Document:

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

BR ENDERS MANAGING MEMBER, LLC

 

A DELAWARE LIMITED LIABILITY COMPANY

 

DATED AS OF OCTOBER 2, 2012

 

 

  

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	Section 1.	Definitions	1
	Section 2.	Organization of the Company	8
	 	 	 
	2.1	Name	8
	 	 	 
	2.2	Place of Registered Office; Registered Agent	9
	 	 	 
	2.3	Principal Office	9
	 	 	 
	2.4	Filings	9
	 	 	 
	2.5	Term	9
	 	 	 
	2.6	Expenses of the Company	9
	 	 	 
	Section 3.	Purpose	9
	Section 4	Conditions	9
	 	 	 
	4.1	SOIF III Conditions	9
	 	 	 
	4.2	BEMT Conditions	10
	 	 	 
	Section 5.	Capital Contributions, Loans, Percentage Interests and Capital Accounts	10
	 	 	 
	5.1	Initial Capital Contributions	10
	 	 	 
	5.2	Additional Capital Contributions	10
	 	 	 
	5.3	Percentage Ownership Interest	12
	 	 	 
	5.4	Return of Capital Contribution	12
	 	 	 
	5.5	No Interest on Capital	13
	 	 	 
	5.6	Capital Accounts	13

 

    	 

    	 

    

 

 

	5.7	New Members	13
	 	 	 
	Section 6.	Distributions	13
	 	 	 
	6.1	Distribution of Distributable Funds	14
	 	 	 
	Section 7.	Allocations	14
	 	 	 
	7.1	Allocation of Net Income and Net Losses Other than in Liquidation	14
	 	 	 
	7.2	Allocation of Net Income and Net Losses in Liquidation	14
	 	 	 
	7.3	U.S. Tax Allocations	15
	 	 	 
	Section 8.	Books, Records, Tax Matters and Bank Accounts	15
	 	 	 
	8.1	Books and Records	15
	 	 	 
	8.2	Reports and Financial Statements	15
	 	 	 
	8.3	Tax Matters Member	16
	 	 	 
	8.4	Bank Accounts	17
	 	 	 
	8.5	Tax Returns	17
	 	 	 
	8.6	Expenses	17
	 	 	 
	Section 9.	Management	17
	 	 	 
	9.1	Management	17
	 	 	 
	9.2	Affiliate Transactions	18
	 	 	 
	9.3	Other Activities	18
	 	 	 
	9.4	Operation in Accordance with REOC/REIT Requirements	18
	 	 	 
	9.5	FCPA	21

 

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	Section 10.	Confidentiality	21
	Section 11.	Representations and Warranties	22
	 	 	 
	11.1	In General	22
	 	 	 
	11.2	Representations and Warranties	22
	 	 	 
	Section 12.	Sale, Assignment, Transfer or other Disposition	25
	 	 	 
	12.1	Prohibited Transfers	25
	 	 	 
	12.2	Affiliate Transfers	25
	 	 	 
	12.3	Admission of Transferee; Partial Transfers	26
	 	 	 
	12.4	Withdrawals	27
	 	 	 
	Section 13.	Dissolution	28
	 	 	 
	13.1	Limitations	28
	 	 	 
	13.2	Exclusive Events Requiring Dissolution	28
	 	 	 
	13.3	Liquidation	28
	 	 	 
	13.4	Continuation of the Company	29
	 	 	 
	Section 14.	Indemnification	29
	 	 	 
	14.1	Exculpation of Members	29
	 	 	 
	14.2	Indemnification by Company	29
	 	 	 
	14.3	General Indemnification by the Members	30
	 	 	 
	Section 15.	Sale Rights	30
	 	 	 
	15.1	Push / Pull Rights	30
	 	 	 
	15.2	Forced Sale Rights	32

  

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	Section 16.	Mediation and Arbitration of Disputes	33
	 	 	 
	16.1	Events Giving Rise to Mediation or Arbitration	33
	 	 	 
	16.2	Selection of Arbitrators	34
	 	 	 
	16.3	Arbitration Hearing	34
	 	 	 
	16.4	Decision of the Arbitrators/Binding Effect	34
	 	 	 
	Section 17.	Miscellaneous	34
	 	 	 
	17.1	Notices	34
	 	 	 
	17.2	Governing Law	36
	 	 	 
	17.3	Successors	36
	 	 	 
	17.4	Pronouns	36
	 	 	 
	17.5	Table of Contents and Captions Not Part of Agreement	36
	 	 	 
	17.6	Severability	36
	 	 	 
	17.7	Counterparts	36
	 	 	 
	17.8	Entire Agreement and Amendment	36
	 	 	 
	17.9	Further Assurances	37
	 	 	 
	17.10	No Third Party Rights	37
	 	 	 
	17.11	Incorporation by Reference	37
	 	 	 
	17.12	Limitation on Liability	37

 

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	17.13	Remedies Cumulative	37
	 	 	 
	17.14	No Waiver	37
	 	 	 
	17.15	Limitation On Use of Names	37
	 	 	 
	17.16	Publicly Traded Partnership Provision	38
	 	 	 
	17.17	Uniform Commercial Code	38
	 	 	 
	17.18	Public Announcements	38
	 	 	 
	17.19	No Construction Against Drafter	38

 

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BR ENDERS MANAGING MEMBER, LLC

LIMITED LIABILITY COMPANY AGREEMENT

 

This Limited Liability
Company Agreement (this “Agreement”) is adopted, executed, and agreed to effective on October 2, 2012, by and
among Bluerock Special Opportunity + Income Fund III, LLC, a Delaware limited liability company (“SOIF III”),
and BEMT Enders, LLC, a Delaware limited liability company (“BEMT”), as Members (together, the “Members”),
and SOIF III and BEMT, as Managers (together, the “Managers”).

 

WITNESSETH:

 

WHEREAS, BR Enders Managing
Member, LLC, a Delaware limited liability company (the “Company”), was formed on August 17, 2012, pursuant to
the Act;

 

WHEREAS, the Members
desire to participate in the Company for the purposes described herein;

 

NOW, THEREFORE, in consideration
of the agreements and covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

 

Section
1.              Definitions.
As used in this Agreement:

 

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

 

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

 

“Advisor”
shall mean any accountant, attorney or other advisor retained by a Member.

 

    	 

    	 

    

 

“Affiliate”
shall mean 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, SOIF III and BEMT shall not be considered to be “Affiliates” of each other.

 

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

 

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

 

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

 

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

 

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

 

“Beneficial
Owner” shall have the meaning provided in Section 5.7.

 

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

 

“BEMT Transferee”
shall have the meaning set forth in Section 12.2(b)(i).

 

“BR REIT”
shall have the meaning provided in Section 12.2(b)(ii).

 

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

 

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

 

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

 

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

 

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

 

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

 

“Collateral
Agreement” shall mean any agreement, instrument, document or covenant concurrently or hereafter made or entered into
under, pursuant to, or in connection with this Agreement and any certifications made in connection therewith or amendment or amendments
made at any time or times heretofore or hereafter to any of the same.

 

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

 

“Company Interest”
shall mean all of the Company’s interest in Waypoint Bluerock Enders JV, including its limited liability company interest
and its managerial interest therein.

 

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

 

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

 

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

 

“Default Loan”
shall have the meaning provided in Section 5.2(b)(1).

 

“Default Loan
Rate” shall have the meaning provided in Section 5.2(b)(1).

 

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

 

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

 

“Dissolution
Event” shall have the meaning provided in Section 13.2.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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“Major Decision”
means any decision for the Company to take, or refrain from taking, any action or incurring any obligation with respect to the
following matters (or the effectuation of any such action or obligation), including in the Company’s capacity as a member
of the Waypoint Bluerock Enders JV with respect to making or refraining to make a decision on the following matters to the extent
the vote or approval of the Company is required:

 

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

 

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

 

		(iii)	except as provided in Section 13, any liquidation, dissolution or termination of the Company;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Management
Agreement” shall mean that certain property management agreement attached hereto as Exhibit C to be entered into
between Waypoint Enders Owner, LLC, a Delaware limited liability company (a Subsidiary of Waypoint Bluerock Enders JV), as owner,
and Property Manager, as manager, pursuant to which Property Manager will provide certain management services for the Properties.

 

“Management
Committee” shall mean the management committee of Waypoint Bluerock Enders JV as provided in Section 3.1(C) of the Waypoint
Bluerock Enders JV Operating Agreement.

 

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

 

“Member in Question”
shall have the meaning provided in Section 17.12.

 

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

 

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

 

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

 

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“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 provided in Section 17.17.

 

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

 

“Nonrecourse
Deduction” shall have the meaning given such term in Regulations Section 1.704-2(b)(1).

 

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

 

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

 

“Offeree” shall
have the meaning provided in Section 15.1(b).

 

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

 

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

 

“Percentage
Interest” shall have the meaning provided in Section 5.3.

 

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

 

“Property”
shall have the meaning provided in the Waypoint Bluerock Enders JV Operating Agreement.

 

“Property Manager”
shall mean Bridge Real Estate Group, LLC, so long as the Management Agreement is in full force and effect and thereafter, the entity
performing similar services with respect to the Property.

 

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

 

“Pursuer”
shall have the meaning provided in Section 10(c).

 

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

 

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

 

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

 

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

 

“Representatives”
shall mean the representatives of the Management Committee.

 

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

 

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

 

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

 

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

 

“SOIF III Transferee”
shall have the meaning set forth in Section 12.2(b)(ii).

 

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

 

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

 

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

 

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

 

“Valuation Amount”
shall have the meaning provided in Section 15.1(b).

 

“Waypoint Bluerock
Enders JV” shall mean Waypoint Bluerock Enders JV, LLC, a Delaware limited liability company.

 

“Waypoint Bluerock
Enders JV Operating Agreement” shall mean the Limited Liability Company Agreement of Waypoint Bluerock Enders JV, as
amended from time to time.

 

Section
2.              Organization of the Company.

 

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

 

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2.2           Place
of Registered Office; Registered Agent. The address of the registered office of the Company in the State of Delaware is 2711
Centerville Road, Wilmington, Delaware 19808. The name and address of the registered agent for service of process on the Company
in the State of Delaware is Corporation Service Company, 2711 Centerville Road, Wilmington, Delaware 19808. The Managers may at
any time on five (5) days prior notice to all Members change the location of the Company’s registered office or change the
registered agent.

 

2.3           Principal
Office. The principal address of the Company shall be c/o Bluerock Real Estate, L.L.C., Heron Tower, 70 East 55th
Street, 9th Floor, New York, New York 10022, or, in each case, at such other place or places as may be determined by
the Managers from time to time.

 

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

 

2.5           Term.
The Company shall continue in existence from the date hereof until September 30, 2062, unless extended by the Members, or until
the Company is dissolved as provided in Section 13, whichever shall occur earlier.

 

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

 

Section
3.              Purpose.

 

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

 

Section
4.              Conditions.

 

4.1           SOIF
III Conditions. The obligation of SOIF III to consummate the transactions contemplated herein and to make the initial Capital
Contributions under Section 5.1 is subject to fulfillment of all of the following conditions on or prior to the date hereof:

 

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(a)          BEMT
shall deposit in the Company’s bank account or the designated escrow account of a mutually agreeable title company (“Title
Company”) the amount of its initial Capital Contribution set forth on Exhibit A hereto; and

 

(b)          All
of the representations and warranties of BEMT contained in this Agreement shall be true and correct as of the date hereof.

