Exhibit 10.1


 


EMPLOYMENT AGREEMENT


 


This EMPLOYMENT AGREEMENT
(this “Agreement”), effective as of September 26, 2013 (the “Effective Date”), is made
and entered into by and between Trade Street Residential, Inc., a Maryland corporation with its principal place of business at
19950 West Country Club Drive, Suite 800, Aventura, Florida 33180 (together with its subsidiaries, the “Company”),
and Michael Baumann, an individual resident of the State of Florida (the “Executive”).


 


WITNESSETH:


 


WHEREAS, the Company desires to employ
the Executive as Chief Executive Officer and Chairman of the Company, and the Executive desires to accept said employment by the
Company; and


 


WHEREAS, the Company and the Executive
desire to express the terms and conditions of the Executive’s employment in this Agreement.


 


NOW, THEREFORE,
in consideration of the foregoing recitals, the mutual promises and covenants set forth below and other good and valuable consideration,
receipt of which is hereby acknowledged, the Company and the Executive do hereby agree as follows:


 


		1.	Definitions. For purposes of this Agreement, all initially capitalized words and phrases
used herein have the following meanings:



 


“Affiliate” shall mean, with respect
to any individual or entity, any other individual or entity who, directly or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with such individual or entity.


 


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


 


“Base Salary” shall have the meaning
set forth in Section 5.1 hereof.


 


“Board” shall mean the board of
directors of the Company.


 


“Bonus” shall
have the meaning set forth in Section 5.2 hereof.


 


“Cause”
shall mean that the Executive has (a) continually failed to substantially perform, or been grossly negligent in the discharge of,
his duties to the Company (in any case, other than by reason of a Disability, physical or mental illness or analogous condition)
and, in the case of failure to substantially perform, failed to cure such breach within thirty (30) days of receipt from the Company
of notice specifying such non-performance; (b) been convicted of or pled guilty or nolo contendere to a felony or a misdemeanor
with respect to which fraud or dishonesty is a material element; or (c) materially breached any material Company policy or agreement
with the Company and failed to cure such breach within thirty (30) days of receipt from the Company of notice specifying such material
breach.


 


“Change
of Control” shall mean the first of the following events to occur after the Effective Date:


 




    	 



    	 



    

 


(a)          any
Person or group of Persons together with its Affiliates, but excluding (i) the Company or any of its Subsidiaries, (ii) any employee
benefit plans of the Company or (iii) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company, is or becomes, directly or indirectly, the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act) of securities of the Company representing fifty percent (50%) or more of the
combined voting power of the Company’s then outstanding securities (not including in the securities beneficially owned by
such Person any securities acquired directly from the Company);


 


(b)          the
following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on
the Effective Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection
with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of
directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders
was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors
on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended;


 


(c)          the
consummation of a merger or consolidation of the Company or any direct or indirect Subsidiary of the Company with any other corporation
or entity regardless of which entity is the survivor, other than a merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or being converted
into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities
of the Company, such surviving entity or any parent thereof outstanding immediately after such merger or consolidation; or


 


(d)          the
stockholders of the Company approve a plan of complete liquidation or winding-up of the Company or there is consummated an agreement
for the sale or disposition by the Company of all or substantially all of the Company’s assets.


 


Notwithstanding
the foregoing, (i) a “Change of Control” shall not be deemed to have occurred by virtue of the consummation of any
transaction or series of integrated transactions immediately following which the holders of the common stock of the Company immediately
prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity
which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions,
and (ii) a “Change of Control” shall not occur for purposes of this Agreement as a result of any primary or secondary
offering of Company common stock to the general public through a registration statement filed with the Securities and Exchange
Commission.


 


Notwithstanding
the foregoing, to the extent that (i) any payment under this Agreement is payable solely upon or following the occurrence of a
Change of Control and (ii) such payment is treated as “deferred compensation” for purposes of Code Section 409A, no
event that would not qualify as a “change in the ownership of the Company,” a “change in the effective control
of the Company,” or a “change in the ownership of a substantial portion of the assets of the Company” as such
terms are defined in Section 1.409A-3(i)(5) of the Treasury Regulations, shall be treated as a “Change of Control”
under this Agreement.


 




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“COBRA” means
the applicable provisions of Section 4980B of the Code and corresponding provisions of ERISA.


 


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


 


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


 


“Company Works” shall have the
meaning set forth in Section 10.2(b) hereof.


 


“Competing Entity” shall have the
meaning set forth in Section 10.1 hereof.




“Confidential Information” shall have the meaning set forth in Section 10.2(a) hereof.


 


“Disability”
means a physical or mental condition entitling the Executive to benefits under the applicable long-term disability plan of the
Company or, if no such plan exists, a “permanent and total disability” (within the meaning of Code Section 22(e)(3))
or as determined by the Company in accordance with applicable laws. Notwithstanding the foregoing, to the extent that (a) any payment
under this Agreement is payable solely upon the Executive’s Disability and (b) such payment is treated as “deferred
compensation” for purposes of Code Section 409A, Disability shall have the meaning provided in Code Section 409A and Section
1.409A-3(i)(4) of the Treasury Regulations.


“Effective Date” shall have the
meaning set forth in the introductory paragraph above.


 


“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.


 


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


 


“Good
Reason” means (a) a material diminution in the Executive’s title, duties or responsibilities (provided, however,
that a requirement to utilize skills in addition to those utilized in the Executive’s current position shall not in and of
itself be considered a “material diminution” as contemplated by this clause (a), but a material reduction in the corporate
functions directly reporting to the Executive shall be considered a material diminution for purposes of this clause (a)); (b) a
reduction of ten percent (10%) or more in the Executive’s annual Base Salary; (c) a reduction of ten percent (10%) or more
in the Executive’s annual target bonus opportunity (including the failure to pay any bonus earned for any year in which a
Change of Control of the Company occurs pursuant to the terms of any applicable plan or arrangement in effect prior to such Change
of Control); (d) the relocation of the Executive’s principal place of employment to a location more than thirty (30) miles
from the Executive’s principal place of employment, except for required travel on the Company’s business to an extent
substantially consistent with the Executive’s historical business travel obligations; (e) a material breach of this Agreement
by Company that, if not a monetary breach, is not cured within thirty (30) days’ written notice of such breach by Executive
to Company; or (f) failure by the Company to have in effect a directors’ and officers’ liability insurance policy covering
Executive in those capacities, as required pursuant to Section 13 hereof. The Executive’s continued employment shall
not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder.
The Executive shall not have the right to terminate his employment for Good Reason unless the Executive provides written notice
to the Company of the existence of grounds for termination for Good Reason, including a description of such grounds, within ninety
(90) days following the initial occurrence of the event constituting Good Reason and the Company shall have failed to remedy such
act or omission within thirty (30) days following its receipt of such notice. If the Executive does not provide such written notice
of grounds for termination for Good Reason within ninety (90) days after the initial occurrence of the event constituting Good
Reason, the Executive will be deemed to have waived the right to terminate for Good Reason with respect to such grounds.


 




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“Incentive Plan”
means the Company’s 2013 Long Term Incentive Plan, as amended from time to time.


 


“Initial Term” shall
have the meaning set forth in Section 3 hereof.


 


“Partnership” shall have
the meaning set forth in Section 17 hereof.


 


“Person”
shall mean a “person” as defined in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and
14(d) thereof, except that such term shall not include (a) the Company (or any Subsidiary thereof), (b) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company, (c) an underwriter temporarily holding securities pursuant to
an offering of such securities, or (d) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company.


“Renewal Term”
shall have the meaning set forth in Section 3 hereof.


 


“Restrictive
Covenant” shall have the meaning set forth in Section 10.1 hereof.


 


“Separation
Conditions” shall have the meaning set forth in Section 7.6 hereof.


 


“Severance
Delay Period” shall have the meaning set forth in Section 7.4 hereof.


