Document:

This Instrument Was Prepared By:	The maximum principal
	Jeffrey R. King	indebtedness for Tennessee
	Stites & Harbison, PLLC	recording tax purposes is
	401 Commerce Street, Suite 800	$23,569,000.00
	Nashville, Tennessee 37219	 

 

DEED OF
TRUST, ASSIGNMENT OF RENTS, 

SECURITY
AGREEMENt and fixture filing

 

THIS INSTRUMENT
IS ALSO A UNIFORM COMMERCIAL CODE FINANCING STATEMENT WHICH IS BEING FILED AS A FIXTURE FILING IN ACCORDANCE WITH TENNESSEE CODE
ANNOTATED SECTION 47-9-502(c). THE COLLATERAL DESCRIBED IN THIS DEED OF TRUST INCLUDES GOODS THAT ARE, OR MAY BECOME AFFIXED TO
THE REAL PROPERTY DESCRIBED HEREIN. THE NAMES AND ADDRESSES OF THE DEBTOR (GRANTOR) AND THE SECURED PARTY (BENEFICIARY) ARE SET
FORTH BELOW.

 

PURSUANT TO TENNESSEE
CODE ANNOTATED SECTION 47-28-104, NOTICE IS HEREBY GIVEN THAT THIS DEED OF TRUST SECURES OBLIGATORY ADVANCES AND IS FOR COMMERCIAL
PURPOSES. THIS DEED OF TRUST ALSO SECURES OPTIONAL ADVANCES WHICH ARE NOT OBLIGATORY.

 

THIS DEED OF TRUST,
ASSIGNMENT OF RENTS AND SECURITY AGREEMENT (“Deed of Trust”), executed the date hereinafter written, by 23HUNDRED,
LLC, a Delaware limited liability company, (“Grantor”), with a mailing address of 3200 West End Avenue,
Suite 500, Nashville, Tennessee 37203, in favor of JEFF KING, TRUSTEE a resident of Williamson County, Tennessee (“Trustee”),
for the use and benefit of FIFTH THIRD BANK, an Ohio banking corporation with a mailing address of 424 Church Street, Suite
600, Nashville, Tennessee 37219-3325 (“Beneficiary”).

 

WITNESSETH:

 

WHEREAS, Grantor desires
to secure repayment of the indebtedness described in Section 2 hereof by a conveyance of the Premises (hereinafter defined); and

 

WHEREAS, Beneficiary
accepts the benefits of this Deed of Trust;

 

NOW, THEREFORE, in
consideration of the premises and for other valuable consideration, the Grantor and Beneficiary agree as follows:

 

1.        Premises.
Grantor has this day bargained and sold, and does hereby transfer, assign and convey unto Trustee, all of Grantor’s right,
title and interest in and to the following described property and property rights (whether now owned or hereafter acquired by Grantor)
and all replacements and additions thereto (hereinafter referred to collectively as the “Premises”):

 

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The real property more particularly
described on Exhibit A attached hereto and incorporated herein by reference;

 

TOGETHER with all buildings,
structures and other improvements now or hereafter located on all or any part of the Premises;

 

TOGETHER with all minerals,
royalties, gas rights, water, water rights, water stock, flowers, shrubs, crops, trees, timber and other emblements now or hereafter
located on, under or above all or any part of the Premises;

 

TOGETHER with any and
all tenements, hereditaments, easements and appurtenances, reversions and remainders pertaining to the Premises;

 

TOGETHER with all machinery,
apparatus, equipment, fittings, fixtures, and articles of personal property of every kind and nature, now or hereafter located
in, on or under the Premises or any part thereof and used or usable in connection with any present or future operation of the Premises;

 

TOGETHER with any and
all leases and contracts affecting the Premises both presently existing and hereafter arising, and all rents, income, or profits
which are now due or may hereafter become due by reason of the renting, leasing or bailment of all or part of the Premises, all
of which are hereby assigned to Beneficiary as further security for the repayment of the indebtedness described in Section 2 hereof;
and

 

TOGETHER with any and
all awards or payments, including interest thereon, and the right to receive the same, as a result of (a) the exercise of the right
of eminent domain, (b) the alteration of the grade of any street, or (c) any other injury to, taking of, or decrease in the
value of, the Premises, to the extent of all amounts which may be secured by this Deed of Trust at the date of any such award or
payment including but not limited to the reasonable and actual attorneys’ fees, costs and disbursements incurred by the Trustee
and/or the Beneficiary in connection with the collection of such award or payment.

 

TO HAVE AND TO HOLD
the foregoing Premises and rights hereby granted to the use and benefit of Trustee, his successors and assigns forever.

 

2.          Trust
Created; Indebtedness Defined. This conveyance is made IN TRUST in order to secure prompt payment in full of the following
described obligations (hereinafter the Secured Indebtedness):

 

(a)        The
prompt payment when due (whether at maturity or upon the acceleration of maturity) of indebtedness for borrowed money in the aggregate
principal amount of Twenty Three Million Five Hundred Sixty-Nine Thousand and No/100 Dollars ($23,569,000.00), together with interest
thereon evidenced by a promissory note in the amount of $23,569,000.00 payable to Beneficiary executed by Grantor. This Deed of
Trust secures payment of the indebtedness evidenced by said promissory Notes, principal and interest, and any extensions, modifications
and/or renewals thereof and any notes given in payment of any such principal and/or interest (all of the foregoing are sometimes
hereinafter collectively referred to as the “Note”).

 

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(b)        All
sums advanced by Beneficiary to Grantor or expended by Beneficiary in order to preserve, protect or enhance the value of the Premises
pursuant to the terms of this Deed of Trust, or as set forth in any of the other loan documents executed in connection herewith,
or otherwise, with interest thereon at the same rate as is provided in the Notes, and the faithful performance of all terms and
conditions contained herein, all of which Grantor agrees to pay to Beneficiary ON DEMAND.

 

(c)        The
prompt payment of all court costs, expenses, interest (at the highest lawful rate) and costs of whatever kind incident to the collection
of any indebtedness secured hereby and the enforcement or protection of the lien created by this conveyance (including without
limitation reasonable attorney’s fees), all of which Grantor agrees to pay to Beneficiary ON DEMAND.

 

(d)        The
prompt payment when due of any and all other indebtedness of Grantor to Beneficiary, direct or contingent, however evidenced or
denominated, and however or whenever incurred, including, without limitation, any letters of credit issued by Beneficiary for the
benefit of Grantor.

