Exhibit 10.3


 


EMPLOYMENT AGREEMENT


 


This
EMPLOYMENT AGREEMENT (this “Agreement”), effective as of August 7, 2014 (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 Ryan Hanks, an individual resident of the State of Florida (the “Executive”).


 


W I T N E S S E T H:


 


WHEREAS,
the Company desires to continue the employment of the Executive as the Chief Investment Officer and interim Chief Operating Officer
of the Company, and the Executive desires to continue said employment with the Company, subject to the terms of this Agreement;
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 (including for the avoidance of doubt, the amounts payable pursuant to Section 8.2) 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.


 


“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 12 hereof. Notwithstanding anything to the contrary herein or elsewhere,
(x) cessation of the Executive’s position as interim Chief Operating Officer of the Company, and the related diminution in
the Executive’s title, duties or responsibilities (including any reduction in the corporate functions directly reporting
to the Executive), and/or any reductions in the Executive’s Base Salary and/or target bonus opportunity to levels at least
equal to the levels in effect before the Executive commenced the interim position that result from the cessation of the Executive’s
position as interim Chief Operating Officer of the Company and (y) if the Company appoints Executive as the permanent Chief Operating
Officer of the Company, cessation of the Executive’s position as the Chief Investment Officer of the Company, and the related
diminution in the Executive’s title, duties or responsibilities (including any reduction in the corporate functions directly
reporting to the Executive), and/or any reductions in the Executive’s Base Salary and/or target bonus opportunity to levels
at least equal to the levels in effect before the Executive commenced the interim position that result from the cessation of the
Executive’s position as the Chief Investment Officer of the Company, in each case shall not be taken into account in determining
whether a Good Reason event has occurred for purposes of this Agreement. 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.


 


“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.


 


“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.


 


“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.


 


“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 and agrees to employment with the Company, upon
the terms and subject to the conditions set forth herein. The Executive shall serve as Chief Investment Officer and interim Chief
Operating Officer 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 Investment Officer and, for so long as Executive is serving in such position, Chief Operating Officer of the
Company 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 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.
Notwithstanding the foregoing, the Company and the Executive acknowledge and agree that the Executive’s position of interim
Chief Operating Officer of the Company is intended to be a temporary position and the Executive shall no longer serve in such position
once the Company appoints a permanent Chief Operating Officer of the Company; provided, however, that if the Company appoints Executive
as the permanent Chief Operating Officer of the Company, this Agreement shall continue to govern the Executive’s employment
after such appointment.


 




    	 



    	 



    

 


3.             Term.
Subject to the provisions of termination as hereinafter provided, the initial term of this Agreement shall begin on the date hereof
and shall terminate on the third (3rd) anniversary of the date hereof (the “Initial Term”); provided,
however that unless the Company or the Executive provides notice of non-renewal pursuant to Section 4, the term of 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”) on the last day of the Initial Term and each Renewal Term;
provided, further, that if a Change in Control occurs during the Initial Term or any Renewal Term, such Initial Term or Renewal
Term, as the case may be, shall not expire before the one (1) year anniversary of the Change in Control, unless expressly agreed
to in writing by the Executive. 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, 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 $300,000 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.


 


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 (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 three (3) 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 Employment and Term. The Executive’s employment may be terminated by reason of 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;


 


6.3           The
Executive’s Disability;


 


6.4           By
the Company with or without Cause; and


 


6.5           By
the Executive with or without Good Reason.


 


Upon any termination
of Executive’s employment, the Term shall automatically terminate; provided, however, that (a) the Company’s obligations,
if any, under Section 7 and the Executive’s obligation under Section 7.6 (to the extent such obligations arose
as a result of the termination of the Executive’s employment during the Term), (b) the Company’s obligations under
Section 8 (to the extent such obligations arose as a result of, or prior to, the termination of the Executive’s employment)
and (c) Sections 9 through 22, shall survive until all obligations thereunder have been satisfied or until such provisions
are no longer relevant.


 




    	 



    	 



    

 


7.            Company’s Post -Termination Obligations.


 


7.1           Termination
by Mutual Written Agreement. If the Executive’s employment is terminated during the Term 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) any earned but unpaid bonus relating to the year prior to the termination
date; 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
under subparagraphs (i), (ii) and (iii) (with respect to reimbursement requests submitted prior to the termination date) shall
be made by the Company within thirty (30) business days after the Executive’s
termination date; provided that with respect to those reimbursement requests submitted after the termination date, the payment
date will be determined by the Company in its sole discretion, subject to Section 9 hereof. 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 the Executive’s employment is terminated during the Term 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) any earned but unpaid bonus relating to the year
prior to the termination date; 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 under subparagraphs (i), (ii) and (iii) (with respect to reimbursement requests submitted prior to the
termination date) shall be made by the Company within thirty (30) business days after
the Executive’s termination date; provided that with respect to those reimbursement requests submitted after the termination
date, the payment date will be determined by the Company in its sole discretion, subject to Section 9 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.


