Document:

Exhibit
10.448 

 

LIMITED LIABILITY
COMPANY AGREEMENT

OF BR ARCHCO MOREHEAD MEZZ, LLC

 

This Limited Liability Company Agreement (this
“Agreement”), dated as of December 29, 2016, is executed by BR ArchCo Morehead JV, LLC, a Delaware limited liability
company (“Sole Member”).

 

ARTICLE 1.

ORGANIZATIONAL MATTERS

 

		1.1	Members.

 

Sole Member is hereby admitted as a Member of
the Company, effective upon execution of this Agreement or, if later, the date of filing of a certificate of formation for the
Company with the Secretary of State of the State of Delaware. Sole Member is the sole initial Member of the Company as of the date
of this Agreement.

 

		1.2	Name.

 

The name of the Company is BR ArchCo Morehead
Mezz, LLC. The Members may adopt one or more fictitious names or trade names for use by the Company and may abandon any fictitious
name or trade name adopted by the Company. The Members will make all filings required under applicable laws in connection with
the adoption or use by the Company of any fictitious name or trade name.

 

		1.3	Registered Agent; Registered Office.

 

(A)         The
Company’s registered agent, as required by § 19-104 of the LLC Act, is National Registered Agents, Inc. The Members
may change the Company’s registered agent from time to time, and upon resignation or removal of the Company’s registered
agent, the Members may appoint a new registered agent for the Company. The Members shall file such amendment to the Company’s
certificate of formation as may be required by the LLC Act to reflect any change in the Company’s registered agent.

 

(B)         The
Company’s initial registered office is 160 Greentree Drive, Suite 101, City of Dover, Delaware 19904. The Members or the
Company’s registered agent may change the location of the Company’s registered office from time to time, provided that
notice of the change is filed in accordance with the LLC Act.

 

		1.4	Purpose.

 

(A)         The
purposes of the Company will be (i) to develop the Project, either directly or through its subsidiary, BR ArchCo Morehead, LLC,
a Delaware limited liability company (the “Property Owner”), (ii) to hold ownership interests in the Property
Owner, and to act as a member of the Property Owner, and to take action in the management of the Property Owner and its business,
and (iii) to carry out other activities incident to the purposes enumerated in this Section 1.4(A).

 

(B)         For
purposes of this Section 1.4, development of the Project includes (i) acquisition and ownership of the Land by the Company
or the Property Owner, (ii) construction and development of the Project, and constructing other facilities (including facilities
not on the Land) to the extent required by governmental authorities or otherwise appropriate for the Project, (iii) acquisition,
ownership, leasing, operation, maintenance, management, repair, financing, refinancing, sale or other disposition and other dealings
with the Project and (iv) other business typical for an owner or operator of a development similar to the Project.

 

     

     

    

 

(C)         The
purposes of the Company include borrowing money to finance development of the Project and the conduct of the business of the Company
or the Property Owner, including paying costs of developing, constructing or operating the Project or making loans, advances or
contributions to the Property Owner for such purpose, all subject to any requirement for approval by the Members contained in this
Agreement.

 

(D)         The
Members acknowledge that the Project is to be developed and held for investment with the intent of maximizing the return to the
Members, but such investment intent shall not preclude a disposition of the Project at any time otherwise allowed by this Agreement.

 

ARTICLE 2.

DEFINED TERMS AND INTERPRETATION

 

		2.1	Defined Terms.

 

Terms listed below have the respective meanings
assigned to them below when used in this Agreement, unless the context requires otherwise:

 

“Capital Contributions” means all
contributions to the capital of the Company made in accordance with the provisions of this Agreement.

 

“Code” means the Internal Revenue
Code of 1986, as previously amended and as amended in the future, or any successor statute. A reference to a particular provision
of the Code includes all successor provision, even if the successor provision is numbered differently.

 

“Company” means the limited liability
company governed by this Agreement.

 

“Construction Financing Documents”
means documents evidencing, securing, or guaranteeing the Construction Loan and/or the Mezzanine Loan.

 

“Construction Lender” means Bank
of the Ozarks.

 

“Construction Loan” means a loan
from the Construction Lender to the Property Owner in the maximum amount of $34,500,000, secured by the Project and any other property
of the Property Owner.

 

“Construction Loan Agreement” means
that certain Construction Loan Agreement between the Construction Lender and the Property Owner for the Construction Loan.

 

“Land” means the parcels of land
located in Mecklenburg County, North Carolina, and being more particularly described on Exhibit A attached hereto and by
this reference incorporated herein.

 

“LLC Act” means the Delaware Limited
Liability Company Act, Title 6, Chapter 18 of the Delaware Code, as previously amended and as amended in the future; provided
that, except as otherwise provided by law, future amendments of such statute will apply to the relationship of the Members
in respect of the Company only to the extent agreed by the Members at the time.

 

“Member” means the Sole Member or
any other person who is admitted as a member of the Company in accordance with the LLC Act, but excluding any Member who has transferred
its entire interest in the Company.

 

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“Membership Interest” is defined
in Section 8.1(A) of this Agreement.

 

“Membership Interest Certificate”
is defined in Section 8.1(A) of this Agreement.

 

“Mezzanine Lender” means Nationwide
Mutual Fire Insurance Company, an Ohio mutual insurance company.

 

“Mezzanine Loan” means a loan from
the Mezzanine Lender to the Company in the maximum principal amount of $7,250,000, secured primarily by (i) the Company’s
ownership interest in the Property Owner and (ii) the ownership interest of BR ArchCo Morehead JV, LLC, a Delaware limited liability
company, in the Company.

 

“Mezzanine Loan Agreement” means
that certain Loan Agreement between the Mezzanine Lender and the Company for the Mezzanine Loan.

 

“Project” means the Land and the
apartment community (expected to contain approximately 286 residential units) and related amenities to be constructed on the Land.

 

“Property Owner” is defined in Section
1.4(A) of this Agreement.

 

“Sole Member” is defined in the
preamble of this Agreement.

 

“Treasury Regulation” means all
proposed, temporary and final Income Tax Regulations promulgated by the Department of the Treasury pursuant to the Code or, to
the extent applicable, any predecessor statute. A reference to a particular provision of the Treasury Regulations includes all
successor provisions to that provision, even if the successor provisions are numbered differently.

 

		2.2	Interpretation.

 

(A)         In
this Agreement, if the context requires, one gender includes other genders, the singular includes the plural, and the plural includes
the singular.

 

(B)         The
Section headings in this Agreement have been inserted for convenience of reference and are not to be considered in interpreting
this Agreement.

 

(C)         References
to “Articles” and “Sections” are to the various subdivisions of this Agreement as originally executed,
unless reference is specifically made to another document.

 

(D)         A
determination that any provision of this Agreement is invalid or unenforceable in a given circumstance will not affect the validity
or enforceability of the other provisions of this Agreement or the validity or enforceability of the same provision in other circumstances.

 

(E)         This
Agreement is to be governed by the laws of the State of Delaware, without giving effect to principles of conflicts of law.

 

(F)         The
words “include” and “including” and similar words, when used to introduce a list of specifics, are intended
to be illustrative and not limiting.

 

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ARTICLE 3.

CAPITALIZATION

 

		3.1	Capital Contributions.

 

(A)         Sole
Member has made, or immediately upon its admission to the Company shall make, a Capital Contribution in the amount shown on the
signature page of this Agreement.

 

(B)         Any
Member may make additional Capital Contributions to the Company from time to time as it considers necessary for the Company’s
business. A Member will have no obligation to make any additional Capital Contribution.

 

(C)         
A decision to make additional Capital Contributions is discretionary to the Members. A creditor of the Company may not assume a
Member’s willingness to make any additional Capital Contribution, nor may a creditor of the Company rely on a Member’s
election to make any additional Capital Contribution until the Capital Contribution is actually funded to the Company. Any obligation
for Capital Contributions may be waived by agreement of the Members at any time, either before or after the date required for funding,
§ 17-502 of the LLC Act notwithstanding.

 

		3.2	Miscellaneous Provisions Regarding Capital.

 

A Member will not be entitled to withdraw any
part of its Capital Contributions or to receive any distribution from the Company, except as specifically provided in this Agreement.
A Member will have no right to receive property other than cash from the Company as a distribution. No interest or other return
will be paid on any Capital Contribution, except as expressly provided in this Agreement.

 

ARTICLE 4.

MANAGEMENT OF COMPANY AFFAIRS

 

		4.1	Generally.

 

(A)         The
business and affairs of the Company will be managed by the Members. Each Member will have such authority in management of the Company’s
business and affairs as allowed by the LLC Act.

 

(B)         Except
as otherwise agreed by all Members, no Member will receive any compensation from the Company for its participation in managing
the business and affairs of the Company. However, a Member will be entitled to reimbursement for all expenses incurred by it in
managing the business or affairs of the Company (including reimbursement for services or materials provided through affiliates
of the Member) and for any amount that the Member pays to satisfy obligations or liabilities of the Company; provided that
reimbursement will be subject to limitations imposed by the terms of the Mezzanine Loan until Final Payment (as defined in the
Mezzanine Loan Agreement).

 

(C)         A
Member need devote to the Company only so much of the Member’s time and attention as, in the Member’s judgment, is
necessary to manage the business and affairs of the Company.

 

		4.2	Liability; Indemnity.

 

(A)         A
Member will not be liable or accountable, in damages or otherwise, to the Company or the other Members for anything the Member
does or refrains from doing in managing the business and affairs of the Company, except in the case of acts or omissions that constitute
fraud, gross negligence or willful or wanton misconduct.

 

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(B)         The
Company will indemnify, defend and hold harmless each Member, each person who holds a direct or indirect ownership interest in
a Member and the respective officers, directors, managers, trustees, agents, employees, affiliates and professional or other advisors
of a Member or any such owner against any and all loss, cost, damage, expense or liability (including fees and expenses of attorneys
and other professional advisors and court costs) incurred by any of them by reason of anything any one or more of them does or
refrains from doing for, or in connection with the business or affairs of, the Company, excluding acts or omissions that constitute
fraud, gross negligence or willful or wanton misconduct.

 

(C)         The
rights under this Section 4.2 will not limit other rights which any person may have at law or in equity, including common law rights
to indemnification, reimbursement or contribution. The rights of a person under this Section 4.2 will not be effected by any change
in the relationship between such person or its affiliates, on one hand, and the Company, on the other hand, or except to the extent
otherwise agreed by such person, any change in the terms of this Section 4.2 that becomes effective after such person takes
action or refrains from acting in reliance on this Section 4.2.

 

(D)         Rights
under this Section 4.2 will be subject to limitations imposed by the terms of the Mezzanine Loan until Final Payment (as defined
in the Mezzanine Loan Agreement).

 

		4.3	Officers.

 

The Members may designate a president, one or
more vice president, a treasurer, a secretary or other officers for the Company. An individual may hold more than one office. Each
individual listed in Exhibit C is hereby designated as an officer of the Company, holding the respective office or offices
indicated opposite his or her name. Except for the officers designated in this Section 4.3, officers will be elected by the Members.
Each officer will serve until his or her death, permanent disability, resignation or removal. An officer may resign at any time.
An officer may be removed at any time, with or without cause, by the Members. The Company’s officers will have such authority
and shall perform such functions as specified by the Members or as otherwise are customarily incident to their respective offices,
in all cases subject to direction of the Members. An officer will not be entitled to compensation from the Company. An officer
will be entitled to reimbursement from the Company for reasonable expenses incurred in the performance of his or her duties as
an officer, subject to the expense reimbursement policies approved by the Members, if any. An officer of the Company will not be
liable or accountable, in damages or otherwise, to the Company or the Members for anything the officer does or refrains from doing
in connection with the business and affairs of the Company, except in the case of acts or omissions of the officer that constitute
fraud, gross negligence or willful or wanton misconduct. The Company will indemnify, defend and hold harmless each officer of the
Company against any and all loss, cost, damage, expense or liability (including fees and expenses of attorneys and other professional
advisors and court costs) incurred by the officer by reason of anything he or she does or refrains from doing for, or in connection
with the business or affairs of, the Company, excluding acts or omissions of the officer that constitute fraud, gross negligence
or willful or wanton misconduct. An officer’s rights under this Section 4.3 will not limit other rights which the officer
may have at law or in equity, including common law rights to indemnification, reimbursement or contribution. The rights of an officer
under this Section 4.3 will not be effected by any change in the relationship between the officer and the Company or, except to
the extent otherwise agreed by the officer, any change in the terms of this Section 4.3 that becomes effective after the officer
takes action or refrains from acting in reliance on this Section 4.3. An officer’s rights to indemnification, reimbursement
or contribution under this Section 4.3 will be subject to limitations imposed by the terms of the Mezzanine Loan until Final Payment
(as defined in the Mezzanine Loan Agreement).

 

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		4.4	Other Activities.

 

Each Member, as well as its affiliates, may
engage in or possess an interest in other businesses and investments of any nature, independently or in concert with others, even
if the business or investment competes with or is enhanced by the business of the Company. Neither the Company nor another Member
will have any right in or to any independent business or investment of another Member or its affiliates or the income or profits
derived from any independent business or investment of another Member or its affiliates.

 

ARTICLE 5.

TAX MATTERS

 

		5.1	Disregarded Entity.

 

For so long as Sole Member is the sole Member
of the Company, the Company shall be ignored for federal income tax purposes, as provided in § 301.7701-2 of the Treasury
Regulations. For so long as Sole Member is the sole Member of the Company, (a) the Company shall be ignored for state and local
income tax purposes so long as the relevant jurisdiction allows such characterization and (b) if a jurisdiction does not allow
the Company to be ignored, all profits, gains, losses and other items shall, for tax purposes, be allocated to Sole Member.

 

		5.2	Allocations if More Than One Member.

 

If Sole Member is not the sole Member of the
Company, allocations of profits, gains, losses and other items for tax purposes shall be allocated among the Members as they agree
or, failing agreement, in proportionate shares based upon the Member’s respective ownership interests in the Company, in
each such case, subject to any limitations imposed by § 704 of the Code and the related Treasury Regulations.

 

ARTICLE 6.

DISTRIBUTIONS

 

		6.1	Distributions.

 

Distributions by the Company shall be made in
amounts and at times as the Members determine to be appropriate, subject to the limitations in § 18.607 of the LLC Act;
provided that distributions will be subject to limitations imposed by the terms of the Mezzanine Loan until Final Payment
(as defined in the Mezzanine Loan Agreement).

 

		6.2	No Priority in Distributions.

 

No Member will have any priority over any other
Member as to the return of its Capital Contributions or as to compensation by way of income.

 

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ARTICLE 7.

DISSOLUTION AND TERMINATION

 

		7.1	Coordination with Mezzanine Loan.

 

This Article 7 is subject to the terms of the
Mezzanine Loan Agreement and Section 10.1 of this Agreement.

 

		7.2	Dissolution Events.

 

The Company will be dissolved upon the happening
of the first to occur of the following events:

 

(1)         all
of the assets of the Company (including any assets acquired in exchange for or upon transfer of other assets) are transferred to
another person or distributed to the Members;

 

(2)         all
Members elect in writing to dissolve the Company; or

 

(3)         entry
of a decree of judicial dissolution pursuant to § 18.802 of the LLC Act.

 

Each Member specifically waives any right (whether under the LLC
Act or otherwise) to require the Company to be dissolved or to obtain a partition of the Company’s assets, except as provided
in this Section 7.2.

 

		7.3	Liquidation.

 

Subject to any order entered in a proceeding
under § 18.802 of the LLC Act, liquidation of the Company will be managed by the Members, excluding any Member who has
wrongfully caused the dissolution of the Company. Upon any dissolution of the Company, all assets of the Company (except cash and
cash equivalents) will be sold and the proceeds (together with any cash or cash equivalents of the Company) will be applied to
the following uses and in the following order of priority:

 

(1)         first,
to satisfy liquidated liabilities of the Company;

 

(2)         second,
to set aside an amount which the person managing the liquidation reasonably determines to be appropriate to provide for contingent
or unliquidated liabilities of the Company;

 

(3)         third,
to pay to Members proportionately, based on the amount thereof owed each Member, the unreturned Capital Contributions of the Members;
and

 

(4)         fourth,
to make distributions to Members in accordance with their respective ownership interests in the Company.

 

Liquidation of the Company’s assets may be delayed for such
time as the person managing the liquidation considers appropriate to realizing the fair value of the assets. If provision is made
for liabilities in accordance with paragraph (2) above, any amounts remaining after those liabilities are satisfied or, in the
judgment of the person managing the liquidation, become unlikely of being asserted shall be distributed as contemplated by paragraphs
(3) and (4) above.

 

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ARTICLE 8.

MEMBERSHIP INTERESTS

 

		8.1	Membership Interest Certificates.

 

(A)         The
Members hereby elect to opt in to Article 8 of the Delaware Uniform Commercial Code. Accordingly, all ownership interests of the
Members in the Company (“Membership Interests”) under this Agreement shall be treated as securities under Delaware
Uniform Commercial Code § 8-103(c) and will be certificated within the meaning of § 18-702(c) of the LLC Act and Article
8 of the Delaware Uniform Commercial Code. Notwithstanding any other provision to this Agreement, this election may not be revoked
or changed without the consent of the Mezzanine Lender until Final Payment (as defined in the Mezzanine Loan Agreement). A Membership
Interest will be evidenced by a certificate of interest issued by the Company in substantially the form set forth in Exhibit
B to this Agreement (each, a “Membership Interest Certificate”). Each Membership Interest is a “security”
and each Membership Interest Certificate is a “certificated security” (as that term is defined in Article 8 of the
Delaware Uniform Commercial Code), and each Membership Interest in the Company and each Membership Interest Certificate is governed
by (i) Article 8 of the Delaware Uniform Commercial Code and (ii) Article 8 of the Uniform Commercial Code of any other applicable
jurisdiction that now or hereafter substantially includes the 1994 revisions of Article 8 thereof as adopted by the American Law
Institute and the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association on February
14, 1995. The Company shall issue to each Member a Membership Interest Certificate evidencing the Membership Interest issued to
such Member.

 

(B)         The
Company shall maintain a register showing each Member’s name, address, and ownership interest in the Company. The Company
shall treat such register as definitive and binding for all purpose, and only those persons so registered as Members shall have
the rights of Members. The Company and any agent of the Company may treat the Member in whose name any Membership Interest Certificate
is registered on the register maintained by the Company as the owner of the related Membership Interest for the purpose of receiving
distributions made by the Company and for all other purposes whatsoever, and the Company shall not be affected by notice to the
contrary.

 

(C)         If
any mutilated Membership Interest Certificate is surrendered to the Company, or if the Company receives evidence to its satisfaction
of the destruction, loss or theft of any Membership Interest Certificate and there is delivered to the Company such security or
indemnity as may be required by the Company to save it harmless, then, in the absence of notice to the Company that such Membership
Interest Certificate has been acquired by a bona fide purchaser, the Company shall execute and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Membership Interest Certificate, a new Membership Interest Certificate of like
effect to the mutilated, destroyed, lost or stolen Membership Interest Certificate. Upon the issuance of any new Membership Interest
Certificate under this Section 8.1(C), the Company may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Company) connected
therewith. Any duplicate Membership Interest Certificate issued pursuant to this Section 8.1(C) shall constitute complete and indefeasible
evidence of membership in the Company, as if originally issued, whether or not the lost, stolen, or destroyed Membership Interest
Certificate shall be found at any time.