 

3.        Assignment
of Rents. Grantor hereby assigns to Lender all rents, revenues, incomes and profits of the Premises, including those now or
hereafter due, subject only to the condition that Beneficiary shall not collect such rents, revenues, incomes and profits so long
as Grantor is not in default under the Deed of Trust. Upon default, Beneficiary may notify any tenant of the Premises of its intent
to exercise its rights under this assignment. Grantor agrees that commencing upon delivery of such notice, any tenant of the Premises
shall pay all accrued and subsequent rents to Beneficiary or Beneficiary’s agents, without any liability on the part of tenant
to inquire further as to the existence of a default by Grantor. Beneficiary’s right to receive such rents shall not be affected
by the institution of any bankruptcy, reorganization or insolvency proceedings by or against Grantor. The Grantor appoints the
Beneficiary as his attorney-in-fact for the purpose of endorsing his name on any checks or drafts which represent rents, revenues,
incomes or profits of the Premises. Should the Premises be involved in any insolvency, receivership, bankruptcy, or other proceedings
affecting the possession of said Premises, it is further covenanted and agreed that Trustee or Beneficiary shall be entitled to
all of the rents, issues and profits realized from or during any such proceedings, whether or not there shall exist a default under
the Deed of Trust. Such rents shall be treated as cash collateral.

 

4.        Security
Agreement. This document is intended, among other things, to be a security agreement. Accordingly, Grantor hereby grants to
Beneficiary a security interest in all accounts, machinery, apparatus, goods, equipment, building materials, personal property,
fixtures, general intangibles, issues and profits presently existing and hereafter acquired, which are located on, used in connection
with, or relate to the Premises, and all proceeds (including insurance proceeds), thereof. Grantor agrees to execute and deliver
financing statements covering said property from time to time in such form as Beneficiary may require to perfect a security interest
therein. Grantor shall pay all costs and transfer taxes required to be paid in order to file such financing statements in the appropriate
place or places. This Deed of Trust shall constitute a financing statement for purposes of local filing requirements. Without the
prior written consent of Beneficiary, Grantor shall not create or suffer to be created, pursuant to the Uniform Commercial Code,
any other security interest in said accounts, machinery, apparatus, goods, equipment, building materials, personal property, fixtures,
general intangibles, issues and profits including replacements and additions thereto and the proceeds thereof. Upon the occurrence
of an Event of Default or Grantor’s breach of any other covenants or agreement between the parties entered into in conjunction
herewith, Beneficiary shall have the remedies of a secured party under the Uniform Commercial Code and, at Beneficiary’s
option, the remedies provided for in this Deed of Trust. In the event Grantor has executed a separate security agreement with respect
to the personality granting Beneficiary a security interest therein, the terms of this document shall be read to complement rather
than contradict such other security agreement.

 

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5.           Additional
Representations, Covenants and Warranties of Grantor. Grantor further represents to Beneficiary and covenants and agrees with
the Beneficiary as follows:

 

(a)        Title.
Grantor warrants that Grantor has a good title to the Premises, and is lawfully seized and possessed of the Premises and every
part thereof, and has the right to convey same; that Grantor will forever warrant and defend the title to the Premises unto Trustee
against the claims of all persons whomsoever; and that the Premises are unencumbered except as set forth on Exhibit B hereto.

 

(b)        No
Liens or Assessments. Grantor will not suffer or permit any lien (other than the lien of this Deed of Trust), lis pendens,
attachment, cloud on title or assessment (other than current taxes not delinquent) to encumber the Premises. Beneficiary has not
consented and will not consent to the performance of any work or the furnishing of any materials which might be deemed to create
a lien or liens superior to the lien hereof.

 

(c)        Insurance.
Grantor shall keep the Premises insured for the benefit of Beneficiary against loss or damage by fire, lightning, windstorm, hail,
explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles, smoke and other such hazards, in an amount equal
to one hundred percent (100%) of full insurable value of the Premises. All insurance shall be in form and substance satisfactory
to and issued by insurance companies approved by Beneficiary. Grantor hereby assigns and shall deliver to Beneficiary, as collateral
and further security for the payment of the Secured Indebtedness, all policies of insurance which insure against any loss or damage
to the Premises, with loss payable to Beneficiary, without contribution by Beneficiary, pursuant to the New York Standard or other
mortgagee clause satisfactory to Beneficiary.

 

In
the event of a foreclosure of this Deed of Trust, the purchaser of the Premises shall succeed to all the rights of Grantor, and
to all policies of insurance hereby assigned to Beneficiary.

 

Should
any loss occur to the insured Premises, Beneficiary is hereby appointed attorney-in-fact for Grantor to make proof of loss if Grantor
fails to do so promptly, and to receipt for any sums collected under said policies, which sums, or any part thereof, at the option
of Beneficiary, may be applied either as payment on the Secured Indebtedness or to the restoration or repair of the Premises so
damaged or destroyed. Grantor promptly will give written notice to Beneficiary of any loss or damage to the Premises and will not
adjust or settle such loss without the written consent of Beneficiary. In the event of any default under this Deed of Trust or
the Notes, all right, title and interest of Grantor in and to any insurance policies then in force, and particularly to the unearned
premiums therein and existing claims thereunder, shall pass to Beneficiary, which, at its option and as attorney-in-fact for Grantor,
may make, settle and give binding acquittances for claims under said policies and may assign and transfer said policies or cancel
and surrender the same applying any unearned premiums in such manner as it may elect. In case of Grantor’s failure to keep
the Premises so insured, Beneficiary or its assigns, may, at its option (but shall not be required to) effect such insurance at
Grantor’s expense.

 

In
the event of any conflict between the terms of this Section 5(c) and Section 10 of the Construction Loan Agreement (the “Loan
Agreement”) executed by the parties of even date herewith, the terms of the Loan Agreement shall control.

 

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(d)        Preservation
and Maintenance of the Premises. Grantor shall maintain the Premises in good condition and repair, shall not commit or suffer
any waste, impairment or deterioration of the Premises, and shall comply with, or cause to be complied with, all statutes, ordinances
and requirements of any governmental authority relating to the Premises or any part thereof. Subject to the provisions of paragraph
5(f), Grantor shall promptly repair, restore, replace or rebuild any part of the Premises, now or hereafter encumbered by this
Deed of Trust, which may be affected by any eminent domain or condemnation proceeding. No part of the Premises, including but not
limited to, any building, structure, parking lot, driveway, landscape scheme, timber or other ground improvement, equipment or
other property, now or hereafter conveyed as security pursuant to this Deed of Trust, shall be removed, demolished or materially
altered without the prior written consent of Beneficiary. Grantor shall complete within a reasonable time and pay for any building,
structure or other improvement at any time in the process of construction on the Premises herein conveyed. Grantor shall not initiate,
join in, or consent to any change in any private restrictive covenant, zoning ordinance or other public or private restrictions
limiting or defining the uses which may be made of the Premises or any part thereof, without the prior written approval of Beneficiary,
not to be unreasonably withheld, conditioned or delayed. Trustee and/or Beneficiary and any persons authorized by Trustee and/or
Beneficiary shall have the right to enter and inspect the Premises and access thereto shall be permitted for that purpose.

