Document:

Exhibit 10.12

 

BR OAK
CREST VILLAS, LLC

LIMITED LIABILITY COMPANY agreement

 

This Limited Liability
Company Agreement (this “Agreement”) is adopted, executed, and agreed to this 12th day of December, 2011, by
Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company with its principal executive offices located
at 70 East 55th Street, 9th Floor, New York, New York 10022, as sole member (the “Member”).

 

ARTICLE
1

organization and name; office; purpose; term

 

1.1           Organization.
The Member has organized a limited liability company (the “Company”) pursuant to the Delaware Limited Liability
Company Act, as amended from time to time (the “Act”), by the filing of a Certificate of Formation of the Company
with the Secretary of State of the State of Delaware. Deborah Huet is hereby designated and ratified as an authorized person, within
the meaning of the Act, to execute, deliver and file the Certificate of Formation of the Company. This Agreement, as it may be
amended from time to time in accordance with its terms and the Act, is the limited liability company agreement (as such term is
defined in the Act) of the Company.

 

1.2           Name
of the Company. The name of the Company shall be “BR Oak Crest Villas, LLC.” The Company may do business under
that name and under any other name or names as the Member or the Managers (as defined in Section 4.1) may determine from
time to time. If the Company does business under a name other than that set forth in its Certificate of Formation, then the Company
shall file any certificate with respect to such other name as may be required by the Act or other applicable law.

 

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

 

1.4           Term.
The term of the Company shall begin upon the filing of the Certificate of Formation with the Secretary of State of the State of
Delaware and shall continue in perpetuity unless and until its existence is terminated pursuant to Section 6.1 of this Agreement.

 

1.5           Registered
Agent and Office. The registered agent for the service of process and registered office of the Company shall be the agent and
location set forth in the Certificate of Formation. The Company may change the registered agent or registered office of the Company
by the making of appropriate filings in accordance with the Act.

 

1.6           Executive
Office. The principal executive offices of the Company shall be located at 70 East 55th Street, 9th Floor,
New York, New York 10022, or at such other location as may hereafter be determined by the Member or the Managers.

 

    	 

    	 

    

 

ARTICLE
2

 

memberS;
INTERESTS; capital accounts

 

2.1           Admission
of the Member. Simultaneously with the execution and delivery of this Agreement, the Member is admitted as the sole member
of the Company. The name and present mailing address of the Member is as set forth in the preamble hereto.

 

2.2           Admission
of Additional Members. The Company may admit one or more additional members to the Company on such terms as the sole Member
may determine.

 

2.3           Interests.
The Company shall be authorized to issue a single class of limited liability company interests (as defined in Section 18-101(8)
of the Act) (“Interests”).

 

2.4           Capital
Contributions. Simultaneously with the execution and delivery of this Agreement, the Member is contributing to the Company
cash in the amount of $100.00 in exchange for 100% of the Interests. The Company may accept additional capital contributions on
such terms as the Member and the Managers may determine from time to time, but the Member shall not be required to contribute additional
capital to the Company.

 

2.5           Capital
Accounts. The Member shall have a capital account determined and maintained in accordance with Treasury Regulations Section
1.7041(b)(2)(iv).

 

2.6           No
Interest or Return of Capital Contribution. The Member shall not be paid interest on its capital contribution or other amounts
credited to its capital account. Except as otherwise provided in this Agreement, the Member shall not have the right to receive
any return of its capital contribution or other amounts credited to its capital account.

 

2.7           Loans.
The Member may make or cause a loan to be made to the Company in such amount and on such terms as may be determined by the Member
and the Managers.

 

2.8           Member
Business Activities. The Member may engage in or possess an interest in other business ventures of any nature, whether or not
similar to or competitive with the activities of the Company. The Company may enter into contracts or transactions with the Member,
or the affiliates of the Member, on such terms as the Member (or affiliate) and the Managers may determine.

