Document:

JOINDER BY AND AGREEMENT OF NEW INDEMNITOR

 

The undersigned, BLUEROCK
RESIDENTIAL GROWTH REIT, INC., a Maryland corporation and BLUEROCK RESIDENTIAL HOLDINGS, L.P., a Delaware limited partnership
(individually and collectively "New Indemnitor"), being individually and collectively the Principal referred to
in the Agreement to which this Joinder (the "New Indemnitor Joinder") is attached, intending to be legally bound
under the terms and provisions of the Guaranty and the Environmental Indemnity pursuant to the provisions of this New Indemnitor
Joinder, hereby represents and warrants to and acknowledges and agrees with Lender the following:

 

1.                
Defined Terms. All capitalized terms used in this New Indemnitor Joinder, unless defined herein, shall have
the meanings given such terms in the Agreement, and if not defined therein, then in the Original Indemnitor Joinder attached thereto.

 

2.                
Benefit to New Indemnitor. Each New Indemnitor, owning a direct and/or indirect interest in New Borrower as
a result of the Requested Actions, shall receive a substantial benefit from Lender's consent to the Requested Actions.

 

3.                
Assumption by New Indemnitor of Guaranty. From and after the Acquisition Date, New Indemnitor hereby, jointly
and severally, assumes and agrees to be liable and responsible for and bound by all of Original Indemnitor's obligations, agreements
and liabilities, including but not limited to the jury waiver and other waivers set forth therein, under the Guaranty, as amended
hereby, as fully and completely as if the New Indemnitor had originally executed and delivered such Guaranty, as
amended hereby, as the guarantor/indemnitor thereunder. New Indemnitor further agrees to pay, perform and discharge each
and every obligation of payment and performance of any guarantor/indemnitor under, pursuant to and as set forth in the Guaranty,
as amended hereby, at the time, in the manner and otherwise in all respects as therein provided. With respect to the Environmental
Indemnity Obligations Under Guaranty, the liability of New Indemnitor shall be joint and several with that of New Borrower and
shall not be limited to environmental obligations occurring from and after the Acquisition Date. From and after the date hereof,
the Guaranty is amended to provide that all references to the term "Borrower" used in the Guaranty shall mean
and refer to the New Borrower and the term "Guarantor" used in the Guaranty shall mean and refer to the New Indemnitor.

 

4.                
Assumption by New Indemnitor of Environmental Indemnity. New Indemnitor, jointly and severally, hereby assumes
and agrees to be liable and responsible for and bound by all of the Original Indemnitor's obligations, agreements and liabilities,
including but not limited to the jury waiver and other waivers set forth therein, under the Environmental Indemnity as fully and
completely as if New Indemnitor had signed such Environmental Indemnity, as amended hereby, as the indemnitor/guarantor thereunder,
including without limitation, all of those obligations, agreements and liabilities which would have been the obligations, agreements
and liabilities of Original Indemnitor, without regard to when such obligations, agreements and liabilities arise, accrue or have
arisen or accrued and without regard to the Original Indemnitor's responsibility therefore, if any. New Indemnitor further agrees
to pay, perform, and discharge each and every obligation of payment and performance of any guarantor/indemnitor under, pursuant
to and as set forth in the Environmental Indemnity, as amended hereby, at the time, in the manner and otherwise in all respects
as therein provided. The liability of New Indemnitor under this paragraph shall be joint and several with that of New Borrower.
From and after the date hereof, the Environmental Indemnity is amended to provide that all references to the term "Borrower"
used in the Environmental Indemnity shall mean and refer to the New Borrower and the term "Indemnitor" used in
the Guaranty shall mean and refer to the New Indemnitor.

 

    	 

    	 

    

 

5.                
Confirmation of Representations. By its execution hereof, New Indemnitor confirms the representations and
warranties and agrees to the covenants regarding New Indemnitor set forth in the Agreement.

 

6.                
Representations by New Indemnitor

 

a.                  
Guarantor Financial Covenants. Each New Indemnitor complies with the Guarantor Financial Covenants (as such term
is defined in the Loan Agreement).

 

b.                 
Authority. The execution and delivery of this New Indemnitor Joinder, and performance by New Indemnitor under the
New Indemnitor Joinder, the Guaranty and Environmental Indemnity will not (a) violate any provision of any law, rule, regulation,
order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to New Indemnitor or
(b) result in a breach of or constitute or cause a default under any indenture, agreement, lease or instrument to which New Indemnitor
is a party or by which the Project may be bound or affected.

 

7.                
Notices to New Indemnitor. From and after the Acquisition Date, Lender shall deliver any notices to New Indemnitor
which are required to be delivered pursuant to the Guaranty and the Environmental Indemnity, or are otherwise delivered by the
Lender thereunder at Lender's sole discretion, to the New Indemnitor at the following address:

 

	 	BLUEROCK RESIDENTIAL GROWTH REIT, INC. BLUEROCK RESIDENTIAL HOLDINGS, L.P.
	 	c/o Bluerock Real Estate, L.L.C.
	 	712 Fifth Avenue, 9th Floor
	 	New York, New York 10019
	 	Attn:Jordan Ruddy and Michael L. Konig, Esq.
	 	Facsimile: (212) 278-4220

 

All notices to be sent by New Indemnitor
to Lender under the Guaranty, the Environmental Indemnity and Loan Documents shall be sent to Lender in the manner set forth in
and at the address shown in Section 4.6 of the Agreement to which this New Indemnitor Joinder is attached.

 

8.                
Joint and Several Liability. If New Indemnitor consists of more than one person or party, the obligations
and liabilities of each such person or party shall be joint and several.

 

(REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK)

 

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The undersigned
New Indemnitor has executed and delivered this New Indemnitor Joinder to be effective as of the date of the Agreement.

  

 

	 	 	 	NEW INDEMNITOR:	 
	 	 	 	 	 	 
	
        Witnesses:

         
	 	 	BLUEROCK RESIDENTIAL GROWTH REIT, INC., 

a Maryland corporation	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	/s/ M. Brown	 	By: 	/s/ Christopher J. Vohs	 
	Print Name:  	M. Brown	 	Name: 	Christopher J. Vohs	 
	 	 	 	Title: 	Chief Accounting Officer	 
	/s/ Jordan Ruddy	 	 	 	 
	Print Name: 	Jordan Ruddy	 	 	 	 
	 	 	 	 	 	 

 

 

STATE OF New York)

) SS:

COUNTY OF New York)

 

The foregoing instrument
was acknowledged before me this __1__ day of April___, 2014, by Christopher J. Vohs, as Chief Accounting Officer,
of BLUEROCK RESIDENTIAL GROWTH REIT, INC., a Maryland corporation, on behalf of the corporation. He/She is _X__ personally
known to me or ____ produced ________________________ as identification and did not take an oath.

 

	 	 	/s/ Dale Pozzi	 
	 	 	Notary Public	 	 
	 	 	Print Name: 	Dale Pozzi	 

  

My Commission Expires: Jan. 28, 2017

 

[Notarial Seal]

 

[PROPERTY MANAGER'S SIGNATURE PAGE TO JOINDER]

 

    	 

    	 

    

 

The undersigned
New Indemnitor has executed and delivered this New Indemnitor Joinder to be effective as of the date of the Agreement.

 

	 	 	 	NEW INDEMNITOR:	 
	 	 	 	 	 	 
	
        Witnesses:

         
	 	 	
        BLUEROCK RESIDENTIAL HOLDINGS, L.P.,

         a Delaware limited partnership

         
	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	/s/ M. Brown	 	By: 	/s/ Christopher J. Vohs	 
	Print Name:  	M. Brown	 	Name: 	Christopher J. Vohs	 
	 	 	 	Title: 	Chief Accounting Officer	 
	/s/ Jordan Ruddy	 	 	 	 
	Print Name: 	Jordan Ruddy	 	 	 	 
	 	 	 	 	 	 

 

STATE OF New York)

) SS:

COUNTY OF New York)

 

The foregoing instrument
was acknowledged before me this __1__ day of April___, 2014, by Christopher J. Vohs, Chief Accounting Officer of
Bluerock Residential Growth REIT, Inc., a Maryland corporation, as general partner of BLUEROCK RESIDENTIAL HOLDINGS, L.P.,
a Delaware limited partnership, on behalf of the limited partnership. He/She is _X__ personally known to me or ____ produced
________________________ as identification and did not take an oath.