 

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(D)         A
Member may transfer its Membership Interest, or a part of such Membership Interest, only by delivering to the Company the Membership
Interest Certificate representing the Membership Interest to be transferred, properly endorsed for transfer or accompanied by appropriate
instrument of transfer duly executed. Until Final Payment (as defined in the Mezzanine Loan Agreement), transfer of a Membership
Interest will be subject to the restrictions in the Mezzanine Loan Agreement and the Membership Interest may be transferred only
as allowed by such restrictions of the Mezzanine Loan Agreement. Upon receipt of same the Company shall make an appropriate entry
of the transfer in the register described in Section 8.1(B) and shall issue to the transferee a new Membership Interest Certificate
representing the Membership Interest that is transferred. If less than the entire Membership Interest represented by a Membership
Interest Certificate has been transferred, the Company also shall issue to the transferor a new Membership Interest Certificate
representing the portion of the Membership Interest that has not been transferred. No transfer of a Membership Interest shall be
effective until (a) the Company has received the Membership Interest Certificate, properly endorsed for transfer or accompanied
by appropriate instrument of transfer duly executed, and (b) the Company has made the register entry. All Membership Interest Certificates
surrendered for transfer shall be canceled by the Company.

 

		8.2	Compliance with Securities Laws.

 

Each Member represents and warrants to the other
Members and the Company that as of the date of this Agreement:

 

(1)         It
has acquired its Membership Interest for investment solely for its own account and with the intention of holding such Membership
Interest for investment, without any intention of participating directly or indirectly in any distribution of any portion of such
Membership Interest and without the financial participation of any other person in acquiring such Membership Interest.

 

(2)         It
is aware that its Membership Interest has not been registered under the Securities Act of 1933, as amended, or applicable state
securities laws, if any, in reliance upon the exemption contained in those laws. It understands and acknowledges that its representations
and warranties contained in this Section 8.2(2) are being relied upon by the other Members and the Company as the basis for the
exemption from the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws, if
any, in connection with the issuance of its Membership Interest. It further acknowledges that the Company has no obligation (i)
to recognize any transfer or encumbrance of all or any part of its Membership Interest unless and until the provisions of this
Agreement have been fully satisfied or (ii) to register its Membership Interest pursuant to the Securities Act of 1933, as amended,
or any state securities laws.

 

(3)         It
recognizes that a legend reflecting the restrictions imposed upon the transfer and encumbrance of its Membership Interest under
the Securities Act of 1933, as amended, and state securities laws has been placed on the Membership Interest Certificate evidencing
its Membership Interest. It will comply with the restrictions imposed by such legend, as well as all other restrictions on transfer
or encumbrance of its Membership Interest imposed by this Agreement. It will not transfer or encumber, or offer for transfer or
encumbrance, its Membership Interest in violation of the restrictions imposed by the Securities Act of 1933, as amended, or any
applicable state securities laws or any of the provisions of this Agreement.

 

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ARTICLE 9.

APPROVAL OF FINANCING

 

		9.1	Approval of Financing.

 

(A)         The
Members hereby authorize the Company (acting for itself or in a representative capacity on behalf of the Property Owner) to take
such actions as any officer of the Company determines is appropriate (i) to obtain the Construction Loan and the Mezzanine Loan
and to enter into the Construction Financing Documents on terms as any officer of the Company may conclude are appropriate, (ii)
to execute and deliver such Construction Financing Documents (including loan agreements, promissory notes, deeds of trust, security
agreements, assignments and collateral assignments, assignments of rents and leases, notices, affidavits, proxies and other documents,
instruments, agreements, certificates and consents) as are required by the Construction Lender or the Mezzanine Lender or as any
officer of the Company otherwise considers necessary, appropriate or desirable to effectuate the Construction Loan and/or the Mezzanine
Loan, (iii) to encumber, as security for the Construction Loan, the Land and the Project and any other property of the Property
Owner as are required by the Construction Lender or as any officer of the Company otherwise considers necessary, appropriate or
desirable to effectuate the Construction Loan and to encumber, as security for the Mezzanine Loan, the ownership interests in the
Property Owner and any other property of the Company as are required by the Mezzanine Lender or as any officer of the Company otherwise
considers necessary, appropriate or desirable to effectuate the Mezzanine Loan and (iv) to perform the obligations of the Company,
and to cause the Property Owner to perform its obligations, under the Construction Financing Documents.

 

(B)         The
Members further authorize any officer of the Company (acting on behalf of the Company in its individual capacity or in a representative
capacity on behalf of the Property Owner) (i) to negotiate definitive terms of the Construction Financing Documents, (ii) to execute
and deliver such Construction Financing Documents (including loan agreements, promissory notes, deeds of trust, security agreements,
assignments and collateral assignments, assignments of rents and leases, notices, affidavits, proxies and other documents, instruments,
agreements, certificates and consents) as are required by the Construction Lender or the Mezzanine Lender or as any officer of
the Company otherwise considers necessary, appropriate or desirable to effectuate the Construction Loan and/or the Mezzanine Loan,
(iii) to encumber, as security for the Construction Loan, the Property and any other property of the Property Owner as are required
by the Construction Lender or as any officer of the Company otherwise considers necessary, appropriate or desirable to effectuate
the Construction Loan and to encumber, as security for the Mezzanine Loan, the ownership interests in the Property Owner and any
other property of the Company as are required by the Mezzanine Lender or as any officer of the Company otherwise considers necessary,
appropriate or desirable to effectuate the Mezzanine Loan and (iv) to cause the Company and the Property Owner to perform their
respective obligations, under the Construction Financing Documents.

 

		9.2	Authorization to Pledge Membership Interests.

 

All owners of Membership Interests are authorized
to pledge or assign such Membership Interests to the Mezzanine Lender; such pledge or assignment may include all voting, management
and control rights and is not limited to economic rights; and neither the exercise by Mezzanine Lender of any right or remedy under
the loan documents for the Mezzanine Loan, including, foreclosure against the Membership Interest pledged to the Mezzanine Lender,
nor the transfer to the Mezzanine Lender or its successor or assign of title to any interests in such Membership Interest pledged
to the Mezzanine Lender, shall constitute a default or breach.

 

ARTICLE 10.

SPECIAL LENDER RELATED PROVISIONS

 

		10.1	Mezzanine Loan Related Provisions.

 

(A)         Notwithstanding
any other provision of this Agreement to the contrary, the provisions of this Article 10 (and Exhibit D incorporated herein)
are intended to and shall supersede and take priority over any other provision of this Agreement, including any future amendment
entered into without the prior written consent of the Mezzanine Lender in its sole discretion. Without limiting the foregoing,
any other provision of this Agreement which is inconsistent with any provision of this Article 10 (and Exhibit D incorporated
herein) shall be null and void and of no force or effect to the extent of such inconsistency.

 

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(B)         Until
Final Payment (as defined in the Mezzanine Loan Agreement), the Company shall comply with the requirements set out in Exhibit
D to this Agreement, unless otherwise approved by the Mezzanine Lender. Exhibit D is hereby incorporated by reference
into this Section 10.1 as if set forth in full at this point. Terms defined in the Mezzanine Loan Agreement have the respective
meanings assigned in the Mezzanine Loan Agreement when used as defined terms in Exhibit D, even if otherwise defined for
other purposes elsewhere in this Agreement.

 

		10.2	Mezzanine Lender Approvals.

 

Until Final Payment (as defined in the Mezzanine
Loan Agreement), any amendment or waiver of the provisions of Sections 4.1(B), 4.2(D), 4.3, 6.1, 7.1, 8.1, 10.1, 10.2 or 10.3 must
be approved by the Mezzanine Lender, and any amendment or waiver of those provisions not approved by the Mezzanine Lender will
be null and void. In addition, unless otherwise approved by the Mezzanine Lender, until Final Payment (as defined in the Mezzanine
Loan Agreement), the Company may not change its election to have the Membership Interests be “certificated securities”
governed by Article 8 of the Delaware Uniform Commercial Code as provided in Section 8.1. Approval by the Mezzanine Lender under
this Section 10.2 will be effective only if it is in writing.

 

		10.3	Mezzanine Lender as Beneficiary.

 

The Mezzanine Lender is a third-party beneficiary
of this Article 10. The Sole Member and the Company hereby stipulate and agree that the Mezzanine Lender has relied on the terms
of Sections 4.1(B), 4.2(D), 4.3, 6.1, 7.1, 8.1, 10.1 (and Exhibit D incorporated therein), 10.2 and 10.3 in making the Mezzanine
Loan and that the rights of the Mezzanine Lender hereunder have fully vested.

 

ARTICLE 11.

MISCELLANEOUS

 

		11.1	Amendment.

 

Any amendment of this Agreement will require
the approval of all Members. Approval of an amendment by a Member will be effective only if it is in writing.

 

		11.2	Notices.

 

All notices and other communications under this
Agreement will be effective only if in writing. Notices and other communications under this Agreement will be deemed to have been
given when actually delivered by hand, mail, courier service or fax, e-mail or other means of electronic facsimile transmission,
or when delivery is attempted and rejected, at the address designated by the applicable party or, in the case of the Company, at
its principal place of business. Until changed, the address for notice to Sole Member is as listed on the signature page of this
Agreement. In the event of admission of a new Member, the Member shall provide the Company and each other Member with its address
for notices and other communications under this Agreement. If a notice is sent by electronic transmission (including fax or e-mail),
confirmation of transmission generated by the sender’s equipment will be prima facie evidence of receipt.

 

    	 	 	11

     

    

 

		11.3	Duplicate Originals.

 

Any number of counterparts of this Agreement
may be executed. Each counterpart will be deemed to be an original instrument and all counterparts taken together will constitute
one agreement.

 

		11.4	Creditors Not Benefited.

 

Subject to Article 10, nothing contained in
this Agreement will benefit any creditor of a Member or of the Company. No creditor of a Member or of the Company may require a
Capital Contribution to be solicited or a distribution to be made by the Company, nor may any creditor of a Member or of the Company
enforce the obligation of a Member under this Agreement. Establishment of reserves is for the benefit of the Members only, and
no creditor of the Company may require funding of any such reserves, nor may any creditor of the Company access such reserves,
except through levy against the Company’s property in collection of a judgment as otherwise allowed by law. The Members may
elect to reduce any Company reserves at any time, regardless of claims then outstanding against the Company, subject only to limitations
imposed by law that cannot be altered by a provision like this Section 11.4.

 

	BR ArchCo Morehead JV, LLC, 	Address:	712 Fifth Avenue, 9th Floor
	a Delaware limited liability company	 	New York, New York 10019
	 	 	 
	By:	BR Morehead JV Member, LLC, a Delaware limited liability company, its Manager	Fax:	(646) 278 - 4220
	 	 	 	 
	 	By:	Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company, its Manager	Capital Contribution:	$17,955,556
	 	 	 	 	 	 	 
	 	 	By:	BR SOIF II Manager, LLC,	 	 
	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	its Manager	 	 
	 	 	 	 	 	 	 
	 	 	 	By: 	/s/ Jordan Ruddy	 	 
	 	 	 	Name: 	Jordan Ruddy	 	 
	 	 	 	Title: 	Authorized Signatory	 	 

 

    	 	 	12

     

    

 

Exhibit A

 

Description of Land

 

Lying and being in the City of Charlotte, Mecklenburg
County, North Carolina and more particularly described as:

 

PARCEL 1

 

BEGINNING at a point located at the intersection
of the southern margin of the right-of-way of West Morehead Street and the eastern margin of the right-of-way of South Summit Avenue,
thence from said Beginning point and with the eastern margin of the right-of-way of South Summit Avenue S. 11-45 W. 220.0 ft. to
an iron located beneath the pavement in the northern margin of the Piedmont and Northern Railroad right-of-way; thence with said
right-of-way in two courses and distances as follows: (1) S. 78-15 E. 83.45 ft. to a point; (2) with the arc of a circular curve
to the left having a radius of 465.84 ft., a chord bearing and distance of N. 85-54-16 E. 254.39 feet and an arc distance of 257.66
ft. to an iron located beneath the pavement in the western margin of a paved 20 ft. alley way; thence with the western margin of
said alley way N. 03-10-25 W. 195.17 ft. to an iron pipe located in the southern margin of the right-of-way of West Morehead Street;
thence with said margin of West Morehead Street and with the arc of a circular curve to the right having a radius of 1263.11 ft.,
a chord bearing and distance of N. 85-56-55 W. 280.50 ft. and an arc distance of 281.08 ft. to the point and place of BEGINNING;
containing 1.5544 acres; as shown on a survey by R. B. Pharr & Associates, P.A., dated October 4, 1999, and being Lot 1 in
Block D of Wesley Heights as shown on a map recorded in Map Book 3 at Page 540 in the Office of the Register of Deeds for Mecklenburg
County, North Carolina.

 

PARCEL 2 

 

BEGINNING at an iron stake in the easterly
margin of South Summit Avenue and the southerly margin of the P. and N. right of way, said point of beginning being S. 11-45 W.
245 feet from the southerly margin of West Morehead Street, thence, along the easterly margin of South Summit Avenue S. 11-45 W.,
145 feet to a point in the northerly margin of Bryant Street; thence, along the northerly margin of Bryant Street, S. 78-15 E.
84.69 feet, to an iron stake and a point of curve; thence, with the arc of a circular curve to the left of radius of 1146.28 feet,
a distance of 333.11 feet, to an iron stake in the northerly margin of Bryant Street and the westerly margin of a twenty foot alley;
thence, with the westerly line of said alley N. 12-57 W. 183.51 feet to a point in the westerly margin of said alley and southerly
margin of P. and N. right of way; thence, along the southerly margin of said right of way and with the arc of a circular curve
to the right of radius 490.84 feet, a distance of 247.64 feet, to a point on curve on said right of way; thence, along the southerly
margin of P. and N. right of way N. 78-15 W., 101.59 feet to the point of BEGINNING, said lot being designated as Lot 2, Block
D, Wesley Heights, as shown in Map Book 3, Page 540, of the Mecklenburg County Public Registry, North Carolina.

 

PARCEL 3

 

BEGINNING at a #4 rebar located on the northern
margin of Bryant Street at the southeast corner of the property of Southern Apartment Group-49, LLC (Deed Book 28056, Page 975);
thence N. 12-57-00 W. 183.51’ to a #4 rebar; thence along a curve to the right, with a radius of 490.84’, an arc of
10.07’, and bearing and chord of S 70-09-42 W. 10.07’, to a computed point; thence S. 12-57-00 E. 186.09’ to
a computed point, located on the northern margin of Bryant Street; thence with the northern margin of Bryant Street, along a curve
to the left, with a radius of 1146.28’, an arc of 10.09’, and bearing and chord of S. 84-50-51 W. 10.09’ to the
point and place of BEGINNING, containing 0.042 acres, more or less.

 

    	 	Exhibit A	 

     

    

 

PARCEL 4 

 

BEGINNING at a nail in the Eastern margin of
S. Summit Avenue, said point being located S. 11-45-00 W. 220.00’ from a nail in the sidewalk located at the intersection
of the Eastern margin of S. Summit Avenue and the Southern margin of West Morehead Street; thence running with Lot #1, Block D,
Map Book 3, Page 540 (Mecklenburg County Registry) S. 78-15-00 E. 83.45’ to a point; thence continuing with Lot #1, along
a curve to the left having a radius of 465.84’, an arc length of 257.66’, a chord of 254.39’ and bearing of N.
85-52-47 E. to an old iron pipe; thence S. 06-46-31 E. 26.14’ to a #4 rebar located at the northeasternmost corner of Lot
#2-A, Map Book 3, Page 540; thence with the Northern boundary line of said Lot #2-A, along a curve to the right having a radius
of 490.84’, an arc length of 247.63’, a chord of 245.01’ and a bearing of S. 85-12-08 W. to a point; thence continuing
with Lot #2-A, N. 78-15-00 W. 101.59’ to a nail along the Eastern margin of S. Summit Avenue; thence with the margin of S.
Summit Avenue, N. 11-45-00 E. 25.00’ to the point and place of BEGINNING, containing 0.201 acres, more or less, as shown
on a survey by Robert J. Dedmon Dated February 6, 2013.

 

PARCEL 5 

 

TOGETHER WITH an easement for egress, ingress
and regress from the alley described in instrument recorded in Book 11924, Page 614, Mecklenburg County Public Registry.

 

THE ABOVE PARCELS BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

BEGINNING at a nail in the sidewalk at the
Northeast margin of Bryant Street and South Summit Avenue, said beginning point being located S 78-46-00 E, 50.22’ from a
nail in the sidewalk located at the Northwest margin of Bryant Street and South Summit Avenue; thence from said beginning point,
with the Eastern margin of S Summit Ave, N 11-45-00 E 390.00’ to a nail in the sidewalk, Southeast margin of S Summit Ave
and West Morehead Street; thence with the Southern margin of W Morehead St, along a curve to the left, with a radius of 1263.11’,
an arc of 281.08’, and a bearing & chord of S 86-02-44 E, 280.50’ to a 3/4" pipe; thence leaving said margin
of W Morehead St, and running with an old alleyway S 03-10-25 E 195.06’ to an old iron; thence S 06-46-31 E 26.14’
to a #4 rebar, corner of abandoned alleyway; thence with abandoned alleyway, along a curve to the left, with a radius of 490.84’,
an arc of 10.07’, and bearing and chord of S 70-09-42 W, 10.07’, to a #4 rebar; thence S 12-57-00 E 186.09’ to
a #4 rebar, located on the Northern margin of Bryant St; thence with the Northern margin of Bryant St, along a curve to the right,
with a radius of 1146.28’, an arc of 10.09’, and bearing and chord of S 84-50-51 W, 10.09’ to a #4 rebar; thence
along a curve to the right, with a radius of 1146.28’, an arc of 333.11’, and bearing and chord of N 86-34-31 W, 331.94’
to a nail; thence N 78-15-00 W, 84.69’ to the point and place of BEGINNING, containing 3.158 acres, more or less.

 

    	 	Exhibit A-2	 

     

    

 

Exhibit B

 

Form of Membership Interest
Certificate

 

BR ArchCo MOrehead
Mezz, LLC,

A Delaware Limited Liability Company

 

membership Interest
Certificate #____

 

	THIS membership INTEREST CERTIFICATE AND THE membership INTEREST REPRESENTED HEREBY ARE SUBJECT TO THE PROVISIONS OF THE LIMITED LIABILITY COMPANY AGREEMENT OF THE COMPANY IN ALL RESPECTS.

 

	TRANSFER OF THE membership INTEREST REPRESENTED BY THIS membership INTEREST CERTIFICATE IS SUBJECT TO RESTRICTIONS AS PROVIDED ON THE REVERSE OF THIS membership INTEREST CERTiFICATE.

 

This certifies that _____________________________________________
is the owner of a membership interest in BR ArchCo Morehead Mezz, LLC (the “Company”), representing a ____%
membership interest, subject to the terms of the Limited Liability Company Agreement, dated _____________, 201__ for the Company,
as the same may be amended from time to time in accordance with its terms (the “LLC Agreement”). [INSERT IF
THIS CERTIFICATE REPRESENTS 100% OF MEMBERSHIP INTERESTS: The membership interest represented hereby consists of all capital, profits,
distributions, rights to vote and act as a member or manager and all other rights and privileges of ownership or membership in
the Company.]

 

The membership interest represented
hereby is a certificated security within the meaning of Uniform Commercial Code § 8-102(a)(4) for purposes of, and governed
by, (i) Article 8 of the Uniform Commercial Code (including section 8 102(a)(15) thereof) as in effect in from time to time in
the State of Delaware, and (ii) Article 8 of the Uniform Commercial Code of any other applicable jurisdiction that now or hereafter
substantially includes the 1994 revisions of Article 8 thereof as adopted by the American Law Institute and the National Conference
of Commissioners on Uniform State Laws and approved by the American Bar Association on February 14, 1995. This Membership Interest
Certificate and the membership interest represented hereby are transferrable only on the books of the Company upon surrender of
this Membership Interest Certificate and authority for transfer, as provided below. The Company may recognize and treat the registered
holder of this Membership Interest Certificate as the true owner of the membership interest in the Company represented hereby for
all purposes.

