Document:

Exhibit 10.195

 

 

 

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

BR
BERRY HILL MANAGING MEMBER II, LLC 

 

A DELAWARE LIMITED
LIABILITY COMPANY

 

DATED AS OF DECEMBER
9, 2014

 

 

 

    	 

    	 

    

 

TABLE OF
CONTENTS

 

	 	Page
	 	 
	Section 1.        Definitions	1
	 	 
	Section 2.        Organization of the Company	8
	 	 	 
	2.1	Name	8
	 	 	 
	2.2	Place of Registered Office; Registered Agent	9
	 	 	 
	2.3	Principal Office	9
	 	 	 
	2.4	Filings	9
	 	 	 
	2.5	Term	9
	 	 	 
	2.6	Expenses of the Company	9
	 	 	 
	Section 3.        Purpose	9
	Section 4         Reserved	9
	Section 5.        Capital Contributions, Loans, Percentage Interests and Capital Accounts	10
	 	 	 
	5.1	Capital Contributions	10
	 	 	 
	5.2	Additional Capital Contributions	10
	 	 	 
	5.3	Percentage Ownership Interest	12
	 	 	 
	5.4	Return of Capital Contribution	12
	 	 	 
	5.5	No Interest on Capital	12
	 	 	 
	5.6	Capital Accounts	12
	 	 	 
	5.7	New Members	13
	 	 	 
	Section 6.        Distributions	13
	 	 
	6.1 	Distribution of Distributable Funds	13

 

    	 

    	 

    

 

	Section 7.         Allocations	14
	 	 
	7.1	Allocation of Net Income and Net Losses Other than in Liquidation	14
	 	 	 
	7.2	Allocation of Net Income and Net Losses in Liquidation	14
	 	 	 
	7.3	U.S. Tax Allocations	14
	 	 	 
	Section 8.         Books, Records, Tax Matters and Bank Accounts	15
	 	 
	8.1	Books and Records	15
	 	 	 
	8.2	Reports and Financial Statements	15
	 	 	 
	8.3	Tax Matters Member	16
	 	 	 
	8.4	Bank Accounts	16
	 	 	 
	8.5	Tax Returns	16
	 	 	 
	8.6	Expenses	16
	 	 	 
	Section 9.         Management	17
	 	 
	9.1	Management.	17
	 	 	 
	9.2	Affiliate Transactions	17
	 	 	 
	9.3	Other Activities	17
	 	 	 
	9.4	Operation in Accordance with REOC/REIT Requirements	18
	 	 	 
	9.10	FCPA	20
	 	 	 
	Section 10.        Confidentiality	21
	Section 11.        Representations and Warranties	22
	 	 
	11.1	In General	22

 

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	11.2	Representations and Warranties	22
	 	 	 
	Section 12.        Sale, Assignment, Transfer or other Disposition	25
	 	 
	12.1	Prohibited Transfers	25
	 	 	 
	12.2	Affiliate Transfers	25
	 	 	 
	12.3	Admission of Transferee; Partial Transfers	26
	 	 	 
	12.4	Withdrawals	27
	 	 	 
	Section 13.        Dissolution	27
	 	 
	13.1	Limitations	27
	 	 	 
	13.2	Exclusive Events Requiring Dissolution	27
	 	 	 
	13.3	Liquidation	28
	 	 	 
	13.4	Continuation of the Company	28
	 	 	 
	Section 14.        Indemnification	29
	 	 
	14.1	Exculpation of Members	29
	 	 	 
	14.2	Indemnification by Company	29
	 	 	 
	14.3	General Indemnification by the Members	29
	 	 	 
	Section 15.        Sale Rights	30
	 	 
	15.1	Push /Pull Rights	30
	 	 	 
	15.2	Forced Sale Rights	32
	 	 	 
	Section 16        Mediation and Arbitration of Disputes.	33
	 	 
	16.1	Events Giving Rise to Mediation or Arbitration	33

 

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	16.2	Selection of Arbitrators	33
	 	 	 
	16.3	Arbitration Hearing	33
	 	 	 
	16.4	Decision of the Arbitrators/Binding Effect	34
	 	 	 
	Section 17        Miscellaneous.	34
	 	 
	17.1	Notices	34
	 	 	 
	17.2	Governing Law	35
	 	 	 
	17.3	Successors	35
	 	 	 
	17.4	Pronouns	35
	 	 	 
	17.5	Table of Contents and Captions Not Part of Agreement	35
	 	 	 
	17.6	Severability	35
	 	 	 
	17.7	Counterparts	35
	 	 	 
	17.8	Entire Agreement and Amendment	35
	 	 	 
	17.9	Further Assurances	35
	 	 	 
	17.10	No Third Party Rights	36
	 	 	 
	17.11	Incorporation by Reference 	36
	 	 	 
	17.12	Limitation on Liability	36
	 	 	 
	17.13	Remedies Cumulative	36
	 	 	 
	17.14	No Waiver	36

 

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	17.15	Limitation On Use of Names	36
	 	 	 
	17.16	Publicly Traded Partnership Provision	37
	 	 	 
	17.17	Uniform Commercial Code	37
	 	 	 
	17.18	Reserved	37
	 	 	 
	17.19	No Construction Against Drafter	37

 

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BR
BERRY HILL MANAGING MEMBER II, LLC

LIMITED
LIABILITY COMPANY AGREEMENT

 

This
Limited Liability Company Agreement (this “Agreement”) is adopted, executed, and agreed to effective on December
9, 2014, by and among Bluerock Special Opportunity + Income Fund III, LLC, a Delaware limited liability company (“SOIF
III”), and BEMT Berry Hill, LLC, a Delaware limited liability company (“BEMT”), as Members (together,
the “Members”), and BEMT, as Manager (the “Manager”).

 

WITNESSETH

 

WHEREAS,
BR Berry Hill Managing Member II, LLC, a Delaware limited liability company (the “Company”), was formed on October
23, 2014 pursuant to the Act;

 

WHEREAS,
pursuant to the terms of that certain Contribution and Distribution Agreement dated of even date herewith by and among the Company,
BR Berry Hill Managing Member I, LLC (“BR MM I”), SOIF III and BEMT (the “Contribution
Agreement”), SOIF III and BEMT, the sole members of BR MM I, have caused BR MM I
to assign a membership interest in Stonehenge Bluerock Berry Hill JV as contributions to the capital of the Company on behalf of
SOIF III and BEMT, and SOIF III and BEMT have received their respective Interests in the Company in exchange for such contributions;

 

WHEREAS,
BEMT and SOIF III now desire to provide for the operation and governance of the Company in accordance with the terms of this Agreement.

 

NOW,
THEREFORE, in consideration of the agreements and covenants set forth herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto 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) arid 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.

 

    	 

    	 

    

 

“Affiliate”
shall mean as to any Person any other Person that directly or indirectly controls, is controlled by, or is under common control
with such first Person. For the purposes of this Agreement, a Person shall be deemed to control another Person if such Person possesses,
directly or indirectly, the power to direct or cause the direction of the management, policies and/or decision making of such other
Person, whether through the ownership of voting securities, by contract or otherwise. In addition, “Affiliate” shall
include as to any Person any other Person related to such Person within the meaning of Code Sections 267(b) or 707(b)(l ).

 

“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, as amended from time to time.

 

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

 

“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. 

 

“BEMT”
shall have the meaning set forth in the recitals.

 

“BEMT
Transferee” shall have the meaning set forth in Section l 2.2(b)(i). 

 

“Capital
Account” shall
have the meaning provided in Section 5.6.

 

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“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.

 

“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, (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 (and other loans by Members to the Company), (iii) all
sums expended by the Company for capital expenditures, (iv) all prepaid expenses of the Company, and (v) all sums expended by
the Company which are otherwise capitalized.

 

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

 

“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.

 

“Company”
shall mean BR Berry Hill Managing Member II, LLC a Delaware limited liability company organized under the Act.

 

“Company
Interest” shall
mean all of the Company’s interest in Stonehenge Bluerock Berry Hill JV, including its limited liability company interest
therein.

 

“Company
Minimum Gain” shall
have the meaning given to the term “partnership minimum gain” in Regulations Sections 1.704-2(b)(2) and l .704-2(d).

 

“Confidential
Information” shall have the meaning provided in Section 10(a).

 

“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).

 

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

 

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“Developer”
shall mean Stonehenge Real Estate Group, LLC, a Georgia limited liability company.

 

“Development
Agreement” shall
mean that certain development agreement, as amended, between 23Hundred, LLC, a Delaware limited liability company, BGF Member and
Stonehenge SPE, as owners, and Developer, as developer, pursuant to which Developer provides certain development services for the
Properties.

 

“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 the sum of (x) 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, the amounts of which shall be reasonably determined from
time to time by the Manager.

 

“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 quarters percent (1.25%) of the purchase price) that would normally be incurred by 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 14.3(a). 

 

“Indemnifying
Party” shall
have the meaning provided in Section 14.3(a). 

 

“Inducement
Agreements” shall
have the meaning provided in Section 14.3(a). 

 

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

 

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“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.

 

“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), including in the Company’s capacity as a member
of the Stonehenge Bluerock Berry Hill JV with respect to making or refraining to make a decision on the following matters to the
extent the vote or approval of the Company is required:

 

		(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,
including the Company Interest, 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 Sect
ion 12
with respect to Transfers.by
SOIF III or a SOIF III Transferee to a SOIF III Transferee and with respect to Transfers by BEMT or a BEMT Transferee to a BEMT
Transferee 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
as provided in Section 13, any
liquidation, dissolution or termination of the Company;

 

		(iv)	the incurrence by the Company, in an amount in excess of US $25,000,
of any indebtedness for borrowed money or any capitalized lease obligation or the entry into of any agreement, commitment, assumption
or guarantee with respect to any of the foregoing;

 

		(v)	expenditures or distributions of cash or property by the Company,
in an amount in excess of US $25,000, which are not otherwise provided for in this Agreement or the establishment of any reserves;

 

		(vi)	entering into any material agreement, including without limitation
any management agreement or development agreement, contract, license or lease that could result in an obligation or liability of
the Company in excess of US $25,000;

 

		(vii)	doing any act which would make it impossible or unreasonably burdensome
to carry on the business of the Company;

 

		(viii)	any material change in the strategic direction of the Company or
any material expansion of the business of the Company, whether into new or existing lines of business or any change in the structure
of the Company;

 

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		(x)	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;

 

		(xi)	selling, conveying, refinancing or effecting any material asset of the Company, including the Company
Interest, or any portion thereof or the entering into of any agreement, commitment or assumption with respect to any of the foregoing;

 

		(xii)	confessing a judgment against the Company (or any Subsidiary), submitting a Company claim to arbitration
or engaging, terminating and/or replacing counsel to defend or prosecute on behalf of the Company any action or proceeding;

 

		(xiii)	on behalf of the Company, acquiring 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);

 

		(xiv)	taking any action by the Company 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;

 

		(xv)	the amount of, whether and when to make, contributions to the Company
(other than the contributions under Section 5.1(a)
made contemporaneously with the execution of this Agreement) and Distributions by the Company;
or

 

		(xvi)	amendment of the Company’s Certificate of Formation or this Agreement.

 

“Member”
and “Members” shall mean SOIF III, BEMT 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 17.12. 

 

“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.

 

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“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 provided in Section 17.17.

 

“Non-Initiating
Member” shall
have the meaning provided in Section l 5.2(a). 

 

“Nonrecourse
Deduction” shall have the meaning given such term in Regulations

Section l.704-2(b)(l ).

 

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

 

“Offer”
shall have the meaning provided in Section l 5.2(a). 

 

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

 

“Offeror” 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.

 

“Property”
shall have the meaning provided in the Stonehenge Bluerock Berry Hill Operating Agreement.

 

“Property Manager”
shall mean Matrix Residential.

 

“Property
Management Agreement” shall mean that certain Property Management Agreement, as amended, by and between Company Subsidiary,
BGF Member and Stonehenge SPE.

 

“Property
Manager Reports” shall
have the meaning set forth in Section 8.2(c). “Pursuer”
shall have the meaning provided in Section 10(c).

 

“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.

 

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

 

“Representatives”
shall mean the representatives of the Management Committee. “Response Period” shall
have the meaning provided in Section 15.2(b).

 

“Sale
Notice” shall have the meaning provided in Section l
5.2(a). 

 

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

 

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

 

“SOIF
III Transferee” shall have the meaning provided in Section l 2.2(b)(i).

 

“Stonehenge
Bluerock Berry Hill JV”
shall mean BR Stonehenge 23Hundred JV, LLC, a Delaware limited liability company.

 

“Stonehenge
Bluerock Berry Hill JV Operating Agreement”
shall mean the Limited Liability Company Agreement of BR Stonehenge 23Hundred JV, as amended
from time to time.

 

“Stonehenge
SPE” shall
mean SH 23Hundred TIC, LLC.

 

“Subsidiary”
shall mean any corporation, partnership, limited liability company or other entity of which fifty percent (50%) of which at least
a majority of the capital stock or other equity securities is owned by the Company or more is owned by the Company.

 

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

 

“TIC
Agreement” shall mean that certain Tenant in Common Agreement by and between Company Subsidiary, BGF Member and Stonehenge
SPE.

 

“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.

 

“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 Berry Hill Managing Member II, LLC”. The business and affairs of the Company
shall be conducted under such name or such other name as the Manager deems necessary or appropriate to comply with the requirements
of law in any jurisdiction in which the Company may elect to do business.

 

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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 Manager
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, or, in each case, at such other place or
places as may be determined by the Manager 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 in perpetuity, unless and until the Company is dissolved
as provided in Section 13.

 

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

 

Section 3.             Purpose.

 

The
Company is organized for the purpose of engaging in any lawful business, purpose or activity that may be undertaken by a limited
liability company organized under and governed by the Act. The Company shall possess and may exercise all of the powers and privileges
granted by the Act, by any other law or by this Agreement, together with any powers incidental thereto, including such powers and
privileges as are necessary or convenient to the conduct, promotion or attainment of the business, purposes or activities of the
Company.

 

Section 4.             Reserved.

 

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

 

5.1               Capital
Contributions. SOIF III and BEMT have each previously made or been attributed Capital Contributions
to the Company as reflected on the Company’s books.

 

5.2               Additional
Capital Contributions.

 

(a)               Additional
Capital Contributions may be called for from the Members by the Manager from time to time as and to the extent capital is necessary
to effect an investment. 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 for multiplied by their respective
Percentage Interest. Such additional Capital Contributions shall be payable by the Members to the Company upon the earlier of (i)
twenty (20) days after written request from the Company, or (ii) the date when the Capital Contribution is required, as set forth
in a written request from the Company.

 

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

 

(1)
               to advance to the Company on behalf of, and as a loan to the Defaulting Member, an amount equal to the Default Amount to be
evidenced by a promissory note in form reasonably satisfactory to the non-failing Member (each such loan, a “Default Loan”).
The Capital Account of the Defaulting Member shall be credited with the amount of such Default Amount attributable to a Capital
Contribution and the aggregate of such amounts shall constitute a debt owed by the Defaulting Member to the non-failing Member.
Any Default Loan shall bear interest at the rate of twenty (20%) percent per annum, but in no event in excess of the highest rate
permitted by applicable laws (the “Default Loan Rate”),
and shall be payable by the Defaulting Member on demand from the non-failing
Member and from any Distributions due to the Defaulting Member hereunder. Interest on a Default Loan to the extent unpaid, shall
accrue and compound on a quarterly basis. A Default Loan shall be prepayable, in whole or in part, at any time or from time to
time without penalty. Any such Default Loans shall be with full recourse to the Defaulting Member and shall be secured by the Defaulting
Member’s interest in the Company including, without limitation, such Defaulting Member’s right to Distributions. In
furtherance thereof, upon the making of such Default Loan, the Defaulting Member hereby pledges, assigns and grants a security
interest in its Interest to the non-failing Member and agrees to promptly execute such documents and statements reasonably requested
by the non-failing Member to further evidence and secure such security interest. Any advance by the non-failing Member on behalf
of a Defaulting Member pursuant to this Section 5.2(b)(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;

 

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(2)                subject
to any applicable thin capitalization limitations on indebtedness of the Company, to treat its 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 the Defaulting 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 Capital Account 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 Capital Account by one-half of the amount of the Default Amount; or

 

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

 

(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, (iv) there
has been a material adverse change in
(including, but not limited to, the financial condition of) any other Member (and/or its Affiliates)
which, in Member’s reasonable judgment, prevents such other Member (and/or its Affiliates from performing, or substantially
interferes with their ability to perform, their obligations hereunder or under any Collateral Agreement. If any of the foregoing
events shall have occurred and any Member elects not to make a Capital Contribution on account thereof, then any other Member which
has made its pro rata share of such Capital Contribution shall be entitled to a return of such Capital Contribution from the Company.

 

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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 so that the respective Percentage Interests of the
Members at any time shall be in proportion to their respective cumulative Total Investment made (or deemed to be made) pursuant
to Sections 5.1
and 5.2, as the same may be further adjusted pursuant to Section 5.2(b)(3). Percentage
Interests shall not be adjusted by distributions made (or deemed made) to a Member.

 

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

 

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

 

5.6               Capital
Accounts. A separate capital account (the “Capital Account”)
shall be maintained for each Member in accordance with Section l.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(e)(iii). 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 l.704-l(b)(2) and shall be interpreted and applied in a manner consistent
with such Regulations.

 

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5.7               New
Members. 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 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 Manager, a principal purpose of the use of the flow-through entity is to
permit the Company to satisfy the 100-member limitation.

 

Section 6.             Distributions.

 

6.1               Distribution
of Distributable Funds

 

(a)               The
Manager shall calculate and determine the amount of Distributable Funds for each applicable period. Except as provided in Sections
5.2(b),
6.l(b)
or 13.3 or otherwise
provided hereunder, Distributable Funds,
if any, shall
be distributed to the
Members, in proportion
to their Percentage Interests,
on the 15th
day of each month or from time to
time as determined by
the Manager.

 

(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.

 

6.2               Distributions
in Kind. In the discretion of the Manager, 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 Manager. 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.

 

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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)(iii).

 

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)               Code
Section 704(c). In accordance with Code Section 704(c) and the Treasury
regulations promulgated thereunder, income and loss with respect to any property contributed to the capital of the Company (including,
if the property so contributed constitutes a partnership interest, the applicable distributive share of each item of income, gain,
loss, expense and other items attributable to such partnership interest whether expressly so allocated or reflected in partnership
allocations) shall, solely for U.S. federal income tax purposes, be allocated among the Members so as to take account of any variation
between the adjusted basis of such property to the Company for U.S. federal income tax purposes and its Agreed Upon Value at the
time of contribution. Such allocation shall be made in accordance with such method set forth in Regulations Section 1.7043(b) as
the Manager in its reasonable discretion approves.

 

Any
elections or other decisions relating to such allocations shall be made by BEMT 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.

 

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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 Manager, and all such books and records (and the dealings and other affairs of the Company and
its Subsidiaries, including Stonehenge Bluerock Berry Hill JV) 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.

 

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:

 

(i)               An
unaudited balance sheet of the Company;

 

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

 

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

 

(b)           Within
fifteen (15) days of the end of each quarter of each Fiscal Year, the Manager shall cause to be furnished to BEMT or any REIT Member
such information as requested by BEMT or any REIT Member as is necessary for BEMT or any REIT Member to determine its qualification
as a REIT and its compliance with REIT Requirements as shall be requested by BEMT or any REIT Member.

 

(c)           The
Members acknowledge that the Developer is obligated to perform Project-related accounting and furnish Project-related accounting
statements under the terms of the Development Agreement and that the Property Manager is obligated to perform Property- related
accounting and furnish Property-related accounting statements under the terms of the Property Management Agreement (and any future
property manager for the Property shall be required to do the same) (the “Property Manager Reports”). The 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.

 

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(d)               The
Manager will use its commercially best efforts to obtain such financial statements (audited or unaudited), information and attestations
as may be required by any Member or any of its Affiliates in connection with public reporting, attestation, certification and other requirements under the Securities Exchange Act of 1934,
as amended, and the Sarbanes-Oxley Act of 2002, as amended, applicable to such entity, and work in good faith with the designated
accountants or auditors of any Member or any of its Affiliates in connection therewith, including for purposes of testing internal
controls and procedures of any Member or any of its Affiliates.

 

8.3               Tax
Matters Member. BEMT 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 the 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 the Subsidiaries under the Code or state tax law shall be timely determined and made by SOIF III. 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. SOIF III agrees to consult with BEMT 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 Subsidiary 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 SOIF III 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 the Subsidiaries, provided
that any such action or failure to act does not constitute gross negligence or willful
misconduct.

 

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 Manager and shall be withdrawn on the signature of such Person or Persons as the Manager may authorize.

 

8.5               Tax
Returns. The Manager shall cause to be prepared all income and other tax returns of the Company and the Subsidiaries required
by applicable law. No later than the due date or extended due date thereof, the 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 in connection with its
obligations under this Section 8 will be reimbursed
by the Company to the Manager.

 

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Section
9.             Management.

 

9.1               Management.

 

(a)               The
Company shall be managed by BEMT (the “Manager”). To the extent that BEMT or a BEMT Transferee Transfers all
or a portion of its Interest in accordance with Section 12 to a BEMT Transferee, such BEMT Transferee may be appointed as an additional
Manager under this Section 9.l (a) by BEMT or a BEMT Transferee then holding all or a portion of an Interest without any further
action or authorization by any Member. The Manager may not be removed by the Members other than for an act or omission related
to the Company constituting gross negligence or fraud.

 

(b)               The
Manager 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, except that any Major Decision or other matter submitted by the Manager to the Members shall
require the express and unanimous approval of the Members. Notwithstanding any provision herein to the contrary, only BEMT, and
not any other Member of the Company, shall have the power and authority to exercise the powers and privileges of the Company as
manager of the Stonehenge Bluerock Berry Hill JV.

 

(c)               The
Manager may appoint individuals to act on behalf of the Company with such titles and authority as determined from time to time
by the Manager. Each of such individuals shall hold office until his or her death, resignation or replacement by any Manager.

 

9.2              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 unanimously in writing by the Members.

 

9.3              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. 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 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.

 

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9.4           Operation
in Accordance with REOC/REIT Requirements.

 

(a)            The
Members acknowledge that one or more Affiliates of the Members (an “BR Affiliate”) intends to qualify as a
“real estate operating company” or “venture capital operating company” within the meaning of U.S.
Department of Labor Regulation 29 C.F.R. §2510.3-101 (a “REOC”), and agree that
the Company and its Subsidiaries shall be operated in a manner that will enable 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 would result in a BR Affiliate from failing to qualify as a REOC. No Member shall 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.

 

(b)           Notwithstanding
anything in this Agreement to the contrary, unless specifically agreed to by the Manager in writing, 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.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(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

 

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(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.
Notwithstanding the foregoing provisions of this Section 9.4(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
9.4(c). For purposes of this Section
9.4(c), “REIT Prohibited Transactions” shall mean any of the
actions specifically set forth in this Section 9.4(c).

 

9.5           FCPA.

 

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

 

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

 

(b)               Each
Member agrees to notify 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.

 

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Section
10.           Confidentiality.

 

(a)
          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:

 

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

 

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

 

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

 

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

 

(b)               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(b).

 

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

 

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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.

 

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

 

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

 

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

 

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

 

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

 

(h)          Securities
Matters.

 

		(i)	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.

 

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

 

		(iii)	Such Member is unaware of, and in no way relying on, any form of
general solicitation or general advertising in connection with the offer and sale of the 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.

 

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

 

		(v)	Such Member understands that the 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.

 

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

 

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

 

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

 

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

 

12.1        Prohibited
Transfers. Except as otherwise provided in this Section 12, Sections
5.2{b) or as approved by the Manager, 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):

 

(i)               Any
Transfer by SOIF III or a SOIF III Transferee of up to one hundred percent (100%) of its Interest to any Affiliate of SOIF III,
including but not limited to (A) BRG or any Person that is directly or indirectly owned by BRG; (B) Bluerock Special Opportunity
+ Income Fund, LLC (“SOIF”) or any Person that is directly or indirectly owned by SOIF; (C) Bluerock Special
Opportunity + Income Fund II, LLC (“SOIF II”) or any Person that is directly or indirectly owned by SOIF II;
(D) Bluerock Special Opportunity + Income Fund III, LLC (“SOIF III”) or any Person that is directly or indirectly
owned by SOIF III; and/or (E) Bluerock Growth Fund, LLC (“BGF”) or any Person that is directly or indirectly
owned by BGF (collectively, a “ SOIF III Transferee”);

 

(ii)             Any
Transfer by BEMT or a BEMT Transferee of up to one hundred percent (100%) of its Interest to any Affiliate of BEMT, including
but not limited to (A) BRG or any Person that is directly or indirectly owned by BRG; (B) SOIF or any Person that is directly
or indirectly owned by SOIF; (B) SOIF II or any Person that is directly
or indirectly owned by SOIF II; (C) SOIF III or any Person that is directly
or indirectly owned by SOIF III; and/or (D) BGF or any Person that is directly or indirectly owned by BGF;

 

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provided
however, as to subparagraphs (b)(i) and (b)(ii), and as to subparagraph (a), no Transfer shall be permitted and shall be void
ab initio if it shall violate any “Transfer” provision of any applicable Collateral Agreement with third party
lenders.

 

(c)               Upon
the execution by any such BEMT Transferee or SOIF III Transferee of such documents necessary to admit such party into the Company
and to cause the BEMT Transferee or SOIF III Transferee (as applicable) to become bound by this Agreement, the BEMT Transferee
or SOIF III Transferee (as applicable) shall become a Member, 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
Sections 5.2(b), no Transfer of Interests in the Company
shall be permitted unless the potential transferee is admitted as a Member under this Section 12.3:

 

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

 

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

 

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

 

 

(ii)         the
Transfer would result in a termination of the Company under Code Section 708(b);

 

(iii)        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;

 

(iv)        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;

 

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(v)         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)(v),
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 Manager, a principal purpose of the use of
the flow-through entity is to permit the Company to satisfy the 100-member limitation; or

 

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

 

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

 

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

 

Section 13.           Dissolution.

 

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

 

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

 

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

 

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

 

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

 

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

 

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
Manager 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 Manager 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:

 

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

 

(ii)            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;

 

(iii)           the
balance, if any, to the Members in accordance with Sections 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.

 

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Section 14.           Indemnification.

 

14.1             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 officers and each of their
respective agents, officers, directors, members, partners, shareholders and employees from and against any loss, expense, damage
or injury suffered or sustained by them (including but not limited to any judgment, award, settlement, reasonable attorneys’
fees and other costs or expenses incurred in connection with the defense of any actual or threatened action, proceeding or claim)
by reason of or arising out of (i) their activities on behalf of the Company or in furtherance of the interests of the Company,
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, Manager, representatives, employees or officers of the Company, or (iii) the Company’s assets,
property, business or affairs (including, without limitation, the actions of any officer, director, member or employee of the Company
or any of its Subsidiaries), if the acts or omissions were not performed or omitted fraudulently or as a result of gross negligence
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, employees and other representatives
of Affiliates of a Member who are functioning as representatives of such Member in connection with this Agreement shall be considered
representatives of such Member for the purposes of this Section 14. Reasonable expenses incurred by the indemnified party
in connection with any such proceeding relating to the foregoing matters shall be paid or reimbursed by the Company in advance
of the final disposition of such proceeding upon receipt by the Company of (x) written affirmation by the Person requesting indemnification
of its good faith belief that it has met the standard of conduct necessary for indemnification by the Company and (y) a written
undertaking by or on behalf of such Person to repay such amount if it shall ultimately be determined by a court of competent jurisdiction
that such Person has not met such standard of conduct, which undertaking shall be an unlimited general obligation of the indemnified
party but need not be secured.

 

14.3             General
Indemnification by the Members.

 

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

 

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(b)           Except
as otherwise provided herein or in any other agreement, recourse for the indemnity obligation of the Members under this Section
14.3 shall be limited to such Indemnifying Party’s Interest in the Company.

 

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

 

Section
15.           Sale Rights

 

15.1         Push /Pull
Rights.

 

(a)               Availability
of Rights. At any time that 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.l, 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.

 

(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.

 

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

 

(e)           Closing.
The closing of an acquisition pursuant to this Section
15.1 shall be held at the principal place of business of the Company 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 15.1(c). At such closing, the following shall occur:

 

(i)               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

 

(ii)               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.l 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.

 

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15.2            Forced
Sale Rights.

 

(a)               Offers.
If, at any time, (i) either Member desires to offer the Company Interest for sale on specified terms, or (ii) receives from an
unaffiliated purchaser a bona fide written cash offer (i.e., not seller financed) for the purchase of such Company Interest
on terms that such Member desires for the Company 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 Company 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 Company Interest on the terms of the Offer.

 

(c)                Offer
Unacceptable. If
the Non-Initiating Member does not wish for the Company 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.

 

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 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, 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 selling the Company Interest on the terms of the Offer, then the Initiating Member
shall be allowed to sell the Company Interest 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 bonafide third party contract to
sell the Company Interest 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 Company Interest 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 Company Interest.

 

    	32

    	 

    

 

Section
16.           Mediation and Arbitration of Disputes .

