth in the Annual Business Plan, which fee shall be calculated and paid upon each respective draw and within thirty (30)
days of final draw or following completion of the restoration or satisfaction of the claim, whichever is applicable.

 

(e)          A
fee will be charged for the initial takeover of the Project in the amount of $2,000.00 to cover costs for training and marketing
of the Project.

 

(f)          Intentionally
Omitted

 

(g)
       Upon the termination or expiration of this Agreement other than for Cause, a close-out fee equal to one hundred percent (100%)
of the last month's full management fee (the "Close Out Fee"). The Close Out Fee shall be deducted from the final
month's Monthly Gross Receipts to be paid to Owner.

 

5.           Authority
and Responsibilities of Manager.

 

(a)          Independent
Contractor. In the performance
of its duties hereunder, Manager shall be and act as an independent contractor, with the sole duty to supervise, manage, operate,
control, direct and determine the methods of performance of the specified duties and obligations hereunder. Nothing contained in
this Agreement shall be deemed or construed to create a partnership, joint venture, employment relationship, or otherwise to create
any liability for one party with respect to indebtedness, liabilities or obligations of the other party except as otherwise may
be expressly set forth herein.

 

(b)          Standard
of Care. Manager shall perform its duties and obligations in a professional manner, and shall maintain the Project in accordance
with the applicable Annual Business Plan and in accordance with the standards a reasonably prudent multifamily property manager
would employ with respect to properties of similar age, size, and class as the Project in the market area in which the Project
is located.

 

(c)          Depository
Accounts. All Monthly Gross Receipts from the Project, after deducting Approved Operating Expenses, Reimbursable Expenses and
the Management Fee, shall be deposited by Manager into one or more deposit accounts designated by Owner (each a "Depository
Account"). All Depository Accounts shall be the sole and exclusive property of Owner, and Manager shall retain no interest
therein, except as may be expressly provided in this Agreement. Manager shall not commingle Depository Accounts with any other
funds. Checks may be drawn upon such Depository Accounts only by persons authorized by Owner in writing to sign checks, at least
one of whom shall be a designee of Manager. No loans shall be made from the Depository Account. Depository Accounts shall be established
by and in the name of Manager to be held in trust for Owner.

 

    	5

    	 

    

 

(d)          Security
Deposits. Manager shall deposit and maintain all security deposits in a separate account designated by Owner and insured by
the Federal Deposit Insurance Corporation (the "Security Account"). Manager shall fully fund all security deposits
actually received by Manager from tenants of the Project under written leases (collectively, "Tenants") into the
Security Account, notwithstanding whether Applicable Law requires full funding. The Security Account shall be a segregated account
that is distinct from the Depository Accounts and any other accounts relating to the Project or Manager. The Security Account shall
be the sole and exclusive property of Owner, and Manager shall retain no interest therein, except as may be expressly provided
herein. Manager shall not commingle the Security Account with any other funds. Checks may be drawn upon the Security Account only
by persons authorized by Owner in writing to sign checks, at least one of whom shall be a designee of Manager. No loans shall be
made from the Security Account. Manager shall not use a "standardized clearing account" for the Security Account. The
Security Account shall be established in the name of Manager to be held in trust for Owner.

 

(e)          Annual
Business Plan. Manager agrees to prepare an Annual Business Plan for the operation of the Project for Owner's review and approval,
no later than November 1 in each year during the term of this Agreement. If
final approval of a proposed Annual Business Plan by Owner has not been given by the beginning
of the year to which such proposed Annual Business Plan relates, Property Manager shall operate the Project on the basis of an
Annual Business Plan determined by (i) assuming that the revenue from the Project will increase to 103% of the revenues collected
in the prior year, (ii) assuming that the Controllable Expenses will increase to 103% of the amount of the actual Controllable
Expenses incurred in the prior year, (iii) increasing all Uncontrollable Expenses by any anticipated or known increases in such
Uncontrollable Expenses, and (iv) including any Emergency Expenditure (as defined in Section SU) below). No material deviations
(as defined herein) from any item in an Annual Business Plan approved in accordance with the terms herein shall be made by Manager
without the prior approval of the "Management Committee" (as defined in the Operating Agreement), to the extent required
by the Operating Agreement. The Manager shall provide quarterly updates to the Annual Business Plan, solely for informational purposes.
Each Annual Business Plan shall include the information set forth in Exhibit "E". Owner (and its sole member) will consider
the proposed Annual Business Plan in accordance with the terms of the Operating Agreement and will consult with Manager prior to
the commencement of the forthcoming calendar year in order to agree on an Annual Business Plan for such calendar year. The Annual
Business Plan for calendar year 2014 is attached hereto at Exhibit "B". Notwithstanding anything herein to the contrary,
the Owner may, at any time and from time to time, submit to Manager reasonable modifications to all or any portion of the Annual
Business Plan during the course of a calendar year, which modifications shall be incorporated in the Annual Business Plan then
in effect and such Annual Business Plan as modified shall be deemed to be the Annual Business Plan then in effect, and Owner shall
fund into the Disbursement Account any and all amounts as and when necessary to fund any increases in expenditures which may be
required as a result of any such change to the Annual Business Plan. Notwithstanding the foregoing sentence to the contrary, in
no event shall Owner have the right to modify the Annual Business Plan to reduce the Management Fee or Reimbursable Expenses otherwise
due pursuant to Section 4. In no event shall Manager be deemed in default under this Agreement if such changes by Owner to the
Annual Business Plan causes Manager to have insufficient funds to perform its obligations hereunder. Manager agrees to use commercially
reasonable efforts to ensure that the actual costs of maintaining and operating the Project shall not exceed the amount reasonably
necessary and, in any event, will not exceed either the Annual Business Plan either in total amount or in any one accounting category.
Notwithstanding anything to the contrary, Manager shall secure Owner's prior written approval for any expenditure that will result
in an excess of the annual budgeted amount in any one accounting category by more than $10,000.00 of the Annual Business Plan or
$25,000.00 in the aggregate for all categories (a "material deviation"). Manager shall promptly advise and inform the
Owner of any transaction, notice, event or proposal directly relating to the management and operation of the Project which does
or is likely to significantly affect, either adversely or favorably, the Project, other assets of the Owner or cause a material
deviation from the Annual Business Plan. Nothing contained herein shall in any way diminish the obligations or duties of Manager
hereunder.

 

    	6

    	 

    

 

(f)          Leasing,
Collection of Rents, Etc.

 

(i)          Manager
shall use commercially reasonable efforts consistent with the standard of care set forth herein to lease apartment units in accordance
with all Applicable Laws, to retain residents and to maximize Rental Income. Manager shall not enter into any Lease which has a
term greater than twelve (12) months, except as may be expressly permitted by any Loan Documents. Manager shall comply in all material
respects with all of the terms and conditions applicable to the leasing of the Project set forth in any Loan Documents.

 

(ii)         Manager
shall sign apartment leases ("Leases") on behalf of Owner in its capacity as property manager hereunder. Manager
shall only sign Leases in the form of lease attached hereto as Exhibit "D".

 

(iii)        Manager
shall collect rents, security deposits and other charges payable by Tenants in accordance with the Leases, and shall collect Monthly
Gross Receipts due Owner with respect to the Project from all other sources, and shall deposit all such monies received promptly
upon receipt in the appropriate accounts as provided herein. If Manager
receives Excluded Items, Manager shall promptly deposit same in an account designated by Owner.

 

(iv)        Manager
shall pay all debt service, monthly bills and insurance premiums on the Project from the Depository Account.

 

    	7

    	 

    

 

(v)         Manager
shall, at Owner's expense, market the Project for rental, terminate Leases, evict Tenants, institute and settle suits for delinquent
payments as Manager, in its reasonable discretion, deems advisable, subject to other provisions of this Agreement. In connection
therewith, Manager may, at Owner's expense, as limited by the provisions of Section 5(k) of this Agreement, consult and
retain legal counsel.

 

(vi)        Manager
shall, at Owner's written request, on the twenty-first (21st) day of each month, pay Owner an amount equal to Monthly Gross Receipts
for such month, less amounts paid for Approved Operating Expenses of the Project in accordance with this Agreement, including,
without limitation, the fees owed to Manager pursuant to Section 4 of this Agreement.