 

4.2           BEMT
Conditions. The obligation of BEMT to consummate the transactions contemplated herein and to make the initial Capital Contributions
under Section 5.1 is subject to fulfillment of all of the following conditions on or prior to the date hereof:

 

(a)          SOIF
III shall deposit into the Company’s bank account or Title Company’s designated escrow account the amount of its initial
Capital Contribution set forth on Exhibit A hereto; and

 

(b)          All
of the representations and warranties of SOIF III contained in this Agreement shall be true and correct as of the date hereof.

 

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

 

5.1           Initial
Capital Contributions. Subject to the conditions set forth in Section 4, upon execution of this Agreement, SOIF III
and BEMT shall each make an initial Capital Contribution to the Company of cash in the amounts set forth in Exhibit A attached
hereto. The initial Capital Contribution of the Members to the Company may include amounts for working capital and reserves. 

 

5.2           Additional
Capital Contributions.

 

(a)          Additional
Capital Contributions may be called for from the Members by the Managers from time to time as and to the extent capital is necessary
to effect an investment. Except as otherwise agreed by the Members, such additional Capital Contributions shall be in an amount
for each Member equal to the product of the amount of the aggregate Capital Contribution called for multiplied by five (5%) percent
in the case of SOIF III and ninety-five (95%) percent in the case of BEMT. Such additional Capital Contributions shall be payable
by the Members to the Company upon the earlier of (i) twenty (20) days after written request from the Company, or (ii) the date
when the Capital Contribution is required, as set forth in a written request from the Company.

 

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

 

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

 

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

 

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

 

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

 

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

 

5.3           Percentage
Ownership Interest. The Members shall have the initial percentage ownership interests (as the same are adjusted as provided
in this Agreement, a “Percentage Interest”) in the Company set forth on Exhibit A immediately following
the Capital Contributions provided for in Section 5.1. The Percentage Interests of the Members in the Company shall be adjusted
monthly so that the respective Percentage Interests of the Members at any time shall be in proportion to their respective cumulative
Total Investment made (or deemed to be made) pursuant to Sections 5.1 and 5.2, as the same may be further adjusted
pursuant to Section 5.2(b)(3). Percentage Interests shall not be adjusted by distributions made (or deemed made) to a Member.

 

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

 

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

 

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

 

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

 

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Section
6.              Distributions.

 

6.1           Distribution
of Distributable Funds

 

(a)          The
Managers shall calculate and determine the amount of Distributable Funds for each applicable period. Except as provided in Sections
5.2(b), 6.1(b) or 13.3 or otherwise provided hereunder, Distributable Funds, if any, shall be distributed to the Members,
in proportion to their Percentage Interests, on the 15th day of each month or from time to time as determined by the
Managers.

 

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

 

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

 

Section
7.              Allocations.

 

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

 

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

 

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7.3           U.S.
Tax Allocations.

 

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

 

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

 

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

 

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

 

8.1           Books
and Records. The books and records of account of the Company shall be maintained in accordance with industry standards and
shall be based on the Property Manager Reports. The books and records shall be maintained at the Company’s principal office
or at a location designated by the Managers, and all such books and records (and the dealings and other affairs of the Company
and its Subsidiaries, including Waypoint Bluerock Enders JV) shall be available to any Member at such location for review, investigation,
audit and copying, at such Member’s sole cost and expense, during normal business hours on at least twenty-four (24) hours
prior notice.

 

8.2           Reports
and Financial Statements.

 

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

 

(i)          An
unaudited balance sheet of the Company;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8.5           Tax
Returns. The Managers shall cause to be prepared all income and other tax returns of the Company and the Subsidiaries required
by applicable law. No later than the due date or extended due date thereof, the Managers shall deliver or cause to be delivered
to each Member a copy of the tax returns for the Company and such Subsidiaries with respect to such Fiscal Year, together with
such information with respect to the Company and such Subsidiaries as shall be necessary for the preparation by such Member of
its U.S. federal and state income or other tax and information returns.

 

8.6           Expenses.
Notwithstanding any contrary provision of this Agreement, the Members acknowledge and agree that the reasonable expenses and charges
incurred directly or indirectly by or on behalf of the Managers in connection with its obligations under this Section 8
will be reimbursed by the Company to the Managers.

 

Section
9.              Management.

 

9.1           Management.

 

(a)          The
Company shall be managed by BEMT (the “Manager”). Any use of the term “Managers” in this Agreement shall
refer only to BEMT. To the extent that BEMT or a BEMT Transferee Transfers all or a portion of its Interest in accordance with
Section 12 to a BEMT Transferee, such BEMT Transferee may be appointed as an additional Manager under this Section 9.1(a) by BEMT
or a BEMT Transferee then holding all or a portion of an Interest without any further action or authorization by any Member. The
Manager may not be removed by the Members other than for an act or omission related to the Company constituting gross negligence
or fraud.

 

(b)          The
Manager shall have the authority to exercise all of the powers and privileges granted by the Act, any other law or this Agreement,
together with any powers incidental thereto, and to take any other action not prohibited under the Act or other applicable law,
so far as such powers or actions are necessary or convenient or related to the conduct, promotion or attainment of the business,
purposes or activities of the Company, except that any Major Decision or other matter submitted by the Manager to the Members shall
require the express and unanimous approval of the Members; provided, and notwithstanding any provision herein to the contrary,
that any decision to be made by the Company or its Representatives on the Management Committee of the Waypoint Bluerock Enders
JV pursuant to clauses (i), (ii) and (vii) of Schedule B to the Waypoint Bluerock Enders JV Operating Agreement, shall only
require the approval of and be subject to the direction of BEMT and not any other Member of the Company; provided, further,
that only BEMT, and not any other Member of the Company, shall have the power and authority to exercise the powers and privileges
of the Company as manager of the Waypoint Bluerock Enders JV. Without limiting the foregoing, only BEMT, and not any other Member,
shall have the power and authority to approve and act in respect to, and to direct the Company’s Representatives on the Management
Committee as to: (1) the calculation and determination of the amount of and distribution of Distributable Funds under Section
5.2(a) of the Waypoint Bluerock Enders JV Operating Agreement and (2) the approval and actions in respect of, the annual operating
budget under Schedule B(ii) of the Waypoint Bluerock Enders JV Operating Agreement on behalf of the Company and the Company’s
Representatives on the Management Committee of the Waypoint Bluerock Enders JV.

 

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

 

9.2           Affiliate
Transactions. No agreement shall be entered into by the Company or any Subsidiary with a Member or any Affiliate of a Member
and no decision shall be made in respect of any such agreement (including, without limitation, the enforcement or termination thereof)
unless such agreement or related decision shall have been approved unanimously in writing by the Managers.

 

9.3          Other
Activities.

 

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

(b)          Limitation
on Actions of Members; Binding Authority. No Member shall take any action on behalf of, or in the name of, the Company, or
enter into any contract, agreement, commitment or obligation binding upon the Company, or, in its capacity as a Member or Manager
of the Company, perform any act in any way relating to the Company or the Company’s assets, except in a manner and to the
extent consistent with the provisions of this Agreement.

 

9.4           Operation
in Accordance with REOC/REIT Requirements.

 

(a)          The
Members acknowledge that SOIF III or one or more of its Affiliates (an “BR Affiliate”) intends to qualify as a “real
estate operating company” or “venture capital operating company” within the meaning of U.S. Department of Labor
Regulation 29 C.F.R. §2510.3-101 (a “REOC”), and agree that the Company and its Subsidiaries shall be operated
in a manner that will enable SOIF III and such SOIF III Affiliate to so qualify. Notwithstanding anything herein to the contrary,
the Company and its Subsidiaries shall not take, or refrain from taking, any action that would result in SOIF III or a SOIF III
Affiliate from failing to qualify as a REOC. BEMT (a) shall not fund any Capital Contribution "with the 'plan assets' of any
'employee benefit plan' within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
or any 'plan' as defined by Section 4975 of the Internal Revenue Code of 1986, as amended", and (b) shall comply with any
requirements specified by SOIF III in order to ensure compliance with this Section 9.4.

 

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(b)          Notwithstanding
anything in this Agreement to the contrary, unless specifically agreed to by the Managers in writing, neither the Company nor its
Subsidiaries shall hold any investment, incur any indebtedness or otherwise take any action that would cause any Member of the
Company (or any Person holding an indirect interest in the Company through an entity or series of entities treated as partnerships
for U.S. federal income tax purposes) to realize any “unrelated business taxable income” as such term is defined in
Code Sections 511 through 514.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(ix)         Failing
to make current cash distributions to REIT Member each year in an amount which does not at least equal the taxable income allocable
to REIT Member for such year.

 

Notwithstanding
the foregoing provisions of this Section 9.4(c), the Company may enter into a REIT Prohibited Transaction if it receives
the prior written approval of the REIT Member specifically acknowledging that the REIT Member is approving a REIT Prohibited Transaction
pursuant to this Section 9.4(c). For purposes of this Section 9.4(c), “REIT Prohibited Transactions”
shall mean any of the actions specifically set forth in this Section 9.4(c).

 

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9.5           FCPA.

 

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

 

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

 

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

 

Section
10.            Confidentiality.

 

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

 

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

 

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

 

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

 

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

 

(b)          The
Members and their Affiliates shall each act to safeguard the secrecy and confidentiality of, and any proprietary rights to, any
non-public information relating to the Company and its business, except to the extent such information is required to be disclosed
by law or reasonably necessary to be disclosed in order to carry out the business of the Company. Each Member may, from time to
time, provide the other Members written notice of its non-public information which is subject to this Section 10(b).

 

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

 

Section
11.           Representations
and Warranties.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		(h)	Securities Matters.

 

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

 

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

 

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

 

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

 

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

 

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

 

		(vii)	Such Member is knowledgeable about investment considerations and has a sufficient net worth to
sustain a loss of such Member’s entire investment in the Company in the event such a loss should occur. Such Member’s
overall commitment to investments which are not readily marketable is not excessive in view of such Member’s net worth and
financial circumstances and the purchase of the Interests will not cause such commitment to become excessive. The investment in
the Interests is suitable for such Member.

 

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

 

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

 

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

 

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12.2         Affiliate
Transfers.

 

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

 

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

 

(i)          Any
Transfer by SOIF III or a SOIF III Transferee of up to one hundred percent (100%) of its Interest to any Affiliate of SOIF III,
including but not limited to (A) Bluerock Enhanced Multifamily Trust, Inc. (“BR REIT”) or any Person that is
directly or indirectly owned by BR REIT; and/or (B) Bluerock Special Opportunity + Income Fund III, LLC (“BR SOIF III”)
or any Person that is directly or indirectly owned by BR SOIF III (collectively, a “SOIF III Transferee”);

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

The Managers 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.

 

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

 

Section
13.           Dissolution.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(a)          The
Managers 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 Managers as promptly
as possible, but in an orderly, businesslike and commercially reasonable manner.

 

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

 

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

 

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

 

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

 

		(iii)	the balance, if any, to the Members in accordance with Sections 6.1.

 

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

 

Section
14.            Indemnification.

 

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

 

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

 

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14.3         General
Indemnification by the Members.

 

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

 

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

 

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

 

Section
15.            Sale Rights

 

15.1         Push
/ Pull Rights.

 

(a)          Availability
of Rights. At any time (i) after the third anniversary of this Agreement or (ii) that the Members are unable to agree on a
Major Decision and such failure to agree has continued for fifteen (15) days after written notice from one Member to the other
Member indicating an intention to exercise rights under this Section 15.1, either Member may exercise its right to initiate
the provisions of this Section 15.1.

