Document:

Exhibit 10.5

 

BACKSTOP AGREEMENT

 

THIS AGREEMENT (the
"Agreement") is made as of the 20th day of May, 2015 (the "Effective Date"), by TRIBRIDGE
RESIDENTIAL, LLC, a Georgia limited liability company ("TriBridge") and BLUEROCK RESIDENTIAL GROWTH REIT, INC.,
a Maryland corporation ("Bluerock Guarantor").

 

WITNESSETH

 

WHEREAS,
BR WHETSTONE MEMBER, LLC, a Delaware limited liability company, an affiliate of the Bluerock Guarantor (the "BR Member"),
and TRIBRIDGE CO-INVEST 27, LLC, a Georgia limited liability company, an affiliate of TriBridge (the "TriBridge"),
have entered into that certain Operating Agreement, dated as of May 20, 2015 ("Operating Agreement"), of BR-TBR
Whetstone Venture, LLC, a Delaware limited liability company ("Company");

 

WHEREAS, the
Company is the sole member of BR-TBR Whetstone Owner, LLC, a Delaware limited liability company (the "Property Owner"),
the owner of fee simple title to the Property;

 

WHEREAS, on
or about May 20, 2015, the Property Owner has obtained a loan from KeyBank National Association ("Lender"), in
the maximum principal amount of Twenty-Five Million One Hundred Forty-Seven Thousand Five Hundred and No/100 Dollars ($25,147,500.00)
(the "Loan") evidenced by a Promissory Note dated May 20, 2015 (the "Note") and a Loan Agreement
dated May 20, 2015 (the "Loan Agreement") and secured by a first lien deed of trust on the Property;

 

WHEREAS, pursuant
to (i) certain Guaranty Agreement executed and delivered by the Bluerock Guarantor in favor of Lender (the "Mortgage Guaranty"),
and (ii) that certain Environmental and Hazardous Substances Indemnity Agreement executed and delivered by the Bluerock Guarantor
and Property Owner in favor of Lender (the "Environmental Indemnity" and together with the Mortgage Guaranty,
the "Mortgage Guaranties"), the Bluerock Guarantor is guaranteeing certain obligations relating to the Loan;

 

WHEREAS, TriBridge
has agreed to execute and deliver this Agreement to set forth its agreement with respect to liabilities which may arise under the
Mortgage Guaranties; and

 

WHEREAS, capitalized
terms used herein and not otherwise defined shall have the meaning ascribed thereto in the Operating Agreement.

 

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

 

1.             Defined
Terms. The following terms (whether or not underscored) when used in this Agreement, including its preamble and recitals, shall,
except where the context otherwise requires, have the following meanings (such meanings to be equally applicable to the singular
and plural forms thereof):

 

    	1

    	 

    

 

"Acquiesces"
or "Acquiesced" means, with respect to any Person and any act or omission that may give rise to Guaranty Losses,
and such Person having received (separately, simultaneously and with particularity) written notice from the Person causing such
action to be taken or omitted and specifically describing such act or omission, such Person responding with a written statement
within five (5) Business Days of its receipt of such notice affirmatively stating that such Person does not object to such noticed
acts or omissions (it being specifically acknowledged and agreed, however, that if such Person does not so respond within such
five (5) Business Day period, then such Person shall be deemed to have not Acquiesced). For example, if (x) any TriBridge Party
desires to take or omit an action which if taken or omitted may give rise to Guaranty Losses, (y) such TriBridge Party gives simultaneous
and specific written notices to the Bluerock Guarantor of such TriBridge Party’s intent with regard to such action, and (z)
the Bluerock Guarantor fails to respond within five (5) Business Days, then the Bluerock Guarantor shall be deemed to have
not Acquiesced to such action.

 

"BR Party"
means any of (a) the Bluerock Guarantor, (b) BR Member, (c) any Person that acquires a membership interest in the Company from
a BR Party pursuant to the provisions of the Operating Agreement, and (d) any employee, agent, representative, officer, manager
or member of BR Member or the Bluerock Guarantor.

 

"BR Party Caused
Guaranty Losses" means any Guaranty Losses that arise solely from (x) any acts, omissions or failure to perform of any
BR Party, or (y) actions taken by another Person at the direction of, or pursuant to any contract or subcontract entered into with,
any BR Party; provided, however, if such action or omission is (a) Acquiesced to by a TriBridge Party, then the same
shall not be deemed a BR Party Caused Guaranty Loss, but rather shall be deemed a Joint Loss or (b) was undertaken at the direction
of a TriBridge Party or on account of a prior act or omission of a TriBridge Party (unless Acquiesced to by a BR Party), then the
same shall not be deemed a BR Party Caused Guaranty Loss, but rather shall be deemed a TriBridge Party Caused Guaranty Loss.

 

"Business Day"
means a day of the year on which banks are open for business in the State of New York and the State of North Carolina other than
a (a) Saturday, (b) Sunday, (c) legal holiday in the State of New York, (d) legal holiday in the State of North Carolina, or (e)
legal holiday in the State of Georgia.

 

"Guaranty Loss"
or "Guaranty Losses" means (individually and collectively, as appropriate) any and all actual out-of-pocket losses,
damages, costs and expenses to the extent paid by (i) the Bluerock Guarantor to Lender (or its successor or assignee as lender
under the Loan) under Section 2(a) and 2(b) of the Mortgage Guaranty (for avoidance of doubt, recourse repayment obligations shall
not constitute the basis for any Guaranty Loss), or (ii) the Property Owner to Lender (or its successor or assignee as lender under
the Loan) under the Environmental Indemnity (a "Property Owner Guaranty Loss").

 

"Joint Loss"
or "Joint Losses" means (individually and collectively, as appropriate) any Guaranty Losses that are not a BR Party
Caused Guaranty Loss or a TriBridge Party Caused Guaranty Loss. TriBridge shall be responsible for 7.5% of any Joint Loss, and
the Bluerock Guarantor shall be responsible for 92.5% of any Joint Loss.

 

"Loan Documents"
has the meaning given thereto in the Loan Agreement.

 

"Person"
means any natural person, partnership, corporation, limited liability company and any other form of business or legal entity.

 

"Party"
means (individually and collectively, as appropriate) the Bluerock Guarantor and TriBridge.

 

"Property Manager"
means TriBridge Residential Property Management Advisors, LLC, a Georgia limited liability company.

 

    	2

    	 

    

 

"TriBridge Party"
means, any of (a) TriBridge, (b) the TriBridge Member, (c) Property Manager, (d) the TriBridge Principals, (e) any employee, agent,
representative, officer or member of TriBridge, Property Manager or the TriBridge Member, and (f) and any Person that acquires
a membership interest in the Company from a TriBridge Party pursuant to the provisions of the Operating Agreement.

 

"TriBridge Principals"
means Steve Broome, R. Lee Walker and Robert H. West.

 

"TriBridge Party
Caused Guaranty Losses" means any Guaranty Losses that arise as a result of (x) any acts, omissions or failure to perform
of any TriBridge Party, or (y) actions taken by another Person at the direction of, or pursuant to any contract or subcontract
entered into with, any TriBridge Party, provided, however, if an action or omission is (a) Acquiesced to by a BR
Party, then the same shall not be deemed a TriBridge Party Caused Guaranty Loss, but rather shall be deemed a Joint Loss or (b)
was undertaken at the direction of a BR Party or on account of a prior act or omission of a BR Party (unless Acquiesced to by a
TriBridge Party), then the same shall not be deemed a TriBridge Party Caused Guaranty Loss but rather shall be deemed a BR Party
Caused Guaranty Loss.

 

2.             Indemnity.
Subject to Section 3 below, (a) TriBridge hereby indemnifies and holds (i) the Bluerock Guarantor harmless from and against
(x) all TriBridge Party Caused Guaranty Losses and (y) 7.5% of all Joint Losses, and (ii) the Property Owner harmless from and
against any Property Owner Guaranty Loss that is a TriBridge Party Caused Guaranty Loss, and (b) the Bluerock Guarantor hereby
indemnifies and holds the Property Owner harmless from and against any Property Owner Guaranty Loss that is a BR Party Caused Guaranty
Loss.

 

3.             Limitations.
Notwithstanding anything to the contrary contained in this Agreement, the parties acknowledge and agree as follows:

 

(a)          in
no event shall (i) TriBridge have any obligation under this Agreement for any loss, claim, liability, judgment, cost, damage and/or
expense (including, without limitation, reasonable attorneys’ fees, costs and disbursements) incurred by the Bluerock Guarantor
or the Property Owner with respect to a claim under a Mortgage Guaranty that is a BR Party Caused Guaranty Loss; or (ii) the Bluerock
Guarantor have any obligation under this Agreement for any loss, claim, liability, judgment, cost, damage and/or expense (including,
without limitation, reasonable attorneys’ fees, costs and disbursements) incurred by the Property Owner with respect to a
claim under a Mortgage Guaranty that is a TriBridge Party Caused Guaranty Loss;

 

(b)          in
the event that Property Manager ceases to function as the property manager for the Property for any reason and is not replaced
by another property management company affiliated with a Tribridge Party (a “Property Manager Removal Event”),
then TriBridge shall have no further obligations with respect to Joint Losses based on events or circumstances occurring subsequent
to the occurrence of such Property Manager Removal Event and caused by the replacement property management company.