 




    	 



    	 



    

 


7.3           Termination
for Death or Disability.         If the Executive’s employment is
terminated during the Term due to the Executive’s death or by the Company due to the Executive’s 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) any earned but unpaid
bonus relating to the year prior to the termination date; (iii) all unreimbursed business expenses with respect to which Executive
is entitled to reimbursement as provided herein, provided that, with respect to reimbursements, 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 such amounts under subparagraphs (i), (ii), (iii) (with
respect to reimbursement requests submitted prior to the termination date), and (iv) shall be made by the Company to the Executive
(or the Executive’s estate and/or beneficiaries, as the case may be) within thirty (30) business days after
the Executive’s termination date; provided that with respect to those reimbursement requests submitted after the termination
date, the payment date will be determined by the Company in its sole discretion, subject to Section 9 hereof. 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 the Executive’s employment is terminated during the Term 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 based on
the Executive’s then current Base Salary, through the termination date; (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, with respect to reimbursements, 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 within ten (10) business days of the Executive’s termination date; (iv) any earned but unpaid bonus
relating to the year prior to the termination date; 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 above amounts 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 separation payments equal, in the aggregate, to one and one-half times (1.5x) the sum of (A)
the Executive’s then current Base Salary, and (B) the Executive’s average Bonus for the two (2) year period prior to
the date of termination of employment (if the termination of employment occurs prior to the date the Executive was eligible to
earn two Bonuses, the average Bonus for the two (2) year period shall be deemed to be the Executive’s target Bonus in the
year of termination).  Payment of the separation payments shall be made in equal installments over a period of eighteen
(18) months from the date of termination, in accordance with the Company’s regular payroll practices; provided, that the
first of such payments shall not be made unless and until the Executive has satisfied the conditions set forth in Section 7.6(i)
and the release required thereby has become irrevocable within sixty (60) days following the date of termination; provided, further,
that if such sixty (60) day period spans two calendar years, and any amounts payable during such sixty (60) day period constitute
“nonqualified deferred compensation” for purposes of Code Section 409A, the first of such payments shall not commence
before the first regular payroll payment date in the latter of the two calendar years. The first installment payment made pursuant
to the preceding sentence shall include all amounts that would have been paid between the date of termination and such first payroll
payment date had they been payable on the applicable payroll date. Additionally, notwithstanding anything to the contrary in the
Incentive Plan or any award agreement, upon the Company’s termination of the Executive employment without Cause or the Executive’s
termination for Good Reason, all of the 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; provided, however, that to the extent an award (other
than an option or stock appreciation right) is intended to qualify as performance-based compensation for purposes of Section 162(m)
of the Code, such award shall not vest as a result of the termination of the Employee’s employment and shall, instead, remain
outstanding after such termination and shall be subject to the terms and conditions of the applicable award agreement and plan
document (other than conditions related to continued employment). 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.


 




    	 



    	 



    

 


7.5           Termination
upon Non-Renewal by the Company. If the Executive’s employment is terminated due to the Company’s election not
to extend the Term pursuant to Section 4 hereof and the Executive is willing and able, at the time of such non-renewal, to continue
providing services on the terms and conditions set forth herein, 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 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 expiration of the Term; (iv) any earned but unpaid bonus relating to the year prior to the termination date; 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 above amounts 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 one times (1x) the Executive’s then current Base Salary. Payment of the separation payments shall
be made in equal installments over a period of twelve (12) months from the date of termination, in accordance with the Company’s
regular payroll practices; provided, that the first of such payments shall not be made unless and until the Executive has satisfied
the conditions set forth in Section 7.6(i) and the release required thereby has become irrevocable within sixty (60) days
following the date of termination; provided, further, that if such sixty (60) day period spans two calendar years, and any amounts
payable during such sixty (60) day period constitute “nonqualified deferred compensation” for purposes of Code Section
409A, the first of such payments shall not commence before the first regular payroll payment date in the latter of the two calendar
years. The first installment payment made pursuant to the preceding sentence shall include all amounts that would have been paid
between the date of termination and such first payroll payment date had they been payable on the applicable payroll date. Additionally,
notwithstanding anything to the contrary in the Incentive Plan or any award agreement, upon the termination of the Executive’s
employment in accordance with this Section 7.5, 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; provided, however, that to
the extent an award (other than an option or stock appreciation right) is intended to qualify as performance-based compensation
for purposes of Section 162(m) of the Code, such award shall not vest as a result of the termination of the Executive’s employment
and shall, instead, remain outstanding after such non-renewal and shall be subject to the terms and conditions of the applicable
award agreement and plan document (other than conditions related to continued employment). 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 Sections 7.4 and 7.5
above shall be conditioned upon the following (the “Separation Conditions”):


 


(i)          within
sixty (60) days following termination of the Executive’s employment, 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; 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.