 

(e)        Protection
of Beneficiary’s Security. If Grantor fails to perform the covenants and agreements contained in this Deed of Trust,
or if any action or proceeding is commenced which materially adversely affects Beneficiary’s interest in the Premises, including,
but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a debtor under applicable
bankruptcy laws, then Beneficiary, at Beneficiary’s option, without notice to Grantor, may make such appearances, disburse
such sums and take such action as is reasonably necessary to protect Beneficiary’s interest. Any reasonable amounts disbursed
by Beneficiary pursuant to this Deed of Trust, with interest thereon, shall become additional Secured Indebtedness of Grantor secured
by this Deed of Trust. Unless Grantor and Beneficiary agree to other terms of payment, such amounts shall be payable upon notice
from Beneficiary to Grantor requesting payment thereof, and shall bear interest from the date of disbursement at the highest contract
rate permissible by applicable law at such time. Nothing contained in this Article or in this Deed of Trust shall require Beneficiary
to insure the Premises, maintain or renew policies of insurance, pay taxes, discharge liens, pay any expense or do any act whatsoever
to protect or preserve the Premises.

 

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Additionally,
Beneficiary shall have the right, but not the obligation, after the Notice and Cure Period (as defined in the Loan Agreement),
to enter onto the Premises or to take such other actions as it deems necessary or advisable to clean up, remove, resolve or minimize
the impact of, or otherwise deal with, any Hazardous Material (as defined hereinafter) on the Premises or the violation of any
Environmental Laws (as defined hereinafter) upon its receipt of any notice from any person or entity asserting the existence of
any Hazardous Material or violation of any Environmental Laws on or pertaining to the Premises which, if true, could result in
an order, suit or other action against Grantor affecting any part of the Premises by any governmental agency or otherwise which,
in the sole opinion of Beneficiary could jeopardize Beneficiary’s security under this Deed of Trust. All reasonable costs
and expenses incurred by Beneficiary in the exercise of any such rights shall be secured by this Deed of Trust and shall be payable
by Grantor upon demand, together with interest thereon at a rate equal to the highest interest rate payable under the documents
and instruments evidencing the Secured Indebtedness. Any action taken hereunder by Beneficiary shall be taken for the sole purpose
of protecting Beneficiary’s security hereunder and shall not be interpreted as evidence of any management or ownership interest
on Beneficiary’s part.

 

(f)        Eminent
Domain or Condemnation. Notwithstanding any taking of any part of the Premises by eminent domain, alteration of the grade of
any street or other injury to, or decrease in value of, the Premises, by any public or quasi-public authority or corporation, Grantor
shall continue to pay principal and interest on the Secured Indebtedness, and any reduction in the Secured Indebtedness resulting
from the application by Beneficiary of any award or payment for such taking, alterations, injury or decrease in value of the Premises,
as hereinafter set forth, shall be deemed to take effect only on the date of such receipt; and said award or payment may, at the
option of Beneficiary, be retained and applied by Beneficiary toward payment of the Secured Indebtedness, or be paid over, wholly
or in part, to Grantor for the purpose of altering, restoring or rebuilding any part of the Premises which may have been altered,
damaged or destroyed as a result of any such taking, alteration of grade, or other injury to the Premises, or for any other purpose
or object satisfactory to Beneficiary, but Beneficiary shall not be obligated to assume the proper application of any amount paid
over to Grantor. If, prior to the receipt by Beneficiary of such award or payment, the Premises shall have been sold on foreclosure
of this Deed of Trust, Beneficiary shall have the right to receive said award or payment to the extent of any deficiency found
to be due upon such sale, with interest thereon at the maximum nonusurious rate of interest permitted to be charged at the time,
whether or not a deficiency judgment on this Deed of Trust shall have been sought or recovered or denied, and to the extent of
the reasonable counsel fees, costs and disbursements incurred by Beneficiary in connection with the collection of such award or
payment.

 

(g)        Inspection.
Beneficiary may make or cause to be made reasonable entries upon and inspections of the Premises.

 

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(h)        Transfer
of the Premises. In the absence of the Beneficiary’s prior written consent, if all or any part of the Premises or any
interest therein is sold, transferred, encumbered or restricted, including, without limitation, (a) the creation of a lien,
charge, restriction or encumbrance against the Premises whether or not subordinate to this Deed of Trust, (b) the execution of
a contract to sell, lease or otherwise dispose of all, part of, or any interest in, the Premises, unless contingent upon Beneficiary’s
consent, or (c) the filing of any tax lien, judgment lien or any other type of lien against the Premises which is not discharged
or contested as provided in the Loan Agreement, Beneficiary may, at any time after Beneficiary acquires actual knowledge of the
actual or attempted sale, transfer, disposition, encumbrance or restriction subject to the Notice and Cure Period in the Loan Agreement,
declare all Secured Indebtedness to be immediately due and payable. Notwithstanding the foregoing, Lender agrees to promptly review
easements that are customary in the development of projects similar to the Project, including without limitation utility easements,
and to grant its consent to such easements, provided that they are reasonably acceptable to Beneficiary in form and substance.
Further, transfers of membership interests in the borrowing entity (i) to family members or other entities or trusts for family
members for estate and planning purposes or pursuant to divorce settlement, (ii) among the members, (iii) upon death and (iv) which
in the aggregate do not exceed 49% and so long as control is still vested in Manager, shall be permitted without prior approval
or fee. For the avoidance of doubt, it shall not be deemed an Event of Default if there is a transfer of any interest of any entity
which owns a direct or indirect interest in Borrower, if Todd Jackovich, Tim Harvey and Jeff Hepper continue to own, in the aggregate,
the same percentage interest, directly or indirectly, in Borrower as such parties owned, in the aggregate, on the date hereof.

 

(i)        Discharge
Liens. Grantor will promptly pay and settle or cause to be removed all claims or liens against all or any part of the Premises
which affect the rights of Beneficiary hereunder or, at Beneficiary’s option, will provide Beneficiary with acceptable security
for the satisfaction thereof, and Grantor will appear in and defend any action or proceeding purporting to affect the Premises
or the lien of this Deed of Trust or the rights or powers of Beneficiary hereunder, and Grantor will pay all expenses incidental
thereto; and if it shall become necessary for Beneficiary to bring or defend any action to protect or establish any of its rights
hereunder, Grantor will pay (in addition to costs and expenses allowed by law), the reasonable costs of bringing or defending such
action, including reasonable and actual attorney’s fees. In the event acceleration of payment of the unpaid portion of the
Secured Indebtedness hereby is declared, but no sale is made, or if Beneficiary elects not to pursue its other remedies at law
or in equity, such acceleration shall be held for naught, and the Secured Indebtedness shall be deemed to mature as originally
provided in the instruments evidencing the Secured Indebtedness, but without waiving the right of Beneficiary again to declare
a default for the same or a different event of default.

 

(j)        Rents
During Insolvency Proceeding. Should the Premises be involved in any insolvency, receivership, bankruptcy, or other proceedings
affecting the possession of said Premises, it is further covenanted and agreed that Trustee or Beneficiary shall be entitled to
all of the rents, issues and profits realized from or during any such proceedings, whether or not there shall exist a default under
this Deed of Trust. Such rents shall be treated as cash collateral.

 

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(k)        Payment
of Secured Indebtedness. To pay to the Beneficiary, when due, the interest, principal and other sums constituting the Secured
Indebtedness.