 

(vii)       The
responsibilities and services included in this Section 5 as part of Manager's duties shall not entitle Manager to any additional
compensation over and above the fees set forth in Section 4 of this Agreement. Except as expressly provided in Section
4, Manager shall not be entitled to any compensation based upon any Project financing or sale of the Project, unless Manager
is engaged pursuant to a separate agreement with Owner to provide brokerage services in connection therewith, in which case Manager's
right to compensation for Project financing or sale shall be based upon such separate agreement.

 

(g)          Repair,
Maintenance and Service.

 

(i)     Manager
shall maintain the Project in good repair and condition, consistent with the standard of care set forth herein and in accordance
with the Annual Business Plan.

 

(ii)    Subject
to the other terms and conditions of this Agreement, Manager in its capacity hereunder shall, in Owner's name and at Owner's expense,
execute contracts for water, sanitary sewer, electricity, gas, internet service, telephone, trash removal, television, vermin or
pest extermination and any other services which are necessary to properly maintain the Project, except for utility services to
individual apartment units, which shall be each Tenants' respective responsibility to the extent provided in the applicable Leases.
Any such contracts shall not, unless the Owner otherwise approves the terms thereof, materially deviate from the terms of the then
existing approved Annual Business Plan of the Project. Manager shall, in
Owner's name and at Owner's expense, out of available cash flow, hire and discharge independent contractors for the repair and
maintenance of the Project. Other than Leases, which Manager is (subject to the terms of Section 5(f)) authorized to execute hereunder,
Manager shall not, without the prior written consent of the Owner, enter into any contract in the name of Owner which may not be
terminated without payment of penalty or premium with not more than thirty (30) days' notice. Except as set forth above, Manager
shall be permitted to and shall enter into all other contracts (in the name of and/or as agent for Owner) in accordance with the
standard of care established by this Agreement and as Manager reasonably believes are necessary to perform Manager's obligations
hereunder. Manager shall act at arms' length with all contractors and shall employ no Affiliates of Manager without the prior written
consent of Owner.

 

    	8

    	 

    

 

 

(h)          Manager's
Employees. Manager shall have in its employ at all times a sufficient number of employees to enable it to professionally manage
the Project in accordance with the terms of this Agreement, as determined by Manager in its professional discretion and subject
to the Annual Business Plan. Manager shall prepare, execute and file all forms, reports and returns, as applicable, but only to
the extent expressly required by Applicable Laws, and Manager shall be permitted to rely on the advice of counsel and other experts
in making the determination of what is required. Manager is authorized to screen, test, investigate, hire, supervise, discharge,
and pay all personnel necessary in Manager's reasonable discretion to maintain and operate the Project. Owner shall reimburse Manager
for all employee related expenses, liabilities, and administrative burden (including, without limitation, costs for all full-time
and part-time employees such as gross salaries and wages, payroll taxes, health insurance, workers compensation, and other benefits
of Manager's employees including the costs for training, software, and other administrative and processing costs, including without
limitation, Project accounting, payroll processing, risk management, benefits administration, travel, marketing expenses, bank
charges, telephone and answering service [which may be equitably allocated on a prorata basis (based on the gross revenues of each
such property) among the Project and other properties managed by Manager, if applicable]) and all costs related to pre-employment
testing and screening, provided, however, that all of the foregoing costs shall be subject to the then effective Annual Business
Plan or otherwise permitted or approved by Owner pursuant to this Agreement. Owner expressly acknowledges and agrees that Manager
may use employees normally assigned to other work centers and/or part-time employees to properly staff the Project, in which case
wages and related expenses shall be reimbursed on a pro rata basis for the time actually spent for the Project (rather than being
allocated based on the gross revenues of each property); provided, however, Owner shall not pay or reimburse Manager for all or
any part of Manager's general overhead expenses, including salaries and payroll expenses of personnel of Manager, except as otherwise
set forth herein.

 

(i)          Maintenance
of Records. Manager agrees to keep and maintain at all times all necessary books and records relating to the leasing, management
and operation of the Project, and to prepare and render to Owner monthly itemized accounts of receipts and disbursements incurred
in connection with its leasing operation and management by the thirteenth (13th) day of the following month. In particular, Manager
shall furnish Owner with the statements and reports listed on Exhibit " F" attached hereto. An annual audit report
shall be prepared at Owner's expense, showing a balance sheet and an income and expense statement, all in reasonable detail and
certified by an independent certified public accountant approved by Owner in its sole discretion. All books, correspondence and
data pertaining to the leasing, management and operation of the Project shall, at all times, be safely preserved. Such books, correspondence
and data shall be available to Owner at all reasonable times, upon not less than forty-eight (48) hours' advance notice, for Owner's
inspection thereof, and shall, upon the termination of this Agreement be delivered to Owner in their entirety and upon request
of Owner be delivered to Owner within thirty (30) days of such request. Manager shall maintain files of all original documents
relating to Leases, vendors and all other business of the Project in an orderly fashion at the Project, which files shall be the
property of Owner and shall at all times be open to Owner's inspection and available for copying at Owner's request, cost and expense.
On or about the end of each calendar quarter of each year, Manager shall cause to be furnished to BRO Grande Lakes, LLC ("Bluerock")
such information as reasonably requested in writing by Bluerock as is necessary for any reporting requirements of any direct
or indirect members of Bluerock or for any reporting requirements of any REIT Member (as defined in the Operating Agreement) (whether
a direct or indirect owner) to determine its qualification as a real estate investment trust and its compliance with REIT Requirements
(as defined in the Operating Agreement) as shall be reasonably requested by Bluerock. Further, the Manager shall cooperate in a
reasonable manner at the request of Owner and any direct or indirect member of Owner to work in good faith with any designated
accountants or auditors of such party or its Affiliates so that such party or its Affiliate is able to comply with its public reporting,
attestation, certification and other requirements under the Securities Exchange Act of 1934, as amended, applicable to such entity,
and to work in good faith with the designated accountants or auditors of the such party or any of its Affiliates in connection
therewith, including for purposes of testing internal controls and procedures of such party or its Affiliates.

 

    	9

    	 

    

 

(j)          Approved
Operating Expenses; Emergency Expenditures. The Approved Operating Expenses which Manager is authorized to incur and pay on
behalf of Owner under this Agreement shall in all respects be limited to those expenses set forth in the Annual Business Plan for
the period during which such expenses are paid; provided, however, that Manager shall be authorized to incur and pay for
all other expenses permitted pursuant to Section 5(e) above, or which are otherwise expressly permitted by this Agreement
regardless of whether or not such expenses are within the limitations set by the Annual Business Plan. Any expenses permitted pursuant
to Section 5(e) or otherwise approved in writing by Owner which were not included in the Annual Business Plan shall be deemed
sums permitted to be expended by Manager in addition to (and not in limitation of) the amounts permitted under the Annual Business
Plan. The foregoing notwithstanding, if an Emergency occurs necessitating repairs the cost of which would have the effect of exceeding
the Annual Business Plan by more than those limitations as provided above (such expenses referred to herein as "Emergency
Expenditures"), and Manager is unable to communicate promptly with Owner, then Manager may order, contract for and pay
for such Emergency Expenditures not to exceed $20,000.00, with the cost thereof being included as a Reimbursable Expense for the
purposes of this Agreement, and Manager shall promptly thereafter notify Owner of any such expenses and the nature of the Emergency.

 

(k)          Legal
Proceedings and Compliance with Applicable Laws.

 

(i)          Manager
shall promptly notify Owner (and each insurance carrier of which Manager is aware and whose policy may cover a related claim) in
writing of the receipt of, or attempted service on Owner or Manager of, (A) any demand, notice or legal process, or (B) the occurrence
of any casualty, loss, injury or damage on, at or concerning the Project.

 

(ii)         Manager
acknowledges that it is not authorized to accept service of process or any other notice on behalf of Owner. Manager shall not make
representations or provide information to any Person that is inconsistent with the foregoing.

 

    	10

    	 

    

 

(iii)        Manager
shall promptly provide copies to Owner of all notices and other written communications from Owner's insurance carriers with respect
to accepting coverage, appointing counsel or any other matter related to a claim against Owner.