 

ARTICLE
3

 

Distributions;
allocation of PROFIT and LOSS

 

3.1           Distributions
of Cash Flow. The Company may distribute to the Member any cash held by it that is neither reasonably necessary for the operation
of the Company or its business, as may be determined from time to time by the Managers, nor prohibited from being distributed by
Section 18-607 or Section 18-804 of the Act. The amount of any such distribution and the timing of the payment thereof shall be
determined by the Managers.

 

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3.2           Form
of Distributions. If any distribution of the capital contribution of the Member, or any portion thereof, is made, the Company
may distribute cash, notes or other property, or a combination thereof, to the Member in such return of the capital contribution.

 

3.3           Allocation
of Profit and Loss. The Company’s profits and losses shall be allocated entirely to the Member.

 

ARTICLE
4

 

management;
rights, powers and duties

 

4.1          Managers.
Except as otherwise required by the Act or provided by this Agreement, the persons or entities designated in or pursuant to this
Agreement as the manager(s) of the Company (each, a “Manager” and collectively, the “Managers”)
shall have full, exclusive and complete discretion to manage and control the business and affairs of the Company in accordance
with the terms and provisions of this Agreement. Bluerock Special Opportunity + Income Fund II, LLC is hereby designated as the
initial Manager.

 

4.1.1     Number.
The initial number of Managers shall be one (1) and the Member shall have the power to increase the number of Managers from time
to time.

 

4.1.2     Appointment
and Removal. Each of the Managers will be designated from time to time by the Member and will hold office until removed by
the Member or until such Manager’s earlier death, disability or resignation. Any Manager may be removed as such at any time
by the Member, either with or without cause, in the discretion of the Member.

 

4.1.3     Powers.
The Managers, acting jointly and not individually, shall have the full and exclusive right and power to act for and bind the Company.
Any action approved by the sole Manager or a majority of the Managers then in office, as applicable, shall be the act of the Managers.

 

4.1.4     Action
by Written Consent. Any action required by the Act to be taken at any meeting of the Managers, or any action that may be taken
at any meeting of the Managers, may be taken without a meeting, without prior notice, and without a vote, if a written consent,
setting forth the action so taken, is signed by each of the Managers.

 

4.1.5     Compensation.
The salary or other compensation, if any, of the Managers will be fixed from time to time by the Member. Designation of a person
as a Manager shall not of itself create contract rights.

 

4.2          Officers.
The Managers may cause the Company to employ and retain such other persons (including persons related to or affiliated with the
Member or Managers) as may be necessary or appropriate for the conduct of the Company’s business, on such terms as the Managers
shall determine, including persons who may be designated as officers. The officers of the Company shall have the titles, powers
and duties delegated to them by the Managers. Any number of titles may be held by the same officer.

 

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ARTICLE
5

 

Limited
Liability; Exculpation; indemnification

 

5.1          Limited
Liability. Except as otherwise provided in the Act, the debts, obligations and liabilities of the Company, whether arising
in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Member or Manager
shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member or acting
as a Manager.

 

5.2          Exculpation.
Except as otherwise provided by the Act or other applicable law, no Member, Manager or officer of the Company shall be liable,
responsible or accountable in any way for damages or otherwise to the Company, to another Member, a Manager, or to another person
that is a party to or is otherwise bound by this Agreement, for any breach of contract or breach of duties (including fiduciary
duties) unless there is a judicial determination that such person’s act or omission constitutes a bad faith violation of
the implied contractual covenant of good faith and fair dealing.

 

5.3          Indemnification.

 

5.3.1     Mandatory
Indemnification. The Company shall indemnify and hold harmless each Member, Manager or officer of the Company severally (collectively,
the “Indemnitees”), who was or is a party, or is threatened to be made a party, to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a “proceeding”)
by reason of the fact that the person is or was a Member, Manager or officer of the Company, to the fullest extent that the Company,
if organized as a corporation under the Delaware General Corporation Law (the “DGCL”), would be permitted to
indemnify any such Indemnitee under the DGCL, as the same exists or may hereafter be amended (provided, however, that any such
amendment will not adversely affect any right of an Indemnitee existing at the time of such amendment), against all expenses (including
attorneys’ fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by such Indemnitee in
connection therewith; provided, however that (a) the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed
to be in or not opposed to the best interests of the Company, and (b) with respect to any criminal action or proceeding, the Indemnitee
had no reasonable cause to believe their conduct was unlawful.

 

5.3.2     Right
to Advancement of Expenses. Expenses (including attorneys’ fees) incurred by an Indemnitee in defending any proceeding
will be paid by the Company in advance of the final disposition of such proceeding upon receipt by the Company of an undertaking
by or on behalf of such Indemnitee to repay such amount if it is ultimately determined that the Indemnitee is not entitled to be
indemnified for such expenses pursuant to Section 5.3.1.

 

5.3.3     Permissible
Indemnification of Others by the Company. To the extent authorized by the Managers and permitted by the Act, the Company may,
but will not be obligated to, (a) indemnify any person who was or is a party, or is threatened to be made a party, to any proceeding
by reason of the fact that the person is or was an employee or agent of the Company, or is or was serving at the request of the
Company as an officer, employee or agent of another corporation, partnership, limited liability company, joint venture, trust or
other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually
and reasonably incurred by the person in connection with such proceeding and (b) advance expenses incurred by such a person in
defending such a proceeding in advance of its final disposition.

 

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ARTICLE
6

 

dissolution,
liquidation and termination of the company

 

6.1           Events
of Dissolution. The Company shall be dissolved upon the first to occur of any of the events specified in Section 18-801(a)(3),
Section 18-801(a)(4) or Section 18-801(a)(5) of the Act.

 

6.2           Distributions
Upon Dissolution. Upon the winding up of the Company, the assets of the Company shall be distributed in accordance with Section
18-804 of the Act.

 

ARTICLE
7

 

TAX,
ACCOUNTING AND FISCAL MATTERS

 

7.1           Tax
Elections. For so long as the Company has a single Member, the Company shall conduct its affairs so as to be disregarded as
an entity separate from such Member for federal income tax purposes pursuant to Treasury Regulation § 301.7701-3(b)(1)(ii)
and for relevant state tax purposes. All provisions of the Certificate of Formation and this Agreement shall be construed so as
to preserve such tax status.

 

7.2           Fiscal
Year. The fiscal year of the Company shall be the calendar year for tax and accounting purposes.

 

7.3           Method
of Accounting. The Member shall select a method of accounting for the Company.

 

7.4           Records
and Accounting. The Managers shall keep or cause to be kept appropriate books and records with respect to the Company’s
business (including without limitation, any books, records, statements, or information required to be maintained by the Company
under the Act) and full and accurate records of all transactions of the Company in accordance with sound accounting principles
consistently applied. The books and records of the Company shall, at all times, be kept at the principal office of the Company
or such other office as the Managers may approve for such purposes. Any books and records maintained by the Company in the regular
course of its business, including books of account and records of Company proceedings, may be kept on, or be in the form of, any
electronic storage advice, provided that the books and records so kept are convertible into clearly legible written form within
a reasonable period of time.

 

7.5           Bank
Accounts. The Managers shall open and maintain (in the name of the Company) bank accounts in which shall be deposited all funds
of the Company. Withdrawals from any such account shall be made upon the signature or signature of a Manager or such officer or
other agent of the Company as may be designed for such purposes from time to time by the Managers.

 

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ARTICLE
8

 

general
provisions

 

8.1           Applicable
Act. All questions concerning the construction, validity, and interpretation of this Agreement and the performance of obligations
imposed by this Agreement shall be governed by the internal law, not the law of conflicts, of the State of Delaware.

 

8.2           Article
and Section Titles. The headings herein are inserted as a matter of convenience only and do not define, limit or describe the
scope of this Agreement or the intent of the provisions hereof.

 

8.3           Separability
of Provisions. Each provision of this Agreement shall be considered separable; and if, for any reason, any provision or provisions
herein are determined to be invalid and contrary to any existing or future law, such invalidity shall not impair the operation
of or affect those portions of this Agreement that are valid.

 

8.4           Amendment;
Entire Agreement. This Agreement may not be amended except by a writing signed by the Member. This Agreement sets forth the
entire agreement relative to the organization and management of the Company.

 

(Signature on following
page)

 

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

 

	 	SOLE MEMBER:
	 	 
	 	Bluerock Special Opportunity + Income Fund II, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	BR SOIF II MANAGER, LLC, a Delaware limited liability company, its manager
	 	 
	 	 	By:	/s/ Jordan S. Ruddy
	 	 	 	Jordan S. Ruddy, PresidentExhibit 10.13

 

FIRST AMENDMENT

TO

LIMITED LIABILITY COMPANY AGREEMENT

OF

BR OAK CREST VILLAS, LLC,

A DELAWARE LIMITED LIABILITY COMPANY

 

THIS FIRST AMENDMENT
to the Limited Liability Company Agreement (the “Amendment”) of BR OAK CREST VILLAS, LLC, a Delaware limited
liability company (the “Company”) is made and entered into to be effective as of the 2nd day of
April, 2014, by BRG OAK CREST, LLC, a Delaware limited liability company (“BRG”); DR. REZA KAMFAR and
FOROUGH KAMFAR, as joint tenants with rights of survivorship, and STEPHANIE KAMFAR, as Members (each a “Member”
and together, the “Members”); and BRG, as Manager (the “Manager”).

 

RECITALS

 

WHEREAS, BR Oak Crest
Villas, LLC was duly formed on December 12, 2011 pursuant to the Act.

 

WHEREAS, the initial
member of the Company, Bluerock Special Opportunity + Income Fund II, LLC, a Delaware limited liability company (“SOIF
II”), entered into that certain Limited Liability Company Agreement for the Company dated effective as of December 12,
2011 (the “LLC Agreement”).

 

WHEREAS, by virtue
of certain assignment of membership interests agreements, each dated effective as of February 1, 2012, (i) SOIF II
transferred and assigned a 3.284% membership interest in the Company to Dr. Reza Kamfar and Forough Kamfar, as joint tenants
with rights of survivorship (and Dr. Reza Kamfar and Forough Kamfar were admitted as members of the Company); and (ii) SOIF II
transferred and assigned a 3.284% membership interest in the Company to Stephanie Kamfar (and Stephanie Kamfar was admitted as
a member of the Company). Following the completion of such assignments, Dr. Reza Kamfar and Forough Kamfar, as joint tenants
with rights of survivorship, held a 3.284% membership interest in the Company, SOIF II held a 93.432% membership interest
in the Company, and Stephanie Kamfar held a 3.284% membership interest in the Company.

 

WHEREAS, by virtue
of that certain Assignment of Membership Interests dated effective as of April 2, 2014, SOIF II has transferred and assigned
its entire 93.432% membership interest in the Company to BRG, and BRG has been admitted to the Company as a member.

 

WHEREAS, the Members
desire to amend the LLC Agreement as of the date set forth above. Capitalized terms used herein without definition shall have the
meanings given in the LLC Agreement.

 

    	 

    	 

    

 

AGREEMENT

 

 

NOW, THEREFORE,
the LLC Agreement is hereby modified and amended as follows:

 

1.             All
references in the LLC Agreement to the “Member” shall be amended and modified to mean the Members identified in this
Amendment and any person admitted to the Company pursuant to the LLC Agreement, and each Member identified herein shall be a “Member”
for purposes of the LLC Agreement as the context requires.

 

2.             Section 1.6
of the LLC Agreement (Executive Office) is deleted and replaced with the following:

 

“The principal executive
offices of the Company shall be located at c/o BRG Manager, LLC, 712 Fifth Avenue, 9th Floor, New York, New York
10019, or in each case, at such other place or places as may be determined by the Manager from time to time.”

 

3.             Section 2.1
of the LLC Agreement (Admission of the Member) is deleted and replaced with the following:

 

“The name and present mailing
address of each Member is as set forth on Exhibit A attached hereto.”

 

4.             Section 2.2
of the LLC Agreement (Addition of Additional Members) is modified and amended by substituting “the Manager” for the
phrase “the sole Member.”

 

5.             The
first sentence of Section 2.4 of the LLC Agreement (Capital Contributions) is deleted and replaced by the following:

 

“The Members have previously
made the capital contributions to the Company set forth on Exhibit A attached hereto.”

 

6.             Section 2.7
of the LLC Agreement (Loans) is deleted and replaced by the following:

 

“The Members may make or
cause a loan to be made to the Company in such amount and on such terms as may be determined by the Manager.”

 

7.            The
second sentence of Section 4.1 of the LLC Agreement (Managers) is deleted and replaced by the following:

 

“BRG Oak Crest, LLC (“BRG”)
is hereby designated as the sole manager of the Company, and the terms “Manager” and “Managers” as used
herein shall hereafter mean BRG or any person that succeeds BRG as manager of the Company. Notwithstanding anything to the contrary
contained in this Section 4.1, BRG shall have the sole right to remove the Manager, with or without cause, in its sole discretion.”

 

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8.            Section 7.1
of the LLC Agreement (Tax Elections) is deleted and replaced by the following:

 

“BRG is hereby designated
as the “tax matters partner” (the “Tax Matters Member”) of the Company and its subsidiaries, as
defined in Section 6231(a)(7) of the Internal Revenue Code (“Code”), and shall prepare or cause to be prepared
all income and other tax returns of the Company and its subsidiaries pursuant to the terms and conditions hereof. Except as otherwise
provided in this Agreement, all elections required or permitted to be made by the Company and its subsidiaries under the Code or
state tax law shall be timely determined and made by BRG. The Members intend that the Company be treated as a partnership for U.S.
federal, state and local tax purposes, and the Members will not elect or authorize any person to elect to change the status of
the Company from that of a partnership for U.S. federal, state and local income tax purposes. In addition, upon the request of
any Member, the Company and each subsidiary shall make an election pursuant to Code Section 754 to adjust the basis of the Company’s
property in the manner provided in Code Sections 734(b) and 743(b). The Company hereby indemnifies and holds harmless BRG from
and against any claim, loss, expense, liability, action or damage resulting from its acting or its failure to take any action as
the “tax matters partner” of the Company and its subsidiaries, provided that any such action or failure to act does
not constitute gross negligence or willful misconduct. The Manager shall cause to be prepared all income and other tax returns
of the Company and its subsidiaries required by applicable law. No later than the due date or extended due date thereof, the Manager
shall deliver or cause to be delivered to each Member a copy of the tax returns for the Company and its subsidiaries with respect
to such fiscal year, together with such information with respect to the Company and its 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.”

 

9.           Section
7.3 of the LLC Agreement (Method of Accounting) is modified and amended by substituting “The Manager” for “The
Member.”

 

10.         Exhibit A
to this Amendment is hereby added to the LLC Agreement by this reference.

 

11.         Section 8.1
of the LLC Agreement (Applicable Act) is modified and amended by adding the following thereto:

 

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

 

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12.         The
following shall be added as new Section 8.5 of the LLC Agreement:

 

8.5         Operation
in Accordance with REOC Requirements

 

(a)         The
Members acknowledge that BRG or one or more of its affiliates (each, a “BR Affiliate”) intends to qualify as
a “real estate operating company” or “venture capital operating company” within the meaning of U.S. Department
of Labor Regulation 29 C.F.R. §2510.3-101 (a “REOC”), and agree that the Company and its subsidiaries shall
be operated in a manner that will enable BRG and such BR Affiliate to so qualify. Notwithstanding anything herein to the contrary,
the Company and its subsidiaries shall not take, or refrain from taking, any action that would result in BRG or a BR Affiliate
from failing to qualify as a REOC. The Members (a) shall not fund any capital contribution “with the 'plan assets' of any
'employee benefit plan' within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended,
or any 'plan' as defined by Section 4975 of the Internal Revenue Code of 1986, as amended", and (b) shall comply with any
requirements specified by BRG in order to ensure compliance with this Section 8.5.

 

(b)         Notwithstanding
anything in this Agreement to the contrary, unless specifically agreed to by the Manager in writing, neither the Company nor its
subsidiaries shall hold any investment, incur any indebtedness or otherwise take any action that would cause any Member of the
Company (or any person holding an indirect interest in the Company through an entity or series of entities treated as partnerships
for U.S. federal income tax purposes) to realize any “unrelated business taxable income” as such term is defined in
Code Sections 511 through 514 (“UBTI”). 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 that certain multi-family apartment complex known as the “Villas
at Oak Crest Apartments” located at 7255 Lee Highway, Chattanooga, Tennessee 37421 (the “Property”).

 

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

 

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

 

(ii)        Leasing,
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;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Notwithstanding the foregoing provisions
of this Section 8.5(c), the Company may enter into a REIT Prohibited Transaction if it receives the prior written approval of the
REIT Member specifically acknowledging that the REIT Member is approving a REIT Prohibited Transaction pursuant to this Section
8.5 (c). For purposes of this Section 8.5 (c), “REIT Prohibited Transactions” shall mean any of the actions
specifically set forth in this Section 8.5(c).

 

(d)          For
purposes hereof, the “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. 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.

 

    	6

    	 

    

 

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 Members 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.

 

13.          The
following shall be added as new Section 8.6 of the LLC Agreement:

 

8.6           Transfers.

 

(a)           Except
as otherwise provided in this Section 8.6 or as approved by the Manager, no Member shall 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, BRG shall have the right, without 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 cause of its business and operations.

 

(b)           Subject
to the provisions 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 Members against loss or damage resulting therefrom.

 

    	7

    	 

    

 

(c)           Notwithstanding
anything to the contrary contained in this Agreement, the following transfers shall not require the approval set forth in this
Section 8.6:

 

(i)          Any
Transfer by BRG or a BRG Transferee of up to one hundred percent (100%) of its membership interest in the Company to any affiliate
of BRG, including but not limited to (A) Bluerock Residential Growth REIT, Inc. (“BR REIT”) or any person or
entity that is directly or indirectly owned by BR REIT and/or (B) Bluerock Residential Holdings, L.P. (“BR REIT LP”)
or any person or entity that is directly or indirectly owned by BR REIT LP (collectively, a “BRG Transferee”).
Upon the execution by any such BRG Transferee of such documents necessary to admit such party into the Company and to cause the
BRG Transferee to become bound by this Agreement, the BRG Transferee shall become a Member, without any further action or authorization
by any other Member.”

 

14.          The
following shall be added as new Section 8.7 of the LLC Agreement:

 

(a)           Company
Interest. If, at any time following the first anniversary of the date of this Agreement, (i) BRG desires to offer the Company
Interest for sale on specified terms, or (ii) receives from an unaffiliated purchaser a bona fide written cash offer (i.e., not
seller financed) for the purchase of such Company Interest on terms that BRG desires for the Company to accept (such specified
terms or bona fide offer being herein called the “Offer”), then BRG (the “Initiating Member”)
shall provide written notice of the terms of such Offer (the “Sale Notice”) to the other Members (collectively,
the “Non-Initiating Members”). For purposes hereof, the term “Company Interest” shall mean
all of the Company’s interest in Villas Partners, LLC, including its limited liability company interest and any managerial
interest therein.

 

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

 

(c)           Offer
Unacceptable. If the Non-Initiating Members do not wish for the Company to make or accept the Offer, the Initiating Member
shall be entitled to purchase the membership interests of the Non-Initiating Members, in which case the Non-Initiating Members
must sell their respective membership interests for an amount equal to the aggregate amount that would be distributable to such
Non-Initiating Members if the Company had accepted the Offer, closed the sale pursuant to such Offer and wound up its affairs
pursuant to this Agreement. The Initiating Member must exercise this option, if at all, by delivering written notice thereof to
the Non-Initiating Members within twenty (20) days after the end of the Response Period. The Initiating Member shall pay the Non-Initiating
Members cash for their respective membership interests. Closing shall take place on or before the date specified in the Sale Notice.
If the Initiating Member defaults at closing, the non-defaulting party shall have the right to bring suit for damages or for specific
performance, or to exercise any other remedy available at law or in equity. Upon payment at closing, the Non-Initiating Members
shall execute and deliver all documents reasonably required to transfer the Interests being sold.

 

    	8

    	 

    

 

(d)           Offer
Acceptable. If the Non-Initiating Members consent (or are deemed to have consented) to the Company selling the Company Interest
on the terms of the Offer, then the Initiating Member shall be allowed to sell the Company Interest for cash on the terms of the
Offer for a period of up to one hundred eighty (180) days following the expiration of the Response Period. If the Initiating Member
obtains a bona fide third party contract to sell the Company Interest on the terms of the Offer within such one hundred eighty
(180) day period, the Initiating Member shall have an additional period of ninety (90) days after the date of such contract (that
is, not to exceed 270 days after the expiration of the Response Period) in which to consummate such sale. If after having received
the consent (or deemed consent) of the Non-Initiating Members to the sale of such Company Interest on the terms of the Offer,
the Initiating Member is unable to obtain a bona fide contract within such one hundred eighty (180) day period, or if after having
obtained such bona fide contract, the Initiating Member is unable to consummate such sale within 270 days after the expiration
of the Response Period, then the Initiating Member must again submit an Offer to the Non-Initiating Members under the terms of
this Section 8.7 before it may sell such Company Interest.”

 

The LLC Agreement,
as amended, remains in full force and effect, unmodified except as specifically set forth herein. In the event of any conflict
between the provisions of this Amendment and the provisions of the LLC Agreement, the provisions of this Amendment shall govern
and control. This Amendment shall be governed by the laws of the State of Delaware.

 

[REST OF PAGE LEFT INTENTIONALLY BLANK]

 

    	9

    	 

    

 

IN WITNESS WHEREOF, the Members have
executed this Amendment to be effective as of the date set forth above.

 

	 	MEMBERS:
	 	 
	 	BRG OAK CREST, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	Bluerock Residential Holdings, L.P.,
	 	 	a Delaware limited partnership,
	 	 	its Sole Member
	 	 	 
	 	 	By:	Bluerock Residential Growth REIT, Inc.,
	 	 	 	a Maryland corporation,
	 	 	 	its General Partner
	 	 	 
	 	 	 	By:	/s/ Christopher J. Vohs
	 	 	 	 	Christopher J. Vohs
	 	 	 	 	Chief Accounting Officer

 

	 	/s/ Dr. Reza Kamfar	 
	 	Dr. Reza Kamfar
	 	 
	 	/s/ Forough Kamfar	 
	 	Forough Kamfar
	 	 
	 	/s/ Stephanie Kamfar	 
	 	Stephanie Kamfar

 

    	10

    	 

    

 

EXHIBIT A

 

Capital Contributions and Percentage
Interests

 

	Member Name & Address	 	Capital Contribution	 	Percentage Interest	 
	 	 	 	 	 	 	 	 
	BRG Oak Crest, LLC
  
 c/o Bluerock Real Estate
 712 Fifth Avenue, 9th Floor,
 New York, New York 10019
	 	$	[2,902,073.00	]	 	93.432	%
	 	 	 	 	 	 	 	 
	Dr. Reza Kamfar and Forough Kamfar	 	$	[100,000.00	]	 	3.284	%
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Stephanie Kamfar	 	$	[100,000.00	]	 	3.284	%
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

 

    	11

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