 

16.1            Events
Giving Rise To Mediation or Arbitration. In
the event that there is a dispute between the Manager or the Members as to any action or issue, or in the event of a deadlock between
the Members, then and in such event all of the Members agree, upon the written request of any one Member, to submit to mediation
within ten (10) days of receipt of the request for mediation for the purpose of resolving the dispute. If mediation is not successful
in resolving the dispute; one or more of the Members may elect to have the dispute submitted to binding arbitration as provided
in this Article 10 by giving written notice to each of the Members of such Member’s election to require arbitration of such
dispute. Said written notice shall set forth (i) the action or issue in dispute and (ii) a brief description of the position of
the electing Member with respect to such dispute.

 

16.2           Selection
of Arbitrators. Within ten (10) days of the date upon which the notice is sent pursuant to Section
10.1, the Members shall meet for the purpose of selecting three (3) persons to act as arbitrators
for the Company for such dispute. In the event that the Members are unable to agree upon the selection of the arbitrators at such
meeting, then within ten (10) days following such meeting, the Member(s) requesting such arbitration shall select one (1) person
to serve as an arbitrator and the remaining Member(s) shall select one (1) person to serve as an arbitrator and, within five (5)
days of the date of their selection, the two persons so selected shall select a third person to serve as the third and final arbitrator.
In the event that the Member(s) requesting such arbitration select one such person within such ten (10) day period, but the remaining
Member(s) fails to select one such person within such ten (10) day period, or vice versa, then the person selected shall serve
as the sole arbitrator and shall make the determination required hereunder. In the event the two selected arbitrators are unable
to agree upon the identity of the person to serve as the third and final arbitrator, such determination shall be made by the American
Arbitration Association in accordance with its then-existing rules and regulations. No person selected by the Members and/or by
the arbitrators may be employed by, doing substantial business with or otherwise affiliated with any of the Members (including,
but not limited to, acting as an attorney or accountant for any one or more of the Members or for the Company).

 

16.3            Arbitration
Hearing. Not later than fifteen (15) days following the selection of the third arbitrator,
a hearing shall be convened by the arbitrators at a mutually agreeable site. At such hearing, each Member shall be entitled to
present arguments in favor of and call witnesses in support of such Member’s position with respect to the item in dispute;
provided, however, that absent a written agreement of the Members to the contrary, presentation and/or arguments (including the
direct testimony of any witnesses called by a Member) of each side of the dispute shall be limited to three (3) hours.

 

    	33

    	 

    

 

 

16.4             Decision
of the Arbitrators/Binding
Effect. The
arbitrators shall render their decision regarding the matter in dispute within ten (10) days following the date of the hearing
set forth in Section 10.3
hereinabove and said decision shall be final
and binding upon the Members and the Company. Each of the Members hereby covenant and agree that they shall comply with the decision
of the arbitrators.

 

Section 17.           Miscellaneous.

 

17.1             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 SOIF III:

 

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

712 Fifth Avenue, 9th Floor

New York, New
York 10019

Attn: Michael
L. Konig, Esq.

 

If to BEMT:

 

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

712 Fifth Avenue,
9th Floor

New York, New
York 10019

Attn: Michael
L. Konig, Esq.

 

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

 

(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.

 

    	34

    	 

    

 

17.2             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 agree 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.

 

17.3             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.

 

17.4             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.

 

17.5             Table
of Contents and Captions Not Part of Agreement. The table of contents and 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.

 

17.6             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.

 

17.7             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.

 

17.8             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 or such other written agreements, the terms and provisions of this Agreement
shall govern and control.

 

17.9             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.

 

    	35

    	 

    

 

17.10           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.

 

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

 

17.12           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 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 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, 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.

 

17.13           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.

 

17.14            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.

 

17.15            Limitation
On Use of Names. Notwithstanding anything contained in this Agreement or otherwise to the contrary, each of SOIF III and BEMT
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 approved by the Manager.

 

    	36

    	 

    

 

17.16           Publicly
Traded Partnership Provision. Each Member hereby severally covenants and agrees with the
other Members for the benefit of such Members, that (i) it is not currently making a market in Interests in the Company and will
not in the future make such a market and (ii) 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 and to assign such Interest only to such Persons
who agree to be similarly bound.

 

17.17           Uniform
Commercial Code. The interest of each Member in the Company shall be a “certificated 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 a “certificated
security” thereunder.

 

17.18           Reserved.
Reserved.

 

17.19           No
Construction Against Drafter. This Agreement has been negotiated and prepared by SOIF III
and BEMT 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.

 

    	37

    	 

    

 

IN WITNESS WHEREOF, the
Members have executed this Limited Liability Company

Agreement as of the date set forth above.

 

	 	MEMBERS:
	 	Bluerock Special Opportunity + Income Fund III, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	BR SOIF III Manager, LLC
	 	a Delaware limited liability
	 	Its:	Manager
	 	 	 
	 	By:	/s/ Jordan B. Ruddy
	 	Name:	Jordan B. Ruddy
	 	Its:	President
	 	 	 
	 	BEMT Berry Hill, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Bluerock Residential Holdings, LP
	 	a Delaware limited partnership
	 	Its:	Sole Member
	 	 	 
	 	By:	Bluerock Residential Growth REIT, Inc.,
	 	a Maryland corporation
	 	Its:	General Partner
	 	 	 
	 	By:	/s/ Michael L. Konig
	 	Name:	Michael L. Konig
	 	Its:  	Senior Vice President and Chief Operating Officer

 

[Signature Page to Limited
Liability Company Agreement of BR Berry Hill Managing Member

II,
LLC]

 

    	38

    	 

    

 

EXHIBIT A

 

Percentage Interests

 

	 	 	Percentage	 
	Member Name	 	Interest	 
	 	 	 	 
	Bluerock Special Opportunity +	 	 	53.0522	%
	Income Fund III, LLC	 	 	 	 
	 	 	 	 	 
	BEMT Berry Hill, LLC	 	 	46.9478	%Exhibit 10.196

 

 

 

PURCHASE AND SALE AGREEMENT

 

BETWEEN EACH OF

 

SH 23HUNDRED TIC, LLC

a Tennessee limited liability company

 

BGF 23HUNDRED, LLC

a Delaware limited liability company

 

AND

 

23HUNDRED, LLC

a Delaware limited liability company,

 

as tenants-in-common,

 

AS SELLER,

 

AND

 

SENTINEL ACQUISITIONS CORP.

a Delaware corporation

 

AS PURCHASER

 

As of December 10, 2014

 

 

 

	23Hundred at Berry Hill	Berry Hill, Tennessee

 

    	i

    	 

    

 

Table of Contents

 

	 	 	Page
	 	 	 
	Article 1 PURCHASE AND SALE	1
	1.1	Agreement of Purchase and Sale	1
	1.2	Property Defined	3
	1.3	Permitted Exceptions	3
	1.4	Purchase Price	3
	1.5	Payment of Purchase Price	3
	1.6	Earnest Money	3
	Article 2 TITLE AND SURVEY	4
	2.1	Title Examination; Commitment for Title Insurance	4
	2.2	Survey	4
	2.3	Title Objections; Cure of Title Objections	4
	2.4	Conveyance of Title	6
	2.5	Pre-Closing “Gap” Title/Survey Defects	7
	Article 3 INSPECTION PERIOD	7
	3.1	Right of Inspection	7
	3.2	Right of Termination	9
	3.3	Confidentiality	10
	Article 4 CLOSING	11
	4.1	Time and Place	11
	4.2	Seller’s Obligations at Closing	11
	4.3	Purchaser’s Obligations at Closing	13
	4.4	Credits and Prorations.	14
	4.5	Closing Costs	16
	4.6	Conditions Precedent to Obligation of Purchaser	17
	4.7	Conditions Precedent to Obligation of Seller	18
	4.8	Tax Deferred Exchange	19
	Article 5 REPRESENTATIONS, WARRANTIES AND COVENANTS	19
	5.1	Representations and Warranties of Seller	19
	5.2	Knowledge Defined	24
	5.3	Survival of Seller’s Representations and Warranties	24
	5.4	Covenants of Seller	24
	5.5	Representations and Warranties of Purchaser	26
	5.6	Survival of Purchaser’s Representations and Warranties	28
	5.7	Covenants of Purchaser	29
	Article 6 DEFAULT	29
	6.1	Default by Purchaser	29
	6.2	Default by Seller	30
	6.3	Notice of Default; Opportunity to Cure	30
	6.4	Recoverable Damages	30
	Article 7 RISK OF LOSS	31

 

    	ii

    	 

    

 

	7.1	Damage	31
	7.2	Definition of Major Damage	32
	Article 8 COMMISSIONS	32
	8.1	Broker’s Commission	32
	8.2	Representation and Indemnity	32
	8.3	Survival	33
	Article 9 DISCLAIMERS AND WAIVERS	33
	9.1	No Reliance on Documents	33
	9.2	Disclaimers	34
	9.3	Certain Definitions	36
	9.4	Effect and Survival of Disclaimers	36
	Article 10 ESCROW AGENT	36
	10.1	Investment of Earnest Money	36
	10.2	Payment on Demand	36
	10.3	Exculpation of Escrow Agent	37
	10.4	Stakeholder	37
	10.5	Interest	37
	10.6	Execution by Escrow Agent	37
	Article 11 MISCELLANEOUS	38
	11.1	Public Disclosure	38
	11.2	Assignment	38
	11.3	Notices	38
	11.4	Modifications	40
	11.5	Calculation of Time Periods	40
	11.6	Successors and Assigns	41
	11.7	Entire Agreement	41
	11.8	Further Assurances	41
	11.9	Counterparts	41
	11.10	Severability	41
	11.11	Applicable Law	41
	11.12	No Third Party Beneficiary	41
	11.13	Employees	42
	11.14	Schedules	42
	11.15	Captions	42
	11.16	Construction	42
	11.17	Termination of Agreement	42
	11.18	Survival	43
	11.19	Time of Essence	43
	11.20	Covenant Not to Record	43
	11.21	Limitation of Seller’s Liability	43
	11.22	JURY WAIVER	43
	11.23	Limitation of Purchaser’s Liability	43
	11.24	Attorneys’ Fees.	43
	Article 12 SPECIAL PROVISION REGARDING CONDOMINIUM	44
	12.1	Condominium Conversion Agreement	44

 

    	iii

    	 

    

  

PURCHASE AND SALE
AGREEMENT

 

THIS PURCHASE
AND SALE AGREEMENT (this “Agreement”) is made as of December 10, 2014 (the “Effective Date”),
by and between each of SH 23HUNDRED TIC, LLC, a Tennessee limited liability company (“Stonehenge”), BGF
23HUNDRED, LLC, a Delaware limited liability company (“BR1”), and 23HUNDRED, LLC, a Delaware limited
liability company (“BR2;” Stonehenge, BR1 and BR2 are sometimes referred to collectively herein as “Seller”),
and SENTINEL ACQUISITIONS CORP., a Delaware corporation (“Purchaser”). FIRST AMERICAN TITLE INSURANCE
COMPANY (“Escrow Agent”)

has also executed this Agreement
for the limited purposes set forth herein.

 

In consideration
of the mutual covenants and agreements contained in this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
1

 

PURCHASE AND SALE

 

1.1          Agreement
of Purchase and Sale. Subject to the terms and conditions hereinafter set forth, Seller agrees to sell and convey and Purchaser
agrees to purchase the following:

 

(a)          that
certain tract or parcel of land located in Davidson County, Tennessee, and more particularly described on Schedule 1.1(a), attached
hereto and made a part hereof (the property described in this clause (a) being herein referred to collectively as the “Land”);

 

(b)          all
those rights, easements and appurtenances pertaining to the Land (whether now or hereafter existing), including (i) all right,
title and interest of Seller (if any) in and to any streets, alleys or rights-of-way (whether open, closed or proposed), within
or adjacent to the Land, and (ii) all right, title and interest of Seller with respect to any easements, covenants, agreements,
rights, privileges, tenements, hereditaments and appurtenances that now or hereafter benefit or burden the Land (the property described
in this clause (b) herein referred to collectively as the “Related Rights”);

 

(c)          the
buildings, structures, facilities, installations, fixtures and other improvements of every kind on the Land, including specifically,
without limitation, those certain buildings (which include 266 residential apartment units) having a street address of 2300 Franklin
Pike, Nashville, Tennessee 37204, and commonly known as 23Hundred at Berry Hill (the property described in this clause (c) being
herein referred to collectively as the “Improvements;” and the Land, the Related Rights and the Improvements
being hereinafter sometimes collectively referred to as the “Real Property”);

 

    	 

    	 

    

 

(d)          all
of Seller’s right, title and interest in, to and under all tangible personal property upon the Land but not otherwise or
within the Improvements, including specifically, without limitation, appliances, equipment, furniture, furnishings, carpeting,
draperies and curtains, tools and supplies, and other items of tangible personal property owned by Seller and used exclusively
in connection with the ownership, use, maintenance or operation of the Land and the Improvements, and including those items of
tangible personal property identified on Schedule 1.1(d), attached hereto and incorporated herein by this reference, but
excluding (i) cash and cash equivalents (except to the extent prorated at Closing), and any reserves or other deposits funded or
made in connection with any financing encumbering the Property, (ii) computer software and computer files, (iii) personal property
owned by tenants under the Leases, (iv) any equipment installed by, or in connection with, any telecommunication or utility provider
and which is owned by any party other than Seller (excluding any reversionary interest that Seller may have therein which shall
be assigned to Purchaser to the extent assignable), (v) any items owned by employees of Seller or any property manager, (vi) any
items leased to Seller, and (vii) all brochures, advertising copy, promotional materials, manuals, reports, portfolios, binders,
training materials and other items on which the name “Stonehenge” and/or “Bluerock” appears (the property
described in this clause (d), other than the excluded items, being herein referred to collectively as the “Tangible Personal
Property”). Seller agrees to cooperate reasonably, if feasible, with Purchaser to transfer any property-specific computer
data files in electronic format to Purchaser provided Seller is not in breach of any license agreement or other agreement with
respect to the transfer of such data.

 

(e)          all
of Seller’s right, title and interest as landlord or lessor in, to and under all written agreements listed and described
on Schedule 1.1(e) (the “Rent Roll”) attached hereto and made a part hereof as well as under all similar
agreements hereafter executed by Seller in accordance with the terms of this Agreement, pursuant to which any portion of the Land
or Improvements is used or occupied by anyone other than Seller (the property described in this clause (e) being herein referred
to collectively as the “Leases”);

 

(f)          all
of Seller’s right, title and interest in, to and under (i) the Designated Service Contracts (as defined in Section 5.7(b)
of this Agreement), (ii) all freely assignable existing warranties and guaranties issued to or inuring to the benefit of Seller
in connection with the Improvements or the Tangible Personal Property, (iii) all governmental permits, licenses and approvals,
if any, belonging to or inuring to the benefit of Seller and pertaining to the Real Property or the Tangible Personal Property,
but only to the extent that such permits, licenses and approvals are freely assignable and only to the extent that such permits,
licenses and approvals relate to the Real Property or the Tangible Personal Property as opposed to other property of Seller or
its affiliates; (iv) resident and tenant files for current residents and tenants as of the Closing Date, (v) architectural and
civil plans and specifications (to the extent in Seller’s possession), (vi) other non-confidential and non-proprietary records
owned by Seller and used in connection with the operation of the Real Property or any part thereof, and located on-site as of the
Closing Date; (vii) all rights to use the name “23Hundred at Berry Hill” in connection with the Real Property; and
(viii) all freely assignable telephone numbers and website domain names associated with the Real Property (the property described
in this clause (f), other than the excluded items, being sometimes herein referred to collectively as the “Intangible
Property”).

 

    	2

    	 

    

 

 

1.2           Property
Defined. The Land, the Related Rights, the Improvements, the Tangible Personal Property, the Leases and the Intangible
Property are hereinafter sometimes referred to collectively as the “Property.”

 

1.3           Permitted
Exceptions. The Property shall be conveyed, and Purchaser shall accept the Property, subject to the matters which are,
or are deemed to be, Permitted Exceptions pursuant to Article 2 hereof (herein referred to collectively as the “Permitted
Exceptions”).

 

1.4           Purchase
Price. Seller is to sell and Purchaser is to purchase the Property for a purchase price of SIXTY ONE MILLION TWO HUNDRED
THOUSAND and NO/100 Dollars ($61,200,000.00). The Purchase Price, as adjusted by prorations and adjustments as herein provided,
shall be payable in full at Closing in cash by wire transfer of immediately available federal funds to a bank account of Escrow
Agent designated by Escrow Agent in writing to Purchaser prior to the Closing (“Escrow Agent’s Account”),
and, as adjusted by prorations and adjustments as herein provided, shall be subsequently payable in full at Closing in cash by
wire transfer of immediately available federal funds to a bank account designated by Seller in writing to Escrow Agent prior to
the Closing.

 

1.5           Earnest
Money.

 

(a)          On
the Effective Date, Purchaser shall deposit with Escrow Agent the sum of SIX HUNDRED TWELVE THOUSAND AND NO/100 Dollars ($612,000.00)
by wire transfer of immediately available funds the “Initial Earnest Money”) in accordance with the wiring instructions
attached hereto as Schedule 1.5.

 

(b)          If
Purchaser sends Seller the “Notice to Proceed” (as defined below) on or prior to the “Inspection Date”
(as defined below), then on or before the Inspection Date, Purchaser shall deposit with Escrow Agent the additional sum of SIX
HUNDRED TWELVE THOUSAND and NO/100 Dollars ($612,000.00) (the “Additional Earnest Money”) by wire transfer of
immediately available funds in accordance with the wiring instructions attached hereto as Schedule 1.5. The Initial Earnest
Money and the Additional Earnest Money, along with any and all interest accrued thereon are herein collectively referred to as
the “Earnest Money.”

 

(c)          The
Earnest Money shall be held by Escrow Agent pending Closing and shall be applied to the Purchase Price on the Closing Date and
paid to Seller through the escrow process outlined herein. The Earnest Money shall be fully refundable to Purchaser if Purchaser
elects or is deemed to have elected to terminate this Agreement at any time on or before the Inspection Date. If this Agreement
is terminated after the Inspection Date, the Escrow Agent shall deliver the Earnest Money in accordance with the applicable terms
of this Agreement pertaining to such termination.

 

    	3

    	 

    

 

(d)          If
Purchaser fails to deliver any portion of the Earnest Money to the Escrow Agent within the time period specified above, Seller
shall have the right to terminate this Agreement at any time prior to the delivery of such portion of the Earnest Money, and upon
such termination, Purchaser and Seller shall have no further rights or obligations hereunder, except for those which expressly
survive termination of this Agreement.

 

(e)          In
any event, if Purchaser is entitled to have any of the Earnest Money returned to Purchaser pursuant to any provision of this Agreement,
One Hundred and No/100 Dollars ($100.00) of the Earnest Money shall nevertheless be paid to Seller as good and sufficient consideration
for entering into this Agreement. In addition, Seller acknowledges that Purchaser, in evaluating the Property and performing its
due diligence investigation of the Property, will devote internal resources and incur expenses, and that such efforts and expenses
of Purchaser also constitute good, valuable and sufficient consideration for this Agreement.

 

ARTICLE
2

 

TITLE AND SURVEY

 

2.1          Title
Examination; Commitment for Title Insurance. Purchaser acknowledges that, prior to the Effective Date, Seller has delivered
to Purchaser a copy of Seller’s existing title insurance policy for the Real Property. Within two (2) days after the Effective
Date, Seller shall order, at Seller’s cost, a commitment for title insurance (the “Title Commitment”)
covering the Real Property from Waller Lansden Dortch & Davis, LLP, as agent for First American Title Insurance Company (the
“Title Company”).

 

2.2          Survey.
Purchaser acknowledges that, prior to the Effective Date, Seller has delivered to Purchaser a survey of the Real Property (the
“Existing Survey”). Purchaser shall promptly order, at Purchaser’s sole cost and expense, an update to
the Existing Survey in accordance with ALTA standards customary and typical for institutional buyers of real estate similar to
the Property (the “Updated Survey”). For purposes of the Deed to be delivered to Purchaser at the Closing, the
legal description of the Property shall be the legal description attached hereto as Schedule 1.1(a). If the legal description
for the Real Property on the Updated Survey differs from the legal description on Schedule 1.1(a), Seller shall execute
and deliver to Purchaser at Closing a Quitclaim Deed, without representation or warranty that utilizes the legal description set
forth on the Updated Survey (the “Quitclaim Deed”).

 

2.3          Title
Objections; Cure of Title Objections.

 

(a)          Purchaser
or its attorneys shall have until the date that is seven (7) days after Purchaser’s receipt of the Title Commitment (the
“Title Objection Deadline”) to notify Seller and its attorneys, in writing, of such objections as Purchaser
may have to the Title Commitment (including the title exception documents referred to therein) or the Existing Survey. Any item
contained in the Title Commitment, any matter shown on the Existing Survey to which Purchaser does not object on or before the
Title Objection Deadline shall be deemed a “Permitted Exception.”

 

    	4

    	 

    

 

(b)          In
the event Purchaser shall notify Seller of objections to title or to matters shown on the Existing Survey on or before the Title
Objection Deadline, Seller shall have the right, but not the obligation, to cure such objections. On or before the fifth (5th)
day following Seller’s receipt of Purchaser’s notice of objections, Seller or its attorneys shall notify Purchaser
in writing whether Seller elects to attempt to cure such objections (and Seller’s failure to provide such a notice shall
be deemed an election by Seller not to cure any such objection). In all instances, Seller shall have the right but not the obligation
to cure objections to title and survey raised by Purchaser hereunder, other than those items described in Section 2.3(d) hereof.
Seller specifically agrees and acknowledges, however, that if Seller elects to attempt to cure an objection raised by Purchaser,
and then fails to cure such objection, then Seller’s failure to cure shall constitute a Seller default under this Agreement.
If Seller elects to attempt to cure, and provided that Purchaser shall not have terminated this Agreement in accordance with Section
3.2 hereof, then Seller shall use commercially reasonable efforts to attempt to remove, satisfy or cure the same. If Seller elects
(or is deemed to have elected) not to cure any objections specified in Purchaser’s notice, or if Seller notifies Purchaser
of Seller’s intent to cure any objection and thereafter Seller fails or is unable to effect a cure prior to Closing (or
any date to which the Closing has been extended), then in either such case Purchaser shall have the right to elect one, but not
both, of the following options, which election must in each case be made within the time period provided in paragraph (c) below:

 

(i)          to
accept a conveyance of the Property subject to the Permitted Exceptions, specifically including any matter objected to by Purchaser
which Seller is unwilling or unable to cure, and without reduction of the Purchase Price; or

 

(ii)         to
terminate this Agreement by sending written notice thereof to Seller, and upon delivery of such notice of termination, this Agreement
shall terminate, the Earnest Money shall be immediately paid to Seller, and thereafter neither party hereto shall have any further
rights, obligations or liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly
survives termination of this Agreement.

 

(c)          If
Seller notifies Purchaser that Seller does not intend to attempt to cure any title objection, or if Seller is deemed to have elected
not to cure any title objections, or if Seller notifies Purchaser of Seller’s intent to cure any objection and Seller later
notifies Purchaser that Seller has failed or will be unable to effect a cure thereof, then in any such case Purchaser shall have
five (5) days from receipt of such notice to notify Seller in writing whether Purchaser shall elect to accept the conveyance under
clause (b) (i) above or to terminate this Agreement under clause (b) (ii) above (with Purchaser’s failure to provide such
a notice deemed an election by Purchaser to accept conveyance under clause (b)(i) above).

 

    	5

    	 

    

 

(d)          Notwithstanding
anything contained herein to the contrary, Seller shall be obligated at Closing to discharge, regardless of whether Purchaser objects
to same, (i) all Mortgages encumbering the Property or any portion thereof, and (ii) all liens and encumbrances created on or after
the Effective Date by Seller or with the knowledge or consent of Seller, (iii) all mechanic’s liens relating to matters that
have been caused by Seller or parties acting on behalf of Seller, (iv) all judgment liens, other statutory liens and other monetary
liens of a liquidated amount encumbering the Property or any portion thereof, up to a maximum aggregate amount of $250,000.00 (collectively,
“Monetary Liens”). The term “Mortgage” as used herein includes any mortgage, deed of trust, deed
to secure debt and similar security instrument securing an indebtedness of Seller and encumbering the Property or any portion thereof;
the terms “discharge” and “discharged” as used herein include compliance with a statutory bonding procedure
that has the legal effect of removing the Mortgage or Monetary Lien as a lien on the Property or otherwise allows such item to
be removed (in a manner reasonably acceptable to Purchaser) from the title exceptions in the Title Policy (as defined below).

 

2.4          Conveyance
of Title. At Closing, Seller shall convey and transfer the Property to Purchaser. The Owner’s Policy of Title Insurance
(the “Title Policy”) covering the Real Property, in the full amount of the Purchase Price, and the Deed delivered
by Seller to Purchaser at Closing shall be subject to the following matters, which shall be deemed to be Permitted Exceptions:

 

(a)          the
rights of tenants under the Leases described in the Rent Roll and any new Leases entered into between the Effective Date and Closing
and (if required) approved by Purchaser in accordance with the terms of this Agreement;

 

(b)          the
lien of all ad valorem real estate taxes and assessments not yet due and payable as of the Closing Date (as defined in Section
4.1 hereof), subject to adjustment as herein provided;

 

(c)          local,
state and federal laws, ordinances or governmental regulations, including but not limited to, building, zoning and land use laws,
ordinances and regulations, now or hereafter in effect relating to the Property;

 

(d)          all
matters reflected on the Title Commitment to which Purchaser does not object or Seller does not agree to cure pursuant to Section
2.3;

 

(e)          matters
deemed to be Permitted Exceptions hereunder, including, but not limited to, the Condominium Conversion Agreement; and

 

(f)          additional
items, if any, not objected to by Purchaser pursuant to Section 2.5 hereof.

 

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2.5           Pre-Closing
“Gap” Title/Survey Defects. Whether or not Purchaser shall have furnished to Seller any notice of title
objections pursuant to the foregoing provisions of this Agreement, Purchaser may, at or prior to Closing, notify Seller in writing
of any objections to title or survey matters first raised by the Title Company or the surveyor and first arising between (a) the
effective date of the Title Commitment or the Existing Survey and (b) the Closing Date; provided, however, that Purchaser must
notify Seller of any such objections within five (5) days of Purchaser’s first receipt of the updated Title Commitment,
the Updated Survey or other document, whichever first provides notice of the condition giving rise to any such objection, failing
which, Purchaser shall be deemed to have waived its right to object to any such items. With respect to any objections to title
or survey matters set forth in such notice, Seller shall have the same option to cure and Purchaser shall have the same option
to accept title subject to such matters or to terminate this Agreement as those which apply to any notice of objections made by
Purchaser on or before the Title Objection Deadline. For the avoidance of doubt, any matter first appearing on the Updated Survey
(i.e. even if such matter is reflected in the Title Commitment first delivered to Purchaser by Seller to the extent not shown
on the Existing Survey) shall be a matter to which Purchaser shall have the right to object to pursuant to this Section 2.5.

 

ARTICLE 3

 

INSPECTION PERIOD

 

3.1          Right
of Inspection.

 

(a)          Within
three (3) business days from the Effective Date, Seller shall deliver or otherwise make available to Purchaser copies of those
items listed on Schedule 3.1 attached hereto (collectively, “Seller’s Deliveries”), to the extent
that such documents are in Seller’s possession or under Seller’s control and have not already been delivered to Purchaser.

 

(b)          Beginning
on the Effective Date and continuing thereafter so long as this Agreement remains in full force and effect, Purchaser shall have
the right to make a physical inspection of the Property and to examine at such place or places at the Property, in the offices
of the property manager or elsewhere as the same may be located, any operating files maintained by Seller or its property manager
in connection with the leasing, maintenance and/or management of the Property, including, without limitation, the Leases, lease
files, service contracts, bills, invoices, receipts and other general records relating to the income and expenses of the Property,
correspondence, surveys, plans and specifications, warranties for services and materials provided to the Property and similar materials,
but excluding materials not directly related to the leasing, maintenance, and/or management of the Property such as Seller’s
internal memoranda, financial projections, insurance policies, operating budgets, appraisals, accounting and tax records and similar
proprietary or confidential information (the “Inspections”).

 

    	7

    	 

    

 

(c)          Upon
forty-eight (48) hours’ prior telephonic notice to Seller via Todd Jackovich (615-864-4291), Purchaser and its agents, representatives,
contractors and consultants (collectively the “Purchaser Inspection Parties”) shall have the right to enter
upon the Property during regular business hours for the purpose of conducting such Inspections as Purchaser may reasonably require;
provided that Seller shall have the opportunity to have one of its representatives accompany the Purchaser Inspection Parties on
each such entry, and provided further that Purchaser shall not conduct any invasive testing (including, without limitation, soil
borings, test pits, ground water testing, or Phase II or Phase III environmental testing), without Seller’s approval in its
sole discretion. Any and all such Inspections shall be done at Purchaser’s sole cost and expense. The Inspections shall be
conducted in accordance with standards customarily employed in the industry and in compliance with all governmental laws, rules
and regulations. Following each such entry by the Purchaser Inspection Parties with respect to the Inspections, Purchaser shall
promptly restore, or cause to be restored, the Property to its original condition as existed immediately prior to any such Inspections.
Purchaser shall not have the right to submit any samples or other materials to any testing laboratory or similar facility without
obtaining the prior written consent of Seller. Notwithstanding the foregoing, Purchaser shall have the right to test for the presence
of radon at the Property and submit radon samples to testing laboratories or other similar facilities without Seller’s consent.

