Document:

Exhibit 10.1

 

EXECUTION VERSION

 

OPERATING AGREEMENT

OF BR-TBR WHETSTONE VENTURE, LLC

 

THIS OPERATING AGREEMENT (this “Agreement”)
is made and entered into this 20th day of May, 2015, by and between TRIBRIDGE CO-INVEST 27, LLC, a Georgia limited liability
company (the “TriBridge Member”) and BR WHETSTONE MEMBER, LLC, a Delaware limited liability company (the “BR
Member”).

 

BACKGROUND INFORMATION:

 

A.          BR-TBR
Whetstone Venture, LLC (the “Company”) was formed effective as of the 10th day of April, 2015 by the filing of its
Certificate of Formation with the Secretary of State of Delaware.

 

B.           The
Company is the sole member of BR-TBR Whetstone Owner, LLC, a Delaware limited liability company (the “Borrower”).

 

C.           The
Borrower holds legal title to the Property (as defined below).

 

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

 

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

 

ARTICLE
1.

DEFINITIONS

 

In addition to terms
defined in the body of this Agreement, the following terms used in this Operating Agreement shall have the following meanings (unless
otherwise expressly provided herein);

 

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

 

“Additional Member.”
A member other than an Initial Member, who has acquired a Membership Interest from the Company.

 

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

 

“Additional Capital
Contributions.” With respect to each Member, all additional Capital Contributions made by such Member in excess of their
Initial Capital Contribution amounts.

 

    	 

    	 

    

 

“Additional Contribution
Priority Return.” Repayment of a Member’s Additional Capital Contributions at a sixteen percent (16%) Internal Rate
of Return, except that if the contribution is made as a Shortfall, then such contribution shall instead earn a twenty percent (20%)
Internal Rate of Return.

 

“Affiliate.”
(i) In the case of an individual, any relative of such Person, (ii) any officer, director, trustee, partner, manager, employee
or holder of ten percent (10%) or more of any class of the voting securities of or equity interest in such Person; (iii) any corporation,
partnership, limited liability company, trust or other entity controlling, controlled by or under common control with such Person;
or (iv) any officer, director, trustee, partner, manager, employee or holder of ten percent (10%) or more of the outstanding voting
securities of any corporation, partnership, limited liability company, trust or other entity controlling, controlled by or under
common control with such Person.

 

“Available Cash.”
The cash funds of the Company on hand as of a particular time after payment of all current operating expenses of the Company as
of such time, less any Reserve(s) approved in accordance with this Agreement in order to provide for the payment of the Company’s
and Borrower’s outstanding and unpaid obligations or for any other lawful purpose.

 

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

 

“Bridge Loan.”
That certain bridge loan from KeyBank National Association in the approximate principal amount of $25,147,500, which bridge loan
will be used to finance the acquisition of the Project by the Borrower.

 

“Capital Account.”
A capital account maintained in accordance with the rules contained in Treas. Reg. Section 1.704-1(b)(2) as maintained in accordance
with applicable rules under the Code and as set forth in Treas. Reg. Section 1-704-1(b)(2)(4) as amended from time to time.

 

“Capital Contribution.”
The total amount of cash and the Gross Asset Value of any property contributed or agreed to be contributed to the Company by each
Member pursuant to terms of this Agreement (minus any liabilities that the Company assumes or takes subject to).

 

“Capital Percentage.”
The Capital Percentage of each Member is set forth on Exhibit A, except as otherwise adjusted under the Agreement.

 

“Capital Proceeds”
means (a) the net proceeds of a Capital Transaction after (i) payment of all expenses associated with the Capital Transaction,
(ii) repayment of all secured and unsecured Company debts (other than an obligation incurred in order to effect a refinancing which
is the applicable Capital Transaction) required to be paid in connection with such Capital Transaction or that the Managers determine
should be paid in connection with such Capital Transaction, and (iii) such amounts retained as Reserves and (b) any amounts included
in Reserves derived from Capital Contributions and/or Capital Transactions which the Managers reasonably determine to distribute.

 

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“Capital Transaction”
means (i) a transaction pursuant to which the indebtedness secured by the Project is financed or refinanced by the Borrower; (ii)
a sale, condemnation, exchange or casualty not followed by reconstruction, or other disposition, whether by foreclosure or otherwise,
of the Project or any part thereof by the Borrower; or (iii) an insurance recovery or any other transaction with respect to the
Borrower which, in accordance with generally accepted accounting principles, is considered capital in nature.

 

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

 

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

 

“Cost-Sharing
Agreement.” That certain Agreement Regarding Purchase and Sale Contract & Acquisition Loan Fees and Deposits by and between
Affiliates of the Members and dated February 20, 2015.

 

“Cost Overrun”
shall mean any cost overruns incurred in connection with the construction of the Parking Improvements.

 

“Debt Service”
means, for any period, scheduled principal, interest and other required payments owing on the Bridge Loan or any other Loan of
the Company or the Borrower.

 

“Debt Service
Shortfall” means for any period, the amount by which (i) Debt Service exceeds (ii) the sum of (a) Available Cash for such
period and (b) amounts released from Reserves (including Reserves under the Bridge Loan or any other Loan, as hereinafter defined,
or any subsequent loan) during such period for payment of Debt Service.

 

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

 

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

 

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

 

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

 

“Entity.”
Any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business trust, cooperative
or association or any foreign trust or foreign business organization.

 

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

 

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

 

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

 

(a)          The
initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset
on the date of the contribution, as agreed to and set forth in Exhibit A and, otherwise, as determined by the Managers;

 

(b)          The
Gross Asset Values of all Company assets shall be adjusted to equal their respective gross fair market values in accordance with
Regulations Section 1.704-1(b)(2)(iv)(g) (taking Code Section 7701(g) into account), as determined by agreement of the Managers,
as of the following times: (1) the acquisition of an additional Membership Interest by any new or existing Member in exchange for
more than a de minimis Capital Contribution; (2) the distribution by the Company to a Member of more than a de minimis
amount of property as consideration for a Membership Interest; (3) the grant of a Membership Interest in the Company (other
than a de minimis interest) as consideration for the provision of services to or for the benefit of the Company by a new
or existing Member acting in a Member capacity or in anticipation of being a Member; provided, however, that an adjustment
pursuant to clauses (1), (2) and (3) shall be made only if the Managers reasonably determine that such adjustment is necessary
or appropriate to reflect the relative economic interests of the Members in the Company; and (4) the liquidation of the Company
within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g);

 

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

 

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

 

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

 

(f)          In
all other cases, Gross Asset Value of any Company asset means the adjusted basis of such asset for federal income tax purposes.

 

“Initial Capital
Contribution.” The initial contribution to the capital of the Company made by a Member pursuant to this Operating Agreement.
The Initial Capital Contributions of the Initial Members due upon execution of this Agreement are set forth on Exhibit A.

 

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

 

“Internal Rate
of Return” and “IRR.” As of any date, the internal rate of return on the sum of the applicable Capital Contributions
made by a Member (including giving credit for the 3:1 multiplier on the Member’s Additional Capital Contributions as may occur
under Section 8.04(d)), to such date calculated to be that discount rate (expressed on a per annum basis) which, when compounded
annually and applied to such Capital Contributions and the corresponding Distributions with respect thereto, causes the net present
value, as of such date, of such Distributions and Capital Contributions to equal zero. For this purpose, Capital Contributions
and Distributions shall be assumed to have occurred as of the first of the month nearest the actual date such Capital Contribution
or Distribution is made. The formula used to calculate IRR on monthly cash flows shall be: (1+ IRR Hurdle) ^ (1/12)-1. 

 

“Lender.”
Any lender that makes a Bridge Loan or other Loan to Borrower.

 

“Loan.”
The Permanent Loan or any subsequent mortgage loan obtained by Borrower to refinance the Permanent Loan.

 

“Loan Guaranty”
shall mean, collectively, any required guaranty or indemnity, including, without limitation, any recourse-based, project completion
or repayment guaranties (each, a “Recourse Guaranty”) and any “bad boy” non-recourse carveout guaranty
and/or any environmental indemnification agreement (each a “Non-Recourse Carveout Guaranty”) in connection with the
Bridge Loan or any other Loan.

 

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

 

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

 

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

 

“Minimum Gain.”
The same meaning set forth in Regulation Section 1.704-2(d). Minimum Gain shall be computed separately for each Member in a manner
consistent with the Regulations under Code Section 704(b).

 

“Net Cash Flow”
means, for any period, the total annual cash gross receipts during such period derived from the Project and any and all sources,
other than Capital Contributions or as a result of a Capital Transaction during such period, together with any amounts included
in Reserves (other than Reserve amounts derived from Capital Contributions or Capital Transactions) or working capital from prior
periods which the Managers reasonably determine to distribute, less the (i) Debt Service, (ii) the Operating Expenses paid during
such period, and (iii) any increases or replacements in Reserves (other than from Capital Contributions or Net Cash from a Capital
Transaction) during such period. For purposes hereof, Net Cash Flow determined at the Borrower level shall be deemed to be the
Net Cash Flow for the Company, without any duplication.

 

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

 

“Operating Agreement.”
This Operating Agreement as originally executed and as amended from time to time, also referred to herein as the “Agreement,”
from time to time.

 

“Operating Expenses”
for the purposes herein, means the cash expenditures made by the Borrower in connection with owning and operating the Project or
otherwise conducting its business; provided, that, notwithstanding the foregoing, Operating Expenses shall not include any cash
or capital expenditures expended out of established and accumulated cash Reserves of the Company or Borrower used for the particular
purpose for which such Reserves were established or not otherwise allocated for specific purposes.

 

“Parking Improvements”
shall mean the additional improvements to be constructed by the Borrower with respect to the existing parking garage at the Project
for the construction of an additional level to the Project’s existing parking deck; which addition is expected to increase
the parking stalls in the parking deck by approximately 65 stalls and which construction is expected to commence in late 2015 or
early 2016 and take approximately 3 months to complete once commenced. The anticipated costs for the construction of the Parking
Improvements are the subject of the Total Project Budget.

 

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“Permanent Loan”
shall mean the Loan to refinance the Bridge Loan.

 

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

 

“Principals”
mean Steve Broome, Lee Walker and Robert West.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Project”
An existing 204-unit rental apartment complex located upon the Property and commonly known as Whetstone Apartments.

 

“Project Stabilization”
means the Project is at least 90% leased up by third party tenants.

 

“Property.”
That certain property located in Durham, North Carolina which is more particularly described in Exhibit B attached hereto
and incorporated herein upon which the Project is located.

 

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

 

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

 

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

 

“Reserves.”
With respect to any fiscal period, funds set aside or amounts allocated to reserves for the Project during such period which shall
be maintained in amounts deemed sufficient by the TriBridge Member for working capital, capital expenditures, repairs, replacements
and anticipated expenditures for paying taxes, insurance, Debt Service or other costs or expenses incident to the ownership or
operation of the Company’s business; provided that, BR Member shall have the right to reasonably approve the amount of any
such Reserves.

 

“Total Project
Budget.” The Parking Improvement construction budget annexed hereto as Exhibit D, as the same may be amended and updated
from time to time by the mutual consent of all of the Members and, to the extent required, approved by the lender under the Bridge
Loan.

 

“Transferring
Member.” A Member or Economic Interest Owner who sells, assigns, pledges, hypothecates or otherwise transfers for consideration
or gratuitously all or any portion of its Membership Interest or Economic Interest.

 

“Treasury Regulations”
or “Regulations.” The Federal Income Tax Regulations, including any temporary regulations, promulgated under the Code,
as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

 

“TriBridge Change
of Control” shall be deemed to have occurred if any two or more of the three Principals should cease to be actively involved
as principals in the day to day operations and management of TriBridge Residential, LLC, TriBridge Investments, LLC, TriBridge
Residential Property Management Advisors and the TriBridge Member.

 

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ARTICLE
2.

FORMATION OF COMPANY

 

2.01       Formation.
On April 10, 2015, the Company was formed as a Delaware limited liability company by executing and delivering the Certificate of
Formation to the Secretary of State of Delaware in accordance with the provisions of the Act.

 

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

 

2.03       Principal
Place of Business. The principal place of business of the Company is 1575 Northside Drive, Building 100, Suite 200, Atlanta,
GA 30318. The Company may locate its places of business at any other place or places as the Managers may from time to time deem
advisable.

 

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

 

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

 

ARTICLE
3.

BUSINESS OF COMPANY

 

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

 

(a)          To
directly, or indirectly through Borrower, acquire, develop, sell, exchange, construct, improve, subdivide, mortgage, lease, maintain,
transfer, operate, own as an investment and/or otherwise engage in all general business activities related or incidental to the
ownership and renovation of the Project, either directly or indirectly through ownership of one or more other Entities engaged
in the foregoing; and

 

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

 

ARTICLE
4.

NAMES AND ADDRESSES OF INITIAL MEMBERS

 

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

 

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ARTICLE
5.          

RIGHTS AND DUTIES OF MANAGERS

 

5.01       Management.
The business and affairs of the Company shall be managed by its Managers. Except for situations in which the approval of the Members
is expressly required by this Operating Agreement or by nonwaivable provisions of applicable law or as otherwise set forth in this
Agreement, the Managers shall have full and complete authority, power and discretion to manage and control the business, affairs
and properties of the Company, to make all decisions regarding those matters and to perform any and all other acts or activities
customary or incident to the management of the Company’s business. In addition, so long as the Management Company is an Affiliate
of the TriBridge Member or the TriBridge Member has not been removed as a Manager under Section 5.09, the Managers hereby delegate
to the TriBridge Member the authority to implement any Operating Budget approved in accordance with the terms of this Operating
Agreement.

 

5.02       Number,
Tenure and Qualifications. The Company shall have two (2) Managers, and the BR Member and the TriBridge Member shall serve
as the initial Managers. Subject to the foregoing, each Manager shall hold office until its successor shall have been elected and
qualified or until his earlier death, resignation, or removal. Subject to the foregoing and Section 5.10, the Managers shall be
elected by the affirmative vote of all Members.

 

5.03       Certain
Powers of Managers. Subject to the terms of Sections 5.04 and 7.07 below, either Manager shall have power and authority, on
behalf of the Company or in the Company’s capacity as a member of Borrower, as applicable:

 

(a)          To
cause Borrower to acquire the Property and to renovate the Project, including undertaking the Parking Improvements.

 

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

 

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

 

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

 

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(e)          Subject
to Section 5.13, to employ accountants, engineers, architects, surveyors, attorneys, managing agents, leasing agents, and other
experts to perform services for the Company and to compensate them from Company funds.

 

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

 

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

 

(h)          Subject
to Section 6.05(a), to the extent permissible in connection with the Bridge Loan or any subsequent Loan, to borrow money for the
Company from banks, other lending institutions, Managers, Members, or Affiliates of the Managers or Members on such terms as the
Managers deem appropriate, and in connection therewith, to hypothecate, encumber and grant security interests in the assets of
the Company to secure repayment of the borrowed sums. No debt shall be contracted or liability incurred by or on behalf of the
Company except by the Managers or by agents or employees of the Company expressly authorized by the Managers to contract such debts
or incur such liability by the Managers.

 

(i)          To
cause Borrower to subdivide the Property or condominiumize the Property, or portions thereof.

 

(j)          To
do and perform all other acts as may be necessary or appropriate to the conduct of the Company’s business, to the extent
such acts are not reserved unto the Members pursuant to Section 7.07 of this Agreement.

 

Unless
authorized to do so by this Operating Agreement or by the Managers, no attorney-in-fact, employee or other agent of the Company
shall have any power or authority to bind the Company in any way, to pledge its credit or to render it liable pecuniary for any
purpose. No Member shall have any power or authority to bind the Company unless the Member has been authorized by the Managers
or Members to act as an agent of the Company in accordance with the previous sentence.

 

5.04       Management
Committee.

 

(a)          The
Managers and Members hereby establish a management committee (the “Management Committee”) for the Company for the purpose
of the Managers considering and approving actions pursuant to Section 5.03. The Management Committee shall consist of four (4)
individuals appointed to act as “representatives” of the Manager and Member that appointed him or her (the “Representatives”)
as follows: (i) BR Member shall be entitled to designate two (2) Representatives to represent the BR Member as Manager and Member;
and (ii) TriBridge Member shall be entitled to designate two (2) Representatives to represent the TriBridge Member as Manager and
Member. The initial members of the Management Committee are set forth on Exhibit A.

 

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(b)          Each
Representative as a member of the Management Committee, subject to this Section 5.04(b), shall hold office until death, resignation
or removal at the pleasure of the Managers and Member that appointed him or her. If a vacancy occurs on the Management Committee,
the Manager with the right to appoint and remove such vacating Representative shall appoint his or her successor. A Manager shall
lose its right to have its Representatives vote on any item as of the date on which such Manager ceases to be a Manager, including
by means of removal under Section 5.09, or as otherwise provided in this Agreement. If the BR Member transfers all or a portion
of its membership interest to a transferee permitted by Section 12.02(a), such transferee shall automatically, and without any
further action or authorization by any Manager or Member, succeed to the rights and powers of the BR Member under this Section
5.04 as may be agreed to between the BR Member which is transferring the membership interest, on the one hand, and the permitted
transferee to which the membership interest is being transferred, on the other hand, including the shared or unilateral right to
appoint the Representatives that the BR Member was theretofore entitled to appoint pursuant to this Section 5.04. If the TriBridge
Member transfers all or a portion of its membership interest to a transferee permitted pursuant to Section 12.02(b), such permitted
transferee shall automatically, and without any further action or authorization by any Manager or Member, succeed to the rights
and powers of the TriBridge Member under this Section 5.04 as may be agreed to between the TriBridge Member which is transferring
the membership interest, on the one hand, and the permitted transferee to which the membership interest is being transferred, on
the other hand, including the shared or unilateral right to appoint the Representatives that the TriBridge Member was theretofore
entitled to appoint pursuant to this Section 5.04.

 

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

 

(d)          Each
of the two (2) Representatives appointed by BR Member shall be entitled to cast two (2) votes on any matter that comes before the
Management Committee and each of the Representatives appointed by TriBridge Member shall be entitled to cast one (1) vote on any
matter that comes before the Management Committee. Approval by the Management Committee of any matter (other than matters which
are Major Decisions under Section 7.07 or which may be made unilaterally by a Member, but only as expressly set forth in this Agreement)
shall require the affirmative vote of at least a majority of the votes of the Representatives then in office voting at a duly held
meeting of the Management Committee.

 

(e)          Any
meeting of the Management Committee may be held by conference telephone call, video conference or through similar communications
equipment by means of which all persons participating in the meeting can communicate with each other. Participation in a telephonic
and/or video conference meeting held pursuant to this Section 5.04(e) shall constitute presence in person at such meeting.

 

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

 

5.05       Limitation
of Liability. No Manager has guaranteed nor shall have any obligation with respect to the return of a Member’s Capital
Contributions or profits from the operation of the Company. Each Manager shall be entitled to rely on information, opinions, reports
or statements, including but not limited to financial statements or other financial data prepared or presented in accordance with
the provisions of the Act. No Manager shall be liable to the Company or to any Member for good faith negligence or for honest mistakes
of judgment or losses or liabilities due to such good faith mistakes or due to the negligence, dishonesty, unlawful acts or bad
faith of any employee, broker or other agent, accountant, attorney, other professional or person employed by the Company provided
that such person was selected, engaged, retained and supervised by such Manager with reasonable care. No Manager shall have any
liability to the Company or to any Member for any loss suffered by the Company which arises out of any action or inaction of such
Manager if, prior thereto, such Manager, in good faith, determined that such course of conduct was in, and not opposed to, the
best interests of the Company and such course of conduct did not constitute willful misconduct or a material breach of this Agreement
or gross negligence. It is the express intention of the parties that the Managers’ standard of care be limited to acting
in a manner reasonably believed by them in good faith to be in accordance with their authority under this Agreement, that the Managers’
obligations be limited to those expressly provided in this Agreement, and that any duties of loyalty or care and any and all other
fiduciary duties arising at law or in equity, if any, are hereby strictly limited to accord with the provisions of this Section
5.05 and to the performance by the Managers of their express obligations under this Agreement, and any broader duty is hereby waived
by the other Members.

 

5.06       Managers
Have No Exclusive Duty to Company. A Manager shall not be required to manage the Company as his or its sole and exclusive function
and he or it (or any Manager) may have other business interests and may engage in other activities in addition to those relating
to the Company. Neither the Company nor any Member shall have any right, by virtue of this Operating Agreement, to share or participate
in such other investments or activities of a Manager or to the income or proceeds derived therefrom. A Manager shall incur no liability
to the Company or to any of the Members as a result of engaging in any other business or venture.

 

5.07       Bank
Accounts. The Management Committee may from time to time open bank accounts, brokerage accounts and other accounts in the name
of the Company, and the Managers shall be the sole signatories thereon, unless the Management Committee determines otherwise.

 

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

 

5.09       Removal
of Managers. At a meeting called expressly for that purpose, a Manager may be removed, by the affirmative vote of all Members
(excluding the Membership Interests of the BR Member or its permitted transferee in the event the BR Member or its permitted transferee
is the subject of such removal vote and excluding the Membership Interests of the TriBridge Member or its permitted transferee
in the event the TriBridge Member or its permitted transferee is the subject of such removal vote), only in the event of any of
the following (each a “Removal Event”): (a) a material breach of this Agreement on the part of such Manager or its
affiliated Member, which breach shall continue uncured for thirty (30) calendar days after the giving of written notice thereof
to such Manager specifying the nature of such breach; (b) a Default Action by a Member (or an Affiliate of such Member) affiliated
with such Manager; or (c) gross negligence or willful misconduct on the part of such Manager or any of its Affiliates (including
any Affiliated property manager); provided, however, with regard to such acts by Affiliates, only to the extent such acts result
in a material adverse effect on the Project, Borrower or the Company. The removal of a Manager shall also constitute the removal
of such Manager’s Representatives on the Management Committee. The removal of a Manager as a result of a Removal Event who
is also a Member shall not affect the Manager’s rights as a Member and shall not constitute a withdrawal of a Member. In
any instance where: (i) any Member is removed as Manager (the “Removed Manager”), the other Member shall cause the
Member and/or any Affiliate affiliated with the Removed Manager that executed a guaranty to be released in full from any Loan Guaranty;
provided, however, that, if the other Member is unable to obtain such release despite its commercially reasonable efforts to do
so, then the other Member (and certain Affiliates reasonably acceptable to the Member Affiliated with the Removed Manager) shall
be obligated to jointly and severally indemnify and hold harmless the Member and/or any Affiliate affiliated with the Removed Manager
(each, a “Removed Manager Indemnified Party”) pursuant to this Section 5.09 (and without prejudice to any other indemnification
right under Section 15) for actual losses and expenses (including reasonable attorney’s fees and costs) incurred by a Removed
Manager Indemnified Party arising after the date of removal of the Manager, and resulting from actions taken by the other Member
after such date, pursuant to an indemnification agreement in form and substance reasonably satisfactory to the Member affiliated
with the Removed Manager, except to the extent the amount sought to be recovered would never be collectible from, or claimed against,
the Company but for the fraud, willful misconduct, gross negligence or willful misappropriation of funds by the Removed Manager
Indemnified Party; provided, further, the other Member shall not be obligated to indemnify the Member affiliated with the Removed
Manager with respect to any action which the other Member has expressly approved of or consented to in writing within two (2) business
days following the receipt of written notice from the Member affiliated with the Removed Manager that it intends to take such action.
If the other Member has not affirmatively responded to the Member affiliated with the Removed Manager by the end of such two (2)
business day period, the other Member shall be deemed to have expressly disagreed with the action. Unless removed from the Loan
Guaranty, the Removed Manager and its Affiliates shall remain protected under any applicable Backstop Agreement.

 

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

 

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

 

5.12       Parking
Garage Construction and Project Management Fee.

 

5.12.1     Project
Manager. Subject to the Members agreeing upon whether to proceed with the construction of the Parking Deck Improvements in
accordance with Section 7.07(s), the Company shall engage, or shall cause Borrower to engage, TBR Whetstone Project Management,
LLC (“Project Manager”), a North Carolina limited liability company and an Affiliate of the TriBridge Member, to manage
the construction of the Parking Improvements (the “Parking Deck Construction Project”). Project Manager’s duties
shall involve engaging and overseeing a general contractor for the Parking Deck Construction Project, coordinating and monitoring
the work of any other professionals involved in the Parking Deck Construction Project, administering construction contracts for
such project, and causing the general contractor to complete the Parking Deck Construction Project in accordance with final plans
and specifications approved and provided by Borrower and the Total Project Budget (for avoidance of doubt, the Project Manager
shall have no responsibility for Cost Overruns, which shall be governed in accordance with Section 8.04(b) of this Agreement).