 

The membership interest represented
by this Membership Interest Certificate may be transferred, sold, assigned or otherwise disposed of by the holder thereof only
in accordance with the provisions of the LLC Agreement and applicable law. This Membership Interest Certificate, when coupled with
an assignment in the form set forth on the reverse hereof or otherwise sufficient to convey an interest in the Company, duly executed
and naming an assignee, may be deposited with the Company and upon such deposit shall constitute direction by the registered owner
of this Membership Interest Certificate to the Company to register the change of ownership of the membership interest evidenced
hereby to such assignee and to issue a new certificate reflecting such change of ownership to such assignee.

 

The Company has caused this
Membership Interest Certificate to be issued on the date stated below.

 

	Date of Issuance: _________________	 	BR ArchCo Morehead Mezz, LLC, 
	 	 	a Delaware limited liability company
	 	 	 	 
	 	 	
        By:
	 
	 	 	Name:	Jordan Ruddy
	 	 	Title: 	President and Treasurer

 

     

     

    

 

	THE MEMBERSHIP INTEREST HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER SECURITIES LAWS.  THE MEMBERSHIP INTEREST MAY NOT BE SOLD OR OFFERED FOR SALE (WITHIN THE MEANING OF ANY SECURITIES LAW) UNLESS A REGISTRATION STATEMENT UNDER ALL APPLICABLE SECURITIES LAWS WITH RESPECT TO THE MEMBERSHIP INTEREST IS THEN IN EFFECT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS IS THEN APPLICABLE TO THE MEMBERSHIP INTEREST. IN ADDITION, THE MEMBERSHIP INTEREST MAY NOT BE TRANSFERRED OR ENCUMBERED EXCEPT UPON SATISFACTION OF THE PROVISIONS OF THE LIMITED LIABILITY COMPANY AGREEMENT OF THE COMPANY.

 

	THE MEMBERSHIP INTEREST REPRESENTED HEREBY IS SUBJECT TO THE PROVISIONS OF: (I) THE LLC AGREEMENT, WHICH, AMONG OTHER THINGS, RESTRICTS THE TRANSFER OF SUCH MEMBERSHIP INTEREST; (II) A SECURITY AGREEMENT AND PLEDGE OF OWNERSHIP INTERESTS IN MEZZANINE BORROWER DATED _____________, 201___ (“SECURITY AGREEMENT”) WHICH, AMONG OTHER THINGS, GRANTS A SECURITY INTEREST IN THIS CERTIFICATE AND THE MEMBERSHIP INTEREST REPRESENTED HEREBY; AND (III) AN IRREVOCABLE PROXY AGREEMENT DATED _____________, 201___ GRANTING CERTAIN RIGHTS AND POWERS WITH RESPECT TO THE MEMBERSHIP INTEREST REPRESENTED HEREBY (THE “PROXY AGREEMENT”, AND COLLECTIVELY WITH THE LLC AGREEMENT AND THE SECURITY AGREEMENT, THE “AGREEMENTS”). MEMBER HEREBY ACKNOWLEDGES THAT IT HAS RECEIVED COPIES OF AND IS FAMILIAR WITH THE AGREEMENTS. COPIES OF THE AGREEMENTS MAY BE OBTAINED FROM THE COMPANY UPON REQUEST OF THE HOLDER OF THIS CERTIFICATE AT ANY TIME. BY ACCEPTANCE OF THIS CERTIFICATE, AND AS A CONDITION TO BEING ENTITLED TO ANY RIGHTS AND/OR BENEFITS OF THE MEMBERSHIP INTEREST EVIDENCED HEREBY, THE HOLDER OF THIS CERTIFICATE DOES HEREBY AND SHALL BE DEEMED TO AGREE TO AND SHALL BE BOUND BY ALL THE TERMS, CONDITIONS AND PROVISIONS OF THE AGREEMENTS.

 

	
        FOR VALUE RECEIVED,
        the undersigned, ____________________________________________________, a ___________________________, the registered holder (“Holder”)
        of the MEMBERSHIP INTEREST CERTIFICATE NUMBER __ (the “Certificate”), does hereby sell, assign, transfer, convey,
        and deliver unto:

        _______________________________________________________,
        a ___________________, and its successors and assigns (“Assignee”), the Certificate and the membership interest in the
        Company evidenced by the within Certificate, and does hereby irrevocably constitute and appoint
        ____________________________________________ as attorney-in-fact to transfer said Certificate and membership interest on the
        books of the Company, with the full power of substitution in the premises.

        Dated as of:____________________

	 	 	 
	 	 	 	 
	 	a  	 	 
	 	 	 	 
	 	By: 	 	 
	 	Its  	 	 
	 	 	 	 

 

    	 	Exhibit B-2	 

     

    

 

Exhibit C

 

Company Officers

 

	Jordan Ruddy	President and Treasurer
	 	 
	Michael Konig	Vice President and Secretary
	 	 
	Neil Brown	Vice President
	 	 
	Dorrie Green	Vice President

 

     

     

    

 

Exhibit D

 

Mezzanine Loan SPE Provisions

 

A.          Terms
defined in the Mezzanine Loan Agreement have the respective meanings assigned in the Mezzanine Loan Agreement when used as defined
terms in this Exhibit D, even if otherwise defined for other purposes elsewhere in this Agreement.

 

B.           The
following provisions are intended to assure that Company and Project Owner are and will continue to be single purpose, bankruptcy
remote entities whose assets and liabilities are separate from those of any other person, and Mezzanine Lender and the Company
hereby stipulate and agree that Mezzanine Lender has relied thereon in evaluating the risks associated with the Mezzanine Loan
and extending credit on the terms set forth in the Mezzanine Loan Agreement and the other Loan Documents for the Mezzanine Loan.
Without Mezzanine Lender’s consent, the Company will not take, and has no authority to take, any of the following actions
(except if and to the extent required or expressly permitted in the Mezzanine Loan Agreement and the other Loan Documents for the
Mezzanine Loan):

 

(1)         Admitting
a member to, or Transferring any interest in, Company;

 

(2)         Accepting
any Capital Contributions except as permitted in Section 5.8 of the Mezzanine Loan Agreement;

 

(3)         Entering
into, amending, waiving or otherwise modifying or terminating any Material Agreement;

 

(4)         Changing,
waiving, or deviating from the Development Budget, the Construction Schedule, or the Plans and Specifications;

 

(5)         Paying
or distributing funds or incurring expenses or other obligations except pursuant to the Mezzanine Loan Agreement and the other
Loan Documents for the Mezzanine Loan and the Senior Loan Documents and as provided for in the then-current Budget;

 

(6)         Entering
into, modifying, terminating, or waiving any material provision of any agreement for the provision of goods or services involving
the expenditure of more than $125,000.00 for any single item or series of related items or $400,000.00 in the aggregate, regardless
of the amount of any individual item comprising such total, in any period of twelve consecutive months, unless otherwise approved
in the Budget;

 

(7)         Acquiring,
selling, transferring or exchanging any real or personal property, except pursuant to the Development Budget and the disposition
of personal property excluded from the definition of “Transfer” in the Mezzanine Loan Agreement;

 

(8)         (a) instituting
proceedings to be adjudicated bankrupt or insolvent or consenting to the institution of bankruptcy or insolvency proceedings; (b) filing
a petition seeking, or consenting to, reorganization or relief under any applicable federal or state law relating to bankruptcy;
(c) consenting to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official);
d) making any assignment for the benefit of creditors; (e) admitting in writing the inability to pay debts generally
as they become due; (f) dissolving; (g) amending its organizational documents; (h) committing or allowing to occur any default
under the Senior Loan Documents or any other Material Agreement; (i) upon the commencement of a bankruptcy proceeding by or against
Company, seeking a stay or otherwise seeking pursuant to Section 105 or any other provision of the Bankruptcy Code or any other
debtor relief law (whether statutory, common law, case law, or otherwise) of any jurisdiction whatsoever, now or hereafter in effect,
that may be or become applicable, to stay, interdict, condition, reduce, or inhibit Mezzanine Lender’s ability to enforce
any of Mezzanine Lender’s rights under a Guaranty given in respect of the Mezzanine Loan against the applicable Guarantor
or under the Environmental Indemnity given in respect of the Mezzanine Loan against any Indemnitor; or (j) taking any action
in furtherance of any of the foregoing;

 

     

     

    

 

(9)         Taking
any other action that would make it impossible to continue operating in the ordinary course of business as provided in the Mezzanine
Loan Agreement and the other Loan Documents for the Mezzanine Loan;

 

(10)       Dissolving;

 

(11)       Owning
any asset other than (a) its equity ownership interests in Project Owner and (b) incidental personal property related
to the development or operation of the Property;

 

(12)       Engaging
in any business other than the ownership, management, and operation of any interest in the Project Owner and related activity;

 

(13)       Granting
or permitting any Lien, or incurring any Indebtedness, secured or unsecured, direct or contingent;

 

(14)       Causing
or allowing any Indebtedness or other obligations of any kind whatsoever to be secured (senior, subordinate or pari passu) by the
Property, except the Senior Loan;

 

(15)      
Making any loans or advances to any Person (including any shareholder, partner, principal, member or Affiliate of the Company or
any Guarantor);

 

(16)       Paying
or permitting to be paid its own liabilities and obligations from any source other than its own funds, except for payments made
by a Guarantor, or paying from its own funds the liabilities and obligations of any Affiliate or any other Person, except as expressly
permitted or required in the Mezzanine Loan Agreement and the other Loan Documents for the Mezzanine Loan or the Senior Loan Documents;

 

(17)       Making
any distributions to its members that would cause it to become insolvent;

 

(18)       Failing
to preserve its existence and limited liability company status and its authority or qualification to do business under the laws
of any state or jurisdiction in which it is required to be qualified, or amending, modifying or otherwise changing its certificate
of formation, limited liability company agreement or other organizational or governing documents to delete or modify any of the
provisions of Article 10 of this Agreement or this Exhibit D or otherwise adversely any of the Special Limitations or otherwise
adversely affect the status of Company as a single-purpose, single-asset “bankruptcy remote” entity;

 

(19)       Failing
to maintain books and records and bank accounts separate from those of its Affiliates, including its principals and members, or
any other Person;

 

    	 	Exhibit D-2	 

     

    

 

(20)       Failing
to maintain separate financial statements which show its assets and liabilities separate and apart from those of any Affiliate
or any other Person or include any assets or liabilities of any Affiliate or any other Person; provided that the Company
may also be included in the consolidated statements of any of its Affiliates where required by GAAP, so long as such financial
statements contain a footnote clearly stating that Company is a separate legal entity and that its assets are not available to
satisfy the debts or obligations of any other Person;

 

(21)       Identifying
itself as a division or a part of any Affiliate or other Person or otherwise failing to (a) hold itself out as a legal entity separate
and distinct from any other Affiliate or other Person, (b) correct any known misunderstanding regarding its status as a separate
entity, (c) conduct its business in its own name or (d) utilize separate stationery, invoices and checks from any other Person;

 

(22)       Failing
to file its own tax and informational returns unless the Company shall be ignored for federal
income tax purposes, as provided in § 301.7701-2 of the Treasury Regulations;

 

(23)       Making
any distribution or payment to Affiliates except as reasonable consideration for benefits provided and which in either case causes
it not to maintain adequate capital for the normal obligations of a business of its size and character and in light of its contemplated
operations, except as expressly permitted or required in the Mezzanine Loan Agreement and the other Loan Documents for the Mezzanine
Loan or the Senior Loan Documents;

 

(24)       Seeking
directly or through any principal, member or Affiliate the dissolution or winding up, in whole or in part, of Company;

 

(25)       Entering
into any transaction of merger or consolidation, acquiring by purchase or otherwise all or substantially all of the obligations,
business or assets of, or any stock or beneficial ownership of, any other Person or permitting any other Person to acquire any
obligations, business or assets of the Company, except as permitted by the Mezzanine Loan Agreement;

 

(26)       Commingling
the funds and other assets or liabilities of Company with those of any principal, member, Affiliate or any other Person;

 

(27)       Failing
to maintain its assets in such a manner that it is costly or difficult to segregate, ascertain or identify its individual assets
from those of any Affiliate or any other Person;

 

(28)       Failing
to observe any legal or customary formality regarding its formation and continued existence;

 

(29)       Assuming
the obligations of any other Person or pledging any of its assets for the benefit of any other Person, except the Company’s
pledge of its interest in Project Owner to secure the Mezzanine Loan;

 

(30)       Holding
itself, its assets or its creditworthiness out to be responsible for the debts or obligations of any other Person, except the Company’s
undertakings with respect to the Project Owner in the Mezzanine Loan Agreement and the other Loan Documents for the Mezzanine Loan;

 

    	 	Exhibit D-3	 

     

    

 

(31)       Except
as to the Mezzanine Lender and the Senior Lender, making any representations to any Person to induce them to rely on the assets
or the credit of Company, Project Owner or any Affiliate;

 

(32)       Failing
to maintain a sufficient number of employees in light of its business operations;

 

(33)       Guarantying
the payment or performance of any Indebtedness or other obligation of any Affiliate or any other Person, except the Company’s
undertakings with respect to the Project Owner in the Mezzanine Loan Agreement and the other Loan Documents for the Mezzanine Loan;

 

(34)       Failing
to maintain title to its property and assets in its own name, or holding any interest in the property or assets of any other Person;

 

(35)       Representing
that any other Person owns an interest in any of its property or assets;

 

(36)       Failing
to allocate fairly and reasonably any overhead expenses shared with any other Person, including office space and services performed
by employees; and

 

(37)       Receiving
any cash, property or other consideration that has been earned by or is payable to any other Person, except pursuant to written
assignment agreements on commercially reasonable terms entered into for adequate consideration.

 

B. Following are additional actions which the
Mezzanine Lender and the Company have stipulated and agreed would fundamentally change the risks associated with the Mezzanine
Loan and which Mezzanine Lender evaluated and relied upon in extending credit on the terms set forth in the Mezzanine Loan Agreement
and the other Loan Documents for the Mezzanine Loan. Without Mezzanine Lender’s consent, neither Company nor Sole Member
(as applicable) will take, or has authority to take, any of the following actions (except if and to the extent required or expressly
permitted in the Mezzanine Loan Agreement and the other Loan Documents for the Mezzanine Loan):

 

(1)         Appointing,
engaging or terminating any leasing agent, property manager or real estate broker for the Project;

 

(2)         Entering
into, amending, waiving or otherwise modifying or terminating any Material Agreement;

 

(3)         Changing,
waiving, or deviating from the Development Budget, Construction Schedule, or Plans and Specifications (as the same may be amended
in accordance with the Mezzanine Loan Agreement);

 

(4)         Paying
or distributing funds or incurring expenses or other obligations except pursuant to the Mezzanine Loan Agreement and the other
Loan Documents for the Mezzanine Loan or the Senior Loan Documents and as provided for in the then-current Budget;

 

(5)         Entering
into, modifying, terminating, or waiving any material provision of any agreement for the provision of goods or services involving
the expenditure of more than $125,000.00 for any single item or series of related items or $400,000.00 in the aggregate, regardless
of the amount of any individual item comprising such total, in any period of twelve consecutive months, unless otherwise approved
in the Budget;

 

    	 	Exhibit D-4	 

     

    

 

(6)         Acquiring,
selling, transferring or exchanging any real or personal property, except for the transfer of personal property having a fair market
value of less than $125,000.00 for any single item or series of related items or $400,000.00 in the aggregate, regardless of the
amount of any individual item comprising such total, in any single transaction where replacement personal property is being acquired
in accordance with the then applicable Budget;

 

(7)         Entering
into, amending, waiving or terminating any Leases, except in compliance with Section 5.1.5 of the Mezzanine Loan Agreement;

 

(8)         Committing
or allowing to occur and continue beyond the expiration of any applicable notice or cure period any default under the Senior Loan
or any other Material Agreement;

 

(9)         Changing
or modifying the insurance coverage for the Project that would reduce coverage below the policy amounts and terms set forth in
the Insurance Requirements;

 

(10)       Expending,
distributing, or applying insurance or condemnation proceeds other than as required or permitted by the Mezzanine Loan Agreement
or required by the Senior Loan Documents;

 

(11)       “Opting
out” of Article 8 of the Uniform Commercial Code or modifying any provisions of its organizational documents relating to
its election to “opt in” to Article 8;

 

(12)       Selling
the Project or any portion thereof prior to Final Payment; or

 

(13)       Entering
into any contract or agreement with or paying any fees, compensation or other amounts to any Affiliate of Company, Project Owner
or a Guarantor or any of their shareholders, partners, principals or members that is not expressly permitted under the Loan Agreement.