 

(d)          Prior
to conducting any physical inspection or testing at the Property, Purchaser shall obtain, and during the period of such inspection
or testing shall maintain, at their expense: (i) commercial general liability (“CGL”) insurance, issued on a
form at least as broad as Insurance Services Office (“ISO”) Commercial General Liability Coverage “occurrence”
form CG 00 01 10 01 or another “occurrence” form providing equivalent coverage, including contractual liability coverage
with respect to Purchaser’s obligations under this Agreement and personal injury liability coverage, with limits of not less
than Three Million and No/100 Dollars ($3,000,000) for any one occurrence and Five Million and No/100 Dollars ($5,000,000) in the
aggregate; (ii) comprehensive automobile liability insurance (covering any automobiles owned or operated by Purchaser or Purchaser’s
Representatives) issued on a form at least as broad as ISO Business Auto Coverage form CA 00 01 07 97 or other form providing equivalent
coverage; (iii) worker’s compensation insurance; and (iv) employer’s liability insurance. Such automobile liability
insurance shall be in an amount not less than One Million and No/100 Dollars ($1,000,000) for each accident. Such worker’s
compensation insurance shall carry minimum limits as defined by the law of the jurisdiction in which the Property is located (as
the same may be amended from time to time). Such employer’s liability insurance shall be in an amount not less than One Million
and No/100 Dollars ($1,000,000) for each accident, One Million and No/100 Dollars ($1,000,000) disease- policy limit, and One Million
and No/100 Dollars ($1,000,000) disease-each employee. Seller, and its property manager, shall be covered as additional insureds
on the CGL and automobile liability insurance policies with respect to liability arising out of the named insured’s acts
or omissions relating to the Property. The insurer and the terms and conditions of all the foregoing policies shall be reasonably
acceptable to Seller. Prior to making any entry upon the Property, Purchaser shall furnish to Seller a certificate of insurance
evidencing the foregoing coverages, which certificate of insurance shall be in form and substance reasonably satisfactory to Seller.

 

    	8

    	 

    

 

(e)          Purchaser
shall indemnify, hold harmless and defend Seller, its general partner and their respective officers, directors, employees and shareholders
from and against any and all claims, demands, causes of action, liabilities, losses, costs, damages and expenses (including reasonable
attorneys’ fees and expenses and court costs incurred in defending any such claim or in enforcing this indemnity) of whatsoever
nature (for purposes of this Section 3.1, individually a “Claim” and collectively, “Claims”)
that may be incurred by Seller or any other indemnified party and caused by and arising solely out of the acts or omissions of
Purchaser and its agents, representatives, contractors and consultants, or any of them, including but not limited to Claims arising
out of or in connection with personal injury or death of persons, loss, destruction or damage to property, or liens or claims of
lien filed against the Property. Notwithstanding the foregoing, Purchaser shall have no liability for pre-existing conditions merely
discovered by any inspection of the Real Property, except to the extent aggravated by Purchaser or Claims resulting from the gross
negligence or wrongdoing of Seller and its affiliates and employees. This Section 3.1(e) shall survive Closing or any termination
of this Agreement.

 

3.2          Right
of Termination. Seller agrees that in the event Purchaser determines, in Purchaser’s sole discretion, that it does
not wish to acquire the Property for any reason or no reason, then Purchaser shall have the right to terminate this Agreement by
giving written notice of such termination to Seller on or before 5:00 p.m. (Nashville, Tennessee time) on December 15, 2014 (the
“Inspection Date”). Upon any such termination of this Agreement pursuant to Purchaser’s rights under this
Section 3.2, the entire Earnest Money shall be promptly disbursed to Purchaser in accordance with Section 10.2 (minus the costs
of any unpaid fees or expenses relating to the Updated Survey, which shall be paid to the surveyor), and Purchaser and Seller shall
have no further rights and obligations hereunder except those which expressly survive termination of this Agreement. If Purchaser
elects to proceed with the purchase of the Property hereunder, Purchaser shall send written notice of its election (the “Notice
to Proceed”) prior to the expiration of the Inspection Period, following which Purchaser shall have no further right
to terminate this Agreement pursuant to this Section 3.2, and the Earnest Money shall become non- refundable to Purchaser except
as otherwise specifically provided herein. If Purchaser fails to timely send the Notice to Proceed prior to the expiration of the
Inspection Period, Purchaser shall be deemed to have terminated this Agreement, this Agreement shall automatically terminate, the
Escrow Agent shall promptly deliver the Earnest Money to Purchaser and the parties shall have no further rights or obligations
hereunder except those which expressly survive termination of this Agreement. Time is of the essence with respect to the provisions
of this Section 3.2. The period commencing on the Effective Date and ending at 5:00 p.m. (Nashville, Tennessee time) on the Inspection
Date is sometimes referred to herein as the “Inspection Period.”

 

    	9

    	 

    

 

3.4          Confidentiality.

 

(a)          Purchaser
acknowledges that all reports and other information provided to Purchaser (the “Deliveries”) under this Agreement
or separate arrangement with Seller or Broker are for informational purposes only and, except as otherwise set forth herein, shall
not be construed as a representation or warranty on the part of Seller or any other party regarding the Property. Notwithstanding
any provision of this Agreement or any letter of intent between Seller and Purchaser, Purchaser shall not have access to, and Seller
shall not be obligated to make available to Purchaser, any confidential, proprietary or privileged information of Seller related
to the Property, such excluded materials to include Seller’s internal memoranda, financial projections, operating budgets,
appraisals, tax returns and similar proprietary, confidential or privileged information. Seller will make available to Purchaser
financial statements, operating reports and rent rolls used in Seller’s ordinary course of business.

 

(b)          Until
the Closing, the existence and contents of this Agreement, the negotiations of parties with respect to the possible sale and purchase
of the Property and any matters disclosed by any Inspections undertaken by Purchaser with respect to the Property and any additional
information furnished by Seller to Purchaser from time to time (including, without limitation, the Deliveries) shall be kept confidential
and shall not be disclosed to any third parties without the consent of both parties hereto. Each party may, however, disclose such
contents as are (i) expressly required under applicable laws (which shall include the right of Seller to make securities filings)
or (ii) expressly required by appropriate written judicial order, subpoena or demand issued by a court of competent jurisdiction
(but will, to the extent practicable, first give the other party written notice of the requirement and will cooperate with the
other party so that the other party, at its expense, may seek an appropriate protective order and, in the absence of a protective
order, the party from which disclosure is required may disclose only such content as may be necessary to avoid any penalty, sanction,
or other material adverse consequence, and the disclosing party will use reasonable efforts to secure confidential treatment of
any such content so disclosed).

 

(c)          Until
the Closing, no advertisement or other publicity concerning this transaction shall be made or disseminated by either party at any
time without the review and approval of both parties hereto. Both parties recognize the need to disclose, and agree to the disclosure
of, certain aspects of this transaction to their respective lenders, investors, accountants, attorneys and other consultants. Neither
party is responsible for the actions of third parties as to the disclosure of confidential information, but each party agrees to
inform their lender, investors, accountants, attorneys and other consultants of the confidentiality of this transaction and all
such other information and, upon request of the other, agrees to use commercially reasonable efforts to obtain confidentiality
agreements from such third parties. Notwithstanding the foregoing of this Section 3.3, either of Seller or Purchaser (or both)
may issue a press release describing the transaction if and when the Property is actually conveyed, provided that any such press
release must be approved in advance by the other party, such approval to not be unreasonably withheld or delayed.

 

    	10

    	 

    

 

(d)          If
this Agreement is terminated, Purchaser shall, within seven (7) days from the date of Seller’s request, return or cause to
be returned to Seller all Deliveries and, if requested by Seller and upon reimbursement of Purchaser’s actual costs therefor,
deliver to Seller copies of all third party reports, together with such reliance letters and/or assignments as Seller may reasonably
request. The confidentiality provisions of this Section 3.3 shall survive the termination of this Agreement, but shall not survive
the Closing.

 

ARTICLE 4

 

CLOSING

 

4.1          Time
and Place. The consummation of the transaction contemplated
hereby (“Closing”) shall be occur through escrow arrangements reasonably acceptable to the parties with the
Escrow Agent at or before 2:00 p.m. Nashville, Tennessee time on or before January 14, 2015. At Closing, Seller and Purchaser shall
perform the obligations set forth in, respectively, Section 4.2 and Section 4.3. The Closing may be held at such other place or
such earlier time and date as Seller and Purchaser shall mutually approve in writing. The date on which the Closing is scheduled
to occur hereunder (or, if earlier, the date on which Closing occurs) is sometimes referred to herein as the “Closing
Date.” The parties will endeavor to “pre-close” on the business day prior to the Closing Date, so as to allow
the wire transfers of the Purchase Price to occur at the opening of business on the Closing Date or as promptly thereafter as practical,
provided that the foregoing shall not require Purchaser to fund the transaction contemplated herein until the Closing Date.

 

4.2          
Seller’s Obligations at Closing . At Closing, Seller shall:

 

(a)          deliver
to Purchaser a duly executed special warranty deed in the form attached hereto as Schedule 4.2(a) and by this reference
made a part hereof, conveying the Real Property to Purchaser subject only to the Permitted Exceptions (the “Deed”)
and, if requested by Purchaser pursuant to Section 2.2, the Quitclaim Deed;

 

(b)          deliver
to Purchaser two counterparts of a bill of sale and assignment and assumption of leases and service contracts, in the form
attached hereto as Schedule 4.2(b) and by this reference made a part hereof, duly executed by Seller, pursuant to
which (i) Seller shall convey the Tangible Personal Property and
the Intangible Property to Purchaser, and (ii) Seller shall assign to Purchaser, and Purchaser shall assume from and after
the Closing Date, Seller’s interest in and to the Leases and Designated Service Contracts, as amended or supplemented
pursuant to this Agreement (the “Bill of Sale and Assignment”);

 

    	11

    	 

    

 

(c)          join
with Purchaser to execute a notice (the “Tenant Notice”) in form and content reasonably satisfactory to Purchaser
and Seller, which Purchaser shall send a copy thereof to each tenant under each of the Leases informing such tenant of the sale
of the Property and of the assignment to Purchaser of Seller’s interest in, and obligations under, the Leases (including,
if applicable any security deposits) and directing that all rent and other sums payable after the Closing under each such Lease
shall be paid as set forth in the notice.

 

(d)          deliver
to Purchaser a certificate (“Seller’s Closing Certificate”), dated as of the Closing Date and duly executed
by Seller, in the form of Schedule 4.2(d) attached hereto, stating that the representations and warranties of Seller
contained in Section 5.1 of this Agreement are true and correct in all material respects as of the Closing Date (with appropriate
modifications to reflect any changes therein or identifying any representation or warranty which is not, or no longer is, true
and correct and explaining the state of facts giving rise to the change). The Seller’s Closing Certificate shall include
an updated Rent Roll dated no earlier than two (2) business days prior to the Closing Date as to which Seller shall make the same
representations and warranties, as of the date of such Rent Roll, as Seller makes under Section 5.1(f) with respect to the Rent
Roll attached hereto.

 

(e)          deliver
to Purchaser such evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents
on behalf of Seller;

 

(f)          deliver
to Purchaser an affidavit duly executed by Seller stating that Seller is not a “foreign person” as defined in the Federal
Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act;

 

(g)          deliver
to the Title Company a broker’s lien waiver and title insurance affidavit, if required by the Title Company, duly executed
by Seller or a representative of Seller, in the form attached hereto as Schedule 4.2(g), and addressing such other customary
matters as may be reasonably requested by the Title Company;

 

(h)          deliver
to Purchaser at the place of Closing or at the Property the Leases, together with such leasing and property files and records which
are material in connection with the continued operation, leasing and maintenance of the Property, all to the extent not previously
delivered;

 

(i)          deliver
to Purchaser possession and occupancy of the Property, subject to the Permitted Exceptions, together with all keys for the Property
in the possession or control of Seller;

 

(j)          deliver
to Purchaser two counterparts of the Condominium Conversion Agreement, executed by Seller;

 

    	12

    	 

    

 

(k)          deliver
to Escrow Agent an affidavit or other statement acceptable to Escrow Agent providing the information necessary for the Escrow Agent
to file the Form 1099 required by the provisions of Section 6045(e) of the Code; and

 

(l)          deliver
a closing statement evidencing the transaction contemplated by this Agreement and such additional documents as shall be reasonably
requested by the Title Company or required to consummate the transaction contemplated by this Agreement, including all necessary
state, county, or local governmental transfer tax forms or returns; provided, however, that in no event shall Seller be required
to indemnify the Title Company, Purchaser, or any other party pursuant to any such documents, or undertake any other material liability
not expressly contemplated in this Agreement, unless Seller elects to do so in its sole discretion.

 

4.3          
Purchase r’s Obligations at Closin g. At Closing, Purchaser shall:

 

(a)          deliver
to Escrow Agent the full amount of the Purchase Price (less the Earnest Money and any interest accrued thereon), as increased or
decreased by prorations and adjustments as herein provided, prior to 2:00 p.m. (Nashville, Tennessee time) on the Closing Date,
in immediately available federal funds wire transferred to Escrow Agent’s Account pursuant to Section 1.5 above, and deliver
to Escrow Agent instructions to immediately release the full amount of the Purchase Price, as increased or decreased by prorations
and adjustments as herein provided, to Seller or its designees;

 

(b)          join
Seller in execution of all counterparts of the Bill of Sale, and Assignment and the Tenant Notice. In connection with the Tenant
Notice, Purchaser shall deliver to each and every tenant of the Property under a Lease thereof a copy of the Tenant Notice acknowledging
Purchaser’s receipt and responsibility for each tenant’s security deposit (to the extent credited or delivered by Seller
to Purchaser at Closing), if any, all in compliance with and to the extent required by the applicable law. The provisions of this
sub-section shall survive Closing;

 

(c)          deliver
to Seller such evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents
on behalf of Purchaser;

 

(d)          deliver
to Seller a certificate dated as of the Closing Date and duly executed by Purchaser, (i) reaffirming the provisions of Article
9 and confirming that such provisions remain and will continue in full force and effect as of and after the Closing, and (ii) stating
that the representations and warranties of Purchaser contained in Section 5.5 of this Agreement are true and correct in all material
respects as of the Closing Date;

 

(e)          deliver
to Seller two counterparts of the Condominium Conversion Agreement, executed by Purchaser; and

 

    	13

    	 

    

 

(f)          deliver
such additional documents as shall be reasonably requested by the Title Company or required to consummate the transaction contemplated
by this Agreement, provided, however, that in no event shall Purchaser be required to indemnify Seller, Title Company or any other
party or undertake any other material liability not expressly contemplated in this Agreement, unless Purchaser elects to do so
in its sole discretion.

 

4.4          Credits
and Prorations.

 

(a)          All
income and expenses in connection with the operation of the Property shall be apportioned, as of 11:59 p.m. (Nashville, Tennessee
time) on the day prior to the Closing Date, as if Purchaser were vested with title to the Property during the entire Closing Date,
such that, except as otherwise expressly provided to the contrary in this Agreement, Seller shall have the benefit of income and
the burden of expenses for the day preceding the Closing Date and the Purchaser shall have the benefit of income and the burden
of expenses for the Closing Date and thereafter. Items (1)-(5) below will be prorated at Closing utilizing the information known
at that time. A post-closing “true- up” shall take place within one hundred eighty (180) days of the Closing Date to
adjust the prorations of said items (1), (3), (4) and (5), if necessary, and within a reasonable time to adjust the proration of
said item (2), if necessary. Such prorated items shall include, without limitation, the following:

 

(1)         rents,
if any, based on the amount collected for the current month and all prepaid rents for subsequent months. The term “rents”
as used in this Agreement includes all payments due and payable by, or received from, tenants under the Leases other than refundable
deposits, application fees, reimbursement payments, and late charges (which refundable deposits shall be treated as set forth in
Section 4.4(b)(1), but such other amounts shall be retained by Seller);

 

(2)         ad
valorem taxes and assessments levied against the Property (including personal property taxes on the Tangible Personal Property),
which shall be prorated as set forth in Section 4.4(b)(2) hereof;

 

(3)         payments
or amounts due under the Designated Service Contracts. Purchaser shall retain any bonus, rebates, concession or commission payments
received by Purchaser on or after Closing. Seller shall retain any signing bonus or similar payments received by Seller before
Closing;

 

(4)         gas,
electricity, water and other utility charges for which Seller is liable, if any, such charges to be apportioned at Closing on the
basis of the most recent meter reading occurring prior to Closing or the most recent utility bill received by Seller, as applicable,
including, without limitation, water charges not yet due and payable to such utility provider at Closing, but which amounts are
customarily billed directly to Seller and reimbursed by tenants and

 

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(5)         any
other operating expenses or other items pertaining to the Property which are customarily prorated between a purchaser and a seller
in comparable commercial transactions in the area in which the Property is located.

 

(b)          Notwithstanding
anything contained in the foregoing provisions:

 

(1)         At
Closing, (A) Seller shall credit to Purchaser the amount of such unforfeited resident deposits as shown on the Rent Roll, and (B)
Purchaser shall credit to the account of Seller all refundable cash or other deposits posted with utility companies serving the
Property, or, at either party’s option, Purchaser shall contract directly with the utility companies and Seller shall be
entitled to receive and retain such refundable cash and deposits; provided that Purchaser and Seller will cooperate so that utility
service to the Property is not interrupted. For the purposes of this Section 4.4(b)(1) the term “unforfeited resident deposits”
means any refundable resident deposits which are held by Seller and which Seller has not applied against delinquent rents, property
damage or otherwise in accordance with the applicable Lease prior to the Closing Date.

 

(2)         Any
ad valorem taxes for the current year paid at or prior to Closing shall be prorated based upon the amounts actually paid for the
current tax year. If all taxes and assessments for the current tax year have not been paid before Closing, then Seller shall be
charged at Closing an amount equal to that portion of such taxes and assessments which relates to the period before Closing and
Purchaser shall pay the taxes and assessments prior to their becoming delinquent. Any such apportionment made with respect to a
tax year for which the tax rate or assessed valuation, or both, have not yet been fixed shall be based upon the tax rate and/or
assessed valuation last fixed. To the extent that the actual taxes and assessments for the current tax year differ from the amount
apportioned at Closing, the parties shall make all necessary adjustments by appropriate payments between themselves following Closing
promptly following the availability of the final tax bills.

 

(3)         Gas,
electricity, water and other utility charges referred to in Section 4.4(a)(4) above which are payable by any tenant directly to
a third party shall not be apportioned hereunder, and Purchaser shall accept title subject to any of such charges which are unpaid
and Purchaser shall look solely to the responsible tenant for the payment of the same.

 

(4)         As
to gas, electricity and other utility charges referred to in Section 4.4(a)(4) above, Seller may on notice to Purchaser elect to
pay one or more of all of such items accrued to the Closing Date directly to the person or entity entitled thereto, and to the
extent Seller so elects and the utility company agrees to look solely to Seller for payment of any such item accrued prior to the
Closing Date, such item shall not be apportioned hereunder, and Seller’s obligation to pay such item with respect to the
period prior to Closing directly in such case shall survive the Closing.

 

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(5)         The
Tangible Personal Property is included in this sale, without further charge.

 

(6)         Unpaid
and delinquent rent and reimbursements collected by Seller and Purchaser after the Closing Date shall be delivered as follows:
(A) if Seller collects any unpaid or delinquent rent or reimbursements for the Property, Seller shall, promptly after the receipt
thereof, deliver to Purchaser any such rent or reimbursement which Purchaser is entitled to hereunder relating to the Closing Date
and any period thereafter, and (B) if Purchaser collects any unpaid or delinquent rent or reimbursement from the Property, Purchaser
shall, promptly after the receipt thereof, deliver to Seller any such rent or reimbursement which Seller is entitled to hereunder
relating to the period prior to the Closing Date. Seller and Purchaser agree that all rent and reimbursements received by Seller
or Purchaser after the Closing shall be applied first to rentals and reimbursements owing to Purchaser for its period of ownership
(whether delinquent or otherwise) and then to delinquent rentals and reimbursements, if any, owed to Seller for its period of ownership.
For a period of one hundred eighty (180) days following the Closing Date, Purchaser will use commercially reasonable efforts to
collect all rents and reimbursements in the usual course of Purchaser’s operation of the Property, but Purchaser will not
be obligated to institute any lawsuit or other collection procedures to collect delinquent rents or reimbursements. Notwithstanding
the foregoing, Seller shall have the sole right to collect rents and reimbursements, if any, which are unpaid or delinquent as
of Closing, from tenants who are no longer in occupancy as of the Closing (and Purchaser shall promptly deliver any such rents
and reimbursements to Seller if received by Purchaser after Closing).

 

(7)         The
provisions of this Section 4.4 shall survive Closing.

 

4.5          Closing
Costs. Seller shall pay (a) the fees of any counsel representing it in connection with this transaction, (b) the cost of
the Existing Survey provided by Seller (but not the cost of any update or revision thereto), (c) the costs of curing all title
objections for which Seller is responsible under this Agreement, (d) the cost of the Title Commitment and the premium for the Owner’s
Title Policy (but excluding any endorsements thereto), (e) the costs of recording all mortgage cancellations, (f) the costs of
recording the Deed and the Condominium Conversion Agreement, (g) any amounts owed to Broker (as defined in Section 8.1) payable
by Seller, and (h) one half of Escrow Agent’s escrow fee. Purchaser shall pay (A) the fees of any counsel representing Purchaser
in connection with this transaction, (B) the premium for any lender’s title insurance policy in connection with Purchaser’s
acquisition financing, if any, and any endorsements to the Title Policy or such lender’s title policy (unless pursuant to
Section 2.3 Seller expressly agrees in writing to pay for the costs of endorsements necessary to cure any title objections of Purchaser),
(C) the cost of Purchaser’s inspections of the Property, (D) the cost of the Updated Survey, including updates or revisions
necessary to comply with the requirements of Purchaser or its lender, (E) any mortgage or intangibles tax in connection with Purchaser’s
acquisition financing, if any, (F) any State of Tennessee transfer taxes, and (G) one half of Escrow Agent’s escrow fee.
All other costs and expenses incident to this transaction and the closing thereof shall be paid by the party incurring same.

 

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4.6          Conditions
Precedent to Obligation of Purchaser. The obligation of Purchaser to consummate the transaction hereunder shall be subject
to the fulfillment on or before the Closing Date (or such earlier time as otherwise required hereby) of all of the following conditions,
any or all of which may be waived by Purchaser in its sole discretion:

 

(a)          Seller
shall have performed all of its material obligations and material covenants hereunder and shall have delivered to Purchaser all
of the items required to be delivered to Purchaser by Seller or Seller’s agents pursuant to the terms of this Agreement,
including, but not limited to, those provided in Section 4.2;

 

(b)          All
of the representations and warranties of Seller contained in this Agreement shall be true and correct in all material respects
as of the Closing Date (with appropriate modifications permitted under this Agreement or not adverse to Purchaser);

 

(c)          The
Title Company has irrevocably committed to issue an ALTA Owner’s Policy of Title Insurance (subject to payment of the portion
of the premium, if any, that Purchaser is required to pay hereunder) with liability in an amount equal to the Purchase Price (the
“Title Policy”) showing the Real Property vested in Purchaser (or Purchaser’s permitted assignee or nominee)
subject only to the Permitted Exceptions, the standard conditions set forth on the policy jacket, and title exceptions, if any,
resulting from documents recorded by Purchaser at closing; provided, however, if the Title Company is unwilling to irrevocably
commit to issue such Policy for general reasons that are not directly related to the particular facts and circumstances of the
transaction contemplated by this Agreement, then Purchaser shall accept such Policy from any other nationally recognized title
insurance company licensed to do business in Tennessee chosen by Seller and reasonably acceptable to Purchaser. For avoidance of
doubt, the issuance of a signed marked title binder or a pro forma title policy by the Title Company shall constitute the satisfaction
of the irrevocable commitment condition set forth in this Section 4.6(c); and

 

(d)          Purchaser
shall have received an Updated Survey sufficient to cause the Title Company to omit the standard survey exception from the Title
Policy, it being acknowledged that the Title Policy may contain an exception for specific matters shown on the Updated Survey (subject
to Purchaser’s right to object to such specific matters, if applicable, pursuant to Section 2.5, including the time periods
set forth therein); provided, however, notwithstanding anything contained herein to the contrary, Purchaser shall have no right
to terminate this Agreement pursuant to the final paragraph of this Section 4.6 if the failure of this condition precedent is the
result of Purchaser’s failure to use commercially reasonable efforts to obtain the Updated Survey. Purchaser covenants to
order the Updated Survey, from the surveyor who prepared the Existing Survey, within two (2) business days of its receipt of the
Title Commitment.

 

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In the event any of the foregoing
conditions has not been satisfied by the Closing Date, Purchaser shall have the right to terminate this Agreement by written notice
given to Seller on the Closing Date, whereupon Escrow Agent shall promptly disburse the Earnest Money to Purchaser and the parties
shall have no further rights, duties or obligations hereunder, other than those which are expressly provided herein to survive
the termination of this Agreement; provided, however, that if any of the foregoing conditions has not been satisfied due to a default
by Purchaser or Seller hereunder, then Purchaser’s and Seller’s respective rights, remedies and obligations shall instead
be determined in accordance with Article 6.

 

4.7          Conditions
Precedent to Obligation of Seller. The obligation of Seller to consummate the transaction hereunder shall be subject to
the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may be waived by Seller in
its sole discretion:

 

(a)          Purchaser
shall have delivered to Escrow Agent the Purchase Price as provided in Section 4.3(a).

 

(b)          Purchaser
shall have delivered to Seller all of the material items required to be delivered to Seller by Purchaser or Purchaser’s agents
pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 4.3.

 

(c)          All
of the representations and warranties of Purchaser contained in this Agreement shall be true and correct in all material respects
as of the Closing Date (with appropriate modifications permitted under this Agreement or not adverse to Seller).

 

In the event
any of the foregoing conditions has not been satisfied by the Closing Date, Seller shall have the right to terminate this Agreement
by written notice given to Purchaser on the Closing Date, whereupon Escrow Agent shall promptly pay the Earnest Money to Seller
and the parties shall have no further rights, duties or obligations hereunder, other than those which are expressly provided herein
to survive a termination of this Agreement; provided, however, if any of the foregoing conditions has not been satisfied due to
a default by Purchaser or Seller hereunder, then Purchaser’s and Seller’s respective rights, remedies and obligations
shall instead be determined in accordance with Article 6.

 

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4.8          Tax
Deferred Exchange. Seller and/or Purchaser may desire to consummate the conveyance of the Property as part of a tax deferred
exchange for the benefit of Seller and/or Purchaser, as applicable, pursuant to Section 1031 of the Internal Revenue Code. Seller
and/or Purchaser may assign all of its or their respective contract rights and obligations hereunder to an exchange accommodation
titleholder or a qualified intermediary, as part of, and in furtherance of, such tax deferred exchange. The parties agree to assist
and cooperate in such exchange for the benefit of the other at no cost, expense or liability and without reduction or alteration
of the rights of the parties under this Agreement; and each party further agrees to execute any and all documents (subject to the
reasonable approval of legal counsel) as are necessary in connection with such exchange at the electing party’s sole expense
provided that the other party shall not be required to undertake any material liability or obligation in so doing and provided
that such exchange does not extend the Closing Date. As part of such exchange, Seller shall convey the Property directly to Purchaser
or is accommodation title holder and Purchaser shall not be obligated to acquire or convey any other property as part of such exchange.
Each party shall indemnify, hold harmless and defend the other from and against any and all claims, demands, causes of action,
liabilities, losses, costs, damages and expenses (including reasonable attorneys’ fees and expenses and court costs incurred
in defending any such claim or in enforcing this indemnity) that may be incurred by the other and arising out of such party’s
participation in such exchange, which obligation shall survive the Closing. Notwithstanding the foregoing, should either party
fail to effect a tax deferred exchange as contemplated in this Section 4.8 for any reason, then the sale or acquisition, as applicable,
of the Property shall be consummated in accordance with terms and conditions of this Agreement just as though the provisions of
this Section 4.8 had been omitted from this Agreement, except that the other party shall be reimbursed and indemnified from resulting
costs and expenses as provided in this Section. Nothing contained in this Section 4.8 shall release either party of any of its
obligations or liabilities under this Agreement, whether accruing before, at or after Closing, nor shall anything contained in
this Section 4.8 impose any liability or obligation on any party with respect to the tax consequences of this transaction to the
other party.

 

ARTICLE 5

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

5.1          Representations
and Warranties of Seller. Each of Stonehenge, BR1 and BR2, jointly and severally, hereby makes the following representations
and warranties to Purchaser as of the Effective Date. Such representations and warranties are subject to (i) those matters, if
any, disclosed in Seller’s disclosure statement attached hereto as Schedule 5.1 and made a part hereof by this reference
(“Seller’s Disclosure Statement”) and (ii) the Permitted Exceptions.