 

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

 

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

 

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

 

    	31

    	 

    

 

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

 

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

 

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

 

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

 

15.2         Forced
Sale Rights.

 

(a)          Offers.
If, at any time following the third anniversary of the date that the Property is acquired by a Subsidiary, (i) either Member desires
to offer the Company Interest for sale on specified terms, or (ii) receives from an unaffiliated purchaser a bona fide
written cash offer (i.e., not seller financed) for the purchase of such Company Interest on terms that such Member desires for
the Company to accept (such specified terms or bona fide offer being herein called the “Offer”),
then the Member desiring to make or accept the Offer (the “Initiating Member”) shall provide written notice
of the terms of such Offer (the “Sale Notice”) to the other Member (the “Non-Initiating Member”).

 

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

 

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

 

    	32

    	 

    

 

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

 

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

 

Section
16.           Mediation and Arbitration of Disputes.

 

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

 

    	33

    	 

    

 

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

 

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

 

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

 

Section
17.            Miscellaneous.

 

17.1         Notices.

 

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

 

    	34

    	 

    

 

If to SOIF III:

 

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

Heron Tower

70 East 55th Street, 9th
Floor

New York, New York 10022

Attn: R.
Ramin Kamfar

 

With a copy to:

 

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

Heron Tower

70 East 55th Street,
9th Floor

New York, New York 10022

Attn: Michael L. Konig, Esq.

 

If to BEMT:

 

Bluerock Enhanced Multifamily
Advisor, LLC

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

Heron Tower

70 East 55th Street,
9th Floor

New York, New York 10022

Attention: James G. Babb, III

 

with a copy to:

 

Kaplan, Voekler, Cunningham &
Frank, PLC

7 East 2nd Street

Richmond, Virginia 23218

Attention: Richard P. Cunningham,
Esq.

 

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

 

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

 

    	35

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

17.8         Entire
Agreement and Amendment. This Agreement and the other written agreements described herein between the parties hereto entered
into as of the date hereof, constitute the entire agreement between the Members relating to the subject matter hereof. In the event
of any conflict between this Agreement or such other written agreements, the terms and provisions of this Agreement shall govern
and control.

 

    	36

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

17.15         Limitation
On Use of Names. Notwithstanding anything contained in this Agreement or otherwise to the contrary, each of SOIF III and BEMT
as to itself agree that neither it nor any of its Affiliates, agents, or representatives is granted a license to use or shall use
the name of the other under any circumstances whatsoever, except such name may be used in furtherance of the business of the Company
but only as and to the extent unanimously approved by the Managers.

 

    	37

    	 

    

 

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

 

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

 

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

 

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

 

    	38

    	 

    

 

IN WITNESS WHEREOF,
the Members have executed this Limited Liability Company Agreement as of the date set forth above.

 

	 	MEMBERS:
	 	 
	 	Bluerock Special Opportunity + Income Fund III, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: BR SOIF III Manager, LLC
	 	a Delaware limited liability
	 	Its: Manager

 

	 	By:	/s/ Jordan B. Ruddy
	 	Name:  Jordan B. Ruddy
	 	Its:  President

 

	 	BEMT Enders, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: Bluerock Enhanced Multifamily Holdings, L.P.,
	 	a Delaware limited partnership
	 	Its: Sole Member
	 	 
	 	By: Bluerock Enhanced Multifamily Trust, Inc.,
	 	a Maryland corporation
	 	Its: General Partner

 

	 	By:	/s/ Jordan B. Ruddy
	 	Name: Jordan B. Ruddy
	 	Its:  President and Chief Operating Officer

 

[Signature Page to Limited Liability Company
Agreement of BR Enders Managing Member, LLC]

 

    	39

    	 

    

 

EXHIBIT A

 

Initial Capital Contributions and Percentage
Interests

 

	Member Name	 	Initial Capital
 Contribution	 	 	Percentage
 Interest	 
	 	 	 	 	 	 	 
	Bluerock Special Opportunity + Income Fund III, LLC	 	$	258,762	 	 	 	5	%
	 	 	 	 	 	 	 	 	 
	BEMT Enders, LLC	 	$	4,716,846	 	 	 	95	%WAYPOINT BLUEROCK ENDERS JV, LLC

 

LIMITED LIABILITY COMPANY AGREEMENT

 

This LIMITED LIABILITY
COMPANY AGREEMENT (this “Agreement”) of WAYPOINT BLUEROCK ENDERS JV, LLC (the “Company”),
effective as of October 2, 2012, is made by and between BR ENDERS MANAGING MEMBER JV, LLC, a Delaware limited liability company
( “Managing Member”) and WAYPOINT ENDERS GP, LLC a Delaware limited liability company (the “Non-Managing
Member”, and collectively with the Managing Member, the “Members”).

 

Effective as of October
2, 2012, the Members, by execution of this Agreement, hereby form the Company as a limited liability company pursuant to and in
accordance with the Delaware Limited Liability Company Act (6 Del. C. §18-101 et seq.), as amended from time to time (the
“Act”), and this Agreement; and the Members hereby agree as follows:

 

ARTICLE I

Organization

 

Section 1.1.          Name.
The name of the limited liability company continued hereby is WAYPOINT BLUEROCK ENDERS JV, LLC.

 

Section 1.2.          Members.
The name and mailing addresses of the Members are as follows:

  

	 	Name	Address
	 	 	 
	 	BR Enders Managing	c/o Bluerock Real Estate, LLC
	 	Member, LLC	70 East 55th Street, Suite 9
	 	 	New York, New York 10022
	 	 	 
	 	Waypoint Enders GP,	c/o Waypoint Residential LLC
	 	LLC	Three Pickwick Plaza, 4th Floor
	 	 	Greenwich, Connecticut 06830

 

Section 1.3.          Certificate
of Formation; Other Certificates. The Managing Member, as an authorized person within the meaning of the Act, may execute,
deliver and file, or cause the execution, delivery and filing of, any amendments to and/or restatements of the Certificate and
any other certificates (and any amendments thereto and/or restatements thereof) necessary for the Company to qualify to do business
in a jurisdiction in which the Company may wish to conduct business.

 

Section 1.4.          Purpose.
The Company's business and purpose (the “Purpose”) shall consist solely of the following:

 

    	 

    	 

    

 

		(a)	To acquire, own, transfer, encumber and dispose of membership interests in Waypoint Enders Owner,
LLC, a Delaware limited liability company (the “Owner”);

 

		(b)	Either directly or through entities in which the Company owns a majority of the equity interests,
including without limitation the Owner, acquire, own, lease, sell, demise, transfer, finance, refinance, operate and/or manage
198 units (the "Property") of that certain 220 unit condominium project commonly known as Enders Place located
at 4248 New Broad Street, Orlando, Florida 32814 (the “Project”), and to acquire,
own, lease, sell, demise, transfer, finance, refinance, operate and/or manage additional condominium units at the Project, pursuant
to and in accordance with the Certificate and this Agreement; and

 

		(c)	to engage in such other lawful activities permitted to limited liability companies by the applicable
laws and statutes for such entities of the State of Delaware as are incidental, necessary or appropriate to the foregoing.

 

Capitalized terms used
but not defined in Article VIII shall have the meanings ascribed to them in the Loan Agreement (as defined herein).

 

Section 1.5.          Powers.
The Company shall have the power to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or
convenient for the furtherance and accomplishment of the Purpose, and for the protection and benefit of its business.

 

Section 1.6.          Registered
Agent and Office. The Company’s initial registered agent and office shall be Corporation Services Company, located at
2711 Centerville Road, Suite 400, in the City of Wilmington, Delaware 19808. The principal business office of the Company shall
be located at such location as may hereafter be determined by the Managing Member. The Managing Member may change such registered
office, registered agent or principle place of business from time to time. The Company may from time to time have such other place
or places of business within or outside the State of Delaware.

 

Section 1.7.          Fiscal
Year. The fiscal year of the Company shall end on December 31 of each calendar year unless the Members otherwise decide for
United States federal income tax purposes and for accounting purposes.

 

ARTICLE II

Capital Contributions

 

Section 2.1.          Capital
Contributions. The Members have made initial capital contributions on a pro rata basis in proportion to their respective percentage
interest in the Company (“Sharing Percentages”), as such Sharing Percentages and initial capital contributions
are set forth on Schedule A attached hereto. Any contribution of capital to the Company will be made on a pro rata basis
by the Members if, as, and when called by the Members as provided for in Section 2.3 below. If any Member makes a capital contribution
to the Company in respect of funds used by the Company to make a Default Loan (as defined under the Owner JV Agreement) to Waypoint
LP (as defined below) pursuant to Section 2.4 of the Owner JV Agreement, then such Capital Contribution shall be deemed a “Special
Capital Contribution” solely for purposes of (i) the payment of the Special Preferred Return (as defined below) and
(ii) the return of such Special Capital Contribution, both pursuant to Section 2.1

 

    	- 2 -

    	 

    

 

Section 2.2.          No
Return of Capital Contribution. Except as approved by each of the Members, no Member shall have any right to withdraw or make
a demand for withdrawal of the balance reflected in such Member’s Capital Account (as defined on Exhibit C) until
the full and complete winding up and liquidation of the business of the Company.

 

Section 2.3           No
Interest. The Members shall not be entitled to interest on their capital contributions, and any interest actually received
by reason of investment of any part of the Company’s funds shall be included in the Company’s property.

 

Section 2.4.          Member
Loans.

 

(A)         Subject
to the limitations set forth under “Major Decisions” described in Schedule B of this Agreement, additional capital
contributions (“Additional Capital Contributions”) may be called for from the Members (each such capital call
an “Additional Capital Call”), by the Members if the same is a Protective Capital Call (as defined below in
Section 2.3(C)), or as otherwise agreed to by the Members, by written notice to the Members from time to time as and to the extent
capital is necessary to effect expenditures relating to the Property or the Company that are Protective Capital Calls; provided,
that if any determination to make a Protective Capital Call is made, then the Company shall first call for additional capital contributions
at the Owner level pursuant to Section 2.4 of that certain Amended and Restated Limited Liability Company Agreement of Owner (the
“Owner JV Agreement”).  Except as otherwise agreed by the Members, such Additional Capital Contributions
to be funded by each Member shall be in an amount equal to the amount of the aggregate Additional Capital Call in proportion to
each Member’s Sharing Percentage. Such Additional Capital Contributions shall be payable by the Members to the Company upon
the earlier of (i) thirty (30) days after written request, or (ii) the date when the Additional Capital Contribution is reasonably
required if same is a Protective Capital Call, as set forth in a written request.

 

(B)         If
a Member (a “Defaulting Member”) fails to make its
Additional Capital Contribution that is required within the time frame required therein (the amount of its failed contribution
and related loan shall be the “Default Amount”), the other Member shall have the following remedy as its sole
remedy (each, a “Protective Advance”):

 

    	- 3 -

    	 

    

 

(i)          to
advance to the Company on behalf of, and as a loan to the Defaulting Member, an amount equal to the Default Amount to be evidenced
by a promissory note in form reasonably satisfactory to the non-failing Member (each such loan, a “Default Loan”).
The Capital Account of the Defaulting Member shall be credited with the amount of such Default Amount attributable to a Capital
Contribution and the aggregate of such amounts shall constitute a debt owed by the Defaulting Member to the non-failing Member.
Any Default Loan shall bear interest at the rate of eighteen (18%) percent per annum, but in no event in excess of the highest
rate permitted by applicable laws (the “Default Loan Rate”), and shall be payable by the Defaulting Member on
a priority basis from all distributions otherwise due to the Defaulting Member under Section 5.1(B). Interest on a Default Loan
to the extent unpaid, shall accrue and compound on a quarterly basis. A Default Loan shall be prepayable, in whole or in part,
at any time or from time to time without penalty. Any such Default Loans shall be with full recourse to the Defaulting Member and
shall be secured by the Defaulting Member’s interest in the Company including, without limitation, such Defaulting Member’s
right to distributions but shall only be payable from distributions. In furtherance thereof, upon the making of such Default Loan,
the Defaulting Member hereby pledges, assigns and grants a security interest in its membership interest in the Company to the non-failing
Member and agrees to promptly execute such documents and statements reasonably requested by the non-failing Member to further evidence
and secure such security interest. Any advance by the non-failing Member on behalf of a Defaulting Member pursuant to this Section
2.4(B)(i) shall be deemed to be a Capital Contribution made by the Defaulting Member except as otherwise expressly provided
herein. All distributions to the Defaulting Member under Section 5.1(B) hereunder shall be applied first to payment of any interest
due under any Default Loan and then to principal until all amounts due thereunder are paid in full. While any Default Loan is outstanding,
the Company shall be obligated to pay directly to the non-failing Member, for application to and until all Default Loans have been
paid in full, the amount of (x) any distributions payable to the Defaulting Member under Section 5.1(B), and (y) any proceeds of
the sale of the Defaulting Member’s membership interest in the Company.