 

5.12.2     Fee.
As compensation for the services to be rendered by Project Manager pursuant to the terms of this Section 5.12, the Company shall
pay to Project Manager, or cause Borrower to pay to Project Manager, a project management fee (the “Project Management Fee”)
equal to five percent (5%) of budgeted hard costs as set forth in the Total Project Budget for the Parking Deck Construction Project
as approved by Borrower. The Project Management Fee shall be paid to Project Manager by wire transfer or other immediately available
funds as follows: One-half (1/2) of the Project Management Fee shall be paid upon the date of this Agreement and the remaining
one-half (1/2) shall be paid upon the issuance of a certificate of substantial completion (or its reasonable equivalent) by either
the project architect or general contractor for the Parking Deck Construction Project.

 

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5.12.3     General
Contractor. Project Manager shall be responsible for arranging with an arms-length, third-party general contractor a guaranteed
maximum price contract for construction of the Parking Improvements, which shall, prior to the execution thereof by Borrower, be
reviewed and approved by the BR Member in its sole discretion (the “GMP Contract”); provided, that, the pricing terms
set forth in the GMP Contract must in all events comply with the Total Project Budget. The BR Member acknowledges and agrees that
the Project Manager anticipates using Barnhill Construction as the general contractor, and as such, the contract shall be arms-length
with a GC Fee reasonably approved by the BR Member.

 

5.12.4     Construction
Information. During the construction process, Project Manager will provide to Borrower, Company and BR Member copies of all
construction related information, including but not limited to construction draws top sheets with budget-versus-actual information
to Borrower, Company and BR Member, plus full physical access to the Property and all documentation in connection therewith.

 

5.12.5     Project
Manager Contribution. Without limitation, and for no additional charge or credit to the TriBridge Member’s Capital Account,
the TriBridge Member shall cause Project Manager to contribute to the Borrower all of (a) the design and construction plans for
the Parking Improvements (at Project Manager’s actual cost, free and clear of all liabilities) and (b) all other tangible
and intangible rights associated with the Parking Improvements and (c) all other items appurtenant to the construction of the Parking
Improvements (collectively, the “Project Manager’s Rights”).

 

5.12.6     Warranties.
The TriBridge Member shall cause the Project Manager to use commercially reasonable efforts to cause the general contractor to
warrant to the Borrower and the Company the construction of the Parking Improvements for twelve (12) months after the Certificate
of Occupancy is received for the Parking Improvements such that the general contractor must promptly correct and repair, at its
sole cost and expense, all defects discovered during such period. The Company may assign such warranty and any subcontractor warranties
to any third party who purchases the Project from the Borrower during such period.

 

5.12.7     Joinder.
Project Manager has joined in the execution of this Agreement for purposes of evidencing its consent and agreement to abide by
the provisions of this Section 5.12.

 

5.13       Acquisition
Fee. At the Closing of the acquisition of the Property, the TriBridge Member or its designee shall earn an acquisition fee
equal to $360,000.

 

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5.14       Operating
Budget. The Borrower shall operate the Project under a business plan and an annual operating budget (each, an “Operating
Budget”) commencing for the 12-month period beginning as of the date of closing of the acquisition of the Property. A copy
of the initial agreed upon Operating Budget is annexed hereto as Exhibit C. The TriBridge Member shall deliver to BR Member for
their joint approval the subsequent proposed Operating Budget, for each subsequent calendar year, beginning with calendar year
2016, by November 1st of the preceding calendar year. After the Operating Budget has been approved, and for so long as the TriBridge
Member’s Affiliate is serving as the property manager of the Project under the Management Agreement, the TriBridge Member
shall administratively implement it on behalf of the Borrower and may incur the expenditures and obligations therein provided.
No material changes or departures from any item in an approved Operating Budget shall be made or permitted without the prior written
approval of BR Member. If an Operating Budget has not been approved by January 1st of any subsequent year, the Borrower shall continue
to operate the Project under the Operating Budget for the previous year, with such adjustments as may be necessary to reflect deletion
of non-recurring expense items set forth on the previous Operating Budget and positive or negative adjustments in insurance costs,
taxes, utility costs and Debt Service payments (collectively “Uncontrollables”); provided, further, if the Members cannot
agree on an Operating Budget for the following year, the Management Committee shall establish the Operating Budget for such year
taking into account whether any increases to the Operating Budget (other than with respect to Uncontrollables) are reasonably required
under the circumstances, and are consistent with the prior use of the Project. The TriBridge Member shall promptly advise and inform
the BR Member of any transaction, notice, event or proposal directly relating to the management and operation of the Project, other
assets of the Company or Borrower or the Company or the Borrower which does or is likely to significantly affect, either adversely
or favorably, the Project, other assets of the Company or Borrower or is expected to cause a material deviation from the Operating
Budget.

 

5.15       Management
Company. The Managers shall cause the Borrower to enter into a management agreement, in a form approved by the TriBridge Member
and BR Member (the “Management Agreement”) with TriBridge Residential Property Management Advisors, LLC (“Management
Company”) to manage, lease-up and operate the Property pursuant to the Management Agreement. The Management Agreement shall
require that Management Company operate the Project in a first class manner, and in accordance with the standards and conditions
for the type, style, class, use and location of the Property, consistent with the Project’s Operating Budget and providing
for payment of a management fee in an amount not to exceed the greater of (i) $5,000 per month and (ii) three percent (3%) of annual
gross cash revenues, payable monthly. Subject to the following sentence, the Management Agreement shall be renewed annually, subject
to the approval of the Company. The BR Member shall act on behalf of the Company in regard to enforcement of rights under the Management
Agreement and with respect to determining whether to renew the Management Agreement annually; provided, however, so long as the
Management Company has met lease-up, income, and controllable expenses as projected (expressly excluding expenses of a capital
nature resulting from casualty or condemnation or relating to force majeure events) under the Operating Budget for 2015, the Management
Agreement will be automatically renewed for 2016 (at all times subject to “cause” termination rights).

 

5.16       Operation
in Accordance with REOC/REIT Requirements.

 

5.16.1     The
Members acknowledge that BR Member or one or more of its Affiliates (an “BR Affiliate”) intends to qualify as
a “real estate operating company” or “venture capital operating company” within the meaning of U.S. Department
of Labor Regulation 29 C.F.R. §2510.3-101 (a “REOC”), and agree that the Company and its Subsidiaries shall
be operated in a manner that will enable BR Member and such BR Affiliate to so qualify; provided, however, in no event shall the
foregoing require any loss of voting or decision rights to the TriBridge Member or result in any adverse effect on the economic
rights of the TriBridge Member. Except as disclosed to BR Member, TriBridge Member (a) shall not fund any Capital Contribution
with the ‘plan assets’ of any ‘employee benefit plan’ within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended, or any ‘plan’ as defined by Section 4975 of the Internal Revenue
Code of 1986, as amended.

 

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5.16.2     Except
for the Property, neither the Company nor its Subsidiaries shall hold any investment, incur any indebtedness or otherwise take
any action that would cause any Member of the Company (or any Person holding an indirect interest in the Company through an entity
or series of entities treated as partnerships for U.S. federal income tax purposes) to realize any “unrelated business taxable
income” as such term is defined in Code Sections 511 through 514, unless specifically agreed to by the Members in writing.
No Manager or Member shall be liable for any income or other taxes, damages, costs or expenses incurred by the Company or any Member
by reason of the recognition by the Company of UBTI, unless caused by its own willful misconduct or gross negligence and not related
to the Property.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		5.16.3.8	Selling or disposing of any property, subsidiary or other
asset of the Company prior to (i) the completion of a two (2) year holding period with such period to begin on the date the Company
acquires a direct or indirect interest in such property and begins to hold such property, subsidiary or asset for the production
of rental income, and (ii) the satisfaction of any other requirements under Section 857 of the Code necessary for the avoidance
of a prohibited transaction tax on the REIT; provided, that such restriction shall not affect, restrict or be deemed to modify
(i) either Member’s right to exercise its buy-sell rights under Section 12.06; or (ii) BR Member’s rights pursuant
to Section 6.05(b); or

 

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

 

		5.16.4	Notwithstanding the foregoing provisions of Section 5.16.3,
the Company may enter into a REIT Prohibited Transaction if it receives the prior written approval of the REIT Member specifically
acknowledging that the REIT Member is approving a REIT Prohibited Transaction pursuant to this Section 5.16.4. For purposes of
this Section 5.16.4, “REIT Prohibited Transactions” shall mean any of the actions specifically set forth in Sections
5.16.3 (1) through (9).

 

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

 

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ARTICLE
6.

RIGHTS AND OBLIGATIONS OF MEMBERS

 

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

 

6.02       No
Liability for Company Obligations. No Member will have any personal liability for any debts or losses of the Company beyond
its respective Capital Contributions, except as provided by law or otherwise provided by separate agreement among the Members.

 

6.03       List
of Members. Upon written request of any Member, the Company shall provide a list showing the names, addresses and Membership
Interest and Economic Interest of all Members and any other information required by Section 18-305 of the Act and maintained pursuant
to Section 11.02.

 

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

 

6.05       Refinancing
Right With Respect to Bridge Loan; Special Rights to Call for Capital to Avoid or Cure Imminent Loan Defaults; Backstop Agreement.

 

(a)          The
Bridge Loan will be guaranteed by Bluerock Residential Growth REIT, Inc., an Affiliate of the BR Member. The guarantor will be
required to meet and maintain certain financial covenants during the terms of the Bridge Loan and failure to do so may result in
a default under the Bridge Loan which, for the avoidance of doubt, would be a 100% liability event on the part of the guarantor
pursuant to the Backstop Agreement (as defined below). Notwithstanding the Major Decisions provisions of this Agreement, the BR
Member shall have the right to cause the Borrower to refinance the Bridge Loan on commercially reasonable terms as approved by
the TriBridge Member, which approval shall not be unreasonably withheld, conditioned or delayed (as refinanced, the “Permanent
Loan”). Any subsequent refinancing of the Permanent Loan shall be as otherwise governed under this Agreement.

 

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(b)          Notwithstanding
anything contained in this Agreement to the contrary, at any time and from time to time, either Member may unilaterally make a
call for Additional Capital Contributions to fund on a timely basis any Debt Service Shortfall or any other payment that if
unpaid would constitute a payment default under the Bridge Loan or any subsequent Loan, and if the other Member fails or refuses
to timely contribute its proportional share of such Additional Capital Contribution such that a resulting default would occur thereunder,
then (i) the provisions of Section 8.04 shall apply with regard to each Member’s obligation to fund its share of the capital
call and the consequences of failing to do so; provided however, (ii) to the extent that the capital call is to (A) pay for a balloon
payment due in connection with a default thereunder or upon maturity of the Bridge Loan or any subsequent Loan or (B) fund principal
paydown in connection with a restructuring or to fund “gap equity” that may be required in order for the Borrower to
qualify for or close a new Loan to pay off the Permanent Loan or any subsequent Loan if it were to fall in default [i.e., the Equity
Gap funding obligations to refinance the Bridge Loan with the Permanent Loan are governed by Section 8.04(e) but do not apply with
respect to any restructurings of the Permanent Loan or subsequent refinancing of it], then with respect to any matter under subsection
(ii), only the provisions of subsections (iii) and (iv) below shall apply (not Section 8.04).

 

(iii)         If
subsection (b)(ii) has been triggered (i.e., a payment in the nature of principal is required to prevent or cure a default under
the Bridge Loan or any subsequent Loan), neither party shall be obligated under this Agreement to fund its share of the called
capital. Rather, the parties shall instead undertake good faith negotiations to arrive at a commercially reasonable solution but
if they are unable to do so within 14 days, then, except as provided in subsection (iv) below, either party may engage the Lender
in negotiations on behalf of the Borrower to address the default. If despite good faith efforts no commercially reasonable and
mutually satisfactory resolution has been reached within 30 days, then either party may cause the Borrower to sell the Project
(in which case they shall jointly control the sale process) or exercise the buy-sell contained in Section 12.06 below (notwithstanding
the “lockout” period therein).

 

(iv)         Notwithstanding
the provisions of subsection (iii) above, if the reason for the default was due to the actions solely of one Member or its Affiliates
(and the other Member and its Affiliates are not otherwise in default under this Agreement or responsible for the default under
any Loan Guaranty), then subsection (iii) above shall not apply and the other Member shall have the right, notwithstanding any
other provision in this Agreement, to (1) control the negotiations with the Lender to restructure and/or modify the Bridge Loan
or any subsequent Loan on commercially reasonable terms, (2) obtain commercially reasonable supplemental loans secured by assets
of the Borrower to cure the default, (3) seek to refinance the Bridge Loan or any subsequent Loan on commercially reasonable terms,
(4) cause the Borrower to sell the Project (and it shall control the sale process), or (5) exercise the buy-sell contained in Section
12.06 below (notwithstanding the “lockout” period therein).

 

(c)          Upon
execution of this Agreement, the Members will execute a backstop agreement (the “Backstop Agreement”), pursuant to
which the Members and certain of their Affiliated credit parties (which credit party shall be, in the case of the TriBridge Member,
TriBridge Residential, LLC) will be proportionately responsible for any Non-Recourse Carve-Out Guaranty liability, unless either
such Member or its Affiliates caused the liability to be incurred as a result of its action or omission, in which case such party
shall bear 100% of the liability.

 

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6.06       Default.
If any Member or its Affiliate commits any Default Action (as defined below), then, provided the other Member and/or its Affiliate
is not in material breach or default hereunder and has not otherwise committed a Default Action, in addition to any other legal
or equitable remedy available to the non-breaching Member (or pursuant to the terms of this Agreement, including under Section
5.09), the non-breaching Member shall be entitled to recover its actual damages, including reasonable attorney’s fees (but
specifically excluding special, consequential, punitive or exemplary damages) sustained by the non-breaching Member as a result
of such Default Action. The following actions are collectively referred to as “Default Actions”: (1) Bankruptcy of
a Member, (2) willful misconduct or gross negligence, (3) willful misappropriation of Company or Borrower funds, (4) the material
breach or violation of this Agreement (but expressly excluding a Member’s failure to make an Additional Capital Contribution),
(5) the transfer of a Membership Interest (or, in the case of the TriBridge Member, the occurrence of a TriBridge Change of Control)
in violation of this Agreement; (6) any action or omission that, to the extent caused solely by a Member’s (or its Affiliate’s)
actions or omissions, results in Lender asserting liability under a Non-Recourse Carveout Guaranty (but expressly excluding therefrom,
any liquidity based Non-Recourse Carveout Guaranty provision), (7) withdrawal of a Member in violation of this Agreement; (8) solely
with respect to the TriBridge Member, the Bankruptcy of any Affiliate of the TriBridge Member that triggers a default under the
terms of the Bridge Loan or any subsequent Loan or any Loan Guaranty and (9) solely with respect to the BR Member, the Bankruptcy
of Bluerock Residential Growth REIT, Inc. following the date that it first acquires a direct or indirect common interest in the
Company or the Project; provided, that the non-defaulting Member shall provide notice to the defaulting Member of the occurrence
of any Default Action under clauses (1), (4), (5), (6), (7), (8) or (9) and the defaulting Member shall have thirty (30) days from
the receipt of such notice to cure such Default Action; provided, however, that if more than thirty (30) days is reasonably required
to cure such Default Action and if the defaulting Member has commenced to cure within the original thirty (30) day cure period
and diligently continues to cure such default, then the defaulting Member shall receive such additional time as is reasonably necessary
to cure the Default Action (not to exceed an additional thirty (30) days). For any Default Action under clause (3) caused by an
employee of the Member or its Affiliate, no Default Action shall be deemed to exist if the Member (a) terminates the employment
of said employee; and (b) restores the misappropriated funds immediately.

 

ARTICLE
7.

MEETINGS OF MEMBERS

 

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

 

7.02       Place
of Meetings. The Persons calling any meeting may designate any place in Atlanta, Georgia as the place of meeting for any meeting
of the Members. If no designation is made, the place of meeting shall be the principal executive office of the Company in the State
of Georgia.

 

7.03       Notice
of Meetings. Written notice stating the place, day and hour of the meeting and the purpose or purposes for which the meeting
is called shall be delivered not less than two (2) nor more than five (5) days before the date of the meeting, either personally
or by mail, by or at the direction of the Managers or Person calling the meeting, to each Member entitled to vote at such meeting.
If mailed, such notice shall be deemed to be delivered two (2) calendar days after being deposited in the United States mail, addressed
to the Member at its address as it appears on the books of the Company, with postage thereon prepaid. Notice provided in accordance
with this Section shall be effective notwithstanding anything in the Act to the contrary.

 

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

 

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

 

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

 

7.07       Manner
of Acting. The affirmative vote of the TriBridge Member and the BR Member shall be required to approve these actions (each,
a “Major Decision”):

 

(a)          do
any act in contravention of, or amend, the Company’s Certificate of Formation or this Operating Agreement or the Borrower’s
organizational documents;

 

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

 

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

 

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

 

(e)          commence,
or respond to, or settle any litigation involving the Company, the Borrower or the Property in amounts in excess of $25,000;

 

(f)           filing
or initiating a Company or Borrower Bankruptcy;

 

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

 

(h)          make
loans using funds of the Company or Borrower;

 

(i)           except
as expressly provided in Section 12.02, the admission of additional Members to the Company or to Borrower;

 

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

 

(k)          incur
any indebtedness for borrowed money or grant a security interest in the Company’s or Borrower’s property, except for the
refinancing of the Bridge Loan into a Permanent Loan, which shall be governed by Section 6.05(a);

 

(l)           subject
to Sections 6.05(a) and (b), any sale, refinance or other capital transaction with regard to the Project;

 

(m)         in
the event of a fire, other casualty or partial condemnation of the Property, a determination whether to construct or reconstruct
improvements located in the Property, where such construction or reconstruction would cost in excess of One Hundred Thousand Dollars
($100,000) and is not required under the terms and provisions of any lease, mortgage or deed of trust affecting the damaged or
condemned portion of the Property in question;

 

(n)          take
any action which would cause a default under the Bridge Loan or any subsequent Loan or that would otherwise reasonably be expected
to expose the TriBridge Member, BR Member or any Affiliate thereof to liability under any Loan Guaranty;

 

(o)          subject
to Section 5.14, approve any Operating Budget or make any modifications thereto;

 

(p)          subject
to Section 5.14, changes to the Company’s or Borrower’s business plan, leasing strategy, rental rates (subject to approved
use of daily pricing software), etc.;

 

(q)          hiring
or retaining any property manager (other than the hiring of TriBridge Residential Property Management Advisors, LLC who has been
approved by the Members), disposition broker, insurance agent, or other vendors of the Company or Borrower; although the form and
terms of the Management Agreement remain subject to the approval of the Members. For the avoidance of doubt, the retention or termination
of TriBridge Residential Property Management Advisors, LLC as property manager may, subject to certain restrictions on terminating
the Management Agreement as set forth in Section 5.14, be decided solely by BR Member. In the event TriBridge Residential
Property Management Advisors, LLC is properly terminated or not renewed by the Borrower under the Management Agreement, the replacement
property manager may be selected by BR Member in its sole discretion;

 

(r)           enter
into any one or more agreements or contractual commitments, on behalf of the Company or the Borrower obligating the Company or
Borrower, as applicable, to make expenditures exceeding, in the aggregate for any one year, $30,000 (except as authorization to
do so is otherwise exercised under other provisions of this Agreement);

 

(s)          decision
as to whether to construct the Parking Improvements; and

 

(t)           modifications
to the Total Project Budget.

 

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

 

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

 

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

 

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

 

ARTICLE
8.

CONTRIBUTIONS TO THE COMPANY AND CAPITAL
ACCOUNTS

 

8.01       Members’
Initial Capital Contributions. Contemporaneously with the execution hereof, each Member has contributed such amount as is set
forth in Exhibit “A” hereto as its share of the Initial Capital Contribution. The amount of the Initial Capital
Contribution is anticipated to include sufficient capital to complete the Parking Improvements based on the Total Project Budget.
Notwithstanding the foregoing, the Members agree that all costs related to the pursuit of the Project under the Cost-Sharing Agreement
previously incurred by a Member or its Affiliate either (i) shall be deemed an Initial Capital Contribution of such Member and
reduce the amount otherwise to be contributed by it to the Company or (ii) shall be refunded to such Member.

 

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

 

8.03       Loans
to Company. To the extent approved by the Managers and Members pursuant to Section 7.07, any Member may make a secured or unsecured
loan to the Company or the Borrower.

 

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8.04       Additional
Capital Contributions.

 

(a)          Additional
Capital Contributions for Operating or Other Cash Deficits. Except as otherwise provided in Section 6.05(b)(i), in the event the
Borrower is unable to pay its cash obligations as and when they become due, and thus has or is expected to have an actual cash
flow deficit (other than as a result of a Cost Overrun or for a shortfall as discussed in Section 6.05(b)(ii)), and such funds
cannot be obtained pursuant to Section 8.03 above, the TriBridge Member as Manager shall in the first instance determine the amount
of required funds (but if it does not timely act, the BR Member as Manager may do so), shall notify the Management Committee of
same and shall recommend that the Management Committee make a capital call for such funds pursuant to this Section 8.04(a). Upon
the receipt of the recommendation, the Management Committee shall evaluate such recommendation in good faith and shall determine
whether such capital call is reasonably required under the circumstances, is required for funding operating deficits and/or debt
service shortfalls and is consistent with the prior use and operation of the Project. In the event that the Management Committee
determines that it is appropriate to make such capital call based on the standards set forth in the preceding sentence (or upon
any instance in which either Member has a right to call for capital pursuant to Section 6.05(b), the Management Committee (or in
the case of 6.05(b), the Member making the call for an Additional Capital Contribution) shall so notify the Members, and the TriBridge
Member and the BR Member shall have thirty (30) days to make Capital Contributions of its pro-rata share (i.e. based upon its Capital
Percentage) of the necessary funds (an “Additional Capital Contribution”). All such Additional Capital Contributions
shall be entitled to receive an Additional Contribution Priority Return.

 

(b)          Additional
Capital Contributions for Cost Overruns. In the event the Borrower incurs a Cost Overrun with respect to the construction of the
Parking Improvements, and such Cost Overrun cannot be resolved pursuant to Section 8.03 above, the TriBridge Member as Manager
shall in the first instance determine the amount of required funds necessary to satisfy the Cost Overrun with respect to the Parking
Improvements (but if it does not timely act, the BR Member as Manager may do so), shall notify the Management Committee of same
and shall recommend that the Management Committee make a capital call for such funds pursuant to this Section 8.04(b). Upon the
receipt of the recommendation with respect to any such Cost Overrun, the Management Committee shall evaluate such recommendation
in good faith and shall determine whether such capital call is reasonably required under the circumstances. In the event that the
Management Committee elects to make such capital call, it shall so notify the Members, and the TriBridge Member and the BR Member
shall have thirty (30) days to make an Additional Capital Contribution equal to its pro-rata share (i.e. based upon its Capital
Percentage) of the necessary funds. All such Additional Capital Contributions shall be entitled to receive an Additional Contribution
Priority Return.

 

(c)          Failure
to Make Additional Capital Contributions. In the event a Member fails to make all of its Additional Capital Contribution (“Defaulting
Member”) as required in Section 6.05(b)(i), Section 8.04(a), Section 8.04 (b) or Section 8.04(e) on the due date (the “Contribution
Default Date”), the following shall apply:

 

(i)          the
Defaulting Member’s voting rights and rights to participate in the management of the business of the Company (including but
not limited to as a Manager, for Management Committee participation and Major Decisions) shall automatically be suspended; and

 

(ii)         the
non-Defaulting Member(s) may (but shall not be obligated to) contribute the unpaid portion of the Defaulting Member’s Additional
Capital Contribution (a “Shortfall”). If there is more than one non-Defaulting Member desiring to make the Additional
Capital Contribution on behalf of the Defaulting Member to cover the Shortfall, then such non-Defaulting Members shall be entitled
to contribute the Defaulting Member’s Additional Capital Contribution in such amounts as they may agree among each other,
or, in the absence of such agreement, in proportion to their respective Capital Percentages.

