Document:

Exhibit 10.205

 

DEVELOPMENT AGREEMENT

 

THIS DEVELOPMENT AGREEMENT,
made and entered into this 9th day of January, 2015, by and between BR Bellaire Blvd, LLC, a Delaware limited liability
company (hereinafter referred to as “Owner”), and MAPLE MULTI-FAMILY OPERATIONS, L.L.C., a Delaware limited
liability company (hereinafter referred to as “Developer”).

 

WITNESSETH:

 

WHEREAS, Owner is the owner
of a ground leasehold interest in those certain tracts or parcels of land located lying and being in Houston, Texas and being more
particularly described on Exhibit A attached hereto and by this reference made a part hereof (the “Property”);

 

WHEREAS, Owner is desirous
of engaging Developer as an independent contractor for the purpose of performing the Development Work (defined herein) upon the
terms, conditions and covenants herein described; and

 

WHEREAS, Developer is desirous
of performing the Development Work as an independent contractor of Owner.

 

NOW, THEREFORE, for and
in consideration of the above premises and the mutual promises, obligations and agreements contained herein, Owner and Developer,
intending to be legally bound, do hereby agree as follows:

 

ARTICLE 1

DEFINITIONS

 

As used herein, the following
terms shall have the following meanings:

 

“Affiliate”
means, as to any Person, (i) in the case of an individual, any relative of such Person (i.e. a sibling of such Person, a descendant
of such Person or any of such Person’s siblings, or the spouse of any of them) and (ii) any Entity controlling, controlled
by or under common control with such Person.

 

“Agreement”
shall mean this Agreement, together with all exhibits attached hereto, as amended from time to time.

 

“Architect”
shall mean EDI International, Inc.

 

“Architect’s
Contract” shall mean the architect’s contract entered into by Owner and Architect providing for the development
of the plans, drawings and specifications for the Project and contract administration for the construction of the Project.

 

“BR Investor”
shall mean BR Southside Member, LLC, a Delaware limited liability company.

 

“Budget Category”
shall mean the line item categories of costs and/or expenses set forth in the Development Budget.

 

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“Business Day”
means a day which is not a Saturday or Sunday or a legally recognized public holiday in the United States of America, the State
of Texas or the State of New York.

 

“Completion Date”
shall mean, with respect to the Development Work, the date upon which the last of the following shall have occurred: (i) the Architect
has certified that the construction of the Project has been substantially completed in accordance with the Plans and Specifications
(subject to completion of punch list items estimated to cost not more than $200,000); and (ii) a certificate of occupancy or equivalent
documentation has been issued with respect to the Project by appropriate governmental agencies.

 

“Completion Milestones”
means, for each of the phases of the Project identified in the table below, the date for such phase set forth in the table below,
as extended for delays resulting from Force Majeure Events of which Developer promptly notifies Owner:

 

	Begin demolition of existing improvements	 	July 1, 2015
	Begin framing residential units	 	July 18, 2016
	Delivery of first residential unit	 	March 2, 2017
	Delivery of last residential unit	 	December 4, 2017

 

“Construction
Contract” shall mean that certain Owner-Contractor Construction Agreement between the Owner and Contractor for the construction
of the Project, as may be modified from time to time.

 

"Construction Lender"
shall mean Bank of America, N.A.

 

"Construction Loan"
shall mean that certain loan in the amount of approximately

$31,557,483 provided to Owner
by the Construction Lender and other lenders, secured by the Project, for the purpose of financing the construction of the Project.

 

“Construction
Recoveries” shall mean all recoveries from subcontractors, suppliers, insurers and similar Persons in respect of construction
warranty obligations, construction defects or similar claims.

 

“Contractor”
shall mean Maple Multi-Family TX Contractor, L.L.C., a Texas limited liability company, or such other successor general contractor(s)
as may be retained by Owner from time to time to construct the Project.

 

“Debt Service”
shall mean, for any period, scheduled principal, interest and other required payments (including any required loan rebalancing
or remargining payments, except to the extent that such loan rebalancing is required by the Construction Lender as a result of
a Hard Cost Overrun or Soft Cost Overrun) owing on the Construction Loan or any other loan to the Owner.

 

“Developer”
shall have the meaning set forth in the Preamble.

 

“Development
Budget” shall mean the budget of all expenses estimated and projected to be incurred with respect to the planning,
design, development, construction and operations to stabilization of the Project attached hereto as Exhibit D,
as such budget may, from time to time, be amended by the mutual consent of Owner and Developer or to allow for reallocation
of line items by Developer in accordance with Section 4.2 of this Agreement.

 

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“Development Consultant”
shall mean the development consultant selected by BR Investor to the extent contemplated in the LLC Agreement to monitor and review,
on behalf of Owner, at Owner’s expense, the construction and development of the Project. For avoidance of doubt, if BR Investor
fails to select a Development Consultant, then there shall be no Development Consultant and all references to the Development Consultant
in this Agreement shall be ignored.

 

“Development Costs”
shall mean all costs (both Hard Costs and Soft Costs) incurred in connection with the Development Work.

 

“Development Fee”
shall mean the fee payable by Owner to Developer pursuant to the provisions of Section 11.1 of this Agreement with respect to the
Development Functions.

 

“Development Functions”
shall mean those obligations, responsibilities and functions of Developer set forth in this Agreement.

 

“Development Period”
shall mean the period commencing on the date hereof and terminating on the date upon which Final Completion is achieved.

 

“Development Work”
shall mean the work described in the Plans and Specifications.

 

“Development Work
Control Report” shall have the meaning set forth in Section 6.2.2 hereof.

 

“Discretionary
Changes” shall mean any modifications or changes that the Members of Owner agree to make to the Plans or the Project
(and any applicable corresponding changes to the Development Budget) that (i) are not required to complete the construction of
the Project as originally contemplated by the Plans and Specifications and (ii) are not necessitated by deficiencies in the Plans
and Specifications or government-mandated revisions of the Plans and Specifications or the Project (except government-mandated
revisions resulting from changes in building codes or other applicable laws after the date of this Agreement). Discretionary Changes
include, for example, upgrades/downgrades of interior or exterior finishes, additional/fewer Project amenities, and increases/decreases
in square footage.

 

“Draw Request”
shall mean a drawing request on the Construction Loan submitted to the Construction Lender.

 

“Event of Default”
shall mean any one or more of the events described in Section 12.2 or

12.3 of this Agreement.

 

“Final Completion”
shall mean achievement of the conditions for the final payment to the Contractor under the Construction Contract.

 

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“Force Majeure
Event” shall mean acts of God, war, riots, civil insurrections, hurricanes, tornados, floods, earthquakes, epidemics
or plagues, acts or campaigns of terrorism or sabotage, interruptions to domestic or international transportation, trade restrictions,
delays caused by any governmental or quasi-governmental entity, shortages of materials, natural resources or labor, labor strikes,
governmental prohibitions or regulations including administrative delays in obtaining building permits, inability to obtain materials
or any other cause beyond the reasonable control of the Developer.

 

“Ground Lease”
shall mean that certain Ground Lease with respect to the Property by and between Owner, as tenant, and PROKOP Industries BH, L.P.,
the owner of the fee interest in the Property, as landlord

 

“Hard Cost”
shall mean all items under the category heading “Hard Cost” in the Development Budget.

 

“Hard Cost Overrun”
shall mean, from time to time, the amount by which (i) the aggregate Hard Costs incurred in connection with the development and
construction of the Project as of the date of measurement, excluding Hard Costs relating to Force Majeure Events or Discretionary
Changes, exceed (ii) the sum of (A) the portion of the Development Budget allocated to Hard Costs (after any reallocation among
line items within the Development Budget allowed by this Agreement), including the available Hard Cost contingency in the Development
Budget, (B) Construction Recoveries applied to payment of Hard Costs and (C) all insurance proceeds collected as a result of casualty
losses occurring prior to the Completion Date to the extent applied to payment of Hard Costs. Hard Cost Overruns include, without
duplication, loan rebalancing payments required by the Construction Lender in connection with the Construction Loan, but only to
the extent that such loan rebalancing payments are required by the Construction Lender as a result of an actual or projected Hard
Cost Overrun not relating to Force Majeure Events or Discretionary Changes. Hard Cost Overruns also include overruns resulting
from Non-Discretionary Changes but not overruns resulting from Discretionary Changes.

 

“Indemnified Party”
shall mean, when used with respect to a Person, (i) any Affiliate of such Person, (ii) any Person who holds a direct or indirect
ownership interest in such Person or in any such Affiliate, (iii) the respective officers, directors, trustees, beneficiaries,
investment advisors, licensees, agents and employees of such Person, any Affiliate of such Person or any Person who holds a direct
or indirect ownership interest in such Person or in any such Affiliate and (iv) the respective successors (other than by assignment)
of any Indemnified Affiliate.

 

“Key Persons”
shall mean Kenneth J. Valach, Sean Rae and Scot Davis.

 

“LLC Agreement”
shall mean that certain Limited Liability Company Agreement of the Owner dated January 9, 2015, as the same may be amended from
time to time.

 

“Mandatory Developer
Cost Overrun Loan” shall have the meaning set forth in Section 4.4. hereof.

 

“Members”
shall mean the members of the Owner as identified in the LLC Agreement.

 

 “Monthly
Draw Package” shall have the meaning set forth in Section 6.2.1 hereof.

 

“Monthly Financial
Reporting Package” shall have the meaning set forth in Section 6.2.3 hereof.

 

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“Monthly Reports”
shall have the meaning set forth in Section 6.2 hereof.

 

“Non-Discretionary
Changes” shall mean any modifications or changes that the Owner is required to make to the Plans and Specifications
or to the Project (other than Discretionary Changes), except a government-mandated modification or change resulting from changes
in building codes or other applicable laws after the date of this Agreement. Non-Discretionary Changes include, for example, changes
to the Plans and Specifications or the constructed portions of the Project to correct design or construction deficiencies or to
implement government-mandated revisions not resulting from changes in building codes or other applicable laws after the date of
this Agreement, or Contractor claims under the Construction Contract for increased compensation due to errors or inconsistencies
in the Plans and Specifications, concealed conditions, delays or other reasons, in any such case unless resulting from a Force
Majeure Event.

 

“Owner”
shall have the meaning set forth in the Preamble.

 

“Person”
shall mean an individual, partnership, corporation, limited liability company, trust, real estate investment trust, unincorporated
association, joint stock company or other entity or association, including any governmental unit.

 

“Plans and Specifications”
shall mean the plans and specifications with respect to the Project more particularly described on Exhibit C attached
hereto and by reference made a part hereof, as such plans and specifications may, from time to time, be modified by the mutual
consent of Owner and Developer or by Developer in accordance with Section 3.2.3 of this Agreement.

 

“Prime Rate”
shall mean the rate of interest published in The Wall Street Journal from time to time as the “prime rate” and, if
the prime rate is no longer published by The Wall Street Journal, a rate of interest which is a reasonable substitute therefor
as mutually agreed to by Owner and Developer.

 

“Project”
shall mean the apartment project and associated site work intended to be completed upon the Property as a result of the Development
Work.

 

“Project Development
Schedule” shall mean the schedule for development of the Project attached as Exhibit E, as such schedule
may, from time to time, be amended in accordance with this Agreement.

 

“Property”
shall have the meaning set forth in the Recitals.

 

“Soft Cost(s)”
shall mean all items under the category heading “Soft Cost” in the Development Budget. Soft Costs include, without
limitation, architectural and engineering fees and legal fees.

 

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 “Soft Cost
Overrun” shall mean, from time to time, the amount by which (i) the aggregate Soft Costs incurred in connection with
the development and construction of the Project as of the date of measurement, excluding Soft Costs relating to Force Majeure
Events, property taxes (unless attributable to failure to achieve the Completion Milestones), Debt Service (unless attributable
to failure to achieve the Completion Milestones, provided that, in no event will any balloon payments due on the Construction
Loan at maturity be or be deemed to be a Soft Cost Overrun), Discretionary Changes and/or operating deficits of the Project (unless
attributable to failure to achieve the Completion Milestones), exceed (ii) the sum of (A) the portion of the Development
Budget allocated to Soft Costs (after any reallocation among line items within the Development Budget allowed by this Agreement),
including the available Soft Cost contingency in the Development Budget, (B) Construction Recoveries applied to payment of Soft
Costs and (C) all insurance proceeds collected as a result of casualty losses occurring prior to the Completion Date to the extent
applied to payment of Soft Costs. Soft Cost Overruns include, without duplication, loan rebalancing and remargining payments required
by the Construction Lender in connection with the Construction Loan, but only to the extent that such Construction Loan rebalancing
or remargining payments are required by the Construction Lender as a result of an actual or projected Soft Cost Overrun not relating
to Force Majeure Events, property taxes (unless attributable to failure to achieve the Completion Milestones), Debt Service (unless
attributable to failure to achieve the Completion Milestones, provided that, in no event will any balloon payments due on the
Construction Loan at maturity be or be deemed to be a Soft Cost Overrun), Discretionary Changes and/or operating deficits of the
Project (unless attributable to failure to achieve the Completion Milestones). Soft Cost Overruns include overruns resulting from
Non-Discretionary Changes but exclude overruns resulting from Discretionary Changes.

 

“Specialists and
Consultants” shall have the meaning set forth in Section 3.2.1(a) hereof.

 

“TCR Member”
shall mean Blaire House, LLC.

 

ARTICLE 2

ENGAGEMENT OF DEVELOPER

 

2.1        Engagement.
Owner hereby engages Developer as the exclusive development manager with respect to the Development Work during the Development
Period, for the purpose of managing, arranging, supervising and coordinating the planning, design, permitting, scheduling, construction
and completion of the Development Work, all in accordance with and subject to the terms, conditions and limitations herein set
forth. Developer hereby accepts such engagement and hereby agrees to diligently perform the Development Functions hereunder. Developer
further agrees to apply commercially reasonable business practices in the performance of the Development Functions and to comply
with all laws and regulations applicable to its activities in carrying out the Development Functions.

 

2.2           Relationship.
With respect to Owner, Developer shall at all times be an independent contractor. No provision hereof shall be construed to constitute
Developer or any of its officers or employees as an employee or employees of Owner, nor shall any provision of this Agreement be
construed as creating a partnership or joint venture between Developer and Owner. Neither Owner nor Developer shall have the power
to bind the other party except pursuant to the terms of this Agreement. This Agreement is not intended to provide or create any
agency relationship between Owner and Developer, and Developer shall have no right or authority, express or implied, to commit
or otherwise obligate Owner in any manner whatsoever, except as expressly provided herein, and Developer agrees that it shall not
hold itself out as having authority to act on behalf of Owner in any manner, except as expressly provided herein.

 

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ARTICLE 3

RESPONSIBILITIES OF DEVELOPER

 

3.1           General
Responsibility. Developer’s general responsibility hereunder as Owner’s development manager shall be to manage,
arrange, supervise and coordinate, in all respects, the planning, design, construction, leasing, and completion of the Development
Work.

 

3.2           Development
Functions. In discharging its general responsibility hereunder with respect to the Development Work, Developer shall perform
and discharge the specific responsibilities set forth in this Section 3.2, subject to the terms of this Agreement.

 

3.2.1           Pre-Development
Phase. During the pre-development phase of the Development Work, Developer’s responsibilities will include, without limitation,
the following, to the extent not previously completed:

 

(a)          To
the extent required for functions not handled by the previously-retained Specialists and Consultants identified on Exhibit
B, recommending to Owner planning, architectural, engineering, interior design and other specialists and consultants for
the Development Work (collectively, the “Specialists and Consultants”), coordinating the process for the selection
by Owner of such Specialists and Consultants for the Development Work (including a competitive bidding process, if requested by
Owner), reviewing and analyzing proposals from such Specialists and Consultants, and, following approval thereof by Owner, preparation
and/or review and evaluation of proposed contracts between Owner and such Specialists and Consultants and the negotiation of such
proposed contracts (it being understood that all such contracts shall be signed by Owner and, therefore, are subject to Owner’s
prior approval);

 

(b)          Assisting
Owner in establishing the design criteria of the Development Work;

 

(c)          Supervising
the preparation of boundary and topographic surveys of the Property or applicable portions thereof;

 

(d)          Supervising
the preparation of environmental site assessments and geotechnical reports of the Property to the extent not yet prepared by or
on behalf of Owner by Developer;

 

(e)          Supervising
the preparation of site plans showing the location of roads, utilities, buildings, parking areas and other improvements to be constructed
in connection with the Development Work;

 

(f)          Analyzing
the entitlements required for the proposed Project including zoning, parking requirements, traffic studies, site plan approvals,
wetlands permits, DOT access permits, resubdivision requirements, offsite improvements, environmental approvals, etc.;

 

(g)          If
applicable, analyzing major tenant restrictions in the supplemental agreements, leases, and other documents pertaining to the Project;
and

 

(h)          Assessing
the potential tenants, rents, leasing pace, tenant concessions, and other enticements to tenants.

 

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3.2.2       Design
Development Phase. During the design development phase of the Development Work, Developer’s responsibilities will include,
without limitation, the following, to the extent not previously completed:

 

(a)          Securing,
on Owner’s behalf, the necessary entitlements to construct the proposed Project (all such entitlements and terms thereof
subject to Owner’s prior written approval);

 

(b)          Reviewing,
commenting on and coordinating changes in preliminary design and working drawings, specifications and site plans that are requested
by Owner or Development Consultant;

 

(c)          Working
with Owner, Development Consultant, the Architect and the other Specialists and Consultants to enhance compatibility of architectural
drawings with other elements of the Development Work such as interior design;

 

(d)          Obtaining
cost estimates from Specialists and Consultants and/or contractors and preparing revisions to the Development Budget for the construction
phase in light of design development;

 

(e)          Advising
Owner and Development Consultant with respect to preferred construction methods;

 

(f)          With
the Architect and other appropriate Specialists and Consultants, undertaking cost analysis, value engineering and constructability
reviews for the Project and evaluating design alternatives;

 

(g)          Administering
and overseeing the selection by Contractor of major subcontractors as appropriate for construction of the Project; and

 

(h)          Obtaining,
directly or through Contractor, on behalf of Owner all building, development, and other permits and governmental approvals necessary
to commence construction of the Development Work.

 

3.2.3       Construction
Phase. Once construction of the Development Work commences, Developer will serve as a general construction consultant, and
Developer’s responsibilities with respect to the Development Work will include, without limitation, the following:

 

(a)          Making
visits to the job site as and when necessary to perform its obligations pursuant to, and in accordance with, the terms of this
Agreement and to review the work and progress of construction with Contractor and with the Architect and the other Specialists
and Consultants, including, without limitation, observing Contractor’s final testing, start-up and initial operation (which
initial operation shall be in good working order) of all utilities, operational systems and equipment. Developer shall oversee
the testing and delivery of all building systems in consultation with Owner to ensure complete working operation prior to acceptance
by Owner;

 

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(b)          Consulting
with Owner and Development Consultant regarding proposed changes and modifications to the Plans and Specifications which are material
in nature (i.e. which will result in increases to the development costs for the Project of more than $75,000 per change, and $200,000
on a net aggregate basis); obtaining Owner’s written approval for any material changes and modifications to the Plans and
Specifications as a condition of implementation of such changes and modifications (provided, however, that for any changes and
modifications that do not reach the $75,000/$200,000 levels described above, Developer may implement such changes and modifications
at its discretion, with no requirement for Owner’s approval); and coordinating issuance of change orders if and when changes
and modifications as described above are approved in writing by Owner (if required), Contractor, and other necessary parties;

 

(c)          Responding
promptly (and in writing if requested) to any questions from Owner and/or Development Consultant regarding the work or progress
of construction, construction methods, scheduling, and the like;

 

(d)          Coordinating
the turnover of portions of the Development Work as and when the same are completed, including performing walk-throughs to identify
punch list items and timely ensuring the follow through completion of all such punch list items;

 

(e)          Coordinating,
overseeing and managing all efforts by all appropriate parties to complete the Development Work, such efforts to include, without
limitation, assisting in the scheduling of inspections and the preparation and timely disposition of all punch lists;

 

(f)          Coordinating,
overseeing and managing all efforts by all appropriate parties to timely complete the punch list items identified by Development
Consultant, Owner, Architect, Specialists and Consultants, Contractor and Developer;

 

(g)          Managing
compliance by Contractor with the Construction Contract, including without limitation monitoring compliance with the Project Development
Schedule all provisions thereof related to the insurance responsibilities of Contractor and its subcontractors;

 

(h)          Causing
the Contractor to maintain at the Project site for Owner and Development Consultant (i) one record copy of all contracts, drawings,
specifications, addenda, change orders and other modifications, in good order and marked currently in readable form to record changes
and selections made during construction, and in addition, approved shop drawings, product data, samples and similar required submittals
and (ii) record of principal building layout lines, elevations of the bottom of the footings and key site elevations;

 

(i)          Facilitating
and implementing in an expeditious manner all close-out duties to complete the Development Work;

 

(j)          Obtaining,
or causing the Contractor to obtain, on behalf of Owner, a permanent certificate of occupancy (or other appropriate and necessary
governmental permission to occupy) with respect to the portions of the Project which will require the same;

 

(k)          Obtaining
all final warranties (and all related documentation), to the extent provided for in the Construction Contract, from Contractor
and any subcontractors with respect to the Development Work and construction of the Project and all materials provided in connection
therewith for the benefit of Owner; and

 

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(l)          Subject
in all cases to the approval of the Owner and the Construction Lender under the Construction Loan, facilitating and implementing
the process of submitting Draw Requests for approvals, collecting and providing all applicable back up and documentation necessary
for such Draw Requests to be processed by the Construction Lender in accordance with the terms of the Construction Loan and overseeing
the proper expenditure or distribution of all such funds to the parties entitled thereto once released by Construction Lender or
Owner for purposes of paying such related expenses. Developer shall be responsible for all associated accounting and record keeping
on behalf of Owner with respect to any Draw Requests and fund disbursements, and in connection therewith shall provide contemporaneous
notices to the Owner of any Draw Requests submitted in connection with the Development Work and the construction of the Project
along with copies of all documentation submitted in connection with any Draw Request. Developer will further cooperate with Owner
in providing complete access (upon reasonable written notice) to all associated records of Developer in connection therewith, at
Owner’s cost.

 

3.2.4       All
Phases.         During all phases of the Development Work, Developer’s
responsibilities will include, without limitation, the following:

 

(a)          Providing
Owner and Development Consultant with the Monthly Reports as provided in Section 6.2 hereof so as to keep Owner fully apprised
of the progress of the Development Work;

 

(b)          Preparing
and submitting to Owner and Development Consultant supplements and refinements to the Development Budget for Owner’s approval
as development of the Development Work moves through its various phases to completion;

 

(c)          Monitoring
the Project Development Schedule and the progress of development and construction of the Project in comparison thereto;

 

(d)          Notifying
Owner and Development Consultant of any actual or anticipated change in the Project Development Schedule of which Developer becomes
aware, including promptly advising Owner of any delays in the Project Development Schedule and the reasons for any such delay;

 

(e)          Advising
Owner with respect to (1) all material dealings with all governmental authorities who have control over the development of the
Project and the Development Work and the construction of all improvements, and (2) the contest by Owner of any law, regulation
or rule which Developer deems to adversely affect the Development Work;

 

(f)          Coordinating
and managing the performance of Contractor, the Architect and the other Specialists and Consultants under their respective contracts
with Owner and giving or making Owner’s instructions, requirements and approvals provided for in such contracts (after obtaining
Owner’s written approval with respect thereto to the extent that the LLC Agreement requires approval by BR Investor for the
related action);

 

(g)          Using
commercially reasonable and diligent efforts to resolve and settle any conflict among Contractor, the Architect and the Specialists
and Consultants and keeping Owner and Development Consultant fully informed with respect to such conflicts and settlement discussions;

 

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(h)          Assisting
Owner and Development Consultant with respect to Owner’s negotiations with all applicable utility companies, whether governmental
or otherwise, for the installation of all applicable utility services to the Project on a timely basis, with Owner bearing the
cost of all required utility deposits and costs of installation;

 

(i)          Organizing
and coordinating a schedule of monthly draw meetings or teleconferences to be attended by Developer, Owner and Development Consultant,
which schedule shall set forth the dates on which the monthly draw meetings will be held;

 

(j)          Reviewing
applications for payment submitted by Contractor, the Architect and other Specialists and Consultants and preparing documentation
for all requests for payments from Owner, in form and content sufficient to permit Owner and Development Consultant to determine
the appropriateness of such payments;

 

(k)          Coordinating
the performance of any tests and inspections required by the Construction Lender or any governmental authority;

 

(l)          Subject
to the terms of this Agreement, using reasonable efforts to cause compliance by the appropriate party with the Owner’s obligations
relating to the development of the Project undertaken by Owner in any written agreement (including loan agreements, mortgages and
leases (including the Ground Lease)), and notifying Owner and Development Consultant promptly in the event Developer becomes aware
of any material noncompliance;

 

(m)          In
addition to, and in furtherance of, the obligations under Section 3.2.3(l) above, sending to Owner and Development Consultant the
Monthly Draw Package and, at Owner's request, copies of all notices received by Developer from the Architect, Contractor, the Specialists
and Consultants and governmental authorities;

 

(n)          Advising
Owner with respect to any master planning issues relating to the Development Work, including, but not limited to, traffic planning
issues, historic preservation issues, aesthetic issues relating to buildings and sites, and building occupancy criteria issues;

 

(o)          Timely
filing on behalf of, and as agent for, Owner any notices of completion required or permitted to be filed and taking such action
as may be required to obtain licenses or permits required for construction or occupancy of the Project;

 

(p)          Recording
and reporting to Owner and Development Consultant the progress of the construction of the Development Work, which reports shall
be made on a monthly basis in accordance with Section 6.2;

 

(q)          Causing
complete and accurate files, books of account and other records of all development and construction costs and expenses of the Development
Work incurred by Owner to be prepared and maintained;

 

(r)          Cooperating
with Owner, the Members of Owner and their respective agents and representatives (including, without limitation, Development Consultant)
in connection with construction of the Project and the performance of the Development Work;

 

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(s)          Promptly
advising Owner if Developer at any time determines that the Development Budget for the Development Work is not compatible with
the then- prevailing status of the Development Work and does not or is not reasonably expected to adequately provide for the completion
of the Development Work under the remaining and unspent portion of the applicable categories of the Development Budget; and

 

(t)          Performing
generally such other acts and things as may be required in accordance with this Agreement for the full and complete supervision
and coordination of the planning, design, development and construction of the Project and performance of the Development Work and
advising and consulting with Owner and Development Consultant with respect thereto.

 

3.2.5       No
Delegation. No delegation by Developer of any of its obligations hereunder (except pursuant to Owner-approved agreements with
Specialists and Consultants) shall be permitted without the prior written consent of Owner in its sole discretion and no such
delegation shall relieve Developer of any responsibility or liability with respect to such obligations hereunder.

 

3.2.6       Completion
of the Development Work. To the extent the Owner has provided funds therefor to the extent required under this Agreement, Developer
hereby agrees to diligently use its commercially reasonable efforts to cause the Development Work to be completed (i) on or before
the projected completion date as determined from the Project Development Schedule and in compliance with contractual obligations
of Owner, including obligations under loan agreements, mortgages and leases (including the Ground Lease), subject in all cases
to delays caused by Force Majeure Events, (ii) in accordance with the Development Budget (as the same may be revised as contemplated
herein) and (iii) in compliance with applicable law and the Plans and Specifications.

 

3.3       Employees.
Developer shall have available to it at all times a sufficient number of capable personnel to enable Developer to properly perform
its duties and obligations under this Agreement including, without limitation, managing, arranging, supervising and coordinating
activities necessary to carry out the Development Functions. Except as expressly included in the Development Budget, Developer
shall be responsible out of Developer’s own funds for all costs and expenses related to the employment of such personnel.
All Persons employed by Developer in the performance of its responsibilities hereunder shall be the employees of Developer or its
Affiliates and not of Owner (provided that any independent contractors shall not be deemed employees of either Developer or Owner),
and shall be exclusively controlled by Developer and not by Owner, and Owner shall have no liability, responsibility or authority
with respect thereto.

 

3.4       Information.
Developer shall use reasonable efforts to keep Owner and Development Consultant fully informed on an up-to-date basis of the progress
of the Development Work to be accomplished in connection with this Agreement, including (i) all scheduled meetings to be held
with governmental officials, (iii) all meetings of the Development Work construction team, which may include Owner and Development
Consultant and Contractor, Architect and Specialists and Consultants engaged in connection therewith, and (iii) any defaults,
or potential defaults, of any material nature under this Agreement or any of the agreements entered into in connection with this
Agreement (including, without limitation, loan agreements, mortgages and leases (including the Ground Lease)).

 

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3.5       Mechanic’s
Liens. If any mechanic’s lien or other encumbrance shall be filed against the Project or the Property or any portion
thereof because of any negligence or willful misconduct by Developer, whether or not arising from the development of the Project,
unless Owner is responsible for payment of the amounts claimed through such lien, Developer shall, at its own cost and expense,
cause the same to be discharged of record, bonded over (as provided under applicable laws of the state in which the Project is
located) and/or insured over (in form and amount as required by the Construction Lender) by the title insurer for the benefit of
Owner and/or the Construction Lender, within thirty (30) days after the filing of any such lien or encumbrance or such earlier
period required under any applicable loan documents. So long as Developer complies with the preceding sentence, Developer may,
to the extent permitted under and in accordance with the terms of any applicable loan documents, contest any such lien or encumbrance
so long as such contest does not create an imminent danger of foreclosure of such lien or encumbrance. If Developer fails to comply
with the foregoing provisions, Owner shall have the option, on ten (10) Business Days’ prior notice to Developer, to discharge,
bond or insure over any such lien or encumbrance, and Developer shall reimburse Owner for all reasonable costs and expenses thereof,
including reasonable attorneys’ fees and costs (provided that Owner may, at its option, elect to offset such sums against
the next installment of the Development Fee that may be due and payable to Developer under this Agreement).

 

3.6        Warranties
and Guarantees. Developer shall secure in the name of Owner all warranties and guarantees of the work by the Contractor, suppliers
and manufacturers of components of the Project as required by the Construction Contract. Such warranties shall be assigned to
Owner. After final completion of the Project and during the period of time which any particular warranty survives, Developer shall
assist Owner with enforcing any warranties or guarantees with respect to the Project upon request and shall be reimbursed for
its reasonable out-of-pocket costs in connection therewith.

 

ARTICLE 4

DEVELOPMENT BUDGET

 

4.1       Implementation
of Development Budget. Developer is hereby authorized and directed to implement the Development Work in compliance with this
Agreement. Developer may, subject to the terms of this Agreement, make any expenditures and incur any obligations provided for
in the Development Budget, as it may be revised from time to time as provided herein. Subject to Section 4.4, Developer also may
make any expenditures and incur any obligations in excess of amounts provided for in the Development Budget to the extent Developer
considers such expenditure necessary for completion of the Development Work. Developer shall use commercially reasonable efforts
to ensure that the actual costs incurred for each Budget Category as set forth in the Development Budget shall not exceed such
category in the Development Budget, as it may be revised from time to time as provided in Section 4.2 or as otherwise changed by
agreement of Owner and Developer. Developer shall advise Owner in Monthly Reports if it appears that the total costs in any Budget
Category specified in the Development Budget is reasonably expected to exceed the amount budgeted therefor. All expenses shall
be charged to the proper Budget Category in the Development Budget, and no expenses may be classified or reclassified for the purpose
of avoiding an excess in the budgeted amount of a Budget Category without Owner’s prior written approval.

 

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4.2       Revision
of Development Budget. Any revision to the Development Budget shall require the prior written approval of Owner in Owner’s
sole discretion; provided, however, that Developer is authorized, without approval of Owner, to reallocate savings in any Budget
Category to another Budget Category and to revise the Development Budget accordingly.

 

4.3       Emergencies.
Notwithstanding any limitations herein provided, but subject in all events to the terms of the Construction Loan, Developer may
spend funds in reasonable amounts or incur reasonable expenses on behalf of Owner in circumstances which Developer reasonably and
in good faith believes threatens immediate harm to person or property, including the Project. Developer shall, in any case, notify
Owner and Development Consultant as soon as reasonably practicable, both orally and in writing, of the existence of such emergency,
of the action taken by Developer with respect thereto and the related cost thereof.

 

4.4       Cost
Overruns. Developer shall make a loan to Owner (each, a “Mandatory Developer Cost Overrun Loan”) to fund
any Hard Cost Overruns and Soft Cost Overruns as and when they come due. Any such Mandatory Developer Cost Overrun Loan shall be
paid back, without interest, from Net Cash Flow and Capital Proceeds (both as defined in the LLC Agreement) on the terms provided
for in Section 9.1 of the LLC Agreement, after distribution to the Members as provided for in Sections 9.1(a) through 9.1(d) of
the LLC Agreement. Developer hereby expressly subordinates all Mandatory Developer Cost Overrun Loans and its right to payment
thereof to the prior payment to the Members of all distributions to the Members as provided for in Sections 9.1(a) through 9.1(d)
of the LLC Agreement.

 

ARTICLE 5

AUTHORITY OF DEVELOPER

 

5.1       General
Authority. Developer shall have the authority necessary to carry out and discharge the responsibilities and obligations of
Developer under this Agreement (including, without limitation, all of the responsibilities imposed upon Developer under Article
3 hereof); provided, however, that Developer shall have no right or authority, express or implied, to commit or otherwise obligate
Owner in any manner whatsoever except to the extent specifically provided herein or otherwise specifically authorized in writing
by Owner or any agent or manager of Owner to whom such approval authority may, from time to time, have been delegated.

 

5.2       Execution
of Documents and Agreements. Owner agrees to review any contracts, agreements, governmental submissions and applications submitted
by Developer to Owner for Owner’s signature and to execute any such contracts, agreements, governmental submissions and applications
approved by Owner (such approval not to be withheld unreasonably) so as to not cause any undue delay in the Development Work.

 

5.3       Certain
Owner Approvals. Notwithstanding any provisions of this Agreement (including, without limitation, Section 4.1 hereof), but
without limiting the other restrictions on Developer’s authority contained herein, Developer shall not take any action, expend
any sum, make any decision, give any consent, approval or authorization, enter into any agreement or incur any obligation with
respect to any of the following matters unless and until the same have been approved in writing by Owner (which approvals Owner
shall grant or withhold within five (5) Business Days after receipt of a written request, provided that if the Construction Lender’s
consent or approval is required therefor under the loan documents for the Construction Loan, then such five (5) Business Day period
shall be tolled until the Construction Lender’s consent or approval, as the case may be, is granted):

 

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(a)          Entering
into any construction or architectural contracts or any contract with any Specialists or Consultants or any amendments to such
contracts, or taking any action or giving any notice, the taking or giving of which will (i) result in the release or discharge
of any party to any such contract or (ii) consent to any other party to any contract to assign or otherwise transfer its rights
or obligations thereunder.

 

(b)          Subject
to Section 3.2.3(b) of this Agreement, authorizing or approving any proposed change in the Plans and Specifications as previously
approved by Owner.