 

No
payments or distributions under Section 5.1(B) shall be made to
the Defaulting Member until the other Member’s Protective Advances have been paid, with applicable interest thereon.

 

(C)         For
purposes of the foregoing, “Protective Capital Call” shall mean an Additional Capital Call reasonably necessary
(a) for the timely payment of real estate taxes or insurance premiums or condominium, owner or similar association fees, dues or
assessments due under the condominium, or to effectuate emergency repairs to the Property; (b) to prevent a default with respect
to any financing obtained by the Company (e.g., payment of debt service following an operating shortfall, reserves required by
the lender, a reduction in principal required by the lender to meet loan to value requirements); or (c) to provide funds required
to refinance the Property when the current financing has matured or will mature in the near future (e.g., commitment fees, loan
application fees, equity infusions to meet market loan to value requirements, etc.).

 

(D)         Notwithstanding
the foregoing provisions of this Section 2.4, no Additional Capital Contributions shall be required from any Member if (i)
the Company or any other Person shall be in default (or with notice or the passage of time or both, would be in default) in any
material respect under any loan, indenture, mortgage, lease, agreement or instrument to which the Company is a party or by which
the Company or any of its properties or assets is or may be bound, (ii) any other Member, the Company shall be insolvent or bankrupt
or in the process of liquidation, termination or dissolution, (iii) any other Member or the Company shall be subjected to any pending
litigation (x) in which the amount in controversy exceeds $500,000, (y) which litigation is not being defended by an insurance
company who would be responsible for the payment of any judgment in such litigation, and (z) which litigation if adversely determined
would have a material adverse effect on such other Member and/or the Company and/or would substantially interfere with their ability
to perform their material obligations hereunder or under any agreement, instrument, document or covenant concurrently or hereafter
made or entered into under, pursuant to, or in connection with this Agreement and any certifications made in connection therewith
or amendment or amendments made at any time or times heretofore or hereafter to any of the same (including, without limitation,
the Asset Management Agreement and Property Management Agreement) (each a “Collateral Agreement”), (iv) there
has been a material adverse change in (including, but not limited to, the financial condition of) any other Member (and/or its
Affiliates) which, in Member’s reasonable judgment, prevents such other Member (and/or its Affiliates from performing, or
substantially interferes with their ability to perform, their material obligations hereunder or under any Collateral Agreement.
If any of the foregoing events shall have occurred and any Member elects not to make a Capital Contribution on account thereof,
then any other Member which has made its pro rata share of such Capital Contribution shall be entitled to a return of such Capital
Contribution from the Company.

 

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ARTICLE III

Rights and Obligations of the Members

 

Section 3.1.          Management.

 

(A)         Except
as otherwise expressly provided for herein, in accordance with Section 18-402 of the Act, the management, control, and direction
of the Company and its operations, business, and affairs shall be vested exclusively in the Managing Member, who shall have the
right, power, and authority, acting solely by itself and without the necessity of approval by any other person, to carry out any
and all of the purposes of the Company and to perform or refrain from performing any and all acts that the Managing Member may
deem necessary, appropriate, desirable, or incidental thereto.

 

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

 

(C)         The
Members shall establish a management committee (the “Management Committee”) for the Company the purpose of considering
and approving actions that constitute Major Decisions (as defined on Schedule B attached hereto). The Management Committee
shall consist of four (4) individuals appointed to act as “representatives” of the Member that appointed him or her
(the “Representatives”) as follows: (i) Managing Member shall be entitled to designate two (2) Representatives
to represent the Managing Member; and (ii) the Non-Managing Member shall be entitled to designate two (2) Representatives to represent
the Non-Managing Member. The initial members of the Management Committee are set forth on Exhibit A. The Representatives
shall be the same four individuals as constitute the management committee of the Managing Member.

 

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(D)         Each
member of the Management Committee, subject to Section 3.1(D) shall hold office until death, resignation or removal at the
pleasure of the Member that appointed him or her. If a vacancy occurs on the Management Committee, the Member with the right to
appoint and remove such vacating Representative shall appoint his/her or her successor. A Member shall lose its right to have representatives
on the Management Committee, and its representatives on the Management Committee shall be deemed to be automatically removed, as
of the date on which such Member ceases to be a Member or as otherwise provided in this Agreement. If the Managing Member transfers
all or a portion of its membership interest to a transferee permitted by Section 7.3, such transferee shall automatically,
and without any further action or authorization by any Member, succeed to the rights and powers of the Managing Member under this
Article III as may be agreed to between the Managing Member which is transferring the membership interest, on the hand,
and the permitted transferee to which the membership interest is being transferred, on the other hand, including the shared or
unilateral right to appoint the Representatives that the Managing Member was theretofore entitled to appoint pursuant to Section
3.1(C). If the Non-Managing Member transfers all or a portion of its membership interest to a transferee permitted pursuant
to Section 7.3, such permitted transferee shall automatically, and without any further action or authorization by any Member,
succeed to the rights and powers of the Non-Managing Member under this Article III as may be agreed to between the Non-Managing
Member which is transferring the membership interest, on the hand, and the permitted transferee to which the membership interest
is being transferred, on the other hand, including the shared or unilateral right to appoint the Representatives that the Non-Managing
Member was theretofore entitled to appoint pursuant to Section 3.1(C).

 

(E)         The
Management Committee shall meet once every quarter (unless waived by mutual agreement of the Members). The only Representatives
required to constitute a quorum for a meeting of the Management Committee's shall be one (1) Representative appointed by Managing
Member and one (1) Representative appointed by Non-Managing Member; provided, however, that if Non-Managing Member or
Managing Member has not appointed at least one (1) Representative to the Management Committee at the time of such meeting
or a Representative of Non-Managing Member or Managing Member as applicable
does not appear after two (2) due notices of such meeting, then a quorum for a meeting of the Management Committee shall
be one (1) Representative appointed by Managing Member or Non-Managing
Member, as applicable.

 

(F)         Each
of the two (2) Representatives appointed by Managing Member shall be entitled to cast two (2) votes on any matter that comes before
the Management Committee and each of the Representatives appointed by Non-Managing Member shall be entitled to cast one (1) vote
on any matter that comes before the Management Committee. Approval by the Management Committee of any matter shall require the
affirmative vote of at least a majority of the votes of the Representatives then in office voting at a duly held meeting of the
Management Committee. Major Decisions proposed to be taken by the Company shall require the approval of the Management Committee,
it being expressly agreed that any Major Decision of the Company not approved by the Non-Managing Member shall entitle Non-Managing
Member to exercise its rights under Section 3.8 hereof, subject to any applicable time-related lockout as provided in such Section
(hereinafter, a “Lockout”); provided, however, it is expressly agreed that during any such lock-out, the Major
Decision shall be deemed disapproved by the Members.

 

(G)         Any
meeting of the Management Committee may be held by conference telephone call, video conference or through similar communications
equipment by means of which all persons participating in the meeting can communicate with each other. Participation in a telephonic
and/or video conference meeting held pursuant to this Section 3.1(G) shall constitute presence in person at such meeting.

 

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

 

(I)         Except
as otherwise expressly provided in this Agreement, none of the Members or their Representatives (in their capacities as members
of the Management Committee), shall have any duties or liabilities to the Company or any other Member, including any fiduciary
duties, whether or not such duties or liabilities otherwise arise or exist in law or in equity, and each Member hereby expressly
waives any such duties or liabilities; provided, however, that this Section 3.1(I) shall not eliminate or
limit the liability of such Representatives or the Members (A) for acts or omissions that involve fraud or a knowing and culpable
violation of law, or (B) for any transaction not permitted or authorized under or pursuant to this Agreement unless the Management
Committee has approved in writing such transaction in accordance with this Agreement; provided, further, however,
that the duty of care of each of such Representatives and the Members is to not act with fraud or a knowing and culpable violation
of law. Except as provided in this Agreement, whenever in this Agreement a Representative of a Member and/or a Member is permitted
or required to make a decision affecting or involving the Company, any Member or any other Person, such Representative and/or such
Member shall be entitled to consider only such interests and factors as he, she or it desires, including a particular Member’s
interests, and shall, to the fullest extent permitted by applicable law, have no duty or obligation to give any consideration to
any interest of or factors affecting the Company or any other Member.

 

Section 3.2.          Liability
of the Members. Except as otherwise provided by the Act, the debts, obligations and liabilities of the Company, whether arising
in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and the Members shall not
be obligated personally for any such debt, obligation or liability of the Company solely by reason of being the Member of the
Company.

 

Section 3.3.          Officers.
The Managing Member may (i) appoint one or more officers of the Company with such titles as the Managing Member may deem necessary,
appropriate, or desirable, and (ii) delegate any or all of its rights, powers, and authority to one or more of such officers as
the Managing Member may from time to time determine.

 

Section 3.4.          Reimbursement
of Expenses. The Company shall promptly reimburse the Members and their affiliates for all reasonable costs and other obligations
paid or incurred by them on behalf of the Company.

 

Section 3.5.          Other
Business. The Members may engage in or possess an interest in other business ventures of every kind and description, independently
or with others. The Company shall not have any rights in or to such independent ventures or the income or profits therefrom by
virtue of this Agreement.

 

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Section 3.6.          Tax
Matters Member. Managing Member is hereby designated as the Tax Matters Member. The “Tax Matters Member”
is authorized and required to represent the Company in connection with all tax audits, examinations and investigations of the
affairs of the Company by any federal, state or local tax authorities, including any resulting administrative and judicial proceedings,
and to expend funds of the Company for professional services and costs associated therewith. All expenses incurred in connection
with any such tax audit, examination or investigation shall be borne by the Company. The Tax Matters Member shall keep all Members
fully informed of the progress of any such examination, audit or other proceeding. The Tax Matters Member shall not settle or
otherwise compromise any such examination, audit or other proceeding without the consent of the Non-Managing Member. Each Member
agrees to cooperate with the Tax Matters Member and to do or refrain from doing any and all things reasonably required by the
Tax Matters Member in connection with the conduct of such proceedings. The Company hereby indemnifies and holds harmless the Managing
Member from and against any claim, loss, expense, liability, action or damage resulting from its acting or its failure to take
any action as the “tax matters partner” of the Company, provided that any such action or failure to act does
not constitute gross negligence or willful misconduct.

 

Section 3.7.          Affiliate
Transactions. No agreement shall be entered into by the Company or any Subsidiary with a Member or any Affiliate of a Member
and no decision shall be made in respect of any such agreement (including, without limitation, the enforcement or termination
thereof) unless such agreement or related decision shall have been approved in writing by the Management Committee. Without limiting
the foregoing, any such agreement shall be on arm’s length terms and conditions, be terminable on fifteen (15) days’
notice without penalty and the terms and conditions of such agreement shall be disclosed to all Representatives prior to the execution
and delivery thereof. Further, the written approval of the Managing Member shall be required prior to the use of the name “Bluerock”
in connection with any matter or transaction, and the written approval of Waypoint shall be required prior to the use of the name
“Waypoint” in connection with any matter or transaction. Notwithstanding the foregoing, the Members agree that the
initial Property Management Agreement and the initial Asset Management Agreement, each dated as of the date of this Agreement,
are hereby approved.