 

(l)        Tax
and Insurance Escrow. If required by Beneficiary, to make monthly deposits with Beneficiary, in a non-interest bearing account,
at the same times as installments of principal and/or interest are payable, of a sum equal to one twelfth (1/12th) of
the estimated yearly taxes and assessments levied or to be levied against the Property and insurance premiums, all as estimated
by Beneficiary. Such deposits shall be applied by Beneficiary to the payment of such taxes and assessments and insurance premiums
when due. Any insufficiency of such account to pay such taxes, assessments and insurance premiums when due shall be payable by
Borrower on demand. Upon any default in the payment of the indebtedness secured hereby, Beneficiary may apply any funds in said
account to any obligation then due under this deed of trust. Beneficiary shall have the right to hold the said deposits, without
interest or earnings, in any manner which Beneficiary selects and may commingle the deposits in common accounts with other money
held by Beneficiary. If the amount of the deposits held by Beneficiary shall exceed at any time the amount deemed necessary by
Beneficiary to provide for such taxes, assessments, and insurance, as they fall due, such excess shall be credited to Borrower
in such manner as Beneficiary may determine. Upon payment in full of all sums secured by this deed of trust, Beneficiary shall
credit to Borrower any of such deposits then held by Beneficiary. Beneficiary may at any time hereafter at its option waive, and
after such waiver reinstate, any and all of the provisions of this paragraph with respect to the making of monthly deposits for
estimated yearly taxes, assessments and insurance premiums by notifying Borrower of such waiver or reinstatement. While any such
waiver is in effect Borrower will pay taxes, assessments and insurance premiums for which monthly deposits have been waived when
the same become due.

 

(m)        Compliance
with Laws; No Hazardous Waste. Except as set forth in the Loan Agreement, Grantor represents, warrants and agrees that (a)
no Hazardous Material (as hereinafter defined) has been used or placed on the Premises in violation of any applicable Environmental
Laws (as hereinafter defined); (b) no notice has been received with regard to any Hazardous Material on the Premises; (c) the Premises
are presently in compliance with all Environmental Laws; (d) no action, investigation or proceeding is pending or to Grantor’s
knowledge threatened which seeks to enforce any right or remedy against Grantor or the Premises under any Environmental Law; (e)
Grantor shall permit no installation or placement of Hazardous Material on the Premises in violation of Environmental Laws; (f)
Grantor shall permit no release of Hazardous Material onto or from the Premises; (g) Grantor shall cause the Premises to comply
with applicable Environmental Laws and shall keep the Premises free and clear of any liens imposed pursuant to any applicable Environmental
Laws; (h) all licenses, permits and other governmental or regulatory actions necessary for the Premises to comply with Environmental
Laws (the “Permits”) shall be obtained and maintained and Grantor shall assure compliance therewith; and (i) Grantor
shall give the Beneficiary prompt written notice if Grantor receives any notice with regard to Hazardous Material on, from or affecting
the Premises and shall conduct and complete all investigations and all cleanup actions necessary to remove, in accordance with
applicable Environmental Laws, such Hazardous Material from the Premises. Grantor shall indemnify and hold harmless the Beneficiary
from and against all losses, expenses (including, without limitation, attorneys’ fees) and claims of every kind suffered
by or asserted against Beneficiary as a direct or indirect result of (a) the presence on or release from the Premises of any Hazardous
Material, whether or not caused by Grantor, (b) the violation of any Environmental Laws applicable to the Premises, whether or
not caused by Grantor, (c) the failure by Grantor to comply fully with the terms and provisions of this paragraph, or (d) any warranty
or representation made by Grantor in this paragraph being false or untrue in any material respect. For purposes of this Instrument,
“Hazardous Material” means polychlorinated biphenyls, petroleum, flammable explosives, radioactive materials, asbestos
and any hazardous, toxic or dangerous waste, substance or material defined as such in (or for purposes of) the Environmental Laws
or listed as such by the Environmental Protection Agency. “Environmental Laws” means any current or future governmental
law, regulation or ruling applicable to environmental conditions on, under or about the Premises including, without limitation,
the Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, The Superfund
Amendment and Reauthorization Act of 1986, the Toxic Substances Control Act, the Clean Air Act, the Clean Water Act, or the Tennessee
Hazardous Waste Management Act. Grantor’s obligations under this paragraph shall survive a foreclosure of or exercise of
power of sale under this Instrument or the delivery of a deed in lieu of foreclosure.

 

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6.           Events
of Default and Acceleration. The occurrence of any of the following events shall constitute an Event of Default hereunder:

 

(a)        A
default shall occur in the payment of the principal of and/or interest on the Secured Indebtedness or any portion thereof when
and as the same shall become due and payable, subject to any applicable notice and cure provisions contained in the Loan Agreement;

 

(b)        Grantor
shall default in the payment and/or performance of its obligations under, or a default or event of default shall occur under, the
Notes, this Deed of Trust, the Loan Agreement executed in connection herewith, or any other instrument or document now or hereafter
further evidencing, securing or otherwise related to the Secured Indebtedness or any portion thereof, subject to any applicable
notice and cure provisions contained in the Loan Agreement;

 

(c)        Grantor
shall abandon the Premises;

 

(d)        Grantor
shall cease to have legal existence or be liquidated, dissolved, partitioned or terminated, or its charter or certificate of authority
thereof shall expire or be revoked;

 

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(e)        Grantor,
or any other person or entity now or hereafter liable to pay all or any portion of the Secured Indebtedness (sometimes hereinafter
referred to as an “Obligor”), shall fail to pay or admit in writing that it is generally not paying its debts as they
become due, or make a general assignment for the benefit of creditors or commit any act of bankruptcy; or a receiver, trustee or
other custodian shall be appointed for Grantor, any Obligor or any of the property thereof (including without limitation the Premises);
or any proceedings under bankruptcy laws or other laws of general application to creditors shall be brought by or against Grantor
or any Obligor; or Grantor or any Obligor shall file for any form of reorganization or arrangement under any bankruptcy law; provided
that any involuntary bankruptcy brought against Grantor or Obligor shall not be an Event of Default if dismissed within sixty (60)
days of the filing thereof;

 

(f)        should
any material representation or warranty of Grantor herein contained, or contained in any instrument, transfer, conveyance, assignment
or loan agreement given with respect to the Secured Indebtedness, reasonably appear to be untrue or misleading in any material
aspect;

 

(g)        should
any federal or state tax lien or claim of lien for labor or material be filed of record against Grantor or the Premises and not
be removed by payment or bond within thirty (30) days from date of recording; or

 

(h)        subject
to any applicable notice, cure or grace period, the Grantor fails to make any payment due on any indebtedness or security or any
event shall occur or any condition shall exist in respect of any indebtedness or security of the Grantor, or under any agreement
securing or relating to such indebtedness or security, the effect of which is to cause or to permit any holder of such indebtedness
or other security or a trustee to cause (whether or not such holder or trustee elects to cause) such indebtedness or security,
or a portion thereof, to become due prior to its stated maturity or prior to its regularly scheduled dates of payment.