 


“Stock”
shall have the meaning set forth in Section 17 hereof.


 


“Subsidiary”
means a corporation, partnership or other entity of which a majority of the voting interests of such corporation, partnership or
other entity are at the time owned directly or indirectly through one or more intermediaries or Subsidiaries, or both, by the Company.


 


“Term”
shall have the meaning set forth in Section 3 hereof.




“Third Party Information” shall have the meaning set forth in Section 10.2(c) hereof.


 


“Units” shall have the
meaning set forth in Section 17 hereof.


 




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“Works” shall have the
meaning set forth in Section 10.2(b) hereof.


 


2.            Employment.
The Company hereby agrees to employ the Executive and the Executive hereby accepts employment with the Company, upon the terms
and subject to the conditions set forth herein. The Executive shall serve as Chief Executive Officer and Chairman of the Company
and such other office or offices to which the Executive may be appointed or elected by the Board. Subject to the direction and
supervision of the Board, the Executive shall perform such duties as are customarily associated with the offices of Chief Executive
Officer and Chairman and such other offices to which the Executive may be appointed or elected by the Board and such additional
duties as the Board may determine. The Executive will report directly to the Board. During the Term (as defined below), the Executive
shall (i) devote substantially all of his business time and attention to the performance of the Executive’s duties hereunder
and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere
with the performance of such duties either directly or indirectly without the prior written consent of the Board; (ii) devote the
Executive’s best efforts, skill and energies to promote and advance the business and interests of the Company; and (iii)
fully perform the Executive’s obligations under this Agreement. The foregoing does not preclude the Executive from being
involved in civic or charitable endeavors or from serving on the board of directors of, and receiving director fees from, companies
that are not in competition with the Company, so long as such activities do not adversely affect the Executive’s performance
hereunder.


 


3.            Term.
Subject to the provisions of termination as hereinafter provided, the initial term of the Executive’s employment under this
Agreement shall begin on the date hereof and shall terminate on the third (3rd) anniversary of the date hereof (the
“Initial Term”). Unless the Company notifies the Executive that his employment under this Agreement will not
be extended or the Executive notifies the Company that he is not willing to extend his employment, the term of his employment under
this Agreement shall automatically be extended for additional one (1) year periods on the same terms and conditions as set forth
herein (individually and collectively, the “Renewal Term”). The Initial Term and the Renewal Term are sometimes
referred to collectively herein as the “Term.”


 


4.            Notice
of Non-Renewal. If the Company or the Executive elects not to extend the Term of this Agreement, the electing party shall do
so by notifying the other party in writing not less than sixty (60) days prior to the expiration of the Initial Term or the applicable
Renewal Term.


 


5.            Compensation.


 


5.1          Base Salary.
Until termination of the Executive’s employment with the Company pursuant to this Agreement, the Company shall pay the Executive
a base salary (the “Base Salary”) of Four Hundred Thousand and 00/100 Dollars ($400,000.00) per
annum, which shall be payable to the Executive in regular installments in accordance with the Company’s general payroll policies
and practices. The Executive’s compensation will be reviewed periodically by the Board, or a committee or subcommittee thereof
to which compensation matters have been delegated, and after taking into consideration both the performance of the Company and
the personal performance of the Executive, the Board, or any such committee or subcommittee, in its sole discretion, may increase
the Executive’s compensation to any amount it may deem appropriate.


 




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5.2          Bonus.
In the event either the Company or the Executive, or both, respectively achieve certain financial performance and personal performance
targets of the Company (as established by the Board, or a committee or subcommittee thereof to which compensation matters have
been delegated) pursuant to a cash compensation incentive plan or similar plan or arrangement established by the Company, the Company
may pay to the Executive an annual cash bonus during the Term of this Agreement (the “Bonus”). The Bonus, if
any, shall be paid to the Executive between January 1 and March 15 of the year following the year in which the services which gave
rise to the Bonus were performed. The Board (or applicable committee or subcommittee) may review and revise the terms of the cash
compensation incentive plan or similar plan referenced above at any time, after taking into consideration both the performance
of the Company and the personal performance of the Executive, among other factors, and may, in its sole discretion, amend the cash
compensation incentive or similar plan or arrangement in any manner it may deem appropriate; provided, however, that any
such amendment to the plan or arrangement shall not affect the Executive’s right to participate in such amended plan or plans.


 


5.3          Benefits.
The Executive shall be entitled to four (4) weeks of paid vacation annually. In addition, the Executive shall be entitled to participate
in all compensation or employee benefit plans or programs and receive all benefits and perquisites for which any salaried employees
are eligible under any existing or future plan or program established by the Company for salaried employees. The Executive will
participate to the extent permissible under the terms and provisions of such plans or programs in accordance with program provisions.
These may include group hospitalization, health, dental care, life or other insurance, tax qualified pension, savings, thrift and
profit sharing plans, termination pay programs, sick leave plans, travel or accident insurance, disability insurance, and equity-based
incentive plans. Nothing in this Agreement shall preclude the Company from amending or terminating any of the plans or programs
applicable to salaried or senior executives as long as such amendment or termination is applicable to all similarly situated salaried
employees or senior executives. Except as otherwise set forth herein, the Executive shall not be eligible to participate in any
other termination pay or severance program established by the Company.


 


5.4          Expenses
Incurred in Performance of Duties. The Company shall pay or promptly reimburse the Executive for all reasonable travel and
other business expenses incurred by the Executive in the performance of the Executive’s duties under this Agreement in accordance
with the Company’s policies in effect from time to time with respect to business expenses. Notwithstanding any other provision
of this Agreement, the Executive shall be reimbursed for all such expenses no later than the last day of the month succeeding the
month in which the Executive submits the required documentation for such expense reimbursement to the Company.


 


5.5          Withholdings.
All compensation payable hereunder shall be subject to withholding for federal income taxes, FICA and all other applicable federal,
state and local withholding requirements.


 


6.           Termination
of Agreement. This Agreement may be terminated by any of the following events:


 


6.1
         Mutual written agreement between the Executive and the Company at any time;


 


6.2
         The Executive’s death;


 




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		6.3	The Executive’s Disability which renders the Executive unable to perform the essential functions
of the Executive’s job even with reasonable accommodation;



 


		6.4	By the Company with or without Cause; and



 


		6.5	By the Executive with or without Good Reason.



 


		7.	Company’s Post-Termination Obligations.



 


7.1          Termination
by Mutual Written Agreement. If this Agreement terminates by mutual agreement between the Executive and the Company, then the
Company will pay the Executive (i) all accrued, but unpaid, wages based on the Executive’s then current Base Salary, through
the termination date; (ii) all earned and accrued but unpaid bonuses prorated to the date of termination; and (iii) all unreimbursed
business expenses with respect to which Executive is entitled to reimbursement as provided herein, provided that, to the extent
not previously submitted, a request for reimbursement of business expenses is submitted in accordance with the Company’s
policies within ten (10) business days of the Executive’s termination date. Payment of such amounts shall be made by the
Company within thirty (30) business days of the Executive’s termination date with respect to reimbursement requests submitted
prior to the termination date and within thirty (30) days after the date of submission, for those submitted after the termination
date, with the payment date determined by the Company in its sole discretion. Except as provided in Section 10.2(e) and
Section 11 hereof, the Company shall have no other obligations to the Executive under this Agreement; however, the Executive
shall continue to be bound by Section 10 and all other post-termination obligations to which the Executive is subject, including,
but not limited to, the obligations contained in this Agreement that survive the expiration or earlier termination of this Agreement,
as provided herein.