 

(c)          Entering
into or amending any agreement or other arrangement for the furnishing to Owner of goods or services for the Development Work,
to the extent Owner’s obligation under such agreement or arrangement (as so amended) exceeds amounts provided for in the
Development Budget plus the amount of any funds Developer is obliged to provide through Mandatory Developer Cost Overrun Loans.

 

(d)          Commence,
settle or otherwise compromise any litigation for or on behalf of Owner.

 

(e)          Except
as expressly provided in this Agreement, commit or otherwise obligate Owner in any manner with any party, including, without limitation,
any governmental authority, utility company, lender, ground landlord, tenant, Specialist or Consultant, Contractor or Architect.

 

ARTICLE 6

ACCOUNTING AND REPORTS

 

6.1       Books
of Account. Developer shall maintain or cause to be maintained for a period of not less than two (2) years after Final Completion
of the Development Work, proper and complete records and books of account which shall fully and accurately reflect the planning,
design, permitting, scheduling, construction and completion of the Development Work. All entries to such books of account shall
be supported by sufficient documentation to permit Owner, the Members of Owner, Development Consultant and any of their respective
auditors to ascertain that said entries are properly and accurately recorded. Such books of account shall be located at Developer’s
offices in Houston, Texas or at Developer’s principal accounting office and shall be maintained in accordance with Developer's
standard accounting methods consistently applied. Developer shall keep vouchers, statements, receipted bills and invoices and
all other records covering all collections, if any, disbursements and other activities prior to Final Completion. During the requisite
two (2) year period, at Owner’s request the originals of all such accounts and records, including all correspondence, shall
be made available to Owner without charge therefor. Records and accounts shall be maintained on a basis sufficient to permit the
preparation therefrom of financial statements in accordance with generally accepted accounting principles and shall be adequate
to provide Owner, the Members of Owner and their respective representatives with all financial information as may reasonably be
needed by any of the foregoing. Upon the expiration of the requisite two (2) year period or later, if Developer seeks to destroy
such records, Developer shall provide BR Investor and Owner with the opportunity to copy or maintain the original records and
accounts at no additional cost. This Section 6.1 shall survive any termination of this Agreement.

 

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6.2        Monthly
Reports. For each calendar month during the Development Period for the Development Work, Developer shall prepare a “Draw
Request,” a “Monthly Draw Package,” a “Development Work Control Report” and a
“Monthly Financial Reporting Package” with respect to the Development Work, and shall cause the same to be
delivered to Owner and Development Consultant certified by Developer as true, complete and correct in all material respects (collectively,
the “Monthly Reports”).

 

6.2.1        Draw
Request; Monthly Draw Package. The “Monthly Draw Package” for the month shall include (i) a Development
Work cost summary spreadsheet which shall be a static financial accounting of all Development Costs incurred (Hard Costs and Soft
Costs), (ii) AIA documents G 702 Application for Payment and G 703 Continuation Sheet, (iii) the lien waivers submitted by the
Contractor and all subcontractors, (iv) a statement of any funding required from Owner and (v) a copy of the associated Draw Request
submitted to the Construction Lender.

 

6.2.2       Development
Work Control Report. The “Development Work Control Report” shall be in substantially the form of the monthly
draw package attached hereto as Exhibit F and shall include an updated Project Development Schedule, the most current
progress reports or other written reports received from the Contractor, Architect and any Specialists or Consultants and information
with respect to the status of claims, contractor defaults, Force Majeure Events or other such problems encountered during the
Development Period.

 

6.2.3       Monthly
Financial Reporting Package. The “Monthly Financial Reporting Package” shall include the following statements:
(i) a balance sheet as of the end of the preceding calendar month, (ii) a comparison of the amount of actual Development Costs
incurred as of the effective date of such report to the budgeted costs as of such date, shown on a line item basis using the Budget
Categories and (iii) a monthly bank statement and reconciliation.

 

All documents shall be type
written and shall not have any handwritten changes to dollar values. Any handwritten changes of a non-dollar nature shall be initialed
and dated by the Person who made the change. Neither the giving of notice by Developer to Owner of excess expenditures in any month
nor the payment of such excess expenditures, shall act to amend or otherwise modify the Development Budget unless such modification
is specifically approved by Owner in writing or otherwise allowed by this Agreement. Developer shall provide the reports set forth
in this Section 6.2 on or before the twenty-fifth (25th) day of the month following the month for which reporting is
being provided.

 

6.3       Examination
of Books and Records. Owner, the Members of Owner and their respective agents and representatives, at Owner’s expense,
shall have the right at all reasonable times during normal business hours and upon at least twenty-four (24) hours advance notice,
to audit, examine, and make copies of or extracts from the books of account and records maintained by Developer for Owner with
respect to the Development Work. If Owner shall notify Developer of either weaknesses in internal controls or errors in record
keeping, Developer shall correct such weaknesses and errors as soon as possible after they are disclosed to Developer. Developer
shall notify Owner in writing of the actions taken to correct such weaknesses and errors. If any such audit shall disclose any
overpayment by Owner to Developer, written notice of such overpayment shall be provided to Developer and the amount of such overpayment
shall be promptly reimbursed by Developer to Owner together with interest at the Prime Rate plus one percent (1%) from the date
of overpayment by Owner until the date repaid by Developer. This Section 6.3 shall survive any termination of this Agreement.

 

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6.4       REIT
Compliance. Within fifteen (15) days of the end of each quarter of each fiscal year of the Owner, upon receipt of a written
request therefor, Developer shall cause to be furnished to any Member of the Owner making the request such information as reasonably
requested by such party and in the possession of, or under the control of, Developer or its Affiliates or, to the extent not in
the possession of, or under the control of, Developer or its Affiliates, which relates to the Project or the Development Work and
which may be reasonably prepared by the Developer at the expense of the requesting party, as is necessary for any such party (whether
a direct or indirect owner in Owner) to determine its qualification as a REIT (as defined in the LLC Agreement) and its compliance
with REIT Requirements (as defined in the LLC Agreement). Further, the Developer shall cooperate in a reasonable manner at the
request of the any Member of the Owner making the request, at the expense of the requesting party, to work in good faith with any
designated accountants or auditors of such requesting party or its Affiliates so that such requesting party or its Affiliate is
able to comply with any public reporting, attestation, certification and other requirements under the Securities Exchange Act of
1934, as amended, applicable to such entity, including for purposes of testing internal controls and procedures of such requesting
party or its Affiliates.

 

ARTICLE 7

DEVELOPMENT COSTS

 

7.1       Payment
of Costs. Except as otherwise provided in this Agreement, all costs and expenses incurred in connection with the Development
Work shall be the sole responsibility of Owner. Owner agrees to reimburse Developer for all costs and expenses incurred by Developer
in connection with the Development Work except to the extent responsibility for such costs and expenses is specifically allocated
to Developer under another provision of this Agreement, including Section 4.4.

7.2        Method
of Payment of Development Costs. On or about the 1st day of each month, Developer shall deliver to Owner and Development Consultant
the Monthly Draw Package detailing the Development Costs that need to be paid. Owner shall, within ten (10) calendar days, advance
the funds to Developer necessary for payment and Developer shall promptly thereafter make such payments, or Owner may elect to
make such payments directly to the party entitled thereto.

 

7.3       Survival.
The provisions of Sections 7.1 and 7.2 shall survive the completion of Developer’s services hereunder or any termination
of this Agreement.

 

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ARTICLE 8

OWNER’S FUNDS

 

8.1       Separate
Accounts. Payments made by Owner (and the Construction Lender under the Construction Loan, if applicable) pursuant to an approved
Monthly Draw Package may be made, at Owner’s (or any such Construction Lender’s) discretion, directly to the parties
to whom payment is owed or may be made to an account of Owner over which Developer has signature authority for further disbursement
to the Architect(s), Contractor, the Specialists and Consultants, suppliers and other creditors. Such account or accounts shall
be subject to withdrawal only upon the signature or signatures of individuals approved by Owner. Such account or accounts shall
be maintained by Owner in such financial institutions as may be selected by Owner. All such funds shall be and shall remain the
property of Owner and shall be disbursed by Developer in payment of the obligations of Owner incurred in connection with the development
and construction of the Project and the performance of the Development Work or, subject to Section 8.2, disbursed directly to Owner
at Owner’s request. Developer shall not commingle Owner’s funds with the funds of any other Person and shall disburse
Owner’s funds only in accordance with the Monthly Draw Package.

 

8.2       Owner’s
Duty to Provide Funds. Except as otherwise provided herein, Owner agrees that Owner will provide, as and when necessary, all
such amounts as are required to pay when due all current obligations of Owner in connection with the development and construction
of the Project and the performance of the Development Work, including all obligations of Owner to Developer hereunder. Lien waivers
will be accepted not more than one (1) month in arrears. In addition to the actual lien waivers, a “lien waiver summary
spreadsheet” shall be supplied by either Contractor or Developer such that a Development Work-to-date review of lien waivers
submitted can be reviewed. Developer shall promptly notify Owner with a reasonably detailed explanation if there are insufficient
funds in the account described in Section 8.1 above. Provided Developer has delivered the Monthly Draw Package in accordance with
the provisions of Article 7 and the Owner has confirmed the same as complying with the requirements of this Agreement, the Development
Costs set forth in such Monthly Draw Package shall be payable as provided in Section 7.2. The provisions of this Section 8.2 shall
survive the completion of Developer’s services hereunder or any termination of this Agreement.

 

8.3        Investment
of Owner’s Funds. If at any time there are in the bank account or accounts established pursuant to Section 8.1 above,
funds of Owner, from whatever sources, temporarily exceeding the immediate cash needs of the Development Work, Developer may (and
at the direction of Owner shall) invest such excess funds in such savings accounts, certificates of deposit, United States Treasury
obligations, commercial paper, money market accounts, repos, and similarly secure and highly liquid securities, as Developer may
reasonably select or Owner shall direct, provided that the form of any such investment shall be consistent with Developer’s
need to be able to liquidate any such investment to meet the cash needs of the Development Work from time to time. Developer shall,
on a monthly basis, promptly advise Owner of the existence and amount of such excess funds which Developer has not invested as
provided above. All interest or other income resulting from such investment shall be the property of Owner and shall be held and
disbursed by Developer in accordance with this Article 8.

 

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ARTICLE 9

INDEMNITY; LIABILITY; PLANS

 

9.1       Indemnification.

 

9.1.1       Indemnity
by Developer. Developer hereby agrees to indemnify, defend and hold harmless Owner, the BR Investor and the Indemnified Parties
of the BR Investor, to the fullest extent permitted by law, against any and all claims, demands, losses, liabilities, actions,
lawsuits and other proceedings, judgments, awards, settlements, obligations, liabilities, debts, damages and costs and expenses
(including without limitation reasonable attorneys’ fees and court costs incurred in connection with the enforcement of
this indemnity or otherwise) suffered or incurred by any one or more of them as a result of (i) fraud, gross negligence or willful
misconduct of Developer in connection with Developer’s services or work hereunder, (ii) Developer acting outside the scope
of its duties or authority hereunder or (iii) material breach by Developer of this Agreement.

 

9.1.2       Indemnity
by Owner. Owner hereby agrees to indemnify, defend and hold harmless Developer and the Indemnified Parties of the Developer,
to the fullest extent permitted by law, against any and all claims and demands by third-parties and related actions, lawsuits and
other proceedings, judgments, awards, settlements, obligations, liabilities, debts, damages and costs and expenses (including without
limitation reasonable attorneys’ fees and court costs incurred in connection with the enforcement of this indemnity or otherwise)
suffered or incurred by any one or more of them arising out of or related to the Project, or Developer’s services or work
hereunder, or any act, omission or failure to act by any of them in connection with the Developer’s services or work hereunder,
unless (i) the same results from fraud, gross negligence or willful misconduct of Developer in connection with Developer’s
services or work hereunder, Developer acting outside the scope of its duties or authority hereunder, or material breach by Developer
of this Agreement or (ii) Developer is separately obligated to Owner, without right of reimbursement, for the same under another
provision of this Agreement.

 

9.1.3       Control
of Defense and Settlement. The Person required to provide indemnification (an “indemnitor”) shall have the right
to defend, and shall defend, the Person entitled to be defended hereunder (an “indemnitee”) at the indemnitor’s
expense and by counsel of the indemnitor’s own choosing (subject to the applicable indemitee’s approval of such counsel,
not to be unreasonably withheld), against any matter to which an indemnity agreement set forth in this Section 9.1 would apply.
The right of any indemnitee, to defend or settle any such matter shall be limited to those cases where the indemnitor has failed
or refused to defend after written notice to the indemnitee or cases where the indemnitee reasonably determines that a conflict
of interest exists. In all cases, the indemnitor will not be obligated for any settlement made without its approval, unless the
indemnitor has wrongfully refused to take up defense of the related matter upon demand of the indemnitee. Unless the indemnitee
otherwise agrees, the indemnitor may not settle a claim against an indemnitee on terms that (i) provide for a criminal sanction
or fine against the indemnitee, (ii) admit to criminal liability on the part of the indemnitee or (iii) provide for injunctive
relief against the indemnitee. The indemnitor or an indemnitee, as applicable, shall regularly apprise the other of the status
of all proceedings.

 

9.2       Limitation
of Liability. Other than with respect to any such information obtained from any Affiliate of Developer, including the Contractor,
Developer shall be entitled to rely on information, opinions, reports or statements provided to it by other Persons. Developer
shall have no liability to Owner or other Persons for negligence or for mistakes of judgment or losses or liabilities due to such
negligence or for mistakes of judgment or to the negligence, dishonesty, unlawful acts or bad faith of any employee, broker or
other agent, accountant, attorney, other professional or person employed by Owner provided that, if applicable, such person was
selected, engaged, retained and supervised by Developer without gross negligence. Developer shall have no liability to Owner or
other Person for any loss suffered by any of them which arises out of any action or inaction of Developer if the authority allowed
to it by this Agreement and such course of conduct did not constitute fraud, willful misconduct, a material breach of this Agreement
or gross negligence.

 

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9.3       No
Obligation to Third Parties. Except as otherwise provided in Section 9.1 hereof, none of the responsibilities and obligations
of Developer or Owner under this Agreement shall in any way or in any manner be deemed to create any liability of Developer or
Owner to, or any rights in, any Person other than Owner or Developer.

 

9.4       Ownership
of Plans. Whether or not the Development Work is completed, plans, drawings and specifications prepared for Owner pursuant
to this Agreement may be used by Owner or Developer (in conjunction with the Project or other projects) but Developer shall not
sell any of such plans, drawings or specifications for use in conjunction with any project other than the Project.

 

9.5       Nature
of Developer’s Duties and Responsibilities. Owner hereby acknowledges that Developer’s duties and responsibilities
hereunder consist only in managing, arranging, supervising and coordinating the planning, design, permitting, scheduling, construction,
and completion of the Development Work and the performance of the other Development Functions and duties under this Agreement which
relate to the Development Work, all in accordance with, and subject to the limitations of, the terms of this Agreement; that Developer
is not itself preparing any architectural or engineering plans, designs or specifications or performing any construction required
for the development or completion of the Development Work; and that Developer is not responsible for, and will not be liable for,
any work, act, omission, negligence, gross negligence or intentional misconduct of any other Person (including any architect, engineer
or other design professional or any contractor, subcontractor, supplier, materialman or artisan) employed by Owner or performing
work for Owner in connection with the Development Work. NEITHER DEVELOPER NOR ANY OF ITS AFFILIATES (EXCEPT AS PROVIDED IN THE
CONSTRUCTION CONTRACT IN RESPECT OF THE CONTRACTOR AND THE TCR MEMBER AS PROVIDED IN THE LLC AGREEMENT) WILL BE RESPONSIBLE FOR
ERRORS IN DESIGN OF THE PROJECT OR FOR CONSTRUCTION DEFECTS. UNDER NO CIRCUMSTANCE WILL DEVELOPER OR ANY OF ITS AFFILIATES BE RESPONSIBLE
FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED BY OWNER OR A MEMBER OF OWNER AS A RESULT OF DEFECTS IN DESIGN OR CONSTRUCTION
OF THE PROJECT, INCLUDING ANY LOSS IN REVENUES, ANY LOSS OF OPPORTUNITIES, ANY LIABILITY TO OTHER PERSONS FOR LOSS, INJURY OR DAMAGE
TO PERSONS OR PROPERTY OR DEATH, OR ANY DAMAGE TO THE PROJECT. Owner retains the risk of (a) adequacy of all Plans and Specifications
and compliance of Plans and Specifications with applicable laws and (b) subject to the Company’s rights under the Construction
Contract and the LLC Agreement, conformance of construction with the applicable Plans and Specifications, applicable laws and sound
building practices. DEVELOPER SPECIFICALLY DISCLAIMS ALL WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABILITY, HABITABILITY
OR GOOD AND WORKMANLIKE CONSTRUCTION AND WARRANTIES OF FITNESS FOR USE OR ACCEPTABILITY FOR THE PURPOSE INTENDED,
AND OWNER OR EACH OTHER MEMBER OF OWNER WAIVES ALL BASIS FOR RECOVERY OR REIMBURSEMENT (INCLUDING ANY GROUND FOR RECOVERY BASED
ON NEGLIGENCE OR STRICT LIABILITY), TO THE EXTENT THE SAME WOULD ALLOW GREATER RECOURSE THAN PROVIDED IN THIS SECTION
9.5 AGAINST DEVELOPER OR ANY AFFILIATE OF DEVELOPER (EXCEPT AS PROVIDED IN THE CONSTRUCTION CONTRACT IN RESPECT OF THE CONTRACTOR
AND THE LLC AGREEMENT IN RESPECT OF THE TCR MEMBER). Nothing in this Section 9.5 limits the responsibility of (i) the Contractor
under its Construction Contract with the Company, (ii) Developer’s obligations to fund Mandatory Development Cost Overrun
Loans pursuant to Section 4.2, (iii) the responsibility of the TCR Member under the LLC Agreement, (iv) the responsibility of the
TCR Guarantors (as defined in the LLC Agreement) under the Guaranty Agreement from the TCR Guarantors to the Company and the BR
Investor or (v) Developer’s indemnity obligations under Section 9.1.1.

 

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9.6       Survival.
The provisions of this Article 9 shall survive the completion of Developer’s services hereunder or any termination of this
Agreement..

 

ARTICLE 10

INSURANCE

 

10.1       Insurance
Requirements. Throughout the Development Period, Developer will maintain insurance with respect to the Development Work in
accordance with the provisions contained in Exhibit G attached hereto and incorporated herein by this reference,
with the premiums and other costs and expenses for such required insurance to be borne as provided in  Exhibit G attached
hereto. Throughout the Development Period, Owner will maintain casualty insurance covering the Project in accordance with the requirements
of the LLC Agreement. A copy of a certificate of insurance in force, issued by the insurer, shall be delivered by the party required
to maintain such insurance to the other party on or before the commencement of development activities on the Property, and with
respect to renewal or replacement policies, prior to the expiration of the policy being renewed or replaced.

 

10.2       Waiver
of Subrogation. Each insurance policy maintained by Owner and Developer with respect to the Development Work shall contain
a waiver of subrogation clause, so that no insurer shall have any claim over or against Owner or Developer or any of their respective
Indemnified Parties, as the case may be, by way of subrogation or otherwise, with respect to any claims which are insured under
any such policy. Developer and Owner each waives all claims against the other party for any loss, damage, claims, liability, costs
or expenses (including attorney's fees) arising out of or related to the Development Work to the extent that the same is recoverable
under insurance coverage available to the party providing the waiver; provided, however, that nothing in this provision affects
any party’s rights to insurance proceeds or a party’s obligations or responsibilities in respect thereof. SUCH LIMITATIONS
SPECIFICALLY EXTEND TO LOSS RESULTING FROM NEGLIGENCE OR MATTERS FOR WHICH STRICT LIABILITY MAY EXIST. This Section
10.2 will be effective even though liability may be imposed for loss, damage, claims, liability, costs or expenses by other provisions
of this Agreement. Nothing in this Section 10.2 affects limitations on liability provided by other provisions of this Agreement.
The provisions of this Section 10.2 shall survive the completion of Developer’s services hereunder or any termination of
this Agreement.

 

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 ARTICLE 11

COMPENSATION OF DEVELOPER

 

11.1       Development
Fee for the Development Work. For and in consideration of the services rendered by Developer with respect to the Development
Work, Owner shall, subject to and in accordance with the terms and provisions of this Agreement, pay to Developer during each month
of the Development Period following the start of demolition of the existing improvements on the Property, the applicable monthly
installment of the Development Fee. The Development Fee shall be $1,413,842; provided, however, that if there is a material change
in the scope of the Development Work, Developer and Owner shall negotiate in good faith to adjust, upward or downward, as applicable,
the Development Fee to reflect the increase or decrease in the Development Budget resulting from such change in scope. The applicable
monthly installment of the Development Fee for a month shall be based upon the percentage of the Development Work completed as
of the end of the relevant month; provided, however, that to the extent that draws against the Member’s Initial Capital Contributions
(as defined in the LLC Agreement) and the Construction Loan or, to the extent not funded from those sources, other existing available
funds of the Company are not sufficient to pay the Development Fee on such basis, the excess amount shall be deferred until Final
Completion, at which time the unpaid balance of the Development Fee shall be due in full.

 

11.2       Reimbursement
of Advances. Developer shall not be required to advance any of its own funds for the payment of any costs and expenses incurred
by or on behalf of Owner in connection with the Development Work, but if Developer advances Developer’s own funds in payment
of any of such costs and expenses covered by the Development Budget or for other costs and expenses that Developer is permitted
to incur hereunder, Owner agrees to reimburse Developer for such costs and expenses. The amounts to be reimbursed by Owner to
Developer pursuant to this Section 11.2 shall be paid monthly, within ten (10) calendar days after receipt by Owner of a bill
therefor accompanied by supporting statements, invoices or documents or, if such bill and supporting documentation is not available
due to the nature of the cost or expense incurred, an explanation in reasonable detail from Developer of the costs and expenses
to be reimbursed.

 

11.3       Late
Payments. Any amounts or sums due by Owner to Developer under this Agreement which are not paid when due (where such non-payment
continues for twenty (20) calendar days after written notice from Developer to Owner specifying the payment Owner has failed to
make) shall bear interest at the Prime Rate plus one percent (1%) from the date such payment was due.

 

11.4       Duplicate
Payments. Any particular fees payable or expenses or costs reimbursed to Developer under this Agreement shall not be paid or
reimbursable to Developer or any Affiliate of Developer under any other agreement, and any fees payable or expense or cost reimbursed
to Developer or any Affiliate of Developer under any other agreement shall not be paid or reimbursed to Developer under this Agreement,
it being the intention and agreement of the parties that Developer and its Affiliates shall be paid or reimbursed only once for
any particular fee or reimbursable expense or cost.

 

11.5       Survival.
The provisions of Sections 11.2, 11.3 and 11.4 shall survive the completion of Developer’s services hereunder or any termination
of this Agreement.

 

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ARTICLE 12

TERM AND TERMINATION

 

12.1       Term.
The term of this Agreement shall be for the Development Period, unless this Agreement is earlier terminated pursuant to the provisions
contained in this Agreement. This Agreement shall be terminable by Owner upon written notice to Developer of (i) the sale by Owner
of all of its right, title and interest in and to the entire Project (including any sale by assignment, foreclosure, deed in lieu
of foreclosure or sale of all of the ownership interests in Owner, or otherwise) or (ii) the sale or other transfer of the membership
interest in the Owner held by the TCR Member (other than to an Affiliate thereof as permitted under the LLC Agreement).

 

12.2       Developer
Default. Upon the happening of any Event of Default by Developer, Owner shall have the absolute unconditional right, in addition
to all other rights and remedies available to Owner at law or in equity, to terminate this Agreement by giving written notice of
such termination to Developer. Any one or more of the following events shall constitute an “Event of Default” by
Developer under this Agreement:

 

(a)          If
Developer shall fail to observe, perform or comply with any material term, covenant, agreement or condition of this Agreement which
is to be observed, performed or complied with by Developer under the provisions of this Agreement, and such failure shall continue
uncured for thirty (30) calendar days after the giving of written notice thereof by Owner to Developer specifying the nature of
such failure, unless such failure can be cured but is not susceptible of being cured within said thirty (30) calendar day period,
in which event such a failure shall not constitute an Event of Default if Developer commences curative action within said thirty
(30) calendar day period and thereafter prosecutes such action to completion with all due diligence and dispatch and completes
such cure within ninety (90) calendar days after the giving of such notice.

 

(b)          If
Developer shall make a general assignment for the benefit of creditors;

 

(c)          If
any petition shall be filed by or against Developer in any court, pursuant to any statute of the United States or of any State,
in any bankruptcy, reorganization, dissolution, liquidation, composition, extension, arrangement or insolvency proceedings, and
Developer files, consents to or directly or indirectly acquiesces to such petition;

 

(d)          If,
in any proceeding, a receiver, trustee, liquidator or similar court- appointed agent be appointed for all or a substantial portion
of the property or assets of Developer, and same shall not be discharged within thirty (30) calendar days after such appointment;

 

(e)          If
Developer shall misappropriate any funds of Owner or the Construction Lender in the possession or control of Developer (unless
such misappropriation is caused by personnel employed in the performance of Developer’s responsibilities and such individual’s
relationship with Developer is immediately terminated and the misappropriated funds are restored within five (5) Business Days
of such misappropriation);

 

(f)          If
Developer shall commit willful misconduct, gross negligence or an act of fraud against Owner or otherwise in connection with the
Construction Loan, the Project or the Development Work;

 

    	-23-

    	 

    

 

(g)          If,
at any time prior to the Completion Date, at least one of the Key Persons or another Person reasonably acceptable to the BR Investor
does not continue to be actively involved in the Project and able to perform his or her responsibilities as a representative of
the TCR Member;

 

(h)          Failure
to achieve the Completion Milestones; or

 

(i)          If
the TCR Member is removed as a Manager of Owner pursuant to Section 5.9 of the LLC Agreement.

 

12.3       Owner
Default. Upon the happening of any Event of Default by Owner, Developer shall have the absolute unconditional right, in addition
to all other rights and remedies available to Developer at law or in equity, to terminate this Agreement by giving written notice
of such termination to Owner. Any one or more of the following events shall constitute an “Event of Default” by
Owner under this Agreement:

 

(a)          If
Owner shall fail to observe, perform or comply with any material term, covenant, agreement or condition of this Agreement which
is to be observed, performed or complied with by Owner under the provisions of this Agreement, and such failure shall continue
uncured for thirty (30) calendar days after the giving of written notice thereof by Developer to Owner specifying the nature of
such failure, unless such failure can be cured but is not susceptible of being cured within said thirty (30) calendar day period,
in which event such a failure shall not constitute an Event of Default if Owner commences curative action within said thirty (30)
calendar day period and thereafter prosecutes such action to completion with all due diligence and dispatch and completes such
cure within ninety (90) calendar days after the giving of such notice.

 

(b)          If
Owner shall make a general assignment for the benefit of creditors;

 

(c)          If
any petition shall be filed by or against Owner in any court, pursuant to any statute of the United States or of any State, in
any bankruptcy, reorganization, dissolution, liquidation, composition, extension, arrangement or insolvency proceedings, and Owner
files, consents to or directly or indirectly acquiesces to such petition;

 

(d)          If,
in any proceeding, a receiver, trustee, liquidator or similar court- appointed agent be appointed for all or a substantial portion
of the property or assets of Owner, and same shall not be discharged within thirty (30) calendar days after such appointment; or

 

(e)          If
any amounts or sums due by Owner to Developer under this Agreement are not paid when due and such non-payment continues for thirty
(30) calendar days after written notice from Developer to Owner specifying the payment Owner has failed to make.

 

12.4        Obligation
for Fees and Expenses Upon Termination. Upon any termination of this Agreement pursuant to Section 12.2 or 12.3 herein, Owner
shall pay to Developer all amounts due to Developer as of the date of termination pursuant to the terms of this Agreement (including,
without limitation, any earned but unpaid installments of the Development Fee, if the termination is due to an Event of Default
by Developer, or the unpaid portion of the Development Fee, whether earned or not, if the termination is due to an Event of Default
by Owner), and upon the payment of all such amounts payable under this Section 12.4, Owner and Developer shall have no further
rights, duties, liabilities or obligations whatsoever under this Agreement, except those specifically stated to survive termination
in other provisions of this Agreement. The foregoing notwithstanding, unpaid portions of the Development Fee otherwise payable
to Developer shall not be payable to Developer in the event that this Agreement has terminated as a result of acts that are the
subject of Sections 12.3(c) and 12.3(d) or if the Project is foreclosed or transferred pursuant to a deed in lieu of foreclosure
as a result of the acts or omissions of Developer or its Affiliates, including the TCR Member or the Contractor.

 

    	-24-

    	 

    

  

12.5       Actions
Upon Termination. Upon any termination of this Agreement, Developer shall promptly account for and deliver to Owner any monies
due Owner under this Agreement, whether received before or after such termination, and shall provide final Monthly Reports covering
the period through termination of this Agreement, and shall deliver to Owner or to such other Person as Owner shall designate in
writing, all materials, supplies, equipment, keys, contracts, documents and books and records pertaining to this Agreement or the
development of the Property that are the property of Owner and are within the possession or control of Developer. Developer shall
also furnish all such information and take all such other action and shall cooperate with Owner as Owner shall reasonably require
in order to effectuate an orderly and systematic termination of Developer’s duties and activities hereunder and an orderly
and systematic transfer of duties to Developer’s successor. This Section 12.5 shall survive any termination of this Agreement.

 

ARTICLE 13

MISCELLANEOUS

 

13.1       Governing
Law; Venue. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING
EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. Each party hereby consents to the exclusive venue and jurisdiction of the state and federal
courts located within the State of New York, Borough of Manhattan, waives personal service of any and all process upon such party,
and consents to service of process by registered mail directed to such party at the address stated in Section 13.7, but service
so made shall be deemed to be completed only upon actual delivery thereof (whether accepted or refused) any contrary provision
of Section 13.7 notwithstanding. In addition, each party consents and agrees that venue of any action instituted under this Agreement
shall be proper only in the State of New York, Borough of Manhattan, and each party hereby waives any objection to venue.

 

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

 

13.3       Entire
Agreement. This Agreement contains the entire understanding among the parties with respect to its subject matter and supersedes
any prior understanding and agreements between them respecting the within subject matter. There are no representations, agreements,
arrangements or understandings, oral or written, between the parties hereto relating to the subject matter of this Agreement which
are not fully expressed herein.

 

13.4       Severability.
This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances,
rules and regulations. If any provision of this Agreement, or the application thereof to any Person or circumstance, shall, for
any reason and to any extent, be invalid or unenforceable, the remainder of this Agreement and the application of such provision
to other Persons or circumstances shall not be affected thereby, but rather shall be enforced to the greatest extent permitted
by law.

 

    	-25-

    	 

    

  

13.5       Section
Headings. The section headings are inserted only as a matter of convenience and for reference and in no way define, limit or
describe the scope or intent of this Agreement or in any way affect this Agreement.

 

13.6       No
Partnership; Competition. Neither Developer nor Owner shall by this Agreement in any way or for any purpose become a partner
of the other party in the conduct of its business, or otherwise, or a joint venturer of or a member of a joint enterprise with
the other party. Developer is and shall, for all purposes of this Agreement and the development of the Project and performance
of the Development Work, be deemed an “independent contractor” of Owner. It is expressly understood and agreed by the
parties hereto that either party and its Affiliates may engage in any other business or investment, including the ownership of,
or investment in, real estate and the development, operation, leasing and management of industrial, office, retail, residential
and other properties and that the other party hereto shall have no rights in and to any such business or investment or the income
or profit derived therefrom.

 

13.7       Notices.
All notices or other communications required or permitted hereunder shall be in writing and shall be delivered or sent, as the
case may be, by any of the following methods: (a) personal delivery with signed receipt; (b) nationally recognized overnight commercial
carrier or delivery service providing a receipt of delivery; (c) registered or certified mail (with postage prepaid and return
receipt requested); or (d) electronic mail, provided that confirmation of delivery thereof is received and a confirmation copy
is delivered within one (1) Business Day thereafter by one of the methods set forth in clauses (a), (b) or (c) of this Section
13.7 The effective date of any such notice or other communication shall be deemed to be the earlier of (i) if personally delivered,
the date of delivery to the address of the party to receive such notice; (ii) if delivered by overnight commercial carrier or delivery
service, one (1) Business Day following the receipt of such communication by such carrier or service from the sender, as shown
on the sender’s delivery invoice from such carrier or service, as the case may be; (iii) if mailed, three (3) Business Days
after the date of posting as shown on the sender’s registry or certification receipt; or (iv) if delivered by electronic
mail, upon the date of transmission (provided a notice of transmission failure is not received by the sender (for avoidance of
doubt, an "automatic out-of office reply" shall not constitute a notice of transmission failure), provided such additional
notice is given as described in clause (d) of this Section 13.7. Any reference herein to the date of receipt, delivery, or giving,
as the case may be, of any notice or other communication shall refer to the date such communication becomes effective under the
terms of this Section 13.7. The addresses for purposes of the giving of notices hereunder are:

 

If to Developer:

 

Maple Multi-Family Operations, L.L.C.

820 Gessner Road, Suite 760

Houston, TX 77024

Attn: Sean Rae

Email: srae@tcresidential.com

 

    	-26-

    	 

    

  

With a copy to:

 

Michael K. Ording

Jones Day

P.O. Box 165017

Columbus, Ohio 43216-5017

Email: mkording@jonesday.com

 

If to Owner:

 

BR Bellaire Blvd, LLC

820 Gessner Road, Suite 760

Houston, TX 77024 Attn: Sean Rae

Email: srae@tcresidential.com

 

With a copy to:

 

Bluerock Real Estate, L.L.C.

712 Fifth Avenue

9th Floor

New York, NY 10019

Attn: Ryan MacDonald and Michael Konig,
Esq.

Email: rmacdonald@bluerockre.com
and mkonig@bluerockre.com

 

And

 

Michael K. Ording

Jones Day

P.O. Box 165017

Columbus, Ohio 43216-5017

Email: mkording@jonesday.com

 

And

 

Hirschler Fleischer

2100 East Cary Street

Richmond, VA 23223-7078

Attn: S. Edward Flanagan

Email: EFlanagan@hf-law.com

 

    	-27-

    	 

    

  

A party may change its address
for purposes of the giving of notices hereunder by notice given in accordance with this Section 13.7.

 

13.8       Assignment.

 

13.8.1           Except
as otherwise provided in Section 13.8.2 below, neither party hereto shall have the right to assign this Agreement or any of its
rights hereunder without the prior written consent of the other party, and any such assignment in the absence of such written consent
shall for all purposes be deemed null and void.

 

13.8.2       Notwithstanding
the provisions of Section 13.8.1 hereof, Owner shall have the absolute right and privilege, at its sole option and in its sole
discretion, at any time and from time to time, to assign Owner’s rights and interests under this Agreement, subject to the
provisions hereof and all of the rights of Developer hereunder, in whole or in part, to the Construction Lender as collateral in
connection with the Construction Loan procured by Owner and, in any such case, Developer will execute any reasonable Construction
Lender required documentation in connection therewith.