 

Upon the occurrence
of any Event of Default described in subparagraph (e) hereof, the Secured Indebtedness shall be immediately due and payable in
full; and upon the occurrence of any other Event of Default described above, Beneficiary at any time thereafter may, at its option,
accelerate the maturity of the Secured Indebtedness; all without notice of any kind.

 

7.           Remedies.
Upon the occurrence of any Event of Default and the acceleration of the maturity of the Secured Indebtedness, the Beneficiary,
or other agent of the Beneficiary, or the Trustee may take any one or more of the following actions:

 

(a)        enter
upon and take possession of the Premises without applying for or obtaining the appointment of a receiver;

 

(b)        employ
a managing agent of the Premises and let the same, either in Trustee’s own name, in the name of Beneficiary or in the name
of Grantor, and receive the rents, incomes, issues and profits of the Premises and apply the same, after payment of all necessary
charges and expenses, on account of the Secured Indebtedness;

 

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(c)        pay
any sums in any form or manner deemed expedient by Beneficiary to protect the security of this Deed of Trust or to cure any Event
of Default other than payment of interest or principal on the Secured Indebtedness;

 

(d)        foreclose
this Deed of Trust. The Trustee hereunder, or his agent or successors, at the request of the Beneficiary, or the representatives
or assigns of the Beneficiary, after giving notice of the time and place of sale by publication of such at least three (3) different
times in some newspaper published in the county in which the Premises are primarily situated, the first of which publications shall
be at least twenty (20) days previous to said sale, shall, at the date and time stated in the notice, and at the door of the County
Courthouse in said County at which foreclosure sales are customarily held or at the election of Beneficiary at the Premises, proceed
to sell the Premises at public auction for cash (or for credit against the Secured Indebtedness if the Beneficiary is the highest
bidder) or upon such other terms that are satisfactory to Trustee and Beneficiary, and in bar of the equity of redemption and all
rights of redemption, statutory or otherwise (including, without limitation, those rights of redemption contained in Tennessee
Code Annotated Section 66-8-101 et seq.), homestead, dower, elective share, rights of appraisement or valuation,
and all other rights and exemptions of every kind, all of which are hereby waived. Trustee shall apply the proceeds from such sale
- First to the payment of all costs and expenses of such sale, including attorney and trustee fees and expenses incurred in connection
with the sale and Grantor’s default; Second, to the payment of the Secured Indebtedness, including any and all advances made
under the terms hereof with interest thereon; Third, the surplus, if any, to the parties legally entitled thereto. In the event
the Trustee cannot determine the person or persons to whom the surplus should be paid or a controversy exists with respect to the
surplus, the Trustee may pay the surplus into a court of competent jurisdiction in an interpleader action and all expenses of such
action, including legal fees incurred by Beneficiary and Trustee, shall be paid from the surplus or, if the surplus is insufficient,
by Grantor.

 

In
accordance with Tennessee Code Annotated Section 35-5-101, Trustee shall send to Grantor (and any co-debtor) on or before the date
of the first publication of the notice of sale referenced above, a copy of the notice required in Tennessee Code Annotated Section
35-5-104.

 

The
foreclosure sale may be adjourned from time to time by Trustee, or his agent or successors, at the place of sale on the date the
sale is originally set, or on the date of any adjournment thereof, and may be reset at a later date or dates, by announcement without
any additional publication.

 

Beneficiary
or Beneficiary’s designee may purchase the Premises at any sale. In the event Beneficiary purchases the Premises at the Trustee’s
sale, to the extent Beneficiary’s bid price exceeds the Secured Indebtedness, Beneficiary shall pay Trustee cash equal to
such excess.

 

    	11

    	 

    

 

The
Premises or any part thereof may be sold in one parcel, or in such parcels, manner or order as Beneficiary in its sole discretion
may elect, and one or more exercises of the power herein granted shall not extinguish or exhaust the power unless the entire Premises
are sold or the Secured Indebtedness paid in full.

 

Trustee
may delegate, in his sole discretion, any authority possessed under this instrument, including the authority to conduct a foreclosure
sale. Without limiting the foregoing, Trustee may retain a professional auctioneer to preside over the bidding, and the customary
charge for the auctioneer’s services shall be paid from sale proceeds as an expense of sale.

 

Following
a Trustee’s sale of the Premises, Trustee shall deliver to the purchaser a Trustee’s Deed conveying the property so
sold without any covenant or warranty, expressed or implied. The recitals in the Trustee’s Deed shall be prima facie evidence
of the truth of the statements made therein.

 

Grantor
further agrees that in case of any sale hereunder, it will at once surrender possession of the Premises, and will from that moment
become and be the tenant at will of the purchaser, and removable by process as upon a forcible and unlawful detainer suit, hereby
agreeing to pay such purchaser the reasonable rental value of the Premises after such sale plus all expenses, including legal fees,
incurred by the purchaser.

 

Neither
the Beneficiary or the Trustee shall be required to give any notice of the foreclosure sale to the Grantor.

 

(e)        institute
appropriate proceedings of foreclosure in equity or at law. Upon the institution of such proceedings, Trustee shall, upon application
therefor, without notice, be entitled to have a receiver appointed to take possession of the Premises, and Trustee or Beneficiary
shall be entitled to all of the rents, issues and profits arising therefrom during the pendency of any such foreclosure proceedings.

 

(f)        take
any other action it may be legally entitled to take to protect its rights.

 

8.        Miscellaneous
Provisions.

 

(a)        Trustee’s
Compensation. Trustee is and shall be entitled to reasonable compensation for all services rendered hereunder, or in connection
with the trust herein provided, and in addition, Trustee shall be entitled to receive a reasonable sum for an examination of the
title at the date of sale to assure himself as to what person is entitled to receive any surplus which may remain after discharging
the liens hereby created. Trustee’s compensation, together with any and all necessary and reasonable expenses, charges, counsel
fees, including fees for legal advice concerning his rights and duties in the Premises, and other disbursements incurred by Trustee
in discharge of his duties as such, shall be a further charge and lien upon said Premises and enforced as part of the Secured Indebtedness.

 

    	12

    	 

    

 

(b)        Substitute
Trustee. Beneficiary shall at any time and from time to time have the irrevocable right to remove Trustee herein named without
notice or cause and to appoint his successor by an instrument in writing, duly acknowledged, in such form as to entitle such written
instrument to be recorded in Tennessee (or any other state where the Premises may be located), and in the event of the death or
resignation of Trustee herein named, Beneficiary shall have the right to appoint his successor by such written instrument, and,
without conveyance of the Premises, any Trustee so appointed (“Substitute Trustee”) shall be vested with the title
to the Premises, and shall possess all the powers, duties and obligations herein conferred on Trustee in the same manner and to
the same extent as though he were named herein as Trustee. Neither the original Trustee nor any Substitute Trustee shall be required
to make bond, oath or file an inventory.

 

(c)        Future
Advances. Upon request of Grantor, and at Beneficiary’s option prior to release of this Deed of Trust, Beneficiary may
make future advances to Grantor. Such future advances, with interest thereon, shall be secured by this Deed of Trust unless the
parties shall agree otherwise in writing.