 

    	 	Exhibit D-5Exhibit 10.449

 

 

 

SECOND AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

BR ARCHCO MOREHEAD JV, LLC

 

A DELAWARE LIMITED LIABILITY COMPANY

 

DATED AS OF DECEMBER 29, 2016

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	 	 	Page
	 	 	 	 	 
	Section 1.	 	Definitions	 	1
	 	 	 	 	 
	Section 2.	 	Organization of the Company	 	7
	 	 	 	 	 
	2.1	 	Name	 	7
	 	 	 	 	 
	2.2	 	Place of Registered Office; Registered Agent	 	8
	 	 	 	 	 
	2.3	 	Principal Office	 	8
	 	 	 	 	 
	2.4	 	Filings	 	8
	 	 	 	 	 
	2.5	 	Term	 	8
	 	 	 	 	 
	2.6	 	Expenses of the Company	 	8
	 	 	 	 	 
	2.7	 	Tax Status	 	8
	 	 	 	 	 
	Section 3.	 	Purpose	 	8
	 	 	 	 	 
	3.1	 	Company Purposes	 	8
	 	 	 	 	 
	3.2	 	Development of the Property	 	8
	 	 	 	 	 
	3.3	 	Borrowing	 	9
	 	 	 	 	 
	3.4	 	Investment Intent	 	9
	 	 	 	 	 
	Section 4.	 	Construction Financing	 	9
	 	 	 	 	 
	4.1	 	Loans and Construction Financing Documents	 	9
	 	 	 	 	 
	4.2	 	Construction Financing Guaranties	 	9
	 	 	 	 	 
	4.3	 	Authorization of Loans	 	10
	 	 	 	 	 
	Section 5.	 	Unreturned Capital Contributions and Capital Accounts	 	11
	 	 	 	 	 
	5.1	 	Initial Capital Contributions	 	11
	 	 	 	 	 
	5.2	 	Additional Capital Contributions	 	11
	 	 	 	 	 
	5.3	 	Special Distribution to Smith LLC	 	12
	 	 	 	 	 
	5.4	 	Return of Capital Contribution	 	12
	 	 	 	 	 
	5.5	 	No Interest on Capital	 	12
	 	 	 	 	 
	5.6	 	Capital Accounts	 	13
	 	 	 	 	 
	5.7	 	New Members	 	13
	 	 	 	 	 
	5.8	 	Construction Financing Guaranty Distribution	 	13
	 	 	 	 	 
	Section 6.	 	Distributions	 	14
	 	 	 	 	 
	6.1	 	General	 	14
	 	 	 	 	 
	6.2	 	Prohibited Distributions	 	14

 

     i

     

    

  

	6.3	 	Distributions of Distributable Funds	 	14
	 	 	 	 	 
	Section 7.	 	Allocations	 	15
	 	 	 	 	 
	7.1	 	Allocation of Net Income and Net Losses Other than in Liquidation	 	15
	 	 	 	 	 
	7.2	 	Allocation of Net Income and Net Losses in Liquidation	 	15
	 	 	 	 	 
	7.3	 	Special Tax Allocations	 	15
	 	 	 	 	 
	7.4	 	Disregarded Entities	 	17
	 	 	 	 	 
	7.5	 	Section 754 Adjustments	 	17
	 	 	 	 	 
	7.6	 	Computation of Income and Loss	 	17
	 	 	 	 	 
	Section 8.	 	Books, Records, Tax Matters and Bank Accounts	 	18
	 	 	 	 	 
	8.1	 	Books and Records	 	18
	 	 	 	 	 
	8.2	 	Reports and Financial Statements	 	18
	 	 	 	 	 
	8.3	 	Tax Matters Member	 	19
	 	 	 	 	 
	8.4	 	Bank Accounts	 	20
	 	 	 	 	 
	8.5	 	Tax Returns	 	20
	 	 	 	 	 
	8.6	 	Expenses	 	20
	 	 	 	 	 
	Section 9.	 	Management and Operations	 	20
	 	 	 	 	 
	9.1	 	Manager	 	20
	 	 	 	 	 
	9.2	 	Affiliate Transactions	 	23
	 	 	 	 	 
	9.3	 	Right to Participation in Other Ventures	 	23
	 	 	 	 	 
	9.4	 	Limitation on Actions of Members; Binding Authority	 	23
	 	 	 	 	 
	9.5	 	Project Administration Agreement	 	23
	 	 	 	 	 
	9.6	 	Operation in Accordance with REIT Requirements	 	23
	 	 	 	 	 
	9.7	 	FCPA	 	24
	 	 	 	 	 
	9.8	 	Lender Notices	 	24
	 	 	 	 	 
	Section 10.	 	Confidentiality	 	25
	 	 	 	 	 
	10.1	 	Confidential Information	 	25
	 	 	 	 	 
	10.2	 	Company Information	 	26
	 	 	 	 	 
	10.3	 	Pursuit of Company Opportunity	 	26
	 	 	 	 	 
	Section 11.	 	Representations and Warranties	 	26
	 	 	 	 	 
	11.1	 	In General	 	26
	 	 	 	 	 
	11.2	 	Representations and Warranties	 	26
	 	 	 	 	 
	Section 12.	 	Sale, Assignment, Transfer or other Disposition	 	29
	 	 	 	 	 
	12.1	 	Prohibited Transfers	 	29

 

     ii

     

    

 

	12.2	 	Affiliate Transfers	 	29
	 	 	 	 	 
	12.3	 	Admission of Transferee; Limits on Transfer; Partial Transfers	 	30
	 	 	 	 	 
	12.4	 	Withdrawals	 	31
	 	 	 	 	 
	12.5	 	Removal	 	31
	 	 	 	 	 
	Section 13.	 	Dissolution	 	32
	 	 	 	 	 
	13.1	 	Limitations	 	32
	 	 	 	 	 
	13.2	 	Exclusive Events Requiring Dissolution	 	32
	 	 	 	 	 
	13.3	 	Liquidation	 	32
	 	 	 	 	 
	13.4	 	Continuation of the Company	 	33
	 	 	 	 	 
	Section 14.	 	Indemnification	 	33
	 	 	 	 	 
	14.1	 	Exculpation of Members and Manager	 	33
	 	 	 	 	 
	14.2	 	Indemnification by Company	 	34
	 	 	 	 	 
	14.3	 	Indemnification by Members	 	34
	 	 	 	 	 
	14.4	 	General Indemnification Terms	 	35
	 	 	 	 	 
	14.5	 	Pledge of Company Interest	 	36
	 	 	 	 	 
	Section 15.	 	Put/Call Agreement	 	36
	 	 	 	 	 
	15.1	 	Call Option	 	37
	 	 	 	 	 
	15.2	 	Put Option	 	37
	 	 	 	 	 
	15.3	 	Determination of Put/Call Purchase Price	 	37
	 	 	 	 	 
	15.4	 	Closing Process	 	39
	 	 	 	 	 
	15.5	 	Termination of Related Party Contracts	 	39
	 	 	 	 	 
	Section 16.	 	Miscellaneous	 	39
	 	 	 	 	 
	16.1	 	Notices	 	39
	 	 	 	 	 
	16.2	 	Governing Law	 	41
	 	 	 	 	 
	16.3	 	Successors	 	41
	 	 	 	 	 
	16.4	 	Pronouns	 	41
	 	 	 	 	 
	16.5	 	Table of Contents and Captions Not Part of Agreement	 	41
	 	 	 	 	 
	16.6	 	Severability	 	41
	 	 	 	 	 
	16.7	 	Counterparts	 	42
	 	 	 	 	 
	16.8	 	Entire Agreement and Amendment	 	42
	 	 	 	 	 
	16.9	 	Further Assurances	 	42
	 	 	 	 	 
	16.10	 	No Third Party Rights	 	42
	 	 	 	 	 
	16.11	 	Incorporation by Reference	 	42

 

     iii

     

    

 

	16.12	 	Limitation on Liability	 	42
	 	 	 	 	 
	16.13	 	Remedies Cumulative	 	43
	 	 	 	 	 
	16.14	 	No Waiver	 	43
	 	 	 	 	 
	16.15	 	Limitation On Use of Names	 	43
	 	 	 	 	 
	16.16	 	Publicly Traded Partnership Provision	 	43
	 	 	 	 	 
	16.17	 	Uniform Commercial Code	 	43
	 	 	 	 	 
	16.18	 	Public Announcements	 	43
	 	 	 	 	 
	16.19	 	No Construction Against Drafter	 	44

 

EXHIBITS

 

	Exhibit A	Capital Contribution Amounts
	Exhibit B	Examples of the application of Section 9.1(e)
	Exhibit C	Officers

 

     iv

     

    

 

SECOND AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

BR ARCHCO MOREHEAD JV, LLC

 

This Second Amended
and Restated Limited Liability Company Agreement (this “Agreement”) of BR ArchCo Morehead JV, LLC (the “Company”)
is made and entered into and is effective as of December 29, 2016, by BR Morehead JV Member, LLC, a Delaware limited liability
company (“Bluerock”), WMH Sponsor LLC, a Delaware limited liability company (“ArchCo”),
and TG-BR Partners, LLC, a Georgia limited liability company (“Smith LLC”).

 

WITNESSETH :

 

WHEREAS, the Company
was formed as limited liability company on July 29, 2015, pursuant to the Act;

 

WHEREAS, Bluerock and
ArchCo have entered into that certain Amended and Restated Limited Liability Company Agreement of BR ArchCo Morehead JV, LLC, dated
as of January 6, 2016 (the “Original Agreement”), which is the current limited liability company agreement for
the Company; and

 

WHEREAS, the parties
now desire to (i) admit Smith LLC as a member of the Company and (ii) amend and restate the Original 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 amend and restate the Original Agreement to be as follows and agree among
themselves, as the limited liability company agreement for the Company, 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.

 

"Additional
Contributions" shall have the meaning provided in Section 5.2.

 

“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)(1). Notwithstanding
the foregoing, with respect to Smith LLC, “Affiliate” shall mean only J. Bradford Smith.

 

     

     

    

 

“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 Second Amended and Restated Limited Liability Company Agreement, as amended from time to time.

 

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

 

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

 

“Bluerock
Guaranties” shall have the meaning provided in Section 4.2.

 

“Bluerock
REIT” shall means Bluerock Residential Growth REIT, Inc., a Maryland corporation.

 

“Business
Day” means any day excluding a Saturday, Sunday and any other day during which there is no scheduled trading on the New
York Stock Exchange.

 

“Call Election
Notice” shall have the meaning provided in Section 15.1.

 

“Call Option”
shall have the meaning provided in Section 15.1.

 

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

 

“Capital Contribution”
shall mean, with respect to any Member, the aggregate amount of (i) cash contributed by such Member to the capital of the Company
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, including distributions
made to the Company by a Subsidiary and revenues from the investment of cash balances held by the Company, but excluding loans
to the Company and 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 (including loans by a Member or any of its Affiliates to the Company), (iii) all sums
expended by the Company for capital expenditures, (iv) all prepaid expenses of the Company, (v) all sums expended by the Company
which are otherwise capitalized, and (vi) contributions, loans and advances made to a Subsidiary by the Company during the period
from any source other than proceeds of loans to the Company or Capital Contributions.

 

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

 

    	 	2	 

     

    

 

“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
by the Company or any Subsidiary of the Company under, pursuant to, or in connection with this Agreement or the conduct of the
business of the Company or any Subsidiary of the Company (including the development, construction, ownership or operation of the
Property), and any certifications made in connection therewith, or amendment or amendments made at any time or times heretofore
or hereafter to any of the same, including, without limitation, the Project Administration Agreement and the Construction Financing
Documents and amendment or amendments made at any time or times heretofore or hereafter to any of the same.

 

“Company”
shall mean BR ArchCo Morehead JV, LLC, a Delaware limited liability company organized under the Act.

 

“Confidential
Information” shall have the meaning provided in Section 10.1.

 

“Construction
Financing Documents” shall have the meaning provided in Section 4.1.

 

“Construction
Financing Guaranties” shall have the meaning provided in Section 4.2.

 

“Construction
Financing Guaranty Distribution” shall have the meaning provided in Section 5.8.

 

“Construction
Financing Guaranty Payments” shall have the meaning provided in Section 5.8.

 

“Construction
Lender” shall have the meaning provided in Section 4.1.

 

“Construction
Loan” shall have the meaning provided in Section 4.1.

 

“Construction
Loan Carry Guaranty” shall have the meaning provided in Section 4.2.

 

“Construction
Loan Carve Out Guaranty” shall have the meaning provided in Section 4.2.

 

“Construction
Loan Completion Guaranty” shall have the meaning provided in Section 4.2.

 

“Construction
Loan Environmental Indemnity” shall have the meaning provided in Section 4.2.

 

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

 

“Development
Agreement” shall mean the Development Services Agreement, dated as of November 20, 2015, between the Property Owner and
the Development Manager.

 

“Development
Manager” shall mean BRG Morehead Development Manager, LLC.

 

    	 	3	 

     

    

 

“Disproportionate
Capital” shall mean, with respect to any Member, the amount, if any, by which (i) the aggregate unreturned Additional
Contributions of the Member for whom Disproportionate Capital is being calculated exceed (ii) an amount equal to (A) the unreturned
Additional Contributions of the Member with the smallest Funded Ratio multiplied by (B) a fraction the numerator of which is the
Percentage Interest of the Member for whom Disproportionate Capital is being calculated and the denominator of which is the Percentage
Interest of the Member with the smallest Funded Ratio.

 

“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 (i) an amount equal to the Cash
Flow of the Company for such month or other period, as applicable, plus any amounts released from Company reserves (other than
amounts used for payment of Company obligations or liabilities or to provide funds to a Subsidiary for obligations or liabilities
of a Subsidiary) as reduced by (ii) 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 paid (or, if the context requires, 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.

 

“Evaluation”
shall have the meaning provided in Section 15.3(b).

 

“Final Completion”
shall have the meaning given to “Project Final Completion” in the Project Administration Agreement.

 

“Final Restructuring
Documents” shall have the meaning provided in Section 9.1(e).

 

“Fiscal Year”
shall mean each calendar year ending December 31.

 

“Flow-Through
Entity” shall have the meaning provided in Section 12.3(b)(iv).

 

“FMV”
shall have the meaning provided in Section 15.3(a).

 

“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.

 

“Funded Ratio”
shall mean, for any Member, a number equal to (i) the unreturned Additional Contributions of the Member divided by (ii) an amount
equal to the aggregate of the unreturned Additional Contributions of all Members as of the time in question multiplied by the Percentage
Interest of the Member for whom the Funded Ratio is being calculate.

 

    	 	4	 

     

    

 

“Hurdle Return
Rate” means an internal rate of return, compounded monthly, equal to fifteen percent (15%).

 

“Income”
shall mean the gross income (or items thereof) recognized by the Company for federal income tax purposes 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.

 

“Indemnifying
Party” shall have the meaning provided in Section 14.4(c).

 

“Indemnity
Collateral” shall have the meaning provided in Section 14.5(a).

 

“Inducement
Obligations” shall have the meaning provided in Section 14.5(a).

 

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

 

“Land”
shall mean the land located at 1309 and 1331 West Morehead Street and 811 and 829 South Summit Avenue,
Charlotte, North Carolina, together with related rights and appurtenances.

 

“Loans”
shall have the meaning provided in Section 4.1.

 

“Loss”
shall mean the aggregate of losses, deductions and expenses recognized by the Company for federal income tax purposes 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.

 

“Manager”
shall have the meaning set forth in Section 9.1(a).

 

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

 

“Member in
Question” shall have the meaning provided in Section 16.13.

 

“Mezzanine
Loan Carve Out Guaranty” shall have the meaning provided in Section 4.2.

 

“Mezzanine
Loan Completion Guaranty” shall have the meaning provided in Section 4.2.

 

“Mezzanine
Loan Environmental Indemnity” shall have the meaning provided in Section 4.2.

 

“Mezzanine
Lender” shall have the meaning provided in Section 4.1.

 

“Mezzanine
Loan” shall have the meaning provided in Section 4.1.

 

“Minority
Material Rights” shall have the meaning provided in Section 9.1(e).

 

    	 	5	 

     

    

 

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

 

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

 

“New York
UCC” shall have the meaning set forth in Section 16.18.

 

“Original
Agreement” shall have the meaning provided in the recitals of this Agreement.

 

“Ownership
Restructuring” shall have the meaning provided in Section 9.1(e).

 

“party”
shall have the meaning provided in Section 16.5.

 

“Percentage
Interests” shall mean, subject to adjustment as provided in this Agreement, (i) 83.28% as to Bluerock, (ii) 12% as to
ArchCo and (iii) 4.72% as to Smith LLC.

 

“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.

 

“PM Reports”
shall have the meaning provided in Section 8.2.

 

“Project Administration
Agreement” shall mean that certain Project Administration Agreement dated November 24, 2015 between the Development Manager
and the Project Manager, to which the Property Owner joined for the purposes therein stated.

 

“Project Manager”
shall mean ArchCo WMH PM LLC, a Delaware limited partnership.

 

“Property”
shall mean the Land and the multi-family residential development (expected to contain 286 residential units) to be constructed
thereon, together with related property, including the fixtures, furnishing, equipment and other tangible personal property owned
by the Company or a Subsidiary and located at the Property.

 

“Property
Owner” shall mean BR – ArchCo Morehead, LLC, a Delaware limited liability company, a wholly-owned Subsidiary of
the Company and title holder of the Property.

 

“Property
Stabilization” means the last day of the month in which the Property has attained at least ninety-two and one-half percent
(92.5%) occupancy for three (3) consecutive months.

 

“Pursuer”
shall have the meaning provided in Section 10.3.

 

“Put Election
Notice” shall have the meaning provided in Section 15.2.

 

“Put Option”
shall have the meaning provided in Section 15.2.

 

“Put/Call
Closing Date” shall have the meaning provided in Section 15.4.

 

    	 	6	 

     

    

 

“Put/Call
Election Notice” shall have the meaning provided in Section 15.3(a).

 

“Put/Call
Purchase Price” shall have the meaning provided in Section 15.3(a).

 

“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.

 

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

 

“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.

 

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

 

“Smith Guaranties”
shall have the meaning provided in Section 4.2.

 

“Smith LLC”
shall have the meaning provided in the first paragraph of this Agreement.

 

“Special Distribution”
shall have the meaning provided in Section 5.3.

 

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

 

“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, to transfer, sell, assign, exchange, charge,
pledge, give, hypothecate, convey, encumber or otherwise dispose of, voluntarily or involuntarily, by operation of law or otherwise.

 

“Unreturned
Capital Contributions” shall mean, with respect to each Member, (i) the aggregate amount of such Member’s Capital
Contributions decreased by (ii) the sum of (A) the amount of money previously distributed by the Company to such Member pursuant
to Section 6.3(d) or 6.3(f) and (B) the fair market value (determined by the Members) of any property previously
distributed to such Member by the Company (net of liabilities secured by such distributed property that such Member is considered
to assume or take subject to under Code Section 752) pursuant to Section 6.3(d) or 6.3(f).

 

		Section 2.	Organization of the Company.

 

2.1           Name.
The name of the Company shall be “BR ArchCo Morehead JV, LLC”. The business and affairs of the Company shall be conducted
under such name or such other name as the Manager deem necessary or appropriate to comply with the requirements of law in any jurisdiction
in which the Company may elect to do business.

 

    	 	7	 

     

    

 

2.2           Place
of Registered Office; Registered Agent. The address of the registered office of the Company in the State of Delaware is c/o
National Registered Agents, 160 Greentree Drive, Suite 101, Dover, DE 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, 160 Greentree Drive, Suite 101, Dover, DE 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, 712 Fifth Avenue, 9th Floor, New York, NY 10019,
or at such other place or places as may be determined by the Manager from time to time.

 

2.4           Filings.
An authorized person (within the meaning of the Act) has 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 reasonable 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 the State of Delaware. Notwithstanding
anything contained herein to the contrary, the Company shall not do business in any jurisdiction that would jeopardize the limitation
on liability afforded to the Members under the Act or this Agreement.

 

2.5           Term.
The Company shall continue in existence from the date hereof until January 31, 2065, unless extended by the Manager, or until the
Company is dissolved as provided in Section 13, whichever shall occur earlier.

 

2.6           Expenses
of the Company. Subject to the terms of Sections 8.6 and 9.1, no fees, costs or expenses shall be payable by
the Company to any Member.

 

2.7           Tax
Status. 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.

 

		Section 3.	Purpose.

 

3.1           Company
Purposes. The purposes of the Company will be (i) to develop the Property, either directly or through one or more Subsidiaries,
(ii) to hold ownership interests in one or more Subsidiaries, and to act as a partner, manager or member of any such Subsidiary,
and to take action in the management of a Subsidiary and its business, and (iii) to carry out other activities incident to the
purposes enumerated in this Section 3.1. The Company’s interest in a Subsidiary may be held directly or through one
or more other Subsidiaries. The Company’s interest in a Subsidiary may represent all or only a part of the ownership interests
in the Subsidiary.

 

3.2           Development
of the Property. For purposes of this Section 3, development of the Property includes (i) acquisition and ownership
of the Land by the Company or a Subsidiary, (ii) construction and development of the Property, and constructing other facilities
(including facilities not on the Land) to the extent required by governmental authorities or otherwise appropriate for the Property,
(iii) acquisition, ownership, leasing, operation, maintenance, management, repair, financing, refinancing, sale or other disposition
and other dealings with the Property and (iv) other business typical for an owner or operator of a development similar to the Project.

 

    	 	8	 

     

    

 

3.3           Borrowing.
The purposes of the Company include borrowing money to finance development of the Property and the conduct of the business of the
Company or a Subsidiary, including paying costs of developing, constructing or operating the Property or making loans, advances
or contributions to one or more Subsidiaries for such purpose, all subject to any requirement for approval by the Members contained
in this Agreement.

 

3.4           Investment
Intent. The Members and the Manager acknowledge that the Property is to be developed and held for investment with the intent
of maximizing the return to the Members, but such investment intent shall not preclude a disposition of the Property at any time
otherwise allowed by this Agreement.

 

		Section 4.	Construction Financing.