 

(c)          in
the event that any BR Party acquires all of the membership interests in the Company owned on the Effective Date hereof by TriBridge
Member (a "BR Party 100% Acquisition Event"), then TriBridge shall have no further obligations under this Agreement
except with respect to (i) TriBridge Party Caused Guaranty Losses based on events or circumstances occurring prior to the occurrence
of such BR Party 100% Acquisition Event, (ii) Joint Losses based on events or circumstances occurring prior to the occurrence of
such BR Party 100% Acquisition Event, or (iii) attorneys’ fees or defenses costs for which TriBridge is liable under Section
4 below. Following any release of TriBridge from future liability in accordance with this Paragraph 3(c), the Bluerock
Guarantor shall remain fully liable for all obligations owing by the Bluerock Guarantor to the Property Owner under Paragraph
2(b) above (provided, however, that for these purposes and only in this limited circumstance, the Bluerock Guarantor shall
be liable for 100% of any Joint Loss), the same to survive the occurrence of a BR Party 100% Acquisition Event; and

 

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(d)          in
the event that any TriBridge Party acquires all of the membership interests in the Company owned on the Effective Date hereof by
BR Member (a "TriBridge Party 100% Acquisition Event"), then the Bluerock Guarantor shall have no further obligations
under this Agreement (provided that nothing contained herein shall release the Bluerock Guarantor from potential liability to Lender
pursuant to the Mortgage Guaranties executed by the Bluerock Guarantor) except with respect to (i) BR Party Caused Guaranty Losses
based on events or circumstances occurring prior to the occurrence of such TriBridge Party 100% Acquisition Event, (ii) Joint Losses
based on events or circumstances occurring prior to the occurrence of such TriBridge Party 100% Acquisition Event, or (iii) attorneys’
fees or defense costs for which the Bluerock Guarantor is liable under Section 4 below. Following any release of the Bluerock
Guarantor from future liability in accordance with this Paragraph 3(d), TriBridge shall remain fully liable for all obligations
owing by TriBridge to the Bluerock Guarantor under Paragraph 2(a) above (and for all obligations owing to Property Owner
under Paragraph 2(b) above) (provided, however, that for these purposes and only in this limited circumstance, TriBridge
shall be liable for 100% of any Joint Loss), the same to survive the occurrence of a TriBridge Party 100% Acquisition Event.

 

4.            Claim
Mechanics.

 

(a)          If
the Bluerock Guarantor receives a notice of claim from the Lender under any Mortgage Guaranty or Property Owner receives a notice
of claim under the Environmental Indemnity (for purposes of this Paragraph 4, the Bluerock Guarantor or Property Owner are
each a "Claiming Guarantor") (any such notice, a "Lender Claim Notice") and believes that it
is entitled to indemnification under this Agreement, then the Claiming Guarantor:

 

(i)          shall
deliver a notice (the "Claim Notice") to the other Parties (and to all Parties if Property Owner is the Claiming
Guarantor) (each a "Recipient Guarantor" in such instance) stating the amount claimed (the "Claimed Amount"),
together with (x) a description of the basis for its belief that the Recipient Guarantors are liable for all or a portion of such
amounts and (y) a copy of the Lender Claim Notice;

 

(ii)         shall
take no action (such as admission of liability or payment to Lender of amounts in respect of the claim under any Mortgage Guaranty)
that would prejudice the Recipient Guarantors in defense of any such claim; provided, however, that (x) the Claiming Guarantor
shall be permitted to disclose information and/or make payments pursuant to the order of any court of competent jurisdiction (a
"Court Order") requiring such disclosure and/or payment, and (y) the Claiming Guarantor shall promptly notify
the Recipient Guarantors of such Court Order to permit the Recipient Guarantors to seek a protective order or to take other appropriate
action (provided that failure to so promptly notify Recipient Guarantors shall not serve to relieve the Recipient Guarantors from
their obligations under this Agreement). The Claiming Guarantor shall, if requested by the Recipient Guarantors, cooperate (at
no cost or expense to the Claiming Guarantor) in the Recipient Guarantors’ efforts to obtain an order barring such disclosure
and/or payment;

 

(iii)        agrees
that if the Recipient Guarantor(s) agrees that the Claim Notice relates to a Guaranty Loss caused by the Recipient Guarantor(s),
then the Recipient Guarantors shall have the exclusive right to conduct the defense to any claim, demand or suit relating to such
Lender Claim Notice; and

 

    	4

    	 

    

 

(iv)        agrees
that if the Recipient Guarantor(s) agrees that the Claim Notice relates to a Guaranty Loss that is a Joint Loss, then the Bluerock
Guarantor shall conduct the defense to any claim, demand or suit relating to such Lender Claim Notice, and TriBridge shall pay
7.5% and the Bluerock Guarantor shall pay 92.5% of the actual and reasonable attorneys’ fees and other actual and reasonable
costs actually incurred in connection with such defense; provided, however, if the parties under such circumstance cannot agree
on joint legal counsel or that the Claim Notice relates to a Joint Loss, then each of the Claiming Guarantors shall be entitled
to conduct its own defense and the provisions of Paragraph 4(c)(i) through (iv) shall apply.

 

(b)       On
or before the date which is ten (10) days after receipt of the Claim Notice, each Recipient Guarantor shall either:

 

(i)          pay
the Claimed Amount to the Claiming Guarantor or directly to Lender;

 

(ii)         deliver
notice to the Claiming Guarantor that such Recipient Guarantor agrees that it is liable for the Claimed Amount and that it is electing
to defend against the Lender Claim Notice; or

 

(iii)        deliver
a notice to the Claiming Guarantor disputing that such Recipient Guarantor is liable for any portion of the Claimed Amount (it
being acknowledged that any Recipient Guarantor’s failure to respond shall be deemed delivery of a notice under this subparagraph
(iii) on the last day of such ten (10) day period).

 

(c)        Each
party to this Agreement agrees that, notwithstanding any provision herein to the contrary, if any Recipient Guarantor proceeds
under the provisions of Paragraph 4(a)(iii) or Paragraph 4(b)(ii) above but such Recipient Guarantor thereafter fails
to diligently defend against any such Lender Claim Notice, then after notice of such failure by the Claiming Guarantor to such
Recipient Guarantor and the failure of such Recipient Guarantor to diligently commence such defense within ten (10) days of such
notice (it being agreed that notices to Lender disputing the Lender Claim Notice shall constitute commencement of defense against
such Lender Claim Notice and in such event the Recipient Guarantor shall not be required to commence litigation, arbitration or
take other actions to be deemed to be defending against any such Lender Claim Notice):

 

(i)          the
Claiming Guarantor shall have the right to conduct the defense to the applicable Lender Claim Notice;

 

(ii)         the
Claiming Guarantor shall not be required to obtain the consent of such Recipient Guarantor to any settlement or resolution of any
matters arising from the applicable Lender Claim Notice (including, without limitation, any proposed payment to Lender);

 

(iii)        if
it is ultimately determined that such Lender Claim Notice relates to a TriBridge Party Caused Guaranty Loss or a BR Party Caused
Guaranty Loss, then the applicable Recipient Guarantor(s) shall be required to pay all actual and reasonable attorneys’ fees
and other reasonable costs actually incurred by the Claiming Guarantor in connection with such defense; and

 

(iv)        if
it is ultimately determined that such Lender Claim Notice relates to a Joint Loss, TriBridge shall be required to pay 7.5% and
the Bluerock Guarantor shall be required to pay 92.5% of the actual and reasonable attorneys’ fees and other reasonable costs
actually incurred by the Claiming Guarantor in connection with such defense.

 

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(d)          For
the avoidance of doubt, nothing contained in this Section 4 shall limit the Bluerock Guarantor or the Property Owner from
delivering more than one Claim Notice as to any particular Lender Claim Notice.

 

5.            WAIVER
OF JURY TRIAL. THE PARTIES HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT
TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION HEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY
BY THE PARTIES, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY
WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE
OF THIS WAIVER BY EACH OTHER PARTY, AS APPLICABLE.

 

6.             VENUE
AND JURISDICTION. THE PARTIES HEREBY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF
NEW YORK, STATE OF NEW YORK AND IRREVOCABLY AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING
OUT OF OR RELATING TO THIS AGREEMENT SHALL BE LITIGATED IN SUCH COURTS. THE PARTIES ACCEPT FOR THEMSELVES AND IN CONNECTION WITH
THEIR PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS AND WAIVE ANY DEFENSE OF FORUM NON CONVENIENS,
AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO SUCH VENUE AS BEING AN INCONVENIENT
FORUM. 

 

7.             Entire
Agreement; Writing Required. This Agreement constitutes the entire agreement between the Parties with respect to the matters
referred to herein, and no modification or waiver of any of the terms hereof shall be effective unless in writing, signed by the
Party to be charged with such modification or waiver.

 

8.             Governing
Law. This Agreement shall be governed by the laws of the State of North Carolina, without regard for conflicts of laws principles
or otherwise.

 

9.             Severability.
Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement.

 

10.             Notices.
Any notice or request required or permitted to be given hereunder (each, a "Notice" or a "notice")
shall be in writing and shall be (as elected by the Party giving such notice) (i) transmitted by certified or registered mail,
return receipt requested, postage prepaid, (ii) transmitted by personal delivery, or (iii) transmitted by nationally recognized
overnight courier service. Except as otherwise specified herein, all notices and other communications shall be deemed to have been
duly given (a) five (5) Business Days after the date of posting if transmitted by certified or registered mail, (b) the date of
delivery if transmitted by personal delivery or (c) the first Business Day after the date of posting if delivered by nationally-recognized
overnight courier service. Each Party may change its address for purposes hereof by notice given to the other Parties. Notices
hereunder shall be directed:

 

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To TriBridge, at:

 

c/o TriBridge Residential, LLC

1575 Northside Drive

Building 100, Suite 200

Atlanta, Georgia 30318

Attn: Robert H. West

 

With a copy to:

 

Nelson Mullins

Atlantic Station

201 17th St. NW, Suite
1700

Atlanta, Georgia 30363

Attn: Eric Wilensky, Esq.