 

(a)          Organization
and Authority.

 

(i)          Stonehenge
has been duly organized and is validly existing and in good standing as a limited liability company under the laws of the State
of Tennessee. Stonehenge has the full right and authority to enter into this Agreement and to transfer its interest in the Property
pursuant hereto and to consummate or cause to be consummated the transactions contemplated herein. The person signing this Agreement
on behalf of Stonehenge is authorized to do so. Neither the execution and delivery of this Agreement nor any other documents executed
and delivered, or to be executed and delivered, by Stonehenge in connection with the transactions described herein, will violate
any provision of Stonehenge’s organizational documents or of any agreements, regulations, or laws to or by which Stonehenge
is bound. This Agreement has been, and each document to be executed and delivered by Stonehenge at Closing shall have been as of
Closing, duly authorized, executed and delivered by Stonehenge, is a valid and binding obligation of Stonehenge and is enforceable
against Stonehenge in accordance with its terms subject to (A) applicable bankruptcy, insolvency, reorganization, moratorium, and
other laws affecting the rights of creditors generally; and (B) the exercise of judicial discretion in accordance with general
principles of equity.

 

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(ii)         BR1
has been duly organized and is validly existing and in good standing as a limited liability company under the laws of the State
of Delaware. BR1 has the full right and authority to enter into this Agreement and to transfer its interest in the Property pursuant
hereto and to consummate or cause to be consummated the transactions contemplated herein. The person signing this Agreement on
behalf of BR1 is authorized to do so. Neither the execution and delivery of this Agreement nor any other documents executed and
delivered, or to be executed and delivered, by BR1 in connection with the transactions described herein, will violate any provision
of BR1’s organizational documents or of any agreements, regulations, or laws to or by which BR1 is bound. This Agreement
has been, and each document to be executed and delivered by BR1 at Closing shall have been as of Closing, duly authorized, executed
and delivered by BR1, is a valid and binding obligation of Stonehenge and is enforceable against BR1 in accordance with its terms
subject to (A) applicable bankruptcy, insolvency, reorganization, moratorium, and other laws affecting the rights of creditors
generally; and (B) the exercise of judicial discretion in accordance with general principles of equity.

 

(iii)        BR2
has been duly organized and is validly existing and in good standing as a limited liability company under the laws of the State
of Delaware. BR2 has the full right and authority to enter into this Agreement and to transfer its interest in the Property pursuant
hereto and to consummate or cause to be consummated the transactions contemplated herein. The person signing this Agreement on
behalf of BR2 is authorized to do so. Neither the execution and delivery of this Agreement nor any other documents executed and
delivered, or to be executed and delivered, by BR2 in connection with the transactions described herein, will violate any provision
of BR2’s organizational documents or of any agreements, regulations, or laws to or by which BR2 is bound. This Agreement
has been, and each document to be executed and delivered by BR2 at Closing shall have been as of Closing, duly authorized, executed
and delivered by BR2, is a valid and binding obligation of Stonehenge and is enforceable against BR2 in accordance with its terms
subject to (A) applicable bankruptcy, insolvency, reorganization, moratorium, and other laws affecting the rights of creditors
generally; and (B) the exercise of judicial discretion in accordance with general principles of equity.

 

(b)          Pending
Actions. Except as set forth on Schedule 5.1, to the best of Seller’s knowledge, Seller has not received written
notice of and has no knowledge of any pending or threatened (in writing) action, suit, arbitration, administrative or judicial
proceeding, or unsatisfied order or judgment against Seller which pertains to the Property or the transaction contemplated by this
Agreement, which in any case, if adversely determined, would have a material adverse effect on the use, operation, or the value
of the Property or Seller’s ability to consummate the transaction contemplated herein.

 

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(c)          Condemnation.
To the best of Seller’s knowledge, Seller has not received written notice of and has no knowledge of any threatened (in writing)
or pending condemnation proceedings relating to the Property.

 

(d)          Environmental
Matters. To the best of Seller’s knowledge, all environmental reports related to the Property that Seller has in
its possession or control have been or will be delivered to Purchaser as part of the Seller’s Deliveries. To the best of
Seller’s knowledge, Seller has received no written notice from any governmental authority asserting any violation of Environmental
Laws related to the Property which has not been cured or corrected. The term “Environmental Laws” includes without
limitation the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation, and Liability
Act and other federal laws governing the environment together with their implementing regulations applicable to the Property, and
all applicable state, regional, county, municipal and other local laws, regulations and ordinances that are equivalent or similar
to the federal laws recited above or that purport to regulate hazardous or toxic substances and materials. The term “Hazardous
Materials” includes petroleum (including crude oil or any fraction thereof) and any substance, material, waste, pollutant
or contaminant listed or defined as hazardous or toxic under any Environmental Laws, in any case at levels or concentrations requiring
monitoring, reporting, remediation or removal in accordance with Environmental Laws.

 

(e)          Service
Contracts. There are no service, supply, equipment rental or similar agreements (each a “Service Contract”
and collectively “Service Contracts”) to which Seller is a party or otherwise bound affecting the Property other
than those set forth in Schedule 5.1(e). The Service Contracts have not been amended or modified, except as set forth on
Schedule 5.1(e). True and complete copies of the Service Contracts have been or will be delivered to Purchaser as part of Seller’s
Deliveries. To Seller’s knowledge, Seller is not in default with respect to its obligations or liabilities under any of the
Service Contracts.

 

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(f)          Rent
Roll. The Rent Roll is a copy of the Rent Roll that Seller relies upon and uses in the ordinary course of its business,
and is true and correct in all material respects as of the date set forth thereon. The copies of Leases and other agreements with
tenants under the Leases (the “Tenants”) delivered or furnished and made available by Seller to Purchaser pursuant
to this Agreement constitute all of the Leases to which Seller is a party or is otherwise bound relating to the Property. In respect
of each of the Leases, to Seller’s knowledge, except as otherwise set forth in the Rent Roll (or delinquency report attached
thereto), the following information is true and correct: (i) each of the Leases is in full force and effect and has not been amended
except as disclosed to Purchaser; (ii) Seller has not received written notice of any material default by Seller under any of the
Leases; (iii) the Rent Roll discloses all refundable security deposits made by each of the Tenants under the Leases; (iv) no Tenant
under the Leases is entitled to any rebate or concession which is not disclosed on the Rent Roll; and (v) there are no written
or oral leases affecting the Property other than those listed in the Rent Roll. To Seller’s knowledge, none of Seller’s
interests in the Leases or any of the rents or amounts payable thereunder have been assigned, pledged, hypothecated or otherwise
encumbered other than those in connection with the existing first mortgage, if any, affecting the Property. Notwithstanding anything
in this Agreement to the contrary, Seller does not covenant or represent that Tenants under Leases will not be in default under
their respective Leases, and the existence of any default by any Tenant under its Lease shall not affect the obligations of Purchaser
hereunder.

 

(g)          Property
Violations. Seller has received no written notice that the Property, and the use and operation thereof, are not in compliance
with all applicable municipal and governmental laws, ordinances, regulations, licenses, permits and authorizations.

 

(h)        
Seller’s Delive ries . To the best of Seller’s knowledge, the Seller’s Deliveries, which may be copies
and not originals, are true, correct and complete in all material respects.

 

(i)           Patriot
Act and Related Matters.

 

(i)          Seller
has been in compliance in all material respects for the last five (5) years and will continue to be in compliance in all
material respects through the Closing Date with (A) the PATRIOT Act, Pub. L. No. 107-56, the Bank Secrecy Act, 31
U.S.C. § 5311 et seq., the Money Laundering Control Act of 1986, and laws relating to the prevention and
detection of money laundering in 18 U.S.C. §§ 1956 and 1957; (B) the Export Administration Act (50 U.S.C.
§§ 2401-2420), the International Emergency Economic Powers Act (50 U.S.C. § 1701, et seq.), the Arms
Export Control Act (22 U.S.C. §§ 2778-2994), the Trading With The Enemy Act (50 U.S.C. app. §§ 1-44), and
13 U.S.C. Chapter 9; (C) the Foreign Asset Control Regulations contained in 31 C.F.R., Subtitle B, Chapter V; and (D) any
other civil or criminal federal or state laws, regulations, or orders of similar import.

 

(ii)         None
of the Seller Parties (as defined below) is now or shall be at any time until after the Closing Date be a person who has been listed
on (A) the Specially Designated Nationals and Blocked Persons List contained in Appendix A to 31 C.F.R., Subtitle B, Part V; (B)
the Denied Persons List, the Entity List, and the Unverified Parties List maintained by the United States Department of Commerce;
(C) the List of Terrorists and List of Debarred Parties maintained by the United States Department of State; and (D) any other
similar list maintained by any federal or state agency or pursuant to any Executive Order of the President of the United States
of America. “Seller Parties” means, collectively, (1) Seller, (2) its executive officers, directors, managers,
agents and employees, (3) its shareholders, members, partners, and other investors, or any other person that owns or controls Seller,
and (4) any entity on whose behalf Seller acts.

 

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(j)          Consents.
Seller has obtained all consents and permissions (if any) related to the transactions herein contemplated and required under any
covenant, agreement, encumbrance, law or regulation by which Seller is bound.

 

(k)          Financial
Status. Seller is solvent, has not made a general assignment for the benefit of its creditors, and has not admitted in
writing its inability to pay its debts as they become due, nor has Seller filed, nor does it contemplate the filing of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or any other proceeding for the relief of debtors in general,
nor has any such proceeding been instituted by or against Seller, nor is any such proceeding to Seller’s knowledge threatened
or contemplated.

 

(l)           ERISA.
Seller is not (i) an “employee benefit plan” within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), (ii) a “governmental plan” under Section 3(32) of ERISA,
(iii) any plan described in Section 4975 of the Internal Revenue Code, or (iv) an entity whose underlying assets include “plan
assets” by reason of the application of the ERISA “plan assets” regulation (29 C.F.R. 2510.3-101), as modified
by Section 3(42) of ERISA.

 

(m)          TIC
Agreement. The Tenancy in Common Agreement dated December 9, 2014 among Stonehenge, BR1 and BR2 (the “TIC Agreement”)
is in full force and effect. None of Stonehenge, BR1 or BR2 has received any uncured notice of default from either of the other
two co-tenants under the TIC Agreement, and none of Stonehenge, BR1 or BR2 has any knowledge of any uncured and outstanding default
by either of the other two co-tenants under the Existing TIC Agreement.

 

(n)          Employees.
Seller has no employees.

 

(o)          Designated
Representatives. Todd Jackovich is a principal of Stonehenge and Patricia Anderson is a Vice President-Property Management
for Bluerock Real Estate LLC, an affiliate of BR1 and BR2.

 

(p)          Tangible
Personal Property. To Seller’s knowledge there are no liens or encumbrances against the Tangible Personal Property
other than those in connection with the existing first mortgage, if any, affecting the Property.

 

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5.2           Knowledge
Defined. References to the “knowledge” of Seller shall refer only to the actual knowledge, without investigation
or inquiry, on the Effective Date and on the Closing Date, as the case may be, of any of the Designated Representatives (as hereinafter
defined) of Seller, and shall not be construed, by imputation or otherwise, to refer to the knowledge of any property manager or
broker, or to any other officer, agent, manager, representative or employee of Seller or any affiliate of Seller, or to impose
upon such Designated Representatives any duty to investigate the matter to which such actual knowledge, or the absence thereof,
pertains. As used herein, the term “Designated Representatives” shall refer to the following persons: Todd Jackovich
who is a principal of Stonehenge; and Patricia Anderson, who is a Vice President- Property Management for Bluerock Real Estate
LLC, an affiliate of BR1 and BR2. In no event shall Purchaser have any personal claim against the above-named individuals as a
result of the reference thereto in this Section 5.2 and Purchaser waives and releases all such claims which Purchaser now has or
may later acquire against them in connection with the transactions contemplated in this Agreement.

 

5.3         
Survival of Seller’s Representation s and Warr anties . The representations and warranties of Seller set forth in
Section 5.1, as updated by Seller’s Closing Certificate, shall survive Closing for a period of six (6) months after Closing
(the “Survival Period”) unless a written claim in respect thereof has been delivered by Purchaser to Seller prior to
the expiration of the Survival Period (in which case the relevant representations and warranties shall survive as to the pending
claim until its final resolution); provided, however, that Seller’s representations in Section 5.1(i) shall survive for the
applicable statute of limitations. Except with respect to a pre- closing misrepresentation by Seller for which the Agreement is
terminated under Section 6.2, in which event Section 6.2 shall apply, no claim for a breach of any representation or warranty of
Seller shall be actionable or payable (a) if the breach in question results from or is based on a condition, state of facts or
other matter which was known to Purchaser prior to Closing, (b) unless the valid claims for all such breaches collectively aggregate
Fifty Thousand and No/100 Dollars ($50,000.00) or more, in which event the full amount of such valid claims shall be actionable,
up to but not exceeding the amount of the Cap (as defined below), and (c) unless written notice containing a description of the
specific nature of such breach shall have been given by Purchaser to Seller prior to the expiration of the Survival Period and
an action shall have been commenced by Purchaser against Seller within forty-five (45) days after the expiration of the Survival
Period. In the event of any breach by Seller of its representations and warranties contained herein which Purchaser first discovers
after Closing and provides timely notice as aforesaid, Seller shall indemnify and hold Purchaser harmless from and against any
and all loss, damage, cost or expense resulting therefrom up to but not exceeding the Cap. Seller shall not be liable to Purchaser
to the extent Purchaser’s claim is satisfied from any insurance policy, Service Contract or Lease, and such amounts shall
not be applied toward the Cap. As used herein, the term “Cap” shall mean the total aggregate amount of Seven
Hundred Fifty Thousand and No/100 Dollars ($750,000.00). In no event shall Seller’s aggregate liability to Purchaser for
any and all breaches of any representation or warranty of Seller in this Agreement or Seller’s Closing Certificate exceed
the amount of the Cap, and Purchaser hereby waives and disclaims any right to damages or compensation for any and all such breaches
in excess of the Cap.

 

5.4          Covenants
of Seller. Seller hereby covenants with Purchaser, from the Effective Date until the Closing or earlier termination of
this Agreement, as follows:

 

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(a)          Operation
of Property. Seller shall operate and maintain the Property in a manner generally consistent with the manner in which Seller
has operated and maintained the Property prior to the date hereof and consistent with the operational standard of an institutional
owner of similarly situated multi-family projects within the greater Nashville, Tennessee market. Seller shall have no obligation
to make capital improvements at the Property. Upon request from time to time, Seller shall provide Purchaser with an updated Rent
Roll and reports detailing monthly rental collections, occupancy, vacancies, concessions and incentives. For any apartment unit
at the Property that shall have become vacant more than five (5) days prior to the Closing Date, Seller shall either (i) restore
such unit to “rent ready” condition prior to the Closing Date, or (ii) at Closing, credit Purchaser the sum of $500.00
for each such vacant apartment unit against the Purchase Price.

 

(b)          Execution
of New Leases and Renewals. Seller shall continue its efforts in its ordinary course of business to negotiate new leases
for unrented apartment units in the Improvements and/or Lease renewals for rented apartment units in the Improvements and shall
maintain an advertising and marketing program for apartment units in the Improvements consistent with Seller’s past practices
at the Property. Except for amendments or leases entered into pursuant to renewal notices mailed prior to the execution of this
Agreement (a true and complete schedule of which is attached hereto as Schedule 5.4(b)), unless Purchaser agrees otherwise
in writing, any new leases or renewals of existing leases for such apartment units entered into by Seller after the Effective Date
until the Closing or earlier termination of this Agreement shall be on Seller’s standard apartment lease form for the Property,
and shall be for terms of no less than six (6) months and no more than thirteen (13) months. Prior to the expiration of the Inspection
Period, Seller shall retain the discretion to set rent rates, concessions and other terms of occupancy, provided Seller shall only
enter into new leases or renewals in the ordinary course of business taking into account Seller’s then-current good faith
evaluation of market conditions. After the expiration of the Inspection Period, any new leases or renewals of existing leases by
Seller shall be on terms consistent with the leasing guidelines attached hereto as Schedule 5.4(b) and incorporated herein
by reference. Each such new lease or renewal entered into by Seller in accordance with the terms hereof shall constitute a “Lease”
for purposes of this Agreement.

 

(c)          Maintenance
of Insurance. Seller shall keep the Improvements insured against loss or damage (including rental loss) by fire and all
risks covered by the Seller’s insurance that is currently in force, provided that Seller may make adjustments in Seller’s
insurance coverage for the Property which are consistent with Seller’s general insurance program for Seller’s other
apartment properties as in effect from time to time. Seller, upon request, shall provide Purchaser an insurance certificate confirming
the amounts and types of coverages upon the Property.

 

(d)          Enforcement
of Existing Leases. Seller shall perform the landlord’s material obligations to the tenants under the Leases and
enforce the material obligations of the tenants under the Leases, in each case in accordance with the current management standards
of Seller for its apartment properties.

 

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(e)          Provide
Copies of Notices. Seller shall furnish Purchaser with copies of all written notices received by Seller from any governmental
authority of any violation of any law, statute, ordinance, regulation or order of any governmental or public authority relating
to the Property, within ten (10) business days following Seller’s receipt thereof, but, if received by such date, in no event
later than two (2) business days prior to the Closing Date.

 

(f)          Removal
and Replacement of Tangible Personal Property. Seller shall not remove any Tangible Personal Property except as may be
required for necessary repair or replacement (which repair and replacement shall be of equal quality and quantity as existed as
of the time of the removal).

 

(g)          Execution
of New Contracts. Seller shall not, without Purchaser’s prior written consent in each instance (which consent shall
not be unreasonably withheld or delayed during the Inspection Period but which thereafter may be withheld in Purchaser’s
sole discretion), materially amend or terminate any of the Designated Service Contracts, or enter into any contract or agreement
that will be an obligation affecting the Property or binding on Purchaser after the Closing, except that (i) Seller may enter into,
amend or enforce (including enforcement by termination) Service Contracts in the ordinary course of business as reasonably necessary
for the continued operation and maintenance of the Property, provided any new Service Contracts are terminable without cause or
penalty on thirty (30) days’ notice, and (ii) Seller may conduct leasing activity as provided in Section 5.4(b) hereof.

 

(h)          Management
Contracts. As of Closing all property management contracts (if any) pertaining to the Property shall have been terminated.

 

5.5          Representations
and Warranties of Purchaser. Purchaser hereby makes the following representations and warranties to Seller as of the Effective
Date:

 

(a)          Organization
and Authority. Purchaser has been duly organized and is validly existing as a corporation under the laws of the State of
Delaware. Purchaser has the full right and authority to enter into this Agreement and to purchase the Property pursuant hereto
and to consummate or cause to be consummated the transactions contemplated herein. The person signing this Agreement on behalf
of Purchaser is authorized to do so. Neither the execution and delivery of this Agreement nor any other documents executed and
delivered, or to be executed and delivered, by Purchaser in connection with the transactions described herein, will violate any
provision of Purchaser’s organizational documents or of any agreements, regulations, or laws to or by which Purchaser is
bound. This Agreement has been duly authorized, executed and delivered by Purchaser, is a valid and binding obligation of Purchaser
and is enforceable against Purchaser in accordance with its terms subject to (i) applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws affecting the rights of creditors generally; and (ii) the exercise of judicial discretion in accordance
with general principles of equity.

 

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(b)          Consents.
Purchaser has obtained all consents and permissions (if any) related to the transactions herein contemplated and required under
any covenant, agreement, encumbrance, law or regulation by which Purchaser is bound.

 

(c)          Pending
Actions. There is no action, suit, arbitration, administrative or judicial administrative proceeding, or unsatisfied order
or judgment pending or threatened against Purchaser, which, if adversely determined, could individually or in the aggregate have
a material adverse effect on Purchaser’s ability to consummate the transaction contemplated herein.

 

(d)          Financial
Status. Purchaser is solvent, has not made a general assignment for the benefit of its creditors, and has not admitted
in writing its inability to pay its debts as they become due, nor has Purchaser filed, nor does it contemplate the filing of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or any other proceeding for the relief of debtors
in general, nor has any such proceeding been instituted by or against Purchaser, nor is any such proceeding to Purchaser’s
knowledge threatened or contemplated. The purchase of the Property will not render Purchaser insolvent.

 

(e)          ERISA.
Purchaser is not (i) an “employee benefit plan” within the meaning of Section 3(3) of ERISA, (ii) a “governmental
plan” under Section 3(32) of ERISA, (iii) any plan described in Section 4975 of the Internal Revenue Code, or (iv) an entity
whose underlying assets include “plan assets” by reason of the application of the ERISA “plan assets” regulation
(29 C.F.R. 2510.3-101), as modified by Section 3(42) of ERISA.

 

(f)          Patriot
Act and Related Matters. Purchaser hereby represents, warrants, covenants and agrees, as of the date hereof and as of the
Closing Date, as follows:

 

(i)          Purchaser
is familiar with the source of funds for the Purchase Price and represents that all such funds are and will be derived from legitimate
business activities within the United States of America and/or from loans from a banking or financial institution chartered or
organized within the United States of America.

 

(ii)         Purchaser
has been in compliance in all material respects for the last five (5) years and will continue to be in compliance in all
material respects through the Closing Date with (A) the PATRIOT Act, Pub. L. No. 107-56, the Bank Secrecy Act, 31
U.S.C. § 5311 et seq., the Money Laundering Control Act of 1986, and laws relating to the prevention and
detection of money laundering in 18 U.S.C. §§ 1956 and 1957; (B) the Export Administration Act (50 U.S.C.
§§ 2401-2420), the International Emergency Economic Powers Act (50 U.S.C.§ 1701, et seq.), the Arms
Export Control Act (22 U.S.C. §§ 2778-2994), the Trading With The Enemy Act (50 U.S.C. app. §§ 1-44), and
13 U.S.C. Chapter 9; (C) the Foreign Asset Control Regulations contained in 31 C.F.R., Subtitle B, Chapter V; and (D) any
other civil or criminal federal or state laws, regulations, or orders of similar import.

 

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(iii)        None
of the Purchaser Parties (as defined below) is now or shall be at any time until the Closing Date be a person who has been
listed on (A) the Specially Designated Nationals and Blocked Persons List contained in Appendix A to 31 C.F.R., Subtitle B,
Part V; (B) the Denied Persons List, the Entity List, and the Unverified Parties List maintained by the United States
Department of Commerce; (C) the List of Terrorists and List of Debarred Parties maintained by the United States Department of
State; and (D) any other similar list maintained by any federal or state agency or pursuant to any Executive Order of the
President of the United States of America. “Purchaser Parties” means, collectively, (1) Purchaser, (2) its
executive officers, directors, managers, agents and employees, (3) its shareholders, members, partners, and other investors,
or any other person that owns or controls Purchaser, and (4) any entity on whose behalf Purchaser acts.

 

(g)          Purchaser
Representative. Noel G. Belli is Purchaser’s acquisition officer in respect of the Property.

 

5.6          Survival
of Purchaser’s Repres entation s and W arranties. The representations and warranties of Purchaser set forth in Section
5.5 shall survive Closing for a period of six (6) months after Closing provided, however, that Purchaser’s representations
in Section 5.5(f) shall survive for the applicable statute of limitations.

 

5.7          Knowledge
Defined. References to the “knowledge” of Purchaser shall refer only to the actual knowledge, without
investigation or inquiry, on the Effective Date and on the Closing Date, as the case may be, of the Purchaser Representative
(as hereinafter defined), and shall not be construed, by imputation or otherwise, to refer to the knowledge of any property
manager or broker, or to any other officer, agent, manager, representative or employee of Purchaser or any affiliate of
Purchaser, or to impose upon such Purchaser Representative any duty to investigate the matter to which such actual knowledge,
or the absence thereof, pertains. As used herein, the term “Purchaser Representative” shall refer to the
following person: Noel G. Belli, who is the Purchaser’s acquisition officer in respect of the Property. In no event
shall Seller have any personal claim against the above-named individual as a result of the reference thereto in this Section
5.7 and Seller waives and releases all such claims which Seller now has or may later acquire against him in connection with
the transactions contemplated in this Agreement.

 

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5.8          Covenants
of Purchaser

 

(a)          Reserved.

 

(b)          “Designated
Service Contracts” means (i) those certain Service Contracts which are assignable in accordance with their terms which
Purchaser identifies by written notice delivered to Seller on or before the Inspection Date as the Service Contracts Purchaser
elects Seller to assign to Purchaser at Closing, (ii) those assignable Service Contracts regarding which Purchaser has failed to
deliver such written notice on or before the Inspection Date, and (iii) those Service Contracts (the “Must Take Service
Contracts”) attached hereto as Schedule 5.8(b) which are assignable in accordance with their terms and which may
not be terminated without cause or penalty, with thirty (30) days’ (or less) written notice. Purchaser hereby covenants with
Seller that on or before the Inspection Date, Purchaser shall deliver written notice to Seller instructing which of the assignable
Service Contracts Purchaser desires for Seller to assign to Purchaser and which it does not. If Purchaser fails to timely deliver
such notice, Purchaser shall not be in default hereunder but shall be deemed to have chosen to have all assignable Service Contracts
assigned to Purchaser, and all such Service Contracts shall be deemed part of the “Designated Service Contracts.”
If Purchaser charges any vendor approval fees that would otherwise be payable by a service provider in connection with the assignment
of any Service Contracts (such as Compliance Depot charges), Purchaser agrees to waive and release such fees. At Closing, Seller
will cause the Service Contracts which Purchaser has elected not to have assigned to Purchaser (other than the Must Take Service
Contracts), by operation of the aforesaid notice on or before the Inspection Date, to be terminated at Seller’s expense,
such termination to be effective within the time period provided for in the applicable Service Contract (or if no such time period
is provided, as promptly as practicable after the Closing Date). The provisions of this Section 5.7(b) shall survive Closing.

 

ARTICLE 6

 

DEFAULT

 

6.1          Default
by Purchaser. If the sale of the Property as contemplated hereunder is not consummated due to Purchaser’s default
hereunder, then Seller shall be entitled, as its sole and exclusive remedy for such default, to terminate this Agreement and receive
the Earnest Money as liquidated damages for the breach of this Agreement and not as a penalty, it being agreed between the parties
hereto that the actual damages to Seller in the event of such breach are impractical to ascertain and the amount of the Earnest
Money is a reasonable estimate thereof, Seller hereby expressly waiving and relinquishing any and all other remedies at law or
in equity. Seller’s right to receive the Earnest Money is intended not as a penalty, but as full liquidated damages. The
right to receive the Earnest Money as full liquidated damages is Seller’s sole and exclusive remedy in the event of default
hereunder by Purchaser, and Seller hereby waives and releases any right to (and hereby covenants that it shall not) sue Purchaser:
(a) for specific performance of this Agreement, or (b) to recover any damages of any nature or description other than or in excess
of the Earnest Money. Purchaser hereby waives and releases any right to (and hereby covenants that it shall not) sue Seller or
seek or claim a refund of the Earnest Money (or any part thereof) on the grounds it is unreasonable in amount and exceeds Seller’s
actual damages or that its retention by Seller constitutes a penalty and not agreed upon and reasonable liquidated damages. This
Section 6.1 is subject to Section 6.4 hereof.

 

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6.2          Default
by Seller. If the sale of the Property as contemplated hereunder is not consummated due to Seller’s default hereunder,
then Purchaser shall be entitled, as its sole remedy for such default, either (a) to receive the return of the Earnest Money, which
return shall operate to terminate this Agreement and release the parties from any and all liability hereunder, except that, to
the extent that such termination is the result of a failure of Seller to perform a material obligation or a material covenant under
this Agreement, Purchaser shall also be entitled to recover from Seller, and Seller shall promptly pay to Purchaser, an amount
equal to Purchaser’s actual out of pocket expenses incurred in connection with the transactions contemplated hereby in an
amount not to exceed Seventy-Five Thousand Dollars ($75,000.00), or (b) to enforce specific performance of Seller’s obligation
to execute and deliver the documents and perform its obligations relating to the Closing and the conditions at Closing set forth
in this Agreement; provided, however, that notwithstanding the foregoing, if specific performance is not available to Purchaser
due to a voluntary transfer by Seller of all or a material portion of its interest in the Property, then Purchaser shall be entitled
to seek Purchaser’s actual damages resulting from the loss of Purchaser’s bargain. In no event shall Seller be liable
for consequential, speculative, remote or punitive damages, or any other damages, and Purchaser hereby waives and releases any
right to seek or collect any such consequential, speculative, remote or punitive damages, or any damages other than Purchaser’s
actual damages as set forth in the immediately preceding sentence. Purchaser shall be deemed to have elected (a) above if Purchaser
fails to file suit for specific performance against Seller in a court having jurisdiction in the county and state in which the
Property is located, on or before forty-five (45) days following the date upon which Closing was to have occurred. This Section
6.2 shall be subject to Section

6.4 hereof.

 

6.3          Notice
of Default; Opportunity to Cure. Neither Seller nor Purchaser shall be deemed to be in default hereunder until and unless
such party has been given written notice of its failure to comply with the terms hereof and thereafter does not cure such failure
within five (5) business days after receipt of such notice; provided, however, that this Section 6.3 (a) shall not be applicable
to Purchaser’s failure to deliver the Earnest Money or any portion thereof on the dates required hereunder or to a party’s
failure to make any deliveries required of such party on the Closing Date and, accordingly, (b) shall not have the effect of extending
the Closing Date or the due date of any Earnest Money deposit hereunder.