 

4.1           Loans
and Construction Financing Documents. In order to provide part of the construction financing for the Property, the Members
intend that, immediately after the effectiveness of this Agreement: (i) the Property Owner will obtain a mortgage loan from Bank
of the Ozarks (the “Construction Lender”) in the amount of $34,500,000 (the “Construction Loan”);
and (ii) BR ArchCo Morehead Mezz, LLC (a Subsidiary) will obtain a mezzanine loan from Nationwide Mutual Fire Insurance Company
(the “Mezzanine Lender”) in the amount of $7,250,000 (the “Mezzanine Loan”). The Construction
Loan and the Mezzanine Loan are referred to, collectively, as the “Loans” in this Agreement. The documents evidencing,
securing or guaranteeing the Construction Loan and/or the Mezzanine Loan (including, for the avoidance of doubt, the Construction
Financing Guaranties) are referred to, collectively, as the “Construction Financing Documents” in this Agreement.

 

4.2           Construction
Financing Guaranties. It is anticipated that Affiliates of Members will be required to provide the following in connection
with the Loans: (i) a Guaranty from Bluerock REIT to the Mezzanine Lender (the “Mezzanine Loan Carve Out Guaranty”);
(ii) a Guaranty from J. Bradford Smith to the Mezzanine Lender (the “Mezzanine Loan Completion Guaranty”); (iii)
an Environmental and Hazardous Substances Indemnity Agreement from Bluerock REIT to the Mezzanine Lender (the “Mezzanine
Loan Environmental Indemnity”); (iv) a Guaranty (Debt Service and Carry) from Bluerock REIT to the Construction Lender
(the “Construction Loan Carry Guaranty”); (v) a Guaranty (Carveout) from Bluerock REIT to the Construction Lender
(the “Construction Loan Carve Out Guaranty”); (vi) a Guaranty (Completion) from J. Bradford Smith to the Construction
Lender (the “Construction Loan Completion Guaranty”); and (vii) an Environmental Indemnity Agreement from Bluerock
REIT to the Construction Lender (the “Construction Loan Environmental Indemnity”). The Mezzanine Loan Carve
Out Guaranty, the Mezzanine Loan Environmental Indemnity, the Construction Loan Carve Out Guaranty, the Construction Loan Carry
Guaranty and the Construction Loan Environmental Indemnity are referred to, collectively, as the “Bluerock Guaranties”
in this Agreement. The Mezzanine Loan Completion Guaranty and the Construction Loan Completion Guaranty are referred to, collectively,
as the “Smith Guaranties” in this Agreement. The Bluerock Guaranties and the Smith Guaranties are referred to,
collectively, as the “Construction Financing Guaranties” in this Agreement.

 

    	 	9	 

     

    

 

4.3           Authorization
of Loans. The Members hereby authorize the Company (acting for itself or in a representative capacity on behalf of the Property
Owner, BR ArchCo Morehead Mezz, LLC or any other Subsidiary) to take such actions as any Bluerock (acting as the Manager) or any
officer of the Company determines is appropriate (i) to obtain the Construction Loan and the Mezzanine Loan and to enter into the
Construction Financing Documents on terms as Bluerock (acting as the Manager) or any officer of the Company may conclude are appropriate,
(ii) to execute and deliver such Construction Financing Documents (including loan agreements, promissory notes, deeds of trust,
security agreements, assignments and collateral assignments, assignments of rents and lease, notices, affidavits, and other documents,
instruments, agreements, certificates and consents) as are required by the Construction Lender or the Mezzanine Lender or as Bluerock
(acting as the Manager) or any officer of the Company otherwise considers necessary, appropriate or desirable to effectuate the
Construction Loan and/or the Mezzanine Loan, (iii) to encumber, as security for the Construction Loan, the Property and any other
property of the Company, the Property Owner, BR ArchCo Morehead Mezz, LLC or another Subsidiary as are required by the Construction
Lender or the Mezzanine Lender or as Bluerock (acting as the Manager) or any officer of the Company otherwise considers necessary,
appropriate or desirable to effectuate the Construction Loan and to encumber, as security for the Mezzanine Loan, the ownership
interests in the Property Owner and BR ArchCo Morehead Mezz, LLC (a Subsidiary owned by the Company) and any other property of
the Company, the Property Owner, BR ArchCo Morehead Mezz, LLC or another Subsidiary as are required by the Construction Lender
or the Mezzanine Lender or as Bluerock (acting as the Manager) or any officer of the Company otherwise considers necessary, appropriate
or desirable to effectuate the Mezzanine Loan and (iv) to perform the obligations of the Company, and to cause the Property Owner,
BR ArchCo Morehead Mezz, LLC and each other Subsidiary to perform their respective obligations, under the Construction Financing
Documents. The Members further authorize Bluerock (acting as the Manager) or any officer of the Company, on behalf of the Company
(acting for itself or in a representative capacity on behalf of the Property Owner, BR ArchCo Morehead Mezz, LLC or any other Subsidiary),
(i) to negotiate definitive terms of the Construction Financing Documents, (ii) to execute and deliver such Construction Financing
Documents (including loan agreements, promissory notes, deeds of trust, security agreements, assignments and collateral assignments,
assignments of rents and lease, notices, affidavits, and other documents, instruments, agreements, certificates and consents) as
are required by the Construction Lender or the Mezzanine Lender or as Bluerock (acting as the Manager) or any officer of the Company
otherwise considers necessary, appropriate or desirable to effectuate the Construction Loan and/or the Mezzanine Loan, (iii) to
encumber, as security for the Construction Loan, the Property and any other property of the Company, the Property Owner, BR ArchCo
Morehead Mezz, LLC or another Subsidiary as are required by the Construction Lender or the Mezzanine Lender or as Bluerock (acting
as the Manager) or any officer of the Company otherwise considers necessary, appropriate or desirable to effectuate the Construction
Loan and to encumber, as security for the Mezzanine Loan, the ownership interests in the Property Owner and BR ArchCo Morehead
Mezz, LLC (a Subsidiary owned by the Company) and any other property of the Company, the Property Owner, BR ArchCo Morehead Mezz,
LLC or another Subsidiary as are required by the Construction Lender or the Mezzanine Lender or as Bluerock (acting as the Manager)
or any officer of the Company otherwise considers necessary, appropriate or desirable to effectuate the Mezzanine Loan and (iv)
to cause the Company, the Property Owner, BR ArchCo Morehead Mezz, LLC and each other Subsidiary to perform their respective obligations,
under the Construction Financing Documents.

 

    	 	10	 

     

    

 

		Section 5.	Unreturned
Capital Contributions and Capital Accounts.

 

		5.1	Initial Capital Contributions.

 

(a)          The
Members acknowledge and agree that, immediately prior to effectiveness of this Agreement, the Unreturned Capital Contributions
of Bluerock and ArchCo are as set forth on Exhibit A attached hereto and made a part hereof.

 

(b)          Immediately
upon effectiveness of this Agreement, Smith LLC and Bluerock shall each make a Capital Contribution to the Company in the amount
listed for it on Exhibit A attached hereto and made a part hereof.

 

		5.2	Additional Capital Contributions.

 

(a)          The
Members may be called upon to make Capital Contributions to the Company ("Additional Contributions") from time
to time to satisfy Company obligations or liabilities or obligations or liabilities of a Subsidiary, in any such case to the extent
no other funds (including proceeds of the loans obtained by the Company or a Subsidiary or funds held in reserves by the Company
or a Subsidiary) are then available. If the Manager projects that Additional Contributions will be needed, the Manager may issue
a capital call notice to the Members setting forth the amount of the projected deficit, stating in reasonable detail the proposed
use of funds, and requesting that each Member fund an Additional Contribution in an amount equal to its Percentage Interest of
the projected deficit. Following the issuance of a capital call notice, each Member (including the Manager if it also is a Member)
may make an Additional Contribution in an amount up to its Percentage Interest of the projected deficit as set forth in the capital
call notice.

 

(b)          If
a capital call notice is issued, and if any Member does not make an Additional Contribution equal to its Percentage Interest of
the projected deficit within 10 days, the other Members may take the following action:

 

(1)         Any
Member may withdraw all or part of any Additional Contribution previously made by it in response to the capital call notice.

 

(2)         Any
Member may make an Additional Contribution in an amount up to its proportionate share (based on the respective Percentage Interests
of the Members who elect to fund under this paragraph (2)) of the unfunded portion of the Additional Contributions requested in
the capital call notice; provided, however, that if any funding Member elects to make an Additional Contribution
in an amount less than its proportionate share, other Members may make further Additional Contributions in amounts up to their
respective proportionate share (based on their respective Percentage Interests), with such process to be repeated until the requested
Additional Contributions are fully funded or each Member has funded the entire amount of Additional Contributions that it is willing
to fund.

 

    	 	11	 

     

    

 

The Manager will give the Members notice
if, after issuance of a capital call notice, any Member does not make an Additional Contribution equal to its Percentage Interest
of the Additional Contributions requested in the capital call notice. Any withdrawal pursuant to paragraph (1) above must be made
within 10 days after the date of the Manager's notice pursuant to the preceding sentence, and any Additional Contribution pursuant
to paragraph (2) above must be made within 20 days after the date of the Manager's notice pursuant to the preceding sentence.

 

(c)          A
Member will have no obligation to make any Additional Contribution pursuant to Section 5.2(a) or 5.2(b).

 

5.3           Special
Distribution to Smith LLC. In recognition of the risk undertaken by its Affiliate, J. Bradford Smith, under the Smith Guaranties,
the Company will make a distribution to Smith LLC (the “Special Distribution”) in the amount of $417,500, which
will be paid on the terms and in the priority provided for in Section 6.3. For the avoidance of doubt, the Special Distribution
is subordinate in right of payment to certain of the Company’s pay out of other payments and distributions as contemplated
by Section 6.3.

 

		5.4	Return of Capital Contribution.

 

(a)          Except
as approved by the Manager, no Member shall have any right to withdraw or make a demand for withdrawal of all or part of the balance
reflected in such Member’s Capital Account (as determined under Section 5.6) or the Member’s Unreturned Capital
Contributions.

 

(b)          Any
property distributed in kind in a liquidation will be valued and treated as though the property were sold and cash proceeds distributed.

 

(c)          Each
Member will look solely to the assets of the Company for the return of its Capital Contributions, and if the Company assets remaining
after the payment or discharge of the debts and liabilities of the Company are insufficient to return the investment of each Member,
no Member will have recourse against any other Member or the Manager for return of its Capital Contribution.

 

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

 

    	 	12	 

     

    

 

5.6           Capital
Accounts. A separate capital account (the “Capital Account”) shall be maintained for each Member in accordance
with Section 1.704-1(b)(2)(iv) of the Regulations. The Capital Account balance for each of ArchCo and Bluerock, as it stands immediately
before the effectiveness of this Agreement, will be carried forward as such Member’s initial Capital Account balance for
purposes of this Agreement. The Capital Account of each Member shall be increased by the following, in the case of Bluerock or
ArchCo, to the extent not already reflected in its initial Capital Account: (i) the amount of any Capital Contributions made
by such Member, including for Smith LLC and Bluerock, the amount of the Capital Contribution funded on the Effective Date as provided
for in Section 5.1(b), (ii) in the case of Smith LLC, the amount of the Special Distribution, (iii) the amount of Income allocated
to such Member and (iv) 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 the following, in the case of Bluerock or ArchCo, to
the extent not already reflected in its initial Capital Account: (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 under Code Section 752), (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
6.3 or Section 13.3(d)(ii). In addition, the Capital Account of each Member will be adjusted as required by Regulations
Section 1.704-1(b)(2)(iv) if the Manager concludes such adjustments are necessary to comply with the Code. No Member shall be obligated
to restore any negative balance in its Capital Account. No Member shall be compensated for any positive balance in its Capital
Account except as otherwise expressly provided herein. The foregoing provisions and the other provisions of this Agreement relating
to the maintenance of Capital Accounts are intended to comply with the provisions of Regulations Section 1.704-1(b)(2) and
shall be interpreted and applied in a manner consistent with such Regulations.

 

5.7           New
Members. Subject to Section 9.1(e), the Manager may cause the Company to 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 Manager shall reasonably require to so admit such new Member to the Company.

 

5.8           Construction
Financing Guaranty Distribution. If J. Bradford Smith or Bluerock REIT makes any payment or payments under or with respect
to any or all of the Construction Financing Guaranties (collectively, the “Construction Financing Guaranty Payments”),
and if such Construction Financing Guaranty Payments are not otherwise reimbursed to the payor by the Company, a Subsidiary or
a Member or Manager, then the Company will make distributions to the payor (the “Construction Financing Guaranty Distributions”)
in the amount of the unreimbursed Construction Financing Guaranty Payments, which will be paid on the terms and in the priority
provided for in Section 6.3. Rights under this Section 5.8 do not affect (i) rights to indemnification or other recovery
rights to which J. Bradford Smith or Bluerock REIT is entitled under a provision of this Agreement (including Section 14.2)
or as a matter of law or (ii) the rights of the Manager to call for Additional Contributions under Section 5.2 for the purpose
of reimbursing any Construction Financing Guaranty Payment.

 

    	 	13	 

     

    

 

		Section 6.	Distributions.

 

6.1           General.
The Manager shall distribute all Distributable Funds held by the Company and to be distributed to the Members in accordance with
this Agreement. 

 

6.2           Prohibited
Distributions. Notwithstanding any provision of this Agreement to the contrary, the Company shall not make any Distributions
prohibited by the terms of the Act.

 

6.3           Distributions
of Distributable Funds. Subject to the provisions of Section 6.2, on the fifteenth (15th) day of each month
(or the next Business Day if such fifteenth (15th) day is not a Business Day), the Manager shall distribute all Distributable
Funds on hand as of the last day of the prior month to the Members as follows:

 

(a)          First,
to J. Bradford Smith until J. Bradford Smith has received (i) a return on the unpaid portions of the Construction Financing Guaranty
Payments owed to him (as the balance thereof stands from time to time) calculated at the Hurdle Return Rate and (ii) the unpaid
portion of the Construction Financing Guaranty Payments owed to him;

 

(b)          Second,
to Bluerock REIT until Bluerock REIT has received (i) a return on the unpaid portions of the Construction Financing Guaranty Payments
owed to it (as the balance thereof stands from time to time) calculated at the Hurdle Return Rate and (ii) the unpaid portion of
the Construction Financing Guaranty Payments owed to it;

 

(c)          Third,
to the Members, pari passu, until each Member has received a return on its Disproportionate Capital (as the balance thereof stands
from time to time), calculated at the Hurdle Return Rate;

 

(d)          Fourth,
if any Member has Disproportionate Capital, to the Members who have Disproportionate Capital, pari passu, until the Disproportionate
Capital has been returned to all such Members;

 

(e)          Fifth,
to the Members, pari passu, until each Member has received a return on the Unreturned Capital Contributions and the unpaid portion
of the Special Distribution due it, calculated at the Hurdle Return Rate;

 

(f)           Sixth,
to the Members, pari passu, until each Member has received the Unreturned Capital Contributions and the unpaid portion of the Special
Distribution due it; and

 

(g)          Seventh,
the remaining amount, if any, among the Members in accordance with their Percentage Interests.

 

The Hurdle Return Rate will be calculated
on Unreturned Capital Contributions from the date the first Capital Contribution was funded to the Company, determined for each
Member based on the balance of the Unreturned Capital Contributions of the Member from time to time; the Hurdle Return Rate will
be calculated on the unpaid portion of the Special Distribution from the effective date of this Agreement, determined on the balance
of the Special Distribution that remains unpaid from time to time; the Hurdle Return Rate shall be calculated on the unpaid balance
of each Construction Financing Guaranty Payment from the date such Construction Financing Guaranty Payment was made by J. Bradford
Smith or Bluerock REIT, as applicable. Distributions to a Member under paragraph (d) above will be treated as a return of Additional
Contributions of the Member. Distributions to a Member under paragraph (f) above allocable to Unreturned Capital Contributions
will be treated, first, as a return of Additional Contributions of the Member, until all Additional Contributions of the Member
have been returned, then, as a return of other Capital Contributions.

 

    	 	14	 

     

    

 

		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 6.3 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 6.3
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)(ii). To the extent the allocation of Net Profit or Net Loss does not cause the Capital Account of each
Member to equal the Distributions to a Member, items of income or gain (including items of gross income) will be reallocated to
any Member with a Capital Account which is less than its Distributions, and items of loss, deduction or expense will be reallocated
to any Member with a Capital Account that is greater than its Distributions, in each case in such manner as to reduce, to the greatest
extent possible, the difference for each Member between the Distributions to the Member and the Capital Account of the Member.

 

		7.3	Special 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 this Section 7.

 

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

 

    	 	15	 

     

    

 

(c)          If
there is a net decrease in partnership minimum gain (as defined in Regulations Section 1.704-2(d)) or partner nonrecourse debt
minimum gain (as defined in Regulations Section 1.704-2(i)) during any applicable period, prior to any other allocation provided
for in this Section 7, the Member whose partner nonrecourse debt minimum gain has decreased or, if partnership minimum gain
has decreased, all Members will be specially allocated items of income or gain for the applicable period (and, if necessary, subsequent
periods) in an amount and manner required by Regulations Section 1.704-2(f) or 1.704-2(i)(4). The items to be allocated will
be determined in accordance with Regulations Section 1.704-2.

 

(d)          Any
Member who unexpectedly receives an adjustment, allocation or distribution described in paragraph (4), (5) or (6) of Regulations
Section 1.704-1(b)(2)(ii)(d) which causes or increases a negative balance in its Capital Account will be allocated items of
income or gain sufficient to eliminate as quickly as possible the increase or negative balance, whichever is less, to the extent
required by paragraph (4), (5) and (6) of Regulations Section 1.704-1(b)(2)(ii)(d). To the extent allowable under Regulations
Section 1.704-1(b), any Member receiving an allocation under this Section 7.3(d) will be allocated nonrecourse deductions
(as defined in Regulations Section 1.704-2(b)) in the relevant tax year (and, if necessary, any succeeding tax year) until the
aggregate nonrecourse deductions so allocated are equal to the amount of income or gain allocated under this Section 7.3(d).

 

(e)          Subject
to Section 7.3(c) and 7.3(f), nonrecourse deductions (as defined in Regulations Section 1.704-2(b)) for any period
will be allocated among the Members in proportionate shares, based upon the respective Percentage Interests of the Members.

 

(e)          Any
partner nonrecourse deductions (as defined in Regulations Section 1.704-2(i)) for any period will be allocated to the Member that
made, guaranteed or is otherwise liable with respect to the liability to which the partner nonrecourse deductions are attributable
in accordance with the principles of Regulations Section 1.704-2(i).

 

(f)          No
allocation of Net Loss will be made to a Member to the extent that, after the allocation, the Member would have a negative Capital
Account balance after crediting to the Capital Account any amounts that the Member is deemed obligated to restore as described
in Regulations Sections 1.704-2(i)(5) and 1.704-2(g)(1) and debiting the Capital Account for items described in paragraph
(4), (5) or (6) of Regulations Section 1.704-1(b)(2)(ii)(d).

 

    	 	16	 

     

    

 

(g)          With
respect to any Member who, for any reason, is a Member in the Company for a period less than the Company's full taxable year, the
Member's distributive share of Net Income or Net Losses and items of income and deduction from operations for that year may be
determined by using an interim closing of the Company's books, prorating the Net Income or Net Losses and items of income and deduction,
or any other reasonable method permitted under Code Section 706 as the Manager, in its discretion, may select.

 

(h)          The
book basis of Company property (or property of a disregarded entity that is deemed owned by the Company under applicable income
tax rules) will be adjusted to equal its fair market value (as determined by the Manager) upon the occurrence of any event specified
in subparagraph (i), (ii) or (iii) of Regulations Section 1.704-1(b)(2)(iv)(e)(5), except a Capital Contribution to the Company
in accordance with Section 5.1 or 5.2.