 

13.9       Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Whenever the terms “Owner” and “Developer” are used herein, they shall
be deemed to mean and include Owner and Developer and their respective successors and permitted assigns in the same manner and
to the same extent as if specified each time said terms appear herein.

 

13.10       Estoppel
Certificates. Each party hereto shall, from time to time, upon not less than fifteen (15) calendar days’ notice from
the other party, execute and deliver to the other party a certificate stating that this Agreement is unmodified and in full force
and effect, or, if modified, that this Agreement is in full force and effect as modified and stating the modifications, and stating
whether or not, to the best of the certifying party’s knowledge, the other party is in default in any respect under this
Agreement, and, if in default, specifying the nature and character of such default.

 

13.11       Amendment.
This Agreement may not be amended, altered or modified except by an instrument in writing signed by the parties hereto.

 

13.12         Construction.
The parties agree that they have both participated equally in the negotiation and preparation of this Agreement and no court construing
this Agreement or the rights of the parties hereunder shall be prejudiced toward either party by reason of the rule of construction
that a document is to be construed more strictly against the party or parties who prepared the same.

 

13.13       No
Waiver. No waiver by either party of any default of any other party or of any event, circumstance or condition permitting a
party to terminate this Agreement shall constitute a waiver of any other default of the other party or of any other event, circumstance
or condition, permitting such termination, whether of the same or of any other nature or type and whether preceding, concurrent
or succeeding; and no failure on the part of either party to exercise any right it may have by the terms hereof or by law upon
the default of the other party and no delay in the exercise of such right shall prevent the exercise thereof by the non-defaulting
party at any time when the other party may continue to be so in default, and no such failure or delay and no waiver of default
shall operate as a waiver of any other default or as a modification in any respect of the provisions of this Agreement. The subsequent
acceptance of any payment or performance pursuant to this Agreement shall not constitute a waiver of any preceding default by a
defaulting party or of any preceding event, circumstance or condition permitting termination hereunder, other than default in the
payment of the particular payment or the performance of the particular matter so accepted, regardless of the non-defaulting party’s
knowledge of the preceding default or the preceding event, circumstance or condition at the time of accepting such payment or performance,
nor shall the non-defaulting party’s acceptance of such payment or performance after termination constitute a reinstatement,
extension or renewal of this Agreement or revocation of any notice or other act by the non-defaulting party.

 

    	-28-

    	 

    

  

13.14       Attorneys’
Fees. Should any litigation be commenced between the parties hereto concerning any provision of this Agreement or the rights
and duties of any party in relation thereto, the party prevailing in such litigation shall be entitled, in addition to such other
relief as may be granted, to an award of all reasonable attorneys’ fees and costs incurred in such litigation, without regard
to any schedule or rule of court purporting to restrict such an award, including, without limitation, reasonable attorneys’
fees, costs and expenses incurred in connection with (i) enforcing, perfecting and executing such judgment; (ii) post-judgment
motions; (iii) contempt proceedings; (iv) garnishment, levee, and debtor and third-party examinations; (v) discovery; and (vi)
bankruptcy litigation.

 

13.15       Mutual
Waivers of Jury Trial. Developer and Owner each hereby expressly, irrevocably, fully and forever releases, waives and relinquishes
any and all rights to trial by jury in any claim, demand, action, suit, proceeding or cause of action in which Developer or Owner
is a party, which in any way (directly or indirectly) arises out of, results from or relates to any of the following, in either
case whether now existing or hereafter arising and whether based on contract or tort or any other legal basis: (i) this Agreement
or any past, present or future act, omission, conduct or activity with respect to this Agreement; (ii) any transaction, event or
occurrence contemplated by this Agreement; (iii) the performance of any obligation or the exercise of any right under this Agreement;
or (iv) the enforcement of this Agreement. Developer and Owner each understands that trial by jury is a federal and state constitutional
right and Developer and Owner each acknowledge that it is their intent to waive such rights herein. Developer and Owner each further
acknowledge that the consideration specified in this Agreement includes consideration for waivers of trial by jury by Developer
and Owner.

 

13.16       Equitable
Remedies. Each party hereto shall, in addition to all other rights provided herein or as may be provided by law, and subject
to the limitations set forth herein, be entitled to all equitable remedies, including those of specific performance and injunction,
to enforce such party’s rights hereunder.

 

13.17       Remedies
Cumulative. Each right, power, and remedy provided for herein or now or hereafter existing at law, in equity, by statute or
otherwise shall be cumulative and concurrent and shall be in addition to every other right, power, or remedy provided for herein
or now or hereafter existing at law, in equity, by statute or otherwise, and the exercise or beginning of the exercise or the forbearance
of exercise by any party of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise
by such party of any or all of such other rights, powers or remedies.

 

    	-29-

    	 

    

  

13.18       Survival.         All
provisions of this Article 13 shall survive the completion of Developer’s services hereunder or any termination of this
Agreement.

 

[Signature Page Follows]

 

    	-30-

    	 

    

  

IN WITNESS WHEREOF, Owner
and Developer have caused this Agreement to be executed on the day, month and year first above dated.

 

 

	BR Bellaire Blvd, LLC	Maple Multi-Family Operations, L.L.C.
	 	 	 
	By:	Blaire House, LLC, a Delaware limited	 
	 	liability company, a manager	 

	 	 	 	By:	/s/ Stan D. Rae
	 	By:	HCH 114 Southside, L.P., a	Name:	Sean D. Rae
	 	 	Delaware limited partnership, its	Title:	Vice President
	 	 	manager	 	 

 

	 	 	By:	Maple Multi-Family Development, 	 
	 	 	 	L.L.C., a Texas limited liability 	 
	 	 	 	company, general partner	 

 

	 	 	 	By:	/s/ Donna C Kruger	 
	 	 	 	Name:	Donna C. Kruger	 
	 	 	 	Title:	Vice President	 

 

[Signature Page to Development Agreement]

 

    	 

    	 

    

 

EXHIBIT A

LEGAL DESCRIPTION

 

METES AND BOUNDS DESCRIPTION

4.220 ACRES (183,812 SQUARE FEET)

A.C. REYNOLDS SURVEY,
ABSTRACT NUMBER 61

HARRIS COUNTY, TEXAS

 

Being a tract or parcel containing
4.220 acres (183,812 square feet) of land situated in the A.C. Reynolds Survey, Abstract Number 61, Harris County, Texas, being
all of Lots 79 and 80 and a portion of Lots 77, 78 and 81 of Cambridge Place, a subdivision of record in Volume 4, Page 55 of the
Map records of Harris County, Texas, and being all of a called 41,179 square foot tract known as Tract 1, all of a called 75,664
square foot tract known as Tract 2 and all of a called 67,002 square foot tract known as tract 3, as conveyed to Prokop Industries
BH LP under Harris County Clerk’s File Number 20070414341, said 4.220 acre tract being more particularly described by metes
and bounds as follows (bearings are based on the Texas State Plane Coordinate System, south central zone NAD 83);

 

BEGINNING at a 5/8-inch
iron rod with cap found in the west right-of-way line of Academy Street (60 feet wide), as recorded in Volume 22, Page 29 of the
Map Records of Harris County, Texas, marking the northeast corner of Block 1 of Ayrshire Addition, a subdivision of record in Volume
22, Page 29 of the Map Records of Harris County, Texas, same being the southeast corner of said Lot 77, the southeast corner of
said Tract 1 and the southeast corner of the herein described tract, from which a 5/8-inch iron rod with cap found marking the
intersection of the west right-of-way line of said Academy Street and the north right-of- way line of Gramercy Street bears South
02°14’47” East, 133.98 feet;

 

THENCE South 87°23’44”
West, along the north line of said Block 1, a distance of 472.00 feet to a 5/8- inch iron rod with cap found marking the southeast
corner of a called 2.793 acre tract, as described in deed to Tropicana, Inc. under Harris County Clerk’s File Number F680795,
the southwest corner of said Tract 2 and the southwest corner of the herein described tract;

 

THENCE North 02°14’47”
West, over and across said Lot 81 and along the east line of said called 2.793 acre tract, a distance of 430.05 feet (called 430.13
feet) to a 5/8-inch iron rod with cap stamped “Terra Surveying” set in the south right-of-way line of Bellaire Boulevard
(120 feet wide), as recorded in Volume 4, Page 55 of the Map Records of Harris County, Texas, same being the northeast corner of
said called 2.793 acre tract, the northwest corner of said Tract 2 and the northwest corner of the herein described tract;

 

THENCE North 87°34’33”
East, along the south right-of-way line of said Bellaire Boulevard, a distance of 332.00 feet to a point for the northwest corner
of a tract of land conveyed to Big Diamond Number 1, Inc. under Harris County Clerk’s File Number 20100055641, same being
the northeast corner of said Tract 3 and the most northerly northeast corner of the herein described tract, from which a found
5/8-inch iron rod with cap bears North 15°38’ West 0.35 feet;

 

THENCE
South 02°14’47” East, over and across said Lot 78 and along the east line of said Tract 3, a distance of 134.22
feet (called 135.00 feet) to a 5/8-inch iron rod found marking the southwest corner of said Big Diamond Number 1, Inc. tract, the
northwest corner of said Tract 1 and an interior corner of the herein described tract;

 

THENCE North 87°44’00”
East, over and across said Lots 78 and 77 and along the north line of said Tract 1, a distance of 140.00 feet to a 5/8-inch iron
rod with cap found in the west right-of-way line of said Academy Street, marking the southeast corner of said Big Diamond Number
1, Inc. tract, the northeast corner of said Tract 1 and the most easterly northeast corner of the herein described tract;

 

THENCE South 02°14’47”
East, along the west right-of-way line of said Academy Street, a distance of 293.96 feet to the POINT OF BEGINNING and
containing 4.220 acres (183,812 square feet) of land. This description is based on an ALTA/ACSM Land Title Survey made by Terra
Surveying Company, Inc., dated September 27, 2014, TSC Project Number 1617-1441-S.

 

Compiled by: Michael Sissenwein 

Checked by: George
Collison, RPLS

 Terra Surveying Company, Inc.

3000 Wilcrest Drive, Suite 210

Houston, Texas 77042

1617-1441-4.220ac mb.docx

 

    	A-1

    	 

    

 

EXHIBIT B

SPECIALISTS AND CONSULTANTS

 

	Architect	 	EDI International, Inc.
	Civil Engineer	 	Kimley-Horn & Associates, Inc. 
	Structural Engineer	 	Schultz Burman Engineering, PLLC 
	MEP Engineer	 	HGE Consulting, Inc.
	Landscape Architect	 	Kudela & Weinheimer, L.P. 
	Interior Designer	 	Architecture and Interiors, LLC

 

    	B-1

    	 

    

 

EXHIBIT C

 

PLANS AND SPECIFICATIONS

 

    	C-1

    	 

    

  

	DRAWING

        NUMBER
	 	DRAWING
                                         TITLE

	 	25% PROGRESS

    REVIEW ISSUE	 	 
	GENERAL: 	 	GARAGE ONLY 	 	REVIEW	 	 
	GG00	 	Cover Sheet - Garage ONLY	 	12/17/2014	 	 
	GG02	 	Tabulations, Symbols and Abbreviations	 	12/17/2014	 	 
	GG03	 	Building Code Analysis - Garage ONLY	 	12/17/2014	 	 
	GG34	 	Assemblies	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	ARCHITECTURAL:  GARAGE ONLY	 	REVIEW	 	 
	AG101	 	Level B2: Garage Building Plan	 	12/17/2014	 	 
	AG102	 	Level B1: Garage Building Plan	 	12/17/2014	 	 
	AG103	 	Level GF: Garage Building Plan	 	12/17/2014	 	 
	AG103a	 	Level GF: Garage Dimension Control Plan	 	12/17/2014	 	 
	AG105	 	Level 3F: Garage Building Plan	 	12/17/2014	 	 
	AG106	 	Level 4F: Garage Building Plan	 	12/17/2014	 	 
	AG107	 	Level 5F: Garage Building Plan	 	12/17/2014	 	 
	AG300	 	Garage Building Sections	 	12/17/2014	 	 
	AG316	 	Stair 6: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG317	 	Stair 7: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG318	 	Stair 8: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG319	 	Stairs 9 & 10: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG321	 	Elevators 1 & 2 and Trash-1: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG322	 	Elevators 2 & 3: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG502	 	Details - Misc at Garage	 	12/17/2014	 	 
	AG521	 	Details - Door	 	12/17/2014	 	 
	AG541	 	Details - Stairs	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	CIVIL	 	REVIEW	 	 
	C0.0	 	Cover Sheet	 	12/17/2014	 	 
	C1.0	 	Paving Plan and Dimension Control Plan	 	12/17/2014	 	 
	C2.0	 	Utility Plan	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	LANDSCAPING	 	REVIEW	 	 
	L1.01	 	Materials Plan	 	12/17/2014	 	 
	L1.02	 	Materials Plan	 	12/17/2014	 	 
	L3.01	 	Pool Details	 	12/17/2014	 	 

 

    	D-1

    	 

    

  

	L3.02	 	Construction Details	 	12/17/2014	 	 
	L5.01	 	Permit Planting Plan	 	12/17/2014	 	 
	L5.02	 	Permit Planting Plan	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	GENERAL: APARTMENTS	 	REVIEW	 	 
	GA00	 	Cover Sheet	 	12/17/2014	 	 
	GA28a	 	Accessibility Summary - TAS	 	12/17/2014	 	 
	GA28b	 	Accessibility Summary - TAS	 	12/17/2014	 	 
	GA28c	 	Accessibility Summary - TAS	 	12/17/2014	 	 
	GA29	 	Accessibility Summary - FHA	 	12/17/2014	 	 
	GA29	 	Accessibility Summary - FHA	 	12/17/2014	 	 
	GA31	 	Assemblies	 	12/17/2014	 	 
	GA32	 	Assemblies	 	12/17/2014	 	 
	GA33	 	Assemblies	 	12/17/2014	 	 
	GA34	 	Assemblies	 	12/17/2014	 	 
	GA35	 	Assemblies	 	12/17/2014	 	 
	GA36	 	Assemblies	 	12/17/2014	 	 
	GA38	 	Assemblies	 	12/17/2014	 	 
	GA39	 	Assemblies	 	12/17/2014	 	 
	GA40	 	Assemblies	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	ARCHITECTURAL: APARTMENTS	 	REVIEW	 	 
	A101	 	Building Plan - Basement 2 Floor	 	12/17/2014	 	 
	A102	 	Building Plan - Basement 1 Floor	 	12/17/2014	 	 
	A103	 	Building Plan - GF Ground Floor	 	12/17/2014	 	 
	A104	 	Building Plan - 2F Second Floor	 	12/17/2014	 	 
	A105	 	Building Plan - 3F Third Floor	 	12/17/2014	 	 
	A106	 	Building Plan - 4F Fourth Floor	 	12/17/2014	 	 
	A107	 	Building Plan - 5F Floor (Garage ) Roof Plan at Apts.	 	12/17/2014	 	 
	A201	 	Building Elevations	 	12/17/2014	 	 
	A202	 	Building Elevations	 	12/17/2014	 	 
	A203	 	Building Elevations	 	12/17/2014	 	 
	A203	 	Building Elevations	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	A324	 	Stair 2: Enlarged Plans & Sections	 	12/17/2014	 	 
	A325	 	Stair 5, 6 & 7: Enlarged Plans & Sections	 	12/17/2014	 	 
	A325	 	Stair 3: Enlarged Plans & Sections	 	12/17/2014	 	 
	A326	 	Stair 4: Enlarged Plans & Sections	 	12/17/2014	 	 
	A327	 	Stair 5: Enlarged Plans & Sections	 	12/17/2014	 	 
	A328	 	Stair 6: Enlarged Plans & Sections	 	12/17/2014	 	 
	A329	 	Stair 8 & Stair 9: Enlarged Plans & Sections	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	A400	 	Unit E1	 	12/17/2014	 	 
	A410	 	Unit A1	 	12/17/2014	 	 
	A411	 	Unit A2	 	12/17/2014	 	 
	A413	 	Unit A5	 	12/17/2014	 	 
	A414	 	Unit A6	 	12/19/2014	 	 

 

    	D-2

    	 

    

  

	A430	 	Unit B1	 	12/17/2014	 	 
	A431	 	Unit B2	 	12/19/2014	 	 
	A432	 	Unit B3	 	12/19/2014	 	 
	A433	 	Unit B4	 	12/19/2014	 	 
	 	 	 	 	 	 	 
	STRUCTURAL:	 	REVIEW	 	 
	S0-0	 	Cover Sheet Drawing List Index	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	S1-0	 	Overall Foundation Plan	 	12/17/2014	 	 
	SD0-1	 	Schedules	 	12/17/2014	 	 
	SD1-1	 	Foundation Details	 	12/17/2014	 	 
	SD2-1	 	Floor Framing Details	 	12/17/2014	 	 
	SD3-1	 	Building Sections, Shear Wall Sections	 	12/17/2014	 	 
	SD3-2	 	Shear Wall Framing Details	 	12/17/2014	 	 
	SD4-1	 	Roof Framing Details	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	GS1-1	 	Garage Basement 1 Plan	 	12/17/2014	 	 
	GS1-2	 	Garage Basement 2 Plan	 	12/17/2014	 	 
	GS1-3	 	Garage Basement 3 Plan	 	12/17/2014	 	 
	GS2-1	 	Garage Ground Floor Plan	 	12/17/2014	 	 
	GS2-2	 	Garage 2nd Floor Plan	 	12/17/2014	 	 
	GS2-3	 	Garage 3rd Floor Plan	 	12/17/2014	 	 
	GS2-4	 	Garage 4th Floor Plan	 	12/17/2014	 	 
	GS2-5	 	Garage 5th Floor Plan	 	12/17/2014	 	 
	GS3-1	 	Garage Foundation Details	 	12/17/2014	 	 
	GS3-2	 	Garage Foundation Details	 	12/17/2014	 	 
	GS3-3	 	Garage Foundation Details	 	12/17/2014	 	 
	GS4-1	 	Garage Elevated Details	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	PS1-1	 	Club Podium Foundation Plan	 	12/17/2014	 	 
	PS1-2	 	Fitness Podium Foundation Plan	 	12/17/2014	 	 
	PS2-1	 	Second Level Club Podium Plan	 	12/17/2014	 	 
	PS2-2	 	Second Level Fitness Podium Plan	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	MECHANICAL	 	REVIEW	 	 
	M-4.1	 	Partial Ground Floor Plan NW	 	12/17/2014	 	 
	M-4.2	 	Partial Ground Floor Plan NE	 	12/17/2014	 	 
	M-4.3	 	Partial Ground Floor Plan SW	 	12/17/2014	 	 
	M-4.4	 	Partial Ground Floor Plan SE	 	12/17/2014	 	 
	M-4.5	 	Partial 2nd & 3rd Floor Plan NW	 	12/17/2014	 	 
	M-4.8	 	Partial 2nd & 3rd Floor Plan SE	 	12/17/2014	 	 
	ELECTRICAL	 	REVIEW	 	 
	E-4.1	 	Partial Ground Floor Plan NW	 	12/17/2014	 	 
	E-4.2	 	Partial Ground Floor Plan NE	 	12/17/2014	 	 
	E-4.3	 	Partial Ground Floor Plan SW	 	12/17/2014	 	 
	E-4.4	 	Partial Ground Floor Plan SE	 	12/17/2014	 	 
	E-4.3	 	Partial Ground Floor Plan SW	 	12/17/2014	 	 
	E-4.2	 	Partial Ground Floor Plan NE	 	12/17/2014	 	 

 

    	D-3

    	 

    

  

	E-4.4	 	Partial Ground Floor Plan SE	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	PLUMBING	 	REVIEW	 	 
	P-1.1	 	Site Plan	 	12/17/2014	 	 
	GP-1.1	 	Garage Basement 2 Floor Plan	 	12/17/2014	 	 
	GP-1.2	 	Garage Basement 1 Floor Plan	 	12/17/2014	 	 
	GP-1.3	 	Garage Ground Floor Plan	 	12/17/2014	 	 
	GP-1.4	 	Garage 2nd Floor Plan	 	12/17/2014	 	 
	GP-1.5	 	Garage 3rd & 4th Floor Plan	 	12/17/2014	 	 
	GP-1.6	 	Garage 5th Floor Plan	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	FIRE PROTECTION	 	REVIEW	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	INTERIOR DESIGN (Leasing/Club and Outdoor Living)	 	REVIEW	 	 

 

    	D-4

    	 

    

  

EXHIBIT D

DEVELOPMENT BUDGET

 

Development budget

	Cost Item	 	Total	 	 	Per Unit	 	 	Per SF	 
	Construction Hard Costs	 	$	38,226,362	 	 	$	141,579	 	 	$	158.00	 
	General Contractor (GC) Fee	 	$	1,911,318	 	 	$	7,079	 	 	$	7.90	 
	Land (Broker Fee)	 	$	200,000	 	 	$	741	 	 	$	0.83	 
	Taxes	 	$	600,000	 	 	$	2,222	 	 	$	2.48	 
	Legal	 	$	200,000	 	 	$	741	 	 	$	0.83	 
	Closing Costs	 	$	125,000	 	 	$	463	 	 	$	0.52	 
	Financing	 	$	205,090	 	 	$	760	 	 	$	0.85	 
	BlueRock Management Fee	 	$	50,000	 	 	$	185	 	 	$	0.21	 
	Architect	 	$	913,950	 	 	$	3,385	 	 	$	3.78	 
	Engineering & Surveying	 	$	200,000	 	 	$	741	 	 	$	0.83	 
	Marketing	 	$	325,000	 	 	$	1,204	 	 	$	1.34	 
	Construction Interest	 	$	948,127	 	 	$	3,512	 	 	$	3.92	 
	Ground Lease Through Stabilization	 	$	1,700,000	 	 	$	6,296	 	 	$	7.03	 
	Preleasing	 	$	275,000	 	 	$	1,019	 	 	$	1.14	 
	Leaseup Operating Deficit	 	$	567,421	 	 	$	2,102	 	 	$	2.35	 
	Overhead	 	$	1,413,842	 	 	$	5,236	 	 	$	5.84	 
	Soft Cost Contingency	 	$	375,000	 	 	$	1,389	 	 	$	1.55	 
	Investment Banking
    Fee	 	$	305,814	 	 	$	1,133	 	 	$	1.26	 
	Total
    Project Cost	 	$	48,541,923	 	 	$	179,785	 	 	$	200.64	 

 

    	D-5

    	 

    

  

EXHIBIT E

 

PROJECT DEVELOPMENT SCHEDULE

 

	January 9, 2015	Closing
	 	 
	May 4, 2015	Demolition Start
	 	 
	July 27, 2015	Construction Start
	 	 
	July 18, 2016	Frame Start
	 	 
	February 27, 2017	Delivery of First Units
	 	 
	December 4, 2017	Delivery of Last Units

 

    	E-1

    	 

    

 

EXHIBIT F

 

SAMPLE MONTHLY DRAW PACKAGE

 

(see attached)

 

    	 

    	 

    

  

REQUEST FOR ADVANCE

Houston, TX

 

Date:

 

Compass Bank, National Association

Street Address

City, State

(the “Lender”)

 

Re: Request for Advance to Pay Costs
under Construction Loan Agreement

dated __________, between _____________________ (“Borrower”)
and the Lender

 

Gentlemen:

The Borrower herby requests an advance under
the captioned Construction Le Agreement to pay costs heretofore incurred in connection with construction of the Improvements as
contemplated therein, in the amount

of ______________________

 

The costs lo be paid from the proceeds of such
advance are for the items listed on the continuation page(s) attached. To the extent that the advance will be used to pay Contractor(s),
an Application and Certificate for Payment form for each Contractor to be paid is also attached.

 

The status of costs of the Improvements is
as follows:

 

	Original projected costs	 	 
	 	 	 
	Net changes to date 	 	 
	 	 	 
	Current projection of costs	 	 
	 	 	 
	Total certified to date, including 	 	 
	amount of this certificate	 	 
	 	 	 
	Unpaid balance of projected costs	 	 
	(amount yet to be certified)	 	 

 

The Borrower hereby certifies and warrants
that (a) the amount above request has actually been incurred in connection with construction of said Improvements and that previous
advance has been made under said Construction Loan Agreement to pay any of the costs for which the Borrower hereby requests this
advance, and (b) the representation and warranties made In each of the Credit Documents described in the Construction Loan Agreement
are true and correct in all material respects on and as of the time of delivery hereof, with the same force and effect as If made
on and as of the time of delivery hereof.

 

    	 

    	 

    

  

	 	OWNER SIGNATURE BLOCK
	 	 
	 	By: Maple Multi-Family Development L.L.C., 
	 	a Texas limited liability company,
	 	its general partner

 

	 	By:	 
	 	 	 
	 	Name:	Sean D. Rae 
	 	 	 
	 	Title:	Vice President 

 

    	 

    	 

    

  

Draw Schedule Chart

 

    	 

    	 

    

 

 

    	 

    	 

    

  

Application and Certificate for Payment

 

    	 

    	 

    

 

 

 

    	 

    	 

    

  

NOTICE

 

This document waives
rights unconditionally and states that you have been paid for giving up those rights. It is prohibited for a person to require
you to sign this document if you have not been paid the payment amount set forth below.

 

UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS
PAYMENT

 

	Project:	Alexan City Center	 
	 	 	 
	Job No.	 	 

 

The signer of this
document has been paid and has received a progress payment in the sum of $ _______________________ for all labor, services, equipment, or materials
furnished to the property or to Maple Multi-Family TX Contractors, L.L.C., a Texas limited liability company (person
with whom signer contracted) on the property of __________________ (owner) located at 901 Town and Country Blvd.. Houston, Texas 77024 (location)
to the following extent: For all service and materials provided during pay application (job description). The signer
therefore waives and releases any mechanic's lien right, any right arising from a payment bond that compiles with a state or
federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule,
or statute related to claim or payment rights for persons in the signer's position that the signer has on the above
referenced project to the following extent:

This release covers a
progress payment for all labor, services, equipment, or materials furnished to the property or to Maple Multi-Family TX Contractors.
l. L.C.. a Texas limited liability company as indicated in the attached statement(s) or progress payment request(s), except
for unpaid retention, pending modifications and changes, or other items furnished.

 

    	 

    	 

    

  

The signer warrants that
the signer has already paid or will use the funds received from this progress payment to promptly pay in full all of the signer's
laborers, subcontractors, materialmen, and suppliers for all work, materials,. equipment, or services provided for or to the above
referenced project in regard to the attached statement(s) or progress payment request(s).

Date:___________

 

	 	 

	(Maple Multi-Family TX Contractor, L.L.C., a Texas limited liability company)

 

	By: 	Frend J. Severson	 
	 	 	 
	 	Vice President	 

 

STATE OF TEXAS

COUNTY OF             

 

This Unconditional Waiver
and Release on Progress Payment was acknowledged before me on this ______day of           ,
20 __, Frend J. Severson, on behalf of Maple Multi-Family TX Contractor, L.L.C., a Texas limited liability
company.

 

	 	 
	 	Notary
    Public - State of _____________________________
	 	My Commission Expires:	 

 

    	 

    	 

    

  

CONDITIONAL WAIVER AND RELEASE ON PROGRESS
PAYMENT

 

	Project 	Alexan City Center	 
	 	 	 
	Job No.	 	 

 

On receipt by the signer of this document
of a check from                in the sum of
$ _ payable to Maple Multi-Family TX Contractor. L.L.C., a Texas limited liability company and when the check has been
properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's
lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right,
any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons
in the signer's position that the signer has on the property of                    located
at 901 Town and Country Blvd., Houston. Texas 77024 to the following extent: For all service and materials provided
during pay application.

 

This release covers a
progress payment for all labor, services, equipment, or materials furnished to the property or to Maple Multi-Family TX Contractor.
L.L.C .. a Texas limited liability company as indicated in the attached statement(s) or progress payment request(s), except
for unpaid retention, pending modifications and changes, or other items furnished.

 

Before any recipient of
this document relies on this document, the recipient should verify evidence of payment to the signer.

 

The signer warrants that
the signer has already paid or will use the funds received from this progress payment to promptly pay in full all of the signer's
laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above
referenced project in regard to the attached statement(s) or progress payment request(s).

 

CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT
- PAGE 1

 

    	 

    	 

    

  

Date: ____________

 

	 	 

	(Maple Multi-Family TX Contractor, L.L.C., a Texas limited liability company)

 

	By:	Frend J. Severson	 
	 	 	 
	 	Vice President 	 

 

STATE OF TEXAS

 

COUNTY OF Harris

 

This Conditional
Waiver and Release on Progress Payment was acknowledged before me on this _____ day of _____________, 20 ____, by Frend J.
Severson, on behalf of Maple Multi-Family TX Contractor, l. L.C.. a Texas limited liability company.

 

	 	 
	 	Notary Public — State of ___________________________
	 	My Commission Expires:	 

 

CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT
- PAGE 2

 

    	 

    	 

    

  

EXHIBIT G 

INSURANCE REQUIREMENTS

 

Developer's Required Insurance:

 

(1)         Workers'
Compensation:

 

Workers' Compensation Insurance as required by
state statutes and laws where the Property is located or applicable Federal laws.

 

(2)         Employers
Liability:

 

Employers Liability coverage with limits no less than: {i) Bodily
Injury by Accident: $1,000,000 each Accident; (ii) Bodily Injury by Disease: $1,000,000 each employee; (iii) Bodily Injury by Disease:
$1,000,000 policy limit.

 

(3)         Automobile
Liability:

 

Owned (if any), non-owned and hired automobile
liability coverage with limits no less than $1,000,000 combined single limit, each accident, covering losses due to the insured's
liability for bodily injury or property damage.

 

(4)         Commercial
General Liability:

 

Policies of Commercial General Liability insurance
(ISO Form CG 0001-10/01 or equivalent) written on an occurrence basis against claims for bodily injury, property damage (including
loss of use thereof) and personal injury with limits of liability of at least: (i) $1,000,000 combined single limit each occurrence
for bodily injury and/or property damage, (ii) $1,000,000 for Personal and Advertising Injury, (iii) $2,000,000 General Aggregate
Limit (applying per project), and (iv) $2,000,000 Products and Completed Operations aggregate. Such CGL policy shall have no deductible
or self-insured retention greater than $25,000. Such deductible or self-insured retention shall be the responsibility of the Developer.
Modified occurrence and claims-made policies are not allowed.

 

The Owner, its Members and Managers, and their
respective Indemnified Parties shall be included as additional insureds for the operations or work performed by or on behalf of
Developer for the Owner under this Agreement. Such liability coverage shall be primary and non-contributory as to any other liability
insurance available to the Owner and the additional insureds. Additional insured coverage shall be provided to the fullest extent
allowed under law. Developer's liability insurance shall be primary without right of contribution by any other insurance or self
insurance maintained by or available to Owner, its Members and Managers or their affiliates.

 

The Developer's liability policy shall provide
coverage for premises, operations, products and completed operations, personal and advertising injury, fire damage legal liability,
cross-liability or severability of interests and contractual liability (also known as broad form contractual liability) for the
assumption of tort liability in business contracts.

 

    	 

    	 

    

 

Such liability coverage shall not exclude coverage
for the development and construction of residential multi-family apartment units, mixed commercial/residential apartment units,
or not-for-sale townhomes.

 

(5)         Excess
or Umbrella Liability:

 

Excess or Umbrella Liability Coverage excess
of and following form of: (i) the Commercial General Liability coverage specified in paragraph (4) above, in the amount of at least
$50,000,000 per occurrence and (ii) the Employers Liability and Automobile Liability coverage specified in paragraphs (2) and (3)
above, in amount of at least $50,000,000 per occurrence . . In accordance with the requirements of the Commercial General Liability
section above, and to the fullest extent allowed under law, the Owner, its Members and Managers and their respective Indemnified
Parties shall be included as additional insureds. Such Excess or Umbrella Liability Coverage shall be primary and non contributory
as to any other liability insurance available to the Owner and the additional insureds.

 

(6)         Completed
Operations:

 

For the Commercial General Liability insurance
required herein, including Umbrella and Excess liability insurance, completed operations coverage shall be carried for at least
10 years after the Completion Date or until the expiration of the statute of limitations or statute of repose for patent and latent
construction defect claims, whichever is more. The insurance obligation contained herein shall continue as specified regardless
of the extinguishment of other rights or duties under this Agreement by completion, termination or any other manner. This insurance
shall be primary and non-contributory as to any other liability insurance available to Owner or its Members and Managers. Such
completed operations coverage shall not exclude coverage for the development and construction of residential multi-family apartment
units, mixed commercial/residential apartment units, or not-for-sale townhomes.

 

Cost of Insurance:

 

Developer will be responsible for the cost of
the Workers' Compensation and Employer Liability insurance and, unless coverage is provided through policies providing joint coverage
to Owner and Developer, as provided below, Automobile Liability insurance. Owner will reimburse Developer for the cost of the Commercial
General Liability, Excess or Umbrella Liability and Completed Operations insurance (unless coverage is provided through policies
providing joint coverage to Owner and Developer, as provided below).

 

Joint Coverage:

 

The TCR Member (acting under the LLC Agreement)
may arrange all or any or the insurance required of Developer through policies providing joint coverage for Owner and Developer
in connection with the Project. If the TCR Member does so, Developer will not be required to maintain separate coverage for the
risks so insured.

 

    	 

    	 

    

  

EXHIBIT G

INSURANCE REQUIREMENTS

 

Developer's Required Insurance:

 

(1)         Workers'
Compensation:

 

Workers' Compensation Insurance as required
by state statutes and laws where the Property is located or applicable Federal laws.

 

(2)         Employers
Liability:

 

Employers Liability coverage with limits no
less than: (i) Bodily Injury by Accident:

$1,000,000 each Accident; (ii) Bodily Injury by
Disease: $1,000,000 each employee; (iii) Bodily Injury by Disease: $1,000,000 policy limit.

 

(3)         Automobile
Liability:

 

Owned (if any), non-owned and hired automobile
liability coverage with limits no less than $1,000,000 combined single limit, each accident, covering losses due to the insured's
liability for bodily injury or property damage.

 

(4)         Commercial
General Liability:

 

Policies of Commercial General Liability insurance
(ISO Form CG 0001-10/01 or equivalent) written on an occurrence basis against claims for bodily injury, property damage (including
loss of use thereof) and personal injury with limits of liability of at least: (i) $1,000,000 combined single limit each occurrence
for bodily injury and/or property damage, (ii) $1,000,000 for Personal and Advertising Injury, (iii) $2,000,000 General Aggregate
Limit (applying per project), and (iv) $2,000,000 Products and Completed Operations aggregate. Such CGL policy shall have no deductible
or self-insured retention greater than $25,000. Such deductible or self-insured retention shall be the responsibility of the Developer.
Modified occurrence and claims-made policies are not allowed.

 

The Owner, its Members and Managers, and their
respective Indemnified Parties shall be included as additional insureds for the operations or work performed by or on behalf of
Developer for the Owner under this Agreement. Such liability coverage shall be primary and non-contributory as to any other liability
insurance available to the Owner and the additional insureds. Additional insured coverage shall be provided to the fullest extent
allowed under law. Developer's liability insurance shall be primary without right of contribution by any other insurance or self
insurance maintained by or available to Owner, its Members and Managers or their Affiliates.