 

 

	 	 	/s/ Dale Pozzi	 
	 	 	Notary Public	 	 
	 	 	Print Name: 	Dale Pozzi	 

 

 

My Commission Expires: Jan. 28, 2017

 

[Notarial Seal]

 

    	2INDEMNITY AGREEMENT

 

 

THIS INDEMNITY AGREEMENT
(this “Agreement”) is made as of April 2, 2014, by Bluerock
residential growth reit, inc., a Maryland corporation (“REIT”), for the benefit of james
g. babb, iii (“Babb”) and r. ramin Kamfar (“Kamfar”)
(each a “Guarantor” and, together, the “Guarantors”). REIT, Babb and Kamfar are sometimes referred to together
as the “Parties.”

 

RECITALS

 

As of the date hereof,
BEMT Springhouse LLC (Delaware LLC) (“BEMT”) owns one hundred percent (100%) of the membership interests in BR Springhouse
Managing Member, LLC (Delaware LLC) (“Bluerock JV”). Bluerock JV owns seventy-five percent (75%) of the membership
interests in BR Springhouse, LLC (Delaware LLC) (“Borrower”), through an intervening entity named BR Hawthorne
Springhouse JV, LLC (Delaware LLC) (“JV Entity”), with the other twenty-five percent (25%) thereof being owned
by Hawthorne Springhouse, LLC (North Carolina LLC) (“Hawthorne LLC”). BEMT is wholly owned by Bluerock Residential
Holdings, L.P., of which the REIT is general partner and controlling owner.

 

Borrower owns that
certain property known as the “Springhouse Apartments” located in Newport News, Virginia (the “Property”).
The acquisition of the Property was financed by a loan from CWCapital LLC (Massachusetts LLC) in the original principal amount
of $23,400,000.00 (the “Loan”). The Loan is evidenced by that certain Multifamily Note (CME) made as of December 3,
2009, by Borrower (the “Note”); and secured by a Deed of Trust encumbering the Property and recorded in the City of
Newport News, Virginia; and various other assignments and agreements (collectively, the “Loan Documents”).

 

Certain obligations
of the Borrower in connection with the Loan have been guaranteed by (i) each of Babb and Kamfar pursuant to a separate Guaranty
signed by each dated December 3, 2009 (respectively, the “Babb Guaranty” and the “Kamfar Guaranty”
and, collectively, the “Guaranties”); and (ii) each of Ed Harrington, Samantha Davenport and D. Shoffner Allison
by a separate Guaranty signed by each of them dated December 3, 2009 (collectively, the “Hawthorne Guarantors”).

 

The Guarantors, the
Hawthorne Guarantors and Hawthorne Residential Partners, LLC (North Carolina LLC) (“Property Manager”) are parties
to that certain Backstop Agreement dated December 3, 2009 (the “Backstop Agreement”), pursuant to which such parties
agreed to allocate amongst themselves liability they might incur under the Guaranties or the Hawthorne Guaranties, respectively.
The Hawthorne Guarantors and Property Manager shall be referred to collectively herein as the “Hawthorne Parties.”
Since REIT now indirectly owns all of the economic interests of Bluerock JV, the Guarantors have requested (and REIT has agreed)
for REIT to indemnity Guarantors from and against any loss, claim, liability or cost incurred by the Guarantors, or any of them,
pursuant to the Guaranties of the Backstop Agreement.

 

    	 

    	 

    

 

INDEMNITY

 

In consideration of
the mutual covenants and conditions contained in this Agreement and other good and valuable consideration, the receipt, adequacy,
and sufficiency of which are hereby acknowledged, the parties agree as set forth below.

 

1.Indemnification.
REIT hereby knowingly, unconditionally and irrevocably promises to pay to Guarantors and to indemnity, defend and hold Guarantors
absolutely harmless from all liabilities, obligations, claims, damages, fees, costs and expenses, including reasonable attorneys’
fees, court costs, administrative, accounting and bookkeeping costs, and all other expenses whatsoever arising from, related to
or incurred from and after the date hereof in connection with the Loan and Guarantors’ obligations under the Guaranties and
other Loan Documents or under the Backstop Agreement (the “Indemnity Obligations”). Notwithstanding the foregoing,
to the extent an Indemnity Obligation arises wholly or primarily due to an action or omission of any Guarantor or other third party
claiming or acting by or through any Guarantor (a “Guarantor Action”), REIT shall have no Indemnity Obligation hereunder
to such Guarantor (but REIT shall remain liable to the other Guarantor unless such Guarantor is also subject to a Guarantor Action).
The Indemnity Obligations are due and payable upon written demand.