 

(i)           If
the Manager determines that any allocation of Net Profit or Net Loss or an item of income, gain, loss, deduction or expense does
not have "substantial economic effect" within the meaning of Code Section 704, the Manager may adjust the allocations
contemplated by this Section 7 so as to comply with the Code, but any such adjustment shall be made to the minimum extent
necessary to provide for compliance with the Code, taking into account future allocation that are likely to be made.

 

(j)           Any
recapture of depreciation, amortization and other cost recovery deductions shall be allocated among the Members in proportion to
the respective amounts of depreciation, amortization and cost recovery deductions allocated to each Member; provided, however,
that this provision addresses only the character of the Net Profit allocated to a Member, and the recapture amount allocated to
any Member shall not exceed the total Net Profit allocated to such Member for the applicable period.

 

7.4           Disregarded
Entities. If the Company holds an ownership interest in any entity (including a Subsidiary) that is disregarded under Regulations
Sections 301.7701-1 and 301.7701-2, this Section 7 and other tax-related provisions of this Agreement (including those related
to determining book basis and Net Profit and Net Losses) will be construed accordingly. Among other things, Net Profit and Net
Losses will be computed on a consolidated basis as if all activity of the disregarded entity were conducted by the Company, and
property and assets of the disregarded entity will be treated as if property and assets of the Company.

 

7.5           Section
754 Adjustments. Upon the request of any Member, the Company and any applicable Subsidiary shall make an election pursuant
to Code Section 754 to adjust the basis of its property in the manner provided in Code Sections 734(b) and 743(b).

 

7.6           Computation
of Income and Loss. The following will apply for purposes of computing Income and Loss under this Agreement:

 

(a)          Any
income of the Company that is exempt from federal income tax and not otherwise taken into account as an item of Income will be
added to Income.

 

(b)          Any
expenditure of the Company described in Code Section 705(a)(2)(B), or treated as a Code Section 705(a)(2)(B) expenditure
pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account as an item of Loss will be added
to Loss.

 

    	 	17	 

     

    

 

(c)          Gain
or loss resulting from transfer of Company property with respect to which gain or loss is recognized for federal income tax purposes
will be computed by reference to the book basis of the property, notwithstanding that the adjusted tax basis of the property differs
from its book basis.

 

(d)          Any
increase or decrease to Capital Accounts as a result of an adjustment to the book basis of Company property pursuant to Regulations
Section 1.704-1(b)(2)(iv)(f) will be an item of Income or Loss, as appropriate.

 

(e)          If
the basis of Company property is adjusted pursuant to Regulations Section 1.704-1(b)(2)(iv), depreciation computed in accordance
with Regulations Section 1.704-1(b)(2)(iv)(g) will be taken into account in lieu of the depreciation, amortization and other
cost recovery deductions otherwise allowed in computing Income or Loss.

 

(f)          Income
and Losses will be computed taking into account amounts allocated to the Company by any Subsidiary or, if a Subsidiary is a disregarded
entity under Regulations Sections 301.7701-2 and 301.7701-2, results of a Subsidiary's operations that are treated as attributable
directly to the Company.

 

		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 the accounting practices
adopted by Manager. 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) shall
be available to any Member at such location for review and copying, at such Member’s sole cost and expense, during normal
business hours on at least three (3) Business Days’ prior notice.

 

		8.2	Reports and Financial Statements.

 

(a)          As
soon as practicable after the end of each Fiscal Year, the Company shall cause each Member to be furnished with the following 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)          As
soon as practicable, the Company shall cause to be furnished to Bluerock such information as reasonably requested by Bluerock as
is necessary for any REIT Member to determine its qualification as a REIT and its compliance with REIT Requirements.

 

(c)          The
Company and the Manager shall be entitled to rely, with respect to its obligations under this Agreement, on the reports (“PM
Reports”) it receives (i) from the Persons engaged by the Company or the Property Owner for property management and accounting
services and (ii) under the Development Agreement and the Project Administration Agreement. The Members acknowledge that the reports
to be furnished shall be based on the PM Reports, without any duty on the part of the Company or the Manager to further investigate
the completeness, accuracy or adequacy thereof. The Company shall cause each Member to be furnished with copies of all PM Reports
on a monthly basis.

 

    	 	18	 

     

    

 

8.3           Tax
Matters Member. Bluerock is hereby designated as the “tax matters partner” (as defined in Section 6231(a)(7) of
the Code and corresponding provisions of applicable state law) of the Company and the Subsidiaries, and the “partnership
representative” for purposes of Code Sections 6221-6241 (as adopted as part of the Bipartisan Budget Act of 2015, P.L. 114-74)
and corresponding provisions of applicable state law. These designations are effective only for the purpose of activities performed
pursuant to the Code and corresponding provisions of applicable state law. Bluerock, in such capacities, is vested with all powers
and duties as stated in the Code and corresponding provisions of applicable state law, including, without limitation, the right
and authority to represent the Company and its Subsidiaries before any office of the Internal Revenue Service or a state tax authority
with respect to tax matters regarding the Company or a Subsidiary and to appoint an attorney-in-fact to represent the Company or
a Subsidiary before any office of the Internal Revenue Service or a state tax authority. Bluerock, in its capacities as tax matters
partner and partnership representative, will be entitled to reimbursement for all fees and expenses reasonably incurred in connection
with any tax-related matters of the Company or a Subsidiary. Bluerock, as tax matters partner or partnership representative, shall
not bind any Member to a settlement agreement without first obtaining the approval of the Member. Bluerock, as tax matters partner
or partnership representative, shall, to the extent possible, take such action as may be necessary to cause each of the Members
to receive notices directly from the Internal Revenue Service or any state tax authority in any administrative proceeding at the
Company or Subsidiary level relating to the determination of any Company or Subsidiary item of income, gain, loss, expense, deduction
or credit. To the extent it is not possible to cause the Members to receive notices directly from the Internal Revenue Service
or a state tax authority, Bluerock shall provide each Member with a copy of any notice that it receives from the Internal Revenue
Service or any state tax authority as tax matters partner or partnership representative in any partnership administrative proceeding
before the Internal Revenue Service or a state tax authority. Bluerock, as tax matters partner or partnership representative, shall
promptly forward to each Member a copy of any significant written communication Bluerock may send to the Internal Revenue Service
or any state tax authority in such capacity. If an audit results in an imputed underpayment as determined under Code Section 6225,
Bluerock, as partnership representative, shall make the election under Code Section 6226(a) within 45 days after the date of the
notice of final partnership adjustment in the manner provided by the Internal Revenue Service. If such an election is made, Bluerock
shall furnish to each Member for the reviewed year a statement of such Member's share of any adjustment to income, gain, loss,
deduction or credit as determined in the notice of final partnership adjustment, and each Member shall take such adjustment into
account as provided in Code Section 6226(b). If, because of adjustments in any partnership administrative proceeding before the
Internal Revenue Service or a state tax authority, the Company is required to pay any federal or state income tax allocable to
a Member (including a Member who has withdrawn from the Company or transferred its Interest), the Company will be entitled to recover
the amount paid from such Member, together with interest on such amount at the rate of 15% per annum, if the amount due is not
paid with 15 days after demand by Bluerock. The provisions of this Section 8.3 shall survive any liquidation or dissolution
of the Company and any withdrawal from the Company by a Member or the transfer of the Interest of a Member. The Company hereby
indemnifies and holds harmless Bluerock from and against any claim, loss, expense, liability, action or damage resulting from its
acting or its failure to take any action as the tax matters partner or partnership representative of the Company and the Subsidiaries,
provided that any such action or failure to act does not constitute gross negligence or willful misconduct.

 

    	 	19	 

     

    

 

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. Bluerock 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 this 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 Bluerock. No later than the due date or extended due date, the Company shall deliver or cause to be delivered to each
Member a copy of the tax returns for the Company and the 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. The Manager shall further cause the Company to deliver any and all copies
of tax returns of the Company and its Subsidiaries required to be delivered under any Collateral Agreement.

 

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 will be reimbursed by the Company
to the Manager. In addition, the Company will pay to Smith LLC the amount, up to $27,000, of the legal fees reasonably incurred
by Smith LLC or J. Bradford Smith in connection with the admission of Smith LLC as a Member of the Company or the negotiation and
delivery of the Smith Guaranties.

 

		Section 9.	Management
and Operations.

 

		9.1	Manager.

 

(a)          The
Company shall be managed by Bluerock (“Manager”), who shall have the authority to exercise all of the powers
and privileges granted by the Act, any other law or this Agreement, together with any powers incidental thereto, and to take any
other action not prohibited under the Act or other applicable law, so far as such powers or actions are necessary or convenient
or related to the conduct, promotion or attainment of the business, purposes or activities of the Company and its Subsidiaries.

 

(b)          The
Manager shall provide such personnel that are reasonably necessary and appropriate to manage the day-to-day affairs of the Company.
The Manager shall discharge its duties hereunder in accordance with the terms of this Agreement and applicable law. Except for
the $50,000 allowance for construction oversight payable to or on behalf of the Manager through draws under the Construction Loan,
the Manager shall not be entitled to any compensation in consideration for rendering the services described in this Agreement and
shall only be paid or reimbursed to the extent expressly set forth herein. Manager, on behalf of the Company, will conduct or cause
to be conducted the ordinary and usual business and affairs of the Company as required and as limited by this Agreement.

 

    	 	20	 

     

    

 

(c)          Without
limiting the generality of the foregoing, (i) the Manager shall conduct, direct and exercise full control over all activities of
the Company, including, but not limited to, (A) subject to Sections 9.1(e), all decisions relating to subsequent Capital
Contributions and (B) all decisions on behalf of the Company that the Company is permitted to take in its capacity as a direct
or indirect owner of a Subsidiary, including with respect to the sale of, and the exercise of other rights with respect to, the
Property and exercising rights under the Development Agreement and Project Administration Agreement, (ii) all management powers
over the business and affairs of the Company (including as to all decisions that the Company is permitted to take in its capacity
as a direct or indirect owner of a Subsidiary) shall be exclusively vested in the Manager and (iii) the Manager shall have the
sole power to bind or take any action on behalf of the Company or a Subsidiary, or to exercise any rights and powers (including,
without limitation, the rights and powers to take actions (including with respect to amendments, modifications or waivers), give
or withhold consents or approvals (including with respect to any amendment, modification or waiver) or make determinations, opinions,
judgments, or other decisions) granted to the Company under this Agreement or exercisable directly or indirectly by the Company
as the holder of an ownership interest (direct or indirect) in any Subsidiary (including under the limited liability company agreement,
operating agreement or partnership agreement of any Subsidiary), or which arise as a result of the Company’s
ownership of securities or otherwise. Further to the foregoing, the Manager shall have the right to:

 

(i)          enter
into or cause the Company or any Subsidiary to enter into any agreement regarding a financing or refinancing of the Property;

 

(ii)         enter
into or cause the Company or any Subsidiary to enter into any agreement regarding a sale of the Property;

 

(iii)        subject
to Article 16, dissolve or wind up the Company or any Subsidiary;

 

(iv)        determine
the timing and amount of any investment in the Company or any Subsidiary and, subject to Section 9.1(e), to effect amendments
to this Agreement and/or the limited liability company agreement, operating agreement or partnership agreement of any Subsidiary
in order to effectuate such investments;

 

(v)         determine
whether to repair or rebuild the Property in the event of casualty or condemnation of the Property;

 

(vi)        engage
real estate brokers, mortgage bankers or mortgage brokers in connection with the sale of the Property or any Property financings
or refinancings;

 

(vii)       enter
into any lease, any amendment to a lease or any extension of the term of any lease;

 

(viii)      determine
insurance carriers and types and amount of insurance coverage of the Company, any Subsidiary or the Property;

 

    	 	21	 

     

    

 

(ix)         make
decisions regarding accounting policy or procedures;

 

(x)          enter
into, or cause the Property Owner to enter into, a property management agreement;

 

(xi)         retain
or terminate a general contractor to manage the construction and development of the Property; and

 

(xii)        delegate
its duties under this Agreement.

 

However, notwithstanding any of the foregoing,
or any authority granted to the Manager in another provision of this Agreement, the Manager may not take any of the following actions
without the prior written approval of Smith LLC: (i) amend or modify any Construction Financing Documents (other than the Bluerock
Guaranties), or (ii) modify or alter the Property (including but not limited to the improvements to be constructed on the Land)
or otherwise take action with respect to the Property that materially alters or increases the obligations of J. Bradford Smith
under any or all of the Smith Guaranties.

 

(d)          The
Manager may designate a president, one or more vice president, a treasurer, a secretary or other officers for the Company. An individual
may hold more than one office. Each individual listed in Exhibit C is hereby elected as an officer of the Company, holding
the respective office or offices indicated opposite his or her name. Except for the officers designated in this Section 9.1(d),
officers will be elected by the Manager. Each officer will serve until his death, permanent disability, resignation or removal.
An officer may resign at any time. An officer may be removed at any time, with or without cause, by the Manager. The Company’s
officers will have such authority and shall perform such functions as specified by the Manager or as otherwise are customarily
incident to their respective offices, in all cases subject to direction of the Manager. An officer will not be entitled to compensation
from the Company or a Subsidiary. An officer will be entitled to reimbursement from the Company for reasonable expenses incurred
in the performance of his or her duties as an officer, subject to the expense reimbursement policies approved by the Manager, if
any.

 

(e)          Notwithstanding
anything contained herein to the contrary, after giving effect to any amendment hereof proposed by the Manager (which amendment
shall be deemed executed and delivered by the parties upon the consummation of the contemplated transaction), the timing and amounts
distributable to ArchCo and Smith LLC pursuant to Section 6.3 shall not be adversely affected by, and no other material
right of ArchCo or Smith LLC hereunder (collectively, “Minority Material Rights”) shall be effectively subordinated
or otherwise diminished by reason of, any determination by the Manager to (i) accept Capital Contributions on terms other
than the terms that would be applicable if such additional Capital Contribution were made by Bluerock pursuant to the terms hereof
or (ii) enter into any agreement regarding a direct or indirect contribution of the Property, or a reorganization, merger or other
consolidation of the Company or a Subsidiary, or a sale of the Property to an entity in which Bluerock or an Affiliate is a buyer
(in each case, a “Ownership Restructuring”). Exhibit B attached hereto and made a part hereof discusses
certain potential transactions and illustrates how the terms of this Section 9.1(e) are intended to apply thereto. Manager
shall deliver to ArchCo and Smith LLC copies of final term sheets and material drafts of material agreements regarding any proposed
Ownership Restructuring. No proposed Ownership Restructuring shall become effective until at least ten (10) Business Days after
the final forms of all material documents and agreements regarding the Ownership Restructuring (the “Final Restructuring
Documents”) have been delivered to ArchCo and Smith LLC. ArchCo and Smith LLC each shall promptly deliver to the Manager
in writing any and all objections it may have that the proposed Ownership Restructuring will adversely affect Minority Material
Rights, so that Manager may in its sole discretion take them into account with respect to determining the Final Restructuring Documents.
The Members and the Manager agree that an action for damages will not provide an adequate or timely remedy to compensate ArchCo
and Smith LLC for a violation of Minority Material Rights under this Section 9.1(e). Accordingly, the Members and the Manager
agree that an injunction is an appropriate remedy to prevent violation of Minority Material Rights under this Section 9.1(e)
with respect to any Ownership Restructuring and ArchCo and/or Smith LLC shall be entitled to seek entry of such an injunction in
the Courts of New York as provided in Section 16 below.

 

    	 	22	 

     

    

 

9.2           Affiliate Transactions.
Subject to Sections 9.1(b) and 9.5, no agreement shall be entered into by the Company or any Subsidiary with the
Manager or any Affiliate of the Manager 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 unanimously approved by the Members,
which approvals shall not be unreasonably withheld, conditioned or delayed.

 

9.3           Right
to Participation in Other 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 Member or its 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 Manager or
its Affiliates or in the income or proceeds derived from such ventures, activities or opportunities.

 

9.4           Limitation
on Actions of Members; Binding Authority. No Member (in its capacity as such) shall, without the prior written consent of the
Manager, take any action on behalf of, or in the name of, the Company or any Subsidiary, or enter into any contract, agreement,
commitment or obligation binding upon the Company or any Subsidiary, or perform any act in any way relating to the Company or any
Subsidiary or the assets of the Company or any Subsidiary, except in a manner and to the extent consistent with authority specifically
granted by another provision of this Agreement, the Project Administration Agreement or the Development Agreement.

 

9.5           Project
Administration Agreement. The Company has caused the Property Owner to enter into the Development Agreement with Development
Manager and to join in the Project Administration Agreement with the Development Manager
and Project Manager.

 

9.6           Operation
in Accordance with REIT Requirements. The Manager shall exercise commercially reasonable efforts to cause the Company to own, operate
and dispose of its assets such that the nature of all of the Company’s assets and gross revenues (as determined
pursuant to Code Sections 856(c)(2), (3) and (4)) would permit the Company to (i) qualify as a REIT (assuming for this purpose
that the Company otherwise qualified as a REIT) and (ii) avoid incurring any tax on either prohibited transactions under Code
Section 857(b)(6) or on re-determined rents, re-determined deductions, and excess interest under Code Section 857(b)(7)
(determined as if the Company were a REIT).  In addition, the Company shall make current cash distributions pursuant to Section
6.3 hereof during each calendar year in an amount at least equal to the taxable income allocable to Bluerock
for such calendar year.

 

    	 	23	 

     

    

 

9.7           FCPA.
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. Each Member agrees to notify immediately the other Member of any request that such Member receives,
or that is received by any of its officers, directors, employees, shareholders, members, agents or Affiliates, acting on its behalf,
and that requests such member or other person to take any action that may constitute a violation of the Foreign Corrupt Practices
Act.

 

9.8           Lender
Notices; Reports. Without limiting any other obligations of Manager hereunder, Manager shall promptly send to Smith LLC and
ArchCo copies of (i) all notices given by Construction Lender or Mezzanine Lender to the Company or the Property Owner and, to
the extent received by the Manager, notices given by Construction Lender or Mezzanine Lender to any of the representatives of the
Company or the Property Owner, in each cases with respect to any of the Loans, including, but not limited to, notices concerning
the Property and/or the development thereof, and (ii) all reports and filings provided to Construction Lender or Mezzanine Lender
by the Manager on behalf of the Company or the Property Owner.

 

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		Section 10.	Confidentiality.

 

10.1         Confidential
Information. Any information relating to the business, operation or finances of a Member or any of its Affiliates which are
proprietary to the Member or its Affiliate, or considered proprietary by the Member, are hereinafter referred to as “Confidential
Information”. All information in tangible form (plans, writings, drawings, computer software and programs, etc.) provided
to a receiving Member or any of its Affiliates, and any information conveyed orally or visually to a receiving Member or any of
its Affiliates, shall be presumed to be Confidential Information at the time of delivery to the receiving Member or its Affiliate.
All Confidential Information received by a Member or any of its Affiliates shall be protected by such Member from disclosure with
the same degree of care with which such Member protects its own Confidential Information from disclosure. Each Member agrees: (i)
not to disclose or allow any Affiliate to disclose Confidential Information to any Person except to its Affiliates and those employees
or representatives of it or its Affiliates who need to know such Confidential Information in connection with the conduct of the
business of the Company and its Subsidiaries or the Member or its Affiliates and who have agreed to maintain the confidentiality
of such Confidential Information and (ii) neither it nor any of its Affiliates not any of the employees or representatives of it
or any of its Affiliates will use the Confidential Information of another Member or any of its Affiliates for any purpose other
than in connection with the conduct of the business of the Company and its Subsidiaries; provided, however, that
such restrictions shall not apply if such Confidential Information:

 

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

 

(ii)         was
already in the possession of the receiving Member or its Affiliates prior to any disclosure of the Confidential Information to
the receiving Member or its Affiliates by the divulging Member or its Affiliates;

 

(iii)        is
being disseminated by or on behalf of Bluerock in connection with its or its Affiliates’ procurement of institutional debt
or equity capital for the Property or other projects on which it and an Affiliate of another Member are working together; or

 

(iv)        has
been or is hereafter obtained by the receiving Member or its Affiliates 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 or its Affiliates from disclosing any portion of such Confidential Information (1) to the Company
or a Subsidiary and allowing the Company or a Subsidiary to use such Confidential Information in connection with the business of
the Company or a Subsidiary, (2) pursuant to judicial order or in response to a governmental inquiry, a 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 Member
who divulged the Confidential Information or whose Affiliate divulged the Confidential Information, (3) as necessary or appropriate
in connection with or to prevent an audit by a governmental agency of the accounts of a Member or its Affiliates, (4) in order
to initiate, defend or otherwise pursue legal proceedings among Members and Affiliates of Members the regarding this Agreement,
the Company or a Subsidiary or transactions contemplated by 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.