 

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(d)          In
addition to any other rights available under this Agreement, if, as provided in Section 8.04(c)(ii) above, a non-Defaulting Member
contributes a Shortfall amount on behalf of a Defaulting Member solely in connection with a Cost Overrun, then the amount so contributed
shall be deemed an Additional Capital Contribution pursuant to this Section 8.04(d), in which case the non-Defaulting Member shall
be credited with Additional Capital Contributions at a 3:1 ratio for each such dollar of Shortfall/Additional Capital Contribution
so made on behalf of the Defaulting Member. For example, if the TriBridge Member fails to fund its share of a Cost Overrun the
BR Member shall have the right but not the obligation to fund such amount to the Company as an Additional Capital Contribution
and, to the extent that it does, shall be credited at a 3:1 ratio (meaning, for every $100,000 of Additional Capital Contribution
made by the BR Member for that purpose, the BR Member would be credited with having made $300,000 of Additional Capital Contributions).
For the sake of clarity, this Section 8.04(d) shall not apply to Additional Capital Contributions required pursuant to Sections
6.05(b)(i) or 8.04(a).

 

(e)          Notwithstanding
the foregoing, if in connection with any refinancing of the Bridge Loan, the amount of the Permanent Loan which has been provided
to refinance the Bridge Loan is insufficient to fully payoff the Bridge Loan and/or the equity required to qualify for and close
a Permanent Loan that would be sufficient to fully payoff the Bridge Loan (any such deficiency, an “Equity Gap”), then
to the extent the aggregate Capital Contributions of the TriBridge Member are equal to or have exceeded 1,007,640.61 to date, or
to the extent that the TriBridge Member’s share of the Equity Gap would result in the TBR Member contributing (i.e. in addition
to its Initial Capital Contribution), in the aggregate, capital equal to or in excess of $1,007,640.61 (the “TriBridge Cap”),
then the BR Member shall be responsible for funding one hundred percent (100%) of any such Equity Gap in excess of the TriBridge
Cap (a “BR Equity Gap Contribution”). In such instance, the respective Capital Percentages of the TriBridge Member and
BR Member shall be adjusted ratably so that the TriBridge Member is diluted on a proportionate basis, by the amount by which BR
Member funds any BR Equity Gap Contribution. Amounts funded by either Member in connection with any Equity Gap, including, without
limitation, any BR Equity Gap Contributions, shall not be treated as an Additional Capital Contribution and shall not be repaid
as an Additional Contribution Priority Return, but rather shall be treated as part of the Member’s Initial Capital Contribution
but considered contributed as of the date actually made (for avoidance of doubt, IRR shall not be calculated as if such amounts
were contributed on the same date that earlier Initial Capital Contributions were made). For example, if the TriBridge Member’s
aggregate Capital Contributions at the time of the refinance are $800,000.00, and the TriBridge Member’s share of the Equity Gap
is $300,000.00, then the TBR Member shall be required to fund $200,000.000, which amount shall be considered part of the TriBridge
Member’s Initial Capital Contribution, and the BR Member shall be required to fund $100,000 as a BR Equity Gap Contribution, which
amount shall be treated as a part of the BR Member’s Initial Capital Contribution, and the Capital Percentage of the TriBridge
Member shall be reduced (and the Capital Percentage of the BR Member shall be increased) by an amount equal to a fraction, the
numerator of which is $100,000.00 and the denominator of which is all Capital Contributions made by the Members. For the avoidance
of doubt, this Section 8.04(e) only applies to Equity Gaps with respect to refinancing of the Bridge Loan, not with respect to
any shortfall in the event of a refinancing of the Permanent Loan. 

 

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(f)          The
remedies provided in Sections 6.05(b) and 8.04 with respect to any Member’s failure to make any Additional Capital Contribution
shall be the sole and exclusive remedies of the Non-Defaulting Member for such failure.

 

8.05       Withdrawal
or Reduction of Members’ Contributions to Capital.

 

(a)          A
Member shall not receive out of the Company’s property any part of such Member’s Capital Contributions until all liabilities
of the Company, except liabilities to Members on account of their Capital Contributions, have been paid or there remains property
of the Company sufficient to pay them.

 

(b)          A
Member, irrespective of the nature of such Member’s Capital Contribution, has only the right to demand and receive cash in
return for such Capital Contribution.

 

8.06       Maintenance
of Capital Accounts. The Company shall establish and maintain a Capital Account for each Member and Economic Interest Owner.
Each Member’s Capital Account shall be increased by (a) the amount of any Capital Contribution contributed by the Member
to the Company, (b) the fair market value of any property, as determined by the Company and the Member by arm’s length agreement
at the time of contribution (net of liabilities assumed by the Company or subject to which the Company takes such property within
the meaning of Section 752 of the Code), and (c) the Member’s share of Profits and of any separately allocated items of income
or gain (including any gain or income allocated to the Member to reflect the difference between the book value and tax basis of
assets contributed by such Member). Each Member’s Capital Account shall be decreased by (a) the amount of any money distributed
to the Member by the Company (excluding payments received by a Member from the Company as repayment of a loan by the Company to
the Member), (b) the fair market value of any property distributed to the Member (net of liabilities of the Company assumed by
the Member or subject to which the Member takes such property within the meaning of Section 752 of the Code), and (c) the Member’s
share of Losses and of any separately allocated items of deduction or loss (including any loss or deduction allocated to the Member
to reflect the difference between the book value and tax basis of assets contributed by the Member).

 

ARTICLE
9.

DISTRIBUTIONS

 

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

 

(a)          First,
pari passu to each Member based on its Additional Contribution Priority Return until paid in full;

 

(b)          Next,
to the Members, pari passu, in accordance with their Capital Percentages, until such time as the Members have received an Internal
Rate of Return of nine percent (9%) on all Initial Capital Contributions (including in connection with any Equity Gap funding as
provided under Section 8.04(e));

 

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(c)          Next,
(i) 81.08% to the Members, pari passu, in accordance with their Capital Percentages, and (ii) 18.92% to the TriBridge Member, until
such time as the BR Member has received an Internal Rate of Return of fifteen percent (15%);

 

(d)          Next,
(i) 70.27%, to the Members, pari passu, in accordance with their Capital Percentages, and (ii) 29.73% to the TriBridge Member,
until such time as the BR Member has received an Internal Rate of Return of eighteen percent (18%); and

 

(e)          Thereafter,
54.05%, to the Members, pari passu, in accordance with their Capital Percentages, and (ii) 45.95% to the TriBridge Member.

 

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

 

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

 

ARTICLE
10.

ALLOCATIONS OF NET PROFITS AND NET
LOSSES

 

10.01     Allocation
of Profits and Losses. Profits and Losses for any Fiscal Year or other
period of the Company will be allocated to the Members as follows: 

 

(a)          Allocations
of Profits and Losses for Capital Account Purposes. After giving effect to the special allocations set forth in Sections 10.02
and 10.03, Profits and Losses of the Company for any Fiscal Year or portion thereof shall be allocated among the Capital Accounts
of the Members in such a manner that would cause, to the extent possible, the Capital Accounts of the Members as of the end of
a Fiscal Year or portion thereof, after adjustment for all contributions and distributions during the year, and after adjustment
for the special allocations set forth in Sections 10.02 and 10.03 (including the allocations of such Members’ shares of the
“partnership minimum gain” and “partner nonrecourse debt minimum gain” (as such terms are used in Regulation
Section 1.704-2) not otherwise required to be taken into account during such period), to equal the aggregate distributions
that the Members would be entitled to receive pursuant to Section 9.01, in each case determined as if (i) all assets of the
Company, including cash, were sold for their Gross Asset Values (which, for the avoidance of doubt, shall not be “booked
up” to fair market value for this purpose outside of an actual liquidation), (ii) all Company liabilities, including the
Company’s share of any liability of any entity treated as a partnership for U.S. federal income tax purposes in which the
Company is a partner, were satisfied in cash according to their terms (each nonrecourse liability is limited to the book value
of the assets securing such liability) and (iii) the remaining proceeds were distributed in accordance with Section 9.01.
The Managers, based on the advice of the Company’s tax advisors, shall have the authority to correct or adjust any allocation
provision hereunder as it determines to be necessary or appropriate (and not unfairly discriminatory against any Member) for such
allocations, in the aggregate, to be made in the manner provided in the first sentence of this Section 10.01.

 

    	30

    	 

    

 

(b)          Limitations
on Losses for Capital Account Purposes. Notwithstanding anything in Section 10.01(a) to the contrary, the Managers will
not allocate any item of loss or deduction to a Member that would cause or increase a deficit balance in such Member’s Capital
Account (as increased by such Member’s share of “partnership minimum gain” and “partner nonrecourse debt
minimum gain”, as such terms are defined in Regulations Section 1.704-2 and applied to the Members of the Company),
and will make special allocations of the Profits or Losses of the Company among the Members as necessary to cause the allocations
under this Section 10.01 to be respected under Code Section 704(b) and Regulations Section 1.704 1(b)(1). The Managers
shall, to the extent possible and in whatever manner they deem appropriate, make subsequent curative allocations of other items
of income, gain, loss and deduction to offset any such special tax allocations.

 

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

 

(a)          Minimum
Gain Chargeback. Notwithstanding any other provision of this Article 10, if there is a net decrease in Company Minimum Gain
during any Company Fiscal Year, each Member shall be specially allocated items of Company income and gain for such year (and, if
necessary, subsequent years) in an amount equal to such Member’s share of the net decrease in Company Minimum Gain, determined
in accordance with Regulations Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made in proportion
to the respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined
in accordance with Section 1.704-2(f) of the Regulations. This Section 10.02(a) is intended to comply with the minimum
gain chargeback requirement in such Section of the Regulations and shall be interpreted consistently therewith.

 

(b)          Member
Minimum Gain Chargeback. Notwithstanding any other provision of this Article 10, except Section 10.02(a), if there is
a net decrease in Member Minimum Gain attributable to a Member Nonrecourse Debt during any Company Fiscal Year, each Member who
has a share of the Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Regulations
Section 1.704-2(i)(5), shall be specially allocated items of Company income and gain for such year (and, if necessary, subsequent
years) in an amount equal to such Member’s share of the net decrease in Company Minimum Gain attributable to such Member
Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(4). Allocations pursuant to the previous sentence
shall be made in proportion to the respective amounts required to be allocated to each Member pursuant thereto. The items to be
so allocated shall be determined in accordance with Section 1.704-2(i)(4) of the Regulations. This Section 10.02(b) is
intended to comply with the minimum gain chargeback requirement in such Section of the Regulations and shall be interpreted
consistently therewith.

 

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(c)          Qualified
Income Offset. In the event any Member unexpectedly receives any adjustments, allocations, or Distributions described in Regulations
Sections 1.704-1(b)(2)(ii)(d)(4), (5), or (6), items of Company income and gain shall be specially allocated to each such Member
in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the Adjusted Capital Account Deficit
of such Member as quickly as possible, provided that an allocation pursuant to this Section 10.02(c) shall be made if and
only to the extent that such Member would have an Adjusted Capital Account Deficit after all other allocations provided for in
this Article 10 have been tentatively made as if this Section 10.02(c) were not in the Agreement.

 

(d)          Gross
Income Allocation. In the event any Member has a deficit Capital Account at the end of any Company Fiscal Year that is in excess
of the sum of (i) the amount such Member is obligated to restore, and (ii) the amount such Member is deemed to be obligated to
restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Member shall
be specially allocated items of Company income and gain in the amount of such excess as quickly as possible, provided that an allocation
pursuant to this Section 10.02(d) shall be made if and only to the extent that such Member would have a deficit Capital Account
in excess of such sum after all other allocations provided for in this Article 10 have been tentatively made as if Section 10.02(c)
hereof and this Section 10.02(d) were not in the Agreement.

 

(e)          Nonrecourse
Deductions. Nonrecourse Deductions for any fiscal year or other period shall be specially allocated to the Members in accordance
with their respective Capital Percentages.

 

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

 

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

 

10.03     Curative
Allocations.

 

(a)          The
allocations set forth in Sections 10.01(b) and 10.2 (the “Regulatory Allocations”) are intended to comply with certain
requirements of the Regulations. It is the intent of the Members that, to the extent possible, all Regulatory Allocations shall
be offset either with other Regulatory Allocations or with special allocations of other items of Company income, gain, loss or
deduction pursuant to this Section 10.03. Therefore, notwithstanding any other provision of this Article 10 (other than the
Regulatory Allocations), the Managers shall make such offsetting special allocations of Company income, gain, loss or deduction
in whatever manner they determine appropriate so that, after such offsetting allocations are made, each Member’s Capital
Account balance is, to the extent possible, equal to the Capital Account balance such Member would have had if the Regulatory Allocations
were not part of the Agreement and all Company items were allocated pursuant to Section 10.01.

 

    	32

    	 

    

 

(b)          The
Managers shall have reasonable discretion, with respect to each Company Fiscal Year, to (i) apply the provisions of Section 10.03(a)
hereof in whatever manner is likely to minimize the economic distortions that might otherwise result from the Regulatory Allocations,
and (ii) divide all allocations pursuant to Section 10.03(a) hereof among the Members in a manner that is likely to minimize
such economic distortions.

 

10.04     Tax
Allocations.

 

(a)          Except
as set forth in this Section 10.04, allocations for income tax purposes of items of income, gain, loss, deduction, and credits,
and basis therefor, shall be made in the same manner as allocations for book purposes set forth in Sections 10.01, 10.02 and 10.03
hereof. In applying this Section 10.04, each item of income, gain, expense and loss for a period not specially allocated shall
be allocated in the same proportions as the allocation of Profits and Losses for such period.

 

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

 

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

 

(d)          In
accordance with Sections 704(b) and 704(c) of the Code and applicable Treasury Regulations, including Treasury Regulations Section 1.704-1(b)(4)(i),
items of income, gain, deduction and loss with respect to any property that is properly reflected on the books of the Company at
a book value that differs from the adjusted tax basis of such property within the meaning of the Regulation 1.704-1(b)(2)(iv)(g)(1)
(“Book Property”) (and, if necessary, any other property of the Company) shall, solely for tax purposes, be allocated
among the Members so as to take account of any variation between the adjusted basis of the Book Property to the Company for federal
income tax purposes and its book value.

 

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

 

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(f)          The
items of income, gain, deduction and loss for tax purposes allocated to the Members pursuant to this Section 10.04 shall not
be reflected in the Members’ Capital Accounts. Any elections or other decisions relating to such allocations shall be made
by the Managers in any manner that reasonably reflects the purpose and intent of this Agreement and is consistent with the economic
arrangement among the Members.

 

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

 

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

 

ARTICLE
11.

BOOKS AND RECORDS

 

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

 

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

 

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

 

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

 

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

 

(d)          Copies
of the Company’s federal, state and local income tax returns and reports, if any, for the three most recent years;

 

(e)          Copies
of the Company’s written Operating Agreement, together with any amendments thereto;

 

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

 

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The books and records
shall at all times be maintained at the principal office of the Company and shall be open to the reasonable inspection and examination
of the Members, Economic Interest Owners, or their duly authorized representatives during reasonable business hours.

 

11.03     Reports
and Financial Statements.

 

(a)          Within
fifteen (15) days of the end of each Fiscal Year, the TriBridge Member shall cause each Member to be furnished with the following
annual reports computed as of the last date of the Fiscal Year: (i) an unaudited balance sheet of the Company; (ii) an unaudited
statement of the Company’s profit and loss; and (iii) a statement of the Members’ Capital Accounts and changes therein
in such Fiscal Year.

 

(b)          Within
fifteen (15) days of the end of each quarter of each Fiscal Year, the TriBridge Member shall cause to be furnished to the BR Member
such information as reasonably requested by the BR Member, and to the extent not readily available, which may be reasonably prepared
by the TriBridge Member at the expense of the Company, as is necessary for any REIT Member (whether a direct or indirect owner)
to determine its qualification as a REIT and its compliance with REIT Requirements as shall be requested by the BR Member. Further,
the TriBridge Member shall cooperate in a reasonable manner at the request of any Member, at the expense of the Company, to work
in good faith with any designated accountants or auditors of such Member or its Affiliates so that such Member or its Affiliate
is able to comply with any public reporting, attestation, certification and other requirements under the Securities Exchange Act
of 1934, as amended, applicable to such entity, and to work in good faith with the designated accountants or auditors of the Member
or any of its Affiliates in connection therewith, including for purposes of testing internal controls and procedures of such Member
or its Affiliates.

 

11.04     Tax
Returns. The BR Member shall cause the preparation and timely filing of all tax returns required to be filed by the Company
pursuant to the Code and all other tax returns deemed necessary and required in each jurisdiction in which the Company does business
and shall submit such returns to the Members for their review, comment and approval at least ten (10) days prior to the due date
or extended due date thereof and shall thereafter cause the same to be filed in a timely manner (including extensions). No later
than the due date or extended due date, the BR Member shall deliver or cause to be delivered to each Member a copy of the tax returns
for the Company and such Subsidiaries with respect to such Fiscal Year, together with such information with respect to the Company
and such Subsidiaries as shall be necessary for the preparation by such Member of its U.S. federal and state income or other tax
and information returns.

 

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ARTICLE
12.

TRANSFERABILITY

 

12.01     General
Prohibition. Except as provided in Sections 12.02 and 12.06 hereof, in which event no consent from any party shall be required
to effectuate the transfer(s) described therein, no Member or Economic Interest Owner may assign, convey, sell, transfer, liquidate,
encumber, or in any way alienate (collectively a “Transfer”), all or any part of its Interest without the prior written
consent of the Members, which consent may be given or withheld in the sole discretion of any Member; provided, however, that nothing
contained herein shall prohibit any transfers of direct or indirect equity interests in the Members so long as, in the case of
the TriBridge Member, such transfers do not result in a TriBridge Change of Control. Any attempted Transfer of all or any
portion of an Interest without the necessary consent, or as otherwise permitted hereunder, shall be null and void and shall have
no effect whatsoever. Upon the transfer of a Membership Interest in accordance with this Article 12, the Capital Percentages of
the transferring Member and of the transferee shall be adjusted accordingly.

 

12.02     Affiliate
Transfers. Notwithstanding anything to the contrary contained in this Agreement, the following Transfers shall not require
the approval set forth in Section 12.01, to the extent otherwise permissible under the Bridge Loan or any subsequent Loan:

 

(a)          Any
Transfer by a BR Member or a Bluerock Transferee of up to one hundred percent (100%) of its Interest to any Affiliate of Bluerock
Real Estate, L.L.C. that has sufficient capital to perform the obligations of the transferring BR Member hereunder, including but
not limited to (A) Bluerock Residential Growth REIT, Inc. (“BR REIT”) or any Person that is directly or indirectly
owned by BR REIT; (B) Bluerock Special Opportunity + Income Fund, LLC (“BR SOIF”) or any Person that is directly
or indirectly owned by BR SOIF; (C) Bluerock Special Opportunity + Income Fund II, LLC (“BR SOIF II”) or any
Person that is directly or indirectly owned by BR SOIF II, (D) Bluerock Special Opportunity + Income Fund III, LLC (“BR SOIF
III”) or any Person that is directly or indirectly owned by BR SOIF III, (E) Bluerock Growth Fund, LLC (“BR Growth”)
or any Person that is directly or indirectly owned by BR Growth, and/or (F) Bluerock Growth Fund II, LLC (“BR Growth II”)
or any Person that is directly or indirectly owned by BR Growth II (collectively, a “Bluerock Transferee”);
provided, that, following the date the BR REIT first acquires a direct or indirect common interest in the Company or the Project,
in all instances, BR REIT shall either retain, direct or indirectly, more than fifty percent (50%) of the ownership interests in
the BR Member or otherwise retain the power to control, directly or indirectly, the major activities of BR Member such that BR
REIT can consolidate the Project on its audited financial statements; and

 

(b)          Provided
only that the Parking Improvements are complete and the Project has reached Project Stabilization, any Transfer (other than a Transfer
that would result in a TriBridge Change of Control) by the TriBridge Member or a TriBridge Transferee of up to one hundred percent
(100%) of its Interest to any Affiliate of the TriBridge Member that has sufficient capital to perform the obligations of the TriBridge
Member hereunder (a “TriBridge Transferee”).

 

12.03     Conditions
of Transfer and Assignment. A transferee of an Interest pursuant to 12.01 or 12.02 shall become a Member only if the following
conditions have been satisfied:

 

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

 

(b)          the
transferee must have executed a written agreement, in form and substance satisfactory to the Managers, to assume all of the duties
and obligations of the transferor under this Operating Agreement with respect to the transferred Interest and to be bound by and
subject to all of the terms and conditions of this Operating Agreement;

 

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

 

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

 

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

 

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

 

12.05     Successors
as to Economic Rights. References in this Operating Agreement to Members shall also be deemed to constitute a reference to
Economic Interest Owners where the provision relates to economic rights and obligations. By way of illustration and not limitation,
such provisions would include those regarding Capital Accounts, distributions, allocations, and contributions. A transferee shall
succeed to the transferor’s Capital Contributions and Capital Account to the extent related to the Economic Interest transferred,
regardless of whether such transferee becomes a Member.

 

12.06     Buy/Sell.

 

(a)          In
the event the TriBridge Member and BR Member are deadlocked and are unable to agree unanimously on any Major Decision, and the
TriBridge Member and BR Member are unable through good faith and the exercise of their reasonable efforts to break such deadlock
for a period of fifteen (15) days following notice from such Member to the other Member that a deadlock exists with regard to a
Major Decision, the deadlock may be broken by the invocation of the provisions of this Section 12.06; provided, however, except
as otherwise provided in Section 6.05, this Section 12.06 may be invoked if and only if such deadlock occurs after the second (2nd)
anniversary of the first date upon which the Project achieves Project Stabilization. Prior to invoking the provisions of this Section,
the TriBridge Member and BR Member shall in good faith meet within fifteen (15) days of such deadlock, and use their reasonable
efforts to resolve any disagreements regarding any Major Decision. As used in this Section 12.06, “deadlock” shall
mean the inability of the TriBridge Member and BR Member to unanimously agree with respect to a Major Decision.

 

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(b)          Either
Member may initiate the buy/sell procedure by providing a written notice (the “Value Notice”) to the other Member.
The Member which initiates the buy/sell procedure, is referred to herein as the “Offeror.” The Member who receives
the Value Notice is referred to herein as the “Offeree.” The Value Notice shall include an offer by the Offeror to
purchase all (and not less than all) of the Membership Interest(s) owned by the Offeree and an offer by the Offeror to sell all
(and not less than all) of the Membership Interest(s) owned by the Offeror to the Offeree, based upon an amount representing the
Offeror’s estimate of the gross sales price at which the Project would be sold (the “Stated Amount”), and which shall
be used in the calculations of the purchase price of the Membership Interest(s) pursuant to Section 12.06(e).

 

(c)          The
Offeree shall have thirty (30) days from its receipt of the Value Notice to provide a written notice (the “Election Notice”)
to the Offeror stating either that the Offeree will sell all (and not less than all) its Membership Interest(s) to the Offeror
or that the Offeree will purchase all (and not less than all) the Offeror’s Membership Interest(s) at the purchase price
referenced in Section 12.06(b) hereof. If the Offeree fails to give a timely Election Notice, the Offeree shall be deemed to have
elected to sell all (and not less than all) its Membership Interest(s) to the Offeror. The Election Notice shall specify the date
of closing (the “Buy-Sell Closing Date”), which date shall be at least thirty (30) days after the giving of the Election
Notice, but in any event not later than the ninetieth (90th) day after such notice. If the Offeree fails to provide an Election
Notice, the Buy-Sell Closing Date shall be held on the first Business Day which is at least ninety (90) days after the giving of
the Value Notice.

 

(d)          The
Member (or Members) that finally becomes obligated to sell its or their Membership Interest(s) is sometimes referred to herein
collectively as the “Seller.” The Member that finally becomes obligated to purchase the other Member’s or Members’
Membership Interest(s) is sometimes referred to herein as the “Buyer.”

 

(e)          The
aggregate purchase price for the Seller’s Membership Interest(s) pursuant to this Section 12.06 shall be that amount which
would be distributed to the Seller pursuant to Section 9.01 above (after giving effect to all applicable provisions of this Agreement,
but after liquidating all Reserves then existing and without establishing any additional Reserves) if all of the property then
held by the Borrower were sold on the Buy-Sell Closing Date for a gross sales price equal to the Stated Amount and all liabilities
and obligations of the Borrower were satisfied from the proceeds from such sales price and any remaining proceeds were distributed
to the Members in accordance with Section 9.01. No Member shall be entitled to any sales fee or commission if either Member exercises
the buy/sell procedure set forth in this Section 12.06.

 

(f)           The
closing of a purchase of Membership Interest(s) pursuant to this Section 12.06 shall be held on the Buy-Sell Closing Date, subject
to the terms and conditions specified herein.

 

(g)          As
of the effective date of any transfer of a Membership Interest(s) pursuant to this Section 12.06, the Buyer shall assume all obligations
of the Seller with respect to the Membership Interest so transferred, including any liability of the Seller or any Affiliate thereof
with respect to any Company liabilities. Upon such transfer, the Seller’s rights and obligations under this Agreement shall
terminate with respect to such transferred Membership Interest, except as to indemnity rights of such Member under this Agreement
attributable to acts or events occurring prior to the effective date of such transfer.