 


7.2          Termination
for Cause or Without Good Reason. If this Agreement is terminated by the Company for Cause or by the Executive without Good
Reason, then the Company will pay the Executive (i) all accrued, but unpaid, wages based on the Executive’s then current
Base Salary, through the termination date; (ii) all earned and accrued but unpaid bonuses prorated to the date of termination;
and (iii) all unreimbursed business expenses with respect to which Executive is entitled to reimbursement as provided herein, provided
that, to the extent not previously submitted, a request for reimbursement of business expenses is submitted in accordance with
the Company’s policies within ten (10) business days of the Executive’s termination date. Payment of such amounts shall
be made by the Company within thirty (30) business days of the Executive’s termination date with respect to reimbursement
requests submitted prior to the termination date and within thirty (30) days after the date of submission, for those submitted
after the termination date, with the payment date determined by the Company in its sole discretion. The Company shall have no other
obligations to the Executive under this Agreement; however, the Executive shall continue to be bound by Section 10 and all
other post-termination obligations to which the Executive is subject, including, but not limited to, the obligations contained
in this Agreement that survive the expiration or earlier termination of this Agreement, as provided herein.


 




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7.3          Termination
for Death or Disability. If this Agreement is terminated due to the Executive’s death or Disability, then the Company
will pay the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) (i) all accrued, but unpaid,
wages based on the Executive’s then current Base Salary, through the termination date; (ii) all earned and accrued but unpaid
bonuses prorated to the date of the Executive’s death or Disability; (iii) all unreimbursed business expenses with respect
to which Executive is entitled to reimbursement as provided herein, provided that, to the extent not previously submitted, a request
for reimbursement of business expenses is submitted in accordance with the Company’s policies by the Executive (or by the
Executive’s guardian, the Executive’s estate and/or beneficiaries, as the case may be) within sixty (60) business days
of the Executive’s termination date; and (iv) if the Executive is participating in the Company’s group medical, vision
and dental plan immediately prior to the date of termination, a lump sum payment equal to eighteen (18) times (or such lesser period
that the Executive and/or the Executive’s eligible dependents are entitled to under COBRA) the amount of monthly employer
contribution that the Company made to an issuer (or as otherwise determined on an actuarial basis based upon the applicable monthly
premium for continuation coverage under COBRA) to provide medical, vision and dental insurance to the Executive and his dependents
in the month immediately preceding the date of termination; provided, however, that the Executive or the Executive’s eligible
dependents shall be solely responsible for any non-monetary requirements which must be satisfied or actions that must be taken
in order to obtain such COBRA continuation coverage. Payment of the amounts listed in this Section 7.3 shall be made by
the Company to the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) within sixty (60) days
of the Executive’s termination date, with the payment date determined by the Company in its sole discretion. Additionally,
notwithstanding anything to the contrary in the Incentive Plan or any award agreement, upon the expiration of the Term as a result
of Executive’s Death or Disability, all of Executive’s outstanding unvested equity-based awards (including, but not
limited to, restricted stock and restricted stock units granted pursuant to the Incentive Plan), shall vest and become immediately
exercisable and unrestricted, without any action by the Board or any committee thereof. For the avoidance of doubt, settlement
of any restricted stock units, the vesting of which is accelerated pursuant to this Section 7.3, shall occur upon vesting
pursuant to this Section 7.3 subject to any previous legally binding deferral election or contrary payment date provided
for in the applicable award agreement regarding such units. Except as provided in Section 10.2(e) and Section 11,
the Company shall have no other obligations to the Executive under this Agreement; however, the Executive shall continue to be
bound by Section 10 and all other post-termination obligations to which the Executive is subject, including, but not limited
to, the obligations contained in this Agreement that survive the expiration or earlier termination of this Agreement, as provided
herein.


 


7.4          Termination
without Cause or for Good Reason. If this Agreement is terminated by the Company without Cause or by the Executive for Good
Reason, then the Company will pay the Executive (i) all accrued, but unpaid, wages through the termination date, based on the Executive’s
then current Base Salary; (ii) all accrued, but unpaid, vacation through the termination date, based on the Executive’s then
current Base Salary; (iii) all unreimbursed business expenses with respect to which Executive is entitled to reimbursement as provided
herein, provided that, to the extent not previously submitted, a request for reimbursement of business expenses is submitted in
accordance with the Company’s policies within ten (10) business days of the Executive’s termination date; (iv) all
earned and accrued but unpaid bonuses; and (v) if the Executive is participating in the Company’s group medical, vision and
dental plan immediately prior to the date of termination, a lump sum payment equal to eighteen (18) times (or such lesser period
that the Executive and/or the Executive’s eligible dependents are entitled to under COBRA) the amount of monthly employer
contribution that the Company made to an issuer (or as otherwise determined on an actuarial basis based upon the applicable monthly
premium for continuation coverage under COBRA) to provide medical, vision and dental insurance to the Executive and his dependents
in the month immediately preceding the date of termination; provided, however, that the Executive or the Executive’s eligible
dependents shall be solely responsible for any non-monetary requirements which must be satisfied or actions that must be taken
in order to obtain such COBRA continuation coverage. Payment of the amounts listed in this Section 7.4 shall be made by
the Company within thirty (30) days of the Executive’s termination date, with the payment date determined by the Company
in its sole discretion. In addition, the Company will pay the Executive a separation payment equal to three times (3x) the sum
of (A) the Executive’s then current Base Salary, and (B) the Executive’s average Bonus for the two (2) annual Bonus
periods completed prior to termination. In the event this Agreement is terminated by the Company without Cause or by Executive
for Good Reason before Executive completes two (2) annual Bonus periods, then part (B) will be three times (3x) Executive’s
Bonus for the most recently completed Bonus Period, or, if Employee has not been employed for a complete annual Bonus period, then
such amount shall be annualized and the Bonus will be three times (3x) the annualized amount. Payment of the separation payment
shall begin on the first regular payroll payment date occurring after the thirtieth (30th) day following the Executive’s
termination date (the “Severance Delay Period”) and will be paid over a period of thirty-six (36) months from
such date in accordance with the Company’s regular payroll practices. Additionally, notwithstanding anything to the contrary
in the Incentive Plan or any award agreement, upon the expiration of the Term as a result of the Company’s termination of
Executive without Cause or Executive’s termination for Good Reason, all of Executive’s outstanding unvested equity-based
awards (including, but not limited to, restricted stock and restricted stock units granted pursuant to the Incentive Plan), shall
vest and become immediately exercisable and unrestricted, without any action by the Board or any committee thereof. For the avoidance
of doubt, settlement of any restricted stock units, the vesting of which is accelerated pursuant to this Section 7.4, shall
occur upon vesting pursuant to this Section 7.4, subject to any previous legally binding deferral election or contrary payment
date provided for in the applicable award agreement regarding such units. Except as set forth in this Section 7.4, Section
10.2(e) and Section 11, the Company shall have no other obligations to the Executive under this Agreement; however,
the Executive shall continue to be bound by Section 10 and all other post-termination obligations to which the Executive
is subject, including, but not limited to, the obligations contained in this Agreement that survive the expiration or earlier termination
of this Agreement, as provided herein.