 

The Developer's liability policy shall provide
coverage for premises, operations, products and completed operations, personal and advertising injury, fire damage legal liability,
cross-liability or severability of interests and contractual liability (also known as broad form contractual liability) for the
assumption of tort liability in business contracts.

 

    	 

    	 

    

  

Such liability coverage shall not exclude coverage
for the development and construction of residential multi-family apartment units, mixed commercial/residential apartment units,
or not-for-sale townhomes.

 

(5)         Excess
or Umbrella Liability:

 

Excess or Umbrella Liability Coverage in excess
of and following form of: (i) the Commercial General Liability coverage specified in paragraph (4) above, in the amount of at least
$50,000,000 per occurrence and (ii) the Employers Liability and Automobile Liability coverage specified in paragraphs (2) and (3)
above, in amount of at least $50,000,000 per occurrence. In accordance with the requirements of the Commercial General Liability
section above, and to the fullest extent allowed under law, the Owner, its Members and Managers and their respective Indemnified
Parties shall be included as additional insureds. Such Excess or Umbrella Liability Coverage shall be primary and non contributory
as to any other liability insurance available to the Owner and the additional insureds.

 

(6)         Completed
Operations:

 

For the Commercial General Liability insurance
required herein, including Umbrella and Excess liability insurance, completed operations coverage shall be carried for at least
10 years after the Completion Date or until the expiration of the statute of limitations or statute of repose for patent and latent
construction defect claims, whichever is more. The insurance obligation contained herein shall continue as specified regardless
of the extinguishment of other rights or duties under this Agreement by completion, termination or any other manner. This insurance
shall be primary and non-contributory as to any other liability insurance available to Owner or its Members and Managers. Such
completed operations coverage shall not exclude coverage for the development and construction of residential multi-family apartment
units, mixed commercial/residential apartment units, or not-for-sale townhomes.

 

Cost of Insurance:

 

Developer will be responsible for the cost of
the Workers’ Compensation and Employer Liability insurance and, unless coverage is provided through policies providing joint
coverage to Owner and Developer, as provided below, Automobile Liability insurance. Owner will reimburse Developer for the cost
of the Commercial General Liability, Excess or Umbrella Liability and Completed Operations insurance (unless coverage is provided
through policies providing joint coverage to Owner and Developer, as provided below).

 

Joint Coverage:

 

The TCR Member (acting under the LLC Agreement)
may arrange all or any of the insurance required of Developer through policies providing joint coverage for Owner and Developer
in connection with the Project. If the TCR Member does so, Developer will not be required to maintain separate coverage for the
risks so insured.Exhibit 10.206 

 

LIMITED LIABILITY COMPANY AGREEMENT 

OF BR BELLAIRE BLVD, LLC

 

THIS LIMITED LIABILITY
COMPANY AGREEMENT (as amended from time to time, this “Agreement” or this “Limited Liability Company
Agreement”) is made and entered into this 9th day of January, 2015, by and between
Blaire House, LLC, a Delaware limited liability company (the “TCR Member”), and BR Southside Member, LLC, a
Delaware limited liability company (the “BR Member”).

 

RECITALS:

 

A.           BR
Bellaire Blvd, LLC (the “Company”) was formed effective as of December 18, 2014 by the filing of its Certificate
of Formation with the Secretary of State of Delaware.

 

B.           The
TCR Member and the BR Member desire to enter into this Agreement to reflect the current business arrangement among the Members.

 

NOW THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the TCR Member and the BR Member hereby
agree as follows:

 

ARTICLE 1.

DEFINITIONS

 

In addition to terms defined
in the body of this Limited Liability Company Agreement, the following terms when used in this Limited Liability Company Agreement
shall have the following meanings (unless otherwise expressly provided herein):

 

“1933 Act”
has the meaning set forth in Section 16.19.

 

“Act”
means the Delaware Limited Liability Company Act, as amended from time to time.

 

“Additional Capital
Contributions” means with respect to each Member, all additional Capital Contributions made by such Member pursuant to
Section 8.4.

 

“Additional Contribution
Priority Return” means an amount accruing at the rate of ten percent (10%) per annum on a Member's unreturned Additional
Capital Contributions (including all Dilution Contributions, but not Disproportionate Contributions) less all amounts actually
distributed to the Member pursuant to Sections 9.1(b). The Additional Contribution Priority Return shall be compounded monthly
and calculated on a cumulative basis.

 

“Adjusted Capital
Account Balance” means the balance, if any, in the Member’s Capital Account as of the end of the relevant taxable
year, after giving effect to the following adjustments: the Member’s Capital Account balance shall be increased by the amounts
which the Member is deemed obligated to restore pursuant to Regulations Section 1.704-1(b)(2)(ii)(c); and (ii) the Member’s
Capital Account balance shall be decreased by the items described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5), and (6).

 

    	1

    	 

    

  

“Affiliate”
means, as to any Person, (i) in the case of an individual, any relative of such Person (i.e. a sibling of such Person, a descendant
of such Person or any of such Person’s siblings, or the spouse of any of them) and (ii) any Entity controlling, controlled
by or under common control with such Person.

 

“Bankruptcy”
means, as to any Person, any of (i) the filing by the Person of a voluntary petition or the Person otherwise initiating proceedings
(A) to have the Person adjudicated insolvent, (B) seeking an order for relief of the Person as debtor under the United States Bankruptcy
Code, (C) seeking any composition, reorganization, readjustment, liquidation, dissolution, or similar relief under the present
or any future federal bankruptcy laws or any other present or future applicable federal, state, or other statute or law relative
to bankruptcy, insolvency, or other relief for debtors with respect to the Person or (D) seeking the appointment of any trustee,
receiver, conservator, assignee, sequestrator, custodian, liquidator or other similar official of the Person or of all or any substantial
part of its property; or (ii) the Person making any general assignment for the benefit of creditors of the Person.

 

“Bluerock Transferee” has the
meaning set forth in Section 12.2(a).

 

“BR Affiliate” has the meaning
set forth in Section 5.16.1.

 

“BR Cost Overrun Loan” has
the meaning set forth in Section 8.4.2.

 

“BR Member” has the meaning
set forth in the preamble to this Agreement.

 

“BR REIT” means Bluerock Residential
Growth REIT, Inc.

 

“Buy/Sell” has the meaning
set forth in Section 12.6.1.

 

“Buy/Sell Closing Date” has
the meaning set forth in Section 12.6.5.

 

“Capital Account”
means a capital account maintained in accordance with the rules contained in Treasury Regulations Section 1-704-1(b)(2).

 

“Capital Call” has the meaning
set forth in Section 8.1.2.

 

“Capital Contribution”
means the total amount of cash and the Gross Asset Value of any property (other than cash) contributed to the Company by a Member
pursuant to terms of this Agreement (minus any liabilities related to contributed property that the Company assumes or takes the
property subject to).

 

“Capital Proceeds”
means (i) the Company's share of the proceeds of a Capital Transaction after subtracting (A) payment of all expenses associated
with the Capital Transaction, (B) repayment of all secured and unsecured debts of Company required to be paid in connection with
such Capital Transaction or that the Managers determine should be paid in connection with such Capital Transaction, (C) all amounts
retained as Reserves and (D) all proceeds of the Capital Transaction applied to repair, restoration or improvements of the Project
and (ii) any amounts included in Reserves derived from Capital Contributions and/or Capital Transactions which the Managers determine
to distribute, excluding any Construction Recoveries (to the extent actually set aside or used to repair any related defects or
deficiencies from which the Construction Recoveries were derived or to reimburse the TCR Member or its Affiliates for costs that
they actually incurred to repair any such related defects or deficiencies).

 

    	2

    	 

    

  

“Capital Transaction”
means (i) a transaction pursuant to which the indebtedness of the Company (whether or not secured by the Project) is refinanced
or any additional borrowing by the Company, including the Loan; (ii) a sale, condemnation, exchange or other disposition of the
Project or any part thereof; (iii) an insurance recovery or receipt of condemnation proceeds related to the Project; or (iv) any
other transaction with respect to the Company which, in accordance with generally accepted accounting principles, is considered
capital in nature.

 

“Certificate of
Formation” means the certificate of formation of the Company filed with the Delaware Secretary of State as required by
the Act, as such certificate of formation may be amended or amended and restated from time to time.

 

“Code” means the Internal Revenue
Code of 1986, as amended from time to time.

 

“Company” has the meaning set
forth in the Recitals to this Agreement.

 

“Company Minimum
Gain” has the meaning assigned to “partnership minimum gain” in Regulations Section 1.704-2(b)(2), as determined
pursuant to Regulations Section 1.704-2(d).

 

“Completion Milestones”
means, for each of the phases of the Project identified in the table below, the date for such phase set forth in the table below,
as extended for delays resulting from Force Majeure Events of which the TCR Member or Developer promptly notifies Owner:

 

	Begin demolition of existing improvements	 	July 1, 2015
	Begin framing residential units 	 	July 18, 2016
	Delivery of first residential unit 	 	March 2, 2017
	Delivery of final residential unit	 	December 4, 2017

 

“Construction
Recoveries” means all recoveries from subcontractors, suppliers, insurers and similar persons in respect of construction
warranty obligations, construction defects or similar claims.

 

“Debt Service”
means, for any period, principal, interest and other required payments (including any required loan rebalancing or remargining
payments, except to the extent that such loan rebalancing is required by the Lender as a result of a Hard Cost Overrun or Soft
Cost Overrun) owing on the Loan or any other loan to the Company, but excluding any balloon payments due at maturity.

 

“Default Action(s)” has the
meaning set forth in Section 6.6.

 

“Defaulting Member” has the
meaning set forth in Section 8.4.4.

 

    	3

    	 

    

  

“Depreciation”
means, for each taxable year, an amount equal to the depreciation, amortization and other cost recovery deductions allowable under
the Code with respect to an asset for such taxable year, except that if the Gross Asset Value of an asset differs from its adjusted
basis for federal income tax purposes at the beginning of such taxable year, Depreciation shall be an amount which bears the same
ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization and other cost recovery deductions
for such taxable year bears to such beginning adjusted tax basis; provided, however, if the adjusted basis for federal income
tax purposes of an asset at the beginning of such taxable year is zero, Depreciation shall be determined with reference to such
beginning Gross Asset Value using any reasonable method selected by the Managers.

 

“Developer”
means Maple Multi-Family Operations, L.L.C., a Delaware limited liability company, an affiliate of the TCR Member.

 

“Development Agreement”
means that certain Development Agreement between the Company and Developer with respect to the Project, as the same may be amended
from time to time.

 

“Development Fee” has the meaning
set forth in Section 5.12.3.

 

“Dilution Contributions”
means any Additional Capital Contributions as to which a Member has obtained the benefit of the 3:1 multiplier under Section
8.4.6.

 

“Disproportionate
Contribution” means, in the case of the TCR Member, the unreturned Additional Capital Contributions (other than Dilution
Contributions) of the TCR Member in excess of one-ninth of the aggregate unreturned Additional Capital Contributions (other than
Dilution Contributions) of the BR Member and, in the case of the BR Member, the unreturned Additional Capital Contributions (other
than any Dilution Contributions) of the BR Member in excess of nine times the aggregate unreturned Additional Capital Contributions
(other than Dilution Contributions) of the TCR Member.

 

“Disproportionate
Contribution Priority Return” means (i) an amount accruing at the rate of nine percent (9%) per annum on a Member's unreturned
Disproportionate Contributions for Remargining Payments or payment of indemnity claims under Section 15.1 and at a rate
of twenty percent (20%) per annum on a Member's unreturned Disproportionate Contributions for purposes other than Remargining Payments
or such indemnity payments less (ii) all amounts actually distributed to the Member pursuant to Section 9.1(a) on account
of Disproportionate Contribution Priority Return. The Disproportionate Contribution Priority Return shall be compounded monthly
and calculated on a cumulative basis.

 

“Discretionary
Changes” means any modifications or changes that the Members agree to make to the Plans or the Project (and any applicable
corresponding changes to the Total Project Budget) that (i) are not required to complete the construction of the Project as originally
contemplated by the Plans and (ii) are not necessitated by deficiencies in the Plans or government- mandated revisions of the Plans
or the Project (except government-mandated revisions resulting from changes in building codes or other applicable laws after the
date of this Agreement). Discretionary Changes include, for example, upgrades/downgrades of interior or exterior finishes, additional/fewer
Project amenities, and increases/decreases in square footage.

 

“Distributions” means the distributions
payable (or deemed payable) to a Member.

 

    	4

    	 

    

 

“Due Date” has the meaning
set forth in Section 8.1.2.

 

“Economic Interest”
means a Member’s or Economic Interest Owner’s share of one or more of the Company’s Profits and Losses and distributions
of the Company’s assets pursuant to this Limited Liability Company Agreement and the Act, but shall not include any right
to vote on, consent to or otherwise participate in any decision of the Members or Managers.

 

“Economic Interest
Owner” means the owner of an Economic Interest who is not a Member.

 

“Entity”
means any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business trust,
cooperative, association, foreign trust or foreign business organization or other type of entity, including any governmental unit.

 

“Feasibility Period” has the
meaning set forth in the Ground Lease.

 

“Fiscal Year” means the Company’s
fiscal year, which shall be the calendar year.

 

“Force Majeure
Event” means acts of God, war, riots, civil insurrections, hurricanes, tornados, floods, earthquakes, epidemics or plagues,
acts or campaigns of terrorism or sabotage, interruptions to domestic or international transportation, trade restrictions, delays
caused by any governmental or quasi-governmental entity, shortages of materials, natural resources or labor, labor strikes, governmental
prohibitions or regulations including administrative delays in obtaining building permits, inability to obtain materials or any
other cause beyond the reasonable control of the Person seeking relief.

 

“Foreign Corrupt
Practices Act” means 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.

 

“GC Contract” has the meaning
set forth in Section 5.12.2.

 

“General Contractor”
means Maple Multi-Family TX Contractor, L.L.C., a Texas limited liability company, an affiliate of the TCR Member.

 

“Gross Asset Value”
means with respect to any asset, the asset’s adjusted basis for federal income tax purposes, except as follows:

 

(a)          The
initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset
on the date of the contribution as determined by the Managers;

 

(b)          The
Gross Asset Values of all Company assets shall be adjusted to equal their respective gross fair market values in accordance with
Regulations Section 1.704-1(b)(2)(iv)(g) (taking Code Section 7701(g) into account), as determined by agreement of the Managers,
as of the following times: (i) the acquisition of an additional Membership Interest by any new or existing Member in exchange for
more than a de minimis Capital Contribution; (ii) the distribution by the Company to a Member of more than a de minimis
amount of property as consideration for a Membership Interest; (iii) the grant of a Membership Interest in the Company (other
than a de minimis interest) as consideration for the provision of services to or for the benefit of the Company by a new
or existing Member acting in a Member capacity or in anticipation of being a Member; (iv) the liquidation of the Company within
the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); and (v) the grant of a noncompensatory option to acquire a Membership
Interest in the Company (other than an option for a de minimis interest); provided, however, that an adjustment pursuant
to clauses (i), (ii), (iii) and (v) shall be made only if the Managers reasonably determine that such adjustment is necessary or
appropriate to reflect the relative economic interests of the Members in the Company;

 

    	5

    	 

    

 

(c)          The
Gross Asset Value of any Company asset distributed to any Member (taking Code Section 7701(g) into account) shall be adjusted to
equal the gross fair market value of such asset on the date of distribution as reasonably determined by the Managers; and

 

(d)          The
Gross Asset Values of Company assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such
assets pursuant to Code Section 732(d), 734(b) or 743(b), but only to the extent that the adjustment is taken into account in determining
Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), provided that Gross Asset Values will not be adjusted
under this paragraph (d) to the extent that the Managers determine that an adjustment under paragraph (b) above is necessary or
appropriate in connection with a transaction that would otherwise result in an adjustment under this paragraph (d).

 

If the Gross Asset Value
of an asset has been determined or adjusted pursuant to paragraph (a), (b) (c) or (d) hereof, such Gross Asset Value shall thereafter
be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses.

 

“Ground Lease”
means that certain Ground Lease with respect to the Property to be entered into substantially concurrently with this Agreement
by and between the Company, as tenant, and PROKOP Industries BH, L.P., the owner of the fee interest in the Property, as landlord.

 

“Hard Costs”
means all items under the category heading “Hard Cost” in the Total Project Budget.

 

“Hard Cost Overrun”
means, from time to time, the amount by which (i) the aggregate Hard Costs incurred in connection with the development and construction
of the Project as of the date of measurement, excluding Hard Costs relating to Force Majeure Events or Discretionary Changes, exceed
(ii) the sum of (A) the portion of the Total Project Budget allocated to Hard Costs (after any reallocation among line items within
the Total Project Budget allowed by this Agreement), including the available Hard Cost contingency in the Total Project Budget,
(B) Construction Recoveries applied to payment of Hard Costs and (C) all insurance proceeds collected as a result of casualty losses
occurring prior to the Substantial Completion to the extent applied to payment of Hard Costs. Hard Cost Overruns include, without
duplication, loan rebalancing payments required by a Lender in connection with a Loan, but only to the extent that such loan rebalancing
payments are required by the Lender as a result of an actual or projected Hard Cost Overrun not relating to Force Majeure Events
or Discretionary Changes. Hard Cost Overruns also include overruns resulting from Non-Discretionary Changes but not overruns resulting
from Discretionary Changes.

 

    	6

    	 

    

 

“Indemnitee” has the meaning
set forth in Section 15.1.

 

“Initial Capital
Contribution” means the initial contribution (which may be made in multiple installments in accordance with the terms
hereof) to the capital of the Company made by a Member pursuant to this Limited Liability Company Agreement. The Initial Capital
Contributions of the Initial Members are set forth on Exhibit A.

 

“Initial Members”
means those persons identified on Exhibit A attached hereto and made a part hereof by this reference, who have executed
this Agreement.

 

“Internal Rate
of Return” and “IRR” means as of any date, the internal rate of return on the Total Investment
of a Member to such date (including giving credit for the 3:1 multiplier on the Member’s Additional Capital Contributions
as may occur under Section 8.4.6 below), calculated to be that discount rate (expressed on a percentage basis), compounded
monthly, which when applied to such Total Investment and the corresponding Distributions with respect thereto, causes the net present
value, as of such date, of such Distributions and Total Investment to equal zero. For this purpose, Capital Contributions and Distributions
shall be assumed to have occurred as of the first of the month nearest the actual date such Capital Contribution or Distribution
is made. The formula used to calculate IRR shall be: (1 + monthly IRR) ^ 12-1.

 

“Land Contract” has the meaning
set forth in Section 5.12.5.

 

“Lender” means Bank of America,
N.A.

 

“Limited Liability
Company Agreement” or “Agreement” means this Limited Liability Company Agreement, as amended from
time to time.

 

“Liquidators” has the meaning
set forth in Section 14.3.1.

 

“Loan”
means the construction loan obtained by the Company for the development of the Project in the approximate amount of $31,557,483.

 

“Loan Contingency” has the
meaning set forth in Section 8.1.4(a).

 

“Loan Guaranty” has the meaning
set forth in Section 6.5.2.

 

“Major Decision(s)” has the
meaning set forth in Section 7.7.

 

“Management Agreement”
has the meaning set forth in Section 5.15.

 

“Management Committee”
has the meaning set forth in Section 5.4.1.

 

“Management Company”
has the meaning set forth in Section 5.15.

 

“Managers”
means the BR Member and the TCR Member, or any other Person(s) that succeed such Persons in their capacities as Managers.

 

    	7

    	 

    

 

“Mandatory Developer Cost Overrun Loan”
has the meaning set forth in Section 8.4.5.

 

“Member”
means each of the Initial Members and each of the Persons who may hereafter become Members. To the extent a Manager has purchased
a Membership Interest in the Company, the Manager will have all the rights of a Member with respect to such Membership Interest,
and the term “Member” as used herein shall include a Manager to the extent it has purchased such Membership Interest
in the Company. If a Person is a Member immediately prior to the purchase or other acquisition by such Person of an Economic Interest,
such Person shall have all the rights of a Member with respect to both its existing Membership Interest and such purchased or otherwise
acquired Economic Interest, as the case may be. The initial Ownership Percentages associated with the Membership Interests of the
Members are set forth on Exhibit A attached hereto and incorporated herein by reference.

 

“Member Minimum
Gain” has the meaning assigned to “partner nonrecourse debt minimum gain” in Regulations Section 1.704-2(i)(2).

 

“Member Nonrecourse
Debt” has the meaning assigned to “partner nonrecourse debt” in Regulations Section 1.704-2(b)(4).

 

“Member Nonrecourse
Deductions” has the meaning assigned to “partner nonrecourse deduction” in Regulations Section 1.704-2(i)(1).

 

“Membership Interest”
means a Member’s entire interest in the Company including such Member’s Economic Interest and the right to participate
in the management of the business and affairs of the Company, including the right to vote on, consent to, or otherwise participate
in any decision or action of or by the Members granted pursuant to this Limited Liability Company Agreement or the Act.

 

“Net Cash Flow”
means, for any period, the total annual cash gross receipts of the Company during such period derived from Company's direct or
indirect interest in the Project and any and all sources, other than Capital Contributions or proceeds realized as a result of
a Capital Transaction during such period, together with any amounts included in Reserves (other than Reserve amounts derived from
Capital Contributions or Capital Transactions, unless such amounts are used to pay Debt Service, Operating Expenses or any balloon
payments on loans at maturity) from prior periods which the Managers determine to release less (i) Debt Service for such period
or any balloon payments on loans at maturity paid during such period (other than Debt Service or balloon payments paid from Capital
Contributions or proceeds from a Capital Transaction), (ii) the Operating Expenses of the Company paid during such period (other
than Operating Expenses paid from Capital Contributions or proceeds from a Capital Transaction), and (iii) any increases or replacements
in Reserves (other than from Capital Contributions or proceeds from a Capital Transaction) during such period.

 

“Non-Defaulting Member” has
the meaning set forth in Section 8.4.4.

 

“Non-Development
Cost Overrun” means any cost overruns with respect to Hard Costs or Soft Costs which are attributable to Force Majeure
Events, property taxes (unless attributable to failure to achieve the Completion Milestones), Debt Service (unless attributable
to failure to achieve the Completion Milestones) other than any balloon payments due on loans at maturity, Discretionary Changes
and/or operating deficits for the Project (unless attributable to failure to achieve the Completion Milestones).

 

    	8

    	 

    

 

“Non-Discretionary
Changes” means any modifications or changes that the Members are required to make to the Plans or to the Project (other
than Discretionary Changes), except a government-mandated modification or change resulting from changes in building codes or other
applicable laws after the date of this Agreement. Non-Discretionary Changes include, for example, changes to the Plans or the constructed
portions of the Project to correct design or construction deficiencies or to implement government-mandated revisions not resulting
from changes in building codes or other applicable laws after the date of this Agreement, or general contractor claims under the
GC Contract for increased compensation due to errors or inconsistencies in the Plans, concealed conditions, delays or other reasons,
in any such case unless resulting from a Force Majeure Event.

 

“Nonrecourse Deductions”
has the meaning assigned to it in Regulations Section 1.704-2(b)(1). The amount of Nonrecourse Deductions for a taxable year of
the Company equals the net increase, if any, in the amount of Company Minimum Gain during that taxable year, determined according
to the provisions of Regulations Section 1.704-2(c).

 

“Notices”
has the meaning set forth in Section 16.13.

 

“Offeree”
has the meaning set forth in Section 12.6.2.

 

“Offeror”
has the meaning set forth in Section 12.6.2.

 

“Operating Budget”
has the meaning set forth in Section 5.14.2.

 

“Operating Expenses”
means all cash expenditures made by the Company in connection with ground leasing, owning and operating the Project or otherwise
conducting its business (but excluding Hard Costs and Soft Costs).

 

“Ownership Percentage”
means, subject to adjustment pursuant to other provisions of this Agreement, the Ownership Percentage of each Member as described
on Exhibit A.

 

“Person”
means any individual or Entity, and the heirs, executors, administrators, legal representatives, successors, and assigns of such
“Person” where the context so permits.

 

“Plans”
means the plans and specifications for the Project identified in Exhibit D, as they may be updated from time to time by
(i) the mutual consent of all of the Members, (ii) changes made by the TCR Member in accordance with Section 7.7(s) or (iii)
changes made by the Developer to the extent permitted under Section 3.2.3 of the Development Agreement.

 

“Postal Service” has the meaning
set forth in Section 16.13.

 

“Principals” means Kenneth
J. Valach, Sean Rae and Scot Davis.

 

    	9

    	 

    

 

“Profits”
or “Losses” means, for each taxable year, an amount equal to the Company’s taxable loss or income, respectively,
for such taxable year, determined in accordance with Section 703(a) of the Code (and for this purpose, all items of income, gain,
loss, or reduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income
or loss), with the following adjustments:

 

(a)          Any
income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses
shall be added to such taxable income or loss;

 

(b)          Any
expenditures of the Company described in Section 705(a)(2)(B) of the Code, or treated as Code Section 705(a)(2)(B) expenditures
pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses shall
be subtracted from such taxable income or loss;

 

(c)          In
the event the Gross Asset Value of any Company asset is adjusted pursuant to paragraph (b) or (c) of the definition thereof, the
amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing
Profits or Losses;

 

(d)          Gain
or loss resulting from any disposition of Company property with respect to which gain or loss is recognized for federal income
tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of notwithstanding that the adjusted
tax basis of such property differs from its Gross Asset Value;

 

(e)          In
lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income
or loss, there shall be taken into account Depreciation for the taxable year;

 

(f)          To
the extent an adjustment to the tax basis of any Company asset pursuant to Code Section 734(b) is required pursuant to Treasury
Regulations Section 1.704 1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution
other than a complete liquidation of Member’s interest in the Company (within the meaning of the Code), the amount of such
adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment
decreases the basis of the asset) from the disposition of the asset and shall be taken into account for purposes of computing Profits
or Losses; and

 

(g)          Any
items which are specially allocated pursuant to Article 10 hereof shall not be taken into account in computing Profits or
Losses but shall be determined by applying rules analogous to those set forth in paragraphs (a) through (d) of this definition.

 

If the profit or loss for
a taxable year, as adjusted in the manner provided herein, is a positive amount, such amount shall be the Profits for such taxable
year; and if the profit or loss for a taxable year, as adjusted in the manner provided herein, is a negative amount, such amount
shall be the Losses for such taxable year.

 

“Project”
means a Class A rental apartment complex operating under the name “Alexan Southside” to be constructed upon the Property,
such complex to encompass approximately 269 units and approximately 240,486 net rentable square feet.

 

    	10

    	 

    

 

“Property”
means the ground leasehold estate in that certain real property located in Houston, Texas which is more particularly described
in Exhibit B attached hereto and incorporated herein, upon which the Company intends to develop the Project.

 

“Pursuit Costs”
means pre-development costs with respect the Project, such as earnest money deposits, and other related pursuit costs detailed
in the Pursuit Costs Budget and incurred in connection with the ground lease, acquisition and development of the Project.

 

“Pursuit Costs Budget” means
that certain budget attached hereto as Exhibit E.

 

“Regulatory Allocations” has
the meaning set forth in Section 10.3.1.

 

“Reimbursement Request” has
the meaning set forth in Section 8.1.1.

 

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

 

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

 

“REIT Prohibited Transaction”
has the meaning set forth in Section 5.16.3.

 

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

 

“Remargining Payment”
means any payment of principal on the Loan or another mortgage loan to the Company that is (i) to cover a gap between the outstanding
balance of the Loan or such other mortgage loan and proceeds of any mortgage loan obtained to refinance the Loan or such other
mortgage loan, (ii) to meet requirements for extension of the maturity of the Loan or such other mortgage loan or (iii) to satisfy
a remargining requirement that is part of the Loan or such other mortgage loan.

 

“Removal Action” has the meaning
set forth in Section 5.9.

 

“REOC” has the meaning set
forth in Section 5.16.1.

 

“Representatives” means the
meaning set forth in Section 5.4.1.

 

“Reserves”
means with respect to any fiscal period, funds set aside or amounts allocated to reserves for the Company during such period, which
shall be maintained in amounts deemed sufficient by the Managers for working capital, capital expenditures, repairs, replacements
and anticipated expenditures for paying taxes, insurance, debt service, ground lease rent or other costs or expenses incident to
the ownership of the Project or the operation of the Company’s business.

 

“Soft Cost(s)”
means all items under the category heading “Soft Cost” in the Total Project Budget. Soft Costs include, without limitation,
architectural and engineering fees and legal fees incurred by the Company.

 

    	11

    	 

    

 

“Soft Cost Overrun”
means, from time to time, the amount by which (i) the aggregate Soft Costs incurred in connection with the development and construction
of the Project as of the date of measurement, excluding Soft Costs relating to Force Majeure Events, property taxes (unless attributable
to failure to achieve the Completion Milestones), Debt Service (unless attributable to failure to achieve the Completion Milestones)
other than any balloon payments due on loans at maturity, Discretionary Changes and/or operating deficits for the Project (unless
attributable to failure to achieve the Completion Milestones), exceed (ii) the sum of (A) the portion of the Total Project Budget
allocated to Soft Costs (after any reallocation among line items within the Total Project Budget allowed by this Agreement), including
the available Soft Cost contingency in the Total Project Budget, (B) Construction Recoveries applied to payment of Soft Costs and
(C) all insurance proceeds collected as a result of casualty losses occurring prior to the Substantial Completion to the extent
applied to payment of Soft Costs. Soft Cost Overruns include, without duplication, loan rebalancing payments required by a Lender
in connection with a Loan, but only to the extent that such loan rebalancing payments are required by the Lender as a result of
an actual or projected Soft Cost Overrun not relating to Force Majeure Events, property taxes (unless attributable to failure to
achieve the Completion Milestones), Debt Service (unless attributable to failure to achieve the Completion Milestones) other than
any balloon payments due on loans at maturity, Discretionary Changes and/or operating deficits for the Project (unless attributable
to failure to achieve the Completion Milestones). Soft Cost Overruns include overruns resulting from Non-Discretionary Changes
but excludes overruns resulting from Discretionary Changes.

 

“Substantial Completion”
means (i) the architect for the Project has certified that the construction of the Project has been substantially completed in
accordance with the Plans (subject to completion of punch list items estimated to cost not more than $200,000) and (ii) a certificate
of occupancy or equivalent documentation has been issued with respect to the Project by appropriate governmental agencies.

 

“taxable year”
means a Fiscal Year or other period for which the Code or the Regulations requires Profits and Losses to be determined and allocated
to the Members for federal income tax purposes.

 

“TCR Change of
Control” shall be deemed to have occurred if, at any time prior to Substantial Completion, none of the Principals or
another Person reasonably acceptable to the BR Member continues to be actively involved in the Project and able to perform his
or her responsibilities as a representative of the TCR Member.

 

“TCR Cost Overrun Loan” has
the meaning set forth in Section 8.4.2.

 

“TCR Guarantors”
means CFP Residential, L.P., a Texas limited partnership, CFH Maple Residential Investor, L.P., a Texas limited partnership, VF
MultiFamily Holdings, Ltd., a Texas limited partnership, VF Residential, Ltd., a Texas limited partnership, and Maple Residential,
L.P., a Delaware limited partnership.

 

“TCR Indemnified Party” has
the meaning set forth in Section 5.9.

 

“TCR Member” has the meaning
set forth in the preamble to this Agreement.

 

“TCR Transferee” has the meaning
set forth in Section 12.2(b).

 

    	12

    	 

    

 

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

 

“Total Project
Budget” means the final budget annexed hereto as Exhibit C, as it may be updated from time to time by the mutual
consent of all of the Members or to allow for reallocation of line items by the TCR Member or the Developer in accordance with
Section 5.14.1 of this Agreement or Section 4.2 of the Development Agreement.

 

“Transfer” has the meaning
set forth in Section 12.1.

 

“Treasury Regulations”
or “Regulations” means the Income Tax Regulations promulgated under the Code, as amended from time to time (including
corresponding provisions of succeeding regulations).

 

“Valuation Amount” has the
meaning set forth in Section 12.6.2.

 

“UBTI” has the meaning set
forth in Section 5.16.2.

 

ARTICLE 2.

FORMATION OF COMPANY

 

2.1           Formation.
On December 18, 2014, the Company was formed as a Delaware limited liability company by executing and delivering the Certificate
of Formation to the Secretary of State of Delaware in accordance with the provisions of the Act.

 

2.2           Name.
The name of the Company is BR Bellaire Blvd, LLC. The Company may do business under that name and under any other name or names
which the Members select. If the Company does business under a name other than that set forth in its Certificate of Formation,
then the Company shall file a trade name certificate as required by law.

 

2.3           Principal
Place of Business. The principal place of business of the Company is 820 Gessner Road, Suite 760, Houston, Texas 77024. The
Company may locate its places of business at any other place or places as the Managers may from time to time deem advisable.

 

2.4           Registered
Office and Registered Agent. The Company’s initial registered office and the name of its initial registered agent shall
be as set forth in the Certificate of Formation. The registered office and registered agent may be changed from time to time by
filing the address of the new registered office and/or the name of the new registered agent with the Secretary of State of Delaware
pursuant to the Act.

 

2.5           Term.
The term of the Company commenced on the date the Certificate of Formation was filed with the Secretary of State of Delaware and
shall continue thereafter in perpetuity unless earlier dissolved in accordance with the provisions of this Limited Liability Company
Agreement or the Act.

 

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ARTICLE 3.

BUSINESS OF COMPANY

 

3.1           Permitted
Businesses. The business of the Company shall be:

 

(a)          To
acquire, ground lease, develop, sell, exchange, construct, improve, subdivide, mortgage, lease, maintain, transfer, operate, own
as an investment and/or otherwise engage in all general business activities related or incidental to the ownership and development
of the Property and the Project; and

 

(b)          To
engage in all activities necessary, customary, convenient, or incident to any of the foregoing.

 

The Members and the Managers
acknowledge that the Project is to be developed and held for investment with the intent of maximizing the return to the Members,
but such investment intent shall not preclude a disposition of the Project consistent with the terms of this Agreement. The Members
acknowledge that the current business plan for the Company does not contemplate a sale of the Project at a specific date.

 

ARTICLE 4.

NAMES AND ADDRESSES OF INITIAL MEMBERS

 

The names and addresses
of the Initial Members are set forth on Exhibit A attached hereto and by this reference made a part hereof.

 

ARTICLE 5.

RIGHTS AND DUTIES OF MANAGERS

 

5.1           Management.
The business and affairs of the Company shall be managed by its Managers, subject to the participation of the Management Committee
as provided in other provisions of this Agreement. Except for situations in which the approval of the Members is expressly required
by this Agreement or by nonwaivable provisions of applicable law or as otherwise set forth in this Agreement, the Managers shall
have full and complete authority, power and discretion to manage and control the business, affairs and properties of the Company,
to make all decisions regarding those matters and to perform any and all other acts or activities customary or incident to the
management of the Company’s business. Unless authorized to do so by this Agreement or by the Managers or the Management Committee,
no attorney-in-fact, employee or other agent of the Company shall have any power or authority to bind the Company in any way, to
pledge the Company’s credit or to render the Company pecuniarily liable for any purpose. No Member shall have any power or
authority to bind the Company unless the Member has been authorized by the Managers or the Management Committee to act as an agent
of the Company in accordance with the previous sentence. The day-to-day administration and management of the development and construction
of the Project will be delegated to the Developer pursuant to the terms, conditions and obligations of the Development Agreement.
In addition, the Managers hereby delegate to the TCR Member the authority (without further approval by the Managers or the Management
Committee) to implement any Operating Budget approved in accordance with the terms of this Limited Liability Company Agreement.