 

2.Indemnity
Obligations Not Reduced by Offset. The Indemnity Obligations and the liabilities and obligations of the Parties hereunder shall
not be reduced, discharged or released because or by reason of any existing or future offset, claim or defense of either of the
Parties or their affiliates against the other.

 

3.No Duty to
Pursue Others. The Indemnity Obligations of REIT are direct, personal and immediate obligations and not in the nature of guaranty
or surety obligations. It shall not be necessary for any Guarantor (and REIT hereby waives any right which REIT may have to require
any Guarantor), in order to enforce such payment by REIT, first to (i) institute suit or exhaust its remedies against the
Borrower, Hawthorne Guarantors or others liable on the Loan, or any other person, (ii) join the Borrower, Hawthorne Guarantors
or any others who may be liable in respect of the Indemnity Obligations in any action seeking to enforce this Agreement, or (iii) resort
to any other means of collecting the Indemnity Obligations. Guarantor shall not be required to mitigate damages or take any other
action to reduce, collect or enforce the Indemnity Obligations. Notwithstanding the foregoing, if REIT makes payment (either directly
or through reimbursement of any Guarantor) of any items for which the Hawthorne Parties (or any of them) may be liable (either
under the Backstop Agreement or otherwise), Guarantors shall assign to REIT all of their respective rights and claims relating
thereto and cooperate with REIT as and when needed in any efforts by RETI to recover sums expended by REIT from the Hawthorne Parties.

 

4.Payment of
Expenses. If REIT shall breach or fail to timely perform any provisions of this Agreement, REIT shall immediately upon demand
pay Guarantors all costs and expenses (including court costs and reasonable attorneys’ fees) incurred by Guarantors in the
enforcement hereof or the preservation of Guarantors’ rights hereunder. The covenant contained in this paragraph shall survive
the payment and performance of the Indemnity Obligations.

 

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5.Miscellaneous.

 

a.WAIVER OF JURY
TRIAL. THE PARTIES HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO
TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION HEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY
BY THE PARTIES, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY
WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE
OF THIS WAIVER BY EACH OTHER PARTY, AS APPLICABLE.

 

b.VENUE AND JURISDICTION.
IN ACCORDANCE WITH SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, THE PARTIES HEREBY CONSENT TO THE JURISDICTION
OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF NEW YORK, STATE OF NEW YORK AND IRREVOCABLY AGREE THAT ALL ACTIONS OR
PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE LITIGATED IN SUCH COURTS. THE PARTIES ACCEPT FOR THEMSELVES AND
IN CONNECTION WITH THEIR PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS AND WAIVE ANY DEFENSE
OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT.
EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO SUCH
VENUE AS BEING AN INCONVENIENT FORUM.

 

c.Governing Law.
This Agreement shall be governed by the laws of the State of New York, without regard for conflicts of laws principles or otherwise.

 

d.No Third Party
Beneficiary; Recitals Incorporated. This Agreement does not create, and shall not be construed as creating, any rights or claims
enforceable by any person or entity other than the parties hereto, it being the intention of the parties hereto that no one shall
be deemed to be a third party beneficiary of this Agreement. The recitals set forth above are incorporated into this Agreement
as if fully set forth herein.

 

e.Counterparts.
This Agreement may be executed in counterparts, each of which (when delivered) shall be the same agreement. Only one fully executed
counterpart need be produced in order to prove the execution and delivery of this Agreement. The Parties may execute this Agreement
by executing signature pages and authorizing them to be attached to the body of this Agreement.

 

f.Assignment.
All stipulations, obligations, liabilities and undertakings hereunder shall be binding upon the Parties and each of their successors,
heirs and assigns; provided, however, that no assignment shall release any Party of its obligations under this Agreement. Each
reference herein to the Parties shall be deemed to include the heirs, executors, administrators, legal representatives, successors
and assigns of the undersigned, all of whom shall be bound by the provisions of this Agreement.