 




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7.5          Termination
upon Non-Renewal by the Company. In the event that the Company elects not to extend the Term of this Agreement pursuant to
Section 4 hereof, then the Company will pay the Executive (i) all accrued, but unpaid, wages through the expiration of the
Term, based on the Executive’s then current Base Salary; (ii) all accrued, but unpaid, vacation through the expiration of
the Term, based on the Executive’s then current Base Salary; (iii) all unreimbursed business expenses with respect to which
Executive is entitled to reimbursement as provided herein, provided that, to the extent not previously submitted, a request for
reimbursement of business expenses is submitted in accordance with the Company’s policies within ten (10) business days of
the expiration of the Term; (iv) all earned and accrued but unpaid bonuses; and (v) if the Executive is participating in the Company’s
group medical, vision and dental plan immediately prior to the date of termination, a lump sum payment equal to eighteen (18) times
(or such lesser period that the Executive and/or the Executive’s eligible dependents are entitled to under COBRA) the amount
of monthly employer contribution that the Company made to an issuer (or as otherwise determined on an actuarial basis based upon
the applicable monthly premium for continuation coverage under COBRA) to provide medical, vision and dental insurance to the Executive
and his dependents in the month immediately preceding the date of termination; provided, however, that the Executive or the Executive’s
eligible dependents shall be solely responsible for any non-monetary requirements which must be satisfied or actions that must
be taken in order to obtain such COBRA continuation coverage. Payment of the amounts listed in this Section 7.5 shall be
made by the Company within thirty (30) days of the expiration of the Term, with the payment date determined by the Company in its
sole discretion. In addition, the Company will pay the Executive a separation payment equal to one times (1x) the sum of the Executive’s
(A) then current Base Salary, and (B) average Bonus for the two (2) annual Bonus periods completed prior to the expiration of the
Term; provided, however, that the amount payable at that time will be the amount of the separation payment as so determined, reduced
dollar-for-dollar by all salary and Bonus payments made to the Executive for services as an employee of the Company after the non-renewal
of the Agreement. Payment of the separation payment shall begin on the first regular payroll payment date occurring after the thirtieth
(30th) day following the expiration of the Term and will be paid over a period of twelve (12) months from such date
in accordance with the Company’s regular payroll practices. Additionally, notwithstanding anything to the contrary in the
Incentive Plan or any award agreement, upon the expiration of the Term as a result of the Company’s non-renewal of the Agreement
pursuant to Section 4 hereof, all of Executive’s outstanding unvested equity-based awards (including, but not limited
to, restricted stock and restricted stock units) granted pursuant to the Incentive Plan, shall vest and become immediately exercisable
and unrestricted, without any action by the Board or any committee thereof. For
the avoidance of doubt, settlement of any restricted stock units, the vesting of which is accelerated pursuant to this Section
7.5, shall occur upon vesting pursuant to this Section 7.5, subject to any previous legally binding deferral
election or contrary payment date provided for in the applicable award agreement regarding such units. Except as set forth in this
Section 7.5, Section 10.2(e), and Section 11, the Company shall have no other obligations to the Executive
under this Agreement; however, the Executive shall continue to be bound by Section 10 and all other post-termination obligations
to which the Executive is subject, including, but not limited to, the obligations contained in this Agreement that survive the
expiration or earlier termination of this Agreement, as provided herein.


 


7.6          Separation
Conditions. The Company’s obligation to provide the separation payments set forth in Section 7.4 and 7.5
above shall be conditioned upon the following (the “Separation Conditions”):


 


(i)          the Executive’s
execution (and the expiration of any applicable revocation period without revocation by the Executive) of a separation agreement
substantially similar to the form attached hereto as Exhibit A prepared by the Company, which form will include a limited
release from liability so that the Executive will release the Company from any and all liability and claims arising under this
Agreement or arising out of the Executive’s employment by the Company prior to the expiration of the Severance Delay Period
following the expiration of the Term, it being acknowledged by the Company that such release shall not release the Company from
any obligations arising under this Agreement to be performed by the Company on or after the Severance Delay Period; provided, however,
that the Executive shall not be required to release any claim the Executive may have against the Company in his capacity as a stockholder
of the Company or claims for indemnification pursuant to any indemnification agreement between the Executive and the Company or
otherwise existing pursuant to the Company’s organizational documents or applicable state law; and


 


(ii)          the Executive’s
material compliance with the restrictive covenants (as set forth in Section 10) and all post-termination obligations, including,
but not limited to, the obligations contained in this Agreement.


 




    	9



    	 



    

 


7.7          If the Executive
does not timely execute (or revokes) an effective separation agreement prior to the expiration of the Severance Delay Period or
the sixty (60) days following the expiration of the Term, as set forth in Section 7.4 or 7.5 above, as applicable,
the Company will not provide any payments or benefits to the Executive under Section 7.4 or 7.5, as applicable, and
such benefits will be forfeited by the Executive. The Company’s obligation to make the separation payments set forth in Section
7.4 or 7.5, as applicable, shall terminate immediately upon any material breach by the Executive of any post-termination
or post-expiration obligations to which the Executive is subject, which breach, if curable, is not cured within ten (10) days of
the Executive being notified of such breach.


 


7.8          Notwithstanding
anything to the contrary set forth herein, the Company’s obligations to make any payments to the Executive under this Section
7 will not terminate in the event that the Executive gains other employment upon the termination or non-renewal of this Agreement
as long as the Executive has satisfied the conditions set forth in Section 7.6, if applicable, and the Executive is not
in breach of the provisions set forth in Section 10 hereof.


 


		8.	Change of Control.



 


8.1          Notwithstanding
anything to the contrary in the Incentive Plan or any award agreement, upon a Change of Control, all of Executive’s outstanding
unvested equity-based awards (including, but not limited to, restricted stock and restricted stock units) granted pursuant to the
Incentive Plan, shall vest and become immediately exercisable and unrestricted, without any action by the Board or any committee
thereof. For the avoidance of doubt, settlement of any restricted stock
units, the vesting of which is accelerated pursuant to this Section 8.1, shall occur upon vesting pursuant to this Section
8.1, subject to any previous legally binding deferral election or contrary payment date provided for in the applicable
award agreement regarding such units.


 


8.2          Notwithstanding
the provisions of Section 7, if, within one (1) year following a Change of Control, the Company terminates Executive’s
employment without Cause pursuant to Section 6.4, or Executive resigns for Good Reason, then the Company will pay Executive
the following amounts:


 


(i)           all
accrued, but unpaid, wages through the termination date, based on Executive’s then current Base Salary;


 


(ii)           all
accrued but unused and unpaid vacation;


 


(iii)          a
separation payment equal to three times (3x) the sum of (A) Executive’s then current Base Salary, and (B) Executive’s
average Bonus for the two (2) year period prior to the Change of Control (determined as provided in Section 7.4 if the termination
of employment occurs prior to completion of two annual Bonus periods), which separation payment shall be paid in a lump sum;


 


(iv)          a payment for all earned
and accrued but unpaid bonuses;


 




    	10



    	 



    

 


(v)          a payment
for all unreimbursed business expenses with respect to which Executive is entitled to reimbursement as provided herein, provided
that, to the extent not previously submitted, a request for reimbursement of business expenses is submitted in accordance with
the Company’s policies and submitted within ten (10) business days of Executive’s termination date; and


 


(vi)          a payment
in the amount specified in Section 7.4(v).


 


8.3          The payments
and benefits set forth in this Section 8 shall be provided to Executive in lieu of any benefits to which Executive may be
entitled to receive under Section 7.4 above and shall be paid or begin on the first regular payroll payment date occurring
after the Severance Delay Period, provided, however, that Executive’s right to receive the separation payments and benefits
set forth in this Section 8 shall be subject to the Separation Conditions set forth in Sections 7.6 and 7.7
above. Except as provided in Section 10.2(e) and Section 11 hereof, the separation payments and benefits set forth
in this Section 8 shall constitute full satisfaction of the Company’s obligations under this Agreement, any Company
policy or otherwise. Furthermore, the Company’s obligations to make any payments to the Executive under this Section 8
will not terminate in the event that the Executive gains other employment upon such termination without Cause or resignation for
Good Reason as long as the Executive has satisfied the conditions set forth in Section 7.6 and the Executive is not in breach
of the provisions set forth in Section 10 hereof.