 

Section 3.8           Deadlock/Buy-Sell.
At any time after (i)(a) the first anniversary of the date of the closing of the Property under that certain Real Estate Contract
of Sale dated as of June 4, 2012 between Enders Holdings LLC, as seller, and the Owner, as purchaser (the “Closing Date”),
and (b) the Members are unable to agree unanimously on any Major Decision (other than with respect to a Refinancing Event (as defined
on Schedule B) that is not in connection with the termination of the condominium regime of the Property), or (ii)(x) the second
anniversary of the Closing Date, and (y) the Members are unable to agree unanimously on a Major Decision with respect to a Refinancing
Event, and, in either case of (i) or (ii) above, such failure to agree has continued for thirty (30) days after written notice
from one Member to the other Member indicating an intention to exercise rights under this buy-sell provision to break the deadlock,
either Member may exercise its right to initiate the provisions of the Buy/Sell (as defined in and subject to and in accordance
with Section 3.8 of the Owner JV Agreement). Prior to the expiration of the periods described in subsections (A)(i)(a) and (A)(i)(b)
respectively, each a Lockout Period, neither Member may initiate the provisions of the Buy/Sell.

 

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Section 3.9           Operation
in Accordance with REOC/REIT Requirements.

 

(a)          The Members acknowledge
that the Managing Member or one or more of its Affiliates (an “MM Affiliate”) intends to qualify as a “real
estate operating company” or “venture capital operating company” within the meaning of U.S. Department of Labor
Regulation 29 C.F.R. §2510.3-101 (a “REOC”), and agree that the Company and its subsidiaries shall, at
Managing Member’s sole cost and expense, be operated in a manner that will enable the Managing Member and any such MM Affiliate
to so qualify. Notwithstanding anything herein to the contrary, the Company and its subsidiaries shall not take, or refrain from
taking, any action that would result in the Managing Member or an MM Affiliate from failing to qualify as a REOC. The Members acknowledge
and agree that the Managing Member may assign any or all of its rights or powers under this Agreement as Managing Member to designate
committee representatives, to provide consents and approvals, or any other rights or powers to one or more of its MM Affiliates
as it deems appropriate, and the exercise of any such rights or powers by an MM Affiliate shall have full force and effect under
this Agreement without the need for any further consent or approval. The Non-Managing Member (a) shall not fund any Capital Contribution
"with the 'plan assets' of any 'employee benefit plan' within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended or any 'plan' as defined by Section 4975 of the Internal Revenue Code of 1986, as amended",
and (b) shall comply with any requirements specified by the Managing Member in order to ensure compliance with this Section
3.9.

 

(b)          Notwithstanding
anything in this Agreement to the contrary, unless specifically agreed to by the Management Committee in writing, the Company shall
not hold any investment, incur any indebtedness or otherwise take any action that would cause any Member of the Company (or any
Person holding an indirect interest in the Company through an entity or series of entities treated as partnerships for U.S. federal
income tax purposes) to realize any “unrelated business taxable income” as such term is defined in Code (as hereafter
defined) Sections 511 through 514. All consents shall be filed with the minutes of the proceedings of the Management Committee.

 

(c)          Unless
specifically agreed to by the Management Committee in writing and subject to Article III and prior to the expiration of any applicable
Lockout Period, the Company (and any direct or indirect subsidiary of the Company)
may not engage in any activities or hold any assets that would constitute or result in the occurrence of a REIT Prohibited
Transaction. Notwithstanding anything to the contrary contained in this Agreement, during the time any REIT or direct or indirect
subsidiary of a REIT (a “REIT Member”) is a Member of the Company, neither the Company nor any
direct or indirect Subsidiary of the Company shall take or refrain from taking any action which, or the effect of which,
would constitute or result in the occurrence of one of the following REIT Prohibited Transactions by the Company or any direct
or indirect Subsidiary thereof:

 

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

 

    	- 9 -

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

(viii)      Selling
or disposing of the Property or any property, subsidiary or other asset of the Company prior to (i)
the completion of a two (2)
year holding period with such period to begin on the date the Company acquires a direct or indirect interest in such property
and begins to hold such property, subsidiary or asset for the production of rental income, provided, that, this Section
3.9(c)(viii) shall in no way be read to increase the Lockout Period (as defined in the Owner JV Agreement) or affect the Buy/Sell
(as defined in the Owner JV Agreement) rights of Waypoint Enders Investors LP (“Waypoint LP”) under the Owner
JV Agreement; and (ii) the satisfaction of any other requirements under Section 857 of the Code necessary for the avoidance of
a prohibited transaction tax on the REIT.

 

    	- 10 -

    	 

    

 

(d)          Notwithstanding
the foregoing provisions of this Section 3.9 the Company may enter into a REIT Prohibited Transaction if it receives the
prior written approval of the REIT Member specifically acknowledging that the REIT Member is approving a REIT Prohibited Transaction
pursuant to this Section 3.9. For purposes of this Section 3.9, “REIT Prohibited Transactions”
shall mean any of the actions specifically set forth in this Section 3.9. REIT shall mean a real estate investment trust
as defined in Section 856 of the Internal Revenue Code of 1986, as amended (the “Code”).

 

(e)          Managing
Member shall indemnify and hold harmless the Non-Managing Member from and against any loss, expense, or liability, including any
tax liability, incurred by the Non-Managing Member arising solely from the Company’s or the Managing Member’s compliance
with this Section 3.9.

 

Section 3.10         FCPA.

 

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

 

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

 

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

 

    	- 11 -

    	 

    

 

(C)         “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.

 

Section 3.11.         Prohibited
Actions. The following action shall not be taken by either Member,
without the prior written consent of the other Member:

 

(i)          The
admission, withdrawal or removal of any Member or the transfer of an interest of the Member in the Company where same would result
in a change of control of the entity holding such Member’s interest; provided, however, a transfer of an interest of a Member
may be made without the consent of the other Member (subject to any required Lender consent) if the Member remains indirectly controlled
by Waypoint Residential LLC (“Waypoint”) or Bluerock Real Estate, LLC (“Bluerock”), as applicable;

 

(ii)         the
Company’s issuance to any third party of any equity interest in the Company (including interests convertible into, or exchangeable
for, equity interests in the Company);

 

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

 

(iv)         any
Additional Capital Call from September 7, 2012 to the second anniversary of the Closing Date;

 

(v)          (A)
the sale of the Property prior to the first anniversary of the Closing Date, or (B) the sale of individual condominium units prior
to the second anniversary of the Closing Date; and

 

(vi)         material
increases from the approved annual operating budget in the amount of reserves for the Company and/or Property, or material changes
in the nature thereof from the approved annual operating budget.

 

ARTICLE IV

Exculpation and Indemnification

 

Section 4.1.          Exculpation.
The Members shall not be liable to the Company or any other person or entity who has an interest in the Company for any loss,
damage or claim incurred by reason of any act or omission performed or omitted by the Members in good faith on behalf of the Company
and in a manner reasonably believed to be within the scope of the authority conferred on the Members in accordance with this Agreement.

 

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Section
4.2.         Indemnification by Company. The Company hereby indemnifies,
holds harmless and defends the Members, the Managing Member, Representatives, the officers and each of their respective agents,
officers, directors, members, partners, shareholders and employees from and against any loss, expense, damage or injury suffered
or sustained by them (including but not limited to any judgment, award, settlement, reasonable attorneys’ fees and other
costs or expenses incurred in connection with the defense of any actual or threatened action, proceeding or claim) by reason of
or arising out of (i) their activities on behalf of the Company or in furtherance of the interests of the Company, (ii) their
status as Members, Managing Members, representatives, employees or officers of the Company, or (iii) the Company’s assets,
property, business or affairs (including, without limitation, the actions of any officer, director, member or employee of the
Company or any of its Subsidiaries), if the acts or omissions were not performed or omitted fraudulently or as a result of gross
negligence by the indemnified party or as a result of the willful breach of any obligation under this Agreement by the indemnified
party and only to the extent such actions or omissions do not accelerate any loan (including the Loan) or trigger liability thereunder.
For the purposes of this Section 4.2, officers, directors, employees and other representatives of Affiliates of a Member
who are functioning as representatives of such Member in connection with this Agreement shall be considered representatives of
such Member for the purposes of this Article IV. 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.

 

Section
4.3           Indemnification by Members for Misconduct

 

(A)         Non-Managing
Member hereby indemnifies, defends and holds harmless the Company, the Managing Member, each permitted transferee of the Managing
Member and each of their subsidiaries and their agents, officers, directors, members, partners, shareholders and employees from
and against all losses, costs, expenses, damages, claims and liabilities (including reasonable attorneys’ fees) as a result
of or arising out of (i) any fraud or gross negligence on the part of, or by, the Non-Managing Member, Asset Manager or any Representative
appointed by the Non-Managing Member, or (ii) the acts or omissions of the Non-Managing Member or any of its Affiliates attributable
solely to Non-Managing Member (or its Affiliate) that accelerate any loan (including the Loan) or trigger liability thereunder.

 

(B)         The
Managing Member hereby indemnifies, defends and holds harmless the Company, the Non-Managing Member, each permitted transferee
of the Non-Managing Member and each of their subsidiaries and their agents, officers, directors, members, partners, shareholders
and employees from and against all losses, costs, expenses, damages, claims and liabilities (including reasonable attorneys’
fees) as a result of or arising out of any fraud or gross negligence on the part of, or by, the Managing Member or any Representative
appointed by the Managing Member, or (ii) the acts or omissions of the Managing Member or any of its Affiliates attributable solely
to Managing Member (or its Affiliate) that accelerate any loan (including the Loan) or trigger liability thereunder

 

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Section
4.4           General Indemnification by the Members.

 

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

 

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

 

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

 

Section
4.5           Pledges of Membership Interests

 

(a)          As
of the date on which the Loan is paid off or such other date on which the restrictions on transfer of membership interests in the
Company become inapplicable (the “Pledge Date”), each Member shall execute and deliver to the other Member a
certain Pledge Agreement (the “Pledge Agreement”) and related documents pursuant to which each Member grants
to the other Member a lien upon and a continuing interest in its membership interest in the Company and such other rights pledged
under the Pledge Agreement (collectively, the “Indemnity Collateral”) as security for the indemnity obligations
of the Non-Managing Member under Section 4.3(A), on the one hand, and as security for the indemnity obligations of the Managing
Member under Section 4.3(B), on the other hand. Any transfer by a Member of its membership interest subsequent to the Pledge
Date shall be subject to the lien and security interest granted hereby until and unless such lien and security interest is released
by the applicable Member.

 

(b)          Each
Member shall, on the Pledge Date, have prepared and filed UCC financing statements and such other documents and have taken such
other action necessary to grant to the other Member a fully perfected first priority security interest in all of such Member’s
membership interest in the Company. From and after the Pledge Date, each Indemnified Party shall have all of the rights then or
thereafter 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 an Indemnified Party to ensure that the Indemnified Parties can realize on such security interest.