 

    	 	25	 

     

    

 

10.2         Company
Information. 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 the Subsidiaries and their respective businesses, 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 or a Subsidiary. Each Member may, from time to time, provide the other Members written notice of its non-public
information which is subject to this Section 10.2. A Member will not be in breach of this Section 10.2 if the Member
or its Affiliates disclose any such information under circumstances that would be permitted for disclosure of Confidential Information
under Section 10.1.

 

10.3         Pursuit
of Company Opportunity. Without limiting any of the other terms and provisions of this Agreement (including, without limitation,
Section 9.3, to the extent a Member or any of its Affiliates (the “Pursuer”) provides another Member
or its Affiliates with information relating to a possible investment opportunity then being actively pursued by the Pursuer on
behalf of the Company or a Subsidiary, such other Member (i) shall not use such information or allow any of its Affiliates to use
such information to pursue such investment opportunity for its own account to the exclusion of the Pursuer and its Affiliates so
long as the Pursuer or an Affiliate is actively pursuing such opportunity on behalf of the Company or a Subsidiary and (ii) shall
not, and shall not allow any of its Affiliates to, disclose such 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 or its Affiliates.

 

		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 limited liability company duly formed, validly existing
and in good standing under the laws of the jurisdiction of its formation and has the 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 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 company action. This Agreement constitutes
the legal, valid and binding obligation of such Member.

 

    	 	26	 

     

    

 

(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, limited liability company 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 the properties or assets of such Member or any of its Affiliates is subject, (iii) does or
will conflict with, violate, result in (or has conflicted with, violated or resulted in) a breach of, constitute (or has constituted)
a default under (whether with notice or lapse of time or both), accelerate or permit the acceleration of (or has accelerated) the
performance required by, give (or has given) to others any material interests or rights or require any consent, authorization or
approval under any indenture, mortgage, lease, agreement or instrument to which such Member or any of its Affiliates is a party
or by which such Member or any of its Affiliates or any of their properties or assets is or may be bound or (iv) does or will result
(or has resulted) in the creation or imposition of any lien upon any of the properties or assets of such Member or any of its Affiliates.

 

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

 

(d)          Litigation.
There are no actions, suits, proceedings or investigations pending, or, to the knowledge of such Member or any of its Affiliates,
threatened against or affecting such Member or any of its Affiliates or any of their properties, assets or businesses in any court
or before or by any governmental department, board, agency or instrumentality, domestic or foreign, or any arbitrator which could,
if adversely determined (or, in the case of an investigation could lead to any action, suit or proceeding which if adversely determined
could) reasonably be expected to materially impair such Member’s ability to perform its obligations under this Agreement
or to have a material adverse effect on the consolidated financial condition of such Member and its Affiliates; 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 ability to perform its obligations under this Agreement or the ability of such Member (or any of its
Affiliates) to carry out the transactions contemplated hereby or to have a material adverse effect on the consolidated financial
condition of such Member and its Affiliates.

 

(e)          Investigation.
Such Member is acquiring its Interest based upon its own investigation, analysis and expertise, 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 its Interest.

 

    	 	27	 

     

    

 

(f)          Broker.
No broker, agent or other person acting as such on behalf of such Member or any of its Affiliates was instrumental in consummating
this transaction, and no conversations or prior negotiations were had by such Member or any of its Affiliates 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)          Such
Member acknowledges that 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 and state securities laws based, in part, upon the representations, warranties and agreements contained in this Agreement.
Such Member is an “accredited investor” as such term is defined in Rule 501 of Regulation D promulgated under the Securities
Act.

 

(ii)         Neither
the Securities and Exchange Commission nor any state securities commission has approved the Interests or passed upon or endorsed
the merits of the offer or sale of the Interests. Such Member is acquiring the 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 neither such Member nor any of its Affiliates 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 Subsidiaries or any of their respective 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, or
an exemption from registration is available, under the Securities Act and applicable state securities laws. 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 or restrictions applicable under the Securities Act or applicable state securities laws.

 

    	 	28	 

     

    

 

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

 

(vii)       Such
Member has, directly or through its Affiliates, significant prior investment experience, including investment in non-listed and
non-registered securities. Such Member, either directly or through its Affiliates, is knowledgeable about investment considerations.
Such Member and its Affiliates have a sufficient net worth to sustain a loss of such Member’s entire investment in the Company
in the event such a loss should occur. The overall commitment of such Member and its Affiliates to investments which are not readily
marketable is not excessive in view of the net worth and financial circumstances of such Member and its Affiliates 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)      The
information contained in this subparagraph (h) and in all other writings, if any, furnished to the Company or the Manager with
regard to such Member and its Affiliates (to the extent such writings relate to the exemption from registration of Interests under
the Securities Act or any state securities laws) is complete and accurate and may be relied upon by the Company, the Manager and
the other Members in determining the availability of an exemption from registration under federal and state securities laws in
connection with the sale of the Interests.

 

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

 

12.1         Prohibited
Transfers. Except as otherwise provided in this Section 12 or Section 5.7,
14.5 or 15, or as approved by the Manager, no Member shall cause, suffer or permit any 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. For purposes hereof, unless approved by the Manager, any Transfer of any direct or indirect
interest in a Member shall constitute a Transfer of such Member’s Interest, except as follows: (i) any indirect Transfer
of an ownership interest in ArchCo shall be permitted so long as Neil Brown at all times retains a direct or indirect ownership
interest of an at least 51% in ArchCo; (ii) any Transfer of a direct or indirect ownership interest in Bluerock REIT or Bluerock
Special Opportunity + Income Fund II, LLC shall be permitted; (iii) any Transfer between Bluerock REIT and Bluerock Special Opportunity
+ Income Fund II, LLC shall be permitted so long as either or both of them collectively at all times retain a direct or indirect
ownership interest of at least 51% in the Company; and (iv) any direct or indirect Transfer of an ownership interest in Smith
LLC shall be permitted so long as J. Bradford Smith at all times retains a direct or indirect ownership interest of an at least
51% in Smith LLC.

 

12.2         Affiliate
Transfers. Subject to the provisions of Section 12.3 hereof, and subject in each case to the prior written approval
of the Manager (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, but thereafter such Affiliate shall remain an Affiliate of the original Member
at all times that such Affiliate holds such Interest. If such Affiliate shall thereafter cease being an Affiliate of the original
Member while such Affiliate holds such Interest, such cessation shall be a non-permitted Transfer, whereupon the original Member
shall, at its own and sole expense, cause the Interest to be returned to it and shall indemnify the Company, each Subsidiary, the
Manager and the other Members against loss or damage under any Collateral Agreement.

 

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		12.3	Admission of Transferee; Limits on Transfer; Partial
Transfers.

 

(a)          Notwithstanding
anything in this Section 12 to the contrary and except as provided in Section 14.5 or 15, no Transfer of Interests
in the Company shall be permitted unless the potential transferee is admitted as a Member under this Section 12.3. 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, each Subsidiary, the Manager and the
other Members 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 Manager as may be required by applicable law or as the Manager otherwise considers
advisable.

 

(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 Manager 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)         as
a result of such Transfer the Company would be required to register under the Securities and Exchange Act of 1934, as amended,
or the Investment Company Act of 1940, as amended, or any rules or regulations promulgated thereunder;

 

(iii)        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;

 

(iv)        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)(iv), a Person indirectly owning an interest in the Company through a partnership, grantor trust or S corporation (as
such terms are used in the Code) (a “Flow-Through Entity”) shall be considered a Member, but only if (i) substantially
all of the value of such Person’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

 

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(v)         the
transferor failed to comply with the provisions of Sections 12.1 or 12.2.

 

(c)          No
Member shall permit any Transfer of its Interest that is prohibited by the Construction Financing Documents or the loan documents
for any other loan made to the Company or a Subsidiary, or permit any person who holds a direct or indirect ownership interest
in such Member to complete a transfer or encumbrance of any such ownership interest that is prohibited by the Construction Financing
Documents or the loan documents for any other loan made to the Company or a Subsidiary, or permit the issuance of any additional
ownership interest in such Member or any person who holds a direct or indirect ownership interest in such Member that is prohibited
by the Construction Financing Documents or the loan documents for any other loan made to the Company or a Subsidiary. Each Member
agrees to indemnify, defend and hold harmless the Company, each Subsidiary, the Manager and the other Members and the respective
Affiliates of the Manager and the other Members against any and all claims, suits, actions or other proceedings and all related
loss, cost, damage, expense or liability (including fees and expenses of attorneys and other professional advisors and court costs)
incurred by any such indemnified parties by reason of any violation of this Section 12.3(c).

 

(d)          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, or as otherwise
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. Except as otherwise provided in this Agreement, 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.

 

12.5         Removal.
If Project Manager fails to use commercially reasonable efforts to perform its obligations under the Project Administration Agreement,
and such failure continues for a period of 30 days after the Development Manager gives written notice of such failure to Project
Manager, then ArchCo may be removed as a Member of the Company and upon such removal ArchCo shall have no further Interest in the
Company. Such removal shall not alter ArchCo’s rights under any indemnification or any agreement for ArchCo’s benefit
pursuant to Section 14.3. On removal of ArchCo, the Bluerock Percentage Interest will be increased automatically, without
further action by any Member, the Manager or the Company, by the Percentage Interest previously held by ArchCo.

 

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		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”):

 

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

 

(ii)         at
any time after the sale of the Property at such time as determined by the Manager;

 

(iii)        by
the unanimous approval of the Members in writing;

 

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

 

(v)         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. 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); and

 

    	 	32	 

     

    

 

(ii)         the
balance, if any, to the Members in accordance with Section 6.3.

 

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 Manager is expressly
authorized to continue the business of the Company in such event, without any further action on the part of the Members.

 

		Section 14.	Indemnification.

 

		14.1	Exculpation of Members and Manager.

 

(a)          No
Member, Manager, 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 or any Subsidiary, except to the extent any
related loss results from fraud, gross negligence or willful or wanton misconduct on the part of such Member, Manager, or officer
or the willful breach of any obligation under this Agreement; provided, however, that no Member, Manager, or officer
of the Company shall be liable to the Company or to the other Members for special, incidental, consequential, or punitive damages.

 

(b)          Whenever
in this Agreement the Manager is permitted or required to take any action or to make a decision or determination in its “good
faith” or under another express standard, the Manager shall act under such express standard and, to the extent permitted
by applicable law, shall not be subject to any other or different standards imposed by this Agreement, and, notwithstanding anything
contained herein to the contrary, so long as the Manager acts in good faith, and such act does not constitute a bad faith violation
of the implied contractual covenant of good faith and fair dealing, the resolution, action or terms so made, taken or provided
by the Manager shall not constitute a breach of this Agreement or impose liability upon the Manager or any of its Affiliates or
their respective shareholders, partners, members, employees, agents or representatives.

 

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		14.2	Indemnification by Company.

 

(a)          The
Company hereby indemnifies, holds harmless and defends the Members, the Manager, the officers of the Company, any Affiliate of
a Member or the Manager (including but not limited to J. Bradford Smith and Bluerock REIT) and each of their respective agents,
officers, directors, members, partners, shareholders and employees from and against any loss, expense, damage, injury, costs, claims
and liabilities 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 a Subsidiary or in furtherance of the interests
of the Company or a Subsidiary, except as a result of acts or omissions performed or omitted fraudulently or as a result of gross
negligence or willful or wanton misconduct by the Person seeking indemnification or another Person related to the same Member as
the Person seeking indemnification or as a result of the willful breach of any obligation under this Agreement by the Person seeking
indemnification or another Person related to the same Member as the Person seeking indemnification, (ii) the provision of guaranties,
indemnities or similar undertakings to third party lenders in respect of financings relating to the Company or a Subsidiary or
any of their respective assets (including the Property), including, without limitation, any of the Construction Financing Guaranties,
but specifically excluding from such indemnity by the Company any so called “bad boy” guaranties or similar agreements
to the extent, loss, expense, damage, injury, costs, claims and liabilities arises out of any such triggering event thereunder
on the part of the Person seeking indemnification or another Person related to the same Member as the Person seeking indemnification,
(iii) their status as Members, Manager, employees or officers of the Company or association with a Member or the Manager, or (iv)
the assets, property, business or affairs of the Company or any of its Subsidiaries (including, without limitation, the actions
of any officer, director, member or employee of the Company or any of its Subsidiaries), except as a result of acts or omissions
performed or omitted fraudulently or as a result of gross negligence or willful or wanton misconduct by the Person seeking indemnification
or another Person related to the same Member as the Person seeking indemnification or as a result of the willful breach of any
obligation under this Agreement by the Person seeking indemnification or another Person related to the same Member as the Person
seeking indemnification. 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.

 

(b)          If
Manager gives ArchCo notice that: (i) a lender or institutional investor to the Company or a Subsidiary requires a completion guaranty
from ArchCo, ArchCo shall provide such completion guaranty provided that Bluerock REIT indemnifies the guarantor under such completion
guaranty from and against any losses thereunder not caused by breach of the Project Administration Agreement by such guarantor,
ArchCo or an Affiliate; or (ii) a lender or institutional investor to the Company or a Subsidiary requires a so-called bad-boy
guaranty from ArchCo, ArchCo shall provide such bad-boy guaranty provided that the Members shall enter into a backstop agreement
mutually agreeable to the Members to allocate the risk of loss to the responsible Member whose acts or omissions (or whose Affiliate’s
acts or omissions) were the cause for tripping any such bad-boy guaranty.

 

		14.3	Indemnification by Members.

 

(a)          ArchCo
hereby indemnifies, defends and holds harmless the Company, each Subsidiary, and Bluerock and Smith LLC and each of their respective
Affiliates, as well as the respective agents, officers, directors, members, partners, shareholders and employees of Bluerock and
Smith LLC and each of their respective Affiliates, from and against all loss, expense, damage, injury, costs, claims and liabilities
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) as a result
of or arising out of (i) any fraud, gross negligence or willful or wanton misconduct on the part of, or by, ArchCo or any of its
Affiliates or any of its agents, officers, directors, members, partners, shareholders and employees, (ii) any loss, expense, damage,
injury, costs, claims and liabilities under so called “bad boy” guaranties or similar agreements to the extent the
loss, expense, damage, injury, costs, claims and liabilities arises out of any such triggering event thereunder on the part of
ArchCo or any of its Affiliates or any of its agents, officers, directors, members, partners, shareholders and employees or (iii)
any breach of any obligation of the ArchCo under this Agreement.

 

    	 	34	 

     

    

 

(b)          Bluerock
hereby indemnifies, defends and holds harmless the Company, each Subsidiary, and ArchCo and Smith LLC and each of their respective
Affiliates, as well as the respective agents, officers, directors, members, partners, shareholders and employees of ArchCo and
Smith LLC and each of their respective Affiliates, from and against all loss, expense, damage, injury, costs, claims and liabilities
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) as a result
of or arising out of (i) any fraud, gross negligence or willful or wanton misconduct on the part of, or by, Bluerock or any of
its Affiliates or any of its agents, officers, directors, members, partners, shareholders and employees, (ii) any loss, expense,
damage, injury, costs, claims and liabilities under so called “bad boy” guaranties or similar agreements to the extent
the loss, expense, damage, injury, costs, claims and liabilities arises out of any such triggering event thereunder on the part
of Bluerock or any of its Affiliates or any of its agents, officers, directors, members, partners, shareholders and employees,
(iii) any breach of any obligation of Bluerock under this Agreement or (iv) the failure of the Property Owner to fulfill its obligations
to make payments to the Project Manager due under the Project Administration Agreement in accordance with its terms.

 

(c)          Smith
LLC hereby indemnifies, defends and holds harmless the Company, each Subsidiary, and ArchCo and Bluerock and each of their respective
Affiliates, as well as the respective agents, officers, directors, members, partners, shareholders and employees of ArchCo and
Bluerock and each of their respective Affiliates, from and against all loss, expense, damage, injury, costs, claims and liabilities
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) as a result
of or arising out of (i) any fraud, gross negligence or willful or wanton misconduct on the part of, or by, Smith LLC or any of
its Affiliates or any of its agents, officers, directors, members, partners, shareholders and employees, (ii) any loss, expense,
damage, injury, costs, claims and liabilities under so called “bad boy” guaranties or similar agreements to the extent
the loss, expense, damage, injury, costs, claims and liabilities arises out of any such triggering event thereunder on the part
of Smith LLC or any of its Affiliates or any of its agents, officers, directors, members, partners, shareholders and employees
or (iii) any breach of any obligation of Smith LLC under this Agreement.

 

		14.4	General Indemnification Terms.

 

(a)          The
indemnification rights under this Section 14 do not extend to special, incidental, consequential, or punitive damages, except
to the extent that the special, incidental, consequential, or punitive damages are recovered from the indemnified party by a third-party
not affiliated with a Member or the Manager.

 

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

 

(c)          Any
Person entitled to indemnification pursuant to this Section 14.4 is referred to herein as an “Indemnified Party”.
The terms of this Section 14 shall survive termination of this Agreement.

 

		14.5	Pledge of Company Interest.

 

(a)          As
security for the indemnity obligations of such Member under Section 14.3 (the “Inducement Obligation”),
but subject to the limitation in Section 14.4(b), each Member grants to the other Members and the Manager and the Indemnified
Parties associated with the other Members and the Manager a lien upon and a continuing security interest in the Member’s
Interest in the Company and all proceeds thereof, including all payments due or to become due to the Member hereunder (collectively,
the “Indemnity Collateral”). Any Transfer by a Member of its Interest shall be subject to the lien and security
interest granted hereby until and unless such lien and security interest are released by the other Members and the Manager.

 

(b)          The
other Members and the Manager and the Indemnified Parties associated with the other Members and the Manager shall each have all
of the rights now or hereafter existing under applicable law, and all rights as a secured creditor under the Uniform Commercial
Code in all relevant jurisdictions, with respect to the Indemnity Collateral, and each Member agrees to take all such actions as
may be reasonably requested of it by other Members or the Manager to ensure that other Members and the Manager and the Indemnified
Parties associated with the other Members and the Manager can realize on such security interest.

 

(c)          In
the event an Indemnified Party obtains a judgment on account of an Inducement Obligation, then the Indemnified Party shall, to
the fullest extent permitted by law, be deemed, without payment of further consideration or the taking of further action by any
other Person, to have acquired from the Indemnifying Party such portion of the Indemnity Collateral as shall be equal in value
to the amount of the judgment, provided, at the request of the Indemnified Party, the Member who owns the Indemnity Collateral
shall execute and deliver to the Indemnified Party an amendment to this Agreement to reflect the change in the Interests.