 

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5.2           Number
and Tenure. The Company shall have two (2) Managers, and BR Member and the TCR Member shall serve as the initial Managers.
Each Manager shall hold office until its successor shall have been elected and qualified or until its earlier resignation or removal.

 

5.3           Certain
Powers of Managers. Subject to receipt of the applicable approvals under Sections 5.4 and 7.7 below, the Managers
shall have power and authority, on behalf of the Company:

 

(a)          To
cause Company to acquire the Property, to enter into and perform its obligations under the Ground Lease, to close on the Loan and
to construct and develop the Project.

 

(b)          To
invest any Company funds (by way of example but not limitation) in time deposits, short-term governmental obligations, or other
investments, provided the funds in any such investment vehicle (other than governmental obligations or an investment vehicle that
holds only governmental obligations) are insured by the Federal Deposit Insurance Corporation (or its successor or replacement).

 

(c)          To
execute all instruments and documents, including, without limitation, checks, drafts, notes and other negotiable instruments; purchase
and sale agreements; mortgages or deeds of trust; security agreements; financing statements; deeds, ground leases, contracts, settlement
statements, agreements, affidavits and any other documents providing for the acquisition, mortgage or disposition of the Company’s
property; assignments; bills of sale; leases; and any other instruments or documents necessary, in the opinion of the Managers,
to the business of the Company.

 

(d)          To
purchase liability and other insurance to protect employees, officers, property and business.

 

(e)          Subject
to Section 5.14, to employ accountants, engineers, architects, surveyors, attorneys, managing agents, leasing agents, and
other experts to perform services for the Company and to compensate them from Company funds.

 

(f)          To
enter into any and all other agreements on behalf of the Company, with any other Person for any purpose, in such forms as the Managers
may approve.

 

(g)          To
create offices and designate officers, who need not be Members. Any such persons appointed to be officers of the Company may or
may not be employees of the Company, any Member, or any Affiliate thereof. Any officers so appointed shall have such authority
and perform such duties as the Managers may, from time to time, expressly delegate to them in writing and the officers so appointed
shall serve at the pleasure of the Managers.

 

(h)          To
borrow money for the Company from banks, other lending institutions, Managers, Members, or Affiliates of the Managers or Members
on such terms as the Managers deem appropriate and, in connection therewith, to hypothecate, encumber and grant security interests
in the assets of the Company to secure repayment of the borrowed sums.

 

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(i)          To
do and perform all other acts as may be necessary or appropriate to the conduct of the Company’s business, to the extent
such acts are not reserved unto the Members pursuant to another provision of this Agreement, including Section 7.7.

 

5.4           Management
Committee.

 

5.4.1           The
Managers and Members hereby establish a management committee (the “Management Committee”) for the Company for
the purpose of the Managers considering and approving actions pursuant to Section 5.3. The Management Committee shall consist
of four (4) individuals, each appointed to act as a representative of the Manager that appointed him or her (the “Representatives”)
as follows: (i) BR Member, or its successor as Manager, shall be entitled to designate two (2) Representatives to represent it
as Manager and (ii) TCR Member, or its successor as Manager, shall be entitled to designate two (2) Representatives to represent
it as Manager. The initial members of the Management Committee are set forth on Exhibit A.

 

5.4.2           Each
Representative as a member of the Management Committee, subject to this Section 5.4.2, shall hold office until death, resignation
or removal at the pleasure of the Manager that appointed him or her. Any Representative may resign at any time by giving written
notice to the Manager that appointed such Representative. The resignation of any Representative shall take effect upon receipt
of notice thereof by such Manager or at such later time as shall be specified in such notice; and, unless otherwise specified therein,
the acceptance of such resignation shall not be necessary to make it effective. A Representative shall also cease to be a member
of the Management Committee upon the resignation or removal as a Manager of the Company of the Manager that appointed such Representatives.
If a vacancy occurs on the Management Committee, the Manager with the right to appoint and remove such vacating Representative
shall appoint his or her successor. A Manager shall lose its right to have its Representatives vote on any item as of the date
on which such Manager ceases to be a Manager, including by means of removal under Section 5.9 or as otherwise provided in
this Agreement. If the BR Member transfers all or a portion of its Membership Interest to a transferee permitted by Section
12.2(a), such transferee shall automatically, and without any further action or authorization by any Manager or Member, succeed
to the rights and powers of the BR Member under this Section 5.4 as may be agreed to between the BR Member which is transferring
the Membership Interest, on the one hand, and the permitted transferee to which the Membership Interest is being transferred, on
the other hand, including the shared or unilateral right to appoint the Representatives that the BR Member was theretofore entitled
to appoint pursuant to this Section 5.4. If the TCR Member transfers all or a portion of its Membership Interest to a transferee
permitted pursuant to Section 12.2(b), such permitted transferee shall automatically, and without any further action or
authorization by any Manager or Member, succeed to the rights and powers of the TCR Member under this Section 5.4 as may
be agreed to between the TCR Member which is transferring the Membership Interest, on the one hand, and the permitted transferee
to which the Membership Interest is being transferred, on the other hand, including the shared or unilateral right to appoint the
Representatives that the TCR Member was theretofore entitled to appoint pursuant to this Section 5.4.

 

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5.4.3           The
Management Committee shall meet at least once every quarter (unless waived by mutual agreement of the Managers) and as otherwise
required. The only Representatives required to constitute a quorum for a meeting of the Management Committee shall be one (1) Representative
appointed by BR Member and one (1) Representative appointed by TCR Member; provided, however, if any Representative fails to attend
any meeting and as a result thereof the Management Committee is unable to obtain a quorum, and thereafter such Representative fails
to agree to reschedule and attend any such meeting within 15 days after receipt of written notice that the Management Committee
was unable to obtain a quorum, then a quorum can be obtained without the attendance of a Representative of the Manager who selected
the absent Representative.

 

5.4.4           Each
of the two (2) Representatives appointed by BR Member shall be entitled to cast one (1) vote on any matter that comes before the
Management Committee and each of the two (2) Representatives appointed by TCR Member shall be entitled to cast one (1) vote on
any matter that comes before the Management Committee; provided, however, that from and after the admission of BR REIT as a direct
or indirect owner of the BR Member and the BR Member delivering notice to the TCR Member that such admission has been complete,
each of the two (2) representatives appointed by the BR Member shall be entitled to cast two (2) votes on any matter that comes
before the Management Committee. Approval by the Management Committee of any matter (other than matters which are Major Decisions
under Section 7.7 or which may be made unilaterally by a Member, but only as expressly set forth in this Agreement) shall
require the affirmative vote of at least a majority of the votes of the Representatives then in office voting at a duly held meeting
of the Management Committee.

 

5.4.5           Any
meeting of the Management Committee may be held by telephone conference call, video conference or through similar communications
equipment by means of which all persons participating in the meeting can communicate with each other. Participation in a telephonic
and/or video conference meeting held pursuant to this Section 5.4.5 shall constitute presence in person at such meeting.

 

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

 

5.4.7           A
member of the Management Committee may act solely in the self interest of the Manager that appointed such member. A member of the
Management Committee will have no obligation to consider the interests of the Company or any Member or Manager other than the Manager
that appointed such member, nor will a member of the Management Committee have any fiduciary duty, duty of loyalty, duty of good
faith, duty to disclose or other duty or obligation whatsoever to the Company or any Member or Manager other than the Manager that
appointed such member. In considering the interest of the Manager that appointed such member, a member of the Management Committee
may take into account the Manager’s interest as a Member or a Manager or both. To the maximum extent permitted under applicable
law, each of the Company, the Members and the Managers hereby waives all duties and obligations, including any fiduciary duty,
duty of loyalty, duty of good faith, duty to disclose or other duty or obligation, that a member of the Management Committee otherwise
would have to it to the extent such duties and obligations are inconsistent with this Section 5.4.7.

 

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5.5           Limitation
of Liability. No Member, Manager or Representative has guaranteed, nor shall any of them have any obligation with respect to,
the return of a Member’s Capital Contributions or profits from the operation of the Company. Each Member, Manager or Representative
shall be entitled to rely on information, opinions, reports or statements, including but not limited to financial statements or
other financial data prepared or presented in accordance with the provisions of the Act. No Member, Manager or Representative shall
be liable to the Company or to any of the others of them for negligence or for mistakes of judgment or losses or liabilities due
to such negligence or for mistakes of judgment or to the negligence, dishonesty, unlawful acts or bad faith of any employee, broker
or other agent, accountant, attorney, other professional or person employed by the Company provided that such person was selected,
engaged, retained and supervised by such Member, Manager or Representative, as applicable, without gross negligence. No Member,
Manager or Representative shall have any liability to the Company or to any of the other of them for any loss suffered by the Company
which arises out of any action or inaction of such Member, Manager or Representative if, prior thereto, such Member, Manager or
Representative, in good faith, determined that such course of conduct was within the authority allowed to it by this Agreement
and such course of conduct did not constitute fraud, willful misconduct, a material breach of this Agreement or gross negligence.

 

5.6           Managers
and Representatives Have No Exclusive Duty to Company. A Manager or Representative shall not be required to manage the Company
as his, her or its sole and exclusive function and he, she or it may have other business interests and may engage in other activities
in addition to those relating to the Company. Neither the Company nor any Member shall have any right, by virtue of this Limited
Liability Company Agreement, to share or participate in such other investments or activities of a Manager or Representative or
to the income or proceeds derived therefrom. A Manager or Representative shall incur no liability to the Company or to any of the
Members as a result of engaging in any other business or venture. Nothing in this Section 5.6 limits the responsibility
of a Representative to the Manager that appointed such Representative.

 

5.7           Bank
Accounts. The Managers may from time to time open bank accounts, brokerage accounts and other accounts in the name of the Company,
and the Managers shall be the sole signatory thereon, unless the Managers determine otherwise.

 

5.8           Resignation.
Any Manager of the Company may resign at any time by giving written notice to the Members of the Company. The resignation of any
Manager shall take effect upon receipt of notice thereof or at such later time as shall be specified in such notice; and, unless
otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. The resignation of
a Manager shall also constitute the resignation of such Manager’s Representatives on the Management Committee. The resignation
of a Manager who is also a Member shall not affect the Manager’s rights as a Member and shall not constitute a withdrawal
of a Member.

 

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5.9           Removal
of Managers. At a meeting called expressly for that purpose, a Manager may be removed, by the affirmative vote of all Members
(excluding the Membership Interest of BR Member or its permitted transferee in the event BR Member or its permitted transferee,
or an Affiliate of any of them, is the subject of such removal vote and excluding the Membership Interest of TCR Member or its
permitted transferee in the event TCR Member or its permitted transferee, or an Affiliate of any of them, is the subject of such
removal vote), but only in the event of any of the following (each a “Removal Action”): (i) a material breach
of this Agreement (but expressly excluding failure to make an Additional Capital Contribution) on the part of such Manager (either
as a Manager or as a Member), which breach shall continue uncured for thirty (30) calendar days after the giving of written notice
thereof to such Manager by a Member specifying the nature of such breach or, if more than thirty (30) days is reasonably required
to cure such breach and if the defaulting Manager commences to cure within the original thirty (30) day cure period and diligently
continues to cure such breach, such additional time as is reasonably necessary to cure the breach not to exceed an additional thirty
(30) days; (ii) fraud, gross negligence or willful misconduct on the part of such Manager in management of the business or affairs
of the Company; (iii) Bankruptcy of such Manager; (iv) willful misappropriation of Company funds by the Manager; (v) the transfer
of a Membership Interest or a direct or indirect ownership interest in the Manager in violation of this Agreement or, in the case
of the TCR Member, the occurrence of a TCR Change of Control in violation of this Agreement; (vi) the Manager’s withdrawal
as a Member in violation of this Agreement; (vii) failure of such Manager (as a Member) to fund any Initial Capital Contribution
required of it under Section 8.1 or any Mandatory Developer Cost Overrun Loan, TCR Cost Overrun Loan or BR Cost Overrun
Loan required of it and, in any such case, continuation of such failure for thirty (30) days; or (viii) in the case of a Manager
designated by the TCR Member, the termination of the Development Agreement or the GC Contract as a result of an event of default
by the Developer or the General Contractor thereunder. The removal of a Manager shall also constitute the removal of Representatives
on the Management Committee appointed by such Manager. The removal of a Manager who is also a Member shall not affect the Manager’s
rights as a Member and shall not constitute a withdrawal of the Manager as a Member. If the TCR Member is removed as a Manager
as a result of any Removal Action, (x) the Developer may be terminated as the developer under the Development Agreement, (y) the
General Contractor may be terminated as the general contractor under the GC Contract and (z) if the removal occurs before Substantial
Completion, the TCR Member will no longer be entitled to receive any portion of the promote otherwise payable under Section
9.1 (i.e. the 20% share payable under subsection (g) thereof, the 30% share payable under Section (h) thereof and the
50% share payable under subsection (i) thereof) but rather, from and after such removal, shall only share in distributions as a
Member based on its Ownership Percentage in the amount distributed (including the amount that otherwise would have constituted
the promote). In any instance where the TCR Member is removed as Manager and/or the Developer is removed as developer under the
Development Agreement and/or the General Contractor is terminated as the general contractor under the GC Contract, regardless of
the cause of such removal or termination, the BR Member shall cause the TCR Member, the TCR Guarantors and/or any Affiliate of
the TCR Member that executed a Loan Guaranty or any other guaranty or indemnity agreement for a loan to the Company to be released
in full from such Loan Guaranty or other guaranty or indemnity agreement; provided, that, if the BR Member is unable to obtain
such release despite its commercially reasonable efforts to do so, the BR Member and Affiliates of the BR Member reasonably acceptable
to the TCR Member shall be obligated to indemnify and hold harmless the TCR Member, the TCR Guarantors and/or any such Affiliate
(each, a “TCR Indemnified Party”), pursuant to an indemnification agreement in form and substance reasonably
satisfactory to the TCR Indemnified Parties, without prejudice to any other indemnification right under Sections 15.1 and
15.2, for any amount paid by the TCR Indemnified Parties under such Loan Guaranty or other guaranty or indemnity agreement
and actual losses and expenses (including reasonable attorney’s fees and costs) incurred by the TCR Indemnified Parties in
defending against a claim for performance under such Loan Guaranty or other guaranty or other guaranty or indemnity agreement,
except to the extent (i) the TCR Indemnified Parties are separately obligated to the Company or the BR Member, without right of
reimbursement, under a written agreement for the amount sought to be recovered under such Loan Guaranty or indemnity agreement
or (ii) the amount sought to be recovered would never be collectible from, or claimed against, the Company but for the fraud, willful
misconduct or gross negligence by the TCR Indemnified Parties; provided, however, that the BR Member and its Affiliates shall not
be obligated to indemnify the TCR Indemnified Parties if (x) the Developer, the General Contractor or the TCR Member was removed
as a result of a Removal Action described in any of clauses (ii), (iii), (iv), (v), (vi), (vii) or (viii) above or (y) with respect
to any action taken by the BR Member after the date of removal, the TCR Member has expressly approved of or consented to the action
taken by BR Member in writing within two (2) business days following the receipt of written notice from BR Member that BR Member
intends to take such action (and if the TCR Member has not affirmatively responded to BR Member by the end of such two (2) business
day period, the TCR Member shall be deemed to have expressly disagreed with the action).

 

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5.10         Vacancies.
Any vacancy occurring for any reason in the number of Managers of the Company may be filled by the affirmative vote of all Members
(excluding the Membership Interest of BR Member or its permitted transferee to the extent the vacancy results from BR Member or
its permitted transferee, or an Affiliate of any of them, being removed as Manager and excluding the Membership Interest of TCR
Member or its permitted transferee to the extent the vacancy results from TCR Member or its permitted transferee, or an Affiliate
of any of them, being removed as Manager). A Manager elected to fill a vacancy shall hold office until its successor shall be elected
and shall qualify or until its earlier resignation or removal.

 

5.11         Salaries.
The salaries and other compensation, if any, of the Managers shall be fixed from time to time by an affirmative vote of all the
Members, and no Manager shall be prevented from receiving a salary or other compensation by reason of the fact that it is also
a Member of the Company. The salaries and other compensation, if any, of a Representative or any officer of the Company shall be
fixed from time to time by an affirmative vote of all the Members.

 

5.12         Development
and Development Fee.

 

5.12.1         Development
Agreement. The Company and Developer have entered into a mutually agreed form of Development Agreement to govern the rights
and responsibilities of the Company and Developer with respect to the development and construction of the Project, including a
Development Fee payable to Developer as described below. Developer will cause the Project to be constructed in accordance with
the terms of the Development Agreement.

 

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5.12.2         General
Contractor. The Company has engaged the General Contractor pursuant to a “cost plus fee” contract for construction
of the Project (the “GC Contract”). The fee payable to the General Contractor thereunder is five percent (5%)
of the Hard Costs in the Total Project Budget.

 

5.12.3         Development
Fee. Under and subject to the Development Agreement, Developer will be entitled to earn a fee (the “Development Fee”)
equal to three percent (3%) of the Total Project Budget (exclusive of the Development Fee). The Development Fee shall compensate
Developer for all development management and project management services (including project accounting and financial reporting)
required to achieve Substantial Completion. The Development Fee shall be paid on a proportional basis (based on the percentage
of the construction completed) from draws against Capital Contributions (until the Initial Capital Contributions are funded) and
the Loan or, to the extent not funded from those sources, other existing available funds of the Company or, upon Final Completion,
Additional Capital Contributions; provided, however, that no portion of the Development Fee shall be paid with respect to the acquisition
of the Property and payment of Pursuit Costs.

 

5.12.4         Development
Information. During the construction process, the TCR Member will provide or cause the Developer to provide to the Company
and BR Member copies of all draw-related information for the Loan, including but not limited to monthly copies of the construction
draws and construction draws top sheets with budget-versus-actual information, plus full physical access to the Property and all
documentation of the Company in connection with the development and construction of the Project.

 

5.12.5         Developer
Contribution. For no additional charge or credit to the TCR Member’s Capital Account, TCR Member shall convey or cause
Developer or its Affiliates to convey to the Company all of (i) ownership and contract rights in and to the Property and/or lease
agreements and related options related to the Property held by TCR Member or Developer or their Affiliates, including but not limited
to rights to acquire the Property in accordance with the various existing lease agreements and options related to the acquisition
of the Property, including the Ground Lease (together, the “Land Contract”), (ii) all design and construction
plans for the Project (at Developer’s actual cost, free and clear of all liabilities), (iii) all other tangible and intangible
rights associated with the Project held by TCR Member or Developer or their Affiliates and (iv) all other items appurtenant to
the Project held by TCR Member or Developer or their Affiliates.

 

5.12.6         BR
Member’s Owner Representative. The BR Member will be entitled to staff the Project, at the expense of the Company, with
an owner’s representative throughout the construction period to oversee, supervise and assist the Developer in the administration
of the Project as needed by the Developer. The reasonable cost of the owner’s representative, which shall not exceed $50,000,
will be capitalized into the Total Project Budget and paid from the construction draws to the extent approved by Lender (or, to
the extent not so paid, added to the Capital Account of the BR Member and set off on a dollar for dollar basis amounts owed for
the owner’s representative).

 

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5.12.7         Warranties.
TCR Member shall cause the General Contractor to warrant to the Company the construction of the Project for twelve (12) months
after the Certificate of Occupancy is received for the Project such that the General Contractor must promptly correct and repair,
at its sole cost and expense to the extent not allowed as a reimbursable cost under the GC Contract, all defects discovered during
such twelve (12) month period. The Company may not assign such warranty by TCR Member or the General Contractor, but any
subcontractor warranties may be assigned by the Company to any third party who purchases the Project from the Company during such
period as the subcontractor warranties continue.

 

5.13         Limit
on Construction Warranties. While Developer and, to an extent, the TCR Member will act as the representative of the Company
in dealings with and supervision of the architect, engineer and other design professionals for the Project and the contractors,
subcontractors, suppliers, materialman and artisans engaged in connection with the Project, except as provided in Section 5.12.7,
the TCR Member will not be obligated to provide any warranty of construction nor will the TCR Member be liable for errors in design,
any departure from the plans and specifications or any other construction defect in the Project. Neither the TCR Member nor any
of its Affiliates (except as provided in the GC Contract in respect of the General Contractor and the Development Agreement in
respect of the Developer) is a guarantor of the work of any architect, engineer or other design professional or the work of any
contractor, subcontractor, supplier, materialman or artisan engaged in connection with the Project. NEITHER THE TCR MEMBER NOR
ANY OF ITS AFFILIATES (EXCEPT AS PROVIDED IN THE GC CONTRACT IN RESPECT OF THE GENERAL CONTRACTOR AND THE DEVELOPMENT AGREEMENT
IN RESPECT OF THE DEVELOPER) WILL BE RESPONSIBLE FOR ERRORS IN DESIGN OF THE PROJECT OR FOR CONSTRUCTION DEFECTS. UNDER NO CIRCUMSTANCE
WILL THE TCR MEMBER OR ANY OF ITS AFFILIATES BE RESPONSIBLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED BY THE COMPANY OR
ANOTHER MEMBER OR MANAGER AS A RESULT OF DEFECTS IN DESIGN OR CONSTRUCTION OF THE PROJECT, INCLUDING ANY LOSS IN REVENUES, EXCESS
CARRYING COSTS, ANY LOSS OF OPPORTUNITIES, ANY LIABILITY TO OTHER PERSONS FOR LOSS, INJURY OR DAMAGE TO PERSONS OR PROPERTY OR
DEATH, OR ANY DAMAGE TO THE PROJECT. The Company retains the risk of (a) adequacy of all plans and specifications and compliance
of plans and specifications with applicable laws and (b) subject to the Company’s rights under the GC Contract and the Development
Agreement, conformance of construction with the applicable plans and specifications, applicable laws and sound building practices.
THE TCR MEMBER SPECIFICALLY DISCLAIMS ALL WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABILITY, HABITABILITY OR GOOD
AND WORKMANLIKE CONSTRUCTION AND WARRANTIES OF FITNESS FOR USE OR ACCEPTABILITY FOR THE PURPOSE INTENDED, AND
THE COMPANY AND THE OTHER MEMBERS AND MANAGERS WAIVE ALL BASIS FOR RECOVERY OR REIMBURSEMENT (INCLUDING ANY GROUND FOR
RECOVERY BASED ON NEGLIGENCE OR STRICT LIABILITY), TO THE EXTENT THE SAME WOULD ALLOW GREATER RECOURSE THAN PROVIDED IN THIS
SECTION 5.13 AGAINST THE TCR MEMBER OR ANY AFFILIATE OF THE TCR MEMBER WITH RESPECT TO THE DESIGN AND CONSTRUCTION OF THE
PROJECT (EXCEPT AS PROVIDED IN THE GC CONTRACT IN RESPECT OF THE GENERAL CONTRACTOR OR THE DEVELOPMENT AGREEMENT IN RESPECT OF
THE DEVELOPER). Nothing in this Section 5.13 limits (i) the responsibility of the General Contractor under its GC Contract
with the Company, (ii) the responsibility of the Developer under the Development Agreement, (iii) the TCR Member’s obligation
to make Mandatory Cost Overrun Loans and/or TCR Cost Overrun Loans or (iv) the responsibility of the TCR Guarantors under the Guaranty
Agreement from the TCR Guarantors to the Company and the BR Member.

 

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5.14         Total
Project Budget and Operating Budget.

 

5.14.1         Total
Project Budget. The Members have attached the Total Project Budget to this Agreement as Exhibit C. The Total Project
Budget may be modified only (i) as may be agreed to by the Members pursuant to Section 7.7, (ii) by the TCR Member to reallocate
savings in a line item within the Total Project Budget to another line item within the Total Project Budget or (iii) as allowed
by Section 4.2 of the Development Agreement.

 

5.14.2         Operating
Budget. Other than with respect to the development and construction of the Project, the Company shall operate the Project under
a business plan and an annual operating budget (each, an “Operating Budget”) commencing for the period beginning
as of the date of issuance of a certificate of occupancy for any of the residential units in the Project. The TCR Member shall
deliver to the Members for approval the initial proposed Operating Budget for the remainder of the Fiscal Year beginning as of
the date of issuance of a certificate of occupancy for any of the residential units in the Project not later than forty-five (45)
days before the beginning of that period. The Operating Budget for each Fiscal Year thereafter shall be proposed by the Management
Company, after which the TCR Member shall review the Operating Budget as proposed by the Management Company and deliver it to the
Management Committee with its recommendations by not later than November 1st of the preceding Fiscal Year or 10 days after receipt
of the proposed Operating Budget from the Management Company, whichever is later. After the Operating Budget has been approved
by the Management Committee, the TCR Member shall or shall cause Management Company to implement it on behalf of Company and TCR
Member and the Management Company may incur and may cause the Company to incur the expenditures and obligations therein provided.
No material changes or departures from any item in an approved Operating Budget shall be made by the TCR Member without the prior
approval of the BR Member. If an Operating Budget has not been approved by January 1st of
any Fiscal Year, the Company, until such approval can be achieved, shall continue to operate the Project under the Operating Budget
for the previous Fiscal Year with such adjustments as may be necessary to reflect deletion of non- recurring expense items set
forth in the previous Operating Budget and positive or negative adjustments in insurance costs, taxes, utility costs and Debt Service
payments. The TCR Member shall promptly advise and inform the BR Member of any transaction, notice, event or proposal directly
relating to the management and operation of the Project, other assets of the Company or the Company which is expected to cause
a material deviation from the Operating Budget.

 

5.15         Management
Company. The Managers shall agree upon and cause the Company to enter into a management agreement (the “Management
Agreement”) with a management company mutually agreed upon by the Members (including any successors, the “Management
Company”) to manage, lease-up and operate the Property pursuant to the Management Agreement. The Management Agreement
shall require that Management Company operate the Project in a first class manner and in accordance with the standards and conditions
for the type, style, class, use and location of the Property. The Management Agreement shall also require that the Management Company
undertake all such duties and obligations with respect to the Operating Budget as will be set forth in the Management Agreement,
including requiring the Management Company to propose an Operating Budget for each Fiscal Year by not later than October 15th
of the preceding Fiscal Year. The Company shall pay the Management Company a management fee in the amount of no more than
two and one-half percent (2.5%) of annual gross cash revenues generated from the Project (except during the lease up phase, when
the management fee may be a fixed amount or subject to a floor amount), payable monthly.

 

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5.16         Operation
in Accordance with REOC/REIT Requirements.

 

5.16.1         The
Members acknowledge that BR Member or one or more of its Affiliates (a “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. Section 2510.3-101 (a “REOC”), and the Members agree that the Company shall be
operated in a manner that will enable BR Member and/or such BR Affiliate, as applicable, to so qualify; provided, however, that
in no event shall the foregoing require any loss of voting or decision rights to the TCR Member, or result in any adverse consequence
to the TCR Member, or subject the TCR Member to liability for any inadvertent failure to comply with the standards applicable to
a REOC. Except as disclosed to BR Member, TCR Member (i) 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 Code.

 

5.16.2         Except
for the Property and the Project, a Member or Manager shall not knowingly cause the Company to 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 (“UBTI”), unless specifically
agreed to by the Members in writing. No Manager or Member shall be liable for any income or other taxes, damages, costs or expenses
incurred by the Company or any Member by reason of the recognition by the Company of UBTI unless caused by its own fraud, willful
misconduct or gross negligence.

 

5.16.3         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, no Member or Manager shall knowingly take any action which, or the effect of which, would constitute
or result in the occurrence of a REIT Prohibited Transaction by the Company. “REIT Prohibited Transaction” means
any of the actions specifically set forth in the following Sections 5.16.3.1 through 5.16.3.7:

 

5.16.3.1           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);

 

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5.16.3.2           Leasing,
as a lessor, 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;

 

5.16.3.3           Acquiring
or holding any debt investments (except for temporary investments of cash balances not exceeding in the aggregate 25% of the Company’s
assets) unless (i) the amount of interest income received or accrued by the Company under such debt investment 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;

 

5.16.3.4           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 or its parent company which is a REIT, by jointly filing
with REIT Member or its parent company which is a REIT IRS Form 8875, or (iii) has properly elected to be a REIT for U.S. federal
income tax purposes;

 

5.16.3.5           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 as the Project 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 the REIT Member do not, directly
or indirectly, derive revenue or (B) a taxable REIT subsidiary of the REIT Member or its parent company which is a REIT who is
adequately compensated for such services or (ii) amounts received for services that are customarily furnished or rendered in connection
only with the rental of space for occupancy in properties like the Project (as opposed to being rendered primarily for the convenience
of the Project’s tenants);

 

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

 

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5.16.3.7           Holding
cash of the Company available for operations or distribution in any manner other than a traditional bank checking or savings account
or mutual fund.

 

Notwithstanding the foregoing
provisions of this Section 5.16.3, 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 5.16.3.

 

5.17         FCPA.
In compliance with the Foreign Corrupt Practices Act, each Member will not, and will ensure that its officers, directors, employees,
shareholders, members, agents and Affiliates, acting on its behalf or on the behalf of the Company, 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, in each case to the extent dealings with such representative, employee, political
party, officer or candidate are subject to the Foreign Corrupt Practices Act, except for any facilitating or expediting payments
to government officials, political parties or political party officials the purpose of which is to expedite or secure the performance
of a routine governmental action by such government officials or political parties or party officials. The term “routine
governmental action” for purposes of this provision shall mean an action which is ordinarily and commonly performed by the
applicable government official in (i) obtaining permits, licenses, or other such official documents which such Person is otherwise
legally entitled to; (ii) processing governmental papers; (iii) providing police protection, mail pick-up and delivery or scheduling
inspections associated with contract performance or inspections related to transit of goods across country; (iv) providing phone
service, power and water supply, loading and unloading of cargo, or protecting perishable products or commodities from deterioration;
or (v) actions of a similar nature. The term routine governmental action does not include any decision by a government official
whether, or on what terms, to award new business to or to continue business with a particular party, or any action taken by an
official involved in the decision making process to encourage a decision to award new business to or continue business with a particular
party. Each Member agrees to notify immediately the other Member of any request that such Member or any of its officers, directors,
employees, shareholders, members, agents or Affiliates, acting on its behalf or on behalf of the Company, receives to take any
action that may constitute a violation of the Foreign Corrupt Practices Act.

 

5.18         Execution
of Documents for Land Closing and Loan. Notwithstanding any other provision of this Agreement that would otherwise limit such
authority, the TCR Member, in its capacity as a Manager of the Company, is authorized on behalf of the Company to (i) with the
consent of BR Member, such consent not to be unreasonably withheld or delayed, execute and deliver the Ground Lease and (ii) with
the consent of BR Member, such consent not to be unreasonably withheld or delayed, execute and deliver the documents required in
connection with the Loan and encumber the Property, the Project and the Company’s other assets to secure the Company’s
indebtedness, liabilities and obligations to the Lender as provided in such documents related to the Loan.

 

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ARTICLE 6.

RIGHTS AND OBLIGATIONS OF MEMBERS

 

6.1           Limitation
on Liability. Each Members’ liability shall be limited as set forth in this Limited Liability Company Agreement, the
Act and other applicable law.

 

6.2           No
Liability for Company Obligations. No Member will have any personal liability for any debts or losses of the Company beyond
its respective Capital Contributions, except as provided by nonwaivable provisions of law.

 

6.3           List
of Members. Upon written request of any Member, the Company shall provide a list showing the names, addresses and Membership
Interests and Economic Interests of all Members and any other information required by Section 18-305 of the Act.

 

6.4           Dissenters’
Rights. No Member shall have appraisal or dissenters’ rights pursuant to Section 18-210 of the Act.

 

6.5           Financing
and Recourse Obligations; Refinancing.

 

6.5.1           The
TCR Member will use commercially reasonable efforts to secure the Loan from the Lender. The TCR Member is authorized, acting on
behalf of the Company, to close the Loan (including execution of all loan documents required by the Lender) and to encumber as
security for the Loan the Project and other property of the Company as the Lender requests and the TCR Member considers appropriate.

 

6.5.2           If
required in connection with the Loan, the TCR Member and/or the TCR Guarantors shall provide (subject to the requirements of the
Lender) any required guaranty or indemnity, including, without limitation, any project completion guaranty, repayment guaranty,
environmental indemnity and non-recourse carveout guaranty for “bad boy” acts or omissions or Bankruptcy-related events
(each, as the same may be amended or restated from time to time, a “Loan Guaranty”); provided, however, that
the terms and conditions of any such Loan Guaranty shall be subject to the approval of the TCR Member in its sole and absolute
discretion. The BR Member, in its sole and absolute discretion may, if it elects to do so, provide or cause one of its Affiliates
to provide, a non-recourse carveout guaranty for “bad boy” acts or omissions or Bankruptcy-related events on terms
and conditions satisfactory to BR Member in its sole discretion. Neither BR Member nor any Affiliate of BR Member shall be required
to execute any project completion guaranty, repayment guaranty, environmental indemnity or non-recourse carveout guaranty for “bad
boy” acts or omissions or Bankruptcy- related events.

 

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6.5.3           Beginning
120 days prior to the maturity of the Loan or such other loan, the TCR Member shall have the right to cause the Company to refinance
the Loan or any other mortgage loan to the Company, as the case may be, if the TCR Member, any TCR Guarantor or any of their Affiliates
has provided a guaranty with respect to the payment of all or part of the principal or interest due in respect of same; provided,
however, that, (i) before the TCR Member closes a new loan in connection with any such refinancing the TCR Member must provide
the terms of such proposed new loan to the BR Member (including without limitation a copy of a fully negotiated term sheet or similar
evidence of the terms of the proposed loan), (ii) the BR Member shall have sixty (60) days from the date it receives the terms
of the new proposed loan from the TCR Member within which to obtain a loan proposal with the same or better economic terms than
those obtained by the TCR Member (without requirement for any guaranty or indemnity agreement by the TCR Member, any TCR Guarantor
or any of their Affiliates, except as may have been included in the loan proposal provided by the TCR Member), (iii) if the BR
Member is able to obtain better loan terms than those obtained by the TCR Member, the Company and the Members shall take any and
all actions necessary to close the new loan obtained by the BR Member (on behalf of the Company) and (iv) if the BR Member is unable
to obtain better loan terms, the Company and the Members shall take any and all actions necessary to close the new loan obtained
by the TCR Member (on behalf of the Company), and (v) in no event shall any such refinancing loan under this Section 6.5.3 (A)
include any prepayment lock- outs (but this provision does not prohibit breakage costs for loans based on LIBOR or other matched-funding
arrangements or prepayment premiums not based on yield maintenance), (B) include an increase in principal amount except to pay
transactional costs for closing of the refinancing, (C) provide for additional interest or similar payments to the lender based
on cash flow or profits of the Company or capital proceeds realized by the Company or (D) be pooled (including as to collateralized
or defaults) with any property not owned by the Company.

