Document:

Exhibit
10.1

 

STOCKHOLDERS
AGREEMENT

 

This STOCKHOLDERS
AGREEMENT is entered into as of January 16, 2014, by and among Trade Street Residential, Inc., a Maryland corporation (the
“Company”) and the investment entities managed or advised by Senator Investment Group, LP, a Delaware limited
partnership (the “Adviser”), as set forth on the signature pages hereto (each, an “Investor,” and
collectively, the “Investors”).

 

WHEREAS, the
Investors and the Company have entered into that certain Standby Purchase Agreement, dated as of November 12, 2013 (as it
may be amended, restated, or otherwise modified from time to time, and together with all exhibits, schedules, and other attachments
thereto, the “Standby Purchase Agreement”), pursuant to, and subject to the terms and conditions of which,
the Investors wish to subscribe for and the Company desires to issue and sell, shares of the Company’s Common Stock on the
terms and subject to the conditions set forth therein;

 

WHEREAS, upon
the consummation of the transactions contemplated by the Standby Purchase Agreement, the Investors will Beneficially Own (as such
term is defined herein) the number of shares of Common Stock of the Company set forth in the Standby Purchase Agreement (collectively,
the “Investor Shares”); and

 

WHEREAS, the
Investors and the Company desire to enter into this Agreement in order to generally set forth their respective rights and responsibilities,
and to establish various arrangements and restrictions with respect to, among other things, (a) actions that may or may not
be undertaken in respect of the Investor Shares, (b) the governance of the Company, (c) certain registration rights
with respect to the Registrable Securities (as defined herein), (d) certain liquidity rights with respect to the Investor Shares,
and (e) other related matters with respect to the Company.

 

NOW, THEREFORE,
in consideration of the premises set forth above and of the mutual representations, covenants, and obligations hereinafter set
forth, and for other good and valuable consideration, the receipt, sufficiency, and adequacy of which is hereby acknowledged,
the parties hereto, intending to be legally bound, hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Section 1.1
Certain Defined Terms 

 

As used herein,
the following terms shall have the following meanings:

 

“Additional
Shares” has the meaning set forth in Section 4.1(c).

 

“Affiliate”
means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls,
is controlled by, or is under common control with, such specified Person, including as to the Investors any investment entity
managed or advised by Senator Investment Group, LP; provided, however, that in no event shall the Company, any of
its Subsidiaries, or any of the Company’s other controlled Affiliates be deemed to be Affiliates of the Investors for purposes
of this Agreement.

 

    	 

    	 

    

 

“Agreement”
means this Stockholders Agreement, as it may be amended, restated, or otherwise modified from time to time, together with all
exhibits, schedules, and other attachments hereto.

 

“Allowable
Suspension Period” has the meaning set forth in Section 4.6(a).

 

“ATM
Program” has the meaning set forth in Section 4.2(a).

 

“Beneficial
Ownership” means, with respect to any Security, the ownership of such Security by any “Beneficial Owner,”
as such term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that, in calculating the beneficial ownership
of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person”
will be deemed to have beneficial ownership of all Securities that such “person” has the right to acquire by conversion
or exercise of other Securities, whether such right is currently exercisable or is exercisable only after the passage of time.
The terms “Beneficially Own,” “Beneficially Owned” and “Beneficial Owner”
shall have correlative meaning.

 

“Bloomberg”
means Bloomberg Financial L.P.

 

“Board”
means the board of directors of the Company.

 

“Business
Day” means any day that is not a Saturday, a Sunday, or any other day on which banks are required or authorized to be
closed in the City of New York, in the State of New York.

 

“Capital
Stock” means, with respect to any Person at any time, any and all shares, interests, participations, or other equivalents
(however designated, and whether voting or non-voting) of capital stock, partnership interests (whether general or limited), limited
liability company membership interests, or equivalent ownership interests in, or issued by, such Person.

 

“Change
of Control” means (i) a sale of all or substantially all of the direct or indirect assets of the Company (including
by way of any reorganization, merger, consolidation, liquidation in a single transaction or
a series of related transactions or other similar transaction), (ii) a direct or indirect acquisition of Beneficial
Ownership by a Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) other than
the Investors or their Affiliates, including by means of any transaction or series of transactions (including any reorganization,
merger, consolidation, joint venture, share transfer or other similar transaction) pursuant to which the Person or "group"
(within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) other than the Investors or their Affiliates collectively
own more than fifty percent (50%) of the Voting Securities of the Company or the surviving entity, as the case may be, or
(iii) the obtaining by any Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange
Act) of the power (whether or not exercised) to elect a majority of the members of the Board (or similar governing body) of the
Company.

 

“Closing”
has the meaning set forth in the Standby Purchase Agreement.

 

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“Closing
Bid Price” and “Closing Sale Price” mean, for any Security as of any date, the last closing bid price
and last closing trade price, respectively, for such Security on the Exchange, as reported by Bloomberg, or, if the Exchange begins
to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as the case may
be, then the last bid price or last trade price, respectively, of such Security prior to 4:00:00 p.m., New York Time, as reported
by Bloomberg.

 

“Committee”
has the meaning set forth in Section 2.1(c).

 

“Common
Stock” means the Common Stock of the Company, par value $0.01 per share.

 

“Company”
has the meaning set forth in the Recitals hereto.

 

“Company
Right” has the meaning set forth in Section 3.1(b).

 

“Compensation
Committee” has the meaning set forth in Section 2.1(c).

 

“Consent
Default” has the meaning set forth in Section 2.2(c).

 

“Consent
Default Date” has the meaning set forth in Section 2.2(c).

 

“Consent
Delay Payments” has the meaning set forth in Section 2.2(c).

 

“Consent
Fee Shares” has the meaning set forth in Section 2.2(c).

 

“Contracting
Party” has the meaning set forth in Section 6.10.

 

“Consent
Rate” has the meaning set forth in Section 2.2(c).

 

“control”
(including the terms “controlled by” and “under common control with”), with respect to the
relationship between or among two (2) or more Persons, means the possession, directly or indirectly, of the power to direct,
or cause the direction of, the affairs or management of a Person, whether through the ownership of voting securities, as trustee
or executor, by contract, or by any other means.

 

“Controlling
Person” has the meaning set forth in Section 4.8(a).

 

“Convertible
Securities” means any evidence of indebtedness, shares of Capital Stock (other than Common Stock) or other Securities
(including Options) that are directly or indirectly convertible into, or otherwise exchangeable or exercisable for, shares of
Common Stock.

 

“Damages”
has the meaning set forth in Section 4.8(a).

 

“DCR”
has the meaning set forth in Section 2.3.

 

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“Debt”
means, with respect to the Company and its subsidiaries, all liabilities, including all obligations in respect of principal, accrued
interest, penalties, fees and premiums, for (a) indebtedness for borrowed money (including principal and accrued interest),
(b) indebtedness evidenced by notes, debentures, bonds or other similar instruments (including principal and accrued interest),
(c) “earn-out” obligations and other obligations for the deferred purchase price of property, goods or services
(other than trade payables or accruals incurred in the ordinary course of business), (d) indebtedness for payments arising
in respect of drawn letters of credit or bankers’ acceptances or secured by a purchase money mortgage or other lien to secure
all or part of the purchase price of the property subject to such mortgage or lien, (e) liabilities and obligations under
capital leases (determined in accordance with GAAP), and (f) indebtedness of third Persons which is directly or indirectly
guaranteed by the Company or any of its subsidiaries.

 

“Director”
means, with respect to any Person, any member of the board of directors of such Person (other than any advisory, honorary or other
non-voting member of such board).

 

“DTC”
means The Depository Trust Company.

 

“Effective
Deadline” has the meaning set forth in Section 4.1(b).

 

“Effectiveness
Period” has the meaning set forth in Section 4.1(b).

 

“Equity
Issuance” means any issuance, sale or placement of any Common Stock or other Capital Stock of the Company or any of
its subsidiaries, and any issuance, sale or placement of any other Securities of the Company or any of its subsidiaries that are
convertible or exchangeable into Common Stock or other Capital Stock of the Company or any of its subsidiaries; provided,
however, that no Permitted Issuance shall constitute or be deemed to constitute an “Equity Issuance”
for purposes of this Agreement.

 

“Exchange”
means, initially, the NASDAQ Global Market and any successor thereto or, in the future, any other stock market on which the Common
Stock is listed.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, together with all rules and regulations promulgated thereunder.

 

“FINRA”
means the Financial Industry Regulatory Authority, Inc.

 

“Full
Cooperation” means, in connection with any Underwritten Offering, where, in addition to the cooperation otherwise required
by this Agreement, members of senior management of the Company fully cooperate with the underwriter(s) in connection with all
reasonable and customary recommendations and requests of such underwriter(s), and make two members of senior management available
upon reasonable notice to participate in due diligence meetings or calls, “road-show” and other reasonable and customary
marketing activities in such locations (domestic and foreign) as recommended by the underwriter(s).

 

“GAAP”
means United States generally accepted accounting principles in effect as of the date hereof.

 

“Governing
Documents” means the articles of restatement and bylaws of the Company.

 

“Holder”
means the Investors and any Permitted Transferee that becomes a Holder pursuant to Section 4.12.

 

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“HSR
Act” has the meaning set forth in Section 3.2(f).

 

“Indemnified
Party” has the meaning set forth in Section 4.8(c).

 

“Indemnifying
Party” has the meaning set forth in Section 4.8(c).

 

“Investment
Committee” has the meaning set forth in Section 2.1(c).

 

“Investor”
and “Investors” have the meaning set forth in the Recitals hereto.

 

“Investor
Nominated Directors” has the meaning set forth in Section 2.1(a).

 

“Investor
Shares” has the meaning set forth in the Recitals hereto.

 

“Investor
Standby Shares” has the meaning set forth in Section 3.1(b).

 

“Law”
means any statue, law, regulation, ordinance, rule, injunction, order, decree, directive, or any similar form of decision of,
or determination by, any governmental or self-regulatory authority.

 

“Liquidity
Date” has the meaning set forth in Section 3.1(b).

 

“Liquidity
Notice” has the meaning set forth in Section 3.1(a).

 

“Liquidity
Right Expiration Date” has the meaning set forth in Section 3.1(a).

 

“Liquidity
Right Measurement Date” has the meaning set forth in Section 3.1(a).

 

"Liquidity
Right Threshold" has the meaning set forth in Section 3.1(a).

 

“Mailing
Date” has the meaning set forth in Section 2.1(a).

 

"Market
Capitalization" means the product of (x) the number of shares of Common Stock outstanding and (y) the arithmetic average
of the VWAPs over the ten (10) Trading Days prior to the date of determination.

 

“Measurement
Period” has the meaning set forth in Section 3.1(a).

 

“Non-Recourse
Party” has the meaning set forth in Section 6.10.

 

“Operating
Partnership” has the meaning set forth in Section 2.2(a)(vi).

 

“Options”
means any options, warrants, or other rights to subscribe for, purchase, or otherwise acquire shares of Capital Stock of the Company
(or any successor thereto).

 

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“Permitted
Issuance” means (a) any issuance of Capital Stock upon the exercise of Options outstanding and publicly disclosed
as of the date of this Agreement and in accordance with their terms as in effect on the date of this Agreement, (b) any issuance,
sale or authorization pursuant to the Company’s currently existing and publicly filed compensation arrangements for its
directors, officers, employees, consultants and agents, (c) any issuance, sale or authorization pursuant to any future compensation
arrangements for the Company’s directors, officers, employees, consultants and agents that are approved by the Company’s
Compensation Committee and do not exceed the limits set forth in Section 2.2(a) hereof, (d) any issuance, sale or
placement of Capital Stock as consideration in any acquisition transaction the primary purpose of which is not to raise capital,
including any Change of Control, that has been approved by the Board and does not violate the provisions of Section 2.2(a)
hereof, (e) any issuance of Capital Stock, and (f) any issuance of common units or limited partnership interests
in Operating Partnership upon conversion of contingent or preferred units issued as
of the date of this Agreement, and any issuance of Common Stock upon redemption of common units in the Operating Partnership
that are issued and outstanding or otherwise permitted to be issued pursuant to clause
(d) above as of the date of this Agreement pursuant to the terms of the Agreement of Limited Partnership of the Operating
Partnership.

 

“Permitted
Transferee” has the meaning set forth in Section 4.12.

 

“Person”
means an individual, corporation, partnership, limited liability company, association, trust, or other entity or organization,
including any governmental authority.

 

“Piggyback
Registration” has the meaning set forth in Section 4.2(a).

 

"Pre-Emptive
Shares" means any shares of Common Stock issued or issuable to the Investors pursuant to Section 3.2.

 

“Pro
Rata Portion” means, with respect to the Investors and their Affiliates at a given time and with respect to a given
Equity Issuance, a number of shares of Common Stock, other Capital Stock or other Securities to be issued, sold or placed in the
Equity Issuance equal to the product of (a) the number of shares of Common Stock, other Capital Stock or other Securities
proposed to be issued, sold or placed in the Equity Issuance, multiplied by (b) a fraction, the numerator of which is the
aggregate number of shares of Common Stock Beneficially Owned by the Investor and its Affiliates immediately prior to the Equity
Issuance, and the denominator of which is the aggregate number of shares of outstanding Common Stock immediately prior to the
Equity Issuance.

 

“Quarterly
Business Plan” has the meaning set forth in Section 3.1(c).

 

“Registrable
Securities” means the shares of Common Stock held beneficially or of record by any of the Holders, including, without
limitation, (i) the Acquired Shares (as defined in the Standby Purchase Agreement), (ii) the Backstop Acquired Shares (as defined
in the Standby Purchase Agreement), (iii) the Backstop Commitment Fee Shares (as defined in the Standby Purchase Agreement), (iv)
the Additional Purchase Commitment Fee Shares (as defined in the Standby Purchase Agreement), (v) Pre-Emptive Shares, if any,
(vi) the Additional Shares, if any, (vii) the Consent Fee Shares, if any, and (viii) shares of Common Stock acquired by way
of a dividend, stock split, recapitalization, plan of reorganization, merger, sale of assets or otherwise. Registrable Securities
shall continue to be Registrable Securities until (x) they are sold pursuant to an effective Registration Statement under
the Securities Act or (y) they may be sold by their Holder without registration under the Securities Act pursuant to Rule
144 (or any similar provision then in force) without restriction or limitation thereunder on volume or manner of sale or other
restrictions or limitations under Rule 144 and without the requirement to be in compliance with Rule 144(c)(1).

 

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“Registration
Default” has the meaning set forth in Section 4.1(c).

 

“Registration
Rate” has the meaning set forth in Section 4.1(c).

 

“Registration
Statement” means any registration statement filed by the Company under the Securities Act that covers the resale of
any of the Registrable Securities, including a prospectus, amendments and supplements thereto, and all exhibits and material incorporated
by reference therein.

 

“Required
Registration” has the meaning set forth in Section 4.1(a).

 

“Rule
144” means Rule 144 promulgated under the Securities Act or any successor federal statute, rules, or regulations thereto,
and in the case of any referenced section of any such statute, rule, or regulation, any successor section thereto, collectively
as from time to time amended and in effect.

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities”
or “Security” means Capital Stock, limited partnership interests, limited liability company interests, beneficial
interests, warrants, options, restricted stock units, notes, bonds, debentures, and other securities, equity interests, ownership
interests and similar obligations of every kind and nature of any Person.