 

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12.07     Escrow
and Closing of Buy-Sell.

 

(a)          Closing
Time and Location. Except as otherwise provided for in this Agreement, the closing of any offer of a Membership Interest between
the Members pursuant to Section 12.06 shall take place at a mutually agreed upon location in Atlanta, Georgia.

 

(b)          Required
Documents. Prior to or at the closing, Seller shall supply to Buyer all documents customarily required (or reasonably required
by Buyer) to make a good and sufficient conveyance of such Membership Interest to the Buyer, which documents shall be in form and
substance reasonably satisfactory to the Buyer and Seller. All payments shall be by wire transfer of immediately available funds.

 

(c)          Conditions
Precedent to Closing. The obligation of Buyer to pay the purchase price shall be conditioned upon the Membership Interest being
transferred free and clear of all liens, claims and encumbrances. This condition is for the sole benefit of Buyer and may be waived
by Buyer in whole or in part in its sole discretion.

 

(d)          Closing
Costs. Each party shall pay its own attorneys’ fees and expenses incurred in connection with the closing, and costs of
the escrow or closing, including, without limitation all premiums for title insurance and any escrow fees, recording charges, and
transfer taxes arising from the closing of the buy-sell transaction, shall be borne or allocated in the manner customary in the
area in which the Project is located and, to the extent no custom exists, shall be shared equally by Seller and Buyer. Unless previously
deducted in determining the price for the Membership Interest, the Buyer shall deduct from the price otherwise payable to the Seller
an amount equal to all liens, claims and encumbrances of a definite or ascertainable amount, if any, which encumber the Seller’s
Membership Interest being transferred which are not released or repaid on or prior to the closing (if Buyer elects to waive the
conditions set forth in Section 12.07(c)).

 

(e)          Warranty
of Title. The Seller shall represent, warrant and agree that its Membership Interest being sold hereunder is free of all liens,
claims and encumbrances (except liens, claims or encumbrances that were deducted in determining the applicable price of the Membership
Interest) and that the Seller shall defend, indemnify and hold harmless the Buyer from any such liens, claims and encumbrances.

 

(f)           Closing
of Buy-Sell Transaction. At the closing of a sale of a Membership Interest by one Member to the other Member pursuant to Section
12.06 hereof, the following shall occur:

 

(i)          The
Seller shall convey and assign to the Buyer or its designee the entire Membership Interest of the Seller, free and clear of all
liens, claims and encumbrances (other than liens, claims and encumbrances that were waived by Buyer and deducted in determining
the applicable price of the Membership Interest), and the Seller and the Buyer shall execute all documents which may be reasonably
required to give effect to the sale and purchase of such Membership Interest.

 

    	39

    	 

    

 

(ii)         The
Buyer shall pay or cause to be paid to the Seller the applicable purchase price for the Membership Interest being purchased in
cash or by wire transfer at the closing.

 

(iii)        Notwithstanding
any provision herein to the contrary, it shall be a condition or requirement of any offer and the closing to obtain a release of
the Seller and the Seller’s Affiliates from any personal liability arising out of any and all Loan Guaranties.

 

12.08     Default.

 

(a)          Events
of Default. The failure of a Member to perform any of the obligations set forth in Sections 12.06 or 12.07 with respect to
an offer of its Membership Interest or purchase of the other Member’s Membership Interest shall constitute an event of default
(“Event of Default”) on the part of the Member with respect to whom such failure occurs.

 

(b)          Remedies.
Upon the occurrence of an Event of Default, the non-defaulting Member may exercise, in addition to all other rights and remedies
provided in this Agreement or available at law or in equity, any one or more of the remedies provided for in Section 12.08 (c)
below.

 

(c)          Remedies
for Failure to Transfer Membership Interest.

 

(i)          Seller’s
Failure. In the event that the Seller fails to make conveyance of its Membership Interest pursuant to its obligations herein,
then the Buyer shall have the option: (A) to demand and receive specific performance
of the Seller’s obligations to convey its Membership Interest as provided for herein; (B) to recover damages on account of
the Seller’s failure to make conveyance (which rights shall be in addition to the right granted under subparagraph (A) above,
if the Buyer so elects); or (C) to terminate the obligations of the parties to proceed with the sale of the Membership Interest,
whereupon the position of the parties shall revert to the status quo ante as if no notice to purchase from either party to the
other had been given under the provisions of this Agreement.

 

(ii)         Buyer’s
Failure. In the event that the Buyer defaults in the closing of a purchase of a Membership Interest as herein provided, then
the Seller shall have the option to: (A) elect to purchase the Buyer’s Membership Interest on the terms and conditions otherwise
set forth herein, by notice to the Buyer of the Seller’s intention so to do, given within fifteen (15) days after such default
in which event the Seller shall become the Buyer and the Buyer shall become the Seller, and all the applicable terms, conditions
and provisions of this Agreement with respect to such sales shall govern, except that the closing thereof shall take place thirty
(30) days after such date of notice from the Seller (now the Buyer) to the Buyer (now the Seller) and except that the purchase
price shall be ten percent (10%) less than the price which the Seller (now the Buyer) would have had to pay had such Buyer (now
the Seller) originally elected to sell its Membership Interest; (B) terminate the Seller’s obligation to convey its Membership
Interest to the Buyer by notice to the Buyer, in which case the position of the parties shall revert to the status quo ante as
if no notice from either party to the other had been given under the provisions of this Agreement; or (C) sue Buyer in the appropriate
court for specific performance.

 

    	40

    	 

    

 

12.09     Specific
Performance. It is expressly agreed that the remedy at law for breach of any of the obligations set forth in this Article 12
is inadequate in view of (i) the complexities and uncertainties in measuring the actual damages that would be sustained by reason
of the failure of a party to comply fully with each of said obligations, and (ii) the uniqueness of each Member’s business
and assets and the relationship of the Members. Accordingly, each of the aforesaid obligations and restrictions shall be, and is
hereby expressly made, enforceable by specific performance.

 

ARTICLE
13.

ISSUANCE OF ADDITIONAL MEMBERSHIP
INTERESTS

 

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

 

ARTICLE
14.

DISSOLUTION AND TERMINATION

 

14.01     Dissolution.

 

(a)          The
Company shall be dissolved upon the occurrence of any of the following events:

 

i.            by
the unanimous written agreement of all Members; or

 

ii.           by
a decree of judicial dissolution under the Act.

 

To the maximum extent
permitted under the Act, the Company shall not dissolve upon an event of dissociation with respect to the last remaining Member,
but instead the legal successor to such Member shall automatically become a Member of the Company with all rights and obligations
appurtenant thereto.

 

(b)          If
a Member who is an individual dies or a court of competent jurisdiction adjudges him to be incompetent to manage his person or
his property, the Member’s executor, administrator, guardian, conservator, or other legal representative may exercise all
of the Member’s rights for the purpose of settling his estate or administering his property, but such person shall be a holder
of an Economic Interest and shall not have the rights of a Member. Further, such Person shall be subject to the provisions of Article
12.

 

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

 

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14.03     Winding
Up, Liquidation and Distribution of Assets.

 

(a)          Upon
dissolution, an accounting shall be made by the Company’s independent accountants of the accounts of the Company and of the
Company’s assets, liabilities and operations, from the date of the last previous accounting until the date of dissolution.
The Managers or if none, the Person or Persons selected by the Members (the “Liquidators”) shall immediately proceed
to wind up the affairs of the Company.

 

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

 

i.            Sell
or otherwise liquidate all of the Company’s assets as promptly as practicable;

 

ii.          Allocate
any profit or loss resulting from such sales to the Members and Economic Interest Owners in accordance with Article 10 hereof as
if the Company had distributed all distributable Capital Proceeds in accordance with Article 9 hereof;

 

iii.         Discharge
all liabilities of the Company, including liabilities to Members and Economic Interest Owners who are creditors, to the extent
otherwise permitted by law, other than liabilities to Members and Economic Interest Owners for distributions, and establish such
Reserves as may be reasonably necessary to provide for contingent liabilities of the Company; and

 

iv.         Distribute
the remaining proceeds to the Members in accordance with Section 9.01.

 

(c)          In
the final Fiscal Year of the Company, before making the final distributions provided for in Section 14.03(b)(iv), Profits and Losses
shall be credited or charged to Capital Accounts of the Members (which Capital Accounts shall be first adjusted to take into account
all distributions other than liquidating distributions made during the Fiscal Year) in the manner provided in Article 10. The allocations
and distributions provided for in this Agreement are intended to result in the Capital Account of each Member immediately prior
to the liquidation distributions of the Company’s assets pursuant to Section 14.03(b)(iv) being equal to the amount distributable
to such Member pursuant to Section 14.03(b)(iv). The Managers are authorized to make appropriate adjustments in the allocation
of Profits and Losses and, if necessary, items of gross income and gross deductions of the Company, for the year of liquidation
of the Company (or, if earlier, the year in which all or substantially all of the Company’s assets are sold, transferred
or disposed of) as necessary to cause the amount of each Member’s Capital Account immediately prior to the distribution of
the Company’s assets pursuant to Section 14.03(b)(iv) to equal the amount distributable to such Member pursuant to Section
14.03(b)(iv). Notwithstanding the foregoing, nothing in this Section 14.03(c) shall affect the amounts distributable to the Members
under Section 14.03(b)(iv).

 

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

 

(e)          Upon
completion of the winding up, liquidation and distribution of the assets, the Company shall be deemed terminated.

 

(f)           The
Liquidators shall comply with any applicable requirements of applicable law pertaining to the winding up of the affairs of the
Company and the final distribution of its assets.

 

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

 

14.05     Return
of Contribution Nonrecourse to Other Members. Except as provided by law or as expressly provided in this Operating Agreement,
upon dissolution, each Member shall look solely to the assets of the Company for the return of its Capital Contribution. If the
Company property remaining after the payment or discharge of the debts and liabilities of the Company is insufficient to return
the cash contribution of one or more Members, such Member or Members shall have no recourse against any other Member.

 

ARTICLE
15.

INDEMNIFICATION

 

15.01     Indemnification
by Company. The Managers, the Members and their respective members, managers, agents, employees and representatives (each,
an “Indemnitee”) shall be indemnified by the Company to the fullest extent permitted by law, against any losses, judgments,
liabilities, expenses and amounts paid in settlement of any claims sustained by it or any of them in connection with the Company
(each, a “Claim”), provided that (i) such course of conduct was, in good faith, intended to be in, and not opposed
to, the best interests of the Company and such liability or loss was not the result of willful misconduct, or a material breach
of this Agreement or gross negligence on the part of such Indemnitee, and (ii) any such indemnification will only be recoverable
from the assets of the Company and the Members shall not have any liability on account thereof except any obligations to return
distributions received from the Company that are required to be returned to the Company in respect of such indemnification obligations
under applicable law. No Member shall be authorized to make a call for Additional Capital Contributions to satisfy the Company’s
indemnification obligations under this Section 15.01.

 

15.02     Indemnification
by Members for Misconduct. In addition to any rights that may exist in the Backstop Agreement:

 

    	43

    	 

    

 

(a)          The
TriBridge Member hereby indemnifies, defends and holds harmless the Company, the BR Member, each Bluerock Transferee and each of
their subsidiaries and their officers, directors, members, managers, partners, shareholders, employees, agents and appointees from
and against all losses, costs, expenses, damages, claims and liabilities (including reasonable attorneys’ fees) incurred
to the extent arising out of any fraud, gross negligence or willful misconduct on the part of, or by, the TriBridge Member or its
Affiliates.

 

(b)          The
BR Member hereby indemnifies, defends and holds harmless the Company, the TriBridge Member, each TriBridge Transferee and each
of their subsidiaries and their officers, directors, members, managers, partners, shareholders, employees, agents and appointees
from and against all losses, costs, expenses, damages, claims and liabilities (including reasonable attorneys’ fees) incurred
to the extent arising out of any fraud, gross negligence or willful misconduct on the part of, or by, BR Member or its Affiliates.

 

ARTICLE
16.

MISCELLANEOUS PROVISIONS

 

16.01     Application
of Delaware Law. This Operating Agreement, and the application and interpretation thereof, shall be governed exclusively by
its terms and by the laws of the State of Delaware, and specifically the Act.

 

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

 

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

 

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

 

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

 

16.06     Rights
and Remedies Cumulative. The rights and remedies provided by this Operating Agreement are cumulative and the use of any one
right or remedy by any party shall not preclude or waive the right not to use any or all other remedies. Such rights and remedies
are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise.

 

16.07     Severability.
If any provision of this Operating Agreement or the application thereof to any person or circumstance shall be invalid, illegal
or unenforceable to any extent, the remainder of this Operating Agreement and the application thereof shall not be affected and
shall be enforceable to the fullest extent permitted by law.

 

    	44

    	 

    

 

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

 

16.09     Creditors.
None of the provisions of this Operating Agreement shall be for the benefit of or enforceable by any creditors of the Company or
by any Person not a party hereto.

 

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

 

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

 

16.12     Certification
of Non-Foreign Status. In order to comply with Section 1445 of the Code and the applicable Treasury Regulations thereunder,
in the event of the disposition by the Company of a United States real property interest as defined in the Code and Treasury Regulations,
each Member shall provide to the Company, an affidavit stating, under penalties of perjury, (i) the Member’s address, (ii) United
States taxpayer identification number, and (iii) that the Member is not a foreign person as that term is defined in the Code and
Treasury Regulations. Failure by any Member to provide such affidavit by the date of such disposition shall authorize the Managers
to withhold ten percent (10%) of each such Member’s distributive share of the amount realized by the Company on the disposition.

 

16.13     Notices.
Any and all notices, offers, demands or elections required or permitted to be made under this Agreement (“Notices”)
shall be in writing and shall be delivered either by personally delivering it by hand or Federal Express or similar commercial
courier service to the person to whom Notice is directed, or by electronic mail, or by depositing it with the United States Postal
Service, certified mail, return receipt requested, with adequate postage prepaid, addressed to the appropriate party (and marked
to a particular individual’s attention). Notice shall be deemed given and effective (i) when hand-delivered if by personal
delivery or Federal Express or similar commercial courier service, (ii) as of the date and time it is transmitted by electronic
mail if there is a written or electronic record of the date, time and email address to which the Notice was sent, or (iii) on the
third (3rd) business day (which term means a day when the United States Postal Service, or its legal successor (“Postal Service”)
is making regular deliveries of mail on all of its regularly appointed week-day rounds in Dover, Delaware) following the day (as
evidenced by proof of mailing) upon which such Notice is deposited, postage pre-paid, certified mail, return receipt requested,
with the Postal Service. Rejection or other refusal by the addressee to accept the Notice shall be deemed to be receipt of the
Notice. In addition, the inability to deliver the Notice because of a change of address of the party of which no Notice was given
to the other party as provided on Exhibit A hereof shall be deemed to be the receipt of the Notice sent. The addresses to
which Notice is to be sent shall be those set forth below on Exhibit A or such other address as shall be designated in writing
to Managers. Managers shall keep a list of all designated addresses and such list shall be available to any Member upon request
thereof. Such addresses may be changed by designating the change of address to the Managers in writing.

 

    	45

    	 

    

 

16.14     Amendments.
Any amendment to this Agreement shall be made in writing and signed by Members holding all of the Capital Percentages; provided,
however, the Managers shall have the right upon any transfer of Membership Interests or admission of any new Member in accordance
herewith to unilaterally amend this Agreement without a writing signed by all Members to substitute Exhibit “A”
attached hereto with an updated Exhibit “A” reflecting all of the current Members and their respective Capital
Percentages.

 

16.15     Invalidity.
The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof,
and the Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted. If any particular
provision herein is construed to be in conflict with the provisions of the Act, the Act shall control and such invalid or unenforceable
provisions shall not affect or invalidate the other provisions hereof, and this Agreement shall be construed in all respects as
if such conflicting provision were omitted.

 

16.16     Captions.
Titles and captions are inserted for convenience only and in no way define, limit, extend or describe the scope or intent of this
Agreement or any of its provisions and in no way are to be construed to affect the meaning or construction of this Agreement or
any of its provisions.

 

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

 

16.18     Governing
Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.
The parties hereto agree that any suit brought to enforce this Agreement shall be venued only in any court of competent jurisdiction
in the State of New York, Borough of Manhattan, and, by execution and delivery of this Agreement, each of the parties to this Agreement
hereby irrevocably accepts and waives all objection to, the exclusive jurisdiction of the aforesaid courts in connection with any
suit brought to enforce this Agreement, and irrevocably agrees to be bound by any judgment rendered thereby. Each of the parties
hereto hereby agrees that service of process in any such proceeding may be made by giving notice to such party in the manner and
at the place set forth in 16.13 herein. The parties irrevocably and voluntarily waive any right they may have to a trial by jury
in respect of any claim arising under this Agreement.

 

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

 

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

 

    	46

    	 

    

 

16.21     Investment
Representations and Indemnity Agreement. In addition to the restrictions on transfer set forth above, each Member understands
that Members must bear the economic risk of this investment for an indefinite period of time because the Membership Interests are
not registered under the Securities Act of 1933, as amended (the “1933 Act”) or the securities laws of any state or
other jurisdiction. Each Member has been advised that there is no public market for the Membership Interests and that the Membership
Interests are not being registered under the 1933 Act upon the basis that the transactions involving its sale are exempt from such
registration requirements and that reliance by the Company on such exemption is predicated in part on the Member’s representations
set forth in this Agreement. Each Member acknowledges that no representations of any kind concerning the Property or the future
intent or ability to offer or sell the Membership Interest in a public offering or otherwise have been made to the Member by the
Company or any other Person or entity. Each Member understands that the Company makes no covenant, representation or warranty with
respect to the registration of securities under the Securities Exchange Act of 1933, as amended, or its dissemination to the public
of any current financial or other information concerning the Company. Accordingly, each Member acknowledges that there is no assurance
that there will ever by any public market for the Membership Interests, and that the Member may not be able to publicly offer or
sell any thereof. Furthermore, each Member (and his/her/its assignees and transferees) agrees to indemnify the other Members, the
Managers, the Company and any director, officer, employee, affiliate or legal counsel of such parties, from any and all losses,
damage, liability, claims and expenses incurred, suffered or sustained by any of them in any manner because of the falsity of any
representation contained in this Section including, without limitation, liability for violation of the Securities Laws of the United
States or of any state which violation would not have occurred had such representation been true.

 

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

 

16.23     Entire
Agreement. This Agreement, along with the Cost-Sharing Agreement, contains the entire understanding among the parties hereto
with respect to the subject matter hereof. This Agreement supersedes all prior and contemporaneous agreements and understandings,
inducements or conditions, express or implied, oral or written, except for the Cost-Sharing Agreement, which shall survive in accordance
with its terms.

 

(Signatures on following
page)

 

    	47

    	 

    

 

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

 

	 	BR MEMBER:
	 	 
	 	BR WHETSTONE MEMBER, LLC
	 	 	 	 
	 	By: 	Bluerock Special Opportunity + Income Fund III,

LLC, its Manager
	 	 	 	 
	 	 	By	BR SOIF Manager III, LLC, its

Manager

 

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

 

	 	TRIBRIDGE MEMBER:
	 	 
	 	TRIBRIDGE CO-INVEST 27, LLC,
	 	a Georgia limited liability company
	 	 	 	 
	 	By:	TriBridge Investments II, LLC,
	 	 	a Georgia limited liability company,
	 	 	its Managing Member
	 	 	 	 
	 	 	By:	TBR 2015, LLC,
	 	 	 	a Georgia limited liability company,
	 	 	 	its Managing Member

 

	 	By:	/s/ Robert H. West
	 	Name:	Robert H. West
	 	Title:	Authorized Signatory

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

    	48

    	 

    

 

	 	PROJECT MANAGER:
	 	 
	 	
        TBR WHETSTONE PROJECT

MANAGEMENT, LLC,

        a North Carolina limited liability company

	 	 	 	 
	 	By:	
        TriBridge Investments II, LLC,

        a Georgia limited liability company,

        its sole member

	 	 	 	 
	 	 	By:	TBR 2015, LLC, a Georgia limited

liability Company, its managing

member

 

	 	By:	/s/ Lee Walker
	 	Name:	Lee Walker
	 	Title:	Authorized Signatory

 

    	49

    	 

    

 

List of Exhibits:

 

	Exhibit A	Information Regarding Members
	Exhibit B	Property
	Exhibit C	Initial Operating Budget
	Exhibit D	Total Project Budget

 

 

 

    	50

    	 

    

 

Exhibit A

 

INFORMATION REGARDING MEMBERS

 

	Member Name 
and Address	 	Initial 
Capital Contribution	 	 	Capital 
Percentage	 
	 	 	 	 	 	 	 
	BR WHETSTONE MEMBER, LLC
 c/o Bluerock Real Estate, LLC
 712 Fifth Avenue, 9th Floor
 New
York, NY 10019
	 	$	12,427,567.55	 	 	 	92.5	%
	 	 	 	 	 	 	 	 	 
	TriBridge Co-Invest 27, LLC 
1575 Northside Drive 
Building 100, Suite 200 
Atlanta, GA 30318 	 	$	1,007,640.61	 	 	 	7.5	%
	 	 	 	 	 	 	 	 	 
	Total	 	$	13,435,208.16	 	 	 	100	%

 

MANAGEMENT COMMITTEE:

 

TriBridge Member

 

		1.	Steve Broome

		2.	Bobby West

 

BR Member

 

		1.	James Babb

		2.	Michael Konig

 

    	51

    	 

    

 

Exhibit B

 

LEGAL DESCRIPTION OF PROPERTY

 

FEE TRACK

 

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 are 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 TRACK

 

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 C

 

INITIAL OPERATING BUDGET

 

	Whetstone Stabilized Operating Budget	 	 	 
	 	 	 	 
	G&A	 	$	62,000	 
	Advertising	 	 	60,000	 
	Salaries & Rel.	 	 	320,000	 
	M&R	 	 	51,600	 
	Water/Sewer	 	 	82,000	 
	Utilities	 	 	59,000	 
	Cable Contract	 	 	125,500	 
	Turnkey	 	 	33,000	 
	Grounds/Pest/Trash	 	 	70,500	 
	Insurance	 	 	49,200	 
	Taxes	 	 	395,000	 
	CapEx Reserve	 	 	42,000	 
	Management Fee (3%)	 	 	105,000	 
	Operating Expenses Budget Total	 	$	1,454,800	 

 

    	 

    	 

    

 

Exhibit D

 

TOTAL PROJECT BUDGET

 

	Total Project Budget	 	 		 	 	 		 
	 	 	 	 	 	 	 	 	 
	Purchase Price	 	 	 	 	 	$	35,625,000	 
	Parking Gate Purchase Price Credit	 	 	 	 	 	 	(37,500	)
	Legal	 	 	 	 	 	 	192,926	 
	Insurance	 	 	 	 	 	 	49,173	 
	Title	 	 	 	 	 	 	35,978	 
	Survey	 	 	 	 	 	 	2,400	 
	ZumBrunnen (Equity PCA)	 	 	 	 	 	 	19,508	 
	Blackstone (Lender PCA, ESA, and ADA)	 	 	 	 	 	 	13,100	 
	TBR File Audit (including BR Travel)	 	 	 	 	 	 	15,000	 
	Appraisal	 	 	 	 	 	 	4,915	 
	Other Closing Costs	 	 	 	 	 	 	1,693	 
	Thalhimer	 	 	 	 	 	 	300,000	 
	TBR fee	 	 	 	 	 	 	360,000	 
	Key Bank bridge Loan Fee	 	 	 	 	 	 	88,016	 
	 	 	 	 	 	 	 	 	 
	Parking Improvements	 	 	 	 	 	 	 	 
	Hard Costs (incl. Gen. Cond.)	 	$	850,000	 	 	 	 	 
	Contingency	 	 	127,857	 	 	 	 	 
	Design	 	 	65,000	 	 	 	 	 
	Permitting	 	 	35,000	 	 	 	 	 
	Gen. Contractor Fee	 	 	65,000	 	 	 	 	 
	Project Mgmt Fee (5%) (Half funded at closing)	 	 	57,143	 	 	 	 	 
	Staging Easement ($25k funded at closing)	 	 	100,000	 	 	 	 	 
	Parking Gate Installation	 	 	37,500	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Parking Addition	 	 	 	 	 	$	1,337,500	 
	 	 	 	 	 	 	 	 	 
	Lease-Up Budget	 	 	 	 	 	 	 	 
	Collateral and additional marketing	 	$	20,000	 	 	 	 	 
	Dog Park	 	 	5,000	 	 	 	 	 
	Common Area Speakers	 	 	4,500	 	 	 	 	 
	Interactive Leasing touch screen	 	 	9,500	 	 	 	 	 
	Security Cameras	 	 	16,000	 	 	 	 	 
	Lease-Up Bonuses	 	 	26,000	 	 	 	 	 
	Pool Area Improvements	 	 	29,000	 	 	 	 	 
	Replace kitchen faucets	 	 	40,000	 	 	 	 	 
	Lease-Up Budget	 	 	 	 	 	$	150,000	 
	 	 	 	 	 	 	 	 	 
	Reserves / Contingency	 	 	 	 	 	$	425,000	 
	Total Project Budget	 	 	 	 	 	$	38,582,708Exhibit 10.2

 

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

BR
WHETSTONE Member, LLC 

 

A DELAWARE LIMITED LIABILITY COMPANY

 

    	 

    	 

    

 

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

BR
WHETSTONE Member, LLC

 

A DELAWARE LIMITED LIABILITY COMPANY

 

THE UNITS HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR UNDER THE SECURITIES LAWS OF ANY STATE
AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS.
THE UNITS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION, OR
ANY OTHER REGULATORY AUTHORITY. ACCORDINGLY, THESE SECURITIES MAY NOT BE RESOLD OR OTHERWISE TRANSFERRED OR CONVEYED IN THE ABSENCE
OF REGISTRATION OF THE SAME PURSUANT TO THE APPLICABLE SECURITIES LAWS UNLESS AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
IS FIRST OBTAINED THAT SUCH REGISTRATION IS NOT THEN NECESSARY. ANY TRANSFER CONTRARY HERETO SHALL BE VOID.