 

(d)        Marshalling
Not Required. If the Secured Indebtedness, or any part thereof, is now or hereafter further secured by chattel mortgages, other
deeds of trust, security interests, pledges, contracts of guaranty, endorsements, assignments of leases or other securities, Beneficiary
may, at its option, exhaust any one or more of said securities and the security hereunder either concurrently or independently,
and in such order as it may determine, and Beneficiary shall not be required to marshall assets.

 

(e)        Sale
by Foreclosure of Prior Encumbrances. In the event that this Deed of Trust shall now or at any time after the date hereof be
subordinate to any other encumbrance on the Premises, Grantor hereby agrees that the lien of this conveyance shall extend to the
entire interest of Grantor in the Premises conveyed hereby, and shall extend to the interest of Grantor in the proceeds from any
sale of the Premises, whether by foreclosure of any such prior encumbrance or otherwise, to the extent any such proceeds exceed
the amount necessary to satisfy such prior encumbrance(s). Any trustee or other person conducting any such sale or foreclosure
is hereby directed to pay such excess proceeds to Beneficiary to the extent necessary to pay the Secured Indebtedness in full,
notwithstanding any provision to the contrary contained in any prior encumbrance.

 

(f)        Extensions,
Etc. Beneficiary may without the consent of any other parties, agree to extend the time for payment of all or any part of the
Secured Indebtedness, or reduce, rearrange or otherwise modify the terms of payment thereof, or accept a renewal note or notes
therefor, without notice to or the consent of any junior lienholder or any other person having an interest in the premises subordinate
to the lien of this Deed of Trust. No such extension, reduction, modification or renewal shall affect the priority of this Deed
of Trust or impair the security hereof in any manner whatsoever, or release, discharge or otherwise affect in any manner the personal
liability of Grantor to Beneficiary or the liability of any other person now or hereafter liable for payment of the Secured Indebtedness
or any part thereof.

 

(g)        Further
Assurances. Grantor agrees to furnish Trustee and Beneficiary with such further instrument, documents and certificates and
to take such further actions as Beneficiary may deem necessary or desirable in order to perfect and/or maintain the perfection
and priority of the lien of this Deed of Trust on the Premises.

 

    	13

    	 

    

 

(h)        Greater
Estate. In the event that Grantor is the owner of a leasehold estate or any other estate less than a fee simple with respect
to any portion of the Premises and, prior to the satisfaction of the Secured Indebtedness and the cancellation of this Deed of
Trust of record, Grantor obtains any greater estate or interest in the Premises, then such greater estate shall automatically and
without further action of any kind on the part of Grantor pass to Trustee and be and become subject to the lien and all the terms
of this Deed of Trust.

 

(i)        No
Merger. Acquisition of the Premises by the Beneficiary shall not effect a merger of this Deed of Trust which shall not be released
except by a Release of Lien executed by Beneficiary and filed in the appropriate public register’s office.

 

(j)        Modification
of Deed of Trust; Waiver. No amendment to or modification of this Deed of Trust or waiver of any of the terms hereof shall
be valid or effective unless the same is in writing signed by and between Grantor and Beneficiary (without necessity of joinder
therein by the Trustee).

 

(k)        Time
is of Essence. Grantor agrees that where, by the terms hereof or the Notes, a day is named or a time as fixed for the payment
of any sum of money or the performance of any agreement, the time stated is an important part of the consideration and is of the
essence of the whole contract.

 

(l)        Forbearance
by Beneficiary Not a Waiver. Any indulgence or departure at any time and from time to time by Beneficiary from any of the provisions
hereof, or of any obligation hereby secured, shall not modify the same or relate to the future or waive future compliance therewith
by Grantor.

 

(m)        Remedies
Cumulative. The rights of Trustee and Beneficiary, granted and arising under the clauses and covenants contained in this Deed
of Trust, shall be separate, distinct and cumulative of other powers and rights herein granted and all other rights which Trustee
and Beneficiary may have under any other loan documents or at law or in equity, and none of them shall be in exclusion of the others;
and all of them are cumulative to the remedies for collection of indebtedness, enforcement of rights under security deeds, and
preservation of security as provided at law. No act of Trustee or Beneficiary shall be construed as an election to proceed under
any one provision herein or under the Notes to the exclusion of any other provisions, or an election of remedies to the bar of
any other remedy allowed at law or in equity, anything herein or otherwise to the contrary notwithstanding.

 

(n)        Right
to Bring Suit. Beneficiary shall have the right from time to time to sue for any sums, whether interest, principal or any installment
of either or both, taxes, penalties, or any other sums required to be paid under the terms of this Deed of Trust, as the same become
due, without regard to whether or not all of the Secured Indebtedness shall be due on demand, and without prejudice to the right
of Trustee and/or Beneficiary thereafter to enforce any appropriate remedy against Grantor, including an action of foreclosure,
or any other action, for a default or defaults by Grantor existing at the time such earlier action was commenced.

 

    	14

    	 

    

 

(o)        Appointment
of Receiver. Grantor acknowledges the propriety of, and consents to, the appointment of a receiver for the Premises in the
event that any action is commenced involving the premises or to foreclose or exercise the power of sale under this Deed of Trust.

 

(p)        Notice.
Every provision for notice and demand or protest shall be deemed fulfilled by written notice personally served on one or more of
the persons who shall at the time hold the record title to the Premises, or on their heirs or successors, or mailed by depositing
it in any post office station or letter box, enclosed in a postpaid envelope addressed to such person or persons, or their heirs
or successors, at his, their or its address last known to Trustee and/or Beneficiary, or addressed to the street address of the
Premises; provided, notice of foreclosure shall be satisfied by the publication of notice of sale in the manner described in this
Deed of Trust.

 

(q)        Governing
Law. The validity, construction and effect of this Deed of Trust, the Notes and of any other writing executed in connection
herewith or secured hereby shall be governed by the laws of the State of Tennessee.

 

(r)        Severability.
If any provision(s) of this Deed of Trust or the application thereof to any person or circumstance shall be invalid or unenforceable
to any extent, the remainder of this Deed of Trust and the application of such provision(s) to other persons or circumstances shall
not be affected thereby and shall be enforced to the greatest extent permitted by law.

 

(s)        Successors
and Assigns Bound; Captions; Grammatical Construction. The covenants and agreements herein contained shall bind, and the rights
hereunder shall inure to, the respective successors and assigns of Beneficiary, Trustee and Grantor. The captions and headings
of the paragraphs of this Deed of Trust are for convenience only and are not to be used to interpret or define the provisions hereof.
The words “Grantor”, “Beneficiary” and “Trustee” whenever used herein shall include all individuals,
corporations (and if a corporation, its officers, employees, agents or attorneys) and any and all other persons or entities, and
the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, and all those
holding under any of them, and the pronouns used herein shall include, when appropriate, either gender and both singular and plural.

 

(t)        Additional
Filings. Grantor hereby authorizes Beneficiary to file for recordation an Addendum to this Deed of Trust noting an increase
in the amount of the Secured Indebtedness and paying any additional transfer taxes as may be due in respect thereof.