 

    	- 14 -

    	 

    

 

Section 4.6.          Limitation
on Liability. Except as set forth in Section 4 and with respect to a Default Loan as set forth in Section 2.4(B),
the Members shall not be bound by, or be personally liable for, by reason of being a Member, a judgment, decree or order of a court
or in any other manner, for the expenses, liabilities or obligations of the Company, and the liability of each Member shall be
limited solely to the amount of its Capital Contributions as provided under Article II. Except as set forth in Section
4.3 and with respect to a Default Loan as set forth in Section 2.4(B), any claim against any Member (the “Member
in Question”) which may arise under this Agreement shall be made only against, and shall be limited to, such Member in
Question’s interest in the Company, 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 6.3(d) hereof. Except as
set forth in Section 4.3 and with respect to a Default Loan as set forth in Section 2.4(B), any right to proceed
against any other assets of the Member in Question is hereby irrevocably and unconditionally waived. Any right to proceed against
any agent, officer, director, member, partner, shareholder or employee of the Member in Question or the assets of any such Person,
as a result of such a claim against the Member in Question arising under this Agreement or otherwise is hereby irrevocably and
unconditionally waived.

 

ARTICLE V

Distributions

 

Section 5.1.          Distributions.
Distributable Funds (as defined in Section 5.2 below) shall be distributed to the Members, no less often than on a monthly basis,
at the times determined by the Managing Member, as follows:

 

(a)          First,
to the Managing Member in an amount equal to any Special Management Incentive Fee Allocation distributed to the Company pursuant
to the Owner JV Agreement;

 

(b)          Second,
to the Members in proportion to their respective Sharing Percentages until each Member has actually received its Special Preferred
Return, if any;

 

(c)          Third,
to the Members in proportion to their respective Sharing Percentages until each Member’s Special Unreturned Capital Contribution
has been reduced to zero;

 

(d)          Fourth,
to the Members in proportion to their respective Sharing Percentages until each Member shall realize through distributions actually
received pursuant to this Section 5.1(d) their respective Preferred Return;

 

(e)          Fifth,
to the Members in proportion to their respective Sharing Percentages until the Unreturned Capital Contributions for each Member
has been reduced to zero; and

 

(f)          Sixth,
the balance, if any, of such Distributable Funds remaining after the distributions pursuant to (a)-(e) above shall be distributed
as follows: an amount equal to eighty percent (80%) of such Distributable Funds shall be distributed to the Members in proportion
to their respective Sharing Percentages, and an amount equal to twenty percent (20%) of such Distributable Funds shall be distributed
to the Non-Managing Member.

 

    	- 15 -

    	 

    

 

 

Section 5.2.          Distribution
Definitions.

 

(a)          “Distributable
Funds” shall mean, with respect to any month or other period, as applicable, as reasonably determined by Non-Managing
Member (subject to any material change in reserves triggering a Prohibited Action (as defined in Section 3.11 above), the sum of
(1) (x) an amount equal to the net cash flow of the Company for such month or other period, as applicable, as reduced by (y) reserves
for anticipated capital expenditures, future working capital needs and operating expenses, contingent obligations and other purposes,
the amounts of which shall be determined pursuant to the approved annual operating budget, and (2) any extraordinary cash flow
proceeds from the sale, refinance or other liquidation of the property after full payment of any mortgage debt and related closing
costs and reserves for contingent obligations.

 

(b)          “Preferred
Return” shall mean the greater of (i) a cumulative, compounding return on a Member’s total Capital Contributions
(excluding Special Capital Contributions) to the Company equal to ten percent (10%) per annum, compounded quarterly, or (ii) a
Member’s total Capital Contributions (excluding Special Capital Contributions) to the Company multiplied by 1.3.

 

(c)          “Special
Incentive Management Fee Allocation” shall have the meaning given to it in the Owner JV Agreement.

 

(d)          “Special
Preferred Return” shall mean interest on a Member’s total Unreturned Special Capital Contributions to the Company
equal to eighteen percent (18%) per annum, compounded quarterly.

 

(e)          “Special
Unreturned Capital Contributions” shall mean, for each Member, an amount equal to the total Special Capital Contributions
made by such Member minus the portion of the aggregate amount of distributions actually received by such Member pursuant to Section
5.1(c).

 

(f)          “Total
Investment” shall mean the sum of the aggregate Capital Contributions made by a Member.

 

(g)          “Unreturned
Capital Contributions” means, for each Member, an amount equal to the Total Investment of such Member minus the portion
of the aggregate amount of distributions actually received by such Member pursuant to Section 5.1(e).

 

ARTICLE VI

Dissolution and Termination

 

Section 6.1.          Dissolution.
The Company shall dissolve and its affairs shall be wound up upon the first to occur of the following: (i) the unanimous written
consent of all of the Members; or (ii) the entry of a decree of judicial dissolution under Section 18-802 of the Act.

 

Section 6.2.          Intentionally
Omitted.

 

    	- 16 -

    	 

    

 

Section 6.3           Liquidation.
In the event of dissolution, 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 6.3,
as promptly as practicable thereafter, and each of the following shall be accomplished:

 

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

 

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

 

(c)          Any
gain or loss realized by the Company upon the sale of its property shall be deemed recognized and allocated to the Members in the
manner set forth on Exhibit C. 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 Exhibit C and the amount of the distribution shall be considered to be such fair market value
of the asset.

 

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

 

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

 

(ii)         the
balance, if any, to the Members in accordance with Section 5.1.

 

Section
6.4.          Termination. The liquidation and winding up of the
Company shall be completed when all of its debts, liabilities, and obligations have been paid and discharged or reasonably adequate
provision therefor has been made, and all of the remaining assets and properties of the Company have been distributed to the Members
in accordance with Section 6.3 above. Upon the completion of the liquidation and winding up of the Company, a certificate
of cancellation of the Company shall be filed with the Secretary of State of Delaware and the legal existence of the Company shall
terminate.

 

Section 6.5.          No
Negative Capital Account Obligation. Notwithstanding any other provision of this Agreement to the contrary, in no event shall
any Member if it has a negative capital account upon final distribution of all cash and other property of the Company be required
to restore such negative capital account to zero.

 

Section 6.6.         No
Other Cause for Dissolution. The Company shall not be dissolved, or its legal existence terminated, for any reason whatsoever
except as expressly provided in this Article VI.

 

    	- 17 -

    	 

    

 

ARTICLE VII

Miscellaneous

 

Section 7.1.          Taxes.
For U.S. federal income tax purposes, the Company shall be treated as a partnership. Exhibit C attached hereto provides
the parties agreement with respect to certain tax matters.

 

Section 7.2.          Amendment.
No change, modification, or amendment of this Agreement shall be valid or binding unless such change, modification, or amendment
shall be in writing and duly executed by all of the Members.

 

Section 7.3.          Assignment.
The Members may not at any time sell, assign, or otherwise transfer in whole, or in part, their membership interests in the Company
without the prior written approval of the other Member. Notwithstanding the foregoing, the Members may transfer their interests
in the Company without the consent of the other Member only in the event such transferring Member remains directly or indirectly
controlled by either Waypoint or Bluerock, as applicable. Upon any such transfer, the transferee shall succeed to the rights and
obligations of such Member in respect of the interest in the Company so transferred and shall become a Member of the Company in
respect of such interest. Upon such transfer of a Member’s entire interest in the Company, such Member shall be entitled
to be deemed to have automatically resigned and withdrawn as a Member of the Company without any further action on the part of
any other person.         

 

Section 7.4.          Entire
Agreement. This Agreement constitutes the entire agreement of the Members with respect to the subject matter hereof.

 

Section 7.5.          Severability.
Each provision of this Agreement shall be considered separable, and if for any reason any provision or provisions herein are determined
to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall
not impair the operation of or affect those portions of this Agreement that are valid, enforceable and legal.

 

Section 7.6.          Governing
Law. This Agreement shall be governed by, and construed under, the internal laws of the State of Delaware (without regard
to the conflict of laws principles thereof), all rights and remedies being governed by said laws. Each of the parties hereto irrevocably
submits to the jurisdiction of the New York State courts and the Federal courts sitting in the State of New York and agree that
all matters involving this Agreement shall be heard and determined in such courts. Each of the parties hereto waives irrevocably
any objection it may have based on venue and the defense of inconvenient forum to the maintenance of such action or proceeding.
Each of the parties hereto designates CT Corporation System, 1633 Broadway, New York, New York 10019, as its agent for service
of process in the State of New York, which designation may only be changed on not less than ten (10) days’ prior notice
to all of the other parties.

 

Section 7.7.          Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the Members and their successors and assigns.

 

    	- 18 -

    	 

    

 

 

Section 7.8.          Headings.
The section and article headings in this agreement are for convenience of reference only and shall not be deemed to alter or affect
the meaning or interpretation of any provision hereof.

 

Section 7.9.          Other
Terms. All references to “Articles” and “Sections” contained in this Agreement are, unless specifically
indicated otherwise, references to Articles and Sections of this Agreement. Whenever in this Agreement the singular number is
used, the same shall include the plural where appropriate (and vice versa), and words of any gender shall included each other
gender where appropriate. As used in this Agreement, the following words or phrases shall have the meanings indicated: (i) “or”
means “and/or”; (ii) “day” means a calendar day; (iii) “include,” “including,”
or their derivatives means “including without limitation”; (iv) “laws” means statutes, regulations,
rules, judicial orders, and other legal pronouncements having the effect of law; and (v) “person” means any
individual, corporation, general or limited partnership, limited liability company, joint venture, trust, unincorporated association,
or other form of business or legal entity or governmental entity.

 

Section 7.10.         Sole
Benefit of the Members. The provisions of this Agreement are intended solely to benefit the Members, and, to the fullest extent
permitted by applicable law, shall not be construed as conferring any benefit upon any creditor of the Company (and no such creditor
shall be a third-party beneficiary of this Agreement), and the Members shall not have any duty or obligation to any creditor of
the Company to make any contributions or payments to the Company.

 

Section 7.11.         Notices.

 

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

 

	 	If to Managing Member:
	 	c/o Bluerock Real Estate, L.L.C.
	 	Heron Tower
	 	70 East 55th Street, 9th Floor
	 	New York, New York 10022
	 	Attention:  James G. Babb, III
	 	 
	 	with a copy to:
	 	c/o Bluerock Real Estate, L.L.C.
	 	Heron Tower
	 	70 East 55th Street, 9th Floor 

New York, New York 10022
	 	Attention:  Michael Konig, Esq.
	 	Telephone:  (646) 278-4230
	 	Facsimile:  (646) 278-4220
	 	E-mail:  mkonig@bluerockre.com

 

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	 	If to Non-Managing Member:
	 	c/oWaypoint Residential
	 	555 North Point Center East, Suite 408
	 	Alpharetta, Georgia 30022
	 	Attention:  Eric Hade, Esq.
	 	 
	 	with a copy to:
	 	Reed Smith
	 	599 Lexington Avenue
	 	22nd Floor
	 	New York, New York
	 	Attention:  Thomas G. Maira, Esq.
	 	Telephone:  (212) 205-6110
	 	Facsimile: 
	 	E-mail:  tmaira@reedsmith.com

 

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

 

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

 

Section 7.12         Public
Announcements. The terms and conditions of this Agreement are confidential and are not to be disclosed by the Managing Member
or the Non-Managing Member to anyone outside such party other than to legal counsel and other professional advisors who need to
know such information in connection with the transactions contemplated herein. The Managing Member and the Non-Managing Member
shall be permitted to make any disclosure required by law, including such disclosures as may be required under Federal or state
securities law. Non-Managing Member may disclose the terms and conditions of this letter and materials related hereto to Robert
Rohdie and its other potential partners , investors, or members, and its potential joint venture partners, financing sources,
legal counsel and other agents and representatives who need to know such information in connection with the transactions contemplated
herein.