 

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g.Bankruptcy.
No Party’s obligation to pay and perform in accordance with the terms of this Agreement nor any remedy for the enforcement
thereof shall be impaired, modified, changed, stayed, released or limited in any manner whatsoever by any impairment, modification,
change, release, limitation or stay of the liability of any Party or any of their estates in bankruptcy or any remedy for the enforcement
thereof, resulting from the operation of any present or future provision of the Bankruptcy Code of the United States or other statute,
state or federal, or from the decision of any court interpreting any of the same, and the Parties shall be obligated under this
Agreement as if no such impairment, stay, modification, change, release or limitation had occurred. The obligations of the Parties
hereunder shall continue to be effective or reinstated, as the case may be, if at any time any payment hereunder is rescinded or
payments of any Party’s share of the Indemnity Obligations must otherwise be returned, upon the insolvency, bankruptcy or
reorganization of any Party or otherwise, all as though such payment had not been made.

 

h.Waivers.
Each Party hereby waives notice of acceptance of this Agreement and all presentment, demand, protest, notice of protest, notice
of dishonor and notice of default of any obligation guaranteed hereby and all other suretyship defenses generally. No extension
of time, renewal, other indulgence or collateral granted by any Party or Parties to the other Party or Parties, at any time or
from time to time, will release or affect the liability of a Party hereunder in the absence of an express written agreement to
the contrary. No act, omission or delay on the part of any Party in exercising any rights hereunder or in taking any action to
collect or enforce payment or performance of any obligation guaranteed hereby shall be a waiver of any such right or release or
affect the obligations of the other Parties under this Agreement. This Agreement shall not be impaired by any bankruptcy, insolvency,
arrangement, assignment for the benefit of creditors, reorganization or other debtor relief proceedings under any federal or state
law, whether now existing or hereafter enacted. No delay on the part of any Party in exercising any rights hereunder or failure
to exercise the same shall operate as a waiver of such rights; no notice to or demand on the Parties shall be deemed to be a waiver
of the obligation of the Parties or of the right of any Party to take further action without notice or demand as provided herein;
nor in any event shall any modification or waiver of the provisions of this Agreement be effective unless in writing and executed
by the party against whom the waiver is to be enforced nor shall any such waiver be applicable except in the specific instance
for which given. Each Party waives any benefit of any statute of limitations affecting the liability hereunder or the enforcement
hereof.

 

i.Termination.
This Agreement shall survive and remain in full force and effect until the obligations under the Loan Documents have been satisfied
and no potential liability of Guarantors remains under the Guaranties and the Backstop Agreement.

 

j.Invalidity.
If any of the provisions of this Agreement, or the application thereof to any person or circumstance, shall, to any extent, be
invalid or unenforceable, the remainder of this Agreement, or the application of such provision or provisions to persons or circumstances
other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and every provision of
this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

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k.Settlement.
Settlement of any claim by any Party hereto, whether in any proceeding or not, and whether voluntary or involuntary, shall not
reduce the amount due under the terms of this Agreement except as set forth in a written agreement among the Parties.

 

l.Interpretation.
The Parties hereto agree that the terms and language of this Agreement were the result of negotiations between the Parties and,
as a result, regardless of any law to the contrary, there shall be no presumption that any ambiguities in this Agreement shall
be resolved against any Party. Any controversy over the construction of this Agreement shall be decided neutrally and without regard
to events of authorship or negotiation.

 

m.Final Agreement.
This Agreement is the final agreement of the parties hereto, all prior understandings related to the subject matter contained herein
being merged herein. The Agreement cannot be modified or amended and no right or claim hereunder may be waived orally or by course
of dealing. Any amendment, modification or waiver of right or claim can only be made if in writing executed by each of the parties
hereto.

 

[Remainder of Page
Intentionally Left Blank; Signatures on Following Page(s)]

 

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SIGNATURE PAGE TO
INDEMNITY AGREEMENT

 

	 	Bluerock residential growth reit, inc.,	 
	 	a Maryland corporation	 
	 	 	 	 
	 	By:	/s/ Michael L. Konig	 
	 	Name:	Michael L. Konig	 
	 	Title:	Chief Operating Officer, Secretary and General Counsel	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	/s/ James G. Babb, III	 
	 	James G. Babb, III	 
	 	 	 	 
	 	 	 	 
	 	/s/ R. Ramin Kamfar	 
	 	R. Ramin Kamfar	 

 

 

 

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