 

(u)        Fixture
Filing. This Deed of Trust constitutes a financing statement filed as a fixture filing with respect to any and all fixtures
located on the Premises.

 

[Remainder of page
intentionally left blank. Signatures on following page.]

 

    	15

    	 

    

 

IN WITNESS WHEREOF,
Grantor has executed this Deed of Trust on the 18th day of October, 2012.

 

GRANTOR:

 

23HUNDRED, LLC, a Delaware
limited liability company

 

	 	By:	BR Stonehenge 23Hundred JV, LLC, a Delaware limited liability company, as its sole Member and Manager

 

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

 

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

 

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

 

	 	By:	/s/ Todd Jackovich
	 	 	Todd Jackovich, as its Manager

 

    	16

    	 

    

 

Exhibit
A

 

Legal
Description

 

Land located in the City
of Berry Hill, Davidson County, Tennessee, being described in Deed Book 4065, page 206, Register’s Office for Davidson County,
Tennessee, (“RODC”) and being more particularly described as follows:

 

Remote point of beginning
being at the intersection of the South right of way of Bradford Avenue with the East right of way of Franklin Pike (8th
Avenue South); thence North 71 degrees 0 minutes 43 seconds East 24.78 feet to a punch being the TRUE POINT OF BEGINNING; thence
along said right of way of Bradford Avenue, North 71 degrees 00 minutes 43 seconds East a distance of 325.34 feet to a rebar; thence
leaving said right of way and along Melpark Properties Management L.P. in Deed Book 11037, page 674, RODC, TN, South 18 degrees
32 minutes 05 seconds East a distance of 367.81 feet to a concrete monument on the North right of way of Melpark Drive; thence
along said Melpark Drive the following courses and distances: South 71 degrees 04 minutes 25 seconds West a distance of 150.08
feet to a rebar; thence, South 74 degrees 00 minutes 07 seconds West a distance of 135.19 feet to a rebar; thence, South 71 degrees
07 minutes 14 seconds West a distance of 40.02 feet to a rebar, thence with a curve to the right having a radius of 25 feet; a
central angle 89 degrees 58 minutes 46 seconds and an arc length of 39.26 feet to a concrete monument on the East right of way
of Franklin Pike; thence along said right of way Franklin Pike, North 18 degrees 30 minutes 00 seconds West 310.77 feet to a rebar;
thence with a curve to the right having a radius of 25 feet a central angle of 89 degrees 21 minutes 25 seconds and an arc length
of 38.99 feet to the POINT OF BEGINNING; as shown on survey by Hopkins Surveying Group Drawing Number 2010-84-3 dated April 30,
2010.

 

Being the same property
conveyed to 23Hundred, LLC by deed from Horsepower, J.V. of record as Instrument No. ____________________, Register’s Office
for Davidson County, Tennessee.

 

    	17

    	 

    

 

EXHIBIT B

 

Encumbrances

 

		1.	Taxes for the year 2012 a lien, not yet due and payable.

 

		2.	15 foot Easement for sewer adjacent to Bradford Avenue at the northeast corner of the premises
as stated in Deed of record in Book 4065, Page 206, in the Register’s Office for Davidson County, Tennessee.

 

		3.	Easement granted to Southern Bell Telephone & Telegraph Company of record in Book 4245, Page
488, in the Register’s office for Davidson County, Tennessee.

 

 

    	18LIMITED LIABILITY
COMPANY

 

OF

 

BR BERRY
HILL MANAGING MEMBER, LLC

 

A DELAWARE
LIMITED LIABILITY COMPANY

 

DATED AS
OF OCTOBER 18, 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	8
	 	 	 
	2.3	Principal Office	8
	 	 	 
	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	9
	 	 	 
	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	12
	 	 	 
	5.6	Capital Accounts	13

 

    	 

    	 

    

 

	5.7	New Members	13
	 	 	 
	Section 6.      Distributions	13
	 	 	 
	6.1	Distribution of Distributable Funds	13
	 	 	 
	Section 7.      Allocations	14
	 	 	 
	7.1	Allocation of Net Income and Net Losses Other than in Liquidation	14
	 	 	 
	7.2	Allocation of Net Income and Net Losses in Liquidation	14
	 	 	 
	7.3	U.S. Tax Allocations	14
	 	 	 
	Section 8.      Books, Records, Tax Matters and Bank Accounts	15
	 	 	 
	8.1	Books and Records	15
	 	 	 
	8.2	Reports and Financial Statements	15
	 	 	 
	8.3	Tax Matters Member	16
	 	 	 
	8.4	Bank Accounts	16
	 	 	 
	8.5	Tax Returns	16
	 	 	 
	8.6	Expenses	17
	 	 	 
	Section 9.      Management	17
	 	 	 
	9.1	Management	17
	 	 	 
	9.2	Affiliate Transactions	17
	 	 	 
	9.3	Other Activities	18
	 	 	 
	9.4	Operation in Accordance with REOC/REIT Requirements	18
	 	 	 
	9.10	FCPA	20

 

    	2

    	 

    

 

	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	27
	 	 	 
	13.1	Limitations	27
	 	 	 
	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

 

    	3

    	 

    

 

	Section 16.      Mediation and Arbitration of Disputes	33
	 	 	 
	16.1	Events Giving Rise to Mediation or Arbitration	33
	 	 	 
	16.2	Selection of Arbitrators	33
	 	 	 
	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	35
	 	 	 
	17.3	Successors	35
	 	 	 
	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	36
	 	 	 
	17.10	No Third Party Rights	36
	 	 	 
	17.11	Incorporation by Reference	36
	 	 	 
	17.12	Limitation on Liability	37

 

    	4

    	 

    

 

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

 

    	5

    	 

    

 

BR BERRY HILL MANAGING MEMBER, LLC

LIMITED LIABILITY COMPANY AGREEMENT

 

This Limited Liability
Company Agreement (this “Agreement”) is adopted, executed, and agreed to effective on October 18, 2012, by and
among Bluerock Special Opportunity + Income Fund III, LLC, a Delaware limited liability company (“SOIF III”),
and BEMT Berry Hill, LLC, a Delaware limited liability company (“BEMT”), as Members (together, the “Members”),
and BEMT, as Manager (the “Manager”).

 

WITNESSETH :

 

WHEREAS, BR Berry Hill
Managing Member, LLC, a Delaware limited liability company (the “Company”), was formed on October 3, 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).

 

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

 

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

 

    	2

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Development
Agreement” shall mean that certain development agreement attached hereto as Exhibit C to be entered into between
23Hundred, LLC, a Delaware limited liability company (a Subsidiary of Stonehenge Bluerock Berry Hill JV), as owner, and Developer,
as developer, pursuant to which Developer will provide certain development services for the Properties.

 

    	3

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“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.