 

THIS
LIMITED LIABILITY COMPANY AGREEMENT OF BR WHETSTONE Member, LLC (herein referred to as the “Agreement”),
is made and entered into as of May 20, 2015 (the “Effective Date”), by and among BRG Whetstone Durham, LLC,
a Delaware limited liability company, as the Class A Member (“BRG”), and Bluerock Special Opportunity +
Income Fund III, LLC, a Delaware limited liability company (“SOIF III”), as the Class B Member (BRG and
SOIF III, together with any additional members hereinafter admitted, are referred to as the “Members”).

 

RECITALS

 

A.          The
Company was formed as a Delaware limited liability company in accordance with the Delaware Limited Liability Company Act, as amended
from time to time (the “Act”) on April 8, 2015.

 

B.          The
Company was formed to hold a membership interest in the Company Subsidiary (as defined below) (the “Subsidiary Interest”).

 

C.          The
Company Subsidiary currently holds (or will as of closing of the acquisition hold) all of the membership interests in BR-TBR Whetstone
Owner, LLC (the “Property Owner”) which will in turn own the fee interest in the Property (as defined below).

 

D.          The
Members desire to set forth their agreement and understanding with respect to the operation of the Company as a Delaware limited
liability company from and after the date hereof.

 

    	 

    	 

    

 

NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual promises, covenants, and conditions herein contained, the receipt and sufficiency
of which are hereby acknowledged, the undersigned Members hereby covenant and agree as follows:

 

ARTICLE
1

DEFINITIONS

 

For purposes of this
Agreement, the following terms have the meanings set forth below:

 

1.1         “Accountant”
shall mean the certified public accounting firm that, from time to time, represents the Company.

 

1.2         “Act”
has the meaning set forth in the preamble to this Agreement.

 

1.3         “Additional
Capital Contributions” shall have the meaning set forth in Section 5.3.

 

1.4         “Adjustment
Period” shall mean a period of time as follows: The first Adjustment Period shall commence on the date hereof and each
succeeding Adjustment Period shall commence on the date immediately following the last day of the immediately preceding Adjustment
Period; each Adjustment Period shall end on the earliest to occur after the commencement of such Adjustment Period of (i) the
last day of each Fiscal Year as now exists or as may, from time to time, be selected by the Manager, (ii) a Capital Date, (iii)
the day immediately preceding the date of the “liquidation” of a Member’s Membership Interest in the Company
(within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Treasury Regulations), (iv) the day immediately preceding the date
of an increase in the Membership Interest of a Member, or (v) the date on which the Company is terminated under Article 3 or Section
12.1 of this Agreement.

 

1.5         “Affiliate”
shall mean (i) any Entity more than five percent (5%) of the issued and outstanding stock of which, or more than five percent
(5%) interest in which, is owned, directly or indirectly, by any Member or (ii) any Entity that now or hereafter owns, directly
or indirectly, more than a ten percent (10%) interest in the Company or in any Member or (iii) any Entity who is an agent, trustee,
officer, director, employee, member or shareholder or member of the family (or any member of the family of any agent, trustee,
officer, director, employee, partner, member or shareholder) of the Company or of any Member or (iv) any Entity that, directly
or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company
or any Member. The term “control” (including the terms “controlled by” and “under common control
with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies
of an Entity, whether through the ownership of voting securities, by contract or otherwise. The term “family” shall
be deemed to include spouses, children, parents, brothers and sisters, and the spouse, children, parents, brothers and sisters
of such spouse’s children, parents, brothers and sisters.

 

    	2

    	 

    

 

1.6         “Agreement”
shall mean this Limited Liability Company Agreement of BR Whetstone Member, LLC, as it now exists and as it may from time to time
hereafter be amended, restated or supplemented or otherwise modified from time to time.

 

1.7         “Annual
Financial Statements” shall have the same meaning as set forth in Section 13.3 hereof.

 

1.8         “Bankruptcy”
means, with respect to any Person, if such Person (i) makes an assignment for the benefit of creditors, (ii) files a voluntary
petition in bankruptcy, (iii) is adjudged a bankrupt or insolvent, or has entered against it an order for relief, in any bankruptcy
or insolvency proceedings, (iv) files a petition or answer seeking for itself any reorganization, arrangement, composition, readjustment,
liquidation or similar relief under any statute, law or regulation, (v) files an answer or other pleading admitting or failing
to contest the material allegations of a petition filed against it in any proceeding of this nature, (vi) seeks, consents to or
acquiesces in the appointment of a trustee, receiver or liquidator of the Person or of all or any substantial part of its properties,
or (vii) if one hundred twenty (120) days after the commencement of any proceeding against the Person seeking reorganization,
arrangement, composition, readjustment, liquidation or similar relief under any statute, law or regulation, if the proceeding
has not been dismissed, or if within ninety (90) days after the appointment without such Person’s consent or acquiescence
of a trustee, receiver or liquidator of such Person or of all or any substantial part of its properties, the appointment is not
vacated or stayed, or within ninety (90) days after the expiration of any such stay, the appointment is not vacated.

 

1.9         “Basic
Documents” means the (a) documents to be executed by the Property Owner in favor of the Lender as of the closing of
the Loan, and all documents and certificates contemplated thereby or delivered in connection therewith; and (b) all similar documentation
required by and delivered to any successor Lender and/or Mortgagee.

 

1.10       “Benefit
Plan Investor” means (i) any “employee benefit plan” as defined by the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), regardless of whether it is subject to ERISA, (ii) any plan as defined in
Section 4975 of the IRC, and (iii) any entity deemed for any purpose of ERISA or Section 4975 of the IRC to hold assets of any
such employee benefit plan or plan due to investments made in such entity by such employee benefit plans and plans.

 

1.11       “BGF”
shall mean Bluerock Growth Fund, LLC, a Delaware limited liability company.

 

1.12       “BGF
II” shall mean Bluerock Growth Fund II, LLC, a Delaware limited liability company.

 

1.13       “BRG”
shall have the meaning set forth in the introductory paragraph above.

 

1.14       “Budgeted
Development Capital Calls” shall have the meaning as set forth in Section 5.3(a).

 

    	3

    	 

    

 

1.15       “Capital
Accounts” shall mean the capital accounts established by the Company for each Member pursuant to Section 5.5 hereof.
Capital Accounts shall be determined and maintained throughout the full term of the Company for each Member in accordance with
the rules of this definition. The balance of each Member’s Capital Account, as of any particular date, shall be an amount
equal to the sum of the following:

 

(a)          The
cumulative amount of cash and the value of all other property that has been contributed to the capital of the Company by such
Member as a Capital Contribution; plus

 

(b)          The
cumulative amount of the Company’s Net Profit and Gain that has been allocated to such Member hereunder; minus

 

(c)          The
cumulative amount of the Company’s Net Loss and Loss that has been allocated to such Member hereunder; and minus

 

(d)          The
cumulative amount of cash and the agreed upon value of all other property that has been distributed by the Company to such Member
(other than in repayment of any loans).

 

A Member’s Capital Account shall
also be increased or decreased to reflect any items described in Section 1.704-1(b)(2)(iv) of the Treasury Regulations that are
required to be reflected in such Member’s Capital Account and that are not otherwise taken into account in computing such
Capital Account under this definition.

 

1.16       “Capital
Contributions” shall mean all amounts paid by a Member for its Membership Interests and any Additional Capital Contributions
or Class A Priority Capital Contributions made by a Member.

 

1.17       “Capital
Date” means the date on which any Gain or Loss is recognized by the Company.

 

1.18       “Capital
Transaction” shall mean any (i) direct or indirect sale or other disposition of the Property or substantially all of
the assets of the Company (including the Subsidiary Interest, the membership interests held by Company Subsidiary in Property
Owner, or the Property) outside the ordinary and customary course of business, (ii) payment, on account of a casualty, for the
Property or substantially all of the assets of the Company, Company Subsidiary or Property Owner to the extent such assets are
not replaced or repaired, (iii) refinancing of any indebtedness incurred by the Company, the Company Subsidiary or Property Owner,
including the Obligations, and (iv) similar items or transactions relating to the Property, the Subsidiary Interest, the membership
interests held by Company Subsidiary in Property Owner, or substantially all of the assets of the Company, the Company Subsidiary
or Property Owner, the proceeds of which under generally accepted accounting principles are deemed attributable to capital.

 

1.19       “Cash
Flow From Operations” shall mean, for a given period, the amount of cash received by the Company from the Company Subsidiary
and/or Property Owner other than on account of a Capital Transaction, minus administrative expenses of the Company, all determined
in accordance with cash basis accounting principles, consistently applied.

 

    	4

    	 

    

 

1.20       “Certificate
of Formation” means the Certificate of Formation of the Company filed with the Secretary of State of the State of Delaware
on April 8, 2015, as amended or amended and restated from time to time.

 

1.21       “Class
A Capital Commitment” shall mean the amount of the Capital Contribution committed to be made by the Class A Member (including
the projected amount of the Class A Preferred Reserve that will be required of the Company), exclusive of any Class A Priority
Capital Contribution, as set forth on Schedule I. The Class A Capital Commitment represents the total amount of projected
capital, together with the Class B Members’ initial Capital Contributions, that will be required of the Company by the Company
Subsidiary and/or Property Owner to develop and lease-up the Project, as estimated under the Project Budget.

 

1.22       “Class
A Capital Contributions” shall mean the amount of the Capital Contribution made by a Class A Member (including any Class
A Preferred Reserve), but exclusive of any Class A Priority Capital Contribution.

 

1.23       “Class
A Mandatory Redemption Date” shall mean that date which is the earlier of six (6) months following the maturity date
of the Loan (including the exercise of any extensions, but not any refinancings thereof), or any earlier acceleration or due date
thereof.

 

1.24       “Class
A Member” means BRG and, with respect to those Units transferred from a Class A Member, any Person who has been admitted
as a Substitute Member as to the Class A Membership Interest transferred. An Assignee of a Membership Interest who receives Units
from a Class A Member shall not be considered a Class A Member.

 

1.25       “Class
A Membership Interest” means with respect to any Class A Member the membership interest allocated to such Class A Member,
which membership interest will be determined by using a fraction in which the number of Units owned by such Class A Member is
the numerator and the aggregate number of Units that are then owned by all Class A Members is the denominator. The foregoing determination
is also referred to as “Pro Rata as to the Class A Membership Interest”.

 

1.26       “Class
A Preferred Reserve” shall have the meaning set forth in Section 5.2.

 

1.27       “Class
A Priority Capital Contribution” shall have the meaning set forth in Section 5.3(b).

 

1.28       “Class
A Sinking Fund” shall have the meaning set forth in Section 6.6(a).

 

1.29       “Class
A Units” means the Units held by the Class A Members.

 

1.30       “Class
A Unit Redemption Amount” shall mean, as of the date of redemption of the Class A Units pursuant to Section 10.5, the
sum of (i) the aggregate Net Capital Contributions of the Class A Members plus (ii) the accrued but unpaid Current Class A Return
and the accrued but unpaid Priority Class A Return of the Class A Members.

 

1.31       “Class
B Member” means SOIF III, and, with respect to those Units transferred from a Class B Member, any Person who has been
admitted as a Substitute Member as to the Class B Membership Interest transferred. An Assignee of a Membership Interest who receives
Units from a Class B Member shall not be considered a Class B Member.

 

    	5

    	 

    

 

1.32       “Class
B Membership Interest” means with respect to any Class B Member the membership interest allocated to such Class B Member,
which membership interest will be determined by using a fraction in which the number of Units owned by such Class B Member is
the numerator and the aggregate number of Units that are then owned by all Class B Members is the denominator. The foregoing determination
is also referred to as “Pro Rata as to the Class B Membership Interest”.

 

1.33       “Class
B Redemption Consideration” means the consideration payable in cash by BRG to the Company, for use by the Company to redeem
of all outstanding Class B Units, payable to the then-existing Class B Member(s). The Class B Redemption Consideration shall be
determined in accordance with the analysis set forth on Schedule II attached.

 

1.34       “Class
B Units” means the Units held by the Class B Members.

 

1.35       “Company”
shall refer to BR Whetstone Member, LLC, a Delaware limited liability company, as it may from time to time be constituted.

 

1.36       “Company
Subsidiary” shall refer to BR-TBR Whetstone Venture, LLC, a Delaware limited liability company, as it may from time
to time be constituted.

 

1.37       “Company
Subsidiary LLC Agreement” shall refer to the Limited Liability Company Agreement of Company Subsidiary dated as of May
20, 2015, as may be amended or restated from time to time.

 

1.38       “Conversion
Date” shall have the meaning set forth in Section 10.4(b).

 

1.39       “Conversion
Period” shall mean the six (6) month period of time that commences on the Conversion Trigger Date.

 

1.40       “Conversion
Right” shall mean the Class A Member’s right to convert its Class A Units to Class B Units, as provided in Section
10.4.

 

1.41       “Conversion Trigger Date” shall mean the date on which seventy percent (70%) of the Project’s
apartments have been leased.

 

1.42       “Current
Class A Return” means an amount equal to the product of fifteen percent (15.0%) per annum, determined on the basis of
365 or 366 days, as the case may be, for the actual number of days in the period for which the Current Class A Return is being
determined, times the sum of the Net Class A Capital Contributions, commencing on the date the initial Class A Capital Contribution
is made.

 

1.43       “Default Event” shall have the meaning as set forth in Section 8.6(c). 

 

1.44       “Entity” shall mean any Person or other business entity, other than an individual.

 

    	6

    	 

    

 

1.45       “Fiscal Year” shall mean the fiscal year of the Company as set forth in Section 13.2 hereof.

 

1.46       “Gain” shall mean the gain recognized by the Company for federal income tax purposes in any Adjustment Period
by reason of a Capital Transaction.

 

1.47       “IRC”
shall mean the Internal Revenue Code of 1986, Title 26 of the United States Code, as the same may now or hereafter be amended.

 

1.48       “Lender”
shall mean KeyBank National Association, and its successors and/or assigns.

 

1.49       “Liquidating
Trustee” shall have the meaning as set forth in Section 12.4.

 

1.50       “Loan”
shall refer to that certain bridge acquisition loan in the approximate amount of $25,147,500 to be hereafter borrowed by the Property
Owner, as the same will be more specifically described in the Basic Documents, including any successor in interest to the Loan.

 

1.51       “Loss” shall mean the loss recognized by the Company for federal income tax purposes in any Adjustment Period
by reason of a Capital Transaction.

 

1.52       “Majority” means a collection of Members owning, in the aggregate, more than 50% of the Membership Interests
of all Members and, in the context of voting, means a collection of Members who approve, consent to, or vote in favor of a matter
before the Members and who own, in the aggregate, more than 50% of the Membership Interests of all Members entitled to vote thereon.
When used in the context of a class of Membership Interests, “Majority” shall mean a collection of those class Members
owning, in the aggregate, more than 50% of the Membership Interests of all Members of that class, and, in the context of voting,
means a collection of class Members who approve, consent to, or vote in favor of a matter before the class Members and who own,
in the aggregate, more than 50% of the class Membership Interests of all class Members entitled to vote thereon.

 

1.53       “Management
Committee” means the management committee of the Company Subsidiary as more fully described in the Company Subsidiary
LLC Agreement.

 

1.54       “Manager”
or “Managers” shall mean the Person or Persons selected to be the manager or managers of the Company from time
to time by either a Majority of the Class B Members or pursuant to Section 7.4 herein. The initial Manager is SOIF III. A Member
simply by virtue of its status as a member in the Company shall not be a Manager of the Company unless so selected
by a Majority of the Class B Members or pursuant to Section 7.4 herein. A Manager does not have to be a Member of the Company.
The term “Manager” as used herein shall specifically mean all of the then incumbent Managers of the Company where
the context requires.

 

    	7

    	 

    

 

1.55       “Material
Action” means to file any insolvency, or reorganization case or proceeding, to institute proceedings to have the Company
be adjudicated bankrupt or insolvent, to institute proceedings under any applicable insolvency law, to seek any relief under any
law relating to relief from debts or the protection of debtors, or consent to the institution of bankruptcy or insolvency proceedings
against the Company or file a petition seeking, or consent to, reorganization or relief with respect to the Company under any
applicable federal or state law relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Company or a substantial part of its property, or make any assignment for the
benefit of creditors of the Company, or admit in writing the Company’s inability to pay its debts generally as they become
due, or take action in furtherance of any such action.

 

1.56       “Member”
or “Members” shall refer to the Persons listed above as Members and any other Persons who shall subsequently
be admitted as Substitute Members in the Company, each in its capacity as a Member of the Company, including both Class A Members
and Class B Members.

 

1.57       “Membership
Interest” means with respect to any Member the membership interest allocated to such Member, which membership interest
will be determined by using a fraction in which the number of Units owned by a Member is the numerator and the aggregate number
of Units that are then outstanding is the denominator.

 

1.58       “Minimum
Gain” shall mean, as of any particular date, an amount determined with respect to the Company on such date in accordance
with Section 1.704-1(b)(4)(ii)(c) of the Treasury Regulations interpreting the IRC.

 

1.59       “Mortgage”
means any deed to secure debt, mortgage, deed of trust, security agreement or other similar instrument at any time and from time
to time constituting a lien upon, security interest in or security title to any of the assets of the Company, the Company Subsidiary
or the Property Owner.

 

1.60       “Mortgagee”
shall mean the holder of a Mortgage.

 

1.61       “Net
Cash Proceeds” shall mean the proceeds received by the Company from a Capital Transaction less (i) any amounts retained
by a Mortgagee and (ii) any costs incurred by the Company, the Company Subsidiary or the Property Owner in connection with such
Capital Transaction not paid to an Affiliate of a Member.

 

1.62       “Net
Class A Capital Contributions” means the Class A Capital Contributions, less all distributions made to the Class A Members
under Section 6.8(f).

 

1.63       “Net
Class A Priority Capital Contributions” means the Class A Priority Capital Contributions, less all distributions made
to the Class A Members under Section 6.8(d).

 

1.64       “Net
Capital Contributions” means, with respect to any Member, its aggregate Capital Contributions less any distributions
delineated as return of Capital Contributions.

 

1.65       “Net
Profit” or “Net Loss” shall mean, for each Adjustment Period, the Company’s taxable income
or taxable loss for such Adjustment Period, as determined under Section 703(a) of the IRC and Section 1.703-1 of the Treasury
Regulations interpreting the IRC (for this purpose, all items of income, gain, loss or deduction are required to be stated separately
pursuant to Section 703(a)(1) of the IRC and shall be included in taxable income or taxable loss), with the following adjustments:

 

    	8

    	 

    

 

(a)          any
tax-exempt income, as described in Section 705(a)(1)(B) of the IRC, realized by the Company during such Adjustment Period shall
be taken into account in computing such Net Profit or Net Loss as if it were taxable income;

 

(b)          any
expenditures of the Company described in Section 705(a)(2)(B) of the IRC for such Adjustment Period, including any items treated
under Section 1.704-1(b)(2)(iv)(i) of the Treasury Regulations interpreting the IRC as items described in Section 705(a)(2)(B)
of the IRC, shall be taken into account in computing such Net Profit or Net Loss as if they were deductible items;

 

(c)          any
items of income, deduction, gain or loss that are specially allocated pursuant to Sections 6.4, 6.5 and 6.9 shall not be taken
into account in computing Net Profit or Net Loss;

 

(d)          if
the Company’s taxable income or taxable loss for such Adjustment Period, as adjusted in the manner provided above, is a
positive amount, such amount shall be the Company’s Net Profit for such Adjustment Period, and if negative, such amount
shall be the Company’s Net Loss for such Adjustment Period.

 

1.66       “Obligations”
shall mean the indebtedness, liabilities and obligations of the Company, Company Subsidiary or Property Owner under or in connection
with the Basic Documents or any related document in effect as of any date of determination.

 

1.67       “Person”
means any individual, corporation, partnership, joint venture, limited liability company, limited liability partnership, association,
joint stock company, trust, unincorporated organization or other organization, whether or not a legal entity, and any governmental
authority.

 

1.68       “Priority
Class A Return” shall have the meaning set forth in Section 5.3(b).

 

1.69       “Project”
means an approximately 204–unit Class A rental apartment complex located on the Property and owned by Property Owner, as
more fully described in the Company Subsidiary LLC Agreement.

 

1.70       “Project
Budget” means the Total Project Budget for the Parking Improvements as those terms are used in the Company Subsidiary
LLC Agreement.

 

1.71       “Property”
shall mean that certain real property located in Durham, North Carolina and more fully described in the Company Subsidiary LLC
Agreement in which a fee interest is held by Property Owner and upon which the Project is located.

 

1.72       “Property
Owner” shall have the meaning set forth in the preamble of this Agreement.

 

    	9

    	 

    

 

1.73       “Property
Owner LLC Agreement” shall mean the Limited Liability Company Agreement of the Property Owner.

 

1.74       “Representative”
means a representative to the Management Committee.

 

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

 

1.76       “SOIF
III” shall have the meaning set forth in the introductory paragraph above.

 

1.77       “Subsidiary
Interest” shall have the meaning set forth in the preamble to this Agreement.

 

1.78       “Substitute Member” shall mean a transferee of a Member’s Membership Interest who has complied with the
requirements under Article 10 of this Agreement and is a Member of the Company.

 

1.79       “Tax
Rate” shall mean, for any Fiscal Year, the sum of (i) the highest then marginal income tax rate for individual taxpayers
as set forth in the IRC and (ii) the highest then marginal income tax rate for individual taxpayers in effect in the State of
Delaware.

 

1.80       “Taxing
Jurisdiction” means the federal, state, local, or foreign government that collects tax, interest, or penalties, however
designated, on any Member’s share of the income or gain attributable to the Company.

 

1.81       “Treasury
Regulations” shall mean the Income Tax Regulations promulgated under the IRC, as such regulations may be amended from
time to time including corresponding provisions of succeeding regulations.

 

1.82       “Unit”
means one or more of the units of limited liability company interest, or fractional portions thereof, representing a Member’s
ownership rights in the Company, classified as Class A or Class B. Except as may be specifically otherwise provided in this Agreement
(e.g., Section 10.4) a Member will be issued one (1) Unit for each dollar of Capital Contributions made by such Member.

 

ARTICLE
2

NAME, OFFICE, REGISTERED AGENT, AND

MEMBER’S NAMES AND MAILING ADDRESSES

 

2.1         Name:
The name of the limited liability company is:

 

“BR WHETSTONE MEMBER, LLC”

 

2.2         Principal
Business Office. The address of the principal business office of the Company shall be located at 712 Fifth Avenue, 9th
Floor, New York, New York 10019, and shall also be at such other place or places as the Manager may hereafter determine.

 

    	10

    	 

    

 

2.3         Registered
Office. The address of the registered office of the Company in the State of Delaware is c/o National Registered Agents, Inc.,
160 Greentree Dr., Suite 101, Dover, Delaware 19904.