 

“Securities
Act” means the Securities Act of 1933 or any successor federal statute, and the rules and regulations of the SEC thereunder,
and in the case of any referenced section of any such statute, rule or regulation, any successor section thereto, collectively
and as from time to time amended and in effect.

 

“Standby
Purchase Agreement” has the meaning set forth in the Recitals hereto.

 

“Suspension
Notice” has the meaning set forth in Section 4.6(a).

 

“Third
Party Consents” has the meaning set forth in Section 2.2(a).

 

"Trading
Day" means any day on which the Common Stock is traded on the Exchange; provided that "Trading Day" shall not
include any day on which the Common Stock is scheduled to trade on the Exchange for less than 4.5 hours or any day that the Common
Stock is suspended from trading during the final hour of trading on the Exchange (or if the Exchange does not designate in advance
the closing time of trading, then during the hour ending at 4:00:00 p.m., New York Time).

 

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“Underwriters’
Maximum Number” means, for any Required Registration or Piggyback Registration, that number of securities to which such
registration should, in the opinion of the managing underwriter(s) of such registration, in light of marketing factors, be limited.

 

“Underwritten
Offering” has the meaning set forth in Section 4.1(d).

 

“Underwritten
Offering Request” has the meaning set forth in Section 4.1(d).

 

“Voting
Securities” means at any time shares of any class of Capital Stock or other Securities of the Company, including Convertible
Securities that may be converted into, exercised for, or otherwise exchanged for such shares of Capital Stock, that are then entitled
to vote generally in the election of Directors and not solely upon the occurrence and during the continuation of certain specified
events until the occurrence of such specified event.

 

“VWAP”
means, for any Security as of any date, the dollar volume-weighted average price for such Security on the Exchange during the
period beginning at 9:30:01 a.m., New York Time (or such other time as the Exchange publicly announces is the official open of
trading), and ending at 4:00:00 p.m., New York Time (or such other time as the Exchange publicly announces is the official close
of trading) as reported by Bloomberg through its "Volume at Price" functions, or, if the foregoing does not apply, the
dollar volume-weighted average price of such Security in the over-the-counter market on the electronic bulletin board for such
security during the period beginning at 9:30:01 a.m., New York Time (or such other time as such market publicly announces is the
official open of trading), and ending at 4:00:00 p.m., New York Time (or such other time as such market publicly announces is
the official close of trading) as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such Security
by Bloomberg for such hours, the average of the highest Closing Bid Price and the lowest closing ask price of any of the market
makers for such Security as reported in the OTC Link or "pink sheets" by OTC Markets Group Inc. (formerly Pink OTC Markets
Inc.).

 

Section 1.2
Other Definitional Provisions. When used in this Agreement, the words “hereof,” “herein,” and “hereunder,”
and words of similar import shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and
Article and Section references are to this Agreement unless otherwise specified. The meanings given to terms defined herein shall
be equally applicable to both the singular and plural forms of such terms. Whenever the words “include,” “includes,”
or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”

 

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ARTICLE
II

GOVERNANCE

 

Section 2.1
The Investor’s Representation on the Board.

 

(a)          Upon
the Closing, if the number of members constituting the Board is other than nine (9), the Board shall promptly be reconstituted
such that the number of members constituting the Board shall be no more than nine (9), subject to increase or decrease by the
Board from time-to-time, in accordance with the Governing Documents and this Agreement. Upon the Closing, the Company shall promptly
cause up to two (2) persons (in the aggregate) designated by the Investors to be appointed to the Board in the manner provided
in the Governing Documents for filling vacancies on the Board; provided, that, to the extent the Investor has not designated
two (2) such persons before Closing, the Company shall promptly cause the remaining persons to be appointed to the Board,
with any required increase in the size of the Board, when such persons are designated by the Investors. Following the Closing,
subject to Section 2.1(g), for any meeting (or consent in lieu of a meeting) of the Company’s stockholders for
the election of members of the Board, (i) so long as the Investors, together with their Affiliates, Beneficially Own as of
the date of mailing of the Company’s definitive proxy statement in connection with such meeting (the “Mailing Date”)
at least nineteen and nine-tenths percent (19.9%) of the outstanding Common Stock, the Company shall include two (2) persons
designated by the Investors as members of the slate of Board nominees proposed by the Board for election by the Company’s
stockholders and, subject to the Board’s duties under Maryland law, shall recommend that the Company’s stockholders
vote in favor of the election of both such nominees, (ii) so long as the Investors, together with their Affiliates,
Beneficially Own as of the Mailing Date at least four and nine-tenths percent (4.9%), but less than nineteen and nine-tenths percent
(19.9%), of the outstanding Common Stock, the Company shall include one (1) person designated by the Investors as a member
of the slate of Board nominees proposed by the Board for election by the Company’s stockholders and, subject to the Board’s
duties under Maryland law, shall recommend that the Company’s stockholders vote in favor of the election of such nominee,
and (iii) if the Investors, together with their Affiliates, Beneficially Own as of the Mailing Date less than four and nine-tenths
percent (4.9%) of the outstanding Common Stock, the Company shall not be required to include any persons designated by the
Investors as members of the slate of Board nominees. The members of the Board nominated or elected pursuant to this Section 2.1(a)
are referred to herein as the “Investor Nominated Directors.” The Board shall not withdraw any nomination
or, subject to the Board’s duties under Maryland law, recommendation required under this Section 2.1(a), unless
the Investor delivers to the Board a written request for such withdrawal or the Board determines reasonably and in good faith
after consultation with outside legal counsel that such Board nominee (i) is prohibited or disqualified from serving as a
director of the Company under any rule or regulation of the SEC, the Exchange or by applicable Law, (ii) has engaged in acts
or omissions constituting a breach of the Investor Nominated Director’s duty of loyalty to the Company and its stockholders,
(iii) has engaged in acts or omissions that involve intentional misconduct or an intentional violation of Law and
that are felonies, violations of Law involving moral turpitude or are materially adverse to the Company or (iv) has
engaged in any transaction involving the Company from which the Investor Nominated Director derived an improper personal benefit
that was not disclosed to the Board prior to the authorization of such transaction if such disclosure is required pursuant to
the Governing Documents; provided, however, that the Investor shall have the right to replace such Board nominee
with a new Board nominee. Further, (i) for any meeting (or consent in lieu of a meeting) of the Company’s stockholders
for the election of members of the Board, the Board shall not nominate, in the aggregate, a number of nominees greater than the
nine (9) members of the Board, (ii) subject to the Board’s duties under Maryland law, the Board shall not recommend
the election of any other person to a position on the Board for which an Investor Nominated Director has been nominated, and (iii) the
Company shall use commercially reasonable efforts to cause each Investor Nominated Director to be elected to the Board. If elected
to the Board, each Investor Nominated Director will hold his or her office as a member of the Board for such term as is provided
in the Governing Documents, or until his or her death, resignation or removal from the Board or until his or her successor has
been duly elected and qualified in accordance with the provisions of this Agreement, the Governing Documents, and applicable Law.

 

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(b)          Subject
to the provisions of Section 2.1(a) and 2.1(d) and the conditions set forth in Section 2.1(g), Michael Simanovsky
shall serve as one of the initial Investor Designated Directors.

 

(c)          Upon
the election of the Investor Nominated Directors to the Board, the Investor Nominated Directors shall be entitled to attend meetings
of the investment committee and compensation committee of the Board. For so long as Investor has the right to designate at least
one (1) Investor Nominated Director to serve on the Board, the Board shall maintain an investment committee, the rights and responsibilities
of which shall include those described on Exhibit A hereto, subject to amendment by the Board from time to time (the "Investment
Committee"), and a compensation committee, the rights and responsibilities of which shall comply with the listing requirements
of the Exchange (the "Compensation Committee" together with the Investment Committee, the "Committees").
The Investor Nominated Directors shall receive all Committee notices, minutes, written consents and all other materials provided
to members of the Committees. The Investor Nominated Directors shall attend and participate in meetings of the Committees only
in their capacity as observers and will have no voting rights or any other rights granted to members of the Committees. If
any of the current rights or responsibilities of any of the Committees are delegated to a new Board committee or sub-committee,
the Investor Nominated Directors shall have the same rights with respect to such committees or sub-committees as they do with
respect to the Committees.

 

(d)          If
the Investors', together with their Affiliates’, Beneficial Ownership of outstanding Common Stock falls below any percentage
threshold set forth in Section 2.1(a) above, the Investor shall promptly cause one or more, as applicable, of the
Investor Nominated Directors to resign from the Board such that the remaining number of Investor Nominated Directors on the Board
does not exceed the number that the Investor is then entitled to designate for nomination or appointment pursuant to the terms
and conditions of Section 2.1(a) above, and the number of directors that the Investor shall be entitled to designate
for nomination shall forever be reduced to such number of Investor Nominated Directors serving on the Board immediately after
such resignation(s) (even if the Investors or their Affiliates shall subsequently acquire additional shares of Common Stock).
In addition, the Investors shall cause any Investor Nominated Director to resign from the Board and any committees on which such
Investor Nominated Director serves if such Investor Nominated Director, as determined reasonably by the Board in good faith after
consultation with outside legal counsel, (i) is prohibited or disqualified from serving as a director of the Company or a
member of any such committees under any rule or regulation of the SEC, the Exchange or by applicable Law, (ii) has engaged
in acts or omissions constituting a breach of the Investor Nominated Director’s duty of loyalty to the Company and its stockholders,
(iii) has engaged in acts or omissions that involve intentional misconduct or an intentional violation of Law and
that are felonies, violations of Law involving moral turpitude or are materially adverse to the Company or (iv) has
engaged in any transaction involving the Company from which the Investor Nominated Director derived an improper personal benefit
that was not disclosed to the Board prior to the authorization of such transaction if such disclosure is required pursuant to
the Governing Documents or applicable Law; provided, however, that, subject to the limitations set forth in Section 2.1(a),
the Investor shall have the right to replace such resigning Investor Nominated Director with a new Investor Nominated Director,
such newly-named Investor Nominated Director to be appointed promptly to the Board in place of the resigning Investor Nominated
Director in the manner set forth in the Governing Documents for filling vacancies on the Board. Further, upon the resignation
of any Investor Nominated Director, any rights granted to such Investor Nominated Director pursuant to Section 2.1(a) and (c)
shall terminate forthwith; provided, however, that any newly-named Investor Nominated Director selected by the
Investor to replace the resigning Investor Nominated Director shall be granted the rights set forth in Section 2.1(a) and (c).
Nothing in this paragraph (d) or elsewhere in this Agreement (except Section 2.1(f)) shall confer any third-party
beneficiary or other rights upon any person designated hereunder as an Investor Nominated Director, whether during or after such
person’s service on the Board.

 

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(e)          For
so long as the Investors have the right to designate at least one (1) Investor Nominated Director for nomination to the Board
pursuant to Section 2.1(a) above, the Board shall fill vacancies created by reason of death, removal or resignation
of any Investor Nominated Director promptly upon request by the Investor and only as directed by the Investor, subject to the
terms and conditions set forth in Section 2.1(a) above and Sections 2.1(g) below. So long as Investor has named
a replacement within thirty (30) days following any death, removal or resignation of an Investor Nominated Director, and prior
to any appointment of such replacement in accordance with this Agreement, and subject to the Board’s duties under Maryland
law, the Board agrees not to authorize or take, and agrees to cause each Committee not to authorize or take, any action that would
otherwise require the consent of an Investor Nominated Director until such time as such newly named Investor Nominated Director
has been so appointed to the Board.

 

(f)          Each
Investor Nominated Director that is elected to the Board shall be indemnified by the Company and its subsidiaries, if applicable,
in connection with his or her service as a member of the Board to the fullest extent permitted by Law and the Governing Documents
and will be exculpated from liability for damages to the fullest extent permitted by Law and the Governing Documents. Without
limiting the foregoing in this Section 2.1(f), each Investor Nominated Director who is elected to the Board shall
be entitled to receive from the Company and its subsidiaries, if applicable, the same insurance coverage in connection with his
or her service as a member of the Board as is provided for each of the other members of the Board.

 

(g)          The
Investors shall only designate a person to be an Investor Nominated Director (i) who the Investors believe in good faith
has the requisite skill and experience to serve as a director of a publicly-traded company, (ii) who is not prohibited from
or disqualified from serving as a director of the Company pursuant to any rule or regulation of the SEC, the Exchange or applicable
Law, (iii) who meets the applicable independence standards required by the listing rules of the Exchange, and (iv) with
respect to which no event required to be disclosed pursuant to Item 401(f) of Regulation S-K of the 1934 Act has occurred.
Notwithstanding anything to the contrary in this Section 2.1, the parties hereto agree that members of the Board shall
retain the right to object to the nomination, election or appointment of any Investor Nominated Director for service on the Board
if the members of the Board reasonably determine in good faith, after consultation with outside legal counsel, that such Investor
Nominated Director fails to meet the criteria set forth above. In the event that the members of the Board reasonably object to
the nomination, election or appointment of any Investor Nominated Director to the Board pursuant to the terms of this Section 2.1(g),
the Board shall nominate or appoint, as applicable, another individual designated by the Investor as the Investor Nominated Director
nominated for election to the Board that meets the criteria set forth in this Section 2.1(g) and Section 2.1(h)
hereof.

 

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(h)          Notwithstanding
anything to the contrary in this Section 2.1, nothing shall prevent the Board from acting in accordance with their
respective duties under Maryland law or applicable Law or Exchange requirements. The Board shall have no obligation to nominate,
elect or appoint any Investor Nominated Director if such nomination, election or appointment would violate applicable Law or Exchange
requirements or result in a breach by the Board of its duties to the Company and its stockholders; provided, however,
that the foregoing shall not affect the right of the Investor to designate an alternative individual as the Investor Nominated
Director nominated for election to the Board, subject to the other terms, conditions and provisions in this Article II.

 

(i)          The
Investor Nominated Directors shall be entitled to compensation and the reimbursement of expenses in accordance with the Company’s
compensation of non-employee directors in effect from time to time in connection with their service on the Board. In addition,
all reasonable out-of-pocket expenses of the Investors or any of their employees or Affiliates in connection with assisting the
Company or evaluating actions by the Company shall be reimbursed by the Company. If requested by any Investor, the fees and expenses
for any Investor Nominated Director that is an employee of the Investors or its Affiliates shall be paid directly to the Investors
on behalf of such Investor Nominated Director.

 

(j)          The
rights of the Investor set forth in this Section 2.1 shall be in addition to, and not in limitation of, such voting
rights that the Investor may otherwise have as a holder of Capital Stock of the Company, subject to Section 5.1 below.

 

Section 2.2
Consent Rights.