 

6.6           Default
Action. If any Member or its Affiliate commits any Default Action (as defined below), then in addition to any other legal or
equitable remedy available to the other Member (or pursuant to the terms of this Agreement), such other Member shall be entitled
to recover from the breaching Member its actual damages, including reasonable attorney’s fees (but specifically excluding
special, consequential, punitive or exemplary damages) sustained by the non-breaching Member as a result of such Default Action,
except to the extent of damages attributable to a coincident Default Action of such other Member and/or its Affiliate. The following
actions are collectively referred to as “Default Actions”: (i) Bankruptcy of a Member; (ii) fraud, willful misconduct
or gross negligence on the part of a Member in connection with the business or affairs of the Company; (iii) willful misappropriation
of Company funds; (iv) the material breach or violation of this Agreement (but expressly excluding a Member’s failure to
make an Additional Capital Contribution); (v) the transfer of a Membership Interest or a direct or indirect ownership interest
in the Manager in violation of this Agreement or, in the case of the TCR Member, the occurrence of a TCR Change of Control in violation
of this Agreement; (vi) any action or omission that, to the extent caused solely by a Member’s actions or omissions, results
in Lender asserting liability under any non-recourse carveout guaranty for “bad boy” acts or omissions or Bankruptcy-related
events (but expressly excluding therefrom, any liquidity based non-recourse carveout); (viii) withdrawal of a Member in violation
of this Agreement; and (ix) the Bankruptcy of a Member or any Affiliate of a Member (including, in the case of the TCR Member,
the General Contractor, the Developer or one or more TCR Guarantors) that causes an event of default under the Loan.

 

6.7           Restriction
on Condominium Conversion; “AS IS” Sales Terms. On any sale of the Project, including a sale pursuant to Section
12.6, each Member shall have the right to cause the terms of any such sale to include (i) a special deed (or ground lease assignment)
restriction or other title encumbrance that would prohibit or restrict, for a time certain extending through the statute of repose
for alleged or actual defects in construction of the Project, the use of the Project as a condominium, cooperative, planned unit
development or other form of common interest use and/or (ii) provisions requiring the purchaser to release, indemnify, insure and/or
provide the Company, the Members, the Managers and their Affiliates (including the General Contractor) with security (including,
without limitation, cash reserves, a letter of credit and/or insurance) from and against any loss, cost or expense, including attorneys'
fees, on account of any alleged or actual defects in construction of the Project, whether known or unknown to the Company, a Member,
a Manager or any Affiliate of a Member or Manager at the time of such sale. In addition, any Member may require that any sale of
the Project, including a sale pursuant to Section 12.6, be made on an “AS IS” basis with commercially reasonable
disclaimers and releases for all warranties and similar obligations, express or implied, with respect to the Project and its condition
and the construction, prospects, operations or results of operations of the Project.

 

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6.8           Tradenames.
The TCR Member may allow the Company to utilize in the Company’s business certain names, service marks, trademarks and logos
that are proprietary to the TCR Member and its Affiliates (including the names “Trammel Crow Residential,” “Alexan,”
and “TCR” and the “TCR” logo) or variants of such names, service marks, trademarks and logos. The BR Member
and the Company each acknowledges that such names, service marks, trademarks and logos are the property of the TCR Member and its
Affiliates, and the BR Member and the Company each agrees that the TCR Member or one or more of its Affiliates will own any variants
of such names, service marks, trademarks and logos that may be developed by the Company or used in the Company’s business.
The BR Member and the Company have no rights to any of such names, service marks, trademarks and logos or any such variants, and
the BR Member and the Company will acquire no right to any of such names, service marks, trademarks and logos or any such variants
through use allowed by the TCR Member and its Affiliates. In no case may the BR Member or any of its Affiliates use any of such
names, service marks, trademarks or logos or any variant thereof or any variants of such names, service marks, trademarks or logos.
The TCR Member may require the Company to discontinue the use of any or all of such names, service marks, trademarks and logos
or any variants thereof at any time, in the discretion of the TCR Member. The Company in all events will be required to cease use
of all such names, service marks, trademarks and logos and all variants thereof if at any time the TCR Member is no longer a Manager
of the Company. The TCR Member shall be responsible for any and all rebranding costs incurred by the Company if the TCR Member
requires discontinuance of any such names, service marks, trademarks and logos or any variants thereof at any time, except on a
sale or other disposition of the Project. At such time as the Company is required to discontinue use of any such name, service
mark, trademark or logo, the Company will have a transition period as necessary to effect a change to a new name, service mark,
trademark or logo but not more than one hundred eighty (180) days after the discontinuance of use is required.

 

6.9           Members
Have No Exclusive Duty to Company. A Member and its Affiliates may have other business interests and may engage in other activities
in addition to those relating to the Company. Neither the Company nor another Member shall have any right, by virtue of this Limited
Liability Company Agreement, to share or participate in such other investments or activities of a Member or its Affiliates or to
the income or proceeds derived therefrom. A Member shall incur no liability to the Company or to another Member as a result of
the Member or any of its Affiliates engaging in any other business or venture.

 

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6.10         Enforcement
of Affiliate Contracts. If the Company is a party to any contract with an Affiliate of a Member, the other Member shall have
the right unilaterally to exercise, on behalf of the Company, any remedy by reason of a default under such contract or to approve,
on behalf of the Company, any termination, extension or modification of such contract. For the avoidance of doubt, this Section
6.10 applies to the Development Agreement and the GC Contract, as to which the BR Member has the right, on behalf of the Company,
to exercise any remedy or approve any termination, extension or modification.

 

ARTICLE 7.

MEETINGS OF MEMBERS

 

7.1           Meetings.
Meetings of the Members, for any purpose or purposes, may be called by any Manager or any Member.

 

7.2           Place
of Meetings. The Person calling any meeting of the Members may designate any mutually convenient location as the place of meeting.

 

7.3           Notice
of Meetings. For any meeting of the Members, written notice stating the place, day and hour of the meeting and the purpose
or purposes for which the meeting is called shall be delivered not less than five (5) days and not more than thirty (30) days before
the date of the meeting, either personally or by mail, by or at the direction of the Person calling the meeting, to each Member
entitled to vote at such meeting. Notice provided in accordance with this Section 7.3 shall be effective notwithstanding
anything in the Act to the contrary.

 

7.4           Meeting
of all Members. If all of the Members shall meet at any time and place, and consent to the holding of a meeting at such time
and place, such meeting shall be valid without call or notice, and at such meeting any lawful action may be taken.

 

7.5           Record
Date. For the purpose of determining Members entitled to notice of or to vote at any meeting of Members or any adjournment
thereof, or Members entitled to receive payment of any distribution, or in order to make a determination of Members for any other
purpose, the date on which notice of the meeting is mailed or the date on which such distribution is made or action of the Members
is taken, as the case may be, shall be the record date for such determination of Members unless the Managers shall otherwise specify
another record date. When a determination of Members entitled to vote at any meeting of Members has been made as provided in this
Section 7.5, such determination shall apply to any adjournment thereof.

 

7.6           Quorum.
All of the Members, represented in person or by proxy, shall constitute a quorum at any meeting of Members.

 

7.7           Major
Decisions. The affirmative vote of the TCR Member and the BR Member shall be required to approve these actions (each, a “Major
Decision”):

 

(a)          do
any act in contravention of the Company’s Certificate of Formation or this Limited Liability Company Agreement, or amend
the Company’s Certificate of Formation or this Limited Liability Company Agreement;

 

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(b)          do
any act not specifically authorized herein which would make it impossible or impractical to own or develop the Project or to otherwise
carry on the ordinary business of the Company;

 

(c)          possess
any property of the Company, or assign the rights of the Company in any specific property of the Company, for other than a Company
purpose;

 

(d)          change
or reorganize the Company into any other legal form or cause any merger or consolidation of the Company with another entity;

 

(e)          commence,
respond to or settle any litigation involving the Company, the Property or the Project, except commencement, response to or settlement
of any litigation involving a claim (including a mechanic’s lien or similar claim) arising out of development or construction
of the Project if approved by the TCR Member;

 

(f)          filing
or initiating a Company Bankruptcy;

 

(g)          permit
or cause the Company to purchase or invest in real property other than its interest in the Property and the Project;

 

(h)          make
loans using funds of the Company;

 

(i)          except
as expressly provided in Sections 12.2 and 12.3, the admission of additional Members to the Company;

 

(j)          take
any action which would reasonably be expected to expose the TCR Member, the BR Member or any Affiliate thereof to liability under
any Loan Guaranty or any other guaranty or indemnity agreement for a loan to the Company, unless the action is approved by such
Person;

 

(k)          enter
into any transaction with a Member and/or any Affiliate thereof (except as expressly authorized herein);

 

(l)          incur
any indebtedness for borrowed money or grant a security interest in the Company’s property, in either case, except as provided
in Section 6.5;

 

(m)          approve
any modifications to the Total Project Budget, except as provided in Section 5.14.1;

 

(n)          approve
any Operating Budget or make any modifications thereto, including without limitation changes with regard to leasing strategy and
rental rates included in the Operating Budget;

 

(o)          make
any expenditure or incur any obligation that varies from the Total Project Budget (unless the expenditure is approved by the TCR
Member) or the applicable Operating Budget, as applicable;

 

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(p)          subject
to Sections 6.5.3 and 12.6, any sale, refinance or similar transaction with regard to the Project;

 

(q)          in
the event of a fire, other casualty or partial condemnation of the Project after Substantial Completion, a determination whether
to construct or reconstruct the improvements located on the Property, where such construction or reconstruction would cost in excess
of $100,000 and is not required under the terms and provisions of any lease (including the Ground Lease), mortgage or deed of trust
affecting the damaged or condemned portion of the Project in question;

 

(r)          approve
any general contractor or co-developer for the Property, or any agreement with such Person, except (i) as provided in Section
5.12 or (ii) engagement of a replacement general contractor or developer if the TCR Member is removed as a Manager pursuant
to Section 5.9;

 

(s)          adoption
of or modifications to the Plans, including, without limitation, any Discretionary Changes, except for (i) government-mandated
changes, (ii) supplemental instructions and clarifications issued by the Project architect, (iii) changes required by a Lender,
and (iv) changes deemed appropriate by the TCR Member that individually do not increase or decrease Hard Costs by more than $75,000
and, when taken together with all other change orders that are not either approved by the Members or required by governmental authorities
or a Lender, do not increase or decrease Hard Costs, on a net basis, by more than $200,000 in the aggregate;

 

(t)          hiring
the initial Management Company (i.e. on or about the Substantial Completion) and the entry into the associated Management Agreement
for the Project; and

 

(u)          any
material amendments to, modifications of, or exercise of any applicable options (other than an option to terminate the Ground Lease
prior to the purchase of building permits for the Project) under, the Ground Lease.

 

In addition to the foregoing,
if any Management Company is terminated by the Management Committee, the replacement Management Company shall be selected by the
BR Member from a list of not less than three proposed replacement Management Companies provided by the TCR Member (and for the
avoidance of doubt, such decisions of the TCR Member and the BR Member, respectively, will be “Major Decisions”).

 

7.8           Proxies.
A Member may vote in person or by proxy executed in writing by the Member or by a duly authorized attorney-in-fact. Such written
proxy shall be delivered to the other Member.

 

7.9           Action
by Members Without a Meeting. Action required or permitted to be taken by the Members at a meeting may be taken without a meeting
if the action is evidenced by one or more written consents describing the action taken, collectively signed by all of the Members.
Action take under this Section 7.9 is effective when the Members required to approve such action have signed the consent,
unless the consent specifies a different effective date. The record date for determining Members entitled to take action without
a meeting shall be the date the first Member signs a written consent.

 

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7.10         Waiver
of Notice. Pursuant to Section 18-302(c) of the Act, when any notice is required to be given to any Member, a waiver thereof
in writing signed by the person entitled to such notice, whether before, at, or after the time stated therein, shall be equivalent
to the giving of such notice.

 

7.11         Meeting
by Telephone, Etc. Pursuant to Section 18-302(d) of the Act, Members may also meet by conference telephone call, video conference
or through similar communications equipment if all Members can hear one another on such call and the requisite notice is given
or waived.

 

ARTICLE 8.

CONTRIBUTIONS TO THE COMPANY AND CAPITAL
ACCOUNTS

 

8.1           Members’
Initial Capital Contributions.

 

8.1.1           Execution
Contributions and Pursuit Costs

 

(a)          Notwithstanding
anything else in this Agreement, BR Member and TCR Member agree and acknowledge that each is contributing 50% of its respective
Initial Capital Contribution (i.e., $7,645,339.50 for BR Member and $849,497.00 for TCR Member) upon execution of this Agreement
(each such contribution being referred to in this Agreement as an “Execution Contribution”). Further, TCR Member
and BR Member agree that (i) as to BR Member’s Execution Contribution, amounts in excess of $750,301.50 shall be deposited
in an account held in the Company’s name, but over which BR Member shall hold exclusive signatory authority (the “BR
Contribution Account”), (ii) as to TCR Member’s Execution Contribution, amounts of $750,301.50 shall be deposited
in an account held in the Company’s name, but over which TCR Member shall hold exclusive signatory authority (the “TCR
Contribution Account”), and (iii) as to the remaining amounts of each Member’s Execution Contribution, such amounts
are earmarked for Pursuit Costs and shall be deposited in an account held in the Company’s name, and over which, until the
Company has purchased building permits for the Project, TCR Member, in its capacity as a Manager of the Company, shall hold sole
signatory authority (the “Operating Account”). For purposes of clarification, TCR Member’s signatory authority
over the Operating Account shall be exclusive until the Company has purchased building permits for the Project, after which point
such signatory authority shall be consistent with that over any other of the Company’s bank accounts (excluding the TCR Contribution
Account and BR Contribution Account), and shall be subject to the rights of the Managers and Management Committee as set forth
in this Agreement.

 

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(b)          BR
Member and TCR Member have incurred and hereafter through the date that the Company purchases building permits for the Project
intend to incur Pursuit Costs, which Pursuit Costs shall constitute a portion of the Initial Capital Contributions to be made by
the Members; provided however that (x) BR Member’s total contribution toward Pursuit Costs incurred prior to the Company’s
purchase of building permits for the Project shall not exceed $750,301.50 (50% of $1,500,603) (unless BR Member otherwise consents,
such consent to be given or withheld in BR Member’s sole discretion) and (y) notwithstanding anything to the contrary contained
herein, expense items identified in the Pursuit Costs Budget that are not fixed costs shall not exceed the line item amount set
forth in the Pursuit Costs Budget for same by more than three percent (3%) without the consent of both BR Member and TCR Member.
BR Member shall reimburse the TCR Member for fifty percent (50%) of all Pursuit Costs previously incurred by TCR Member that are
identified in the Pursuit Costs Budget and that have been approved by BR Member in its reasonable discretion, which amount may
be drawn from the Operating Account and, when reimbursed, shall be treated as part of the Initial Capital Contributions by the
BR Member toward Pursuit Costs. The TCR Member will be credited with an Initial Capital Contribution for the remaining fifty percent
(50%) of all Pursuit Costs previously incurred by TCR Member that are identified in the Pursuit Costs Budget and that have been
approved by BR Member in its reasonable discretion. After taking into account the reimbursement and credit contemplated above in
this Section 8.1.1, each party shall have funded 50% of the approved Pursuit Costs. Each of BR Member and TCR Member shall
be responsible for fifty percent (50%) of all Pursuit Costs incurred by the Members through the Company’s purchase of building
permits for the Project that are identified in the Pursuit Costs Budget and have been approved, in its reasonable discretion, by
the Member that did not directly incur such expense. Either Member may request that the other Member reimburse the requesting party
for the other party’s pro-rata share (50%/50%) of any Pursuit Costs paid by the requesting Member by providing a written
request (each a “Reimbursement Request”) to such other Member. Each Reimbursement Request shall (i) state the
name of each payee to be paid, a brief description of the item or service provided by the payee and the amount to be paid for such
item or service, (ii) include a representation that the amount to be paid or reimbursed was incurred in accordance with the Pursuit
Costs Budget and a calculation of the total expenditures to date (including the requested reimbursement amount) for the applicable
Pursuit Costs Budget line item, and (iii) upon request of the other Member, be accompanied by copies of reasonably detailed invoices
or other data supporting the amount requested in the Reimbursement Request (such additional evidence/data to be subject to the
approval of such other Member in its reasonable discretion). Subject to the terms hereof, such other Member shall reimburse the
requesting Member its portion of Pursuit Costs described in a Reimbursement Request no later than ten (10) days after the Reimbursement
Request is delivered and all conditions described in the preceding sentence have been satisfied, provided however, that the requesting
Member shall be first reimbursed from the Operating Account.

 

(c)          If
the Company does not terminate the Ground Lease prior to the Company’s purchase of building permits for the Project, then,
upon the Company’s purchase of building permits for the Project, (i) all Pursuit Costs previously incurred by a Member and
not credited toward a Capital Contribution or reimbursed on a pro-rata (50/50) basis by the other Member shall be deemed Initial
Capital Contributions by such Member to the Company; (ii) BR Member will promptly cause all of the funds in the BR Contribution
Account to be deposited in the Operating Account and TCR Member will promptly cause all of the funds in the TCR Contribution Account
to be deposited in the Operating Account; (iii) each of TCR Member and BR Member may but will not be obligated to contribute the
remainder of its Initial Capital Contribution; (iv) if the TCR Member’s 50% share of Pursuit Costs and Capital Contributions
toward Pursuit Costs is more than 10% of the Initial Capital Contributions, then the Company shall reimburse the TCR Member upon
the Company’s purchase of building permits for the Project for the excess, with the BR Member’s Initial Capital Contribution
to be adjusted accordingly to maintain the specified 90%/10% relationship.

 

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8.1.2           From
time to time after Company’s purchase of building permits for the Project (provided that the Company has not terminated the
Ground Lease prior thereto), the TCR Member shall call for additional funding of the Members’ Initial Capital Contribution
not previously funded under Section 8.1.1 (each, a “Capital Call”) in order to fund the amounts set forth in
the Total Project Budget; provided, that, (a) the aggregate amount of a Member’s share of such Capital Calls shall not exceed
the amount of the Member's capital commitment as set forth on Exhibit A and (b) the BR Member reserves the right to cause
the Company to call the full amount of its Initial Capital Contributions on the earlier of (1) April 30, 2015 or (ii) the date
that construction of the Project commences. Capital Calls shall be made by written notice. The terms of any such Capital Call shall
require each Member to contribute its share (i.e. 90% for the BR Member and 10% for the TCR Member) of the amount subject
to such Capital Call by wire transfer payable in U.S. dollars to an account designated in the Capital Call Notice, no later than
the date specified therein (the “Due Date”), provided that (x) such Due Date shall not be less than five (5)
business days after the date of such Capital Call Notice, and (y) TCR Member shall not be required to fund its share if the Capital
Call is made solely by BR Member under subsection (b) above.

 

8.1.3           If
the Company terminates the Ground Lease prior to the Company’s purchase of building permits for the Project (referred to
hereinafter as "Land Contract Termination"), then, at the option of TCR Member, but subject to its compliance with Section
8.1.4 if and as applicable, BR Member will cause the Company to transfer and convey to TCR Member or an Affiliate of TCR Member
designated by TCR Member all of the Company’s (i) interest in the Land Contract, (ii) design and construction plans for the
Project, (iii) all other tangible and intangible rights associated with the Project and previously conveyed to the Company by TCR
Member or Developer or their Affiliates and (iv) all other items appurtenant to the Project and previously conveyed to the Company
by TCR Member or Developer or their Affiliates.

 

8.1.4           Under
the following limited circumstances (and no others), the BR Member, at its election, may discontinue pursuit of the Project and,
if it does so, and subject to BR Member’s compliance with Section 8.1.3 if and as applicable, the TCR Member shall be required
to (x) reimburse BR Member for all of its Pursuit Costs (either paid directly by BR Member or as reimbursements to TCR Member pursuant
hereto) and (y) cause the Company to release from its bank account all of BR Member's funded Initial Capital Contribution to date,
and, if such amount released from the Company’s bank account is less than the total amount of BR Member’s funded Initial
Capital Contribution to date, reimburse BR Member for the amount of its funded Initial Capital Contribution previously expended
by the Company:

 

(a)          if,
prior to Company’s purchase of building permits for the Project, TCR Member causes a Land Contract Termination;

 

(b)          if,
prior to the expiration of the Feasibility Period, TCR Member is unable to deliver the Loan on commercially reasonable terms at
a minimum LTV of 60.8% (based on the overall Total Project Budget) (the “Loan Contingency”), which failure is
not caused by any act or omission of BR Member or a party under its direct control. TCR Member acknowledges and agrees that it
shall solely bear the risk relating to the Loan Contingency, including, without limitation, the risk that a lender refuses to approve
the General Contractor as the general contractor for the Project or refuses to approve the Company as its borrower. The Loan Contingency
shall be deemed unsatisfied for all purposes hereunder if, as a condition to obtaining the Loan, BR Member would be required to
provide a Loan Guaranty (either by BR Member or any of its affiliates or individual owners) or pledge other property or assets
unrelated to the Property or its ownership interest in the Company as security for same (BR Member’s unwillingness to provide
such Loan Guaranty or pledge of non-Property assets shall not be deemed an act or omission that causes the Loan Contingency to
fail to be satisfied);

 

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(c)          if
TCR Member fails to perform its funding and reimbursement obligations under Section 8.1.1 (including the obligation to transfer
all funds held in the TCR Contribution Account to the Operating Account upon the Company’s purchase of building permits for
the Project) as and when the same are due prior to or contemporaneous with the Company’s purchase of building permits for
the Project;

 

(d)          if
any party other than BR Member or any BR Member-affiliated party (or guarantor) fails to deliver any documentation required by
the Lender to close the Loan (such failure to include the failure of any TCR Member-affiliated party (including a TCR Guarantor
or the General Contractor) to do likewise);

 

(e)          if
any lessor under the Land Contract terminates the Land Contract, in whole or in part, due to a default by the lessee or option
holder thereunder unless such default is the result of the sole and direct, intentional or grossly negligent, action or inaction
of BR Member or a party under its direct control; or

 

(f)          if,
at or prior to expiration of the Feasibility Period of the Ground Lease, any updated Total Project Budget submitted by TCR Member
for approval by the Lender under the Loan or BR Member exceeds the Total Project Budget attached hereto by $500,000.00 or more.

 

Upon any such election by
the BR Member to discontinue pursuit of the Project, the BR Member shall have no further obligations to pay or reimburse Pursuit
Costs or to further fund any Capital Contributions. In addition, if the BR Member elects to discontinue pursuit of the Project
under paragraph (a), (b), (c), (d), (e) or (f) above, then upon payment of the amount due the BR Member under this Section 8.1.4,
the BR Member will transfer to the TCR Member the Membership Interest in the Company held by the BR Member and will resign as a
Manager of the Company. Following the acquisition of the BR Member’s Membership Interest, the TCR Member shall indemnify,
defend and hold harmless the BR Member and each of its Indemnitees against any claim, suit, action or other proceeding and all
related loss, damages, judgments, settlements, obligations, liabilities, debts, damages and costs and expenses (including fees
and disbursements of attorneys and other professionals and court costs) incurred by any of them on account of liabilities or obligations
of the Company.

 

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8.1.5           Under
the following limited circumstances (and no others), the TCR Member, at its election, may discontinue pursuit of the Project and,
if it does so, the BR Member shall be required to (x) reimburse TCR Member for all of its Pursuit Costs (either paid directly by
TCR Member or as reimbursements to BR Member pursuant hereto), (y) cause the Company to release from its bank account all of TCR
Member's funded Initial Capital Contribution to date and (z) at the option of TCR Member, cause the Company to transfer and convey
to TCR Member or an Affiliate of TCR Member designated by TCR Member all of the Company’s (i) interest in the Land Contract,
(ii) design and construction plans for the Project, (iii) all other tangible and intangible rights associated with the Project
and previously conveyed to the Company by TCR Member or Developer or their Affiliates and (iv) all other items appurtenant to the
Project and previously conveyed to the Company by TCR Member or Developer or their Affiliates.

 

(a)          if
BR Member fails to perform its funding and reimbursement obligations under Section 8.1.1 (including the obligation to transfer
all funds held in the BR Contribution Account to the Operating Account upon Company’s purchase of building permits for the
Project) as and when the same are due prior to or contemporaneous with the Company’s purchase of building permits for the
Project;

 

(b)          if
BR Member fails to deliver any documentation required by the Lender to close the Loan (such failure to include the failure of any
BR Member-affiliated party (or guarantor) to do likewise); or

 

(c)          any
lessor under the Land Contract terminates the Land Contract, in whole or in part, due to a default by the lessee or option holder
thereunder where such default is the result of the sole and direct, intentional or grossly negligent, action (or inaction) of BR
Member or a party under its direct control.

 

Upon any such election by
the TCR Member to discontinue pursuit of the Project, the TCR Member shall have no further obligations to pay or reimburse Pursuit
Costs or to further fund any Capital Contributions.

 

8.2           Additional
Contributions. Except as set forth in this Article 8, no Member shall be required to make any Capital Contributions
to the Company.

 

8.3           Loans
to Company. To the extent approved by the Members pursuant to Section 7.7, any Member may make a secured or unsecured
loan to the Company.

 

8.4           Additional
Capital Contributions; Funding of Cost Overruns.

 

8.4.1           Non-Development
Cost Overruns. Except in the instance of a funding obligation under Section 8.4.2, in the event the Company is reasonably
expected to incur a Non- Development Cost Overrun, and funds to pay such Non-Development Cost Overrun have not been obtained pursuant
to Section 8.3 above, either Member may determine, in the Member’s reasonable judgment and in good faith, the amount
of required funds and may make a capital call for such funds pursuant to this Section 8.4.1. When a Member makes such capital
call, it shall so notify the other Members, and the Members shall have thirty (30) days to make Additional Capital Contributions
in the amounts of 10% (for the TCR Member) and 90% (for the BR Member) of the necessary funds.

 

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8.4.2           Overrun
Loans. Notwithstanding Section 8.4.1 or 8.4.3: (i) the TCR Member must on its own account pay over to the Company
any Non-Development Cost Overrun caused by, or any additional capital required by the Company because of, a Default Action of the
TCR Member (a “TCR Cost Overrun Loan”) (to be paid back as provided in Section 9.1(f) below, but without
any interest or return thereon); and (ii) the BR Member must on its own account pay over to the Company any Non-Development Cost
Overrun caused by, or any additional capital required by the Company because of, a Default Action of the BR Member (the “BR
Cost Overrun Loan”) (to be paid back as provided in Section 9.1(f) below, but without any interest or return
thereon).

 

8.4.3           Other
Additional Capital Contributions.

 

(a)          In
the event that the Company requires funds to satisfy Company obligations or liabilities (including Debt Service or Operating Expenses),
then to the extent funds to pay such obligations or liabilities have not been obtained pursuant to Section 8.3 above and
no Member is obligated to provide funds for such obligations or liabilities under another provision of this Article 8, either
Member may determine, in such Member’s reasonable judgment and in good faith, the amount of required funds and may notify
the other Member and the Management Committee of same, and upon the receipt of the recommendation of the Member, the Management
Committee shall determine whether such additional funds are, in the Management Committee’s judgment, required. If the Management
Committee determines that such funds are required it shall make a capital call for such funds pursuant to this Section 8.4.3(a).
When the Management Committee makes such capital call, it shall so notify the Members, and the TCR Member and the BR Member shall
have thirty (30) days to make Additional Capital Contributions in the amounts of 10% (for the TCR Member) and 90% (for the BR Member)
of the necessary funds.

 

(b)          In
the event that the Company requires funds to make Remargining Payments or to satisfy any other Company obligations or liabilities
(including Debt Service or Operating Expenses) which other obligation or liabilities if not paid could give rise to a claim against
any of the TCR Guarantors and/or any other Affiliate of the TCR Member that is a successor guarantor under a Loan Guaranty or any
other guaranty or indemnity agreement for a loan to the Company, then to the extent funds to pay such obligations or liabilities
have not been obtained pursuant to Section 8.3 above and no Member is obligated to provide funds for such obligations or
liabilities under another provision of this Article 8, the TCR Member may determine, in its reasonable judgment and in good
faith, the amount of required funds and may make a capital call for such funds pursuant to this Section 8.4.3(b). When the
TCR Member makes such capital call, it shall so notify the BR Member, and the Members shall have thirty (30) days to make Additional
Capital Contributions in the amounts of 10% (for the TCR Member) and 90% (for the BR Member) of the necessary funds.

 

8.4.4           Failure
to Fund Additional Capital Contributions. In the event a Member fails to make all of its Additional Capital Contribution (“Defaulting
Member”) as required in Section 8.4.1 or 8.4.3 above on the due date, any Member who has funded all of
its Additional Capital Contribution (a “Non-Defaulting Member”) may (but shall not be obligated to) contribute
the unpaid portion of the Defaulting Member’s Additional Capital Contribution. If there is more than one Non-Defaulting Member
desiring to make the Additional Capital Contribution to replace the Additional Capital Contribution not funded by the Defaulting
Member, then such Non-Defaulting Members shall be entitled to contribute the Defaulting Member’s unfunded Additional Capital
Contribution in such amounts as they may agree among each other or, in the absence of such agreement, in proportion to their respective
Ownership Percentages. The rights provided by this Section 8.4.4 are the sole and exclusive remedies of the Company, the
Members and the Managers in the event that any Member fails to fund its the Additional Capital Contribution required in Section
8.4.1 or 8.4.3 above.

 

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8.4.5           Hard
Cost and Soft Cost Overruns. The TCR Member may not call for Additional Capital Contributions under Section 8.4.1 or
8.4.3 for any Hard Cost Overruns and Soft Cost Overruns but rather, to the extent the Hard Cost Overruns and Soft Cost Overruns
are not funded by the Developer as required by the Development Agreement, must on its own account pay over to the Company any Hard
Cost Overruns and Soft Cost Overruns as and when they come due as a loan to the Company (each, a “Mandatory Developer
Cost Overrun Loan”), to be paid back as provided in Section 9.1(e) below but without any interest or return thereon.

 

8.4.6           Failure
to Make Cost Overrun Loans. Notwithstanding anything contained herein to the contrary, in the event the Company requires additional
funds because a Member has failed to fund as required its Mandatory Developer Cost Overrun Loan, TCR Cost Overrun Loan or BR Cost
Overrun Loan, as the case may be, then, in such event, the non- defaulting Member shall have the right (but not the obligation)
to make an Additional Capital Contribution in the amount necessary to fund the Defaulting Member’s share, and, when funded,
the Member making such Additional Capital Contribution pursuant to this Section 8.4.6 shall be credited with Additional
Capital Contributions at a 3:1 ratio for each such dollar of Additional Capital Contribution so made to replace the Mandatory Developer
Cost Overrun Loan, TCR Cost Overrun Loan or BR Cost Overrun Loan not funded by the Defaulting Member. For example, if the TCR Member
fails to make a Mandatory Developer Cost Overrun Loan, the BR Member shall have the right but not the obligation to fund such amount
to the Company as an Additional Capital Contribution and, if it does so, the BR Member shall be credited at a 3:1 ratio (meaning,
for every $100,000 of Additional Capital Contribution made by the BR Member for that purpose, the BR Member would be credited with
having made $300,000 of Additional Capital Contributions and the 10% Additional Contribution Priority Return will be calculated
on such $300,000 figure).

 

8.5           Withdrawal
of Members’ Contributions to Capital. A Member, irrespective of the nature of such Member’s Capital Contribution,
has only the right to demand and receive cash in return for such Capital Contribution.

 

8.6           Maintenance
of Capital Accounts. The Company shall establish and maintain a separate Capital Account for each Member. Each Member’s
Capital Account shall be increased by (i) the amount of any money contributed by the Member to the Company, (ii) the fair market
value of any property (other than money) contributed by the Member to the Company, as determined by the Members by arm’s
length agreement at the time of contribution (net of liabilities assumed by the Company or subject to which the Company takes such
property within the meaning of Section 752 of the Code), and (iii) the Member’s allocations of Profits and of any separately
allocated items of income or gain (including any gain or income allocated to the Member to reflect the difference between the Gross
Asset Value and tax basis of assets contributed by such Member). Each Member’s Capital Account shall be decreased by (x)
the amount of any money distributed to the Member by the Company (excluding payments received by a Member from the Company as repayment
of a loan by the Company to the Member), (y) the fair market value of any property (other than money) distributed to the Member,
as determined by the Members by arm’s length agreement at the time of distribution (net of liabilities of the Company assumed
by the Member or subject to which the Member takes such property within the meaning of Section 752 of the Code), and (z) the Member’s
allocation of Losses and of any separately allocated items of deduction or loss (including any loss or deduction allocated to the
Member to reflect the difference between the Gross Asset Value and tax basis of assets contributed by the Member).

 

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ARTICLE 9.

DISTRIBUTIONS

 

9.1           Distributions.
Distributions of Net Cash Flow and Capital Proceeds shall be distributed and applied by the Managers in the following order and
priority:

 

(a)          First,
to Members to repay unreturned Disproportionate Contributions and the unpaid Disproportionate Contribution Priority Return thereon,
in inverse order of funding of the Disproportionate Contributions (i.e. the last funded unpaid Disproportionate Contribution
and all Disproportionate Contribution Priority Return thereon shall be paid in full before any earlier Disproportionate Contribution
or Disproportionate Contribution Priority Return thereon);

 

(b)          Next,
to Members, pari passu, in accordance with their accrued but unpaid Additional Contribution Priority Return, if any, until
each Member entitled to an Additional Contribution Priority Return is paid such amount in full;

 

(c)          Next,
to Members, pari passu, in accordance with their unreturned Additional Capital Contributions until their unreturned Additional
Capital Contributions are reduced to zero;

 

(d)          Next,
to the Members, pari passu, in accordance with their unreturned Initial Capital Contributions until such time as the Members
have received an amount equal to an Internal Rate of Return of ten percent (10%);

 

(e)          Next,
to the TCR Member and the Developer an amount equal to the aggregate of all Mandatory Developer Cost Overrun Loans made by the
TCR Member or the Developer under this Agreement or the Development Agreement, all without interest, until all Mandatory Developer
Cost Overrun Loans are repaid in full;

 

(f)          Next,
to each applicable Member an amount equal to the aggregate of all TCR Cost Overrun Loans and BR Cost Overrun Loans made by such
Member, all without interest, pari passu to the Members based on the principal amounts outstanding with respect to TCR Cost
Overrun Loans and BR Cost Overrun Loans for each Member, until all TCR Cost Overrun Loans and BR Cost Overrun Loans are repaid
in full;

 

(g)          Next,
pari passu, 80.0% to the Members (allocated on the basis of their Ownership Percentages) and 20.0% to the TCR Member until
such time as the BR Member has received an Internal Rate of Return of thirteen percent (13%);

 

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(h)          Next,
pari passu, 70.0% to the Members (allocated on the basis of their Ownership Percentages) and 30% to the TCR Member until
such time as the BR Member has received an Internal Rate of Return of eighteen percent (18%); and

 

(i)          Thereafter,
pari passu, fifty percent (50%) to the Members (allocated on the basis of their Ownership Percentages) and fifty percent
(50%) to TCR Member.