 

    	4

    	 

    

 

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

 

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

 

	 	(i)	any merger, conversion or consolidation involving the Company or any Subsidiary or the sale, lease, transfer, exchange or other disposition of all or substantially all of the Company’s assets, including the Company Interest, or all of the Interests of the Members in the Company, in one or a series of related transactions;
	 	 	 
	 	(ii)	except as expressly provided in 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;
	 	 	 
	 	(x)	giving, granting or undertaking any options, rights of first refusal, deeds of trust, mortgages, pledges, ground leases, security or other interests in or encumbering the Property, any portion thereof or any other material assets;

 

    	5

    	 

    

 

	 	(xi)	selling, conveying, refinancing or effecting any material asset of the Company, including the Company Interest, or any portion thereof or the entering into of any agreement, commitment or assumption with respect to any of the foregoing;
	 	 	 
	 	(xii)	confessing a judgment against the Company (or any Subsidiary), submitting a Company claim to arbitration or engaging, terminating and/or replacing counsel to defend or prosecute on behalf of the Company any action or proceeding;
	 	 	 
	 	(xiii)	on behalf of the Company, acquiring by purchase, ground lease or otherwise, any real property or other material asset or the entry into of any agreement, commitment or assumption with respect to any of the foregoing, or the making or posting of any deposit (refundable or non-refundable);
	 	 	 
	 	(xiv)	taking any action by the Company that is reasonably likely to result in any Member or any of its Affiliates having individual liability under any so called “bad boy” guaranties or similar agreements provided to third party lenders in respect of financings relating to the Company, the Subsidiaries or any of their assets which provide for recourse as a result of willful misconduct, fraud or gross negligence or failure to comply with the covenants or any other provisions of such “bad boy” guaranties;
	 	 	 
	 	(xv)	the amount of, whether and when to make, contributions to the Company (other than the contributions under Section 5.1(a) made contemporaneously with the execution of this Agreement) and Distributions by the Company; or
	 	 	 
	 	(xvi)	amendment of the Company’s Certificate of Formation or this Agreement;.

 

“Management Committee”
shall mean the management committee of Stonehenge Bluerock Berry Hill JV as provided in Section 5.03.2 of the Stonehenge Bluerock
Berry Hill 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).

 

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

 

    	6

    	 

    

 

“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 Stonehenge Bluerock Berry Hill Operating Agreement.

 

“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.

 

“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).

 

    	7

    	 

    

 

“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 provided in Section 12.2(b)(i).

 

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

 

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

 

“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).

 

Section
2.             Organization of the Company.

 

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

 

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 Manager may at
any time on five (5) days prior notice to all Members change the location of the Company’s registered office or change the
registered agent.

 

2.3           Principal
Office. The principal address of the Company shall be c/o Bluerock Real Estate, L.L.C., 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 Manager from time to time.

 

    	8

    	 

    

 

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

 

2.5           Term.
The Company shall continue in existence from the date hereof until October 31, 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:

 

(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:

 

    	9

    	 

    

 

(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 Manager from time to time as and to the extent capital is necessary
to effect an investment. Except as otherwise agreed by the Members, such additional Capital Contributions shall be in an amount
for each Member equal to the product of the amount of the aggregate Capital Contribution called for multiplied by twenty-nine percent
(29%) in the case of SOIF III and seventy-one percent (71%) 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:

 

    	10

    	 

    

 

(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;

 

(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.

 

    	11

    	 

    

 

(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.

 

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.

 

    	12

    	 

    

 

5.6           Capital
Accounts. A separate capital account (the “Capital Account”) shall be maintained for each Member in accordance
with Section 1.704-1(b)(2)(iv) of the Regulations. 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 Manager, a principal purpose of the use of
the flow-through entity is to permit the Company to satisfy the 100-member limitation.

 

Section
6.             Distributions.

 

6.1         Distribution
of Distributable Funds

 

(a)          The
Manager shall calculate and determine the amount of Distributable Funds for each applicable period. Except as provided in Sections
5.2(b), 6.1(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
Manager.

 

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

 

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

 

Section
7.             Allocations.

 

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

 

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

 

7.3           U.S.
Tax Allocations.

 

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

 

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(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 Manager, and all such books and records (and the dealings and other affairs of the Company and
its Subsidiaries, including Stonehenge Bluerock Berry Hill JV) shall be available to any Member at such location for review, investigation,
audit and copying, at such Member’s sole cost and expense, during normal business hours on at least twenty-four (24) hours
prior notice.

 

8.2           Reports
and Financial Statements.

 

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

 

(i)          An
unaudited balance sheet of the Company;

 

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

 

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

 

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

 

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

 

(d)          At
the expense and cost of BEMT, the Manager will use its 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.

 

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

 

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

 

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

 

Section
9.             Management.

 

9.1           Management.

 

(a)          The
Company shall be managed by BEMT (the “Manager”). To the extent that BEMT or a BEMT Transferee Transfers all or a portion
of its Interest in accordance with Section 12 to a BEMT Transferee, such BEMT Transferee may be appointed as an additional Manager
under this Section 9.1(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 Stonehenge Bluerock Berry
Hill JV, 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 Stonehenge Bluerock Berry Hill JV.

 

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

 

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

 

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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.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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(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).

 

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.

 

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(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

 

(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.

 

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(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.

 

(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.

 

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(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.

 

		(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.

 

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		(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 Manager, no
Member shall Transfer all or any part of its Interest, whether legal or beneficial, in the Company, and any attempt to so Transfer
such Interest (and such Transfer) shall be null and void and of no effect. Notwithstanding the foregoing, either Member shall have
the right, with the consent of the other Member, at any time to pledge to a lender or creditor, directly or indirectly, all or
any part of its Interest in the Company for such purposes as it deems necessary in the ordinary cause of its business and operations.

 

12.2        Affiliate
Transfers.

 

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

 

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

 

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(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) BEMT or any Person that is directly or indirectly owned by BEMT; (B) Bluerock Special Opportunity
+ Income Fund, LLC (“SOIF”) or any Person that is directly or indirectly owned by SOIF; and/or (C) Bluerock
Special Opportunity + Income Fund II, LLC (“SOIF II”) or any Person that is directly or indirectly owned by SOIF II
(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) SOIF or any Person that is directly or indirectly owned by SOIF; (B) SOIF II or any Person that is directly
or indirectly owned by SOIF II; and/or (C) SOIF III or any Person that is directly or indirectly owned by 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

 

(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);

 

    	26

    	 

    

 

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

 

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

 

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

 

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

 

Section
13.           Dissolution.

 

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

 

    	27

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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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.

 

(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.

 

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(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.

 

(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.

 

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(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.

 

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.

 

    	32

    	 

    

 

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

 

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

 

    	33

    	 

    

 

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:

 

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.

 

    	34

    	 

    

 

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.

 

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.

 

    	35

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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.

 

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

 

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

 

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

 

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

 

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.

 

    	37

    	 

    

 

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 Berry Hill, 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 Berry Hill 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	 	$	1,547,507.23	 	 	 	29.0	%
	 	 	 	 	 	 	 	 	 
	BEMT Berry Hill, LLC	 	$	3,788,724.60	 	 	 	71.0	%

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