 

(a)          Following
the earlier of receipt of the third party consents set forth on Schedule 2.2 to this Agreement (the “Third Party Consents”)
or the determination by the Company that such Third Party Consents are no longer required, and then for so long as the Investors,
together with their Affiliates, Beneficially Own at least four and nine-tenths percent (4.9%) of the outstanding Common Stock,
prior written consent of the Investors will be required for:

 

(i)          Any
modification or amendment of the Company’s Governing Documents, operating agreement or similar organizational documents
(whether by merger, consolidation or otherwise) in any manner adverse to the Investor;

 

(ii)         Any
individual or series of related retention agreements, signing bonuses, stock option awards, stock incentive rights (including
any phantom stock) or any similar employee compensation related agreements or arrangements to the extent that the aggregate of
all of the foregoing would exceed in the aggregate during any calendar year 10% of the Company’s Market Capitalization as
of the day after the Closing Date or that, in the aggregate, exceeds $5,000,000 in value during any calendar year, determined
as of the date of grant with respect to equity awards and as of the date of payment with respect to cash awards or similar arrangements;

 

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(iii)        Any
purchase of shares of Common Stock or Capital Stock from members of the Board, Company’s management or their respective
Affiliates (other than deemed repurchases in connection with the surrender of shares by members of the Board, the Company’s
management or their respective Affiliates to the Company to satisfy any customary tax withholding in connection with vesting of
restricted stock or cashless exercises of stock options);

 

(iv)         Any
Equity Issuance at a (net of any discounts, commissions, or other direct or indirect payments, whether in cash or other value)
price per share or deemed price per share (i.e. conversion, exchange or exercise price) of Common Stock less than $6.33 per share;

 

(v)          Any
transaction, including any modification of rights, involving the existing preferred shares or preferred shareholders;

 

(vi)         Any
guarantees of, incurrences of or issuances of recourse Debt or recourse Capital
Stock that is redeemable at any time by the Company or Trade Street Operating
Partnership, LP (the “Operating Partnership”) which guarantees,
incurrences or issuances during any calendar year are in a principal amount or create an obligation or potential obligation
of the Company for a payment amount greater than $50,000,000 (not counting a guarantee
and its related Debt more than once); and for any issuance of Capital Sock other than Common Stock for consideration or value
greater than $50,000,000 in the aggregate in any calendar year;

 

(vii)        Any
acquisition or series of related acquisitions, the purchase price of which would equal more than fifty percent (50%) of the Company’s
Market Capitalization immediately prior to execution of definitive documentation for any such acquisition;

 

(viii)      The
hiring or firing of the Company’s Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, Chief Operating
Officer or President or any similar position; and

 

(ix)         Determination
by the Board that it is no longer in the Company's best interest to qualify as a Real Estate Investment Trust.

 

(b)          The
rights of the Investors and their Affiliates set forth in this Section 2.2 shall be in addition to, and not in limitation
of, such voting rights that the Investors and their Affiliates may otherwise have as holders of Capital Stock of the Company,
subject to Section 5.1.

 

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(c)          If
the Third Party Consents are not obtained and it is not determined by the Company that such Third Party Consents are no longer
required on or prior to the date that is one hundred eighty (180) days following the date of this Agreement (the "Consent
Default" and the date of such Consent Default, the “Consent Default Date”), then, as liquidated damages
to any Investor for the failure to obtain the Third Party Consents (or determination that they are no longer required) by such
date (which remedy shall be the exclusive remedy available at law or in equity only for a period of one hundred eighty (180) days
following the Consent Default Date, but which shall not be exclusive of any other remedies available at law or in equity after
the date that is one hundred eighty (180) days following the Consent Default Date), the Company shall (i) issue to such Investor
on the first 30 day anniversary of the Consent Default and on each subsequent 30 day anniversary of the Consent Default (pro rated
for periods totaling less than 30 calendar days), or, if earlier, no later than five (5) Business Days following the date that
such Consent Default is cured, until the Third Party Consents are obtained (or determination that they are no longer required),
additional shares of Common Stock, the number of which shall equal one percent (1.0%) (the “Consent Rate”)
of the aggregate purchase price paid by such Investor pursuant to the Standby Purchase Agreement for its Acquired Shares and the
Backstop Acquired Shares divided by the arithmetic average of the VWAPs over the ten (10) Trading Days prior to the issuance of
such shares (all shares issuable by the Company for any Consent Default are referred to herein as the “Consent Fee Shares”)
or (ii) pay an amount of cash by wire of immediately available funds equal to the Consent Rate times the aggregate purchase price
paid by such Investor pursuant to the Standby Purchase Agreement for the Acquired Shares and the Backstop Acquired Shares (such
cash payments, the "Consent Delay Payments"). In the event the Company fails to issue the Consent Fee Shares
or pay the Consent Delay Payments in a timely manner, the Consent Fee Shares issued or the Consent Delay Payments paid, as the
case may be, to each Investor shall be increased at the rate of one and one-half percent (1.5%) of the Consent Rate per month
until such Consent Fee Shares are issued in full, or such Consent Delay Payments are paid in full, as applicable.

 

Section 2.3
Domestically Controlled Status. To the extent that the Company can do so without unreasonable effort or expense, upon the
prior request of the Investor, the Company shall determine whether the Company is a “domestically controlled qualified investment
entity” within the meaning of Section 897(h)(4) of the Code (a “DCR”); provided, however,
that such examination shall be limited to information filed publicly with the SEC with respect to the ownership of stock of the
Company (i.e., Schedules 13) and any information related to the ownership of the Company provided by the Investor, and that the
Company shall not be required to take any action (or to not take any action) so as to be treated as a DCR at any given time.

 

ARTICLE
III

LIQUIDITY and pre –emptive RIGHTS

 

Section 3.1
Liquidity Rights.

 

(a)          If,
on such date that is three years and six months (3.5 years) after the Closing Date (such date, the “Liquidity Right Measurement
Date”) (i) the Closing Sale Price of the Common Stock shall not have exceeded $10.00 per share (subject to adjustment
for stock splits, stock dividends, reverse stock splits, recapitalizations and other capital changes or similar events) on each
Trading Day during any consecutive 10-Trading Day period (the "Liquidity Right Threshold") occurring during the
180 days prior to the Liquidity Right Measurement Date (the "Measurement Period") and (ii) the Investors and
their Affiliates Beneficially Own no less than four and nine-tenths percent (4.9%) of the outstanding Common Stock, the Investors
shall have the rights, subject to the limitations, set forth in this Section 3.1 with respect to shares of Common Stock
purchased or otherwise acquired pursuant to the Standby Purchase Agreement upon the Closing and still owned by the Investors at
such time. In the foregoing event, the Investors collectively may, but shall not be obligated to, on one occasion only, provide
notice to the Company that they desire to liquidate some or all of the shares of Common Stock owned by the Investors on the date
of such notice (a “Liquidity Notice”). The Liquidity Notice shall set forth the names of the Investors participating
in such Liquidity Notice and the number of shares of Common Stock they wish to liquidate. It is hereby understood and agreed that
the Investors may submit only one Liquidity Notice and any such notice shall be delivered to the Company no later than 5:00 PM
Eastern Standard Time on the tenth (10th) day (or, if such day is not a Business Day, the next Business Day thereafter)
following the Liquidity Right Measurement Date (the “Liquidity Right Expiration Date”). If no such Liquidity
Notice is delivered to the Company on or prior to the Liquidity Right Expiration Date, the Investors shall have no further rights,
and the Company shall have no further obligations, under this Section 3.1. In addition, if a Liquidity Notice is timely
delivered, any Investor that has not participated in such Liquidity Notice shall have no further rights under this Section
3.1.

 

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(b)          If
the Investors provide the Company with a timely Liquidity Notice, the Company shall have the right (the “Company Right”)
to purchase from the Investors at any time or from time to time on or before the date that is (6) months after the Liquidity Right
Measurement Date (the “Liquidity Date”), all or the specified portion of the shares of Common Stock still owned
by the Investor on the Liquidity Right Measurement Date at a price equal to the greater of (a) $10.00 per share (subject to adjustment
for stock splits, stock dividends, reverse stock splits, recapitalizations and other capital changes or similar events) or (b)
an amount per share of Common Stock equal to 95% of the arithmetic average of the VWAPs over the 10 Trading Days immediately prior
to the Liquidity Right Measurement Date (subject to adjustment for stock splits, stock dividends, reverse stock splits, recapitalizations
and other capital changes or similar events); provided, however, that the rights granted to the Investors pursuant
to this Section 3.1 shall not apply to a number of securities that exceeds the aggregate number of shares of Common Stock
purchased by the Investors under the Standby Purchase Agreement minus the aggregate number of such shares of Common Stock sold
by the Investors prior to the Liquidity Right Measurement Date (the “Investor Standby Shares”). Nothing herein
shall prevent the Investors from selling Common Stock after the Liquidity Right Measurement date, provided that any sale of Common
Stock subject to the Company Right shall proportionately reduce such Company Right.

 

(c)          In
the fiscal quarter immediately preceding the Liquidity Date, the Company shall provide
to the Investors a business plan that is commercially reasonable, prepared in good faith, and consistent both with past practice
and the business plan provided to the Investors prior to the date hereof and which shall contain, without limitation, an income
statement, balance sheet and cash flows in accordance with GAAP and set forth all material business activities and plans of the
Company (the foregoing a “Quarterly Business Plan”),
which Quarterly Business Plan shall be subject to reasonable approval by the Investor Nominated Directors, acting as a special
budget committee solely for such purpose. If the Company does not exercise the Company Right by the Liquidity Date, the Quarterly
Business Plan shall be effective for the ensuing fiscal quarter. The Company shall be required to prepare and furnish to the Investors
an updated Quarterly Business Plan for each fiscal quarter during which the Investors shall continue to own Investor Standby Shares
after the Liquidity Date. To the extent that during the calendar quarter relating
to a Quarterly Business Plan, any expenditures or other items relating to the
income statement, balance sheet or cash flows deviate in a manner adverse to the Company by more than 5% from the amounts or related
item set forth in the applicable Quarterly Business Plan, then (x) the Company shall be
prohibited from making such expenditure or taking any such action without the Investors' approval, with such approval to be given
in the Investors' sole discretion and (y) any subsequent Quarterly Business Plan shall
not be adopted and any related expenditures or actions shall not be taken by the Company without the Investors' approval,
with such approval to be given in the Investors' sole discretion. Notwithstanding the foregoing, if the use of proceeds of any
debt or equity financing is to acquire Investor Standby Shares still owned by the Investors, Investor approval will not be required
so long as at the closing of such financing, the proceeds of such financing are paid directly to the Investor to purchase Investor
Standby Shares at the price set forth in Section 3.1(b).

 

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(d)          During
the Measurement Period, the Investors shall not sell on any Trading Day during the Measurement Period a number of shares of Common
Stock that exceeds twenty percent (20%) of the average daily trading volume of the Common Stock as reported by Bloomberg; provided,
however, that from and after the such time as the Liquidity Right Threshold has been satisfied, the foregoing restriction shall
no longer apply.

 

Section 3.2
Pre-Emptive Rights. 

 

(a)          For
so long as the Investors, together with their Affiliates, Beneficially Own no less than four and nine-tenths percent (4.9%) of
the outstanding Common Stock, the Investors or one or more of their designated Affiliates shall have the option and right (but
not the obligation) to participate (or nominate any of their Affiliates to participate) in any Equity Issuance by purchasing in
the aggregate up to the Investors' and their Affiliates’ Pro Rata Portion of such Equity Issuance at the same price and
the same terms and conditions as offered to other investors in the Equity Issuance.

 

The Company agrees to use its
reasonable best efforts to take any and all action, or to cause such action to be taken, as is necessary or appropriate to allow
the Investors or their Affiliates, as applicable, to fully participate in any Equity Issuance in accordance with the provisions
of this Agreement.

 

(b)          In
the event the Company proposes to undertake an Equity Issuance, the Company shall promptly give the Investors prior written notice
of its intention, describing the type of equity interests, the price at which such securities are proposed to be issued (or, in
the case of an underwritten or privately placed offering in which the price is not known at the time the notice is given, the
method of determining the price and an estimate thereof), the timing of such proposed Equity Issuance and the general terms and
conditions upon which the Company proposes to effect the Equity Issuance. The Investors and their Affiliates shall have fifteen
(15) Business Days (or, if the Company expects that the proposed Equity Issuance will be effected in less than fifteen (15) Business
Days, such shorter period, that shall be as long as practicable, as may be required in order for the Investors and their Affiliates
to participate in such proposed Equity Issuance) from the date the Investors receive notice of the proposed Equity Issuance to
elect to purchase up to their Pro Rata Portion of such Equity Issuance for the consideration and upon the terms specified in the
notice provided by the Company pursuant to this Section 3.2(b) by giving written notice to the Company and stating
therein the quantity of equity interests to be purchased. Any such notice shall be irrevocable; provided, however, that if the
Equity Issuance does not occur within thirty (30) Business Days following such notice and the terms of the Equity Issuance are
materially modified, then the Investors and their Affiliates will be provided the opportunity to similarly participate on such
modified terms. Any purchase of Equity Interests by any Investor and its Affiliates pursuant to this Section 3.2 shall
occur contemporaneously with, and be subject to the same terms and conditions as, the closing of the sale of the Equity Interests
by the Company to the other parties.

 

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(c)          The
purchase by the Investors and their Affiliates of Equity Interests pursuant to this Section 3.2 shall be subject to
the limitations on stock ownership set forth in the Company’s organizational documents; provided, that Company shall provide
any necessary waiver of such limitations upon receipt of an updated representation letter similar to the representation letter
provided by the Investors in connection with the Closing under the Standby Purchase Agreement.

 

(d)          In
the event that neither any Investor nor any of their Affiliates exercise the right forth in this Section 3.2 within
the applicable period as set forth above, the Company shall be permitted to sell the equity interests in respect of which such
pre-emptive rights were not exercised. In the event that the Company has not sold the equity interests within ninety (90) days
of its notice to Investor as contemplated by Section 3.2(b), for purposes of this Section 3.2 such proposed
Equity Offering shall be deemed to have been terminated, and the Company shall provide Investor with a new notice prior to undertaking
a subsequent Equity Issuance.

 

(e)          The
Company shall have the right, in its sole discretion, at all times prior to consummation of any proposed Equity Issuance giving
rise to the rights granted by this Section 3.2, to abandon, withdraw or otherwise terminate such proposed Equity Issuance,
without any liability to the Investors or their Affiliates.

 

(f)          Notwithstanding
anything to the contrary herein, in the event that Investors and their Affiliates or the Company are required to file any notifications
or report forms under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”)
in order to exercise the Investors' and their Affiliates' rights pursuant to this Section 3.2, then the time periods to
close on such exercise set forth above shall be extended and the Investors' and their Affiliates' rights pursuant to this Section
3.2 shall be held in abeyance for the Investors and their Affiliates until such time that all approvals or clearances pursuant
to the HSR Act have been obtained, at which time the Investors and Affiliates shall proceed to close on their rights pursuant
to this Section 3.2.

 

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ARTICLE
IV

REGISTRATION RIGHTS

 

Section 4.1
Registration Statement.

 

(a)          Subject
to Section 4.6 and the other provisions of this Article IV, the Company shall use its reasonable best efforts to
file with the SEC, prior to the Effective Deadline (as defined below), a Registration Statement covering the registration of the
resale at any time or from time to time of all Registrable Securities pursuant to Rule 415 under the Securities Act and or any
similar rule that may be adopted by the SEC (together with any other registration required by this Article IV, the “Required
Registration”). To the extent the staff of the SEC does not permit all of the Registrable Securities to be registered
on a Registration Statement, the Company shall file additional Registration Statement(s) successively trying to register on each
such additional Registration Statement the maximum number of remaining Registrable Securities until the earlier of (a) all of
the Registrable Securities have been registered with the SEC, or (b) the date on which all of the remaining Registrable Securities
may be sold without restriction or limitations pursuant to Rule 144 and without requirement to be in compliance with Rule 144(c)(1)
(or any successor thereto). The Registration Statement shall be on Form S-3, unless the Company is not then eligible to file a
registration statement on Form S-3 under the Securities Act, in which case (i) such registration statement shall be on Form S-11
or other appropriate form under the Securities Act which the Company is then eligible to file and (ii) the Company shall undertake
to register the Registrable Securities on Form S-3 as soon as such form is available, provided that the Company shall maintain
the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering
the Registrable Securities has been declared effective by the SEC.