 

(d)          The
rights provided in this Section 14.5 (i) shall be subject to the limitations of enforceability as provided in Section
14.4(b) and (ii) shall not be enforceable if doing so would trigger liability under, or otherwise violate the provisions of,
the Construction Financing Documents.

 

14.6         Exclusivity
of Remedies. The remedies provided in this Section 14 constitute the sole and exclusive remedies available to the Company,
ArchCo, Smith LLC and Bluerock with respect to matters addressed in this Agreement; provided, however, that this
Section 14.6 does not extend to, or limit rights or obligations under, separate contracts to which one or more of the Company,
ArchCo, Smith LLC and Bluerock may be parties, including the Project Administration Agreement and the Development Agreement.

 

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		Section
                            15.	Put/Call Agreement.

 

15.1         Call
Option. At any time after the earlier to occur of (i) twenty four (24) months following Final Completion, or (ii) twelve (12)
months following Property Stabilization, Bluerock or its designee (for purposes of this Section 15, references to “Bluerock”
means Bluerock or such designee, as appropriate) shall have the right, but not the obligation, to purchase and acquire all, but
not less than all, of ArchCo’s Interest in the Company for the Put/Call Purchase Price thereof by delivering written notice
of such election (the “Call Election Notice”) to ArchCo (the “Call Option”). Upon delivery
of the Call Election Notice to ArchCo, which shall be the effective date of the Call Election Notice, the obligation of Bluerock
to purchase and acquire ArchCo’s entire Interest in the Company for the Put/Call Purchase Price thereof shall be expressly
irrevocable and non-contingent, and the obligation of ArchCo to sell and transfer ArchCo’s entire Interest in the Company
to Bluerock for the Put/Call Purchase Price thereof shall be expressly irrevocable and non-contingent.

 

15.2         Put
Option. At any time after the earlier to occur of (i) twenty four (24) months following Final Completion, or (ii) twelve (12)
months following Property Stabilization, ArchCo shall have the right, but not the obligation, to elect to require Bluerock or its
designee (for purposes of this Section 15, references to “Bluerock” means Bluerock or such designee, as appropriate)
to purchase and acquire all, but not less than all, of ArchCo’s Interest in the Company for the Put/Call Purchase Price thereof
by delivering written notice of such election (the “Put Election Notice”) to Bluerock (the “Put Option”).
Upon delivery of the Put Election Notice to Bluerock, which shall be the effective date of the Put Election Notice, the obligation
of Bluerock to purchase and acquire ArchCo’s entire Interest in the Company for the Put/Call Purchase Price thereof shall
be expressly irrevocable and non-contingent, and the obligation of ArchCo to sell and transfer ArchCo’s entire Interest in
the Company to Bluerock for the Put/Call Purchase Price thereof shall be expressly irrevocable and non-contingent.

 

		15.3	Determination of Put/Call Purchase Price.

 

(a)          General.
The purchase price for ArchCo’s Interest (the “Put/Call Purchase Price”) in connection with the Call Option
or the Put Option shall be determined in the manner set forth below in this Section 15.3. For a period of thirty (30) days
after the effective date of the Put Election Notice or the Call Election Notice (whichever is applicable, the “Put/Call
Election Notice”), Bluerock and ArchCo shall negotiate in good faith in an effort to agree upon the fair market value
of the Property (“FMV”). If Bluerock and ArchCo agree upon the FMV within such thirty (30) day period, then
the price so agreed upon shall be the FMV. If Bluerock and ArchCo do not so agree upon the FMV within such thirty (30) day period,
then Bluerock and ArchCo shall submit to each other a proposed FMV. If the two proposed FMVs that are submitted by Bluerock and
ArchCo are within ten percent (10%) of each other (using the lower number as the percentage base), then the FMV shall be the average
of the proposed FMVs of Bluerock and ArchCo. If the proposed FMVs of Bluerock and ArchCo are not within ten percent (10%) of each
other, then the FMV shall be determined as described below in Section 15.3(b).

 

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(b)          Determination
of FMV. If this Section 15 applies, the FMV shall be determined by one (1) or more qualified commercial real estate
brokers with at least five (5) years’ experience with the purchase and sale of real estate projects similar to the Property.
Bluerock and ArchCo shall negotiate in good faith in an effort to agree on one (1) broker within ten (10) days after the expiration
of the thirty (30) day period set forth above. In the event that the Members cannot agree on a broker within such ten (10) day
period, each Member shall appoint its own broker and the two brokers shall then decide on a third broker. If the two (2) selected
brokers fail to appoint a third (3rd) broker within ten (10) days following the expiration of the ten (10) day negotiation period,
either Bluerock or ArchCo may petition a court of competent jurisdiction to appoint a third (3rd) broker, in the same manner as
provided for the appointment of an arbitrator by the American Arbitration Association. If either Bluerock or ArchCo fails to suggest
such a broker, or appoint such a broker, as the case may be, within the time period specified, the broker duly appointed by the
other Member shall proceed to evaluate the proposed FMVs submitted by Bluerock and ArchCo (the “Evaluation”)
as herein set forth, and the determination of such broker shall be conclusive on all the Members. The broker or three (3) brokers,
as the case may be, shall promptly fix a time for the completion of the Evaluation, which shall not be later than thirty (30) days
from the effective date of appointment of the last broker. The broker(s) shall determine the FMV by evaluating both Members proposed
FMVs in light of the fair market value of the Property, such fair market value being the fairest price estimated in the terms of
money that the Company could obtain if the Property was sold in the open market allowing a reasonable time to find a purchaser
who purchases with knowledge of the business of the Property at the time of the delivery of the Put/Call Election Notice. The broker(s)
shall select the proposed FMV of the Member which each such broker deems most accurate in light of its analysis. In the event that
three (3) brokers are involved in the Evaluation, the decision of any two (2) brokers with respect to either Member’s proposed
FMV shall constitute selection of such FMV.

 

(c)          Determination
of Put/Call Purchase Price. The Members shall determine within fifteen (15) days after the determination of the FMV the amount
of cash that would be distributed to each Member pursuant to Section 6.3 if (i) the assets of the Company were sold for
their fair market value as of the effective date of the Put/Call Election Notice, (ii) the liabilities of the Company (excluding
any prepayment penalties or fees contained in any financing documents secured by the assets of the Company) are paid in full, and
(iii) any remaining amounts were distributed to the Members pursuant to Section 6.3. One hundred percent (100%) of the amount
which would be distributed to ArchCo pursuant to Section 6.3 shall be deemed the Put/Call Purchase Price.

 

(d)          Payment
of Costs. Bluerock shall pay for the services of the broker appointed by Bluerock, and ArchCo shall pay for the services of
the broker appointed by ArchCo. The cost of the services of the third (3rd) broker, if any, shall be paid by the Company as a closing
cost.

 

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15.4         Closing
Process. The Members shall fix a closing date (the “Put/Call Closing Date”) which shall be not later than
sixty (60) days after the determination of the Put/Call Purchase Price for ArchCo’s Interest in the Company in accordance
with Section 15.3. The closing shall take place on the Put/Call Closing Date at the principal office of Bluerock or through
escrow with a national title company. The purchase price for ArchCo’s Interest shall be paid in immediately available funds
and ArchCo shall convey good and marketable title to its Interest to Bluerock free and clear of all liens and encumbrances. Each
Member shall cooperate and take all actions and execute all documents reasonably necessary or appropriate to reflect the purchase
of ArchCo’s Interest by Bluerock. The Manager shall prepare (and the parties shall agree upon) a balance sheet for the Company
as of the date of determination of the Put/Call Closing Date showing all items of income and expense of the Company earned or accrued,
and such income and expenses shall be prorated between Bluerock and ArchCo as of the Put/Call Closing Date (based on ArchCo’s
Interest before the Put/Call Closing Date). All other costs shall be borne by the party who customarily bears such costs in real
estate transactions in the county where the Property is located. Any risk of casualty or loss before the Put/Call Closing Date
shall be borne by Bluerock, who shall succeed to ArchCo’s interest in all rights to insurance proceeds or condemnation awards.
Unless required by any applicable loan documents, in no event shall Bluerock be required to repay or to cause the Company to repay
any indebtedness of the Company at such closing except for the repayment of any loans made by ArchCo to the Company. Effective
as of the closing for the purchase of ArchCo’s Interest, ArchCo shall withdraw as a member of the Company. In connection
with any such withdrawal, Bluerock may cause any nominee designated by Bluerock to be admitted as a substituted Member of the Company.
ArchCo hereby constitutes and irrevocably appoints Bluerock as ArchCo’s true and lawful attorney-in-fact upon the occurrence
of a default by ArchCo under this Section 15 for the purpose of carrying out the provisions of this Section 15 and
taking any action and executing any document, instrument and/or agreement that Bluerock deems necessary or appropriate to accomplish
the purposes of this Section 15, including, without limitation, the transfer of ArchCo’s Interest in the Company to
Bluerock in accordance with this Section 15. This power-of-attorney shall be irrevocable as one coupled with an interest.
On or before the closing of a purchase and sale held pursuant to this Section 15, Bluerock shall provide written releases
to ArchCo and any Affiliate of ArchCo from all liabilities, if any, of the Company for which ArchCo and Affiliates of ArchCo may
have personal liability and from all guaranties of such liabilities of the Company previously executed by ArchCo and any Affiliates
of ArchCo.

 

15.5         Termination
of Related Party Contracts. Upon the closing of any purchase and sale pursuant to this Section 15, any agreement of
the Company, the Property Owner or any other Subsidiary to which ArchCo or an Affiliate of ArchCo is a party shall terminate at
the election of either Bluerock or ArchCo without the payment of any termination fee and/or penalty, if any, thereunder.

 

		Section 16.	Miscellaneous.

 

16.1         Notices

 

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

 

    	 	39	 

     

    

 

If to Bluerock:

 

BR Morehead JV Member, LLC

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

712 Fifth Avenue, 9th Floor

New York, New York 10019

Attention: R. Ramin Kamfar

Email: rkamfar@bluerockre.com

 

with a copy to:

 

BR Morehead JV Member, LLC

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

712 Fifth Avenue, 9th
Floor

New York, New York 10019

Attention: Michael Konig, Esq.

Email: mkonig@bluerockre.com

 

If to ArchCo:

WMH Sponsor LLC

c/o ArchCo Residential
LLC

6820 Cypress Point North, #29

Austin, Texas 78746

Attention: Neil
T. Brown & Dorrie Green

Email:neil@ntbrown.com@archcoresidential.com & dgreen@archcoresidential.com

 

with a copy to:

 

Polsinelli

1401 Lawrence Street, Suite 2300

Denver, Colorado 80202

Attention: Mike Shomo

Email: mshomo@polsinelli.com

 

If to Smith LLC:

TG-BR Partners, LLC

3350 Riverwood
Parkway, Suite 750

Atlanta, GA 30339

Attention: J. Bradford
Smith and Matt Prince

Email: bsmith@tpa-grp.com
and mprince@tpa-grp.com

 

    	 	40	 

     

    

 

with a copy to:

 

Holt Ney Zatcoff
& Wasserman, LLP

100 Galleria Parkway,
Suite 1800

Atlanta, GA 30339

Attention: Richard
P. Vornholt, Esq.

Email: rvornholt@hnzw.com

 

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

 

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

 

16.2         Governing
Law. This Agreement and the rights of the Members and the Manager 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 venue for any and all matters involving this Agreement
shall be established solely in such courts. Each of the parties hereto waives irrevocably the defense of inconvenient forum to
the maintenance of such action or proceeding.

 

16.3         Successors16.4.
This Agreement shall be binding upon, and inure to the benefit of, the parties and their successors and permitted assigns. Except
as otherwise provided herein, any Member who Transfers its Interest as permitted by the terms of this Agreement shall have no further
liability or obligation hereunder, except with respect to claims arising prior to such Transfer.

 

16.4         Pronouns.
Whenever from the context it appears appropriate, each term stated in either the singular or the plural shall include the singular
and the plural, and pronouns stated in either the masculine, the feminine or the neuter gender shall include the masculine, feminine
and neuter. Unless otherwise appropriate for the context, references in this Agreement to a “party” means a
Member (whether a signatory to this Agreement or a person admitted to the Company as a Member at a later time) or the Manager.

 

16.5         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.

 

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

 

    	 	41	 

     

    

 

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

 

16.8         Entire
Agreement and Amendment. This Agreement and the other written agreements described herein between the parties hereto entered
into as of the date hereof, constitute the entire agreement among the parties 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. No amendment or waiver by a party shall be enforceable against such party unless it is in writing and duly executed
by such party.

 

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

 

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

 

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

 

16.12         Limitation
on Liability. Except as set forth in Section 14, the Members or the Manager shall not be bound by, or be personally
liable for, by reason of being a Member or the Manager, 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 (including, in the case of Bluerock, in its
capacity as the Manager) shall be limited solely to the amount of its Capital Contributions as provided under Section 5.1.
Except as set forth in Section 14.3, any claim against any Member (including, in the case of Bluerock, in its capacity as
the Manager) (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)(ii)
hereof. Except as set forth in Section 14.3, 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 (including, in the case of Bluerock, in its capacity as the
Manager) arising under this Agreement or otherwise, is hereby irrevocably and unconditionally waived.

 

    	 	42	 

     

    

 

16.13         Remedies
Cumulative. The rights and remedies given in this Agreement and by law to a Member or the Manager 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
or the Manager under the provisions of this Agreement or given to a Member or the Manager by law. In the event of any dispute between
the parties hereto, the prevailing party shall be entitled to recover from the other party involved in the dispute the reasonable
attorney’s fees and costs incurred in connection therewith.

 

16.14         No
Waiver. One or more waivers of the breach of any provision of this Agreement by any Member or the Manager 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 or the Manager
to seek a remedy for any breach of this Agreement or to exercise the rights accruing to a Member or the Manager by reason of such
breach be deemed a waiver by a Member or the Manager of its remedies and rights with respect to such breach.

 

16.15         Limitation
On Use of Names. Notwithstanding anything contained in this Agreement or otherwise to the contrary, each of Member agrees that
neither it nor any of its Affiliates or their respective agents or representatives is granted a license to use or shall use the
name of another Member or any of its Affiliates under any circumstances whatsoever. Any change in the name of the Property must
be approved by Manager.

 

16.16         Publicly
Traded Partnership Provision. Each Member hereby severally covenants and agrees with the other Members and the Manager, for
the benefit of such Members and the Manager, 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 16.17 and to assign such Interest only to such Persons who agree to be similarly bound.

 

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

 

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

 

    	 	43	 

     

    

 

16.19         No
Construction Against Drafter. This Agreement has been negotiated and prepared by Bluerock, Smith LLC and ArchCo 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.

 

    	 	44	 

     

    

 

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

 

	 	BLUEROCK:
	 	 
	 	BR MOREHEAD JV MEMBER, LLC, a Delaware limited liability company

 

	 	By:	Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company, its Manager

 

	 	 	By:	BR SOIF II Manager, LLC,
	 	 	a Delaware limited liability company, its Manager

 

	 	By: 	/s/ Jordan Ruddy
	 	Name: Jordan Ruddy
	 	Title: Authorized Signatory

 

[Signature Page to Second Amended and Restated
Limited Liability Company Agreement of

BR ArchCo Morehead JV, LLC]

 

     

     

    

  

	 	ARCHCO:
	 	 
	 	WMH SPONSOR LLC, a Delaware limited liability company
	 	 
	 	By: 	/s/ Neil T. Brown
	 	Name: Neil T. Brown
	 	Title: Authorized Signatory

 

[Signature Page to Second Amended and Restated
Limited Liability Company Agreement of

BR ArchCo Morehead JV, LLC]

 

     

     

    

 

	 	SMITH LLC:
	 	 
	 	TG-BR PARTNERS, LLC, a Georgia limited liability company
	 	 
	 	By: 	/s/ J. Bradford Smith
	 	Name: J. Bradford Smith
	 	Title: Manager

 

[Signature Page to Second Amended and Restated
Limited Liability Company Agreement of

BR ArchCo Morehead JV, LLC]

 

     

     

    

 

Exhibit A

 

Capital Contribution Amounts

 

	Member Name	 	Unreturned Capital
 Contribution	 	 	Effective Date Cap-

ital Contribution	 	 	Total Effective
 Date Capital	 
	 	 	 	 	 	 	 	 	 	 
	Bluerock	 	$	6,074,755.63	 	 	$	11,463,300.37	 	 	$	17,538,056.00	 
	ArchCo	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 
	Smith LLC	 	$	0.00	 	 	$	417,500.00	 	 	$	417,500.00	 

 

     

     

    

 

Exhibit B

 

Examples of the application of Section
9.1(e)

 

Example 1.

 

Proposed Transaction:

 

Bluerock determines to admit a new member
to the Company who agrees to make Capital Contributions (which Bluerock would otherwise be permitted to make hereunder) subject
to receipt of a preferred 12% IRR and 10% of all Distributable Funds thereafter.

 

Application of Section 9.1(e):

 

The Proposed Transaction is permitted without
consent of ArchCo or Smith LLC. Sections 6.3(e)-(g) would be modified to provide for distributions to be made as follows:

 

(i)          First, to the Members, in equal
priority, the amounts necessary for (A) the new member to achieve its 12% IRR on its Unreturned Capital Contributions, (B) each
of the Members (other than the new member) to achieve a 15% IRR on the Unreturned Capital Contributions and the unpaid portion
of the Special Distribution due it and (C) the amount required to achieve a 15% IRR on the Unreturned Capital Contributions of
the new member (above the 12% IRR to the new member) to be divided 90% to Bluerock and 10% to new member;

 

(ii)           Second, to the Members, pari
passu, until each Member has received the Unreturned Capital Contributions and the unpaid portion of the Special Distribution due
it; and

 

(iii)           Third, 10% to new member,
73.1% to Bluerock, 12% to ArchCo and 4.9% to Smith LLC.

 

For the avoidance of doubt, and notwithstanding any
provisions herein to the contrary, any such modification will not adversely affect the priority or amount of distributions to
J. Bradford Smith or Bluerock REIT under Section 6.3.

 

Example 2.

 

Proposed Transaction:

 

Bluerock determines to admit a new member
who agrees to make a Capital Contribution (which Bluerock would otherwise be permitted to make hereunder) subject to receipt of
a senior preferred 18% IRR and no residual interest.

 

     

     

    

 

Application of Section 9.1(e):

 

The Proposed Transaction is prohibited without consent of ArchCo
and Smith LLC since it effectively results in a potential additional subordination of distributions to ArchCo and Smith LLC.

 

Example 3.

 

Proposed Transaction:

 

Same as example 1 but the transaction is
to be structured as a contribution of the Property to a new limited liability company (“NewCo”) in which the Company
and the new member are members.

 

Application of Section 9.1(e):

 

The Proposed Transaction is permitted without
consent of ArchCo and Smith LLC provided that (i) after giving effect to the distribution provision under the operating agreement
of NewCo and the terms of Section 6.3 of this Agreement, Distributable Funds (after distributions under Sections 6.3(a)-(d))
are distributable as provided in Example 1 above and (ii) after giving effect to any amendment hereof proposed by Bluerock to be
entered into in connection with such contribution, the operating agreement of NewCo has provisions which are reasonably adequate
for ArchCo and Smith LLC to directly or indirectly have substantially the same rights and remedies as are provided for herein.

 

     

     

    

 

Exhibit C

 

Officers of the Company

 

	Jordan Ruddy	President and Treasurer
	Michael Konig	Vice President and Secretary
	Neil Brown	Vice President
	Dorrie Green	Vice President

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