 

6.4          Recoverable
Damages. Notwithstanding Sections 6.1 and 6.2 hereof, in no event shall the provisions of Sections 6.1 and 6.2 limit (a)
either Purchaser’s or Seller’s obligation to indemnify the other party, or the damages recoverable by the indemnified
party against the indemnifying party due to, a party’s express obligation to indemnify the other party in accordance with
this Agreement, or (b) either party’s obligation to pay costs, fees or expenses under Section 4.5 hereof, or the damages
recoverable by either party against the other party due to a party’s failure to pay such costs. In addition, if this Agreement
terminates for any reason, other than a default by Seller hereunder for which Purchaser has elected to pursue the remedy of specific
performance, and Purchaser or any party related to or affiliated with Purchaser asserts any claim or right to the Property that
would otherwise delay or prevent Seller from having clear, indefeasible, and marketable title to the Property, then Seller shall
have all rights and remedies available at law or in equity with respect to such assertion by Purchaser and any loss, damage or
other consequence suffered by Seller as a result of such assertion.

 

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ARTICLE 7

 

RISK OF LOSS

 

7.1          Damage.
Prior to Closing, the risk of loss shall remain with Seller. In the event of “damage” to the Property or any portion
thereof, then Seller shall promptly notify Purchaser thereof. In addition, if Seller determines that such damage is “major”
(as hereinafter defined), Seller shall specifically so notify Purchaser in writing. In the event of such major damage, Purchaser
may elect to proceed with the Closing (subject to the other provisions of this Agreement) or may terminate this Agreement by delivering
written notice thereof to Seller within ten (10) business days after Purchaser’s receipt of Seller’s notice respecting
the damage. If Purchaser does not specifically elect to proceed with Closing within ten (10) business days of receipt of Seller’s
notice respecting such major damage, then this Agreement shall terminate, the Earnest Money shall be returned to Purchaser and,
except for obligations of the parties which survive termination of this Agreement, the parties shall have no further obligations
hereunder. If Purchaser elects to proceed, Purchaser shall have no further right to terminate this Agreement as a result of the
damage and in such event, Seller shall assign to Purchaser at Closing all insurance proceeds (including rent loss insurance, if
any, applicable to the period from and after the Closing Date) or condemnation awards payable as a result of such damage and pay
any insurance deductible due under Seller’s insurance policy(ies). If the damage is not major, Seller shall assign to Purchaser
at Closing all insurance proceeds (including rent loss insurance, if any, applicable to the period from and after the Closing Date)
or condemnation awards payable as a result of such damage and pay any insurance deductible due under Seller’s insurance policy(ies).
In the event the damage is not major and prior to Closing sufficient insurance proceeds are not received or committed in writing
by the insurance carrier sufficient to repair any damage, Seller shall repair such damage to Purchaser’s reasonable satisfaction
by Closing or give Seller a credit at Closing in an amount sufficient to pay for the cost unpaid as of Closing for repair of the
applicable damage (i.e. to restore the Property to substantially the same condition as immediately before such casualty), such
amount to be determined by an architect or other appropriate professional selected by Seller and approved by Purchaser, such approval
not to be unreasonably withheld, conditioned or delayed. Any assignment by Seller to Purchaser of insurance proceeds respecting
loss of rental income shall be limited to that portion of such proceeds attributable to periods after Closing. In the event of
casualty or condemnation occurs between the expiration of the Inspection Period and the Closing Date which results in Major Damage,
the parties acknowledge and agree that the Closing Date may be delayed for so long as is reasonably necessary to allow the parties
sufficient time to obtain, analyze and address the items related to such casualty or condemnation, provided that such delay shall
not exceed thirty (30) days from the originally scheduled Closing Date.

 

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7.2          Definition
of Major Damage. For purposes of Section 7.1:

 

(a)          “damage”
means (i) physical damage to or destruction of all or part of the Property by reason of fire, earthquake, tornado, flood or
other casualty occurring after the Effective Date or (ii) the actual or threatened (in writing by the appropriate governmental
authority) physical taking of all or part of the Property by condemnation or by conveyance in lieu of condemnation occurring after
the Effective Date; and

 

(b)          “major”
damage refers to the following: (i) damage such that the cost of repairing or restoring the premises in question to a
condition substantially similar to that of the premises in question prior to the event of damage would in the opinion of an
architect selected by Seller and reasonably approved by Purchaser, be equal to or greater than ten percent (10%) of the
Purchase Price or that impairs access to twenty-five (25) or more residential apartment units for a period of thirty (30)
days or more after the Closing; and (ii) any condemnation or conveyance in lieu of condemnation which materially impairs the
current use or value of the Property or access to the Property from public roads or the number or utility of parking spaces
or prohibits, as a matter of applicable law, the rebuilding or repair of Improvements as they currently exist. If Purchaser
does not give notice to Seller of Purchaser’s reasons for disapproving an architect within ten (10) business days after
receipt of notice of the proposed architect containing the proposed architect’s educational background, a description
of his or her general experience and two references, then Purchaser shall be deemed to have approved the architect selected
by Seller.

 

ARTICLE 8

 

COMMISSIONS

 

8.1          Broker’s Commission. The parties acknowledge that [Jones Lang LaSalle] (“Broker”) has been retained
by and represents Seller as broker in connection with the sale of the Property by Seller to Purchaser, and is to be compensated
for its services by Seller. Seller agrees to pay Broker upon, but only upon, final consummation of the transaction contemplated
herein, a real estate brokerage commission pursuant to a separate written agreement between Seller and Broker.

 

8.2          Representation
and Indemnity. Purchaser and Seller each hereby represents and warrants to the other that it has not disclosed this Agreement
or the subject matter hereof to, and has not otherwise dealt with, any real estate broker, agent or salesman (other than Broker)
so as to create any legal right or claim in any such broker, agent or salesman (other than Broker) for a real estate commission
or similar fee or compensation with respect to the negotiation and/or consummation of this Agreement or the conveyance of the Property
by Seller to Purchaser. Purchaser and Seller shall indemnify, hold harmless and defend each other from and against any and claims
and demands for a real estate brokerage commission or similar fee or compensation arising out of any claimed dealings with the
indemnifying party and relating to this Agreement or the purchase and sale of the Property (including reasonable attorneys’
fees and expenses and court costs incurred in defending any such claim or in enforcing this indemnity).

 

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8.3          Survival.
This Article 8 shall survive the rescission, cancellation, termination or consummation of this Agreement.

 

ARTICLE 9

 

DISCLAIMERS AND WAIVERS

 

9.1          No
Reliance on Documents. EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT AND IN THE
CLOSING DOCUMENTS, SELLER MAKES NO REPRESENTATION OR WARRANTY AS TO THE TRUTH, ACCURACY OR COMPLETENESS OF ANY MATERIALS, DATA
OR INFORMATION DELIVERED BY SELLER TO PURCHASER IN CONNECTION WITH THE TRANSACTION CONTEMPLATED HEREBY. PURCHASER ACKNOWLEDGES
AND AGREES THAT ALL MATERIALS, DATA AND INFORMATION DELIVERED BY SELLER TO PURCHASER IN CONNECTION WITH THE TRANSACTION CONTEMPLATED
HEREBY ARE PROVIDED TO PURCHASER AS A CONVENIENCE ONLY AND THAT ANY RELIANCE ON OR USE OF SUCH MATERIALS, DATA OR INFORMATION BY
PURCHASER SHALL BE AT THE SOLE RISK OF PURCHASER, EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN. WITHOUT LIMITING THE GENERALITY
OF THE FOREGOING, PURCHASER ACKNOWLEDGES AND AGREES THAT (A) ANY ENVIRONMENTAL OR OTHER REPORT WITH RESPECT TO THE PROPERTY WHICH
IS DELIVERED BY SELLER TO PURCHASER SHALL BE FOR GENERAL INFORMATIONAL PURPOSES ONLY, (B) PURCHASER SHALL NOT HAVE ANY RIGHT TO
RELY ON ANY SUCH REPORT DELIVERED BY SELLER TO PURCHASER, BUT RATHER WILL RELY ON ITS OWN INSPECTIONS AND INVESTIGATIONS OF THE
PROPERTY AND ANY REPORTS COMMISSIONED BY PURCHASER WITH RESPECT THERETO, AND (C) NEITHER SELLER, NOR ANY AFFILIATE OF SELLER, NOR
THE PERSON OR ENTITY WHICH PREPARED ANY SUCH REPORT DELIVERED BY SELLER TO PURCHASER SHALL HAVE ANY LIABILITY TO PURCHASER FOR
ANY INACCURACY IN OR OMISSION FROM ANY SUCH REPORT.

 

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9.2          Disclaimers.
EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH IN THIS AGREEMENT AND IN THE CLOSING DOCUMENTS, PURCHASER
UNDERSTANDS AND AGREES THAT SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR
CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS
AS TO HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE (OTHER THAN SELLER’S LIMITED OR SPECIAL WARRANTY
OF TITLE TO BE SET FORTH IN THE DEED), ZONING, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL OR ENVIRONMENTAL CONDITION,
UTILITIES, OPERATING HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH APPLICABLE
LAWS, THE ABSENCE OR PRESENCE OF HAZARDOUS MATERIALS OR OTHER TOXIC SUBSTANCES (INCLUDING WITHOUT LIMITATION MOLD OR ANY MOLD CONDITION),
COMPLIANCE WITH ENVIRONMENTAL LAWS OR ACCESS LAWS, THE TRUTH, ACCURACY OR COMPLETENESS OF THE PROPERTY DOCUMENTS OR ANY OTHER INFORMATION
PROVIDED BY OR ON BEHALF OF SELLER TO PURCHASER, OR ANY OTHER MATTER OR THING REGARDING THE PROPERTY. PURCHASER ACKNOWLEDGES AND
AGREES THAT UPON CLOSING SELLER SHALL SELL AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE PROPERTY “AS IS, WHERE
IS, WITH ALL FAULTS”, EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT OR IN THE CLOSING DOCUMENTS. PURCHASER
HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES,
STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT LIMITATION,
PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGER OF THE PROPERTY,
OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY,
ORALLY OR IN WRITING, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR IN THE CLOSING DOCUMENTS.

 

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PURCHASER
REPRESENTS TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING
BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS PURCHASER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE
CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS MATERIALS
OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY (INCLUDING WITHOUT LIMITATION ANY MOLD OR MOLD CONDITION), OR WITH RESPECT
TO ACCESS LAWS, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR
EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH
IN THIS AGREEMENT OR IN THE CLOSING DOCUMENTS. UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT
NOT LIMITED TO, DESIGN, CONSTRUCTION DEFECTS, ADVERSE PHYSICAL OR ENVIRONMENTAL CONDITIONS, OR NONCOMPLIANCE WITH ACCESS LAWS,
MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE
WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S AND ITS PARTNERS’ RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS,
EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT OR UNDER
ANY ENVIRONMENTAL LAW), LOSSES, DAMAGES, LIABILITIES, FINES, PENALTIES (WHETHER BASED ON STRICT LIABILITY OR OTHERWISE), COSTS
AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER
MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S AND ITS PARTNERS’ RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS,
EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS,
VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING, WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS OR ACCESS LAWS) AND ANY AND ALL OTHER
ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY. THE FOREGOING SHALL NOT BE INTERPRETED TO WAIVE ANY CLAIM
OF PURCHASER WITH RESPECT TO ANY BREACH BY SELLER OF ANY EXPRESS COVENANT, REPRESENTATIONS OR WARRANTIES MADE BY SELLER IN THIS
AGREEMENT THAT EXPRESSLY SURVIVE CLOSING PURSUANT TO THE TERMS HEREOF OR IN THE CLOSING DOCUMENTS.

 

PURCHASER
AGREES THAT SHOULD ANY INVESTIGATION, CLEANUP, REMEDIATION OR REMOVAL OF HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL CONDITIONS
(INCLUDING WITHOUT LIMITATION ANY MOLD OR MOLD CONDITION) ON OR RELATED TO THE PROPERTY BE REQUIRED AFTER THE CLOSING DATE, SELLER
SHALL HAVE NO LIABILITY TO PURCHASER TO PERFORM OR PAY FOR SUCH INVESTIGATION, CLEAN-UP, REMOVAL OR REMEDIATION, AND PURCHASER
EXPRESSLY WAIVES AND RELEASES ANY CLAIM TO THE CONTRARY. PURCHASER FURTHER AGREES THAT SHOULD ANY INVESTIGATION OR CURATIVE ACTION
ON OR RELATED TO THE PROPERTY BE REQUIRED AFTER THE CLOSING DATE UNDER ANY ACCESS LAWS, SELLER SHALL HAVE NO LIABILITY TO PURCHASER
TO PERFORM OR PAY FOR SUCH INVESTIGATION OR CURATIVE ACTION AND PURCHASER EXPRESSLY WAIVES AND RELEASES ANY CLAIM TO THE CONTRARY.
THE FOREGOING SHALL NOT BE INTERPRETED TO WAIVE ANY CLAIM OF PURCHASER WITH RESPECT TO ANY BREACH BY SELLER OF ANY EXPRESS COVENANT,
REPRESENTATIONS OR WARRANTIES MADE BY SELLER IN THIS AGREEMENT THAT EXPRESSLY SURVIVE CLOSING PURSUANT TO THE TERMS HEREOF OR IN
ANY OF THE CLOSING DOCUMENTS.

 

    	35

    	 

    

 

PURCHASER
REPRESENTS AND WARRANTS THAT THE TERMS OF THE RELEASE CONTAINED HEREIN AND ITS CONSEQUENCES HAVE BEEN COMPLETELY READ AND UNDERSTOOD
BY PURCHASER, AND PURCHASER HAS HAD THE OPPORTUNITY TO CONSULT WITH, AND HAS CONSULTED WITH, LEGAL COUNSEL OF PURCHASER’S
CHOICE WITH REGARD TO THE TERMS OF THIS RELEASE. PURCHASER ACKNOWLEDGES AND WARRANTS THAT PURCHASER’S EXECUTION OF THIS RELEASE
IS FREE AND VOLUNTARY.

 

9.3          Certain
Definitions. The term “Access Laws” means the Americans With Disabilities Act, the Fair Housing Act,
the Rehabilitation Act and other federal laws and all applicable state, regional, county, municipal and other local laws, regulations
and ordinances governing access to handicapped or disabled persons or the construction or design of residential dwelling units,
places of public accommodation, or common areas which are at or on the Property.

 

9.4          Effect
and Survival of Disclaimers. Seller and Purchaser acknowledge that the provisions of this Article 9 are an integral part
of the transactions contemplated in this Agreement and a material inducement to Seller to enter into this Agreement and that Seller
would not enter into this Agreement but for the provisions of this Article 9. Seller and Purchaser agree that the provisions of
this Article 9 shall survive Closing or any termination of this Agreement.

 

ARTICLE 10

 

ESCROW AGENT

 

10.1        Investment
of Earnest Money. Escrow Agent shall invest the Earnest Money held by Escrow Agent pursuant to Purchaser’s directions
in an interest-bearing account at a commercial bank whose deposits are insured by the Federal Deposit Insurance Corporation. Escrow
Agent shall notify Seller, no later than one (1) business day after Escrow Agent’s receipt thereof, that Escrow Agent has
received any portion of the Earnest Money in immediately available funds, and is holding the same in accordance with the terms
of this Agreement. However, Escrow Agent shall invest the Earnest Money only in such accounts as will allow Escrow Agent to disburse
the Earnest Money or any portion thereof upon no more than one (1) business day’s notice.

 

10.2        Payment
on Demand. Escrow Agent shall hold the Earnest Money in escrow and shall not release the same to any person or entity except
as expressly provided herein. Upon receipt of any written certification from Seller or Purchaser claiming the Earnest Money pursuant
to the provisions of this Agreement, Escrow Agent shall promptly forward a copy thereof to the other such party (i.e., Purchaser
or Seller, whichever did not claim the Earnest Money pursuant to such notice) and, unless such other party within ten (10) days
thereafter notifies Escrow Agent of any objection to such requested disbursement of the Earnest Money in which case Escrow Agent
shall retain the Earnest Money subject to Section 10.4 below, Escrow Agent shall disburse the Earnest Money to the party demanding
the same and shall thereupon be released and discharged from any further duty or obligation hereunder. Notwithstanding the foregoing,
Escrow Agent shall promptly (without the necessity of any notice to Seller and notwithstanding any objection that Seller may raise)
deliver the Earnest Money to Purchaser upon demand made at any time prior to the expiration of the Inspection Period.

 

    	36

    	 

    

 

10.3        Exculpation
of Escrow Agent. It is agreed that the duties of Escrow Agent are herein specifically provided and are purely ministerial
in nature, and that Escrow Agent shall incur no liability whatsoever except for its misconduct or negligence, so long as Escrow
Agent is acting in good faith. Except in the event of Escrow Agent’s willful misconduct or gross negligence, Seller and Purchaser
do each hereby release Escrow Agent from any liability for any error of judgment or for any act done or omitted to be done by Escrow
Agent in the good faith performance of its duties hereunder and do each hereby indemnify Escrow Agent against, and agree to hold,
save, and defend Escrow Agent harmless from, any costs, liabilities, and expenses incurred by Escrow Agent in serving as Escrow
Agent hereunder and in faithfully discharging its duties and obligations hereunder. Seller and Purchaser are aware the Federal
Deposit Insurance Corporation (FDIC) coverages apply to a maximum amount of Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00)
per depositor (as may be modified by the FDIC from time to time). Further, Seller and Purchaser do not and will not hold Escrow
Agent liable for any loss occurring which arises from bank failure or error, insolvency or suspension, or a situation or event
which falls under the FDIC coverages.

 

10.4        Stakeholder.
Escrow Agent is acting as a stakeholder only with respect to the Earnest Money. If there is any dispute as to whether Escrow
Agent is obligated to deliver the Earnest Money or as to whom the Earnest Money is to be delivered, Escrow Agent shall refuse to
make any delivery and shall continue to hold the Earnest Money until receipt by Escrow Agent of an authorization in writing, signed
by Seller and Purchaser, directing the disposition of the Earnest Money, or, in the absence of such written authorization, until
final determination of the rights of the parties in an appropriate judicial proceeding. If such written authorization is not given,
or a proceeding for such determination is not begun, within thirty (30) days of notice to Escrow Agent of such dispute, Escrow
Agent may bring an appropriate action or proceeding for leave to deposit the Earnest Money in a court of competent jurisdiction
located in the Nashville, Tennessee metropolitan area pending such determination. Escrow Agent shall be reimbursed for all costs
and expenses of such action or proceeding, including, without limitation, reasonable attorneys’ fees and disbursements, by
the party determined not to be entitled to the Earnest Money. Upon making delivery of the Earnest Money in any of the manners herein
provided, Escrow Agent shall have no further liability or obligation hereunder.

 

10.5        Interest.
All interest and other income earned on the Earnest Money deposited with Escrow Agent hereunder shall be reported for income
tax purposes as earnings of Purchaser. Purchaser’s taxpayer identification number shall be delivered to Escrow Agent and/or
Seller upon request prior to Closing.

 

10.6        Execution
by Escrow Agent. Escrow Agent has executed this Agreement solely for the purpose of acknowledging and agreeing to the provisions
of this Article 10. Escrow Agent’s consent to any modification or amendment of this Agreement other than this Article 10
shall not be required.

 

    	37

    	 

    

 

ARTICLE 11

 

MISCELLANEOUS

 

11.1        Public
Disclosure. Prior to Closing, any release to the public of information with respect to the sale contemplated herein or
any matters set forth in this Agreement will be made only in the form approved by Purchaser and Seller except for any disclosure
that may be required by law or applicable regulation to be made to any applicable governmental or quasi- governmental authorities
or to the public. Further, either Seller or Purchaser may also make such disclosures with respect to the transaction as are consistent
with such party’s customary disclosures in quarterly earnings press releases and supplemental financial disclosures; however
no such releases or disclosures to the general public in writing shall include the name of the purchaser or seller of the Property.
Notwithstanding any terms or conditions in this Agreement to the contrary, this Section 11.1 shall survive the Closing.

 

11.2        Assignment. Purchaser
may not assign its rights under this Agreement without first obtaining Seller’s written approval, which approval may be
given or withheld in Seller’s sole discretion. Notwithstanding the foregoing, (a) Purchaser may assign this
Agreement at or prior to Closing to a Permitted Assignee without Seller’s consent, and (b) Seller may assign its rights
under this Agreement to an exchange accommodation titleholder to facilitate a tax deferred exchange pursuant to Section 4.8
hereof. For purposes hereof, the term “Permitted Assignee” means an assignee which expressly assumes in
writing all obligations of Purchaser hereunder and is (i) any entity that is directly or indirectly controlling or controlled
by or under direct or indirect common control with Sentinel Acquisitions Corp. or Sentinel Real Estate Corporation,
(ii)         any commingled investment fund that is managed directly or
indirectly by Sentinel Acquisitions Corp. or Sentinel Real Estate Corporation or any permitted assignee under clause (i)
above, or (iii) any person or entity who has retained Sentinel Acquisitions Corp. or Sentinel Real Estate Corporation or any
permitted assignee under clause (i) above, as its asset manager with respect to the Property; provided that such retention
pursuant to an assignment in (iii) above is a bona fide arrangement and not principally for the purpose of transferring
Purchaser’s interest in this Agreement. No transfer or assignment by Purchaser shall release or relieve Purchaser of
its obligations hereunder.

 

11.3        Notices.
Any notice, request or other communication (a “notice”) required or permitted to be given hereunder shall
be in writing and shall be delivered by hand or overnight courier (such as United Parcel Service or Federal Express), sent by electronic
mail (provided a copy of such notice is deposited with an overnight courier for next business day delivery), or mailed by United
States registered or certified mail, return receipt requested, postage prepaid and addressed to each party at its address as set
forth below. Any such notice shall be considered given on the date of such hand or courier delivery, confirmed email transmission
if received on a business day (provided a copy of such notice is deposited with an overnight courier for next business day delivery),
deposit with such overnight courier for next business day delivery, or deposit in the United States mail, but the time period (if
any is provided herein) in which to respond to such notice shall commence on the date of hand or overnight courier delivery or
on the date received following deposit in the United States mail as provided above. Rejection or other refusal to accept or inability
to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice. By giving at least
five (5) days’ prior written notice thereof, any party may from time to time and at any time change its mailing address hereunder.
Any notice of any party may be given by such party’s counsel.

 

    	38

    	 

    

 

The parties’
respective addresses for notice purposes are as follows. Notice by telephone shall not be effective.

 

If to Seller:

 

SH 23Hundred TIC, LLC

BGF 23Hundred, LLC

23Hundred, LLC

c/o Stonehenge Real Estate Group,
LLC

3200 West End Avenue, Suite 500

Nashville, TN 37203

Attention: Todd Jackovich

toddj@stonehengereg.com

 

With a copy to:

 

Eric R. Wilensky, Esq.

Nelson Mullins Riley & Scarborough
LLP

Atlantic Station

201 17th Street NW, Suite 1700

Atlanta, GA 30363

eric.wilensky@nelsonmullins.com

 

If to Purchaser

 

Sentinel Acquisitions Corp.

c/o Sentinel Real Estate Corporation

1251 Avenue of the Americas

New York, NY 10020

Attention: Noel G. Belli

belli@sentinelcorp.com

 

and

 

    	39

    	 

    

 

Sentinel Acquisitions Corp.

c/o Sentinel Real Estate Corporation

1251 Avenue of the Americas

New York, NY 10020

Attention: Millie Cassidy

cassidy@sentinelcorp.com

 

With a copy to:

 

Seward & Kissel LLP

One Battery Park Plaza

New York, NY 10004

Attention: Mark Brody, Esq.

brody@sewkis.com

 

If to Escrow Agent:

 

First American Title Insurance
Company

633 Third Avenue

New York, NY 10017

Attention: Phillip Salomon

psalomon@firstam.com

 

11.4         Modifications.
This Agreement cannot be changed orally, and no agreement shall be effective to waive, change, modify or discharge it in whole
or in part unless such agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification
or discharge is sought. Signatures inscribed on the signature pages of this Agreement or any formal amendment which are transmitted
by telecopy or email transmission (e.g., PDF files) shall be valid and effective to bind the party so signing. Each party agrees
to promptly deliver to the other party upon request an executed original of this Agreement or any such formal amendment with its
actual signature, but a failure to do so shall not affect the enforceability of this Agreement or any such formal amendment, it
being expressly agreed that each party to this Agreement or any formal amendment shall be bound by its own telecopied or emailed
signature and shall accept the telecopied or emailed signature of the other party to this Agreement or any formal amendment.

 

11.5         Calculation
of Time Periods. Where used in this Agreement, the term “business day” shall mean any day that is not a Saturday,
Sunday or legal holiday. If any date set forth in this Agreement shall fall on, or any time period set forth in this Agreement
shall expire on, a day which is not a business day, such date shall automatically be extended to, and the expiration of such time
period shall automatically to be extended to, the next business day. The final day of any time period under this Agreement or any
deadline under this Agreement shall include the period of time through and including such final day or deadline. The final day
of any such time period or deadline shall be deemed to end at 5:00 p.m., Nashville, Tennessee time.

 

    	40

    	 

    

  

11.6        Successors
and Assigns. Subject to Section 11.2 hereof, the terms and provisions of this Agreement are to apply to and bind the permitted
successors and assigns of the parties hereto.

 

11.7        Entire
Agreement. This Agreement, including the Schedules, contain the entire agreement between the parties pertaining to the
subject matter hereof and fully supersede all prior written or oral agreements and understandings between the parties pertaining
to such subject matter.

 

11.8        Further
Assurances. Each party agrees that it will without further consideration execute and deliver such other documents and take
such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate more
effectively the purposes or subject matter of this Agreement. Without limiting the generality of the foregoing, Purchaser shall,
if requested by Seller, execute acknowledgments of receipt with respect to any materials delivered by Seller to Purchaser with
respect to the Property. The provisions of this Section 11.8 shall survive Closing.

 

11.9        Counterparts.
This Agreement may be executed in identical counterparts, and all such executed counterparts shall constitute the same agreement.
It shall be necessary to account for only one such counterpart in proving this Agreement.

 

11.10      Severability.
If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder
of this Agreement shall nonetheless remain in full force and effect.

 

11.11      Applicable
Law. This Agreement is performable in the state in which the Property is located and shall in all respects be governed
by, and construed in accordance with, the substantive federal laws of the United States and the laws of such state. Seller and
Purchaser hereby irrevocably submit to the jurisdiction of any state or federal court sitting in the state and judicial district
in which the Property is located in any action or proceeding arising out of or relating to this Agreement and hereby irrevocably
agree that all claims in respect of such action or proceeding shall be heard and determined in a state or federal court sitting
in the state and judicial district in which the Property is located. Purchaser and Seller agree that the provisions of this Section
11.11 shall survive the Closing of the transaction contemplated by this Agreement.

 

11.12      No
Third Party Beneficiary. The provisions of this Agreement and of the documents to be executed and delivered at Closing
are and will be for the benefit of Seller and Purchaser only and are not for the benefit of any third party, and accordingly, no
third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at
Closing.

 

    	41

    	 

    

 

11.13      Employees.
Prior to the day after the Inspection Date, Purchaser agrees not to offer employment to any employees of Seller’s property
manager who are employed at the Property. Purchaser shall use reasonable efforts to instruct its personnel on the Property during
the Inspection Period to not solicit the employment of any employees at the Property until the day after the Inspection Date.
Purchaser shall have no responsibility for the salaries, benefits, leasing commissions, and bonuses, if any, payable to such employees
at the Property relating to or arising from such employment by Seller’s property manager, even if such employees are subsequently
employed by or on behalf of Purchaser or its affiliates following the Closing. Any employment of such existing employees by Purchaser
or its affiliates shall be pursuant to separate employment agreements with such employees. Purchaser shall have no obligation
to offer (or cause to be offered) employment to any employee of the Property following the Closing. This Section 11.13 shall survive
the Closing.

 

11.14      Schedules.
The following schedules attached hereto shall be deemed to be an integral part of this Agreement:

 

	Schedule 1.1(a)	-	Legal Description of the Land
	Schedule 1.1(d)	-	Inventory of Tangible Personal Property 
	Schedule 1.1(e)	-	Rent Roll
	Schedule 1.5	-	Escrow Agent Wiring Instructions 
	Schedule 3.1	-	Seller’s Deliveries
	Schedule 4.2(a)	-	Limited Warranty Deed 
	Schedule 4.2(b)	-	Bill of Sale and Assignment 
	Schedule 4.2(d)	-	Seller’s Closing Certificate  
	Schedule 4.2(g)	-	Seller’s Affidavit
	Schedule 5.1	-	Seller’s Disclosure Statement  
	Schedule 5.1(e)	-	Schedule of Service Contracts
	Schedule 5.4(b)(i)	-	Lease Renewal and Amendment Notices 
	Schedule 5.4(b)(ii)	-	Leasing Guidelines
	Schedule 5.8(b)	-	Schedule of Must Take Service Contracts 
	Schedule 12.1	-	Condominium Conversion Agreement

 

11.15      Captions.
The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent
and for any purpose, to limit or define the text of any section or any subsection hereof.

 

11.16      Construction.
The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule
of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation
of this Agreement or any schedules or amendments hereto.

 

11.17      Termination
of Agreement. It is understood and agreed that if either Purchaser or Seller terminates this Agreement pursuant to a right
of termination granted hereunder, such termination shall operate to relieve Seller and Purchaser from all obligations under this
Agreement, except for such obligations as are specifically stated herein to survive the termination of this Agreement.

 

    	42

    	 

    

 

11.18     Survival.
The provisions of the following Sections of this Agreement shall survive Closing and shall not be merged into the execution
and delivery of the Deed: 3.1(e); 4.2(c); 4.4; 4.5; 4.8; 5.1; 5.2; 5.3; 5.5; 5.6; 5.7; Article 8; Article 9; 11.8; 11.11; 11.13;
11.23; those additional provisions of this Article 11 which govern the administration, interpretation or enforcement of this Agreement;
and any other provisions contained herein that by their terms survive the Closing (the “Obligations Surviving Closing”).
Except for the Obligations Surviving Closing, all representations, warranties, covenants and agreements contained in this Agreement
shall be merged into the instruments and documents executed and delivered at Closing. The Obligations Surviving Closing shall survive
the Closing; provided, however, that the representations and warranties of Seller contained in Section 5.1, as updated by
Seller’s Closing Certificate, and the representations and warranties of Purchaser contained in Section 5.5, as updated by
Purchaser’s certificate under Section 4.3(d), shall survive for the period, and are subject to the terms, set forth in Sections
5.3 and 5.6 respectively.

 

11.19      Time
of Essence. Time is of the essence with respect to this Agreement.

 

11.20      Covenant
Not to Record. Purchaser shall not record this Agreement, any memorandum or other
evidence thereof; provided, however, that the foregoing shall not prohibit the recordation of any lis pendens with regard to a
timely action for specific performance filed pursuant to Section 6.2 of this Agreement. Any such recording shall constitute a material
default hereunder on the part of Purchaser.

 

11.21      Limitation
of Seller’s Liab ility . Purchaser shall have no recourse against any of the past, present or future, direct or
indirect, shareholders, partners, members, managers, principals, directors, officers, agents, incorporators, affiliates or representatives
of Seller or of any of the assets or property of any of the foregoing for the payment or collection of any amount, judgment, judicial
process, arbitral award, fee or cost or for any other obligation or claim arising out of or based upon this Agreement and requiring
the payment of money by Seller. This Section 11.21 shall survive the Closing.

 

11.22      JURY
WAIVER. IN ANY LAWSUIT OR OTHER PROCEEDING INITIATED BY SELLER OR PURCHASER UNDER OR WITH RESPECT TO THIS AGREEMENT, SELLER
AND PURCHASER EACH WAIVE ANY RIGHT IT MAY HAVE TO TRIAL BY JURY.

 

11.23      Limitation
of Purchase r’s Liab ility . Seller shall have no recourse against any of the past, present or future, direct or
indirect, shareholders, partners, members, managers, principals, directors, officers, agents, incorporators, affiliates or representatives
of Purchaser or of any of the assets or property of any of the foregoing for the payment or collection of any amount, judgment,
judicial process, arbitral award, fee or cost or for any other obligation or claim arising out of or based upon this Agreement
and requiring the payment of money by Purchaser. This Section 11.23 shall survive the Closing.

 

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

 

    	43

    	 

    

 

ARTICLE 12

 

SPECIAL PROVISION REGARDING CONDOMINIUM

 

12.1        Condominium
Conversion Agreement. As a material part of the consideration for Seller’s execution and delivery of this Agreement,
Purchaser shall execute and deliver at Closing a Condominium Conversion Agreement in the form set forth on Schedule 12.1
attached hereto, which will be recorded against the Property at the Closing.

 

[SIGNATURES ON THE FOLLOWING PAGES]

 

    	44

    	 

    

 

IN WITNESS
WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

 

	 	SELLER:
	 	 
	 	SH 23HUNDRED TIC, LLC,
	 	a Tennessee limited liability company
	 	 	 	 	 	 
	 	By:	Stonehenge 23Hundred N Member, LLC, 
	 	 	a Tennessee limited liability company,
	 	 	its Sole Member
	 	 	 	 	 	 
	 	 	By:	Stonehenge 23Hundred Manager, LLC,
	 	 	 	a Tennessee limited liability company
	 	 	 	its Manager
	 	 	 	 	 	 
	 	 	 	By:	Stonehenge Real Estate Group, LLC, 
	 	 	 	 	a Georgia limited liability company,
	 	 	 	 	its Manager
	 	 	 	 	 	 
	 	 	 	 	By:	/s/ Todd Jackovich 
	 	 	 	 	 	Todd Jackovich, its Manager
	 	 	 	 	 	 
	 	BGF 23HUNDRED, LLC, a Delaware limited 
	 	liability company
	 	 	 	 	 	 
	 	By:	
        Bluerock Growth Fund, LLC, its sole

        member

	 	 	 	 	 	 
	 	 	By:	
        Bluerock Fund Manager, LLC, its

        manager

	 	 	 	 	 	 
	 	 	 	 	By:	/s/ Jordan Ruddy 
	 	 	 	 	 	Jordan Ruddy, its Authorized 
	 	 	 	 	 	Signatory

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGES]

 

    	 

    	 

    

 

	 	23HUNDRED, LLC, a Delaware limited liability company
	 	 	 	 	 	 	 	 
	 	By:	BR Stonehenge 23Hundred JV, LLC, its sole member
	 	 	 	 	 	 	 	 
	 	 	By:	BR Berry Hill Managing Member, LLC, its
	 	 	 	manager
	 	 	 	 	 	 	 	 
	 	 	 	By:	BEMT Berry Hill, LLC, its manager
	 	 	 	 	 
	 	 	 	 	By:	Bluerock Residential Holdings, L.P.,
	 	 	 	 	 	its sole member
	 	 	 	 	 	 	 	 
	 	 	 	 	 	By:	Bluerock Residential Growth
	 	 	 	 	 	 	REIT, Inc., its general
	 	 	 	 	 	 	partner
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	/s/ Michael L. Konig
	 	 	 	 	 	 	 	Michael L. Konig, its
	 	 	 	 	 	 	 	Senior Vice President
	 	 	 	 	 	 	 	and Chief Operating
	 	 	 	 	 	 	 	Officer

 

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGES]

 

    	 

    	 

    

 

	 	PURCHASER:
	 	 
	 	SENTINEL ACQUISITIONS CORP., a
	 	Delaware corporation
	 	 	 
	 	By:	/s/ Noel G. Belli
	 	Name:	Noel G. Belli
	 	Title:	Vice President

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGES]

 

    	 

    	 

    

 

Escrow Agent has executed this Agreement
for the limited purposes set forth herein.

 

	 	ESCROW AGENT:
	 	 
	 	FIRST AMERICAN TITLE INSURANCE
	 	COMPANY
	 	 	 
	 	By:	/s/ Philip Solomon
	 	Name:	Philip Solomon
	 	Title:	Vice President

 

[END OF SIGNATURES]

 

    	 

    	 

    

 

Schedule 1.1(a)

 

LEGAL DESCRIPTION OF THE
LAND

 

Being a tract of land
lying in the City of Berry Hill, Davidson County, Tennessee and being more particularly described as follows:

 

Commencing at the intersection
of the southerly right-of-way line of Bradford Avenue, 50 feet in width, and the easterly right-of-way line of Franklin Pike;

 

Thence North 71 deg 02
min 40 sec East, 24.81 feet to an existing hole in concrete on the southerly right-of-way line of Bradford Avenue, being the true
point of beginning for this tract;

 

Thence with the southerly
right-of-way line of Bradford Avenue, North 71 deg 02 min 40 sec East, 325.22 feet to an existing iron rod at a comer common with
the property conveyed to Melpark Properties Management, L.P., of record in Book 11037, page 674 at the Register’s Office
for Davidson County, Tennessee;

 

Thence leaving the southerly
right-of-way line of Bradford Avenue with the westerly line of said Melpark Properties Management, South 18 deg 30 min 38 sec East,
367.50 feet to an existing concrete monument on the northerly right-of-way line of Melpark Drive, right-of-way width varies;

 

Thence with the northerly
right-of-way line of Melpark Drive for the following three calls:

 

1)  South
71 deg 02 min 47 sec West, 150.00 feet to an existing iron rod,

2)  South
74 deg 01 min 17 sec West, 135.11 feet to an existing iron rod,

3)  South
70 deg 45 min 21 sec West, 40.02 feet to an existing iron rod at the beginning of a radius return to Franklin Pike;

 

Thence with a curve to
the right having a radius of 25.00 feet, a curve length of 39.30 feet and a chord bearing and distance of North 63 deg 32 min 46
sec West, 35.38 feet to an existing concrete monument on the easterly right-of-way line of Franklin Pike;

 

Thence with the easterly
right-of-way line of Franklin Pike, North 18 deg 30 min 33 sec West, 310,68 feet to a radius return to Bradford Avenue;

 

Thence with a curve to
the right having a radius of 25.00 feet, a curve length of 39.08 feet and a chord bearing and distance of North 26 deg 16 min 03
sec East, 35.22 feet to the point of beginning; containing 127,443 square feet or 2.926 acres more or less.

 

Being the same property
conveyed to Horsepower, J.V. of record in Instrument Number 20120803-0069224 at the Register’s Office for Davidson County,
Tennessee.

 

    	 

    	 

    

 

Schedule 1.1(d)

 

INVENTORY OF TANGIBLE PERSONAL PROPERTY

 

    	 

    	 

    

 

	 	 	 	
        23Hundred Inventory List

        11/18/2014
	 	 	 	 
	Leasing Office/Entry Vestibule	 	 	Fitness Room	 	 	 	 
	Bench	1 	 	TVs	3	 	Mail Room	 
	Chairs	28	 	Fitness Machines	11	 	TV	1
	Desks	4	 	Dumbell Rack	1	 	Google Box	1
	TV	1	 	Medicine Balls	5	 	Garage/Exterior	 
	Computers	5	 	Benches	2	 	Planters	2
	Tables	3	 	Pool Courtyard - Pool Deck	 	 	Dog Stations	3
	Key Track	1	 	Lounge Chairs	28	 	Trash Cans	1
	Refrigerator	2	 	Chairs (other)	27	 	Bicycle Racks	2
	Sonos Sound Equip	2	 	Tables	19	 	Residential Units	266
	Microwave	1	 	Trash Cans	3	 	Refrigerator	266
	Filing Cabinets	3	 	Speakers	6	 	Microwave	266
	Copy Machine	1	 	Pool Accessories	 	 	Oven	266
	Accessories	20	 	Pool Courtyard - Upper Deck	 	 	Dishwasher	266
	Curtains	2	 	Trash Cans	3	 	Garbage Disposal	266
	Blinds	18	 	Chairs	18	 	Washer/Dryer Combo	266
	Model Unit (259)	 	 	Tables	9	 	Maintenance Shop	 
	Sonos Sound Equip	1 	 	Umbrellas	2	 	Refer To Maintenance	 
	Beds	2	 	Grills	2	 	Inventory List	 
	Chairs	5	 	Fire Pit	1	 	 	 
	Couch	1	 	Speakers	2	 	 	 
	Tables/Cabinets	9	 	Amplifier	1	 	 	 
	Accessories	80	 	Sonos Sound Equip	1	 	 	 
	Lamps	4	 	Zen Courtyard	 	 	 	 
	Curtains	8	 	Trash Cans	2	 	 	 
	Cyber Lounge	 	 	Fire Pit	1	 	 	 
	TVs	4 	 	Chairs	8	 	 	 
	Chairs	10	 	Tables	4	 	 	 
	Tables	2	 	Sky Lounge	 	 	 	 
	Couch	1	 	TVs	5	 	 	 
	Ice Machine	1	 	Chairs	33	 	 	 
	Refrigerator	1	 	Tables	7	 	 	 
	Accessories	28	 	Couch	1	 	 	 
	Curtains	4	 	Ice Machine	1	 	 	 
	 	 	 	Refrigerator	1	 	 	 
	 	 	 	Amplifier	1	 	 	 
	 	 	 	Sonos Sound Equip	1	 	 	 
	 	 	 	Game Table Tops	2	 	 	 
	 	 	 	Accessories	20	 	 	 

 

    	 

    	 

    

 

	23Hundred at Berry Hill	Maintenance Inventory List	 Date: November 11, 2014

 

	
        4

        ITEM DESCRIPTION
	 	MFG/MODEL #	 	SERIAL #	 	AMOUNT
	16 Gallon Wet/Dry Vacuum	 	Ridgid/WD 1851	 	13282 R 0324	 	1
	Heavy Duty Key Milling Machine	 	Ilco/045HD	 	PD012543	 	1
	13" Commercial Vacuum	 	Sanitaire/SC9180B	 	SU111340007001	 	1
	Pressure Washer 3000 PSI	 	Mi-T-M/WP-3000HDHB	 	10748890	 	1
	Hand Held Power Auger	 	General Wire/PVF	 	IPV380526	 	1
	Backpack Shoulder Vacuum	 	Hoover/C2401	 	C14A (?)	 	1
	Backpack Air Blower	 	Echo/PB-755ST	 	P04112038587	 	1
	Ozone Deodorizer	 	Queenaire/QTT24	 	W53039283	 	1
	Electronic Freon Charging Scale	 	Inficon/713-500-G1	 	1402 (?)	 	1
	Freon Recovery Machine	 	Inficon/714-202-G1	 	14-12087	 	1
	5 CFM Vacuum Pump	 	Robinair/288565	 	02AQ	 	1
	Hammer/Drill 20 Volt Battery Powered	 	DeWalt/DCD985	 	203323	 	1
	Reciprocating Saw 20 Volt Battery Powered	 	DeWalt/DCS381	 	740729	 	1
	LED Flashlight 20 Volt Battery Powered	 	DeWalt/DCL040	 	247733	 	1
	Impact Driver 20 Volt Battery Powered	 	DeWalt/DCF885	 	281488	 	1
	Circular Saw 20 Volt Battery Powered	 	DeWalt/DCS393	 	?	 	1
	20 Volt Battery Charger	 	DeWalt/DCB101	 	?	 	1
	20 Volt Batteries	 	DeWalt/	 	 	 	2

 

    	1

    	 

    

  

	23Hundred at Berry Hill	Maintenance Inventory List	 Date: November 11, 2014

	
        ITEM DESCRIPTION
	 	MFG/MODEL #	 	SERIAL #	 	AMOUNT
	8” Bench Grinder	 	DeWalt/DW758	 	2014 12-YL101796	 	1
	3 Speed Carpet Fan	 	Windshear/3000	 	
        04130B5232

        04130B5236

        04130B5235
	 	3
	Hand Held Two Way UHF Radios	 	Motorola/RMU2040	 	
        O24TPP8369 024TPP8503

        024TTP8489
	 	3
	5 Gallon Logo Bucket	 	NL/RG5500	 	 	 	2
	35 Quart Mop Bucket/Wringer	 	Rubbermaid/FG758088YEL	 	 	 	1
	60" Super Jaws Mop Handle (2 pack)	 	NL/01207-NBHDS	 	 	 	2
	Telescoping Adjustable Handle	 	Rubbermaid/FGQ760000000	 	 	 	1
	18" Wet/Dry Mop Head	 	Rubbermaid/FGQ56000YL00	 	 	 	1
	44 Gallon Vented Brute Trash Can	 	Rubbermaid/264360 Gray	 	 	 	9
	44 Gallon Brute Trash Can Lid	 	Rubbermaid/FG264560BLA	 	 	 	9
	44 Gallon Brute Trash Can Dolly	 	Rubbermaid/FG264000BLA	 	 	 	1
	45 Gallon Trash Can w/Lid and Wheels	 	Rubbermaid/RM134501	 	 	 	1
	10 Quart Bucket	 	Huskee/5U028	 	 	 	2
	26" Wet Floor Sign	 	NL/AF03742	 	 	 	4
	8' Fiberglass Step Ladder	 	Louisville/L-3016-08	 	 	 	1
	6' Fiberglass Step Ladder	 	Louisville/L-3016-06	 	 	 	1
	Wood Handle Corn Broom (2 pack)	 	HD/00312-HDS	 	 	 	1
	55" Large Angle Broom (3 pack)	 	HD/00402-12HDS	 	 	 	3

    	2

    	 

    

 

	23Hundred at Berry Hill	Maintenance Inventory List	 Date: November 11, 2014

 

	ITEM DESCRIPTION	 	MFG/MODEL #	 	SERIAL #	 	AMOUNT
	3 Piece Rain Suit "X-Large"	 	SAS Safety/6814-01	 	 	 	2
	16" PVC Rubber Work Boots "Size 9"	 	SAS Safety/7130-09	 	 	 	1
	16" PVC Rubber Work Boots "Size 12"	 	SAS Safety/7130-12	 	 	 	1
	Digital Moisture Meter	 	Sonin/50218	 	 	 	1
	MSDS Binder/Wall Mount	 	SDS/6000-75	 	 	 	1
	Dual Eye Wash Station	 	Honeywell/32-000465-0000	 	 	 	1
	Aluminum Convertible Hand Truck	 	Milwaukee/45136	 	 	 	1
	Aluminum Appliance Hand Truck	 	Milwaukee/40187	 	 	 	1
	25” Handle Dust Pan (jumbo)	 	NL/204	 	 	 	2
	5 Gallon Safety Gas Can w/Funnel	 	Justrite/000000010802	 	 	 	1
	Industrial First Aid Cabinet	 	Medifirst/734HDS	 	 	 	1
	Clear Glass Safety Glasses	 	Radnor/RAD64051271	 	 	 	3
	25' 16/3 Orange Extension Cord	 	SJTW/EC501625	 	 	 	2
	50' 16/3 Orange Extension Cord	 	SJTW/EC501630	 	 	 	1
	50' Contractor Grade Garden Hose 3/4"	 	Swan/CELCF34050	 	 	 	1
	75' Contractor Grade Garden Hose 3/4"	 	Swan/CELCF34075	 	 	 	2
	6" Rubber Plunger	 	Maint. Warehouse/GTR-1038	 	 	 	1
	6" Heavy Duty Plunger	 	Maint. Warehouse/GTR-1036	 	 	 	1

 

    	3

    	 

    

  

	23Hundred at Berry Hill	Maintenance Inventory List	 Date: November 11, 2014

 

	ITEM DESCRIPTION	 	MFG MODEL #	 	SERIAL #	 	AMOUNT
	2 Step - Folding Step Stool	 	Costco/11-565-CLGG4	 	 	 	1
	3' - 6' Length Toilet Auger	 	General Wire/T6FL	 	 	 	1
	36" Lobby Dust Pan	 	HD/T09210JNKP-HDS	 	 	 	1
	36" Pick Up Tool	 	Unger/NN900	 	 	 	2
	48" Round Point Shovel	 	Corona/SS 26000	 	 	 	1
	48" Square Point Shovel	 	Corona/SS 27000	 	 	 	1
	First Aid Kit	 	Skilcraft/6545	 	 	 	1
	Garden Hose Brass Nozzle	 	Pro/749470 (?)	 	 	 	1
	3” Purdy Paint Brush	 	Purdy/144380330	 	 	 	1
	2.5” Purdy Paint Brush	 	Purdy/144152325	 	 	 	1
	9” Paint Roller Handle	 	HD/926430	 	 	 	2
	10” Taping Knife	 	Wal-Board/18-030	 	 	 	1
	3” Scraper Knife	 	Warner/27112009	 	 	 	1
	5 in 1 Glazier Knife	 	Warner/27112009	 	 	 	1
	12” Plastic Mud Pan	 	Wal-Board/27-002	 	 	 	1
	11 oz. Caulking Gun	 	HD/531418	 	 	 	1
	5 gal. Paint Bucket Grid	 	Linzer/RM 416	 	 	 	2
	2’ - 4’ Fiberglass Extension Pole	 	Long Arm/7504	 	 	 	1

 

    	4

    	 

    

 

	23Hundred at Berry Hill	Maintenance Inventory List	 Date: November 11, 2014

 

	ITEM DESCRIPTION	 	MFG MODEL #	 	SERIAL #	 	AMOUNT
	4’ – 8’ Aluminum Extension Pole	 	Ettore/43009	 	 	 	1
	18" Snow Shovel	 	Bigfoot/1184	 	 	 	1
	21" Snow Pusher	 	Bigfoot/1201	 	 	 	1
	Paint and Pesticide Respirator	 	North/R95	 	 	 	2
	Lower Back Support (med.)	 	SAS/7162	 	 	 	1
	Lower Back Support (lg.)	 	SAS/7163	 	 	 	1
	Utility Knife	 	Stanley/10-099	 	 	 	2
	24” Bolt Cutter	 	HD/131354	 	 	 	1
	6” Bench Vise	 	Olympia/616	 	 	 	1
	Staple Gun Tacker	 	Stanley/TR150HL	 	 	 	1
	18” Wrecking Bar	 	HD/132616	 	 	 	1
	Carpenters Quick Square Aluminum	 	Stanley/46-067	 	 	 	1
	60” Garden Bow Rake	 	Corona/RK 20002	 	 	 	1
	8 Lb. Sledge Hammer	 	Corona/ST 40001	 	 	 	1
	65 Piece Drill Bit Acc. Kit	 	DeWalt/SW2583	 	 	 	1
	Drywall Utility Saw	 	Wal-Board/04-030	 	 	 	1
	24” Level	 	Stanley/42-240	 	 	 	1
	Mini Hacksaw	 	Stanley/15-809X	 	 	 	1

    	5

    	 

    

 

	23Hundred at Berry Hill	Maintenance Inventory List	 Date: November 11, 2014

 

	ITEM DESCRIPTION	 	MFG MODEL #	 	SERIAL #	 	AMOUNT
	Folding Saw Horse	 	Stanley/060852R	 	 	 	2 (set)
	15” Coarse Cut Hand Saw	 	Irwin/2011201	 	 	 	1
	Nitrogen Regulator	 	TurboTorch/245-02P	 	 	 	1
	8 Piece Spade Drill Bit Set	 	Irwin/341008	 	 	 	1
	10 Piece 6” T-Handle Hex Wrench Set	 	Eklind/50160	 	 	 	1
	Basin Wrench	 	HD/145507	 	 	 	1
	30 Lb. Freon Recovery Cylinder	 	HD/149873	 	 	 	1
	50 Lb. Freon Recovery Cylinder	 	HD/150102	 	 	 	1
	PVC Cutter	 	General/SUS	 	 	 	1
	Copper Cutter	 	Ridgid/86127	 	 	 	1
	28" Bright Orange Traffic Cones	 	SAS Safety/7500-28	 	 	 	10
	24" Hvy-Dty Push Broom (2 pack)	 	Abco/BH-00805	 	 	 	2
	Flashlights	 	Maglite/S2D016	 	 	 	2
	28” Feather Duster	 	HD/103	 	 	 	1
	Safety Ear Plugs	 	Leight/AS-30R	 	 	 	3
	Safety Face Sheilds	 	SAS/5140	 	 	 	2
	Reflective Safety Vests	 	SAS/690-1208	 	 	 	2
	7 Piece Hammer Drill Bit Set	 	Bosch/HCBG700T	 	 	 	1

 

    	6

    	 

    

 

	23Hundred at Berry Hill	Maintenance Inventory List	 Date: November 11, 2014

 

	ITEM DESCRIPTION	 	MFG MODEL #	 	SERIAL #	 	AMOUNT
	118 Piece Metric/Stnd. Socket Set	 	GearWrench/83001D	 	 	 	1
	9’ x 12’ Painters Drop Cloths 8 oz.	 	EZ-One/41-CD912H	 	 	 	2
	Garden Hose Nozzles	 	HD/749476	 	 	 	2
	Re-Keying Tool	 	Kwikset/83260	 	 	 	1
	24’ Aluminum Extension Ladder	 	Louisville/L2121-24	 	 	 	1
	Toilet Sanitary Brushes	 	HD/908658	 	 	 	2
	Oxy-Acetylene Torch Kit	 	Campbell/WT500000AV	 	 	 	1
	Freon Charging Manifold	 	JB/M2-5-410A	 	 	 	1
	25’ Measuring Tape	 	DeWalt/DWHT33373L	 	 	 	1
	Disposable Respirators	 	SAS/8610	 	 	 	1 box
	2 Gallon Poly Sprayer	 	Chapin/21220XP	 	 	 	1
	15” Utility Pry Bar	 	HD/132613	 	 	 	1
	Water Heater Element Removal Tool	 	HD/145750	 	 	 	1
	2’ Aluminum Step Ladder	 	Louisville/L-2012-02	 	 	 	1
	3 Lb. Sledge Hammer	 	Plumb/11649	 	 	 	1
	Yellow Rubber Gloves	 	HD/115607	 	 	 	3
	Rubber Waste Baskets	 	Rubbermaid/RCP2957GRY	 	 	 	2
	Steel Padlocks	 	Master/3	 	 	 	2

 

    	7

    	 

    

 

	23Hundred at Berry Hill	Maintenance Inventory List	 Date: November 11, 2014

 

	ITEM DESCRIPTION	 	MFG MODEL #	 	SERIAL #	 	AMOUNT
	30 Gallon Flammable Storage Cabinet	 	Justrite/893020	 	 	 	1
	14” Window Strip Washer	 	Ettore/53014	 	 	 	1
	18” Heavy Duty Pipe Wrench	 	Superior/02818	 	 	 	1
	95 Gallon Trash Cans w/Wheels	 	Rubbermaid/9W22	 	 	 	5
	Heavy Duty Maintenance Cart	 	Rubbermaid/FG450088BLA	 	 	 	3
	Screw Top Funnel (3 pack)	 	Delta Sprayers/FMBLUE-3	 	 	 	1
	24 Ounce Orbital Sprayer (3 pack)	 	Delta Sprayers/ORB2498-12P	 	 	 	1
	Individual/Master Keying Kit	 	Schlage/OMK118	 	 	 	1
	Handheld Spreader	 	EV-N-Spred 3400	 	 	 	1
	40 CF Nitrogen Cylinder	 	HD/235011	 	 	 	1
	Hole Saw Kit	 	Vermont Amer./	 	 	 	1
	Mini Fridge	 	Magic Chef/HMBR350SE	 	 	 	1
	2 Gallon Plastic Gas Can	 	 	 	 	 	1

 

    	8

    	 

    

 

Schedule 1.1(e)

 

RENT ROLL

 

[Redacted]

 

    	 

    	 

    

 

Schedule 1.5

 

ESCROW AGENT WIRING INSTRUCTIONS

 

New York – National
Commercial Services

 

BANK: First American Trust
5 First American Way

Santa Ana, CA 92707

 

ABA NO.: 122241255

 

For Credit To: First American
Title Insurance Company

 

Account Number: 3023140000

 

	Reference: Title No. / Deal Name:	 	 

 

Property Address:

 

First American Contact:

	 	 
	 	 

 

    	 

    	 

    

 

Schedule 3.1

 

SELLER’S DELIVERIES

 

		1.	Contracts. Master list and copies of all contracts pertaining to the Property in Seller’s
possession.

 

		2.	Operating Statements. Current operating statement of the Property, from commencement of
operations to YTD 2014, in form routinely prepared by or for the benefit of Seller.

 

		3.	Utilities. A list of all utilities (gas, electric, water and sewer) servicing the Property,
together with a monthly utility log for 2014 from each utility and copies of the bills from each utility for the prior 3 months.

 

		4.	Tax Bills. The tax bills from commencement of operations to YTD 2014 relating to the Property
(including, but not limited to, property, personal and rental taxes, and any special assessments).

 

		5.	Inventory. A current inventory of all Tangible Personal Property owned by Seller.

 

		6.	Certificates of Occupancy and Permits. All certificates of occupancy and all other related
permits (including pool permits), licenses (including business licenses), and other approvals issued by the appropriate governmental
authorities relating to the Property in Seller’s possession or control, all to be available on-site at the Property.

 

		7.	Insurance. Copies of all loss runs from commencement of operations to YTD 2014 .

 

		8.	Plans and Specifications. Plans and specifications for the Improvements relating to the
Property in Seller’s possession or control, all to be available on-site at the Property.

 

		9.	Rent Roll.

 

		10.	Aging Receivable Detail.

 

		11.	Unit Mix with Rent Schedule, including any specials or promotions

 

		12.	List of on-site positions.

 

		13.	Lease Form

 

		14.	Property Brochure (N/A – all on website)

 

		15.	Resident Profile

 

		16.	Lease files, to be available on site at Property

 

		17.	List of office, model and employee units

 

    	 

    	 

    

 

		18.	Tenant qualification criteria

 

		19.	Copies of all unexpired warranties, including the roof warranty

 

		20.	Most current termite bond/inspection report

 

		21.	Outstanding litigation information

 

    	 

    	 

    

 

 

 

Schedule 4.2(a)

 

FORM OF SPECIAL WARRANTY DEED

 

This Instrument Prepared By:

 

SPECIAL WARRANTY DEED

 

	Address New Owner as Follows:	Send Tax Bills To:
	                                      	                                      
	                                      	                                      
	 	 
	Map & Parcel No.:

FOR VALUABLE CONSIDERATION, the
receipt and sufficiency of which are acknowledged, SH 23HUNDRED TIC, LLC, a Tennessee limited liability company, BGF
23HUNDRED, LLC, a Delaware limited liability company, and 23HUNDRED, LLC, a Delaware
limited liability company, as tenants-in-common (collectively, “Grantor”) has bargained and sold, and
hereby transfers and conveys to                              ,
a                          
(“Grantee”), its successors and assigns, certain land in Davidson County, Tennessee, being more particularly
described in Exhibit A attached hereto and incorporated herein by reference (the “Property”)

 

The Property is improved property located at 2300 Franklin
Pike, Nashville, TN 37204.