 

(b)          The
Company agrees (subject to Section 4.6 hereof) to cause the Registration Statement to be declared effective by the SEC
as soon as practicable after the filing thereof but in any event prior to the one (1) year anniversary of the Closing (the “Effective
Deadline”). After issuance of any Pre-Emptive Shares or Consent Fee Shares,
such Pre-Emptive Shares or Consent Fee Shares shall become Registrable Securities hereunder and the Company shall, as soon as
reasonably practicable, subject to Section 4.6 hereof, file a post-effective amendment to the Registration Statement to register
the Pre-Emptive Shares or Consent Fee Shares or file a separate registration statement, which shall thereafter be treated as a
Registration Statement hereunder, covering the registration of a secondary resale offering of the Pre-Emptive Shares or Consent
Fee Shares pursuant to Rule 415 under the Securities Act and or any similar rule that may be adopted by the SEC. Subject
to Section 4.6 hereof, the Company agrees to use commercially reasonable efforts to keep the Registration Statement continuously
effective (including the preparation and filing of any amendments and supplements necessary for that purpose) under the Securities
Act for a period that will terminate upon the earlier of (i) the date on which all Registrable Securities covered by the Registration
Statement have been sold and (ii) the date on which all of the Registrable Securities covered by the Registration Statement may
be sold without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1)
(or any successor thereto) under the Securities Act (the “Effectiveness Period”).

 

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(c)          If
the Registration Statement relating to the Required Registration and covering all of
the Registrable Securities then outstanding does not become effective on or prior to the Effective Deadline or
after being declared effective the Registrable Securities cannot be sold pursuant thereto (other than during an Allowable Suspension
Period (as defined in Section 4.6(a)))(a “Registration Default”), then, as damages to any Holder by reason
of any such delay in or reduction of its ability to sell the underlying shares of Common Stock (which remedy shall not be exclusive
of any other remedies available at law or in equity, including, without limitation, actual damages, if any, specific performance;
provided, however, the Holder cannot seek and in no event will be entitled to consequential, speculative or incidental
damages in any such proceedings), the Company shall issue to each Holder on the first 30 day anniversary of the Registration Default
and on each subsequent 30 day anniversary of the Registration Default (pro rated for
periods totaling less than 30 calendar days), or no later than five (5) Business Days following the date that the applicable
Registration Statement becomes effective or such Registration Default is cured if earlier, until all of the Registrable Securities
are initially registered or once again saleable on a Registration Statement
in accordance with the provisions of this Agreement, additional shares of Common Stock, the number of which shall equal one half
of one percent (0.50%) (the “Registration Rate”) of the aggregate
purchase price paid by the Investors pursuant to the Standby Purchase Agreement for the Acquired Shares and the Backstop Acquired
Shares divided by the arithmetic average of the VWAPs over the ten (10) Trading Days prior to the issuance of such shares. All
shares issuable by the Company for any Registration Default are referred to herein as the “Additional Shares.” In
the event the Company fails to issue the Additional Shares in a timely manner, the Additional Shares issued to each Holder shall
be increased at the rate of one and one-half percent (1.5%) of the Registration
Rate per month until such Additional Shares are issued in full. After issuance of any Additional Shares, such Additional Shares
shall become Registrable Securities hereunder and the Company shall, as soon as reasonably practicable, subject to Section 4.6
hereof, file a post-effective amendment to the Registration Statement to register the Additional Shares or file a separate registration
statement, which shall thereafter be treated as a Registration Statement hereunder,
covering the registration of a secondary resale offering of the Additional Shares pursuant to Rule 415 under the Securities
Act and or any similar rule that may be adopted by the SEC.

 

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(d)          Upon
the written request of the Holders of a majority of the Registrable Securities from time to time (an “Underwritten Offering
Request”), the Company will cooperate with the Investors and any Underwriter in effecting an underwritten offering of
Registrable Securities pursuant to the Registration Statement as promptly as reasonably practicable following receipt of such
Underwritten Offering Request (an “Underwritten Offering”). In such case, (i) the Holders of a majority
of the Registrable Securities may designate the managing underwriter(s) of the Underwritten Offering, provided that the Company
may designate a co-managing underwriter to participate in the Underwritten Offering, subject to the approval of the Holders of
a majority of the Registrable Securities, which approval shall not be unreasonably withheld or delayed and (ii) the Company
shall (together with the Holders proposing to distribute their securities through such underwriting) enter into an underwriting
agreement in customary form for underwriting agreements for firm commitment offerings of equity securities with the managing underwriter(s)
proposing to distribute their securities through such Underwritten Offering, which underwriting agreement shall have indemnification
provisions in substantially the form as set forth in Section 4.8 of this Agreement; provided, that (i) the
representations and warranties by, and the other agreements on the part of, the Company to and for the benefit of the underwriter(s)
shall also be made to and for the benefit of the Holders proposing to distribute their securities through the Underwritten Offering,
(ii) no Holder shall be required to make any representations and warranties to, or agreements with, any underwriter in a
registration other than customary representations, warranties and agreements regarding such Holder, such Holder's Registrable
Securities and such Holder's intended method of disposition and (iii) the liability of each Holder in respect of any indemnification,
contribution or other obligation of such Holder arising under such underwriting agreement (a) shall be limited to losses
arising out of or based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration
Statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement, incorporated document
or other such disclosure document or other document or report, in reliance upon and in conformity with written information furnished
to the Company by or on behalf of such Holder expressly for inclusion therein and (b) shall not in any event exceed an amount
equal to the net proceeds to such Holder (after deduction of all underwriters’ discounts and commissions) from the disposition
of the Registrable Securities disposed of by such Holder pursuant to such Underwritten Offering. No Holder may participate in
any such Underwritten Offering unless such Holder agrees to sell its Registrable Securities on the basis provided in such underwriting
agreement and completes and executes all questionnaires, powers of attorney, indemnities and other documents reasonably required
under the terms of such underwriting agreement. The Company shall not be obligated to effect or participate in (a) more than
two (2) Underwritten Offerings in any twelve (12) month period, and (b) any Underwritten Offering during any lock-up
period required by the underwriter(s) in any prior underwritten offering conducted by the Company on its own behalf or on behalf
of the Holders.

 

(e)          If,
in connection with an Underwritten Offering, the managing underwriter(s) advise the Company in writing (with a copy to each Holder
requesting registration) that in its or their reasonable opinion the number of securities proposed to be included in such registration
exceeds the Underwriters’ Maximum Number, then (i) the Company shall so advise all Holders of Registrable Securities
to be included in such Underwritten Offering and (ii) the Company will be obligated and required to include in such Underwritten
Offering only that number of Registrable Securities requested by the Holders thereof to be included in such registration that
does not exceed such Underwriters’ Maximum Number, such Registrable Securities to be allocated pro rata among the Holders
thereof on the basis of the number of Registrable Securities requested to be included therein by each such Holder. No shares of
Common Stock held by any Person other than Registrable Securities held by the Holders shall be included in the Required Registration
without the prior written consent of the Holders of a majority of the Registrable Securities.

 

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Section 4.2
Piggyback Registration.

 

(a)          Subject
to Section 4.6 hereof, if, at any time while there still remain Registrable Securities, the Company is no longer eligible
to use or, notwithstanding its obligations under Section 4.1(a), otherwise the Registration Statement is not effective,
the Company proposes to file a new registration statement under the Securities Act with respect to an offering of Common Stock
for (i) the Company’s own account (other than a registration statement on Form S-4 or S-8 (or any substitute form that may
be adopted by the Commission) or with respect to a Company at-the-market offering program (“ATM Program”) or
Company dividend reinvestment plans) or (ii) the account of any holder of Common Stock (other than the Holders), then the Company
shall give written notice of such proposed filing to the Holders as soon as reasonably practicable (but in no event less than
ten (10) Business Days before the anticipated filing date of such new registration statement). Upon a written request, given by
Holders to the Company within five (5) Business Days after delivery of any such notice by the Company, to include Registrable
Securities in such Registration (which request shall specify the number of Registrable Securities proposed to be included in such
new registration statement if such registration statement is not a “pay as you go” Automatic Shelf Registration Statement),
the Company shall, subject to Section 4.6 hereof, include all such requested Registrable Securities in such new registration
statement on the same terms and conditions as applicable to the Company’s or such holder’s Common Stock (a “Piggyback
Registration”). Notwithstanding the foregoing, if at any time after giving written notice of such proposed filing and
prior to the effective date of such new registration statement, the Company or such holders shall determine for any reason not
to proceed with the proposed filing of the new registration statement, then the Company may, at its election, give written notice
of such determination to the Holders and, thereupon, will be relieved of its obligation to Register any Registrable Securities
in connection with such new registration statement.

 

(b)          The
Holders of Registrable Securities shall be permitted to withdraw all or any part of their shares from any Piggyback Registration
at any time on or before the second (2nd) Business Day prior to the planned effective date of such Piggyback Registration,
except as otherwise provided in any written agreement with the Company’s underwriter(s), if any, establishing the terms
and conditions under which such Holders would be obligated to sell such securities in such Piggyback Registration.

 

(c)          If
a Piggyback Registration is an Underwritten Offering on behalf of the Company, and the managing underwriter(s) advise the Company
that in its or their reasonable opinion the number of securities proposed to be included in such registration exceeds the Underwriters’
Maximum Number, then the Company shall include in such registration (i) first, the number of securities proposed to be offered
by the Company, (ii) second, the number of securities requested to be included therein by all Holders who have requested
registration of Registrable Securities in accordance with Section 4.2(a), pro rata on the basis of the aggregate number
of Registrable Securities requested to be included by each such Holder and (iii) third, any other securities that have been
requested to be so included by any other person.

 

(d)          If
a Piggyback Registration is an Underwritten Offering on behalf of a holder of Company securities other than Holders, and the managing
underwriter(s) advise the Company that in its or their reasonable opinion the number of securities proposed to be included in
such registration exceeds the Underwriters’ Maximum Number, then the Company shall include in such registration (i) first,
the number of securities requested to be included therein by the holder(s) originally requesting such registration, (ii) second,
the number of securities proposed to be offered by the Company, (iii) third, the number of securities requested to be included
therein by all Holders who have requested registration of Registrable Securities in accordance with Section 4.2(a),
pro rata on the basis of the aggregate number of Registrable Securities requested to be included by each such Holder and (iv) fourth,
any other securities that have been requested to be so included by any other person.

 

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(e)          In
any Piggyback Registration that is an Underwritten Offering, the Company shall have the right to select the managing underwriter(s)
for such registration.

 

(f)          The
Company shall not grant to any Person the right to request the Company to register any shares of Company securities in a Piggyback
Registration unless such rights are consistent with the provisions of this Section 4.2.

 

Section 4.3
Registration Expenses. In connection with registrations pursuant to Section 4.1 or Section 4.2
hereof, the Company shall pay all of the costs and expenses incurred in connection with the registrations thereunder (the “Registration
Expenses”), including (a) all registration and filing fees and expenses, including, without limitation, those related
to filings with the SEC, (b) all fees and expenses of compliance with state securities or blue sky laws (including reasonable
fees and disbursements of counsel in connection with blue sky qualifications of the Registrable Securities), (c) all reasonable
processing, duplicating and printing expenses, including expenses of printing prospectuses reasonably requested by any Holder,
(d) all of the Company’s internal expenses (including, without limitation, all salaries and expenses of its officers
and employees performing legal or accounting duties, the expense of any liability insurance and the expense of any annual audit
or quarterly review), (e) all fees and expenses incurred in connection with listing the Registrable Securities for trading
on a national securities exchange, (f) all fees and expenses in connection with the preparation of the Registration Statement
and related documents covering the Registrable Securities, (g) all fees and expenses, if any, incurred with respect to any
filing with FINRA, (h)  the cost of providing any CUSIP or other identification numbers for the Registrable Securities, (i)
all fees and expenses of any special experts retained by the Company in connection with such registration, (j) any documented
out-of-pocket expenses of the underwriter(s) incurred with the approval of the Company, (k) all fees and expenses and disbursements
of counsel for the Company and fees and expenses for independent certified public accountants retained by the Company (including,
without limitation, the expenses of any comfort letters or costs associated with the delivery by independent certified public
accountants of a comfort letter or comfort letters requested) and (l)  all reasonable fees and expenses of one (1) counsel
for the Holders per registration. Other than as provided in the foregoing sentence, the Company shall have no obligation to pay
any out-of-pocket expenses of the Holders relating to the registrations effected pursuant to this Agreement, including the fees
and expenses of any counsel to the Holders. Each Holder shall be responsible for the payment of any brokerage and sales commissions,
underwriting discounts and commissions, additional fees and disbursements of such Investor’s counsel, accountants and other
advisors, and any transfer taxes relating to the sale or disposition of the Registrable Securities by such Holder pursuant to
this Agreement. The obligation of the Company to bear the expenses described in this Section 4.3 shall apply irrespective
of whether any sales of Registrable Securities ultimately take place.

 

Section 4.4
Registration Procedures. In the case of each registration effected by the Company pursuant to this Agreement, the Company
shall keep each Holder advised in writing as to the initiation of each registration and as to the completion thereof. In connection
with any such registration:

 

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(a)          The
Company will (i) promptly prepare and file with the SEC such amendments to each Registration Statement as may be necessary
to keep such Registration Statement effective for as long as such registration is required to remain effective pursuant to the
terms hereof, (ii) cause the prospectus to be supplemented by any required prospectus supplement, and, as so supplemented,
to be filed pursuant to Rule 424 under the Securities Act, (iii)  ensure that each Registration Statement (including
any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case
of prospectuses, in the light of the circumstances in which they were made) not misleading and (iv) comply with the provisions
of the Securities Act applicable to it with respect to the disposition of all Registrable Securities covered by such Registration
Statement during the applicable period in accordance with the intended methods of disposition by the Holders set forth in such
Registration Statement or supplement to the prospectus. In the case of amendments and supplements to a Registration Statement
which are required to be filed pursuant to this Agreement (including pursuant to this Section 4.4(a)) by reason of the
Company filing a report on Form 10-Q, Form 10-K or Form 8-K or any analogous report under the Exchange Act, the Company shall
have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements
with the SEC on the same day on which the Exchange Act report is filed which created the requirement for the Company to amend
or supplement such Registration Statement. By 9:30 a.m. New York City time on the date following the date any Registration statement
or any post-effective amendment has become effective, the Company shall file with the SEC in accordance with Rule 424 under the
Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement.

 

(b)          The
Company will, at least ten (10) Business Days prior to filing a Registration Statement or at least five (5) Business
Days prior to filing a prospectus or any amendment or supplement to such Registration Statement or prospectus, furnish to (i) each
Holder of Registrable Securities covered by such Registration Statement, (ii) Holders’ counsel and (iii) each
underwriter of the Registrable Securities covered by such Registration Statement, copies of such Registration Statement and each
amendment or supplement as proposed to be filed, together with any exhibits thereto, which documents will be subject to reasonable
review and comment by each of the foregoing Persons within five (5) Business days after delivery, and thereafter, furnish
to such Holders, Holders’ counsel and the underwriter(s), if any, such number of copies of such Registration Statement,
each amendment and supplement thereto (in each case including all exhibits thereto and documents incorporated by reference therein),
the prospectus included in such Registration Statement (including each preliminary prospectus) and such other documents or information
as such Holder, Holders’ counsel or the underwriter(s) may reasonably request in order to facilitate the disposition of
the Registrable Securities in accordance with the plan of distribution set forth in the prospectus included in the Registration
Statement; provided, however, that notwithstanding the foregoing, if the Company intends to file any prospectus,
prospectus supplement or prospectus sticker that does not make any material changes in the documents already filed, then Holders’
counsel will be afforded such opportunity to review such documents prior to filing consistent with the time constraints involved
in filing such document, but in any event no less than one (1) Business Day.

 

(c)          The
Company will promptly notify each Holder of any stop order issued or threatened by the SEC and, if entered, use reasonable best
efforts to prevent the entry of such stop order or to remove it as soon as reasonably possible.

 

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(d)          On
or prior to the date on which the Registration Statement is declared effective, the Company shall use reasonable best efforts
to register or qualify such Registrable Securities under any applicable securities or blue sky laws of such jurisdictions and
do any and all other lawful acts and things which may be reasonably necessary or advisable to enable the Holders to consummate
the disposition in such jurisdictions of such Registrable Securities, and use commercially reasonable efforts to keep each such
registration or qualification (or exemption therefrom) effective during the period which the Registration Statement is required
to be kept effective; provided that the Company will not be required to (i) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this paragraph (d), (ii) subject itself to taxation
in any such jurisdiction or (iii) consent to general service of process in any such jurisdiction.

 

(e)          The
Company will notify each Holder, Holders’ counsel and the underwriter(s) promptly in writing (provided that in no event
shall such notice contain any material, nonpublic information), (i) when a prospectus or any prospectus supplement or post-effective
amendment has been filed and, with respect to a Registration Statement or any post-effective amendment, when the same has become
effective, (ii) of any request by the SEC or any other federal or state governmental authority for amendments or supplements
to a Registration Statement or prospectus or for additional information to be included in any Registration Statement or prospectus
or otherwise, (iii) of the issuance by any state securities commission or other regulatory authority of any order suspending
the qualification or exemption from qualification of any of the Registrable Securities under state securities or blue sky laws
or the initiation of any proceedings for that purpose, and (iv) of the happening of any event that requires the making of
any changes in a Registration Statement or related prospectus or any document incorporated or deemed to be incorporated by reference
therein so that they will not contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements in the Registration Statement and prospectus not misleading in light of the
circumstances in which they were made; and, as promptly as practicable thereafter, prepare and file with the SEC and furnish a
supplement or amendment to such prospectus so that, as thereafter deliverable to the purchasers of such Registrable Securities,
such prospectus will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. Each Holder hereby agrees to keep
any proper disclosures under subsection (iv) above confidential until such time as a supplement or amendment is filed.

 

(f)          The
Company will furnish customary closing certificates and other deliverables to the underwriter(s) and the Holders and enter into
customary agreements satisfactory to the Company (including, if applicable, an underwriting agreement in customary form) and take
such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable Securities.

 

(g)          The
Company will make available for inspection by any underwriter participating in any disposition pursuant to a Registration Statement,
and any attorney, accountant or other agent retained by any such seller or underwriter (in each case after reasonable prior notice
and at reasonable times during normal business hours and without unnecessary interruption of the Company’s business or operations),
all financial and other records, pertinent corporate documents and properties of the Company, and cause the Company’s officers,
directors, employees and independent accountants to supply all information reasonably requested by any such seller, underwriter,
attorney, accountant or agent in connection with the Registration Statement.

 

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(h)          The
Company, during the period when the prospectus is required to be delivered under the Securities Act, promptly will file all documents
required to be filed with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act.

 

(i)          The
Company shall use reasonable best efforts to cause all Registrable Securities registered pursuant to the terms hereof to be listed
on the Exchange on which the Common Stock of the Company is then listed.

 

(j)          The
Company shall use commercially reasonable efforts to cooperate and assist in obtaining of all necessary approvals from FINRA,
if any.

 

(k)          The
Company shall provide a transfer agent and registrar for the Registrable Securities not later than the effective date of such
Registration Statement.

 

(l)          If
requested, the Company shall furnish to each Holder a copy of all documents filed with and all correspondence from or to the SEC
in connection with the offering of Registrable Securities.

 

(m)        The
Company otherwise shall use its reasonable best efforts to comply with all applicable rules and regulations of the SEC.

 

(n)          The
Company shall furnish to any requesting underwriter in an Underwritten Offering, addressed to such underwriter, (i) an opinion
of the Company’s counsel (which may be the Company’s General Counsel), dated the date of closing of the sale of any
Registrable Securities thereunder, as well as a consent to be named in the Registration Statement or any prospectus thereto, and
(ii) comfort letters and consent to be named in the Registration Statement or any prospectus relating thereto signed by the
Company’s independent public accountants who have examined and reported on the Company’s financial statements included
in the Registration Statement, in each case covering substantially the same matters with respect to the Registration Statement
(and the prospectus included therein) and (in the case of the accountants’ comfort letters) with respect to events subsequent
to the date of the financial statements, as are customarily covered in opinions of issuer’s counsel and in accountants’
comfort letters delivered to the underwriters in underwritten public offerings of securities, to the extent that the Company is
required to deliver or cause the delivery of such opinion or comfort letters to the underwriters in an Underwritten Offering.

 

(o)          In
connection with the Required Registration, the Company shall cause there to occur Full Cooperation.

 

(p)          The
Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the Securities Act) covering a twelve-month period beginning not later than the first day of the Company's fiscal
quarter next following the date any Registration Statement is declared effective.

 

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(q)          Neither
the Company nor any subsidiary or affiliate thereof shall identify any Holder as an underwriter in any public disclosure or filing
with the SEC or any Exchange.

 

(r)          The
Company shall hold in confidence and not make any disclosure of information concerning a Holder provided to the Company unless
(i) disclosure of such information is reasonably determined by the Company to be necessary to comply with federal or state securities
laws, (ii) the disclosure of such information is reasonably determined by the Company to be necessary to avoid or correct a misstatement
or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other final,
non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally
available to the public other than by disclosure in violation of this Agreement or any other agreement. The Company agrees that
it shall, upon learning that disclosure of such information concerning a Holder is sought in or by a court or governmental body
of competent jurisdiction or through other means, give prompt written notice to such Holder and allow such Holder, at the Holder's
expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

 

For purposes
of Section 4.4(a), the period of distribution of Registrable Securities in a firm commitment underwritten public offering
shall be deemed to extend until each underwriter has completed the distribution of all securities purchased by it, and the period
of distribution of Registrable Securities in any other registration shall be deemed to extend until the termination of the Effectiveness
Period.

 

Section 4.5
Holders’ Obligations. The Company may require each Holder to promptly, but in no event later than five (5) Business
Days after a proper request, furnish in writing to the Company such information regarding the distribution of the Registrable
Securities as the Company may from time to time reasonably request and such other information as may be legally required in connection
with such registration, including all such information as may be requested by the SEC. Each Holder agrees that, notwithstanding
the provisions of Section 4.6 hereof, upon receipt of any notice from the Company of the happening of any event of the
kind described in Section 4.4(e) hereof, such Holder will forthwith discontinue disposition of Registrable Securities pursuant
to the Registration Statement covering such Registrable Securities until such Holder’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 4.4(e) hereof, and, if so directed by the Company, such Holder will deliver
to the Company all copies, other than permanent file copies then in such Holder’s possession and retained solely in accordance
with record retention policies then-applicable to such Holder, of the most recent prospectus covering such Registrable Securities
at the time of receipt of such notice. In the event the Company shall give such notice, the Company shall extend the period during
which such Registration Statement shall be maintained effective by the number of days during the period from and including the
date of the giving of notice pursuant to Section 4.4(f) hereof to the date when the Company shall make available to the
Holders a prospectus supplemented or amended to conform with the requirements of Section 4.4(e) hereof. Notwithstanding
anything to the contrary, the Company shall, to the extent that such action is not in violation of Law, cause
its transfer agent to deliver unlegended shares of Common Stock to a transferee of a Holder in accordance with the terms of this
Agreement in connection with any sale of Registrable Securities with respect to which a Holder has entered into a contract for
sale prior to the Holder's receipt of a notice from the Company of the happening of any event of the kind described in Section
4.4(e) and for which the Holder has not yet settled.

 

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Section 4.6
Blackout Provisions.

 

(a)          The
Company shall have the right, but not the obligation, to postpone the filing of the Registration Statement or to suspend the use
of the Registration Statement following the effectiveness of the Registration Statement (and the filings with any international,
federal or state securities commissions), if a Suspension Event (as defined below) occurs. If the Company elects to suspend the
effectiveness and/or use of the Registration Statement following the occurrence of a Suspension Event, the Company, by written
notice, email transmission or such other means that the Company reasonably believes to be a reliable means of communication (a
“Suspension Notice”), shall notify the Holders that the effectiveness of the Registration Statement has been
suspended and shall direct the Holders to suspend sales of the Registrable Securities pursuant to the Registration Statement until
the Suspension Event has ended (provided that in no event shall such notice to any
Holder contain any material, nonpublic information, unless such Holder requested such information or has at such time an employee
designated as a director on the Board). A Suspension Event shall be deemed to have occurred if: (i) the Company is actively
pursuing an underwritten primary offering of equity securities; (ii) the Company in good faith determined that (A) the offer or
sale of any Registrable Securities would materially impede, delay or interfere with any proposed financing, offer or sale of securities,
acquisition, corporate reorganization or other significant transaction involving the Company; (B) after the advice of counsel,
sale of Registrable Securities pursuant to the Registration Statement would require disclosure of non-public material information
not otherwise required to be disclosed under applicable law; and (C) (x) the Company has a bona fide business purposes for preserving
the confidentiality of such transaction, (y) disclosure would have a material adverse effect on the Company or the Company’s
ability to consummate such transaction, or (z) disclosure would render the Company unable to comply with SEC requirements, in
each case under circumstances that would make it impractical or inadvisable to cause the Registration Statement (or such filings)
to become effective or to promptly amend or supplement the Registration Statement on a post-effective basis, as applicable; or
(iii) the Company shall have determined in good faith, after the advice of counsel, that it is required by law, rule or regulation
or that it is in the best interests of the Company to supplement the Registration Statement or file a post-effective amendment
to the Registration Statement in order to incorporate information into the Registration Statement for the purpose of (1) including
in the Registration Statement any prospectus required under Section 10(a)(3) of the Securities Act; (2) reflecting in the prospectus
included in the Registration Statement any facts or events arising after the effective date of the Registration Statement (or
of the most-recent post-effective amendment) that, individually or in the aggregate, represents a fundamental change in the information
set forth therein; or (3) including in the prospectus included in the Registration Statement any material information with respect
to the plan of distribution not disclosed in the Registration Statement or any material change to such information. Upon the occurrence
of any Suspension Event, the Company shall use its commercially reasonable efforts to cause the Registration Statement to become
effective or to promptly amend or supplement the Registration Statement or to take such action as is necessary to make resumed
use of the Registration Statement compatible with the Company’s best interests, as applicable, so as to permit the Holders
to resume sales of the Registrable Securities as soon as practicable. In no event shall the Company be permitted to suspend the
use of a Registration Statement for more than thirty (30) consecutive days or for more than ninety (90) days in any 12 month period
and the first day of any such suspension must be at least five (5) days after the last day of any prior suspension (each,
an "Allowable Suspension Period"), except, but nonetheless still requiring the payment of Additional Shares pursuant
to Section 4.1(c), as a result of a refusal by the SEC to declare any post-effective amendment to the Registration Statement
effective after the Company has used all commercially reasonable efforts to cause such post-effective amendment to be declared
effective, in which case the Company shall terminate the suspension of the use of the Registration Statement immediately following
the effective date of the post-effective amendment.

 

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(b)          If
and when the Company gives a Suspension Notice to the Holders to suspend sales of the Registrable Securities following a Suspension
Event, the Holders shall not effect any sales of the Registrable Securities pursuant to such Registration Statement (or such filings)
at any time after it has received a Suspension Notice from the Company and prior to receipt of an End of Suspension Notice (as
defined below). If so directed by the Company, each Holder will deliver to the Company (at the expense of the Company) all copies
other than permanent file copies then in such Holder’s possession of the Prospectus covering the Registrable Securities
(the “Prospectus”) at the time of receipt of the Suspension Notice. The Holders may recommence effecting sales
of the Registrable Securities pursuant to the Registration Statement (or such filings) upon the delivery by the Company of notice
that the Suspension Event or its potential effects are no longer continuing (an “End of Suspension Notice”),
which End of Suspension Notice shall be given by the Company to the Holders in the same manner as the Suspension Notice promptly
following the conclusion of any Suspension Event and its effect. Notwithstanding anything to the contrary, the Company shall,
to the extent that such action is not in violation of Law, cause its transfer agent to deliver
unlegended shares of Common Stock to a transferee of a Holder in accordance with the terms of this Agreement in connection with
any sale of Registrable Securities with respect to which a Holder has entered into a contract for sale prior to the Holder's receipt
of a Suspension Notice from the Company and for which the Holder has not yet settled.

 

(c)          If
all reports required to be filed by the Company pursuant to the Exchange Act have not been filed by the required date taking into
account any permissible extension, upon written notice thereof by the Company to the Holders, but
nonetheless still requiring the payment of Additional Shares pursuant to Section 4.1(c), the rights of the Holders to offer,
sell or distribute any Registrable Securities pursuant to any Registration Statement or to require the Company to take action
with respect to the registration or sale of any Registrable Securities pursuant to any Registration Statement shall be suspended
until the date on which the Company has filed such reports, and the Company shall notify the Holders in writing as promptly as
practicable when such suspension is no longer required.

 

(d)          If
the Company shall take any action pursuant to clause (ii) of Section 4.6(a) with respect to any participating
Holder in a period during which the Company shall be required to cause a Registration Statement to remain effective under the
Securities Act and the prospectus to remain current, such period shall be extended for such Person by one (1) day beyond
the end of such period for each day that, pursuant to Section 4.6(a), the Company shall require such Person to refrain
from disposing of Registrable Securities owned by such Person.

 

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Section 4.7
Exchange Act Reports. The Company will use its reasonable best efforts to timely file with the SEC such information as
the SEC may require under Section 13(a) or Section 15(d) of the Exchange Act, and the Company shall use its reasonable
best efforts to take all action as may be required as a condition to the availability of Rule 144 or Rule 144A under the Securities
Act with respect to its Common Stock. The Company shall furnish to any holder of Registrable Securities forthwith upon request
such reports and documents as a holder may reasonably request in availing itself of any rule or regulation of the SEC allowing
a holder to sell any such Registrable Securities without registration to the extent that such reports or documents are not publicly
available on the SEC’s Electronic Data Gathering, Analysis and Retrieval system or any successor system thereto. Certificates
evidencing Registrable Securities shall not contain any legend at such time as a Holder has provided reasonable evidence to the
Company (including any customary broker’s or selling stockholder’s letters but expressly excluding an opinion of counsel
other than with respect to clauses (d) or (e) below), that (a) there has been a sale of such Registrable Securities
pursuant to an effective registration statement, (b) there has been a sale of such Registrable Securities pursuant to Rule
144 (assuming the transferor is not an affiliate of the Company), (c) such Registrable Securities are then eligible for sale
under Rule 144(b)(i), (d) in connection with a sale, assignment or other transfer (other than under Rule 144), upon request
of the Company, such Holder provides the Company with an opinion of counsel to such Holder, in a reasonably acceptable form, to
the effect that such sale, assignment or transfer of the Registrable Securities may be made without registration under the applicable
requirements of the Securities Act or (e) such legend is not required under applicable requirements of the Securities Act
(including controlling judicial interpretations and pronouncements issued by the SEC). Following such time as restrictive legends
are not required to be placed on certificates representing Registrable Securities pursuant to the preceding sentence, the Company
will, no later than three (3) Business Days following the delivery by a Holder to the Company or the Company’s transfer
agent of a certificate representing Registrable Securities containing a restrictive legend and the foregoing evidence (and opinion
if applicable), deliver or cause to be delivered to such Holder a certificate representing such Registrable Securities that is
free from all restrictive and other legends or credit the balance account of such Holder’s or such Holder’s nominee
with DTC (if DTC is then offered by the Company and its transfer agent) with a number of shares of Common Stock equal to the number
of shares of Common Stock represented by the certificate so delivered by such Holder.

 

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Section 4.8
Indemnification.

 

(a)          Indemnification
by the Company. The Company agrees, notwithstanding the termination of this Agreement, to indemnify and hold harmless, to
the fullest extent permitted by law, each Holder and each of its managers, members, managing members, general and limited partners,
officers, directors, employees and agents, and each Person, if any, who controls such Holder within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act, together with the managers, members, managing members, general and
limited partners, officers, directors, employees and agents of such controlling Person (each, a “Controlling Person”),
from and against any and all losses, claims, damages, judgments, fines, penalties, charges, settlement amounts (only if the Company
consented in writing to the settlement, which consent shall not be unreasonably withheld or delayed), liabilities, reasonable
attorneys’ fees, costs and expenses of investigating and defending any such claim (collectively, “Damages”)
and any action in respect thereof to which such Holder, its managers, members, managing members, general and limited partners,
officers, directors, employees and agents, and any such Controlling Persons may become subject to under the Securities Act or
otherwise, but only insofar as such Damages (or proceedings in respect thereof) arise out of, or are based upon, any untrue statement
or alleged untrue statement of a material fact contained in any Registration Statement or prospectus of the Company (or any amendment
or supplement thereto) or any preliminary prospectus of the Company, or arise
out of, or are based upon, any omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances in which they were made, except insofar
as the same are based upon information furnished in writing to the Company by such Holder or any of its managers, members, managing
members, general partners, officers, directors, employees, agents and Controlling Persons expressly for use therein, and, consistent
with and subject to the foregoing, shall reimburse such Holder, its managers, members, managing members, general and limited partners,
officers, directors, employees and agents, and each such Controlling Person for any legal and other expenses reasonably incurred
by such Holder, its managers, members, managing members, general and limited partners, officers, directors, employees and agents,
or any such Controlling Person in investigating or defending or preparing to defend against any such Damages or proceedings. In
addition to the indemnity contained herein, the Company will reimburse each Holder for its reasonable out-of-pocket legal and
other expenses (including the reasonable out-of-pocket cost of any investigation, preparation and travel in connection therewith)
as incurred in connection therewith, as promptly as practicable after such expenses are incurred and invoiced.

 

(b)          Indemnification
by the Holder. The Holders agree, severally and not jointly, to indemnify and hold harmless the Company, its officers, directors,
employees and agents and each Person, if any, who controls the Company within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act, together with the managers, members, managing members, general and limited partners,
officers, directors, employees and agents of such controlling Person, to the same extent as the foregoing indemnity from the Company
to the Holders, but only with respect to information related to the Holders, or their plan of distribution, furnished in writing
by the Holders or any of their managers, members, managing members, general partners, officers, directors, employees, agents and
Controlling Persons to the Company expressly for use in any Registration Statement or prospectus, or any amendment or supplement
thereto, or any preliminary prospectus. No Holder shall be required to indemnify any Person pursuant to this Section 4.8(b)
for any amount in excess of the net proceeds received by such Holder from the sale of the Registrable Securities sold for
the account of such Holder.

 

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(c)          Conduct
of Indemnification Proceedings. Promptly after receipt by any Person (an “Indemnified Party”) of notice
of any claim or the commencement of any action in respect of which indemnity may be sought pursuant to Section 4.8(a)
or Section 4.8(b), the Indemnified Party shall, if a claim in respect thereof is to be made against the Person
against whom such indemnity may be sought (an “Indemnifying Party”), notify the Indemnifying Party in writing
of the claim or the commencement of such action; provided, that the failure to notify the Indemnifying Party shall not
relieve it from any liability that it may have to an Indemnified Party except to the extent of any actual prejudice resulting
therefrom. If any such claim or action shall be brought against an Indemnified Party, and it shall notify the Indemnifying Party
thereof, the Indemnifying Party shall be entitled to participate therein, and, to the extent that it wishes, jointly with any
other similarly notified Indemnifying Party, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified
Party. After notice from the Indemnifying Party to the Indemnified Party of its election to assume the defense of such claim or
action, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or other expenses subsequently incurred
by the Indemnified Party in connection with the defense thereof; provided, that the Indemnified Party shall have the right
to employ separate counsel to represent the Indemnified Party and its Controlling Persons who may be subject to liability arising
out of any claim in respect of which indemnity may be sought by the Indemnified Party against the Indemnifying Party, but the
fees and expenses of such counsel shall be for the account of such Indemnified Party unless (i) the Indemnifying Party and
the Indemnified Party shall have mutually agreed to the retention of, and reimbursement of fees for, such counsel or (ii) in
the reasonable opinion of counsel to such Indemnified Party representation of both parties by the same counsel would be inappropriate
due to actual or potential conflicts of interest between them, it being understood, however, that the Indemnifying Party shall
not, in connection with any one such claim or action or separate but substantially similar or related claims or actions in the
same jurisdiction arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than
one separate firm of attorneys (together with appropriate local counsel) at any time for all Indemnified Parties. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any claim or pending or threatened
proceeding in respect of which the Indemnified Party is or would reasonably have been a party and indemnity would reasonably have
been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified
Party from all liability arising out of such claim or proceeding. Whether or not the defense of any claim or action is assumed
by the Indemnifying Party, such Indemnifying Party will not be subject to any liability for any settlement made without its written
consent.

 

(d)          Contribution.
To the extent any indemnification by an Indemnifying Party is prohibited or limited by law, the Indemnifying Party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under this Section 4.8 to the
fullest extent permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person
is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such
sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net
proceeds received by such seller from the sale of such Registrable Securities pursuant to such Registration Statement.

 

Section 4.9
No Inconsistent Agreements. The Company shall not hereafter enter into any agreement with respect to any of its securities
(including any registration or similar agreement) which is inconsistent with or violates the material rights granted to the Holders
in this Agreement.

 

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Section 4.10
Lock-Up Agreements. Each of the Holders and the Company agrees that, in connection with an Underwritten Offering in respect
of which Registrable Securities are being sold, or in connection with any other public offering of Common Stock by the Company,
if requested by the underwriter(s), it will enter into customary “lock-up” agreements pursuant to which it will agree
not to, directly or indirectly, sell, offer to sell, grant any option for the sale of, or otherwise dispose of, any Common Stock
or any securities convertible or exchangeable into Common Stock (subject to customary exceptions), for a period not to exceed
ninety (90) days from the effective date of the Registration Statement pertaining to such Registrable Securities or from
such other date as may be requested by the underwriter(s). The Company further agrees that, in connection with an Underwritten
Offering in respect of which Registrable Securities are being sold, if requested by the managing underwriter(s), it will exercise
its best efforts to obtain agreements (in the underwriters’ customary form) from its directors and executive officers not
to, directly or indirectly, sell, offer to sell, grant any option for the sale of, or otherwise dispose of, any Common Stock or
any securities convertible or exchangeable into Common Stock (subject to customary exceptions), for a period not to exceed ninety
(90) days from the effective date of the Registration Statement pertaining to such Registrable Securities or from such other
date as may be requested by the underwriter(s).

 

Section 4.11
Termination of Registration Rights. The rights granted under this Article IV shall terminate on the termination
of the Effectiveness Period; provided, however, that the indemnification provisions set forth in Section 4.8
shall survive such termination.

 

Section 4.12
Assignment; Binding Effect. The rights and obligations provided in this Article IV (but no other rights under
this Agreement) may be assigned in whole or in part by any Holder to any transferee of Registrable Securities (each, a “Permitted
Transferee”) without the consent of the Company or any other Holder. Such assignment shall be effective upon receipt
by the Company of (a) written notice from the Holder certifying that the transferee is a Permitted Transferee, stating the
name and address of the Permitted Transferee and identifying the amount of Registrable Securities with respect to which the rights
under this Agreement are being transferred, and (b) a written agreement from the Permitted Transferee to be bound by all
of the terms of this Article IV as a “Holder.” Upon receipt of the documents referenced in clauses (a) and
(b) of this Section 4.12, the Permitted Transferee shall thereafter be deemed to be a “Holder” for
all purposes of this Article IV. Except as set forth in this Section 4.12, the rights and obligations provided
in this Article IV may not be assigned by any party hereto without the prior written consent of each of the other parties
hereto.

 

ARTICLE
V

COVENANTS

 

Section 5.1
Standstill.

 

(a)          The
Investors hereby agree that from the Closing until the earliest of (i) such time as the Investors and their Affiliates no
longer collectively own at least four and nine-tenths percent (4.9%) of the outstanding Common Stock, (ii) the fourth (4th)
anniversary hereof or (iii) a Change of Control of the Company, without the prior written approval of the Company, neither
the Investors nor any of its Affiliates will, directly or indirectly:

 

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(i)          acquire,
offer or propose to acquire or agree to acquire, Beneficial Ownership of any Voting Securities, other than Voting Securities acquired
(A) as a result of the exercise of any rights or obligations set forth in the Standby Purchase Agreement or this Agreement, (B)
pursuant to a stock split, stock dividend, recapitalization, reclassification or similar transaction, (C) directly from the Company,
or (D) to maintain their aggregate percentage interest in the Company’s outstanding Common Stock; provided, however, that
the Investor shall not be permitted to acquire, offer or propose to acquire or agree to acquire, Beneficial Ownership of any Voting
Securities to account for the dilutive effect of any issuance of equity securities up
to a maximum of the 4,329 shares of Common Stock authorized for issuance under
the Company’s 2013 Equity Incentive Plan as of the date hereof;

 

(ii)         enter
into or agree, offer, propose or seek (whether publicly or otherwise) to enter into, or otherwise be involved in or part of, any
acquisition transaction, including a proposed negotiated private sale of its shares of Common Stock to a single purchaser or a
“group” as defined in Section 13(d) of the Exchange Act, merger or other business combination relating to all or part
of the Company or any of its subsidiaries or any acquisition transaction for all or part of the assets of the Company or any of
its subsidiaries or any of their respective businesses; provided, however, that negotiated
private sales of shares of Common Stock to a single purchaser or a “group” will be permitted if the purchasing party
agrees in writing to be bound by the provisions of this Section 5.1;

 

(iii)        other
than a “solicitation” of a “proxy” (as such terms are defined under Regulation 14A under the Exchange
Act, disregarding clause (iv) of Rule 14a-1(1)(2) and including any otherwise exempt solicitation pursuant to Rule 14a-2(b))
seeking approval of the election to the Board solely with respect to any of the Investor Nominated Directors permitted by the
terms hereof to serve on such Board, make, or in any way participate in, any such “solicitation” of “proxies”
to vote, or seek to advise or influence any person or entity with respect to the voting election of any director to the Board;

 

(iv)         call
or seek to call a meeting of the Common Stockholders of the Company or any of the Company’s subsidiaries or initiate any
stockholder proposal for action by the Common Stockholders of the Company, form, join or in any way participate in a “group”
(within the meaning of Section 13(d)(3) of the Exchange Act and the rules and regulations thereunder) with respect to any
Voting Securities;

 

(v)          deposit
any Securities of the Company into a voting trust unless such voting trust is bound
by the provisions of this Section 5.1, or subject the Securities of the Company to any agreement or arrangement
with respect to the voting of such Securities, or other agreement or arrangement having similar effect
unless such agreement or arrangement conforms to the provisions of this Section 5.1;

 

(vi)         seek
representation on the Board or a change in the composition of the Board or number of directors elected by the holders of Common
Stock or a change in the number of such directors who represent the Investor, other than as expressly permitted pursuant to this
Agreement; and

 

(vii)        bring
any action or otherwise act to contest the validity of this Section 5.1;

 

    	33

    	 

    

 

provided, that nothing
in clauses (ii), (iii), (iv) or (vi) of this Section 5.1(a) shall apply to the Investor Nominated Director(s)
solely in his or her capacity as a director of the Company or to actions taken by the Investors or any of their Affiliates to
prepare the Investor Nominated Directors to act in such capacity.

 

(b)          The
limitations provided in Section 5.1(a) shall, upon the occurrence of any of the following events, immediately be suspended
until the expiration of the time period set forth below in this Section 5.1(b), but only so long as the Investors
or any of their Affiliates did not directly or indirectly assist, facilitate, encourage or participate in any such events:

 

(i)          on
the commencement (as defined in Rule 14d-2 of the Exchange Act) by any Person of a tender or exchange offer seeking to acquire
Beneficial Ownership of fifty percent (50%) or more of the outstanding shares of Voting Securities of the Company;

 

(ii)         on
the decision by the Board or a duly constituted committee of the Board (a) to solicit one or more proposals for a transaction
that, if consummated, would result in a Change of Control or (b) to pursue discussions or negotiations or make diligence
materials available, with respect to an unsolicited proposal for a transaction that, if consummated, would result in a Change
of Control;

 

(iii)        on
the decision by the Board to recommend that stockholders approve any action proposed by a Person pursuant to the filing of a preliminary
proxy statement with respect to the commencement of a proxy or consent solicitation subject to Section 14 of the Exchange
Act to elect or remove any directors of the Company;

 

(iv)         on
the adoption by the Board of Directors of a plan of liquidation or dissolution; or

 

(v)          on
the occurrence of any material breach by the Company of any of its material obligations under this Agreement, which breach has
not been remedied within thirty (30) days after notice is delivered by the Investors to the Company setting forth such alleged
breach with specificity.

 

Upon (u) any withdrawal or
lapsing of any such tender or exchange offer referred to in Section 5.1(b)(i) in which such Person does not acquire
more than fifty percent (50%) of the outstanding Voting Securities of the Company, (v) the withdrawal of all pending
proposals referred in Section 5.1(b)(ii) without a Change of Control having occurred and without, or the termination
of, an agreement to effect a Change of Control, or the decision of the Board or a duly constituted committee of the Board to reject
all such proposals, (w) the abandonment by the Board or a duly constituted committee of the Board of a process to solicit
a proposal of the type referred to in Section 5.1(b)(ii) without a Change of Control having occurred and without an
agreement to effect a Change of Control, (x) the withdrawal or termination or failure of the solicitation referred to in
Section 5.1(b)(iii), (y) the termination of the plan of liquidation referenced in Section 5.1(b)(iv),
or (z) the remedy of any breach described in Section 5.1(b)(v), the limitations provided in Section 5.1(a) (except
to the extent then suspended as a result of any other event specified in this Section 5.1(b)) shall again be applicable
for so long as and only to the extent provided in this Agreement.

 

    	34

    	 

    

 

Section 5.2
No Conflicting Agreements. For so long as this Agreement remains in effect, neither the Company nor the Investors shall
enter into any stockholder agreement or arrangement of any kind with any Person with respect to any shares of Common Stock or
Capital Stock or other Securities, or otherwise act or agree to act in concert with any Person with respect to any shares of Common
Stock or Capital Stock or other Securities, to the extent such agreement, arrangement, or concerted act would controvert, or otherwise
be inconsistent in any material respect with, the provisions of this Agreement.

 

Section 5.3
Further Assurances. Each of the Investors and the Company agrees to execute and deliver all such further documents and
do all acts and things that from time to time may reasonably be required to effectively carry out or better evidence or perfect
the full intent and meaning of this ARTICLE V.

 

ARTICLE
VI

MISCELLANEOUS

 

Section 6.1
Amendment and Waiver. This Agreement may not be amended, except by an agreement in writing, executed by each of the Investors
and the Company, and compliance with any term of this Agreement may not be waived, except by an agreement in writing executed
on behalf of the party against whom the waiver is intended to be effective. The failure of any party to enforce any of the provisions
of this Agreement shall in no way be construed as a waiver of any such provision and shall not affect the right of such party
thereafter to enforce each and every provision of this Agreement in accordance with its terms.

 

Section 6.2
Severability. If any provision of this Agreement shall be declared by any court of competent jurisdiction to be illegal,
void, or otherwise unenforceable, all other provisions of this Agreement, to the extent permitted by Law, shall not be affected
and shall remain in full force and effect. Upon any such determination, the parties shall negotiate in good faith in an effort
to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

 

Section 6.3
Entire Agreement. Except as otherwise expressly set forth herein, this Agreement and the Standby Purchase Agreement, together
with the agreements and other documents and instruments referred to herein and therein, embody the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof, and supersede and preempt any prior understandings, agreements,
or representations by or among the parties, written or oral, that may have related to the subject matter hereof in any way.

 

Section 6.4
Successors and Assigns. Except as expressly set forth herein, neither this Agreement nor any of the rights or obligations
of any party under this Agreement (including any rights under Article II and Article III hereof) may be assigned, in whole or
in part (except by operation of Law), by either party without the prior written consent of the other party, and any such transfer
or attempted transfer without such consent shall be null and void; provided however, that the Investors shall be permitted to
make any such assignment to any of their Affiliates. This Agreement shall be binding upon and shall inure to the benefit of, and
be enforceable by, the parties hereto and their respective successors and permitted assigns.

 

    	35

    	 

    

 

Section 6.5
Counterparts. This Agreement may be executed in separate counterparts, each of which shall be an original and all of which,
when taken together, shall constitute one and the same agreement.

 

Section 6.6
Remedies.

 

(a)          Each
party hereto acknowledges that monetary damages would not be an adequate remedy in the event that each and every one of the covenants
or agreements in this Agreement are not performed in accordance with their terms, and it is therefore agreed that, except as set
forth in Section 2.2(c), in addition to, and without limiting any other remedy or right it may have, the non-breaching party will
have the right to an injunction, temporary restraining order, or other equitable relief in any court of competent jurisdiction
enjoining any such breach and enforcing specifically each and every one of the terms and provisions hereof. Each party hereto
agrees not to oppose the granting of such relief in the event a court determines that such a breach has occurred, and to waive
any requirement for the securing or posting of any bond in connection with such remedy.

 

(b)          Except
as otherwise set forth in Section 2.2(c) and Section 4.1(c), all rights, powers, and remedies provided under this Agreement or
otherwise available in respect hereof at Law or in equity shall be cumulative and not alternative, and the exercise or beginning
of the exercise of any thereof by any party shall not preclude the simultaneous or later exercise of any other such right, power,
or remedy by such party.

 

Section 6.7
Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally,
telecopied (upon telephonic confirmation of receipt), on the first (1st) Business Day following the date of dispatch if delivered
by a recognized next day courier service, or on the third (3rd) Business Day following the date of mailing if delivered by
registered or certified mail, return receipt requested, postage prepaid. All notices hereunder shall be delivered as set forth
below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice.

 

If to the Company:

 

Trade
Street Residential, Inc.

19950 West Country Club Drive, Suite 800

Aventura, Florida 33180

Attention: Chief Executive Officer

Facsimile: (786) 248-3679

 

With
a copy to (which shall not constitute notice):

 

Morrison
& Foerster LLP

2000 Pennsylvania, NW, Suite 6000

Washington, DC 20006-1888

Attention: John A. Good

Facsimile: (202) 785-7522

 

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If to the Investor:

 

Senator
Investment Group LP

510
Madison Ave. 

New
York, New York 10022

Attention: Evan Gartenlaub, General Counsel

 

With
a copy to (which shall not constitute notice):

 

Schulte
Roth & Zabel LLP

919
Third Avenue

New York, New York 10022

Attention:
Eleazer Klein

 

Section 6.8
Governing Law; Venue and Jurisdiction; Waiver of Jury Trial.

 

(a)          This
Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without regard to, or otherwise
giving effect to, anybody of Law or other rule that would cause or otherwise require the application of the Laws of any other
jurisdiction.

 

(b)          Any
action or proceeding against either the Company or Investor relating in any way to this Agreement shall be brought exclusively
in the United States District Court for the Southern District of New York (and the appellate courts thereto), and each of the
Company and Investor irrevocably submits to the jurisdiction of both such courts in respect of any such action or proceeding.
Any actions or proceedings to enforce a judgment issued by one of the foregoing courts may be enforced in any jurisdiction.

 

(c)          TO
THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, EACH OF THE COMPANY AND THE INVESTORS HEREBY WAIVE AND COVENANT
THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT, OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF
ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION, OR SUIT (WHETHER IN CONTRACT, TORT, OR OTHERWISE), INQUIRY, PROCEEDING, OR INVESTIGATION
ARISING OUT OF, OR BASED UPON, THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH OF THE COMPANY AND THE INVESTORS
ACKNOWLEDGE THAT IT HAS BEEN INFORMED BY THE OTHER PARTY THAT THIS SECTION 6.8(C) CONSTITUTES A MATERIAL INDUCEMENT
UPON WHICH IT IS RELYING, AND WILL RELY IN ENTERING INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. THE COMPANY
OR THE INVESTORS MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 6.8(C) WITH ANY COURT AS WRITTEN EVIDENCE OF
THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

Section 6.9
Third Party Benefits. Except pursuant to the provisions in Section 6.10 or expressly provided in this Agreement,
none of the provisions of this Agreement are for the benefit of, or shall be enforceable by, any third-party beneficiary.

 

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Section 6.10
No Recourse Against Others. All claims, causes of action (whether in contract or in tort, in law or in equity, or granted
by statute), obligations, or liabilities that may be based upon, be in respect of, arise under, out of or by reason of, be connected
with, or relate in any manner to this Agreement, or the negotiation, execution, performance or breach of this Agreement (including
any representation or warranty made in, in connection with, or as an inducement to, this Agreement), may be made only against
(and are those solely of) the entities that are expressly identified as parties in the preamble to this Agreement (the “Contracting
Parties”). No Person who is not a Contracting Party, including any and all former, current or future directors, officers,
employees, incorporators, members, general or limited partners, controlling persons, managers, management companies, equity holders,
affiliates, agents, attorneys, or representatives of, and any and all former, current or future financial advisors or lenders
to, any Contracting Party, and any and all former, current or future directors, officers, employees, incorporators, members, general
or limited partners, controlling persons, managers, management companies, equity holders, affiliates, agents, attorneys, or representatives
of, and any and all former, current or future financial advisors or lenders to, any of the foregoing, and any and all former,
current or future heirs, executors, administrators, trustees, successors or assigns of any of the foregoing (the “Non-Recourse
Parties”), shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for
any claims, causes of action, obligations or liabilities arising under, out of, in connection with, or related in any manner to
this Agreement, or the negotiation, execution, performance, or breach of this Agreement; and, to the maximum extent permitted
by Law, each Contracting Party hereby waives and releases all such claims and causes of action against any such Non-Recourse Parties.
Without limiting the foregoing, to the maximum extent permitted by Law, (a) each Contracting Party hereby waives and releases
any and all rights, claims, demands, or causes of action that may otherwise be available at law or in equity, or granted by statute,
to avoid or disregard the entity form of a Contracting Party or otherwise impose liability of a Contracting Party on any Non-Recourse
Party, whether granted by statute or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham,
single business enterprise, piercing the corporate, limited liability company or limited partnership veil, unfairness, undercapitalization,
or otherwise, in each case in connection with, or related in any manner to this Agreement, or the negotiation, execution, performance,
or breach of this Agreement; and (b) each Contracting Party disclaims any reliance upon any Non-Recourse Parties with respect
to the performance of this Agreement or any representation or warranty made in, in connection with, or as an inducement to this
Agreement.

 

Section 6.11
Interpretation. The table of contents and headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.

 

Section 6.12
Termination. Except to the extent otherwise expressly provided herein, this Agreement, and all of the rights and obligations
set forth herein, shall terminate and be of no further force or effect in the event that (a) the Investor and its Affiliates
cease to Beneficially Own any shares of Common Stock, and (b) the registration rights and obligations set forth in Article
IV (other than those set forth in Section 4.8) have terminated pursuant to Section 4.11.

 

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Section 6.13
Notices and Consents. Any notice required to be delivered pursuant to this Agreement
to any Investor may be delivered to the Adviser on behalf of such Investor and any consent or approval by any Investor pursuant
to this Agreement may be delivered by the Adviser.

 

[The remainder
of this page has been intentionally left blank.]

 

    	39

    	 

    

 

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

 

	 	TRADE STREET RESIDENTIAL, INC.
	 	 	 
	 	By:	/s/ Michael Baumann
	 	 	 
	 	Name:	Michael Baumann
	 	 	 
	 	Title:	Chief Executive Officer
	 	 	 
	 	SENATOR GLOBAL OPPORTUNITY FUND LP
	 	 	 
	 	By:	/s/ Evan Gartenlaub
	 	 	 
	 	Name:	Evan Gartenlaub
	 	 	 
	 	Title:	General Counsel
	 	 	 
	 	SENATOR GLOBAL OPPORTUNITY INTERMEDIATE FUND L.P.
	 	 	 
	 	By:	/s/ Evan Gartenlaub
	 	 	 
	 	Name:	Evan Gartenlaub
	 	 	 
	 	Title:	General Counsel

 

(Signature
Page to Stockholders Agreement)Exhibit 10.2

 

INDEMNIFICATION
AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (“Agreement”)
is made and entered into as of the 16th day of January, 2014, by and between Trade Street Residential, Inc.,
a Maryland corporation (the “Company”), and Michael Simanovsky (“Indemnitee”).

 

WHEREAS, at the request of the Company,
Indemnitee currently serves as an independent director of the Company and may, therefore, be subjected to claims, suits or proceedings
arising as a result of his or her service; and

 

WHEREAS, as an inducement to Indemnitee
to continue to serve as such independent director, the Company has agreed to indemnify and to advance expenses and costs incurred
by Indemnitee in connection with any such claims, suits or proceedings; and

 

WHEREAS, the parties by this Agreement desire
to set forth their agreement regarding indemnification and advance of expenses;

 

NOW, THEREFORE, in consideration of the
premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

Section 1.          Definitions.
For purposes of this Agreement:

 

(a)       “Applicable
Legal Rate” means a fixed rate of interest equal to the applicable federal rate for mid-term debt instruments as of the
day that it is determined that Indemnitee must repay any advanced expenses.

 

(b)       “Change
in Control” means a change in control of the Company occurring after the Effective Date of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule
or form) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or
not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control
shall be deemed to have occurred if, after the Effective Date (i) any “person” (as such term is used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of all of the
Company’s then-outstanding securities entitled to vote generally in the election of directors without the prior approval
of at least two-thirds of the members of the Board of Directors in office immediately prior to such person’s attaining such
percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other
reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of
which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority
of the Board of Directors thereafter; or (iii) at any time, a majority of the members of the Board of Directors are not individuals
(A) who were directors as of the Effective Date or (B) whose election by the Board of Directors or nomination for election by the
Company’s stockholders was approved by the affirmative vote of at least two-thirds of the directors then in office who were
directors as of the Effective Date or whose election or nomination for election was previously so approved.

 

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(c)       “Corporate
Status” means the status of a person as a present or former director, officer, employee or agent of the Company or as
a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic
corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such
person is or was serving in such capacity at the request of the Company. As a clarification and without limiting the circumstances
in which Indemnitee may be serving at the request of the Company, service by Indemnitee shall be deemed to be at the request of
the Company: (i) if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary,
employee or agent of any corporation, partnership, limited liability company, joint venture, trust or other enterprise (1) of which
a majority of the voting power or equity interest is owned directly or indirectly by the Company or (2) the management of which
is controlled directly or indirectly by the Company, or (ii) if, as a result of Indemnitee’s service to the Company
or any of its affiliated entities, Indemnitee is subject to duties by, or required to perform services for, an employee benefit
plan or its participants or beneficiaries, including as a deemed fiduciary thereof.

 

(d)       “Disinterested
Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
and/or advance of Expenses is sought by Indemnitee.

 

(e)       “Effective
Date” means the date set forth in the first paragraph of this Agreement.

 

(f)        “Expenses”
means any and all reasonable and out-of-pocket attorneys’ fees and costs, retainers, court costs, transcript costs, fees
of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery
service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments
under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in
a Proceeding. Expenses shall also include Expenses incurred in connection with any appeal resulting from any Proceeding including,
without limitation, the premium for, security for and other costs relating to any cost bond supersede as bond or other appeal bond
or its equivalent.

 

(g)       “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is,
nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar
indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim
for indemnification or advance of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel”
shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict
of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

    	2

    	 

    

 

(h)       “Proceeding”
means any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry,
administrative hearing or any other proceeding, whether brought by or in the right of the Company or otherwise and whether of a
civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature,
including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically
agreed in writing by the Company and Indemnitee. If Indemnitee reasonably believes that a given situation may lead to or culminate
in the institution of a Proceeding, such situation shall also be considered a Proceeding.

 

Section 2.          Services
by Indemnitee. Indemnitee will serve as an independent director of the Company. However, this Agreement shall not impose any
independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall
not be deemed an employment contract between the Company (or any other entity) and Indemnitee.

 

Section 3.          General.
Subject to the limitations in Section 5, the Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this
Agreement and (b) as otherwise permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided,
however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based
on Maryland law as in effect on the Effective Date. Subject to the limitations in Section 5, the rights of Indemnitee provided
in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement, including any
additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law (the “MGCL”).

 

Section 4.          Standard
for Indemnification. Subject to the limitations in Section 5, if, by reason of Indemnitee’s Corporate Status, Indemnitee
is, or is threatened to be, made a party to any Proceeding, the Company shall indemnify Indemnitee against all judgments, penalties,
fines and amounts paid in settlement and all Expenses actually and reasonably incurred by him or her or on his or her behalf in
connection with any such Proceeding unless it is established by clear and convincing evidence that (a) the act or omission of Indemnitee
was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of
active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services
or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

 

Section 5.          Certain
Limits on Indemnification. Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee shall not
be entitled to:

 

(a)       indemnification
for any loss or liability unless all of the following conditions are met: (i) Indemnitee has determined, in good faith, that
the course of conduct that caused the loss or liability was in the best interests of the Company; (ii) Indemnitee was acting
on behalf of or performing services for the Company; (iii) such loss or liability was not the result of gross negligence or
willful misconduct; and (iv) such indemnification is recoverable only out of the Company’s net assets and not from the
Company’s stockholders;

 

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(b)       indemnification
for any loss or liability arising from an alleged violation of federal or state securities laws unless one or more of the following
conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged material securities
law violations as to Indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to Indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against Indemnitee
and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for
indemnification has been advised of the position of the Securities and Exchange Commission and of the published position of any
state securities regulatory authority in which securities of the Company were offered or sold as to indemnification for violations
of securities laws;

 

(c)       indemnification
hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged to be liable to the Company;

 

(d)       indemnification
hereunder if Indemnitee is adjudged to be liable on the basis that personal benefit was improperly received in any Proceeding charging
improper personal benefit to Indemnitee, whether or not involving action in Indemnitee’s Corporate Status; or

 

(e)       indemnification
or advance of Expenses hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce
indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement,
or (ii) the Company’s charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election
of directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly
provide otherwise.

 

Section 6.          Court-Ordered
Indemnification. Subject to the limitations in Section 5(a) and (b), a court of appropriate jurisdiction, upon application
of Indemnitee and such notice as the court shall require, may order indemnification of Indemnitee by the Company in the following
circumstances:

 

(a)       if
such court determines that Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order
indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or

 

(b)       if
such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances,
whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has
been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification
as the court shall deem proper. However, indemnification with respect to any Proceeding by or in the right of the Company or in
which liability shall have been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses.

 

    	4

    	 

    

 

Section 7.          Indemnification
for Expenses of an Indemnitee Who is Wholly or Partly Successful. Subject to the limitations in Section 5, to the extent that
Indemnitee was or is, by reason of his or her Corporate Status, made a party to (or otherwise becomes a participant in) any Proceeding
and is successful, on the merits or otherwise, in the defense of such Proceeding, Indemnitee shall be indemnified for all Expenses
actually and reasonably incurred by him or her or on his or her behalf in connection therewith. If Indemnitee is not wholly successful
in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters
in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably incurred
by him or her or on his or her behalf in connection with each such claim, issue or matter, allocated on a reasonable and proportionate
basis. For purposes of this Section 7, and without limitation, the termination of any claim, issue or matter in such a Proceeding
by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

Section 8.          Advance
of Expenses for an Indemnitee. If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be,
made a party to any Proceeding, the Company shall, without requiring a preliminary determination of Indemnitee’s ultimate
entitlement to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection
with (a) such Proceeding which is initiated by a third party who is not a stockholder of the Company, or (b) such Proceeding which
is initiated by a stockholder of the Company acting in his or her capacity as such and for which a court of competent jurisdiction
specifically approves such advancement, and which relates to acts or omissions with respect to the performance of duties or services
on behalf of the Company. Such advance or advances shall be made within ten days after the receipt by the Company of a statement
or statements requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding
and may be in the form of, in the reasonable discretion of Indemnitee (but without duplication), (a) payment of such Expenses directly
to third parties on behalf of Indemnitee, (b) advancement to Indemnitee of funds in an amount sufficient to pay such Expenses or
(c) reimbursement to Indemnitee for Indemnitee’s payment of such Expenses. Such statement or statements shall reasonably
evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee
of Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Company as authorized
by law and by this Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially the form attached
hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof,
to reimburse the portion of any Expenses advanced to Indemnitee, together with the Applicable Legal Rate of interest thereon, relating
to claims, issues or matters in the Proceeding as to which it shall ultimately be established, by clear and convincing evidence,
that the standard of conduct has not been met by Indemnitee and which have not been successfully resolved as described in Section
7 of this Agreement. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the
Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section
8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s
financial ability to repay such advanced Expenses and without any requirement to post security therefor.

 

    	5

    	 

    

 

Section 9.          Indemnification
and Advance of Expenses as a Witness or Other Participant. Subject to the limitations in Section 5, to the extent that Indemnitee
is or may be, by reason of his or her Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether
instituted by the Company or any other party, and to which Indemnitee is not a party, he or she shall be advanced all reasonable
Expenses and indemnified against all Expenses actually and reasonably incurred by him or her or on his or her behalf in connection
therewith within ten days after the receipt by the Company of a statement or statements requesting any such advance or indemnification
from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably
evidence the Expenses incurred by Indemnitee.

 

Section 10.        Procedure
for Determination of Entitlement to Indemnification.

 

(a)       To
obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith
such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and
to what extent Indemnitee is entitled to indemnification. Indemnitee may submit one or more such requests from time to time and
at such time(s) as Indemnitee deems appropriate in his or her sole discretion. The officer of the Company receiving any such request
from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that
Indemnitee has requested indemnification.

 

(b)       Upon
written request by Indemnitee for indemnification pursuant to Section 10(a) above, a determination, if required by applicable law,
with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control
shall have occurred, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered
to Indemnitee, which Independent Counsel shall be selected by Indemnitee and approved by the Board of Directors in accordance with
Section 2-418(e)(2)(ii) of the MGCL, which approval will not be unreasonably withheld; or (ii) if a Change in Control shall
not have occurred, (A) by the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors or, if such
a quorum cannot be obtained, then by a majority vote of a duly authorized committee of the Board of Directors consisting solely
of one or more Disinterested Directors, (B) if Independent Counsel has been selected by the Board of Directors in accordance with
Section 2-418(e)(2)(ii) of the MGCL and approved by Indemnitee, which approval shall not be unreasonably withheld, by Independent
Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee or (C) if so directed
by a majority of the members of the Board of Directors, by the stockholders of the Company. If it is so determined that Indemnitee
is entitled to indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall
cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification,
including providing to such person, persons or entity upon reasonable advance request any documentation or information which is
not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary
to such determination in the discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B)
of this Section 10(b). Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination
shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the
Company shall indemnify and hold Indemnitee harmless therefrom.

 

    	6

    	 

    

 

(c)       The
Company shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed.

 

Section 11.        Presumptions
and Effect of Certain Proceedings.

 

(a)       In
making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such
determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request
for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of proof to overcome
that presumption in connection with the making of any determination contrary to that presumption.

 

(b)       The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea
of nolo contendere or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption
that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

 

(c)       The
knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or any other director,
trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation,
partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to
Indemnitee for purposes of determining any other right to indemnification under this Agreement.

 

Section 12.        Remedies
of Indemnitee.

 

(a)       If
(i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification
under this Agreement, (ii) advance of Expenses is not timely made pursuant to Section 8 or 9 of this Agreement, (iii) no
determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within 60 days
after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section
7 or 9 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification
pursuant to any other section of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination
has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate
court located in the State of Maryland, or in any other court of competent jurisdiction, of his or her entitlement to such indemnification
or advance of Expenses. Alternatively, Indemnitee, at his or her option, may seek an award in arbitration to be conducted by a
single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence
a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has
the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply
to a proceeding brought by Indemnitee to enforce his or her rights under Section 7 of this Agreement. Except as set forth herein,
the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration. The Company
shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

    	7

    	 

    

 

(b)       In
any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification
or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee
is not entitled to indemnification or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding or
arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company for any advances pursuant to
Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification
(as to which all rights of appeal have been exhausted or lapsed). The Company shall, to the fullest extent not prohibited by law,
be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures
and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all of the provisions of this Agreement.

 

(c)       If
a determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12,
absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification.

 

(d)       In
the event that Indemnitee is successful in seeking, pursuant to this Section 12, a judicial adjudication of or an award in arbitration
to enforce his or her rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover
from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by him or
her in such judicial adjudication or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee
is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee
in connection with such judicial adjudication or arbitration shall be appropriately prorated.

 

(e)       Interest
shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial
Proceedings Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period
(i) commencing with either the tenth day after the date on which the Company was requested to advance Expenses in accordance
with Section 8 or 9 of this Agreement or the 60th day after the date on which the Company was requested to make the
determination of entitlement to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) ending on the
date such payment is made to Indemnitee by the Company.

 

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Section 13.        Defense
of the Underlying Proceeding.

 

(a)       Indemnitee
shall notify the Company promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request
or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder
and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding.
The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right
of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend
in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only
to the extent the Company is thereby actually so prejudiced.

 

(b)       Subject
to the provisions of the last sentence of this Section 13(b) and of Section 13(c) below, the Company shall have the right to defend
Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify
Indemnitee of any such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section
13(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or
delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes
an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee
from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee,
or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 13(b) shall not apply
to a Proceeding brought by Indemnitee under Section 12 of this Agreement.

 

(c)       Notwithstanding
the provisions of Section 13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate
Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall
not be unreasonably withheld, that he or she may have separate defenses or counterclaims to assert with respect to any issue which
may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion
of counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or apparent conflict of interest
or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense
of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s
choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld, at the expense of the
Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the
Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny
or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to
retain counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably
withheld, at the expense of the Company (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with
any such matter.

 

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Section 14.        Non-Exclusivity;
Survival of Rights; Subrogation.

 

(a)       The
rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights
to which Indemnitee may at any time be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a
resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors, or otherwise.
Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of this Agreement or of any provision hereof shall
limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in
his or her Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action
or inaction is raised prior or subsequent to such amendment, alteration or repeal. No right or remedy herein conferred is intended
to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other
right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy
hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.

 

(b)       In
the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

Section 15.        Insurance.

 

(a)       The
Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed
appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by
reason of his or her Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company
to Indemnitee for any claims made against Indemnitee by reason of his or her Corporate Status. In the event of a Change in Control,
the Company shall maintain in force any and all directors and officers liability insurance policies that were maintained by the
Company immediately prior to the Change in Control for a period of six years with the insurance carrier or carriers and through
the insurance broker in place at the time of the Change in Control; provided, however, (i) if the carriers will not offer
the same policy and an expiring policy needs to be replaced, a policy substantially comparable in scope and amount shall be obtained
and (ii) if any replacement insurance carrier is necessary to obtain a policy substantially comparable in scope and amount,
such insurance carrier shall have an AM Best rating that is the same or better than the AM Best rating of existing insurance carrier;
provided, further, however, in no event shall the Company be required to expend in the aggregate in excess of 300% of the annual
premium or premiums paid by the Company for directors and officers liability insurance in effect on the date of the Change in Control.
In the event that 300% of the annual premium paid by the Company for such existing directors and officers liability insurance is
insufficient for such coverage, the Company shall spend up to that amount to purchase such lesser coverage as may be obtained with
such amount.

 

    	10

    	 

    

 

(b)       Without
in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee
arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties,
fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred
to in the previous sentence. The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect
the rights or obligations of the Company or Indemnitee under this Agreement except as expressly provided herein, and the execution
and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights or obligations of
the Company under any such insurance policies. If, at the time the Company receives notice from any source of a Proceeding to which
Indemnitee is a party or a participant (as a witness or otherwise), the Company has director and officer liability insurance in
effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in
the respective policies.

 

Section 16.        Coordination
of Payments. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or
payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment
under any insurance policy, contract, agreement or otherwise.

 

Section 17.        Contribution.
If the indemnification provided in this Agreement is unavailable in whole or in part and may not be paid to Indemnitee for any
reason, other than for failure to satisfy the standard of conduct set forth in Section 4 or due to the provisions of Section 5,
then, with respect to any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding),
to the fullest extent permissible under applicable law, the Company, in lieu of indemnifying and holding harmless Indemnitee, shall
pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses, judgments, penalties, and/or amounts
paid or to be paid in settlement, in connection with any Proceeding without requiring Indemnitee to contribute to such payment,
and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

 

Section 18.        Reports
to Stockholders. To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of
any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or
in the right of the Company with the notice of the meeting of stockholders of the Company next following the date of the payment
of any such indemnification or advance of Expenses or prior to such meeting.

 

Section 19.        Duration
of Agreement; Binding Effect.

 

(a)       This
Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a
director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary,
employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company,
joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request
of the Company and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any
rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).

 

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(b)       The
indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable
by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee
who has ceased to be a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing
member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint
venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of
the Company, and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs, devisees, executors and administrators
and other legal representatives.

 

(c)       The
Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all,
substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance
satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that
the Company would be required to perform if no such succession had taken place.

 

(d)       The
Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate,
impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the
parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof,
without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance,
Indemnitee shall not be precluded from seeking or obtaining any other relief to which he or she may be entitled. Indemnitee shall
further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions
and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges
that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives
any such requirement of such a bond or undertaking.

 

Section 20.        Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever:
(a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable
that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable
to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform
to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall be construed so as to give effect to the intent manifested thereby.

 

    	12

    	 

    

 

Section 21.        Identical
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to
be an original but all of which together shall constitute one and the same Agreement. One such counterpart signed by the party
against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

 

Section 22.        Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.

 

Section 23.        Modification
and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

Section 24.        Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed,
on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day
after the date on which it is so mailed:

 

(a)       If
to Indemnitee, to the address set forth on the signature page hereto.

 

(b)       If
to the Company, to:

 

    Trade Street Residential, Inc.

    19950 W. Country Club Drive

    Suite 800

    Aventura, Florida 33180

    Attn:  Greg Baumann

General
Counsel and Assistant Secretary

 

or to such other address as may have been furnished in writing
to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

 

Section 25.        Governing
Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland,
without regard to its conflicts of laws rules.

 

[Signature Page Follows]

 

    	13

    	 

    

 

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

 

	 	TRADE STREET RESIDENTIAL, INC.

 

	 	By: /s/ Richard Ross
	 	Name: Richard Ross
	 	Title: Chief Financial Officer and Secretary

 

	 	INDEMNITEE

 

	 	/s/ Michael Simanovsky
	 	Name: Michael Simanovsky
	 	Address: 45 Joanna Way
	 	 Shorthills, New Jersey 07078

 

[Signature Page to Indemnification Agreement]

 

    	14

    	 

    

 

EXHIBIT A

 

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES
ADVANCED

 

		To:	The Board of Directors of Trade Street Residential, Inc.

 

		Re:	Affirmation and Undertaking to Repay Expenses Advanced

 

Ladies and Gentlemen:

 

This Affirmation and Undertaking is being
provided pursuant to that certain Indemnification Agreement, dated the 16th day of January, 2014, by and between Trade Street Residential,
Inc., a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification
Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding]
(the “Proceeding”).

 

Terms used herein and not otherwise defined
shall have the meanings specified in the Indemnification Agreement.

 

I am subject to the Proceeding by reason
of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm my good faith belief
that at all times, insofar as I was involved as a director or officer of the Company, in any of the facts or events giving rise
to the Proceeding, I (1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper personal
benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to believe that
any act or omission by me was unlawful.

 

In consideration of the advance of Expenses
by the Company for reasonable attorneys’ fees and related Expenses incurred by me in connection with the Proceeding (the
“Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1)
an act or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was
the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or services
or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I
shall promptly reimburse the portion of the Advanced Expenses, together with the Applicable Legal Rate of interest thereon, relating
to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.

 

IN WITNESS WHEREOF, I have executed this
Affirmation and Undertaking on this ____ day of ____________, 20__.

 

	 	 
	 	Name: Michael Simanovsky

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