 

Any distribution under paragraph
(a) above in respect of any Disproportionate Contribution and the Disproportionate Contribution Priority Return thereon shall be
allocated, first, to the Disproportionate Contribution Priority Return until it is paid in full and, then, to the Disproportionate
Contribution.

 

9.2           Limitation
Upon Distributions. No distribution shall be made to Members if prohibited by Section 18-607 of the Act.

 

9.3           Interest
On and Return of Capital Contributions. No Member shall be entitled to interest or other return on its Capital Contribution,
or to return of its Capital Contribution, except as otherwise specifically provided for herein.

 

ARTICLE 10.

ALLOCATIONS OF PROFITS AND LOSSES

 

10.1         Allocation
of Profits and Losses. Profits and Losses for any taxable year of the Company will be allocated to the Members as follows:

 

10.1.1           Allocations
of Profits and Losses for Capital Account Purposes. After giving effect to the special allocations set forth in Sections
10.2 and 10.3, Profits and Losses of the Company for any taxable year shall be allocated among the Capital Accounts
of the Members in such a manner that would cause, to the extent possible, the Capital Accounts of the Members as of the end of
such taxable year, after adjustment for all contributions and distributions during the taxable year, and after adjustment for the
special allocations set forth in Sections 10.2 and 10.3, and after increase for the Members’ respective shares
of Company Minimum Gain and Member Minimum Gain (determined in accordance with Regulations Section 1.704-2(b)(2) and 1.704-2(i)(2)),
to equal the aggregate distributions that the Members would be entitled to receive pursuant to Section 9.1, in each case
determined as if (i) all assets of the Company, including cash, were sold for their Gross Asset Values (which, for the avoidance
of doubt, shall not be “booked up” to fair market value for this purpose outside of an actual liquidation), (ii) all
Company liabilities were satisfied in cash according to their terms (with each nonrecourse liability limited to the book value
of the assets securing such liability) and (iii) the remaining proceeds were distributed in accordance with Section 9.1.
The Managers, based on the advice of the Company’s tax advisors, shall have the authority to correct or adjust any allocation
provision hereunder as they determine to be necessary or appropriate (and not unfairly discriminatory against any Member) for such
allocations, in the aggregate, to be made in the manner provided in the first sentence of this Section 10.1.

 

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10.1.2           Limitations
on Losses for Capital Account Purposes. Losses or items of deduction or loss allocated pursuant to Section 10.1.1 shall
not exceed the maximum amount that can be allocated without causing any Member to have a negative Adjusted Capital Account Balance
at the end of any taxable year. In the event some but not all of the Members would have negative Adjusted Capital Account Balance
as a consequence of an allocation pursuant to Section 10.1.1, the limitation set forth in this Section 10.1.2 shall
be applied on a Member-by- Member basis and Losses or items of deduction or loss not allocable to any Member as a result of such
limitation shall be allocated to the other Members in accordance with the positive Adjusted Capital Account Balances of such Members
so as to allocate the maximum amount of Losses or items of deduction or loss to each Member that is permissible under Section 1.704-1(b)(2)(ii)(d)
of the Regulations.

 

10.2         Special
Allocations. The following special allocations shall be made in the following order:

 

10.2.1    Minimum
Gain Chargeback. Notwithstanding any other provision of this Article 10, but subject to the exceptions set forth in Regulations
Sections 1.704-2(f)(2), (3), (4) and (5), if there is a net decrease in Company Minimum Gain during any Company taxable year,
each Member shall be specially allocated items of Company income and gain for such taxable year (and, if necessary, subsequent
taxable years) in an amount equal to such Member’s share of the net decrease in Company Minimum Gain, determined in accordance
with Regulations Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance
with Section 1.704-2(f) of the Regulations. This Section 10.2.1 is intended to comply with the minimum gain chargeback
requirement in Section 1.704-2(g) of the Regulations and shall be interpreted consistently therewith.

 

10.2.2    Member
Minimum Gain Chargeback. Notwithstanding any other provision of this Article 10 (except Section 10.2.1), but
subject to the exceptions set forth in Regulations Sections 1.704-2(i)(4), if there is a net decrease in Member Minimum Gain attributable
to a Member Nonrecourse Debt during any Company taxable year, each Member who has a share of the Member Minimum Gain attributable
to such Member Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated
items of Company income and gain for such taxable year (and, if necessary, subsequent taxable years) in an amount equal to such
Member’s share of the net decrease in Company Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance
with Regulations Section 1.704-2(i)(5). Allocations pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance
with Section 1.704- 2(i)(4) of the Regulations. This Section 10.2.2 is intended to comply with the minimum gain chargeback
requirement in Section 1.704-2(g) of the Regulations and shall be interpreted consistently therewith.

 

10.2.3    Qualified
Income Offset. In the event any Member unexpectedly receives any adjustments, allocations, or Distributions described in Regulations
Sections 1.704-1(b)(2)(ii)(d)(4), (5), or (6), items of Company income and gain shall be specially allocated to each such Member
in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the deficit Adjusted Capital Account
Balance of such Member created by such adjustments, allocations or distributions as quickly as possible, provided that an allocation
pursuant to this Section 10.2.3 shall be made if and only to the extent that such Member would have a deficit Adjusted Capital
Account Balance after all other allocations provided for in this Article 10 have been tentatively made as if this Section
10.2.3 were not in this Agreement.

 

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10.2.4    Gross
Income Allocation. In the event any Member has a negative Adjusted Capital Account Balance at the end of any taxable year,
each such Member shall be specially allocated items of Company income and gain in the amount of such excess as quickly as possible,
provided that an allocation pursuant to this Section 10.2.4 shall be made if and only to the extent that such Member would
have a negative Adjusted Capital Account Balance after all other allocations provided for in this Article 10 have been
tentatively made as if Section 10.2.3 hereof and this Section 10.2.4 were not in this Agreement.

 

10.2.5    Nonrecourse
Deductions. Nonrecourse Deductions for any taxable year shall be specially allocated to the Members in accordance with their
respective Ownership Percentages.

 

10.2.6    Member
Nonrecourse Deductions. Any Member Nonrecourse Deductions for any taxable year shall be specially allocated to the Member
who bears the economic risk of loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are
attributable in accordance with Regulations Section 1.704-2(i).

 

10.2.7    Section
754 Adjustment. To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Section 734(b)
or Code Section 743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining
Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment
increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated
to the Members in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to Section
1.704-2(g) of the Regulations.

 

10.3         Curative
Allocations.

 

10.3.1    The
allocations set forth in Sections 10.1.2 and 10.2 (the “Regulatory Allocations”) are intended
to comply with certain requirements of the Regulations. It is the intent of the Members that, to the extent possible, all Regulatory
Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of Company income,
gain, loss or deduction pursuant to this Section 10.3. Therefore, notwithstanding any other provision of this Article
10 (other than the Regulatory Allocations), the Managers shall make such offsetting special allocations of Company income,
gain, loss or deduction in whatever manner they determine appropriate so that, after such offsetting allocations are made, each
Member’s Capital Account balance is, to the extent possible, equal to the Capital Account balance such Member would have
had if the Regulatory Allocations were not part of this Agreement and all Company items were allocated pursuant to Section 10.1.1.

 

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10.3.2    The
Managers shall have reasonable discretion, with respect to each Company taxable year, to (i) apply the provisions of Section
10.3.1 hereof in whatever manner is likely to minimize the economic distortions that might otherwise result from the Regulatory
Allocations, and (ii) divide all allocations pursuant to Section 10.3.1 hereof among the Members in a manner that is likely
to minimize such economic distortions.

 

10.4         Tax
Allocations.

 

10.4.1    Except
as set forth in this Section 10.4, allocations for income tax purposes of items of income, gain, loss, deduction, and credits,
and basis therefor, shall be made in the same manner as such items are allocated in computing Capital Accounts as set forth in
Sections 10.1, 10.2 and 10.3 hereof. In applying this Section 10.4, each item of income, gain, loss,
deduction, and credits for a taxable year not specially allocated shall be allocated in the same proportions as the allocation
of Profits and Losses for such taxable year.

 

10.4.2    In
the event of a contribution of property other than cash to the Company, income, gain, loss, deduction, and credits with respect
to such contributed property shall be shared among the Members solely for tax purposes so as to take account of the variation between
the basis of the property to the Company and its initial Gross Asset Value at the time of contribution in accordance with Code
Section 704(c) and the Regulations thereunder.

 

10.4.3    In
the event the book value of any Company asset is adjusted to equal its fair market value in accordance with Regulations Sections
1.704-1(b)(2)(iv)(d) and 1.704-1(b)(2)(iv)(f), subsequent allocations of income, gain, loss and deduction with respect to such
asset shall take into account any variation between the adjusted basis of such asset for federal income tax purposes and its fair
market value pursuant to Code Section 704(c) and the Regulations thereunder, using such allocation method permitted thereunder
as selected by the Members.

 

10.4.4           To
the extent of any recapture income resulting from the sale or other taxable disposition of assets of the Company, the amount of
any gain from such disposition allocated to a Member (or a successor in interest) for federal income tax purposes pursuant to the
above provisions shall be deemed to be recapture income to the extent that such Member has been allocated or has claimed any deduction
directly or indirectly giving rise to the treatment of such gain as recapture income.

 

10.4.5           The
items of income, gain, deduction and loss for tax purposes allocated to the Members pursuant to this Section 10.4 shall
not be reflected in the Members’ Capital Accounts. Any elections or other decisions relating to such allocations shall be
made by the Managers in any manner that reasonably reflects the purpose and intent of this Agreement and is consistent with the
economic arrangement among the Members.

 

10.4.6           Pursuant
to Treasury Regulations Section 1.752-3(a)(3), the Members hereby agree to allocate excess nonrecourse liabilities of the Company
in accordance with their respective Ownership Percentages.

 

10.5         Varying
Interest in Company. Allocations to any Member whose Membership Interest changes during a Company taxable year or to any Member
who is a Member for less than a full Company taxable year, whether by reason of the admission of a Member, the withdrawal of a
Member, a non-pro rata contribution of capital to the Company or any other event described in Section 706(d)(1) of the Code and
the Regulations issued thereunder, shall be made in accordance with Section 706(d) of the Code and the Regulations promulgated
thereunder to take into account the varying interests of the Members in the Company during the Company taxable year.

 

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10.6         Tax
Matters Partner. The BR Member shall act as the “tax matters partner” for the Company, as that term is defined
in Section 6231(a)(7) of the Code. This designation is effective only for the purpose of activities performed pursuant to the Code
and corresponding provisions of applicable state law. The BR Member, as tax matters partner, shall not take any action that may
be taken by a tax matters partner under Code Sections 6221 through 6234 unless the BR Member has received the approval of the Members
as to such action. The BR Member, as tax matters partner, shall not bind any Member to a settlement agreement without first obtaining
the approval of such Member. The BR Member, as tax matters partner, shall promptly mail to each Member a copy of any notice received
by the BR Member from the Internal Revenue Service in any administrative proceeding at the Company level relating to the determination
of any Company item of income, gain, loss, expense, deduction or credit. The BR Member, as tax matters partner, shall take such
action as may be necessary to cause each Member to become a “notice partner” within the meaning of Section 6231(a)(8)
of the Code. The BR Member, as tax matters partner, shall promptly (and in any event within five (5) days) forward to each Member
copies of all significant written communications it may receive or send in such capacity. The provisions of this Section 10.6
shall also apply, mutatis mutandis, in connection with state and local income tax matters. The provisions of this Section
10.6 shall survive any liquidation or dissolution of the Company.

 

ARTICLE 11.

BOOKS AND RECORDS

 

11.1         Accounting
Period. The Company’s accounting period shall be the calendar year.

 

11.2         Records.
Proper and complete records and books of accounts shall be kept or shall be caused to be kept by the Managers in which shall be
entered fully and accurately all transactions and other matters relating to the Company’s business in such detail and completeness
as is customary and usual for businesses of the type engaged in by the Company. The Company shall keep at its principal place of
business the following records:

 

(a)          A
current list of the full name and last known address of each Member, Economic Interest Owner and Manager;

 

(b)          Copies
of records to enable a Member to determine the relative voting rights, if any, of the Members;

 

(c)          A
copy of the Certificate of Formation of the Company and all amendments thereto;

 

(d)          Copies
of the Company’s federal, state and local income tax returns for the three most recent Fiscal Years;

 

(e)          Copies
of this Agreement, together with any amendments hereto;

 

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(f)          Copies
of any financial statements of the Company for the three (3) most recent Fiscal Years.

 

The Company’s books
and records shall be open to the reasonable inspection and examination of the Members or their duly authorized representatives
during reasonable business hours.

 

11.3         Reports
and Financial Statements.

 

11.3.1           Within
twenty (20) days of the end of each Fiscal Year, the TCR Member shall cause each Member to be furnished with the following annual
reports computed as of the last date of the Fiscal Year: (i) an unaudited balance sheet of the Company; (ii) an unaudited income
statement of the Company; and (iii) a statement of the Members’ Capital Accounts and changes therein in such Fiscal Year.

 

11.3.2           The
TCR Member shall cooperate with any REIT Member, at the expense of the Company, to provide the REIT Member such information as
is necessary for the REIT Member (or any of its direct or indirect owners) to determine its qualification as a REIT and its compliance
with REIT Requirements. The TCR Member shall, at the request of any Member, at the expense of the Company, work in good faith with
any designated accountants or auditors of such Member or its Affiliates so that such Member or its Affiliate is able to comply
with any public reporting, attestation, certification and other requirements under the Securities Exchange Act of 1934, as amended,
applicable to such Member or Affiliate, including for purposes of testing internal controls and procedures of the Company.

 

11.4 Tax Returns.
The BR Member shall cause the preparation and timely filing (taking into account allowed extensions) of all tax returns required
to be filed by the Company pursuant to the Code and all other tax returns deemed necessary and required in each jurisdiction in
which the Company does business. The BR Member shall submit such returns to the Members for their review, comment and approval
at least ten (10) days prior to filing. The BR Member shall deliver or cause to be delivered to each Member by January 31 a copy
of the tax returns for the Company for the preceding year, together with such information with respect to the Company as shall
be necessary for the preparation by such Member of its U.S. federal and state income tax returns.

 

ARTICLE 12.

TRANSFERABILITY

 

12.1         General
Prohibition. Except as provided in Sections 12.2, and 12.6 hereof, in which event no consent from any party shall
be required to effectuate the transfer(s) described therein, (i) no Member or Economic Interest Owner may assign, convey, sell,
transfer, liquidate, encumber, or in any way alienate (collectively a “Transfer”), all or any part of its Membership
Interest or Economic Interest without the prior written consent of the Members, which consent may be given or withheld in the sole
discretion of any Member, and (ii) no Member or Economic Interest Owner may allow a Transfer of any direct or indirect equity interest
in the Member or Economic Interest Owner without the prior written consent of the Members, which consent may be given or withheld
in the sole discretion of any Member; provided, however, that nothing contained herein shall prohibit:

 

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(a)          any
Transfers of direct or indirect equity interests in the TCR Member so long as such Transfers do not result in a TCR Change of Control;

 

(b)          any
Transfers of direct or indirect equity interests in BR REIT; and

 

(c)          any
Transfers of direct or indirect equity interests in the BR Member so long as after the Transfer the BR Member continues to be controlled,
directly or indirectly, by Bluerock Real Estate, L.L.C. and/or BR REIT.

 

Any attempted Transfer of
all or any portion of any Membership Interest or Economic Interest without the necessary consent, or as otherwise permitted hereunder,
shall be null and void and shall have no effect whatsoever. Upon the transfer of a Membership Interest or Economic Interest in
accordance with this Article 12, the Ownership Percentages of the transferring Member or Economic Interest Owner and of
the transferee shall be adjusted accordingly. Notwithstanding anything contained herein to the contrary, no Transfer of any Membership
Interest or Economic Interest, or any direct or indirect equity interest in a Member or Economic Interest Owner, shall be permitted
that would violate the terms of any loan documents for the Loan or any other loan to the Company.

 

12.2         Affiliate
Transfers. Notwithstanding anything to the contrary contained in this Agreement (except the last sentence of Section 12.1),
the following Transfers shall not require the approval set forth in Section 12.1:

 

(a)          Any
Transfer by BR Member or a Bluerock Transferee of up to one hundred percent (100%) of its Membership Interest to any Affiliate
of Bluerock Real Estate, L.L.C., including but not limited to any of the following so long as it continues to be an Affiliate of
Bluerock Real Estate, L.L.C.: (i) BR REIT or any Person that is directly or indirectly owned by BR REIT; (ii) Bluerock Special
Opportunity + Income Fund, LLC or any Person that is directly or indirectly owned by Bluerock Special Opportunity + Income Fund,
LLC; (iii) Bluerock Special Opportunity + Income Fund II, LLC or any Person that is directly or indirectly owned by Bluerock Special
Opportunity + Income Fund II, LLC, (iv) Bluerock Special Opportunity + Income Fund III, LLC or any Person that is directly or indirectly
owned by Bluerock Special Opportunity + Income Fund III, LLC, (v) Bluerock Growth Fund, LLC or any Person that is directly or indirectly
owned by Bluerock Growth Fund, LLC and/or (vi) Bluerock Growth Fund II, LLC or any Person that is directly or indirectly owned
by Bluerock Growth Fund II, LLC (collectively, a “Bluerock Transferee”); provided, that, following the date
the BR REIT first acquires a direct or indirect interest in the Company or the Project, in all instances, BR REIT shall either
retain, direct or indirectly, more than fifty percent (50%) of the ownership interest in the BR Member or otherwise retain the
power to control, directly or indirectly, the major activities of the BR Member such that BR REIT can consolidate the BR Member
on its audited financial statements; and

 

(b)          Any
Transfer by TCR Member or a TCR Transferee of up to one hundred percent (100%) of its Membership Interest to any Affiliate of the
TCR Member (a “TCR Transferee”).

 

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12.3         Conditions
of Transfer and Assignment. A transferee of a Membership Interest pursuant to Section 12.1 or 12.2 shall become
a Member only if the following conditions have been satisfied:

 

(a)          the
transferor, his legal representative or authorized agent must have executed a written instrument of transfer of such Membership
Interest in form and substance satisfactory to the Managers;

 

(b)          the
transferee must have executed a written agreement, in form and substance satisfactory to the Managers, assuming all of the duties
and obligations of the transferor under this Limited Liability Company Agreement with respect to the transferred Membership Interest
and agreeing to be bound by and subject to all of the terms and conditions of this Limited Liability Company Agreement applicable
to it as holder of the transferred Membership Interest;

 

(c)          the
transferor, his legal representative or authorized agent, and the transferee must have executed a written agreement, in form and
substance satisfactory to the Managers, to indemnify and hold the Company, the Managers and the Members (other than the transferor),
and the Indemnitees of the Managers and the Members (other than the transferor) harmless from and against any loss or liability
arising out of the transfer;

 

(d)          the
transferee must have executed such other documents and instruments as the Managers may deem necessary to effect the admission of
the transferee as a Member; and

 

(e)          unless
waived by the Managers, the transferee or the transferor must have paid the expenses incurred by the Company and the Managers and
the Members (other than the transferor) in connection with the admission of the transferee to the Company.

 

12.4         Transfers
of Economic Interest Only. A permitted transferee of an Economic Interest who does not become a Member shall be an Economic
Interest Owner only and shall be entitled only to the transferor’s Economic Interest to the extent assigned. Such transferee
shall not be entitled to vote on any question regarding the Company, and the Ownership Percentage associated with the transferred
Economic Interest shall not be considered to be outstanding for voting purposes.

 

12.5         Successors
as to Economic Rights. References in this Limited Liability Company Agreement to Members and Membership Interests shall also
be deemed to constitute a reference to Economic Interest Owners and Economic Interests where the provision relates to economic
rights, obligations of a holder of an interest in the Company or restrictions on Transfer of an interest in the Company. By way
of illustration and not limitation, such provisions would include those regarding Capital Accounts, distributions, allocations
for tax purposes, and contribution obligations. By way of illustration and not limitation, such provisions would not include any
right to vote on, consent to or otherwise participate in any decision of the Members or Managers. A transferee shall succeed to
the transferor’s Capital Contributions and Capital Account to the extent related to the Economic Interest transferred, regardless
of whether such transferee becomes a Member.

 

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12.6         Buy/Sell.

 

12.6.1           Either
Member may exercise its right to initiate the provisions of this buy/sell provision (the “Buy/Sell”) at any
time after the earlier of (i) five years from the date of this Agreement or (ii) the second anniversary of the date of Substantial
Completion if either:

 

(a)          the
Members are unable to agree unanimously on any Major Decision and such failure to agree has continued for thirty (30) days after
written notice from one Member to the other Member indicating an intention to exercise rights under the Buy/Sell; or

 

(b)          the
Offeror (as defined below) desires to liquidate its investment in the Company.

 

12.6.2           The
Member wishing to exercise its rights pursuant to the Buy/Sell (the “Offeror”) shall do so by giving notice
to the other Member (the “Offeree”) setting forth a statement invoking its rights under the Buy/Sell, stating
therein the aggregate dollar amount (the “Valuation Amount”) that the Offeror would be willing to pay for the
Property and the Project (i.e., the assets of the Company other than cash and cash equivalents and accounts receivable),
free and clear of all liabilities.

 

12.6.3           After
receipt of such notice, the Offeree shall elect to either (i) sell its entire Membership Interest in the Company 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 (other than
cash and cash equivalents and accounts receivable) for the Valuation Amount on the Buy/Sell Closing Date and the Company had immediately
paid all Company liabilities (which expressly shall not include any loan defeasance, yield maintenance and/or pre-payment costs)
and distributed the net proceeds of sale, along with the cash and cash equivalents and accounts receivable held by the Company
as of the Buy/Sell Closing Date, to the Members in satisfaction of their interests in the Company, or (ii) purchase the entire
Membership Interest of the Offeror in the Company for an amount equal to the amount the Offeror would have been entitled to receive
if the Company had sold all of its assets (other than cash and cash equivalents and accounts receivable) for the Valuation Amount
on the Buy/Sell Closing Date and the Company had immediately paid all Company liabilities (which expressly shall not include any
loan defeasance, yield maintenance and/or pre-payment costs) and distributed the net proceeds of the sale, along with the cash
and cash equivalents and accounts receivable held by the Company as of the Buy/Sell Closing Date, to the Members in satisfaction
of their Membership Interest. The Offeree shall have sixty (60) 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 within such time period to
acquire the Offeror’s Membership Interest, the Offeree shall be deemed to have elected to sell its Membership Interest to
the Offeror as provided in clause (i) above.

 

12.6.4           Within
five (5) business days after an election has been made or deemed made, the acquiring Member shall deposit with a mutually acceptable
third-party escrow agent a non-refundable earnest money deposit in the amount of one percent (1%) of the Valuation Amount, which
amount shall be applied to the purchase price at the closing of the Buy/Sell. 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
who has a right under its loan documents to consent to such transfer to so consent, the selling Member may exercise one of the
following remedies (which shall constitute the sole and exclusive remedy available to the selling Member and the Company because
of a default by the acquiring Member):

 

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(a)          the
selling Member may require that the earnest money deposit be distributed from escrow to the selling Member, free of all claims
of the acquiring Member, as liquidated damages;

 

(b)          the
selling Member may, by delivering to the acquiring Member written notice thereof within fifteen (15) days after the original Buy/Sell
Closing Date, elect to buy the acquiring Member’s entire Membership 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 (other than cash and cash equivalents and
accounts receivable) for the Valuation Amount and the Company had immediately paid all Company liabilities (which expressly shall
not include any loan defeasance, yield maintenance and/or pre-payment costs) and distributed the net proceeds of the sale, along
with the cash and cash equivalents and accounts receivable held by the Company as of the Buy/Sell Closing Date, to the Members
in satisfaction of their Membership Interest, in which case, the Buy/Sell Closing Date therefor shall be the date specified in
the selling Member’s notice not later than sixty (60) days after the original Buy/Sell Closing Date; or

 

(c)          if
the selling Member was the Offeror, the selling Member may proceed to cause the Company to sell the Project, without the need for
obtaining any consent or approval of the Members, the Managers or the Management Committee, so long as (A) the sale price for the
Project is equal to or greater than the Valuation Amount, (B) the sale of the Project is closed not later than one hundred eighty
(180) days after the original Buy/Sell Closing Date and (C) on closing of the Project sale, the selling Member obtains releases
of any Loan Guaranty or any other guaranty or indemnity agreement for a loan to the Company as contemplated by Section 12.6.7
as if the other Member were transferring its Membership Interest at such closing. If the selling Member proceeds with a sale
of the Project, the selling Member shall keep the other Member apprised of the progress of the sale efforts and shall give the
other Member notice of the closing for the Project sale at least ten (10) days in advance.

 

In addition to the foregoing
remedies, if the acquiring Member should fail to consummate the Buy/Sell transaction for any reason other than a default by the
selling Member or a refusal by any lender of the Company who has a right under its loan documents to consent to the transfer of
the Membership Interest to so consent, the non-refundable earnest money deposit for any future election by the acquiring Member
to buy the selling Member’s Membership Interest under the Buy/Sell shall be twenty percent (20%) of the Valuation Amount
in connection with such future election.

 

12.6.5           Subject
to Section 12.6.4, the “Buy/Sell Closing Date” of an acquisition shall be a date set by the acquiring
Member not later than ninety (90) days after an election has been made or deemed made pursuant to Section 12.6.3. The acquiring
Member shall give the selling Member notice of the date selected as the Buy/Sell Closing Date at least ten (10) days in advance
of such Buy/Sell Closing Date. At such closing, the following shall occur:

 

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(a)          The
selling Member shall assign to the acquiring Member or its designee the selling Member’s Membership Interest in the Company
and shall execute and deliver to the acquiring Member all documents which may be reasonably required to give effect to the disposition
and acquisition of such Membership Interest, in each case free and clear of all liens, claims, and encumbrances (other than the
liens, claims, and encumbrances created by this Agreement and liens, claims, and encumbrances securing debts or obligations of
the Company), with covenants of general warranty;

 

(b)          The
acquiring Member shall pay to the selling Member the consideration for the selling Member’s Membership Interest in the Company
in cash. The purchase price for the selling Member’s Membership Interest will be adjusted to reflect accrued, liquidated
liabilities (including prorations for unpaid property taxes) that are not otherwise taken into account in determining the purchase
price;

 

(c)          The
acquiring Member shall agree to indemnify, defend and hold harmless the selling Member and each of its Indemnitees against any
claim, suit, action or other proceeding and all related loss, damages, judgments, settlements, obligations, liabilities, debts,
damages and costs and expenses (including fees and disbursements of attorneys and other professionals and court costs) incurred
by any of them on account of liabilities or obligations of the Company; and

 

(d)          Upon
transfer of its Membership Interest, the selling Member will be released from all obligations to the Company, the Managers and
the Members under this Agreement to the extent performable after the date of the transfer.

 

Each Member will be responsible
for all legal, accounting and similar fees incurred by it in connection with the transfer of a Membership Interest through the
Buy/Sell. All transfer taxes (whether imposed on a Member or the Company) and recording fees actually due in connection with any
transfer of a Membership Interest through the Buy/Sell will be paid by the Company and taken into account as a Company liability
in determining the purchase price for the transferred Membership Interest.

 

12.6.6           It
is expressly agreed that the remedy at law for breach of the obligations of the Members under this Agreement related to the Buy/Sell
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.

 

12.6.7           Notwithstanding
anything to the contrary set forth herein, in the event that BR Member is the acquiring Member and, as of the Buy/Sell Date, the
TCR Member, any of the TCR Guarantors and/or any Affiliate of the TCR Member is a guarantor under any Loan Guaranty or any other
guaranty or indemnity agreement for a loan to the Company, then as a condition precedent to the Buy/Sell closing, the BR Member
shall procure a release of the TCR Member, such TCR Guarantors and each such Affiliate, as applicable, under the Loan Guaranty
or other guaranty or indemnity agreement in form and substance reasonably acceptable to such party, or the BR Member shall obtain
at its sole cost and expense a waiver from the TCR Member, such TCR Guarantors and each such Affiliate of this obligation, which
may be given or withheld in such parties’ sole and absolute discretion. Notwithstanding anything to the contrary set forth
herein, in the event that TCR Member is the acquiring Member and, as of the Buy/Sell Date, the BR Member and/or any Affiliate of
the BR Member is a guarantor under any Loan Guaranty or any other guaranty or indemnity agreement for a loan to the Company, then
as a condition precedent to the Buy/Sell closing, the TCR Member shall procure a release of the BR Member and each such Affiliate,
as applicable, under the Loan Guaranty or other guaranty or indemnity agreement in form and substance reasonably acceptable to
such party, or the TCR Member shall obtain at its sole cost and expense a waiver from the BR Member and each such Affiliate of
this obligation, which may be given or withheld in such parties’ sole and absolute discretion.

 

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12.6.8           Simultaneously
with the purchase of a Membership Interest through the Buy/Sell, the acquiring Member must purchase all loans and advances made
to the Company by the selling Member or any of its Affiliates for the amount that would be received by the selling Member or the
Affiliate in repayment of those loans and advances assuming that the Company had sold its assets (other than cash and cash equivalents
and accounts receivable) for the Valuation Amount on the Buy/Sell Closing Date and the Company had immediately paid all Company
liabilities (which expressly shall not include any loan defeasance, yield maintenance and/or pre-payment costs) and distributed
the net proceeds of sale, along with the cash and cash equivalents and accounts receivable held by the Company as of the Buy/Sell
Closing Date, to the Members in satisfaction of their interests in the Company. For such purpose, (i) it shall be assumed that
all transfer taxes (whether imposed on a Member or the Company) and recording fees actually due in connection with any transfer
of a Membership Interest through the Buy/Sell are paid by the Company and taken into account as a Company liability in determining
the amount available for repayment of such loans and advances and (ii) accrued, liquidated liabilities (including prorations for
unpaid property taxes) that are not otherwise taken into account will be treated as Company liabilities in determining the amount
available for repayment of such loans and advances.

 

ARTICLE 13.

ISSUANCE OF ADDITIONAL MEMBERSHIP INTERESTS

 

Except as otherwise provided
for herein, any Person approved by all of the Members may become a Member in the Company by the issuance by the Company of Membership
Interests for such consideration as all of the Members shall determine. No new Members shall be entitled to any retroactive allocation
of losses, income or expense deductions incurred by the Company. The Managers may, upon the approval of all the existing Members,
at the time a Member is admitted, close the Company books (as though the Company’s taxable year had ended) or make pro rata
allocations of loss, income and expense deductions to a new Member for that portion of the Company’s taxable year in which
a Member was admitted in accordance with the provisions of Section 706(d) of the Code and the Treasury Regulations promulgated
thereunder.

 

ARTICLE 14.

DISSOLUTION AND TERMINATION

 

14.1         Dissolution.

 

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14.1.1 The Company shall
be dissolved upon the occurrence of any of the following events:

 

(a)          the
unanimous written agreement of all Members;

 

(b)          the
Company no longer has an interest in the Project or in any proceeds (other than cash) received from the sale or other disposition
of the Project;

 

(c)          the
election of a Member to discontinue pursuit of the Project in accordance with Section 8.1.4 or 8.1.5, unless the
TCR Member elects to continue the Company following acquisition of the Membership Interest of the BR Member as provided in Section
8.1.4; or

 

(d)          a
decree of judicial dissolution under the Act.

 

To the maximum extent permitted
under the Act, the Company shall not dissolve upon an event of dissociation with respect to a Member or other event (except those
specifically enumerated above).

 

14.1.2 If a Member who is
an individual dies or a court of competent jurisdiction adjudges him to be incompetent to manage his person or his property, the
Member’s executor, administrator, guardian, conservator, or other legal representative may exercise all of the Member’s
rights for the purpose of settling his estate or administering his property, but such person shall be a holder of an Economic Interest
and shall not have the rights of a Member, unless admitted in accordance with Section 12.3. Further, such Person shall be
subject to the provisions of Section 12.5.

 

14.2         Effect
of Dissolution. Upon dissolution, the Company shall cease to carry on any business, except as permitted by Section 18-803 of
the Act.

 

14.3         Winding
Up, Liquidation and Distribution of Assets.

 

14.3.1           Upon
dissolution, the Managers or, if none, the Person or Persons selected by the Members (the “Liquidators”) shall
immediately proceed to wind up the affairs of the Company.

 

14.3.2           If
the Company is dissolved and its affairs are to be wound up, the Liquidators shall:

 

(a)          Sell
or otherwise liquidate all of the Company’s assets as promptly as practicable;

 

 

(b)          Allocate
any items of income, gain, loss, deduction, and credits resulting from such sales to the Members and Economic Interest Owners in
accordance with Article 10 hereof;

 

(c)          Discharge
all liabilities of the Company, including liabilities to Members and Economic Interest Owners who are creditors, other than liabilities
to Members and Economic Interest Owners for distributions, and establish such Reserves as may be reasonably necessary to provide
for contingent or unliquidated liabilities of the Company; and

 

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(d)          Distribute
the remaining proceeds to the Members in accordance with Section 9.1.

 

14.3.3           In
the final taxable year of the Company, before making the final distributions provided for in Section 14.3.2(d), Profits
and Losses shall be credited or charged to Capital Accounts of the Members (which Capital Accounts shall be first adjusted to take
into account all distributions other than liquidating distributions made during the taxable year) in the manner provided in Article
10. The allocations and distributions provided for in this Agreement are intended to result in the Capital Account of each
Member immediately prior to the liquidation distributions of the Company’s assets pursuant to Section 14.3.2(d) being
equal to the amount distributable to such Member pursuant to Section 14.3.2(d). The Managers are authorized to make appropriate
adjustments in the allocation of Profits and Losses and, if necessary, items of gross income and gross deductions of the Company,
for the taxable year of liquidation of the Company (and, if earlier, the taxable year in which all or substantially all of the
Company’s assets are sold, transferred or disposed of) as necessary to cause the amount of each Member’s Capital Account
immediately prior to the distribution of the Company’s assets pursuant to Section 14.3.2(d) to equal the amount distributable
to such Member pursuant to Section 14.3.2(d). Notwithstanding the foregoing, nothing in this Section 14.3.3 shall
affect the amounts distributable to the Members under Section 14.3.2(d).

 

14.3.4           Notwithstanding
anything to the contrary in this Limited Liability Company Agreement, if at any time (including upon liquidation of the Membership
Interest or Economic Interest of a Member or Economic Interest Holder, or the winding up of the Company, or a liquidation within
the meaning of Section 1.704-1(b)(2)(ii)(g) of the Treasury Regulations), if any Member has a deficit Capital Account (after giving
effect to all contributions, distributions, allocations and other Capital Account adjustments for all taxable years, including
the taxable year during which such event occurs), such Member shall have no obligation to make any Capital Contribution, and the
negative balance of such Member’s Capital Account shall not be considered a debt owed by such Member to the Company, any
other Member or any other Person for any purpose whatsoever.