 

TO HAVE AND TO HOLD the Property with all appurtenances, estate, title, and interest thereto belonging to Grantee,
its successors and assigns, forever.

 

	STATE OF TENNESSEE	)	 	 
	COUNTY OF DAVIDSON	)	 	 
	 
	The actual consideration or value, whichever is greater, for this transfer is $                    .
	 	 
	 	 	Affiant
	Subscribed and sworn to before           me this day        of , 20    .  
	 	 	 	 
	 	 	 
	 	 	Notary Public
	 	 	MyCommission Expires:	 

 

    	 

    	 

    

 

Grantor does hereby
covenant with Grantee that it is lawfully seized and possessed of the Property in fee simple and that it has good right to sell
and convey the same.

 

Grantor does further covenant
and bind itself, its successors and assigns, to warrant and forever defend the title to the Property against the lawful claims
of all persons claiming by, through or under Grantor, but no further or otherwise, subject however to the matters set forth on
Exhibit B.

 

    	 

    	 

    

 

Executed as of the             day
of               , 20.

 

	 	GRANTOR:

 

	 	SH 23HUNDRED TIC, LLC, a Tennessee limited liability company

 

	 	By:	Stonehenge 23Hundred JV Member, LLC, a Tennessee limited liability company, its sole member

 

	 	By: 	Stonehenge  23Hundred   Manager, LLC, a Tennessee limited liability company, its Manager

 

	 	By: 	Stonehenge   Real   Estate Group, LLC, a Georgia limited liability company, its Manager

 

	 	By:	
	 	Todd Jackovich, its Manager

 

STATE OF                      
 )

COUNTY OF                   
)

 

Personally
appeared before me,                        ,
Notary Public,                       
  , with whom I am personally acquainted and who acknowledged that he executed the within instrument for the purposes
therein contained, and who further acknowledged that he is acting in his capacity as                      
of                      ,
a               , and that he is authorized
by said                       
  , to execute this instrument on behalf of                      .

 

WITNESS my hand, at office, this                      
day of                      ,
20     .

 

	 	                                                                                                                
	 	Notary Public
	 	My Commission Expires: 	                                                                   

 

    	 

    	 

    

  

	 	GRANTOR:

 

	 	BGF  23HUNDRED,  LLC,  a  Delaware  limited liability company

 

	 	By:	Bluerock Growth Fund, LLC, its sole member

 

	 	By:	Bluerock  Fund  Manager,  LLC,  its manager

 

	 	By:	
	 	 	Jordan Ruddy, its Authorized Signatory

 

STATE OF                     )

COUNTY OF                 )

 

Personally appeared before me,                  ,
Notary Public,                  ,
with whom I am personally acquainted and who acknowledged that he executed the within instrument for the purposes therein contained,
and who further acknowledged that he is acting in his capacity as                 
of                  , a                    ,
and that he is authorized by said                  ,
to execute this instrument on behalf of                    .

 

WITNESS my hand, at office, this                 
day of                 , 20      .

 

	 	 
	 	Notary Public	 
	 	My Commission Expires:	                   

 

    	 

    	 

    

 

 

 

GRANTOR:

 

	 	23HUNDRED, LLC, a Delaware limited liability company	 

 

	 	By:	BR Stonehenge 23Hundred JV, LLC, its sole
member

 

		By:	BR Berry Hill Managing Member, LLC, its manager
	 
	 	By:	BEMT Berry Hill, LLC, its manager
	 

		By:	Bluerock Residential Holdings, L.P., its sole member

 

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

 

	 	By:	
	 		 Michael L. Konig, its Senior Vice President and Chief Operating Officer

 

STATE OF                                     )

COUNTY OF                                  )

 

Personally appeared
before me,                                 
,    Notary Public,                        ,
with whom I am personally acquainted and who acknowledged that he executed the within instrument for the purposes therein contained,
and who further acknowledged that he is acting in his capacity as                                of                               ,
a                         
  , and that he is authorized by said                       ,
to execute this instrument on behalf of                                                                                          .

 

WITNESS my hand, at office, this                       day
of                       ,
20.        

 

	 	                                                                                                               
	 	Notary
Public
	 	My Commission Expires:                                                                    

 

    	 

    	 

    

 

Exhibits to Special Warranty
Deed

 

A - Legal Description of Land

 

B - Permitted Exceptions

 

    	 

    	 

    

 

Schedule 4.2(b)

 

FORM OF BILL OF SALE AND ASSIGNMENT AND

ASSUMPTION OF LEASES AND SERVICE CONTRACTS

 

 

 

BILL OF SALE AND ASSIGNMENT AND ASSUMPTION

OF LEASES AND SERVICE CONTRACTS

 

This
Bill of Sale and Assignment and Assumption of Leases and Service Contracts (this “Agreement”)
is made and entered into this      day of       ,
20     , by and between each of SH 23HUNDRED
TIC, LLC, a Tennessee limited liability company, BGF 23HUNDRED, LLC, a
Delaware limited liability company, and 23HUNDRED, LLC, a Delaware limited liability company, as
tenants-in-common (collectively, “Seller”), and,
a                                  (“Purchaser”).

 

WITNESSETH:

 

WHEREAS,
Seller and Purchaser have previously entered into that certain Purchase and Sale Agreement, dated                                   ,
20          [DESCRIBE
AMENDMENTS, IF APPLICABLE] (the “Contract”), having                                    as
a party for the limited purposes set forth therein;

 

WHEREAS,
concurrently with the execution and delivery of this Agreement and pursuant to the Contract, Seller is conveying to Purchaser,
by Special Warranty Deed, (i) those certain tracts or parcels of real property located in Davidson County, Tennessee, and more
particularly described on Exhibit A, attached hereto and made a part hereof (the “Land”), (ii) the rights,
easements and appurtenances pertaining to the Land (the “Related Rights”), and (iii) the buildings, structures,
fixtures and other improvements on and within the Land (the “Improvements”; and the Land, the Related Rights
and the Improvements being sometimes collectively referred to as the “Real Property”);

 

WHEREAS,
Seller has agreed to convey to Purchaser certain personal property and assign to Purchaser certain leases and service contracts
as hereinafter set forth;

 

NOW, THEREFORE,
in consideration of the receipt of Ten Dollars ($10.00), the assumptions by Purchaser hereinafter set forth and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows:

 

    	 

    	 

    

 

1.          Bill
of Sale.

 

(a)          Seller
hereby sells, assigns, transfers and conveys to Purchaser all of Seller’s right, title and interest in, to and under the
Tangible Personal Property and the Intangible Property. Seller warrants to Purchaser that Seller owns good title to the Tangible
Personal Property, that the Tangible Personal Property is free and clear of all liens, charges and encumbrances other than the
Permitted Exceptions (as defined in the Contract), and that Seller has full right, power and authority to sell the Tangible Personal
Property and to make this Bill of Sale. Seller further warrants to Purchaser that Seller has not conveyed to any third party its
right, title and interest, if any, in the Intangible Property.

 

(b)          “Tangible
Personal Property” shall have the meaning ascribed to such term in the Contract.

 

(c)          “Intangible
Property” shall have the meaning ascribed to such term in the Contract.

 

2.          Assignment
and Assumption of Leases.

 

(a)          Seller
hereby sells, assigns, transfers and conveys to Purchaser all of Seller’s right, title and interest as landlord in, to and
under all Leases (as defined in the Contract), together with any and all unapplied refundable tenant security and other unapplied
refundable deposits in Seller’s possession or control with respect to the Leases as of the date of this Agreement (collectively,
the “Deposits”). The assignment of the Deposits has been made by means of a credit or payment on the closing
statement executed by Seller and Purchaser pursuant to the Contract.

 

(b)          Purchaser
hereby assumes all of the covenants, agreements, conditions and other terms and provisions stated in the Leases which, under the
terms of the Leases, are to be performed, observed, and complied with by the landlord from and after the date of this Agreement.
Purchaser acknowledges that Purchaser shall become solely responsible and liable as landlord under the Leases for obligations arising
or accruing from and after the date hereof.

 

(c)          Purchaser
shall indemnify, hold harmless and defend Seller from and against any and all claims, demands, causes of action, liabilities, losses,
costs, damages and expenses (including reasonable attorneys’ fees and expenses and court costs incurred in defending any
such claim or in enforcing this indemnity) that may be incurred by Seller by reason of the failure of Purchaser to perform, observe
and comply with the landlord’s obligations under any of the Leases arising or accruing during the period from and after the
date hereof, including without limitation, claims made by tenants with respect to the Deposits, whether arising before, on or after
the date hereof (to the extent paid or assigned to Purchaser or for which Purchaser has received a credit or payment at Closing).
Seller shall indemnify, hold harmless and defend Purchaser from and against any and all claims, demands, causes of action, liabilities,
losses, costs, damages and expenses (including reasonable attorneys’ fees and expenses and court costs incurred in defending
any such claim or in enforcing this indemnity) that may be incurred by Purchaser by reason of the failure of Seller to perform,
observe and comply with the landlord’s obligations under any of the Leases arising or accruing during the period prior to
the date hereof, including without limitation, claims made by tenants with respect to the Deposits arising before the date hereof
(to the extent such Deposits were not paid or assigned to Purchaser or for which Purchaser did not receive a credit or payment
at Closing).

 

    	 

    	 

    

 

(d)          For
purposes of this Paragraph 2, the word “landlord” means the landlord, lessor or other equivalent party under any of
the Leases, and the word “tenant” means the tenant, lessee or other equivalent party under any of the Leases.

 

3.          Assignment
and Assumption of Service Contracts.

 

(a)          Seller
hereby sells, assigns, transfers and conveys to Purchaser all of Seller’s right, title and interest in, to and under those
service, supply, equipment rental and similar agreements set forth on Exhibit B, attached hereto and made part hereof by
this reference (the “Service Contracts”).

 

(b)          Purchaser
hereby assumes all of the covenants, agreements, conditions and other terms and provisions stated in the Service Contracts which,
under the terms of the Service Contracts, are to be performed, observed, and complied with by the property owner from and after
the date of this Agreement. Purchaser acknowledges that Purchaser shall become solely responsible and liable under the Service
Contracts for obligations arising or accruing from and after the date hereof, including with respect to any and all payments coming
due under the Service Contracts for which Purchaser has received a credit or payment on the closing statement executed by Purchaser
and Seller (the “Credited Payments”).

 

(c)          Purchaser
shall indemnify, hold harmless and defend Seller from and against any and all claims, demands, causes of action, liabilities, losses,
costs, damages and expenses (including reasonable attorneys’ fees and expenses and court costs incurred in defending any
such claim or in enforcing this indemnity) that may be incurred by Seller by reason of the failure of Purchaser to perform, observe
and comply with its obligations under any of the Service Contracts arising or accruing during the period from and after the date
hereof, including without limitation, claims made by any other contract party with respect to the Credited Payments, whether arising
before, on or after the date hereof (to the extent paid or assigned to Purchaser or for which Purchaser received a credit or payment
at Closing). Seller shall indemnify, hold harmless and defend Purchaser from and against any and all claims, demands, causes of
action, liabilities, losses, costs, damages and expenses (including reasonable attorneys’ fees and expenses and court costs
incurred in defending any such claim or in enforcing this indemnity) that may be incurred by Purchaser by reason of the failure
of Seller to perform, observe and comply with its obligations under any of the Service Contracts arising or accruing during the
period prior to the date hereof, including without limitation, claims made by any other contract party with respect to the Credited
Payments, arising before the date hereof (to the extent such Credited Payments were not paid or assigned to Purchaser or for which
Purchaser did not receive a credit or payment at Closing)

 

4.          Qualifications.
This Agreement is subject to the Permitted Exceptions (as defined in the Contract). This Agreement is also subject to those provisions
of the Contract limiting Seller’s liability to Purchaser, including but not limited to Section 11.21 of the Contract.

 

    	 

    	 

    

 

5.          Counterparts.
This Agreement may be executed in two or more identical counterparts, and it shall not be necessary that any one of the counterparts
be executed by all of the parties hereto. Each fully or partially executed counterpart shall be deemed an original, but all of
such counterparts taken together shall constitute one and the same instrument.

 

6.          Successors
and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the successors, executors, administrators,
legal representatives and assigns of the parties hereto.

 

7.          Governing
Law. This Agreement shall be construed under and enforced in accordance with the laws of the State of Tennessee.

 

    	 

    	 

    

 

EXECUTED effective as of the date first above written.

 

SELLER:

 

	 	SH 23HUNDRED TIC, LLC, a Tennessee limited liability company
	 	 	 

		By:	Stonehenge 23Hundred JV Member, LLC, a Tennessee limited liability company, its sole member

 

		By:	Stonehenge 23Hundred Manager, LLC, a Tennessee limited liability company, its Manager

 

		By:	Stonehenge Real Estate Group, LLC, a Georgia limited liability company, its Manager

 

	 	By:	                                                    
	 	Todd Jackovich, its Manager

 

	 	BGF 23HUNDRED, LLC, a Delaware limited liability company

 

		By:	Bluerock Growth Fund, LLC, its sole member

 

		By:	Bluerock Fund Manager, LLC, its manager

 

		By:	                                                
	 	 	Jordan
Ruddy, its Authorized Signatory

 

    	 

    	 

    

 

23HUNDRED, LLC, a Delaware limited liability company

 

	 	By:	BR Stonehenge 23Hundred JV, LLC, its sole member

	 	 	 
	 	By:	BR Berry Hill Managing   Member, LLC, its manager

	 	 	 
	 	By:	BEMT Berry Hill, LLC, its manager

	 	 	 
	 	By:	Bluerock Residential Holdings, L.P., its sole member

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

	 	 	 
	 	By:	                                           
	 	 	Michael L. Konig, its Senior Vice President and Chief Operating Officer

 

    	 

    	 

    

 

PURCHASER:

 

                                                       ,
a                                                    

 

		By:	                                                                     

	 	Name: 	                                                           

	 	Title:	                                                          

 

    	 

    	 

    

 

Exhibits to Bill of Sale
and Assignment

 

A - Legal Description of Land

 

B - List of Designated Service Contracts

 

    	 

    	 

    

 

Schedule 4.2(d)

 

FORM OF SELLER’S CLOSING CERTIFICATE

 

 

 

Seller’s
Closing Certificate

 

THIS
CERTIFICATION is made as of                                          ,
20 by each of SH 23HUNDRED TIC, LLC, a Tennessee limited liability company, BGF 23HUNDRED, LLC,
a Delaware limited liability company, and 23HUNDRED, LLC, a Delaware limited liability company, jointly
and severally (collectively, “Seller”), in favor of                       ,
a                     (“Purchaser”).

 

Seller
hereby certifies to Purchaser that the representations and warranties of Seller set forth in Section 5.1 of that certain Purchase
and Sale Agreement between Seller and                                
[if applicable: as amended] (the “Agreement”) dated as of      
                                 
,  20            ,            are
true and correct in all material respects as of the date

hereof, except as to:

 

	 	(a)	The Rent Roll attached hereto as Exhibit A replaces the Rent Roll attached to the Agreement as Schedule 1.1(e); and
	 	 	 
	 	(b)	[If applicable: The items disclosed on Exhibit B attached
    hereto replace Seller’s Disclosure Schedule attached to the Agreement as Schedule 5.1].

 

The representations
and warranties set forth in Section 5.1 of the Agreement, as updated by this Certificate of Seller’s Representations and
Warranties, will survive only for the period set forth in Section 5.3 of the Agreement.

 

    	 

    	 

    

 

This certificate
is delivered pursuant to Section 4.2(d) of the Agreement, and Seller’s liability hereunder is subject to Section 5.3 of the
Agreement, including the Cap as defined therein.

 

 

	 	 SH 23HUNDRED TIC, LLC, a Tennessee limited
liability company

	 	 	 

		By:	Stonehenge 23Hundred JV Member, LLC, a Tennessee limited liability company, its sole member

 

		By:	Stonehenge 23Hundred Manager, LLC, a Tennessee limited liability company, its Manager

 

		By:	Stonehenge Real Estate Group, LLC, a Georgia limited liability company, its Manager

 

	 	By:	                                                     
	 	Todd Jackovich, its Manager

 

	 	BGF 23HUNDRED, LLC, a Delaware limited liability
company	 

 

		By:	Bluerock Growth Fund, LLC, its sole member

 

		By:	Bluerock Fund Manager, LLC, its manager

 

		By:	                                                                  
	 	 	Jordan
Ruddy, its Authorized Signatory

 

[SIGNATURES
CONTINUED ON THE FOLLOWING PAGE]

 

    	 

    	 

    

 

	 	23HUNDRED, LLC, a Delaware limited liability company

 

	 	 By:	BR Stonehenge 23Hundred JV, LLC, its sole member
	 	 	 

		By:	BR Berry Hill Managing Member, LLC, its manager

 

	 	By:	BEMT Berry Hill, LLC, its manager
	 	 	 

		By:	Bluerock Residential Holdings, L.P., its sole member

 

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

 

		By:	                                                             
	 	 	Michael L. Konig, its Senior Vice President and Chief Operating Officer

 

    	 

    	 

    

 

Exhibits to Seller’s
Closing Certificate

 

Exhibit A   —      Updated Rent Roll

 

Exhibit B     —     Additional Items for Seller’s Disclosure
Schedule [if applicable]

 

    	 

    	 

    

 

Schedule 4.2(g)

 

FORM OF SELLER’S AFFIDAVIT

 

 

 

Seller’s Af f id avit

 

STATE OF                                                         

COUNTY OF                                                    

 

Personally appeared before me the undersigned deponents,
who, first being duly sworn, each deposes and says on oath the following:

 

1.          THAT
Todd Jackovich is the Manager of Stonehenge Real Estate Group, LLC, a Georgia limited liability company, the Manager of Stonehenge
23Hundred Manager, LLC, a Tennessee limited liability company, the Manager of Stonehenge 23Hundred JV Member, LLC, a Tennessee
limited liability company, the sole member of SH 23HUNDRED TIC, LLC, a Tennessee limited liability company (“Stonehenge”),
and in such capacity is familiar with the affairs of Stonehenge and is authorized to execute this Affidavit on behalf of Stonehenge;
and

 

2.          THAT
Jordan Ruddy is an Authorized Signatory of Bluerock Fund Manager, LLC, the Manager of Bluerock Growth Fund, LLC, the sole member
of BGF 23HUNDRED, LLC, a Delaware limited liability company (“BR1”), and in such capacity is familiar with the
affairs of BR1 and is authorized to execute this Affidavit on behalf of BR1; and

 

3.          THAT
Michael L. Konig is the Senior Vice President and Chief Operating Officer of Bluerock Residential Growth REIT, Inc., the general
partner of Bluerock Residential Holdings, L.P., the sole member of BEMT Berry Hill, LLC, the manager of BR Berry Hill Managing
Member, LLC, the manager of BR Stonehenge 23Hundred JV, LLC, the sole member of 23HUNDRED, LLC, a Delaware limited liability
company (“BR2”), and in such capacity is familiar with the affairs of BR2 and is authorized to execute this Affidavit
on behalf of BR2;

 

4.          That
Stonehenge, BR1 and BR2 collectively own, as tenants in common, those certain tracts or parcels of land more particularly described
on Ex hibit “A” attached hereto and by reference made a part hereof (the “Property”); and

 

5.          THAT
this Affidavit pertains to the Property; and

 

6.          THAT
none of Stonehenge, BR1 or BR2 has made improvements or repairs on the Property during the one hundred twenty (120) days immediately
preceding this date, and there are no outstanding bills incurred by any such parties for labor or materials used in making improvements
or repairs on the Property, or for services of architects, surveyors, engineers, or registered foresters incurred in connection
therewith; and

 

    	 

    	 

    

 

7.          THAT
there are no parties in possession claiming by, through or under Stonehenge, BR1 or BR2 except for those parties exercising their
rights as set forth on Exhibit “B” attached hereto and by reference made a part hereof; and

 

8.          THAT,
none of Stonehenge, BR1 or BR2 has engaged any broker’s services with regard to the sale or other conveyance of any interest
in the Property, except as set forth on the final approved closing statement for the sale of the Property; and

 

9.          THAT
each deponent has personal knowledge of the matters herein stated and makes this Affidavit for the purpose of inducing                                     to
issue its policy or policies of title insurance covering the Property; and

 

10.         THAT
there are not unpaid or unsatisfied special assessments for water, sewage or street improvements affecting title to the Property,
except as set forth in said Ex hibit “B. ”

 

    	 

    	 

    

 

	 	SH 23HUNDRED TIC, LLC, a Tennessee limited liability company
	 	 

		By:	Stonehenge 23Hundred JV Member, LLC, a Tennessee limited liability company, its sole member

 

		By:	Stonehenge 23Hundred Manager, LLC, a Tennessee limited liability company, its Manager

 

		By:	Stonehenge Real Estate Group, LLC, a Georgia limited liability company, its Manager

 

	 	By:	                                                                 
	 	Todd Jackovich, its Manager

 

Sworn to and subscribed before me,

this                         day
of                           , 20             .

 

(SEAL)

 

                                              

Notary Public

 

My Commission Expires:

 

                                              

 

(NOTARIAL SEAL)

 

    	 

    	 

    

	 	BGF 23HUNDRED, LLC, a Delaware limited liability company	 

 

		By:	Bluerock Growth Fund, LLC, its sole member

 

		By:	Bluerock Fund Manager, LLC, its manager

 

	 	By:	                                                               
	 	 	Jordan Ruddy, its Authorized Signatory

 

Sworn to and subscribed before me,

this         day
of                                            , 20          .

 

(SEAL)

 

                                                          

Notary Public

 

My Commission Expires:

 

                                                           

 

(NOTARIAL SEAL)

 

    	 

    	 

    

 

23HUNDRED, LLC, a Delaware limited liability
company

 

	 	By:	BR Stonehenge 23Hundred JV, LLC, its sole member
	 	 	 

		By:	BR Berry Hill Managing Member, LLC, its manager

 

	 	By:	BEMT Berry Hill, LLC, its manager
	 	 	 

		By:	Bluerock Residential Holdings, L.P., its sole member

 

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

 

		By:	                                                       
	 	 	Michael L. Konig, its Senior Vice President and Chief Operating Officer

 

Sworn to and subscribed before me,

this        day
of                                       , 20       .

 

(SEAL)

 

                                            

Notary Public

 

My Commission Expires:

                                               

 

(NOTARIAL SEAL)

 

    	 

    	 

    

 

Schedule 5.1

 

SELLER’S DISCLOSURE
STATEMENT

 

None.

 

    	 

    	 

    

 

Schedule 5.1(e)

 

SCHEDULE OF SERVICE CONTRACTS

 

	 	 	NAME OF AGREEMENT	 	PARTIES TO AGREEMENT
	 	 	 	 	 
	1.	 	Purchase and Order Agreement (Key Track System)	 	By  and  between  HandyTrac  and  23Hundred, LLC dated 10/22/13
	 	 	 	 	 
	2.	 	New Construction Subterranean Termite Service Record	 	With Southern Exterminating, Inc. dated 12/2/14
	 	 	 	 	 
	3.	 	AT&T Connected Communities MDU Non-Exclusive Marketing Contract ("Contract") New Construction Property	 	By and between BellSouth Telecommunications, LLC and 23Hundred, LLC dated 4/29/13
	 	 	 	 	 
	4.	 	Installation and Service Agreement	 	By and between Comcast of Nashville I, LLC and 23Hundred LLC dated 9/1/13
	 	 	 	 	 
	5.	 	Customer Service Agreement (Trash Collection)	 	By and between Allied Waste and 23Hundred Apartments dated 10/5/13
	 	 	 	 	 
	6.	 	Apartment Selector Listing Agreement	 	By and between Apartment Selector and Matrix Residential, as Agent of Stonehenge
	 	 	 	 	 
	7.	 	Internet Advertising Agreement	 	By and between Matrix Residential, as Management Company, and Apartments.com dated 6/10/14
	 	 	 	 	 
	8.	 	Service Agreement (Commercial Pest Management)	 	By and between Arrow Exterminators and Melissa White, on behalf of Management Company dated 7/15/13
	 	 	 	 	 
	9.	 	Contact at Once! Service Order Form (Online Messaging)	 	By  and  between  Contact  at  Once!  LLC  and 23Hundred dated 5/20/13
	 	 	 	 	 
	10.	 	Ad Insertion Agreement (Internet Advertising)	 	By and between For Rent Media Solutions and Matrix Residential, as Management Company for 23 Hundred at Berry Hill, dated 5/10/13
	 	 	 	 	 
	11.	 	Order Form (Text Messaging Service)	 	By and between IRIO and Dana Pate, Marketing Director for Matrix Residential, dated 5/9/13
	 	 	 	 	 
	12.	 	Order Form (Answering Service)	 	By and  between  RP  Newco  LLC  d/b/a  Level One and Matrix Residential, LLC dated 12/10/13
	 	 	 	 	 
	13.	 	Property Activation Agreement (Locator Service)	 	By and  between  Rent.com  and  Dana  Pate,  as Marketing Director of Matrix Residential, dated 5/9/13
	 	 	 	 	 
	14.	 	Service Agreement (Event Coordinators)	 	With Ctram, dated April 14, 2014

 

    	 

    	 

    

 

Schedule 5.4(b)(i)

 

LEASE RENEWAL AND AMENDMENT NOTICES

 

Lease renewal notices for leases expiring in November
2014:

 

	Apt #	 	Resident's Name	 	Lease 
Expiration 
Date
	463	 	[Personal information redacted]	 	11/21/2014
	465	 	[Personal information redacted]	 	11/21/2014
	471	 	[Personal information redacted]	 	11/24/2014
	475	 	[Personal information redacted]	 	11/21/2014
	477	 	[Personal information redacted]	 	11/21/2014
	487	 	[Personal information redacted]	 	11/21/2014

 

Lease renewal notices for leases expiring in December
2014:

 

	Apt #	 	Resident's Name	 	Lease 
Expiration 
Date
	483	 	[Personal information redacted]	 	12/1/2014
	371	 	[Personal information redacted]	 	12/3/2014
	373	 	[Personal information redacted]	 	12/3/2014
	370	 	[Personal information redacted]	 	12/4/2014
	369	 	[Personal information redacted]	 	12/5/2014
	391	 	[Personal information redacted]	 	12/11/2014
	265	 	[Personal information redacted]	 	12/13/2014
	268	 	[Personal information redacted]	 	12/13/2014
	375	 	[Personal information redacted]	 	12/13/2014
	383	 	[Personal information redacted]	 	12/13/2014
	479	 	[Personal information redacted]	 	12/13/2014
	281	 	[Personal information redacted]	 	12/17/2014
	270	 	[Personal information redacted]	 	12/25/2014
	287	 	[Personal information redacted]	 	12/26/2014
	168	 	[Personal information redacted]	 	12/27/2014
	269	 	[Personal information redacted]	 	12/27/2014
	389	 	[Personal information redacted]	 	12/31/2014

 

    	 

    	 

    

 

Lease renewal notices for leases expiring in January
2015:

 

	Apt #	 	Resident's Name	 	Lease 
Expiration 
Date
	169	 	[Personal information redacted]	 	1/2/2015
	365	 	[Personal information redacted]	 	1/2/2015
	467	 	[Personal information redacted]	 	1/2/2015
	185	 	[Personal information redacted]	 	1/4/2015
	171	 	[Personal information redacted]	 	1/5/2015
	379	 	[Personal information redacted]	 	1/5/2015
	470	 	[Personal information redacted]	 	1/5/2015
	179	 	[Personal information redacted]	 	1/6/2015
	377	 	[Personal information redacted]	 	1/6/2015
	170	 	[Personal information redacted]	 	1/12/2015
	285	 	[Personal information redacted]	 	1/13/2015
	363	 	[Personal information redacted]	 	1/13/2015
	271	 	[Personal information redacted]	 	1/26/2015
	277	 	[Personal information redacted]	 	1/27/2015
	546	 	[Personal information redacted]	 	1/30/2015
	291	 	[Personal information redacted]	 	1/31/2015
	481	 	[Personal information redacted]	 	1/31/2015

 

Lease renewal notices for leases expiring in February
2015:

 

	Apt #	 	Resident's Name	 	Lease 
Expiration 
Date
	552	 	[Personal information redacted]	 	2/1/2015
	5	 	[Personal information redacted]	 	2/1/2015
	177	 	[Personal information redacted]	 	2/2/2015
	165	 	[Personal information redacted]	 	2/11/2015
	6	 	[Personal information redacted]	 	2/13/2015
	504	 	[Personal information redacted]	 	2/13/2015
	554	 	[Personal information redacted]	 	2/13/2015
	101	 	[Personal information redacted]	 	2/23/2015
	531	 	[Personal information redacted]	 	2/23/2015
	506	 	[Personal information redacted]	 	2/24/2015
	7	 	[Personal information redacted]	 	2/25/2015
	515	 	[Personal information redacted]	 	2/25/2015
	289	 	[Personal information redacted]	 	2/27/2015
	404	 	[Personal information redacted]	 	2/27/2015

 

    	 

    	 

    

 

Schedule 5.4(b)(ii)

 

LEASING GUIDELINES

 

Application Fee: $125 

Administration Fee: $250

(For the majority of the lease
up the application fee was reduced to $50 and the Administration fee was reduced to $49 encourage prospect to apply within a 24
hour period.)