 


		9.	Compliance with Code Section 409A and Other Applicable Provisions of the Code.



 


9.1           It is intended
that (i) each payment or installment of payments provided under this Agreement is a separate “payment” for purposes
of Code Section 409A, and (ii) that the payments satisfy, to the greatest extent possible, the exemptions from the application
of Code Section 409A, including those provided under Treasury Regulations 1.409A-1(b)(4) (regarding short-term deferrals), 1.409A-1(b)(9)(iii)
(regarding the two-times, two (2) year exception) and 1.409A-1(b)(9)(v) (regarding reimbursements and other separation pay). Notwithstanding
anything to the contrary herein, if the Company determines in accordance with its “specified employee” procedures (i)
that on the date of the Executive’s “separation from service” (as such term is defined under Treasury Regulation
1.409A-1(h)) or at such other time that the Company determines to be relevant, the Executive is a “specified employee”
(as such term is defined under Treasury Regulation 1.409A-1(i)(1)) of the Company, and (ii) that any payments to be provided to
the Executive pursuant to this Agreement are or may become subject to the additional tax under Code Section 409A(a)(1)(B) or any
other taxes or penalties imposed under Code Section 409A if provided at the time otherwise required under this Agreement, then
such payments shall be delayed until the date that is six (6) months after the date of the Executive’s “separation
from service” (as such term is defined under Treasury Regulation 1.409A-1(h)) or, if sooner, the date of the Executive’s
death. Any payments delayed pursuant to this Section 9 shall be made in a lump sum on the first day of the seventh month
following the Executive’s “separation from service” (as such term is defined under Treasury Regulation 1.409A-1(h))
or, if sooner, the date of the Executive’s death. It is intended that Agreement shall comply with the provisions of Code
Section 409A and the Treasury Regulations relating thereto so as not to subject the Executive to the payment of additional taxes
and interest under Code Section 409A. In furtherance of this intent, this Agreement shall be interpreted, operated, and administered
in a manner consistent with these intentions.


 




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9.2          In addition,
to the extent that any reimbursement, fringe benefit or other, similar plan or arrangement in which the Executive participates
during the term of the Executive’s employment under this Agreement or thereafter provides for a “deferral of compensation”
within the meaning of Code Section 409A, such reimbursements or payments shall be made in accordance with Treasury Regulation 1.409A-3(i)(1)(iv),
including: the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect
the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits
may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods
provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement
must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and
(iii) the right to any reimbursement or in-kind benefit is not subject to liquidation or exchange for another benefit.


 


9.3          Notwithstanding
anything herein to the contrary, a termination of the Executive’s employment shall not be deemed to have occurred for purposes
of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment
unless such termination is also a “separation from service” within the meaning of Code Section 409A (and Treasury Regulation
1.409A-1(h)) (which, by definition, includes a separation from any other entity that would be deemed a single employer together
with the Company for this purpose under Code Section 409A (and Treasury Regulation 1.409A-1(h)), and for purposes of any such provision
of this Agreement, references to a “termination,” “termination of employment,” “termination date,”
or similar terms shall mean “separation from service.”


 


9.4          For the avoidance
of doubt, the Company shall pay any amounts that are due under this Agreement following the Executive’s termination of employment,
death, Disability or other event within the periods of time that are specified in this Agreement in accordance with the Company’s
general payroll policies and procedures.


 


9.5          By accepting
this Agreement, the Executive hereby agrees and acknowledges that the Company does not make any representations with respect to
the application of Code Section 409A to any tax, economic or legal consequences of any payments payable to the Executive hereunder.
Further, by the acceptance of this Agreement, the Executive acknowledges that (i) the Executive has obtained independent tax advice
regarding the application of Code Section 409A to the payments due to the Executive hereunder, (ii) the Executive retains full
responsibility for the potential application of Code Section 409A to the tax and legal consequences of payments payable to the
Executive hereunder and (iii) the Company shall not indemnify or otherwise compensate the Executive for any violation of Code Section
409A that my occur in connection with this Agreement. The parties agree to cooperate in good faith to amend such documents and
to take such actions as may be necessary or appropriate to comply with Code Section 409A.


 


9.6          Notwithstanding
any other provision to the contrary, in no event shall any payment under this Agreement that constitutes “deferred compensation”
for purposes of Code Section 409A and the Treasury Regulations promulgated thereunder be subject to offset by any other amount
unless otherwise permitted by Code Section 409A.


 


		10.	Non-Competition, Non-Solicitation, Confidentiality and Non-Disclosure.



 




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10.1          Non-Competition
and Non-Solicitation. The Executive hereby covenants and agrees that during the Executive’s employment and for a period
of one (1) year following the termination of the Executive’s employment by either the Company or the Executive for
any reason, the Executive shall not (i) perform services which are substantially similar and/or equivalent to the services being
performed by the Executive during his employment with the Company, individually or on behalf of any person, firm, partnership,
association, business organization, corporation or entity (each, a “Competing Entity”) that owns, operates,
acquires or develops multi-family residential properties within one or more states where the Company’s properties, at the
time of the Executive’s termination, are located and which Competing Entity has total assets in excess of $200,000,000 as
of the most recently completed quarter prior to the Executive's termination, which value shall be calculated in accordance with
generally accepted accounting principles; (ii) directly or indirectly solicit any customer or client of the Company (other than
on behalf of the Company) with respect to the business described in subsection (i) hereof; or (iii) directly or indirectly induce
or encourage any employee of the Company or affiliated entities to leave the employ of the Company or affiliated entities. The
foregoing covenants and agreements of the Executive are referred to herein as the “Restrictive Covenant.” The
Executive acknowledges that he has carefully read and considered the provisions of the Restrictive Covenant and, having done so,
agrees that the restrictions set forth in this Section 10.1, including without limitation the time period of restriction
set forth above, are fair and reasonable and are reasonably required for the protection of the legitimate business and economic
interests of the Company. The Executive further acknowledges that the Company would not have entered into this Agreement absent
the Executive’s agreement to the foregoing.


 


In the event that,
notwithstanding the foregoing, any of the provisions of this Section 10.1 or any parts hereof shall be held to be invalid
or unenforceable, the remaining provisions or parts hereof shall nevertheless continue to be valid and enforceable as though the
invalid or unenforceable portions or parts had not been included herein. In the event that any provision of this Section 10.1
relating to the time period, the area of restriction, the scope of activity and/or related aspects shall be declared by a court
of competent jurisdiction to exceed the maximum restrictiveness such court deems reasonable and enforceable, such provision(s)
shall be reformed by such court by limit or reducing it to the minimum extent necessary so as to remain enforceable to the fullest
extent deemed reasonable by such court.


 


Moreover, the Executive’s obligations
under this Section 10.1 shall terminate and be of no further force and effect if the Company shall fail to make the payments
to the Executive required by Section 7 and/or Section 8 of this Agreement after failing to cure such non-payment
within thirty (30) days after receiving written notice from the Executive of such non-payment.


 


10.2        Confidential
Information.


 


(a)          Obligation
to Maintain Confidentiality. The Executive acknowledges that the continued success of the Company depends upon the use and
protection of a large body of confidential and proprietary information, including confidential and proprietary information now
existing or to be developed in the future. “Confidential Information” will be defined as all information of
any sort (whether merely remembered or embodied in a tangible or intangible form) that is (i) related to the Company’s prior,
current or potential business and (ii) not generally or publicly known. Therefore, the Executive agrees not to disclose or use
for the Executive’s own account any of such Confidential Information, except as reasonably necessary for the performance
of the Executive’s duties as an employee or director of the Company, without prior written consent of the Board, unless and
to the extent that any Confidential Information (i) becomes generally known to and available for use by the public other than as
a result of the Executive’s improper acts or omissions to act or (ii) is required to be disclosed pursuant to any applicable
law, regulatory action or court order; provided, however, that the Executive must give the Company prompt written notice of any
such legal requirement, disclose no more information than is so required, and cooperate fully with all efforts by the Company (at
the Company’s sole expense) to obtain a protective order or similar confidentiality treatment for such information. Upon
the termination of the Executive’s employment with the Company, the Executive agrees to deliver to the Company, upon request,
all memoranda, notes, plans, records, reports and other documents (including copies thereof and electronic media) relating to the
business of the Company (including, without limitation, all Confidential Information) that the Executive may then possess or have
under the Executive’s control, other than such documents as are generally or publicly known (provided, that such documents
are not known as a result of the Executive’s breach or actions in violation of this Agreement); and at any time thereafter,
if any such materials are brought to the Executive’s attention or the Executive discovers them in the Executive’s possession,
the Executive shall deliver such materials to the Company immediately upon such notice or discovery. The provisions of this Section
10.2(a) shall specifically survive the expiration or earlier termination of this Agreement and the termination of the Executive’s
employment with the Company.