 


7.7           If
the Executive does not satisfy the requirements set forth in Section 7.6, the Company will not provide any separation payments
to the Executive under Sections 7.4, 7.5 or 8.2, as applicable, and such benefits will be forfeited by the
Executive. The Company’s obligation to make the separation payments set forth in Sections 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, in lieu of any obligations
under Section 7, 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 Executive’s termination date (if the Change in Control occurs prior
to the date the Executive was eligible to earn two Bonuses, the average Bonus for the two (2) year period shall be deemed to be
the Executive’s target Bonus in the year of termination);


 


(iv)        a
payment for any earned but unpaid Bonus relating to the prior year;


 


(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           Any
payments and benefits provided to the Executive pursuant to this Section 8.2 shall be provided to the Executive in lieu
of any payments and benefits to which the Executive may be entitled under Section 7.4. Payment of the amounts required by
Section 8.2 shall be made in a lump sum on the first regular payroll payment date within the sixty (60) day period following
the date of the Executive’s termination of employment; provided, that the payment shall not be made unless and until the
Executive has satisfied the conditions set forth in Section 7.6(i) and the release required thereby has become irrevocable
within such sixty (60) day period following the date of termination; provided, further, that if such sixty (60) day period spans
two calendar years, any amounts that constitute “nonqualified deferred compensation” for purposes of Code Section 409A
shall not be made before the first regular payroll payment date in the latter of the two calendar years. 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.


 


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.


 


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 the Company without Cause, by the Executive for
Good Reason, or due to Company’s non-renewal of the Agreement pursuant to Section 4 hereof, the Executive shall not
(i) perform services as an executive officer of a real estate investment trust that competes with the Company (i.e., owns multi-family
apartment at least half of which are located within one hundred miles of apartment communities owned by the Company) in the ownership
and operation of multi-family residential real estate (each, a “Competing Entity”) or (ii) directly or indirectly
solicit any customer or client (which shall not include lawyers, accountants lenders with whom the Company does business) 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.


 


Notwithstanding anything
to the contrary in this Agreement, in the event that the Executive commences employment with a Competing Entity, the Company shall,
effective on the date the Executive’s employment with a Competing Entity commences, cease making payments to the Executive
required by Section 7 and/or Section 8 of this Agreement and shall thereafter have no further obligation to make
any payments to the Executive under this Agreement.


 




    	 



    	 



    

 


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.


 


(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.


 


(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 Sections 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 Sections 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 Sections
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 Sections 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.


 




    	 



    	 



    

 


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.


 


12.         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.


 


13.         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:


 


[Address on file with the Company]


 




    	 



    	 



    

 


(ii)         If
to the Company, to:


 


Trade Street Residential, Inc.


19950 West Country Club Drive, Suite 800 Aventura,
Florida 33180


Attention: Director, Human Resources


 


14.         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.


 


15.         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.


 


16.         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.


 


17.         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.


 


18.         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.


 


19.         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.


 




    	 



    	 



    

 


20.         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.


 


21.         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]


 




    	 



    	 



    

 


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


 


	 	EXECUTIVE:
	 	 	 
	 	By:	/s/ Ryan Hanks
	 	 	Ryan Hanks
	 	 
	 	TRADE STREET RESIDENTIAL, INC.:
	 	 	 
	 	By:	/s/ Richard Ross
	 	 	Richard Ross
	 	Title:	Chief Executive Officer


 




    	 



    	 



    

 


EXHIBIT A


 


FORM OF SEPARATION AGREEMENT AND RELEASE


 


This Separation Agreement
and Release (“Agreement”) is made and entered into by and between Ryan Hanks (“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.


 




    	 



    	 



    

 


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, attorneys, 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 (“Claims”) 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.


 




    	 



    	 



    

 


(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.


 




    	 



    	 



    

 


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.


 


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]


 




    	 



    	 



    

 


[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:	 
	Ryan Hanks	 	 	 
	 	 	 	Print Name:	 
	 	 	 	 	 
	 	 	 	Title:	 
	 	 	 	 	 
	Date:	 	 	Date: