MANAGEMENT AGREEMENT


 


among


 


Bluerock Residential
Growth REIT, Inc.


 


Bluerock Residential
Holdings, L.P.


 


and


 


BRG Manager, LLC


 


Dated as of April 2,
2014


 




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MANAGEMENT AGREEMENT,
dated as of April 2, 2014, among Bluerock Residential Growth REIT, Inc., a Maryland corporation (“BRG”), Bluerock
Residential Holdings, L.P., a Delaware limited partnership (the “Operating Partnership”) and BRG Manager, LLC,
a Delaware limited liability company (the “Manager”).


 


W I T
N E S S E T H:


 


WHEREAS, BRG intends to
invest in Target Assets (as defined below) and has qualified as a real estate investment trust for federal income tax purposes
under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”) beginning
with its taxable year ended December 31, 2010; and


 


WHEREAS, BRG is the general
partner of the Operating Partnership, and BRG intends to conduct substantially all of its business and make all Investments (as
defined below) through the Operating Partnership;


 


WHEREAS, BRG and the Operating
Partnership desire to retain the Manager to administer the business activities and day-to-day operations of the Company (as defined
below) and to perform services for the Company in the manner and on the terms set forth herein and the Manager wishes to be retained
to provide such services, subject to the supervision of the Board (as defined below), on the terms and conditions hereinafter set
forth;


 


WHEREAS, the Manager wishes
to be retained to administer such business activities and day-to-day operations and to provide such services;


 


NOW THEREFORE, in consideration
of the premises and agreements hereinafter set forth, the parties hereto hereby agree as follows:


 


Section 1. Definitions.


 


(a) The
following terms shall have the meanings set forth in this Section 1(a):


 


“Above-Market
Rates” has the meaning set forth in Section 10(b).





 


“Acquisition
Expenses” means any and all expenses incurred by the Company, the Manager or any of their respective Affiliates in connection
with the selection, evaluation, acquisition, origination, making or development of any Investment, whether or not acquired, including,
but not limited to, legal fees and expenses, travel and communications expenses, property inspection expenses, third party brokerage
or finder’s fees, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses,
title insurance premiums and expenses, survey expenses, closing costs and the costs of performing due diligence.


 


“Affiliate”
means (i) any Person directly or indirectly controlling, controlled by, or under common control with such other Person, (ii) any
executive officer or general partner of such other Person, (iii) any member of the board of directors or board of managers
(or bodies performing similar functions) of such Person, and (iv) any legal entity for which such Person acts as an executive
officer or general partner.


 


“AFFO”
means adjusted funds from operations, calculated by adjusting FFO by adding back acquisition expenses, equity based compensation
expenses, and any other non-recurring on non-cash expenses, and subtracting recurring capital expenditures (and, when calculating
the Incentive Fee only, further adjusting FFO to include any realized gains or losses on the Company’s real estate investments).


 


“Agreement”
means this Management Agreement, as amended, supplemented or otherwise modified from time to time.


 


“Automatic
Renewal Term” has the meaning set forth in Section 10(a) hereof.


 



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“Bankruptcy”
means, with respect to any Person, (a) the filing by such Person of a voluntary petition seeking liquidation, reorganization,
arrangement or readjustment, in any form, of its debts under Title 11 of the United States Code or any other U.S. federal or state
or foreign insolvency law, or such Person’s filing an answer consenting to or acquiescing in any such petition, (b) the
making by such Person of any assignment for the benefit of its creditors, (c) the expiration of 60 days after the filing
of an involuntary petition under Title 11 of the Unites States Code, an application for the appointment of a receiver for a material
portion of the assets of such Person, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment
of its debts under any other U.S. federal or state or foreign insolvency law; provided, that the same shall not have been
vacated, set aside or stayed within such 60-day period or (d) the entry against such Person of a final and non-appealable
order for relief under any bankruptcy, insolvency or similar law now or hereinafter in effect.


 


“Base
Management Fee” means the base management fee in an amount equal to the sum of (a) 0.25% of BRG’s Existing and
Contributed Stockholders’ Equity, per annum, calculated and payable in quarterly installments in arrears in cash, and (b)
1.50% of BRG’s New Stockholders’ Equity, per annum, calculated and payable in quarterly installments in arrears in
cash.


 


“BRG”
has the meaning set forth in the preamble.


 


“Board”
means the board of directors of BRG. In every instance herein requiring approval of the Board or referring to policies or directions
of the Board, for purposes of this Agreement, the Board shall be deemed to include any duly appointed and constituted committee
of the Board with respect to each and every act that under the Governing Instruments or applicable law may be taken with the approval
of a duly appointed and constituted committee of the Board, and references herein to the Board shall be deemed to include references
to each such committee.


 


“Business
Day” means any day except a Saturday, a Sunday or a day on which banking institutions in New York, New York are not required
to be open.


 


“Cause
Termination Notice” has the meaning set forth in Section 11(a).


 


“Claim”
has the meaning set forth in Section 8(d) hereof.


 


“Class
A Common Stock” means the Class A common stock, par value $0.01 per share, of BRG.


 


“Class
B Common Stock” means, collectively, the Class B-1 common stock, Class B-2 common stock, and Class B-3 common stock,
in each case, par value $0.01 per share, of BRG.


 


“Closing
Date” means the date of closing of the Public Offering.


 


“Code”
has the meaning set forth in the Recitals.


 


“Common
Stock Equivalents” means shares of the Class A Common Stock issuable pursuant to outstanding rights, options or warrants
to subscribe for, purchase or otherwise acquire shares of Class A Common Stock that are in-the-money on such date.


 


“Company”
means, collectively, BRG and the Operating Partnership.


 


“Company
Entities” means, collectively, BRG, the Operating Partnership and each of their respective subsidiaries.


 


“Company
Indemnified Party” has meaning set forth in Section 8(c) hereof.


 


“Conduct
Policies” has the meaning set forth in Section 2(l) hereof.


 


“Confidential
Information” has the meaning set forth in Section 5 hereof.


 


“Effective
Termination Date” has the meaning set forth in Section 10(b) hereof, and shall also mean the effective date of
termination of this Agreement by any notice given pursuant to Sections 10(d), 11(a) or 11(b) hereof.


 






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“Equity
Incentive Plans” means the equity incentive plans adopted by BRG to provide incentive compensation to attract and retain
qualified independent directors, executive officers and other key employees, including officers and employees of the Manager and
Operating Partnership and their Affiliates and other service providers, including the Manager and its Affiliates.


 


“Exchange
Act” means the Securities Exchange Act of 1934, as amended.


 


“Existing and
Contributed Stockholders’ Equity” means (a)  the net proceeds from (or equity value assigned
to) all issuances of BRG’s equity and equity equivalent securities (including Class B Common Stock (including upon their
conversion into shares of Class A Common Stock), Common Stock Equivalents, preferred stock and units of limited partnership interest
in the Operating Partnership) since inception (allocated on a pro rata daily basis for such issuances during the fiscal quarter
of any such issuance), less (b) any amount that BRG has paid to repurchase BRG’s Common Stock since inception. Existing
and Contributed Stockholders’ Equity also excludes (1) any unrealized gains and losses and other non-cash items (including
depreciation and amortization) that have impacted stockholders’ equity as reported in the Company’s financial statements
prepared in accordance with GAAP, and (2) one-time events pursuant to changes in GAAP, and certain non-cash items not otherwise
described above, in each case after discussions between the Manager and the Independent Directors and approval by a majority of
the Independent Directors.


 


“FFO”
means funds from operations as such term is from time to time defined by the National Association of Real Estate Investment Trusts,
as net income, computed in accordance with GAAP, excluding gains (or losses) from sales of property, plus depreciation and amortization
of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated
partnerships and joint ventures will be calculated to reflect FFO on the same basis.


 


“Financing
Transaction” means any financing transaction with respect to any Investment involving any of the Company Entities incurring
any mortgage or other indebtedness, including the entering into any line of credit, mezzanine financing, preferred equity financing,
and any transaction involving the creation of any commercial mortgage-backed security.


 


“GAAP”
means generally accepted accounting principles in effect in the United States on the date such principles are applied.


 


“Governing
Instruments” means, with regard to any entity, the articles of incorporation or certificate of incorporation and bylaws
in the case of a corporation, the partnership agreement in the case of a general partnership, the certificate of limited partnership
and the partnership agreement in the case of a limited partnership, the certificate of formation and operating agreement in the
case of a limited liability company, the trust instrument in the case of a trust, or similar governing documents, in each case
as amended from time to time.


 


“Incentive
Fee” means the incentive fee payable to the Manager, which shall be calculated and payable with respect to each calendar
quarter (or part thereof that this Agreement is in effect) in arrears in an amount, not less than zero, equal to the difference
between (1) the product of (a) 20% and (b) the difference between (i) AFFO of BRG for the previous 12-month
period, and (ii) the product of (A) the weighted average of the issue price of equity securities issued in the Public
Offering and in future offerings and transactions of BRG, multiplied by the weighted average number of all shares of Class A Common
Stock outstanding on a fully-diluted basis (including, for the avoidance of doubt, any restricted stock units, any restricted shares
of Class A Common Stock, Equity Incentive Plan units, and other shares of common stock underlying other awards granted under one
or more of BRG’s Equity Incentive Plans and units of limited partnership interest in the Operating Partnership) in the previous
12-month period, exclusive of equity securities issued prior to the Public Offering, and (B) 8%, and (2) the sum of any
Incentive Fees paid to the Manager with respect to the first three calendar quarters of such previous 12-month period; provided,
however, that no Incentive Fee is payable with respect to any calendar quarter unless AFFO is greater than zero for the four most
recently completed calendar quarters, or the number of completed calendar quarters since the Closing Date of the Public Offering,
whichever is less. For purposes of calculating the Incentive Fee during the first 12 months after completion of the Public Offering,
AFFO will be determined by annualizing the applicable period following completion of the Public Offering.


 






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If the Effective
Termination Date does not correspond to the end of a calendar quarter, the Manager’s Incentive Fee shall be calculated for
the period beginning on the day after the end of the calendar quarter immediately preceding the Effective Termination Date and
ending on the Effective Termination Date, which Incentive Fee shall be calculated using AFFO for the 12-month period ending on
the Effective Termination Date.


 


“Indemnified
Party” has the meaning set forth in Section 8(c) hereof.


 


“Independent
Director” means a member of the Board who is “independent” in accordance with BRG’s Governing Instruments
and the rules of the Securities Exchange on which the shares of Class A Common Stock are listed.


 


“Initial
Term” has the meaning set forth in Section 10(a) hereof.


 


“Investment”
means any investment by the Company, directly or through a subsidiary, in a Target Asset.


 


“Investment
Allocation Agreement” refers to the investment allocation agreement, dated April 2, 2014, by and among BRG, the Operating
Partnership, the Manager and Bluerock Real Estate, L.L.C.


 


“Investment
Committee” means the investment committee of the Board, which shall be composed of at least three members appointed by
the Board, at least a majority of which shall be Independent Directors, formed for the primary purpose of (1) periodically
reviewing the Company’s Investments and (2) pursuant to the Investment Guidelines, approving certain investments proposed
to be made by the Company.


 


“Investment
Company Act” means the Investment Company Act of 1940, as amended.


 


“Investment
Guidelines” means the investment guidelines approved by the Board, a copy of which is attached hereto as Exhibit A,
as the same may be amended, restated, modified, supplemented or waived pursuant to the approval of a majority of the entire Board
(which must include a majority of the Independent Directors).


 


“Investment
Transaction” means any purchase, acquisition, exchange, sale or disposition, merger or interest exchange that results
in the acquisition or disposition of, or other transaction involving, an Investment.


 


“Last
Appraiser” has the meaning set forth in Section 6(g) hereof.


 


“Losses”
has the meaning set forth in Section 8(b) hereof.


 


“LTIP
Unit” shall have the definition set forth in the partnership agreement of the Operating Partnership.


 


“Manager”
has the meaning set forth in the Recitals.


 


“Manager
Change of Control” means a change in the direct or indirect (i) beneficial ownership of more than fifty percent
(50%) of the combined voting power of the Manager’s then outstanding equity interests, or (ii) power to direct or control
the management policies of the Manager, whether through the ownership of beneficial equity interests, common directors or officers,
by contract or otherwise. Manager Change of Control shall not include (i) public offerings of the equity interests of the Manager,
(ii) any of the foregoing changes resulting from a transfer by R. Ramin Kamfar to a trust or other entity created for estate planning
purposes primarily for the benefit of R. Ramin Kamfar, or (iii) any assignment of this Agreement by the Manager as permitted
hereby and in accordance with the terms hereof.


 






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“Manager
Indemnified Party” has the meaning set forth in Section 8(a) hereof.


 


“Manager
Permitted Disclosure Parties” has the meaning set forth in Section 5(a) hereof.


 


“New Stockholders’
Equity” means (a) the sum of (1) the net proceeds from (or equity value assigned to) all issuances of BRG’s equity
and equity equivalent securities (including Class A Common Stock, Common Stock Equivalents, preferred stock and units of limited
partnership interest in the Operating Partnership) in the Public Offering or any subsequent offering (allocated on a pro rata daily
basis for such issuances during the fiscal quarter of any such issuance), plus (2) BRG’s retained earnings at the end of
the most recently completed calendar quarter (without taking into account any non-cash equity compensation expense incurred in
current or prior periods), less (b) any amount that BRG has paid to repurchase BRG’s Class A Common Stock issued in the Public
Offering or any subsequent offering. New Stockholders’ Equity also excludes (1) any unrealized gains and losses and other
non-cash items (including depreciation and amortization) that have impacted stockholders’ equity as reported in the Company’s
financial statements prepared in accordance with GAAP, and (2) one-time events pursuant to changes in GAAP, and certain non-cash
items not otherwise described above, in each case after discussions between the Manager and the Independent Directors and approval
by a majority of the Independent Directors.


 


“Notice of Proposal
to Negotiate” has the meaning set forth in Section 10(c) hereof.


 


“NYSE”
means the New York Stock Exchange.


 


“Person”
means any natural person, corporation, partnership, association, limited liability company, estate, trust, joint venture, any federal,
state, county or municipal government or any bureau, department or agency thereof or any other legal entity and any fiduciary acting
in such capacity on behalf of the foregoing.


 


“Public
Offering” means BRG’s sale of Class A Common Stock to the public through underwriters pursuant to BRG’s Registration
Statement on Form S-11 (No. 333-192610).


 


“Regulation FD”
means Regulation FD as promulgated by the SEC.


 


“REIT”
means a “real estate investment trust” as defined under the Code.


 


“SEC”
means the United States Securities and Exchange Commission.


 


“Securities
Act” means the Securities Act of 1933, as amended.


 


“Securities
Exchange” means the NYSE, NYSE MKT, and any other nationally recognized securities exchange on which BRG’s Class
A Common Stock is traded.


  


“Target
Assets” means the types of assets described under “Our Business and Properties” in the prospectus
contained in BRG’s Registration Statement on Form S-11 (No. 333-192610) relating to the Public Offering, subject
to, and including any changes to the Company’s Investment Guidelines that may be approved by the Board from time to time.


 


“Termination
Fee” means a termination fee equal to three (3) times the sum of (i) the Base Management Fee and (ii) the
Incentive Fee, in each case, earned by the Manager during the 12-month period immediately preceding the most recently completed
fiscal quarter prior to the Effective Termination Date.


 


“Termination
Notice” has the meaning set forth in Section 10(b) hereof.


 


“Termination
Without Cause” has the meaning set forth in Section 10(b) hereof.


 






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“Valuation
Notice” has the meaning set forth in Section 6(g) hereof.


 


(b)As used
herein, accounting terms relating to any Company Entity, if any, not defined in Section 1(a) and accounting terms partly
defined in Section 1(a), to the extent not defined, shall have the respective meanings given to them under GAAP. As
used herein, “calendar quarters” shall mean the period from January 1 to March 31, April 1 to June 30, July
1 to September 30 and October 1 to December 31 of the applicable year.


 


(c)The words
“hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this
Agreement unless otherwise specified.


 


(d)The meanings
given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The words include,
includes and including shall be deemed to be followed by the phrase “without limitation.”


 


Section 2. Appointment
and Duties of the Manager.


 


(a)BRG and
the Operating Partnership hereby appoint the Manager to manage the investments and day-to-day operations of the Company Entities,
subject at all times to the further terms and conditions set forth in this Agreement and to the supervision and direction of, and
such further limitations or parameters as may be imposed from time to time by, the Board. The Manager hereby agrees to use its
commercially reasonable efforts to perform each of the duties set forth herein, provided that funds are made available by the Company
for such purposes as set forth in Section 7 hereof, and further subject to Section 6 hereof. The appointment
of the Manager shall be exclusive to the Manager, except to the extent that the Manager elects, in its reasonable discretion, subject
to the terms of this Agreement, to cause the duties of the Manager as set forth herein to be provided by third parties.


 


(b)The Manager,
in its capacity as manager of the Investments and the operations of the Company Entities, at all times will be subject to the supervision
and direction of the Board and will use commercially reasonable efforts to present to the Company potential investment opportunities
and will perform its duties hereunder, including managing the Company’s business affairs in conformity with the Investment
Guidelines and other policies that are approved and monitored by the Board. BRG, the Operating Partnership and the Manager hereby
acknowledge the recommendation by the Manager and the approval by the Board of the Investment Guidelines, including, but not limited
to the Company’s investment strategy in the Target Assets. BRG, the Operating Partnership and the Manager hereby acknowledge
and agree that, during the term of this Agreement, any proposed changes to the Company’s investment strategy that would modify
or expand the Target Assets shall require a change in, or supplement to, the Investment Guidelines. The Company shall notify the
Manager promptly of any amended, restated, supplemented or waived Investment Guidelines, including any modification or revocation
of the Manager’s authority set forth in the Investment Guidelines; provided, however, that such modification or revocation
shall not be applicable to Investment Transactions to which the Manager has committed any Company Entity prior to the date of receipt
by the Manager of such notification.


 


(c)The Manager
will be responsible for (1) the selection, purchase, sale and disposition of Investments, (2) the Company’s financing activities,
and (3) providing the Company with advisory services. In addition, the Manager will be responsible for the day-to-day operations
of the Company Entities (which, for purposes of the Manager’s responsibilities in this Agreement, includes their respective
subsidiaries) and will perform (or cause to be performed) such services and activities relating to the Investments and operations
of the Company Entities as may be appropriate, which may include, without limitation:


 


(i)serving as the Company’s
consultant with respect to the periodic review of the Investment Guidelines and other parameters for the Company’s Investments,
financing activities and operations, any modification to which will be approved by the Board (including a majority of the Independent
Directors);


 






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(ii)investigating,
analyzing, and selecting possible Investment opportunities and acquiring, financing, retaining, selling, restructuring, exchanging
or disposing of Investments consistent with the Investment Guidelines;


 


(iii)with respect
to prospective Investment Transactions and Financing Transactions, conducting negotiations (including negotiation of definitive
agreements) on the Company’s behalf with sellers, purchasers, and brokers and, if applicable, their respective agents and
representatives;


 


(iv) negotiating
and entering into, on the Company’s behalf, interest rate swap agreements and other agreements and instruments required for
the Company to conduct the Company’s business;


 


  (v) effecting
any private placement of interest in the Operating Partnership, tenancy-in-common or other interests in Investments as may be approved
by the Board;


 


(vi)engaging and
supervising, on the Company’s behalf and at the Company’s expense, independent contractors that provide investment
banking, securities brokerage, mortgage brokerage, real estate brokerage, other financial services, due diligence services, underwriting
review services, legal and accounting services, and all other services (including transfer agent and registrar services) as may
be required relating to the Company’s operations and actual or potential Investments Investment Transactions or Financing
Transactions;


 


(vii) coordinating
and managing operations of any joint venture or co-investment interests held by the Company and conducting all matters with the
joint venture or co-investment partners;


 


(viii)providing
executive and administrative personnel, office space and office services required in rendering services to the Company;


 


(ix)administering
the day-to-day operations and performing and supervising the performance of such other administrative functions necessary to the
Company’s management as may be agreed upon by the Manager and the Board, including, without limitation, the collection of
revenues and the payment of the Company’s debts and obligations and maintenance of appropriate computer services to perform
such administrative functions;


 


(x)communicating
on the Company’s behalf with the holders of any of the Company’s equity or debt securities of BRG or the Operating
Partnership as required to satisfy the reporting and other requirements of any governmental bodies or agencies or trading markets
and to maintain effective relations with such holders;


 


(xi)counseling the
Board and the Company in connection with policy decisions to be made by the Board;


 


(xii)evaluating
and recommending to the Board hedging strategies and engaging in hedging activities on the Company’s behalf, consistent with
such strategies as so modified from time to time, BRG’s qualification as a REIT and with the Investment Guidelines;


 


(xiii)counseling
the Board and the Company regarding the maintenance of BRG’s qualification as a REIT and monitoring compliance with the various
REIT qualification tests and other rules set out in the Code and Treasury Regulations thereunder and using commercially reasonable
efforts to cause BRG to continue to qualify for taxation as a REIT;


 


(xiv)counseling
the Company regarding the maintenance of the Company’s exemption from the status of an investment company required to register
under the Investment Company Act, monitoring compliance with the requirements for maintaining such exemption and using commercially
reasonable efforts to cause the Company to maintain such exemption from such status;


 






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(xv)furnishing
reports and statistical and economic research to the Company regarding the Company’s activities and services performed for
the Company by the Manager, including reports to the Board with respect to potential conflicts of interest involving the Manager
or any of its Affiliates;


 


 (xvi)monitoring
the operating performance of the Company’s Investments and providing periodic reports with respect thereto to the Board,
including comparative information with respect to such operating performance and budgeted or projected operating results;


 


(xvii)investing
and reinvesting any moneys and securities of the Company (including investing in short-term investments pending investment in other
investments, payment of fees, costs and expenses, or payments of dividends or distributions to BRG’s stockholders and the
Operating Partnership’s partners) and advising the Company as to its capital structure and capital raising;


 


(xviii)causing the
Company to retain qualified accountants and legal counsel, as applicable, to assist in developing appropriate accounting procedures
and systems, internal controls and other compliance procedures and testing systems with respect to financial reporting obligations
and compliance with the provisions of the Code applicable to REITs and, if applicable, taxable REIT subsidiaries, and to conduct
quarterly compliance reviews with respect thereto;


 


(xix)assisting the Company
in qualifying to do business in all applicable jurisdictions and to obtain and maintain all appropriate licenses;


 


(xx)assisting the
Company in complying with all regulatory requirements applicable to the Company in respect of the Company’s business activities,
including preparing or causing to be prepared all financial statements required under applicable regulations and contractual undertakings
and all reports and documents, if any, required under the Exchange Act or the Securities Act, or by the applicable Securities Exchange;


 


(xxi)assisting the Company
in taking all necessary action to enable the Company to make required tax filings and reports, including soliciting stockholders
for required information to the extent required by the provisions of the Code applicable to REITs;


 


(xxii) handling
and resolving all claims, disputes or controversies (including all litigation, arbitration, settlement or other proceedings or
negotiations) in which the Company may be involved or to which the Company may be subject arising out of the Company’s day-to-day
operations (other than with the Manager or its Affiliates), subject to such limitations or parameters as may be imposed from time
to time by the Board;


 


(xxiii)using
commercially reasonable efforts to cause expenses incurred by the Company or on the Company’s behalf to be commercially reasonable
or commercially customary and within any budgeted parameters or expense guidelines set by the Board from time to time;


 


(xxiv)serving as
the Company’s consultant with respect to decisions regarding any of its financings, hedging activities, borrowings or joint
venture arrangements undertaken by the Company, including (1) assisting the Company in developing criteria for debt and equity
financing that is specifically tailored to its investment objectives, and (2) advising the Company with respect to obtaining appropriate
financing for its investments;


 


(xxv)arranging marketing
materials, advertising, industry group activities (such as conference participations and industry organization memberships) and
other promotional efforts designed to promote the Company’s business;


 






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(xxvi) performing
such other services as may be required from time to time for management and other activities relating to the Company’s assets
and business as the Board shall reasonably request or the Manager shall deem appropriate under the particular circumstances; and


 


(xxvii)using
commercially reasonable efforts to cause the Company to comply with all applicable laws.


 


(d) The
Manager may retain, for and on behalf, and at the sole cost and expense, of the Company, such services of the persons and firms
referred to in Section 7(b) hereof as the Manager deems necessary or advisable in connection with the management and operations
of the Company. In performing its duties under this Section 2, the Manager shall be entitled to rely reasonably on
qualified experts and professionals (including, without limitation, accountants, legal counsel and other professional service providers)
hired by the Manager at the Company’s sole cost and expense.


 


(e) The
Manager shall refrain from any action that, in its sole judgment made in good faith, (i) is not in compliance with the Investment
Guidelines, (ii) would adversely and materially affect the qualification of BRG as a REIT or the Operating Partnership as
a partnership under the Code or the Company’s status as an entity exempted or excluded from investment company status under
the Investment Company Act, or (iii) would conflict with or violate any law, rule or regulation of any governmental body or
agency having jurisdiction over the Company or of any exchange on which the securities of the Company may be listed or any applicable
Governing Instruments. If the Manager is ordered to take any action by the Board, the Manager shall promptly notify the Board if
it is the Manager’s judgment that such action would adversely and materially affect such status or conflict with or violate
any such law, rule or regulation or Governing Instruments. Notwithstanding the foregoing, neither the Manager nor any of its Affiliates
shall be liable to the Company, the Board, or the Company’s stockholders or partners, as applicable, for any act or omission
by the Manager or any of its Affiliates, except as provided in Section 8 of this Agreement.


 


(f) The
Manager shall notify the Board in advance of all proposed Investment Transactions before they are completed. The Manager shall
seek and obtain Board approval of any Investment Transaction that does not meet the Investment Guidelines. Subject to this Section
2(f), the Manager may execute without Board approval (but, in all cases, with advance notice to the Board) any Investment Transaction
that fits within the Investment Guidelines, if then permitted by the Investment Guidelines. If any proposed Investment Transaction
requires approval by the Independent Directors, the Manager will deliver to the Independent Directors all documents and other information
reasonably required by them to evaluate properly the proposed transaction. With respect to Investment Transactions for which Board
approval is not required but advance notice is required, the Manager shall provide to the Board a summary of its investment analysis
with respect to the proposed Investment Transaction. The Board may, at any time upon the giving of notice to the Manager, modify
or revoke the authority set forth in this Section 2(f); provided, however, that such modification or revocation shall
be effective upon receipt by the Manager and shall not be applicable to Investment Transactions to which the Manager has committed
the Company prior to the date of receipt by the Manager of such notification.


 


(g) The Company
(including the Board) agrees to take all actions reasonably required to permit and enable the Manager to carry out its duties and
obligations under this Agreement, including, without limitation, all steps reasonably necessary to allow the Manager to file any
registration statement or other filing required to be made under the Securities Act, Exchange Act, the applicable Securities Exchange’s
Listed Company Manual, the Code or other applicable law, rule or regulation on behalf of the Company in a timely manner. The Company
further agrees to use commercially reasonable efforts to make available to the Manager all resources, information and materials
reasonably requested by the Manager to enable the Manager to satisfy its obligations hereunder, including its obligations to deliver
financial statements and any other information or reports with respect to the Company.


 






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(h)As frequently
as the Manager may deem reasonably necessary or advisable, or at the direction of the Board, the Manager shall prepare, or, at
the sole cost and expense of the Company, cause to be prepared, any reports and other information relating to any proposed or consummated
Investment as may be reasonably requested by the Company.


 


(i)The Manager shall
prepare, or, at the sole cost and expense of the Company, cause to be prepared, all reports, financial or otherwise, with respect
to the Company reasonably required by the Board in order for the Company Entities to comply with their respective Governing Instruments
or as otherwise reasonably requested by the Board, or any other materials required to be filed with any governmental body or agency,
and shall prepare, or, at the sole cost and expense of the Company, cause to be prepared, all materials and data necessary to complete
such reports and other materials, including, without limitation, an annual audit of BRG’s consolidated financial statements
by a nationally recognized independent accounting firm.


 


(ii)The Manager
shall prepare, or, at the sole cost and expense to the Company, cause to be prepared, regular reports for the Board to enable the
Board to review the Company’s acquisitions, portfolio composition and characteristics, performance and compliance with the
Investment Guidelines and policies approved by the Board.


 


(i) Officers,
employees and agents of the Manager and its Affiliates may serve as directors, officers, agents, nominees or signatories for any
Company Entity, to the extent permitted by their respective Governing Instruments or by any resolutions duly adopted by the Board,
the Operating Partnership or such Company Entity. When executing documents or otherwise acting in such capacities for any Company
Entity, such Persons shall indicate in what capacity they are executing on behalf of such Company Entity. Without limiting the
foregoing, while this Agreement is in effect, the Manager will provide the Company with a management team, including a Chief Executive
Officer, President, Chief Accounting Officer, and Chief Operating Officer, along with appropriate support personnel, to provide
the management services to be provided by the Manager to the Company Entities hereunder, who shall devote such of their time to
the management of the Company as necessary and appropriate, commensurate with the level of activity of the Company from time to
time.


 


(j) The
Manager, at its sole cost and expense, shall at all times during the term of this Agreement maintain reasonable and customary “errors
and omissions” insurance coverage and other customary insurance coverage in respect to its obligations and activities under,
or pursuant to, this Agreement, naming BRG and the Operating Partnership as additional insureds.


 


(k) The
Manager, at its sole cost and expense, shall provide such third party internal audit, compliance and control services as may be
required for the Company to comply with applicable law (including the Securities Act and Exchange Act), regulation (including SEC
regulations) and the rules and requirements of the applicable Securities Exchange and as otherwise reasonably requested by the
Company or the Board from time to time.


 


(l) The
Manager acknowledges receipt of BRG’s Code of Business Conduct and Ethics and Policy on Insider Trading (the “Conduct
Policies”) and agrees to require any Persons who provide services to the Company to comply with such Conduct Policies
in the performance of such services hereunder or such comparable policies as shall in substance hold such Persons to at least the
standards of conduct set forth in the Conduct Policies.


 


(m) The Manager,
at its sole cost and expense, shall maintain any required registration of the Manager or any Affiliate with the SEC under the Investment
Advisers Act of 1940, as amended, or with any state securities authority in any state in which the Manager or its Affiliate is
required to be registered as an investment advisor under applicable state securities laws.


 


Section 3. Additional
Activities of the Manager; Non-Solicitation; Restrictions.


 






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(a) Except
as provided in the last sentence of this Section 3(a), the Investment Allocation Agreement and/or the Investment Guidelines,
nothing in this Agreement shall (i) prevent the Manager or any of its Affiliates, officers, directors or employees, from engaging
in other businesses or from rendering services of any kind to any other Person or entity, whether or not the investment objectives
or policies of any such other Person or entity are similar to those of the Company; provided,
however, that the Manager shall devote sufficient resources to the Company’s business to discharge its obligations to
the Company Entities under this Agreement; or (ii) in any way bind or restrict the Manager or any of its Affiliates, officers,
directors or employees from buying, selling or trading any securities or commodities for their own accounts or for the account
of others for whom the Manager or any of its Affiliates, officers, directors or employees may be acting. While information and
recommendations supplied to the Company shall, in the Manager’s reasonable and good faith judgment, be appropriate under
the circumstances and in light of the investment objectives and policies of the Company, they may be different from the information
and recommendations supplied by the Manager or any Affiliate of the Manager to others. The Company shall be entitled to equitable
treatment under the circumstances in receiving information, recommendations and any other services, but the Company recognizes
that it is not entitled to receive preferential treatment as compared with the treatment given by the Manager or any Affiliate
of the Manager to others. The Company shall have the benefit of the Manager’s best judgment and effort in rendering services
hereunder and, in furtherance of the foregoing, the Manager shall not undertake activities that, in its good faith judgment, will
adversely affect the performance of its obligations under this Agreement. 


 


(b) The Manager
shall report to the Board any condition or circumstance, existing or anticipated, of which it has knowledge, which creates or could
create a conflict of interest between the Manager’s obligations to the Company and its obligations to or its interest in
any other Person. If the Manager or any of its Affiliates sponsored any other investment program with similar investment objectives
to the Company that has investment funds available at the same time as the Company, the Manager shall inform the Board of the method
to be applied by the Manager in allocating investment opportunities among the Company and competing investment entities and shall
provide regular updates to the Board of the investment opportunities provided by the Manager to competing programs in order for
the Board (including the Independent Directors) to evaluate that the Manager is allocating such opportunities in accordance with
such method.


 


Section 4. Bank
Accounts.


 


At the direction of the
Board, the Manager may establish and maintain one or more bank accounts in the name of any Company Entity, and may collect and
deposit into any such account or accounts, and disburse funds from any such account or accounts, under such terms and conditions
as the Board may approve; and the Manager shall from time to time render appropriate accountings of such collections and payments
to the Board and, upon request, to the Company’s auditors.


 


Section 5. Records;
Confidentiality.


 


(a) The Manager
shall maintain appropriate books of accounts and records relating to services performed hereunder, and such books of account and
records shall be accessible for inspection by representatives of the Company Entities at any time during normal business hours.
The Manager shall keep confidential any and all non-public information, written or oral, obtained by it in connection with the
services rendered hereunder (“Confidential Information”) and shall not use Confidential Information except in
furtherance of its duties under this Agreement or disclose Confidential Information, in whole or in part, to any Person other than
(i) to its Affiliates, officers, directors, employees, agents, representatives or advisors who need to know such Confidential
Information for the purpose of rendering services hereunder, (ii) to appraisers, financing sources and others in the ordinary
course of the Company’s business ((i) and (ii) collectively, “Manager Permitted Disclosure Parties”),
(iii) in connection with any governmental or regulatory filings of the Company or filings with the NYSE or other applicable
Securities Exchange or market, or disclosure or presentations to Company investors (subject to compliance with Regulation FD),
(iv) to governmental officials having jurisdiction over the Company, (v) as requested by law or legal process to which
the Manager or any Person to whom disclosure is permitted hereunder is a party, or (vi) with the consent of the Company. The
Manager agrees to inform each of its Manager Permitted Disclosure Parties of the non-public nature of the Confidential Information
and to obtain agreement from such Persons to treat such Confidential Information in accordance with the terms hereof.


 






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(b) Nothing
herein shall prevent the Manager from disclosing Confidential Information (i) upon the order of any court or administrative
agency, (ii) upon the request or demand of, or pursuant to any law or regulation to, any regulatory agency or authority, (iii) to
the extent reasonably required in connection with the exercise of any remedy hereunder, or (iv) to its legal counsel or independent
auditors; provided, however that with respect to clauses (i) and (ii), it is agreed that, so long as not legally prohibited,
the Manager will provide the Company with prompt written notice of such order, request or demand so that the Company may seek,
at its sole expense, an appropriate protective order and/or waive the Manager’s compliance with the provisions of this Agreement.
If, failing the entry of a protective order or the receipt of a waiver hereunder, the Manager is required to disclose Confidential
Information, the Manager may disclose only that portion of such information that is legally required without liability hereunder;
provided, that the Manager agrees to exercise its reasonable best efforts to obtain reliable assurance that confidential
treatment will be accorded such information.


 


(c) Notwithstanding
anything herein to the contrary, each of the following shall be deemed to be excluded from the provisions of this Section 5: any
Confidential Information that (A) is available to the public from a source other than the Manager, (B) is released in
writing by the Company to the public (except to the extent exempt under Regulation FD) or to persons who are not under similar
obligation of confidentiality to the Company, or (C) is obtained by the Manager from a third party where such disclosure,
to the best of the Manager’s knowledge, does not constitute a breach by such third party of an obligation of confidence with
respect to the Confidential Information disclosed.


 


(d) The provisions
of this Agreement shall survive the expiration or earlier termination of this Agreement for a period of one (1) year; provided
that the parties will maintain trade secrets of the other party identified in writing as trade secrets, and which in fact constitute
trade secrets, for a period of no longer than five (5) years thereafter.


 


Section 6. Compensation.


 


(a)For the
services rendered under this Agreement, the Company shall pay the Base Management Fee and the Incentive Fee to the Manager. The
Manager will not receive any compensation for the period prior to the Closing Date other than expenses incurred and reimbursed
pursuant to Section 7 hereof.


 


(b)The parties
acknowledge that the Base Management Fee is intended to compensate the Manager for advisory services and certain general management
services rendered under this Agreement.


 


(c)The Base
Management Fee shall be payable in arrears in cash, in quarterly installments commencing with the quarter in which this Agreement
is executed. If applicable, the initial and final installments of the Base Management Fee shall be pro-rated based on the number
of days during the initial and final quarters, respectively, that this Agreement is in effect. The Base Management Fee shall be
calculated within 30 days after the end of each quarter and such calculation shall be promptly delivered to the Company. The Company
will be obligated to pay each quarterly installment of the Base Management Fee calculated for that quarter in cash within five
(5) Business Days after delivery to the Company of the written statement of the Manager setting forth the computation of the Base
Management Fee for such quarter.


 






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(d) The
Incentive Fee shall be payable in arrears, in quarterly installments commencing with the quarter in which this Agreement is executed.
The Manager shall compute each quarterly installment of the Incentive Fee within forty-five (45) days after the end of the
calendar quarter with respect to which such installment is payable. A copy of the computations made by the Manager to calculate
such installment shall thereafter promptly be delivered to the Board and, upon such delivery, payment of such installment of the
Incentive Fee shown therein shall be due and payable no later than the date which is five (5) Business Days after the date
of delivery to the Board of such computations.


 


(e) Each
quarterly installment of the Incentive Fee shall be allocated and payable as follows:


 


(i)fifty percent (50%)
of the Incentive Fee will be payable in LTIP Units; and


 


(ii)the remainder will
be payable in cash or in LTIP Units, at the election of the Board.


 


(f) The
number of LTIP Units payable as the Incentive Fee to be issued to the Manager will be equal to the dollar amount of the portion
of the quarterly installment of the Incentive Fee payable in such LTIP Units, divided by a value determined as follows:


 


(i)if the Class A Common
Stock is traded on a Securities Exchange, the value shall be deemed to be the average of the closing prices of the Class A Common
Stock on such exchange on the five (5) Business Days prior to the date on which the quarterly installment of the Incentive Fee
is paid;


 


(ii)if the Class A Common
Stock is not traded on a Securities Exchange but is actively traded over-the-counter, the value shall be deemed to be the average
of the closing bids or sales prices, as applicable, on the five (5) Business Days prior to the date on which the quarterly installment
of the Incentive Fee is paid; and


 


(iii)if the Class A
Common Stock is neither traded on a Securities Exchange nor actively traded over-the-counter, the value shall be the fair market
value thereof, as reasonably determined in good faith by the Board (including a majority of the Independent Directors) .


 


(g) If
at any time the Manager shall, in connection with a determination of the value of the Class A Common Stock made by the Board pursuant
to Section 6(f)(iii) hereof, (i) dispute such determination in good faith by more than five percent (5%), and
(ii) such dispute cannot be resolved between the Independent Directors and the Manager within ten (10) Business Days
after the Manager provides written notice to the Company of such dispute (the “Valuation Notice”), then the
matter shall be resolved by an independent appraiser of recognized standing selected jointly by the Independent Directors and the
Manager within not more than twenty (20) days after the Valuation Notice. In the event the Independent Directors and the Manager
cannot agree with respect to such selection within the aforesaid twenty (20) day time-frame, the Independent Directors shall
select one such independent appraiser and the Manager shall select one independent appraiser within five (5) Business Days after
the expiration of the twenty (20) day period, with one additional such appraiser (the “Last Appraiser”)
to be selected by the appraisers so designated within five (5) Business Days after their selection. Any valuation decision made
by the Last Appraiser shall be deemed final and binding upon the Board and the Manager and shall be delivered to the Manager and
the Board within not more than fifteen (15) days after the selection of the Last Appraiser. The expenses of the appraisal
shall be paid by the party with the estimate that deviated the furthest from the final valuation decision made by the independent
appraisers.


 


Section 7. Expenses
of the Company.


 


(a) Except
as otherwise set forth in Section 7(b)(iv) hereof with respect to the costs of legal services rendered for the Company by
providers retained by the Manager, which costs shall be the expense of the Company, the Manager shall be responsible for the expenses
related to any and all personnel of the Manager and its Affiliates who provide services to the Company Entities pursuant to this
Agreement (including, without limitation, each of the officers of the Company and any directors of BRG who are also directors,
officers, employees or agents of the Manager or any of its Affiliates), including, without limitation, salaries, bonus and other
wages, payroll taxes and the cost of employee benefit plans of such personnel, and costs of insurance with respect to such personnel.
For the avoidance of doubt, any Equity Incentive Plan of BRG or the Operating Partnership in which any person referred to above
participates shall be excluded from the operation of this Section 7(a).


 






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(b) The
Company shall pay (or cause to be paid) all of the costs and expenses of each Company Entity and shall reimburse the Manager or
its Affiliates for documented expenses of the Manager and its Affiliates incurred on behalf of any Company Entity that are reasonably
necessary for the performance by the Manager of its duties and functions hereunder, which may include the Company’s pro rata
portion of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses
of the Manager and its Affiliates required for the Company’s operations, provided, that such expenses are in amounts
no greater than those that would be payable to third-party professionals or consultants engaged to perform such services pursuant
to agreements negotiated on an arm’s-length basis, and excepting only those expenses that are specifically the responsibility
of the Manager pursuant to Section 7(a) of this Agreement. Without limiting the generality of the foregoing, it is specifically
agreed that the following costs and expenses of the Company Entities shall be paid by the Company and shall not be paid by the
Manager or Affiliates of the Manager:


 


(i)Acquisition Expenses
incurred in connection with the selection and acquisition of Investments;


 


(ii)general and administrative
expenses of the Company Entities;


 


(iii)expenses in connection
with the issuance of securities of the Company, any Financing Transaction and other costs incident to the acquisition, development,
redevelopment, construction, repositioning, leasing, disposition and financing of the Investments;


 


(iv)costs of legal,
tax, accounting, consulting, auditing and other similar services rendered for the Company by providers retained by the Manager
or, if provided by the Manager’s personnel, in amounts which are no greater than those which would be payable to outside
professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis;


 


(v)the compensation
and expenses of BRG’s directors and the cost of liability insurance to indemnify the Company and its directors and officers;


 


(vi)costs associated
with the establishment and maintenance of any of the Company’s credit facilities, other financing arrangements, or other
indebtedness of the Company (including commitment fees, accounting fees, legal fees, closing and other similar costs) or any of
BRG’s securities offerings;


 


(vii) expenses connected
with communications to holders of the securities of any Company Entity and other bookkeeping and clerical work necessary in maintaining
relations with holders of such securities and in complying with the continuous reporting and other requirements of governmental
bodies or agencies, including, without limitation, all costs of preparing and filing required reports with the SEC, the costs payable
by the Company to any transfer agent and registrar in connection with the listing and/or trading of BRG’s securities on any
exchange, the fees payable by the Company to any such exchange in connection with its listing, costs of preparing, printing and
mailing BRG’s annual report to its stockholders or the Operating Partnership’s partners, as applicable, and proxy materials
with respect to any meeting of BRG’s stockholders or the Operating Partnership’s partners, as applicable;


 


(viii) costs associated
with any computer software or hardware, electronic equipment or purchased information technology services from third-party vendors
that is used for the Company Entities;


 






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(ix) expenses incurred
by managers, officers, personnel and agents of the Manager for travel on the Company’s behalf and other out-of-pocket expenses
incurred by managers, officers, personnel and agents of the Manager in connection with the acquisition, development, redevelopment,
construction, repositioning, leasing, financing, refinancing, sale or other disposition of an Investment or establishment of any
of BRG’s securities offerings, or in connection with any Financing Transaction;


 


(x) costs and expenses
incurred with respect to market information systems and publications, research publications and materials, and settlement, clearing
and custodial fees and expenses;


 


(xi) compensation and
expenses of BRG’s custodian and transfer agent, if any;


 


(xii) the costs of maintaining
compliance with all federal, state and local rules and regulations or any other regulatory agency;


 


(xiii) all taxes
and license fees;


 


(xiv) all insurance
costs incurred in connection with the operation of the Company’s business except for the costs attributable to the insurance
that the Manager elects to carry for itself and its personnel;


 


(xv) costs and
expenses incurred in contracting with third parties;


 


(xvi) all other
costs and expenses relating to the Company’s business and investment operations, including, without limitation, the costs
and expenses of acquiring, owning, protecting, maintaining, developing and disposing of Investments, including appraisal, reporting,
audit and legal fees;


 


(xvii) expenses
relating to any office(s) or office facilities, including, but not limited to, disaster backup recovery sites and facilities, maintained
for any Company Entity or their Investments separate from the office or offices of the Manager;


 


(xviii) expenses
connected with the payments of interest, dividends or distributions in cash or any other form authorized or caused to be made by
the Board to or on account of holders of the securities of any Company Entity, including, without limitation, in connection with
any dividend reinvestment plan;


 


(xix) any judgment or
settlement of pending or threatened proceedings (whether civil, criminal or otherwise) against any Company Entity, or against any
trustee, director, partner, member or officer of such Company Entity in his capacity as such for which any Company Entity is required
to indemnify such trustee, director, partner, member or officer pursuant to the applicable Governing Instruments or any agreement
or other instrument or by any court or governmental agency; and


 


  (xx)all
other expenses actually incurred by the Manager (except as otherwise specified herein) that are reasonably necessary for the performance
by the Manager of its duties and functions under this Agreement.


 


(c) Costs
and expenses incurred by the Manager on behalf of the Company shall be reimbursed monthly to the Manager. The Manager shall prepare
a written statement in reasonable detail documenting the costs and expenses of the Company and those incurred by the Manager on
behalf of the Company during each month, and shall deliver such written statement to the Company within thirty (30) days after
the end of each month. The Company shall pay all amounts payable to the Manager pursuant to this Section 7(c) within five
(5) Business Days after the receipt of the written statement without demand, deduction, offset or delay. Cost and expense
reimbursement to the Manager shall be subject to adjustment at the end of each calendar year in connection with the annual audit
of the Company. The provisions of this Section 7 shall survive the expiration or earlier termination of this Agreement
to the extent such expenses have previously been incurred or are incurred in connection with such expiration or termination.


 






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Section 8. Limits
of the Manager’s Responsibility.


 


(a) The
Manager assumes no responsibility under this Agreement other than to render the services called for hereunder in good faith and
shall not be responsible for any action of the Board in following or declining to follow any advice or recommendations of the Manager,
including as set forth in the Investment Guidelines. The Manager, its officers, members, managers, directors, personnel, Affiliates,
and any Person providing sub-advisory services to the Manager (each, a “Manager Indemnified Party”), will not
be liable to any Company Entity or any of the stockholders, partners, members or other holders of equity interests of any Company
Entity for any acts or omissions by any Manager Indemnified Party performed in accordance with and pursuant to this Agreement,
except by reason of any act or omission on the part of such Manager Indemnified Party constituting bad faith, willful misconduct,
gross negligence or reckless disregard of their duties under the Management Agreement as determined by a final, non-appealable
order of a court of competent jurisdiction.


 


(b)The Company
shall, to the full extent lawful, reimburse, indemnify and hold harmless each Manager Indemnified Party, of and from any and all
expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’
fees) (collectively, “Losses”) in respect of or arising from any acts or omissions of such Manager Indemnified
Party performed in good faith under this Agreement and not constituting bad faith, willful misconduct, gross negligence or reckless
disregard of duties of such Manager Indemnified Party under this Agreement as determined by a final, non-appealable order of a
court of competent jurisdiction. In addition, the Company shall advance funds to a Manager Indemnified Party for legal fees and
other costs and expenses incurred as a result of any claim, suit, action or proceeding for which indemnification is being sought
pursuant to the terms of this Agreement, provided, that such Manager Indemnified Party undertakes to repay the advanced
funds to the Company, together with the applicable legal rate of interest thereon, if it shall ultimately be determined that such
Manager Indemnified Party is not entitled to be indemnified by the Company as provided herein in connection with such claim, suit,
action or proceeding.


 


(c) The
Manager shall, to the full extent lawful, reimburse, indemnify and hold harmless the Company, its directors and officers, personnel,
agents and Affiliates (each, a “Company Indemnified Party,” and collectively with a Manager Indemnified Party,
each an “Indemnified Party”) of and from any and all Losses in respect of or arising from (i) any acts
or omissions of the Manager constituting bad faith, willful misconduct, gross negligence or reckless disregard of the duties of
the Manager under this Agreement, or (ii) any claims by the Manager’s personnel relating to the terms and conditions
of their employment by the Manager.


 


(d)In case
any such claim, suit, action or proceeding (a “Claim”) is brought against any Indemnified Party in respect of
which indemnification may be sought by such Indemnified Party pursuant hereto, the Indemnified Party shall give prompt written
notice thereof to the indemnifying party, which notice shall include all documents and information in the possession of or under
the control of such Indemnified Party reasonably necessary for the evaluation and/or defense of such Claim and shall specifically
state that indemnification for such Claim is being sought under this Section 8; provided, however, that the failure
of the Indemnified Party to so notify the indemnifying party shall not limit or affect such Indemnified Party’s rights other
than pursuant to this Section 8. Upon receipt of such notice of Claim (together with such documents and information from
such Indemnified Party), the indemnifying party shall, at its sole cost and expense, in good faith defend any such Claim with counsel
reasonably satisfactory to such Indemnified Party, which counsel may, without limiting the rights of such Indemnified Party pursuant
to the next sentence of this Section 8(c), also represent the indemnifying party in such investigation, action or proceeding.
In the alternative, such Indemnified Party may elect to conduct the defense of the Claim, if (i) such Indemnified Party reasonably
determines that the conduct of its defense by the indemnifying party could be materially prejudicial to its interests, (ii) the
indemnifying party refuses to assume such defense (or fails to give written notice to the Indemnified Party within ten (10) days
of receipt of a notice of Claim that the indemnifying party assumes such defense), or (iii) the indemnifying party shall have
failed, in such Indemnified Party’s reasonable judgment, to defend the Claim in good faith. The indemnifying party may settle
any Claim against such Indemnified Party without such Indemnified Party’s consent, provided (i) such settlement is without
any Losses whatsoever to such Indemnified Party, (ii) the settlement does not include or require any admission of liability
or culpability by such Indemnified Party and (iii) the indemnifying party obtains an effective written release of liability
for such Indemnified Party from the party to the Claim with whom such settlement is being made, which release must be reasonably
acceptable to such Indemnified Party, and a dismissal with prejudice with respect to all claims made by the party against such
Indemnified Party in connection with such Claim. The applicable Indemnified Party shall reasonably cooperate with the indemnifying
party, at the indemnifying party’s sole cost and expense, in connection with the defense or settlement of any Claim in accordance
with the terms hereof. If such Indemnified Party is entitled pursuant to this Section 8 to elect to defend such Claim by
counsel of its own choosing and so elects, then the indemnifying party shall be responsible for any good faith settlement of such
Claim entered into by such Indemnified Party. Except as provided in the immediately preceding sentence, no Indemnified Party may
pay or settle any Claim and seek reimbursement therefor under this Section 8.


 






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(e)Any Indemnified
Party entitled to indemnification hereunder shall seek recovery under any insurance policies by which such Indemnified Party is
covered and any Indemnified Party shall obtain the written consent of the indemnifying party prior to entering into any compromise
or settlement which would result in an obligation of such indemnifying party to indemnify such Indemnified Party; provided, however,
that the possibility of recovery under any such insurance policies shall not preclude an Indemnified Party from seeking indemnification
pursuant to this Agreement. If such Indemnified Party shall actually recover any amounts under any applicable insurance
policies, it shall offset the net proceeds so received against any amounts owed by the indemnifying party by reason of the indemnity
provided hereunder or, if all such amounts shall have been paid by the indemnifying party in full prior to the actual receipt of
such net insurance proceeds, it shall pay over such proceeds (up to the amount of indemnification paid by the indemnifying party
to such Indemnified Party) to the indemnifying party. If the amounts in respect of which indemnification is sought arise out of
the conduct of the business and affairs of the Company or any Subsidiary and also of any other Person or entity for which the Indemnified
Party hereunder was then acting in a similar capacity, the amount of the indemnification to be provided by the Company may be limited
to the Company Parties’ proportionate share thereof if so determined by the Company in good faith.


 


(f) The
provisions of this Section 8 shall survive the expiration or earlier termination of this Agreement.


 


Section 9. No Joint
Venture.


 


The parties to this Agreement
are not partners or joint venturers with each other and nothing herein shall be construed to make them such partners or joint venturers
or impose any liability as such on any of them.


 


Section 10. Term;
Renewal; Termination Without Cause; Internalization.


 


(a) This
Agreement shall become effective on the Closing Date and shall continue in operation, unless terminated in accordance with the
terms hereof, until the third anniversary of the Closing Date (the “Initial Term”). After the Initial Term,
this Agreement shall be deemed renewed automatically each year for an additional one-year period (an “Automatic Renewal
Term”) unless the Company or the Manager elects not to renew this Agreement in accordance with Section 10(b) or
Section 10(d), respectively.


 


(b)Notwithstanding
any other provision of this Agreement to the contrary, upon the expiration of the Initial Term or any Automatic Renewal Term and
upon 180 days’ prior written notice to the Manager (the “Termination Notice”), the Company may, without
cause, in connection with the expiration of the Initial Term or the then current Automatic Renewal Term, decline to renew this
Agreement (any such nonrenewal, a “Termination Without Cause”) upon the affirmative vote of at least two-thirds
of the Independent Directors that (1) there has been unsatisfactory performance by the Manager that is materially detrimental
to the Company Entities taken as a whole or (2) the Base Management Fee and Incentive Fee under this Agreement payable to
the Manager are not, taken as a whole, in accordance with then-current market rates charged by asset management companies rendering
services similar to those rendered by the Manager (“Above-Market Rates”), subject to Section 10(c) and
only after reasonable investigation by the Independent Directors as to the market rates charged by similarly situated managers.
In the event of a Termination Without Cause, the Company shall pay the Manager the Termination Fee before or on the last day of
the Initial Term or such Automatic Renewal Term, as the case may be (the “Effective Termination Date”). The
Company may terminate this Agreement for cause pursuant to Section 11 hereof even after a Termination Notice and, in
such case, no Termination Fee shall be payable.


 






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(c) Notwithstanding
the provisions of subsection (b) above, if the reason for nonrenewal specified in the Company’s Termination Notice is
that two-thirds of the Independent Directors have determined that the Base Management Fee or the Incentive Fee payable to the Manager
are, taken as a whole, at Above-Market Rates, the Company shall not have the foregoing nonrenewal right in the event the Manager
agrees that it will continue to perform its duties hereunder during the Automatic Renewal Term that would commence upon the expiration
of the Initial Term or then current Automatic Renewal Term at rates that at least two-thirds of the Independent Directors determine
to be at or below market rates, taken as a whole; provided, however, the Manager shall have the right to renegotiate the
Base Management Fee and/or the Incentive Fee, by delivering to the Company, not less than 120 days prior to the pending Effective
Termination Date, written notice (a “Notice of Proposal to Negotiate”) of its intention to renegotiate the Base
Management Fee and/or the Incentive Fee. Thereupon, the Company and the Manager shall endeavor to negotiate the Base Management
Fee and/or the Incentive Fee in good faith. Provided that the Company and the Manager agree to a revised Base Management Fee, Incentive
Fee or other compensation structure within sixty (60) days following the Company’s receipt of the Notice of Proposal
to Negotiate, the Termination Notice from the Company shall be deemed of no force and effect, and this Agreement shall continue
in full force and effect on the terms stated herein, except that the Base Management Fee, the Incentive Fee or other compensation
structure shall be the revised Base Management Fee, Incentive Fee or other compensation structure effective as of the date as then
agreed upon by the Company and the Manager. The Company and the Manager agree to execute and deliver an amendment to this Agreement
setting forth such revised Base Management Fee, Incentive Fee, or other compensation structure promptly upon reaching an agreement
regarding same. In the event that the Company and the Manager are unable to agree to a revised Base Management Fee, Incentive Fee,
or other compensation structure during such sixty (60) day period, this Agreement shall terminate on the Effective Termination
Date and the Company shall be obligated to pay the Manager the Termination Fee upon the Effective Termination Date as a condition
of such termination action being effective.


 


(d) No
later than 180 days prior to the expiration of the Initial Term or the then current Automatic Renewal Term, the Manager may
deliver written notice to the Company informing it of the Manager’s intention to decline to renew this Agreement, whereupon
this Agreement shall not be renewed and extended and this Agreement shall terminate effective on the anniversary date of this Agreement
next following the delivery of such notice. The Company is not required to pay to the Manager the Termination Fee if the Manager
terminates this Agreement pursuant to this Section 10(d).


 


(e) Except
as set forth in this Section 10, a nonrenewal of this Agreement pursuant to this Section 10 shall be without any
further liability or obligation of either party to the other, except as provided in Section 5, Section 7,
Section 8 and Section 14 of this Agreement.


 






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(f)(i) Notwithstanding
any other provision of this Agreement, at the earlier of (1) the date of the end of the Initial Term and (2) the date on and after
which the total of (a) BRG’s Existing and Contributed Stockholders’ Equity, and (b) BRG’s New Stockholders’
Equity, exceeds $250,000,000, and continuing thereafter, the Company may terminate this Agreement upon 30 days’
prior written notice, provided that, two-thirds of the Independent Directors have determined in good faith to pursue an
internalization of the management functions of the Company provided by the Manager. To the extent the Company elects to terminate
this Agreement pursuant to this Section 10(f)(i), the Company shall pay the Termination Fee to the Manager within thirty
(30) days of the effective date of such termination, subject to clause (ii) hereof.


 


(ii)If the Company
elects to terminate this Agreement pursuant to Section 10(f)(i), then either the Manager or the Company may further elect
to structure such internalization as an acquisition of all of the membership interests in the Manager for which the acquisition
consideration shall be equal to the amount of the Termination Fee (and no separate Termination Fee would be paid), which may include
a contribution of the Manager’s assets in exchange for units of limited partnership interest in the Operating Partnership
or other tax-efficient transaction. To the extent of an election under this Section 10(f)(ii), the parties shall negotiate
in good faith to prepare an acquisition agreement and related documents containing customary, standard and commercially reasonable
representations, warranties, covenants and indemnities. The consummation of an acquisition of the Manager pursuant to Section
10(f)(ii) shall be subject to the prior approval of (1) a majority of the Independent Directors, and (2) the Company’s
stockholders as required under Maryland law or the rules of the applicable Securities Exchange.


 


Section 11. Termination
for Cause.


 


(a) The
Company may terminate this Agreement effective upon 30 days’ prior written notice of termination from the Company to
the Manager (a “Cause Termination Notice”), without payment of any Termination Fee, if (i)  the Manager,
its agents or assignees breaches any material provision of this Agreement and such breach shall continue for a period of 30 days
after written notice thereof specifying such breach and requesting that the same be remedied in such 30-day period (or 45 days
after written notice of such breach if the Manager takes steps to cure such breach within 30 days of the written notice),
(ii) there is a commencement of any proceeding relating to the Manager’s Bankruptcy or insolvency, including an order
for relief in an involuntary bankruptcy case or the Manager authorizing or filing a voluntary bankruptcy petition, (iii) any
Manager Change of Control which a majority of the Independent Directors determines is materially detrimental to the Company Entities
taken as a whole, (iv) the Manager is unable to perform its obligations under this Agreement; (v) the dissolution of the Manager,
or (vi) the Manager commits fraud against the Company, misappropriates or embezzles funds of the Company, or acts, or fails
to act, in a manner constituting gross negligence, or acts in a manner constituting bad faith or willful misconduct, in the performance
of its duties under this Agreement; provided, however, that if any of the actions or omissions described in this clause
(vi) are caused by an employee and/or officer of the Manager or one of its Affiliates and the Manager takes all necessary
and appropriate action against such person and cures the damage caused by such actions or omissions within 30 days of the
Manager actual knowledge of its commission or omission, the Company shall not have the right to terminate this Agreement pursuant
to this Section 11(a)(vi) and any Cause Termination Notice previously given in reliance on this clause (vi)
automatically shall be deemed to have been rescinded and nugatory.


 


(b) The
Manager may terminate this Agreement effective upon 60 days’ prior written notice of termination to the Company in the
event that the Company shall default in the performance of any material term, condition or covenant contained in this Agreement
and such default shall continue for a period of 30 days after written notice thereof specifying such default and requesting
that the same be remedied in such 30-day period. The Company is required to pay to the Manager the Termination Fee if the termination
of this Agreement is made pursuant to this Section 11(b).


 


(c) The
Manager may terminate this Agreement if the Company becomes required to register as an investment company under the Investment
Company Act, with such termination deemed to occur immediately before such event, in which case the Company shall not be required
to pay the Termination Fee.


 






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Section 12. Action
Upon Termination.


 


From and after the effective
date of termination of this Agreement pursuant to Sections 10 or 11 of this Agreement, the Manager shall not be entitled
to compensation for further services hereunder, but shall be paid all compensation accruing to the date of termination and, if
(x) terminated pursuant to Section 11(b) hereof or (y) not renewed pursuant to (i) Section 10(b) hereof (subject
to Section 10(c) hereof) or (ii) Section 10(f) (subject to Section 10(f)(ii) hereof), the Termination Fee.
Upon any such termination, the Manager shall forthwith:


 


(a) after
deducting any accrued compensation and reimbursement for its expenses that have been submitted to the Company prior to the effective
date of termination, pay over to each Company Entity all money collected and held for the account of such Company Entity pursuant
to this Agreement;


 


(b) deliver
to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by
it, covering the period following the date of the last accounting furnished to the Board with respect to the Company Entities;


 


(c) deliver
to the Board all property and documents of the Company Entities then in the custody of the Manager; and


 


(d) cooperate
with the Company Entities to provide an orderly management transition, including, but not limited to, the transition to a new manager
of control of the assets of the Company Entities.


 


Section 13. Assignments.


 


(a) Assignments
by the Manager. This Agreement shall terminate automatically without payment of the Termination Fee in the event of its assignment,
in whole or in part, by the Manager, unless such assignment is consented to in writing by BRG with the consent of a majority of
the Independent Directors and the Operating Partnership. Any such permitted assignment shall bind the assignee under this Agreement
in the same manner as the Manager is bound, and the Manager shall be liable to the Company for all acts or omissions of the assignee
under any such assignment. In addition, the assignee shall execute and deliver to the Company a counterpart of this Agreement naming
such assignee as the Manager. Notwithstanding the foregoing, the Manager may, without the approval of the Company’s Independent
Directors, (i) assign this Agreement to an Affiliate of the Manager, conditioned on such Affiliate becoming a party to, or
becoming subject to the rights and obligations of, the Investment Allocation Agreement, and (ii) delegate to one or more of
its Affiliates the performance of any of its responsibilities hereunder so long as it remains liable for any such Affiliate’s
performance. Nothing contained in this Agreement shall preclude any pledge, hypothecation or other transfer of any amounts payable
to the Manager under this Agreement.


 


(b) Assignments
by the Company. This Agreement shall not be assigned by the Company without the prior written consent of the Manager, except
in the case of assignment by the Company to another REIT or other organization which is a successor (by merger, consolidation,
purchase of assets, or other transaction) to the Company, in which case such successor organization shall be bound under this Agreement
and by the terms of such assignment in the same manner as the Company is bound under this Agreement.


 


Section 14. Release
of Money or Other Property Upon Written Request.


 


The Manager agrees that
any money or other property of the Company Entities held by the Manager shall be held by the Manager as custodian for the Company,
and the Manager’s records shall be appropriately and clearly marked to reflect the ownership of such money or other property
by the Company. Upon the receipt by the Manager of a written request signed by a duly authorized officer of the Company requesting
the Manager to release to the Company any money or other property then held by the Manager for the account of the Company under
this Agreement, then subject to the Manager’s right to offset pursuant to Section 12(a) hereof, the Manager shall release
such money or other property to the Company within a reasonable period of time, but in no event later than 60 days following
such request. Upon delivery of such money or other property to the Company, the Manager shall not be liable to the Company, the
Board, BRG’s stockholders or Operating Partnership’s partners or any of the directors or equity holders of any subsidiary
of the Company for any acts or omissions by the Company in connection with the money or other property released to the Company
in accordance with this Section 14. The Company shall indemnify the Manager Indemnified Parties against any and all Losses
which arise in connection with the Manager’s proper release of such money or other property to the Company in accordance
with the terms of this Section 14. Indemnification pursuant to this provision shall be in addition to any right of
the Manager Indemnified Parties to indemnification under Section 8 of this Agreement.


 






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Section 15. Representations
and Warranties.


 


(a) BRG
hereby represents and warrants to the Manager as follows:


 


(i) BRG is duly organized,
validly existing and in good standing under the laws of the State of Maryland, has the corporate power and authority and the legal
right to own and operate its assets, to lease any property it may operate as lessee and to conduct the business in which it is
now engaged and is duly qualified as a foreign corporation and in good standing under the laws of each jurisdiction where its ownership
or lease of property or the conduct of its business requires such qualification, except for failures to be so qualified, authorized
or licensed that could not in the aggregate have a material adverse effect on the business operations, assets or financial condition
of the Company Entities, taken as a whole.


 


(ii)BRG has the corporate
power and authority and the legal right to make, deliver and perform this Agreement and all obligations required hereunder and
has taken all necessary corporate action to authorize this Agreement on the terms and conditions hereof and the execution, delivery
and performance of this Agreement and all obligations required hereunder. No consent of any other Person, including stockholders
and creditors of BRG, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration,
filing or declaration with, any governmental authority is required by BRG in connection with this Agreement or the execution, delivery,
performance, validity or enforceability of this Agreement and all obligations required hereunder. This Agreement has been, and
each instrument or document required hereunder will be, executed and delivered by a duly authorized officer of BRG, and this Agreement
constitutes, and each instrument or document required hereunder when executed and delivered hereunder will constitute, the legally
valid and binding obligation of BRG enforceable against BRG in accordance with its terms.


 


(iii)The execution,
delivery and performance of this Agreement and the documents or instruments required hereunder will not violate any provision of
any existing law or regulation binding on BRG, or any order, judgment, award or decree of any court, arbitrator or governmental
authority binding on BRG, or the Governing Instruments of, or any securities issued by BRG or of any mortgage, indenture, lease,
contract or other agreement, instrument or undertaking to which BRG is a party or by which BRG or any of its assets may be bound,
the violation of which would have a material adverse effect on the business operations, assets or financial condition of the Company
Entities, taken as a whole, and will not result in, or require, the creation or imposition of any lien or any of its property,
assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or
undertaking.


 


(b)  The
Operating Partnership hereby represents and warrants to the Manager as follows:


 






    	22



    	 



    

 


(i)The Operating Partnership
is duly organized, validly existing and in good standing under the laws of the State of Delaware, has the limited partnership power
and authority and the legal right to own and operate its assets, to lease any property it may operate as lessee and to conduct
the business in which it is now engaged and is duly qualified as a foreign limited partnership and in good standing under the laws
of each jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, except
for failures to be so qualified, authorized or licensed that could not in the aggregate have a material adverse effect on the business
operations, assets or financial condition of the Company Entities, taken as a whole.


 


(ii)The Operating Partnership
has the limited partnership power and authority and the legal right to make, deliver and perform this Agreement and all obligations
required hereunder and has taken all necessary limited partnership action to authorize this Agreement on the terms and conditions
hereof and the execution, delivery and performance of this Agreement and all obligations required hereunder. No consent of any
other Person, including partners and creditors of the Operating Partnership, and no license, permit, approval or authorization
of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required by the
Operating Partnership in connection with this Agreement or the execution, delivery, performance, validity or enforceability of
this Agreement and all obligations required hereunder. This Agreement has been, and each instrument or document required hereunder
will be, executed and delivered by a duly authorized officer of the Operating Partnership, and this Agreement constitutes, and
each instrument or document required hereunder when executed and delivered hereunder will constitute, the legally valid and binding
obligation of the Operating Partnership enforceable against the Operating Partnership in accordance with its terms.


 


(iii)The execution,
delivery and performance of this Agreement and the documents or instruments required hereunder will not violate any provision of
any existing law or regulation binding on the Operating Partnership, or any order, judgment, award or decree of any court, arbitrator
or governmental authority binding on the Operating Partnership, or the Governing Instruments of, or any securities issued by the
Operating Partnership or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the
Operating Partnership is a party or by which the Operating Partnership or any of its assets may be bound, the violation of which
would have a material adverse effect on the business operations, assets or financial condition of the Company Entities, taken as
a whole, and will not result in, or require, the creation or imposition of any lien or any of its property, assets or revenues
pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking.


 


(c) The Manager
hereby represents and warrants to the Company as follows:


 


(i)The Manager is duly
organized, validly existing and in good standing under the laws of the State of Delaware, has the limited liability company power
and authority and the legal right to own and operate its assets, to lease the property it operates as lessee and to conduct the
business in which it is now engaged and is duly qualified as a foreign corporation and in good standing under the laws of each
jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, except for failures
to be so qualified, authorized or licensed that could not in the aggregate have a material adverse effect on the business operations,
assets or financial condition of the Manager.


 


(ii)The Manager has
the limited liability company power and authority and the legal right to make, deliver and perform this Agreement and all obligations
required hereunder and has taken all necessary limited liability company action to authorize this Agreement on the terms and conditions
hereof and the execution, delivery and performance of this Agreement and all obligations required hereunder. No consent of any
other Person, including members and creditors of the Manager, and no license, permit, approval or authorization of, exemption by,
notice or report to, or registration, filing or declaration with, any governmental authority is required by the Manager in connection
with this Agreement or the execution, delivery, performance, validity or enforceability of this Agreement and all obligations required
hereunder. This Agreement has been, and each instrument or document required hereunder will be, executed and delivered by a duly
authorized officer of the Manager, and this Agreement constitutes, and each instrument or document required hereunder when executed
and delivered hereunder will constitute, the legally valid and binding obligation of the Manager enforceable against the Manager
in accordance with its terms.


 






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(iii)The execution,
delivery and performance of this Agreement and the documents or instruments required hereunder will not violate any provision of
any existing law or regulation binding on the Manager, or any order, judgment, award or decree of any court, arbitrator or governmental
authority binding on the Manager, or the Governing Instruments of, or any securities issued by the Manager or of any mortgage,
indenture, lease, contract or other agreement, instrument or undertaking to which the Manager is a party or by which the Manager
or any of its assets may be bound, the violation of which would have a material adverse effect on the business operations, assets
or financial condition of the Manager, and will not result in, or require, the creation or imposition of any lien or any of its
property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument
or undertaking.


 


Section 16. Miscellaneous.


 


(a)Notices.
All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy),
and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered against receipt
or upon actual receipt of (i) personal delivery, (ii) delivery by reputable overnight courier, (iii) delivery by facsimile
transmission with telephonic confirmation or (iv) delivery by registered or certified mail, postage prepaid, return receipt
requested, addressed as set forth below (or to such other address as may be hereafter notified by the respective parties hereto
in accordance with this Section 16):


	
        

         

         

         

        BRG:
	 	
         

         

         

         

        Bluerock Residential Growth
        REIT, Inc.

	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, New York 10019
	 	 	Attention: R. Ramin Kamfar
	 	 	Fax: (646) 278-4220
	 	 	 
	with a copy to: 	 	Kaplan Voekler Cunningham & Frank, PLC
	 	 	1401 E. Cary Street
	 	 	Richmond, Virginia 23219
	 	 	Attention: Richard P. Cunningham, Jr., Esq.
	 	 	Fax: (804) 823-4099
	 	 	 
	The
Operating Partnership: 	 	Bluerock Residential Holdings, LP
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, New York 10019
	 	 	Attention: R. Ramin Kamfar
	 	 	Fax: (646) 278-4220
	 	 	 
	with
a copy to: 	 	Kaplan Voekler Cunningham & Frank, PLC
	 	 	1401 E. Cary Street
	 	 	Richmond, Virginia 23219
	 	 	Attention: Richard P. Cunningham, Jr., Esq.
	 	 	Fax: (804) 823-4099
	 	 	 
	The
Manager: 	 	BRG Manager, LLC
	 	 	712 Fifth Avenue, 9th Floor
	 	 	New York, New York 10019
	 	 	Attention: Jordan Ruddy and Michael L. Konig, Esq.
	 	 	Fax: (646) 278-4220
	 	 	 


 






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(b) Binding
Nature of Agreement; Successors and Assigns; No Third Party Beneficiaries. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns as provided herein.
Except as provided in this Agreement with respect to indemnification of Indemnified Parties hereunder, nothing in this Agreement
shall confer any rights upon any Person other than the parties hereto and their respective heirs, legal representatives, successors
and permitted assigns.


 


(c) Integration.
This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof,
and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any
course of performance and/or usage of the trade inconsistent with any of the terms hereof.


 


(d) Amendments.
This Agreement, nor any terms hereof, may not be amended, supplemented or modified except in an instrument in writing executed
by the parties hereto.


 


(e) GOVERNING
LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE
PARTIES HERETO IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT
COURT FOR ANY DISTRICT WITHIN SUCH STATE FOR THE PURPOSE OF ANY ACTION OR JUDGMENT RELATING TO OR ARISING OUT OF THIS AGREEMENT
OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY, IRREVOCABLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUCH ACTION OR JUDGMENT
IN SUCH COURTS, AND IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT OR PROCEEDING IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.


 


(f) WAIVER
OF JURY TRIAL. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO
INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY
OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.


 


(g) Survival
of Representations and Warranties. All representations and warranties made hereunder, and in any document, certificate or statement
delivered pursuant hereto or in connection herewith, shall survive the execution and delivery of this Agreement.


 


(h) No
Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of a party hereto, any right, remedy,
power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.


 






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(i) Costs
and Expenses. Each party hereto shall bear its own costs and expenses (including the fees and disbursements of counsel and
accountants) incurred in connection with the negotiations and preparation of and the closing under this Agreement, and all matter
incident thereto.


 


(j)Section Headings.
The section and subsection headings in this Agreement are for convenience in reference only and shall not be deemed to alter or
affect the interpretation of any provisions hereof.


 


(k) Counterparts.
This Agreement may be executed by the parties to this Agreement on any number of separate counterparts (including by telecopy),
and all of said counterparts taken together shall be deemed to constitute one and the same instrument.


 


(l) Severability.
Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.


 


[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]


 




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IN WITNESS WHEREOF, each
of the parties hereto has executed this Management Agreement as of the date first written above.


 





	 	Bluerock Residential Growth REIT, Inc.



 
	 	By:  	/s/
Christopher J. Vohs
	 	 	Name:  	Christopher J. Vohs 
	 	 	Title:  	Treasurer and Chief Accounting Officer 







 





	 	Bluerock Residential Holdings, L.P.



 
	 	By:  	
        Bluerock Residential Growth
        REIT, Inc., 

its General Partner

         

         

        By: /s/ Christopher J.
        Vohs

	 	 	Name:  	Christopher J. Vohs 
	 	 	Title:  	Treasurer and Chief Accounting Officer 







 





	 	BRG Manager, LLC



 
	 	By:  	
        Bluerock Real Estate, L.L.C.,
        its 

Manager

         

         

        By: /s/ Jordan B. Ruddy

	 	 	Name:  	Jordan B. Ruddy 
	 	 	Title:  	Authorized Signatory 







 


 


 


			



 




    	27



    	 



    

  


Exhibit A


 


Investment Guidelines


 


 


 


1. No investment
shall be made that would cause BRG to fail to qualify as a REIT under the Code.


 


2. No investment
shall be made that would cause BRG or the Operating Partnership to be regulated as an investment company under the Investment Company
Act.


 


3. The Company’s
investments shall be in the Target Assets.


 


4.   Until appropriate
investments in the Target Assets are identified, the Manager may invest the proceeds of the Public Offering and any future offerings
of BRG’s or the Operating Partnership’s securities for cash in interest-bearing, short-term investment-grade investments,
subject to the requirements for BRG’s qualification as a REIT under the Code.


 


5. The Manager shall have
the authority to approve any Investment Transaction involving an Investment less than five percent (5%) of the Company’s
current total assets at the time of the Manager’s consideration (but exclusive of such project).


 


6.  The approval
of the Investment Committee shall be required for any Investment Transaction involving an Investment equal to or in excess of five
percent (5%) and up to ten percent (10%)  of the Company’s current total assets at the time of the Investment Committee’s
consideration (but exclusive of such project).


 


7. The approval of the
full Board shall be required for any Investment Transaction involving an Investment equal to or in excess of ten percent (10%)
of the Company’s current total assets at the time of the Board’s consideration (but exclusive of such project).


 


These Investment Guidelines
may be amended, restated, modified, supplemented or waived by the Board (which must include a majority of the Independent Directors)
without the approval of BRG’s stockholders.


 


 


 



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