 

2.4         Registered
Agent. The name and address of the registered agent of the Company for service of process on the Company in the State of Delaware
is National Registered Agents, Inc., 160 Greentree Dr., Suite 101, Dover, Delaware 19904.

 

2.5         Members’
Names and Number of Units. The names and addresses of the Members, number of Class A and Class B Units owned by each Member,
Class A Membership Interests, and Class B Membership Interests are set forth on Schedule I.

 

ARTICLE
3

DURATION

 

The term of the Company
shall commence on the date of the filing of a Certificate of Formation with the Office of the Secretary of State of the State
of Delaware, and its duration shall be perpetual. The existence of the Company as a separate legal entity shall continue until
cancellation of the Certificate of Formation.

 

ARTICLE
4

PURPOSE

 

The Company is organized
for the purpose of: (i) acquiring, owning, holding, financing, hypothecating, pledging and disposing of the Subsidiary Interest;
and (ii) engaging in any lawful business, purpose or activity that may be undertaken by a limited liability company organized
under and governed by the Act. The Company shall possess and may exercise all of the powers and privileges granted by the Act,
by any other law or by this Agreement, together with any powers incidental thereto, including such powers and privileges as are
necessary or convenient to the conduct, promotion or attainment of the business, purposes or activities of the Company.

 

ARTICLE
5

CAPITAL CONTRIBUTIONS, MEMBERSHIP INTERESTS, ETC.

 

5.1         Admission
of Member. The Members are admitted to the Company as the sole equity members of the Company upon their respective execution
and delivery of a counterpart signature page to this Agreement.

 

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5.2         Capital
Contribution of the Members; Payment. The Members have made their respective initial Capital Contributions to the Company
as set forth on Schedule I, and shall contribute such additional amounts of capital as provided in this Agreement. The
Members agree that the Class A Member’s initial Capital Contributions, and each subsequent Capital Contribution pursuant
to its Class A Capital Commitment, shall include an interest reserve calculated at a fifteen percent (15%) annual interest rate
which shall be segregated by the Company from all other Capital Contributions made by the Class A Member pursuant to its Class
A Capital Commitment, and from all other funds held by the Company, and shall be solely used to establish a specific reserve to
the benefit of the Class A Member (the “Class A Preferred Reserve”). Except as otherwise provided in Sections
6.7 and 10.4(b), the funds on deposit in the Class A Preferred Reserve shall be earmarked and used specifically for the monthly
draw and payment of a portion of the Current Class A Return equivalent to a 15% annualized return on all Class A Capital Contributions,
and the Manager shall not have the authority to use the funds in the Class A Preferred Reserve for any other purpose without the
prior written approval of the Class A Member (or if there is more than one Class A Member, Members owning a Majority of the Class
A Membership Interests). Until such time as the Class A Units are redeemed or converted to Class B Units as provided in Section
10.4, the Company must at all times maintain not less than three (3) months’ worth of payments in the Class A Preferred
Reserve.

 

5.3         Additional
Contributions.

 

(a)          To
the extent necessary and as required of the Company by the Company Subsidiary and/or Property Owner to develop and lease-up the
Project under the Project Budget, the Manager may call for additional capital from the Members, and, until such time as the Class
A Member has fully funded the Class A Capital Commitment, the Class A Member shall be obligated to fund its share (based on 89.5%
Class A Member share and 10.5% Class B Member share) of all such capital calls (“Budgeted Development Capital Calls”).
If Class A Member fails to fund its share of any Budgeted Development Capital Calls within ten (10) days of written notification
of the need therefor, its Current Class A Return shall be as of that date reduced to seven percent (7%) per annum. All other capital
calls shall be made as and in the amount determined by the Manager, including but not limited to for the funding of any Current
Class A Return after payments thereon are drawn from the Class A Preferred Reserve, Priority Class A Return, or if additional
funds are required by or called for pursuant to the Company Subsidiary LLC Agreement and/or Property Owner LLC Agreement (all
such additional funds, other than Budgeted Development Capital Calls, are referred to as “Additional Capital Contribution(s)”).
For the avoidance of doubt, to the extent that Cash Flow From Operations is insufficient to allow the Company, after taking into
account any draws from the Class A Preferred Reserve as provided in Section 6.7, to pay the Class A Return and Priority Class
A Return in full on a monthly basis as required under Sections 6.6(b) and (c), Manager shall be obligated to make a call for Additional
Capital Contributions in such amounts as are necessary in order to allow the Company to do so, and all such capital called for
that purpose shall be distributed as provided in Sections 6.6(b) and (c). Additional Capital Contributions shall be solely the
obligation of the Class B Members, and the Class A Member shall have no obligation to make Additional Capital Contributions. All
additional funds contributed by the Class B Members shall be contributed as additional capital to the Company by the Class B Members
Pro Rata as to the Class B Membership Interest (or in any such other percentages as they shall agree) within ten (10) days of
written notification of the need therefor; provided, that no Additional Capital Contributions funded shall be distributed to the
Members without the prior written consent of the Class A Member. Any Additional Capital Contributions made by the Class B Members
will be treated on the same basis and parity as the initial Capital Contributions of the Class B Members made in accordance with
Section 5.2 above.

 

    	12

    	 

    

 

(b)          If
the Class B Members fail to contribute all of their share (based on 89.5% Class A Member share and 10.5% Class B Member share)
of any Budgeted Development Capital Call or to make all of an Additional Capital Contribution, the Class A Member may, but shall
not be obligated to, contribute as additional capital to the Company (if there is more than one Class A Member, Pro Rata as to
the Class A Membership Interest (or in any such other percentages as they shall agree)) all or a portion of the amount that the
Class B Members failed to fund. Any such Capital Contributions made by the Class A Member shall be referred to as the “Class
A Priority Capital Contributions.” Any Class A Priority Capital Contributions made by the Class A Member will be treated
on the same basis as its prior Capital Contributions of the Class A Member made in accordance with Section 5.2 above, except that
the Current Class A Return on such Class A Priority Capital Contributions shall be twenty percent (20%) per annum (the “Priority
Class A Return”) and the Class A Member shall have a priority return of its Priority Class A Return and Class A Priority
Capital Contributions in distributions from Capital Transactions and Liquidations, as set forth in Section 6.8.

 

(c)          Additional
Capital Contributions shall be made in cash unless the Manager and Class A Member agree otherwise.

 

(d)          Except
as provided in Sections 5.2, 5.3(a) and 5.3(b), no Capital Contributions may be made to the Company without the prior written
consent of the Class A Member.

 

5.4         Return
of Capital Contributions; Interest on Capital Contributions.

 

(a)          No
Member shall have the right to withdraw his Capital Contributions or demand or receive the return of his Capital Contributions
or any part thereof, except as provided in Section 10.5 with respect to the Class A Member and as otherwise provided in this Agreement.

 

(b)          The
Manager shall not be liable for the return of the Capital Contributions of the Members. If and to the extent that any such return
is required, such return shall be made solely from the assets of the Company.

 

(c)          The
Company shall not pay interest on the Capital Contributions of any Member, except as otherwise provided in this Agreement.

 

5.5         Capital
Accounts. The Capital Accounts of the Company shall be established and maintained for each Member hereunder in accordance
with the federal income tax accounting practices and rules established under Section 704(b) of the IRC and the Treasury Regulations
thereunder.

 

5.6         Membership
Interests. The Class A Membership Interests and Class B Membership Interests in the Company are set forth on Schedule I.

 

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5.7         Admission
of Additional Members. The Company shall not be permitted to admit additional Members hereunder without consent of: (1) the
Manager and (2)(a) the Members owning a Majority of the Membership Interests and (b) the Class A Membership Interest, to the extent
outstanding. Except as expressly permitted in this Agreement, no other Person shall be admitted as a Member of the Company, and
no additional interest in the Company shall be issued, without such approval of a Majority of the Membership Interests and the
Class A Membership Interest.

 

ARTICLE
6

ALLOCATION AND DISTRIBUTION OF CERTAIN ITEMS

 

6.1         Net
Profit. After giving effect to the special allocations set
forth in Sections 6.4, 6.5 and 6.9, all Net Profit shall be allocated to the
Members’ Capital Accounts in the following manner and order of priorities:

 

(a)         After
giving effect to the allocations contained in Section 6.1(b), the Company’s Net Profit shall be allocated one hundred percent
to the Class B Members’ Capital Accounts.

 

(b)         To
the extent Net Loss was allocated to the Members’ Capital Accounts pursuant to Section 6.2(a), then prior to making the
allocations under Section 6.1(a), Net Profit shall be allocated to the Members’ Capital Accounts in an amount equal to and
in the reverse order that such Net Loss was allocated.

 

6.2         Net
Loss. After giving effect to the special allocations set forth in Sections 6.4, 6.5, and 6.9, all Net Loss shall be allocated
to the Members’ Capital Accounts in the following manner and order of priorities:

 

(a)          After
giving effect to the allocations contained in Section 6.2(b), the Company’s Net Loss shall be allocated in the following
manner and order of priorities:

 

(i)          First,
one hundred percent (100%) to the Class B Members’ Capital Accounts until the cumulative Net Loss allocated to the Class
B Members’ Capital Accounts pursuant to this Section 6.2(a)(i) equals the amount of the Class B Members’ capital contributions
to the Company;

 

(ii)         Second,
one hundred percent (100%) to the Class A Members’ Capital Accounts until the cumulative Net Loss allocated to the Class
A Members’ Capital Accounts pursuant to this Section 6.2(a)(ii) equals the amount of the Class A Members’ capital
contributions to the Company; and

 

(iii)        Third,
the balance, to the Members who bear the risk of such loss or if no Members bears the risk of loss, one hundred percent (100%)
to the Class B Members’ Capital Accounts.

 

(b)          To
the extent Net Profit was allocated to the Members’ Capital Accounts pursuant to Section 6.1(a), then prior to making any
allocations of Net Loss under Section 6.2(a), Net Loss shall be allocated to the Members’ Capital Accounts in an amount
equal to and in the reverse order that such Net Profit were allocated.

 

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6.3         Composition
of Special Allocation Items. Except as required otherwise under the IRC or the Regulations issued thereunder, all special
allocations of income, gain or deduction made pursuant to Sections 6.4, 6.5 and 6.9 shall consist of a proportionate part of each
item of gross income, gain or deduction, as the case may be, that the Company recognizes in the year such allocation is to be
made.

 

6.4         Special
Current Class A Return Allocations. Prior to the allocations contained in Sections 6.1 and 6.2, items of income and Gain shall
be specially allocated to the Class A Members in proportion to and to the extent of the excess, if any, of (i) the cumulative
Current Class A Return distributed to each Member pursuant to Sections 6.6(b), 6.7(a) and 6.8(e) hereof from the commencement
of the Company to a date thirty (30) days after the end of such Adjustment Period, over (ii) the cumulative items of income and
Gain allocated to such Member pursuant to this Section 6.4 for all prior Adjustment Periods.

 

6.5         Special
Priority Class A Return Allocations. Prior to the allocations contained in Sections 6.1 and 6.2, items of income and Gain
shall be specially allocated to the Class A Members in proportion to and to the extent of the excess, if any, of (i) the cumulative
Priority Class A Return distributed to each Member pursuant to Sections 6.6(c), 6.7(b) and Section 6.8(c) hereof from the commencement
of the Company to a date thirty (30) days after the end of such Adjustment Period, over (ii) the cumulative items of Gain allocated
to such Member pursuant to this Section 6.5 for all prior Adjustment Periods.

 

6.6         Distributions
of Cash Flow From Operations. Distributions of Cash Flow From Operations shall be made monthly. Distributions made pursuant
to this Section shall be made monthly to the Members in the following order of priority:

 

(a)          On
and after the Class A Mandatory Redemption Date, to the Class A Members until such Class A Members have received distributions
in an amount equal to the Class A Unit Redemption Amount; provided, that, if distributions of Cash Flow From Operations to be
made under this Section 6.6(a) are insufficient to fully satisfy the Class A Unit Redemption Amount, all Cash Flow From Operations
shall be segregated in a separate account of the Company (the “Class A Sinking Fund”) until such time as distributions
to be made under this Section 6.6(a) plus the amounts in the Class A Sinking Fund are sufficient, and are used, to fully satisfy
the Class A Unit Redemption Amount;

 

(b)          Second,
to the Class A Members (to be shared among them, pro rata, according to their respective unpaid Current Class A Return) until
such Class A Members have received distributions in an amount equal to their respective unpaid Current Class A Return (as may
be modified by Section 6.14) until it is paid in full pursuant to this Section 6.6(b), Section 6.7(a) and Section 6.8(e);

 

(c)          Third,
to the Class A Members (to be shared among them, pro rata, according to their respective unpaid Priority Class A Return) until
such Class A Members have received distributions in an amount equal to their respective unpaid Priority Class A Return (as may
be modified by Section 6.14) until it is paid in full pursuant to this Section 6.6(c), Section 6.7(b) and Section 6.8(c); and

 

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(d)          Fourth,
to the Class B Members pro rata, in accordance with their respective Class B Membership Interests.

 

For the avoidance of doubt, to the extent
that Cash Flow From Operations is insufficient to allow the Company, after taking into account any draws from the Class A Preferred
Reserve as provided in Section 6.7, to pay the Class A Return and Priority Class A Return in full on a monthly basis, Manager
shall be obligated to make a call for Additional Capital Contributions in such amount as are necessary in order to allow the Company
to do so, and all such capital called for that purpose shall be distributed as provided in subsections (b) and (c) above.

 

6.7         Distributions
from Class A Preferred Reserve. The Manager shall cause distributions to be made from the Class A Preferred Reserve on a monthly
basis as necessary in order to pay a portion of the unpaid Current Class A Return equivalent to a 15% annualized return on all
Class A Capital Contributions; provided however, from and after the occurrence of a Default Event, the Manager shall cause
distributions to be made from the Class A Preferred Reserve on a monthly basis as necessary in order to pay any unpaid Current
Class A Return and all unpaid Priority Class A Return, in the following order of priority:

 

(a)          To
the Class A Members (to be shared among them, pro rata, according to their respective unpaid Current Class A Return) until such
Class A Members have received distributions in an amount equal to their respective unpaid Current Class A Return (as may be modified
by Section 6.14) until it is paid in full pursuant to Section 6.6(b), this Section 6.7(a) and Section 6.8(e); and

 

(b)          Second,
to the Class A Members (to be shared among them, pro rata, according to their respective unpaid Priority Class A Return) until
such Class A Members have received distributions in an amount equal to their respective unpaid Priority Class A Return (as may
be modified by Section 6.14) until it is paid in full pursuant to Section 6.6(c), this Section 6.7(b) and Section 6.8(c).

 

6.8         Distributions
From Capital Transactions and on Liquidations. Net Cash Proceeds in connection with Capital Transactions and/or in connection
with the liquidation of the Company shall be distributed within thirty (30) days of the completion of the applicable event. Distributions
made pursuant to this Section shall be made in the following amounts and order of priority:

 

(a)          To
discharge the debts and obligations of the Company;

 

(b)          To
fund reasonable and necessary reserves (i) as determined in good faith by the Manager and (ii) approved by the Class A Members;

 

(c)          To
the Class A Members (to be shared among them, pro rata, according to their respective unpaid Priority Class A Return) until such
Class A Members have received distributions of Net Cash Proceeds in an amount equal to their respective unpaid Priority Class
A Return until it is paid in full pursuant to this Section 6.8(c), Section 6.7(b) and Section 6.6(c);

 

(d)          To
the Class A Members (to be shared among them, pro rata, according to their respective Net Class A Priority Capital Contributions)
until such Class A Members have received distributions of Net Cash Proceeds in an amount equal to their respective Net Class A
Priority Capital Contributions until it is paid in full pursuant to this Section 6.8(d);

 

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(e)          To
the Class A Members (to be shared among them, pro rata, according to their respective unpaid Current Class A Return) until such
Class A Members have received distributions of Net Cash Proceeds in an amount equal to their respective unpaid Current Class A
Return until it is paid in full pursuant to this Section 6.8(e), Section 6.7(a) and Section 6.6(b);

 

(f)           To
the Class A Members (to be shared among them, pro rata, according to their respective aggregate Net Class A Capital Contributions),
until such Class A Members have received distributions of Net Cash Proceeds in the amount equal to their respective aggregate
Net Class A Capital Contributions until they are repaid in full pursuant to this Section 6.8(f);

 

(g)          To
the Class B Members pro rata, in accordance with (and in reduction of) their respective positive Capital Accounts; and

 

(h)          To
the Class B Members pro rata, in accordance with their respective Class B Membership Interests.

 

6.9         Special
Tax Allocations. The allocations in this Section 6.9 shall be given effect before giving effect to the allocations contained
in Sections 6.1 through Section 6.5:

 

(a)          Notwithstanding
any provision contained herein to the contrary, if the amount of Net Loss and Loss for any Adjustment Period that would otherwise
be allocated to a Member hereunder would cause or increase a deficit balance in such Member’s Capital Account to an amount
in excess of the sum of such Member’s share of Minimum Gain as of the last day of such Adjustment Period, then a proportionate
part of such Net Loss and Loss equal to such excess shall be allocated proportionately first to the other Members in an amount
up to, but not in excess of, the amount that would cause or increase a deficit balance in each of such Member’s Capital
Accounts to an amount equal to the sum of their respective shares of Minimum Gain as of the last day of such Adjustment Period.
For purposes of this Section 6.9(a), each Member’s Capital Account shall be computed as of the last day of such Adjustment
Period in the manner provided in the definition of Capital Account, but shall be reduced for the items described in Section 1.704-1(b)(2)(ii)-(d)(4),
(5) and (6) of the Treasury Regulations interpreting the IRC.

 

(b)          Notwithstanding
any provision in this Agreement to the contrary, if any of the Members, as of the last day of any Adjustment Period, has a deficit
balance in its Capital Account that exceeds the sum of its share of Minimum Gain as of such last day, then all items of income
and gain of the Company (consisting of a prorata portion of each item of Company income, including gross income and Gain) for
such Adjustment Period shall be allocated to such Members in the amount and in the proportions required to eliminate such excess
as quickly as possible. For purposes of this Section, a Member’s Capital Account shall be computed as of the last day of
an Adjustment Period in the manner provided in the definition of Capital Account, but shall be increased by any allocation of
income to such Member for such Adjustment Period under Section 6.9(c).

 

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(c)          Notwithstanding
any provision in this Agreement to the contrary, if there is a net decrease in the Minimum Gain during any Adjustment Period,
then all items of gross income and Gain of the Company for such Adjustment Period (and, if necessary, for subsequent Adjustment
Periods) shall be allocated to each Member in proportion to, and to the extent of, an amount equal to the greater of (i) the portion
of such Member’s share of the net decrease that is allocable to the disposition of Company property subject to one or more
nonrecourse liabilities of the Company or (ii) the deficit balance in such Member’s Capital Account (determined before any
allocation for such Adjustment Period) in excess of the sum of such Member’s share of the Minimum Gain as of the close of
such Adjustment Period. The items required to be allocated to the Members under this Section 6.9(c) shall be determined in accordance
with Section 1.704-2(f) of the Treasury Regulations.

 

(d)          Notwithstanding
any other provision contained herein, any item of Company loss, deduction or IRC Section 705(a)(2)(B) expenditure that is attributable
to a nonrecourse liability of the Company for which any Member bears the economic risk of loss (e.g., a Member or an Affiliate
makes the nonrecourse loan to the Company) shall be allocated to the Member or Members who bear the economic risk of loss with
respect to such liability to the extent required in Section 1.704-2(i) of the Treasury Regulations interpreting the IRC.

 

6.10       Curative
Allocations. The allocations set forth in Section 6.9 (the “Regulatory Allocations”) are intended to comply
with the requirements of the Treasury Regulations. The Regulatory Allocations may not be consistent with the manner in which the
Members intend to divide Company distributions. Accordingly, notwithstanding any other provision of this Article (other than the
Regulatory Allocations), the Manager may make such offsetting special allocations of income, gain, loss, or deduction in whatever
manner it determines appropriate so as to prevent the Regulatory Allocations from distorting the manner in which the Company’s
distributions would otherwise be divided among the Members. In general, the Members anticipate that this will be accomplished
by specially allocating other profit, losses, gain, and deductions among the Members so that, after such offsetting special allocations
are made, the amount of each Member’s Capital Account will be, to the extent possible, equal to the Capital Account balance
such Member would have had if the Regulatory Allocations were not a part of this Agreement and all Company items had been allocated
to the Members solely pursuant to Sections 6.1 through 6.5.

 

6.11       IRC
Section 704(c) Tax Allocations. In accordance with IRC Section 704(c) and the Treasury Regulations thereunder, income, gain,
loss, and deduction with respect to any property contributed to the capital of the Company shall, solely for tax purposes, be
allocated among the Members so as to take account of any variation between the adjusted basis of such property to the Company
for federal income tax purposes and its fair market value. Any elections or other decisions relating to such allocations
shall be made by the Manager in its sole discretion.

 

6.12       Distribution
Limitations. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not be required
to make a distribution to the Members on account of their interests in the Company if such distribution would violate the Act
or any other applicable law or would constitute a default under any Basic Document.

 

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6.13       Amounts
Withheld for Taxes or Paid on Composite Returns. All amounts withheld pursuant to the IRC or any provision of any state or
local tax law with respect to any payment, distribution or allocation to the Company or one or more of the Members shall be treated
as amounts paid or distributed, as the case may be, to the Members for whom such amounts were withheld pursuant to this Article
for all purposes under this Agreement. The Manager may allocate any such amount among the Members in any manner that is in accordance
with applicable law. The Company is authorized to withhold from payments and distributions to one or more Members, or with respect
to allocations to one or more Members, and to pay over to any federal, state or local government, any amounts so withheld under
this Agreement, the IRC or any provisions of any other federal, state, or local law, and shall allocate any such amounts to the
Members for whom such amounts were withheld. To the extent required by any provision of any state or local tax law, the Company
shall file a composite tax return on behalf of one or more of its Members and shall report and pay income taxes required by law
to be paid with such composite tax returns to any Taxing Jurisdiction, and any such amounts shall be treated as a distribution
to the Member for whom such composite tax return is filed. The Company shall have the power and authority to determine (a) whether
a Member should be included in a composite tax return required to be filed by any provision of any applicable tax law, and (b)
whether the Member is subject to withholding, pursuant to this Section, on payments, distributions or allocations from the Company.
A Member shall be limited to an action against the applicable Taxing Jurisdiction(s) with respect to any claims based on over-withholding
or over-payment on a composite tax return, and neither the Company, nor the Manager shall have any liability to any Member with
respect to any withholding or composite tax return filings or payments made pursuant to this Section.

 

6.14       Timing
of Distributions of Current Class A Return and Priority Class A Return. Distributions of Current Class A Return under Section
6.6(b) or Section 6.8(e) and Priority Class A Return under Section 6.6(c) or Section 6.8(c) will be made on a monthly basis on
or before the 10th day of each calendar month following the calendar month to which the Current Class A Return or Priority
Class A Return relates. If a distribution of Current Class A Return or Priority Class A Return is not made on or before the 10th
day of a calendar month (a “Delayed Distribution”), the Current Class A Return and the Priority Class
A Return (if any) shall be calculated by increasing the annual percentage rate therein by 3.5% from the 11th day of
such calendar month until such time as all Delayed Distributions are made.

 

ARTICLE
7

APPOINTMENT OF MANAGER; OBLIGATIONS, REPRESENTATIONS AND

WARRANTIES OF THE MANAGER

 

7.1         Appointment
of the Manager. Subject to Section 8.6, the business and affairs of the Company shall be managed by or under the direction
of the Manager. The Manager shall hold office until such Manager’s earlier dissolution, death, resignation, expulsion or
removal. Any successor Manager shall be appointed by a Majority of the Class B Membership Interest prior to the Conversion Date
and by a Majority of the Membership Interest on and after the Conversion Date, unless otherwise provided in this Agreement. A
Manager need not be a Member. A Member shall not be deemed to be a Manager simply by virtue of being a Member in the Company.
The initial Manager designated by the Class B Members is SOIF III.