 

To the Bluerock Guarantor:

 

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

712 Fifth Avenue, 9th Floor

New York, New York 10019

Attn: R. Ramin Kamfar

 

With a copy to:

 

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

712 Fifth Avenue, 9th Floor

New York, New York 10019

Attn: Michael L. Konig, Esq.

 

11.           Counterparts.
This Agreement may be executed in counterparts (including facsimile counterparts), each of which shall be deemed an original and
all of which taken together shall constitute the same instrument. All signatories hereto intend (as evidenced by their execution
hereof) that a facsimile copy and signature shall have the same effect as an original.

 

12.           No
Third Party Beneficiary; Recitals Incorporated. This Agreement does not create, and shall not be construed as creating, any
rights or claims enforceable by any person or entity other than the Parties hereto, it being the intention of the Parties hereto
that no one shall be deemed to be a third party beneficiary of this Agreement. The recitals set forth above are incorporated into
this Agreement as if fully set forth herein. Notwithstanding the foregoing to the contrary, the Parties acknowledge and agree that
the Property Owner, so long as any BR Party or any TriBridge Party is the owner of an interest (direct or indirect) in Property
Owner, shall be a third-party beneficiary of this Agreement and be entitled to enforce the rights afforded to the Property Owner
hereunder (including, without limitation, the indemnification provided in Section 2 above).

 

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13.           Prevailing
Party Fees. To the fullest extent permitted by law, in the event of any litigation arising out of this Agreement, including,
but not limited to, any claim for amounts due under Section 4, the prevailing party shall be entitled to receive from the
losing party an amount equal to the prevailing party’s costs incurred in such litigation, including, without limitation,
the prevailing party’s attorneys’ fees, costs and disbursements. If TriBridge becomes subject to any bankruptcy proceeding,
other relief from creditors, receivership or similar proceedings (whether same are voluntary or involuntary), then the Bluerock
Guarantor shall be entitled to receive reimbursement for all costs and expenses (including, without limitation, actual and reasonable
attorneys’ fees, costs and disbursements) incurred by it in responding to or participating in such proceeding from TriBridge
subject to such bankruptcy proceeding. The provisions of this Section 13 shall survive the termination of this Agreement.

 

14.           Further
Assurances. Each party hereto agrees that it will without further consideration execute and deliver such other documents and
take such other action, subsequent to the Effective Date as may be reasonably requested by another party hereto to consummate more
effectively the purposes or subject matter of this Agreement.

 

15.           Representation.
TriBridge hereby represents and warrants that TriBridge is solvent and is the same entity that provides recourse and non-recourse
support for agency debt and construction loans obtained by TriBridge or its affiliates.

 

[SIGNATURES ON FOLLOWING PAGES]

 

    	8

    	 

    

 

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

 

	 	BLUEROCK GUARANTOR:
	 	 
	 	BLUEROCK RESIDENTIAL GROWTH REIT, INC.,
	 	a Maryland corporation
	 	 	 
	 	By:	/s/ Michael L. Konig
	 	Name:	Michael L. Konig 
	 	Title:	COO and General Counsel

 

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	 	TRIBRIDGE:
	 	 
	 	TRIBRIDGE RESIDENTIAL, LLC,
	 	a Georgia limited liability company
	 	 	 
	 	By:	/s/ Lee Walker
	 	Name:	Lee Walker 
	 	Title:	Authorized Signatory

 

    	10Exhibit 10.6

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT
("Agreement") is made as of the 20th day of May, 2015, by and between BR-TBR WHETSTONE OWNER,
LLC, a Delaware limited liability company ("Borrower") and KEYBANK NATIONAL ASSOCIATION, a national
banking association ("Lender").

 

RECITALS

 

WHEREAS, Borrower has
applied to Lender for a loan in the aggregate principal amount of the Loan Amount (as defined below) (the "Loan");
and

 

WHEREAS, the Loan shall
be advanced substantially concurrently with the recordation of the Deed of Trust (defined below), which covers certain real property
which may be known as Whetstone Apartments located at 501 Willard Street, Durham, Durham County, North Carolina (the "Land").
The Land is more particularly described on Exhibit A attached hereto, which Land, together with the Improvements
thereon, are sometimes collectively referred to herein as the "Property"; and

 

WHEREAS, the improvements
located on the Land consist of a 204-unit multifamily property (the "Improvements") which is currently
subject to certain lease agreements (such existing leases, and all future leases, being collectively referred to herein as the
"Leases"); and

 

WHEREAS, Lender has
agreed to make the Loan to Borrower and to document, evidence and secure the Loan on the condition that this Agreement be executed
and delivered for the purpose of governing and coordinating the Loan and to assure the application of the proceeds of the Loan
to the acquisition of the Property and payment of related closing expenses in accordance with the approved settlement statement
(the "Closing Statement") attached hereto and made a part hereof as Exhibit B.

 

NOW, THEREFORE, BORROWER
AND LENDER HEREBY AGREE AS FOLLOWS:

 

1.          Certain
Definitions:  In addition to the definitions in the Recitals, as used herein the following definitions shall
have the following meanings:

 

"Affiliate"
means, with respect to any Person, (a) any other Person which directly or indirectly through one or more intermediaries controls,
or is controlled by, or is under common control with, (i) such Person or (ii) any general partner, manager or member
of such Person; (b) any other Person 10% or more of the equity interest of which is held beneficially or of record by (i) such
Person or (ii) any general partner, manager or member of such Person, and (c) any general partner, limited partner or
member of (i) such Person or (ii) any general partner or member of such Person. As used in the previous sentence, "control"
means the possession, directly or indirectly, of the power to cause the direction of the management of a Person, whether through
voting securities, by contract, family relationship or otherwise.

 

"Appraisal"
means the current appraisal of the Property delivered to and approved by Lender prior to the Closing Date.

 

    	 

    	 

    

 

"Assignment
of Rents" means the Assignment of Leases and Rents of even date herewith executed by Borrower in favor of Lender,
as amended from time to time.

 

"Borrower
Manager" means BR-TBR Whetstone Venture, LLC, a Delaware limited liability company.

 

"Closing
Date" means the date of this Agreement.

 

"Closing
Statement" shall have the meaning set forth in the Recitals.

 

"Collateral"
means the collateral provided to Lender pursuant to the Security Documents.

 

"Debt Service
Coverage Ratio" means with respect to a particular period, the ratio of (a) the Pro Forma NOI to (b) the Total
Annual Debt Service.

 

"Deed of
Trust" means that certain Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing made by Borrower
to Christopher T. Neil, as Trustee for the benefit of Lender as beneficiary, dated as of even date, as may be amended from time
to time.

 

"Default"
means the occurrence of a condition or state of facts which, but for the giving of notice or the expiration of any applicable grace
or cure period, would constitute an Event of Default.

 

"Dispute"
means any controversy, claim or dispute between or among the parties to the Loan Documents, including any such controversy, claim
or dispute arising out of or relating to (a) this Agreement, (b) any other Loan Document, (c) any related agreements or instruments,
or (d) the transaction contemplated herein or therein (including any claim based on or arising from an alleged personal injury
or business tort).

 

"Environmental
Indemnity Agreement" means the Environmental and Hazardous Substances Indemnity Agreement of even date herewith (as
may be amended from time to time) by the Borrower and Guarantor in favor of the Lender.

 

"Equity
Interests" means the membership interests in the Borrower.

 

"Equity
Sale" has the meaning set forth in Section 6.4.

 

"Event of
Default" has the meaning set forth in Section 8.1.

 

"Guarantor"
means Bluerock Residential Growth REIT Inc., a Maryland corporation, together with its respective successors and/or assigns.

 

"Guaranty"
means the Guaranty Agreement of even date herewith (as may be amended from time to time) executed by Guarantor in favor of Lender.

 

"Improvements"
has the meaning set forth in the Recitals.

 

    	- 2 -

    	 

    

 

"Indebtedness"
means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits (other than
security deposits of tenants held in the ordinary course of business) or advances of any kind, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, including mandatorily redeemable preferred stock (other than,
in the case of Borrower, any preferred equity interest held by Guarantor), (c) all obligations of such Person upon which interest
charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements
relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price
of property or services (excluding current accounts payable incurred in the ordinary course of business), (f) all Indebtedness
of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (g) all
guarantees (excluding non-recourse carve-out guaranties) by such Person of Indebtedness of others, (h) all capital lease obligations
of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of
credit and letters of guaranty, (j) all obligations, contingent or otherwise, of such Person in respect of bankers' acceptances,
(k) all obligations contingent or otherwise, of such Person with respect to any interest rate protection agreements (calculated
on a mark-to-market basis as of the reporting date), and (l) payments received in consideration of sale of an ownership interest
in Borrower when the interest so sold is determined, and the date of delivery is, more than one (1) month after receipt of such
payment and only to the extent that the obligation to deliver such interest is not payable solely in such interest of such Person.
The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person
is a general partner) to the extent such Person is liable therefore as a result of such Person's ownership interest in or other
relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.
Indebtedness shall be calculated on a consolidated basis in accordance with generally accepted accounting principles, consistently
applied.

 

"Interest
Rate Agreement" has the meaning set forth in the Deed of Trust.

 

"Land"
has the meaning set forth in the Recitals.

 

"Leases"
has the meaning set forth in the Recitals.

 

"Loan Amount"
means the principal amount equal to the lesser of (a) Twenty-Five Million One Hundred Forty-Seven Thousand Five Hundred and No/100
Dollars ($25,147,500.00), (b) seventy percent (70%) of the sum of the purchase price of the Property and Borrower's broker
fee relating thereto, (c) an amount which would result in a Loan to value ratio of no greater than the lesser of (i) seventy
percent (70%) of the "as completed" appraised value of the Property or (ii) sixty-five percent (65%) of the "as
stabilized" appraised value of the Property, in each case pursuant to the Appraisal approved by Lender prior to the date hereof,
or (d) a principal amount which would provide a Debt Service Coverage Ratio of no less than 1.25 to 1.00.

 

"Loan Documents"
means this Agreement, the Note, the Guaranty, the Security Documents and all other documents executed in connection with the Loan.

 

    	- 3 -

    	 

    

 

"Management
Agreement" means that certain property management agreement dated as of the date hereof between Borrower and
Property Manager.

 

"New Parking
Construction" means the construction of an additional level to the Property's existing parking deck, which addition
is expected to increase the parking stalls by approximately 65 stalls, commence in late 2015/early 2016, take approximately 3 months
to complete once commenced and cost approximately $1,300,000, all as more fully described in Section 6.1(s) below.

 

"Note"
means that certain Promissory Note of even date herewith (as may be amended, restated, modified or supplemented from time to time)
in the original principal amount of $25,147,500.00 executed by Borrower in favor of Lender.

 

"Obligations"
means all present and future debts, obligations and liabilities of Borrower to Lender arising pursuant to, or on account of, the
provisions of this Agreement, the Note or any of the other Loan Documents as applicable, including the obligations: (a) to pay
all principal, interest, late charges, prepayment premiums (if any) and other amounts due at any time under the Note; (b) to pay
all expenses, indemnification payments, fees and other amounts due at any time under the Deed of Trust or any of the other Loan
Documents, together with interest thereon as provided in the Deed of Trust or such Loan Document; and (c) to perform, observe and
comply with all of the terms, covenants and conditions, expressed or implied, which Borrower is required to perform, observe or
comply with pursuant to the terms of the Deed of Trust or any of the other Loan Documents.

 

"Permitted
Encumbrances" has the meaning set forth in Section 7(c).

 

"Permitted
Sale" means a sale of the Property or the Equity Interests which is in accordance with Section 6.3 or 6.4, as
applicable.

 

"Permitted
Sale Date" means the date of the closing of a Permitted Sale.

 

"Permitted
Transfers" has the meaning set forth in Section 6.1(c).

 

"Person"
means any entity, whether an individual, trustee, corporation, partnership, limited liability company, trust, unincorporated organization,
governmental agency or otherwise.

 

"Pro Forma
NOI" means the pro forma stabilized net operating income for the Property based upon the Appraisal, less a $250 per
residential unit capital reserve.

 

"Property"
has the meaning set forth in the Recitals.

 

"Property
Manager" shall mean TriBridge Residential Property Management Advisors, LLC.

 

"Security
Documents" means the Deed of Trust, the Assignment of Leases and Rents, and the
Environmental Indemnity Agreement, each of which documents is dated as of even date herewith and may be amended from time to time,
and all other documents securing the Loan, whether now or hereafter existing.

 

    	- 4 -

    	 

    

 

"Total Annual
Debt Service" means the aggregate of debt service payments for a 12 month period on the stated principal amount of
the Loan, using an interest rate equal to the greater of (a) 4.25% per annum or (b) the 10-year US Treasury rate plus
2.00% (and assuming monthly payments of interest and principal based on an assumed amortization period of 30 years).

 

"Transfer"
shall have the meaning set forth in Section 6.1(b).

 

Capitalized terms used but not otherwise
defined herein shall have the meanings used and defined in the Note.

 

2.            The
Loan. Lender agrees to lend to Borrower sums in the aggregate not in excess of the Loan Amount, all subject to the terms
and conditions herein set forth and in accordance with the Closing Statement. The advance of Loan proceeds shall be evidenced by
and owing under the Note.

 

3.            Security.
As security for the repayment of the Note, the Borrower and Guarantor, as applicable, shall execute, acknowledge and deliver to
Lender the Guaranty, the Deed of Trust and the other Security Documents. Subject to the provisions
therein, the Security Documents shall constitute a first priority lien against the Property and the other Collateral described
therein and shall secure the obligations described therein. The Note and all other Loan Documents shall be in form and substance
satisfactory to Lender, and Borrower hereby agrees to pay all necessary filing and recording fees required in connection therewith.

 

4.            Loan
Advance.

 

4.1          Not
Assignable. The proceeds of the Loan shall not be assignable by Borrower nor subject to the process of any court upon legal
action by or against Borrower or by or against anyone claiming under or through it; provided, however, that nothing herein contained
shall be considered as in any way modifying, affecting or subordinating the obligations heretofore given or to be given by Borrower
as security for the Loan and the same shall be and remain in full force and effect.

 

4.2          Purpose.
The proceeds of the Loan will be advanced by Lender (subject to the conditions contained in the Loan Agreement and other Loan Documents)
for the acquisition of the Property and payment of related closing expenses in a single disbursement, through escrow, and there
will be no subsequent disbursement.

 

4.3          Liability
of Lender. Lender shall in no event be responsible or liable to any Person other than Borrower for the disbursement of
or failure to disburse the Loan proceeds or any part thereof.

 

5.            Representations
and Warranties of Borrower. Borrower represents and warrants that:

 

    	- 5 -

    	 

    

 

5.1          Borrower
is a limited liability company duly organized and validly existing under the laws of the State of Delaware, is qualified to do
business and is in good standing in the State of North Carolina, and has the power and authority to consummate the transactions
contemplated hereby, and has taken all necessary action to purchase and operate the Property and to authorize the execution, delivery
and performance of this Agreement, the Note, the Deed of Trust and the other Loan Documents to be executed, delivered and performed
by Borrower.

 

5.2          Exhibit C,
attached to and made a part of this Agreement is, to the best of Borrower's knowledge, a complete and correct rent roll for the
Property. To the best of Borrower's knowledge the Leases are currently in full force and effect with no existing default on the
part of the landlord thereunder and no condition existing with respect thereto which, with the giving of notice or the passage
of time, could constitute such a default. To Borrower's knowledge, there is no existing material default by any of the tenants
under any of the Leases and no condition existing with respect thereto which, with the giving of notice or the passage of time,
could constitute such a default, except as otherwise indicated on Exhibit C.

 

5.3          This
Agreement and each Loan Document to which Borrower is a party is a legally valid and binding obligation of Borrower, enforceable
against Borrower in accordance with their respective terms, subject to bankruptcy, insolvency and similar laws affecting rights
and remedies of creditors and general principles of equity.

 

5.4          Borrower
has no property other than the Property and the other Collateral; and Borrower has no debts or liabilities other than the Loan
and trade payables incurred in connection with the operation of the Property.

 

5.5          Borrower,
both before and after giving effect to the Loan, is not insolvent, is not engaged or about to engage in a business or transaction
for which the property of Borrower is an unreasonably small capital, and does not intend to incur or believe that it will incur
debts that will be beyond its ability to pay as such debts mature.

 

5.6          The
Management Agreement is in full force and effect and valid and enforceable against the Property Manager, and there is no default,
breach or violation existing under the Management Agreement by any party thereto and no event (other than payments due but not
yet delinquent) which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute
a default, breach or violation by any party under the Management Agreement.

 

6.             Covenants
of Borrower.

 

6.1           Operational
Covenants. Borrower hereby covenants with Lender as follows:

 

(a)            Borrower
will not own or lease any property other than the Property (as defined herein and as defined in the Deed of Trust).

 

(b)            Except
as permitted herein or in the Loan Documents, Borrower will not sell, transfer, lease, convey, assign, pledge, lien or encumber
(each, a "Transfer") the Property, in each case in any way without the prior written consent of Lender;
nor will it consent to the prohibition by any lender or any other person or entity of any encumbrance on the Property, other than
the Loan and Permitted Encumbrances; notwithstanding anything in the Loan Documents to the contrary, Borrower shall be authorized
to enter into commercially reasonable leases in the ordinary course of business, as well as any concession agreements, amendments,
and modifications related thereto, without the need to obtain the Lender's consent.

 

    	- 6 -

    	 

    

 

(c)          There
shall be no Transfer of any of the Equity Interests (whether legal, beneficial or equitable, whether voluntary or involuntary,
whether direct or indirect) in Borrower nor will Borrower consent to any such Transfer, without the prior written consent of Lender,
except that the following transfers (the "Permitted Transfers") shall be permitted:

 

(i)          a
Transfer of the membership interests in BR-TBR Whetstone Venture, LLC ("Venture"), the sole member of Borrower
(A) by TriBridge Co-Invest 27, LLC (the "TriBridge Member") to BR Whetstone Member, LLC (the "BR
Member") or (B) by BR Member to TriBridge Member; provided, that any transfer pursuant to clause (B)
shall be subject to the prior written approval of Lender in Lender’s sole discretion;

 

(ii)         as
long as following any such Transfer either Bluerock Real Estate, LLC ("BRRE") or Bluerock Residential Growth
REIT, Inc. ("BR REIT") exercise at least the same degree of control, directly or indirectly, over Borrower
as exists as of May 20, 2015, any Transfer of direct or indirect ownership interests in TriBridge Member or BR Member; provided,
that any transfer of direct or indirect ownership interests in TriBridge Member (other than (A) transfers to BR Member or
an Affiliate of BR Member, (B) transfers among any of TBR 2015, LLC, TriBridge Equity Partners II, LLC and TriBridge Investments,
LLC), or (C) transfers among any of the existing members of TBR 2015, LLC, TriBridge Equity Partners II, LLC and TriBridge
Investments, LLC as of the date hereof) shall be subject to the prior written approval of Lender in Lender's sole discretion; or

 

(iii)        a
transfer of direct or indirect interests in BR Member in conjunction with a sale of a majority (or all) of the outstanding shares
(or partnership interests) of BR REIT or Bluerock Residential Holdings, L.P. (the "BR Operating Partnership"),
its operating partnership, or a merger, combination or "roll-up" of BR REIT (or BR Operating Partnership) into a partnership,
limited liability company or other entity or participation in an UPREIT, DOWNREIT or similar transaction with a real estate investment
trust or other entity (any of the foregoing hereinafter referred to as a "REIT Sale"), where the succeeding
entity has a net worth and liquidity no less than that of BR REIT or Bluerock Operating Partnership, as applicable.

 

(d)           The
funds and other assets of Borrower shall not be commingled with those of any Affiliate or any other Person.

 

(e)           Borrower
will not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than the Loan,
obligations under any Interest Rate Agreements provided by Lender and advances or trade payables incurred in the ordinary course
of business of operating the Property.

 

    	- 7 -

    	 

    

 

(f)            Any
contributions to Borrower from its owners, Affiliates, officers, directors, and other related parties shall be in the form of equity
and not in the form of debt unless any such debt has been approved in advance in writing by Lender and is fully subordinated to
the Loan.

 

(g)           Borrower
will permit Lender to enter upon the Property at all reasonable times upon advance notice (subject to the rights of tenants) to
inspect the Property and Improvements.

 

(h)          Borrower
will receive and apply the Loan proceeds as set forth in Section 4.2.

 

(i)           Borrower
will keep adequate records and books of account with respect to the Property, including all finances and accounts pertaining thereto,
and make the same available to representatives of Lender at such reasonable times as may be requested by Lender.

 

(j)           Other
than routine work done in the ordinary course of business pursuant to reasonable business practices and the New Parking Construction,
Borrower will not undertake any construction, renovation, alteration or expansion of the Improvements without Lender's prior written
approval.

 

(k)           Borrower
shall provide for the competent and responsible management and operation of the Property; Borrower will not enter into any new
property management, construction management, leasing (other than the Leases), brokerage or any other similar agreement affecting
the Property without Lender's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed,
and all such agreements shall, in any event, be subject to the semi-annual review and approval of Lender, which shall not be unreasonably
withheld, conditioned, or delayed. Any such agreement which is entered into with an Affiliate of Borrower shall (i) be specifically
disclosed to and approved by Lender, (ii) contain a specific waiver by such vendor of any available lien rights otherwise
available, and (iii) be subordinate to the Loan Documents.

 

(l)            Other
than the shares held in Guarantor, none of the Equity Interests shall be dealt with or traded on any securities exchanges or in
any public securities markets.

 

(m)          Borrower
shall maintain all of its checking, depository, operating, cash management and other bank accounts with Lender except that prior
to the occurrence of an Event of Default such accounts may be maintained at Wells Fargo Bank, National Association.

 

(n)           Borrower
shall first apply all income from Leases, and all other income derived from the Property or from any other source, to pay the Property
expenses, including all amounts then required to be paid under the Loan Documents, before using or applying such income for any
other purpose. If such expenses have been paid and so long as no Event of Default exists or any Default which with the passage
of time or the giving of notice or both would become an Event of Default, Borrower may make distributions of any income to any
of its members.

 

(o)           Borrower
shall restore or repair promptly, in a good and workmanlike manner, any damaged part of the Property to the equivalent of its original
condition, or such other condition as Lender may approve in writing, whether or not insurance proceeds or condemnation awards are
available to cover any cost of such restoration or repair.

 

    	- 8 -

    	 

    

 

(p)           Borrower
shall utilize Lender (i) to place any permanent financing of the Property through Fannie Mae, Freddie Mac, FHA or a life insurance
company, or (ii) to provide any commercial mortgage backed securities loan for the Property. The terms of such permanent financing
shall be consistent with then prevailing terms. The placement fee on permanent financing shall be the greater of 50 basis points
on such permanent loan amount or the minimum fee permitted by the agency providing such permanent loan. If Borrower does not utilize
Lender for the placement or provision of such permanent financing, Borrower shall be required to pay an exit fee equal to $502,950.00
(2% of the Loan Amount), which fee shall be due and payable at the earlier of the Maturity Date (as defined in the Note) or the
repayment of the Note (whether voluntarily or after an Event of Default).

 

(q)           Subject
to Section 6.1(s) below, Borrower will (i) keep and maintain the Property in good working order and condition, ordinary
wear and tear excepted, and (ii) maintain, with financially sound and reputable insurance companies, insurance in such amounts
and against such risks as are approved by Lender with Lender named as mortgagee, loss payee and additional insured. Such insurance
coverages shall include:

 

(i)          An
all-risk policy of permanent property insurance insuring the Property against all risks of any kind or character except those permitted
by Lender in writing to be excluded from coverage thereunder.

 

(ii)         A
boiler and machinery insurance policy covering loss or damage to all portions of the Property comprised of air-conditioning and
heating systems, other pressure vessels, machinery, boilers or high pressure piping.

 

(iii)        An
all-risk policy of insurance covering loss of earnings and/or rents from the Property in the event that the Property is not available
for use or occupancy due to casualty, damage or destruction required to be covered by the policies of insurance described in (i)
and (ii) above.

 

(iv)        Commercial
general liability, auto liability, umbrella or excess liability and worker's compensation insurance against claims for bodily injury,
death or property damage occurring on, in or about the Property in an amount and containing terms acceptable to the Lender.

 

(v)         Such
other insurance against other insurable hazards, risks or casualties which at the time are commonly insured against in the case
of owners and premises similarly situated, due regard being given to the financial condition of Borrower, the height and type of
the Property, its construction, location, use and occupancy.

 

    	- 9 -

    	 

    

 

(vi)        All
required insurance will be written on forms acceptable to Lender and by companies having a Best's Insurance Guide Rating of not
less than A or A+ and which are otherwise acceptable to the Lender, and such insurance (other than third party liability insurance)
shall be written or endorsed so that all losses are payable to the Lender. The original policies evidencing such insurance shall
be delivered by Borrower to Lender and held by Lender, unless Lender expressly consents to accept insurance certificates instead.
Each such policy shall expressly prohibit cancellation or modification of insurance without thirty (30) days' written notice to
Lender. Borrower agrees to furnish (only to the extent available in the event such premiums are paid directly by tenants) due proof
of payment of the premiums for all such insurance to Lender promptly after each such payment is made and in any case at least fifteen
(15) days before payment becomes delinquent.

 

All insurance premiums
shall be paid in advance, and if requested by Lender, it shall be provided with evidence of such prepayment of insurance premium
prior to notice of cancellation. In each instance where Lender's approval is required as set forth above, Lender shall use reasonable
efforts to give or deny such approval within ten (10) business days of Lender's receipt of written request therefor, and if
not given within such ten (10) business day period, shall be deemed disapproved. Lender has approved the insurance as provided
in the certificates presented prior to the date hereof.

 

(r)            Borrower
agrees that Lender may order an updated appraisal for the Property at Borrower's expense at any time upon the occurrence and during
the continuance of an Event of Default.

 

(s)           Borrower
shall inform Lender in writing if it is going to do the New Parking Construction work and provide Lender a description of the work
to be done, the budgeted cost, the anticipated start and completion dates, and confirmation that the cost of the work is being
paid by Borrower through equity (and not Indebtedness). Lender shall have approval rights with respect to this New Parking Construction,
which approval shall not be unreasonably withheld, delayed or conditioned. The New Parking Construction work should not interfere
with the normal operation and use of the Property except for certain temporary changes affecting the parking garage during the
New Parking Construction. Appropriate construction permits should be obtained, and the New Parking Construction work done in accordance
with applicable law. The cost of the New Parking Construction work should be paid by additional capital contributions, not by Indebtedness.
Subject to Section 8.1(e) below, the Property should be kept free of mechanic liens or any other liens. Borrower shall keep
Lender informed from time to time regarding the progress of the New Parking Construction work and provide a copy of the certificate
of occupancy for it when the work has been completed.

 

6.2          Reporting
Covenants. Borrower covenants and agrees to submit to Lender the following reports, in form and substance reasonably satisfactory
to Lender:

 

(a)           Annual
Borrower Statements. Within one hundred twenty (120) days following the end of each fiscal year of Borrower, financial statements
(consisting of a balance sheet, income statement and statement of cash flow) internally prepared by Borrower and certified by Borrower
to be true, accurate and complete and to fairly represent in all material respects the financial condition of Borrower as of the
dates thereof, together with investor reporting and other detail and supporting data and schedules as Lender may from time to time
reasonably request.

 

    	- 10 -

    	 

    

 

(b)          Annual
Guarantor Statements. Within one hundred twenty (120) days of the end of each fiscal year of Guarantor, audited financial statements
of Guarantor prepared in accordance with generally accepted accounting principles, or other recognized method of accounting reasonably
acceptable to Lender, consistently applied, in form and manner of presentation reasonably acceptable to Lender consistent with
the financial statements previously delivered to Lender by an independent, certified public accountant reasonably acceptable to
Lender, such financial statements to be unqualified, true, accurate and complete and fairly represent in all material respects
the financial condition of Guarantor as of the dates thereof and to include and to be supplemented by investor reporting and other
detail and supporting data and schedules as Lender may from time to time reasonably request.