 

(iv)        Manager
shall promptly provide notice to Owner of any oral or written communication relating to the Project that Manager receives from
a governmental or regulatory agency. Manager shall promptly provide Owner with a complete copy of any such written materials.

 

(v)         Manager
shall fully comply and cause its employees to fully comply, with all Applicable Laws in connection with this Agreement and the
performance of its obligations hereunder.

 

(vi)        Manager
agrees that it shall not, and shall not permit its employees to, cause any hazardous materials or toxic substances to be stored,
released or disposed of on or in the Project except as may be incidental to the operation of the Project (e.g., cleaning supplies,
fertilizers, paint, pool supplies and chemicals) and then only in complete compliance with all Applicable Laws, in conformity with
the standard of care established hereby and in accordance with any limitations set forth in any loan documents evidencing or securing
any financing secured by the Project. If (A) there is a violation
of Applicable Laws or a violation of the terms of any applicable loan documents regarding the storage, release and disposal of
such hazardous materials or toxic substances, or (B) Manager reasonably believes that the storage, release or disposal of any hazardous
material, petroleum product, or toxic substances, could cause liability to the Owner, including any releases caused by Tenants,
third parties or employees, on or affecting the Project, Manager shall notify Owner promptly.

 

(vii)       Manager
agrees that the Project shall be offered to all prospective tenants on a nondiscriminatory basis without regard to race, color,
religion, sex, family status, handicap or national origin in accordance with Applicable Law.

 

(1)
Computers. All computers, hardware, software, computer upgrades and maintenance in connection therewith shall be at Owner's
expense.

 

(m)
Insufficient Cash Flow. In the event Manager, at its sole option, elects to advance funds for Owner's account or Owner is
indebted to Manager for services or otherwise arising out of, and incurred in accordance with the terms of, this Agreement, all
monies advanced by Manager or otherwise past-due shall thereafter be due and payable by Owner upon demand and shall bear interest
at the prime rate as set forth in the Wall Street Journal, plus one percent, per annum, computed on monthly debit balances on Owner's
account. At the election of Manager, and upon prior written notice to Owner, Manager may satisfy any permitted advances made by
Manager, together with the interest due thereon, from the Monthly Gross Receipts of the Project. In the event that the Depository
Accounts for the Project do not have sufficient funds to cover the monetary obligations of Manager or the Project pursuant to this
Agreement, Manager shall give Owner prompt written notice with respect to such shortfall and if Owner has not promptly provided
funds, then Manager will have no duty to perform any such obligations until Owner provides
sufficient funding, unless Manager so elects in its sole discretion pursuant to this Section 5(m), and Manager shall not
be in default under this Agreement for failure to perform any obligation hereunder as a result of such lack of funds. If
Manager suspects that the cash flow from the Project will not, at any time, be sufficient to cover any Project related expenses,
Manager shall promptly notify Owner, and Manager and Owner shall mutually determine the order in which the obligations of the Project
will be satisfied; provided, however, that Manager and Owner agree that available cash flow will in any event first be applied
to Uncontrollable Expenses that are then due and payable.

 

    	11

    	 

    

 

6.            Insurance
Requirements.

 

(a)          Manager's
Insurance. With respect to its operations of the Project, Manager shall carry (i) worker's compensation insurance for compensation
to any person engaged in the performance of any work undertaken under this Agreement, including employer's liability coverage with
limits of not less than as may be required by Applicable Law, (ii) commercial general liability insurance and excess/umbrella liability
insurance policies with combined limits of not less than $3,000,000.00 per occurrence and in the aggregate; such policies shall
be written on an occurrence basis, and include contractual liability and other provisions as Owner shall reasonably require, (iii)
a crime insurance policy including insuring agreement for employee dishonesty, forgery and alteration, theft, disappearance and
destruction, and robbery and safe burglary, with limits of liability for each insuring agreement of not less than $100,000.00,
with a maximum deductible of $5,000.00 per claim, and (iv) if the Manager provides services similar to those set forth in this
Agreement to third-party clients with which the Manager has no other affiliation, a professional liability insurance policy covering
all the activities of Manager; such policy shall be written on a "claims made" basis, with limits of at least $1,000,000.00
in the aggregate and with a maximum deductible of $25,000.00. Any loss for less than the amount of the deductibles shall be borne
by Manager. All policies of insurance shall be maintained in effect during the period of this Agreement. Each policy shall be from
an insurance company rated "A" or higher by the A.M. Best Insurance Guide, with a financial size category rating of 12
or higher. The Commercial General Liability insurance policy shall be endorsed to include Owner as an additional insured. Manager
shall furnish Owner with copies of Acord certificates evidencing such policies and the renewals thereof.

 

(b)          Owner's
Insurance. As an operating expense of the Project, Owner or Owner's representative shall provide and maintain insurance as
consistent and required by the loan documents relating to any financing secured by the Project, or if there are none applicable,
in an amount equal to 100% of the full replacement value of the Project and the improvements thereon. Alternatively, Manager has
arranged, through its insurance agent, a master insurance program in which owners of property managed by Manager may participate
(the "Master Insurance Program"). If Owner elects to participate in the Master Insurance Program, the Owner shall
pay the amount thereof allocable to the Project set forth on the insurance invoice delivered to Owner under the Master Insurance
Program, which invoice may include administrative charges in excess of the actual insurance premiums charged by the underlying
insurance carriers. All insurance coverage provided under the Master Insurance Program shall be terminated when this Agreement
expires or is sooner terminated without the need for prior notice of termination of the insurance coverage. Owner acknowledges
that Manager is not an expert or consultant regarding insurance coverages and requirements; accordingly, Owner assumes all risk
with respect to the adequacy of insurance coverages, whether such insurance is provided through the Master Insurance Program or
otherwise, and Manager shall have no liability therefor in any respect. Manager shall be named an additional insured under any
policies of insurance carried by Owner with respect to the Project.

 

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(c)          Annual
Business Plan. Upon Manager's submission of each Annual Business Plan, Manager shall affirmatively and in writing confirm and
set forth the scope of all existing insurance coverage, including confirming coverage for the forthcoming year.

 

7.            Representations
and Duties of Manager. Manager represents, warrants, covenants and agrees that:

 

(a)          Manager
has the authority to enter into and to perform this Agreement, to execute and deliver all documents relating to this Agreement,
and to incur the obligations provided for in this Agreement.

 

(b)          When
executed, this Agreement shall constitute the valid and legally binding obligations of Manager in accordance with its terms.

 

(c)          Manager
has all necessary licenses, consents and permissions to enter into this Agreement, manage the Project, and otherwise comply with
and perform Manager's obligations and duties hereunder. Manager shall comply with any conditions or requirements set out in any
such licenses, consents and permissions, and shall at all times operate and manage the Project in accordance with such conditions
and requirements.

 

(d)          During
the term of this Agreement, Manager will be a valid limited liability company, duly organized under the laws of the State of its
formation, be qualified in the State in which the Project is located and shall have full power and authority to manage the Project,
and otherwise comply with and perform Manager's obligations and duties under this Agreement.

 

(e)          Manager
shall comply with any requirements under applicable environmental laws, regulations and orders which affect the Project.

 

(f)          Manager
shall cause the Project to be operated in a manner so that all requirements shall be met which are necessary to obtain or achieve
issuance of all necessary permanent unconditional certificates of occupancy, including all governmental approvals required to permit
occupancy of all of the apartment units in the Project.

 

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8.           Representations
of Owner. Owner represents and warrants, that:

 

(a)          Owner
has the authority to enter into and to perform this Agreement, to execute and deliver all documents relating to this Agreement,
and to incur the obligations provided for in this Agreement;

 

(b)          The
Person executing this Agreement on behalf of Owner has the requisite power and authority to execute this Agreement on behalf of
Owner; and

 

(c)          When
executed, this Agreement, together with all documents executed pursuant hereto, shall constitute the valid and legally binding
obligations of Owner in accordance with its terms.

 

9.           Indemnification.

 

(a)          Indemnification
of Owner. Manager shall indemnify, protect, defend (with legal counsel approved by Owner) and hold harmless Owner and Owner's
members, managers, partners and Affiliates, together with their respective officers, directors, agents, employees and affiliates
(collectively, "Owner Indemnitees"), from and against any and all claims, demands, actions, liabilities, losses,
costs, expenses, damages, penalties, interest, fines, injuries and obligations, including reasonable attorneys' fees, court costs
and litigation expenses ("Claims") actually incurred by any Owner Indemnitee as a result of (i) any act by Manager
(or any officer, agent, employee or contractor of Manager) outside the scope of Manager's authority hereunder, (ii) any act or
failure to act by Manager (or any officer, agent, employee or contractor of Manager) constituting gross negligence, willful misconduct,
fraud or material breach of this Agreement, other than as covered by Owner's insurance (for negligence or misconduct only) and
to the extent Owner's insurance is available, (iii) Claims made by current or former employees or applicants for employment arising
from hiring, supervising or firing same, or (iv) any act or omission by Manager, its employees, officers, agents or contractors
knowingly in violation of any Applicable Laws.

 

(b)          Indemnification
of Manager by Owner. Owner shall indemnify, protect, defend and hold harmless Manager and its Affiliates, together with their
respective officers, directors, agents, employees and affiliates (collectively, "Manager lndemnitees") from and
against any and all Claims actually incurred by any Manager Indemnitee resulting from performance of its obligations under this
Agreement, except that this indemnification shall not apply with respect to any Claims (i) resulting from any act by Manager, its
employees, officers, agents or contractors outside the scope of Manager's authority hereunder, (ii) resulting from any act or failure
to act by Manager, its employees, officers, agents or contractors constituting gross negligence, willful misconduct, fraud or material
breach of this Agreement, (iii) resulting from Claims made by current or former employees or applicants for employment arising
from hiring, supervising or firing same, or (iv) any act by Manager, its employees, agents or contractors knowingly in violation
of any Applicable Law.

 

(c)          Survival.
The provisions of this Section 9 shall survive the termination of this Agreement.

 

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10.         Defaults.

 

(a)          Manager's
Event of Default. Manager shall be deemed to be in default hereunder upon the happening of any of the following ("Manager's
Event of Default"):

 

(i)          The
failure by Manager to keep, observe or perform any covenant, agreement, term or provision of this Agreement and the continuation
of such failure, in full or in part, for a period of thirty (30) days after written notice thereof by Owner to Manager, or if
such default cannot be cured within such thirty (30) day period, then such additional period as shall be reasonable (but in no
event to exceed an additional sixty (60) days thereafter), provided Manager commences to cure such default within such thirty
(30) day period and proceeds diligently to prosecute such cure to completion;

 

(ii)         The
making of a general assignment by Manager for the benefit of its creditors, the filing by Manager with any bankruptcy court of
competent jurisdiction of a voluntary petition under Title 11 of the U.S. Code, as amended from time to time, the filing by Manager
of any petition or answer seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar
relief under any present or future federal or state act or law relating to bankruptcy, insolvency, or other relief for debtors,
Manager being the subject of any order for relief issued under such Title 11 of the U.S. Code, as amended from time to time, or
the dissolution or liquidation of Manager;

 

(iii)        The
intentional misapplication, misappropriation or commingling of funds held by Manager for the benefit of Owner, including the payment
of fees to Affiliates of the Manager or the loaning of funds to Affiliates of Manager; or

 

(iv)        The
occurrence of any other for Cause event with respect to Manager's Affiliate, Carroll Co-Invest III Grande Lakes, LLC.

 

(b)          Remedies
of Owner. Upon a Manager's Event of Default, after expiration of all applicable notice and cure periods, Owner shall be entitled
to (i) terminate in writing this Agreement effective as of the date designated by Owner (which may be the date upon which notice
is given) and/or (ii) pursue an action for the actual compensatory damages incurred by Owner provided the Manager's Event of Default
has not then been cured or such cure has not commenced and is not being diligently pursued. Owner expressly agrees that termination
of this Agreement and compensatory monetary damages are its sole rights and remedies with respect to a Manager's Event of Default
and Owner expressly waives and releases all other rights and remedies, including, without limitation, the right to seek equitable
relief, including specific performance or injunctive relief, and to sue for any consequential or punitive damages.

 

(c)          Owner's
Event of Default. Owner shall be deemed to be in default hereunder upon the happening of any of the following (an "Owner's
Event of Default"):

 

(i)          The
failure by Owner to keep, observe or perform any covenant, agreement, term or provision of this Agreement to be kept, observed
or performed by Owner, and such default shall continue for a period of thirty (30) days after written notice thereof
by Manager to Owner, or if such default cannot be cured within such thirty (30) day period, then such additional period as shall
be reasonable, provided Owner commences to cure such default within such thirty (30) day period and proceeds diligently to prosecute
such cure to completion; or

 

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(ii)         The
making of a general assignment by Owner for the benefit of its creditors, the filing by Owner with any bankruptcy court of competent
jurisdiction of a voluntary petition under Title 11 of the U.S. Code, as amended from time to time, the filing by Owner of any
petition or answer seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief
under any present or future federal or state act or law relating to bankruptcy, insolvency, or other relief for debtors, Owner
being the subject of any order for relief issued under such Title 11 of the U.S. Code, as amended from time to time, or
the dissolution or liquidation of Owner.

 

(d)          Remedies
of Manager. Upon an Owner's Event of Default, Manager shall be entitled to (i) terminate in writing this Agreement effective
as of the date designated by Manager which is at least ten (10) days after receipt of such notice of termination by Owner provided
the Owner's Event of Default has not then been cured or such cure commenced, and/or (ii) pursue an action for the actual compensatory
damages incurred by Manager. Manager expressly agrees that termination and compensatory monetary damages are its sole rights and
remedies with respect to an Owner's Event of Default and Manager expressly waives and releases the right to seek equitable relief,
including specific performance or injunctive relief, and to sue for any consequential or punitive damages.

 

11.         Termination
Rights. In addition to the termination right set forth in Section 3 above, Manager
and Owner shall have the following rights to terminate this Agreement:

 

(a)          Termination
By Owner Upon Manager's Event of Default. Upon a Manager's Event of Default, Owner may terminate this Agreement as specified
in Section 10(b) of this Agreement.

 

(b)          Termination
By Manager Upon Owner's Event of Default. Upon an Owner's Event of Default, Manager may terminate this Agreement as specified
in Section 10(d) of this Agreement.

 

(c)          Termination
Without Cause. Either Owner or Manager may terminate this Agreement on ninety (90) days' prior written notice after the expiration
of the Initial Term, without cause. In addition, upon any sale of the Project, this Agreement shall automatically terminate as
of the closing date of such sale. Finally, upon any closing of the buy/sell transactions contemplated by Section 15 of the Operating
Agreement where Carroll Co-Invest III Grande Lakes, LLC is not the surviving member of BR Carroll Grande Lakes JV, LLC, this Agreement
shall automatically terminate as of the closing date of the associated membership interest transfers.

 

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(d)          Effect
of Termination Upon Payment of Fees. Upon the termination of this Agreement for any reason, Manager shall be entitled to its
earned, but unpaid, fees as set forth in Section 4 of this Agreement, for the period prior to the termination.

 

(e)          Final
Accounting; Delivery of Project Upon Termination.

 

(i)      Within
thirty (30) days after termination of this Agreement for any reason, Manager shall:

 

(1)         deliver
to Owner all funds (less final payroll and applicable fees), checks, keys, Lease files, books and records and other Confidential
Information; and

 

(2)         Promptly
leave the Project and cause Manager's employees to leave the Project without causing any damage thereto.

 

(ii)      Within
ninety (90) days' after termination of this Agreement, Manager shall deliver to Owner a final accounting for the Project, reflecting
the balance of income and expenses thereon as of the date of termination.

 

(iii)       Termination
of this Agreement under any of the provisions of this Agreement shall not release either party as against the other from liability
for failure to perform any of its duties or obligations as expressed herein and required to be performed prior to such termination.
Owner agrees to cooperate with Manager in the performance of the obligations set forth in this Section 11(e).

 

12.         Confidentiality.

 

(a)          Preservation
of Confidentiality. In connection with the performance of its obligations hereunder, Manager acknowledges that it will have
access to Confidential Information. Manager shall treat such Confidential Information as proprietary to Owner and private, and
shall preserve the confidentiality thereof and not disclose, or cause or permit its employees, agents or contractors to disclose,
such Confidential Information. Notwithstanding the foregoing, Manager shall have the right to disclose Confidential Information
if and only to the extent it has become public knowledge, but not due to the actions of Manager, or Manager is required by court
order to disclose any Confidential Information. If Manager
or anyone to whom Manager transmits Confidential Information pursuant to this Agreement becomes legally compelled to disclose any
of the Confidential Information, Manager shall provide Owner with prompt notice thereof so that Owner may seek a protective order
or other appropriate remedy or waive compliance with the provisions of this Agreement. In the event that such protective order
or other remedy is not obtained by Owner or Owner waives compliance with the provisions of this Agreement, Manager shall furnish
or cause to be furnished only that portion of the Confidential Information which Manager is required by Applicable Law to furnish,
and will exercise commercially reasonable efforts to obtain reliable assurances that confidential treatment is accorded the Confidential
Information so furnished.

 

(b)          Property
Right in Confidential Information. All Confidential Information shall remain the property of Owner and Manager shall have no
ownership interest therein.

 

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13.         Survival
of Agreement. All indemnity obligations set forth herein, all obligations to pay earned and accrued fees and expenses,
all confidentiality obligations, and all obligations to perform accrued prior to the date of termination shall survive the termination
of this Agreement.

 

14.         Enforcement
of Agreement. This Agreement, its interpretation, performance and enforcement, and the rights and remedies of the parties
hereto, shall be governed and construed by and in accordance with the law of the State in which the Project is located. In any
dispute pertaining to, or litigation or arbitration arising from the enforcement or interpretation of the provisions of this Agreement,
the prevailing party shall be entitled to recover its reasonable attorney's fees and costs actually incurred, including those incurred
in connection with all appellate levels, bankruptcy, mediation or otherwise to maintain such action, from the losing party.

 

15.         Assignment.
Manager shall not sell, directly or indirectly, assign or otherwise transfer by operation of law or otherwise all or any part
of its rights or obligations under this Agreement, except, with Owner's consent, to an Affiliate of Manager or to any lender of
Manager as collateral security for any and all borrowings of Manager and/or any of its Affiliates, and any such unauthorized assignment
shall be void ab initio and of no effect. A change in the ownership of Manager shall not constitute an assignment, provided that
the Key Individuals (as defined in the Operating Agreement), or any of them, remain in control of the day to day operations of
Manager with respect to the Project.

 

16.       
Use of Trademark. If at
any time the Project shall be promoted and branded using the name "ARIUM" (the "Trademark"), as elected
by Owner in its sole discretion, Owner shall grant (or cause to be granted) to Manager a non-exclusive, royalty-free license to
use (but not the right to sublicense) the Trademark for such purpose, until the earlier of (i) the dissolution and termination
of this Agreement or (ii) the date on which Owner elects, in its sole discretion, to brand the Project using a different name.
Owner and certain of its Affiliates retain ownership of and the right to use (and to license) the Trademark in connection with
any and all matters. At no time during the term of this Agreement shall any value be placed upon the Trademark by Manager or the
right to its use, or the goodwill, if any, attached thereto. Upon the dissolution of this Agreement, neither the Trademark nor
the right to its use, nor the goodwill, if any, attached thereto shall be considered as an asset of the Manager, unless otherwise
licensed or sublicensed to Manager by Affiliates of Owner having a right to so license or sublicense the Trademark.

 

17.         Notices.
All notices, demands, requests or other communications to be sent by one party to the other hereunder or required by Applicable
Law shall be in writing and shall be deemed to have been validly given or served by delivery of same in person to the addressee,
by depositing same with a nationally recognized overnight delivery service such as Federal Express for next business day delivery
("Overnight Delivery") or by sending by facsimile transmission, addressed as follows:

 

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	If to Owner:	c/o Bluerock Real Estate, L.L.C.
	 	712 Fifth Avenue, 9th Floor 
	 	New York, New York 10019 
	 	Attention: Jordan B. Ruddy 
	 	Facsimile No. (646) 278-4220
	 	 
	with copies to:	c/o Bluerock Real Estate, L.L.C.
	 	712 Fifth Avenue, 9th Floor 
	 	New York, New York 10019 
	 	Attention: Michael Konig, Esq. 
	 	Facsimile No. (646) 278-4220
	 	 
	And:	c/o Carroll Organization, LLC 
	 	3340 Peachtree Road, Suite 1620
	 	Atlanta, Georgia 30326 
	 	Attention: M. Patrick Carroll 
	 	Facsimile No. (404) 523-9372
	 	 
	If to Manager:	Carroll Management Group, LLC.
	 	c/o Carroll Organization, LLC 
	 	3340 Peachtree Rd, NE Suite 2250
	 	Atlanta, GA 30326 
	 	Attn: Linda Masterson
	 	Facsimile No. 404-806-4266

 

All
notices shall be effective upon such personal delivery, upon being deposited in Overnight Delivery or upon facsimile transmission
as required above. However, with respect to notices so deposited in Overnight Delivery, the time period in which a response to
any such notice, demand or request must be given shall commence to run from the next business day following any such deposit in
Overnight Delivery. Notices delivered via facsimile will be effective upon sender's receipt of confirmation of transmission. A
party may change its address for notice purposes by giving to the other party hereto at least fifteen (15) days' prior written
notice in accordance with the provisions hereof.

 

18.         Miscellaneous.

 

(a)          Captions.
The captions of this Agreement are inserted only for the purposes of convenient reference and do not define, limit or prescribe
the scope or intent of this Agreement or any part hereof.

 

(b)          Amendments.
This Agreement cannot be amended or modified except by another agreement in writing, signed by both Owner and Manager.

 

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(c)          Entire
Agreement. This Agreement embodies the entire understanding of the parties, and there are no further agreements or understandings,
written or oral, in effect between the parties relating to the subject matter hereof.

 

(d)          Time
is of Essence. Time is the essence hereof.

 

(e)          Construction
of Document. This Agreement has been negotiated at arms' length and has been reviewed by counsel for the parties. No provision
of this Agreement shall be construed against any party based upon the identity of the drafter.

 

(f)          Severability.
If any provision of this Agreement or the application thereof is held to be invalid or unenforceable,
such defect shall not affect other provisions or applications of this Agreement that can be given effect without the invalid or
unenforceable provisions or applications, and to this end, the provisions and applications of this Agreement shall be severable.

 

(g)          Waiver
of Jury Trial. To the fullest extent permitted by Applicable Law, each party to this Agreement severally, knowingly, irrevocably
and unconditionally waives any and all rights to trial by jury in any action, suit or counterclaim brought by any party to this
Agreement arising in connection with, out of or otherwise relating to this Agreement.

 

(h)          No
Continuing Waiver. No waiver by a party hereto of any breach of this Agreement shall be effective unless in a writing executed
by such party. No waiver shall operate or be construed to be a waiver of any subsequent breach.

 

(i)          Terrorism
and Money Laundering: Owner and Manager mutually represent and warrant to each other as follows:

 

(i)          They
are not now nor will they be at any time following the execution of this Agreement a Person with whom a U.S. Person is prohibited
from transacting business of the type contemplated by this Agreement, whether such prohibition arises under U.S. law, regulation,
executive orders and lists published by the Office of Foreign Asset Control ("OFAC")
(including those executive orders and lists published by OFAC with respect to Specially
Designated Nationals and Blocked Persons) or otherwise (such persons being referred to in this Agreement as "Prohibited Persons");
and

 

(ii)         They
have made reasonable inquiry and taken such other steps, consistent with best industry practices (including conducting background
searches and checking published lists of Prohibited Persons) and in any event as required by Applicable Law, to ensure that no
Person who is an employee of their respective organization or who owns an interest in their respective organization is now, or
will be at any time following the execution of this Agreement, a Prohibited Person.

 

(j)        
Governing Law. It
is the express intention of Manager and Owner that the laws of the State of Florida shall govern the validity, interpretation,
construction and performance of this Agreement, excluding any conflict-of-law rules which would direct the application of the
law of another jurisdiction. Each of the parties hereto irrevocably submits
to the jurisdiction of the New York State courts and the Federal courts sitting in the State of New York and agrees that all matters
involving this Agreement shall be heard and determined in such courts. Each of the parties hereto waives irrevocably the defense
of inconvenient forum to the maintenance of such action or proceeding. Each of the parties hereto designates CT Corporation System,
1633 Broadway, New York, New York 10019, as its agent for service of process in the State of New York, which designation may only
be changed on not less than ten (10) days' prior notice to all of the other parties.

 

    	20

    	 

    

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

    	21

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement under seal as of the date first set forth above.

 

OWNER:

 

BR CARROLL ARIUM
GRANDE LAKES OWNER, LLC,

a Delaware limited
liability company

 

By: BR Carroll Grande
Lakes JV, LLC,

   a
Delaware limited liability company, its sole member

 

  By: BRG Grande Lakes,
LLC,

      a
Delaware limited liability company, its manager

 

 By: Bluerock Residential Holdings,
L.P.,

        a Delaware limited
partnership, its sole member

 

By: Bluerock Residential
Growth REIT, Inc.,

      a
Maryland corporation its general partner

 

	By:	/s/ R. Ramin Kamfar	 
	Name:	R. Ramin Kamfar	 
	Title:	Authorized Signatory	 

 

MANAGER:

 

CARROLL MANAGEMENT
GROUP, LLC, a Georgia

limited liability
company

 

	 	By:	/s/ Josh Champion	 
	 	Name:	Josh Champion	 
	 	Title:	President	 

 

Exhibits:

 

Exhibit
A - Property Description

Exhibit B - 2014 Annual Business Plan

 

    	22

    	 

    

 

Exhibit C - Reimbursable
Expenses

Exhibit D - Form of Lease

Exhibit E - Additional
Business Plan Information

Exhibit F- Statements and Reports

 

    	23

    	 

    

 

EXHIBIT
"A"

 

Project Legal Description

 

Lot 1, Grande Lakes
Apartments, according to the plat thereof as recorded in Plat Book 59, Pages 46 and 47, Public Records of Orange County, Florida.

 

TOGETHER
WITH :

 

Tracts
"A" and "B", Grande Lakes Apartments, according to the plat thereof, as recorded In Plat Book 59, Pages 46
and 47, Public Records of Orange County, Florida.

 

ALSO TOGETHER WITH:

 

Non-exclusive
easements for use of the common property and drainage set forth in Declaration of Covenants, Conditions, Restrictions, Easements
and Reservations for Grande Lakes Master Stormwater Management System, recorded on August 7,
2003, in Official Records Book 7038, Page 2091, Public Records of Orange County, Florida.

 

    	A-1

    	 

    

 

EXHIBIT "B"

 

Calendar Year 2014

Annual Business Plan

[See Attached]

 

    	B-1

    	 

    

 

 

 

    	B-2

    	 

    

 

EXHIBIT
"C"

 

Approved Reimbursable Expenses

 

		1.	license and permit fees, homeowner association fees and assessments, and all other charges of any
kind or nature by any governmental or public authority

 

		2.	Management Fees

 

		3.	advertising and marketing expenses, and leasing fees and commissions

 

		4.	legal, accounting, risk management, engineering, and other professional and consulting fees and
disbursements

 

		5.	accounts payable to contractors providing labor, materials, services, and equipment to the Project

 

		6.	premiums for insurance paid with respect to the Project or the operations thereof and costs and
expenses associated with the administration thereof

 

		7.	resident improvements and replacements and segregated reserves therefore

 

		8.	maintenance and repair of the Project and all property and equipment used in connection with the
operation thereof

 

		9.	refunds of security or other deposits to residents and contracting parties

 

		10.	funds reserved for contingent or contested liabilities, real estate taxes, insurance premiums,
or other amounts not payable on a monthly basis

 

		11.	service contracts and public utility charges and assessments

 

		12.	personnel administration charges and pre-employment screening

 

		13.	payroll costs including, without limitation, those set forth in paragraph 5(h) of this Agreement

 

		14.	costs of credit reports, bank charges and like matters

 

		15.	incidental expenses incurred with respect to the performance of Manager's obligations under this
Agreement, including, without limitation: courier services, postage, photocopies, signage, check printing, marketing expenses,
bank charges, telephone and answering services (which may be equitably allocated on a prorata basis (based on the gross revenues
of all properties against which such charges are allocated) among the other properties managed by Manager).

 

    	C-1

    	 

    

 

EXHIBIT "D"

 

Approved form of Lease

[See
attached]

 

    	D-1

    	 

    

 

EXHIBIT E

 

Annual Business Plan Information

 

		1.	a narrative description of any acquisitions or sales that are planned and any other activities
proposed to be undertaken;

 

		2.	a projected annual income statement (accrual basis) on a quarter-by-quarter basis;

 

		3.	a projected balance sheet as of the end of the next year;

 

		4.	a schedule of projected operating cash flow (including itemized operation revenues, project costs
and project expenses) for such year on a quarter-by-quarter basis, including a schedule of projected operating deficits, if any;

 

		5.	a marketing plan indicating the portions of the Project that Manager recommends be made available
for lease and the proposed terms and conditions relating thereto;

 

		6.	a detailed budget reflecting on a line by line basis all projected operating expenses and any proposed
construction and capital expenditures for the Project, including projected dates for commencement and completion of the foregoing;

 

		7.	a description of the proposed investment of any funds of the Owner which are (or are expected to
become) available for investment;

 

		8.	a description, including the identity of the recipient (if known) and the amount and purpose, of
all fees and other payments proposed, expected or projected to be paid for professional services and, if a fee or payment exceeds
$25,000, for other services rendered to or on behalf of the Owner by third parties;

 

		9.	a projection of the amount of any anticipated additional Capital Contributions (as defined in the
Operating Agreement) which may be called for pursuant to Section 5.2(a) of the Operating Agreement and the purposes for
which such additional Capital Contributions may be used; and

 

		10.	such other information reasonably requested from time to time by Owner.

 

    	E-1

    	 

    

 

EXHIBIT F

 

Statements
and Reports

 

		(a)	Within
                                         thirteen (13) days following the end of each month, a statement of Monthly Gross Receipts
                                         for each month;

 

		(b)	Within
                                         thirteen (13) days following the end of each month, a monthly GAAP balance sheet and
                                         GAAP income statement, with a cumulative calendar year GAAP income statement to date,
                                         and a statement of change in the Capital Account for each Member of Owner ("Member")
                                         the preceding month and year to date;

 

		(c)	Within
                                         thirteen (13) days following the end of each month, the monthly and year to date activity
                                         which shall be furnished (without notice or demand) as follows:

 

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

		2.	Budget
                                         Comparison[*J, including month-to-date and year-to-date variances- Detailed Income Statement,
                                         including prior 12 months

		3.	Profit
                                         and loss statement compared to budget with narrative for any large fluctuations compared
                                         to budget

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

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

- Detailed support for each                                          account
                                                                                                                                                                                          reconciliation including the following:

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

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

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

	 	6.	Security
Deposit Activity 
		7.	Mortgage Statement

		8.	Monthly
Management Fee Calculation

		9.	Monthly Distribution Calculation

		10.	General Ledger, with description
                                         and balance detail

		11.	Monthly
Check Register together with a detailed bank reconciliation

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

	 	13.	Rent Roll
		14.	Variance Report, including the
                                         following:

			a.       Cap
                                         Ex Summary and Commentary

			b.        Monthly
                                         Income/Expense Variance with notes

c.
       Yearly Income/Expense Variance with notes

d.        Occupancy
Commentary

 

    	F-1

    	 

    

 

		e.	Market/Competition Commentary

		f.	Rent Movement/Concessions Commentary

		g.	Crime Commentary

		h.	Staffing Commentary

		i.	Operating Summary, with leasing and traffic reporting
-Other reasonable reporting, as requested (e.g. Renovation/Rehab report)

 

All
reports shall be prepared on an Accrual Basis in accordance with generally accepted accounting principles, and shall be as of each
calendar month end. Manager shall furnish to Owner such other reports as may be reasonably requested by Members in ·
order for such Members to be able to comply with any reporting requirements that are applicable
to any such Member (or any Affiliate of any such Member) under any applicable organizational or offering documents affecting such
Member or its Affiliates; and

 

Within
thirteen (13) days of the end of each quarter of each year, Manager shall furnish to Owner such information as requested by Owner
or its Members or affiliates as is necessary for any REIT Member of Owner (whether a direct or indirect owner) to determine its
qualification as a real estate investment trust (a "REIT") and its compliance with any requirements for qualifying as
a REIT (the "REIT Requirements") as shall be requested by Owner or its Members. Further, Manager shall cooperate in a
reasonable manner at the request of any Member to work in good faith with any designated accountants or auditors of such Member
or its Affiliates so that such Member or its Affiliate is able to comply with its public reporting, attestation, certification
and other requirements under the Securities Exchange Act of 1934, as amended, applicable to such entity, and to work in good faith
with the designated accountants or auditors of the Member or any of its Affiliates in connection therewith, including for purposes
of testing internal controls and procedures of such Member or its Affiliates. The requesting Member shall bear the cost of any
information or reports provided to such Member pursuant to this Exhibit.

 

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

 

    	F-2

    	 

    

 

Initial Annual Business PlanExhibit 10.220

 

LIMITED LIABILITY COMPANY
AGREEMENT

OF

BR CARROLL ARIUM GRANDE LAKES
OWNER, LLC

 

THIS LIMITED
LIABILITY COMPANY AGREEMENT of BR CARROLL ARIUM GRANDE LAKES OWNER, LLC, a Delaware limited liability company (as amended from
time to time, the "Agreement") is entered into among BR Carroll Grande Lakes JV, LLC, a Delaware limited liability
company, the sole member of the Company (the "Member"), and Bluerock Asset Management LLC, a Delaware limited
liability company ("BAM"), as a Special Member (the "Special Member").

 

RECITALS

 

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

 

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

 

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

 

AGREEMENT

 

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

 

ARTICLE I

PURPOSE AND
POWERS OF COMP ANY

 

1.01           Purpose.
The Company's business and purpose shall consist solely of the acquisition, ownership, operation, management, financing and disposition
of the multi-family real estate project consisting of 306 apartment units located at 3701 Grande Wood Boulevard, Orlando, Florida
32837 and to be hereafter commonly known as ARIUM Grande Lakes Apartments (the "Property") and such activities as are
necessary, incidental or appropriate in connection therewith.

 

1.02           Powers.
The Company shall have all powers of a limited liability company formed under the Act and not prohibited by the Act or this Agreement;
provided, however, that during the term of that certain loan from the Lender (defined below) in the approximate amount of $29,444,000
(the "Loan"), the Company will comply with any applicable single purpose requirements of the Lender set forth in the
Loan Documents.

 

    	 

    	 

    

  

1.03           Title
to Company Property. All property owned by the Company shall be owned by the Company as an entity and, insofar as permitted
by applicable law, no Member shall have any ownership interest in any Company property in its individual name or right, and each
Member's Membership Interest shall be personal property for all purposes.

 

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

 

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

 

1.06           Formation
and Authorized Person. The Certificate of Formation has been filed with the Secretary of State of the State of Delaware in
accordance with and pursuant to the Act. Chris Vohs is hereby designated as an "authorized person" within the meaning
of the Act, and has executed, delivered and filed the Certificate of Formation of the Company with the Secretary of State of the
State of Delaware, and is hereby authorized to execute, deliver and file any other certificates (and any amendments and/or restatements
thereof) necessary or desirable for the Company to qualify to do business in any other jurisdiction in which the Company may wish
to conduct business (the "Qualification Papers"). The execution, delivery and filing of the Qualification Papers
by Chris Vohs as an "authorized person" within the meaning of the Act is hereby approved and ratified in all respects.
Upon the filing of all of Qualification Papers, his powers as an "authorized person" ceased, and the Member thereupon
became the designated "authorized person" and shall continue as the designated "authorized person" within the
meaning of the Act.

 

ARTICLE II

MEMBERS

 

2.01           Initial
Member.

 

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

 

	Name	 	Membership Interest	 
	 	 	 	 
	BR Carroll Grande Lakes JV, LLC	 	100%	
	c/o Bluerock Real Estate, L.L.C.	 	 	    	 
	712 Fifth Avenue, 9th Floor	 	 	 	 
	New York, New York  10019	 	 	 	 

 

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

 

    	2

    	 

    

  

2.02           Special
Member. Upon the occurrence of any event that causes the Member to cease to be a member of the Company (other than upon continuation
of the Company without dissolution upon (a) an assignment by the Member of all of its Membership Interest and the admission
of the transferee pursuant to Section 8.01 below, or (b) the resignation of the Member and the admission of an additional member
of the Company pursuant to Section 8.01 below), BAM as the Special Member shall, without any action of such Person and simultaneously
with the Member ceasing to be a member of the Company, automatically be admitted to the Company as a member and shall continue
the Company without dissolution. No Special Member may resign from the Company or transfer its rights as Special Member unless
a successor Special Member has been approved in writing by Lender and has been admitted to the Company as Special Member by executing
a counterpart to this Agreement; provided, however, a Special Member shall automatically cease to be a member of the Company upon
the admission to the Company of a substitute member. A Special Member shall be a member of the Company that has no interest in
the profits, losses and capital of the Company and has no right to receive any distributions of Company assets. Pursuant to Section
18-301 of the Act, a Special Member shall not be required to make any capital contributions to the Company and shall not receive
a Membership Interest in the Company. A Special Member, in its capacity as Special Member, may not bind the Company. Except as
required by any mandatory provision of the Act, a Special Member, in its capacity as Special Member, shall have no right to vote
on, approve or otherwise consent to any action by, or matter relating to, the Company, including, without limitation, the merger,
consolidation or conversion of the Company. In order to implement the admission to the Company of each Special Member, the Person
acting as a Special Member shall execute a counterpart to this Agreement. Prior to admission to the Company as Special Member,
no Person executing this Agreement as a Special Member shall be a member of the Company.

 

ARTICLE III

MANAGEMENT BY MEMBER

 

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

 

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

 

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

 

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

 

    	3

    	 

    

  

3.05           Authorization.
The Company is authorized to acquire the Property and to borrow the Loan from Walker &
Dunlop, LLC for and on behalf of Fannie Mae, the assignee of the Loan (together with its successors and assigns, the "Lender"),
and from time to time refinance the Loan. In furtherance of the conduct of the purposes described herein, the Company shall possess
and may exercise all of the powers and privileges granted by the Act, and the Company is hereby authorized to do any act, enter
into any agreement, contract or other instrument, and otherwise to engage in any activity and to do any action not prohibited under
the Act or other applicable law which is necessary, useful, desirable or convenient to the conduct, promotion and attainment of
the business and purposes of the Company. In addition, the Company, or the Member on behalf of the Company, may enter into and
perform the Loan Documents and all documents, agreements, certificates, or financing statements contemplated thereby or related
thereto, all without any further act, vote or approval of any other Person notwithstanding any other provision of this Agreement,
the Act or applicable law, rule or regulation. The foregoing authorization shall not be deemed a restriction on the powers of the
Member to enter into other agreements on behalf of the Company in accordance with this Agreement.

 

ARTICLE IV

 

INTENTIONALLY OMITTED

 

ARTICLE V

SUBORDINATION OF INDEMNIFICATION
PROVISIONS

 

5.01 Notwithstanding
any provision hereof to the contrary, any indemnification claim against the Company arising under the Certificate of Formation,
this Agreement or the laws of the state of organization of the Company shall be fully subordinate to any obligations of the Company
arising under the Mortgage or any other Loan Document, and shall only constitute a claim against the Company to the extent of,
and shall be paid by the Company in monthly installments only from, the excess of net operating income of the Company for any month
over all amounts then due under the Mortgage and the other Loan Documents.

 

ARTICLE VI

EFFECT OF BANKRUPTCY. DEATH
OR INCOMPETENCY OF A MEMBER

 

6.01
The bankruptcy, death, dissolution, liquidation, termination or adjudication of incompetency of a Member shall not cause the termination
or dissolution of the Company and the business of the Company shall continue. Upon any such occurrence, the trustee, receiver,
executor, administrator, committee, guardian or conservator of such Member shall have all the rights of such Member for the purpose
of settling or managing its estate or property, subject to satisfying conditions precedent to the admission of such assignee as
a substitute member. The transfer by such trustee, receiver, executor, administrator, committee, guardian or conservator of any
Company Interest shall be subject to all of the restrictions hereunder to which such transfer would have been subject if such transfer
had been made by such bankrupt, deceased, dissolved, liquidated, terminated or incompetent Member. The foregoing shall apply to
the extent permitted by applicable law. Notwithstanding any other provision of the Certificate of Formation or this Agreement,
no Member or Special Member of the Company shall have any right under Section 18-801(b) of the Act to agree in writing to dissolve
the Company upon the bankruptcy of a Member or Special Member or the occurrence of any event that causes a Member or Special Member
of the Company to cease to be a member of the Company. The existence of the Company as a separate legal entity shall continue until
the cancellation of its Certificate of Formation as provided in the Act.

 

    	4

    	 

    

  

ARTICLE VII

CONTRIBUTIONS TO THE COMPANY
AND DISTRIBUTIONS

 

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

 

7.02           [Intentionally
Left Blank]

 

7.03           Distributions
and Allocations. All distributions of cash or other property (except upon the Company's dissolution, which shall be governed
by the applicable provisions of the Act and Article IX hereof) and all allocations of income, profits, and loss shall be made 100%
to the Member in accordance with its Membership Interest. All amounts withheld pursuant to the Code or any provisions of state
or local tax law with respect to any payment or distribution to the Member from the Company shall be treated as amounts distributed
to the Member pursuant to this Section 7.03. Notwithstanding any provision to the contrary contained in this Agreement, the Company
shall not be required to make a distribution to the Member on account of its interest in the Company if such distribution would
violate Section 18-607 of the Act or any other applicable law.

 

ARTICLE VIII

ASSIGNMENTS; RESIGNATIONS

 

8.01           Assignment,
Resignation and Admission Generally.

 

(a)          Assignments.
Subject to the terms of the Loan Documents and this Section 8.0l (a), the Member may assign in whole or in part its Membership
Interest in the Company. If the Member transfers all of its Membership
Interest pursuant to this Section 8.01, the transferee shall be admitted to the Company as a member of the Company upon its execution
of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement, which instrument may be a
counterpart signature page to this Agreement. Such admission shall be deemed effective immediately prior to the transfer and, immediately
following such admission, the transferor Member shall cease to be a member of the Company. Notwithstanding anything in this Agreement
to the contrary, any successor to the Member by merger or consolidation in compliance with the Basic Documents shall, without further
act, be the Member hereunder, and such merger or consolidation shall not constitute an assignment for purposes of this Agreement
and the Company shall continue without dissolution.

 

(b)          Resignation.
So long as any obligation is outstanding under the Loan, the Member may not resign, except as permitted under the Basic Documents.
If the Member is permitted to resign pursuant to this Section 8.0l(b),
an additional member of the Company shall be admitted to the Company upon its execution of an instrument signifying its agreement
to be bound by the terms and conditions of this Agreement, which instrument may be a counterpart signature page to this Agreement.
Such admission shall be deemed effective immediately prior to the resignation and, immediately
following such admission, the resigning Member shall cease to be a member of the Company.

 

    	5

    	 

    

  

(c)          Admission
of Additional Members. One or more additional members of the Company may be admitted to the Company with the written consent
of the Member; provided, however, that, notwithstanding the foregoing, except as otherwise provided in the Loan Documents, so long
as any obligation remains outstanding under the Loan, no additional member may be admitted to the Company pursuant to this Section
8.0l(c) unless approved by the Lender.

 

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

 

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

 

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

 

ARTICLE IX

DISSOLUTION AND TERMINATION

 

9.01           Dissolution.
Subject to the other provisions of this Agreement, the Company shall be dissolved upon the first to occur of the following: (a)
the termination of the legal existence of the last remaining member of the Company or the occurrence of any other event which terminates
the continued membership of the last remaining member of the Company in the Company unless the Company is continued without dissolution
in a manner permitted by this Agreement or the Act or (b) the entry of a decree of judicial dissolution under Section 18-802 of
the Act. Upon the occurrence of any event that causes the last remaining member of the Company to cease to be a member of the Company
or that causes the Member to cease to be a member of the Company (other than upon continuation of the Company without dissolution
upon (i) an assignment by the Member of all of its Membership Interest and the admission of the transferee pursuant to Section
8.01, or (ii) the resignation of the Member and the admission of an additional member of the Company pursuant to Section 8.01),
to the fullest extent permitted by law, the personal representative of such member is hereby authorized to, and shall, within 90
days after the occurrence of the event that terminated the continued membership of such member in the Company, agree in writing
(x) to continue the Company and (y) to admit the personal representative or its nominee or designee, as the case may be, as a substitute
member of the Company, effective as of the occurrence of the event that terminated the continued membership of the last remaining
member of the Company.

 

9.02           Liquidation.
Upon the dissolution of the Company, it shall wind up its affairs and distribute its assets in accordance with Section 9.04 below
and the Act by either or a combination of the following methods as the Member (or the Person
carrying out the liquidation) shall determine:

 

    	6

    	 

    

  

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

 

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

 

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

 

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

 

(a)          first,
to the satisfaction of the Loan; then

 

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

 

(c)          third,
to the Member.

 

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

 

ARTICLE X

MISCELLANEOUS PROVISIONS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE XI

DEFINITIONS

 

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

 

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

 

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

 

    	9

    	 

    

  

(c)          "Basic
Documents" shall mean collectively this Agreement, the Loan Documents, the Property Management Agreement and all documents
and certificates contemplated thereby or delivered in connection therewith.

 

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

 

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

 

(f)          "Closing
Date" shall mean the date on which the Company acquires the Property

 

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

 

(h)          "Company"
shall mean BR CARROLL ARIUM GRANDE LAKES OWNER, LLC.

 

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

 

(j)          "Loan"
is defined in Section 1.02.

 

(k)          "Loan
Documents" shall mean collectively the Note, the Mortgage, any guaranty, assignment, indemnity agreement, escrow agreement,
or the functional equivalent of any of the aforementioned, and any and all other documents evidencing or securing the Loan and
any and all documents related thereto.

 

(1)         "Member"
shall mean the Person identified in Article II hereof and includes any Person admitted as an additional member or a substitute
member of the Company pursuant to the provisions of this Agreement, each in its capacity as a member of the Company; provided,
however, the term "Member" shall not include the Special Member.

 

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

 

(n)          "Mortgage"
shall mean that certain security instrument executed by the Company in favor of the Lender pursuant to which the Company grants
a mortgage lien to Lender against the Property.

 

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

 

    	10

    	 

    

  

(p)          "Property"
is defined in Section 1.01.

 

(q)          "Property
Manager" shall mean Carroll Management Group, LLC, a Georgia limited liability company, and its successors and assigns.

 

(r)          "Property
Management Agreement" shall mean that certain management agreement between the Company and the Property Manager with respect
to the management of the Property.

 

(s)          "Special
Member" shall mean, upon such Person's admission to the Company as a member of the Company, each of the Persons bound by this
Agreement as Special Member in such Person's capacity as a member of the Company. A
Special Member shall only have the rights and duties expressly set forth in this Agreement.

 

[REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK]

 

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The undersigned hereby agree,
acknowledge, and certify that the foregoing constitutes the sole and entire Limited Liability Company Agreement of the Company.

 

	MEMBER:	BR Carroll Grande Lakes JV, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	BRG Grande Lakes, LLC, a Delaware
    limited

    liability company, its manager
	 	 	 	 
	 	 	By: 	Bluerock
    Residential Holdings, L.P., a

    Delaware limited partnership, its sole member
	 	 	 	 	 
	 	 	 	By:	Bluerock Residential Growth REIT,
    Inc., a

    Maryland corporation, its general
    partner
	 	 	 	 	 	 
	 	 	 	 	By:	/s/ R. Ramin Kamfar
	 	 	 	 	Name:	R. Ramin Kamfar
	 	 	 	 	Title:	Authorized Signatory

  

	SPECIAL  MEMBER:	Bluerock Asset Management LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ R. Ramin Kamfar
	 	Name: 	R. Ramin Kamfar
	 	Title: 	Authorized Signatory

 

    	12

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