 

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7.2         Compensation
of Manager; Removal of Manager. The Manager shall receive no compensation for serving as the Manager of the Company. The Manager
shall be reimbursed for all reasonable expenses incurred in managing the Company. The Manager and Affiliates of a Member or the
Manager may provide services to the Company, the Company Subsidiary, the Property Owner and the Property in addition to those
contemplated to be provided by a manager and receive additional compensation therefor; provided that any fee paid by the Company,
the Company Subsidiary or the Property Owner for such services shall be at rates customarily charged for similar services by Persons
engaged in the same or substantially similar activities in the relevant geographical area and the provisions of each such contract
shall be at least as favorable to the Company as the terms reasonably expected by the Manager to be available in an arm’s-length
transaction with an independent third party and, provided further, that any such contract with an Affiliate of the Manager, Class
B Members and/or their Affiliates must be approved by the Class A Members, which approval will not be unreasonably withheld, conditioned
or delayed. Unless otherwise restricted by law or the Basic Documents, the Manager may resign by written notice to the Company,
in which case if there are no persons or entities appointed by or willing to serve as Manager under the Class B Members, then
any vacancy may be filled by the written consent of the Members owning a Majority of the Class A Membership Interests. Notwithstanding
the foregoing and except as provided in Section 7.4, a Manager may not be removed or expelled as the Manager and no additional
Manager may be appointed unless there is cause for removal. For purposes hereof, “cause for removal” shall mean (i)
an event of default under the Loan or Basic Documents has been declared by the Lender, (ii) the assertion by the Class A Members
that any action by the Manager constitutes fraud against the Company, the Company Subsidiary, the Class A Members, or the Project,
(iii) the good faith assertion by the Class A Members that any action or failure to act by the Manager constitutes (or constituted)
gross negligence, willful misconduct, bad faith or a material violation of law in the performance of its duties to the Company,
(iv) the assertion by the Class A Members of a violation by the Manager of its fiduciary obligations to the Company, and (v) the
good faith assertion by the Class A Members of any material breach by the Manager of the material terms of this Agreement; provided,
however, that such alleged breach of this Agreement by the Manager described in subpart (v) has not been cured by the Manager
within sixty (60) days after such time as it may be demonstrated that the Manager had actual knowledge of such alleged material
breach; provided, however that if such breach cannot reasonably be cured within such sixty (60) day period and the Manager is
diligently pursuing such cure, the sixty (60) day period shall be extended to ninety (90) days.

 

In the event that
a “cause for removal” described in the definition of “cause for removal” above occurs, upon the giving
of written notice by the Class A Members to the Manager that the Manager is replaced, then the current Manager shall be replaced
by the Manager designated in such notice (the “Class A Manager”) and the Class A Manager shall be the sole
Manager of the Company with all powers of the Manager of the Company and the initial Manager shall have no further rights as and
shall immediately cease to act as Manager of the Company, and notwithstanding anything in this Agreement to the contrary, such
Class A Manager may not thereafter be removed without the consent of the Class A Members.

 

7.3         Manager
as Agent. To the extent of its powers set forth in this Agreement and subject to Section 8.6, the Manager is an agent of the
Company for the purpose of the Company’s business, and the actions of the Manager taken in accordance with such powers set
forth in this Agreement shall bind the Company.

 

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7.4         Manager
Following Class A Conversion Date. As of the date of closing of BRG’s exercise of its Conversion right as provided in
Section 10.4 (the “Conversion Date”), SOIF III, and any then current Manager shall each and all be deemed to
have automatically resigned as Managers and cease to be Managers of the Company, whereupon BRG shall become the sole Manager of
the Company. Notwithstanding Section 7.2, on and after the Conversion, the Manager may only be removed by a Majority Vote of the
Members for an act or omission by the Manager related to the Company constituting gross negligence or fraud causing a material
diminution of value in the Company or the Subsidiary Interest.

 

ARTICLE
8

STATUS OF THE MANAGER’S POWERS

AND TRANSFERABILITY OF INTERESTS

 

8.1         Control
and Responsibility. Except as otherwise expressly provided herein, the Manager shall be responsible for the management of
the Company business and shall have all powers conferred by law as well as those that are necessary, advisable or consistent in
connection therewith. Except as otherwise provided in Section 8.6(d) as to the Class A Member, any note, contract, management
agreement, deed, bill of sale, assignment, conveyance, mortgage, lease or other commitment purporting to bind the Company or any
third party to any action shall be executed and delivered by the Manager on behalf of the Company and no other signature whatsoever
shall be required.

 

8.2         Status
of Manager’s Interests. The Manager shall not have the right to transfer or assign the interests it holds as Manager
in the Company; provided, however, to the extent that BRG or a BRG Transferee Transfers all or a
portion of its Interest in accordance with Article 10 to a BRG Transferee, then after a Conversion such BRG Transferee may be
appointed as an additional Manager under Section 7.1 by BRG or a BRG Transferee then holding all or a portion of an Interest without
any further action or authorization by any Member. 

 

8.3         No
Right to Partition. To the fullest extent permitted by law, neither the Members nor the Manager shall have the right to bring
an action for partition or any sale for division against the Company or any of its properties. Except as otherwise expressly provided
in this Agreement, to the fullest extent permitted by law, each of the Members hereby irrevocably waives any right or power that
such Person might have to cause the Company or any of its assets to be partitioned, to cause the appointment of a receiver for
all or any portion of the assets of the Company, to compel any sale of all or any portion of the assets of the Company pursuant
to any applicable law or to file a complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation,
winding up or termination of the Company. To the fullest extent permitted by law, each of the Members hereby irrevocably waives
any right or power that such Person might have to reject this Agreement in any bankruptcy or insolvency proceedings relating to
such Person. The Members shall not have any interest in any specific assets of the Company, and the Members shall not have the
status of a creditor with respect to any distribution pursuant to Agreement. The interest of the Members in the Company is personal
property.

 

8.4         Extent
of Obligation. The Manager shall devote such time to the business and affairs of the Company as the Manager shall reasonably
deem necessary to conduct properly such business and affairs in accordance with this Agreement and applicable law.

 

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8.5         Rights
and Powers. In addition to any other rights and powers that it may possess under applicable law or by virtue of this Agreement,
but in any event subject to Section 8.6 hereof and the Basic Documents to the contrary, the Manager shall have the full and absolute
power and authority to bind the Company and take any and all actions and do anything and everything it deems necessary or appropriate
in performing its duties hereunder and shall have all rights and powers required or appropriate to its management of the Company
business (and indirectly the business of the Company Subsidiary and/or the Property Owner), including, but not limited to, the
following specific rights and powers. If there is more than one Manager at any time, any action taken by the Managers must be
agreed to by each Manager.

 

8.6         Limitations
on Authority of the Manager.

 

(a)          It
is expressly understood that the Manager shall not do or perform any of the following acts on behalf of the Company without first
obtaining the approval of the Members holding at least a Majority of the Membership Interests:

 

(i)          any
act in contravention of this Agreement;

 

(ii)         any
act that would make it impossible to carry on the ordinary business of the Company, the Company Subsidiary or the Property Owner;

 

(iii)        confess
a judgment against the Company;

 

(iv)        possess
Company (or Company Subsidiary or Property Owner) property or assign the rights of the Company (or Company Subsidiary or Property
Owner) in specific Company (or Company Subsidiary or Property Owner) property for other than Company (or Company Subsidiary or
Property Owner) purposes;

 

(v)         admit
a Person as a Manager, except as provided in Section 7.2;

 

(vi)        admit
a Person as a Member except as otherwise provided herein;

 

(vii)       continue
the business of the Company in contravention of Section 12.1 hereof; or

 

(viii)      cause
or permit the Company to extend credit to or to make any loans or become surety, guarantor, endorser, or accommodation endorser
for any Entity.

 

(b)          It
is expressly understood that, without first obtaining the approval of a Majority of the Class A Membership Interests, in their
sole and absolute discretion, and subject to the Basic Documents, the Manager shall not undertake or perform any of the actions
set forth in Section 8.6(a) if doing so would cause any dilution of or material adverse economic effect upon the Class A Member’s
Membership Interest or its rights under this Agreement or the Company Subsidiary LLC Agreement or the Property Owner LLC Agreement,
nor may the Manager undertake or perform any of the following acts on behalf of the Company without first obtaining the approval
of a Majority of the Class A Membership Interests, in their sole and absolute discretion, subject to the Basic Documents:

 

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(i)          cause
the Company to approve any Major Decision (as defined in Section 7.07 of the Company Subsidiary LLC Agreement, or any successor
section thereto);

 

(ii)         cause
the Company to approve any amendment to the Company Subsidiary LLC Agreement;

 

(iii)        file
or consent to any filing any reorganization, receivership, insolvency, bankruptcy or other similar proceedings as to the Company,
the Company Subsidiary or the Property Owner pursuant to any federal or state law affecting debtor and creditor rights;

 

(iv)        to
the fullest extent permitted by law, dissolve or liquidate the Company;

 

(v)         distribute
any cash or property of the Company other than as provided in this Agreement;

 

(vi)        merge
or consolidate with any other Entity;

 

(vii)       amend,
modify or alter this Agreement, except as otherwise provided herein; or

 

(viii)      cause
the Company, the Company Subsidiary or the Property Owner to consent to any REIT Prohibited Transaction, as defined in the Company
Subsidiary LLC Agreement.

 

(c)          Any
action or failure to act by the Manager to comply with the provisions of Sections 8.6(a) or (b), or any other breach of this Agreement
by the Manager or any Class B Member, shall constitute a “Default Event.”

 

(d)          Notwithstanding
any provision herein to the contrary, on and after the Conversion Date (if applicable), any decision to be made by the Company
or its Representatives on the Management Committee, or pursuant to Sections 7.07 or 12.06 of the Company Subsidiary LLC Agreement,
shall only require the approval of and be subject to the direction of BRG and not any other Member of the Company; provided, further,
that on and after the Conversion Date (if applicable) only BRG, and not any other Member of the Company, shall have the power
and authority to exercise the powers and privileges of the Company as manager of the Company Subsidiary.

 

ARTICLE
9

STATUS OF MEMBERS

 

9.1         Liability.
Except as otherwise provided by the Act, a Member shall not be bound by, or be personally liable for, the expenses, liabilities
or obligations of the Company, solely by reason of being a member of the Company.

 

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9.2         Business
of the Company. Except as otherwise provided herein, a Member shall take no part in the conduct or control of the business
of the Company and shall have no right or authority to act for or to bind the Company in any manner whatsoever. Whenever this
Agreement provides for the approval or action of the Class B Members, unless specifically stated otherwise, such approval or action
shall be made by the Class B Members owning a Majority of the Class B Membership Interest. Whenever this Agreement provides for
the approval or action of the Class A Members, unless specifically stated otherwise, such approval or action shall be made by
the Class A Member (or if there is more than one Class A Member, the Class A Members owning a Majority of the Class A Membership
Interest).

 

9.3         Status
of Member’s Interest. Except as otherwise provided in this Agreement, a Member’s Membership Interest shall be
fully paid and non-assessable. No Member shall have the right to withdraw or reduce its Capital Contribution to the Company except
as a result of (i) the dissolution and termination of the Company or (ii) as otherwise provided in this Agreement and in accordance
with applicable law.

 

ARTICLE
10

TRANSFER OF MEMBERSHIP INTEREST; CLASS A CONVERSION RIGHT AND REDEMPTION

 

10.1       Sale,
Assignment, Transfer or Other Disposition of Membership Interest.

 

(a)          Prohibited
Transfers. Except as otherwise provided in this Article 10, or as approved by the Manager, no Member shall have
the right to sell, transfer, assign, pledge or encumber (“Transfer”) all or any part of its Membership Interest,
whether legal or beneficial, in the Company, and any attempt to so Transfer such Membership Interest (and such Transfer) shall
be null and void and of no effect. Notwithstanding the foregoing, any Member shall have the right, with the consent of the other
Members, at any time to pledge to a lender or creditor, directly or indirectly, all or any part of its Membership Interest in
the Company for such purposes as it deems necessary in the ordinary course of its business and operations.

 

(b)          Affiliate
Transfers.

 

(i)          Subject
to the provisions of Section 10.1(b)(ii) hereof, and subject in each case to the prior written approval of each Member
(such approval not to be unreasonably withheld), any Member may Transfer all or any portion of its Membership Interest in the
Company at any time to an Affiliate of such Member, provided that such Affiliate shall remain an Affiliate of such Member at all
times that such Affiliate holds such Membership Interest. If such Affiliate shall thereafter cease being an Affiliate of such
Member while such Affiliate holds such Membership Interest, such cessation shall be a non-permitted Transfer and shall be deemed void
ab initio, whereupon the Member having made the Transfer shall, at its own and sole expense, cause such putative transferee
to disgorge all economic benefits and otherwise indemnify the Company and the other Member(s) against loss or damage under the
Basic Documents.

 

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

 

		(a)	Intentionally Omitted

 

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		(b)	Any Transfer by SOIF III or a SOIF III Transferee of
up to one hundred percent (100%) of its Membership Interest to any Affiliate of SOIF III, including but not limited to (A) BRG
or any Person that is directly or indirectly owned by BRG; (B) SOIF II or any Person that is directly or indirectly owned by SOIF
II; (C) BGF or any Person that is directly or indirectly owned by BGF; and/or (D) BGF II or any Person that is directly or indirectly
owned by BGF II (collectively, a “SOIF III Transferee”);

 

		(c)	Any Transfer by BRG or a BRG Transferee of up to one
hundred percent (100%) of its Membership Interest to any Affiliate of BRG, including but not limited to (A) SOIF II or any Person
that is directly or indirectly owned by SOIF II; (B) SOIF III or any Person that is directly or indirectly owned by SOIF III;
(C) BGF or any Person that is directly or indirectly owned by BGF and/or (D) BGF II or any Person that is directly or indirectly
owned by BGF II (collectively, a “BRG Transferee”);

 

provided however, as to subparagraphs
(b)(ii)(a), (b), and (c), and as to subparagraph (b)(i), no Transfer shall be permitted and shall be void ab initio if
it shall violate any “Transfer” provision of the Basic Documents. Upon the execution by any such SOIF III Transferee
or BRG Transferee of such documents necessary to admit such party into the Company and to cause the SOIF III Transferee or BRG
Transferee (as applicable) to become bound by this Agreement, the SOIF III Transferee or BRG Transferee (as applicable) shall
become a Member, without any further action or authorization by any Member.

 

(c)          Admission
of Transferee; Partial Transfers. Notwithstanding anything in this Article 10 to the contrary, no Transfer of Membership
Interests in the Company shall be permitted unless the potential transferee is admitted as a Member under this Section 10.1(c):

 

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

 

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

 

    	25

    	 

    

 

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

 

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

 

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

 

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

 

		(e)	as a result of such Transfer, the Company would or may
have in the aggregate more than one hundred (100) members and material adverse federal income tax consequences would result to
a Member. For purposes of determining the number of members under this Section 10.1(c)(ii)(e), a Person (the “beneficial
owner”) indirectly owning an interest in the Company through a partnership, grantor trust or S corporation (as
such terms are used in the IRC) (the “flow-through entity”) shall be considered a member, but only if (i) substantially
all of the value of the beneficial owner’s interest in the flow-through entity is attributable to the flow-through entity’s
interest (direct or indirect) in the Company and (ii) in the sole discretion of the Manager, a principal purpose of the use of
the flow-through entity is to permit the Company to satisfy the 100-member limitation; or

 

		(f)	the transferor failed to comply with the provisions of
Sections 10.1(b)(i) or (ii).

 

The Manager may require the provision
of a certificate as to the legal nature and composition of a proposed transferee of a Membership Interest of a Member and from
any Member as to its legal nature and composition and shall be entitled to rely on any such certificate in making such determinations
under this Section 10.1(c).

 

    	26

    	 

    

 

10.2       Withdrawals.
Each of the Members does hereby covenant and agree that it will not withdraw, resign, retire or disassociate from the Company,
except as a result of a Transfer of its entire Membership Interest in the Company permitted under the terms of this Agreement
and that it will carry out its duties and responsibilities hereunder until the Company is terminated, liquidated and dissolved
under Article 12. No Member shall be entitled to receive any distribution or otherwise receive the fair market value of its
Membership Interest in compensation for any purported resignation or withdrawal not in accordance with the terms of this Agreement.

 

10.3       Death,
Incapacity or Dissolution of a Member.

 

(a)          The
death, insanity or incompetency of a Member who is an individual shall not, in and of itself, cause the termination or dissolution
of the Company. Thereafter, the legally authorized personal representative of such Member shall have all the rights of a Member
for the purpose of settling or managing his estate, and shall have such power as such party possessed to make an assignment of
his interest in the Company in accordance with the terms hereof and to join with such assignee in making application to substitute
such assignee as a Member, provided all of the provisions of this Agreement are complied with by the holder of such Member’s
interest.

 

(b)          The
dissolution or other cessation to exist as a legal entity of any Member that is not an individual shall not, in and of itself,
cause the termination or dissolution of the Company. Thereafter, the authorized representative of such entity, possessed of the
rights of such Member for the purpose of winding up, in any orderly fashion, and disposing of the business of such entity, shall
have such power as such entity possessed to make an assignment of its interest in the Company in accordance with the terms hereof
and to join with such assignee in making application to substitute such assignee as a Member, provided all of the provisions of
this Agreement are complied with by the holder of such Member’s interest.

 

10.4       BRG
Class A Conversion Right. During the Conversion Period and for so long as BRG holds Class A Units in the Company, BRG shall
have the right to convert all, but not less than all, of its Class A Units into Class B Units in accordance with this Section
10.4.

 

(a)          During
the Conversion Period, and so long as BRG then holds a Majority of the Class A Membership Interests, BRG may deliver a notice
to the Company (a “Conversion Notice”) indicating that BRG is exercising its conversion right under this Section
10.4. From and after the date of the Company’s receipt of the Conversion Notice (the “Receipt Date”),
Current Class A Return and Priority Class A Return shall cease to accrue on BRG’s Net Capital Contributions to the Company;
however, BRG shall retain all other rights of a Class A Member until the Conversion Date.

 

(b)          Within
one (1) day of the date of the Receipt Date of the Conversion Notice, the Company shall simultaneously (i) redeem all then-issued
Class B Membership Interests for the Class B Redemption Consideration, (ii) issue to BRG one (1) new Class B Unit representing
ownership of 100% of the Company (the “Conversion Unit”), (iii) return to BRG any remaining funds in the Class
A Preferred Reserve and (iv) cancel all of BRG’s Class A Units. The date of such redemption, issuance, return of funds and
cancellation shall be referred to in this Agreement as the “Conversion Date.” From and after the Conversion
Date, BRG shall cease to be a Class A Member but shall be the sole Class B Member of the Company, with no further action required
by the Company, the Manager or the Members. The Manager shall amend Schedule I as of the Conversion Date to reflect the
conversion, including but not limited to an updated enumeration of all Class A Units, Class B Units and Membership Interests as
of the Conversion Date.

 

    	27

    	 

    

 

(c)          [reserved].

 

10.5       Class
A Mandatory Redemption.

 

(a)          Notwithstanding
the restrictions on Transfer contained in this Article 10, but subject to the Basic Documents, the Company shall redeem all, but
not less than all, of the Class A Units on the Class A Mandatory Redemption Date for payment of the Class A Unit Redemption Amount
in immediately available funds to the Class A Members, unless prohibited by law, and in such event, on the earliest practicable
date such redemption would not be prohibited by law; provided, however, this Section 10.5 shall not be applicable to the extent
the Class A Member has exercised its Conversion Right under Section 10.4 prior to the Class A Mandatory Redemption Date.

 

(b)          Subjection
to Section 10.5(a), on the Class A Mandatory Redemption Date (or earliest practicable date), upon receipt of the Class A Unit
Redemption Amount, the Class A Member shall transfer its Class A Units to the Company free and clear of any and all liens, encumbrances
or other restrictions and execute and acknowledge a written instrument of assignment, together with such other instruments as
the Manager, in its reasonable discretion, may deem necessary or desirable to effect the Transfer to the Company of the Class
A Units, all in form and substance reasonably satisfactory to the Manager.

 

(c)          Without
limiting the generality of any other provision of this Agreement, following the redemption of the Class A Units, the Class A Members
shall have no rights in the Company.

 

(d)          To
the extent the Company does not redeem the Class A Units on the Class A Mandatory Redemption Date, the Class A Units shall continue
to accrue the Current Class A Return except that the Current Class A Return shall be twenty percent (20%) per annum on and after
the Class A Mandatory Redemption Date until and through the date the Class A Unit Redemption Amount is paid in full.

 

ARTICLE
11

CESSATION OF A MEMBER

 

A Member shall cease
to be a Member of the Company upon the assignment of all of the Member’s Membership Interest in the Company.

 

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ARTICLE
12

DISSOLUTION AND TERMINATION OF THE COMPANY

 

12.1       Dissolution
and Termination. The Company shall be dissolved, and its affairs shall be wound up upon the first to occur of the following:
(i) the decision of the Manager, with the written concurrence of the Members owning more than fifty percent (50%) of the Membership
Interests, that it would be in the best interest of the Company to dissolve; (ii) the termination of the legal existence of the
last remaining Member of the Company or the occurrence of any other event that terminates the continued membership of the last
remaining Member of the Company in the Company unless the Company is continued without dissolution in a manner permitted by this
Agreement or the Act; (iii) the entry of a decree of judicial dissolution under the Act; or (iv) the filing by the Secretary of
State of a Certificate of Dissolution. Upon the occurrence of any event that causes the last remaining Member of the Company to
cease to be a Member of the Company (other than upon continuation of the Company without dissolution upon (i) an assignment by
the last remaining Member of all of its Membership Interest in the Company and the admission of the transferee pursuant to Article
10, or (ii) the resignation of the last remaining Member and the admission of an additional member of the Company pursuant to
Article 10), to the fullest extent permitted by law, the personal representative of such Member is hereby authorized to, and shall,
within ninety (90) days after the occurrence of the event that terminated the continued membership of such Member in the Company,
agree in writing (i) to continue the Company and (ii) to the admission of the personal representative or its nominee or designee,
as the case may be, as a substitute Member of the Company, effective as of the occurrence of the event that terminated the continued
membership of such Member in the Company.

 

(a)          Notwithstanding
any other provision of this Agreement, the Bankruptcy of a Member shall not cause such Member to cease to be a Member of the Company
and upon the occurrence of such an event, the Company shall continue without dissolution.

 

(b)          In
the event of dissolution, the Company shall conduct only such activities as are necessary to wind up its affairs (including the
sale of the assets of the Company in an orderly manner), and the assets of the Company shall be applied in the manner, and in
the order of priority, set forth in Section 12.2.

 

(c)          The
Company shall terminate when (i) all of the assets of the Company, after payment of or due provision for all debts, liabilities
and obligations of the Company, shall have been distributed to the Members in the manner provided for in this Agreement and (ii)
the Certificate of Formation shall have been canceled in the manner required by the Act.

 

12.2       Distribution
Upon Dissolution. Upon the dissolution of the Company, the Manager shall take full account of the Company assets and liabilities,
the assets shall be liquidated as promptly as is consistent with obtaining fair value thereof, and the proceeds therefrom, to
the extent sufficient therefor, after payment of or due provision for all debts, liabilities and obligations of the Company as
required by the Act and applicable law, shall be applied and distributed in accordance with Section 6.8 hereof. In the event it
becomes necessary or desirable, in the sole discretion of the Manager, to make a distribution of the Company property in kind,
then such property shall be transferred and conveyed to the Members, or their assigns, so as to vest in each of them as a tenant-in-common,
a percentage interest in the whole of said property equal to the percentage interest he or she would have received had the aforesaid
property not been distributed in kind.

 

    	29

    	 

    

 

12.3       Time.
A reasonable time, as determined by the Manager, from the date of an event of dissolution, shall be allowed for the orderly liquidation
of the assets of the Company and the discharge of Company liabilities.

 

12.4       Liquidating
Trustee. In the event of a dissolution of the Company, liquidation of the assets of the Company and discharge of its liabilities
may, in the sole discretion of the Manager, be carried out by a liquidation trustee or receiver, who shall be selected by the
Manager and shall be a bank or trust company or other person or firm having experience in managing, liquidating or otherwise handling
property of the type then owned by the Company. This trustee (the “Liquidating Trustee”) shall not be personally
liable for the debts of the Company but otherwise shall have such obligations and authorities as are given the Manager pursuant
to this Agreement.

 

12.5       Statement
of Termination. The Members shall be furnished by the Manager with a statement prepared, at Company expense, by the Accountant
that shall set forth the assets and liabilities of the Company as of the date of complete liquidation and distribution as herein
provided. Such statement shall also schedule the receipts and disbursements made with respect to the termination hereunder.

 

ARTICLE
13

ACCOUNTING AND REPORTS

 

13.1       Books
and Records.

 

(a)          The
Manager shall maintain full and accurate books of the Company, showing all receipts and expenditures, assets and liabilities,
profits and losses, and all other records necessary for recording the Company’s business and affairs, including those sufficient
to record the allocations and distributions provided for in Article 6 and Section 12.2 hereof. Such books and records shall be
open for the inspection and examination by any Member, in person or by its duly authorized representative, at reasonable times
at the offices of the Company upon prior written notice.