 

(c)           Quarterly
Statements and Compliance Certificates. Within sixty (60) days following the end of each fiscal quarter, quarterly financial
statements (consisting of a balance sheet, income statement and statement of cash flow) of Borrower and Guarantor showing the results
of operations for the prior quarter, on a year-to-date basis and on a trailing twelve month basis for the prior quarter and a covenant
compliance certificate of Borrower and Guarantor substantially in the form of Exhibit D attached hereto.

 

(d)           Monthly
Rent Roll. A monthly rent roll, to be submitted for each calendar month on or before the thirtieth (30th) day after
the end of each calendar month for the Property.

 

(e)           Monthly
Property Operating Statements. A monthly operating statement, to be submitted for each calendar month on or before the thirtieth
(30th) day after the end of each calendar month for the Property.

 

(f)            Monthly
Aging Report. A monthly accounts receivable aging report, to be submitted for each calendar month on or before the thirtieth
(30th) day after the end of each calendar month for the Property.

 

(g)           Refinancing.
Borrower shall keep Lender updated from time to time regarding Borrower's efforts to refinance the Loan.

 

(h)          Additional
Reports. To the extent not identified above, Borrower shall submit to Lender such other additional financial information as
Lender may reasonably request from time to time; provided, however, Lender shall not be permitted to require that
any such additional financial information be audited.

 

6.3          Covenants
Regarding Sale of the Property. Notwithstanding anything to the contrary contained in this Agreement or in any other Loan
Documents, Borrower may not sell or otherwise dispose of the Property or any portion thereof or interest therein, or enter into
a contract to sell or dispose of the Property, or any portion thereof or interest therein (collectively referred to as a "Sale"),
unless: (a) the Sale or disposition involves all of the Property; (b) Borrower gives Lender at least 10 days' advance
written notice of the Sale (the "Sale Notice"); (c) there exists no Event of Default or event that,
with the giving of notice or lapse of time, could become an Event of Default; and (d) the Loan and any Interest Rate Agreement
are repaid in full at the closing of such Sale.

 

    	- 11 -

    	 

    

 

6.4          Covenants
Regarding Sale of the Equity Interests. Notwithstanding anything to the contrary contained in this Agreement or in any
other Loan Documents, except as permitted under Section 6.1(c), the owners of Equity Interests may not sell or otherwise dispose
of the Equity Interests or any portion thereof or interest therein, or enter into a contract to sell or dispose of the Equity Interests,
or any portion thereof or interest therein (collectively referred to as an "Equity Sale") without the prior
written consent of Lender in its sole discretion.

 

6.5          Leasing.
By the end of the six (6) month period following the Closing Date, Leases shall have been executed for at least sixty percent (60%)
of the Property.

 

7.            Conditions
Precedent to Funding. The funding of the Loan is subject to Lender's determination of compliance with the following conditions
precedent:

 

(a)          The
Note, the Deed of Trust, and the other Loan Documents shall have been properly executed and delivered to Lender, the Deed of Trust
and any Loan Documents to be recorded shall be acknowledged and delivered for recording, and shall have been recorded prior to
or concurrently with the funding of the Loan.

 

(b)           Lender
shall have received the Appraisal which must be an MAI appraisal of the Property conforming to the requirements of FIRREA and otherwise
in form and substance acceptable to Lender in its sole discretion.

 

(c)           Lender
shall have received a survey of the Property in form and substance reasonably acceptable to Lender and a title insurance policy
evidencing that Borrower has good title to the Property, free and clear of all mortgages, security interests, restrictions, liens
and encumbrances of any kind (other than the Security Documents and the other matters listed on said title insurance policy, the
"Permitted Encumbrances"), and containing affirmative insurance on such matters as Lender may reasonably
require.

 

(d)           Lender
shall have received evidence satisfactory to it that the insurance coverage required by Section 6.1(q) is being carried by
Borrower on the Property in form, amounts and with companies acceptable to Lender and naming Lender as additional insured, mortgagee
and loss payee (as applicable).

 

(e)           Lender
shall have received and approved a copy of the fully executed organizational documents of Borrower and Guarantor.

 

(f)            Lender
shall have received and approved the Closing Statement.

 

(g)           Lender
hereunder shall have received a fee for the making of the Loan to Borrower, in the amount specified in Section 9 below.

 

(h)           Lender
shall have received and approved environmental reports and a property condition report for the Property (including reliance letters
in favor of Lender) and a rent roll with respect to the Property.

 

(i)            Borrower
shall have paid Lender's legal fees and all other of Lender's reasonable costs, fees and expenses incurred in connection with the
making of the Loan.

 

(j)            Lender shall have received all of the other documents listed in the closing checklist supplied by Lender to Borrower as
of even date herewith.

 

    	- 12 -

    	 

    

 

(k)           No
Default or Event of Default shall have occurred and be continuing under the terms and provisions of this Agreement, the Note, or
of any of the Loan Documents.

 

8.             Default.

 

8.1          Events
of Default. The occurrence of any of the following, whatever the reason therefor, shall constitute an "Event
of Default":

 

(a)           Borrower
fails to make any payment of principal or interest under the Note within ten (10) days of the date when due, whether on
the scheduled due date or upon acceleration, maturity or otherwise, except that there shall be no grace period upon acceleration
or at maturity of the Note;

 

(b)           Any
default or event of default occurs under any of the Loan Documents which is not cured within any applicable cure period (if any)
set forth therein;

 

(c)           Any
representation or warranty made by Borrower or Guarantor herein or in the Loan Documents shall be incorrect in any material respect
when made;

 

(d)           Borrower
defaults on any public works agreement, surety agreements, or letters of credit secured by or which constitute a lien or may become
a lien against the Property, and such default is not cured within thirty (30) days of notice from Lender;

 

(e)           A
lien for the performance of work or the supply of materials is filed against the Property, or any stop notice with respect thereto
is served on Lender, except for any disputed lien or stop notice as to which Borrower has provided a bond in form and substance
acceptable to Lender so as to remove such lien from the Property and terminate such stop notice within ten (10) days after
demand by Lender; or any mortgage, deed of trust, judgment lien, attachment lien or other voluntary or involuntary lien or encumbrance
is recorded against or otherwise becomes a lien against the Property or any part thereof (provided that with respect to any judgment
lien or other involuntary lien, Borrower shall have a period of ten (10) days after demand by Lender to cause such lien to be removed
from the Property);

 

(f)            Borrower
has intentionally committed waste on or to the Property;

 

(g)           Guarantor
under the Guaranty attempts to revoke or repudiate the Guaranty, or Guarantor's obligations thereunder, in whole or in part;

 

(h)           Borrower
or Guarantor files a bankruptcy petition or makes a general assignment for the benefit of creditors, or a bankruptcy petition is
filed against Borrower or Guarantor, and such involuntary bankruptcy petition continues undismissed for a period of sixty (60)
days after the filing thereof;

 

(i)            Borrower
or Guarantor applies for or consents in writing to the appointment of a receiver, trustee or liquidator of Borrower, Guarantor
or the Property, the Collateral, or all or substantially all of the other assets of Borrower or Guarantor, or an order, judgment
or decree is entered by any court of competent jurisdiction on the application of a creditor appointing a receiver, trustee or
liquidator of Borrower, Guarantor, the Property, the Collateral, or all or substantially all of the other assets of Borrower or
Guarantor;

 

    	- 13 -

    	 

    

 

(j)            A
final nonappealable judgment for (i) the payment of money involving more than $100,000 is entered against Borrower, or (ii) the
payment of money is entered against Guarantor involving more than the lesser of (A) $1,000,000 or (B) an amount which
could reasonably be expected to prevent Guarantor from performing Guarantor's obligations under the Guaranty, and Borrower or Guarantor
fails to discharge the same, or causes it to be discharged or bonded off to Lender's satisfaction, within thirty (30) days from
the date of the entry of such judgment;

 

(k)           Unless
(i) otherwise permitted under this Agreement or (ii) the written consent of Lender is previously obtained, the Equity Interests
in Borrower are sold, pledged or otherwise transferred or all or substantially all of the business assets of Borrower or Guarantor
are sold; Borrower or Guarantor, is dissolved; or there occurs any change in the form of business entity through which Borrower
presently conducts its business or any merger or consolidation involving Borrower;

 

(l)            Any
replacement of the Property Manager with another property manager without Lender's prior written consent, which consent shall not
be unreasonably withheld, conditioned, or delayed;

 

(m)          A
default occurs under the financial covenants of Guarantor set forth in Section 13(i) of the Guaranty; or

 

(n)            Borrower
fails to perform any obligation (other than obligations described in the foregoing subparagraphs of this Section 8.1 or described
in any other Loan Document) under this Agreement or under any other Loan Document within thirty (30) days after receipt of written
notice that such obligation was not performed; provided that, if such default is reasonably capable of being cured and such
cure cannot reasonably be effected within such 30-day period, such failure shall not be an Event of Default so long as Borrower
promptly (in any event, within ten (10) days after receipt of such notice) commences cure, and thereafter diligently (and
in any event, within sixty (60) days after receipt of such notice) prosecutes such cure to completion; and provided
further, however, that notwithstanding the 30-day cure period or extended cure period described above in this subparagraph (n),
the provisions of this subparagraph (n) shall not be deemed to limit, modify or amend any of the provisions of Section 8.1(a) through
(m), inclusive or the provisions of any other Loan Document, such that if a different notice or cure period or no notice or cure
period is specified under (x) any of the foregoing subparagraphs of this Section 8.1, or (y) the provisions of any other Loan Document;
then, in the case of either (x) or (y) above, the provisions set forth in the applicable provisions of this Section 8.1 and/or
the applicable Loan Document shall be deemed to govern and control and Borrower shall have no more time to cure the failure or
breach than is allowed under the specific provisions of this Section 8.1 and/or the applicable Loan Document as to such failure
or breach.

 

    	- 14 -

    	 

    

 

8.2           Options
and Remedies of Lender upon Event of Default. Upon the occurrence of any such Event of Default:

 

(a)           Lender
shall not have any obligation to make any further advance of the undisbursed (if any) proceeds of the Loan;

 

(b)           Lender
may declare the indebtedness evidenced by the Note and secured by the Loan Documents immediately due and payable;

 

(c)           Lender
may pursue any and all rights and remedies provided for hereunder and in the Note and/or any of the other Loan Documents, or otherwise
available at law or in equity; and

 

(d)           Without
limiting subparagraph (c) above, Lender may, whether or not the indebtedness evidenced and secured by the Note, the Deed of
Trust and the other Loan Documents shall be declared due and payable or Lender shall have instituted any foreclosure or other action
for the enforcement of the Deed of Trust, any of the Loan Documents or the Note, in addition to any other remedies which Lender
may have hereunder and in Lender's sole and absolute discretion, (i) enter upon the Property and complete any work commenced
by Borrower or perform any obligations of Borrower under the Leases, all at the risk, cost and expense of Borrower, (ii) at
any time discontinue any work commenced in respect of the Property or change any course of action undertaken by it and not be bound
by any limitations or requirements of time whether set forth herein or otherwise, (iii) assume any contract made by Borrower
in any way relating to the Property, including, without limitation, the Leases, and take over and use all or any part of the labor,
materials, supplies and equipment contracted for by Borrower, whether or not previously incorporated into the Improvements. For
the purpose of exercising the rights granted under this Section, Borrower hereby irrevocably constitutes and appoints Lender its
true and lawful attorney-in-fact to execute, acknowledge and deliver any instruments and to do and perform any acts in the name
and on behalf of Borrower.

 

9.             Fees,
Commissions and Expenses. Lender shall be paid a commitment fee in the amount of $88,016.25 upon the closing of the Loan.
Borrower shall pay all fees, charges, costs and expenses required to satisfy the conditions of the Loan Documents. Without limitation
of the foregoing, Borrower will pay, when due, and if paid by Lender will reimburse Lender on demand for, all fees and expenses
of environmental engineers, appraisers, surveyors, title insurance and Lender's counsel and the cost for flood plain status certification,
in each case in connection with the closing, administration, modification, or any "workout" of the Loan, or the enforcement
of Lender's rights and remedies under any of the Loan Documents.

 

10.          Miscellaneous.

 

10.1        Notices.
All notices, requests and demands upon the respective parties hereto shall be deemed to have been given or made, when given by
hand delivery, by recognized overnight courier, or when deposited in the United States mail, postage prepaid, addressed as follows:

 

    	- 15 -

    	 

    

 

	To Lender:	 	KeyBank National Association
	 	 	225 Franklin Street, 18th Floor
	 	 	Boston, MA  02110
	 	 	Attention:   Christopher T. Neil, Institutional Real Estate
	 	 	 
	With a copy to:	 	Locke Lord LLP
	 	 	2800 Financial Plaza
	 	 	Providence, RI  02903
	 	 	Attention:   Gail E. McCann, Esq.
	 	 	 
	To Borrower:	 	BR-TBR Whetstone Owner, LLC
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, New York  10019
	 	 	Attention:   Jordan Ruddy
	 	 	 
	With a copy to:	 	Bluerock Real Estate Holdings, LLC
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, New York  10019
	 	 	Attention:   Michael Konig, Esq.
	 	 	 
	And with a copy to:	 	Hirschler Fleischer – Attorneys at Law
	 	 	P.O. Box 500
	 	 	Richmond, VA  23218-0500
	 	 	Attention:   Edward S. Flanagan, Esq.
	 	 	 
	and:	 	Nelson Mullins Riley + Scarborough LLP
	 	 	Atlantic Station
	 	 	201 17th Street NW, Suite 1700
	 	 	Atlanta, GA  303673
	 	 	Attention:   Eric Willensky, Esq.

 

or such other address as either party may
furnish in writing to the other for such purpose. All notices so given shall be deemed effective upon receipt or, if mailed by
certified mail, return receipt requested, upon the earlier to occur of receipt or the expiration of the fifth day following the
date of mailing, except that any notice of change in address shall be effective only upon receipt.

 

10.2        No
Waiver; Cumulative Remedies. No failure by Lender to exercise and no delay in exercising any right, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege
hereunder preclude any other further exercise thereof or the exercise of any other right, power or privilege.

 

    	- 16 -

    	 

    

 

10.3        Survival
of Agreements. All agreements, representations and warranties of Borrower made in this Agreement shall survive the making
of the advances hereunder.

 

10.4        Successors.
This Agreement shall be binding upon and inure to the benefit of Borrower and Lender, their respective successors, the permitted
assigns of Lender and the permitted assigns of Borrower.

 

10.5        Counterparts.
This Agreement may be executed in any number of counterparts and each such counterpart shall be deemed to be an original. Delivery
of an executed counterpart of this Agreement in scanned .pdf format or telefacsimile shall have the same force and effect as delivery
of an original executed counterpart of this Agreement.

 

10.6        Exclusive
Massachusetts Jurisdiction and Choice of Law. This Agreement and the other Loan Documents shall be construed and enforced
in accordance with the internal laws of the Commonwealth of Massachusetts without resort to choice of law principles (except as
otherwise provided in the Loan Documents). The exclusive forum and venue for all cases related to or arising out of this Agreement
or the other Loan Documents shall be any United States federal court or Massachusetts Superior Court sitting in the Commonwealth
of Massachusetts (except as otherwise provided in the Loan Documents). Nothing in this Section shall preclude any party from enforcing
a judgment, or filing a foreclosure action or an action seeking to attach property in the state in which the subject collateral
or property is located.

 

10.7        Section
and Subsection Headings. The section and subsection headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.

 

10.8        Approval.
In each place in the Loan Documents where Lender's approval or consent is required or called for, such consent or approval must
be in writing to be effective or binding.

 

10.9        Prompt
Performance. In all cases, Lender's reasonable determination as to whether or not Borrower has acted or is acting promptly
and diligently to conform to the terms and conditions of this Agreement shall be prima facie evidence of that fact.

 

10.10      No
Partnership. Nothing contained in this Agreement shall be construed in a manner to create any relationship between Borrower
and Lender other than the relationship of borrower and lender, and Borrower and Lender shall not be considered partners or co-venturers
for any purpose on account of this Agreement.

 

10.11     Severability.
In the event any one or more of the provisions of this Agreement or any of the other Loan Documents shall for any reason be held
to be invalid, illegal or unenforceable, in whole or in part or in any other respect, or in the event any one or more of the provisions
of any of the Loan Documents operates or would prospectively operate to invalidate this Agreement or any of the other Loan Documents,
then and in either of those events, at the option of Lender, such provision or provisions only shall be deemed null and void and
shall not affect the validity of the remaining obligations of Borrower hereunder, and the remaining provisions of the Loan Documents
shall remain operative and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby.

 

    	- 17 -

    	 

    

 

10.12     Forum.
Borrower hereby irrevocably submits generally and unconditionally for itself and in respect of its property to the jurisdiction
of any state court or any United States federal court sitting in the State specified in the governing law section of this Agreement
and to the jurisdiction of any state court or any United States federal court sitting in the state in which any of the Property
is located, over any Dispute. Borrower hereby irrevocably waives, to the fullest extent permitted by Law, any objection that Borrower
may now or hereafter have to the laying of venue in any such court and any claim that any such court is an inconvenient forum.
Borrower hereby agrees and consents that, in addition to any methods of service of process provided for under applicable law, all
service of process in any such suit, action or proceeding in any state court or any United States federal court sitting in the
state specified in the governing law section of this Agreement may be made by certified or registered mail, return receipt requested,
directed to Borrower at its address for notice set forth in this Agreement, or at a subsequent address of which Lender received
actual notice from Borrower in accordance with the notice section of this Agreement, and service so made shall be complete five
(5) days after the same shall have been so mailed. Nothing herein shall affect the right of Lender to serve process in any manner
permitted by Law or limit the right of Lender to bring proceedings against Borrower in any other court or jurisdiction.

 

10.13      WAIVER
OF JURY TRIAL. BORROWER AND LENDER WAIVE TRIAL BY JURY IN RESPECT OF ANY DISPUTE AND ANY ACTION ON SUCH DISPUTE. THIS WAIVER
IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY BORROWER AND LENDER, AND BORROWER AND LENDER HEREBY REPRESENT THAT NO REPRESENTATIONS
OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON OR ENTITY TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY
ITS EFFECT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THE LOAN DOCUMENTS. BORROWER AND LENDER ARE EACH
HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF JURY TRIAL. BORROWER
FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER
BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE
WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. 

 

10.14      Entire
Agreement. The Loan Documents constitute the entire understanding and agreement between Borrower and Lender with respect
to the transactions arising in connection with the Loan, and supersede all prior written or oral understandings and agreements
between Borrower and Lender with respect to the matters addressed in the Loan Documents. In particular, and without limitation,
the terms of any commitment by Lender to make the Loan are merged into the Loan Documents. Except as incorporated in writing into
the Loan Documents, there are no representations, understandings, stipulations, agreements or promises, oral or written, with respect
to the matters addressed in the Loan Documents.

 

    	- 18 -

    	 

    

 

10.15      Language
of Loan Documents. Borrower acknowledges and agrees that this Agreement and the other Loan Documents have been negotiated,
drafted, and redrafted, by or with the input of both Lender and Borrower, and each of their respective attorneys; and the language
of this Agreement and the other Loan Documents shall be construed as a whole according to its fair meaning, and not strictly for
or against any party.