 

Section 7.13         Buy/Sell
Acknowledgement. The Members acknowledge and agree that if the Company acquires the membership interest of Waypoint LP in
the Owner pursuant to Section 3.8 of the Owner JV Agreement, then the Managing Member shall acquire the membership interest of
the Non-Managing Member in the Company pursuant to the terms of Section 3.8 of the Owner JV Agreement. At the closing of such
acquisition, the Non-Managing Member shall assign to the Managing Member or its designee the Non-Managing Member’s membership
interest in the Company, and shall execute and deliver to the Managing Member all documents which may be reasonably required to
give effect to the disposition and acquisition of such membership interest, in each case free and clear of all liens, claims,
and encumbrances.

 

    	- 20 -

    	 

    

 

ARTICLE VIII

SPE Requirements

 

Section 8.1.          Limitations/Separateness
Covenants. Notwithstanding any other provision of this Agreement and any provision of law that otherwise so empowers the Company,
so long as any portion of the Loan (hereinafter defined) remains outstanding, the Company:

 

		(i)	shall not engage in any business or activity, other than the ownership, leasing, sale, financing,
operation and/or maintenance of the Property and activities incidental thereto, whether directly or through subsidiaries;

 

		(ii)	shall not acquire, own, hold, lease, operate, manage, maintain, develop or improve any assets other
than the Property, or interests in entities owning the Property, and such personalty as may be necessary for the operation of the
Property and shall conduct and operate its business as presently conducted and operated;

 

		(iii)	shall preserve its existence as an entity duly organized, validly existing and in good standing
(if applicable) under the laws of the jurisdiction of its formation or organization and shall do all things necessary to observe
organizational formalities;

 

		(iv)	shall not merge or consolidate with any other Person;

 

		(v)	shall not take any action to dissolve, wind-up, terminate or liquidate in whole or in part; to
sell, transfer or otherwise dispose of all or substantially all of its assets; to change its legal structure; transfer or permit
the direct or indirect transfer of any partnership, membership or other equity interests, as applicable, other than Transfers permitted
under the Loan Agreement (as hereinafter defined); issue additional partnership, membership or other equity interests, as applicable;
or seek to accomplish any of the foregoing;

 

		(vi)	shall not, without the prior unanimous written consent of all of the Company’s partners,
members, or shareholders, as applicable, and, if applicable, the prior unanimous written consent of 100% of the members of the
board of directors or of the board of managers of the Company or any SPE Equity Owner (as defined in the Loan Agreement):

 

    	- 21 -

    	 

    

 

 

		(A)	file any insolvency, or reorganization case or proceeding, to institute proceedings to have the
Company or any SPE Equity Owner be adjudicated bankrupt or insolvent,

 

		(B)	institute proceedings under any applicable insolvency law,

 

		(C)	seek any relief under any law relating to relief from debts or the protection of debtors,

 

		(D)	consent to the filing or institution of bankruptcy or insolvency proceedings against the Company
or any SPE Equity Owner,

 

		(E)	file a petition seeking, or consent to, reorganization or relief with respect to the Company or
any SPE Equity Owner under any applicable federal or state law relating to bankruptcy or insolvency,

 

		(F)	seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator,
custodian, or any similar official for the Company or a substantial part of its property or any SPE Equity Owner or a substantial
part of its property,

 

		(G)	make any assignment for the benefit of creditors of the Company,

 

		(H)	admit in writing the Company’s of any SPE Equity Owner’s inability to pay its debts
generally as they become due, or

 

		(I)	take action in furtherance of any of the foregoing;

 

		(vii)	shall not amend or restate its organizational documents if such change would cause the provisions
set forth in the organizational documents not to comply with the requirements set forth in Section 6.13 of the Loan Agreement (the
“Loan Agreement”) executed by Owner in favor of Lender (as hereinafter defined) in connection with the Loan
(as hereinafter defined);

 

		(viii)	shall not own any subsidiary or make any investment in, any other Person;

 

		(ix)	shall not commingle its assets with the assets of any other Person and shall hold all of its assets
in its own name;

 

		(x)	shall not incur any debt, secured or unsecured, direct or contingent (including, without limitation,
guaranteeing any obligation), other than, (A) the loan from Jones Lang LaSalle (the “Lender”) in the amount
of $17,500,000.00 (the “Loan”) (and any further indebtedness as described in Section 11.11 of the Loan Agreement with
regard to supplemental financing) and (B) customary unsecured trade payables incurred in the ordinary course of owning and operating
the Property provided the same are not evidenced by a promissory note, do not exceed, in the aggregate, at any time a maximum amount
of two percent (2%) of the original principal amount of the Indebtedness and are paid within sixty (60) days of the date incurred;

 

    	- 22 -

    	 

    

 

		(xi)	shall maintain its records, books of account, bank accounts, financial statements, accounting records
and other entity documents separate and apart from those of any other Person and shall not list its assets as assets on the financial
statement of any other Person; provided, however, that the Company’s assets may be included in a consolidated financial statement
of its Affiliate provided that (A) appropriate notation shall be made on such consolidated financial statements to indicate the
separateness of the Company from such Affiliate and to indicate that the Company’s assets and credit are not available to
satisfy the debts and other obligations of such Affiliate or any other Person and (B) such assets shall also be listed on the Company’s
own separate balance sheet;

 

		(xii)	except for capital contributions or capital distributions
permitted under the terms and conditions of its organizational documents, shall only enter into any contract or agreement with
any general partner, member, shareholder, principal or Affiliate of Company or any guarantor, or any general partner, member,
principal or Affiliate thereof, upon terms and conditions that are commercially reasonable and substantially similar to those
that would be available on an arm’s-length basis with third parties;

 

		(xiii)	shall not maintain its assets in such a manner that it will be costly or difficult to segregate,
ascertain or identify its individual assets from those of any other Person;

 

		(xiv)	shall not assume or guaranty (excluding any guaranty that has been executed and delivered in connection
with the Loan) the debts or obligations of any other Person, hold itself out to be responsible for the debts of another Person,
pledge its assets to secure the obligations of any other Person or otherwise pledge its assets for the benefit of any other Person,
or hold out its credit as being available to satisfy the obligations of any other Person;

 

		(xv)	shall not make or permit to remain outstanding any loans or advances to any other Person except
for those investments permitted under the Loan Documents and shall not buy or hold evidence of indebtedness issued by any other
Person (other than cash or investment-grade securities);

 

		(xvi)	shall file its own tax returns separate from those of any other Person, except to the extent that
the Company is treated as a “disregarded entity” for tax purposes and is not required to file tax returns under applicable
law, and shall pay any taxes required to be paid under applicable law;

 

		(xvii)	shall hold itself out to the public as a legal entity separate and distinct from any other Person
and conduct its business solely in its own name, shall correct any known misunderstanding regarding its separate identity and shall
not identify itself or any of its Affiliates as a division or department of any other Person;

 

		(xviii)	shall maintain adequate capital for the normal obligations reasonably foreseeable in a business
of its size and character and in light of its contemplated business operations and shall pay its debts and liabilities from its
own assets as the same shall become due; provided, however, the aforementioned shall not be deemed to require any Member of the
Company to contribute additional capital to the Company;

 

 

    	- 23 -

    	 

    

 

		(xix)	shall allocate fairly and reasonably shared expenses with Affiliates (including, without limitation,
shared office space) and use separate stationery, invoices and checks bearing its own name;

 

		(xx)	shall pay (or cause the Property Manager to pay on behalf of the Company from the Company’s
funds) its own liabilities (including, without limitation, salaries of its own employees) from its own funds;

 

		(xxi)	shall not acquire obligations or securities of its partners, members, shareholders, or Affiliates,
as applicable;

 

		(xxii)	except as contemplated or permitted by the property management agreement with respect to the Property
Manager, shall not permit any Affiliate or constituent party independent access to its bank accounts;

 

		(xxiii)	shall maintain a sufficient number of employees (if any) in light of its contemplated business
operations and pay the salaries of its own employees, if any, only from its own funds;

 

		(xxiv)	Company shall be formed and organized under Delaware law.

 

Section 8.2.         Title
to Company Property. All property owned by the Company shall be owned by the Company as an entity and, insofar as permitted
by applicable law, no member or manager shall have any ownership interest in any company property in its individual name or right
and, each membership or other ownership interest in the Company shall be personal property for all purposes.

 

Section 8.3.         Effect of Bankruptcy,
Death or Incompetency of a Member. The bankruptcy, death, dissolution, liquidation, termination or adjudication of incompetency
of a Member shall not cause the termination or dissolution of the Company and the business of the Company shall continue. Upon
any such occurrence, the trustee, receiver, executor, administrator, committee, guardian or conservator of such Member shall have
all the rights of such Member for the purpose of settling or managing its estate or property, subject to satisfying conditions
precedent to the admission of such assignee as a substitute Member. The transfer by such trustee, receiver, executor, administrator,
committee, guardian or conservator of any membership interest in the Company shall be subject to all of the restrictions, hereunder
to which such transfer would have been subject if such transfer had been made by such bankrupt, deceased, dissolved, liquidated,
terminated or incompetent Member. Each Member waives any right it may have to agree in writing to dissolve the Company upon the
bankruptcy of any Member or the occurrence of an event that causes any Member to cease to be members in the Company.

 

Section 8.4.         Subordination
of Indemnities. All indemnification obligations of the Company are fully subordinated to any obligations relative to the Loan
or respecting the Property and such indemnification obligations shall in no event constitute a claim against the Company if cash
flow in excess of amounts necessary to pay obligations under the Loan is insufficient to pay such indemnification obligations.

 

    	- 24 -

    	 

    

 

Section 8.5.          Non-Dissolution.
Notwithstanding any other provision of this Agreement, the bankruptcy of the Members shall not cause the Members to cease to be
a member of the Company and upon the occurrence of such an event, the Company shall continue without dissolution. Notwithstanding
any other provision of this Agreement, each of the Members and waives any right it might have to agree in writing to dissolve
the Company upon the bankruptcy of the Members, or the occurrence of an event that causes the Members to cease to be a member
of the Company.

 

ARTICLE IX

Representations and Warranties

 

Section 9.1.          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 9.2. Such representations and warranties shall survive the execution or the termination
of this Agreement.

 

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

 

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

 

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

 

    	- 25 -

    	 

    

 

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

 

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

 

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

 

(f)          Broker.
Other than Jones Lang LaSalle, no broker, agent or other person acting as such on behalf of such Member was instrumental in consummating
this transaction and that no conversations or prior negotiations were had by such party with any broker, agent or other such person
concerning the transaction that is the subject of this Agreement. Without duplication of amounts paid under the Owner JV Agreement,
the Company shall be obligated to pay an amount up to $75,000 of the equity fee payable to Jones Lang LaSalle, and Bluerock shall
be required to pay for any excess amount attributable to such fee.

 

    	- 26 -

    	 

    

 

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

 

(h)          Securities
Matters.

 

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

 

		(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 membership
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 membership interests, and no Member has taken any action which could give
rise to any claim by any person, other than Jones Lang LaSalle, for brokerage commissions, finders’ fees or the like relating
to the transactions contemplated hereby.

 

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

 

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

 

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

 

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

    	- 27 -

    	 

    

 

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

 

Each Member’s Capital Contributions have been raised in
compliance with the Securities Act of 1933, as amended, and applicable state securities laws.