 

14.4         Certificate
of Cancellation. When all debts, liabilities and obligations have been paid and discharged or adequate provisions have been
made therefor and all of the remaining property and assets have been distributed to the Members, a Certificate of Cancellation
may be executed and filed with the Secretary of State of Delaware in accordance with Section 18-203 of the Act.

 

14.5         Return
of Contribution Nonrecourse to Other Members. Except as expressly provided in this Limited Liability Company Agreement, upon
dissolution, each Member shall look solely to the assets of the Company for the return of its Capital Contribution. If the Company
property remaining after the payment or discharge of the debts and liabilities of the Company is insufficient to return the Capital
Contributions of one or more Members, such Member or Members shall have no recourse against any other Member, the Managers or the
members of the Management Committee, unless otherwise expressly provided in this Limited Liability Company Agreement.

 

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ARTICLE 15.

INDEMNIFICATION

 

15.1         Indemnification
by Company. The Managers, the Members and the members of the Management Committee, as well as each Person who holds a direct
or indirect ownership interest in a Manager or a Member and the respective officers, directors, trustees, managers, agents and
employees of any Manager or Member or any Person who holds a direct or indirect ownership interest in a Manager or a Member and
the respective successors (other than by assignment) of any other Indemnitee (each, an “Indemnitee”)
shall be indemnified and defended by the Company, to the fullest extent permitted by law, against any and all claims and demands
by third-parties arising out of or related to the Company or its business or affairs, or any act, omission or failure to act by
any of them in connection with the business or affairs of the Company and related actions, lawsuits and other proceedings, judgments,
awards, settlements, obligations, liabilities, debts, damages and costs and expenses (including fees and disbursements of attorneys
and other professionals and court costs); provided, however, that (i) such matter was not the result of fraud, willful misconduct,
material breach of this Agreement or gross negligence on the part of such Indemnitee or another Indemnitee affiliated with it and,
in the case of any act, omission or failure to act by an Indemnitee, the course of conduct was within the authority allowed to
it by this Agreement and (ii) such Indemnitee or another Indemnitee affiliated with it is not separately obligated to the Company,
without right of reimbursement, for such amount under another provision of this Agreement or another written agreement. Any such
indemnification will only be recoverable from the assets of the Company and the Members shall not have any liability on account
thereof; provided, however, that this provision does not preclude any Member or Manager from requesting Capital Contributions to
fund such indemnification in accordance with Article 8.

 

15.2         Indemnification
by Members for Misconduct.

 

15.2.1           TCR
Member hereby indemnifies, defends and holds harmless the Company, BR Member, each Bluerock Transferee and each Indemnitee of BR
Member or a BR Transferee from and against (i) all losses, costs, expenses, damages, claims and liabilities (including reasonable
attorneys’ fees) incurred (A) under any Loan Guaranty or any other guaranty or indemnity agreement for a loan to the Company
to the extent arising out of any fraud, gross negligence or willful misconduct on the part of, or by, TCR Member or its Affiliates
or (B) as a result of any breach of Section 16.22.2 by TCR Member, and (ii) any claim, suit, action or other proceeding, loss,
damages, judgments, settlements, obligations, liabilities, debts, damages and costs and expenses (including fees and disbursements
of attorneys and other professionals and court costs) to the extent resulting from the fraud, willful misconduct or gross negligence
on the part of the TCR Member in connection with the Company or its business or affairs or any course of conduct not within the
authority allowed to TCR Member by this Agreement.

 

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15.2.2           BR
Member hereby indemnifies, defends and holds harmless the Company, TCR Member, each TCR Transferee and each Indemnitee of TCR Member
or a TCR Transferee from and against (i) all losses, costs, expenses, damages, claims and liabilities (including reasonable attorneys’
fees) incurred (A) under any Loan Guaranty or any other guaranty or indemnity agreement for a loan to the Company to the extent
arising out of any fraud, gross negligence or willful misconduct on the part of, or by, BR Member or its Affiliates or (B) as a
result of any breach of Section 16.22.2 by BR Member, and (ii) any claim, suit, action or other proceeding, loss, damages, judgments,
settlements, obligations, liabilities, debts, damages and costs and expenses (including fees and disbursements of attorneys and
other professionals and court costs) to the extent resulting from the fraud, willful misconduct or gross negligence on the part
of the BR Member in connection with the Company or its business or affairs or any course of conduct not within the authority allowed
to BR Member by this Agreement.

 

ARTICLE 16.

MISCELLANEOUS PROVISIONS

 

16.1         Application
of Delaware Law. This Limited Liability Company Agreement, and the application and interpretation thereof, shall be governed
exclusively by the laws of the State of Delaware, including the Act.

 

16.2         No
Action for Partition. No Member or Economic Interest Owner has any right to maintain any action for partition with respect
to the property of the Company.

 

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

 

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

 

16.5         Waivers.
The failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or condition
of this Limited Liability Company Agreement shall not prevent a subsequent act, which would have originally constituted a violation,
from having the effect of an original violation.

 

16.6         Rights
and Remedies Cumulative. Unless otherwise specifically limited by another provision of this Limited Liability Company Agreement,
the rights and remedies provided by this Limited Liability Company Agreement are cumulative and the use of any one right or remedy
by any party shall not preclude or waive the right not to use any or all other remedies. Such rights and remedies are given in
addition to any other rights the parties may have by law, statute, ordinance or otherwise, except as otherwise specifically limited
by this Limited Liability Company Agreement.

 

16.7         Severability.
If any provision of this Limited Liability Company Agreement or the application thereof to any person or circumstance shall be
invalid, illegal or unenforceable to any extent, the remainder of this Limited Liability Company Agreement and the application
thereof under other circumstances shall not be affected and shall be enforceable to the fullest extent permitted by law.

 

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

 

16.9         Beneficiaries
of Agreement. None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditors of the Company,
a Member or a Manager or by any Person not a party hereto. No creditor of a Member, a Manager or the Company may require a contribution
to the capital of the Company to be solicited or a distribution to be made by the Company, nor may any creditor of a Member, a
Manager or the Company enforce the obligation of a Member or a Manager under this Agreement, including any obligation of a Member
to make a contribution to the capital of the Company. A person extending credit to the Company may never claim that it did so in
reliance on an obligation to contribute capital to the Company within the meaning of Section 18-502(b) of the Act.

 

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

 

16.11         Federal
Income Tax Elections. All elections required or permitted to be made by the Company under the Code shall be made by the Members.

 

16.12         Certification
of Non-Foreign Status. In order to comply with Section 1445 of the Code and the applicable Treasury Regulations thereunder,
in the event of the disposition by a Member or the Company of a United States real property interest as defined in the Code and
Treasury Regulations, each Member shall provide to the Company an affidavit stating, under penalties of perjury, (i) the Member’s
address, (ii) the Member’s United States taxpayer identification number, (iii) that the Member is not a foreign person as
that term is defined in the Code and Treasury Regulations and (iv) if the Member is a disregarded entity as defined in Section
1.1445-2(b)(2)(iii) of the Regulations, the identity of the Person considered the owner of its property for United States income
tax purposes and the same information required of the Member as to such Person. Failure by any Member to provide such affidavit
by the date of such disposition shall authorize the Managers to withhold ten percent (10%) of such Member’s distributive
share of the amount realized by the Company or the Member, as applicable, on the disposition.

 

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16.13         Notices.
Any and all notices, offers, demands or elections required or permitted to be made under this Agreement (“Notices”)
shall be in writing and shall be delivered either by personally delivering it by hand or Federal Express or similar commercial
courier service to the person to whom Notice is directed, or by electronic mail sent to the appropriate Person, or by depositing
it with the United States Postal Service, certified mail, return receipt requested, with adequate postage prepaid, addressed to
the appropriate Person (and marked to a particular individual’s attention). Notice shall be deemed given and effective (i)
when hand-delivered if by personal delivery or Federal Express or similar commercial courier service, (ii) as of the date and time
it is transmitted by electronic mail if there is a written or electronic record of the date, time and email address to which the
Notice was sent, or (iii) on the third (3rd) business day (which term means a day when the United States Postal Service, or its
legal successor (“Postal Service”) is making regular deliveries of mail on all of its regularly appointed week-day
rounds in Dover, Delaware) following the day (as evidenced by proof of mailing) upon which such Notice is deposited, postage pre-paid,
certified mail, return receipt requested, with the Postal Service. Rejection or other refusal by the addressee to accept the Notice
shall be deemed to be receipt of the Notice. In addition, the inability to deliver the Notice because of a change of address of
the party to whom the Notice was sent shall be deemed to be the receipt of the Notice sent. The addresses to which Notice is to
be sent shall be those set forth below on Exhibit A or such other address as shall be designated in a Notice sent by the
addressee to the Members and Managers. The Managers shall keep a list of all designated addresses and such list shall be available
to any Member upon request thereof.

 

16.14         Amendments.
Any amendment to this Agreement shall be made in writing and signed by all Members. If a Manager is not a Member, a Manager will
be bound by an amendment to this Agreement that adversely affects its interests only to the extent the amendment is approved in
writing by the Manager.

 

16.15         Banking.
All funds of the Company shall be deposited in its name in an account or accounts as shall be designated from time to time by the
Managers. All funds of the Company shall be used solely for the business of the Company. All withdrawals from the Company bank
accounts shall be made only upon check signed by the Managers or by such other persons as the Managers may designate from time
to time.

 

16.16         Jurisdiction;
Venue; Waiver of Jury. The parties hereto agree that any suit brought to enforce this Agreement shall be venued only in any
court of competent jurisdiction in the State of New York, Borough of Manhattan and, by execution and delivery of this Agreement,
each of the parties to this Agreement hereby irrevocably accepts and waives all objection to the exclusive jurisdiction of the
aforesaid courts in connection with any suit brought to enforce this Agreement and irrevocably agrees to be bound by any judgment
rendered thereby. Each of the parties hereto hereby agrees that service of process in any such proceeding may be made by giving
notice to such party in the manner and at the place set forth in Section 16.13 herein, but service of process shall be effective
only on actual receipt, any provision of Section 16.13 to the contrary notwithstanding. Each Member irrevocably and unconditionally
waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement or
the transactions contemplated hereby

 

16.17         Further
Assurances. The Members each agree to cooperate, and to execute and deliver in a timely fashion any and all additional documents
or instruments necessary to effectuate the purposes of the Company and this Agreement.

 

16.18         Time.
TIME IS OF THE ESSENCE OF THIS AGREEMENT AND TO ANY PAYMENTS, ALLOCATIONS AND DISTRIBUTIONS SPECIFIED UNDER THIS AGREEMENT.

 

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16.19         Investment
Representations and Indemnity Agreement. Each Member represents and warrants to the Company and the Members and Managers (other
than such Member) that it has acquired its Membership Interest for investment solely for its own account and with the intention
of holding such Membership Interest for investment, without any intention of participating directly or indirectly in any distribution
of any portion of such Membership Interest. In addition to the restrictions on transfer set forth above, each Member understands
that Members must bear the economic risk of this investment for an indefinite period of time because the Membership Interests are
not registered under the Securities Act of 1933, as amended (the “1933 Act”) or the securities laws of
any state or other jurisdiction. Each Member has been advised that there is no public market for the Membership Interests and that
the Membership Interests are not being registered under the 1933 Act or the securities laws of any state or other jurisdiction
upon the basis that the transactions involving their sale are exempt from such registration requirements, and each Member acknowledges
that reliance by the Company on such exemption is predicated in part on the Member’s representations set forth in this Agreement.
Each Member acknowledges that no representations of any kind concerning the Property or the future intent or ability to offer or
sell the Membership Interest in a public offering or otherwise have been made to the Member by the Company or any other Person
or entity. The Member understands that the Company makes no covenant, representation or warranty with respect to the registration
of securities under the Securities Exchange Act of 1934, as amended, or the securities laws of any state or other jurisdiction,
or its dissemination to the public of any current financial or other information concerning the Company. Accordingly, the Member
acknowledges that there is no assurance that there will ever be any public market for the Membership Interest and that the Member
may not be able to publicly offer or sell any thereof. Furthermore, each Member agrees to indemnify and defend the Members and
Managers (other than such Member), the Company and any Indemnitee of the Members and Managers (other than such Member) from any
claim, suit, action or other proceeding and all related loss, damages, judgments, settlements, obligations, liabilities, debts,
damages and costs and expenses (including fees and disbursements of attorneys and other professionals and court costs) incurred,
suffered or sustained by any of them in any manner because of the falsity of any representation contained in this Section 16.19,
including, without limitation, liability, for violation of the 1933 Act or other securities laws of the United States or the securities
laws of any state or other jurisdiction which violation would not have occurred had such representation been true.

 

16.20         No
Partnership Interest for Non-Tax Purposes. The Members have formed the Company under the Act and expressly disavow any intention
to form a partnership under Delaware’s Uniform Partnership Act, Delaware’s Uniform Limited Partnership Act, or the
partnership act or laws of any other state. The Members do not intend to be partners one to another or partners as to any third
party. To the extent any Member or Manager, by word or action, represents to another person that any other Member is a partner
or that the Company is a partnership, the Member or Manger making such wrongful representations shall be liable to any other Member
who incurs personal liability by reason of such wrongful representation.

 

16.21         Entire
Agreement. This Agreement contains the entire understanding among the parties hereto with respect to the subject matter hereof.
This Agreement supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied,
oral or written between such parties as to such subject matter.

 

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16.22         Seperateness
Provisions and Member Represenations and Warranties

 

16.22.1         Separateness
Provisions. In order to maintain its status as a separate entity and to avoid any confusion or potential consolidation with
any Affiliate, the Company will observe the following covenants: (i) maintain books and records and bank accounts separate from
those of any other Person; (ii) maintain its assets in such a manner that it is not difficult to segregate or identify such assets;
(iii) comply with all organization formalities necessary to maintain its separate existence; (iv) hold itself out to creditors
and the public as a legal entity separate and distinct from any other entity; (v) maintain separate financial statements, showing
its assets and liabilities separate and apart from those of any other Person and not have its assets listed on any financial statement
of any other Person, except that the Company’s assets may be included in a consolidated financial statement of an Affiliate
so long as appropriate notation is made on such consolidated financial statements to indicate the separateness of the Company from
such Affiliate; (vi) prepare and file its own tax returns separate from those of any Person to the extent required by applicable
law, and pay any taxes required to be paid by applicable law; (vii) allocate and charge fairly and reasonably any common employee
or overhead shared with Affiliates; (viii) except for capital contributions, capital distributions or other transactions permitted
under the terms and conditions of this Agreement, not enter into any transaction with any Affiliate, except upon terms and conditions
that are commercially reasonable and substantially similar to those that would be available on an arm’s-length basis with
third parties; (ix) not commingle its assets or funds with those of any other Person; (x) not assume, guarantee or pay the debts
or obligations of any other Person; (xi) correct any known misunderstanding as to its separate identity; (xii) not permit any Affiliate
to guarantee or pay its obligations (other than the TCR Guarantors and direct or indirect owners of the Company); (xiii) not make
loans or advances to any other Person; and (xiv) pay its liabilities and expenses out of and to the extent of its own funds; provided,
however, that none of the foregoing shall require any Member to make additional capital contributions, loans or other advances
to the Company.

 

16.22.2         Member
Representations and Warranties. 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 this Section 16.22.2. Such representations and warranties shall survive the execution
of this Agreement.

 

(a)          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 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)          Neither
the execution, delivery or performance of this Agreement nor the consummation by such Member of the transactions contemplated hereby
(i) materially conflicts with, materially violates or results in a material 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, (ii) conflicts with, violates, results
in a breach of or constitutes a default under any of the terms, conditions or provisions of the articles of incorporation, bylaws,
partnership agreement or operating agreement of such Member, (iii) materially conflicts with, materially violates, results in a
material breach of or constitutes a material default under any material agreement or instrument to which such Member is a party
or by which such Member is bound or to which any of its properties or assets is subject, (iv) materially conflicts with, materially
violates, results in a material breach of or constitutes a material default under (whether with notice or lapse of time or both),
accelerates or permits the acceleration of the performance required by, gives to others any material interests or material rights
or requires any consent, authorization or approval under any indenture, mortgage or lease to which such Member is a party or by
which such Member or any of their properties or assets is or may be bound or (iv) results in the creation or imposition of any
lien upon any of the properties or assets of such Member.

 

(c)          There
are no actions, suits, proceedings or investigations pending, or, to the knowledge of such Member, threatened against or affecting
such Member 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, in such Member’s reasonable judgment, 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; such Member
has not received any currently effective notice of any default, and, to the knowledge of such Member, is not in default, under
any applicable order, writ, injunction, decree, permit, determination or award of any court, any governmental department, board,
agency or instrumentality, domestic or foreign, or any arbitrator which could reasonably be expected to materially impair such
Member’s ability to perform its obligations under this Agreement.

 

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

 

(Signatures on following page)

 

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IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

  

	 	BR SOUTHSIDE MEMBER, LLC
	 	 
	 	By: Bluerock Special Opportunity + Income Fund II, LLC,
	 	its Manager
	 	 
	 	By: BR SOIF II Manager, LLC, its Manager

 

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

 

	 	By: Bluerock Special Opportunity + Income Fund III, LLC,
	 	its Manager

 

	 	By: BR SOIF III Manager, LLC, its Manager
	 	 
	 	By: 	/s/ Jordan Ruddy
	 	 	Jordan Ruddy, Authorized Signatory

 

	 	BLAIRE HOUSE, LLC
	 	 
	 	By: HCH 114 Southside, L.P., a Delaware limited 
	 	partnership, its manager
	 	 
	 	By: Maple Multi-Family Development, L.L.C., a Texas 
	 	limited liability company, its general partner

 

	 	By: 	/s/ Donna C. Kruger	 
	 	Name: 	Donna C Kruger	 
	 	Titile: 	Vice President	 

 

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List of Exhibits:

 

	Exhibit A	 	Information Regarding Members and Management Committee
	Exhibit B	 	Property
	Exhibit C	 	Total Project Budget
	Exhibit D	 	Plans
	Exhibit E	 	Pursuit Costs Budget

 

EXHIBIT A

 

INFORMATION REGARDING MEMBERS

 

	Member 
 Name and 
 Address	 	Initial 
 Capital 
 Contribution	 	 	Initial 
 Ownership 
 Percentage	 
	BR Southside Member,	 	$	15,293,215	 	 	 	90	%
	LLC 712 Fifth Avenue, 9th	 	 	 	 	 	 	 	 
	Floor New York, NY 10019	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Blaire House, LLC	 	$	1,699,277	 	 	 	10	%
	820 Gessner Road, Suite 760	 	 	 	 	 	 	 	 
	Houston, TX 77024	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Total	 	$	16,992,492	 	 	 	100	%

 

MANAGEMENT COMMITTEE APPOINTMENTS

 

	TCR Member Appointments:	BR Member Appointments:
	 	 
	1.          Kenneth J. Valach	1.          Ryan MacDonald
	2.          Sean Rae	2.          Jordan Ruddy

 

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EXHIBIT B

 

LEGAL DESCRIPTION OF

PROPERTY

 

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METES AND BOUNDS DESCRIPTION

4.220 ACRES (183,812 SQUARE FEET)

A.C. REYNOLDS SURVEY, ABSTRACT NUMBER 61

HARRIS COUNTY, TEXAS

 

Being a tract or parcel containing 4.220 acres
(183,812 square feet) of land situated in the A.C. Reynolds Survey, Abstract Number 61, Harris County, Texas, being all of Lots
79 and 80 and a portion of Lots 77, 78 and 81 of Cambridge Place, a subdivision of record in Volume 4, Page 55 of the Map records
of Harris County, Texas, and being all of a called 41,179 square foot tract known as Tract 1, all of a called 75,664 square foot
tract known as Tract 2 and all of a called 67,002 square foot tract known as tract 3, as conveyed to Prokop Industries BH LP under
Harris County Clerk’s File Number 20070414341, said 4.220 acre tract being more particularly described by metes and bounds
as follows (bearings are based on the Texas State Plane Coordinate System, south central zone NAD 83);

 

BEGINNING at a 5/8-inch iron rod with
cap found in the west right-of-way line of Academy Street (60 feet wide), as recorded in Volume 22, Page 29 of the Map Records
of Harris County, Texas, marking the northeast corner of Block 1 of Ayrshire Addition, a subdivision of record in Volume 22, Page
29 of the Map Records of Harris County, Texas, same being the southeast corner of said Lot 77, the southeast corner of said Tract
1 and the southeast corner of the herein described tract, from which a 5/8-inch iron rod with cap found marking the intersection
of the west right-of-way line of said Academy Street and the north right-of- way line of Gramercy Street bears South 02°14’47”
East, 133.98 feet;

 

THENCE South 87°23’44”
West, along the north line of said Block 1, a distance of 472.00 feet to a 5/8- inch iron rod with cap found marking the southeast
corner of a called 2.793 acre tract, as described in deed to Tropicana, Inc. under Harris County Clerk’s File Number F680795,
the southwest corner of said Tract 2 and the southwest corner of the herein described tract;

 

THENCE North 02°14’47”
West, over and across said Lot 81 and along the east line of said called 2.793 acre tract, a distance of 430.05 feet (called 430.13
feet) to a 5/8-inch iron rod with cap stamped “Terra Surveying” set in the south right-of-way line of Bellaire Boulevard
(120 feet wide), as recorded in Volume 4, Page 55 of the Map Records of Harris County, Texas, same being the northeast corner of
said called 2.793 acre tract, the northwest corner of said Tract 2 and the northwest corner of the herein described tract;

 

THENCE North
87°34’33” East, along the south right-of-way line of said Bellaire Boulevard, a distance of 332.00 feet to a
point for the northwest corner of a tract of land conveyed to Big Diamond Number 1, Inc. under Harris County Clerk’s
File Number 20100055641, same being the northeast corner of said Tract 3 and the most northerly northeast corner of the
herein described tract, from which a found 5/8-inch iron rod with cap bears North 15°38’ West 0.35 feet;

 

THENCE South 02°14’47”
East, over and across said Lot 78 and along the east line of said Tract 3, a distance of 134.22 feet (called 135.00 feet) to a
5/8-inch iron rod found marking the southwest corner of said Big Diamond Number 1, Inc. tract, the northwest corner of said Tract
1 and an interior corner of the herein described tract;

 

THENCE North 87°44’00”
East, over and across said Lots 78 and 77 and along the north line of said Tract 1, a distance of 140.00 feet to a 5/8-inch iron
rod with cap found in the west right-of-way line of said Academy Street, marking the southeast corner of said Big Diamond Number
1, Inc. tract, the northeast corner of said Tract 1 and the most easterly northeast corner of the herein described tract;

 

THENCE South 02°14’47”
East, along the west right-of-way line of said Academy Street, a distance of 293.96 feet to the POINT OF BEGINNING and containing
4.220 acres (183,812 square feet) of land. This description is based on an ALTA/ACSM Land Title Survey made by Terra Surveying
Company, Inc., dated September 27, 2014, TSC Project Number 1617-1441-S.

 

Compiled by: Michael Sissenwein

Checked by: George Collison, RPLS

Terra Surveying Company, Inc.

3000 Wilcrest Drive, Suite 210

Houston, Texas 77042

1617-1441-4.220ac mb.docx

 

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EXHIBIT C

 

TOTAL PROJECT BUDGET

 

Development Budget

 

	Cost Item	 	Total	 	 	Per Unit	 	 	Per SF	 
	Construction Hard Costs	 	$	38,226,362	 	 	$	141,579	 	 	$	158.00	 
	General Contractor (GC) Fee	 	$	1,911,318	 	 	$	7,079	 	 	$	7.90	 
	Land (Broker Fee)	 	$	200,000	 	 	$	741	 	 	$	0.83	 
	Taxes	 	$	600,000	 	 	$	2,222	 	 	$	2.48	 
	Legal	 	$	200,000	 	 	$	741	 	 	$	0.83	 
	Closing Costs	 	$	125,000	 	 	$	463	 	 	$	0.52	 
	Financing	 	$	205,090	 	 	$	760	 	 	$	0.85	 
	BlueRock Management Fee	 	$	50,000	 	 	$	185	 	 	$	0.21	 
	Architect	 	$	913,950	 	 	$	3,385	 	 	$	3.78	 
	Engineering & Surveying	 	$	200,000	 	 	$	741	 	 	$	0.83	 
	Marketing	 	$	325,000	 	 	$	1,204	 	 	$	1.34	 
	Construction Interest	 	$	948,127	 	 	$	3,512	 	 	$	3.92	 
	Ground Lease Through Stabilization	 	$	1,700,000	 	 	$	6,296	 	 	$	7.03	 
	Preleasing	 	$	275,000	 	 	$	1,019	 	 	$	1.14	 
	Leaseup Operating Deficit	 	$	567,421	 	 	$	2,102	 	 	$	2.35	 
	Overhead	 	$	1,413,842	 	 	$	5,236	 	 	$	5.84	 
	Soft Cost Contingency	 	$	375,000	 	 	$	1,389	 	 	$	1.55	 
	Investment Banking Fee	 	$	305,814	 	 	$	1,133	 	 	$	1.26	 
	Total Project Cost	 	$	48,541,923	 	 	$	179,785	 	 	$	200.64	 

 

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EXHIBIT D

PLANS

 

	DRAWING NUMBER	 	DRAWING TITLE	 	25% PROGRESS REVIEW ISSUE	 	 
	GENERAL: GARAGE ONLY	 	REVIEW	 	 
	GG00	 	Cover Sheet - Garage ONLY	 	12/17/2014	 	 
	GG02	 	Tabulations, Symbols and Abbreviations	 	12/17/2014	 	 
	GG03	 	Building Code Analysis - Garage ONLY	 	12/17/2014	 	 
	GG34	 	Assemblies	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	ARCHITECTURAL: GARAGE ONLY	 	REVIEW	 	 
	AG101	 	Level B2: Garage Building Plan	 	12/17/2014	 	 
	AG102	 	Level B1: Garage Building Plan	 	12/17/2014	 	 
	AG103	 	Level GF: Garage Building Plan	 	12/17/2014	 	 
	AG103a	 	Level GF: Garage Dimension Control Plan	 	12/17/2014	 	 
	AG105	 	Level 3F: Garage Building Plan	 	12/17/2014	 	 
	AG106	 	Level 4F: Garage Building Plan	 	12/17/2014	 	 
	AG107	 	Level 5F: Garage Building Plan	 	12/17/2014	 	 
	AG300	 	Garage Building Sections	 	12/17/2014	 	 
	AG316	 	Stair 6: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG317	 	Stair 7: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG318	 	Stair 8: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG319	 	Stairs 9 & 10: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG321	 	Elevators 1 & 2 and Trash-1: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG322	 	Elevators 2 & 3: Enlarged Plans and Sections	 	12/17/2014	 	 
	AG502	 	Details - Misc at Garage	 	12/17/2014	 	 
	AG521	 	Details - Door	 	12/17/2014	 	 
	AG541	 	Details - Stairs	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	CIVIL	 	REVIEW	 	 
	C0.0	 	Cover Sheet	 	12/17/2014	 	 
	C1.0	 	Paving Plan and Dimension Control Plan	 	12/17/2014	 	 
	C2.0	 	Utility Plan	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	LANDSCAPING	 	REVIEW	 	 
	L1.01	 	Materials Plan	 	12/17/2014	 	 
	L1.02	 	Materials Plan	 	12/17/2014	 	 
	L3.01	 	Pool Details	 	12/17/2014	 	 
	L3.02	 	Construction Details	 	12/17/2014	 	 
	L5.01	 	Permit Planting Plan	 	12/17/2014	 	 
	L5.02	 	Permit Planting Plan	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	GENERAL: APARTMENTS	 	REVIEW	 	 
	GA00	 	Cover Sheet	 	12/17/2014	 	 
	GA28a	 	Accessibility Summary - TAS	 	12/17/2014	 	 
	GA28b	 	Accessibility Summary - TAS	 	12/17/2014	 	 
	GA28c	 	Accessibility Summary - TAS	 	12/17/2014	 	 
	GA29	 	Accessibility Summary - FHA	 	12/17/2014	 	 
	GA29	 	Accessibility Summary - FHA	 	12/17/2014	 	 
	GA31	 	Assemblies	 	12/17/2014	 	 
	GA32	 	Assemblies	 	12/17/2014	 	 
	GA33	 	Assemblies	 	12/17/2014	 	 
	GA34	 	Assemblies	 	12/17/2014	 	 
	GA35	 	Assemblies	 	12/17/2014	 	 
	GA36	 	Assemblies	 	12/17/2014	 	 
	GA38	 	Assemblies	 	12/17/2014	 	 
	GA39	 	Assemblies	 	12/17/2014	 	 
	GA40	 	Assemblies	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	ARCHITECTURAL: APARTMENTS	 	REVIEW	 	 
	A101	 	Building Plan - Basement 2 Floor	 	12/17/2014	 	 
	A102	 	Building Plan - Basement 1 Floor	 	12/17/2014	 	 
	A103	 	Building Plan - GF Ground Floor	 	12/17/2014	 	 
	A104	 	Building Plan - 2F Second Floor	 	12/17/2014	 	 
	A105	 	Building Plan - 3F Third Floor	 	12/17/2014	 	 
	A106	 	Building Plan - 4F Fourth Floor	 	12/17/2014	 	 
	A107	 	Building Plan - 5F Floor (Garage ) Roof Plan at Apts.	 	12/17/2014	 	 
	A201	 	Building Elevations	 	12/17/2014	 	 
	A202	 	Building Elevations	 	12/17/2014	 	 
	A203	 	Building Elevations	 	12/17/2014	 	 
	A203	 	Building Elevations	 	12/17/2014	 	 

 

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	A324	 	Stair 2: Enlarged Plans & Sections	 	12/17/2014	 	 
	A325	 	Stair 5, 6 & 7: Enlarged Plans & Sections	 	12/17/2014	 	 
	A325	 	Stair 3: Enlarged Plans & Sections	 	12/17/2014	 	 
	A326	 	Stair 4: Enlarged Plans & Sections	 	12/17/2014	 	 
	A327	 	Stair 5: Enlarged Plans & Sections	 	12/17/2014	 	 
	A328	 	Stair 6: Enlarged Plans & Sections	 	12/17/2014	 	 
	A329	 	Stair 8 & Stair 9: Enlarged Plans & Sections	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	A400	 	Unit E1	 	12/17/2014	 	 
	A410	 	Unit A1	 	12/17/2014	 	 
	A411	 	Unit A2	 	12/17/2014	 	 
	A413	 	Unit A5	 	12/17/2014	 	 
	A414	 	Unit A6	 	12/19/2014	 	 
	A430	 	Unit B1	 	12/17/2014	 	 
	A431	 	Unit B2	 	12/19/2014	 	 
	A432	 	Unit B3	 	12/19/2014	 	 
	A433	 	Unit B4	 	12/19/2014	 	 
	 	 	 	 	 	 	 
	STRUCTURAL:	 	REVIEW	 	 
	S0-0	 	Cover Sheet Drawing List Index	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	S1-0	 	Overall Foundation Plan	 	12/17/2014	 	 
	SD0-1	 	Schedules	 	12/17/2014	 	 
	SD1-1	 	Foundation Details	 	12/17/2014	 	 
	SD2-1	 	Floor Framing Details	 	12/17/2014	 	 
	SD3-1	 	Building Sections, Shear Wall Sections	 	12/17/2014	 	 
	SD3-2	 	Shear Wall Framing Details	 	12/17/2014	 	 
	SD4-1	 	Roof Framing Details	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	GS1-1	 	Garage Basement 1 Plan	 	12/17/2014	 	 
	GS1-2	 	Garage Basement 2 Plan	 	12/17/2014	 	 
	GS1-3	 	Garage Basement 3 Plan	 	12/17/2014	 	 
	GS2-1	 	Garage Ground Floor Plan	 	12/17/2014	 	 
	GS2-2	 	Garage 2nd Floor Plan	 	12/17/2014	 	 
	GS2-3	 	Garage 3rd Floor Plan	 	12/17/2014	 	 
	GS2-4	 	Garage 4th Floor Plan	 	12/17/2014	 	 
	GS2-5	 	Garage 5th Floor Plan	 	12/17/2014	 	 
	GS3-1	 	Garage Foundation Details	 	12/17/2014	 	 
	GS3-2	 	Garage Foundation Details	 	12/17/2014	 	 
	GS3-3	 	Garage Foundation Details	 	12/17/2014	 	 
	GS4-1	 	Garage Elevated Details	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	PS1-1	 	Club Podium Foundation Plan	 	12/17/2014	 	 
	PS1-2	 	Fitness Podium Foundation Plan	 	12/17/2014	 	 
	PS2-1	 	Second Level Club Podium Plan	 	12/17/2014	 	 
	PS2-2	 	Second Level Fitness Podium Plan	 	12/17/2014	 	 
	 	 	 	 	 
	MECHANICAL	 	REVIEW	 	 
	M-4.1	 	Partial Ground Floor Plan NW	 	12/17/2014	 	 
	M-4.2	 	Partial Ground Floor Plan NE	 	12/17/2014	 	 
	M-4.3	 	Partial Ground Floor Plan SW	 	12/17/2014	 	 
	M-4.4	 	Partial Ground Floor Plan SE	 	12/17/2014	 	 
	M-4.5	 	Partial 2nd & 3rd Floor Plan NW	 	12/17/2014	 	 
	M-4.8	 	Partial 2nd & 3rd Floor Plan SE	 	12/17/2014	 	 
	ELECTRICAL	 	REVIEW	 	 
	E-4.1	 	Partial Ground Floor Plan NW	 	12/17/2014	 	 
	E-4.2	 	Partial Ground Floor Plan NE	 	12/17/2014	 	 
	E-4.3	 	Partial Ground Floor Plan SW	 	12/17/2014	 	 
	E-4.4	 	Partial Ground Floor Plan SE	 	12/17/2014	 	 
	E-4.3	 	Partial Ground Floor Plan SW	 	12/17/2014	 	 
	E-4.2	 	Partial Ground Floor Plan NE	 	12/17/2014	 	 
	E-4.4	 	Partial Ground Floor Plan SE	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	PLUMBING	 	REVIEW	 	 
	P-1.1	 	Site Plan	 	12/17/2014	 	 
	GP-1.1	 	Garage Basement 2 Floor Plan	 	12/17/2014	 	 
	GP-1.2	 	Garage Basement 1 Floor Plan	 	12/17/2014	 	 
	GP-1.3	 	Garage Ground Floor Plan	 	12/17/2014	 	 
	GP-1.4	 	Garage 2nd Floor Plan	 	12/17/2014	 	 
	GP-1.5	 	Garage 3rd & 4th Floor Plan	 	12/17/2014	 	 
	GP-1.6	 	Garage 5th Floor Plan	 	12/17/2014	 	 
	 	 	 	 	 	 	 
	FIRE PROTECTION	 	REVIEW	 	 
	 	 	 	 	 	 	 
	INTERIOR DESIGN (Leasing/Club and Outdoor Living)	 	REVIEW	 	 

 

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EXHIBIT E

PURSUIT COSTS BUDGET

 

 

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