 

10.16     Assignment.
Notwithstanding anything contained in this Agreement or in any of the other Loan Documents which may be construed to the contrary,
(a) all of Lender's rights and obligations under this Agreement and the other Loan Documents are freely assignable by Lender to
any Person selected by Lender, in Lender's sole and absolute discretion, without Borrower's consent; and (b) except as provided
herein Borrower may not assign or transfer any of its rights or obligations under this Agreement or any of the other Loan Documents
without the prior written consent of Lender, which may be refused in Lender's sole and absolute discretion. Without limiting the
foregoing, Lender may sell or offer to sell the Loan or interests therein to one or more assignees or participants. Lender may
disseminate any information it now has or hereafter obtains pertaining to the Loan, including any security for the Loan and credit
or other information on the Property, Borrower, any of Borrower's principals and Guarantor, to any actual or prospective assignee
or participant, to Lender's affiliates, to any regulatory body having jurisdiction over Lender and to any other parties as necessary
or appropriate in Lender's reasonable judgment. Borrower shall execute, acknowledge and deliver any and all instruments reasonably
requested by Lender at no cost to Borrower in connection therewith, and to the extent, if any, specified in any such assignment
or participation, such assignee(s) or participant(s) shall have the rights and benefits with respect to the Loan Documents as such
Person(s) would have if such Person(s) were Lender hereunder.

 

10.17      ERISA
and Prohibited Transactions . As of the date hereof and throughout the term of the Loan: (a) No Borrower is nor will be
(i) an "employee benefit plan," as defined in Section 3(3) of ERISA, (ii) a "governmental plan" within the
meaning of Section 3(32) of ERISA, or (iii) a "plan" within the meaning of Section 4975(e) of the Code; (b) the assets
of Borrower do not and will not constitute "plan assets" within the meaning of the United States Department of Labor
Regulations set forth in Section 2510.3-101 of Title 29 of the Code of Federal Regulations; (c) transactions by or with Borrower
are not and will not be subject to state statutes applicable to Borrower regulating investments of fiduciaries with respect to
governmental plans; and (d) Borrower will not engage in any transaction that would cause any of its obligations hereunder or any
action taken or to be taken hereunder (or the exercise by Lender of any of its rights under any of the Loan Documents) to be a
non-exempt (under a statutory or administrative class exemption) prohibited transaction under ERISA or Section 4975 of the Code.
Borrower agrees to deliver to Lender such certifications or other evidence of compliance with the provisions of this Section as
Lender may from time to time request.

 

10.18      Pledge
to the Federal Reserve. Lender may at any time pledge or assign all or any portion of its rights under the Loan Documents
including any portion of the Note to any of the twelve (12) Federal Reserve Banks organized under Section 4 of the Federal Reserve
Act, 12 U.S.C. Section 341. No such pledge or assignment or enforcement thereof shall release Lender from its obligations under
any of the Loan Documents.

 

    	- 19 -

    	 

    

 

10.19      USA
Patriot Act Notice. Lender hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act, Lender is
required to obtain, verify and record information that identifies Borrower, which information includes the name and address of
Borrower and other information that will allow Lender to identify Borrower in accordance with the USA Patriot Act.

 

10.20      Right
of Setoff. If an Event of Default shall have occurred and be continuing, Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits of Borrower
(general or special, time or demand, provisional or final, but excluding any funds held by Borrower on behalf of tenants or other
third parties) at any time held and other obligations at any time owing by Lender or Affiliate to or for the credit or the account
of Borrower against any of and all the obligations of Borrower now or hereafter existing under this Agreement held by Lender, irrespective
of whether or not Lender shall have made any demand under this Agreement and although such obligations may be unmatured. Lender
agrees promptly to notify Borrower after any such setoff and application made by Lender, provided that the failure to give such
notice shall not affect the validity of such setoff and application. The rights of Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which Lender may have.

 

(Signatures on next
page)

 

    	- 20 -

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as an instrument under seal as of the date first above written.

 

	 	BORROWER:
	 	 
	 	BR-TBR WHETSTONE OWNER, LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Jordan Ruddy
	 	 	Jordan Ruddy, Authorized Signatory
	 	 
	 	LENDER:
	 	 
	 	KEYBANK NATIONAL ASSOCIATION
	 	 	 
	 	By:	/s/ Christopher T. Neil
	 	 	 Christopher T. Neil
	 	 	 Vice President

 

[Signature Page to Loan Agreement (Whetstone
Apartments)]

 

    	 

    	 

    

 

EXHIBIT A

 

PROPERTY DESCRIPTION

 

FEE TRACT

 

All of the following land, with the buildings
and improvements thereon, lying and being situate in Durham County, North Carolina, and being more particularly described as follows:

 

BEING all of that certain parcel containing
approximately 2.0994 acres as shown on a map entitled "Exempt Final Recombination Plat 300 Jackson Street & 501 Willard
St" recorded in Plat Book 192, Page 3, Durham County Registry which is more fully described as:

 

Beginning at a PK nail on the eastern right
of way of Willard Street; thence with a curve turning to the right with an arc length of 31.04', with a radius of 20.00', with
a chord bearing of N 45°11 ' 41" E, with a chord length of 28.02' to an existing iron pipe; thence N 89°41'27"
E a distance of 185.08' to an existing iron pipe; thence with a curve turning to the right with an arc length of 114.62', with
a radius of 190.37', with a chord bearing of S 73°14'22" E, with a chord length of 112.90' to an existing iron pipe; thence
S 59°12'33" E a distance of 111.39' to an existing iron pipe; thence S 30°47'27" W a distance of 90.76' to an
existing iron pipe; thence S 27°33'27" W a distance of 158.72' to an existing iron pipe; thence N 59°12'33"W
a distance of 113.65' to an existing iron pipe; thence N 89°21'33"W a distance of 193.78' to an existing iron pipe; thence
N 00°38'27"E a distance of 227.18' to an existing iron pipe; which is the point of Beginning, having an area of 91,449.07
square feet or 2.099 acres as shown on plat prepared by Coulter Jewell Thames PA recorded in the Durham County Registry in Book 192
Page 3.

 

EASEMENT TRACT

 

TOGETHER WITH easements contained or conveyed
in that certain Temporary Easement Agreement by and between BR-TBR Whetstone Owner, LLC, TriBridge Residential, LLC, University
Ford, Inc., and University Properties of N.C., L.L.C. being recorded in Durham County Registry prior to the Deed of Trust from
BR-TBR Whetstone Owner, LLC to KeyBank National Association.

 

    	 

    	 

    

 

EXHIBIT B

 

Closing Statement

 

(See Attached)

 

    	 

    	 

    

 

EXHIBIT C

 

Rent Roll

 

Separately delivered to Lender prior
to the date hereof

 

    	 

    	 

    

 

EXHIBIT D

 

Covenant Compliance Certificate

 

Date:___________________________

 

KeyBank National Association

225 Franklin Street, 18th Floor

Boston, Massachusetts 02110

Attn: Christopher T. Neil

 

Ladies and Gentlemen:

 

As required by Section 6.2(c) of
the Loan Agreement dated as of May 20, 2015 by BR-TBR Whetstone Owner, LLC, a Delaware limited liability company ("Borrower")
to KeyBank National Association ("Lender") (as amended from time to time, the "Agreement"),
a review of the activities of Borrower and Guarantor for the calendar quarter ending ________, 201_ (the "Calendar Quarter")
has been made under my supervision with a view to determining whether the Borrower and Bluerock Residential Growth REIT, Inc. ("Guarantor")
have kept and fulfilled all of their obligations under the Agreement. All defined terms used herein have the meanings given to
them in the Agreement. The undersigned hereby certify as follows:

 

1.          Borrower's
Leasing as of the end of the Calendar Quarter is as follows:

 

	(a)	Percent of Property that is leased	____%
	 	 	 
	(b)	Required by November 20, 2016	At least 60%
	 	 	 
	(c)	In compliance	Yes/No

 

2.          Guarantor
Liquidity

 

	(a)	Guarantor Liquidity	$_______________
	 	 	 
	(b)	Required	At least $1,000,000
	 	 	 
	(c)	In compliance	Yes/No

 

    	 

    	 

    

 

3.          Guarantor
Tangible Net Worth

 

	(a)	Total Asset Value as of 3/31/15	$_________________
	 	 	 
	(b)	Guarantor Indebtedness as of 3/31/15	$_________________
	 	 	 
	(c)	Tangible Net Worth as of 3/31/15 [(a) – (b)]	$_________________
	 	 	 
	(d)	75% of (c)	$_________________
	 	 	 
	(e)	Net proceeds of equity issuances after 3/31/15	$_________________
	 	 	 
	(f)	75% of (e)	$_________________
	 	 	 
	(g)	Current Total Asset Value	$_________________
	 	 	 
	(h)	Current Guarantor Indebtedness	$_________________
	 	 	 
	(i)	Current Tangible Net Worth	$_________________
	 	 	 
	(j)	Required Tangible Net Worth [(d) + (f)]	$_________________
	 	 	 
	(k)	In compliance	Yes/No

 

4.          The
undersigned has reviewed the terms of the Agreement and that, to the best of the undersigned's knowledge, neither a Default nor
an Event of Default exists under the Agreement.

 

(Signature on next page)

 

    	 

    	 

    

 

	 	Borrower:
	 	 
	 	BR-TBR WHETSTONE OWNER, LLC,  a Delaware limited liability company
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	Guarantor:
	 	 
	 	BLUEROCK RESIDENTIAL GROWTH REIT, INC., a Maryland corporation
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:

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