 

(b)          The
Company books and records shall be kept in accordance with Generally Accepted Accounting Principles and any change in method shall
be made by the Manager in its sole discretion.

 

13.2       Fiscal
Year. The annual accounting period of the Company shall be the calendar year. The cutoff date of the accounting period shall
be the last day of the calendar month.

 

13.3       Reports.
The Company shall create an internally prepared annual statement showing the revenue and expenses of the Company, the balance
sheet thereof and a statement of change in cash flow at the end of each Fiscal Year (the “Annual Financial Statements”).
The Annual Financial Statements shall be mailed to each Member within fifteen (15) days following the end of the Fiscal Year for
which such statements were prepared. Each Member’s Schedule K-1 will be mailed to the Member no later than thirty (30) days
after the end of each Fiscal Year of the Company. The Company shall transmit all reports received under Section 11.03 of the Company
Subsidiary LLC Agreement to the Class A Members immediately upon the Company’s receipt of such reports.

 

    	30

    	 

    

 

13.4       Bank
Accounts. All funds of the Company shall be deposited in its name in such checking and savings accounts or time certificates
as shall be designated by the Manager. Withdrawals therefrom shall be made upon such signature(s) as the Manager may designate.

 

13.5       Tax
Returns. In addition to the Annual Financial Statements, the Manager shall, at Company expense, cause all tax returns for
the Company to be timely prepared and filed with the appropriate authorities.

 

13.6       Tax
Matters. SOIF III is hereby charged with the responsibility for all tax-related matters affecting the Company and is hereby
designated as the “Tax Matters Representative”. It shall, within ten (10) days of receipt thereof, forward
to each Member a photocopy of any relevant correspondence relating to the Company received from any Federal and/or State taxing
authority (the “Taxing Authority”). It shall, within five (5) days thereof, advise each Member in writing of
the substance of any material conversation held with any representative of a Taxing Authority. Any reasonable costs incurred by
the Tax Matters Representative for retaining accountants and/or attorneys on behalf of the Company in connection with any Taxing
Authority audit of the Company shall be expenses of the Company. The Tax Matters Representative shall, if applicable, comply with
all requirements concerning the registration of tax shelters pursuant to Section 6111 of the IRC and the Treasury Regulations
thereunder, and Form 8264 (or any successor thereto), including, but not limited to, registering the Company with the Taxing Authority
and furnishing to each Member any identification numbers assigned by any Taxing Authority to the Company.

 

ARTICLE
14

SPECIAL LIMITED POWER OF ATTORNEY

 

14.1       Grant
of Power.

 

(a)          Each
Member does hereby irrevocably constitute and appoint the Manager as its true and lawful attorney, in its name, place and stead,
to make, execute, sign, acknowledge, swear to (where appropriate), and file or record:

 

(i)          any
articles, certificates, documents or instruments (including this Agreement) that may be required to be filed by the Company under
applicable laws of any jurisdiction(s) to the extent that the Manager deems such filing(s) to be necessary or required;

 

(ii)         any
and all amendments or modifications of the instruments described in subparagraph (a)(i) above; provided, that such amendments
or modifications are necessary to effect the terms and intent of this Agreement, including, for example, but not limited to, the
substitution of a Member, and to evidence or effect the consent, approval or acceptance of the Member to any action approved by
the Member where this Agreement provides that such consent, approval or acceptance by the Member binds the Member with regard
thereto;

 

    	31

    	 

    

 

(iii)        all
certificates and other instruments that may be required to effect the dissolution and termination of the Company pursuant to the
terms of this Agreement; and

 

(iv)        any
and all consents or other instruments deemed necessary or desirable by the Manager for the admission of the Member and Substitute
Members, pursuant to the terms of this Agreement;

 

(b)          It
is expressly understood and intended by the Members that the grant of the foregoing powers of attorney are coupled with an interest
and are irrevocable.

 

(c)          The
foregoing powers of attorney are durable powers of attorney and shall not be affected by the disability, incompetency, and/or
incapacity of the principal. Furthermore, the foregoing powers of attorney shall survive the death of any Member who shall die
during the term of the Company.

 

(d)          The
foregoing powers of attorney may be exercised by the Manager acting for any Member individually.

 

14.2       Limitation
on Powers. To the fullest extent permitted by law, the foregoing power of attorney shall in no way cause a Member to be liable
in any manner for the acts or omissions of the Manager.

 

14.3       Substitute
Members. Each Substitute Member, upon admission to the Company, shall be deemed to have appointed, ratified and reaffirmed
the appointment of the Manager as its true and lawful attorney for the purposes and on the same terms as set forth in Article
14 hereof.

 

ARTICLE
15

AMENDMENTS

 

(a)          Except
as otherwise provided herein, this Agreement may only be amended by the unanimous written consent of all Members.

 

(b)          This
Agreement shall be amended by the Manager without the consent of the Members whenever:

 

(i)          to
reflect the transfer of Units, the admission of a Member, the change in any Unit, the change in the Membership Interests, or any
other alteration in the matters set forth on Schedule I; and

 

(ii)         it
is necessary or appropriate, in the opinion of counsel to Company, to satisfy the requirements of the IRC, Treasury Regulations
thereunder or administrative guidelines or interpretations relating thereto, to maintain the status of partnership taxation or
to satisfy the requirements of federal and/or state securities laws.

 

(c)          Notwithstanding
anything herein to the contrary, no amendment shall be made to this Agreement that, in the opinion of counsel for the Company:

 

    	32

    	 

    

 

(i)          is
in violation of the provisions of applicable law; or

 

(ii)         would
result in the Company being treated as other than a partnership for federal income tax purposes.

 

ARTICLE
16

INVESTMENT REPRESENTATION

 

Each of the Members,
by executing this Agreement, represents and warrants to the Company and the Manager as follows:

 

(a)          Each
Member or individual executing this Agreement on behalf of an Entity that is a Member hereby represents and warrants that such
Member has acquired such Member’s Membership Interest in the Company for investment solely for such Member’s own account
with the intention of holding such Membership Interest for investment, without any intention of participating directly or indirectly
in any distribution of any portion of such Membership Interest, including an economic interest, and without the financial participation
of any other Person in acquiring such Membership Interest in the Company.

 

(b)          Each
Member hereby acknowledges that such Member is aware that such Member’s Membership Interest in the Company has not been
registered (i) under the Securities Act of 1933, as amended (the “Securities Act”), (ii) under applicable Delaware
securities laws or (iii) under any other state securities laws. Each Member further understands and acknowledges that his representations
and warranties contained in this Section are being relied upon by the Company as the basis for the exemption of the Members’
Membership Interests in the Company from the registration requirements of the Securities Act and from the registration requirements
of applicable state securities laws. Each Member further acknowledges that the Company will not and has no obligation to recognize
any sale, transfer, or assignment of all or any part of such Member’s Membership Interest, including an economic interest
in the Company to any Person unless and until the provisions of this Agreement hereof have been fully satisfied.

 

(c)          Each
Member hereby acknowledges that prior to its execution of this Agreement, such Member received a copy of this Agreement and that
such Member has examined this Agreement or caused this Agreement to be examined by such Member’s representative or attorney.
Each Member hereby further acknowledges that such Member or such Member’s representative or attorney is familiar with this
Agreement and with the Company’s business plans. Each Member acknowledges that such Member or such Member’s representative
or attorney has made such inquiries and requested, received, and reviewed any additional documents necessary for such Member to
make an informed investment decision and that such Member does not desire any further information or data relating to the Company.
Each Member hereby acknowledges that such Member understands that the purchase of such Member’s Membership Interest in the
Company is a speculative investment involving a high degree of risk and hereby represents that such Member has a net worth sufficient
to bear the economic risk of such Member’s investment in the Company and to justify such Member’s investing in a highly
speculative venture of this type.

 

    	33

    	 

    

 

ARTICLE
17

MISCELLANEOUS

 

17.1       Meetings.
Meetings of the Company may be called by the Manager and shall be called by the Manager upon the written request of the Members
holding at least twenty-five (25%) percent of the Membership Interests of the Company.

 

17.2       Members’
Action by Consent in Lieu of Meeting. Any action required by law to be taken at any annual or special meeting of Members,
or any action which may be taken at a meeting of the Members, may be taken without a meeting, without prior notice and without
a vote, if a consent in writing, setting forth the action so taken is signed by the Members having not less than the Membership
Interests that would be necessary to authorize such action at a meeting at which all Members entitled to vote thereon were present
and voted. Such consents shall have the same force and effect as the unanimous consent of the Members at a meeting duly held.
Such consents shall be filed with the minutes of the meetings of the Members.

 

17.3       Other
Ventures. Notwithstanding any duty otherwise existing at law or in equity, except as otherwise provided in this Agreement
to the contrary, any of the Members, the Manager, BRG’s direct and indirect parents, SOIF II’s members, SOIF III’s
members, BGF’s members, BGF II’s members or any of their Affiliates may engage in or possess an interest in other
profit-seeking or business ventures of every nature and description, independently or with others, including those that may compete
with the Company without any obligation to share any profits therefrom with the Company or the Members. The doctrine of corporate
opportunity or any analogous doctrine, shall not apply to any Member, Manager, member of a Member or Manager, direct or indirect
parent of BRG, member of SOIF II, SOIF III, BGF or BGF II, or any of their Affiliates. No Member, Manager, member of a Member
or Manager, direct or indirect parent of BRG, member of SOIF II, SOIF III, BGF or BGF II, or any of their Affiliates who acquires
knowledge of a potential transaction, agreement, arrangement or other matter that may be an opportunity for the Company shall
have any duty to communicate or offer such opportunity to the Company, and such Member, Manager, member of a Member or Manager,
direct or indirect parent of BRG, member of SOIF II, SOIF III, BGF or BGF II, or Affiliate shall not be liable to the Company
or to the other Members for breach of any fiduciary or other duty by reason of the fact that such Member, Manager, member of a
Member or Manager, direct or indirect parent of BRG, member of SOIF II, SOIF III, BGF or BGF II, or Affiliate pursues or acquires
for, or directs such opportunity to, another Person or does not communicate such opportunity or information to the Company. Neither
the Company nor any Member shall have any rights or obligations by virtue of this Agreement or the relationship created hereby
in or to such independent ventures or the income or profits or losses derived therefrom, and the pursuit of such ventures, even
if competitive with the activities of the Company, shall not be deemed wrongful or improper.

 

Nothing in this Agreement
shall be deemed to preclude any Member, Manager, member of a Member or Manager, direct or indirect parent of BRG, member of SOIF
II, SOIF III, BGF or BGF II, or any Affiliate of any Member, Manager, member of a Member or Manager, direct or indirect parent
of BRG, or member of SOIF II, SOIF III, BGF or BGF II, from conducting its business in any manner it may elect, including, without
limitation, entering into any transaction with any Person affiliated in any way with such Person, provided that no such conduct
of its business shall result in a breach by such Member or Manager of its obligations under this Agreement.

 

    	34

    	 

    

 

17.4       Exculpation
and Indemnification.

 

(a)          To
the fullest extent permitted by applicable law, neither the Members, the Manager, SOIF III, BRG, direct or indirect parent of
BRG, the members of SOIF III, nor any officer, manager, director, employee, agent or Affiliate of the foregoing (collectively,
the “Covered Persons”) shall be liable to the Company or any other Person who is bound by this Agreement for
any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Covered Person in good faith
on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered
Person by this Agreement, except that a Covered Person shall be liable for any such loss, damage or claim incurred by reason of
such Covered Person’s gross negligence or willful misconduct.

 

(b)          To
the fullest extent permitted by applicable law, a Covered Person shall be entitled to indemnification from the Company for any
loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person
in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on
such Covered Person by this Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any loss,
damage or claim incurred by such Covered Person by reason of such Covered Person’s gross negligence or willful misconduct
with respect to such acts or omissions; provided, however, that any indemnity under this Section by the Company
shall be provided out of and to the extent of Company assets only, and the Members and the Manager shall not have personal liability
on account thereof; and provided, further, that so long as any Obligations are outstanding, no indemnity payment
from funds of the Company (as distinct from funds from other sources, such as insurance) of any indemnity under this Section shall
be payable from amounts allocable to any other Person pursuant to the Basic Documents.

 

(c)          To
the fullest extent permitted by applicable law, expenses (including reasonable legal fees) incurred by a Covered Person defending
any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition
of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered
Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized
in this Section.

 

(d)          A
Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions,
reports or statements presented to the Company by any Person as to matters the Covered Person reasonably believes are within such
other Person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Company,
including information, opinions, reports or statements as to the value and amount of the assets, liabilities, or any other facts
pertinent to the existence and amount of assets from which distributions to the Members might properly be paid.

 

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(e)          To
the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto
to the Company or any other Member, any Covered Person acting under this Agreement or otherwise shall not be liable to the Company
or any Member for its good faith reliance on the provisions of this Agreement. The provisions of this Agreement, to the extent
that they restrict or eliminate the duties and liabilities of a Covered Person to the Company or its members otherwise existing
at law or in equity, are agreed by the parties hereto to replace such other duties and liabilities of such Covered Person.

 

(f)           Any
liability of the Company shall be satisfied out of the income or assets of the Company (including the proceeds of any insurance
that the Company may recover) and no Member shall have any liability with respect thereto.

 

(g)          Notwithstanding
the foregoing provisions, any indemnification set forth herein shall be fully subordinate to the Loan, and to the fullest extent
permitted by law, shall not constitute a claim against the Company in the event that the Company’s Cash Flow From Operations
(including any additional capital contributions by the Members, if any) are insufficient to pay all of its monthly obligations
to creditors.

 

(h)          The
foregoing provisions of this Section shall survive any termination of this Agreement.

 

17.5       Notices.
All notices under this Agreement shall be in writing, duly signed by the party giving such notice, and transmitted by registered
or certified mail (and such notice shall be deemed delivered three (3) business days after deposit in the mail) or by a national
overnight delivery service, such as Federal Express (and such notice will be deemed delivered the next business day after it is
deposited with such delivery service) addressed as follows:

 

(a)          If
given to the Company:

 

BR Whetstone Member, LLC

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

712 Fifth Avenue,
9th Floor

New York, NY 10019

 

(b)          If
given to the Manager:

 

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

712
Fifth Avenue, 9th Floor

New York,
NY 10019

 

(c)          If
given to any Member, at the address set forth on Schedule I, or at such other address as any Member may hereafter designate
by notice to the Company and all other Members.

 

Any party to this
Agreement may change the address to which notices are to be sent in accordance with this Section by notifying the other parties
hereto in writing of such new address.

 

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17.6       Captions.
Article and Section titles or captions contained in this Agreement are inserted only as a matter of convenience and for reference
and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof.

 

17.7       Identification.
Whenever the singular number is used in this Agreement and when required by the context, the same shall include the plural, and
vice versa; and the masculine gender shall include the feminine and neuter genders, and vice versa. The words “include”
and “including” shall be deemed to be followed by the phrase “without limitation.” The terms “herein,”
“hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not
to any particular Section, paragraph or subdivision.

 

17.8       Counterparts.
This Agreement may be executed in any number of counterparts and all of such counterparts shall be deemed an original and for
all purposes constitute one agreement binding on the parties hereto, notwithstanding that all parties are not signatory to the
same counterpart.

 

17.9       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard
to principles of conflict of laws.

 

17.10     Members’
Competence. Anything in this Agreement to the contrary notwithstanding, no Member, or any Assignee of the Membership Interest
thereof, shall be a person or organization prohibited by law from becoming such. Any assignment of an interest in the Company
to any Person not meeting such standard shall be, to the fullest extent permitted by law, void and ineffectual and shall not bind
the Company.

 

17.11     Binding
Agreement. Except as otherwise provided herein to the contrary, this Agreement shall be binding upon and inure to the benefit
of the parties hereto, their personal representatives, successors and assigns, and shall be enforceable in accordance with its
terms.

 

17.12     Severability.
If any provision of this Agreement shall be declared invalid or unenforceable, the remainder of this Agreement will continue in
full force and effect so far as the intent of the parties can be carried out, and the parties further understand and agree that
any non-waivable provision of the Act shall supersede any provision of the Agreement.

 

17.13     Entire
Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof.

 

17.14     Benefits
of Agreement; No Third-Party Rights. None of the provisions of this Agreement shall be for the benefit of or enforceable by
any creditor of the Company or by any creditor of the Members. Nothing in this Agreement shall be deemed to create any right in
any Person (other than Covered Persons) not a party hereto, and this Agreement shall not be construed in any respect to be a contract
in whole or in part for the benefit of any third Person (other than Covered Persons).

 

17.15     Member’s
Rights. In addition to all other rights and remedies that a Member
may have at law and in equity, including, but not limited to, under the Act, a Member may bring any action against the Manager,
another Member and/or the Company to enforce the terms and provisions of this Agreement, to obtain a judgment for damages for
a breach of this Agreement, and/or to cause the Manager and/or a Member to perform its obligations under this Agreement.

 

    	37

    	 

    

 

17.16     Jurisdiction
and Venue. Regardless of what venue would otherwise be permissive or required, the Members and Managers stipulate that all
actions arising under or affecting this Agreement shall be brought in the appropriate city and/or county courts in the City of
New York, State of New York (the “State Courts”) or the United States District Court for the Southern District
of New York in the State of New York (the “Federal Court”), the Members and Managers agreeing that such forums
are mutually convenient and bear a reasonable relationship to this Agreement.

 

17.17     Consent
to Jurisdiction and Service of Process. The parties irrevocably submit to the jurisdiction of the State Courts and the Federal
Court for the purpose of any suit, action, or other proceeding arising under or affecting this Agreement. In addition to all other
proper forms of service of process, the Members and Managers hereby agree that service of process may be accomplished by providing
such service in accordance with the notice provisions of Section 17.5.

 

17.18     Attorneys’
Fees. In any action or suit arising out of this Agreement, the prevailing party, as determined by the trier of fact, shall
be entitled to recover from the other party its reasonable attorneys’ fees and costs incurred in such action or suit. Reasonable
attorneys’ fees shall be based upon such fees actually incurred at the customary hourly rates of attorneys in the New York,
New York area for the expertise required and shall not be based upon any statutory presumptions or rates.

 

17.19     Waiver
of Right to Jury Trial. The Manager and Members do each hereby waive to the fullest extent of the law their right to a jury
trial in regard to any matter, issue, dispute or other claim which arises out of this Agreement or the transactions contemplated
by this Agreement. The Manager and each Member represent to one another that each has sought the advice of legal counsel in waiving
its right to a jury trial and makes such waiver willingly and freely.

 

[SIGNATURES APPEAR ON THE IMMEDIATELY FOLLOWING PAGES]

 

    	38

    	 

    

 

MEMBER SIGNATURE

 

The undersigned Member,
agreeing to be bound by the foregoing, executes this Agreement as of the 20th day of May, 2015.

 

	 	CLASS A MEMBER:
	 	 
	 	BRG WHETSTONE DURHAM, LLC, a Delaware limited

    liability company
	 	 
	 	By:	Bluerock Residential Holdings, LP, a Delaware

limited partnership, its Sole
    Member
	 	 	 	 
	 	 	By:	Bluerock Residential Growth REIT, Inc., a

    Maryland corporation, its General Partner

 

	 	By: 	/s/ Michael L. Konig_
	 	 	Michael L. Konig
	 	Its:	COO, Secretary and General Counsel

 

	 	CLASS B MEMBER:
	 	 
	 	BLUEROCK SPECIAL OPPORTUNITY + INCOME

    FUND III, LLC, a Delaware limited liability company
	 	 
	 	By:	BR SOIF III Manager, LLC, a Delaware limited

    liability company, its Manager
	 	 	 	 
	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Jordan Ruddy, Authorized Signatory

 

    	39

    	 

    

 

COMPANY AND MANAGER SIGNATURES

 

The Company and the
Manager, agreeing to be bound by the foregoing, execute this Agreement as of the 20th day of May, 2015.

 

	 	COMPANY:
	 	 
	 	BR WHETSTONE MEMBER, LLC
	 	 
	 	By:	Bluerock Special Opportunity + Income Fund III,

    LLC, a Delaware limited liability company, its

    Manager
	 	 	 	 
	 	 	By:	BR SOIF III Manager, LLC, a Delaware

    limited liability company, its Manager

 

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

 

    	40

    	 

    

 

	 	MANAGER:
	 	 
	 	BLUEROCK SPECIAL OPPORTUNITY + INCOME

    FUND III, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:	BR SOIF III Manager, LLC, a Delaware limited

    liability company, its Manager
	 	 	 	 
	 	 	By:	/s/ Jordan Ruddy
	 	 	 	Jordan Ruddy, Authorized Signatory

 

    	41

    	 

    

 

SCHEDULE I

 

Class A Member: BRG Whetstone Durham, LLC

 

Class A Capital Commitment: $12,230,730 (inclusive of $1,223,073
for projected Class A Preferred Reserve)

 

Class A Initial Capital Contribution: $12,230,730 (inclusive
of $1,223,073 for projected Class A Preferred Reserve)*

 

Class B Members

 

	Member	 	Class B
 Membership 

Interest	 	 	Initial Capital
 Contribution
 (cash)	 
	 	 	 	 	 	 	 
	Bluerock Special Opportunity + Income Fund III, LLC	 	 	100.0	%	 	$	1,434,910	**
	 	 	 	 	 	 	 	 	 
	Total	 	 	100.00	%	 	$	1,434,910	 

 

*Represents eight months’ worth of reserves to pay Current
Class A Return and all scheduled capital commitments to complete the Parking Improvements..

 

*Includes all scheduled capital commitments to complete the
Parking Improvements..

 

    	 

    	 

    

 

SCHEDULE II

 

Analysis for Class B Redemption
Consideration is attached. This analysis assumes the Members have fully funded their respective initial Capital Contributions,
that the Class A Capital Commitment has been fully funded, that the Parking Improvements were completed on Budget, and that all
Current Class A Returns and Priority Class A Returns have been paid. In the event that the Class B Members’ Capital Contributions
were substantially more than projected (for example through Additional Capital Contributions due to substantial cost overruns to
complete the Parking Improvements or for the costs or additional equity required to complete a refinancing of the Loan if that
occurs prior to issuance of a Conversion Notice), the Members will confer and in good faith determine a commensurate adjustment
to the attached analysis.

 

    	2

    	 

    

 

	Whetstone
    MM & SOIF Buyout

 

	BR Managing Member JV
	Bluerock Project Equity	 	 	 	 	 	$	12,427,568	 
	MM Items:	 	 	 	 	 	$	15,000	 
	 	 	 	 	 	 	$	12,442,568	 
	 	 	 	 	 	 	 	 	 
	BRG ProRata	 	 	88.5	%	 	$	11,007,657.26	 
	SOIF Share	 	 	11.5	%	 	$	1,434,910.28	 
	 	 	 	 	 	 	$	12,442,568	 
	 	 	 	 	 	 	 	 	 
	Preferred Equity Term	 	 	 	 	 	 	12 months	 
	Interest Reserve Funding Amount	 	 	 	 	 	 	8 months	 
	Preferred Return	 	 	 	 	 	 	15.0	%
	 	 	 	 	 	 	 	 	 
	Principal	 	 	 	 	 	 	11,007,657	 
	Interest Reserve	 	 	 	 	 	 	1,223,073	 
	Total BR MM JV Investment	 	 			 	$	12,230,730	 
	 	 	 	 	 	 	 	 	 
	BRG Cash:	 	 	89.50	%	 	$	12,230,730	 
	SOIF III Cash:	 	 	10.50	%	 	$	1,434,910	 
	 	 	 	 	 	 	$	13,665,641	 

 

	Updated SOIF Buyout Analysis
	Buyout Value	 	 	 	 	 	$	39,600,000	 
	Less: Debt	 	 	 	 	 	 	(25,147,500	)
	Plus: Closing Cost Reimbursement	 	 	 	 	 	 	2,957,708	 
	NAV	 	 	 	 	 	$	17,410,208	 
	 	 	 	 	 	 	 	 	 
	Bluerock Owner % In Prop JV	 	 	92.5	%	 	 	16,104,443	 
	 	 	 	 	 	 	 	 	 
	SOIF Buyout - % In MM JV	 	 	10.5	%	 	 	1,690,988	 
	Interest & Cash Flow	 	 	 	 	 	 	242,516	 
	Total Proceeds	 	 	 	 	 	 	1,933,504	 
	Investment	 	 	 	 	 	 	(1,449,883	)
	SOIF Profit	 	 	 	 	 	$	483,621	 
	 	 	 	 	 	 	 	 	 
	SOIF IRR	 	 	 	 	 	 	65.56	%
	SOIF EM	 	 	 	 	 	 	1.33	x

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