 

ARTICLE X

 

Confidentiality

 

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

 

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

 

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

 

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

 

    	- 28 -

    	 

    

 

 

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

 

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

 

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

 

ARTICLE XI

Books, Records and
Bank Accounts

 

Section 11.1         Books
and Records. The books and records of account of the Company shall be maintained in accordance with industry standards and
shall be based on the Asset Manager Reports. The books and records shall be maintained at the Company’s principal office
or at a location designated by the Managing Member, and all such books and records (and the dealings and other affairs of the
Company and its Subsidiaries) shall be available to any Member at such location for review, investigation, audit and copying,
at such Member’s sole cost and expense, during normal business hours on at least twenty-four (24) hours prior notice. In
connection with such review, investigation or audit, such Member (and its representatives and agents) shall have the unfettered
right to meet and consult with any and all employees of Waypoint Residential, LLC (the “Asset Manager”) (or
any of their respective Affiliates) and to attend meetings and independently meet and consult with any and all third parties having
dealings or any other relationship with the Company or any of its subsidiaries or with Asset Manager in respect of the Company
or any of its subsidiaries.

 

Section
11.2         Reports and Financial Statements.

  

(A)Within fifteen
(15) days of the end of each Fiscal Year, the Managing Member shall cause each Member to be furnished with two sets of the following
additional annual reports computed as of the last day of the Fiscal Year:

 

		(i)	An unaudited balance sheet of the Company;

 

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

 

    	- 29 -

    	 

    

 

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

 

(B)         Within
fifteen (15) days of the end of each quarter of each Fiscal Year, the Asset Manager shall cause to be furnished to the Managing
Member such information as requested by the Managing Member as is necessary for any REIT Member to determine its qualification
as a REIT and its compliance with REIT Requirements as shall be requested by the Managing Member. Further, the Asset Manager shall
cooperate in a reasonable manner at the request of any Member to work in good faith with any designated accountants or auditors
of such Member or its Affiliates so that such Member or its Affiliate is able to comply with its public reporting, attestation,
certification and other requirements under the Securities Exchange Act of 1934, as amended, applicable to such entity, and to work
in good faith with the designated accountants or auditors of the Member or any of its Affiliates in connection therewith, including
for purposes of testing internal controls and procedures of such Member or its Affiliates. Notwithstanding the foregoing, Managing
Member, and not the Non-Managing Member or the Company, shall bear the cost of any audit or other accounting procedure required
to be performed because of Bluerock’s public company reporting requirements or REIT Requirements or REOC requirements or
otherwise pursuant to Section 3.9.

 

(C)          The
Members acknowledge that the Asset Manager is obligated to perform Project-related accounting and furnish Project-related accounting
statements under the terms of the Asset Management Agreement (the “Asset Manager Reports”). The Managing Member
shall be entitled to rely on the Asset Manager Reports with respect to its obligations under this Article XI, and the Members
acknowledge that the reports to be furnished shall be based on the Asset Manager Reports, without any duty on the part of the Manager
to further investigate the completeness, accuracy or adequacy of the Asset Manager Reports.

 

Section 11.3         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 Managing Member and shall be withdrawn on the signature of such Person or Persons as the Managing Member
may authorize.

 

Section 11.4         Tax
Returns. The Managing Member shall cause to be prepared all income and other tax returns of the Company and its subsidiaries
required by applicable law and shall submit such returns to the Management Committee for its review, comment and approval at least
ten (10) days prior to the due date or extended due date thereof and shall thereafter cause the same to be filed in a timely manner
(including extensions). No later than the due date or extended due date, the Managing Member shall deliver or cause to be delivered
to each Member a copy of the tax returns for the Company and such subsidiaries with respect to such Fiscal Year, together with
such information with respect to the Company and such subsidiaries as shall be necessary for the preparation by such Member of
its U.S. federal and state income or other tax and information returns.

 

Section 11.5         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 Managing Member in connection with its obligations under this Article
XI will be reimbursed by the Company to the Managing Member.

 

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[Remainder
of page intentionally left blank]

 

    	- 31 -

    	 

    

 

IN WITNESS WHEREOF,
the undersigned, intending to be legally bound hereby, have duly executed this Agreement as of the date first written above.

 

	 	MANAGING MEMBER:
	 	 
	 	BR ENDERS MANAGING MEMBER, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: Bluerock Special Opportunity + Income III, LLC
	 	a Delaware limited liability company
	 	Its: Manager
	 	 
	 	By: BR SOIF III Manager, LLC
	 	a Delaware limited liability
	 	Its: Manager
	 	 
	 	By: 	/s/ Jordan B. Ruddy
	 	Name:  Jordan B. Ruddy
	 	Its:  President
	 	 
	 	NON-MANAGING MEMBER:
	 	 
	 	WAYPOINT ENDERS GP, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: 	/s/ Linda Lewis
	 	 	Name: Linda Lewis
	 	 	Title:Authorized Signatory

 

[Signature Page to Limited
Liability Company Agreement of Waypoint Bluerock Enders JV, LLC]

 

    	- 32 -

    	 

    
 

SCHEDULE A

 

SHARING PERCENTAGES

 

	MEMBER	 	ADDRESS	 	SHARING 
PERCENTAGE	 	 	INITIAL CAPITAL 
CONTRIBUTION	 
	 	 	 	 	 	 	 	 	 
	BR Enders Managing Member, LLC	 	c/o Bluerock
Real Estate, LLC
 70 East 55th Street, Suite 9
 New York, New York 10022
 
	 	 	99.9	%	 	$	4,716,846	 
	 	 	 	 	 	 	 	 	 	 	 
	Waypoint Enders GP, LLC	 	c/o Waypoint Residential
LLC
 Three Pickwick Plaza, 4th Fl.
 Greenwich, Connecticut 06830
	 	 	0.1	%	 	$	0	 
	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 		 	 	100.00	%	 	$	4,716,846	 

 

    	- 33 -

    	 

    

 

SCHEDULE B

 

MAJOR DECISIONS

 

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

 

		(i)	hiring or terminating any property manager or asset manager or entering into any property management
agreement or asset management agreement for the Property, provided, however, that in the event that trailing six (6) months net
operating income falls below the budget (exclusive of Uncontrollable Expenses (as defined below) and
using the Base Property Management Fee of 3.3675%
per annum) by more than 7.5%, then Managing Member shall have the option upon thirty (30) days’ notice to cause the
then pending property manager to be terminated as the property manager and Non-Managing Member shall then promptly select a replacement
property manager, subject to the consent of Managing Member, not to be unreasonably withheld;

 

		(ii)	approval of the annual (i) operating budget, provided however that (a) the annual operating budget
for the balance of 2012 and for 2013 has been agreed by Managing Member and Non-Managing Member as of September 7, 2012 (the “Go
Forward Date”), (b) that in the event the parties do not agree on a 2014 operating budget, the 2014 operating budget
will be deemed to be the 2013 operating budget subject to increases (i) for CPI on labor costs, and (ii) for the actual cost of
real estate taxes, insurance, utilities, condominium, owner and similar association fees (collectively, “Uncontrollable
Expenses”)), and (c) the approval of the annual operating budget for the year 2015 and any year thereafter shall be a
Major Decision and (ii) capital budget for the Property, provided, however the amount of $693,000 in the aggregate established
at Closing as the Renovation/Upfront Capital Reserve shall be the aggregate capital budget for the years 2012, 2013 and 2014, and
the approval of the annual capital budget for 2015 and any year thereafter shall be a Major Decision;

 

		(iii)	any merger, conversion, consolidation
or exchange involving (i) the Company or the (ii) sale, lease, transfer, exchange or other disposition of all or substantially
all of the Company’s assets or all of the membership interests of the Members in the Company, in one or a series of related
transactions;

 

		(iv)	refinancing, giving, granting or undertaking any deeds of trust, mortgages, pledges, ground leases,
security or other interests in or encumbering the Property, any portion thereof or any other material assets or the entering into
of any agreement, commitment or assumption with respect to any of the foregoing (specifically including the selection of the lender/counterparty
and approval of all terms and conditions of the relevant agreement), other than pursuant to the Loan (collectively, a “Refinancing
Event”);

 

    	- 34 -

    	 

    

 

		(v)	selling or conveying, or causing any subsidiary of the
Company, including the Owner, to sell or convey, (i) the Property, any subsidiary or other material asset of the Company or the
entering into of any agreement or commitment with respect to any of the foregoing, after the first anniversary of the Closing
Date, or (ii) individual condominium units after the second anniversary of the Closing Date, or the entering into of any agreement
or commitment with respect to such sales (with either such acts described in (i) and (ii) above prior to such respective anniversaries
being Prohibited Actions as set forth in Section 5.4);

 

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

 

		(vii)	taking any material action with respect to any condominium
or owner’s association affecting the Property, including without limitation any material vote as a member of the condominium
or owner’s association or collapsing the condominium;

 

		(viii)	filing
or consenting to any bankruptcy or insolvency or similar action, or taking any action by the Company that is reasonably
likely to result in any Member or any of its affiliates or Robert Rohdie having individual liability under any so called non-recourse
carve-out guaranties, environmental indemnities or similar agreements provided to third party lenders (including Lender) in respect
of financings relating to the Company, its subsidiaries or any of their assets; and

 

		(ix)	making any Additional Capital Calls after the second anniversary of the Closing Date, other than
(i) Capital Calls for the $693,000 initial capital budget, and (ii) Protective Capital Calls, with such Capital Calls described
in (i) and (ii) above being able to be made by either Member as a non-Major Decision prior to the second anniversary of the Closing
Date.

 

    	- 35 -

    	 

    

 

Exhibit C

 

		1.	Tax Definitions. As used in this Agreement:

 

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

 

(b)          “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.

 

(c)          “Capital
Account” shall have the meaning set forth in Section 2 of this Exhibit C.

 

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

 

(e)          “Income”
shall mean the gross income of the Company for any month, Fiscal Year or other period, as applicable, including gains realized
on the sale, exchange or other disposition of the Company’s assets.

 

(f)          “Loss”
shall mean the aggregate of losses, deductions and expenses of the Company for any month, Fiscal Year or other period, as applicable,
including losses realized on the sale, exchange or other disposition of the Company’s assets.

 

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

 

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

 

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

 

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

 

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

 

(l)          “Nonrecourse
Deduction” shall have the meaning given such term in Regulations Section 1.704-2(b)(1).

 

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

 

    	- 36 -

    	 

    

 

(n)          “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.

 

2.          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. Without limiting the foregoing, the Capital Account of each Member shall be
increased by (i) the amount of any Capital Contributions made by such Member, (ii) the amount of Income allocated to such
Member and (iii) the amount of income or profits, if any, allocated to such Member not otherwise taken into account in this Section.
The Capital Account of each Member shall be reduced by (i) the amount of any cash and the fair market value of any property distributed
to the Member by the Company (net of liabilities secured by such distributed property that the Member is considered to assume or
take subject to), (ii) the amount of Loss allocated to the Member and (iii) the amount of expenses or losses, if any, allocated
to such Member not otherwise taken into account in this Section. 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 ARTICLE II 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 5.1 or Section 6.3. No Member shall be obligated
to restore any negative balance in its Capital Account. No Member shall be compensated for any positive balance in its Capital
Account except as otherwise expressly provided herein. The foregoing provisions and the other provisions of this Agreement relating
to the maintenance of Capital Accounts are intended to comply with the provisions of Regulations Section 1.704-1(b)(2) and
shall be interpreted and applied in a manner consistent with such Regulations.

 

3.          Allocations

 

(a)          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 5.1 if the Company were dissolved, its affairs wound up and assets sold for cash
equal to their tax basis (or book value in the case of assets that have been revalued in accordance with Section 704(b) of the
Code), all Company liabilities were satisfied, and the net assets of the Company were distributed in accordance with Section 5.1
immediately after such allocation.

 

(b)          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 6.3 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 6.3

 

    	- 37 -

    	 

    

 

(c)          U.S.
Tax Allocations.

 

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

 

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

 

(3)         
Any elections or other decisions relating to such allocations shall be made by the Managing Member 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.

 

    	- 38 -

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