 




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(b)          Ownership of
Intellectual Property. If the Executive creates, invents, designs, develops, contributes to or improves any works of authorship,
inventions, materials, documents or other work product or other intellectual property, either alone or in conjunction with third
parties, at any time during the time that the Executive is employed by the Company (“Works”), to the extent
that such Works were created, invented, designed, developed, contributed to, or improved with the use of any Company resources
and/or within the scope of such employment (collectively, the “Company Works”), the Executive shall promptly
and fully disclose such Company Works to the Company. Any copyrightable work falling within the definition of Company Works shall
be deemed a “work made for hire” as such term is defined in 17 U.S.C. § 101. The Executive hereby (i) irrevocably
assigns, transfers and conveys, to the extent permitted by applicable law, all right, title and interest in and to the Company
Works on a worldwide basis (including, without limitation, rights under patent, copyright, trademark, trade secret, unfair competition
and related laws) to the Company or such other entity as the Company shall designate, to the extent ownership of any such rights
does not automatically vest in the Company under applicable law, and (ii) waives any moral rights therein to the fullest extent
permitted under applicable law. The Executive agrees not to use any Company Works for the Executive’s personal benefit, the
benefit of a competitor, or for the benefit of any person or entity other than the Company. The Executive agrees to execute any
further documents and take any further reasonable actions requested by the Company to assist it in validating, effectuating, maintaining,
protecting, enforcing, perfecting, recording, patenting or registering any of its rights hereunder, all at the Company’s
sole expense.


 


(c)          Third Party
Information. The Executive understands that the Company will receive from third parties confidential or proprietary information
(“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of
such information and to use it only for certain limited purposes. During the time that the Executive is employed by the Company
or serves on the Company’s Board and at all times thereafter, the Executive will hold information which the Executive knows,
or reasonably should know, to be Third Party Information in the strictest confidence and will not disclose to anyone (other than
personnel of the Company who need to know such information in connection with their work for the Company) or use, except in connection
with the Executive’s work for the Company, Third Party Information unless expressly authorized in writing by the Board or
the information (i) becomes generally known to and available for use by the public other than as a result of the Executive’s
improper acts or omissions or (ii) is required to be disclosed pursuant to any applicable law, regulatory action or court order.


 




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(d)          Use of Information
of Prior Employers. During the Term, the Executive shall not use or disclose any Confidential Information including trade secrets,
if any, of any former employers or any other person to whom the Executive has an obligation of confidentiality, and shall not bring
onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person
to whom the Executive has an obligation of confidentiality unless consented to in writing by the former employer or person. The
Executive shall use in the performance of the Executive’s duties only information that is (i) generally known and used by
persons with training and experience comparable to the Executive’s and that is (x) common knowledge in the industry or (y)
is otherwise legally in the public domain, (ii) otherwise provided or developed by the Company or (iii) in the case of materials,
property or information belonging to any former employer or other person to whom the Executive has an obligation of confidentiality,
approved for such use in writing by such former employer or person.


 


(e)          Disparaging
Statements. During the time that the Executive is employed by the Company or serves on the Company’s Board and at all
times thereafter, the Executive shall not disparage the Company or any of its officers, directors, employees, agents or representatives,
or any of such entities’ products or services; provided, that the foregoing shall not prohibit the Executive from making
any general competitive statements or communications about the Company or their businesses in the ordinary course of competition.
During the time that the Executive is employed by the Company or serves on the Company’s Board and at all times thereafter,
the Company agrees that (i) it shall not issue any public statements disparaging the Executive and (ii) it shall take reasonable
steps to ensure that the senior executive officers of the Company shall not disparage the Executive. Notwithstanding the foregoing,
nothing in this Section 10.2(e) shall prevent the Executive or the Company from enforcing any rights under this Agreement
or any other agreement to which the Executive and the Company are party, or otherwise limit such enforcement.


 


10.3          Enforcement.
The parties hereto agree that money damages would not be an adequate remedy for any breach of Section 10.1 or 10.2
by the Executive or any breach of Section 10.2(e) by the Company, and any breach of the terms of Section 10.1 or
10.2 by the Executive or Section 10.2(e) by the Company would result in irreparable injury and damage to the other
party for which such party would have no adequate remedy at law. Therefore, in the event of a breach or threatened breach of Section
10.1 or 10.2 by the Executive or of Section 10.2(e) by the Company, the Company or its successors or assigns
or the Executive, as applicable, in addition to other rights and remedies existing in their or the Executive’s favor, shall
be entitled to specific performance and/or immediate injunctive or other equitable relief from a court of competent jurisdiction
in order to enforce, or prevent any violations of, the provisions of Section 10.1 or 10.2 (in the case of a breach
by the Executive) or Section 10.2(e) (in the case of a breach by the Company), without having to prove damages, and to the
payment by the breaching party of all of the other party’s costs and expenses, including reasonable attorneys’ fees
and costs, in addition to any other remedies to which the other party may be entitled at law or in equity. The terms of this Section
shall not prevent either party from pursuing any other available remedies for any breach or threatened breach hereof, including
but not limited to the recovery of damages from the other party. 


 




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11.          Indemnification.
The Company shall indemnify and hold the Executive harmless to the fullest extent that would be permitted by law (including a payment
of expenses in advance of final disposition of a proceeding) as in effect at the time of the subject act or omission, or by the
charter of the Company as in effect at such time, or by the terms of any indemnification agreement between the Company and the
Executive, whichever affords greatest protection to the Executive, and the Executive shall be entitled to the protection of any
insurance policies the Company may elect to maintain generally for the benefit of its officers or, during the Executive’s
service in such capacity, directors (and to the extent the Company maintains such an insurance policy or policies, in accordance
with its or their terms to the maximum extent of the coverage available for any company officer or director), against all costs,
charges and expenses whatsoever incurred or sustained by the Executive (including but not limited to any judgment entered by a
court of law) at the time such costs, charges and expenses are incurred or sustained, in connection with any action, suit or proceeding,
or threatened action, suit or proceeding, against the Executive, to which the Executive may be made a party by reason of his being
or having been an officer or employee of the Company, or serving as an officer or employee of an Affiliate of the Company, at the
request of the Company, other than any action, suit or proceeding brought against the Executive by or on account of his breach
of the provisions of any employment agreement with a third party that has not been disclosed by the Executive to the Company. The
provisions of this Section 11 shall specifically survive the expiration or earlier termination of this Agreement.


 


12.          Clawback.
Notwithstanding anything contained herein to the contrary, any amounts paid or payable to the Executive pursuant to this Agreement
or otherwise by the Company, including, but not limited to, any equity compensation granted to the Executive, may be subject to
forfeiture or repayment to the Company in accordance with Code Section 409A and pursuant to any clawback policy as adopted by the
Board from time to time, and the Executive hereby agrees to be bound by any such policy.


 


13.          Directors’
and Officers’ Insurance. The Company agrees, during the Term, to use good faith efforts to obtain and maintain a directors’
and officers’ liability insurance policy with coverage reasonably recommended by an independent liability insurance consultant.


 


14.          Notices.
Any notice required or desired to be given under this Agreement shall be in writing and shall be delivered personally or mailed
by registered mail, return receipt requested, or delivered by overnight courier service and shall be deemed to have been given
on the date of its delivery, if delivered, and on the third (3rd) full business day following the date of the mailing, if mailed,
to each of the parties thereto at the following respective addresses or such other address as may be specified in any notice delivered
or mailed as above provided:


 





	 	(i)	If to the Executive, to:
	 	 	 
	 	 	Michael Baumann
	 	 	19950 West Country Club Drive, Suite 800
	 	 	Aventura, Florida 33180
	 	 	 
	 	(ii)	If to the Company, to:
	 	 	 
	 	 	Trade Street Residential, Inc.
	 	 	19950 West Country Club Drive, Suite 800
	 	 	Aventura, Florida 33180
	 	 	Attention: General Counsel










 




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15.          Waiver
of Breach. The waiver by either party of any provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach by the other party. No waiver of any provision of this Agreement shall be implied from any course of dealing
between the parties hereto or from any failure by either party hereto to assert any rights hereunder on any occasion or series
of occasions.


 


16.          Assignment.
The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors
and permitted assigns of the Company. The Company may not assign this Agreement without consent of the Executive, except in connection
with a Change of Control. The Executive acknowledges that the services to be rendered by him are unique and personal, and the Executive
may not assign any of his rights or delegate any of his duties or obligations under this Agreement.


 


17.          Acknowledgement
as to Ownership of Equity Interests by Executive. Notwithstanding anything to the contrary set forth in this Agreement, the
Company acknowledges that Executive owns operating partnership units (“Units”) in the Company’s affiliated
operating partnership (the “Partnership”) and may, by conversion of such Units or otherwise, acquire capital
stock of the Company (“Stock”), and nothing herein is intended to in any way modify or impair any rights Executive
may have under the terms of the limited partnership agreement governing the Partnership or under applicable law with respect to
such Units or Stock.


 


18.          Entire
Agreement; Amendment. This Agreement contains the entire agreement of the parties relating to the subject matter herein and
supersedes in full and in all respects any prior oral or written agreement, arrangement or understanding between the parties with
respect to Executive’s employment with the Company. This Agreement may not be amended or changed orally but only by an agreement
in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought.


 


19.          Controlling
Law. All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by, and construed in accordance with, the laws of the State of Florida, without giving effect to any choice of law
or conflict of law rules or provisions (whether of the State of Florida or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Florida.


 


20.          Jurisdiction
and Venue. This Agreement will be deemed performable by all parties in, and venue will exclusively be in the state or federal
courts located in the State of Florida. The Executive and the Company hereby consent to the personal jurisdiction of these courts
and waive any objections that such venue is objectionable or improper.


 


21.          Waiver
of Jury Trial. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER
HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR
PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY. The losing party in any lawsuit
or proceeding relating to or arising in any way from this Agreement or the matters contemplated hereby shall pay the reasonable
attorneys’ fees and costs of the prevailing party in such lawsuit or proceeding.


 




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22.          Severability.
If any provision of this Agreement or the application of any such provision to any party or circumstances will be determined by
any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement or the application
of such provision to such person or circumstances other than those to which it is so determined to be invalid and unenforceable,
will not be affected thereby, and each provision hereof will be validated and will be enforced to the fullest extent permitted
by law.


 


23.          Headings.
The sections, subjects and headings in this Agreement are inserted for convenience only and shall not affect in any way the meaning
or interpretation of this Agreement.


 


[Signature Page to Follow]


 




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[Signature Page to Employment
Agreement]


 


IN WITNESS WHEREOF, the
parties have hereto executed this Agreement as of the day and year first written above.


 


	 	EXECUTIVE:
	 	 
	 	/s/ Michael Baumann
	 	Michael Baumann
	 	 
	 	COMPANY:
	 	 
	 	Trade Street Residential Inc.
	 	 
	 	By:	/s/ David Levin
	 	Name:	David Levin
	 	Title:	President


 




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EXHIBIT A


 


FORM OF SEPARATION AGREEMENT AND RELEASE


 


This Separation Agreement
and Release (“Agreement”) is made and entered into by and between [___________] (“Employee”)
and Trade Street Residential, Inc., including its affiliates, parent corporations, subsidiaries, officers, directors,
shareholders, employees, managers, members, partners, consultants, attorneys, and agents (“Company”).
For purposes hereof, Employee and Company shall be collectively referred to herein as the "Parties," and
individually, as a "Party."


 


WHEREAS, Company has
employed Employee as its [POSITION] in accordance with that certain Employment Agreement dated [______], by and between the Company
and the Employee (“Employment Agreement”); and


 


WHEREAS, the term of
Employee's employment under the Employment Agreement has been terminated in accordance with the Employment Agreement, and in return
for the consideration to be provided by Company to Employee in accordance with and subject to the terms and conditions set forth
in the Employment Agreement, Employee has agreed to provide the release set forth herein to the Company.


 


NOW, THEREFORE, in
consideration of the mutual covenants set forth herein, and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, Employee and Company, hereby intending to be legally bound, agree as follows:


 


1.          Recitals.
The recitals set forth above are true and correct and are incorporated herein by reference.


 


2.          Separation
Date. Employee’s separation from Company shall be effective at the close of business on [_________, 20__] (the “Separation
Date”). Employee warrants and represents that he has returned, or will promptly hereafter return, to Company all
property of Company in his possession, custody, or control, including, but not limited to, files (paper and electronic) and other
documents, client records, working papers, reports, computers and other hardware or software, access cards, office keys, and all
other Company property of any nature.


 




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3.        Release.


 


(a)           In consideration
of the compensation and other benefits to be provided by the Company to Employee after the Separation Date in accordance with the
terms set forth in the Employment Agreement, Employee, for himself and his heirs, executors, administrators, personal representatives
and assigns, hereby irrevocably and unconditionally forever releases and discharges Company, its past and present shareholders,
officers, directors, partners, managers, members, consultants, agents, employees, subsidiaries, parent corporations, affiliated
or related entities and its or their past and present shareholders, officers, directors, agents, employees and all of the successors,
assigns, and legal representatives of the foregoing (collectively, “Releasees”) of and from, any matter
or thing occurring in whole or in part through the date hereof, any and all rights, claims, grievances, arbitrations or causes
of action which Employee has asserted, could assert or which could be asserted on his behalf (1) arising from Executive’s
relationship to, employment with or service as an employee, officer, director, or manager of the Company or its subsidiaries and
affiliates prior to the date of execution and delivery of this Agreement, including his separation from such employment; provided,
however, that the Executive does not release any claim that the Executive may have against the Company in his capacity as a stockholder
of the Company or claims for indemnification pursuant to any indemnification agreement between the Executive and the Company or
otherwise existing pursuant to the Company’s organizational documents or applicable state law or (2) arising under the Age
Discrimination in Employment Act of 1967, as amended (the “ADEA”), the Family and Medical Leave Act of
1993, the Employee Retirement Income Security Act of 1974, Title VII of the Civil Rights Act of 1964, the Rehabilitation Act of
1973, the Equal Pay Act, the Lilly Ledbetter Fair Pay Act of 2009, the Civil Rights Act of 1866, the Civil Rights Act of 1991,
the Americans with Disabilities Act of 1990, the ADA Amendments Act of 2008, the Genetic Information Nondiscrimination Act, the
Florida Human Rights Act of 1977, the Florida Civil Rights Act of 1992, Section 760.50 of the Florida Statutes, the Miami-Dade
County Code, and the wage and discrimination laws of the United States or any State of the United States or any other country and
their subdivisions, including any state or local law, ordinance, regulation or rule, all of the foregoing as heretofore or hereafter
amended, or any court decree, heretofore or hereafter promulgated. To the extent permitted by law, Employee also waives any and
all rights under the laws of any jurisdiction in the United States that would limit the foregoing release and waiver of which he
had knowledge as of the date hereof. Employee recognizes that, among other things, he is releasing Company of and from any and
all claims he might have against it for retaliation of any kind, pain and suffering, emotional distress, and for discrimination
based on age, gender, national origin, race, religion, disability, sexual orientation, or veteran status. Notwithstanding any other
provision of this Agreement to the contrary, this Agreement does not encompass, and Employee does not release, waive or discharge,
the obligations of the Company (a) to make the payments and provide the awards and benefits required by the Employment Agreement,
including without limitation, any equity based awards (including restricted stock and restricted stock units) or (b) under any
indemnification or similar agreement with Employee.


 


(b)          The Company, on behalf of itself
and its affiliates and each of their respective officers, directors, partners, shareholders, employees, and agents, hereby releases
and forever discharges Employee from any and all claims whatsoever up to the date hereof that it had, may have had, now have or
may have for or by reason of any claim arising out of or attributable to Employee’s employment or the termination of your
employment with the Company, or pursuant to any, United States federal, state, or local law or regulation. Company agrees to indemnify
and hold Employee harmless from and against any claim, grievance, loss, damage, liability, cost or expense, including without limitation,
reasonable attorneys’ fees by reason of Company’s breach of this Agreement, representations, warranties, and covenants
made under this Agreement. 


 


(c)          Employee warrants
and represents that he has not heretofore assigned or transferred to any person or entity any of the matters released hereunder,
nor has he filed any grievance, charge or complaints against Company with any governmental or administrative agency or court. Employee
agrees to indemnify and hold the Releasees harmless from and against any claim, grievance, loss, damage, liability, cost or expense,
including without limitation, reasonable attorneys’ fees by reason of Employee's breach of this Agreement, representations,
warranties, and covenants made under this Agreement.


 




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(d)          Employee acknowledges that this
Agreement is an important legal document and that Employee has been requested to sign this document as part of his separation from
Company. Employee acknowledges, therefore, that: (i) Employee has read this Agreement in its entirety, (ii) Employee is competent
to execute this Agreement, (iii) Employee has executed this Agreement knowingly and voluntarily and without reliance upon any statement
or representation of any Releasee or its representatives, (iv) Employee has been advised to, and has had ample opportunity if so
desired, to discuss this Agreement with his own attorney for assistance and advice concerning this Agreement, (v) the terms of
this Agreement have been negotiated, (vi) Employee understands the terms of this Agreement and their legal effects, and (vii) Employee
understands that the terms of this Agreement are enforceable. Employee further covenants, warrants, and represents that he has
entered into this Agreement freely and voluntarily.


 


(e)          Employee acknowledges
that Company has given him the opportunity to consider this Agreement for twenty-one (21) days before executing it. In the event
that Employee has executed this Agreement within less than twenty-one (21) days of the date of its delivery to him, Employee acknowledges
that such decision was entirely voluntary and that he had the opportunity to consider this Agreement for the entire twenty-one
(21) day period.


 


(f)          This entire
Agreement and any obligations of the Company under Sections 7.4 and 7.5 of the Employment Agreement shall be null and void and
shall be automatically withdrawn unless Employee executes and returns this Agreement to Company no later than twenty-one (21) days
after the effective date of termination.


 


(g)          Employee further
acknowledges that for a period of seven (7) days following the full execution of this Agreement, he may revoke this Agreement,
thus this Agreement shall not become effective or enforceable, nor shall Company have any obligations hereunder, until after the
seven (7) day revocation period has expired. Employee may revoke this Agreement only by delivering a written statement of revocation
to Company, attention [_______]. If Company does not receive Employee’s written statement of revocation by the end of the
seven (7) day revocation period, then this Agreement will become legally enforceable and Employee may not thereafter revoke.          


 


4.          No
Admission. The Parties agree that this Agreement does not constitute an admission by the Company of any: (a) violation of any
statute, law, regulation, order or other applicable authority; (b) breach of contract, actual or implied; or (c) commission of
any tort.


 


5.          Non-Disparagement.
Executive agrees not to disparage the Company or any of its officers, directors, employees, agents or representatives, or any of
such entities’ products or services; provided, that the foregoing shall not prohibit the Executive from making any general
competitive statements or communications about the Company or their businesses in the ordinary course of competition. Further,
Executive agrees and understands that any violation of this provision will void this Agreement and Executive will be required to
return or repay any and all considered received under this Agreement to the Company.


 




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6.          Confidentiality.
The Parties hereto agree to keep the existence and terms of this Agreement confidential, except as required to be disclosed by
the regulations of the Securities and Exchange Commission. Executive specifically agrees not to discuss the existence or terms
of this Agreement with any third party except for his spouse, legal counsel and financial and legal advisors.


 


7.          Binding
Effect. All terms and provisions of this Agreement, whether so expressed or not, shall be binding upon, inure to the benefit
of, and be enforceable by the Parties and their respective administrators, executors, other legal representatives, heirs, successors
and permitted assigns.


 


8.          Enforcement
Costs. If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute,
breach, default or misrepresentation in connection with any provisions of this Agreement, the successful or prevailing Party or
Parties shall be entitled to recover reasonable attorneys' fees and expenses, court costs and all expenses even if not taxable
as court costs (including, but not limited to, all attorneys' fees and expenses incident to any appeals), incurred in that action
or proceeding, in addition to any other relief to which such Party or Parties may be entitled.


 


9.          Entire
Agreement. This Agreement represents the entire understanding and Agreement between the Parties with respect to the subject
matter discussed in this Agreement, and supersedes all other negotiations, understandings and representations (if any) made by
and between such Parties with respect to such subject matter. In the event that any provision in this Agreement is determined to
be legally invalid or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, the affected
provision shall be stricken from the Agreement, and the remaining terms of the Agreement and its enforceability shall remain unaffected
thereby.


 


10.          Counterparts.
This Agreement may be executed in one or more counterparts, and counterparts may be exchanged by electronic transmission (including
by email), each of which will be deemed an original, but all of which together constitute one and the same instrument.


 


11.          Opportunity
for Independent Representation. Employee hereby acknowledges and agrees that he has been given the opportunity, if so desired,
to seek independent counsel for review and advice in connection with his rights, remedies and obligations under this Agreement.


 


12.          Governing
Venue and Submission to Jurisdiction. This Agreement shall be governed by the laws of the State of Florida. Any suit, action
or other legal proceeding arising out of, or relating to, this Agreement shall be brought in a court of competent jurisdiction
located in Miami-Dade County, Florida having subject matter jurisdiction thereof and both Parties agree to submit to the jurisdiction
of such forum.


 




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13.          Notices.
All notices, demands, requests and replies required or permitted by this Agreement shall be in writing and shall be deemed given
when delivered in person or on the third (3rd) business day following the date of mailing if sent by first-class mail,
postage prepaid, return receipt requested, addressed as follows:


 


	 	(a)	if to the Company:	Trade Street Residential, Inc.
	 	 	 	Attention: [_______]
	 	 	 	19950 W. Country Club Drive
	 	 	 	Suite 800
	 	 	 	Aventura, FL 33180


 


	 	(b)	if to the Employee:	____________________
	 	 	 	____________________
	 	 	 	____________________


 


PLEASE READ CAREFULLY.
THIS DOCUMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.


 


[Signature Page Follows]


 




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[Signature Page to Separation Agreement
and Release]


 


The undersigned, Employee,
hereby represents that he has executed this Agreement for the purposes and the consideration expressed herein, and that he has
carefully read this Agreement, has had adequate time and opportunity to consider and understand its meaning and effect, and, if
he so desired, discussed it with any person of his choice, including his attorney, and that he has voluntarily executed it as such.


 





	EMPLOYEE	 	TRADE STREET RESIDENTIAL, INC.
	 	 	 
	By:	 	 	By:	 
	 	[NAME]	 	 










	 	 	Print Name:	 
	 	 	 	 
	 	 	Title:	 
	 	 	 	 
	Date:	 	 	Date:	 







 




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