 

Deposit: $500 initial deposit, up
to $1400.

We also offered Lease Term solutions
as the Deposit alternative. $75 would cover up to $500, or $125 lease term (covers up to $1000) + $400 additional deposit.

 

Pet Policy

		·	No Aggressive Breeds

		·	$100 Pet Deposit for one pet - $200 Pet Deposit for two. (Refundable
upon move out)

		·	$250 one time pet fee – non-refundable.

		·	$10 per month pet rent

 

Late Fees

		·	Rent is considered late after the 5th of each month.

		·	Late fee varies per lease agreement. Originally it was 10% of the
leased rate. But we are in the process of changing this over to a flat $100 late fee.

		·	File evictions on the 10th of each month.

 

No upfront concessions were given
during the lease up. We used Gift Cards in lieu of concessions. We gave out (19) - $500 Gift Cards and one (1) - $250 Gift Card
for move in incentives.

 

    	 

    	 

    

 

Schedule 5.8(b)

 

SCHEDULE OF MUST TAKE SERVICE CONTRACTS

 

	 	 	NAME OF AGREEMENT	 	PARTIES TO AGREEMENT
	 	 	 	 	 
	1.	 	Purchase and Order Agreement (Key Track System)	 	By  and  between  HandyTrac  and  23Hundred, LLC dated 10/22/13
	 	 	 	 	 
	2.	 	New Construction Subterranean Termite Service Record	 	By  and  between  Southern  Exterminating,  Inc. and Builder dated 12/2/14
	 	 	 	 	 
	3.	 	AT&T Connected Communities MDU Non- Exclusive Marketing Contract ("Contract") New Construction Property	 	By and between BellSouth Telecommunications, LLC and 23Hundred, LLC dated 4/29/13
	 	 	 	 	 
	4.	 	Installation and Service Agreement	 	By and between Comcast of Nashville I, LLC and 23Hundred LLC dated 9/1/13
	 	 	 	 	 
	5.	 	Customer Service Agreement (Trash Collection)	 	By and between Allied Waste and 23Hundred Apartments dated 10/5/13
	 	 	 	 	 
	6.	 	Service Agreement (Commercial Pest Management)	 	By and between Arrow Exterminators and Melissa White, on behalf of Management Company dated 7/15/13
	 	 	 	 	 
	7.	 	Ad Insertion Agreement (Internet Advertising)	 	By and between For Rent Media Solutions and Matrix Residential, as Management  Company for 23 Hundred at Berry Hill, dated 5/10/13

 

    	 

    	 

    

 

Schedule 12.1

 

FORM OF CONDOMINIUM CONVERSION AGREEMENT

 

	Return after recording to:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

SPACE ABOVE THIS LINE FOR RECORDER’S USE

 

23Hundred at Berry Hill

 

PROHIBITION AGAINST

CONDOMINIUM
CONVERSION AGREEMENT

 

THIS PROHIBITION AGAINST
CONDOMINIUM CONVERSION AGREEMENT (the “Condominium Agreement”) is made and entered into as of, 20   ,
by and between________ (“Purchaser”) and each of SH 23HUNDRED TIC, LLC, a Tennessee limited liability company, BGF
23HUNDRED, LLC, a Delaware limited liability company, and 23HUNDRED, LLC, a Delaware limited
liability company, as tenants-in-common (collectively, “Seller”).

 

WITNESSETH:

 

WHEREAS, Seller and Purchaser
have entered into that certain Purchase and Sale Agreement dated as of December , 2014 (the “Sale Agreement”) relating
to the sale by Seller to Purchaser of that parcel of real property located in Davidson County, Tennessee, and more particularly
described on Exhibit “A” attached hereto (the “Land”), together with certain apartment buildings and related
personal property and other rights located thereon and relating thereto (the “Improvements” and the Land and the Improvements
collectively referred to herein as the “Property”).

 

WHEREAS, as a
condition to Seller conveying the Property to Purchaser and in consideration of Seller accepting the purchase price and conveying
the Property as set forth in the Sale Agreement to Purchaser, Purchaser has agreed with Seller to execute and record this Condominium
Agreement providing for certain restrictions relating to the future use of the Property for a period of time after the date of
this Condominium Agreement as more fully set forth herein.

 

    	 

    	 

    

 

NOW, THEREFORE,
in consideration of the mutual covenants and undertakings set forth herein, and other good and valuable consideration, the receipt
and sufficiency of which hereby are acknowledged, Seller and Purchaser hereby agree as follows:

 

Section 1. Definitions
and Interpretation. The following terms shall have the respective meanings assigned to them in this Section I unless the context
in which they are used clearly requires otherwise:

 

“Assumption Agreement” – As defined in
Section 2 hereof.

 

“Condominium
Conversion” - Shall mean the filing or recording of any document providing for the conversion of the Property to a form of
condominium ownership under any state or local statute or ordinance.

 

“County” - The county in which the Land is
located.

 

“Deed” - Limited Warranty Deed.

 

“Event of Default” - As defined in Section
11 hereof.

 

“First Mortgage” – As defined in Section 20(a) hereof.

 

“First Mortgagee” – As defined
in Section 20(a) hereof.

 

“Hazardous
Materials” or “Hazardous Substances” - Shall mean (i) hazardous wastes, hazardous materials, hazardous substances,
hazardous constituents, toxic substances or related materials, whether solids, liquids or gases, including but not limited to
substances defined as “hazardous wastes,” “hazardous materials,” “hazardous substances,” “toxic
substances,” “pollutants,” “contaminants,” “radioactive materials”, “toxic pollutants”,
or other similar designations in, or otherwise subject to regulation under, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended (“CERCLA”), 42 U.S.C. § 9601 et seq.; the Toxic Substance Control
Act (“TSCA”), 15 U.S.C. § 2601 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 1802;
the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 9601, et seq.; the Clean Water Act (“CWA”),
33 U.S.C. § 1251 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 300f et seq.; the Clean Air Act (“CAA”),
42 U.S.C. § 7401 et seq.; any Regional Water Quality Control Board; and in any permits, licenses, approvals, plans,
rules, regulations or ordinances adopted, or other criteria and guidelines promulgated pursuant to the preceding laws or other
similar federal, state or local laws, regulations, rules or ordinance now or hereafter in effect relating to environmental matters;
and (ii) any other substances, constituents or wastes subject to any applicable federal, state or local law, regulation or ordinance,
including any environmental law, now or hereafter in effect, including but not limited to (A) petroleum, (B) refined
petroleum products, (C) waste oil, (D) waste aviation or motor vehicle fuel and their byproducts, (E) asbestos,
(F) lead in water, paint or elsewhere, (G) radon, (H) Polychlorinated Biphenyls (PCB’s), (I) ureaformaldehyde,
(J) volatile organic compounds (VOC), (K) total petroleum hydrocarbons (TPH), (L) benzene derivative (BTEX),
(M) petroleum byproducts and (N) methane gas or any of its derivatives.

 

    	 

    	 

    

 

“Improvements” - As defined in the Recitals
hereof.

 

“Indemnified Parties” - As defined in Section
3 hereof.

 

“Land” - As defined in the Recitals hereof.

 

“Property” - As defined in the Recitals hereof.

 

“Property Conditions” - As defined in Section
3 hereof.

 

“Residential
Rental Property” - Shall mean property used for the rental of apartments to the general public under leases providing for
residential use by any occupant of any apartment.

 

“Purchaser”
- As defined in the Preamble hereof. In the event more than one person and/or entity executes this Condominium Agreement as Purchaser,
each such person and/or entity which comprises Purchaser under this Condominium Agreement shall be jointly and severally liable
for all of the obligations, covenants, liabilities and indemnifications of the Purchaser under this Condominium Agreement.

 

“Seller” - As defined in the Preamble hereof.
“Term” - As defined in Section 7 herein.

 

“Units”
- Shall mean any portion of the Property created in connection with any Condominium Conversion.

 

Section 2. Residential
Rental Property. The Purchaser hereby acknowledges and agrees that during the Term of this Condominium Agreement:

 

(a.)            The
Property shall at all times be used as Residential Rental Property.

 

(b.)            The
Property shall not be subject to any Condominium Conversion and neither shall any portion of the Property be converted to Units
for sale in connection with a Condominium Conversion nor shall the title to any such Units be transferred to any party.

 

(c.)            No
part of the Property will at any time be owned or used as a cooperative housing corporation, community apartment property or stock
corporation.

 

The Purchaser hereby covenants and
agrees to include the requirements and restrictions contained in this Condominium Agreement in any documents transferring any interest
(other than a leasehold interest to an individual tenant) in the Property to another person to the end that such transferee had
notice of, and is bound by, the requirements and restrictions hereof, and to obtain the agreement from any transferee in the form
of Exhibit B attached hereto (the “Assumption Agreement”) requiring said transferee to abide to all the requirements
and restrictions contained in this Condominium Agreement.

 

    	 

    	 

    

 

 

Section 3.
Indemnification. In the event any of the provisions of Section 2 hereof are breached, Purchaser agrees to indemnify, defend
and hold harmless the Seller, and each of its members, partners, officers, directors, trustees, affiliates, including but not limited
to parents, subsidiaries, shareholders, managers, beneficiaries, employees and agents (collectively, the “Indemnified Parties”)
from any and all demands, claims, including claims for personal injury, property damage or death, legal or administrative proceedings,
losses, liabilities, damages, penalties, fines, liens, judgments, costs or expenses whatsoever, whether in tort, contract or otherwise
(including without limitation, court costs and attorneys’ fees and disbursements) arising out of, or in any way relating
to: (a) claims made or brought by any party or parties who acquire or contract to acquire any ownership interest in the Property
following the date hereof, their agents, employees and successors and assigns in connection with or related to (i) the physical
condition of the Property including, without limitation, latent or patent defects, and claims relating to the existence of asbestos,
any other construction defects, claims relating to mold, all structural and seismic elements, all mechanical, electrical, plumbing,
sewage, heating, ventilating, air conditioning and other systems, the environmental condition of the Property and the presence
of Hazardous Materials or Hazardous Substances on, under or about the Property, and (ii) any law or regulation applicable to the
Property, including, without limitation, any environmental law and any other federal, state or local law (the matters described
in (i) and (ii) hereof collectively the “Property Conditions”); and (b) a breach of any of the covenants, terms and
conditions of this Condominium Agreement by Purchaser or its successors and assigns. Purchaser and each of its successors and assigns
do now and shall at all times consent to the right of Indemnified Parties to approve and appoint defense counsel and to participate
in or assume the defense of any claim. Until any determination is made in any appropriate legal proceeding challenging the obligation
of Purchaser herein, Purchaser’s obligations under all the terms and provisions of this Section shall remain in full force
and effect. Purchaser acknowledges that it is a sophisticated and experienced purchaser of real estate and has reviewed with its
counsel the full meaning and affect of the foregoing indemnity.

 

Purchaser’s Initials  

 

Section 4.
Consideration. In consideration of the Seller’s acceptance of the purchase price for the Property from Purchaser,
Purchaser has entered into this Condominium Agreement and has agreed to restrict the uses to which the Property can be put on the
terms and conditions set forth herein.

 

Section 5.
Sale or Transfer of the Property. The Purchaser hereby covenants and agrees not to sell, transfer or otherwise dispose of
the Property, or any portion thereof (other than for individual tenant use as contemplated hereunder), without obtaining from the
Purchaser’s purchaser or transferee the executed Assumption Agreement assuming the Purchaser’s duties and obligations
under this Condominium Agreement and recording same in the real estate records of the County.

 

Section 6. Intentionally deleted.

 

    	 

    	 

    

 

Section 7.
Term. This Condominium Agreement and all and several of the terms hereof shall become effective upon its execution and delivery
and shall remain in full force and effect until November 1, 2018 (the “Term”). Upon the termination of the Term of
this Condominium Agreement, the parties hereto agree to execute, deliver and record appropriate instruments of release and discharge
of the terms hereof; provided, however, that the execution and delivery of such instruments shall not be necessary or a prerequisite
to the termination of this Condominium Agreement in accordance with its terms.

 

Section 8.
Covenants to Run With the Land. The Purchaser and Seller hereby subject the Property to the covenants, reservations and
restrictions set forth in this Condominium Agreement. The Purchaser and the Seller hereby declare their express intent that the
covenants, reservations and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and
be binding upon the Purchaser’s successors in title to the Property; provided, however, that on the termination of this Condominium
Agreement said covenants, reservations and restrictions shall expire. Each and every contract, deed or other instrument hereafter
executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered
and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions
are set forth in such contract, deed or other instrument.

 

Section 9.
Burden and Benefit. The Purchaser and Seller hereby declare their understanding and intent that the burden of the covenants
set forth herein touch and concern the Land in that the Purchaser’s legal interest in the Property is rendered less valuable
thereby. The Purchaser and Seller hereby further declare their understanding and intent that the benefit of such covenants touch
and concern the Land by enhancing and increasing the enjoyment and use of the Property by persons entitled to rent the apartments
contained therein.

 

Section 10.
Uniformity: Common Plan. The covenants, reservations and restrictions hereof shall apply uniformly to the entire Property
in order to establish and carry out a common plan for the use of the Property.

 

Section 11.
Enforcement. If the Purchaser or any of its successors or assigns defaults in the performance or observance of any covenant,
agreement or obligation of the Purchaser and its successors or assigns set forth in this Condominium Agreement, then the Seller
or any of the Indemnified Parties may declare an “Event of Default” to have occurred hereunder, and, at any of said
Parties option, it may take any one or more of the following steps: (a) by mandamus or other suit, action or proceeding at law
or in equity, to require the Purchaser and its successors and assigns to perform its obligations and covenants hereunder, or enjoin
any acts or things which may be unlawful or in violation of the rights of the Seller hereunder; (b) have access to and inspect,
examine and make copies of all of the books and records of the Purchaser pertaining to the Property; or (c) take such other action
at law or in equity as may appear necessary or desirable to enforce the obligations, covenants and agreements of the Purchaser
hereunder. All rights and remedies as set forth herein shall be cumulative and non-exclusive to the extent permitted by law.

 

Section 12.
Recording and Filing. The Purchaser shall cause this Condominium Agreement and all amendments and supplements hereto and
thereto, to be recorded and filed in the real property records of the County and in such other places as the Seller may reasonably
request. The Seller shall pay all fees and charges incurred in connection with any such recording.

 

    	 

    	 

    

 

Section 13.
Attorneys ’ Fe es . In the event that a party to this Condominium Agreement brings an action against any other party
to this Condominium Agreement by reason of the breach of any condition or covenant, representation or warranty in this Condominium
Agreement, or otherwise arising out of this Condominium Agreement, the prevailing party in such action shall be entitled to recover
from the other reasonable attorneys’ fees to be fixed by the court which shall render a judgment, as well as the costs of
suit.

 

Section 14.
Governing Law. This Condominium Agreement shall be governed by the laws of the State of Tennessee.

 

Section 15.
Amendments. This Condominium Agreement shall be amended only with the express written consent of the Seller, by a written
instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County.

 

Section 16. Intentionally Omitted.

 

Section 17.
Notice. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, certified
or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as
may be specified in writing by the parties hereto:

 

TO SELLER:

 

SH 23Hundred TIC, LLC

BGF 23Hundred, LLC

23Hundred,
LLC

c/o Stonehenge Real Estate Group, LLC

3200 West End
Avenue, Suite 500

Nashville, TN 37203

Attention: Todd Jackovich

 

With a copy to:

 

Eric R. Wilensky, Esq.

Nelson Mullins Riley & Scarborough LLP

Atlantic
Station

201 17th Street NW, Suite 1700

Atlanta, GA 30363

 

 

    	 

    	 

    

 

TO PURCHASER:

 

                                                           

c/o Sentinel Real Estate Corporation

1251 Avenue of the Americas

New York, NY 10020

Attention: Noel G. Belli

belli@sentinelcorp.com

 

and

 

                                                                

c/o Sentinel Real Estate Corporation

1251 Avenue of the Americas

New York, NY 10020

Attention:
Millie Cassidy

 

With a copy to:

 

Seward & Kissel LLP

One Battery Park Plaza

New York, NY 10004

Attention: Mark Brody, Esq.

 

Notice shall be deemed given three business days after
the date of mailing, by certified mail, postage prepaid, return receipt requested, or, if personally delivered, when received.

 

Section 18.
Severability. If any provision of this Condominium Agreement shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby.

 

Section 19.
Multiple Counterparts. This Condominium Agreement may be simultaneously executed in multiple counterparts, all of which
shall constitute one and the same instrument, and each of which shall be deemed to be an original.

 

Section 20.  Mortga gee’s Ri ghts .

 

(a)    Definitions.
For purposes of this Section 20, the following terms shall have the following meanings:

 

“First
Mortgage” shall mean any bona-fide unpaid and outstanding mortgage or deed of trust on the Property or other instrument creating
a security interest against the Property having priority of record over all other recorded liens except those governmental liens
and statutory liens which are made superior by statute.

 

“First Mortgagee” shall mean the holder
of any First Mortgage.

 

    	 

    	 

    

 

(b)          Transfer
of Property to or from First Mortgagee. Notwithstanding the provisions of Section 5 hereof, no sale, transfer, or other disposition
of the Property including, but not limited to, a conveyance pursuant to a deed-in-lieu of foreclosure or the sale of the Property
at a foreclosure to (i) a First Mortgagee, (ii) an affiliate of a First Mortgagee, (iii) a purchaser at a foreclosure sale, and
(iv) any transferee of a First Mortgagee or affiliate of a First Mortgagee (collectively a “Foreclosure Purchaser”),
shall require the execution and delivery of the Assumption Agreement by the Foreclosure Purchaser as called for under Section 5
of this Condominium Agreement. Nothing in this paragraph shall be deemed to negate or make unenforceable any other covenant of
this Condominium Agreement against said Foreclosure Purchaser including but not limited to the restrictions contained in Section
2 and said Foreclosure Purchaser by taking title to the Property agrees that it has assumed and shall be bound by said restrictions
in Section 2, and the provisions of Section 5, in connection with any subsequent sale or transfer of the Property, and all other
terms and conditions of this Condominium Agreement.

 

(c)          No
Amendments. No amendment of this Condominium Agreement shall be effective without the written consent and approval of any First
Mortgagee, which shall not be unreasonably withheld, conditioned and/or delayed.

 

Section 21.
Joint and Several Liability of Purchaser. In the event more than one person and/or entity executes this Condominium Agreement
as Purchaser, each such person and/or entity which comprises Purchaser under this Condominium Agreement shall be jointly and severally
liable for all of the obligations, covenants, liabilities and indemnifications of the Purchaser under this Condominium Agreement.

 

Section 22.
Limitation on Owner Liability. Purchaser and Seller specifically agree and acknowledge that, as to Purchaser and each successive
owner of the Property during the Term, each such owner of the Property shall be liable solely for breaches occurring under Section
2 of this Condominium Agreement, if any, during such owner’s ownership of the Property, and not for any breaches occurring
prior to or subsequent to its ownership of the Property.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties
hereto have executed the Condominium Agreement as of the day and year first written above.

 

	 	SELLER:
	 	 
	 	SH 23HUNDRED TIC, LLC, a Tennessee limited liability company

 

	 	By:	Stonehenge 23Hundred JV Member, LLC, a Tennessee limited liability company, its sole member

	 	 	 
	 	By:	Stonehenge 23Hundred  Manager, LLC, a Tennessee limited liability company, its Manager

	 	 	 
	 	By:	Stonehenge  Real  Estate Group, LLC, a Georgia limited liability company, its Manager

 

	 	By: 	                                                    
	 	Todd Jackovich, its Manager

 

STATE OF                 )

COUNTY OF              )

 

Personally
appeared before
me,                           ,
Notary Public,                          ,
with whom I am personally acquainted and who acknowledged that he executed the within instrument for the purposes therein
contained, and who further acknowledged that he is acting in his capacity
as                          of                          , a                         ,
and that he is authorized by said                           ,
to execute this instrument on behalf of                          .

 

WITNESS my hand, at office, this                   day
of                   , 20      .

 

                                                                                           

Notary Public

My Commission Expires:                                                  

 

    	 

    	 

    

 

	 	SELLER:
	 	 
	 	BGF 23HUNDRED, LLC, a Delaware limited liability company

	 	 	 
	 	By:	Bluerock Growth Fund, LLC, its sole member

	 	 	 
	 	By:	Bluerock Fund Manager, LLC, its manager

	 	 	 
	 	By:	                                                                      
	 	 	Jordan Ruddy, its Authorized Signatory

 

STATE OF                 )

COUNTY OF              )

 

Personally appeared before me,               ,
Notary Public,               , with whom I am personally
acquainted and who acknowledged that he executed the within instrument for the purposes therein contained, and who further acknowledged
that he is acting in his capacity as              
of                , a_________, and that
he is authorized by said                        ,
to execute this instrument on behalf of              .

 

WITNESS my hand, at office, this              
day of              , 20               .

 

                                                                                                      

 Notary Public

My Commission Expires:                                                          

 

    	 

    	 

    

 

 

 

	 	SELLER:
	 	 	 
	 	23HUNDRED, LLC, a Delaware limited liability company
	 	 	 
	 	By:	BR Stonehenge 23Hundred JV, LLC, its sole member
	 	 	  	 

	 	By: 	 BR Berry  Hill Managing  Member, LLC, its manager

 

	 	By:	BEMT Berry Hill, LLC, its manager

 

	 	By:	Bluerock Residential Holdings, L.P., its sole member

 

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

 

	 	By:	                                                              
	 	 	Michael L. Konig, its Senior Vice President and Chief Operating Officer

 

STATE OF                         )

COUNTY OF                      )

 

Personally appeared
before me,                          
, Notary Public,                          
, with whom I am personally acquainted and who acknowledged that he executed the within instrument for the purposes therein
contained, and who further  acknowledged that he is acting in his capacity as                         of
                          ,
a                         ,
and that he is authorized by said                          ,
to execute this instrument on behalf of                         .

 

WITNESS my hand, at office, this                  day
of              , 20      .

  

                                                                                                      

 Notary Public

My Commission Expires:                                                          

  

    	 

    	 

    

 

 

	 	PURCHASER:
	 	 
	 	________________________, a ___________________
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

STATE OF__________)

COUNTY OF________)

 

Personally appeared
before me, ___________________, Notary Public, ___________________, with whom I am personally acquainted and who acknowledged that
he executed the within instrument for the purposes therein contained, and who further acknowledged that he is acting in his capacity
as ___________________of ___________________, a ___________________, and that he is authorized by said ___________________,
to execute this instrument on behalf of ______________________.

 

WITNESS my hand, at office, this ____ day of ________________,
20__.

 

	 	 
	 	Notary Public
	 	My Commission Expires:                                                   

  

    	 

    	 

    

 

EXHIBIT A

 

[Legal Description of Land]

 

 

    	 

    	 

    

 

EXHIBIT B

 

 

space above this line for recorder’s
use

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

THIS ASSIGNMENT
AND ASSUMPTION AGREEMENT (this “Agreement”) is made as of this____day of_________,____ , by and between______________________
(the “Assignor”), and ___________________, a ___________________ (the “Assignee”). This Agreement is hereby
deemed to be effective by the parties hereto as of the date of recordation of the Deed transferring title to the Project (as defined
below) from the Assignor to the Assignee (the “Deed Recordation Date”).

 

WITNESSETH:

 

WHEREAS,
Assignor is a party to that certain Prohibition Against Condominium Conversion Agreement (“Condominium Agreement”)
with _____________________\, as seller, dated as of________________20          , and
recorded in Book          , Page encumbering the land and all improvements thereon
(the “Project”) as legally described in Exhibit “A” attached hereto; and

 

WHEREAS,
the Assignee desires to acquire and the Assignor desires to sell, convey, and transfer to the Assignee, the Assignor’s entire
ownership interest in the Project, which sale, conveyance, and transfer requires the assumption by the Assignee of the rights,
duties, and obligations of the Assignor under the Condominium Agreement relating to the period from and after the Deed Recordation
Date; and

 

WHEREAS,
the Assignee is willing to assume such obligations under the Condominium Agreement.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

1.Recitals
and Definitions. The recitals set forth above are true and accurate and are incorporated herein by reference. All capitalized terms
used herein and not otherwise defined herein shall have the respective meanings given to such terms in the Condominium Agreement.

 

    	 

    	 

    

  

2.  Assignment
and Assumption. The Assignor hereby assigns to the Assignee all of the Assignor’s right, title, duties and obligations under
the Condominium Agreement, and the Assignee hereby accepts and unconditionally assumes in full and agrees to be bound by and perform
all of the duties, agreements, indemnities, and obligations of the Assignor under the Condominium Agreement arising from and after
the Deed Recordation Date, which assumption shall be effective upon the Deed Recordation Date. Nothing contained herein shall release
Assignor from any obligations arising under the Condominium Agreement.

 

3.  Representations,
Warranties and Covenants.

 

A. The
Assignor hereby represents, warrants, and covenants that to its knowledge (i) it is not in default under any of the covenants,
representations, or warranties contained in the Condominium Agreement, (ii) it has not received any notice of default relating
to the Condominium Agreement.

 

B.       The
Assignee hereby represents, warrants, and covenants that by its execution of this Agreement (i) it has unconditionally assumed
in full all of the duties, agreements, and obligations of the Assignor under the Condominium Agreement, which assumption shall
be effective upon the Deed Recordation Date and (ii) covenants not to assert against any of the Indemnified Parties defined in
the Condominium Agreement, any claims relating to the Property Conditions defined in the Condominium Agreement.

 

4.  Notice.
All correspondence and notices given or required to be given to the Assignor under the Condominium Agreement, from and after the
Deed Recordation Date, shall be provided to the Assignee and shall be addressed as follows:

 

	Assignee:	 	 
	 	 	 
	 	 	 
	 	 	Attn: __________________________________
	 	 	Telephone:______________________________
	 	 	Email:

 

	With a copy to:	 	 
	 	 	 
	 	 	 
	 	 	Attn:___________________________________
	 	 	Telephone:______________________________
	 	 	Email:

 

	Assignor:	 	 
	 	 	 
	 	 	 
	 	 	Attn:___________________________________
	 	 	Telephone:______________________________
	 	 	Email:__________________________________

 

    	 

    	 

    

  

	With a copy to:	 	 
	 	 	 
	 	 	 
	 	 	Attn:___________________________________
	 	 	Telephone:______________________________
	 	 	Email:__________________________________

 

5.  Severability.
If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining portions hereof shall not in any way be affected or impaired thereby.

 

6.  Joint
and Several Liability of Assignee. In the event more than one person and/or entity executes this Agreement as Assignee, each such
person and/or entity which comprises Assignee under this Agreement shall be jointly and severally liable for all of the obligations,
covenants, liabilities and indemnifications of the Assignee under this Agreement and of the Purchaser under the Condominium Agreement.

 

7.  Successors
and Assigns. This Agreement applies to, inures to the benefit of, and binds all parties hereto and their respective successors
and assigns.

 

8.  Counterparts.
This Agreement may be executed in multiple counterparts, all of which, when taken together, shall be deemed an original upon execution.

 

[SIGNATURES ON FOLLOWING PAGE]

 

    	 

    	 

    

  

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement on the date first above written.

 

ASSIGNOR:

 

__________________________,

a __________________________

 

	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	WITNESS:	 
	 	 	 
	 	 	 
	Name:	 	 

 

STATE OF______________)

COUNTY OF____________)

 

Personally appeared
before me, ___________________, Notary Public, ___________________, with whom I am personally acquainted and who acknowledged that
he executed the within instrument for the purposes therein contained, and who further acknowledged that he is acting in his capacity
as ___________________of ___________________, a ___________________, and that he is authorized by said ___________________,
to execute this instrument on behalf of ______________________.

 

WITNESS my hand, at office, this ____ day of ________________,
20__. 

 

	 	 
	 	Notary Public
	 	My Commission Expires:                                                   

  

    	 

    	 

    

  

ASSIGNEE:

 

__________________________,

a __________________________

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

STATE OF______________)

COUNTY OF____________)

 

Personally appeared
before me, ___________________, Notary Public, ___________________, with whom I am personally acquainted and who acknowledged that
he executed the within instrument for the purposes therein contained, and who further acknowledged that he is acting in his capacity
as ___________________of ___________________, a ___________________, and that he is authorized by said ___________________,
to execute this instrument on behalf of ______________________.

 

WITNESS my hand, at office, this ____ day of ________________,
20__.

 

	 	 
	 	Notary Public
	 	My Commission Expires:                                                   

 

    	 

    	 

    

  

EXHIBIT A

 

[Legal Description of Project]

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